MKT10007 Lecture 1

2022

Dr. Agung Yoga Sembada (Yoga)

Dr Gordon Campbell

CRICOS 00111D
TOID 3059
Acknowledgement
of Country

On behalf of those present I acknowledge the

Wurundjeri people of the Kulin Nation who
are the traditional custodians of the land on
which we now meet. I pay my respect to their
Elders: past, present and emerging.

I also pay my respect to all Aboriginal and

Torres Strait Islander people of Australia and
hope that the path towards reconciliation
continues to be shared and embraced.
Lecture 1 Swinburne

Welcome to Marketing

Fundamentals of Marketing
Swinburne University of Technology

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

 Swinburne

Our Mission this Semester

- We, the teaching staff want you to succeed. Please take

advantage of the many opportunities available to you. If
you need help just ask.
- We have learnt from previous semesters what works well
and not-so-well. So we have made changes to help you
learn and succeed.
- All online self-study materials will help you with your
Assignments.
- You need to read the textbook and additional resources
on Canvas to add to the work we do in class.
- If you have questions or problems please ask us.
SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN 4
An overview of marketing Swinburne

Contact

- Your ClassTteacher is your main point of contact

• Or you use the Discussion board (via Canvas) for

questions - 24 hour response time

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

An overview of marketing Swinburne

We learn three ways > so we need to use these three ways as much as we can.

Aural – we listen to the person speaking

Visual – we look at the words, pictures, diagrams and

numbers.

Kinaesthetic – we do things such as:-

Taking notes
Writing our own summaries
Doing exercises and quizzes
Doing your Assignments.
SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN
What is Marketing? Swinburne

Marketing is descended from

- Psychology; the study of people’s needs, wants and

motives, and also from >
- Journalism; persuasive communication.
- Combined together we have a powerful combination;
we know what people need and want, and we know
how to persuade them that our products will satisfy
those needs and wants.

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

How to pass
Attend Classes
Watch the Recorded Lectures
Put the Assignment Due Dates into your
Calendar.
Submit every Assignment
 Session 1 - Agenda
Introduction
What is marketing
Core marketing concepts
5 marketing philosophies

https://www.stratfordhall.ca/campus-life/thelibraries/pyp-library/students/onlinedatabases
”Read mean tweets”: Lecturer
edition
Play part of this video – social media is mean!

https://www.youtube.com/watch?v=OrnpS
e4OChM
Definition of Marketing?
Part 1. What is marketing?
(some ways to define) Marketing…
The process where companies create value for customers
and build strong customer relationships to capture value
from customers in return (anon)
Marketing is a social and managerial process by which
individuals and organisations obtain what they need and
want through creating and exchanging value with
others’ (Kotler et al 2010).
‘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).
In short >> Marketing is the art of making people happier
with what they get than what they exchange for it (anon).
Start your first Assignment
NOW
 Why do we need to learn marketing?

“If I asked consumers what they want,

they would have said “a faster horse”

Henry Ford

10 companies own the world Price of ads: (1:43)

http://2.bp.blogspot.com/-YTY9xOYBO48/U1Nbr7sGLrI/
AAAAAAAAFuo/zfpnN3zzN0I/s1600/10-Companies-own-
https://adage.com/article/media/tv-pric
The-World.jpg ing-chart/315120
The Marketing Process
 Swinburne
From now onwards you need to “Think like a Marketer”

- Watch commercial TV – do not zap the commercials

- Listen to commercial radio
- Look at outdoor advertising, billboards, transit
advertising
- Take the “no junk mail” sign off your letterbox.
- Do your own shopping: in the supermarket, pharmacy,
department store: look at the packaging, the displays,
the stock layout, the signage. Listen to the sales spiel
- And all the time be asking yourself this Question>>>>>

SCIENCE | TECHNOLOGY | INNOVATION | BUSINESS | DESIGN

Every time you see advertising ask yourself:-

“To whom (= the target audience (usually customers and/or potential

customers))

are they saying what? (= the message)

Why? (= the communications strategy)
Why now? (this time of day, this part of week, this season, this phase of the
marketing campaign?)

Why are they saying it here? (this medium – does it match the media
habits of the target? = “media vehicle matching” (the “vehicle” is the thing which
“delivers” the “message” to the “target” audience.)

Why did they choose this person to say it? (celebrity/ a

person who is similar to target/ an authoritative person?)

What do they want the “whom” to do?” (buy now, add to

shopping list, have some familiarity with the brand, consider this brand, change their
beliefs or attitudes?

and what is the “call to action” trigger?

