Kotler Summary

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Kotler Summary

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<ul><li><p>logo copy.tif </p><p>Social </p><p>Definition of </p><p>Marketing </p><p>Marketing is a </p><p>societal process by </p><p>which individuals </p><p>and groups obtain </p><p>what they need and </p><p>want through </p><p>creating, offering </p><p>and freely </p><p>exchanging </p><p>products and </p><p>services of value </p><p>with others. </p><p>Scope of Marketing A good marketer must be able to answer the following questions: </p><p>Understanding Marketing Management </p><p>Chapter 1 </p><p>What is Marketing? </p><p>Marketing Management By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha </p><p>SUMMARY by </p><p>Marketing is an essential art and science that is engaged in a vast number of activities </p><p>by both persons and organizations. It has become an increasingly vital ingredient in the </p><p>success of a business. Good marketing is the result of careful planning and execution. </p><p>There are two sides to marketing the formulated side and the creative side. It is </p><p>important to lay the foundation in marketing concepts, tools, frameworks and issues of </p><p>the formulated side while at the same time instil the real creativity and passion for </p><p>marketing, as we shall come to see in this chapter. </p><p>Marketing is increasingly becoming an important function in all organizations to ensure </p><p>that demand for a product or service persists along with customer retention. </p><p>The formal definition of marketing is, Marketing is an organizational function and a set </p><p>of processes for creating, communicating and delivering value to customers and for </p><p>managing customer relationship in ways that benefit the organization and its </p><p>stakeholders. </p><p>Some of the common entities that are marketed are goods, services, events, </p><p>experiences, persons, places, properties, organizations, information and ideas. </p><p>What is Marketed? </p></li><li><p>A marketer is someone who seeks a response, attention, purchase, vote, donation etc </p><p>from another party called the prospect. Marketing managers are responsible for demand </p><p>management. </p><p>Eight demand states are possible: </p><p> Negative demand </p><p> Nonexistent demand </p><p> Latent demand </p><p> Declining demand </p><p> Irregular demand </p><p> Full demand </p><p> Overfull demand </p><p> Unwholesome demand </p><p>The key customer markets are consumer markets, business markets, global markets, </p><p>non-profit and governmental markets. </p><p>Chapter 1 - Understanding Marketing Management </p><p> Needs - state of felt deprivation for basic items such as food and clothing and </p><p>complex needs such as for belonging. i.e. I am hungry. </p><p> Wants - form that a human need takes as shaped by culture and individual </p><p>personality i.e. I want a hamburger, French fries, and a soft drink. </p><p> Demands - human wants backed by buying power. i.e. I have money to buy this </p><p>meal. </p><p> Target Markets are the market segments identified by the marketer which </p><p>present the greatest opportunity. </p><p> Value Proposition is a set of benefits that companies offer to customers to </p><p>satisfy their needs. The intangible value proposition is made physical by as </p><p>offering. A brand is an offering from a known source. </p><p> Value reflects the sum of the perceived tangible intangible benefits and costs to </p><p>customers. Satisfaction reflects a persons judgements of a products perceived </p><p>performance. </p><p> To reach a target market a marketer uses different marketing channels like </p><p>communication channels, distribution channels and service channels. </p><p> Supply chain is a longer channel stretching from raw materials to components </p><p>to final products that are carried to final buyers. </p><p>Who Markets? </p><p>Core Marketing Concepts: </p><p>The five key </p><p>functions of a </p><p>marketing </p><p>manager or </p><p>CMO are: </p><p> Strengthening </p><p>the brand </p><p> Measuring </p><p>marketing </p><p>effectiveness </p><p> Driving new </p><p>product </p><p>development </p><p>based on </p><p>customer needs </p><p> Gathering </p><p>meaningful </p><p>customer </p><p>insights </p><p> Utilizing new </p><p>marketing </p><p>technology </p></li><li><p> New </p><p>Marketing </p><p>Realities: </p><p>Some of the major </p><p>societal forces that </p><p>marketers have to </p><p>deal with today are </p><p>network </p><p>information </p><p>technology, </p><p>globalization, </p><p>deregulation, </p><p>privatization, </p><p>heightened </p><p>competition, </p><p>industry </p><p>convergence, </p><p>consumer </p><p>resistance, retail </p><p>transformation and </p><p>disintermediation. </p><p>The major marketing philosophies are: </p><p> The Production Concept </p><p>o Consumers favor products that are available and highly affordable. </p><p>o Improve production and distribution. </p><p> Product Concept </p><p>o Consumers favor products that offer the most quality, performance, and </p><p>innovative features. </p><p> Selling Concept </p><p>o Consumers will buy products only if the company promotes/ sells these </p><p>products. </p><p> Marketing Concept </p><p>o Focuses on needs/ wants of target markets &amp; delivering satisfaction better </p><p>than competitors. </p><p> Societal Marketing Concept </p><p>o Focuses on needs/ wants of target markets &amp; delivering superior value. </p><p> Holistic Marketing Concept </p><p>o Based on the development, design and implementation of marketing </p><p>programs, processes and activities that recognize their breadth and </p><p>interdependencies. </p><p> Relationship Marketing </p><p>o Aims to build mutually satisfying long-term relationships with key </p><p>constituents in order to earn and retain their business. </p><p>Chapter 1 - Understanding Marketing Management </p><p>Company orientation towards Marketplaces: </p><p>Marketing Management Tasks: The following are the most important marketing management tasks: </p><p> Developing Marketing Strategies and Plans </p><p> Capturing Marketing Insights </p><p> Connecting with Customers </p><p> Building Strong Brands </p><p> Shaping the Marketing Offerings </p><p> Delivering Value </p><p> Communicating Value </p><p> Creating Long-Term Growth </p></li><li><p>logo copy.tif </p><p>Supply </p><p>Chain </p><p>Many companies </p><p>today outsource less </p><p>critical resources if </p><p>they can obtain </p><p>better quality or </p><p>lower cost. Also, </p><p>many companies </p><p>partner with specific </p><p>suppliers and </p><p>distributors to </p><p>create a superior </p><p>value delivery </p><p>network, also </p><p>known as Supply </p><p>Chain. </p><p>Developing Marketing </p><p>Strategies And Plans </p><p>Chapter 2 </p><p>The Value Delivery Process </p><p>Marketing Management By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha </p><p>SUMMARY by </p><p>In this chapter, mainly the following points have been discussed </p><p> How does marketing affect customer value? </p><p> How is strategic planning carried out at different levels of the organization? </p><p> What does a marketing plan include? </p><p>Developing the right marketing strategy over time, through discipline and a creative </p><p>thought process can go a long way in the marketing management process. Firms must </p><p>constantly strive to improve every aspect of their strategy and the plans to guide the </p><p>marketing process. </p><p>In the new view of business processes, marketing is viewed at the beginning of the </p><p>planning stage. A smart competitor must design and deliver products for well-defined </p><p>micro-markets and cater to their specific wants, perceptions and preferences. The Value </p><p>Creation and Delivery Sequence can be divided into two segments of marketing: </p><p>Strategic Marketing and Tactical Marketing. </p><p>Core Competencies Core Competency refers to areas of special technical and production expertise, whereas </p><p>distinctive capability describes excellence in broader business processes. Market-driven </p><p>organizations generally excel in three distinctive capabilities: market sensing, customer </p><p>linking and channel bonding. </p></li><li><p>Holistic </p><p>Marketing </p><p>Holistic marketing </p><p>orientation means, </p><p>integrating the </p><p>value exploration, </p><p>value creation and </p><p>value delivery </p><p>activities with the </p><p>purpose of building </p><p>long-term, </p><p>mutually satisfying </p><p>relationships and </p><p>co-prosperity </p><p>among key </p><p>stakeholders. It </p><p>helps