MM555

Module 1 Introduction to Marketing Management

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Source: http://www.forbes.com/sites/sap/2012/12/03/6-stepsto-executing-a-content-strategy/

Session Outline
Welcome & Introduction Housekeeping & Safety Great Expectations MM555 An Overview
Unit Learning Outcomes Unit Structure & Text The Marketing Management Framework Our Approach Assessment in Brief Whats New in 2013 Resources and Suggestions for Success

So Lets Begin
Module 1: An introduction to Marketing Management

Next Steps

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Our Team
Margot Wood
Unit Co-ordinator F2F margot.wood@curtin.edu.au

Alison Barker
Industry Teaching Associate F2F alison.barker@cbs.curtin.edu.au

Kristina Georgiou
Industry Teaching Associate F2F kristina.georgiou@cbs.curtin.edu.au

Jennifer Davies
Industry Teaching Associate Online jennifer.davies@gsb.curtin.edu.au
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Housekeeping
Health & Safety
Curtin University requires that incidents of all types be reported and managed to ensure that lessons can be learned and appropriate controls can be implemented. Talk to your Lecturer or the SSO if you have an incident to report. Emergency Evacuation of the CGSB: The sounding of the EWIS evacuation alarm will constitute the evacuation signal in buildings. The alternate evacuation signal will be a fire alarm bell or a verbal directive. The Evacuation Assembly Area is out the front of the building and to the left (corner Irwin Street) in front of 48 Murray St (Ainsley House). When you get to the assembly point, a further check will be carried out by the relevant staff member to ensure that everyone has assembled. If you identify that someone is missing, immediately advise the nearest staff member or the Building Warden, who will be located at the ground floor fire panel (or directly outside, in front of the CGSB). At the assembly point students will be provided with further direction.

Other Bits
Please adhere to start and finish times and return promptly from breaks. Punctuality is regarded as a form of respect for yourself and others. Theres a nice piece here on this. Washroom facilities are available in the east end of the CGSB building on Level 2. Student Representatives will be agreed in Week 2. This role is a focal point for class communication and is eligible for 2 hours of professional portfolio points.
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Refer to BB for further details.

Student Class Representative

Purpose: To serve as a point of contact between the UC and/or lecturer and the class Role: The role culminates with attendance at the Student Feedback Session at the end of the trimester, so please only nominate if you can attend this important wrap up.
Wednesday 24th April, 5.30pm-7.00pm, CGSB Boardroom

Responsibilities:
Act as a liaison between the class and the UC and/or Lecture e.g. in MM555 we have two informal feedback sessions (Stop, Start, Continue) during the trimester and the Class rep has a key role here. From time to time you may be asked to represent an individual or a group of students to confidentially raise an issue or a concern with the Lecturer and / or UC. To encourage feedback from the class via eVALUate
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Receive Professional Portfolio Points (2 hours)

GREAT EXPECTATIONS

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CGSB Student Snapshot

67.5% Male/ 32.5% Female Average age: 34yrs Average years of managerial experience: 11 Australian passport holders: 70% Nationality breakdown of the rest of the cohort: 39% Europe 32% Asia/Pacific 15% Africa/Middle East 14% North/South America 90% Part-time 57% plan to study at least one online unit Most common sectors: Mining and engineering Manufacturing Public sector Consulting Employer financial assistance: 48% full assistance 17% some assistance 35% no assistance Average salary on commencement: AUD$ 101,000. Students have high expectations and value adult learning principles Predominantly work full time and study part time

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First Impressions.
Have a quick look through your materials. Review the Unit Outline.

What are you now expecting in the weeks to come? What do you think the MM555 team is expecting of you?! What interests you about the outline? What concerns you?

What do you notice ? What are the first thoughts that come to mind? What were you expecting to find? Where did that expectation come from? How do the resources differ from other classes? How are they the same? What might this suggest?

MM555

What ideas are you beginning to develop about this unit? About the Lecturer?
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Make some notes ...

