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Preface Asset | FIRST International provides guidelines as an extra service for International Business Administration and International Business students. A guideline is not meant to be a substitute for the book, but merely to be an addition and help to study the material presented in the book and the course. Asset | FIRST International is not responsible for any errors or other factors considering this guideline that might influence grades etc. Hopefully this guideline will be of good support for studying the course material and good luck with your studies. The FIRST year, IB & BS Committee Study Association Asset | FIRST International Tilburg University – Room E114 P.S. If you have remarks or recommendations concerning this guideline, please feel free to send them to [email protected]. In addition, the same applies if you have a good summary. In case your guideline is usable for future publishing, Asset | FIRST International rewards you with a maximum of €50,- depending on the quality of your guideline.

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Study Association Asset | FIRST International Study association Asset | FIRST (For Internationally Related Studies Tilburg) International is related to the Faculty of Economics and Business Administration at Tilburg University. Asset | FIRST International dates back to 1981, as it originates from the study associations Pro-M and VITE International, which merged in 2008. Asset | FIRST International serves the students of International Business Administration and International Business. These Bachelor and Master programmes in the field of business all stress the international business environment and educate broadly trained professionals in business skills and knowledge. Asset | FIRST International serves its 2100 members by offering a broad variety of activities and services. This includes educational, career oriented and social activities by which Asset | FIRST International offers its members opportunities for personal development. Having English as formal language, Asset | FIRST International is serving both Dutch and international business students who are internationally orientated. What Asset | FIRST International does First of all, we provide guidelines for many courses for the IBA and IB bachelor programmes. Secondly, we publish the FIRST Quarterly, a magazine full of articles, interviews and columns related to the international study programme. We also publish the FIRST Response, an informative and informal magazine, which is especially aimed at bachelor students. Furthermore, Asset | FIRST International organises other activities to provide students with some insight in how theory works in practice like guest lectures and excursions. In addition, there will be a symposium in March. Topics from previous editions are: “Long-term Challenges in a Short-term World” and “Microcredits, will they survive?”. Asset | FIRST International also organises various study trips each year, such as the Language Study Tour, the European Travel and the Intercontinental Study Tour. Some previous destinations were: Vienna & Budapest, Prague, China, Argentina, Chile, India, Kuala Lumpur, New York and Japan. In October the European travel to Dublin took place and in April there will be the Intercontinental travel to Brazil. During the year, we also organise Business Cafés in cooperation with multinational companies, to get a taste of the future work environment. Next to that, we want to provide a link between companies and students by organising a Business Tour, a two-day activity in which we visit four companies to orientate on the labour market, and a Consultancy Day, in which students can get acquainted with the consultancy sector. Furthermore Asset | FIRST International participates in the organisation of the EBT (Economic Business weeks Tilburg) and the Orientation Day, together with the other Asset associations. Asset | FIRST International also organises social activities for its members. Asset | FIRST International organises a drink every month in Café Babbus and co-organises the International Party and the Asset Beer Cantus. For the active members we organise Cycling Dinners and Active Member Days. Active membership About 70 students are currently active in 16 committees. Joining one of these committees will give the necessary hands-on experience that will give a head start for the rest of your career. But most important, it is a lot of fun!

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Becoming Active Asset | FIRST International offers you a unique opportunity to look beyond your studies and have lots of fun! As a member you are able to participate in all activities at reduced prices. If you think becoming active is something for you, please come to our room E114 or send an email to the email address below. In addition, you can look on our website to explore which committees could have your interest. [e] [email protected] [w] www.asset-firstinternational.nl Upcoming Activities May 4 May 7 May

International Dinner Brussels Excursion – 1st year IBA/Economics

June 14 June 22 June

Closing BBQ Announcement Drink

July

Monthly Drink

August Mak/Tik/Welcome week 31 August General Members Meeting + Monthly Drink September 7 September 14 September 24-26 September 29-30 September October 2 October 11 Oct – 12 Nov 14 October 16-22 October

Freshmen Activity New members Activity Active Members Weekend Asset Conference

International Weekend Activity Asset Inhouse Days Symposium China European Travel to Moskow Recruitment Activity

Contact Information Study Association Asset | FIRST International Tilburg University - Room E 114 P.O.Box 90153 5000 LE Tilburg [w] www.asset-firstinternational.nl [e] [email protected] [t] +31 (0)13 466 3115

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Table of Contents Marketing Management', (2008) written by Philip Kotler et al

