Course Introduction http www cbpp uaa alaska eduafef

Course Introduction

http: //www. cbpp. uaa. alaska. edu/afef/

http: //www. cbpp. uaa. alaska. e du/afef/BA 343 - Syllabus. htm

Course Power Points Online & @ CBPP Computer Lab: BA 343 Principles of Marketing

Course Format Lecture Video- illustration*

Course Objective Create an appreciation for the present role & evolving scope of marketing-- in all organizations & in a global economy

With particular attention given to: o o o o Strategic Planning Marketing Research Market Segmentation Consumer Behavior Product & Market Development Customer Relationship Management Pricing, Promotion & Distribution Service, International & Internet Marketing

By end of course you will be… “All –Knowing” of the “Principles of Marketing”

&- If You Are Not Don’t Count on it! Double your Tuition $ Back!

New & Improved for Fall 2009 No Text. Book! 43% More Facts 62% Less BS! New & More Exams!

Critical Comments-IDEA l You need a Text. Book--would be easier to follow “My eyes hurt reading so many powerpoint-slides” l You go too fast (I hear/write too slow) l Your jokes aren’t funny l Your tests aren’t fair- questions too picky & tricky l “Professor should wear pants…”

Course Assessment: 3 Exams worth 25% each Exam#1 Sept. 25 th. (Wks 1 -4) Exam #2 Oct. 30 th. (Wks 6 -8) Exam #3 Dec. 4 th. (Wks 9, 1113) 1 Marketing Plan (Nov 20) @ 25%

The Marketing Plan l Select or create an entity (product, service, company, organization, person, place or idea) which you would like to "market. " l Design & outline a "marketing plan" for that entity-- Your plan must follow & contain all the elements of the marketing planning process presented in this course: Situation & SWOT Analyses- Strategic Planning & Marketing Mix. (Drafts can be submitted anytime for review & comment )

• Post suggested exam questions for each week's lecture, readings &/or viewings. . @http: //groups. yahoo. com/group/UAABA 343 • “Book Review”Free! Why $0. 00 Is the Future of Business by Chris Anderson "FREE" for free! ebook & audiobook versions • Trendspotting

Today- We’ll Examine: 1. What “it” is 2. Note “its” 3. significance… Note “its” place w/in “Scheme of Things” 4. Look at the Big Picture: Re: how this course is organized

Begin with the What is. Essential Marketing ? Where did & “ i t come from ” ? Question…

Philosophically the Question is…. What is Market ing?

Marketing Defined Pick a definition…. Many to choose from…

Marketing is: Pick a definition Ø a FUNCTION Ø a PROCESS Ø a PERFORMANCE Ø a FUNCTION & PROCESS Ømore than a Function- it’s an ORIENTATION

Classic Functional Definition All activities performed in between: The Point of Production & The Point of Consumption

1 st Formal Definition ~1919 *Marketing and Merchandising by Ralph Butler & John Swinney, l Marketing defined as ‘the manner in which the product is disposed of, the way in which it is distributed…, through • Book distinguishes marketing from merchandising, • w/ marketing being something manufacturers do • & merchandising being the domain of jobbers; retailers. 21

Marketing Defined -1935 - “The performance of business activities that direct the flow of goods & services from

Marketing Definedas a Process- 1985 "The process of planning & executing the conception, pricing, promotion & distribution of ideas goods & services to create exchange & satisfy individual & organizational

Marketing is a process of planning & executing Planning w/: Marketing Research Company Objectives & Resources Competitors Current & Prospective Consumers Executing thru: Marketing Management Motivate Marketing Personnel Segments Behavior & Perceptions Communicate w/ Marketing Unit Conditions Coordinate Marketing Activities Macro. Environment (PEST) Establish Timetable

…the conception, pricing, promotion, & distribution… The Concept “What” you are going to sell Price Amt. $$, Time Effort it takes to consume Promotion Distributio n All Communication & Incentives All Channels & Outlets Product Price Target & Position Place Promo

. . . of ideas, goods & services… Marketing- not limited to commercial enterprise l Anything & everything marketed… l

…. Events, Organizations, Places, Persons, Social Causes & Concerns

"The process of planning & executing the conception, pricing, promotion & distribution of ideas, goods & services etc. to create exchange & satisfy individual & organizational objectives" Willing to sell Willing to buy Marketing

"The process of planning & executing the conception, pricing, promotion & distribution of ideas goods & services to create exchange & satisfy individual & organizational objectives" &

Another Marketing Definition A social & managerial process by which: • individuals & groups obtain what they need & want • through creating & exchanging products & value with others.

