Class 1 - Welcome To Principles of Marketing

Principles of Marketing

  • Instructor: Constanza Urdaneta R.

  • Institution: The University of Texas at Austin

Agenda

  • Introductions

  • What is Marketing?

  • Course Information

Introduction to Marketing

In-Class Activity

  • Form groups of 3-4 to discuss the definition of marketing.

  • Groups will share their findings after 5 minutes of discussion.

Definition of Marketing

  • American Marketing Association (2013): 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.

  • Marketing involves the art and science of providing value to customers by addressing their needs and wants effectively.

Clarifying Marketing

What Marketing Is Not

  • Simply selling more products or services for a higher price is not marketing.

  • Advertising and sales promotions are components but not the entirety of marketing.

What Can Be Marketed?

  • Goods and Services

    • Examples of companies and brands: ExxonMobil, Johnson & Johnson, CVS Health, Tesla, Microsoft, Ford, etc.

  • Other Entities:

    • People (individual brands or influencers)

    • Places & Experiences (tourism, events)

    • Ideas (causes and social movements)

    • Organizations (non-profits, community services)

Understanding Market Dynamics

Reason Business Exists

  • Needs: People, companies, and society have needs.

  • Solving these needs provides value to all parties involved.

Consumer Behavior

  • People are likely to purchase if the benefits of a product exceed its costs (price, time, effort), leading to a net positive exchange.

The Role of Marketing in Value Creation

  • Providing value drives organic growth in businesses, with different sectors contributing uniquely:

    • $3.3 trillion in GPUs and AI solutions.

    • $3.6 trillion in consumer access services.

    • $719 billion in pharmaceuticals enhancing life quality.

Differentiation in Marketing

  • Firms must solve customer needs and wants better than competitors to grow.

Key Marketing Strategies (Dhruv & Levy, 2021)

  1. Customer Excellence:

    • Focus on retaining loyal customers through relationship marketing and customer service.

  2. Operational Excellence:

    • Achieve efficiency through effective supply chain management and quick delivery.

  3. Product Excellence:

    • Ensure high-quality products with strong branding.

  4. Locational Excellence:

    • Maintain presence in key locations to enhance accessibility.

Marketing Strategy: The Three C's of Marketing

  1. Customers:

    • Identify target customers and understand their values and preferences.

  2. Competitors:

    • Analyze competing brands to see how they meet customer needs.

  3. Company:

    • Assess internal resources and capabilities.

Marketing as a Scientific Field

  • Marketing blends knowledge from various disciplines:

    • Pure Fields: Sociology, psychology, mathematics, etc.

    • Applied Fields: Utilizing pure knowledge for real-world applications.

Comparison to Other Business Disciplines

  • Internally Focused Disciplines: Accounting, Finance, Supply Chain, MIS.

  • Marketing Focus: Focuses on market interaction and customer relations.

Practical Relevance of Marketing

  • Applies to various life aspects, including personal branding, job hunting, fundraising, and networking.

Course Information

  • Structure: Insights, Strategy, Execution, Modern Topics in Marketing, Consumer Behavior, etc.

  • Textbook: Available as an ebook, older editions allowed at risk.

Grading Overview

  • Class Participation & Attendance: 15%

  • Individual Case Reports (2): 15%

  • Midterm Exam: 20%

  • Group Project: 30%

  • Final Exam: 20%

Classroom Expectations

  • A structured approach to understanding marketing theories and their real-world applications is emphasized.

  • Class aims to promote critical thinking and problem-solving skills.

Attendance Policy

  • Mandatory attendance, with a maximum of 2 unexcused absences allowed.

Individual Case Reports

  • To be formally written with critical analysis and application required.

Project Details

  • Shark Tank style projects focusing on ideation, market research, product development, and marketing strategies.

Communication and Office Hours

  • Contact: Email at constanzaurdaneta@utexas.edu (subject: MKT 337).

  • Office Hours: Wednesdays 2 PM – 3 PM, or by appointment.

Conclusion

  • Next Class Topic: Purpose and Scope of Marketing.

  • Wishing students a successful start to Spring 2025!