Transcript Marketing343

Course
Introduction
http://www.cbpp.uaa.alaska.edu/afef/
http://www.cbpp.uaa.alaska.edu/afef/
BA343Syllabus.htm
Course Power Points
Online & @ CBPP Computer Lab:
BA343 Principles of Marketing
Course Format
Lecture
Video-illustration*
Course Objective
Create an appreciation
for the present role &
evolving scope of
marketing-- in all
organizations & in a
global economy
With particular attention given to:
o
o
o
o
o
o
o
o
Strategic Planning
Marketing Research
Market Segmentation
Consumer Behavior
Product & Market Development
Customer Relationship Management
Pricing, Promotion & Distribution
Service, International & Internet Marketing
By end of
course you
will be…
“All –Knowing” of
the “Principles of Marketing”
&- If You Are Not
Don’t Count
on it!
Double
your
Tuition $
Back!
New & Improved for Fall 2009
No
TextBook!
43%
More Facts
62%
Less BS! New & More
Exams!
Critical Comments-IDEA

You need a TextBook--would be easier
to follow “My eyes hurt reading so many
powerpoint-slides”

You go too fast (I hear/write too slow)

Your jokes aren’t funny

Your tests aren’t fair- questions too
picky & tricky

“Professor should wear pants…”
Course Assessment:
3 Exams worth 25% each
Exam#1 Sept. 25th. (Wks 1-4)
Exam #2 Oct. 30th. (Wks 6-8)
Exam #3 Dec. 4th. (Wks 9,11-13)
1 Marketing Plan (Nov 20) @ 25%
The Marketing Plan

Select or create an entity (product,
service, company, organization, person, place or
idea) which you would like to "market."

Design & outline a "marketing plan" for
that entity-- Your plan must follow & contain all
the elements of the marketing planning process
presented in this course: Situation & SWOT
Analyses- Strategic Planning & Marketing Mix.
(Drafts can be submitted anytime for review &
comment )
•Post suggested exam questions
for each week's lecture, readings
&/or viewings....
@http://groups.yahoo.com/group/UAABA343
• “Book Review”Free! Why $0.00 Is the Future of Business by Chris
Anderson
"FREE" for free! ebook & audiobook versions
•Trendspotting
Today- We’ll Examine:
1. What “it” is
2. Note “its”
3.
significance…
Note “its” place w/in
“Scheme of Things”
4. Look at the Big Picture:
Re: how this course is
organized
Begin with
the Essential
Question…
Philosophically
the Question
is….
Marketing Defined
Pick a definition….
Many to choose from…
Marketing is:
Pick a
definition
 a FUNCTION
 a PROCESS
 a PERFORMANCE
 a FUNCTION & PROCESS
more than a Function- it’s an
ORIENTATION
Classic Functional Definition
All activities performed in
between:
The Point of Production
&
The Point of Consumption
st
1
Formal Definition ~1919
*Marketing and Merchandising
by Ralph Butler & John Swinney,
 Marketing
defined
as ‘the manner in
which the product
is disposed of,
the way in which
it is distributed…,
through various
channels of
trade.”
•Book distinguishes
marketing from
merchandising,
•w/ marketing being
something
manufacturers do
•& merchandising
being the domain of
jobbers; retailers.
21
Marketing Defined -1935 -
“The performance
of business
activities that direct
the flow of goods &
services from
producers to
consumers.”
Marketing Definedas a Process- 1985
"The process of planning
& executing the
conception, pricing,
promotion & distribution of
ideas goods & services to
create exchange & satisfy
individual & organizational
objectives"
Marketing is a process of
planning & executing
Planning w/:
Marketing Research
Company
Objectives
& Resources
Competitors
Current &
Prospective
Consumers
Executing thru:
Marketing Management
Motivate Marketing Personnel
Segments
Behavior &
Perceptions
Communicate w/ Marketing Unit
Conditions
Coordinate Marketing Activities
MacroEnvironment
(PEST)
Establish Timetable
…the conception, pricing,
promotion, & distribution…
The Concept
“What” you are
going to sell
Price
Amt. $$,Time
Effort it takes to
consume
Promotion
Distribution
All
Communication
& Incentives
All Channels &
Outlets
Product
Price
Target
&
Position
Place
Promo
...of ideas, goods & services…
Marketing- not limited to commercial
enterprise
 Anything & everything marketed…

