Introduction to Business Management

Prof. Dr Allard Van Riel

Agenda

1) What can you expect from this course?

 Instructors
 Course aims
 Course logistics
 Short overview of course content & logistics
 Workgroups and Team Assignment
 What we expect from you
 Grading

2) Part 1: Introduction to Marketing

 Why start with Marketing?
 Marketing in an international company
 Market-driven innovations
 Marketing case study
Course Instructors

Course Assistant:

Mrs. Olesia Nikulina, MSc

Olesia.nikulina@uhasselt.be

Course Coordinator
Lecturer

Prof. Dr. Allard Van Riel

allard.vanriel@uhasselt.be
Course Aims: Focus

Business: Organization & Management

Business Organization: The inside of a business

 Human Resources
 Organizational Design, Change & Development
 Finance, Accounting, Control and Governance

Business Management: The outside of a business

 Marketing and Innovation Management (the customer)
 Strategic Management (the competition)
 Supply Chain Management (partners)
Course aims (continued)

Understand key management concepts & theory

 Speak the language of management

Understand principles of Marketing, Strategy, Logistics and
Innovation Management
 Understand Managers’ way of thinking
Understand how Marketing, Strategy, Logistics and
Innovation are essential elements of global business
 Understand their contributions to business
Application of theory (practical assignments)
Course logistics

Lectures [13] Acquisition of theoretical knowledge

Workgroups [4] Case studies: gaining of skills needed to
explore the business environment  Practical application of
theoretical knowledge (team assignments)
Presentations [4] Professional presentation of the result of
your team’s work (verbal, team effort)
Exam [1 preferably]
 Schedule (locations may change)

Session & Chapter Date Day Time Room

1. Lect. 1 Introduction + Project (Ch. 1) 20/09/2021 Monday 0900-1100 B102
2. Lect. 2 STR - Environment (Ch. 2) 28/09/2021 Tuesday 1100-1300 C104
3. Lect. 3 MAR - Customer Behaviour (Ch. 3) 06/10/2021 Wednesday 1300-1500 B5
Workgroup 1 – Article/Case Presentations 18/10/2021 Monday 1400-1600 C109
4. Lect. 4 STR - Market Intelligence (Ch. 4) 19/10/2021 Tuesday 1100-1300 B103
5. Lect. 5 MAR - Branding (Ch. 5) 25/10/2021 Monday 0900-1100 B103
6. Lect. 6 INN - Value through Products part 1 (Ch. 6) 27/10/2021 Wednesday 0900-1100 C104
7. Lect. 7 INN - Value through Services (Ch. 7) 08/11/2021 Monday 0900-1100 B103
Workgroup 2 - Article/Case Presentations 10/11/2021 Wednesday 0830-1030 C104
8. Lect. 8 STR - Pricing (Ch. 8) 15/11/2021 Monday 1400-1600 B102
9. Lect. 9 SCM - Distribution (Ch. 9) 22/11/2021 Monday 0900-1100 B103
Workgroup 3 - Article/Case Presentations 26/11/2021 Friday 1100-1300 B102
10. Lect. 10 IMC Part 1 - (Ch. 10-11) 29/11/2021 Monday 0900-1100 B102
11. Lect. 11 IMC Part 2 - Ch. 10-11) 06/12/2021 Monday 0900-1100 C105
Workgroup 4 - Article/Case Presentations 10/12/2021 Friday 0900-1100 B102
12. Lect. 12 STR Marketing Planning & Strategy Ch. 12 13/12/2021 Monday 1400-1600 B103
13. Lect. 13: Q&A 16/12/2021 Thursday 1400-1600 C109
Written Exam nn/01/2022 TBA TBA
The workgroup (WG) meetings

Students are divided into smaller

subgroups
- WG teams of max. 5-7 students per team
- Article Presentations & Discussions
How will you(r work) be assessed?

Regular students:
- 20% workgroup grade (presentations &
participation)
80% final exam
- You need minimum 10 for each element to be
eligible for a sufficient final grade
Repeat students:
- Work group grade from previous year remains valid
- Distribution of weights as above
Course Material

Book (compulsory):
Fahy and Jobber, Foundations of Marketing, 6e, McGraw-Hill (2019)
Lecture slides
Articles/Cases

What is exam-relevant?
Everything apart from recommended readings
Questions

If you encounter any problems or have additional

questions, which you cannot resolve yourself(!),
please send and email to the course coordinator:
allard.vanriel@uhasselt.be

Please put the title of the course in the header of

your message!
Any questions so far?
Chapter 1

The Nature of Marketing

Foundations of Marketing, Sixth

Edition
 What is Marketing?

