1. Introduction
Introduction to Marketing Prof. Ting Zhu

Today
 Definition of Marketing

 Course Content
 Objectives and Grading Criteria

What is Marketing?

Is it Better?

Checker shadow illusion

http://en.wikipedia.org/wiki/Checker_shadow_illusion

$80 Haircut
Beavis, I spent over $1000 on this suit, and I only wear it once a month $80 is a lot to spend on a haircut, Butt-head

A Coffee Cup or An Empty Cup

Cash or Pen
 Group 1 choose between
 $6  An elegant (CROSS) pen 64% 36% 52% 46%

 Group 2 choose among
 $6  An elegant (CROSS) pen  An ugly pen

2%

 Decoy products: the tendency to prefer X over Y can be increased by adding a third “decoy product” that is clearly inferior to X but not to Y

Mug Experiment
Mug Experiment (2000)

–Average purchasing price: $ 3.37 –Average selling price: $10.87

Endowment effect: people often demand much more to give up an object than they would be willing to pay to acquire it

Be careful…
 “Free return any time”  “Free test drive”  “100% money back”

Diffusion of Wal-Mart
 http://www.youtube.com/watch?v=EGzHBtoVvpc

Summary of the marketing “tricks”
 Senses and perception (e.g. checker shadow illusion)  Price (e.g. $80 haircut)  Product (e.g. cup, cash or pen)  Promotion (e.g., mug trade, free trial)  Place (e.g., Diffusion of Wal-Mart)

The 4 P’s of marketing: Price, Product, Promotion, Place

What is Marketing?
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.

(American Marketing Association, 2005)

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Instructor Information


Professor Ting Zhu
  

E-mail: ting.zhu@sauder.ubc.ca Office: HA 567; 827-0078 Office hours: Thursday 2 - 4 pm

2

Course Objectives


Theory: Knowledge of marketing concepts & terminology, consumer psychology Implementation: Train you in analyzing complex business situations Communication of ideas: p p p p Improve presentation and writing skills Teamwork: Learn to work with others

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Outline of the Course


Lectures  Part I: Overview
● ● ● 

Marketing Strategy Market Research Segmentation, Targeting, and Positioning

Part II: Marketing mix strategies (the four P’s)
●

Price, Product, Promotion, Place



Part III: Special topics
● ● ●

●


Consumer Psychology Global Marketing Viral Marketing Customer Relationship Management

Marketing Project Presentations

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Readings


Lecture Slides & Your Notes
(slides available on blackboard)



Textbook
Marketing, 8th Canadian edition, Kerin, Hartley, Berkowitz, and Rudelius, McGraw-Hill.

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Course Website

9

Summary of Grading Criteria
 Theory – knowledge of marketing concepts & consumer psychology
Midterm exam (multiple choice & open) Final exam (multiple choice & open) 20% 30%



Application of concepts and principles
Marketing project
Report Presentation Peer Evaluation Team Team Individual 15% 15% 10%

40%

 

Class participation Grade based on distribution

10%

100%



Bonus (Extra Credit)
Participation in Experiments Tepper Behavioral Lab 1 hour = 1 point Up to 3 hours 3%

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Preparation for Exams
 Exams constitute 50% of final grade  Contain multiple choice and essay questions  Exams will cover issues discussed in class (lectures, textbook, and videos)      Attend classes Print out slides (black and white) Make complete and clear lecture notes Read the textbook Make notes of the video cases

 Help sessions for midterm and final  Sample exam questions
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Marketing Project
• •
Teams of 6 Three parts:

o