What do these three companies below have in common?

https://www.suncorpgroup.com.au/about/brands
Marketing is not just for
products!
Services
Ideas (and ideologies)
People
Places
Play the link here –
Marketing program to
Promote childhood
vaccination in
Afghanistan.
Part 2. Marketing Core Concepts
Needs, Wants & Demands
• Needs are states of felt deprivation, e.g. a
physical need for food – “I need to commute
to work”
• Wants are the manifestation of human
needs, as shaped by culture and individual
personality – “I want a Mercedes Benz”
• Demands are human wants that are backed
by buying power. “I can afford a Ford”
Maslow’s hierarchy of needs

Self actualisation needs (self

development / fulfilment)

Self-esteem needs
(recognition, status)

Social needs
(sense of belonging,
love)

Safety needs
(security, protection)

Physiological needs
(hunger, thirst)
22
 Ideal
vs
actual self
Do marketers ‘create’ need? (1:40, Dove
photoshop ad) Play this ad
https://www.youtube.com/watch?v=iYhC
n0jf46U

Or do we simply ‘remind’ people? (0:56

Snickers “You’re not yourself” Play this
ad
23
https://www.youtube.com/watch?v=NKO
“Market offerings” – combination
of goods, services and experiences
People satisfy their needs and wants by
exchanging value with the marketer.
In exchange for their money (and usually some
time and effort) they obtain a “market offering” -
which is a combination of physical goods,
services, information and experiences.
A market offering may include services (activities
or benefits) that are intangible.
The importance of the market offering lies in the
benefits it provides.
Marketing Core Concepts
Review
Customer value
Customer Total Total
value Benefits costs

Customer benefits is the bundle of economic,

functional and psychological benefits customers
expect from a product.
Customers costs is the bundle of costs customers
expect to incur in evaluating, obtaining, using and
disposing of the offering
– monetary, time, energy, mental
By the way…
What are the sources of value/satisfaction?
“I am willing to pay for something when it
makes me/gives me…..”
You can read the material below to
understand more about how people see
value. Students can read these articles
https://www.cnet.com/news/study-90-wine-tastes-better-than-the-same-win
e-at-10/

https://www.huffingtonpost.com.au/entry/burberry-burn-clothes-fashion-i
ndustry-waste_n_5bad1ef2e4b09d41eb9f7bb0
Customer satisfaction
If the customer’s experience of the product is:-
– equal to their expectation then they will be satisfied.
• Expectation < experience > delighted
• Expectation > experience > dissatisfied.
This may be influenced by past buying
experiences, the information and promises
made by the organisation and competitors and
what customers think is fair. Customers
• Value and
satisfaction

Marketers
• Set the right level of
expectations
• Not too high or low
Expectations gone wild or mild?

Uber will suspend

drivers scoring
less than 4.6,
placing drivers
under extreme
pressure to give
good service.
Sometimes this is
unreasonable.
Exchange and relationships
Exchange is the act of obtaining a desired object from
someone offering something in return
For it to occur, the following conditions are necessary:
– At least two parties present
– Something of value the other wants
– Ability to communicate offer
– Freedom to accept or reject
– Desire to deal with other party
A transaction is a trade between two parties that involves
at least two things of value, agreed-upon conditions, a
time of agreement and a place of agreement
Where should the lines of ‘fair
exchange’ be?

A “free” digital
service is usually
paid for by you.
The service
provider uses
your data and
intrudes upon
your privacy.
See their T & Cs.
Market
A market is the set of all actual and potential
buyers of a product
These buyers share a need or want that can be
satisfied through exchange. This represents the
overall potential market.
The actual market depends on the number of
people who exhibit the need, have resources and
authority to engage and are willing to offer these
resources in exchange for what they want.
Marketing Core Concepts
Review
Part 3. The 5 Marketing
Philosophies
The production philosophy
• Emphasis is on manufacturing superiority
and/or efficiency
- Focus on the internal capabilities of the organisation to
develop and produce better, cheaper and widely available
products
- Doesn't consider whether the products also meet the
needs of the marketplace
- But allows continuous improvements to be made
The sales philosophy
• Focus on selling existing products
– Large-scale and aggressive selling and promotional efforts
are used, so there is an inward focus on the staff
– Buys into the belief that high sales equate to high profits
– Useful when organisations have over-capacity or excess
stock
– For example, life insurance – it is difficult to convince
consumers to buy; they must have a need
The marketing philosophy
Emphasis is on customer needs and wants
and delivering the desired satisfaction
better than the competitors
The relationship philosophy
Expands the marketing orientation focus
from making a sale that meets the needs
and wants of the marketplace to the value
of the repeat sale
Establishing a relationship with the
customer rather than a one-time exchange
Recognises other parties that complement
or aid in facilitating the exchange as being
essential to success, e.g. suppliers
The societal marketing
philosophy
Marketing decisions should consider
customer wants, company requirements
and consumer and society’s long-run
interests
Marketing Philosophies Review
Inside-out view of marketing is product-
centric: ‘Selling what we can make’

Versus Outside-in view of marketing is

consumer-centric: ‘making what we can sell’

Is there a supreme orientation/philosophy?

Summary
Marketing often mean different things to
different people.
Marketing revolves around the concepts of
needs, values and exchanges, all of which
are continuously evolving
Different marketing contexts often
necessitates different orientation at
different times.