CHAPTER 1INTRODUCTION & CHANGE

OVERVIEW OF THE COURSE• No textbook in this course

• Not on Blackboard not WebCT

• Class notes available in packet

• Wall Street Journal available at 75% off business rate

• Buy 4 blue scantrons

MARKETING DEFINITIONS

• Marketing

• Markets

• Marketing Mix

MARKETING

Negotiated exchange between buyers and sellers that satisfies wants and needs for both parties

NEGOTIATED EXCHANGE

Original Seller

Intermediates

Final Buyer

MARKETS

Groups of buyers with the ability to buy and the willingness to buy

MARKETING MIX

• Product/Service

• Pricing

• Distribution

• Promotion

Controllable marketing decision areas

ENVIRONMENTAL CHANGES

Uncontrollable forces that influence strategy in terms of opportunity and threats

MAJOR ENVIRONMENTAL AREAS

•Demographic•Economic•Political•Cultural•Technology•Disaster

MAJOR DEMOGRAPHIC AREAS

• 2010 Census Changes

• Baby Boomers

• Generation X

• Generation Y

• Generation Z

MAJOR ECONOMIC AREAS

• Adam Smith– role of competition

• Joseph Schumpeter– creative destruction

CREATIVE DESTRUCTION(Schumpeter)

• Social Media

• Retail selling

• Health care appointments

HOSPITAL PRICING

City Hospital Hospital Cost Procedure #1 #2

Dallas Lower joint $162,000 $43,000 replacement

New Jersey Respiratory Ailment $100,000 $7,000

Alabama Pneumonia $150,000 $14,000

MAJOR POLITICAL AREAS

• City/County

• State

• Federal

• International

MAJOR CULTURAL AREAS

• Hispanic

• Vietnamese

• African American

• Gay

TECHNOLOGY AREAS

• Nanotechnology

• Cloud Computing

• Energy Technology

• Internet Technology

CLOUD SERVICES

• Salesforce.com

• Rackspace

• Dropbox

CLOUD COMPUTING REVENUE

2009 16 Billion

2015 (est) 73 Billion

INTERNET TECHNOLOGY

• Social Media

• Smart Phones

• Internet Services

MAJOR DISASTER AREAS

• Hurricanes

• Nuclear

• Floods

• Shipwrecks