University of Toronto | Rotman School of Management
Principles of Marketing
MGT 252 Professor Andrew Ching Fall 2005
Today’s Agenda
• Review Syllabus • Other Administrative Details • What is Marketing?
Course Description
“Introduce you to the fundamentals of marketing through the discussion of theoretical and practical aspects of modern marketing management and application of marketing principles to your own marketing plan. You will learn the basic concepts of market definition, consumer behaviour, and the principal marketing functions: product line development, pricing, distribution, promotion, salesforce management, advertising, research, and planning.”
Review Syllabus
Classes and Office Hours
Class:
L0101 Monday 2-4 WO 20 L0301 Wednesday 12-2 WO 35 L0401 Wednesday 2-4 WO 35
Office Hours:
Wednesday 4-5:30pm in Rotman 508
Phone: (416) 946-0728 Email: aching@rotman.utoronto.ca Website: http://www.rotman.utoronto.ca/andrew.ching
Review Syllabus
Class Structure
Lectures: Begin 10 minutes after the hour and end on the hour. There will be a 10 minutes break midway.
Determination of Grades:
Plan 1 (1 study) Research Requirement 2% Term Project Proposal 2% Term Project 18% Midterm Exam 33% Final Exam 45% Plan 2 (2 studies) 3.5% 2% 16.5% 33% 45%
1) 2) 3) 4) 5)
Text: Sommers & Barnes, Marketing, 10th Canadian Edition.
Review Syllabus
Research Requirement
1. Participation • You will be asked to participate in a marketing research study that will take roughly 1 hour. • Details will follow. 2. Analysis of Article • Find an article from one of the following journals: The Journal of Consumer Research, The Journal of Marketing, Marketing Science or Management Science. Write a summary of it. It will probably take you a few hours to do this. You must do one study, but can do a second receiving an additional 1.5%.
Peer Evaluation
• 10 percent of your term project final write-up is based on peer evaluation. You need to provide a peer evaluation for every member of your group (excluding yourself). • Rank your peer’s contributions, using a scale of 1(lowest) to 5(highest). • Suppose your group has five people. You receive 4, 5, 5, 4. Your average peer evaluation score will be (4+5+5+4)/4 = 4.5. • Your final score for the term project will be (4.5/5)*10 + (term project score/100)*90.
More on Term Project
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Develop a marketing plan for a new product or service. Work in groups of up to 5 students. No more than 15 pages, double spaced, 12 point font, (including tables, figures, and references). Have fun coming up with your own idea. I have a few suggestions here, but I’d rather you be creative. But keep in mind that both creativity and the actual marketability of your product matter. Proposal due by 5:30pm Oct 20. It should list the names of members, the project idea, and a brief situation analysis. Final write-up due by 5:30pm Dec 7. Late proposals and final write-ups will not be accepted. You must submit a hardcopy of your assignments before the deadlines. No fax or email copy will be accepted.
Review Syllabus
Midterm & Final: 33% and 45%
Midterm (held during class time in the week of Oct 24): • 40-60% multiple choice. • The rest of it will be short answer and short essay questions. • No make-up midterm test. See page 3 of the course outline. Final: • Similar format. • Focus on materials after the mid-term (but not exclusively).
Review Syllabus
Remarking
Requesting remarking of midterms and assignments: 1) Make request to me no more than 2 weeks after return date. 2) Include a written explanation with request.
Note that I will photocopy many of the tests, so don’t make changes and think I won’t catch it. Any assignment submitted for remarking will be remarked in its entirety. Grades may rise, fall, or stay the same.
Review Syllabus
Quick Review of Topics
The first few classes are mostly lectures giving you the basic tools. Then the fun part begins.
1. 2. 3. 4. 5. 6. 7. Introduction Building a marketing plan. Segmenting and Positioning, Buyer Behavior, & the Business Market Marketing Research Product Development Branding and services marketing. Distribution, Marketing Communications, Advertising and Pricing.
Note the deadline to drop the course is November 6.
Review Syllabus
Academic Misconduct
Students should note that copying, plagiarising, or other forms of academic misconduct will not be tolerated. Any student caught engaging in such activities will be subject to academic discipline ranging from a mark of zero on the assignment, test or examination to dismissal from the university as outlined in the academic handbook. Any student abating or otherwise assisting in such misconduct will also be subject to academic penalties.
