May 13, 2003 Principles of Marketing MGT C04 1

Principles of MarketingMGT C04

Session 1May 13, 2003

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’ Most importantly…how do I score some rockin’

grades?grades?

• What’s the big deal about Marketing?– An introduction to the context in which

Marketing fits

May 13, 2003 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

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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!HAVE LOTS OF FUN!

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Text Book

Principles of Marketing

Fifth Canadian Edition

Philip Kotler, Gary Armstrong, Peggy H. Cunningham

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What are we going to do inthe next 12 sessions?…

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 ProjectClass PresentationsAugust 18-22 FINAL EXAMINATION    

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…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%

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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 Tip for good grades: Try to ensure this project is is as close to real lifeas close to real life as possible as possible

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What is Marketing?

• Many definitions, but for the purposes of this class we’ll follow Kotler et al:

Marketing is a social and managerial Marketing is a social and managerial process by which individuals and groups process by which individuals and groups obtain what they need and want through obtain what they need and want through

creating and exchanging products and creating and exchanging products and value with othersvalue with others

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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 Discussion: is Marketing less important in such

companies?companies?‘‘More than half the polled executives at 250 corporations ranked Marketing as the More than half the polled executives at 250 corporations ranked Marketing as the most important element of strategy’ - Yankelovitch, Skelly and White Survey, 1995most important element of strategy’ - Yankelovitch, Skelly and White Survey, 1995

‘‘The fastest way up the corporate ladder is through the Marketing Department’The fastest way up the corporate ladder is through the Marketing Department’ - Economist Survey, 1997 - Economist Survey, 1997

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Core Marketing Concepts…1

1.1. Needs, Wants, and DemandsNeeds, Wants, and Demands

2.2. Products and ServicesProducts and Services

3.3. Value, Satisfaction and QualityValue, Satisfaction and Quality

4.4. Exchange, Transactions and RelationshipsExchange, Transactions and Relationships

5.5. MarketsMarkets• 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 Course Note: In this course, you will be tested on concepts, not as sterile definitions but on real-life concepts, not as sterile definitions but on real-life

applicationapplication

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Core Marketing Concepts…2

Needs, Wants, and DemandsNeeds, Wants, and Demands• Discussion: what’s the difference between Discussion: what’s the difference between

these?these?• Discussion: why is it important to understand Discussion: why is it important to understand

the difference?the difference?

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Core Marketing Concepts…3

Products and ServicesProducts and Services• Discussion: Discussion:

– What’s the difference?What’s the difference?– Can services be made into products?Can services be made into products?– Can products be made into services?Can products be made into services?

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Core Marketing Concepts…4

Value, Satisfaction and QualityValue, Satisfaction and Quality• Discussion: how would you calculate consumer Discussion: how would you calculate consumer

value in:value in:– Consuming a can of Coca-Cola?Consuming a can of Coca-Cola?– Joining a health club?Joining a health club?– Buying a lottery ticket?Buying a lottery ticket?– Enjoying a massage at a spa?Enjoying a massage at a spa?

• Discussion: think of talk about an experience Discussion: think of talk about an experience where as a consumer, you felt:where as a consumer, you felt:– Satisfied with the value you received?Satisfied with the value you received?– Dissatisfied with the value you received?Dissatisfied with the value you received?

May 13, 2003 Principles of Marketing MGT C04 15

Core Marketing Concepts…5

Exchange, Transactions and RelationshipsExchange, 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

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Core Marketing Concepts…2

MarketsMarkets• 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

May 13, 2003 Principles of Marketing MGT C04 17

Marketing Management Practice

Three stagesThree 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

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Evolution of Business Models and the role of Marketing

SocietalSocietalMktgMktg

MarketingMarketingSellingSellingProductionProductionProductProduct

As business philosophy has evolved, so As business philosophy has evolved, so has the role of marketing…customer has the role of marketing…customer

satisfaction is now at the core of most satisfaction is now at the core of most successful corporationssuccessful corporations

As business philosophy has evolved, so As business philosophy has evolved, so has the role of marketing…customer has the role of marketing…customer

satisfaction is now at the core of most satisfaction is now at the core of most successful corporationssuccessful corporations

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The Marketing Concept itself has evolved

1) Catering to the customer1) Catering to the customer1) Catering to the customer1) Catering to the customer

2) Anticipating the customer2) Anticipating the customer2) Anticipating the customer2) Anticipating the customer

3) Leading the customer3) Leading the customer3) Leading the customer3) Leading the customer

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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?

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Recap

• Today we’ve covered Chapter 1 of the text• We’ve reviewed definitions of some basic

concepts…remember we have not yet reached remember we have not yet reached the marketing terminology we will be dealing the marketing terminology we will be dealing with for the majority of the coursewith for the majority of the course

• There’s lots to come and lots to learn…the fun has just begun!