Mkt 100 021 - week 1 - intro and principles of marketing new

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:

– [email protected]– 979-5000 x 6727– Office: TRS 1-121

• Required online resource material – Blackboard MKT 100 Course– www.ryersonmkt100.ca

mailto:[email protected]

COURSE PHILOSOPHY

MARKETING 100 @ RYERSONPrinciples of Marketing

On-line Resources

www.ryersonmkt100.ca

Class Discussion

Cases and Scenarios

Metrics Mastery

http://www.youtube.com/watch?v=cL9Wu2kWwSY

WHAT’S NEW

http://www.ryersonmkt100.ca/From this: To this:

http://www.ryersonmkt100.ca/

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

http://www.ryersonmkt100.ca/

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


WHAT IS MARKETING

Innovation

Exchange

Wealth/Welfare

SOURCES OF PROSPERITY & WEALTH CREATION

Innovation and Creative Destruction

A: SCHUMPETER WEALTH CREATION PRINCIPLE

http://images.google.ca/imgres?imgurl=http://www.chass.utoronto.ca/french/sable/recherche/catalogues/annual_register/images/printing_press.jpg&imgrefurl=http://www.chass.utoronto.ca/french/sable/recherche/catalogues/annual_register/printing_history.htm&usg=__SH3dvxvgM53nOe1R5IytOZrq07Q=&h=328&w=312&sz=110&hl=en&start=3&tbnid=bHF75sG4jG9bQM:&tbnh=118&tbnw=112&prev=/images?q=printing+press+gutenberg&gbv=2&hl=en

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


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


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




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





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


Exchanges Innovation Wealth/Welfare

THE WEALTH CREATION FEEDBACK EFFECT



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



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



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.


Time Introduction Growth Maturity



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.


Time Introduction Growth Maturity



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




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


Supply Processes


Selling Processes


Service Processes

Selling Processes


Service Processes


Supply 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

http://www.ryerson.ca/

Mkt 100 021 - week 1 - intro and principles of marketing new

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