2Welcome to Marketing! Professor: Dr. Freddy Lee , Tel: Course Web-site:
3Schedules Class Meeting: Section 1: MD 2.30-4.10PM 5: M 6.10PM- 10PM Office Hours: M, D pmor by appointment.Course Materials:Essentials of Marketing, 10th edition,(Perreault, and McCarthy, 2005)
4Instruction and Evaluation Lectures/discussions, in-class exercises & case studiesEvaluation (Final Grade based on curve)40%Final examination20%Mid-term examination10%Participation15%Case report 2 (group)Case report 1 (group)PercentComponent
5Why Study Marketing? Marketing Careers About 25 to 33% of Work Force hold Marketing PositionsCosts & OpportunityAbout 50% of Total Product Costs are Marketing CostsMarketingContributions to FirmIndividual Contributions Critical to Success of FirmContributions to SocietyIndividual Contributions have Societal Effects
6Marketing: It Can Be More Than Products ... WE’VE ALL HEARD ABOUT THE PLIGHTOF ENDANGERED SPECIES LIKE THE BALDEAGLE, AFRICAN ELEPHANT, AMERICANSooner or Lateryou’ll come acrossan endangered speciesyou care about.CROCODILE AND POLAR BEAR. BUT WITH MOUNTING ENVIRONMENTAL DAMAGE FROMSUCH THINGS AS OIL SPILLS,ACID RAIN DESTRUCTION OF THE RAIN FORESTS, CARELESS WASTE DISPOSAL AND HOLES INTHE OZONE LAYER, ANOTHER SPECIES ISIN DANGER. THE ONLY SPECIES THAT CANDO SOMETHING TO STOP IT. TO HELP ESTABLISH SCHOLARSHIPS FOR ENVIRO EDUCATION, PLEASE SEND A DONATION TOTHE ENVIRO CHALLENGE FUND,RADIO CITY STATION, PO BOX 1138, NY
11So… what exactly is marketing?? Tell me what you thinkLet’s check it out
12What is Marketing?A Definition of MarketingMarketing 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)
13Micro vs Macro Marketing Micro-MarketingThe 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 levelMacro-MarketingA 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
14Customer Needs and Wants A state of deprivation of some basic satisfaction;e.g., safety, esteem, food, clothing.WantsDesires 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.
15Products and Utility Time Form Place Task Possession Provided by ProductionProvided by MarketingTimeFormUtility=Value fromSatisfying NeedsPlaceTaskPossession
16In 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 themarketing concept.
17Production versus Marketing Orientation Starting pointFocusMeansEndsProductionOrientationMarketingFactoryMarketExistingEasy ToProduceProductsCustomerneedsSelling andpromotionIntegratedmarketingProfits viasales volumeCustomer satis-faction“The goal of marketing is to own the market, not just to sellthe product.”- Regis McKenna, Harvard Business Review (1991)
18Production versus Marketing Orientation InternalExternalWarehouseShippingFinancePersonnelPurchasingSalesAdvertisingSales PromoProductionAccountingR&DEach department work to achieveDepartmental goalsAll departments work together to provideCustomer satisfaction
25Other Concepts Customer Value and Relationship Value= Perceived benefits – costs of benefitsRetaining a customer is cheaper and the firm should work together to provide customer value before and after each purchaseCustomer satisfaction is the way to loyaltyNon Profit Organization and MarketingCompete for the same resources but for different goals – NOT FOR PROFITSocial Responsibility and EthicsGas GuzzlersFull Disclosure vs ambiguous information
27Next Time Take Care !! Read Chapter 2, read Harley Davidson Lecture and Learning Aid on course websiteREGISTER for the Discussion forum on course website– make contactsTry the online study guide, try the MCQ quizTalk with your classmates to form groups5 people each group;Try to assemble a diversified groupIndividual ‘one-person show’ is ok as wellStart thinking critically about advertising and other marketing aspects in everyday lifeTake Care !!