Transcript LTT304_1

MKT 304
Principles of Marketing
Lecture 1
Welcome to Marketing!
Professor:
Dr. Freddy Lee
STF 915, Tel: 323-343-2967
Course Web-site:
http://www.mkt304.cjb.net
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Schedules
Class Meeting: Section
2:
3:
Office Hours:
MD 2.30-4.10PM
M 6.10PM- 10PM
M 4.20-5.40pm
W 1pm-2.20pm
or by appointment.
Course Materials:
Essentials of Marketing, 10th edition,
(Perreault, and McCarthy, 2005)
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Instruction and Evaluation
• Instruction
Lectures/discussions, in-class exercises &
case studies
• Evaluation (Final Grade based on curve)
Component
Percent
Case report 1 (group)
15%
Case report 2 (group)
15%
Participation
10%
Mid-term examination
20%
Final examination
40%
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Why Study 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
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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.
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Marketing: It Can Be
Simplistically Elegant ...
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Marketing: It Can Be Pointed
...
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Marketing: It can be innovative
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Marketing: It can be FUN
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So… what exactly is
marketing??
• Tell me what you think
• Let’s check it out
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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)
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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
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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.
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Products and Utility
Provided by Production
Provided by Marketing
Time
Form
Utility=
Value from
Satisfying Needs
Place
Task
Possession
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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.
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Production versus Marketing
Orientation
Starting point
Production
Orientation
Marketing
Orientation
Factory
Market
Focus
Existing
Easy To
Produce
Products
Customer
needs
Means
Ends
Selling and
promotion
Profits via
sales volume
Integrated
marketing
Profits via
Customer satisfaction
“The goal of marketing is to own the market, not just to sell
the product.”
- Regis McKenna, Harvard Business Review (1991)
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Production versus Marketing
Orientation
Internal
Warehouse
Production Shipping
Accounting Finance
R&D
Personnel
Purchasing
Each department work to achieve
Departmental goals
External
Sales
Advertising
Sales
Promo
All departments work together to provide
Customer satisfaction
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Macro-Marketing
Emphasis on
Whole System
Every Economy
Needs It
Key
Characteristics
Focus on a
Society’s
Objectives
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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Macro Marketing Example
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All Economies Need MacroMarketing Systems
Marketing Involves Exchange!
Pure Subsistence
Economy
A Central Market
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Exhibit 1-2
Central Markets Help Exchange
Ten exchanges
required without
central market
Pots
Central
Market
Middleman
Hats
Baskets
Only five exchanges are
required when a
middleman
(intermediary) in a
central market is used
Hoes
Knives
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Nations’ Macro-Marketing
Systems Are Connected
More Growth =
More Global Trade
Tariffs and Quotas
Control Flows
WTO
Develops
Rules
International
Countertrade
Increased
Global Trade
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Who Performs Marketing
Functions?
Producers
Wholesalers
Transport
Firms
Other
Specialists
Ad Agencies
ISP's
Product
Testing
Firms
Retailers
Research
Firms
Consumers
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
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Non Profit Marketing
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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 !!
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End Lecture 1
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