1 Welcome to Introduction to Marketing! C55.0001 – Professor Eric Greenleaf Fall 2008.

1

Welcome to Introduction to Marketing!

C55.0001 – Professor Eric Greenleaf

Fall 2008

2Session 1 - Introduction

Today’s Agenda

Marketing successes and failures

What is marketing?

How is marketing different from other business skills?

Course details and your responsibilities

3Session 1 - Introduction

Most business successes or failures are caused by successful or failed marketing

4

What marketing successes and failures can you think of?

Why did they succeed or fail?

5

What is marketing?

6

What is marketing?

What is marketing at Apple?

7Session 1 - Introduction

What is marketing?1) Marketing strategy

Marketing Strategy - What is our overall plan for our product?– Consumer behavior– Segmentation– Positioning– Economic value of customers– Profit: Crunch the numbers

8Session 1 - Introduction

Don’t forget marketing research

“Eyes and ears” of the firm Keeps you in touch with

– Customers– Competitors– Trends in the marketplace– Be proactive, not reactive

9Session 1 - Introduction

What is marketing?2) The marketing mix – “Four Ps”

Marketing Mix – What actions will we use in the marketplace to implement our strategy? – Pricing– Product– Partnerships– Promotion (Communication)

10Session 1 - Introduction

Marketing mix is more than sum of its parts

Balance– Don’t put too much emphasis on any single

activity in the marketing mix Coordinate

– Each part of marketing mix must work well with other parts –

11Session 1 - Introduction

What is marketing’s role in a firm?

One opinion on marketing’s role:

“If we want to know what a business is, we have to start with its purpose… There is one valid definition of business purpose: to create and keep a customer.”

Peter Drucker, a widely-read business school professor and former NYU faculty member (1909-2005).

12Session 1 - Introduction

Most successful concept of marketing

Effective marketing strategy satisfies consumer needs and creates consumer value while allowing the firm to achieve its objectives.

Concept we’ll study in this class Let’s take a closer look at this concept

13Session 1 - Introduction

Satisfy customer needs

Define product or service in terms of customer needs

= ?

14Session 1 - Introduction

What customer needs does this product satisfy?

= ?

15Session 1 - Introduction

React to changing customer needs

New York Times – 8.2.07

16Session 1 - Introduction

React to changing customer needs

New York Times

7.24.08

17Session 1 - Introduction

Try to anticipate consumer needs

18Session 1 - Introduction

Create consumer value

Value = Utility - price Satisfy needs at a price that consumers

are willing to pay

19Session 1 - Introduction

Allow firm to achieve objectives

Expensive to satisfy consumer needs and provide consumer value

Firm must achieve its objectives Marketing should be a profitable

investment Firm must understand and predict the

bottom-line impact of marketing actions

20Session 1 - Introduction

Successful marketing creates valuable assets

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NYT7/3/08

21Session 1 - Introduction

How can Google make money from YouTube?

New York Times

7.9.08

22Session 1 - Introduction

Don’t overspend on marketing

Source: “Satellite radio Howard's wayJan 12th 2006, The Economist

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What marketing is not –Three outdated concepts of

marketing

24Session 1 - Introduction

FIGURE 1-5FIGURE 1-5 Four different market orientations in the history of

American business

25Session 1 - Introduction

What marketing is not –Three concepts of marketing to avoid

Technology and production driven

Consumers care about needs and value, not technology

vs.

26Session 1 - Introduction

What marketing is not – Three concepts of marketing to avoid

Selling driven

27Session 1 - Introduction

What marketing is not –Three concepts of marketing to avoid

Marketing driven

All three outdated concepts create a marketing mix that is out of balance

28Session 1 - Introduction

How is marketing different from other business skills?

Combines quantitative and qualitative analysis – Both kinds of information important for

creating best strategy and mix– Use numbers to justify your qualitative

reasoning We’ll examine Quantitative Analysis in

Marketing early in the course

29Session 1 - Introduction

How is marketing different from other business skills?

Marketing forces business to confront uncertainty in environment– Consumer tastes– Competition– Economic environment– Legal and Regulatory

30Session 1 - Introduction

What do consumers want in a beverage?

