Presentation on theme: "1 Introduction to Marketing Professor Andrés Musalem Marketing Management Fuqua School of Business Introduction Whats Marketing? Three Cs Customer Company."— Presentation transcript:
1 Introduction to Marketing Professor Andrés Musalem Marketing Management Fuqua School of Business Introduction Whats Marketing? Three Cs Customer Company Competition Four Ps Product Promotion Price Placement Summary
2 Lets start with a simple word association task… MARKETING In-class exercise: Write down the first WORD that comes to mind
Does Marketing Matter?
Background: Santiago, Chile Ph.D., Wharton Ind. Engineering How long? MBA, U. of Chile Find x:
Research: Quantitative Marketing 66
Teaching Interests: Market Research Pricing Marketing Management GATE (global academic travel experience): South America Marketing Practicum: Hobbies: 7
8 Agenda Teaching Philosophy Course overview Ford Ka Marketing management Analysis (The 3 Cs) Planning (The 4 Ps)
9 Teaching Philosophy Lesson first, Problem second versus Problem first, Lesson second Experience is a hard teacher because she gives the test first, the lesson afterward.
10 Course Overview Goals: 1.Have fun & get you to learn. 2.Frameworks: Marketing Situation Analysis: Company, Customer, and Competition Marketing Planning and Implementation: Price, Promotion, Place, Product 3.Tools: Perceptions, Preferences, Customer Lifetime Value, Economic Value, Brand Associations, Diffusion of new products. 4.Skills: Case analysis Group effectiveness Idea Communication
11 Course Overview Syllabus Class format Lectures and cases. Grading Cases, participation, final exam Graded assignments: weekend following discussion. Course Materials: Required: Cases and some articles (see syllabus) Optional: Textbook, press articles in course pack.
12 Study Teams Action: Name a representative who will be responsible for submitting assignments.
13 Team Member Name Effort levelEffectiveness Total100% Peer Evaluation Your Name: ___________________________________________ Team number : ______________________________________________ In the chart below, write in the name of each team member, including yourself. Estimate the relative effort level and the amount that each team member contributed to the effectiveness. The first column should indicate relative effort and work level while the second column indicates the degree to which each individual contributed to the success of your team. Your estimates can range from 0% to 100% but should sum to 100%.
14 Honor Code We take it very seriously It benefits students Best cases, problems Equal playing field Coordination with other classes
15 You may not get information on cases from Fuqua students in other classes or study groups Students or resources at other schools Electronic means You may not give the information to others at Duke or elsewhere Your support is critical for this policy Honor Code
16 Administrative Issues: Platform: Announcements Assignment submission Handouts and other materials Seating Chart
19 Who are the customers? Why do they buy (Value Proposition)? Economic value to the customer: Cost-Benefit Understanding customer psychology: Intangibles What are they sensitive to (e.g., price, features, etc.) How many? Lifetime value, loyalty, customer satisfaction. Frameworks: 3 Cs - Customers
20 Customer Analysis: RFID
21 Customer Analysis: RFID Sorensen Associates: RFID technology to track shoppers path inside grocery stores. (PathTracker®)
22 Frameworks: 3Cs - Company Company Strategy: Mission, Objectives Portfolio Analysis: Identify SBUs Evaluate SBUs: for example, BCG, GE matrices. Portfolio Design: Build a pipeline of SBUs at different stages Portfolio growth: expand new/existing products/markets. ? Market Growth Rate Relative Market Share
23 Identify Competitors Industry Analysis (5 Forces) Strengths Weaknesses - Opportunities Threats: SW: Company versus Competitors OT: Industry Competitive reactions Frameworks: 3Cs - Competition
24 Southwest Effect: Competitive Reactions 1. Increase in passengers per day each way (PDEW ) 2. Drop in average fare 3. Effects on surrounding airports (lower demand) Source: Southwest Airlines: An In-Depth Review
28 Integration: 3Cs 4Ps Whats the right price for Angiomax? How should Ford promote the adoption of the Ford Ka? Should Starbucks invest in improving its customer service? Should Team Sameer use a traditional promotional approach? Should XM air ads? Should Unilever launch a new product for the low income segment in Brazil?
30 Define the product Core benefitessence Basic, Expected, Augmented and Potential Product First Mover Advantage Frameworks: 4Ps - Product
31 Price is the only P that captures value Small changes in price lead to major profit impact The issues What is the value to customers of the benefits the product provides? How much does it cost to deliver these benefits? How much do or will customers have to pay to get these same or substitute benefits elsewhere (i.e., from competitors)? Frameworks: 4Ps – Pricing
32 Importance of Pricing (Price leverage for selected firms) * Creates operating profit improvement of: 28.7% 26% 16.7% 6.4% *From Dolan and Simon (1996) 1% improvement in price at 17.5% Philips
33 Channels exist when they are more efficient than direct distribution: Channel decisions/issues: Channel depth Channel breadth Channel conflict/coordination M M M C C C D Manufacturer Consumers Manufacturer StoreRetailer Frameworks: 4Ps – Place
34 Frameworks: 4Ps - Promotion The promotional plan: Target market Objectives Message Media Mix Budget Measure the results Coordinate the process AwarenessInterestDesireAction
35 Promotion and Brand Associations
36 Profitability (A Reality Check) Are assumptions realistic? Breakeven analysis Can we sell breakeven volume at given price? How are other company businesses affected (cannibalization)?