3 Schedules Class Meeting:Section 1: MD 2.30-4.10PM 5: M 6.10PM- 10PM Office Hours: M, D 1-2.15pm or by appointment. Course Materials: Essentials of Marketing, 10th edition, (Perreault, and McCarthy, 2005)
4 Instruction and Evaluation Instruction Lectures/discussions, in-class exercises & case studies Evaluation (Final Grade based on curve) 40%Final examination 20%Mid-term examination 10%Participation 15%Case report 2 (group) 15%Case report 1 (group) PercentComponent
5 Why Study Marketing? Costs & Opportunity About 50% of Total Product Costs are Marketing Costs Careers About 25 to 33% of Work Force hold Marketing Positions Marketing Contributions to Firm Individual Contributions Critical to Success of Firm Contributions to Society Individual Contributions have Societal Effects
6 Marketing: It Can Be More Than Products... WE’VE ALL HEARD ABOUT THE PLIGHT OF ENDANGERED SPECIES LIKE THE BALD EAGLE, AFRICAN ELEPHANT, AMERICAN Sooner or Later you’ll come across an endangered species you care about. CROCODILE AND POLAR BEAR. BUT WITH MOUNTING ENVIRONMENTAL DAMAGE FROM SUCH THINGS AS OIL SPILLS,ACID RAIN DESTRUCTION OF THE RAIN FORESTS, CARELESS WASTE DISPOSAL AND HOLES IN THE OZONE LAYER, ANOTHER SPECIES IS IN DANGER. THE ONLY SPECIES THAT CAN DO SOMETHING TO STOP IT. TO HELP ESTABLISH SCHOLARSHIPS FOR ENVIRO EDUCATION, PLEASE SEND A DONATION TO THE ENVIRO CHALLENGE FUND,RADIO CITY STATION, PO BOX 1138, NY 10101-1138.
7 Marketing: It Can Be Simplistically Elegant...
11 So… what exactly is marketing?? Tell me what you think Let’s check it out
12 What is Marketing? A Definition of Marketing Marketing is the process of planning and executing conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. - by AMA (American Marketing Association)
13 Micro vs Macro Marketing Micro-Marketing –The performance of activities that seek to accomplish an organization’s objectives by anticipating customer or client needs and directing a flow of need satisfying goods and services from producer to customer or client. –@ the firm level Macro-Marketing –A social process that directs an economy’s flow of goods and services from producers to consumers in a way that effectively matches supply with demand and accomplishes the objectives of society –@ the society level
14 Customer Needs and Wants Needs –A state of deprivation of some basic satisfaction; –e.g., safety, esteem, food, clothing. Wants –Desires for specific satisfiers of needs; –e.g., hamburger and Coke for needs of food. Focus on customer needs! Firms who concentrate their thinking on the physical product instead of customer needs are said to suffer from marketing myopia.
15 Products and Utility Form Task Time Place Possession Provided by Production Provided by Marketing Utility= Value from Satisfying Needs
16 In Fact, Micro Marketing Is … More than selling and advertising; Begins with customer needs; Customer satisfaction is number one! Starts earlier than production, and lasts later than sales; Marketing does not do it alone. Marketing Orientation aims at carrying out the marketing concept.
17 Production versus Marketing Orientation Starting point FocusMeans Ends Production Orientation Marketing Orientation Factory Market Existing Easy To Produce Products Customer needs Selling and promotion Integrated marketing Profits via sales volume Profits via Customer satis- faction “The goal of marketing is to own the market, not just to sell the product.” - Regis McKenna, Harvard Business Review (1991)
18 Production versus Marketing Orientation InternalExternal Warehouse Shipping Finance Personnel Purchasing Sales Advertising Sales Promo Production Accounting R&D All departments work together to provide Customer satisfaction Each department work to achieve Departmental goals
25 Other Concepts Customer Value and Relationship –Value= Perceived benefits – costs of benefits –Retaining a customer is cheaper and the firm should work together to provide customer value before and after each purchase –Customer satisfaction is the way to loyalty Non Profit Organization and Marketing –Compete for the same resources but for different goals – NOT FOR PROFIT Social Responsibility and Ethics –Gas Guzzlers –Full Disclosure vs ambiguous information
27 Next Time Read Chapter 2, read Harley Davidson Lecture and Learning Aid on course website REGISTER for the Discussion forum on course website– make contacts Try the online study guide, try the MCQ quiz Talk with your classmates to form groups –5 people each group; –Try to assemble a diversified group –Individual ‘one-person show’ is ok as well Start thinking critically about advertising and other marketing aspects in everyday life Take Care !!