Course Introduction

Course Introduction

http://www.cbpp.uaa.alaska.edu/afef/

http://www.cbpp.uaa.alaska.edu/afef/BA343-Syllabus.htm

Course Power Points Online & @ CBPP Computer Lab: BA343 Principles of Marketing

Course Format Lecture Video-illustration*

Course Objective Create an appreciation for thepresent role & evolving scopeof marketing-- in all organizations & in a global economy

With particular attention given to: o Strategic Planning o Marketing Research o Market Segmentation o Consumer Behavior o Product & Market Development o Customer Relationship Management o Pricing, Promotion & Distribution o Service, International & Internet Marketing

By end of course you will be… “All –Knowing” of the “Principles of Marketing”

Don’t Count on it! &- If You Are Not Double your Tuition $ Back!

No TextBook! 43% More Facts New & More Exams! 62% Less BS! New & Improved for Fall 2009

Critical Comments-IDEA • You need a TextBook--would be easier to follow “My eyes hurt reading so many powerpoint-slides” • You go too fast (I hear/write too slow) • Your jokes aren’t funny • Your tests aren’t fair- questions too picky & tricky • “Professor should wear pants…”

Course Assessment: 3 Exams worth 25% each Exam#1 Sept. 25th. (Wks 1-4) Exam #2 Oct. 30th. (Wks 6-8) Exam #3 Dec. 4th. (Wks 9,11-13) 1 Marketing Plan (Nov 20) @ 25%

The Marketing Plan • Select or create an entity (product, service, company, organization, person, place or idea) which you would like to "market." • Design & outline a "marketing plan" for that entity--Your plan must follow & contain all the elements of the marketing planning process presented in this course: Situation & SWOT Analyses- Strategic Planning & Marketing Mix. (Drafts can be submitted anytime for review & comment )

Post suggested exam questions for each week's lecture, readings &/or viewings.... • @http://groups.yahoo.com/group/UAA-BA343 • “Book Review”- • Free! Why $0.00 Is the Future of Businessby Chris Anderson • "FREE" for free!ebook & audiobook versions • Trendspotting

Today- We’llExamine: • What “it” is • Note “its” significance… • Note “its” place w/in “Scheme of Things” • Look at the Big Picture: Re: how this course is organized

Begin with the Essential Question… What is Marketing? & Where did “it” come from?

Philosophically the Question is…. What is Marketing?

Marketing Defined Pick a definition…. Many to choose from…

Marketing is: Pick a definition • a FUNCTION • a PROCESS • a PERFORMANCE • a FUNCTION & PROCESS • more than a Function- it’s an ORIENTATION

Classic Functional Definition All activities performed in between: The Point of Production & The Point of Consumption

1st Formal Definition ~1919 *Marketing and Merchandising by Ralph Butler & John Swinney, • Book distinguishes marketing from merchandising, • w/ marketing being something manufacturers do • & merchandising being the domain of jobbers; retailers. • Marketing defined as‘the manner in which the product is disposed of, the way in which it is distributed…, through various channels of trade.”

Marketing Defined -1935 - “The performance of business activities that direct the flow of goods & services from producers to consumers.”

Marketing Defined-as a Process- 1985 "The process of planning & executing theconception, pricing, promotion & distributionofideas goods & services tocreate exchange & satisfy individual & organizational objectives"

Consumers Segments Behavior & Perceptions Conditions Macro-Environment (PEST) Company Objectives & Resources Competitors Current & Prospective Marketing is a process of planning& executing Executing thru: Marketing Management Planning w/: Marketing Research Motivate Marketing Personnel Communicate w/ Marketing Unit Coordinate Marketing Activities Establish Timetable

Product Price Target & Position Place Promo …the conception, pricing, promotion, & distribution…

...of ideas, goods & services… • Marketing- not limited to commercial enterprise • Anything & everything marketed…

….Events, Organizations, Places, Persons, Social Causes & Concerns

Willing to sell Willing to buy "The process of planning & executing the conception, pricing, promotion & distribution of ideas, goods & services etc. to create exchange & satisfy individual & organizational objectives" Marketing

"The process of planning & executing the conception, pricing, promotion & distribution of ideas goods & services to create exchange & satisfy individual & organizational objectives" &

Another Marketing Definition • A social & managerial process by which: • individuals & groups obtain what they need & want • through creating & exchanging products & value with others.

Learning Environment Tuition Promised Action Votes Exchanges

Fee Consulting Products/services Money Exchanges

Willing to sell Willing to buy Marketing’s “utility”/value derived from its Facilitation of Exchange! Temporal Utility Spatial Utility Transactional Utility Marketing

“Value Added Marketing” Transaction utility Increased Satisfaction Added Values Place utility Time utility The Product Form utility Store has it in stock Delivered to your home Pay with your VISA card

Bringing Producers & Consumers Together Temporal Utility Producers / consumers produce / consume at different times. Marketing makes good or service Available whenconsumer wants/needs it

Bringing Producers & Consumers Together Spatial Utility Producers & consumers generally separated by space / geography Marketing makes availability of good or service where consumer wants / needs it

Bringing Producers & Consumers Together Transactional Utility Transferring title of product/ service from producer to consumer Marketing facilitates ease of Purchasing/ Financing product or service

The Latest Official AMA Definition

In 2004-AMA Re-defined Marketing • "Marketing is an organizational function & a set of processes • forcreating, communicating & delivering value to customers • & formanaging customer relationshipsin ways that benefit the organization & its stakeholders." August-2004

The AMA Rationale: “Technology & marketing been changing quite rapidly over last five to 10 years. “Marketing should be customer-centric -- not brand –centric” • The 1985 definition was not encompassing enough. The new definition more clearly infuses the customer into marketing."

Marketing > Function =An Orientation “Marketing is so basic that it cannot be considered a separate functionon a par w/others such as manufacturing or personnel…

Marketing > Function =An Orientation “Marketing is… …the whole business seen from the point of view of its final result, -from the customers’ point of view.”

Management Reorientation:The Marketing Concept Focus on Consumer • Not product • Long –Term Relationships • Not Short-term Sales

What is Marketing • Marketing is managing profitable customer relationships. • Goals: • Attract new customers by promising superior value. • Keep and grow current customers by delivering satisfaction.

Management Reorientation:Relationship Marketing Long-term Wide -Angle view of the customer build life-long relationship in the hope of establishing long-term repeat purchasing.

Losing a customer means losing the entire stream of purchases over a lifetime of patronage = Customer Lifetime Value

Estimate Customer Lifetime Value (CLV) • Estimate the number of purchase occasions by the customer over a given interval… • Estimate the average amount spent per visit. • Estimate likely additional purchases thru cross selling & upselling • Subtract the costs of maintaining the account per visit. • Add the value of the new referrals by the customer. • Take the present value of this net income stream with an appropriate discount rate.

A lot of Media + Not much Loyalty Can cost 5 times as much to acquire a new customer ……. vs.keep an existing one Costs of new customer acquisition have increased dramatically:

Retaining an additional 5%of customers each year… …can increase profits by 25-35%

Course Introduction