marketing

1. MARKETING MANAGEMENT
12th
edition
1
Defining Marketing
for the 21st
Century
Kotler Keller

2. 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?

3. 1-3
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.

4. 1-4
What is Marketing Management?
Marketing management is the
art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.

5. 1-5
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.

6. 1-6
What is Marketed?
 Goods
 Services
 Events
 Experiences
 Persons
 Places
 Properties
 Organizations
 Information
 Ideas

7. 1-7
Demand States
 Negative
 Nonexistent
 Latent
 Declining
 Irregular
 Unwholesome
 Full
 Overfull

8. 1-8
Key Customer Markets
 Consumer markets
 Business markets
 Global markets
 Nonprofit/Government markets

9. 1-9
The marketplace isn’t what it used to be….
 Changing technology
 Globalization
 Deregulation
 Privatization
 Empowerment
 Customization
 Convergence
 Disintermediation

10. 1-10
Company Orientations
 Production
 Product
 Selling
 Marketing

11. 1-11
Marketing Mix and the Customer
Four Ps
 Product
 Price
 Place
 Promotion
Four Cs
 Customer solution
 Customer cost
 Convenience
 Communication

12. 1-12
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

13. 1-13
I want it, I need it…..
5 Types of Needs
 Stated needs
 Real needs
 Unstated needs
 Delight needs
 Secret needs

14. 1-14
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

15. MARKETING MANAGEMENT
12th
edition
2
Developing Marketing
Strategies and Plans
Kotler Keller

16. 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?

17. 1-17
Improving Value Delivery the
Japanese Way
 0 customer feedback time
 0 product improvement time
 0 purchasing time
 0 setup time
 0 defects

18. 1-18
3 V’s Approach to Marketing
 Define the value segment
 Define the value proposition
 Define the value network

19. 1-19
Benchmarks
Organizational
costs
and
performance
measures
Competitor
costs
and
performance
measures

20. 1-20
Core Business Processes
Market
sensing
Fulfillment
management
Customer
acquisition
New offering
realization
Customer
relationship
management

21. 1-21
Characteristics of Core Competencies
 A source of competitive advantage
 Applications in a wide variety of markets
 Difficult to imitate

22. 1-22
Challenges Facing CMO’s
 Doing more with less
 Driving new business development
 Becoming a full business partner

23. 1-23
Levels of a Marketing Plan
 Strategic
 Target marketing
decisions
 Value proposition
 Analysis of marketing
opportunities
 Tactical
 Product features
 Promotion
 Merchandising
 Pricing
 Sales channels
 Service

24. 1-24
Corporate Headquarters’ Planning Activities
Define the corporate mission
Establish SBUs
Assign resources to each SBU
Assess growth opportunities

25. 1-25
Good Mission Statements
 Focus on limited number of goals
 Stress major policies and values
 Define major competitive spheres

26. 1-26
Major Competitive Spheres
 Industry
 Products
 Competence
 Market segment
 Vertical channels
 Geographical

27. 1-27
Rubbermaid Commercial Products, Inc.
“Our vision is to be the Global Market Share
Leader 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.”

28. 1-28
Motorola
“The purpose of Motorola is to honorably
serve the needs of the community by providing
products and services of superior quality at a
fair price to our customers; to do this so as to
earn an adequate profit which is required for
the total enterprise to grow; and by doing so,
provide the opportunity for our employees and
shareholders to achieve their personal
objectives.”

29. 1-29
eBay
“We help people trade anything on earth.
We will continue to enhance the online
trading experiences of all – collectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.”

30. 1-30
Dimensions That Define A Business
Customer
groups
Technology
Customer
needs

31. 1-31
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 planning
Profitability
Efficiency

32. 1-32
Organizations
 Culture
 Policies
 Structure

33. 1-33
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?

34. 1-34
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?

35. 1-35
Goal Formulation and MBO
 Requirements for using MBO
Unit’s objectives must be hierarchical
Objectives should be quantitative
Goals should be realistic
Objectives must be consistent

36. 1-36
Porter’s Generic Strategies
 Overall cost leadership
 Differentiation
 Focus

37. 1-37
Categories of Marketing Alliances
 Product or Service Alliances
 Promotional Alliances
 Logistics Alliances
 Pricing collaborations

38. 1-38
Marketing Plan Contents
 Executive summary
 Table of contents
 Situation analysis
 Marketing strategy
 Financial projections
 Implementation controls

39. 1-39
Evaluating a Marketing Plan
 Is the plan simple?
 Is the plan specific?
 Is the plan realistic?
 Is the plan complete?

40. MARKETING MANAGEMENT
12th
edition
11
Dealing with Competition
Kotler Keller

41. 1-41
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?

42. 1-42
Figure 1.1 Five Forces Determining
Segment Structural Attractiveness
 Potential entrants
 Suppliers
 Buyers
 Industry competitors
 Substitutes

43. 1-43
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

44. 1-44
Industry Concept of Competition
 Pure monopoly
 Oligopoly
 Monopolistic competition
 Pure competition

45. 1-45
Analyzing Competitors
 Share of market
 Share of mind
 Share of heart

46. 1-46
Expanding the Total Market
 New customers
 More usage

47. 1-47
Figure 11.6 Six Types of
Defense Strategies
 Defender
 Flank
 Preemptive
 Counteroffensive
 Mobile
 Contraction

48. 1-48
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

49. 1-49
Other Competitive Strategies
 Market challengers
 Market followers
 Market nichers

50. 1-50
Market Challenger Strategies
 Define the strategic objective and
opponents
 Choose a general attack strategy
 Choose a specific attack strategy

51. 1-51
General Attack Strategies
 Frontal attack
 Flank attack
 Encirclement attack
 Bypass attack
 Guerrilla warfare

52. 1-52
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

53. 1-53
Market Follower Strategies
 Counterfeiter
 Cloner
 Imitator
 Adaptor

54. 1-54
Balancing Orientations
 Competitor-centered
 Customer-centered

55. MARKETING MANAGEMENT
12th
edition
3
Gathering Information
and Scanning the
Environment
Kotler Keller

56. 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?

57. 1-57
Chapter Questions_2
 What are the key methods for
tracking and identifying opportunities
in the macroenvironment?
 What are some important
macroenvironment developments?

58. 1-58
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?

59. 1-59
Internal Records
 Order-to-Payment Cycle
 Sales Information System
 Databases, Warehousing, Data mining
 Marketing Intelligence System

60. 1-60
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

61. 1-61
Needs and Trends
Fad
Trend
Megatrend

62. 1-62
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

63. 1-63
Environmental Forces
 Demographic
 Economic
 Socio-Cultural
 Natural
 Technological
 Political-Legal

64. 1-64
Population and Demographics
 Size
 Growth rate
 Age distribution
 Ethnic mix
 Educational
levels
 Household
patterns
 Regional
characteristics
 Movement

65. 1-65
Economic Environment
$ Purchasing Power
$ Income Distribution
$ Savings Rate
$ Debt
$ Credit Availability

66. 1-66
Types of Industrial Structures
 Industrial economies
 Industrializing economies
 Raw-material exporting economies
 Subsistence economies

67. 1-67
Social-Cultural Environment
 Views of themselves
 Views of others
 Views of organizations
 Views of society
 Views of nature
 Views of the universe

68. 1-68
Natural Environment
 Shortage of raw materials
 Increased energy costs
 Anti-pollution pressures
 Governmental protections

69. 1-69
Technological Environment
 Pace of change
 Opportunities for innovation
 Varying R&D budgets
 Increased regulation of change