Principles of Marketing

1
Rotman
Joseph L. Rotman School of Management University
of Toronto
Principles of Marketing
The videos take up too much space and cannot be
put on the class website
Management 252 Professor D. W. Greeno Fall 2005
University of Toronto Rotman School of
Management
2
ORIENTATION Office hours and availability
Monday 2-300 p.m. in Rm. 409, 310-355 in
W021. Wed. and Friday afternoons, by
appointment. email greeno_at_rotman.utoronto.ca
416-978-0858 Emergencies
416-486-7738 Text and study guide Grade
distribution Mid-term and final
Term project Research
requirement Hints for getting through Course
content (schedule)
3
ORIENTATION Office hours and availability
Monday 2-300 p.m. in Rm. 409, 310-355 in
W021. Wed. and Friday afternoons, by
appointment. email greeno_at_rotman.utoronto.ca
416-978-0858 Emergencies
416-486-7738 Text and study guide Grade
distribution Mid-term and final
Term project Research
requirement Hints for getting through Course
content (schedule)
4
ORIENTATION Office hours and availability
Monday 2-300 p.m. in Rm. 409, 310-355 in
W021. Wed. and Friday afternoons, by
appointment. email greeno_at_rotman.utoronto.ca
416-978-0858 Emergencies
416-486-7738 Text and study guide Grade
distribution Mid-term and final
Term project Research
requirement Hints for getting through Course
content (schedule)
5
ORIENTATION Office hours and availability
Monday 2-300 p.m. in Rm. 409, 310-355 in
W021. Wed. and Friday afternoons, by
appointment. email greeno_at_rotman.utoronto.ca
416-978-0858 Emergencies
416-486-7738 Text and study guide Grade
distribution Mid-term and final
Term project Research
requirement Hints for getting through Course
content (schedule)
6
ORIENTATION Office hours and availability
Monday 2-300 p.m. in Rm. 409, 310-355 in
W021. Wed. and Friday afternoons, by
appointment. email greeno_at_rotman.utoronto.ca
416-978-0858 Emergencies 416-486-7738
Text and study guide Grade
distribution Mid-term and final
Term project Research
requirement Hints for getting through Course
content (schedule)
Grade Distribution Mid-term 35 Final
45 Project 18
Research Req. 2.
7
ORIENTATION Office hours and availability
Monday 2-300 p.m. in Rm. 409, 310-355 in
W021. Wed. and Friday afternoons, by
appointment. email greeno_at_rotman.utoronto.ca
416-978-0858 Emergencies 416-486-7738
Text and study guide Grade
distribution Mid-term and final
Term project Research
requirement Hints for getting through Course
content (schedule)
Grade Distribution Mid-term 35 Final
45 Project 18
Research Req. 2.
8
Term Project Purpose

• .....to give evidence that you have comprehended
  and can apply the concepts found in Sommers and
  lectures.
  Key terms applied and designer
• critical appraisal
• normative
  
  

