mkt 304 principles of marketing lecture 1 2 welcome to marketing! professor:dr. freddy lee, tel:...
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MKT 304 Principles of Marketing
Lecture 1
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Welcome to Marketing!
Professor: Dr. Freddy Lee
, Tel:
Course Web-site:http://www.mgmt120.cjb.net
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SchedulesClass Meeting: Section 1: MD 2.30-4.10PM
5: M 6.10PM- 10PM
Office Hours: M, D 1-2.15pm
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)
40%Final examination
20%Mid-term examination
10%Participation
15%Case report 2 (group)
15%Case report 1 (group)
PercentComponent
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Why Study Marketing?
Costs & Opportunity
About 50% of Total Product Costs are Marketing Costs
CareersAbout 25 to 33% of
Work Force hold Marketing Positions
Marketing
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 PLIGHTOF ENDANGERED SPECIES LIKE THE BALDEAGLE, AFRICAN ELEPHANT, AMERICAN
Sooner or Lateryou’ll come across
an endangered speciesyou care about.
CROCODILE AND POLAR BEAR. BUT WITH MOUNTING ENVIRONMENTAL DAMAGE FROMSUCH THINGS AS OIL SPILLS,ACID RAIN DESTRUCTION OF THE RAIN FORESTS, CARELESS WASTE DISPOSAL AND HOLES INTHE OZONE LAYER, ANOTHER SPECIES ISIN DANGER. THE ONLY SPECIES THAT CANDO SOMETHING TO STOP IT. TO HELP ESTABLISH SCHOLARSHIPS FOR ENVIRO EDUCATION, PLEASE SEND A DONATION TOTHE 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
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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
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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
Form
Task
Time
Place
Possession
Provided by Production Provided by Marketing
Utility=Value from
Satisfying Needs
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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 MarketingOrientation
Starting point Focus Means Ends
Production Orientation
MarketingOrientation
Factory
Market
Existing Easy ToProduceProducts
Customer needs
Selling andpromotion
Integratedmarketing
Profits viasales volume
Profits viaCustomer satis-faction
“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 MarketingOrientation
Internal External
WarehouseShippingFinancePersonnelPurchasing
SalesAdvertisingSales Promo
ProductionAccountingR&D
All departments work together to provideCustomer satisfaction
Each department work to achieveDepartmental goals
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Emphasis on Whole System
KeyCharacteristics
KeyCharacteristics
Every Economy Needs It
Every Economy Needs It
Focus on a Society’s
Objectives
Emphasis on Whole SystemEmphasis on
Whole SystemEvery Economy
Needs It
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Macro-Marketing
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Macro Marketing Example
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A Central Market
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Pure Subsistence Economy
Marketing Involves Exchange!Marketing Involves Exchange!
All Economies Need Macro-Marketing Systems
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Central Markets Help Exchange
Ten exchanges required without central market
Pots
Baskets
KnivesHoes
Hats
Only five exchanges are required when a middleman (intermediary) in a central market is used
CentralMarket
Middleman
Exhibit 1-2
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More Growth = More Global Trade
More Growth = More Global Trade
Tariffs and Quotas Control Flows
Tariffs and Quotas Control Flows
International CountertradeInternational Countertrade
Increased Global TradeIncreased
Global Trade
More Growth = More Global Trade
More Growth = More Global Trade
Tariffs and Quotas Control Flows
Tariffs and Quotas Control Flows
International CountertradeInternational Countertrade
Increased Global TradeIncreased
Global Trade
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
WTO Develops
Rules
WTO Develops
Rules
Nations’ Macro-Marketing Systems Are Connected
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
TransportFirms
ISP's
ProductTestingFirms
Ad Agencies
ResearchFirms Consumers
Producers Wholesalers Retailers
OtherSpecialists
Who Performs Marketing Functions?
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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