Important Concepts of Kotler's Marketing Management Chapter 1: Defining Marketing for the 21st Century

1. DEFINING MARKETING FOR
THE 21ST CENTURY
CLASS # 2, CHAPTER 1

2. Outline
• Marketing
• Marketing Management
• Marketers
• Market
• Production Concept
• Product Concept
• Selling Concept
• Marketing Concept
• Relationship Marketing
• Integrated Marketing

3. MARKETING
• Is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value
for customers, clients, partners, and society at large.
• Kotler Example: Ebay created an online auction clearing house when
it found out that people were unable to located some of the items
they wanted
• Local/Medical Example: ClickTheCity found that it’s now important for
Filipinos to know a movie’s schedule and look for the most convenient
time to watch, so it created a website specifically for looking through
movie screenings within a day.

4. MARKETING MANAGEMENT
• Art and science of choosing target markets and getting, keeping, and
growing customers through creating, delivering, and communicating
superior customer value
• Kotler Example: Nintendo designed its Wii game system, Toyota
introduced its Prius hybrid automobile
• Local/Medical Example: Back in 2009, Globe created its Unli Call and
Text to all globe subscribers for Plan 599

5. MARKETERS
• A person who seeks a response from another party, called the
prospect.
• Kotler Example: Nike, Wii, Domino’s Toyota
• Local/Medical Example: Globe, ClicktheCity, Jollibee

6. MARKET
• A collection of buyers and sellers gathered to buy and sell goods
• Kotler Example: Diet-seeking market, shoe market, the youth market,
the Chinese market
• Local/Medical Example: Cosmetic Surgery market, TMC’s Market,
Geriatric Patient market

7. PRODUCTION CONCEPT
• Holds that consumers prefer products that are widely available and
inexpensive
• High production efficiency, low costs, and mass distribution.
• Kotler Example: Legend and Haier in China for their PC manufacturing
and domestic appliances respectively
• Local/Medical Example: The Generic Pharmacy

8. PRODUCT CONCEPT
• Proposes that consumers favor product offering the most quality,
performance, or innovative features
• Kotler Example: Dell (Windows), Lenovo vs Apple
• Local/Medical Example: Medical City OPD Lab Tests vs Random
Diagnostic Center Lab Tests

9. SELLING CONCEPT
• Holds that consumers and businesses, if left alone, won’t buy enough
of the organization’s products
• Kotler Example: Insurance and cemetery plots
• Local/Medical Example: Condominiums and real estate agents
pushing for bigger and higher ones, even more units than the number
the consumer wants

10. MARKETING CONCEPT
• Proposes that the job is to find not the right customers for your
products, but the right products for your customers.
• Kotler Example: Dell’s provision of product platforms which each
person customizes the features he/she desires in the computer
• Local/Medical Example: Ramen Nagi and how you make your own mix
of ramen depending on what you feel like eating that day

11. RELATIONSHIP MARKETING
• Aims to build mutually satisfying long-term relationships with key
constituents in order to earn and retain their business
• Kotler Example: Royal Bank of Canada putting its customers at the
center of how it runs its company
• Local/Medical Example: Medical City and how it puts its patients first,
labeling itself as a patient-partner rather than a physician with
different goals than the one seeking help

12. INTEGRATED MARKETING
• Happens when the marketer devices marketing activities and
assembles marketing programs to create, communicated, and deliver
value for consumers such that “the whole is greater than the sum of
its parts.”
• Kotler Example: Mini Cooper in 2002
• Local/Medical Example: Cohen Diet Program – encompassed change
in lifestyle, cooking classes to help develop healthy eating habits,
consultations with nutritionists and mentors, blood tests for monthly
check-up

13. DEFINING MARKETING FOR
THE 21ST CENTURY
CLASS # 2, CHAPTER 1