Lecture 1

Welcome to Marketing!
Professor:
, Tel:
Dr. Freddy Lee
Course Web-site: http://www.mgmt120.cjb.net
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Schedules
Class Meeting: Section 1: MD 2.30-4.10PM
5: M 6.10PM- 10PM
Office Hours: M, D 1-2.20pm
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
Case report 1 (group)
Case report 2 (group)
Percent
15%
15%
Participation
Mid-term examination
Final examination
10%
20%
40%
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Why Study Marketing?
Careers
About 25 to 33% of
Work Force hold
Marketing Positions
Marketing
Costs & Opportunity
About 50% of Total
Product Costs are
Marketing Costs
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
9

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
13

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
Form
Utility=
Value from
Satisfying Needs
Provided by Marketing
Time
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
Production
Orientation
Marketing
Orientation
Starting point Focus
Factory
Market
Means Ends
Existing
Easy To
Produce
Products
Selling and promotion
Customer needs
Integrated marketing
Profits via sales volume
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 External
Production
Accounting
R&D
Warehouse
Shipping
Finance
Personnel
Purchasing
Sales
Advertising
Sales
Promo
Each department work to achieve
Departmental goals
All departments work together to provide
Customer satisfaction
18

Macro-Marketing
Key
Characteristics
Focus on a
Society’s
Objectives
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
19

Macro Marketing Example
20

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

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

Nations’ Macro-Marketing
Systems Are Connected
WTO
Develops
Rules
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
23

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

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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