pm 2010 week 1 - intro v1.0

8/7/2019 PM 2010 Week 1 - Intro v1.0

1/36

Principles of Marketing: Introduction and definition

Prepared by: Tan Boon In, 2009, main text reference Kurtz.

1

Principles of Marketing(UBTM1013/UKTM1013)Lecturer:

Garry Tan Wei Han, BEc(Hons) (UM), MSc (Edinburgh), ALMI,ACS, AMIM

Co-Lecturer (FBF):

Lam Siew Yong, BSc (UPM), MSc (UPM)

Co-Lecturer (FAM):

Loke Yoke Mei, BA(Hons)(UEL), MSc (Notts)

Tutors:

ChoyJohnn Yee, BMktg(Hons) UTAR

Garry Tan Wei Han, BEc(Hons) (UM), MSc (Edinburgh), ALMI,ACS, AMIM

Gengeswari a/p Krishnapillai , BMgt(Hons) (UTM), MMgt (UTM)

Jenny Marisa Lim Dao Siang, BA(BAdmin), Abertay Dundee, MBA (MMU)

Lam Siew Yong, BSc (UPM), MSc (UPM)

Lee Weng Onn, BA(Hons)(UNN), MBA (UPM)

Loke Yoke Mei, BA(Hons)(UEL), MSc (Notts))

8/7/2019 PM 2010 Week 1 - Intro v1.0

2/36



2

Lecture: 14 weeks, 2 hours.

Tutorial: 14 weeks, 1.5 hours.Assessment:

Attendance (Lecture and tutorial)

Mid-term test (end of week 7) (1 hour). Topics covered inthis test are from topic 1 to 5.

Answer two out of three essay questions (12%)

End-semester examination:

UBTM (2 hours), UKTM1013(3 hours)

One compulsory case study and answer two out of three essay

questions (60%)

8/7/2019 PM 2010 Week 1 - Intro v1.0

3/36



3

Learning Objectives for the module:

To introduce marketing concepts with an understanding and knowledge of the

functions and role of marketing in an organisation and its relationship toorganisational management.

To enable students to understand the marketing management process and

analyse market structure and buying behaviour.

To expose students to the product, pricing, distribution and promotion decisions

(The 4Ps or marketing mix).

Learning Outcome for the module:

Students will be able to apply the marketing concepts in detail relating to

making decisions in the future.

Students will be able to use the theoretical frameworks to understand the

interactions between business organisations.

Students will be able to apply the knowledge of buyer behaviour in practice

8/7/2019 PM 2010 Week 1 - Intro v1.0

4/36



4

Main text:Kurtz and Boone, (2008). Principles of Contemporary Marketing:

International Student Edition. (14th ed.).Thomson South-Western.

Supplementary texts:Kotler, P &Armstrong, G. (2008). Principles of Marketing. (12th ed.). New

Jersey: Prentice Hall.

Kotler, P.,Armstrong, G.,Ang, S.H., Leong, S.M., and Tse, D. K., (2005).Principles of Marketing: An Asian Perspective. Prentice Hall.

8/7/2019 PM 2010 Week 1 - Intro v1.0

5/36



5

My consultation hours:

Wednesday : 3.30pm 5.00pm

Thursday : 2.00am 5.00am

Email: [email protected]: H146

Always look for your respective tutor first.

8/7/2019 PM 2010 Week 1 - Intro v1.0

6/36

Learning Objectives

Marketing: The Art and Science of Satisfying Customers

1

2

3

4

5

6

7Define marketing,

explain how it creates

utility, and describe its

role in the marketplace.

Contrast marketing

activities during the

four eras in the history

of marketing.

Explain the marketingmyopia and importance

of avoiding

Describe the

characteristics of not-

for-profit marketing.

Identify and briefly

explain nontraditional

marketing and tactics

used.

Outline the importance

of creativity, criticalthinking, and the

technology revolution in

marketing.

Explain the shift from

transaction-based

marketing to

relationship marketing.

8/7/2019 PM 2010 Week 1 - Intro v1.0

7/36



7

What is marketing?In our society, producing and marketing goods and services are the essence ofeconomic activities, creating a benefit called utility.

Utility is the want-satisfying power ofa good or service or in another word,

the sum of benefits we receive from using a good or services. By working toensure that people have the type of product they want, where and when they

want it, the marketing system makes our lives easier.

Marketing can provide several different kids of utility in order to provide value

to consumersa. Form utility

b. Time utility

c. Place utility

d. Ownership utility

8/7/2019 PM 2010 Week 1 - Intro v1.0

8/36



8

8/7/2019 PM 2010 Week 1 - Intro v1.0

9/36



9

8/7/2019 PM 2010 Week 1 - Intro v1.0

10/36



10

So how do organizations and marketers deal with this wants-

satisfying power (utility)?

Organizations can create customers by a three-step approach:

Identifying needs in the marketplace.

Finding out which needs the organization can profitably serve.

Developing goods and services that appeal to potential buyers.

