Principles of Marketing

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Principles of Marketing
University of Toronto Rotman School of
Management

• MGT 252
• Professor Andrew Ching
• Spring 2008

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Todays Agenda

• Review Syllabus
• Other Administrative Details
• What is Marketing?

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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
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Classes and Office Hours

• Class
• L0201 Wednesday 2-4pm WO 30
• Office Hours
• Wednesday 9-1030am in Rotman 508
• Phone [phone]
• Email aching_at_rotman.utoronto.ca
• Website http//www.rotman.utoronto.ca/andrew.chin
  g

Review Syllabus
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Teaching Assistant

• Name Masakazu Ishihara
• Office Bissell Building, Room 705
• Phone [phone]
• Email masakazu.ishihara05_at_rotman.utoronto.ca
• The best way to reach the TA is by email.

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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
• Research Requirement 3
• Term Project Proposal 2
• Term Project Presentation 5
• Term Project Final Write-up 12
• Midterm Exam 33
• Final Exam 45
• Text Kotler, Armstrong and Cunningham,
  Principles of Marketing, 7th ed.

Review Syllabus
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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 three studies, each one will earn
  you 1.

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Peer Evaluation

• 20 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 peers 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 (4554)/4 4.5.
• Your final score for the term project will be
  (4.5/5)20 (term project score/100)80.

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More on Term Project

• 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.
• But keep in mind that both creativity and the
  actual marketability of your product matter.
• Proposal due at the beginning of the class on
  March 5. It should list the names of members, the
  project idea, and a brief situation analysis.
• Final write-up due at the beginning of the class
  on April 2 (NOT the last class!).
• 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
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Class Presentation

• On April 2 and April 9. Randomly draw four
  groups and have them present on April 2.
• Your ppt presentation will be due on April 1 by
  5pm. If you email it to me after the deadline
  and before your presentation, you will lose 2.
• Time allocation 12 min 3 min QA.
• Every group member needs to be presence to do
  part of the presentation.
• If you do not come to present, you will lose 3.

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Midterm Final 33 and 45

• Midterm (held during class time on February 27)
• 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).
• Note the deadline to drop the course is March 9.

Review Syllabus
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Remarking

• Requesting remarking of midterms and assignments
• Make request to me no more than 2 weeks after
  return date.
• Include a written explanation with request.
• Note that I will photocopy many of the tests, so
  dont make changes and think I wont catch it.
• Any assignment submitted for remarking will be
  remarked in its entirety. Grades may rise, fall,
  or stay the same.

Review Syllabus
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Class Etiquette

• Come to class on time and dont walk out early.
• Turn off your cell phone, pager and palm pilot.
• Dont talk amongst yourselves, read the
  newspaper, or eat during lecture.
• Do ask questions and ask me to slow down if I am
  going too fast or the material is not clear.
• Do help out the class by initiating and
  participating in class discussion.

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More Policies

• For the term project, you can only form a group
  with classmates from your section.
• The final exam will be common for all sections,
  but not the mid-term test.
• You must take the mid-term test for your section.
• You are not supposed to attend the lectures from
  other sections.

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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
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Writing Centre

• The writing centre is a good resource. Check out
  their website at
• www.utoronto.ca/writing

Administration
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Quick Review of Topics

• 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.

Review Syllabus
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What is Marketing?

• - A set of processes for creating, communicating,
  and delivering value to customers and for
  managing customer relationships in ways that
  benefit the organization and its stakeholder.

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Meaning?

• Processes traditionally refers to 4Ps, now
  include after sales supports, customer services.
• Creating and Delivering value address customer
  needs and wants, and create high customer
  satisfaction.
• In business, do it in a way that is mutually
  beneficial in the long run (so focus on long-term
  profits instead of short-term profits).

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Importance of customer satisfaction

• It is important to consistently deliver product
  and service that create values for customers.
• Brand equity and customer loyalty are built in
  this way.
• This can be explained in terms of theory of
  uncertainty.
• Examples. My Spa experience at Holt Renfrew,
  Auto repair shop.

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Scope of Marketing

• Marketing means adopting a customer focus for
  the organization keeping the customers needs in
  mind all the time. It may not always mean making
  an immediate sale.

What is Marketing?
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Its All About Satisfaction

• The ultimate goal is customer satisfaction, which
  leads to long-term profitability and success
• Whenever things of value are being exchanged,
  marketing principles apply consider exactly what
  is being exchanged (its give and get)
• Marketing today is applied to virtually all
  aspects of a companys operation that has the
  potential to influence customer satisfaction
• Marketing principles apply in all organizations

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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

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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?
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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 firms operations that have the
  potential to affect the relationship with
  customers.

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The Focus of Marketing

• Marketing involves the exchange of things of
  value with various target groups.
• Much of marketings 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.

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Drivers of Customer Satisfaction

• Many aspects of the firms 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

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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 essential that marketers have a detailed
  understanding of consumers, their needs and
  wants.
• Much happens before and after the sale to affect
  customer satisfaction

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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
  longer-term focus on building relationships with
  customers

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Figure 1-6Marketing Thinking Drives the Value
Proposition
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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 customers view
• The value proposition must be defined very
  broadly
• Different measures of success are needed

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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

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The Modern Marketing Concept

• All planning and operations are designed to
  create long-term 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 organizations 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