Principles of Marketing

1. Principles of Marketing MGT 252 Maggie Wenjing Liu Winter 2007

2. Today’s Agenda Review Syllabus Other Administrative Details What’s Marketing? If you are not on the class list, go to the programs office after class to re-register.If you are not on the class list, go to the programs office after class to re-register.

3. Course Description “An introduction to the basic concepts of market definition, consumer behavior, and the principal marketing functions: product line development, pricing, distribution, promotion, sales force management, advertising, research, and planning.”

4. Course Objectives Understand basic concepts in Marketing Your ability to analyze Marketing problems.

5. Classes and Office Hours Class: L0101 Wednesday 8-10am WO25 Office Hours: Wednesday 11-12 WO13 Phone: (416) 9786635 Email: Wenjing.liu@rotman.utoronto.ca Website: http://ccnet.utoronto.ca/20071/mgt252h1s/ or http://www.rotman.utoronto.ca/Wenjing.Liu04/

6. Teaching Assistant Name: Violet Zhang Phone: (416) 875 6697 Email: violetz2002@yahoo.com The best way to reach the TA is by email.

7. Class Structure Lectures: Begin 10 minutes after the hour and end on the hour. A 10 minutes break midway. Determination of Grades: Research Requirement 3% Class Participation 5% Term Project 17% Midterm Exam 30% Final Exam 45% Text: Sommers & Barnes, Marketing, 10th Canadian Edition, and its study guide. If I lose track of time and class has gone a full hour, someone warn me. If break too long consistently, will drop it.If I lose track of time and class has gone a full hour, someone warn me. If break too long consistently, will drop it.

8. Research Requirement You will be asked to participate in two studies that will take roughly 1 hour per study. Or participate one study + do an analysis of an article from the following journals: The Journal of Consumer Research, The Journal of Marketing, Marketing Science or Management Science. See Syllabus on how to attend studies.

9. More on Term Project Develop a marketing plan for a new product or service. Work in groups of 5 students. No more than 15 pages, double spaced, 12 point font, (including tables, figures, and references). Keep in mind that both creativity and the actual marketability of your product matter. Your group should make appointments with the instructor to discuss your idea of the project no later than March 7. Final write-up due by 10am April 4. You must submit a hardcopy of your assignments before the deadlines. No fax or email copy will be accepted. Group presentation at the last lecture. Unless large differences in work effort, give each other the same marks. Details next week. Unless large differences in work effort, give each other the same marks. Details next week.

10. Class Participation There are 5% for class participation in the course score. Including in-class discussion, attendance, and project presentation at the end of semester.

11. Case Analysis and Class Discussion Each class we have a theme-based discussion relevant to the subject of the lecture. Based on a case analysis or a debate. For each class 5-10 people are assigned for preparing for the case analysis or debate before class. During the discussion I will call for names or volunteers. So it is important that you come prepared. Questions related to discussed topics would be in mid-term and possibly finals.

12. Midterm & Final: 30% and 45% Midterm (held during class time on Feb 14): 40-60% multiple choice. The rest of it will be short answer and short essay questions. Some are relevant to our theme-based class discussion and case analysis. No make-up midterm test. Final: Similar format (need coordination with other sections). Everything in the text book is fair game. Note the deadline to drop the course is March 11. Notice a theme—the class is about a marketing planNotice a theme—the class is about a marketing plan

13. Missed Exams If you miss the Final due to illness or domestic tragedy: 1) Contact the Commerce Program Office immediately. 2) Submit a medical certificate or other relevant documentation within 48 hours of the test date if possible. Requesting remarking of midterms Make request to me no more than 2 weeks after return date. Include a written explanation with request. Note that I will photocopy many of the tests, so don’t make changes and think I won’t catch it. Any exam submitted for remarking will be remarked in its entirety. Grades may rise, fall, or stay the same.

