University of Toronto | Rotman School of Management

Principles of Marketing
MGT 252 Professor Andrew Ching Spring 2008

Todays 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:
L0201 Wednesday 2-4pm WO 30

Office Hours:
Wednesday 9-10:30am in Rotman 508 Phone: (416) 946-0728 Email: aching@rotman.utoronto.ca Website: http://www.rotman.utoronto.ca/andrew.ching

Review Syllabus

Teaching Assistant
Name: Masakazu Ishihara Office: Bissell Building, Room 705 Phone: 416-978-6648 Email: masakazu.ishihara05@rotman.utoronto.ca The best way to reach the TA is by email.

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: 1) 2) 3) 4) 5) 6) Research Requirement Term Project Proposal Term Project Presentation Term Project Final Write-up Midterm Exam Final Exam 3% 2% 5% 12% 33% 45%

Text: Kotler, Armstrong and Cunningham, Principles of Marketing, 7th ed.

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 three studies, each one will earn you 1%.

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 (4+5+5+4)/4 = 4.5. Your final score for the term project will be (4.5/5)*20 + (term project score/100)*80.

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.
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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 Q&A. Every group member needs to be presence to do part of the presentation. If you do not come to present, you will lose 3%.

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

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 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.

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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.

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.

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

Quick Review of Topics

1. Introduction 2. Building a marketing plan. 3. Segmenting and Positioning, Buyer Behavior, & the Business Market 4. Marketing Research 5. Product Development 6. Branding and services marketing. 7. Distribution, Marketing Communications, Advertising and Pricing.

Review Syllabus

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.

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).

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.

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?

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

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 firms 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 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.

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

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

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

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 customers 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 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