Marketing I
BUS2010F
Dr James Lappeman
Lecture 1
12 February 2024
Marketing
Text: Lappeman et al., (2021) Ch1, p1-4
Email: [email protected]
2024
2%
1950s
2002
2004
2006
https://www.youtube.com/watch?v=iYhCn0jf46U
What deodorant brand do you
consider the OPPOSITE of Dove
How do you traditionally tell if a
company is doing well?
Where does the money
come from?
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. (AMA, 2024)
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.
(AMA, 2024)
And it can get complicated…
Most of you were born around 2005-2006?
(from a variety of backgrounds)
We are going to look at a LOT of case studies to help make
sense of marketing… some you will know others not. Some
you can relate to, others not. Some will be famous, but from
overseas, others will be from here in SA…
WE NEED THEM ALL
?
R199 / month
The back story
The back story…
1985
• Founded
2004
• 60 000 employees
• 9000 stores
• $ 8 billion value (NYSE)
2010
• Filed for bankruptcy
?
2002
• founded
The back story…
2010
• 1 billionth rental
2012
• 42 000 kiosks
• 3 billionth rental (2013)
1998
The back story… • Founded
• Subscription model – benefits?
2000
• Offered to Blockbuster -> $50 million
Worth $20 billion
Problems with • Huge profits from late fees ($200
Blockbuster? million per year) – can you build a
business like this?
– Yes and no
– Netflix avoided by subscription
• Highly leveraged in physical stores
– fine in 1985, hard in 2010
– Physical / employment costs.
• Missed opportunity (1 decision) –
buy Netflix
• Saw main competition as
other physical rental stores
(not Netflix / Redbox????)
• Tried to change but met
challenges from within…
– Change late fee policy would
cost $200m per year!!
– If go streaming… what
happen to 60 000
employees in 9000 stores?
• Too late to adapt (tried)
– Streaming
– Kiosks
• Partner went down
– Enron – streaming deal bust
• People had changed…
– Physical home video ê
– Streaming é
Dumb decision?
What do you learn from the label:
“DUMB DECISION”?
• The business was good…People HAD started to change…
not easy to keep up...
• Too early to judge – they were willing to lose (75% of
market value) to transition through the disruption of
digital
• 2023… 260 million subscribers!!!
BUS2010F
Download for free:
https://openbooks.uct.ac.za/uct/catalog/book/29
Edited by Lappeman, J., Egan, P., Rightford, G. & Ramogase, T. 2021. Cape Town: UCT Liberty Institute of
Strategic Marketing & UCT Libraries. https://doi.org/10.15641/0 7992 2548 8
Course weighting
Assessment item Weighting Due date
Part 1: 20 March
Group Assignment 25%
Part 2: 8 April
Test 25% Monday 22nd April
Final Exam (2 hours; closed book) 50% In exams
Total 100%
Course
outline
FOR
WEDNESDAY…
Read
“Marketing
Myopia”
(Harvard Business Review Article)
Location:
Amathuba – Week 1
Thank you
@JamesLappeman
James Lappeman
Email: [email protected]
BUS2010F
