Post on 28-May-2015
Assistant Professor, MarketingPlease ensure all electronic devices are in “silent
mode”, “vibrate mode” or “turned off”
Anthony Francescucci
MKT 100 - 021WEEK 1 - PRINCIPLES OF MARKETING
Welcome to
Week 1 Week 2 Week 3 Week 4 Week 5
Week 6 Week 7 Week 8 Week 9 Week 10
Week 11 Week 12 Week 13
Pr
Professor
Francescucci
Jan 18 2011
COLLECT YOUR NAME CARD
(Alpha order by last name)
Be sure to ONLY stamp your own
card
Everyone to collect and stamp their
own card
Be sure to stamp the correct DATE and correct BOX.
Do Not Stamp the lower box.
Instructions for Name Card
AGENDA FOR WEEK 1• Class information• Course philosophy• Course Details & Expectations• Break• Module 1 review
CLASS INFORMATION
• MKT100, Section 021• Contact info:
– mktmgmt@ryerson.ca– 979-5000 x 6727– Office: TRS 1-121
• Required online resource material – Blackboard MKT 100 Course– www.ryersonmkt100.ca
COURSE PHILOSOPHY
MARKETING 100 @ RYERSONPrinciples of Marketing
On-line Resources
www.ryersonmkt100.ca
Class Discussion
Cases and Scenarios
Metrics Mastery
PRINCIPLE #1
• If you don’t show up for class, you can’t do well in the course.
PRINCIPLE #2
• If you don’t prepare before you come to class, you are wasting your class time.
• My role is to identify and help you understand key concepts, not read the resource material to you.
PRINCIPLE #3
• Interaction enhances learning. This is a both a talking and a listening course.
PRINCIPLE #4
• To learn and remember a new concept it has to be connected to something you already know.
PRINCIPLE #5
• Technology can enable and enhance a learning community…. BUT...
PRINCIPLE #6
• Learning and having fun are not contradictory
PRINCIPLE #7
PRINCIPLES OF MARKETING 100
• It is not rocket science …………... to succeed in this course:
• COME TO CLASS REGULARLY • PREPARE REQUIRED MATERIAL IN ADVANCE• DO THE STUDY QUIZZES• BE ENGAGED IN WHAT IS HAPPENING DURING CLASS• STUDY FOR TESTS
TO MAJOR IN MARKETING
Achieve a B-
(2.67 or at least 70%)
in MKT100
COURSE DETAILS & EXPECTATIONS
Creating
Evaluating
Analyzing
Applying
Understanding
RememberingStudy Quizzes
Hand-ins
Midterm & Final
Top Gun Quizzes
Hand-ins
Hand-ins
THE BASIS OF MASTERY LEARNING
EVALUATION IN MKT100Type of Assessment Group/Individual Percent Due
Top Gun Quiz #1 Individual 7.5 Feb. 13
Assignment #1 Groups 4-5 12.5 Mar. 1
MCMetric Midterm Individual 20 Feb. 15
Assignment #2 Groups 2-3 12.5 Mar. 29
Top Gun Quiz #2 Individual 7.5 Apr. 10
Final Exam Individual 30 Apr. 18 - 30
Metrics Mastery Worksheets
Individual 5 Ongoing
In-Module Quizzes Individual 5 Ongoing
TOTAL 100
PLEASE NOTE THE FOLLOWING:• In-module Study Quizzes – must get 100% in order to
get access to the next section of the module material. Quizzes can be taken multiple times. First 3 modules to be completed before mid-term (Feb 11th) , last 7 before by end of last week of classes (Apr 15th) to earn credit for this assessment.
• Top Gun Quizzes – one week to complete. Maximum of 3 attempts. Highest score is recorded
• Mid-term + Final Examination – must pass in order to pass the course.
Creating
Evaluating
Analyzing
Applying
Understanding
RememberingStudy Quizzes
Hand-ins
Midterm & Final
Top Gun Quizzes
Hand-ins
Hand-ins
20%
50%
30%
THE BASIS OF MASTERY LEARNING
COURSE OUTLINE
It is your responsibility to read the course outline in detail as it contains specific requirements. Not reading the course outline is no excuse for not knowing.
1. Go to www.ryersonmkt100.ca
2. Click on “More Information”
3. Click on and read the following instructions
How to Use PayPal
Student Users’ Guide
How to Navigate
How to Ace the Quizzes
4. Click on Student “Registration” and complete form,
following the example next to it.
5. Follow the prompts to pay through PayPal.
Click on Module 1, then click on Section 1.