Chapter 1 - Introduction & Chapter 2 - Understanding marketing management ................. 5 Chapter 3 - Developing marketing strategies and plans .................................................. 9 Chapter 5 - The changing marketing environment and information management ............. 12 Chapter 6 - Managing market research and forecasting ................................................ 16 Chapter 7 - Analysing consumer markets ................................................................... 18 Chapter 8 - Analysing business markets ..................................................................... 22 Chapter 9 - Dealing with competition ......................................................................... 25 Chapter 10 - Indentifying, analysing and creating target market strategies ..................... 27 Chapter 11 - creating customer value, satisfaction and loyalty ...................................... 32 Chapter 12 - Creating and managing brands and brand equity ...................................... 37 Chapter 13 - Devising a contemporary branding strategy ............................................. 41 Chapter 14 - Designing, developing and managing market offerings .............................. 44 Chapter 15 - Introducing new market offerings ........................................................... 51 Chapter 16 - Developing and managing pricing strategies ............................................. 57 Chapter 17 - Designing and managing supply networks ................................................ 60 Chapter 18 - Managing the service process and the consumer interface ......................... 63 Chapter 19 - Designing and managing marketing communications ................................. 66 Chapter 20 - Managing mass and personal communications .......................................... 69 Chapter 21 - Implementing marketing management .................................................... 73 Chapter 22 - Managing marketing metrics .................................................................. 77

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Chapter 1 - Introduction & Chapter 2 - Understanding marketing management Marketing = (NOT just advertising/art of selling) “Organised effort, activity and expenditure designed first to acquire a customer, second to maintain and grow a customer at profit” “Process of meeting needs profitably” - Balanced focus on customer AND company objectives

An organisational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders. W ? Marketing is a customer focus that permeates organisational functions and processes and is geared towards marketing promises through value proposition, enabling the fulfilment of individual expectation created by such promises and fulfilling such expectations through support to customers‟ valuestakeholde

y‟

ant a hamburger

1. 2. 3. 4. 5. 6. 7.

Full Overfull Irregular Declining Negative Nonexistent Latent

8. Unwholesome

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All that is brought to the market is sold Demand exceeds supply Variations in demand (seasonal, weekly) Demand decreases Consumers dislike product/service and might pay to avoid it Consumers are unaware/uninterested Strong need that cannot be satisfied by an existing product or service Consumers may be attracted to product or services that have undesirable social consequences)

What can be marketed? Services

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Products (often have service component) Events (Olympics) Experiences (Disney) People (artists, musicians) Places (cities, tourists, FDI) Ideas (smoke/alcohol to change behaviour, marketing also has a social function) Marketing is about creating utility Utility= the sum of benefits we receive from using products or services. Marketing is about exchange relationships Core role of marketing = managing external environment of networks, relationships and interactions. A simple marketing system: See lecture 1, sheet 21 The Network economy A network economy is driven by a dynamic and knowledge-rich, technology-dominant environment, hierarchical stand-alone organisations of the 20th century, changed into a variety of network forms. Network forms Internal: to reduce hierarchy and open firm to environment Vertical: to maximise productivity of serially dependent functions, by creating partnerships among independent skill-specialised firms. Intermarket: to leverage horizontal synergies across industries Opportunity: organised around customer needs and market opportunities and designed to search for best solutions to them. Marketing network = company and its supporting stakeholder Key customers markets = consumer/business/global/non-profit (voluntarily/government Global mentality = think global & local simultaneously. Market place = physical (shop) Market space = digital (online) Meta market = cluster of complementary products or services that are closely related in the minds of consumers, but spread across diverse set of industries (car mm: manufacturer/insurance/mechanics/service/magazines) Marketing mix 4P‟s= Product, Price, Place, Promotion 7P‟s= Product, Price, Place, Promotion, People, Process, Physical evidence See page 17 for an overview of the 7P’s. Value = a central marketing concept Marketing = identification, creation, communication, delivery and monitoring of customer value. Satisfaction Satisfaction is the perceived performance in relationship to expectations. performance < expectation = dissatisfied performance = expectation = satisfied performance > expectation = highly satisfied, delighted

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Classifications of 5 main marketing practices (Choice of marketing practice depends on networks/customers/industry) Transaction marketing - attracting & satisfying potential buyers , communication „to‟ consumer in mass market Database marketing - using database technology to create a relationship E-marketing - use internet/other interactive technologies to create and mediate between firm and consumer Interaction marketing - face-to-face interaction with consumer and interpersonal relationship Network marketing - across & among organisations, develop firm‟s position in network Consumers are changing Sophistication - greater variety of products or services, more information, easier interacting and placing/receiving orders Tech savvy - technologically sophisticated Self-expression & interaction - not only top-down where firms provide information to customers, also bottom-up) Buying power voice and influence Co-creation - consumers shapes experience of product by self-choosing things  customisation of products and services Self-service The market place is changing Heightened competition Globalisation - world trade, integration Technologies - information & communication, ICT Industry convergence Retail transformation - growth own brands, retail internationalisation, retail market still very fragmented, competition forces Disintermediation - The delivery of products and services get disintermediated, e.g. Ryanair offers only online bookings, no travel agent anymore! Content of marketing is changing Postmodern marketing - we should challenge marketing assumptions. Main conditions= hyper reality, fragmentation, reversals of pros/cons., decentring of subject, paradoxical positions, loss of commitment. Retro marketing - based on trickterism, exclusivity, amplification, secrecy, entertainment.  reflects our postmodern knowledge society! (Different from modern industrial society) Philosophies of marketing Production orientation Look only at products and services, not to customer needs. Focus is on high efficiency, low costs, mass production &distribution. Sales orientation Focus on one-time sales of goods rather than repeat businesses. Marketing is viewed as a sales function Marketing orientation Focus on satisfying customers‟ needs and wants  sense and respond. Total quality management (TQM) widely followed in marketing community What is Marketing Management?

