1. Slide 1.1 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Introduction to marketing Lecture Week 1

2. Slide 1.2 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Chapter questions 1.Why is marketing important and what is the scope of marketing? 2.How do we understand markets and customers? 3.How is marketing practiced? 4.What are the European marketing realities, company and consumer challenges?

3. Slide 1.3 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Chapter questions (continued) 5.What is the philosophy of marketing? 6.How is marketing in a post modern world and retromarketing practiced? 7.What is an overview of marketing management?

4. Slide 1.4 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 What is marketing? Marketing is a customer focus that permeates organisational functions and processes and is geared towards marketing promises through value proposition, enabling the fulfillment of individual expectations created by such promises and fulfilling such expectations through support to customers’ value-generating processes thereby supporting value creation in the firm, customers and stakeholders.

5. Slide 1.5 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 What is marketing management? Marketing management is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value.

6. Slide 1.6 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Selling is only the tip of the iceberg ‘There will always be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available’. Peter Drucker

7. Slide 1.7 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Marketing is more than advertising or selling This video clip explores the over focus of many companies on sales and particularly advertising without really trying to understand the customer and really understanding the totality of marketing. www.youtube.com/watch?v=heSudg- tfIk&feature=related

8. Slide 1.8 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 What is marketed? Services Products Events Experiences People Places Ideas

9. Slide 1.9 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Demand states Nonexistent Latent Declining Irregular Full UnwholesomeOverfull Negative

10. Slide 1.10 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Marketing during a recession: The future is bright! ‘The business landscape has changed fundamentally; tomorrow’s environment will be different, but no less rich in possibilities for those who are prepared.’ (Davis, 2009) www.youtube.com/watch?v=GEJIhkDSjNo View an interesting video clip from Kraft Foods on how they stay customer focused during a recession and really understand the core marketing focus on the customer.

11. Slide 1.11 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 What is a network economy? A network economy is driven by a dynamic and knowledge-rich technology dominant environment meaning that the hierarchical stand-alone organisations of the twentieth century have changed into a variety of network forms.

12. Slide 1.12 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Network forms Internal networks Vertical networks Intermarket networks Opportunity networks

13. Slide 1.13 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 A simple marketing system Figure 1.2 A simple marketing system

14. Slide 1.14 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Key customer markets ConsumerBusiness GlobalNon-profit

15. Slide 1.15 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Purchasing power in Europe Figure 1.3 European purchasing power in 2007 Source: Michael Bauer Research (2007) European purchasing power in 2007: who’s on top? 31 August (retrieved from www.english.mb-research.de/content/view/). Reproduced with permission

16. Slide 1.16 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Getting a global mindset Think globally Think locally Think globally and locally simultaneously

17. Slide 1.17 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Market terms MarketplaceMarketspace MetamarketMetamediaries

18. Slide 1.18 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 A metamediary website Source: European Auto Trader BV www.autotrader.nl

19. Slide 1.19 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 The 7Ps of the marketing mix Figure 1.4 The 7Ps components of the marketing mix

20. Slide 1.20 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Classifications of marketing practice Table 1.3 Classifications of marketing practice by relational exchange dimensions

21. Slide 1.21 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Transaction marketing differs from relationship marketing Time perspective Primary communication Customer feedback mechanism Market size Criterion for success

22. Slide 1.22 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 The marketing environment Task environment Company Suppliers Distributors Dealers Target customers Broad environment Demographic Economic Physical Technological Political-legal Social-cultural

23. Slide 1.23 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 The marketplace isn’t what it used to be… Heightened competition Globalization Technologies Industry convergence Retail transformation Disintermediation

24. Slide 1.24 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Consumers are changing … Consumer sophistication Tech savvy Self-expression Buying power Voice and influence Co-creation Self-service

25. Slide 1.25 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Philosophies of business Production philosophy Selling philosophy Marketing philosophy

26. Slide 1.26 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Conditions of postmodern marketing Hyperreality Fragmentation Reversals of production and consumption Decentring of the subject Paradoxical juxtapositions Loss of commitment

27. Slide 1.27 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Characteristics of retromarketing T ricksterism E xclusivity A mplify S ecrecy E ntertain

28. Slide 1.28 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Overview of marketing management Creating value Introducing marketing Capturing marketing insights Connecting with customers Building strong brands Marketing mix Implementing marketing management Managing marketing metrics

29. Slide 1.29 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Recap: Can you explain? Why is marketing important and what is the scope of marketing? How do we understand markets and customers? How is marketing practiced? What are the European marketing realities, company and consumer challenges?

30. Slide 1.30 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Recap: Can you explain? (continued) What is the philosophy of marketing? How is marketing in a post modern world and retromarketing practiced? What is an overview of marketing management?