What is Marketing and what Marketing encompass

Marketing Management

1. Session 1: What is Marketing
CORE MARKETING
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Professor Remi Trudel
Questrom School of Business, Boston University

2. Professor Remi Trudel
Email: [email protected]
Phone: [phone] (office)
Office Hours: 658B Hariri, Mondays 4:00-5:30
Contact Information
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3. Contact Information
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Teaching Assistants
AlyssaGutner -Davis [email protected]
DarrenRanck [email protected]
Spencer Clason [email protected]

4. What is Marketing?
CORE MARKETING
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5. CORE MARKETING
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Marketingis the analysis, planning, implementation, and control of
programs designed to create, build, and maintain beneficial
exchanges with target buyers for the purpose of achieving
organizational objectives.

6. Production Concept
Selling Concept
4 Key Concepts or Philosophies of
Marketing
CORE MARKETING
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Product
Concept
Marketing Concept

7. CORE MARKETING
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The Production Concept.Based on the notion that consumers
will prefer products that are widely available and inexpensive.
•Concentration on achieving high production efficiency, low
costs, and mass distribution.
•Assumption is that consumers are primarily interested in
product availability and low prices..

8. CORE MARKETING
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The Selling Concept.Based on the notion that consumers will
buy anything as long as the company sells these products
aggressively.
•Does not build relationships with customers
•Repeated sales are rare.

9. CORE MARKETING
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The Product Concept.Based on the philosophy that consumers
will favor those products that offer the most quality, performance,
or innovative features.
•Focus on making superior products and improving them over
time.
•Assumption is that buyers admire well-made products and
can appraise quality and performance.

10. Segway
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11. Good Product?
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12. Consumer Use ?
Price: $4,950.00
New Price:
$3,950.00
BUT:Year 1 sales: 6,000
Year1 projected sales between 50,000 and
100,000
And plant capacity: 40,000 units per month
http://www.ired.com/news/mkt/segway.htm
Good Product?
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13. Why did it fail?
CORE MARKETING
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14. •Main reasons for failure:
•No clear understanding of needs
•No clear understanding of segmentation
•No clear positioning strategy
•Unclear benefits
•Working against a major trend?
•Product concept vs. Marketing concept
Lessons from Segway
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15. CORE MARKETING
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The Marketing Concept.It holds that the key to achieving
organizational goals consists of the company being more
effective than competitors in creating, delivering, and
communicating customer value to its selected target customers
•The marketing concept rests on four pillars:target market,
customer needs, integrated marketing, and profitability.

16. CORE MARKETING
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How do we build a better mousetrap?

17. CORE MARKETING
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18. CORE MARKETING –Consumer focus
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Customer Oriented Questions –The Marketing Concept
•What triggers the decision to buy?
•Who in the makes the decision to buy?
•Who actually buys?
•Where/how does the person buy ?
•Who uses the product and how do they use it? Consumption
rituals?
•What features do users want in a new product that might
make them switch from an old product?

19. CORE MARKETING
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•Marketing Insights: Understand the heart and mind of
customers
•Marketing Strategy: get in the mind and heart of customers
Marketing Success = f( , )

20. Customer
CompanyCollaborators
Context Competition
ANALYSIS DECISIONS OUTCOMES
EXECUTION
Marketing Mix Decisions –4 Ps
Creating and capturing value
-Product, Promotion, Price & Place
SegmentationTargetingPositioning
FUNDAMENTAL
What business are we in?
What customer needs are we
satisfying?
CUSTOMER
Acquisition
Retention
Loyalty
WOM
BRAND
Equity
Strength
Competitive adv.
Market position
FIRM
Sales
Profits
Market share
The Strategic Marketing Process

21. Case:
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22. ________________________________________

23. ________________________________________
•What were the key problems
facing De Beers?
•Need to expand business and
grow revenues
•Different markets = Different
challenges
PRODUCT

24. ________________________________________
•Need to understand your consumer
•Who, Why, What, and How
•Positioning -the place that a brand occupies in the minds of
the customers and how it is distinguished from the products of
the competitors.

