2. Introduction
Chapter1: the basics

3. Introduction

4. Petra Vijncke
First, second andthirdyearMarketing
Advertising agency
Petra.vijncke@arteveldehs.be
Check Chamilobeforemailing !!

5. Startingfromlevel 0
Markets change fast
Sodo media channels
Communication? Constant change
Consumer do too
Survive= beaware

9. Deadlines?
Assignments?
Exam?
Check Chamilo
2 sessionseveryweek (Wednesdaymorning: 8.30-11.30 am)

10. Me = powerpoints
You= take notes!
Thereis NO hand bookor course book!

11. Marketing basics andjargon
Marketing insightandproblemsolving
AndtoconvinceyoutostudyMarketing next year

13. Marketing is the process of communicatingthe value of a product or service to customers, for the purpose of sellingthat product or service.
Creating, delivering and communicating valueto customers
Customer relationship management that also benefits the organization.
Science of choosing target markets through market analysis and market segmentation, as well as understanding consumer behavior

17. Chapter1:
the basics

18. 1. Introduction
2. Definition
3. Basic conceptsandvoc
4. Marketing management concepts
5. Marketing approaches

19. In the factory, we make cosmetics. In the store, sellhope (CharlesRevlon)
Marketing = the full picture
›Digital, viral, socialnetworks, outdoor, guerilla, massmedia, retail, sales, PR, reputationmanagement, crisis communication, product placement, events, …

20. Example: Coca Cola

21. It’s allabout“branding”
Ketchup = yourbrand ?

22. Brands createvalue
Value = perceivedquality
Perceivedquality= certainpricesetting

24. Textmessageparking
Solar panels
Kai Mook
Twitter
Zumba

27. Notjustselling
But alsosatisfyingcustomers’ needs!

28. Bettercustomer deal: valueformoney
›Deliveringsuperior customer value
›Sustainablecompetitiveadvantage

29. Example:
›In 1997, M&M’s was almostbankrupt
›By2014, theyare the best sellingcandy in the USA
›Whathappened?

30. But marketing is somuchmore:
›Market research: thinkbeforeyouact
Whois mytarget audience?
Whatdoes mytarget audiencewant?
Needs, desires, …
›Is mytarget market attractiveandbigenough?
›Andwhatis mycompetitiondoing?

33. Analyse consumerbehaviour
›How do myconsumersbuy?
›Steps in the decisionprocess
Research product development
›Product features?
›Importanceof quality, packaging, service, warrants, design, branding, …

35. Price setting needstobe‘right’
›‘acceptable’ price
Distribution channels
›Availability?
›Power of channels?
Marketing communication
›= advertising

36. So, ifI askedyoutodefine‘marketing’, whatwouldyouranswerbe?

37. Process of planning and executing the
›conception,
›pricing,
›promotion and
›distribution of
›ideas, services and goods
›to create exchanges
›that have value and
›satisfy goals
›for customers, clients, partners, and society at large.
4 P’s

38. Example
GOOD + SERVICE
EXCHANGE AND CREATE VALUE
SATISFY GOALS FOR …

39. Is marketing important/necessary?
›Rootsof allbusiness = productsandservices
›Needtobemarketedandsold
›No turnover? No business andno employment
Yes !

40. Marketing: a ‘must’ or a ‘gift’?
›Depends on the product/service andthe branche
›Constant innovationnecessary
›Competitionis lurkingaroundthe corner
›Investin strong brands
›Focus on qualityandservice
›Buildrelationshipwithconsumersandotherstakeholders

41. Must
›Localhospital
›Youneedtobethere‘anyway’
›For routine check- ups andappointments
Gift
›Big, universityhospital
›Best doctors
›Buildon reputation
›Scientistsandexperts withinternationalexperience
›Advanced research

42. Watch out: marketing is notanexact science
›Thereare oftenno right/wrong answers
›Business instinct aloneis notenough
›Needtoanalyzethe 4 P’s

43. Product
Price
Place
Promotion
Needsandwishesof consumer
Whatthe consumerneedstopay
Wherethe consumercanbuythe product
How topromotethe product

44. Example‘Place’

45. Example4 P’s:

46. CreatingANDkeepingcustomers
How ?
›CRM = customer relationshipmanagement
›Examples?

47. Different target markets
Different needs
Different processes

48. Needsare universal+ general+ motivational
Demand
Productsare offered: advantages, satisfaction, valueis communicated
Exchange –transaction
Aimforthe right target market
Needsare satisfied

