This document provides an introduction to a marketing fundamentals course (BUAD 307). It outlines information about the instructor, Lars Perner, the course objectives, grading policies, textbooks, and course structure. It also discusses key marketing concepts like customer value and the 4Ps. Students are introduced to an upcoming individual project where they will propose a new product, target market, distribution channel, or country expansion. Examples of previous student projects are also provided.

1. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 1
WELCOME TO
MARKETING
FUNDAMENTALS
(BUAD 307)!

2. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 2
PLEASE BE SURE YOU ARE
LOGGED INTO
POLLEVERYWEHRE!
PLEASE (1) CLICK THE HORIZONTALBARS ON
THE TOP OF THE SCREEN AND (2) THEN
SELECT “LOG IN OR SIGN UP” ON THE SCREEN
THAT APPERS.

3. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 3
BUAD 307
MARKETING FUNDAMENTALS
Instructor:
Office:
Office Phone:
Cell:
E-mail:
Web:
Lars Perner, Ph.D.
Assistant Professor of Clinical Marketing
Hoffman Hall (HOH) 603
(213) 740-7127
(213) 304-1726
perner@marshall.usc.edu
http://www.LarsPerner.com
http://www.BUAD307.com
http://www.ConsumerPsychologist.com
Blackboard: http://blackboard.usc.edu

4. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 4

5. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 5
Course Web Site

6. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 6
PowerPoint slides and summary
notes

7. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 7
Textbooks
Jonah Berger (2016), Contagious: Why Things
Catch On, Simon & Schuster, ISBN-13: 978-
1451686586.
Dhruv Grewal and Michael Levy (2018), M:
Marketing 6th ed., McGraw-Hill Irwin,
ISBN 978-1259924033.

8. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 8
Study guides can be found on the “Exams” page of the course web site:
http://buad307.com/exams.html

9. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 9

10. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 10
Textbooks are in the Southeast
corner of the Bookstore basement

11. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 11

12. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 12
About the Instructor: Lars Perner
• Ph.D., Marshall School of Business,
University of Southern California, 1998
• Returned to Marshall in 2006 after
teaching at the University of Maryland,
George Washington University, U.C.
Riverside, San Diego State University
• Courses taught:
– Marketing Fundamentals
– Consumer Behavior
– International Marketing
– Marketing Strategy
– Intro to International Business
– Channels/Distribution
– Agricultural Marketing
– Internet Marketing

13. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 13
About the Instructor: Lars Perner
• Research interests:
– Consumer Behavior
– International Marketing
– Consumer Price Response
– Consumer Bargain Hunting
– Branding
– Corporate Philanthropy
– Non-Profit Marketing
– “Win-win” Deals
– Autism Spectrum Disorders and Subtypes
• Country of birth: Denmark
• Selected outside involvement
– Marketing Educators’ Association
– Autism Society of America

14. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 14

15. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 15
About the Instructor: Hobbies and
Interests
• Gardening
• Music
• Spicy foods
• Supreme Court oral
arguments
• Computers and technology
With my sisters

16. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 16
Grading

17. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 17
Grading Issues
• Course grades are assigned based on the total number
of points accumulated. LETTER GRADES WILL NOT BE
ASSIGNED TO PROJECTS OR EXAMS ALONE (see
syllabus).
• Marshall competition is very intense.
• Not everyone can be “above average.” Some will be
below.

18. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 18
More Grading Issues
• Extra credit cannot be assigned.
• Grading is based on performance, not real or perceived effort. It
is NOT assumed that you start out as “perfect” and have “points
taken off” for deficiencies. A perfect score takes a nearly
superhuman person!
• Final grades can generally only be changed to correct mistakes
in arithmetic, Scantron misreads, or data entry that have been
made. Work quality or cut-offs cannot be re-evaluated under
the USC grade change policy.
• For more information on grading, please see Appendix A of the
course syllabus.

19. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 19
Research Participation
The first step is to create
an account with
Experimentrak, the
platform used to
administer the
experiments. Once you
sign up, you will be
notified of upcoming
studies.
Please see the “Research
Participation” page of the
course web site.

20. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 20
Class Meetings

21. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 21
Office hours
HOH 603

22. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 22
The Near Future…
• This week
– Lecture
• Intro to the course
• Video case: Obsessing over
quality at BMW
• Some marketing phenomena
• Customer value
– Discussion
• Why does Tony the Tiger wear
a scarf?
• Project info
• Strategic retail reconnaissance
mission (trench coats
optional)
• Week 3
– Lecture
• Marketing Overview
• Marketing Strategy
• Ethics and Social
Responsibility
• The Marketing Environment
– Discussion
• Customer value
• Team meetings
• Brief presentations

23. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 23
Course Objectives
• Apply fundamental marketing terms, concepts, principles, and theories and their
effective applications to real-world situations in a global market.
• Describe how the marketing function is organized and fits into an organization,
including the relationships between marketing issues and those of other business
disciplines.
• Make effective marketing decisions in real world settings using critical thinking skills.
• Effectively communicate marketing analysis
• Effectively collaborate to analyze marketing options
• Identify and make judgments about questionable marketing practices by applying an
ethical decision framework.
• Identify and evaluate the advantages, disadvantages, opportunities, and tradeoffs
involved in different marketing strategies and choices
• Address the dual roles of formal analysis and creativity in designing and implementing
effective marketing programs

24. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 24
Customer Value, Part I
• Value is the ratio of the benefits received (usually
goods or services) to what is given up (usually
money)
• For a transaction to take place, the benefits
received must usually be greater than the sacrifice
for both parties—usually
– The customer values the goods and services received more
than the money spent
– The seller values the money received more than the goods
or services given up (i.e., it is worthwhile to produce these in
order to get this payment)

25. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 25
Customer Value, Part II
• A low priced product may not represent value to a
customer if the benefits received are perceived to be low,
too
– E.g., bargain garbage bag that does not last
• Different customer segments will have different value
perceptions and desires
– E.g., “tough truck” vs. “sporty car”
• A product which is adapted to the needs of a particular
segment can be very valuable to that segment even if the
overall “quality” is not seen as superior by most other
consumers
– E.g., some people like a “clumsy” Hummer
• Cost may be in terms of money or other sacrifice (e.g.,
travel time, delay)

26. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 26
Examples of Customer Value to
Different Customers
PICKUP TRUCK PRIUS
BMW MINI COOPER

27. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 27
Tools to Provide Customer Value (4Ps)
• Product (both the tangible item and associated services)
• Price (different segments of customers will pay different
amounts depending on their product needs and preferences)
• Place (distribution—making the product available where it is
convenient to the customer)
• Promotion (advertising, sales promotion, publicity, selling,
special events)

28. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 28
Customer Value: AFLAC Insurance

29. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 29
Customer Value: Boeing 787
Some customer benefits
• Greater fuel economy
• Higher levels of pressurization made
possible by carbon composite material
(repeated pressurizing and de-pressurizing
will not cause as much wear as on aircraft
made with traditional metal)
• Design for perception of more space
• Useful for long haul routes with less
passenger demand than needed for a 777
or A380
• Bigger windows —> reduction in jetlag
• Reduced noise within plane
• Reduced turbulence
Direct customers:
Airlines, leasing
companies
Indirect customers:
Travelers

30. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 30
Customer Value: Starbucks

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Customer Value: Raw Fish (Ugh!)

32. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 32
Customer Value: Ziploc Bags

33. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 33
Customer Value: iPhone
Some sources of value:
• Ease of use
• Multiple functions within one easy-to-carry device
• Elegance of design
• Prestige
• Reliability
• Integration with iPad and Apple computers
Many customers are willing
to pay a large premium on
the iPhone relative to
competing Android based
brands offering very similar
features
Part of the value is supplied
by
• Cell phone service
providers
• Distributors
• App developers
• Online tutorial makers
and info produced by
others

34. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 34
Value: Nordstrom’s

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Value: Walmart

36. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 36
Value Engineering
• Increasing offering value by
– Decreasing cost
– Improving
• Durability
• Performance
• Reliability
• Convenience
• Aesthetics
No box  lower
cost, less waste,
less bulk,
less hassle
SPEEDSTICK

37. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 37
Some VERY high-tech products with carefully
engineered value
• French fries
• Razor blades
• Nail polish
• Kitkat candy bars

38. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 38
Customer Value: Soda Vending

39. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 39
Customer Value: Netflix

40. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 40
Diff’rent Strokes For Diff’rent
Folks…

41. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 41
OFFERINGS:
PRODUCTS,
SERVICES, AND
IDEAS
VALUE:
CUSTOMER
BENEFITS
CREATION:
RESEARCH, DESIGN,
MANUFACTURING
DELIVERY:
DISTRIBUTION,
EXECUTION OF
SERVICES
EXCHAGE
CAPTURE
BY SELLER
COMMUNICATION
MONEY,
BEHAVIOR
FROM BUYER
UTILITY CONVENIENCE
SECURITY
AVAILABILITY EASE OF USE
EFFECTIVENESS
Creating, Communicating, and Capturing
Customer Value
PLEASURE
Exact model is NOT needed for exam!
Please focus on the general ideas.

42. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 42
Why does
Tony the
Tiger wear a
scarf?

43. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 43
In this class, you will need to work
with…
• Course ideas
• Research
• Insights from other courses
• Insights from your life experience
• Intuition
• Critical thinking

44. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 44
FEEDBACK FROM
EMPLOYERS EMPHASIZES
CRITICAL THINKING

45. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 45
THE REAL WORLD
IS A COMPLEX
PLACE!
Context and dynamics
are important!

46. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 46
THE IMPORTANCE OF
“TINKERING” AND
PLAYING AROUND
WITH IDEAS
“PERCOLATION” OF
IDEAS IN THE
BACKGROUND

47. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 47
The Socratic Method
• Used in law schools
• Learning by induction—developing
general ideas by examining specific
cases
• Development of analytical skills
• Research shows that learning tends
to be enhanced when information
is acquired through thinking about
and answering questions

48. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 48
Course Philosophy
• Application to needs of real
firms rather than
memorization
• Focus on general ideas rather
than on facts that quickly
becomes obsolete
• Broad overview of marketing
• Assignments require individual
initiative and thinking

49. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 49
Available on the Course Web Site

50. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 50
Available on the Course Web Site

51. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 51
PROJECT
NEW
CUSTOMER
VALUE
PRODUCT OR SERVICE
TARGET MARKET FOR AN
EXISTING TYPE OF
PRODUCT
CHANNEL FOR
DISTRIBUTING AN
EXISTING PRODUCT
PRODUCT OR SERVICE
“TRANSPLANTED” FROM
ONE COUNTRY TO
ANOTHER
OR
OR OR
OR

52. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 52
Course Project
• Please choose:
– A new product or service not currently in existence;
– An existing product or service that has potential to be
targeted to a segment or type of consumers that currently
does not use the product at potential
– An existing product or service that could achieve significant
additional sales if distributed through a new channel; or
– An existing product that is sold in one or more countries and
can be introduced in another specific country where it is
currently not widely used.

53. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 53
Project Structure
• Proposal
• Office visit to discuss the proposal
• Secondary Market Research
• Applications Paper

54. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 54
Examples: A New Product or Service
• Auto GPS system that offers the “least stressful” route as
one of options
• Car with built-in mini-safe
• Bathroom water collector for garden re-use
• Secular values training and leadership programs for
children of busy parents not involved in organized religion
• Feature added to a firm’s existing app
• Scooter deployed driver for people who have consumed
more alcohol than anticipated at bars or restaurants
This does not have to be an entirely new product category. Adding a new feature or
making alterations to a product category qualifies if this is likely to be of value to
some customers. Even new specific shade of lipstick qualifies.

55. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 55
Examples: Existing Product For An
Underserved Target Market
• Video games marketed to senior
citizens (who want to preserve mental
agility and/or play with their
grandchildren)
• Noise cancelling headphones for
children vulnerable to distraction
• Attracting a new type of student (e.g.,
“geeks”) to a fraternity or sorority
• Attracting under-represented groups
(e.g., Filipino Americans) to USC

56. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 56
Examples: Existing Product With Potential
Through New Distribution Channel
• Fresh bagels delivered to customers’ homes on
weekends
• Produce trucks to “food desserts”
• Financial planning programs sold through
churches, synagogues, or mosques
• Airport manicure tables
• Inkjet printer cartridges sold through Greek
houses
• Groceries being delivered to car pool or van
pool departure sites
• New merchandise sections in college
bookstores that no longer need as much space
for textbooks

57. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 57
Examples: Existing Product for a New
Country
• Fortune cookies (which are actually not used in Mainland China)
• U.S. fast food chains abroad
• Foreign fast food chains in the U.S.
• Brazilian Natura cosmetics introduced to the U.S.

58. BUAD 307 COURSE INTRODUCTION Lars Perner, Ph.D., Instructor 58
Strategic Reconnaissance Mission
• One can only understand certain
issues in marketing by
visualizing the customer in his or
her natural habitat
• Brief strategic reconnaissance
mission during first week’s
discussion
• Regrouping and presentations
during the third week’s
discussion
• Details in handout
Trench coats optional!