14. Class Etiquette Come to class on time and don’t walk out early. Turn off your cell phone, pager and palm pilot. Don’t talk amongst yourselves, read the newspaper, or eat during lecture. Do ask questions and ask me to slow down if I am going too fast or the material is not clear. Do help out the class by initiating and participating in class discussion. Read textbook before class, review after.

15. More Policies For the term project, you can only form a group with classmates from your section. The final exam will be common for all sections, but not the mid-term test. You must take the mid-term test for your section. You are not supposed to attend the lectures from other sections.

16. Academic Misconduct Students should note that copying, plagiarising, or other forms of academic misconduct will not be tolerated. Any student caught engaging in such activities will be subject to academic discipline ranging from a mark of zero on the assignment, test or examination to dismissal from the university as outlined in the academic handbook. Any student abating or otherwise assisting in such misconduct will also be subject to academic penalties.

17. Writing Centre The writing centre is a good resource. Check out their website at: www.utoronto.ca/writing

18. Communication in Class Name card Information form

19. Question:Is marketing good or evil?

20. What is Marketing, anyway?

21. Marketing Everywhere! Understanding marketing helps you when: You buy a new pair of shoes, or go to the grocery store. You open a new bank account. You apply for a job. You watch television. …..

22. What is Marketing? Marketing is the total system of business activities designed to plan, price, promote, and distribute want-satisfying products, services, and ideas to target markets in order to achieve organizational objectives

23. Key Words in the Definition total system: not an ad hoc approach business activities: but not just for businesses plan, price, promote, distribute: the application of the marketing mix need-satisfying: meeting customers’ needs products, services, ideas: not just products target markets: not a broad-brush approach objectives: the customer’s as well as the firm’s

25. Scope of Marketing Marketing means adopting a customer focus for the organization; keeping the customer’s needs in mind all the time. It may not always mean making an immediate sale.

26. It’s All About Satisfaction The ultimate goal is customer satisfaction, which leads to long-term profitability and success Whenever things of value are being exchanged, marketing principles apply: consider exactly what is being exchanged (it’s “give” and “get”) Marketing today is applied to virtually all aspects of a company’s operation that has the potential to influence satisfaction Marketing principles apply in all organizations

27. Figure 1-1: The Give and Get of Marketing

28. …and Creating Value Successful marketing involves meeting or exceeding customer expectations When expectations are exceeded, customer satisfaction or delight results Marketing is very much about adding value through a broadly-defined value proposition The value proposition comprises everything the company offers its customers – must be defined very broadly Value may be created by marketers in many different ways: value is not only about price

29. Drivers of Customer Satisfaction Many aspects of the firm’s value proposition contribute to customer satisfaction: The emotional connection with customers Interaction with the firm and it employees The technical performance of the firm Support services and systems The core product or service offered Ability to add value and to differentiate as a firm focuses more on the top levels

30. Discussion Questions Is customer satisfaction enough? Is customer delight necessary?

31. The Marketing Mix The conventional view of the marketing mix consisted of four components: product, price, distribution and promotion. Generally acknowledged that this is too narrow today; now includes service, people, technology. Marketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers.

32. Evolution of Marketing

33. Evolution of Marketing Thinking Marketing has evolved through five stages: in the product-focus stage, emphasis is on producing more and better products at the sales-orientation stage, focus shift to selling, moving product from warehouse to customer at the customer-interest stage, emphasis shifts to the customer and the satisfaction of needs the customer-service stage places emphasis on customer service as well as good products the customer-relationship stage sees a much longer-term focus on building relationships with customers

34. The New View of Marketing The marketing emphasis today is on keeping existing customers as well as getting new ones Four principles guide marketing: retention: keeping them coming back referrals: encourage them to recommend us relationships: build an emotional connection recovery: solve problems as they arise

35. Next Class Marketing Environment Marketing Planning Next Class Debate: Which environmental factor is the most important for marketing: demographic change or technology change?