Welcome to BA320

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• Welcome to BA320
• Summer 2006
• Prof. Carlos Torelli

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Agenda for Today

• Objectives
• Course Format
• Grading
• Extra Credit Opportunities
• Course Policies
• Course Website
• Marketing An Introduction

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Objectives

• Provide a substantial introduction to marketing.
• Key marketing terms.
• Fundamental concepts and principles.
• Enable you to make better marketing management
  decisions.

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Course Format

• Book Readings
• Lecture
• Discussions and Examples
• Participation
• Videos
• Quizzes and Exams

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Grading

• Exams
• Exam 1 July 5th (100 points).
• Exam 2 August 2nd (100 points).
• 4 1 Quizzes (60 points, 15 each).
• Readings for the day.
• One extra quiz (you can only miss 1).
• If you take 5, lowest grade dropped.
• Participation (40 points).
• Share your thoughts/experiences.
• Be always prepared.

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Extra Credit Opportunities

• My experiments
• Experimetrix
• Up to 4 experiments (3 points each)

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Course Policies

• Attendance and Punctuality.
• Come prepared.
• Lecture slides.
• Announcements.
• Academic Integrity and Dishonesty.

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Course Website

• http//www.business.uiuc.edu/BA320

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What Is Marketing?

• Simple Definition Marketing is managing
  profitable customer relationships.
• Goals
• Attract new customers by promising superior
  value.
• Keep and grow current customers by delivering
  satisfaction.

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Marketing Defined

• 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.

OLD Viewof MarketingMaking a Sale Telling
Selling
New View of Marketing Satisfying customer needs
NEW View of MarketingSatisfying Customer Needs
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Needs, Wants, Demands

• Need State of felt deprivation including
  physical, social, and individual needs.

Easier to articulate
More difficult to articulate
Individual needs. Learning, knowledge,
self-expression
Physical needs. Food, clothing, shelter, safety
Social needs. Belonging, affection, power
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Needs, Wants, Demands

• Wants Form that a human need takes, as shaped
  by culture and individual personality.
• Wants Buying Power Demand

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An example
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Need / Want Fulfillment

• Needs and wants are fulfilled through a Marketing
  Offer
• Some combination of products, services,
  information, or experiences offered to a market
  to satisfy a need or want.

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Case Study
NASCAR What is its secret?

• Creating Value
• NASCAR sells the experience in-car cameras,
  wholesome family orientation.
• NASCAR.com engages fans via content.
• Success has been achieved by creating lasting
  customer relationships.

• Capturing Value
• NASCAR is the 2nd highest rated sport on TV.
• Fans are young, affluent, and family oriented,
  spending nearly 700 annually on NASCAR
  merchandise.
• Fans are loyal to sport and NASCAR fans are 3
  times as likely to seek out sponsors products
  than are nonfans.