49. Examples?
›Useof wifi, internet
›Computer
›Milk
›Toilet paper
›Bank account
›…

51. But whatabout:

52. Desireis limitedandindividual
Demand
Productsare offered: advantages, satisfaction, valueis communicated
Exchange –transaction
Aimforthe right target market
Needsare satisfied

53. Example:

56. Thereis a desirebut the means are limited
Demand
Productsare offered: advantages, satisfaction, valueis communicated
Exchange –transaction
Aimforthe right target market
Needsare satisfied

57. Example?

58. Beware of the power of the different markets:
›Sellers’ market: demand> offer
Shortage: power forthe sellers
›Buyers’ market: demand< offer
Surplus: power forthe consumers
Example:
›tablet in 2010 vs2014
›PlayStationandpriceevolutionduetocompetition(Wii andSony Xbox)

59. Andwhataboutthis?

60. Transaction marketing
›Aimtoenlargetarget market
›Oftenshort term profitthinking only
›Eg. “6 monthsforfree”
Relationshipmarketing
›Sustainablecustomer relationship
›Long-term thinking

61. De-marketing
›Efforts aimed at discouraging (not destroying) the demand for a product
›Reasons:
a firm cannot supply in large-enough quantities
does not want to supply in a certain region because profit margin is too small
Common demarketingstrategies: higher prices, scaled-down advertising, and product redesign.

62. FOCUS ON THE CUSTOMER
FOCUS
ON
PRODUCT
MARKETING
ORIENTATION
PRODUCT ORIENTATION
PRODUCTION
ORIENTATION
SELLING
ORIENTATION

63. PRODUCT CONCEPT
›Consumer wants productswiththe best quality, presentationandfeatures
›Organizationconstantlytriestoimprovethe product
›Danger: “a goodproduct sellsanyway”
›Example:

64. Otherexample:

65. PRODUCTION CONCEPT
›Customerswant productswhichare widelyavailableandcheap
›Organizationsaimforhigh productionefficiency andmaximaldistribution
›Conditions:
Consumer has limitedmeans
Organizationneedstolowerproductioncosts

66. Example:

68. SELLING CONCEPT
›Customer does notbuythe product (enough), sohe/shemust beconvincedby“hard selling”
›Verydirect andoftenaggressive
›Dangers:
Unsoughtproducts
Overcapacity
‘We sellwhatwe make’, insteadof ‘we make whatwe cansell’

69. Example:

70. MARKETING CONCEPT
›Analyzeneedsof consumers, satisfythese needsanddo thatbetterthanthe competition
›Features
Focus on customer satisfaction
Market research
Analyzecompetition

71. Example

73. AND IN 2014: the new trends in marketing are…
›Green marketing: Ecover
›Ethnicmarketing
›Gay marketing
›Focus on sustainabledevelopment:
people+planet+ profit
Eg. Ben & Jerry’s

76. Golden advice: Be REAL andAUTHENTIC
›Avoidscandals
›Crisis management
›Eg. Nike, Shell, McDonald’s, IKEA, HEMA

77. B2C marketing
Marketing aimedat the finalconsumer
Eg. on a billboard

78. B2B marketing
›= trademarketing
›Marketing aimedat the retailers or distributorsor otherchannelsin betweeen
›Eg. DouweEgberts negotiationswithDelhaize
›Eg. IT compayofferingbusiness solutions

79. Retail marketing:
›Marketing fromthe retailer andaimedat the finalconsumer

80. Services marketing:
›Market a service (police, electricity, school, hospital, lawyer, mobile phoneoperator, citymarketing, …)

81. Non-profit marketing:
›Money earnedis usedforinvestmentsin the organisation, notforpersonal gain/profit
›Artevelde, localsport club, charityorg, …

82. But remember: marketing is notanexact science
›Duvel Brewerycreatesnew beer flavour
›Guidedtours in brewery
›Drink sthin the shop/bar afterwards
›Take home gadget + mini bottleof new flavour
›B2B, B2C, retail, services marketing, …?
›Whatdo youthink?

83. Extended definitionof marketing
4 P’s
Marketing jargon andvocabulary
4 marketing concepts
Trends of the year2014
Different marketing approaches
Marketing is notanexact science