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Evidence that you have comprehended and can
apply the fundamentals of marketing
given in the text and lectures. 1. Identification
of central strategic problems. 2. Recommendations
in terms of completeness and implementation 3. Log
ical flow of analysis 4. Use of factual data
available or collected (primary/secondary) 5. Use
of necessary and reasonable assumptions 6. Alterna
tive formulation and evaluation
(strategies) 7. Overall presentation
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(No Transcript)
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ORIENTATION Office hours and availability
Monday 2-300 p.m. in Rm. 409, 310-355 in
W021. Wed. and Friday afternoons, by
appointment. email greeno_at_rotman.utoronto.ca
416-978-0858 Emergencies 416-486-7738
Text and study guide Grade
distribution Mid-term and final
Term project Research
requirement Hints for getting through Course
content (schedule)
Grade Distribution Mid-term 35 Final
45 Project 18
Research Req. 2.
12
Grade Distribution 1 Study
2
Studies Mid-term 35
Mid-term 35 Final
45 Final
45 Project 18
Project 16.5 Research
Req. 2.
Research Req. 3.5
13
ORIENTATION Office hours and availability
Monday 2-300 p.m. in Rm. 409, 310-355 in
W021. Wed. and Friday afternoons, by
appointment. email greeno_at_rotman.utoronto.ca
416-978-0858 Emergencies
416-486-7738 Text and study guide Grade
distribution Mid-term and final
Term project Research
requirement Hints for getting through Course
content (schedule)
14
Clues for getting through 1. Keep up with the
readings (all term) 2. Use the class
notes/outlines 3. Refer to past exams 4. Get
involved 5. Use my availability
these are self evident and usually result in
an average of about 73. (B)
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ORIENTATION Office hours and availability
Monday 2-300 p.m. in Rm. 409, 310-355 in
W021. Wed. and Friday afternoons, by
appointment. email greeno_at_rotman.utoronto.ca
416-978-0858 Emergencies
416-486-7738 Text and study guide Grade
distribution Mid-term and final
Term project Research
requirement Hints for getting through Course
content (schedule)
16
Traditional Approaches. Decision Models Session
2 September 19th. Read Sommers, Chapters 1 and
2 Chapter 1 Pay particular attention to the
three Stages of marketing leading to The
Marketing Concept (pp. 15-25). Table 1-1 is
insightful. Chapter 2 The section on Strategic
Marketing Planning will be useful for your
term paper and the final exam. Pay particular
attention to the section on the Marketing Mix.
It is extremely important. Know it !
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Societal
COMPETITOR

PRODUCTION ORIENTATION
SALES ORIENTATION
MARKETING ORIENTATION
Interest/Service
Late 1800s
Early 1930s
Mid-1950s 1980
2000s
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Alan Rypinski is this gentleman --
On the mid-term exam you will be asked to relate
marketing philosophies with present day
companies.

• AMERITYRE CORP.
• Revenue (ttm) 1.34 M
• Reached 12.95 now
• hovers around 7.00
• (May, 16/05), P/E N/A

Production, Sales or Marketing Oriented?
Business Unusual, 2001
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Update 2004/05
Amerityre solved the problems involved in
manufacturing automobile tires from
polyurethane early in 04. They claim no-flats,
longer wear and an increase in gas mileage of
some 10. Their P/E is still N/A. It has hit a
high of about 13.00 and now hovers around
6.50-700. (1) the tread will not separate
from the tire (2) the tires run significantly
cooler than rubber tires (3) the tires have
better abrasion resistance than rubber tires
and (4) the tires have a lower rolling resistance
than rubber tires.
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Segmentation and Positioning Session 3
September 26th. Read Sommers, Chapter 4
Chapter 4 is extremely important. Dont let its
simplicity fool you. Know why and how we
segment markets. Figure 4-1 is a good summary.
Be sure you understand the alternative
target-market strategies (see figure 4-3)
. You might read this chapter considering the
question, Is market segmentation always the
most profitable strategy ?
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Buyer Behaviour and Segmentation Session 4
October 3rd. Read Sommers chapters 3 and
5. Sommers discusses interpersonal influences
(culture, family,and reference groups) followed
by personal influences. My lectures reverse
the order leading to psychographics or life
style. You should know Figure 3-1 thoroughly and
have visited the SRI website (http//future.sri.c
om/vals/valsindex.html).You should ask the
question --- given this concept, how can I use it
to improve my marketing plan? View chapter 5
as a treatment of segmentation (consumer vs.
industrial or business) and the buying behavior
of that segment.
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External
Internal

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Dining and Culture relate the
concept of culture to the marketing mix.