Beware the Gap!

Expectations
Degree of Satisfaction

GAP =

Perceptions
More on this later in the session and In Module 7: Services Marketing Does customer satisfaction matter? Think of the last time you felt highly satisfied or dissatisfied. What caused this? How did you respond when you felt this way?

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Unit Structure, MM Framework, Assessment

MM555 AN OVERVIEW

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Unit Learning Outcomes

1. Understand and apply key marketing concepts, theories and techniques for analysing a variety of marketing situations. 2. Critically evaluate and reflect upon specific marketing decisions and marketing strategies. 3. Review international trends with regard to the theory and practice of marketing management principles 4. Interpret and apply relevant theoretical and conceptual frameworks and develop a solution with regard to an applied project
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MM555: Unit Structure

Module
Module 1 Module 2 Module 3 Module 4 Module 5 Module 6 Module 7 Module 8 Module 9 Module 10 Module 11 Module 12 Module 13

Topics
An introduction to Marketing Management Environmental Analysis Objectives, Segmentation, Targeting & Positioning Consumer Behaviour Business to Business Marketing Products, Brands & New Products Services Marketing Marketing Channels (Place) Pricing Integrated Marketing Communication (1) (Promotion) Integrated Marketing Communication (2) (Promotion) Implementation, Monitoring & Performance Unit Evaluation - Please complete eVALUate

If people knew how hard I worked to get my mastery, it wouldn't seem so wonderful at all. Michelangelo

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Your Text & the Publisher's Website

Go to http://login.cengagebrain.com Register as a new user or log in as existing user. Follow the prompts.

Here you will find an additional resources to draw on throughout the trimester.

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Marketing Management Framework

Customer
Consider factors such as decision making, values, needs & wants

Company
Or organisation. What is our Strategic Purpose? Capabilities? Weaknesses?

Context
Whats going on in the macro environment?

Competitors Collaborators
Who do we work with? Who are our partners? Who are our current and potential competitors? Where are they placed in the market?

Marketing Objectives Segmentation

Based on geographic, demographic, psychographic and/or behavioural factors

Targeting
Consider strategic fit; potential and defensibility against competition

Differentiation
Differentiating the market offering to create superior customer value

Positioning Analysis & Strategy

Create Value
Marketing is about creating customer value and profitable customer relationships
Product / Service People Processes Physical Evidence

Your place in the market space Core benefit proposition Unique selling proposition Positioning Statement

Planning & Implementation

Capture Value

Communicate Value
Integrated Marketing Communications (including Promotion)

Deliver Value

Price

Placement Logistics

The MM555 Marketing Management Framework draws on a number of sources including Iacobucci (2013), Curtin University is a trademark of Curtin University of Technology CRICOS Codeand 00301J Armstrong et Provider al (2012) Gibbs (2009) and includes the key factors which need to be taken into account when developing a comprehensive marketing strategy.

Implementation, Monitoring & Measuring Outcomes

Our Approach Key Elements

Guest Speakers Case Based

Small Group & Forum Discussion Digital Media

(e.g. clips; Ted talks; YouTube; Marketing Links etc.)

Starter Pack

Extensive Resources
(Text, Journals, Presentations, Articles)

Engaging & Interactive

High end Facilitation

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We cant do it for you or without you

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eVALUate

Latest Research

Stakeholder Feedback

Update Learning Outcomes clarified Resources available earlier Significantly reduced workload Updated Cases & Examples Enhanced interactivity .and we kept the best bits knowledgeable and experienced team, slimline text, Guest Speakers, good feedback, links to industry, personal approach

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Blackboard Tips
1. Log into Blackboard via OASIS. 2. Explore the site for a few minutes. Go through all of the items in the menu bar and get to know where everything is. 3. Read the Announcements to see if there is any new important information. 4. Have a look in the Contacts section to learn more about your Unit Coordinator and Lecturer. 5. Print out a copy of the Unit Outline. Pay particular attention to the following: 1. Assessment section which details all the assessment components and due dates. 2. Unit Planner section which outlines a recommended timetable. 6. Start working through the Unit Resources week by week / day by day, again depending on mode of study or as directed by your Lecturer. 7. Go to The Learning Hub. Explore the resources available. This also tells you how to create your Student Home Journal Page. 8. Now create your Student Home Journal Page. This will help all of us to learn a little more about each other.

