1. MKT 304 Principles of Marketing
Lecture 1

2. Welcome to Marketing! Professor: Dr. Freddy Lee , Tel:
Course Web-site:

3. Schedules Class Meeting: Section 1: MD 2.30-4.10PM 5: M 6.10PM- 10PM
Office Hours: M, D pm
or by appointment.
Course Materials:
Essentials of Marketing, 10th edition,
(Perreault, and McCarthy, 2005)

4. Instruction and Evaluation
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)
Case report 1 (group)
Percent
Component

5. Why Study Marketing? Marketing Careers
About 25 to 33% of Work Force hold Marketing Positions
Costs & Opportunity
About 50% of Total Product Costs are Marketing Costs
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

7. Marketing: It Can Be Simplistically Elegant ...

8. Marketing: It Can Be Pointed ...

9. Marketing: It can be innovative

10. Marketing: It can be FUN

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
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 Time Form Place Task Possession
Provided by Production
Provided by Marketing
Time
Form
Utility=
Value from
Satisfying Needs
Place
Task
Possession

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
Focus
Means
Ends
Production
Orientation
Marketing
Factory
Market
Existing
Easy To
Produce
Products
Customer
needs
Selling and
promotion
Integrated
marketing
Profits via
sales volume
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
Internal
External
Warehouse
Shipping
Finance
Personnel
Purchasing
Sales
Advertising
Sales Promo
Production
Accounting
R&D
Each department work to achieve
Departmental goals
All departments work together to provide
Customer satisfaction

19. Macro-Marketing Emphasis on Whole System Emphasis on Whole System
Every Economy Needs It
Every Economy Needs It
Key
Characteristics
Focus on a Society’s Objectives
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

20. Macro Marketing Example

21. All Economies Need Macro-Marketing Systems
Marketing Involves Exchange!
Pure Subsistence Economy
A Central Market
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

22. © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Exhibit 1-2
Central Markets Help Exchange
Pots
Ten exchanges
required without
central market
Central
Market
Middleman
Hats
Baskets
Only five exchanges are required when a middleman (intermediary) in a central market is used
Hoes
Knives
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

23. Nations’ Macro-Marketing Systems Are Connected
More Growth = More Global Trade
More Growth = More Global Trade
Tariffs and Quotas Control Flows
Tariffs and Quotas Control Flows
WTO Develops Rules
International Countertrade
International Countertrade
Increased Global Trade
Increased Global Trade
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

24. Who Performs Marketing Functions?
Producers
Wholesalers
Retailers
Transport
Other
Firms
Specialists
Ad Agencies
ISP's
Product
Testing
Research
Firms
Firms
Consumers
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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

26. Non Profit Marketing

27. Next Time Take Care !! 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 !!

28. End Lecture 1