MARKETING MANAGEMENT

12th edition
1
Defining Marketing
for the 21st Century

Kotler Keller
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?

1-2
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.

1-3
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.

1-4
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.

1-5
What is Marketed?
 Goods  Places
 Services  Properties
 Events  Organizations
 Experiences  Information
 Persons  Ideas

1-6
Demand States
 Negative  Irregular
 Nonexistent  Unwholesome
 Latent  Full
 Declining  Overfull

1-7
Key Customer Markets
 Consumer markets
 Business markets
 Global markets
 Nonprofit/Government markets

1-8
The marketplace isn’t what it used to be….

 Changing technology  Empowerment

 Globalization  Customization
 Deregulation  Convergence
 Privatization  Disintermediation

1-9
Company Orientations
 Production
 Product
 Selling
 Marketing

1-10
Marketing Mix and the Customer

Four Ps Four Cs
 Product  Customer solution
 Price  Customer cost
 Place  Convenience
 Promotion  Communication

1-11
Core Concepts
 Needs, wants, and  Marketing channels
demands  Supply chain
 Target markets,  Competition
positioning,  Marketing
segmentation environment
 Offerings and brands  Marketing planning
 Value and
satisfaction

1-12
I want it, I need it…..

5 Types of Needs
 Stated needs
 Real needs
 Unstated needs
 Delight needs
 Secret needs

1-13
Marketing Management Tasks
 Developing marketing  Shaping market
strategies offerings
 Capturing marketing  Delivering value
insights  Communicating
 Connecting with value
customers
 Creating long-term
 Building strong brands
growth

1-14
 MARKETING MANAGEMENT
12th edition
2
Developing Marketing
Strategies and Plans

Kotler Keller
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?

1-16
Improving Value Delivery the
Japanese Way
 0 customer feedback time
 0 product improvement time
 0 purchasing time
 0 setup time
 0 defects

1-17
3 V’s Approach to Marketing
 Define the value segment
 Define the value proposition
 Define the value network

1-18
Benchmarks

Organizational Competitor
costs costs
and and
performance performance
measures measures

1-19
Core Business Processes
Customer
Market
relationship
sensing
management

New offering Fulfillment

realization management

Customer
acquisition

1-20
 Characteristics of Core Competencies

 A source of competitive advantage

 Applications in a wide variety of markets
 Difficult to imitate

1-21
Challenges Facing CMO’s
 Doing more with less
 Driving new business development
 Becoming a full business partner

1-22
Levels of a Marketing Plan

 Strategic  Tactical
 Target marketing  Product features
decisions  Promotion
 Value proposition  Merchandising
 Analysis of marketing  Pricing
opportunities  Sales channels
 Service

1-23
Corporate Headquarters’ Planning Activities

Define the corporate mission

Establish SBUs
Assign resources to each SBU
Assess growth opportunities

1-24
Good Mission Statements
 Focus on limited number of goals
 Stress major policies and values
 Define major competitive spheres

1-25
Major Competitive Spheres
 Industry  Market segment
 Products  Vertical channels
 Competence  Geographical

1-26
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.”
1-27
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.”

1-28
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.”

1-29
Dimensions That Define A Business

Customer
groups

Customer
Technology
needs

1-30
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

1-31
Organizations
 Culture
 Policies
 Structure

1-32
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?

1-33
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?

1-34
Goal Formulation and MBO
 Requirements for using MBO
 Unit’sobjectives must be hierarchical
 Objectives should be quantitative
 Goals should be realistic
 Objectives must be consistent

1-35
Porter’s Generic Strategies
 Overall cost leadership
 Differentiation
 Focus

1-36
Categories of Marketing Alliances

 Product or Service Alliances

 Promotional Alliances
 Logistics Alliances
 Pricing collaborations

1-37
Marketing Plan Contents
 Executive summary
 Table of contents
 Situation analysis
 Marketing strategy
 Financial projections
 Implementation controls

1-38
Evaluating a Marketing Plan

 Is the plan simple?

 Is the plan specific?
 Is the plan realistic?
 Is the plan complete?

1-39
 MARKETING MANAGEMENT
12th edition
11
Dealing with Competition

Kotler Keller
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?

1-41
Figure 1.1 Five Forces Determining
Segment Structural Attractiveness

 Potential entrants
 Suppliers
 Buyers
 Industry competitors
 Substitutes

1-42
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

1-43
Industry Concept of Competition

 Pure monopoly
 Oligopoly
 Monopolistic competition
 Pure competition

1-44
Analyzing Competitors
 Share of market
 Share of mind
 Share of heart

1-45
Expanding the Total Market
 New customers
 More usage

1-46
Figure 11.6 Six Types of
Defense Strategies
 Defender
 Flank
 Preemptive
 Counteroffensive
 Mobile
 Contraction

1-47
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

1-48
Other Competitive Strategies
 Market challengers
 Market followers
 Market nichers

1-49
Market Challenger Strategies
 Define the strategic objective and
opponents
 Choose a general attack strategy
 Choose a specific attack strategy

1-50
General Attack Strategies
 Frontal attack
 Flank attack
 Encirclement attack
 Bypass attack
 Guerrilla warfare

1-51
Specific Attack Strategies

 Price discounts  Product innovation

 Lower-priced goods  Improved services
 Value-priced goods  Distribution innovation
 Prestige goods  Manufacturing-cost
 Product proliferation reduction
 Intensive advertising
promotion

1-52
Market Follower Strategies
 Counterfeiter
 Cloner
 Imitator
 Adaptor

1-53
Balancing Orientations
 Competitor-centered
 Customer-centered

1-54
 MARKETING MANAGEMENT
12th edition
3
Gathering Information
and Scanning the

Environment

Kotler Keller
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?

1-56
Chapter Questions_2

 What are the key methods for

tracking and identifying opportunities
in the macroenvironment?
 What are some important
macroenvironment developments?

1-57
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?

1-58
Internal Records
 Order-to-Payment Cycle
 Sales Information System
 Databases, Warehousing, Data mining
 Marketing Intelligence System

1-59
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

1-60
Needs and Trends

Fad

Trend

Megatrend

1-61
 10 Mega trends Shaping the
Consumer Landscape
 Aging boomers  Increased immigration
 Delayed retirement  Rising Hispanic
 Changing nature of influence
work  Shifting birth trends
 Greater educational  Widening geographic
attainment differences
 Labor shortages  Changing age
structure

1-62
Environmental Forces
 Demographic
 Economic
 Socio-Cultural
 Natural
 Technological
 Political-Legal

1-63
Population and Demographics
 Size  Household
 Growth rate patterns
 Age distribution  Regional

 Ethnic mix characteristics

 Movement
 Educational
levels

1-64
Economic Environment

$ Purchasing Power
$ Income Distribution
$ Savings Rate
$ Debt
$ Credit Availability

1-65
Types of Industrial Structures
 Industrial economies
 Industrializing economies
 Raw-material exporting economies
 Subsistence economies

1-66
Social-Cultural Environment
 Views of themselves
 Views of others
 Views of organizations
 Views of society
 Views of nature
 Views of the universe

1-67
Natural Environment
 Shortage of raw materials
 Increased energy costs
 Anti-pollution pressures
 Governmental protections

1-68
Technological Environment
 Pace of change
 Opportunities for innovation
 Varying R&D budgets
 Increased regulation of change

1-69