….Events, Organizations, Places,
Persons, Social Causes & Concerns
"The process of planning & executing the conception, pricing,
promotion & distribution of ideas, goods & services etc. to
create exchange & satisfy individual &
organizational objectives"
Willing
to sell
Willing
to buy
Marketing
"The process of planning & executing the conception,
pricing, promotion & distribution of ideas goods &
services to create exchange & satisfy individual &
organizational objectives"
&
Another Marketing Definition
A social &
managerial process
by which:
• individuals &
groups obtain what
they need & want
•through creating &
exchanging products
& value with others.
Exchanges
Learning Environment
Tuition
Promised Action
Votes
Exchanges
Fee
Consulting
Products/services
Money
Marketing’s “utility”/value derived
from its Facilitation of Exchange!
Willing
to sell
Temporal Utility
Spatial Utility
Transactional Utility
Marketing
Willing
to buy
“Value Added Marketing”
Transaction utility
Place utility
Time utility
The Product
Form utility
Store has it in stock
Delivered to your home
Pay with your VISA card
Bringing Producers & Consumers Together
Temporal Utility
Producers / consumers
produce / consume at
different times.
Marketing makes
good or service
Available when
consumer
wants/needs it
Bringing Producers & Consumers Together
Spatial Utility
Producers & consumers
generally separated by space
/ geography
Marketing makes
availability of good or
service where consumer
wants / needs it
Bringing Producers & Consumers Together
Transactional Utility
Transferring title of
product/ service
from producer to
consumer
Marketing facilitates
ease of
Purchasing/
Financing product
or service
The Latest Official AMA
Definition
In 2004- AMA Re-defined Marketing
"Marketing is an organizational
function & a set of processes
 for creating, communicating &
delivering value to customers
 & for managing customer
relationships in ways that
benefit the organization & its
stakeholders."

August-2004
The AMA Rationale: “Technology &
marketing been changing quite rapidly over last five to 10
years.
“Marketing should
be customer-centric
-- not brand –
centric”

The 1985 definition was not encompassing
enough. The new definition more clearly
infuses the customer into marketing."
Marketing > Function
=An Orientation
“Marketing
is so basic
that it cannot be
considered a
separate function on a
par w/others such as manufacturing or
personnel…
Marketing > Function
=An Orientation
“Marketing is…
…the whole business
seen from the point of
view of its final result,
-from the customers’
point of view.”
Management Reorientation:
The Marketing Concept
Focus on
Consumer
– Not
product
Long –Term
Relationships
Not Shortterm Sales
What is Marketing
Marketing is managing profitable
customer relationships.
Goals:
1. Attract new customers by promising
superior value.
2. Keep and grow current customers by
delivering satisfaction.
Management Reorientation:
Relationship Marketing
Long-term Wide -Angle view of the customer
build life-long relationship in the hope of
establishing long-term repeat purchasing.
Losing a customer means losing the
entire stream of purchases over a
lifetime of patronage =
Customer Lifetime
Value
Estimate
Customer Lifetime Value (CLV)
1.
Estimate the number of purchase occasions by the
customer over a given interval…
2.
3.
Estimate the average amount spent per visit.
4.
Subtract the costs of maintaining the account per
visit.
5.
6.
Add the value of the new referrals by the customer.
Estimate likely additional purchases thru cross
selling & upselling
Take the present value of this net income stream
with an appropriate discount rate.
Can cost 5 times
as much to
acquire a new
customer …….
vs. keep an
existing one
Costs of new customer
acquisition have
increased dramatically:
A lot of Media + Not much Loyalty
Retaining an additional
5% of customers
each year…
…can increase
profits by 25-35%
Finally - My take on Marketing:
 Marketing
in Principle
 Marketing
in Practice
Marketing - in Principle
Facilitate
Exchange
Strategic
Planning
Situation Analysis
•Company
•Consumers
•Competitors
Marketing Strategy
P’s
The Marketing Mix:
Growth &
Competitive
Marketing
Strategies – in
Practice
Target
Market
Price Promotion
G
N
•Conditions
Product Place
C
Service
TGT
• PEST
Positioning
Strategy
D
E
WM
F
Strategic
Planning
Situation Analysis
•Company
•Consumers
•Competitors
Marketing Strategy
P’s
The Marketing Mix:
Growth &
Competitive
Product Place
Product
Target
Market
Strategies
Price Promotion
Promotion
G
N
•Conditions
C
Service
TGT
• PEST
Positioning
Strategy
D
E
WM
F
The Next
Big
Question…
Philosophically
the Question
is….
Marketing
Indeed--In a sense-
Everyone is a born Marketer
 Innate
sense of
exchange
 1,000’s of years…
bartered & traded
goods & services
& Always been Marketers
Innate
sense of
exchange
 1,000’s of
years…
bartered &
traded
“branded”
goods &
services

