Marketing Management

(MKT 6301)

Lecture 1: Introduction and the

Role of Marketing in
Organization and Society
Dmitri Kuksov

Todays Outline

What is Marketing?

Evolution of Management Philosophies over time

Overview of the Course & Syllabus

STP: A Preview of a Marketing Tool

Understanding and predicting consumer behavior:

Needs vs. wants vs. demands

The University of Texas at Dallas

Marketing involves determining the

4 Ps of the Marketing Mix:

What is Marketing?

Marketing is the process of finding the best way to satisfy

needs and wants of agents (e.g., buyers and sellers)

Common Miss-perceptions:

Marketing is sales or advertising

Marketing makes people buy what they dont need

A Company has to have a Marketing Department for

Optimal Management of Marketing Activities

Marketing is the connecting link between market

agents, e.g., companies and consumers

Company Orientations Towards

the Marketplace
Production Concept

Consumers prefer products that are

widely available and inexpensive

Product Concept

Consumers favor products that

offer the most quality, performance,
or innovative features

Selling Concept

Consumers will buy products only if

the company aggressively
promotes/sells these products

Marketing Concept

Focuses on needs/ wants of target

markets & delivering value
better than competitors

Product (and associated services)

Price
Promotion/Communication
Distribution (Place)

Based on the Analysis of the 3 Cs of

Marketing Environment:
Customer

Company

Competition

Change of Philosophies Over Time

Timeline of Management Philosophies:
Production / Product
Concept
1920s

Selling
Concept
1940s

Marketing &
Societal Marketing
Concepts
1990s

Definition of Marketing

Just as marketing itself, definition has evolved:

The Marketing Concept (1990s now)

1935-1985: The sum of activities involved in directing the flow

of goods and services from producers to consumers.
1985-2004: 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 goals.
Current: 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

In summary: Marketing is the delivery of

customer value at a profit.

Marketing involves connecting with people

Ethical considerations are paramount

Societal

marketing:

Marketing needs to serve not only the company (or

buyer and seller) but the society as a whole

May be viewed as an extension of the Marketing

concept in the current socio-political environment

A Useful Tool: STP

What distinct groups of customers are out there?

What do they want?

What can you market? Some examples:

Products (e.g., Aquafina)

Services and Organizations (e.g., UT Dallas)

Ideas (e.g., antismoking, no littering)

People (e.g., actors, politicians)

Cities (e.g., Las Vegas)

Team Exercise: Design Media Content

of an Anti-Smoking Campaign

Goal: Reduce smoking to reduce governments

health care costs and increase life expectancy

Who should be targeted?

What should be the selling point(s)?

Targeting

Which group(s) are the best to go after?

Satisfaction matters more than individual sale

Marketing in Action

Segmentation

satisfy needs and wants of consumers, not product.

What is a product? Look at what it is for, not what it has
Flexible production

Identify most profitable consumers and build

relationship with them
Technology allows customer tracking/analysis
Long-term relationship/profit instead of one-time

Marketing Ethics

Focus on market

Positioning

What should we communicate to appeal to target

consumers?

Applying Marketing to
Management

Major shifts in marketing strategy

Company Consumer/Customer

Short-term profit long-term profit

Transaction Relationship

Creating value, societal marketing

Services & not-for-profit marketing

Holistic marketing: understanding that

marketing management must involve and design:
People
Processes
Programs (e.g., the 4 Ps of marketing mix)
Performance metrics
(the 4 Ps of Marketing Management)

Course Structure

Two ways of looking at business

Old/traditional way:

Offers (marketing mix)

Company

Customers
Revenue, feedback

In the classroom:

Modern/holistic way:

Outside classroom:

Customers
Customers
Customers
Customers

As a consumer look at:

Packaging

Advertisement

Sales,

Coupons and Warrantees

Department Store Music
Customer Loyalty Programs

be aware, be informed!

Prepare for case studies: this is essential for active learning

Look at popular press from marketing POV
Observe the marketing environment around you
Project

Periodically, check information on eLearning

Course Objectives

Marketing is Everywhere in Your Life

Lectures
5 HBS case studies
Popular press/short video discussions
Student project presentations

Familiarity with commonly used marketing

terminology
Being able to analyze market opportunities
Understanding how business works
Learning marketing strategy and tactical
implementation
Preparing for job market interviews

Grade components

Class participation 10%

5 Case Write-ups (teamwork), 5% each for best 4 20%

Office Hours: Thu 10am 12noon, JSOM 13.225

Other times welcome, please email for an appointment

Email: Dmitri.Kuksov@utdallas.edu

Midterm Exam 20%

Project (teamwork) 20%

Teamwork encouraged, but not essential

Essay style (some bullet-points ok), plus exhibits (if desired)
Be concise: MAX three 1.5-spaced pages (plus exhibits)

Contact Information

About equally split between presentation and report, but content

heavily influences both
Teamwork strongly encouraged (3-5 students/team)

Please start subject line with MKT 6301

If I dont respond same day, it may have been lost (e.g.,
email system may block emails with some attachments
or automatically redirect to spam) follow up

Final Exam 30%

About me

Role of Marketing & Marketing Process

Ph.D. from Haas Business School (U.C. Berkeley)

Some Questions

Until 2012, at Washington University in St Louis

Research areas:

Theoretical modeling of firm and consumer behavior

Competitive strategy (theoretical)

Branding, pricing, distribution channel management

(also theoretical)

Especially as related to search behavior and brand valuation

Do we (managers) know what customers want?

Do our customers know what they want?

How can we predict what customers will want in

the future?

Needs vs. Wants vs. Demands

Marketing Terminology:

not created, but understood & satisfied

Mostly independent of culture and upbringing (genetic)

Want: means of satisfying need(s)

Need: a felt state of depravation

Something to think about

Next Time

Often depends on culture and marketing

Demand: a want backed up by the buying power

Marketing can create wants & demands
TV, computer, cell phone, turbo man
Challenge: allocating limited resources to unlimited wants

Teaching (education) is one of the goals of

UTD/JSOM
Who are the customers of JSOM?
What needs does JSOM satisfies/tries to satisfy?

Relationship Marketing (CRM)

Marketing Environment, trends, global marketing
Strategic planning