25. Course Structure and Syllabus: What
is MK 723?
CORE MARKETING
__________________________________________________________
Professor Remi Trudel
Questrom School of Business, Boston University

26. CORE MARKETING
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Objectives of this course
•Introduce key marketing concepts, tools and frameworks
•Understand the primacy of the consumer
•Improve your ability to analyze marketing problems
•Develop skill in evaluating options and making decisions

27. UNDERSTANDING
MARKETS,
CUSTOMERS,
COMPETITORS
MANAGEMENT
SIMULATION
CAPSTONE
STRATEGY
PRODUCT
& BRANDS
DISTRIBUTION
PRICING
COMMUNICATION
INTEGRATION & PRACTICE
Course Structure
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28. Course Structure
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Caseanalysisanddiscussions
“In-the-News”discussions
Inclassexercises
GuestSpeakers
Socialmedialisteningexercise
Integratedmanagementsimulation

29. 1.Preparation –Know the case. Know the facts.
2.Presence –There are only 10 classes so each absence is very
costly.
3.Punctuality –start on time/end on time. I experience traffic
too!
4.Participation –if you don’t participate you miss a lot –you
miss on grades but more importantly on learning. You are also
depriving others of your perspective.
Class Requirements –4Ps
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30. Course Evaluation
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•Class Participation 25%
•In-the-News Discussion Forum –10%
•Social Media Listening Exercise 10%
•Integrated Management Simulation 25% (10% performance,
10% presentation, 5% executive summary)
•Final exam 30%

31. •Student centric, discovery-orientated experiential,
collaborative, argumentative, & inductive learning based on
typical business situations.
•Opportunities to practice management decision-making:
•Identify & structure the opportunity/problem
•Perform qualitative and quantitative analysis
•Evaluate alternatives
•Make a decision: Formulate & recommend
action plans
Over time
Why Cases
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32. Types of Analysis
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Context analysis
•Industry size and growth…etc
Company analysis
•Profits etc.
Customer analysis
Competitor analysis
Collaborator analysis
Economic analysis
•Contribution margins
•Investments and breakeven
•cannibalization

33. Economic Analysis
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•Unit contribution margin (UCM) = selling price –variable cost
•Margin (as a %) = (price –variable cost)/price
•Total contribution margin = UCM x Units sold (volume)
•Price = Variable cost /(1-Margin)
•Break even volume = Investment/unit margin in $

34. Components of Profit
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Variable costs –costs that vary with different levels of output
Fixed costs –costs that are the same regardless of levels of
output
Materials
Labor
Buildings
Interest
Variable Cost
Variable Cost
Fixed Cost
Fixed Cost
Machinery Fixed Cost

35. Always a Cold call**
•Very important –sets the tone for the entire discussion
•Keycompany and industry information
•Your plan –what, why, how
•Lay out the issues –not just case facts!!!
•ID problem, Alternatives, and how you should evaluate the alternatives
•Around 5 mins
Participation –Case Opening
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36. Case discussion
•Voluntary
•Cold calls
•Quality not quantity
•Quantity can only hurt you if that’s all you have to contribute
•Listen carefully, actively and critically to your classmates’ ideas
•Build on or debate issues and comments of your classmates
•Listen to the question asked
Participation –Case Discussion
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37. Expected from everyone
•Rigor (logic + evidence + assumptions)
•Relevance
•Clarity
High Quality
Provides insight into the issue
Synthesis of insights –links comments/issues together
Movement
Participation –What is Quality?
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38. •No need to write a summary of the case…should be able to
structure your analysis (see Case Analysis Template in Case
Prep folder in Questrom Tools)
•When presenting analysis:
•Repeating case facts is not an analysis. We’ve all read the
case!
•Turning data into recommendations is.
•Don’t feel like you failed because your analysis was different from
where the discussion ended. Feeling that you’ve missed some
issues/angles is normal and expected.
Preparing for Class
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39. UNDERSTANDING
MARKETS,
CUSTOMERS,
COMPETITORS
MANAGEMENT
SIMULATION
CAPSTONE
STRATEGY
PRODUCT
& BRANDS
DISTRIBUTION
PRICING
COMMUNICATION
INTEGRATION & PRACTICE
Course Structure
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40. DOMINION MOTORS
For our discussion, please assume a 5 year life for oil well pumping motors.
1. Which option would you recommend and why?
•Please make sure that you considerfinancialas well as non-financial factors(both from the company
and the customerperspectives) of each option.
*Hint: think total costs
2. How are oil well pumping motors purchased? Who is involved in the purchase? What do they care about?
3. Which of the various groups of people (production, engineering, finance, advertising & public relations) at
Dominion will support your alternative? Why?
4. How did Dominion Motors get into this predicament? How can Dominion avoid this in the future? Is this an
important problem for Dominion?
Next Case: Dominion Motors
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