Principles of Marketing -- introduction to, overview of marketing.

1. Principles of Marketing Dr. Nick De Bonis COBA, Georgia Southern University Without promotion something terrible happens... Nothing! – P.T. Barnum

2. Cordless Jump Rope Patent #: US 7037243 issued on 2 May 2006 “To use the invention, a user holds a handle in each hand, and begins to simulate jumping rope while moving the handles in a circle with their hands and arms. The weighted ball or gear simulates the centrifugal action of a jump rope, thus delivering all the health benefits of jumping rope without any of the disadvantages of stumbling on the rope, having the rope hit the ceiling or the like." 2

3. A Revisionist History of Marketing When did marketing begin? HINT: Judeo Christian literature Product? What did it represent to Eve? Why did she want it? 3

4. Needs/Wants: Homeostasis Maslow’s Hierarchy of Needs

5. A Revisionist History of Marketing Product? Salesman? Buyer? What was gained, given up in the exchange? 5

6. The Concept of Exchange Give Up Get Valuen = Getn Give Upn The idea that people Give Up something to Getsomething they’d rather have. 6

7. Exchange: Necessary Conditions 7 At Least Two Parties Something of Value Communication and Delivery Freedom to Accept or Reject Desire to Deal with Other Party

8. The Concept of Exchange Exchange may not take place even if all of the conditions are met An agreement must be reached Marketing occurs even if exchange does not take place 8

9. A Revisionist History of Marketing Early bartering Woody Allen and Arnold Schwarzenneger cavemen 9

10. A Revisionist History of Marketing Pre-Industrial Revolution Why did groups move into villages? Agoras: marketplace 10

11. Industrial Revolution 11 1st IR 1712-1830 2nd IR 1830-1950

12. More Revisionist History IR Focus on Production Americans can have their Model T painted in any color as long as it’s black. -- Henry Ford (1920s) [color in 1925] 12

13. More Revisionist History Late 1800s the focus shifted to Distribution (Placement) 13 May 10th, 1869, the Central Pacific and Union Pacific met at Promontory Point, Utah, where their tracks were joined, and the last tie laid.

14. More Revisionist History The Age of Regulation Caveat emptor Classical Liberalism Laissez-faire markets Effect of the industrial revolution 14 Adam Smith 1723-1790

15. Insect Parts Allowed in Your Food? FDA's Food Defect Action Level list CHOCOLATE AND CHOCOLATE LIQUOR Insect filth: Average is 60 or more insect fragments per 100 grams when six 100-gram subsamples are examined OR any 1 subsample contains 90 or more insect fragments. Happy Valentine’s Day 15

16. Wacky Warning Labels 16

17. More Revisionist History What happened in marketing from 1929-1945? 17

18. More Revisionist History Post-WW II Shift from military production to consumer goods The Sales era: Build a better mousetrap and the world will beat a path to your door. Marketing Mix: 1956 18

19. Traditional Marketing Mix Marketing = f (Product + Place + Price + Promotion) Planning Product Placement Price Promotion Marketing Lens Product: People, Perception, Politics Services: People, Physical evidence, Process Ideas: Partnership, Purse strings, Policies Traditional Marketing Mix 19

20. Traditional Marketing Mix Marketing = f (Product + Place + Price + Promotion) Planning Product Placement Price Promotion Marketing Lens Product: People, Perception, Politics Services: People, Physical evidence, Process Ideas: Partnership, Purse strings, Policies Expanded Marketing Mix Market Focus Mix Attentiveness Acceptability Availability Affordability Awareness The 4 Ps Affiliation Attitude Accommodation Market Focus = f (Acceptability + Availability + Affordability + Awareness) 20

21. More Revisionist History 1980s – Porter 5 Forces of Competition Competitive Stragegy 21

22. 1935 -- Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers. 1985 -- Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives 22 American Marketing Association Definition 1985 AMA Redefines Marketing

23. More Revisionist History 1990s Relationship Marketing Sales/transaction focused replaced by outside-in customer focus Can’t build a better mousetrap and expect the world to beat a path to your door. 23

24. Marketing is an organizational function and 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 stakeholders. 24 American Marketing Association Definition 2004 2004 AMA Redefines Marketing

25. 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. Marketing is regarded as an 'activity' instead of a 'function' and positions marketing as a broader activity in a company/organization, and not just a department. The new definition also positions marketing as providing long term value rather than narrowly as an exchange of money (short-term) for the benefit of the shareholder/organization. 25 American Marketing Association Definition 2007 2007 AMA Redefines Marketing

26. Barter: Pre-IR Production Era: post IR Distribution Era Sales Era: early 1900s-1929 Marketing Concept: 1956 Customer Relationship Era: 1990s Market orientation CRM (customer relationship management) Customer experience 21st Century – 4 Cs Customer, Competencies, Competition, Conditions Review: Marketing Evolution