Spring 2013 Professor Tootelian CALIFORNIA STATE UNIVERSITY, SACRAMENTO College of Business Administration MKTG 101 - Principles of Marketing COURSE OUTLINE OFFICE HOURS: Tuesday and Thursday, 7:45 a.m. – 8:55 a.m., 11:50 a.m. – 12:10 p.m.; and by appointment OFFICE: TAH-2122 OFFICE PHONE: 278-6203 E-MAIL ADDRESS: tooteld@csus.edu (DO NOT send attachments—they will not be opened) REQUIRED TEXT: Armstrong & Kotler, Marketing, An Introduction, 11th Edition, paperback COURSE PURPOSE AND OBJECTIVES The purpose of the course, as described in the CSUS Catalog, is to understand the: social and economic implications of marketing for profit and nonprofit institutions; market structure and behavior; marketing institutions; channels of distribution for consumer and industrial goods; marketing costs; pricing; and public relations. The course objectives are: 1. To develop the students' understanding of marketing's role in the American economy, the world economy, and in the individual firm or nonprofit organization. 2. To stress the importance of the customer, and to show the vital need for a customer orientation on the part of all employees of an organization. 3. To understand the relationships among marketing and other business functions, the government, and society. 4. To have students critically evaluate and apply marketing concepts and principles to goods, services, ideas, people, and places. 5. To provide students with the foundation of marketing concepts and principles needed for advanced marketing classes. MKTG 101 2 Professor Tootelian COURSE PURPOSE AND OBJECTIVES (CONTINUED) 6. To help students become more sophisticated consumers. 7. To identify career opportunities in various areas of marketing. For the student, the course should provide an understanding of: 1. The role of modern marketing in our social business and economic environments. 2. The function of marketing within the individual business concern. Key issues of study are where marketing fits and how it should be used by the firm. CONDUCT OF COURSE Class sessions will be devoted primarily to lectures and discussions of the topics identified in the Assignment Schedule. Students are expected to have read the material for each session and be prepared to discuss the various implications. Some selected cases from the text and outside sources will be used to highlight particular areas from time to time. Unless approved by instructor, all cell phones MUST be turned off prior to the start of class. All cell phones and other electronic devices MUST be turned off and put away during all exams—at the instructor’s discretion, failure to do so could result in your exam not being accepted. This course follows University policy regarding academic honesty and student disruptive behavior. Please refer to them respectively at: http://www.csus.edu/umanual/AcademicHonestyPolicyandProcedures.htm http://www.csus.edu.umanual/student/UMD03250.htm Penalties for dishonesty and/or disruptive classroom behavior may result in removal from this class and/or a failing grade. STUDENT EVALUATIONS Evaluations will be based on examinations, class discussions, unannounced quizzes, and other work which may be assigned. Class participation over and above what would normally be expected will be especially important in cases of borderline grades. Quizzes may be given at any time during a class session. Once a quiz is collected by the instructor, any quizzes turned in during the class session are considered late and will be discounted in value or not accepted at the instructor’s discretion. MKTG 101 3 Professor Tootelian Each midterm exam will contain a combination of 75 multiple-choice and true/false questions taken from the text and lectures. The final exam will be optional, but comprehensive. Because the final exam replaces a midterm exam, it will be of the same time duration as the midterms. On the last day of class, students will be informed of their total points, letter grade going into the final, lowest midterm score, and the minimum points needed for each letter grade. If the student opts to take the final exam, her/his lowest midterm score is replaced by the score on the final exam if it is higher. No exams will be distributed once one student completes the exam and leaves the room. Accordingly, students are encouraged to be on time for classes and exams. No make-up exams are given. If a student misses a mid-term exam, she/he can replace the zero score with the final exam. Any written assignments are due at the beginning of the class session on the date shown in the Assignment Schedule or announced in class. Papers submitted late will be discounted in value. No papers will be accepted more than one calendar day late. Grading of all work will be on a 90%--80%--70%, etc., basis. At the end of the semester, the total points of all students will be arrayed from high to low. Initial cut-offs will be made on a 90%--80%--70%, etc., basis. Then, the distribution will be reviewed to determine if there are more appropriate break points below those levels. If a student has at least 90%, she/he is guaranteed an "A" for the course, 80% a "B," etc. Depending on the distribution of total points, the cut-offs for grades may go below those percentages. Finally, consideration will be given to class participation above what is normally expected for a class, and adjustments to a higher letter grade may occur at the instructor’s discretion. Some changes