Exchanges Learning Environment Tuition Promised Action Votes

Exchanges Fee Consulting Products/services Money

Marketing’s “utility”/value derived from its Facilitation of Exchange! Willing to sell Temporal Utility Spatial Utility Transactional Utility Marketing Willing to buy

“Value Added Marketing” s e lu a V d e d d A Inc rea se Transaction utility d Place utility Time utility Sa tis fac tio n The Product Form utility Store has it in stock Delivered to your home Pay with your VISA card

Bringing Producers & Consumers Together Temporal Utility Producers / consumers produce / consume at different times. Marketing makes good or service Available when consumer wants/needs it

Bringing Producers & Consumers Together Spatial Utility Producers & consumers generally separated by space / geography Marketing makes availability of good or service where consumer wants / needs it

Bringing Producers & Consumers Together Transactional Utility Transferring title of product/ service from producer to consumer Marketing facilitates ease of Purchasing/ Financing product or service

The Latest Official AMA Definition

In 2004 - AMA Re-defined Marketing "Marketing is an organizational function & a set of processes l for creating, communicating & delivering value to customers l & for managing customer relationships in ways that benefit the organization & its stakeholders. " l August-2004

The AMA Rationale: “Technology & marketing been changing quite rapidly over last five to 10 years. “Marketing should be customer-centric -not brand –centric” l The 1985 definition was not encompassing enough. The new definition more clearly infuses the customer into marketing. "

Marketing > Function =An Orientation “Marketing is so basic that it cannot be considered a separate function on a par w/others such as manufacturing or personnel…

Marketing > Function =An Orientation “Marketing is… …the whole business seen from the point of view of its final result, -from the customers’ point

Management Reorientation: The Marketing Concept Focus on Consumer – Not product Long –Term Relationships Not Shortterm Sales

What is Marketing is managing profitable customer relationships. Goals: 1. Attract new customers by promising superior value. 2. Keep and grow current customers by delivering satisfaction.

Management Reorientation: Relationship Marketing Long-term Wide -Angle view of the customer build life-long relationship in the hope of establishing long-term repeat purchasing.

Losing a customer means losing the entire stream of purchases over a lifetime of patronage = Customer Lifetime Value

Estimate Customer Lifetime Value (CLV) 1. Estimate the number of purchase occasions by the customer over a given interval… 2. Estimate the average amount spent per visit. Estimate likely additional purchases thru cross selling & upselling Subtract the costs of maintaining the account per visit. Add the value of the new referrals by the customer. 3. 4. 5.

Can cost 5 times as much to acquire a new customer ……. vs. keep an existing one Costs of new customer acquisition have increased dramatically: A lot of Media + Not much Loyalty

Retaining an additional 5% of customers each year… …can increase profits by 25 -35%

Finally - My take on Marketing: Ø Marketing in Principle Ø Marketing in Practice

Marketing - in Principle Facilitate Exchange

Strategic Planning Situation Analysis • Company • Consumers • Competitors Marketing Strategy P’s The Marketing Mix: Growth & Competitiv e Marketing – in Strategies Practice G N • Conditions C Service TGT • PEST Positioni ng Strategy D E WM F

Strategic Planning Situation Analysis • Company • Consumers • Competitors Marketing Strategy P’s The Marketing Mix: Growth & Competitiv e Product Strategies Promotion G N • Conditions C Service TGT • PEST Positioni ng Strategy D E WM F

The Next Big What is Marketing Where did ? & “ i t come from ” ? Question…

Philosophically Where did the Question is…. marketi ng come from ?

