Principles of Marketing MGT C04

1. Principles of MarketingMGT C04 Session 1 May 13, 2003 Principles of Marketing MGT C04

2. Structure for today: 3 questions • Who is this guy? • What are we going to do for the next 12 Tuesday evenings? • Most importantly…how do I score some rockin’ grades? • What’s the big deal about Marketing? • An introduction to the context in which Marketing fits Principles of Marketing MGT C04

3. Who is this guy? • R P Kumar • B.Sc. Mechanical Engineering, MBA (India) • 17 years in marketing/advertising, primarily on packaged goods businesses in India, Middle East and Canada • Vice-President, Director of Global Tools • Foote, Cone and Belding • At US$193MM, # 8 in USA revenue rankings • At US$379MM, among the world’s top ad agency brands • Member of the Interpublic Group, the world’s second largest communications supergroup (over US$6 Billion) • North American clients/brands worked on: • Kraft Canada: Delissio Pizza, Oreos, Chips Ahoy!, Kraft Salad Dressings, Crispers, Corn Nuts, Jell-O, Cool Whip, etc. • SC Johnson: Fantastik, Glade, Raid, Pledge, Ziploc, etc. • Tetley Tea • Circuit City Principles of Marketing MGT C04

4. Course Goals • To outline the marketing function and its role within a corporation’s business strategies, also hopefully generating a passion for the Marketing discipline and empowering you to evaluate Marketing as a possible career choice • To introduce you to marketing strategy and to the elements of marketing analysis: customer analysis, company analysis, and competitor analysis • To familiarize you with the elements of the marketing mix (product, pricing, promotion, and distribution strategies) and enhance your problem solving and decision making abilities in these operational areas of marketing tactics HAVE LOTS OF FUN! Principles of Marketing MGT C04

5. Text Book Principles of Marketing Fifth Canadian Edition Philip Kotler, Gary Armstrong, Peggy H. Cunningham Principles of Marketing MGT C04

6. Date Topic Readings/Material Assignments Due Week 1 (May 13) Introduction to Marketing Ch 1 Week 2 (May 20) Marketing Process and Company Analysis Ch 2, Ch 3 Group Names Week 3 (May 27) Customer Analysis: Buyer Behavior Ch 5, Ch 6 Project Description Week 4 (June 3) Customer Analysis: Segmentation, Targeting, Positioning Ch 7 Week 5 (June 10) Competitor Analysis Lecture notes Week 6 (June 17) Marketing Research and Mid-Course Review Ch 4 Week 7 (June 24) Mid-Term Examination July 1 Canada Day (Holiday) Week 8 (July 8) Product Policy: New Products Ch 8, Ch 9 Group Assignment Week 9 (July 15) Pricing Ch 10 Week 10 (July 22) Communication and Advertising Ch 13, Ch 14, Ch 15 Week 11 (July 29) Channels of Distribution and Course Recap Ch 11, Ch 12 Week 12 (Aug 5) Group Presentations None Group Project Class Presentations August 18-22 FINAL EXAMINATION What are we going to do inthe next 12 sessions?… Principles of Marketing MGT C04

7. …and how do I score some really serious grades? • There’s no rocket science to getting good grades • The secret: Work Hard! • Individual Evaluation: • Mid-term Exam 20% • Final Exam 35% •  Group Evaluation: • Group Project and Presentation 35% • Group Assignment 10% Principles of Marketing MGT C04

8. Group Project and Presentation • Take my advice…take this seriously! This can make or break your grade • First step: give me your groupings in next class • Read the course outline carefully for details on the project • Tip for good grades: Try to ensure this project is as close to real life as possible Principles of Marketing MGT C04

9. What is Marketing? • Many definitions, but for the purposes of this class we’ll follow Kotler et al: Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others Principles of Marketing MGT C04

10. Role of Marketing ina Business Organisation • Marketing co-exists in companies as an equal partner with Operations and Finance/Accounting • In many organisations, Marketing personnel are the ‘natural’ future leaders (P&G, other consumer goods marketers) • Some companies are naturally attuned to having Finance experts (most banks, investment companies); or scientists (NASA); or • Discussion: is Marketing less important in such companies? ‘More than half the polled executives at 250 corporations ranked Marketing as the most important element of strategy’ - Yankelovitch, Skelly and White Survey, 1995 ‘The fastest way up the corporate ladder is through the Marketing Department’ - Economist Survey, 1997 Principles of Marketing MGT C04

11. Core Marketing Concepts…1 • Needs, Wants, and Demands • Products and Services • Value, Satisfaction and Quality • Exchange, Transactions and Relationships • Markets • Please go through the definitions from the text book… • Understand the words, the meanings… • …and forget about them! • Important to understand that marketing is all about concepts…the clearer they are, the easier your lives are going to be Course Note: In this course, you will be tested on concepts, not as sterile definitions but on real-life application Principles of Marketing MGT C04

12. Core Marketing Concepts…2 Needs, Wants, and Demands • Discussion: what’s the difference between these? • Discussion: why is it important to understand the difference? Principles of Marketing MGT C04

13. Core Marketing Concepts…3 Products and Services • Discussion: • What’s the difference? • Can services be made into products? • Can products be made into services? Principles of Marketing MGT C04

14. Core Marketing Concepts…4 Value, Satisfaction and Quality • Discussion: how would you calculate consumer value in: • Consuming a can of Coca-Cola? • Joining a health club? • Buying a lottery ticket? • Enjoying a massage at a spa? • Discussion: think of talk about an experience where as a consumer, you felt: • Satisfied with the value you received? • Dissatisfied with the value you received? Principles of Marketing MGT C04

15. Core Marketing Concepts…5 Exchange, Transactions and Relationships • Discussion: an example of a non-monetary business transaction in our day-to-day life • Recently, as the owner of a particular brand of car, my friend received an invitation to an exclusive preview of their new luxury car, accompanied by cocktails and hors d’oeuvres: • What is the company trying to do? • How will it help them…immediately and in the future? • The ultimate marketing asset: an entire marketing network Principles of Marketing MGT C04

16. Core Marketing Concepts…2 Markets • No longer defined as a physical space where transactions take place • In this course, when we refer to ‘Market’, it is in the sense of a collection of buyers and sellers in a particular need area, e.g. the housing market, or the commodity market • Discussion: name three markets Principles of Marketing MGT C04

17. Marketing Management Practice Three stages • Discussion: think of examples (from your own lives or reading/knowledge), of companies/ individuals who are involved in the three forms of Marketing Management Practice: • Entrepreneurial • Formulated • Intrapreneurial Principles of Marketing MGT C04

18. Marketing Selling Societal Mktg Production Product Evolution of Business Models and the role of Marketing As business philosophy has evolved, so has the role of marketing…customer satisfaction is now at the core of most successful corporations Principles of Marketing MGT C04

19. 1) Catering to the customer 2) Anticipating the customer 3) Leading the customer The Marketing Concept itself has evolved Principles of Marketing MGT C04

20. How does Marketing fitinto our lives today? • Technological advances have allowed us to connect even more strongly with: • Customers • Marketing Partners • World in general • Discussion: how has the Internet impacted the role of marketing in your own lives? Principles of Marketing MGT C04

21. Recap • Today we’ve covered Chapter 1 of the text • We’ve reviewed definitions of some basic concepts…remember we have not yet reached the marketing terminology we will be dealing with for the majority of the course • There’s lots to come and lots to learn…the fun has just begun! Principles of Marketing MGT C04