AEM 2400 Professor Perosio Fall 2013 Week 1 Aug – Sept 1st Lecture 1 of 2 26th Lecture Date: Wednesday, August 28th, 2013 Lecture Topic: The beginning… so why are you in marketing?? Reading: Chapter 1 - An Overview of Marketing I. Introductory Questions: a. Why are you here, buying your education at Cornell University? b. What influenced you to come to CU? c. What other colleges/universities were you accepted at? d. What do you have in common with the people in your group? II. The 4 “P”s help you make your decision. a. Product, Place, Price, Promotion III. How do you experience marketing? a. You experience marketing in social media, the newspaper, billboards, apps, TV, screens, moving billboards, and everywhere else! IV. What is marketing? a. Selling goods and services. b. A balancing act between: i. Philosophy ii. An attitude iii. A perspective iv. A management orientation c. Functional i. A set of activities (products, place, pricing, promotion) d. In the end, the best marketers try to find a balance between these two and also stress customer satisfaction. e. Formal definition: 1. Marketing is the activity, set of institutions, and processes for creating, communication, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large ii. Broken down definition: 1. What you do (the entire set of activities that make up marketing). 2. Who does it (brand manager, R&D, PR agency, supply chain manager, etc). 3. How it is done (what is the message and how do you receive it—TV, Facebook, radio). 4. Why it is done (to create value or sell something). V. The root of great marketing… a. An example of a company that uses great marketing is Wegmans. b. Greater effort repeat business growth & profits stockholder satisfaction more investment employee satisfaction (happy employees lead to customer satisfaction). VI. Things you should know about AEM 2400… a. Textbook needed: MKTG 7 b. Lecture three days a week. c. In-class guests. d. Check Blackboard! i. Announcements ii. Class notes will be posted in an outline format. iii. No take-note iv. No PowerPoint slides v. Class information calendar e. See blackboard for office hours. f. Course guidelines i. Don’t use cell phones! ii. Be on time. iii. Understand the CU Code of Academic Integrity g. Grades i. Everyone must take the final exam. ii. 2 additional grades—can be from 2 prelims or 1 prelim and the optional project iii. You can take all the prelims and do the project and Professor P. will take the highest grade. iv. All three grades that make up your final grade are weighted equally. AEM 2400 Professor Perosio Fall 2013 Week 1 Aug – Sept 1st Lecture 2 of 2 26th Lecture Date: Friday, August 30th, 2013 Lecture Topic: Marketing Is More Than Advertising Reading: Chapter 1 - An Overview of Marketing I. What is marketing? a. Stresses customer satisfaction. b. A philosophy, attitude, perspective, and management orientation. c. As set of activities: products, place, promotion, pricing. II. What is an exchange? a. The desired outcome of marketing. b. You give up something to receive something you would rather have (i.e. barter) i. It does not always involve money. c. For example, Ithaca Hours are used as currency in Ithaca. i. One Ithaca HOUR is valued at US$ 10 and is recommended to be used as payment for one hour. d. The conditions of an exchange: i. Must be at least 2 parties. ii. Each party has something of value to the other party. iii. Each party is capable of communication and delivery. iv. Each party is free to accept or reject the exchange offer. v. Each party believes it is appropriate or desirable to deal with the other party. III. There are four Marketing Management Philosophies: a. Production i. What can we do best? What can our engineers make? What is the most convenient for the firm to offer? ii. A company with a production philosophy usually has an Internal focus. iii. They look internally and trying to figure out what you do well and only doing that. iv. However, you forget to focus on the customers and if they really want this. v. Don’t ask “is this needed or wanted” by customers? b. Sales i. A sales philosophy is based on the idea that people will buy more if aggressive sales techniques are used. ii. The belief that high sales result in high profits. iii. This philosophy is promotionally oriented and the company tries to move the products quickly. iv. However, this is a short-term approach because it also ignores customers. v. Both PRODUCTION & SALES are INWARDLY FOCUSED (aka forget needs/wants of marketplace). c. Marketing i. Focuses on the customer’s wants and needs so that the organization can distinguish its products from the competitions. ii. Integrates all of the organizations activities, including production, to satisfy customers. iii. In order to be successful, a customer must deliver unique experiences. 1. For example, Trader Joe’s, L.L. Bean. iv. Achieving a marketing orientation (Marketing Concept) 1. Obtain information about customers, competitors, and markets (market research, surveys, how to address changes). 2. Examine the information from a total business perspective. 3. Determine how to deliver superior customer value. 4. Implement actions to provide value to customers. v. Ex. GE 1952 Annual Report—“The concept introduces…marketing…at the end beginning rather than the end of the production cycle and integrates marketing into each phase of the business” d. Societal i. An organization with a societal philosophy exits to satisfy customers wants and needs. ii. Also, they try to preserve or enhance individuals’ and society’s long-term best interests. iii. For example, Soul Full Cup Coffee (Corning, NY). 1. PROS: Reducing the carbon footprint, recycled materials, less packaging. 2. CONS: consumers mixed on purchasing environmentally friendly products. 3. Doubt effectiveness/truth, high cost, and lack of availability in convenient retail locations. iv. The willingness to spend more on goods and services from companies that have implemented programs to give back to society: 1. Global Average a. 2013—50% b. 2011—45% 2. Female a. 2013—47% b. 2011—43% 3. Male a. 2013—53% b. 2011—47% IV. Sales vs. Market Orientations a. A sales orientation focuses on looking inward at what the firm makes and thinking in terms of goods and services. b. A market orientation focuses on looking outward at what the market wants and thinking in terms of creating customer value and satisfaction. 1. Focus on relationship marketing through: a. Customer oriented personnel b. Employee training program c. Empowered employees d. Teamwork 2. Think in terms of benefits that customers want.