©Backbone Press 2009
REGISTERING & STARTING RYERSONMKT100
LET’S TAKE A BREAK
MODULE 1
What is Marketing
WHAT IS MARKETINGMarketing is about customers, processes, & profits 1. What is Marketing?2. The History of Trading and Wealth Creation3. Master Traders: How world trade got started4. Global Trading System Dynamics5. A Theory of Market Dynamics: Product innovation
life-cycle6. Process Improvement
1.1 WHAT IS MARKETING
• The delivery of a standard of living.• The delivery of customer and organizational
satisfaction. • The technology that creates value for customers and captures a significant part of that value for the marketer.
AMA 2007 DEFINITION
• “Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners,
and society at large.”
• American Marketing Association, 2007
1.1 WHAT IS MARKETING
• delivering value to customers and shareholders through the relentless improvement of product development, distribution, selling, advertising and customer service processes.
• about being driven to do better, thinking quickly, doing things quickly, out-thinking and out-hustling your competition.
• about creating and managing constant profitable change in a firm’s marketing processes.
Marketing is
Marketing is often Gray With several right answers to a problem.And several perspectives on an issue.
Marketing is about customers, processes, & profits 1. What is Marketing?2. The History of Trading and Wealth Creation3. Master Traders: How world trade got started4. Global Trading System Dynamics5. A Theory of Market Dynamics: Product innovation
life-cycle6. Process Improvement
WHAT IS MARKETING
Innovation
Exchange
Wealth/Welfare
SOURCES OF PROSPERITY & WEALTH CREATION
Innovation and Creative Destruction
A: SCHUMPETER WEALTH CREATION PRINCIPLE
B: THE SMITH WEALTH CREATION PRINCIPLE
Value Sally – owns 10 A’s
John - owns 10 B’s
First 10 10
Second 9 9
Third 8 8
Fourth 7 7
Fifth 6 6
Sixth 5 5
Seventh 4 4
Eighth 3 3
Ninth 2 2
Tenth 1 1
Total Value
B: THE SMITH WEALTH CREATION PRINCIPLE
Total Wealth:110 units
Value Sally – owns 10 A’s
John - owns 10 B’s
First 10 10
Second 9 9
Third 8 8
Fourth 7 7
Fifth 6 6
Sixth 5 5
Seventh 4 4
Eighth 3 3
Ninth 2 2
Tenth 1 1
Total Value 55 55
B: THE SMITH WEALTH CREATION PRINCIPLE
Value Sally – owns 8 A’s & 2 B’s
John - owns 8 B’s & 2 A’s
First 10 10
Second 9 9
Third 8 8
Fourth 7 7
Fifth 6 6
Sixth 5 5
Seventh 4 4
Eighth 3 3
First 10 10
Second 9 9
Total Value
Total Wealth:?? units
Sally & John Exchange 2 A’s for 2 B’s
Sally & John Exchange 2 A’s for 2 B’s
B: THE SMITH WEALTH CREATION PRINCIPLE
Value Sally – owns 8 A’s & 2 B’s
John - owns 8 B’s & 2 A’s
First 10 10
Second 9 9
Third 8 8
Fourth 7 7
Fifth 6 6
Sixth 5 5
Seventh 4 4
Eighth 3 3
First 10 10
Second 9 9
Total Value 71 71
Total Wealth:142 units
Sally & John Exchange 5 A’s for 5 B’s
B: THE SMITH WEALTH CREATION PRINCIPLE
Value Sally – owns 5 A’s & 5 B’s
John – owns 5 B’s & 5 A’s
First 10 10
Second 9 9
Third 8 8
Fourth 7 7
Fifth 6 6
First Other 10 10
Second 9 9
Third 8 8
Fourth 7 7
Fifth 6 6
Total Value 80 80
Total Wealth:160 units
Exchanges Innovation Wealth/Welfare
THE WEALTH CREATION FEEDBACK EFFECT
Marketing is about customers, processes, & profits 1. What is Marketing?2. The History of Trading and Wealth Creation3. Master Traders: How world trade got started4. Global Trading System Dynamics5. A Theory of Market Dynamics: Product innovation
life-cycle6. Process Improvement
WHAT IS MARKETING
Trade and then trading Empires grew out of the production of agricultural surpluses that could be traded and led to the diffusion of all sorts of innovations.