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 The Nature of Customer Value

Perceived Benefits Perceived Sacrifice

• Monetary costs
Customer • Product benefits • Time costs
Value • Service benefits • Energy costs
• Image benefits • Psychological
costs

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 Customer Satisfaction

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 Forms of Customer Value

1. Price value – customers perceive a product as being

cheaper than those offered by competitors (e.g.
Ryanair, Aldi, Easycar).
2. Performance value – customers look for the latest
features, functionality and quality (e.g. Dyson).
3. Emotional value – what is in the mind of the customers
(e.g. Volvo & safety, Chanel & luxury).
4. Relational value – the quality of service received by a
customer – a high level of trust leads to the lifetime
value of a customer.

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 Customer Relationship
Management (CRM)

All kinds of organizations are now becoming

proficient users of customer relationship
management systems (CRMs) to get to know their
customers better and to interact with them on a
regular basis.

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 Alternative Business Orientations

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 Market-Oriented vs Internally Orientated Businesses

Market-orientated businesses Internally orientated businesses

Customer concern throughout business Convenience comes first
Know customer choice criteria and Assume price and product performance
match with marketing mix key to most sales
Segment by customer differences Segment by product
Invest in market research (MR) and track Rely on anecdotes and received wisdom
market changes
Welcome change Cherish status quo
Try to understand competition Ignore competition
Marketing spend regarded as an Marketing spend regarded as a luxury
investment
Innovation rewarded Innovation punished
Search for latent markets Stick with the same
Be fast Why rush?
Strive for competitive advantage Happy to be me-too

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Business Mission

A business mission is defined as…

a broadly defined, enduring statement of
purpose that distinguishes a business from
others of its type (Ackoff)

This definition captures two essential

ingredients in mission statements: they are
enduring and specific to the individual
organization
Marketing Objectives

The definition of marketing objectives

may be derived from the results of the
marketing audit and the SWOT analysis
SWOT Analysis
The Ansoff Matrix
 The Scope of Marketing

• Social marketing where marketing is used to promote

important societal causes has grown dramatically.

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 Social Marketing

• Social marketing comprises the use of

marketing techniques in order to change or
maintain people’s behaviour for the benefit of
the individual or society as a whole.

• Social campaigns include, for example, anti-

smoking, drink aware, sun safety, water safety,
sexual health, and exercise.

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 The Marketing Mix

Product

Promotion The Marketing Mix Price

Place

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 Marketing and Performance

• Businesses displaying the highest level of

market orientation achieving the highest levels
of profitability (Narver & Slater).
• Sustained advantages were achieved by firms
that had adopted a market orientation earlier
than competitors.
• A focus on customer retention rather than
merely acquisition.

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 Marketing and Performance

• Value-based marketing is where the objective of

marketing is seen as contributing to the
maximization of shareholder value (Doyle).
• A chain of marketing productivity demonstrates
how marketing investments are reflected in firm
outcomes (Rust et al).

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Marketing Metrics

A key emerging area of control is

marketing metrics
Two key elements of marketing metrics:
 The effectiveness of operational marketing
activities and
 The impact of marketing on the bottom line
 Impact of Marketing Campaigns

Customers
(attitudes or
satisfaction)

Market impacts
Value of the
firm Marketing (e.g. market
share)

Financial
impacts (e.g.
profitability)

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 Impact of Marketing

• factors influenced by marketing activity such as

marketing capabilities, marketing assets, and
marketing actions can impact upon firm value.
• when marketing activity is measured,
significant performance benefits accrue.
• a market orientation combined with systems for
measuring marketing performance have been
found to enhance financial performance.

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 The Marketing Planning Process

Business mission & strategy

Environmental & customer analysis

Marketing objectives

Marketing strategy

Marketing actions

Marketing performance

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 Summary
1. The marketing concept is a business philosophy that puts the
customer at the center of things;
2. Customer value is the difference between perceived benefits and
perceived sacrifices involved in consuming a product or service;
3. The field of marketing is constantly evolving and currently market-
driven organizations are better placed to succeed in rapidly
changing competitive environments;
4. Marketing planning is an important activity to ensure marketing
effectiveness;
5. Marketing works – research proves that marketing can assist
organizations to achieve their goals;
6. The scope of marketing is broad, involving business and non-
business contexts;
7. An informed perspective on both the merits and risks associated
with marketing is important.

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