to the Assignment Schedule shown below may be necessary as the semester progresses. These will be announced in class and it is the student’s responsibility to note the changes. ASSIGNMENT SCHEDULE* Due Date Topic Chapter 1/29 Introduction 1/31 Introduction 2/5 Nature of Marketing 2/7 Marketing & The Environment 3 2/12 Marketing & The Firm 15 2/14 Marketing Plans 2 2/19 EXAM #1 1 1, 2, 3, 15 MKTG 101 4 Professor Tootelian ASSIGNMENT SCHEDULE* Due Date Topic Chapter 2/21 Marketing Ethics/Marketing Research 16 2/26 Marketing Research 4 2/28 Marketing Research/Segmentation 3/5 Segmentation & Positioning 6 3/7 Consumer Behavior 5 3/12 Business Buyer Behavior 3/14 Case Study 3/19 Product 3/21 EXAM #2 3/25-3/29 7 4, 5, 6, 16 SPRING BREAK 4/2 Product Strategy 8 4/4 Distribution Strategy 10 4/9 Distribution Strategy 11 4/11 Case Study 4/16 EXAM #3 4/18 Price Strategy 4/23 Price Strategy 4/25 Promotion Strategy 4/30 Promotion Strategy 5/2 Promotion Strategy 5/7 Case Study 5/9 EXAM #4 5/14 Review 5/16 Review 5/20-5/24 FINAL EXAM WEEK - See CSUS Schedule of Classes for date and starting time of final exam. *Subject To Change As Semester Progresses Syllabus for MKTG 101 Spring 2012 TOOTELIAN.doc 7, 8, 10, 11 9 12 13 9, 12, 13 MKTG 101 5 Professor Tootelian MATRIX STRUCTURES In the summer of 2004, two architects invested $95,000 to form Matrix Structures for the purpose of manufacturing and selling the Play-Dome. This was a new style “jungle gym,” trampoline, and playhouse combined. The inside structure was 5 feet high, 10 feet in diameter at the base, and in the shape of a hexagon. It was made from hardwood, and was durable, lightweight, easy to construct, and came complete with a multi-colored plastic cover. The PlayDome was expected to sell for $298 at retail. The product had many uses that made it unique in the field of children’s playground equipment. A cover of vinyl plastic dressed up the dome and converted it to a colorful playhouse. A plastic sheet stretched across the lower part of the Play-Dome could make it into a trampoline. Combined with these features, the Play-Dome had attachments for a small swing that could be suspended from the center of the top of the dome. It also had all the qualities of a jungle gym when the cover was removed. The spoke structure was perfect for children to climb on. Another outstanding feature was its light weight, making it easy for children to carry it from one location to another. The most important feature from the parents’ viewpoint was the attractiveness of the Play-Dome compared to other similar products, which tend to detract from the appearance of the landscape. In March, the Play-Dome was first displayed at the New York toy show. Sales during the first few months were not up to expectations. The owners of Matrix Structure thought that 2,500 units could be sold during the first year. In the first two months, orders were received from all parts of the country for 400 Play-Domes. Management felt this was unsatisfactory, for they were counting on large initial orders. By May, the owners were so discouraged that they were seriously considering give up the idea of marketing the Play-Dome. At the same time, Mr. Latham, co-owner of the business, still felt there was a market for this type of product. While the company had made no investigation of the potential buyers and had no specific data on what the demand would be for the product, he felt that since the Play-Dome was higher priced than conventional styled jungle gyms, it would appeal to families with higher incomes. These people are located in urban areas all over the country. Aside from families, the possibilities for municipal use in schools and in playgrounds were considered favorable. Private nursery and country day schools offered another source of demand. Swimming pools and parks would represent another market. These general considerations of the market seemed to indicate to Mr. Latham that there would b e a great many people interested in the Play-Dome. He realized that one reason sales had not developed could be the lack of selling effort on the part of the company. Because of the size of the company, Matrix Structures did not have a sales force. Mr. Latham did the sales work through correspondence and occasional trips to various toy shows and exhibits. Little active soliciting of customers has been done. The most aggressive sales effort had been made in conjunction with the toy show in New York. It was here that many department store managers were contacted and approximately 300 sales made. The advertising budget had been limited to two advertisements placed in trade magazines to explain the functions of the product. The company had received some excellent publicity MKTG 101 6 Professor Tootelian through a short article in a magazine in February. In addition, a picture of the Play-Dome was featured on the cover of a Sunday newspaper supplement that had a circulation of 11.7 million. The free publicity gave tan added boost to their product as well as some indication of consumer interest. They received about 1,000 letters inquiring about he Play-Dome, and many people came to the office to see what it looked like. However, this initial response was not followed up with an active sales promotion campaign, and only 15 orders were received from the 1,000 letter inquiries. Questions: Who would be the target market? Should the company continue to try to sell the Play-Dome?