• Culture may have
• an influence on
• product policy
• promotion
• pricing
• channels of
• distribution

Venture, 1998
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Even Presidential Behavior must be modified--
President Bush must have taken a cultural
sensitivity class before his negotiations with
Prince Abdulla of Saudi Arabia.. The talks
were arranged in an effort to lower gas prices.
May/05
..oh what we will do for our country (a vote?)!
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Marketing Research Session 6 October 24th. Read
Sommers, Chapter 6 We will discuss the
evaluation and use of primay and secondary data.
You should understand and be able to apply the
marketing research process (see Fig. 6-1)




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Define the objective
Conduct situation analysis
Conduct informal investigation
Further study needed?
End project and report results
No
Yes
Plan and conduct formal investigation
Analyze data and report results
Conduct follow-up
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. MID-TERM EXAM Session 7. October 31st.
Time Class Time 4-600 p.m.
Place Medical Sciences, MS3163. Answers
to the multiple choice section of the exam will
be distributed upon completion of the exam. The
objective section makes up approximately 14
percent of the entire course grade. This
information should be sufficient for a stay or
a drop decision. Remember Drop Date-
November 6th.
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Pricing Session 8 November 7th. Read Sommers,
Chapter 15 With your microeconomics and
managerial accounting this chapter may offend you
with its simplicity, on the other hand you
might find the approach refreshing. Be sure to
review Break-even analysis. I will cover both
cost and demand oriented pricing practices.
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New Product Planning/Diffusion of
Innovation Session 9 November 14th. Read
Chapters 7-9. Useful Chapters. Be particularly
familiar with the consumer adoption process.
Chapters 7 is the most important of the three.
The diffusion model is important for both your
term paper and the final exam (pp. 210-215). The
so-called fashion adoption process
probably belongs with these readings (pp.
403-406)
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Adoption Process and Extended Decision Making
There is nothing really new about the AIETA
process, it is another form of decision making.

• The McGraw-Hill Companies, Inc., 1998

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Communication and Advertising Session
10 November 21st. Read Sommers Chapters 10 and
11 Know the marketing communication model
(Figure 10-1). I will focus on message
structure and issues relating to advertising
effectiveness (sales and communications
effects).
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This model can be used in Advertising Personal
sales Diffusion of innovation
A number of concepts can be used to help
integrate course material.
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A partnership between Sir Richard Bransons
Virgin Group and the Bell Mobility division of
Bell Canada, Virgin Mobile brings together one
of the worlds most respected brands
with Canadas national leader in communications.
We knew that the advertising had to break
through, and also be fun and irreverent to
ensure Canadians take notice.
Nokia
Audiovox
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Yoda, Darth Vader, Chewbacca, R2-D2, C-3PO..any
others?
George Lucas launched a pop-culture phenomenon
some three decades ago. ---a space epic one
that revolutionalized movie making and
merchandising. CTV refers to the marketing
surrounding Star Wars Episode lll Revenge of
the Sith as Marketing Mania. Perhaps, but it is
interesting to note the tie-in agreements between
M and M, Pepsi, Kellogg's and Cingular Mobileto
bad it was not Bransons Virgin. Using Yoda,
Darth Vader, and Chewbacca as credible sources
sure beats using M. Jackson or Bryant. While
Star Wars characters have been featured in
other advertisers TV spots to a limited extent
in the past, this is the first time they have
appeared in our world, not their own fictional
galaxy,(Lucas Licensing president Howard
Roffman).   
CTV May, 12/05
Shelf space, promotion and publicity.
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Communication and Sales Management Session
11 November 28th. Read Sommers, Chapter 12 The
sales management process and possible
determinants of successful sales relationships
will be discussed.

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Communication Process


Frames of reference
.



Seller
Buyer
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The Buyers Side of Sales Management.
This video has elements of Sales Management,
Pricing, Family Decision Making and more.

• Key notions
• haggling
• dealer invoice
• the Hall-Dobbs
• scam.

• Suggestions
• Use the dealer invoice
• Haggle
• Take a partner along
• Leave at least once
• Arrange your own financing

May and Sept/03
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Channels of Distribution the Final and
Wrap-up Session 12 December 5th. Read Sommers,
Chapter 13 and 14. I will deal mainly with
retailing. In addition topics relating to
channels for the final exam will be covered.
Basic institutional structure and the intensity
of distribution are the more important sections
for the exam (Ch. 14 pp. 432-436). Most
important, we will go over a strategy for
answering question 1 of the final exam.


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Thanks for coming and we'll see you next Monday..
The End