Principles of Marketing - Lecture 1

Introduction

• Course: Principles of Marketing
• Textbook: Marketing, 8th Edition, McGraw-Hill by Grewel and Levy
• Learning Management System: For exercises and assignments
• Syllabus: Check for updates, meeting dates, and asynchronous online sessions

Chapter 1: Overview

• Purpose: Summary of the course
• Focus: Core principles of Marketing

Evolution of Marketing

• Factors Influencing Evolution:
  • Products and societal needs
  • New product development

Historical Context

• 50 years ago:
  • No bottled water trend
  • Shift to health consciousness: Disposable plastic water bottles
  • Environmental awareness: Reusable plastic bottles, issues with BPA, and shift to stainless steel (e.g., Hydro Flask)

Core Concepts of Marketing

• Definition: Activity, institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value

Marketing Plan

• Purpose: Guides marketing activities for a period
• Components: Product design, cost determination, promotional strategies, delivery methods
• Core Aspects: Impact on stakeholders, satisfying customer needs, entail exchange, create value

Marketing Mix (4 Ps)

1. Product: Creating value
2. Price: Capturing value
3. Place: Delivering value
4. Promotion: Communicating value

Examples

• Warby Parker: Low-cost eyeglasses, home try-on service
• Glowforge: 3D laser printer for various materials, successful crowdfunding
• Amazon Prime Now: Efficient supply chain and delivery service

Marketing and Customer Interaction

• Individual vs. Organization Marketing: Examples from eBay and Etsy
• Impact: Diverse stakeholders like supply chain partners and society

Evolution of Marketing Eras

1. Production Era: Early 20th century, focus on manufacturing
2. Sales Era: 1920-1950, driven by Great Depression and WWII, introduction of advertising
3. Marketing Era: Post WWII, consumer choice and quality focus
4. Value-Based Marketing Era: Current, focus on customer value and long-term relationships

Key Strategies in Value-Driven Marketing

• Value Co-creation: Customer involvement (e.g., personalized portfolios)
• Relational Orientation: Emphasizing customer relationships
• Customer Relationship Management (CRM): Data-driven marketing strategies

Modern Marketing Practices

• Big Data and Analytics: Enhanced targeting of customer needs
• Social and Mobile Media: Increasing connections with customers
• Ethical Considerations: Corporate and societal responsibilities
  • Triple Bottom Line: Economic, social, and environmental performance

Conclusion

• Upcoming: Detailed exploration of topics
• Assignments: Check LMS for weekly tasks and quizzes

Progress Checks

• Questions from Textbook and Video: Prepare answers for quizzes

Additional Resources

• Triple Bottom Line (YouTube TEDx Talk): Recommend watching for deeper understanding of ethics in marketing