marketing management 12 th edition 1 defining marketing for the 21 st century kotlerkeller

MARKETING MANAGEMENT12th edition

1

Defining Marketing

for the 21st Century

Kotler Keller

1-2

Chapter Questions Why is marketing important? What is the scope of marketing? What are some of the fundamental

marketing concepts? How has marketing management changed? What are the tasks necessary for

successful marketing management?

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What is Marketing?

Marketing is an organizational function and a set of processes for creating,

communicating, and delivering value to customers and for managing

customer relationships in ways that benefit the

organization and its stakeholders.

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What is Marketing Management?

Marketing management is theart and science

of choosing target markets and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.

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For an exchange to occur….. There are at least two parties. Each party has something that might be of value

to the other party. Each party is capable of communication and

delivery. Each party is free to reject the exchange offer. Each party believes it is appropriate or desirable

to deal with the other party.

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What is Marketed?

Goods Services Events Experiences Persons

Places Properties Organizations Information Ideas

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Demand States

Negative Nonexistent Latent Declining

Irregular Unwholesome Full Overfull

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Key Customer Markets

Consumer markets Business markets Global markets Nonprofit/Government markets

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The marketplace isn’t what it used to be….

Changing technology Globalization Deregulation Privatization

Empowerment Customization Convergence Disintermediation

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Company Orientations

Production Product Selling Marketing

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Marketing Mix and the Customer

Four Ps Product Price Place Promotion

Four Cs Customer solution Customer cost Convenience Communication

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Core Concepts

Needs, wants, and demands

Target markets, positioning, segmentation

Offerings and brands Value and

satisfaction

Marketing channels Supply chain Competition Marketing

environment Marketing planning

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I want it, I need it…..

5 Types of Needs

Stated needs Real needs

Unstated needs Delight needs Secret needs

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Marketing Management Tasks

Developing marketing strategies

Capturing marketing insights

Connecting with customers

Building strong brands

Shaping market offerings

Delivering value Communicating

value Creating long-term

growth

MARKETING MANAGEMENT12th edition

2 Developing Marketing

Strategies and Plans

Kotler Keller

1-16

Chapter Questions

How does marketing affect customer value?

How is strategic planning carried out at different levels of the organization?

What does a marketing plan include?

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Improving Value Delivery the Japanese Way

0 customer feedback time 0 product improvement time 0 purchasing time 0 setup time 0 defects

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3 V’s Approach to Marketing

Define the value segment Define the value proposition Define the value network

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Benchmarks

Organizational costs and

performance measures

Competitorcosts and

performance measures

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Core Business Processes

Market sensing

Fulfillmentmanagement

Customer acquisition

New offering realization

Customer relationship management

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Characteristics of Core Competencies

A source of competitive advantage Applications in a wide variety of markets Difficult to imitate

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Challenges Facing CMO’s

Doing more with less Driving new business development Becoming a full business partner

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Levels of a Marketing Plan

Strategic Target marketing

decisions Value proposition Analysis of marketing

opportunities

Tactical Product features Promotion Merchandising Pricing Sales channels Service

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Corporate Headquarters’ Planning Activities

Define the corporate missionEstablish SBUsAssign resources to each SBUAssess growth opportunities

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Good Mission Statements

Focus on limited number of goals Stress major policies and values Define major competitive spheres

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Major Competitive Spheres

Industry Products Competence

Market segment Vertical channels Geographical

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Rubbermaid Commercial Products, Inc.

“Our vision is to be the Global Market ShareLeader in each of the markets we serve. We will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, cost-effective and environmentally responsible products. We will add value to these products by providing legendary customer service through our uncompromising Commitment to Customer Satisfaction.”

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Motorola

“The purpose of Motorola is to honorablyserve the needs of the community by providingproducts and services of superior quality at a fair price to our customers; to do this so as toearn an adequate profit which is required forthe total enterprise to grow; and by doing so, provide the opportunity for our employees andshareholders to achieve their personal objectives.”

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eBay

“We help people trade anything on earth.We will continue to enhance the onlinetrading experiences of all – collectors, dealers, small businesses, unique itemseekers, bargain hunters, opportunitysellers, and browsers.”

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Dimensions That Define A Business

Customer groups

TechnologyCustomer

needs

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Characteristics of SBUs

It is a single business or collection of related businesses

It has its own set of competitors It has a leader responsible for:

Strategic planningProfitabilityEfficiency

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Organizations

Culture Policies Structure

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Market Opportunity Analysis (MOA) Can the benefits involved in the opportunity be

articulated convincingly to a defined target market?