Review Syllabus
Writing Centre
The writing centre is a good resource. Check out their website at:
www.utoronto.ca/writing
Administration
What is Marketing?
Textbook Definition: Marketing is the total system of business activities designed to plan, price, promote, and distribute need-satisfying products or services to target markets in order to achieve organizational objectives
What is Marketing?
Meaning?
• plan, price, promote, distribute: the marketing mix • need-satisfying: meeting customers’ needs • products, services: not just products • target markets: not a broad-brush approach • organizational objectives: not just profits
What is Marketing?
Scope of Marketing
Marketing means adopting a customer focus for the organization; keeping the customer’s needs in mind all the time. It may not always mean making an immediate sale.
What is Marketing?
It’s All About Satisfaction
• Marketing today is applied to virtually all aspects of a company’s operation that has the potential to influence customer satisfaction • Whenever things of value are being exchanged, marketing principles apply: consider exactly what is being exchanged (it’s “give” and “get”) • The ultimate goal is customer satisfaction, which leads to long-term profitability and success • Marketing principles apply in all organizations
…and Creating Value
• Successful marketing involves meeting or exceeding customer expectations • When expectations are exceeded, customer satisfaction or delight results • Marketing is very much about adding value through a broadly-defined value proposition • Value may be created by marketers in many different ways: value is not only about price
Marketing Everywhere!
Understanding marketing helps you when: • You buy a new pair of shoes, or go to the grocery store. • You open a new bank account. • You apply for a job. • You watch television. • …..
What is Marketing?
The Marketing Mix
• The conventional view of the marketing mix consisted of four components: product, price, distribution and promotion. • Generally acknowledged that this is too narrow today; now includes service, processes, technology. • Marketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers.
The Focus of Marketing
• Marketing involves the exchange of things of value with various target groups. • Much of marketing’s focus today is on the creation of value for customers; those who are best at creating value earn customer loyalty. • Ultimately, successful marketers develop a close relationship with customers and others. This is a long-term strategy that guarantees the future success of the company.
Drivers of Customer Satisfaction
• Many aspects of the firm’s value proposition contribute to customer satisfaction:
– – – – – The emotional connection with customers Interaction with the firm and it employees The technical performance of the firm Support services and systems The core product or service offered
• Ability to add value and to differentiate as a firm focuses more on the top levels
Marketers and Markets
• Marketers are focused on stimulating exchanges with customers who make up markets – B2C or B2B. • The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers. • It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants. • Much happens before and after the sale to affect customer satisfaction
Figure 1-3: Stages of Customer Interaction
Evolution of Marketing Thinking
• Marketing has evolved through five stages:
– in the product-focus stage, emphasis is on producing more and better products – at the sales-orientation stage, focus shift to selling, moving product from warehouse to customer – at the customer-interest stage, emphasis shifts to the customer and the satisfaction of needs – the customer-service stage places emphasis on customer service as well as good products – the customer-relationship stage sees a much longerterm focus on building relationships with customers
It’s All About Value
• If we create value for the customer, the firm and its shareholders benefit • Value may be created in many ways – it’s much more than price • The value proposition comprises everything the company offers its customers – must be defined very broadly • Linked to stages of marketing thinking
Figure 1-6: Marketing Thinking Drives the Value Proposition
Customer-Relationship Thinking
• The customer-relationship view of marketing requires some new thinking: • It is very much a long-term strategy • Requires that management take the customer’s view • The value proposition must be defined very broadly • Different measures of success are needed
The New View of Marketing
• The marketing emphasis today is on keeping existing customers as well as getting new ones • Four principles guide marketing:
– – – – retention: keeping them coming back referrals: encourage them to recommend us relationships: build an emotional connection recovery: solve problems as they arise
The Modern Marketing Concept
• All planning and operations are designed to create longterm customer satisfaction: “everyone in the firm is involved in marketing” • All of the marketing activities of the organization should be consistently designed and delivered, and should be coordinated across departments • All of the organization’s planning and operations are customer-oriented, meeting customer needs and achieving profitability • All activities are focused on the long-term and designed to create an emotional connection with customers