Kotler Summary

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  • logo copy.tif

    Social

    Definition of

    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.

    Scope of Marketing A good marketer must be able to answer the following questions:

    Understanding Marketing Management

    Chapter 1

    What is Marketing?

    Marketing Management By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha

    SUMMARY by

    Marketing is an essential art and science that is engaged in a vast number of activities

    by both persons and organizations. It has become an increasingly vital ingredient in the

    success of a business. Good marketing is the result of careful planning and execution.

    There are two sides to marketing the formulated side and the creative side. It is

    important to lay the foundation in marketing concepts, tools, frameworks and issues of

    the formulated side while at the same time instil the real creativity and passion for

    marketing, as we shall come to see in this chapter.

    Marketing is increasingly becoming an important function in all organizations to ensure

    that demand for a product or service persists along with customer retention.

    The formal definition of marketing is, Marketing is an organizational function and a set

    of processes for creating, communicating and delivering value to customers and for

    managing customer relationship in ways that benefit the organization and its

    stakeholders.

    Some of the common entities that are marketed are goods, services, events,

    experiences, persons, places, properties, organizations, information and ideas.

    What is Marketed?

  • A marketer is someone who seeks a response, attention, purchase, vote, donation etc

    from another party called the prospect. Marketing managers are responsible for demand

    management.

    Eight demand states are possible:

    Negative demand

    Nonexistent demand

    Latent demand

    Declining demand

    Irregular demand

    Full demand

    Overfull demand

    Unwholesome demand

    The key customer markets are consumer markets, business markets, global markets,

    non-profit and governmental markets.

    Chapter 1 - Understanding Marketing Management

    Needs - state of felt deprivation for basic items such as food and clothing and

    complex needs such as for belonging. i.e. I am hungry.

    Wants - form that a human need takes as shaped by culture and individual

    personality i.e. I want a hamburger, French fries, and a soft drink.

    Demands - human wants backed by buying power. i.e. I have money to buy this

    meal.

    Target Markets are the market segments identified by the marketer which

    present the greatest opportunity.

    Value Proposition is a set of benefits that companies offer to customers to

    satisfy their needs. The intangible value proposition is made physical by as

    offering. A brand is an offering from a known source.

    Value reflects the sum of the perceived tangible intangible benefits and costs to

    customers. Satisfaction reflects a persons judgements of a products perceived

    performance.

    To reach a target market a marketer uses different marketing channels like

    communication channels, distribution channels and service channels.

    Supply chain is a longer channel stretching from raw materials to components

    to final products that are carried to final buyers.

    Who Markets?

    Core Marketing Concepts:

    The five key

    functions of a

    marketing

    manager or

    CMO are:

    Strengthening

    the brand

    Measuring

    marketing

    effectiveness

    Driving new

    product

    development

    based on

    customer needs

    Gathering

    meaningful

    customer

    insights

    Utilizing new

    marketing

    technology

  • New

    Marketing

    Realities:

    Some of the major

    societal forces that

    marketers have to

    deal with today are

    network

    information

    technology,

    globalization,

    deregulation,

    privatization,

    heightened

    competition,

    industry

    convergence,

    consumer

    resistance, retail

    transformation and

    disintermediation.

    The major marketing philosophies are:

    The Production Concept

    o Consumers favor products that are available and highly affordable.

    o Improve production and distribution.

    Product Concept

    o Consumers favor products that offer the most quality, performance, and

    innovative features.

    Selling Concept

    o Consumers will buy products only if the company promotes/ sells these

    products.

    Marketing Concept

    o Focuses on needs/ wants of target markets & delivering satisfaction better

    than competitors.

    Societal Marketing Concept

    o Focuses on needs/ wants of target markets & delivering superior value.

    Holistic Marketing Concept

    o Based on the development, design and implementation of marketing

    programs, processes and activities that recognize their breadth and

    interdependencies.

    Relationship Marketing

    o Aims to build mutually satisfying long-term relationships with key

    constituents in order to earn and retain their business.

    Chapter 1 - Understanding Marketing Management

    Company orientation towards Marketplaces:

    Marketing Management Tasks: The following are the most important marketing management tasks:

    Developing Marketing Strategies and Plans

    Capturing Marketing Insights

    Connecting with Customers

    Building Strong Brands

    Shaping the Marketing Offerings

    Delivering Value

    Communicating Value

    Creating Long-Term Growth

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    Supply

    Chain

    Many companies

    today outsource less

    critical resources if

    they can obtain

    better quality or

    lower cost. Also,

    many companies

    partner with specific

    suppliers and

    distributors to

    create a superior

    value delivery

    network, also

    known as Supply

    Chain.

    Developing Marketing

    Strategies And Plans

    Chapter 2

    The Value Delivery Process

    Marketing Management By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha

    SUMMARY by

    In this chapter, mainly the following points have been discussed

    How does marketing affect customer value?

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

    What does a marketing plan include?

    Developing the right marketing strategy over time, through discipline and a creative

    thought process can go a long way in the marketing management process. Firms must

    constantly strive to improve every aspect of their strategy and the plans to guide the

    marketing process.

    In the new view of business processes, marketing is viewed at the beginning of the

    planning stage. A smart competitor must design and deliver products for well-defined

    micro-markets and cater to their specific wants, perceptions and preferences. The Value

    Creation and Delivery Sequence can be divided into two segments of marketing:

    Strategic Marketing and Tactical Marketing.

    Core Competencies Core Competency refers to areas of special technical and production expertise, whereas

    distinctive capability describes excellence in broader business processes. Market-driven

    organizations generally excel in three distinctive capabilities: market sensing, customer

    linking and channel bonding.

  • Holistic

    Marketing

    Holistic marketing

    orientation means,

    integrating the

    value exploration,

    value creation and

    value delivery

    activities with the

    purpose of building

    long-term,

    mutually satisfying

    relationships and

    co-prosperity

    among key

    stakeholders. It

    helps manage a

    superior value

    chain that delivers

    a high level of

    product quality,

    service and speed,

    in addition to

    expanding

    customer share,

    building customer

    loyalty and

    capturing customer

    lifetime value.

    The value chain is a tool which is used for identifying ways to create more customer

    value. There are 9 strategically relevant activities 5 primary and 4 support.

    Chapter 2 - Developing Marketing Strategies And Plans

    Companies need to focus on the customer and organize to respond effectively to their

    changing needs, to be known as master marketers. The marketing plan is the central

    instrument for directing and coordinating the marketing effort. The marketing plan

    operates at two levels: strategic and tactical.

    The strategic marketing plan lays out the target markets and the value

    proposition the firm will offer, based on an analysis of the best market

    opportunities.

    The tactical marketing plan specifies the marketing tactics, including product

    features, promotion, merchandising, pricing, sales channels and service.

    A firm must coordinate all the department activities to conduct its core business

    processes, through cross-functional teams

    Market-sensing process

    New-o