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Suggestions for Success

Take responsibility for your own learning Read broadly and gather examples Speak from your own experience not for others Listen actively and with respect avoid side conversations Participate and stretch your boundaries. Stay on topic and allow room for others. Respectfully challenge, focus on ideas not people. Be present. Face to face - practice timely attendance and mobiles off; online participate fully, dont leave it until the last minute Collaborate constructively and be conscious of team dynamics
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Assessments The Tangible Bits

Assessment Type of Assessment Weight Due Date
F2F Assessment 1: One Case Paper Due 5:00pm, Wednesday of the week of the relevant case discussion. Submit via Turnitin. FO Assessment 1: Discussion Opens Monday Feb 4, 6:00am; Closes Mon Feb 18, 8:00pm Perth, WA Time (UTC/GMT +8 Hrs) . Assessment 2 Individual Case Analysis due Monday March 18, 11: 59pm via Turnitin. Week 9 Assessment 3: Applied Project Group 35% Optional Draft 1 Due (Situation Analysis) Monday Feb 25, 11: 59pm (via Turnitin) Week 6 Final complete project due Monday April 15, 11:59 pm via Turnitin. Week 13

Assessment 1: Written Analysis & Discussion Assessment 2: Case Study Assessment 3: Applied Project Individual 30%

Individual

35%

We will discuss each of these further. Also ensure you check the Unit Outline and the Assessment section in BB.
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SO LETS BEGIN

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Module 1: Learning Objectives

1. 2. 3. 4. 5. 6. Define marketing and outline the Marketing Management Framework applied in MM555. Explain the importance of understanding and managing customer expectations and delivering value Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return. List some of the main trends and forces that are changing the marketing landscape in this age of relationships. Gain a holistic view of marketing management function, including the elements of a marketing plan, and discuss the importance of measuring and managing return on marketing investment.

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What is Marketing to you?

Write down every word you can think of. If it keeps coming up write it again! And again! Paste the text into www.wordle.com. The result is what marketing means to you. Share it with us.

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Textbook Resource: Kotler, Keller, Burton: Marketing Management 2009 Pearson Education Australia

What is Marketing.?
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)

Marketing consists of activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion, and pricing of products (goods, services, and ideas). The Marketing Association of Australia Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.
(Kotler & Armstrong, 2012, Principles of Marketing 14e, Pearson, England)

The process of creating, pricing, distributing, and promoting, goods, services, and ideas to facilitate satisfying exchange relationships with customers and develop and maintain favorable relationships with stakeholders in a dynamic environment.
(Pride and Ferrell, 2012 Marketing, South-Western, Cengage Learning , USA)

Marketing is an exchange between a firm and its customers.

Iacobucci 2013 MM3 South-Western, Cengage Learning , USA

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The Shift in Orientation over the last 100 Years

Production
What can we make?
The you can have any car as long as its black concept Marketing

What do customers want and need?

What do customers want and need, and how can we benefit society?

Societal Marketing

Societal Marketing Orientation

Product Sales

What can we make or do best?

How can we sell more aggressively?

This is the idea that an organization exists not only to satisfy customer wants but also to preserve or enhance individuals and societys long-term best interests. Less toxic products More durable products Products with reusable or recyclable materials

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What drives these shifts?