A SHORT STORY OF CIVILIZATION
Marketing is about customers, processes, & profits 1. What is Marketing?2. The History of Trading and Wealth Creation3. Master Traders: How world trade got started4. Global Trading System Dynamics5. A Theory of Market Dynamics: Product innovation
life-cycle6. Process Improvement
WHAT IS MARKETING
Demand increases for lower priced goods
Reduced transaction costs and better service
Trading alliance with new source formed
Pressure exerted on existing alliances to innovate.
Profits increase and prices to consumers are lower
Domestic manufacturing output contracts
Employment in manufacturing sectors shrinks. Pharmaceuticals, aerospace, and forest products, flourish.
Recession = more global suppliers
New supply source
GLOBAL TRADING SYSTEM DYNAMICS
The World has greatly prospered :
2000 2007World Trade $8 trillion $18 trillionWorld GDP $32 trillion $52 trillion Fortune Magazine, July 23, 2007
But the U.S. still dominates: 2005U.S. GDP (% household consumption) $9 trillion (70%)
Japan GDP $3.6 trillion (54%)
Germany GDP $2.2 trillion (57%)
China GDP $1.6 trillion (41%)
GLOBAL TRADING SYSTEM DYNAMICS
Marketing is about customers, processes, & profits 1. What is Marketing?2. The History of Trading and Wealth Creation3. Master Traders: How world trade got started4. Global Trading System Dynamics5. A Theory of Market Dynamics: Product innovation
life-cycle6. Process Improvement
WHAT IS MARKETING
When a new innovation is introduced/launched the variance in the supply offering increases but demand may not change much. Sales of the new innovation are low despite a lot of effort teaching potential consumers about the advantage of the innovation, changing their preferences and changing demand. The market is fermenting. Sometimes demand never takes off!
Introduction Growth Maturity
Market fermenting Market making Market equilibrium
Product Innovation Life-CycleSales
Time
A THEORY OF MARKET DYNAMICS
But when demand does take-off, supply has to greatly increase to keep up with demand. Imitators enter the market with “their” variation of theproduct innovation and supply but it is often standardized around a dominant design. Diffusion of the new innovation occurs through greatly expanded distribution reach. Advertising is about competitive comparisons.Profits are greatest. It is happy times for most suppliers.
Product Innovation Life-CycleSales
Time Introduction Growth Maturity
Market fermenting Market making Market equilibrium
A THEORY OF MARKET DYNAMICS
At the maturity stage there is little product design improvement and supply does not appear to change much. Market shares stabilize around Brand loyalty and the rate of change in demand and supply greatly decreases. Price competition increases, particularly as suppliers innovate on production process costreduction.
Product Innovation Life-CycleSales
Time Introduction Growth Maturity
Market fermenting Market making Market equilibrium
A THEORY OF MARKET DYNAMICS
Then a market transforming new technology platform or product design comes along that kicks off a new product innovation life-cycle. An example is the invention of the manual type-writer whose product life-cycle lasted from about 1880-1960, its replacement by the electric type-writer whose life-cycle lasted from 1920-1990, its replacement by the word-processor whose life-cycle lasted from 1960-1990 and its replacement by the PC whose life-cycle started around 1980 and continues. Transformational
new product
Old product
Product Innovation Life-Cycle
Introduction Growth Maturity Introduction
Market fermenting Market making Market equilibrium Market fermenting
Sales
A THEORY OF MARKET DYNAMICS
Marketing is about customers, processes, & profits 1. What is Marketing?2. The History of Trading and Wealth Creation3. Master Traders: How world trade got started4. Global Trading System Dynamics5. A Theory of Market Dynamics: Product innovation
life-cycle6. Process Improvement
WHAT IS MARKETING
THINKING ABOUT COMPETITIVE PROCESSES
– Organizations are designed around the flow of added-value processes and activities within the processes.
– Marketing managers must understand this flow from the inside-out and outside-in.
MKT100
Purchasing Processes
Supply Processes
Manufacturing Processes
Selling Processes
Distribution Processes
Service Processes
Purchasing Processes
Supply Processes
Manufacturing Processes
Selling Processes
Distribution Processes
Service Processes
Selling Processes
Distribution Processes
Service Processes
Purchasing Processes
Supply Processes
Manufacturing Processes
Manufacturer A
Manufacturer B
Manufacturer C
THINKING ABOUT COMPETITIVE PROCESSES– Economies are made up of chains of
manufacturers that each add value. It is called an added-value supply chain.
REMINDERS FOR NEXT WEEK
• Use your Ryerson ID to register.
Register at www.ryersonmkt100.ca !
• Review/Read, Take Quizzes• Read Case 1 – Cyrus McCormick
For Module 1
• Read, Take Quizzes• Watch for BB announcements
For Module 2