Slide 2.1 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Understanding marketing management Chapter 2

Slide 2.2 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Chapter questions 1.What is management? 2.What is marketing management? 3.How do we manage within a global environment? What is the role of a global marketing manager? 4.How do we manage within developing markets?

Slide 2.3 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Core features of management Planning Organising Leading Controlling

Slide 2.4 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Gary Hamel on changes in management feature=PlayList&p=8816B2818F81FB91&pl aynext=1&playnext_from=PL&index=12 This video is titled ‘Management Must Be Reinvented’ and is a critic of current management practices and suggestions for changes.

Slide 2.5 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Preparing to capitalise on opportunities Assess marketing manager’s skill set Build new marketing skills Manage both day-to-day (tactical) and strategic issues Control and measure outcomes or returns

Slide 2.6 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Figure 2.2 Forces shaping marketing’s role Source: W. Frederick, A. Malter and S. Ganesan (2005) The decline and dispersion of the marketing competence, MIT Sloan Management Review, 46(4), 35–43. Copyright © 2005 Massachusetts Institute of Technology. All rights reserved. Reproduced with permission

Slide 2.7 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Figure 2.3 Improving marketing directors’ success Source: From G. McGovern and J. A. Quelch (2004) The fall and rise of the CMO, Strategy+Business, 37, 3–8. Reproduced with permission

Slide 2.8 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Figure 2.3 Improving marketing directors’ success (continued) Source: From G. McGovern and J. A. Quelch (2004) The fall and rise of the CMO, Strategy+Business, 37, 3–8. Reproduced with permission

Slide 2.9 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Contemporary marketing management skills Managing the implementation of ICT Managing networks, relationships, interactions Information handling and management Understanding and managing change Analytical and creative skills

Slide 2.10 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 The stages theory of ICT assimilation Automation Information Transformation Inertia Application Change

Slide 2.11 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Types of relationships Market relationships Mega-relationships Nano-relationships

Slide 2.12 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 What is a marketing network? A marketing network consists of the company and its supporting stakeholders with whom it has built mutually profitable business relationships.

Slide 2.13 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Smartville This video clip explores the networked manufacturing site of the Smart car – where suppliers are all on the same site in France. There are 1,900 people in 11 autonomous companies who work together to build the Smart car.

Slide 2.14 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 What is the basic principle of network marketing? Build an effective network of relationships with key stakeholders and profits will follow.

Slide 2.15 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Integrated marketing Many different marketing activities communicate and deliver value When coordinated, marketing activities maximise their joint effects

Slide 2.16 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 What external suppliers are managed by marketers? Advertising agencies Research companies Internet providers Database managers Distributors Transporters Retailers

Slide 2.17 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Figure 2.4 Major decisions in international marketing

Slide 2.18 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Why enter international markets? Desire for higher profit opportunities Need for larger customer base to achieve economies of scale Desire to reduce its dependence on any one market Decision to counterattack global competitors Customer need for international service

Slide 2.19 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 What risks exist when going abroad? Lack of information about foreign preferences Inability to understand foreign business culture Underestimation of foreign regulations Lack of managers with international experience Change in commercial laws and political risks

Slide 2.20 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Stages of internationalisation Focus on domestic activities Export via independent representatives Establish one or more subsidiaries Establish production and service facilities

Slide 2.21 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Zara, H&M, Reiss, TopShop and other European brands have all opened outlets in the US This video focuses on the challenges of tailoring European marketing to the US market.

Slide 2.22 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Nokia appeals to customers worldwide Source: Getty Images

Slide 2.23 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Entry approaches Waterfall Sprinkler Born global

Slide 2.24 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Factors affecting country attractiveness Product/service Geography Income Population Political climate Psychic proximity

Slide 2.25 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Enter countries that …. Rank high on market attractiveness Are low in market risk Possess a competitive advantage

Slide 2.26 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Table 2.5 The differences between global and glocal marketing Source: G. Svensson (2002) Beyond global marketing and the globalization of marketing activities, Management Decision, 40(6), 574–83. Copyright © Emerald Publishing Group Ltd. Reproduced with permission

Slide 2.27 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Fiat Palio is a world car Targets key developing markets: Brazil India Turkey South Africa China

Slide 2.28 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Marketing debate What are the core marketing management skills needed? Do these differ from skills needed by other managers?

Slide 2.29 Kotler, Keller, Brady, Goodman and Hansen, Marketing Management, 1 st Edition © Pearson Education Limited 2009 Recap: can you explain? What is management? What is marketing management? How do we manage within a global environment? What is the role of a global marketing manager? How do we manage within developing markets?