8/7/2019 PM 2010 Week 1 - Intro v1.0

11/36



11

Whereas marketers are responsible for:

Identifying customer needs.

Designing products that meet those needs.

Communicating information about those goods and services to prospective

buyers.

Making the items available at the right times and places.

Pricing merchandise and services to reflect costs, competition, and customers

ability to buy.

Providing the necessary service and follow-up to ensure customer satisfaction

after the purchase.

8/7/2019 PM 2010 Week 1 - Intro v1.0

12/36



12

ADEFINITION OF MARKETING

Marketing is aconcept that companywide consumerorientation* with theobjective ofachieving long-run success.

Involves:

Analyzing customer needs.

Obtaining the information necessary for design and productionthat match buyer expectations.

Satisfying customer preferences.

Creating and maintaining relationships with customers and suppliers

*Companywide consumer orientation here means marketing involves the totalcompany, not just the marketing department staff. Everyone works for the benefits of

the customers and to fulfill the companys objectives.

8/7/2019 PM 2010 Week 1 - Intro v1.0

13/36



13

ADEFINITION OF MARKETING

The word marketing encompasses a broad scope of activities

An organizational function and a set of processes for creating,

communicating, and delivering value to customers, and for managing

customer relationships in ways that benefit the organization and itsstakeholders.

8/7/2019 PM 2010 Week 1 - Intro v1.0

14/36

8/7/2019 PM 2010 Week 1 - Intro v1.0

15/36



15

FOURERAS IN THE HISTORYOFMARKETING

Exchange processActivity in which two or more parties give something ofvalue to each other to satisfy perceived need.

8/7/2019 PM 2010 Week 1 - Intro v1.0

16/36



16

The Production Era

Highly developed economics in western Europe and North America focusednarrowly on production. Manufacturing stressed that consumers will favor

products that are available and highly affordable.

Management should focus on improving production and distribution

efficiency. For example Henry Fords philosophy was to perfect the Model T

so that the cost could be reduced

You can have any color as long as it was black Henry Ford

8/7/2019 PM 2010 Week 1 - Intro v1.0

17/36



17

The Selling Era

Products availability exceeds demand Competition grew.

During the Great Depression in the 1930s when money was scare for most

people. Firms shifted from a product orientation to moving their goods in any

way they could.

Holds the view that marketing as a sales function, or a way to move

products out of warehouse so that inventory dont pile up. The philosophy at

this stage was to hire more sales people to sell it .

8/7/2019 PM 2010 Week 1 - Intro v1.0

18/36



18

Emergence of the Marketing Concept

Occurred during the shift from a sellers market to a buyers market afterWorld War II.

Created the need for greaterconsumer orientation.

Business philosophy incorporating the marketing concept that

emphasizes first determining un-met consumer needs and then

designing a system for satisfying them.

Marketing concept Company-wide consumer orientation for achieving

long-term success. This is especially important where service quality is

perceived to be important in the society.

See attachment Mc DonaldsApplies The Marketing Concept

Relationship marketing Developing and maintaining of long-term, cost-

effective relationships with individual customers, suppliers, employees, and

other partners for mutual benefit.

8/7/2019 PM 2010 Week 1 - Intro v1.0

19/36



19

The American Marketing Association (AMA) was

established in 1915

http://www.marketingpower.com/Pages/default.aspx

And Institute of Marketing Malaysia was

established in 1977

http://www.imm.org.my/index.html

Association of Accredited Advertising Agencies

Malaysia (aaaa or 4A

s) 1960s

http://www.aaaa.org.my/v2/index.php?option=com_content&view=frontpage&Itemid=1

8/7/2019 PM 2010 Week 1 - Intro v1.0

20/36



20

AVOIDING MARKETING MYOPIA

Marketing myopia is when managements failure to recognize the scopeof its business - Theodore Levitt

Production oriented rather than customer-oriented management endangers

future growth

8/7/2019 PM 2010 Week 1 - Intro v1.0

21/36

8/7/2019 PM 2010 Week 1 - Intro v1.0

22/36



22

EXPANDING THE TRADITIONAL BOUNDARIES

OFMARKETING

MARKETING IN NOT-FOR-PROFIT

ORGANIZATIONS

25 percent of U.S. population works or volunteers for a not-

for-profit organization.

Operate in public sector and private sector.

Not-for-profits sometimes promote their messages through

partnerships with commercial firms.

Some of the notable names in Malaysia for non-profitorganizations are MAKNA (Majlis Kanser Nasional), MERCY

(Malaysia Medical Relief Society) , WWF, Red Crescent, St

John, UTAR etc.

In overseas, SalvationArmy, Oxfam, Greenpeace etc.

8/7/2019 PM 2010 Week 1 - Intro v1.0

23/36



23

CHARACTERISTICS OF NOT-

FOR-PROFIT MARKETING

Purpose is to generate revenue to support

their causes.

Must compete with other organizations

for donors dollars.

Must often market to multiple audiences.

Example: College or university targets

prospective students, but also current

students, parents, donors, alumni, faculty,

government agencies, and others.