The Changing Marketing Landscape: Uncertain and volatile economic environment Rapid globalization Sustainable marketing call for more social responsibility Growth of not-for-profit marketing New consumer frugality The digital age and advances in mobile technology Others? Try searching Marketing Trends for 2013! Some very interesting shifts. Whats your prediction?
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From a Creatives perspective: Creative Forecast: How Marketing Will Change In 2013

Marketing Myopia

Marketing Myopia:
Mistake of focusing on specific products a company offers rather than the benefits and experiences produced by the products They focus on the wants and lose sight of the needs
Levitt, T. 1960 Marketing Myopia, Harvard Business Review, July August
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So...is the Marketing System still current?

Sellers send goods, services and communications to the market. In return, they receive money and information (customer attitudes, sales data).

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In what ways do you think that current trends may have impacted on this simple marketing system? Does it still hold true?

Source: Figure 1.1 A Simple Marketing System from Kotler, P. and Keller, K. 2012 A Framework for Marketing Management 5e Pearson Education Australia

What else can you think of? Other examples?

What Can We Market?

Is there anything missing from this list?
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A CLOSER LOOK AT CUSTOMERS

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Marketing Management Framework

Customer
Consider factors such as decision making, values, needs & wants

Company
Or organisation. What is our Strategic Purpose? Capabilities? Weaknesses?

Context
Whats going on in the macro environment?

Competitors Collaborators
Who do we work with? Who are our partners? Who are our current and potential competitors? Where are they placed in the market?

Segmentation
Based on geographic, demographic, psychographic and/or behavioural factors

Targeting
Consider strategic fit; potential and defensibility against competition

Differentiation
Differentiating the market offering to create superior customer value

Positioning Analysis & Strategy

Create Value
Marketing is about creating customer value and profitable customer relationships
Product / Service People Processes Physical Evidence

Your place in the market space Core benefit proposition Unique selling proposition Positioning Statement

Planning & Implementation

Capture Value

Communicate Value
Integrated Marketing Communications (including Promotion)

Deliver Value

Price

Placement Logistics

The MM555 Marketing Management Framework draws on a number of sources including Iacobucci (2013), Curtin University is a trademark of Curtin University of Technology CRICOS Codeand 00301J Armstrong et Provider al (2012) Gibbs (2009) and includes the key factors which need to be taken into account when developing a comprehensive marketing strategy.

Implementation, Monitoring & Measuring Outcomes

Its all about Customer Value

Customer Value The relationship between benefits and the sacrifice necessary to obtain those benefits.
A Unique Selling Proposition is the value that you offer customers that nobody else does Marketers try to increase perceptions of value
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Customer Satisfaction
Customer Satisfaction
The customers evaluation of a good or service in terms of whether it has met their needs and expectations.

More on this In Module 7

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34

Building Relationships
Relationship Marketing A strategy that focuses on keeping and improving Relationships with current customers.

Customer Relationship Management (CRM) emphasises the importance of building long-term relationships with customers to keep them satisfied and coming back. Selling products that dont come back to people that do.
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Satisfaction Beware the Gap!

Expected Service
GAP

More on this In Module 7

Perceived Service
Does customer satisfaction matter? Think of the last time you felt highly satisfied or dissatisfied. What caused this? How did you respond when you felt this way?

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Customer Evaluations
Customer evaluations include:
Customer satisfaction Customer engagement Perceptions of quality Customers intentions to repurchase Customers likelihood of word-of-mouth, etc.

Marketers track these evaluations to inform planning and to measure outcomes

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Customer Evaluations
Disconfirmation Paradigm Evaluation Outcomes
If customers experiences:
Surpass their expectations delighted Meet their expectations satisfied Fall short of their expectations dissatisfied
Oliver, R.L. 1980. A cognitive Model of the Antecedents and Consequences of Satisfaction Decisions. Journal of Marketing Research, Nov. pp460-469.