manage a </p><p>superior value </p><p>chain that delivers </p><p>a high level of </p><p>product quality, </p><p>service and speed, </p><p>in addition to </p><p>expanding </p><p>customer share, </p><p>building customer </p><p>loyalty and </p><p>capturing customer </p><p>lifetime value. </p><p>The value chain is a tool which is used for identifying ways to create more customer </p><p>value. There are 9 strategically relevant activities 5 primary and 4 support. </p><p>Chapter 2 - Developing Marketing Strategies And Plans </p><p>Companies need to focus on the customer and organize to respond effectively to their </p><p>changing needs, to be known as master marketers. The marketing plan is the central </p><p>instrument for directing and coordinating the marketing effort. The marketing plan </p><p>operates at two levels: strategic and tactical. </p><p> The strategic marketing plan lays out the target markets and the value </p><p>proposition the firm will offer, based on an analysis of the best market </p><p>opportunities. </p><p> The tactical marketing plan specifies the marketing tactics, including product </p><p>features, promotion, merchandising, pricing, sales channels and service. </p><p>A firm must coordinate all the department activities to conduct its core business </p><p>processes, through cross-functional teams </p><p> Market-sensing process </p><p> New-offering realization process </p><p> Customer Acquisition process </p><p> Customer Relationship Management Process </p><p> Fulfillment Management Process </p><p>Strategic Planning </p><p>Value Chain </p><p>Corporate Headquarters </p><p>All corporate headquarters undertake four planning activities </p><p> Defining the corporate mission </p><p> Establishing strategic business units </p><p> Assigning resources to each Strategic Business Unit </p><p> Assessing growth opportunities </p><p>Innovation in marketing is critical. Senior management should identify and encourage </p><p>fresh ideas from a youth perspective, from people new to the field and organization, to </p><p>gain an understanding and a new approach to marketing. </p></li><li><p> The best Mission Statement reflects a vision, an almost impossible dream that provides </p><p>a direction for the company for the next 10 or 20 years. A good mission statement </p><p>focuses on limited number of goals, links the companys policies and values and gives a </p><p>long term view. It is as short, relevant and meaningful as possible. </p><p>Chapter 2 - Developing Marketing Strategies And Plans </p><p>Mission Statement </p><p>Business Unit Strategic Planning </p><p>The Business Unit Strategic Planning process consists of the following steps </p><p>1. The Business Mission: Each business unit needs to define its specific mission </p><p>within the broader company mission. </p><p>2. SWOT Analysis: The overall analysis of a companys Strengths, Weaknesses, </p><p>Opportunities and Threats is called SWOT analysis. It is a way of monitoring the </p><p>external and internal marketing environment. </p><p>To evaluate opportunities, companies can use Market Opportunity Analysis. </p><p>3. Goal Formulation: Developing specific goals for a short term is known as Goal </p><p>Formulation. They are specific with respect to magnitude and time. Goals must </p><p>be consistent and realistic and could be a mix of various objectives. </p><p>4. Strategy Formulation: Strategy is a game plan for achieving the goals. It consists </p><p>of a Marketing Strategy, Technology Strategy and a Sourcing Strategy. </p><p>5. Program Formulation: The unit must plan programs in accordance with its goals </p><p>and strategy and thus work upon the various departments, to strengthen them </p><p>and integrate all of them together. </p><p>6. Implementation: Even a great marketing strategy can be sabotaged by a poor </p><p>implementation. It must coordinate its tasks to implement its plan properly. </p><p>These tasks must be in line with the interests of the stakeholders as well. </p><p>7. Feedback and Control: The key to organizational health is willingness to </p><p>examine the changing environment and adopt new goals and behaviors. In the </p><p>rapidly changing market environment, even large organizations which are </p><p>subject to inertia can be changed through strong leadership. </p><p>Strategic </p><p>Business Unit </p><p>A