Session 1_Intro to Marketing

8/7/2019 Session 1_Intro to Marketing

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Introduction to Marketing

Lou Minakakis

Wednesday, February 2, 2011

MG6073 Marketing Spring 2011Polytechnic Institute of New York University

Room: RH615


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Discussion agenda

1. Review course objectives

Schedule

Course Package

2. Introduction to Marketing

History

Definitions and concepts

Methodologies

1


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Instructor Background

2

Louis Minakakis, Adjunct Professor

Graduate from Polytechnic University in 1999 - Master of Science in Management (MSM)

Graduated from Pace University in 1995 - Bachelor of Science in Operations Management

Working as Senior Project Manager in Software Engineering at Citigroup (since 2005)

Certified Project Management Professional (PMP)

Certified Lean Six Sigma Green Belt


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Course Objectives

3

Understand foundational elements of marketing: concepts, theories and how to use them in

corporate environment

Marketing in practice: develop marketing strategy, research markets, design and implement

market plans, measure marketing results

How are we to accomplish this?

Lecture

Case analysis (in groups)

Mid term exam (multiple choice)

Final exam (multiple choice)

Final Exam is CUMULATIVE will include content from entire semester

Individual Assignments

Group projects

30 multiple questions, 35 minutes to complete


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Recommended Books

4

No required textbook for the course

Recommended books will be discussed in an

Individual Assignment during the semester


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Grading

5

Syllabus contains the grading formula for the course:

Activities Percentages

Mid-term exam 30%

End-term exam 30%

Group Presentations 20%

Class Participation 10%

Individual Assignments 10%


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What does marketing mean to you?

6


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Marketing defined

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It is about identifying and meeting human and social needs

An organizational function and a set of processes for creating, communicating, and deliveringvalue to customers, and for managing customer relationships in ways that benefit the

organization and its stakeholders

Ensures that the right combination of product qualities, service, support and delivery at a

reasonable price.

Peter Drucker: The aim of marketing is to know andunderstand the customer so well that the product orservice fits him and sells itself.


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Marketing defined

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Needs - state of felt deprivation for basic items such as food and clothing and complex needs

such as for belonging -- i.e. I am thirsty.

Wants - form that a human need takes as shaped by culture and individual personality -- i.e., I

want a Coca-Cola.

Demands - human wants backed by buying power -- i.e., I have money to buy a Coca-Cola.


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Marketing elements

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Element Description

Research Process that links the marketer to the market by providing information and insights to marketing decision

making

Segmentation Group customers into market segments by using different sets of criteria including personal

characteristics, benefits sought, and behavioral measures of the consumer

Develop a unique selling proposition for the target marketPositioning

Branding Develop the product or service message

Management

Art and science of choosing target markets and getting, keeping, and growing customers through

creating, delivering, and communicating superior customer value


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Products vs. Services

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Products - anything that can be offered to

a market for attention, acquisition, use orconsumption and that might satisfy aneed or want.

Examples: persons, places,organizations, activities, and ideas.

Services - activities or benefits offered for

sale that are essentially intangible anddont result in the ownership of anything.

Examples: banking, airlines, amusementparks, and hotels.


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Customer value and satisfaction

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Customer Value - benefit that the

customer gains from owning and using aproduct compared to the cost of obtainingthe product.

Customer Satisfaction - depends on the

products perceived performance indelivering value relative to a buyersexpectations. Linked to Quality and TotalQuality Management (TQM).


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What is marketed?

12

Events

Experiences Places

Persons

Properties

Organizations
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Who purchases products and services?

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Market - buyerswho share a

particular needor want that canbe satisfied by a

companys productsor services.

ActualBuyers

PotentialBuyers


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Who uses marketing?

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Marketing

Tourism

High-Tech

Media

Sports

Nonprofits

Govts

FinancialServices

Individuals


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Marketplace mechanisms

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Exchanges - act of obtaining a desired object from someone by offering something in return.

Transactions - trade of values between parties. Usually involves money and a response.

