Issue link: http://www.e-digitaleditions.com/i/59966
THE "FOUR P'S" OF MARKETING—PLACE, PRODUCT, PRICE, AND PROMOTION— WILL SOON BE ECLIPSED BY EIGHT NEW FUNDAMENTAL PRINCIPLES. they suggest that businesses must stop thinking in terms of "things" and recognize that every transaction is a service transaction. The authors argue that the "four P's" of marketing—place, product, price, and promotion—will soon be eclipsed by eight new fundamental principles. Among these principles are four key ideas: goods are actually distribution mechanisms for service; applied knowledge is the fundamen- tal unit of exchange; the customer is always a co-producer; and a com- pany can't set the value of a service, only make a value proposition. This new way of thinking means that knowledge becomes a business's chief asset. It also promotes the idea that a sale doesn't end a transaction, it begins one. Lusch and Vargo aren't the only business professors attempting to re- define the principles of marketing. The AMA itself recently revised its official definition to read: "Market- ing is an organizational function and a set of processes for creating, com- municating, and delivering value to customers and for managing cus- tomer relationships in ways that ben- efit the organization and its stakeholders." Exploring that shift in the focus of mar- keting—from a tacti- cal issue to a strategic driver—is a new book calledMarket- ing: Real People, Real Choices. It was written by GregW. Marshall, a professor of marketing at Rollins College. The book explores marketing through the experiences of executives at firms such asNIKE,Monster.com, Univer- sal Theme Parks, and IBM. Kenan Institute Helps China Prepare For 2008 Olympics Handling logistics will be a key task at the 2008 Olympics in Beijing—and right there to assist Chinese officials will be representatives from the Kenan Institute of Private Enterprise, part of the Kenan-Flagler Business School at the University of North Carolina in to establish a joint research programin logistics with TsinghuaUniversity. The proposed programwill focus on logis- tics and global supply-chainmanage- ment research that enhances trade be- tween theUnited States and China, supports economic development, and addresses issues such as offshore out- sourcing. The partners are planning a fall 2005 conference to respond to is- sues that arise out of the February 2005Olympics symposium. The Benefits of Minority Professors Chapel Hill.With an estimated 200,000 athletes, journalists, and officials from more than 200 coun- tries on hand—as well as 75,000 tons of equipment requiring 2,000 trans- port vehicles—officials project that logistics services could cost $5 billion. Recently, the Kenan Institute teamed with Tsinghua University, a leading technology university in China, to co-host a sympo- sium to help officials and vendors prepare for the surge of people, products, and ma- terials that will move through the city during the Olympics. One session covered advanced digital technologies such as radio frequency ID tags; an- other focused on China's plans for a $12 billion airport city that will help support the Olympics and position Beijing for 21st-century global commerce. In addition to sponsoring the sym- posium, the Kenan Institute is working Minority professors have a great beneficial effect on the career decisions of minority and nonminority students, according to a new survey of under- graduates, graduates, and business school deans in the U.S. Eighty-five percent of minority student respon- dents and 77 percent of b-school deans said minority professors had a positive impact on the students' career decisions. The survey also showed that 77 percent of all respon- dents believe students will be better prepared to work in a business envi- ronment as a result of having taken classes with minority professors. The survey was conducted by the BernardHodes Group on behalf of The PhD Project, a multimillion dol- lar effort to increase minority repre- sentation among business professors. Since The PhD Project was founded in 1994, the number of minority professors at U.S. business schools has more than doubled, from 294 to 746. Further, 417 minority stu- dents are currently enrolled in doc- toral programs, and most will take a place at the front of the classroom in the next five years. For a copy of the full survey report, visit: www.phd project.com. BizEd MAY/JUNE 2005 9