Creating Sustainable Long Term Growth


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  • Part 8 of Kotler and Keller’s Marketing Management is titled “creating successful long term growth.
    As we learned in ecological economics, perpetual growth is a debatable desire.
    Yet, growth remains the principal goal of most businesses.
  • Kotler and Keller set forth 3 methods for business to achieve long term growth.
    They are “Introducing New Market Offerings”, which I’ve called “New Stuff”, “Tapping into Global Markets”, which I’ve called “Go Global” and “Managing a Holistic Marketing Organization” or Get Holy
  • One way to create growth is by selling more stuff.
    Once you have sold as much of the old stuff as possible, you need develop new stuff to sell.
    So how do you do this?
  • Now available from Presidio Books! Dariush Rafinejad’s Innovation, Product Development and Commercialization!
    Much of Chapter is about the product development, since most of us are also in Products and Services I won’t spend much time on this.
  • Among other challenges, a lack of ideas is one of the biggest barriers to developing new stuff.
    Many basic products, such as steel, have little room for improvement.
    Some companies use creativity techniques such as attribute listing, forced relationships, morphological analysis, reverse assumption analysis, new contexts and mind mapping.
  • Once ideas have been generated, development can take two forms.
    The company can create an organizational infrastructure of it’s own.
    Or, it can contract with independent researchers and product development firms.
  • Kotler and Keller point out that the BEST way to set up the new product development process is to have a unique and superior product…like the snuggie.
    However, the need for long term growth is such that even Snuggie will eventually need to develop new products.
  • It is yet to be seen whether or not the Snuggie for Dogs provides long term growth
    However, this product adaptation accesses new markets
    And therefore, it has the potential to increase revenues.
  • The 2nd method to long term growth described by Kotler and Keller is Going Global.
    There are many factors involved in the decision to go abroad and companies must carefully weigh the opportunities and risks.
  • The primary opportunity of going global is an increased customer base.
    More customers means more sales volume, economies of scale and higher profits
  • One major risk to going global is understanding customer preferences.
    For example this image depicts the differences between Japanese and German consumer preferences.
  • Another major risk is understanding of foreign business culture.
    As we know even small gestures can carry drastically different implications depending on the culture.
  • Companies have to decide which markets to enter.
    Considerations include
    How Many
    Developed v. Developing
    Regional Free Trade Zones
    physical proximity – closeness on a map
    And, psychic proximity – similarity in culture or product tastes
  • The third method proposed by Kotler and Keller to create long-term growth is managing a holistic marketing organization.
    Holistic Marketers embrace the complexity of marketing by engaging in a wide variety of carefully planned, interconnected marketing activities.
  • One key to managing a holistic marketing organization is staying aware of current trends
    Flattening is a current trend that has reduced the organizational levels between customers and businesses.
  • Creating Sustainable Long Term Growth

    1. 1. Long Term Growth
    2. 2. Methods <ul><li>New Stuff </li></ul><ul><li>Go Global </li></ul><ul><li>Holistic Marketing </li></ul>
    3. 3. New Stuff
    4. 4. Product Development Process
    5. 5. Idea Generation
    6. 6. Product Development Organization
    7. 7. The Best Way to Set Up the Product Development Process
    8. 8. Unique and Superior Product
    9. 9. Go Global
    10. 10. Increased Customer Base
    11. 11. Understanding Customer Preferences
    12. 12. Understanding Foreign Business Culture US = OK Japan = Money Brazil = “Insult” Russia = Zero
    13. 13. Where to Go?
    14. 14. Holistic Marketing
    15. 15. Current Trends: Flattening
    16. 16. Socially Responsible Marketing: CSR
    17. 17. Socially Responsible Marketing: Cause Marketing
    18. 18. Evaluation and Control <ul><li>Evaluation </li></ul><ul><ul><li>Efficiency </li></ul></ul><ul><ul><li>Strategic </li></ul></ul>
    19. 19. Future of Marketing Holistic ROI Science Automated Precise Department Free Spending Intuition Manual Mass
    20. 20. FIN New Stuff Go Global Holistic Marketing