Therefore, non-profit organizations also

need marketing.

8/7/2019 PM 2010 Week 1 - Intro v1.0

24/36



24

CHARACTERISTICS OF NOT-FOR-

PROFIT MARKETING

How much Bill-Melinda Foundation has?

(About USD35b).

Anyone recognize this symbol?

(Prince Charles Foundation).

8/7/2019 PM 2010 Week 1 - Intro v1.0

25/36



25

NONTRADITIONAL MARKETING

8/7/2019 PM 2010 Week 1 - Intro v1.0

26/36

8/7/2019 PM 2010 Week 1 - Intro v1.0

27/36



27

i)CREATIVITYAND CRITICAL THINKING

The challenges of the marketplace require critical thinking and creativity.

Creativity produces original ideas or knowledge.

Example : Coca-Cola vs. Pepsi

Critical thinking determines the authenticity, accuracy, and worth of

information, knowledge, claims, and arguments.

8/7/2019 PM 2010 Week 1 - Intro v1.0

28/36



28

ii) FROM TRANSACTION-BASED MARKETING

TORELATIONSHIPMARKETING

View of marketing as transaction-based is being replaced by a longer-term

approach.

Focus is on developing customers into repeat, loyal customers.

Over long-term, increases lifetime value of the customer.

Goal is to move customer up the loyalty ladder:

New customer

Regular purchaser

Loyal supporter

Advocate

Repeat customers are a source of buzz marketing.

8/7/2019 PM 2010 Week 1 - Intro v1.0

29/36

8/7/2019 PM 2010 Week 1 - Intro v1.0

30/36



30

iii)TECHNOLOGYREVOLUTION IN MARKETING

Internet sales in Malaysia (purchase of goods and services and bill payments to reachUS$4.2bil (RM15.3bil) this year 2009 (Star Newspaper 11,April 2009)

A RECENT survey conducted by The Nielsen Company on online shopping habits

reveals that about 30% of Malaysian Internet users have conducted online purchases.

(Star Newspaper 11,April 2009)

According to IDCs Skypad 2008 Study, Malaysia ranks with the highest in percentageof users among the nine countries surveyed in Asia Pacific who uses the Internet to

purchase travel-related items. Up to 82% of Malaysian Internet users have purchased

travel items online. Apart from that, shopping for books is also high on the list with 69%

of them. (Star Newspaper 11,April 2009)

Implementation of mandatory rebates (5% rebate in the first year and a 10% rebate for

renewals) for car owners if they buy motor insurance directly from the companies via

other channels such as the Internet (Star Newspaper 20,May 2009) How will this

translate into?

8/7/2019 PM 2010 Week 1 - Intro v1.0

31/36



31

iv)COSTS AND FUNCTIONSOFMARKETING

Marketing costs are typically 40 to 60 percent of total product costs.

On average. Half of the costs involved in a product..

And these cost resulted from the eight business functions that perform within

the marketing ambit.The challenge is how to spend effectively.

8/7/2019 PM 2010 Week 1 - Intro v1.0

32/36



32

TODAYS GLOBAL MARKETPLACE - Challenges

Growing importance because of international trade agreements such as

AFTA (ASEAN Free Trade Agreement), NAFTA (North American Free

Trade Agreement), WTO (World Trade Organization), bilateral free trade

agreements, growth of electronic business, and economic interdependence.

Companies seek the most efficient manufacturing sites and most lucrative

markets worldwide.

Marketing is even more important in this globalization era, how can SIA,

Samsung and Sony achieved the icon status worldwide today without good

marketing?

8/7/2019 PM 2010 Week 1 - Intro v1.0

33/36



33

Jobs forMarketing

Entry Level (approximately less 3 years experience)

Marketing executive most of the time you will be doing sales.

Sales executive sales in any industry

Marketing research executive - very few openings

Merchandisers in the super and hypermarkets

Account service executive advertising agency, servicing clientsKey account executive servicing major clients such as supermarkets and

hypermarkets, B2B (business-to-business)

Management trainee usually in large corporations

Product executive junior marketing level with less than three years experience

Brand Executive - junior marketing level with less than three years experience

(RM2-3k)

8/7/2019 PM 2010 Week 1 - Intro v1.0

34/36



34

Jobs forMarketing

Middle Level(approximately 2 7 years experience)

Brand manager

Product manager

Key account manager

Product group managerMerchandising Manager

Sales / Business manager

Account Manager

Media Manager

(RM3 6k)

8/7/2019 PM 2010 Week 1 - Intro v1.0

35/36



35

Jobs forMarketing

Senior Level(approximately 7 15 years experience)

Marketing manager

Marketing research manager

Product category manager

Sales director

Marketing director

Retail director

Media director

GM Sales / Marketing

Account director

Media directorCreative director

Regional manager

Regional director

Consumer Banking Director

(RM6 15k .)

8/7/2019 PM 2010 Week 1 - Intro v1.0

36/36



36

Good luck,

study hard and you

will enjoy

marketing!

pm 2010 week 1 - intro v1.0

Documents