Marketing Concepts Introduction to Marketing Concepts

1. Marketing ConceptsIntroduction to Marketing Concepts MKTG 3110-004 Fall 2014 Mrs. Tamara L. Cohen Class #1

2. Course Introduction • introduce fundamentals of marketing • marketing is basic to our society • “conventional” consumer products • B2B markets • not-for-profit markets • marketing of services

3. Course Objectives • Understand that marketing focuses on identifying & satisfying consumer needs, therefore is critical to success of organizations. • Appreciate value to Marketing function of relationships at various levels & among various interest groups. • Develop awareness of impact of environmental factors on consumer behavior & marketing functions; include global context. • Study each element of Marketing Mix • Comprehend integration of marketing concepts into marketing strategy. • Appreciate social responsibility & ethics in marketing.

4. Textbook Marketing • by Roger Kerin, Steven Hartley & William Rudelius • 11th edition; 2013 • published by McGraw-Hill Irwin • ISBN-13: 978-0-07-802889-2 • Buy new or used • Rent • Digital

5. About ME Personal • Born & raised in South Africa • Married; 5 kids • Avid traveler • International experience • Languages Education • MBA, Wharton School, University of Pennsylvania • BS, University of Cape Town, South Africa Professional • International Travel Consultant - CLT • Founder&Vice President, Garden Essentials, Inc. - CLT • Marketing Manager, Beacon Sweets, Inc. – Newark, NJ • Marketing Manager, Beacon Sweets & Chocolates (Pty) Ltd – South Africa What I Bring to the Class … • I have traveled on 5 continents, and worked in Domestic and Multinational Marketing capacities on 3 continents. • Experience marketing consumer products • Experience marketing services • Experience in business-to-business marketing • Entrepreneurial experience Tamara L. Cohen

6. Grading MidtermExam #1 10% MidtermExam #2 20% Final Exam 25% Pop Quizzes 5% Homework Assignments (best 5 of 8) 30% Guest Speaker: attendance & assignment 10% 100% Extra credit up to 8%

7. Tests & Exams • Multiple choice questions • Fill-in-the-blank • Short answers Exams are based on: • material presented / discussed in class • terms and information from the text book • homework material • guest speaker material

8. Homework • 8 homework assignments • 5 best grades count • + 1% if all 8 completed • Due dates & details in SYLLABUS & HOME-WORK page on web site • MAXIMUM 150 words • Executive MEMO format; 12-point type; double space; WORD format • Writing Resource Center bonus DUE at 3:30 pm

9. Executive Memo Format MEMO TO: me FROM: you DATE: due date SUBJECT: one line only WORD COUNT: ≤150 This is the body of your memo (i.e. homework assignment). Remember: 12-point type, double space, WORD format End: References (if used)

10. 5% + 5% Guest Speaker Scott Gakenheimer • MANDATORY ASSIGNMENT = 5% • MANDATORY ATTENDANCE = 5% • Arrive on time • Leave on time • No wandering in and out • Sign in • NO SCREENS November 24

11. up to + 4% Class Participation • CLASSROOM DISCUSSIONS • ATTENDANCE in regular classes is not mandatory. Exam material comes principally from lectures, and also from assigned readings. • CELL PHONE use in class is distracting and discourteous. You will be asked to leave the room, and your participation may be penalized. • BONUS POINTS for worthwhile contributions in class • OBSERVE Classroom Etiquette (next slide)

12. No cell phone calls or texting Bring laptop computers, iPads, etc, only for taking notes No refreshments Arrive on time. Leave on time. No wandering in and out of class Display name tents in every class Classroom Etiquette If you plan to use a laptop in class, please sit in the BACK ROWS.