59
“The Dawn of Marketing”
Ostia-Rome’s port city:
Around the square ran a
walkway w/ mosaics showing
name, origin, & specialty of
traders in adjacent stalls.
http://www.bsos.umd.edu/econ/euro/Ostia.htm
The Beginnings of Advertising
Everyday You Market Yourself


Your packaging–clothes,
piercing, tattoos, cars, etc.
We all engage in “Positioning
& Differentiation”
Everybody is a Marketer

Everybody promotes/
sells themselves–
– To get job/ promotion
– To get date/ mate

Everybody has their
price…………………
Marketing’s
Significance
Personnel Significance
Marketing Impacts You - Everyday of Your Life
• Everything you try,
•
buy, vote for, drive, eat,
wear– is “marketed”
Let alone- $.50 Cents of
Every Dollar you spend
goes to “marketing”
costs
Economic Significance
• The Economy-JOBS-
1/4 -1/3
of the
Work-force perform
marketing functions
Marketing Aligns
Production & Consumption
Production Sector
Discrepancies
of Quantity
Discrepancies
of Assortment
Marketing
addresses
discrepancies
&
separations
Separations:
in Space,
Time &
Ownership
Consumption Sector
Significance of Marketing
Improves quality of life
by/thru… providing variety
of goods & services
For example- What
would life be like
without the….
The Traveling Head Rest
Or the Traveling Head Holder
The
PortoWipe
The Total-Surround Umbrella
Accu-Drop Glasses
And How About
the “ButterMarker”
Or The Attachable
Noodle- Cooler
And last but
not least—
The Mr.
Mom Baby
Feeder!
Marketing’s Place in the Scheme of Things
Where Marketing Sits in Scheme of Things
Marketing is but one of Business’s
Key Functional Domains
Marketing
R&D
 Production
 Human Resources
 Finance

Where Marketing Sits in
Scheme of Things
Corporate-Level
Corporation
Business-(SBU) Level
Bus. Unit A
Bus Unit B
Bus. Unit C
Functional-Level
Finance
HR
Production/ R&D
Marketing
Situation Analysis
•Company
•Consumers
Week 3
•Competitors
Strategic
Planning
Marketing Strategy
P’s
Week 4
The Marketing Mix:
Growth &
Competitive
Product Place
Week
7
Strategies
G
Week 8
Target
Market
Price Promotion
N
Next Week
C
Service
•Conditions
TGT
• PEST
Positioning
Strategy
D
E
Week 6
WM
F
Weeks 5 & 10 Exams!
Lectures: Weeks 9 thru 13
Marketing in the New Economy
Customer
Relationship
Consumer
Marketing
Centric
Internet
Technologically
Marketing
Driven
Service
Service
Marketing
Based
International
Global in
Marketing
Scope
Agriculture
Manufacturing
Services
80%
70%
% 60%
o
f 50%
40%
G 30%
N
P 20%
10%
0%
1850
1950
2050
Agents of Change are Everywhere:







DVRs , PDA’s & Smart- phones
Wireless hot spots
“Branded entertainment”
Word-of-mouth, viral marketing
Podcasts, online video
Pervasive usage of GPS
assisted content delivery
Rapid deployment of
addressable advertising
technology
Globalization

“Borders are Becoming
Meaningless”
–
–
Work performed globally….
continuously….
“The entire globe is now tied together
in a single electronic market moving at
the speed of light. "There is no place to
hide”
–
Walter Wriston, Citicorp Chairman
Becoming more selfcentered & Home
centered
Becoming more
complex--age,
sex & income
reversals
Are less brand
loyal
More connected &
more informed
Today’s
Consumers
Have less time &
more choices
Seeking new/ heightened
sensation & experiences
Have lower
attention spans &
higher
expectations
Are living &
shopping more for
today…
Less long range
planning

Old Economy

– Manufacturing driven
New Economy
– Information driven
 Differentiation,
New
100%
 Standardization
& Duplication
75
U.S. Economies of
50
GDPscale
 Hierarchical
25
bureaucractic
0
’72
’78
Source: Marvin Zonis & Associates
’84
’90
customization
“E”conomy
 Networks &
speed-Economies of
Scope
Industrial
 Diversified
Economy
Adhocracy
’96
’02
’08
2010
90
2020
2030
91
92
93
Final Weeks of Course
The Future of Marketing
& End-term Exam
Your future… if don’t
do well in BA343
Today’s Video Features…
Introduction to
Marketing
Classic Case Study
• Just how simple
marketing
decisions can be…
• When you just
listen to the
customer…