Principles of Marketing MGT C04

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Principles of MarketingMGT C04

• Session 1
• May 13, 2003

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Structure for today 3 questions

• Who is this guy?
• What are we going to do for the next 12 Tuesday
  evenings?
• Most importantlyhow do I score some rockin
  grades?
• Whats the big deal about Marketing?
• An introduction to the context in which Marketing
  fits

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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 US193MM, 8 in USA revenue rankings
• At US379MM, among the worlds top ad agency
  brands
• Member of the Interpublic Group, the worlds
  second largest communications supergroup (over
  US6 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 corporations 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!

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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?
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and how do I score some really serious grades?

• Theres 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 advicetake 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

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What is Marketing?

• Many definitions, but for the purposes of this
  class well 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

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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 (PG, 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
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Core Marketing Concepts1

• 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 conceptsthe 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

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Core Marketing Concepts2

• Needs, Wants, and Demands
• Discussion whats the difference between these?
• Discussion why is it important to understand the
  difference?

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Core Marketing Concepts3

• Products and Services
• Discussion
• Whats the difference?
• Can services be made into products?
• Can products be made into services?

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Core Marketing Concepts4

• 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?

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Core Marketing Concepts5

• 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 doeuvres
• What is the company trying to do?
• How will it help themimmediately and in the
  future?
• The ultimate marketing asset an entire marketing
  network

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Core Marketing Concepts2

• 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

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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

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Evolution of Business Models and the role of
Marketing
As business philosophy has evolved, so has the
role of marketingcustomer satisfaction is now at
the core of most successful corporations
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The Marketing Concept itself has evolved
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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 weve covered Chapter 1 of the text
• Weve reviewed definitions of some basic
  conceptsremember we have not yet reached the
  marketing terminology we will be dealing with for
  the majority of the course
• Theres lots to come and lots to learnthe fun
  has just begun!