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!