13. up to + 8% Extra Credit • Writing Resource Center (WRC) +3% • Take any homework assignment to WRC & email official report to instructor • Extra credit +25% of your grade on that assignment • Maximum 2 assignment extra credits • Complete all 8 homework assignments +1% • Bonus points for in-class contributions +4%

14. Where to find this info.

15. break

16. What is Marketing?

17. KEY TERMS • NEEDS versus WANTS • DEMANDS • Market • Target market • Customer value • Relationship marketing • Relationship management

18. KEY CONCEPTS • The Four Ps = Marketing Mix • Product • Price • Promotion • Place • Marketing program • Marketing concept

19. What is MARKETING? “… the activity for creating, communicating, delivering and exchanging offerings that benefit the organization, its stakeholders and society at large” • discover needs & wants of prospective customers, and • satisfy those needs & wants

20. What is MARKETING? “Marketing is used to identify the customer, satisfy the customer, and keep the customer.”

21. What is MARKETING? … managing profitable customer relationships … satisfying customer needs “… the process by which companies create sound value for customers and build strong customer relationships in order to capture value from customers in return.” VALUEKotler

22. The Marketing Process Understand the marketplace, & customer needs & wants Design marketing strategy with focus on customer Create value FOR customers Capture value FROM customers Construct marketing program to deliver superior value Build profitable relationships & build customer satisfaction Capture value from customers to create profits & customer quality

23. What is MARKETING? Managing expectations

24. A marketing department relates to many people, organizations, and environmental forces

25. What is needed for MARKETING to happen • Parties withunsatisfied needs • Desire and abilityto be satisfied • Way for partiesto communicate • Somethingto exchange

26. MARKETING breakdown • Parties with unmet needs Consumers with taste for peanut butter-&-chocolate combination • Desire & ability to be satisfied Consumers with money to buy these chocolates; stores stocking these chocolates for sale • Ways to communicate Advertising expensive & dominated by major players; browsing exposure too small & slow for high-volume consumer goods • Something to exchange Consumers had money to spend; store-owners had chocolates on shelves

27. Challenge of NEW products How does marketing discover needs that don’t exist (yet)? Consumers may not know what they need or want. Most new products fail: - 94% fail - 33,000 consumable products introduced in US annually Strategies to avoid new product failure: 1. Focus on consumer benefit 2. Learn from past

28. Dr. Care Vanilla-Mint Aerosol ToothpasteWhat “benefits” and what “showstoppers?”

29. Hot Pockets Panini Microwaveable SnacksWhat “benefits” and what “showstoppers?”

30. AT&T CruiseCastWhat “benefits” and what “showstoppers?”

31. Pepsi MaxWhat “benefits” and what “showstoppers?”

32. How MARKETING discovers consumer NEEDSNEEDS versus WANTS • Want • Need • Does Marketing persuadepeople to buy the “wrong” things? • Market • Target Market

33. Maslow’s Hierarchy of Needs } self-fulfillment psychological basic } }

34. Marketing tries to discover consumer needs through research, and then satisfy them with a marketing program

35. Marketing’s 4 Ps PRODUCT a good or service or idea to satisfy a consumer need PRICE amount consumer pays for good (can be cash or kind) PROMOTION means of communication between buyer and seller e.g. advertising, public relations, selling, sales promotion PLACE means of delivering product to consumer, i.e. distribution

36. Example: PRODUCT 4 Ps PRODUCT breakfast cereal PRICE PROMOTION PLACE

37. Example: SERVICE 4 Ps PRODUCT = SERVICE PRICE PROMOTION PLACE

38. Example: IDEA 4 Ps PRODUCT = IDEA PRICE PROMOTION PLACE

39. = benefits = utility Customer Value = unique combination of benefits received by targeted buyers • includes quality, convenience, on-time delivery, before- and after-sales service at specific price

40. Four different orientations in the history of American business Production Era Sales Era Marketing Concept Era Customer Relationship Era • Market Orientation

41. Customer Relationship Management = process of identifying prospective buyers, understanding them thoroughly, & developing favorable long-term perceptions of the organization so buyers will choose them in the marketplace. Fundamental commitment to market orientation facilitates relationship management. Customer experience: What companies think they are providing = what customers say they are receiving?(Remember: Manage expectations.)

42. Breadth & Depth of Marketing Q: WHO markets? A: EVERYONE Q: WHAT is marketed? A: EVERYTHING Goods Services Ideas

43. 10 companies control everything you buy

44. Next class: Marketing & Strategy Preparation: Read Ch. 1 pp.4-5; p.7 fig.1-2; pp.9-11; pp.18-19 Ch. 2 p.26; pp.32-33; p.39 SWOT