Relationships - building long-term relationships with consumers, distributors, dealers, and

suppliers


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1. Products/Services

2. Money

Customer markets

16

Consumer markets

Business markets Global markets

Nonprofit and government markets

Industry

3. Communication

4. Information

Market

(consumer)


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Marketing mix

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Also known as the 4 Ps:

Product Price Place Promotion

Collection of features

and benefits that provide

customer satisfaction

Reflects more than the

economiccost of

producing a product

includes value perceived

by the customer

Location, distribution

channels and logistics

Advertising, direct

marketing, relationship

marketing, public

relations, sales

promotions, and word-of-mouth

Customer Value Cost to customer Convenience Communication

These can also be viewed as:


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Marketing Philosophies

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Production Concept

Product Concept

Selling Concept

Marketing Concept

Societal Marketing Concept

Consumers favor products that are availableand highly affordable

Improve production and distribution

Consumers favor products that offer the mostquality, performance, and innovative features

Consumers will buy products only if thecompany promotes/ sells these products

Focuses on needs/ wants of target marketsand delivering satisfaction better than

competitors

Focuses on needs/ wants of target marketsand delivering superior value

Societys well-being


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Marketing and Sales Concepts Contrasted

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Factory Existing Products Selling & PromotingProfits through

Volume

MarketCustomer

NeedsIntegratedMarketing

Profitsthrough

Satisfaction

The Selling Concept

The Marketing Concept

Starting Point Focus Means Ends


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Sales vs. Marketing

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Sales Focus

Organizations needs

Selling goods/services

Everybody

Profit through max. sales volume

Intensive promotion

Marketing Focus

Customers needs

Satisfying customer wants/needs

Specific groups of people (target market)

Profit through customer satisfaction

Coordinated mktg. activities (4 Ps)


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Marketing elements

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Implementing

programs to create

exchanges with

target buyers to

achieve organization

goals

Marketing

Management

Demand

Management

Profitable

CustomerRelationships

Finding and

increasing demand,

also changing or

reducing demand

Attracting new

customers and

retaining existing

customers


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Demand management

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Marketer is someone who seeks a response: attention, a purchase, a vote, a donation, from

another party (which is called a prospect).

Marketer seeks to influence the level, timing, and composition of demand to meet the

organizations objectives:

1. Negative demand

2. Nonexistent demand

3. Latent demand

4. Declining demand

5. Irregular demand

6. Full demand


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Marketing is Everything - Regis McKenna (HBR, 1991)

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Key Idea

Technology is creating greater customer choice, and choice is altering the marketplace

McKennas 6 Principles

1. Marketing is a way of doing business that pervades the entire company

2. Companies must dispel their limiting market-share mentality

3. Technology promises to open up almost limitless choice for customers

4. A feedback loop is making advertising's one-way communication obsolete5. The line between services and products is eroding

6. The marriage of marketing and technology is inevitable


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Marketing is Everything - Regis McKenna (HBR, 1991)

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Old Approach

Identify product or service

idea

Conduct market research

Develop product

Test product

Introduce product orservice offering to market

Knowledge-based

Integrate customers

into design process

Generate niche

thinking to leverage

channels and

markets to owncustomers

Develop

relationships with

suppliers, vendors,

partners to support

company reputationand technological

edge

Experience-based

Interactivity

Connectivity

Creativity


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Evolution of Marketing Thought

25


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Evolution of Marketing Thought

26

1850 - 19001776 1920 - 1930 1950

High demand for

manufactured goods

P&G product manager

uses the term marketing management

Emergence of concepts like

advertising, selling, branding

Adam Smith classical economics


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Transition from 1950s

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19701950 - 1960 1980 1990 2000

Re-emergence ofcompetition

Globalization

Rise of quality

Price competition

Cost-cutting

re-engineering

Logistics/

digitization

The IT Revolution

21st-century

marketplace

Rediscovery of themarketing concept

Growing emphasis towardscompetitiveness emergence of strategicmarketing concept

Marketorientation

Levitt article


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Next Session and Case Study

Branding

Case Analysis: Coke vs. Pepsi 2006

Documents

Session 1_Intro to Marketing