Evaluation Processing
Low-involvement purchases
Evaluation is instantaneous Expectations are usually latent
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Higher-involvement purchases
Evaluation is deliberative & conscious

38

Customer Evaluations
Search goods
Evaluation is straightforward

Experience purchases
Evaluation completed after trial/consumption Expectations might not be fully formed; the experience shapes evaluation & expectations

Credence purchases
Dont have expertise to evaluate Evaluate what one can (price, looks, etc.)
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Sources of Expectations Types of Expectations

Self Consumers trust their own experience Experience can be direct or indirect Friends and experts Trust those with no commercial gain Marketing mix Ads, price, retail atmosphere, etc. Third party communications e.g., Consumer Reports, books, Internet, etc. Zone of tolerance exists between the adequate and predicted levels of quality Ideal levels of quality Predicted levels of quality Adequate levels of quality

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Characteristic and Measurement of Expectations

Expectations are dynamic
What pleased a customer last time may no longer suffice

Expectations vary cross-culturally

In individualist cultures, satisfaction is heavily influenced by quality of reliability and service provider responsiveness In collectivistic cultures, satisfaction is heavily influence by the relational aspects of front-line employees

Measuring Expectations
Measuring quality with precision is difficult Customer perceptions can be measured with surveys Customer churn rate Mystery shoppers Monitor competitive performance
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Customer Loyalty and Retention

Customer Lifetime Value (CLV):
The value of the entire stream of purchases that the customer would make over a lifetime of patronage ie the present value of the future cash flows Some customers are costly to acquire, others more costly to retain

Share of Customer:
The portion of the customers purchasing that a company gets in their product categories

Calculating CLV
Refer to your text. The following site also has detailed instructions and a downloadable excel spreadsheet. http://www.zeromillion.com/marketing/determining-lifetimevalue.html

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Re Customers The 80/20 rule often applies!

Delivering Value Managing the Marketing Mix: The 7ps

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Some texts talk about 4Ps do we really need to consider 7?

In each Module we encourage you to hunt out the latest news; explore the research and scan social media for whats new, whats important and what has piqued your interest on the topic of marketing

In the News; Out of Academia; Around the Grounds

DIGGING DEEPER

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Source: http://thisweekin.com

..What Caught Your Eye This Week?

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This Weeks Reading. ..Which Ideas Will You Hold Onto?

Achrol, Ravi A. and Philip Kotler. 2012. "Frontiers of the marketing paradigm in the third millennium" Journal of the Academy of Marketing Science 40 (1): 35-52. Ho Yin Wong, Kylie Radel, Roshnee Ramsaran-Fowdar. 2011. "Building a Marketing Plan." BusinessExpress Press: Chapter 5: Marketing Objectives and Strategy Formulation, HBP Product number: BEP119-PDF-ENG. Lusch, Robert F. 2007. "Marketing's evolving identity: defining our future." Journal of Public Policy and Marketing 26 (2): 261-268. Wilkie, William and Elizabeth Moore. 2012. "Expanding our understanding of marketing in society." Journal of the Academy of Marketing Science 40 (1): 53-73. Zineldin, Mosad and Sarah Philipson. 2012. "Kotler and Borden are not dead: myth of relationship marketing and truth of the 4Ps" The Journal of Consumer Marketing 24 (4): 229-241.

Your top 3 concepts from the readings? Share these in class or online
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Other Marketing Thought Leaders include Peter Drucker; Theodore Levitt and his seminal 1960 article Marketing Myopia and of course Kotler

Module 1: Learning Objectives Checking In..

1. 2. 3. 4. 5. 6. Define marketing and outline the Marketing Management Framework applied in MM555. Explain the importance of understanding and managing customer expectations and delivering value Identify the key elements of a customer-driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return. List some of the main trends and forces that are changing the marketing landscape in this age of relationships. Gain a holistic view of marketing management function, including the elements of a marketing plan, and discuss the importance of measuring and managing return on marketing investment.

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Next Steps
Hit the ground Running! Review the Material for Modules 1 and 2 Revisit the Suggestions for Success! Review the Unit Outline for Set Tasks Start Networking think about Project Teams. As part of this, complete your Student Home Journal Do the Reading and watch for Announcements Digging Deeper What will you offer us?

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