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Defining Marketing for the 21st Century - Philip Kotler First Chapter

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First Chapter of Marketing Management by Philip Kotler

Published in: Marketing

Defining Marketing for the 21st Century - Philip Kotler First Chapter

  1. 1. Defining Marketing for the 21st Century Group – 1 Amrita Chatterjee Anurag Saikia Ayushi Barnwal Dhruv Bhatia Prerna Khindri
  2. 2. Topic Outline • Why is marketing important? • What is the scope of marketing? • What are some core marketing concepts? • How has marketing management changed in recent years? • What are the tasks necessary for successful marketing management?
  3. 3. What is Marketing? • “Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.” -Philip Kotler • “Marketing is getting the right goods & services to the right people at the right time, at the right place, at the right price with the right communications & promotions.” - American Marketing Association
  4. 4. Marketing Process
  5. 5. The Scope of Marketing What is Marketed? Goods Services Events Experiences Persons Places Properties Organizations Information Ideas
  6. 6. Eight Demand States
  7. 7. Markets
  8. 8. Markets
  9. 9. Marketing Insight: Rural Markets in South Asia • RRuurraall mmaarrkkeettiinngg is any marketing activity in which one dominant participant is from a rural area • Why is it iimmppoorrttaanntt??  The majority of South Asia’s population of about 11..55 bbiilllliioonn resides in rural areas  These markets offer immense potential for market expansion and growth  Market indicators such as size and growth rate for many products and product categories are too attractive for any company to ignore  Around 48% of the rural population is below 20 years of age
  10. 10. Marketing Insight: Rural Markets in South Asia • f Challenges foorr MMaarrkkeetteerrss:  Vast difference in nature, characteristics, buying patterns and behaviour than urban counterparts  Demand and consumption pattern is different  Pattern of income levels in rural markets  Lower literacy levels  Dispersed nature of the population  Inadequacy of physical infrastructure like roads  Weak banking system and limited availability of credit facilities  Problems of storage infrastructure
  11. 11. Core Marketing Concepts
  12. 12. The New Marketing Realities • Network Information Technology • Globalization • Deregulation • Heightened Competition • Industry Convergence • Retail Transformation • Disintermediation • Consumer Buying Power • Consumer Information • Consumer Participation • Consumer Resistance
  13. 13. New Company Capabilities • Marketers can use the internet as a powerful information and sales channel • Marketers can collect fuller and richer information about markets, customers, prospects and competitors • Marketers can tap into social media to amplify their brand message — Social MMeeddiiaa MMaarrkkeettiinngg • Marketers can facilitate and speed external communication among customers • Marketers can send ads, coupons, samples, and information to customers who have requested them or given the company permission to send them • Marketers can reach consumers on the move with mobile marketing • Companies can make and sell individually differentiated goods • Companies can improve purchasing, recruiting, training, and internal and external communications • Companies can facilitate and speed up internal communication via private intranet • Companies can improve their cost efficiency by skillful use of the Internet
  14. 14. Marketing Insight: Marketing in an Age of Turbulence • Turbulence – – Chaos, Risk and Uncertainty characterise many industries, markets and companies • Turbulence is the new normal, punctuated by periodic and intermittent spurts of prosperity and downturn, including extended downturns amounting to recession or even depression • Chaotics Marketing SSttrraatteeggiieess::  Secure your market share from core customer segments  Push aggressively for greater market share from competitors  Research customers more now, because their needs and wants are in flux  Minimally maintain, but seek to increase your marketing budget  Focus on all that’s safe and emphasize core values  Drop programs that are not working for you quickly  Don’t discount your best brands  Save the strong; lose the weak
  15. 15. Company Orientation Toward the Marketplace
  16. 16. THE EVOLUTION OF MARKETING CONCEPTS
  17. 17. The Production Concept • Oldest Concept • Customer – Favour products that are widely available and affordable • Goal – Improve production, cost and distribution efficiency • Usefulness – Demand exceeds supply – Product cost is too high, pressure to decrease • Risk —— [[WWhhaatt ttoo ddoo wwhheenn ssiittuuaattiioonn cchhaannggeess??]] • E.g.: - Lenovo and Haier in China I need lots of food and places to roam around..
  18. 18. The Product Concept • Marketers are caught in a “love-affair” with their product • Consumer – Favour products with best quality, performance, innovative features • Goal – Improve product features in a continuous fashion • Usefulness –– [[IIff mmaarrkkeett iiss ssttaabbllee,, nnoo ccoommppeettiinngg tteecchhnnoollooggiieess iinn ssiigghhtt]] • Risk – Competing technology (spray instead of mouse trap) enters market I will climb to the topmost branch and get the fruits. No one usually does it!
  19. 19. The Selling Concept • Aim is to sell what firms make rather than make what the market wants • Consumer – Will not buy enough products unless seller(s) undertake large-scale promotion and selling effort • Goal – Promote product, do aggressive selling and coax people into buying • Usefulness – Unsought goods – encyclopaedias, insurance, etc • Risk – Dissatisfied customers – will not buy again, will tell 10 people! • “Inside out” Food! Food! Food! First Come, First Serve
  20. 20. The Marketing Concept • Customer Centred instead of Product Centred • Customer – Buys product that best satisfies needs and wants • Goal – Determine needs and wants of target markets – Deliver the desired satisfaction more effectively and efficiently than competitors • Risk – Short term focus with respect to larger social and ethical issues – Overlooks long term customer welfare (fast food) • Customer driven marketing – When customers know what they want
  21. 21. The Marketing Concept • Customer driving marketing – When customers do not yet know they even need something – Meeting existing latent and future needs by understanding customers better than they understand themselves • E.g.: GSM networks, CD players • Total Market Orientation – “Outside in” Which animal will be my tasty meal today…?
  22. 22. The Holistic Marketing Concept Communications HHoolliissttiicc MMaarrkkeettiinngg CCoonncceepptt HHoolliissttiicc MMaarrkkeettiinngg CCoonncceepptt Senior Mgmt Internal Marketing Performance Marketing Integrated Marketing Relationship Marketing Legal Environment Sales Revenue Customers Partners Channel Ethics Brand & Customer Equity Commodity Products & Services Marketing Other Depts Channels Dept
  23. 23. The Social Responsibility Marketing • The organizations task is to determine the needs, wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumers’ and the society’s well-being • The Human concept • The intelligent consumption concept What will they eat today..? • The ecological imperative concept Live and let live.. • Goal – Balance  Consumer satisfaction in short and long term  Society  Company profits
  24. 24. Marketing Management Tasks
  25. 25. CASE STUDY – MARKETING EXCELLENCE Horlicks in India
  26. 26. Major Promotional activities •In India, over 2 billion cups of Horlicks are consumed every year •Horlicks’ largest market is in India •Horlicks is the 6th mot trusted brand in India (AC Nielsen) •Horlicks is the most trusted health drink brand (Economic times 2004) •Horlicks has more than 50% share in health drink market
  27. 27. THANK YOU

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