Marketing

Indeed--In a sense- Everyone is a born Marketer l Innate sense of exchange l 1, 000’s of years… bartered & traded goods & services

& Always been Marketers Innate sense of exchang e l 1, 000’s of years… bartered & traded “branded ” goods & services l 59 I’m it g n i l l ca HOT k n i h t I e b t h g mi better “The Dawn of Marketing”

Ostia-Rome’s port city: Around the square ran a walkway w/ mosaics showing name, origin, & specialty of traders in http: //www. bsos. umd. edu/econ/euro/O adjacent stia. htm stalls. The Beginnings of Advertising

Everyday You Market Yourself Your packaging–clothes, piercing, tattoos, cars, etc. l We all engage in “Positioning & Differentiation” l

Everybody is a Marketer l Everybody promotes/ sells themselves– – To get job/ promotion – To get date/ mate l Everybody has their price…………………

Marketing’ s Significanc e

Personnel Significance Marketing Impacts You - Everyday of Your Life • Everything you try, buy, • vote for, drive, eat, wear– is “marketed” Let alone- $. 50 Cents of Every Dollar you spend goes to “marketing” costs

Economic Significance • The Economy-JOBS- 1/4 -1/3 of the Work -force perform marketing functions

Marketing Aligns Production & Consumption Production Sector Discrepancies of Quantity Discrepancies of Assortment Marketing addresses discrepancies & separations Separations: in Space, Time & Ownership Consumption Sector

Significance of Marketing ü Improves quality of life by/thru… providing variety of goods & services For example- What would life be like without the….

The Traveling Head Rest

Or the Traveling Head Holder

The Porto. Wipe

The Total-Surround Umbrella

Accu-Drop Glasses

And How About the “Butter. Marker”

Or The Attachable Noodle- Cooler

And last but not least— The Mr. Mom Baby Feeder!

Marketing’s Place in the Scheme of Things

Where Marketing Sits in Scheme of Things Marketing is but one of Business’s Key Functional Domains Marketing l. R&D l Production l Human Resources l Finance l

Where Marketing Sits in Scheme of Things Corporate-Level Corporation Business-(SBU) Level Bus. Unit A Bus Unit B Bus. Unit C Functional-Level Finance HR Production/ R&D Marketing

Situation Analysis • Company • Consumers Week 3 • C ompetitors Next Strategic Planning Marketing Strategy P’s Week 4 The Marketing Mix: Growth & Competitiv Week e 7 Strategies G N Week C Positioni ng Week. Strategy 6 Service • Conditions • PEST Week 8 TGT D E WM F

Weeks 5 & 10 Exams!

Lectures: Weeks 9 thru 13 Marketing in the New Economy Customer Relationship Consumer Marketing Centric Internet Technologically Marketing Driven Service Marketing Based International Global in Marketing Scope

Agents of Change are Everywhere: l l l l DVRs , PDA’s & Smartphones Wireless hot spots “Branded entertainment” Word-of-mouth, viral marketing Podcasts, online video Pervasive usage of GPS assisted content delivery Rapid deployment of

Globalization l “Borders are Becoming Meaningless” – – Work performed globally…. continuously…. “The entire globe is now tied together in a single electronic market moving at the speed of light. "There is no place to hide” – Walter Wriston, Citicorp Chairman

Becoming more selfcentered & Home centered Becoming more complex--age, sex & income reversals Are less brand loyal More connected & more informed Today’s Consumers Have less time & more choices Seeking new/ heightened sensation & experiences Have lower attention spans & higher expectations Are living & shopping more for today… Less long range planning

¢ Old Economy ¢ New – Manufacturing driven – Information driven 100% Ø Differentiation, New Ø Standardization & Duplication 75 U. S. Ø Economies of scale 50 GDP Ø Hierarchical bureaucractic 25 0 ’ 72 ’ 78 Source: Marvin Zonis & Associates ’ 84 Economy ’ 90 customization “E”conomy Ø Networks & speed-Economies of Scope Industrial Ø Diversified Economy Adhocracy ’ 96 ’ 02 ’ 08