Can the target market be located and reached with cost-effective media and trade channels?

Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?

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Market Opportunity Analysis (MOA)_2 Can the company deliver the benefits

better than any actual or potential competitors?

Will the financial rate of return meet or exceed the company’s required threshold for investment?

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Goal Formulation and MBO

Requirements for using MBOUnit’s objectives must be hierarchicalObjectives should be quantitativeGoals should be realisticObjectives must be consistent

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Porter’s Generic Strategies

Overall cost leadership Differentiation Focus

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Categories of Marketing Alliances

Product or Service Alliances Promotional Alliances Logistics Alliances Pricing collaborations

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Marketing Plan Contents

Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls

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Evaluating a Marketing Plan

Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?

MARKETING MANAGEMENT12th edition

11 Dealing with Competition

Kotler Keller

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Chapter Questions How do marketers identify primary competitors? How should we analyze competitors’ strategies,

objectives, strengths, and weaknesses? How can market leaders expand the total market

and defend market share? How should market challengers attack market

leaders? How can market followers or nichers compete

effectively?

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Figure 1.1 Five Forces Determining Segment Structural Attractiveness

Potential entrants Suppliers Buyers Industry competitors Substitutes

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Industry Concept of Competition

Number of sellers and degree of differentiation

Entry, mobility, and exit barriers Cost structure Degree of vertical integration Degree of globalization

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Industry Concept of Competition

Pure monopoly Oligopoly Monopolistic competition Pure competition

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Analyzing Competitors

Share of market Share of mind Share of heart

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Expanding the Total Market

New customers More usage

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Figure 11.6 Six Types of Defense Strategies Defender Flank Preemptive Counteroffensive Mobile Contraction

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Factors Relevant to Pursuing Increased Market Share

Possibility of provoking antitrust action Economic cost Pursuing the wrong marketing-mix

strategy The effect of increased market share on

actual and perceived quality

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Other Competitive Strategies

Market challengers Market followers Market nichers

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Market Challenger Strategies

Define the strategic objective and opponents

Choose a general attack strategy Choose a specific attack strategy

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General Attack Strategies

Frontal attack Flank attack Encirclement attack Bypass attack Guerrilla warfare

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Specific Attack Strategies

Price discounts Lower-priced goods Value-priced goods Prestige goods Product proliferation

Product innovation Improved services Distribution innovation Manufacturing-cost

reduction Intensive advertising

promotion

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Market Follower Strategies

Counterfeiter Cloner Imitator Adaptor

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Balancing Orientations

Competitor-centered Customer-centered

MARKETING MANAGEMENT12th edition

3 Gathering Information

and Scanning the

Environment

Kotler Keller

1-56

Chapter Questions_1

What are the components of a modern marketing information system?

What are useful internal records? What is involved in a marketing

intelligence system?

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Chapter Questions_2

What are the key methods for tracking and identifying opportunities in the macroenvironment?

What are some important macroenvironment developments?

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MIS Probes for Information What decisions do you regularly make? What information do you need to make these decisions? What information do you regularly get? What special studies do you periodically request? What information would you want that you are not getting

now? What are the four most helpful improvements that could

be made in the present marketing information system?

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Internal Records

Order-to-Payment Cycle Sales Information System Databases, Warehousing, Data mining Marketing Intelligence System

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Steps to Improve Marketing Intelligence

Train and motivate sales force Motivate channel members to share intelligence Network externally Utilize customer advisory panel Utilize government data resources Purchase information Collect customer feedback online

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Needs and Trends

Fad

Trend

Megatrend

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10 Megatrends Shaping the Consumer Landscape

Aging boomers Delayed retirement Changing nature of

work Greater educational

attainment Labor shortages

Increased immigration Rising Hispanic

influence Shifting birth trends Widening geographic

differences Changing age

structure

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Environmental Forces

Demographic Economic Socio-Cultural Natural Technological Political-Legal

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Population and Demographics Size Growth rate Age distribution Ethnic mix Educational

levels

Household patterns

Regional characteristics

Movement

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Economic Environment

$ Purchasing Power$ Income Distribution$ Savings Rate$ Debt$ Credit Availability

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Types of Industrial Structures

Industrial economies Industrializing economies Raw-material exporting economies Subsistence economies

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Social-Cultural Environment

Views of themselves Views of others Views of organizations Views of society Views of nature Views of the universe

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Natural Environment

Shortage of raw materials Increased energy costs Anti-pollution pressures Governmental protections

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Technological Environment

Pace of change Opportunities for innovation Varying R&D budgets Increased regulation of change