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Art & science of choosing target markets and getting, keeping and growing customers through creating, delivering, and communication superior customer value. Core features of management = planning, organising, leading, controlling. Planning: Marketing planning process Analysing marketing opportunities Selecting target markets (after identifying market segments) Designing positioning strategies Developing marketing mix programmes to reflect brand name that has loyal customers Managing the marketing effort Organising: organise marketing department & organise staff & stakeholders (internal marketing) Why enter international markets? Desire for higher profit opportunities Need for larger customer base to achieve economies of scale Desire to reduce its dependencies on any one market Decision to counterattack global competitors Customer need for international service 4 Stages of internationalisation 1. Focus on domestic activities (no regular export) 2. Export via independent representatives 3. Establish one or more subsidiaries 4. Establish production & service facilities (FDI) Philosophy of marketing: customer is king Dark side of marketing Marketers illegal activities, products that encourage antisocial behaviour Consumers - terrorism, addictive cons., exploited people, illegal activities, shrinkage, anticonsumption. Relationship marketing - focus on building long-term relationships with customers. See: page 44, figure 2.1 environmental changes & developments in marketing theory & practice. The essence of strategic marketing - Segmentation, Targeting, Positioning (STP)

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Chapter 3 - Developing marketing strategies and plans Paradigm change in business environment: transitioning from sellers to buyer‟s market Consequences for firms: Extreme competition Demanding customers, customers usually demand more (perceived-value) for their money Customers have choice Transformation of the value concept, which is now heavily influenced by the buyer Fragmented market segments, appeal to customers who have distinct perceivedvalue requirements. Value 1. 2. 3. 4.

delivery process: 4 steps Discovering the required value Developing, choosing or identifying a suitable customer offering Delivering/providing the value Communicating the value

See: lecture 2, sheet 5 CPV = Customer perceived value Value chain = tool for identifying, key activities that create value & costs / ways to create more CPV. Core business processes Market sensing New offering realisation Customer acquisition Customer relationship management Fulfilment management Core competencies, 3 characteristics 1. Source of competitive advantage 2. Application in a wide variety of markets 3. Difficult for competitors to imitate Business realignment  to maximise core competencies, 3 steps 1. (re)defining the business concept „big idea‟ 2. (re)shaping the business scope 3. (re)positioning the company‟s brand identity Holistic marketing orientation Help to capture CPV by integrating the value exploration, value creation and value delivery Strategic Planning Market-oriented strategic planning is the managerial process of developing and maintaining a viable fit between the organisation‟s objectives, skills, resources and its changing market opportunities. Aim is to shape the company‟s businesses and p roducts so that they yield target profits and growth. Strategic planning takes place at 4 organisational levels: corporate level division level business unit level

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product level Marketing plan = the central instrument for directing and coordinating the marketing effort. A marketing plan consists of: Strategic planning: identify opportunities, decide target markets, and decide capofferings. Managerial decision process that matches firm‟s resources & capabilities to its marketing opportunities for long-term growth. (E.g. top management defines firm‟s purposes & objectives) Functional/tactical planning: Specifies tactics and includes the 7 P‟s. This is accomplished by various functional areas of firm. Typically includes a broad 5-year plan to support strategic plan and a detailed annual plan Operational planning First-line managers focus on day-to-day execution of functional plans. Such planning includes detailed annual, semi-annual, or quarterly plans. Setting a corporate strategy. 4 planning activities. 1 Define the corporate Mission statements focus on limited number of goals and mission stress the company‟s major policies, value, and culture. It also defines the major competitive areas. 2 Define the business Business is defined in terms of 3 dimensions: customer groups, customer needs and technology). This section also includes establishing/defining SBU‟s to develop separate strategies 3 Assigning resources to Based on market attractiveness and business strength. each SBU 4 Assessing growth Intensive growth - improving existing business (productopportunities market expansion grid and Ansoff matrix) Integrative growth - backward/forward/horizontal integration Diversification growth - opportunities outside the present business) Ansoff-matrix Current markets

Current products Market penetration strategy

New markets

Market development strategy

New products Product development strategy Diversification strategy

See lecture 2, sheet 16-26. Business unit strategic planning See page 101 for a figure of the strategic planning process and SWOT analysis. Strategic planning process for individual businesses: Define business mission Analyse internal & external environment Goal formulation Strategy formulation Programme formulation Implementation Gathering feedback & exercising control

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SWOT analysis Strength - internal, helpful Weaknesses - internal, harmful Opportunities - external, helpful Threats - external, harmful Good marketing is the art of finding, developing and profiting from these opportunities. Critics on SWOT analysis SWOT analyses are descriptions of conditions, whereas strategies require actions. Porter‟s generic strategies TARGET SCOPE Broad (industry wide) Narrow (market segment)

Advantages Low cost Co...