Strategic </p><p>Business Unit is a </p><p>single business (or </p><p>a collection of </p><p>similar businesses) </p><p>that can be </p><p>planned </p><p>separately from </p><p>the rest of the </p><p>company. By </p><p>identifying the </p><p>companys SBUs, it </p><p>is easy to develop </p><p>separate strategies </p><p>and assign </p><p>appropriate </p><p>funding. </p></li><li><p>logo copy.tif </p><p>MIS </p><p>(Marketing </p><p>Information </p><p>System) </p><p> Consists of people, </p><p>equipment and </p><p>procedures, to </p><p>gather, sort, </p><p>analyze, evaluate </p><p>and distribute </p><p>needed, timely and </p><p>accurate </p><p>information to </p><p>marketers. </p><p>Capturing Marketing insights </p><p>and Spotting Market Trends </p><p>Chapter 3 </p><p>MIS (Marketing Information System) </p><p>Marketing Management By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha </p><p>SUMMARY by </p><p>To provide insight into an inspiration for marketing decision making, companies must </p><p>possess comprehensive, up-to-date information about macro trends as well as micro </p><p>trends particular to their business. This chapter deals with various modes of obtaining </p><p>this information and also looks into the major macroeconomic forces that affect </p><p>marketing decisions. </p><p>MIS can provide data e.g. Swiss eat most chocolates, Greeks eat most cheese. It relies </p><p>on internal company records, marketing intelligence activities and Market Research. </p><p>MIS provides information on market happenings and changes in environment. Purposes </p><p>of MIS have been noted below. </p><p> Train the sales force for intelligence gathering by observing competitors </p><p>activities and listening to customer comments. </p><p> Motivate retailers and distributors to pass intelligence. E.g. mystery shoppers to </p><p>identify customer treatment and possible flaws. </p><p> Network externally using competitors annual reports, talking with their </p><p>retailers, distributors and employees, attending shareholder meetings. It should </p><p>be done ethically and legally. </p><p> Use government sources (Census, NSSO reports) or purchase data from outside </p><p>suppliers (AC-Nielsen, etc) </p><p> Create a panel of largest, sophisticated and important customers for feedback. </p><p> Use online forums, sites offering customer and expert reviews, Customer </p><p>compliant sites, </p></li><li><p>Analyzing the </p><p>Macro </p><p>Environment </p><p>Fad </p><p>Unpredictable, </p><p>short-lived, without </p><p>any economic or </p><p>social significance </p><p>Trend - </p><p>Sequence of events </p><p>that have </p><p>momentum and </p><p>durability, reveals </p><p>the future. </p><p>Megatrend </p><p>Large social and </p><p>economic influence, </p><p>slow in formation </p><p>but has lasting </p><p>effect. </p><p>Demographic 16.7% of World population in India; Male to Female ratio of 933:1000 </p><p>Population Age mix : median age of 23.8 years, 34% b/w 12 and 25yrs, 24% b/w 25 and </p><p>34 years </p><p>Literacy level: 65.38% literate, 75.8% males and 54.16% females, 76% literacy between </p><p>15-24yrs age group, 64.5% literacy between 25-34yrs age group. </p><p> Economic Purchasing Power depends on income, savings, prices, credit availability. Indias GDP is </p><p>$1.2 trillion, per capital income of $3100 </p><p>Income distribution: 77.7% of urban households have income up to Rs3000/month while </p><p>only 2.1% have income more than Rs 10,000/month. </p><p>Categories of Indian consumers: Destitute ( less than Rs16,000 annually, inactive </p><p>participants in market exchange), Aspirants ( Rs 16,000 to Rs22,000, new entrants in </p><p>consumption system), Climbers, (Rs 22,000 to Rs 45,000, have desire and willingness to </p><p>buy but has limited cash), Consuming Class ( Rs 45, 000 to Rs 2,15,000, majority have </p><p>money and are willing to pay), Rich ( more than Rs 2,15 000, have money and own a </p><p>variety of products). </p><p>Trend shows increasing % of Consumers and Climbers while a decreasing % of Destitute </p><p>and Aspirants. </p><p>Social-Cultural Society shapes beliefs, values, demands, and requirements. It affects dress codes, food </p><p>habits, brand preferences. Trend shows an increasing role of children on purchasing </p><p>decisions e.g. bicycles, comput...</p></li></ul>