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WSJ6/30/08

31Session 1 - Introduction

Does anyone need “land line” phones?

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NYT7/23/08

32Session 1 - Introduction

Is your kitchen counter radioactive?

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NYT7.24.08

33Session 1 - Introduction

Course details and your responsibilities

Please read the syllabus carefully Course calendar Detailed description of assignments Course policies and your

responsibilities – Includes class honor code

34Session 1 - Introduction

Course details and your responsibilities

Class Participation (15% of grade) You are a very important part of course

– We have very different backgrounds and experience– We learn a lot from each other– Make your class participation valuable

Everyone wants to know who you are– Please use name card every day: big, first name

and last initial– Seating fixed from next class

35Session 1 - Introduction

Course details and your responsibilities

Class Participation (15% of grade) I would like to know more about you Your first assignment:

– Complete personal information form on back of syllabus

– Include picture of yourself– Hand in at the next class

36Session 1 - Introduction

Course details and your responsibilities

Class Etiquette – Behave as in a business meeting

But have some fun– Let me know if you will miss class– Please arrive on time– Leave class only if absolutely necessary– Listen carefully to your classmates

Please, no disruptive side conversations

37Session 1 - Introduction

Course details and your responsibilities

Class Etiquette – Create a challenging but respectful

environment for expressing ideas– Participate meaningfully, and allow others

to participate– Stay with the topic we are discussing

Class time valuable

38Session 1 - Introduction

Course details and your responsibilities

Electronic Etiquette – No laptops– Turn off

Cell phones “Blackberries” MP3 Players Any other unapproved electronic devices No audio or video recording without

permission

39Session 1 - Introduction

You are expected to follow the Stern Honor Code

Please read it carefully – URL in syllabus– http://w4.stern.nyu.edu/uc/currentstudents/codeofconduct.cfm?doc_id=5182

Convincing evidence of cheating will be treated harshly

Cases may be turned over to Stern Judiciary Committee

Cheating cases pursued even if person has finished course or graduated – Degrees have been revoked

Submit assignments to TurnItIn online– At students’ request – protects honest students

40Session 1 - Introduction

Course details and your responsibilities

Text:

R. Kerin, S. Hartley & W. Rudelius, Marketing, 9th edition, Irwin/McGraw-Hill.

Sets important foundation for class discussion

• Class will be conducted under assumption you have done assigned reading for that day

Hardcover, looseleaf, or eBook

41Session 1 - Introduction

Course details and your responsibilities

• Articles from business and popular press • Show how concepts from class are used in

the real world

• You can link to these using Bobst electronic databases

• e.g. NYU Virtual Business Library

42Session 1 - Introduction

Course details and your responsibilities

Marketing cases: Mediquip Brita – written group case

James Patterson Z Corporation MontGras Vineyards – written individual case

43Session 1 - Introduction

Course details and your responsibilities

Marketing cases:– Apply what you learn to an actual firm

Variety of products and industries– See complexities of marketing problem– Get involved in decision making – Cases have no single “right answer”

You should be able to justify your analysis

– Case study questions in syllabus Helps focus class discussion

– Syllabus has advice on preparing a case

44Session 1 - Introduction

Course details and your responsibilities

Major Assignments:

Quantitative marketing assignment 5% Two midterm quizzes 25% Brita group case 12.5% MontGras individual case 12.5% Market research assignment 5% Final exam 25%

45Session 1 - Introduction

Course details and your responsibilities

Class materials– All assignments and slides on Blackboard

– Will provide printed copies in class

Powerpoint slides– Help organize class material

– Slides are not a substitute for your own

class notes

– Will not have Powerpoint for all classes

– If you miss a class, get notes from at least two classmates

46Session 1 - Introduction

Teaching Fellows –They are here to help you

Shevon Newman

Christine Wang

Brady Warner

Each will have office hours twice a week in Marketing Dept., 8th floor Tisch

47Session 1 - Introduction

Next Class – Consumer Behavior I

How do consumers make decisions?

How can firms influence consumer decisions?

How do consumer decisions differ? We’ll look at the consumer

decision making process