Marketing Management Notes Philip Kotler

Marketing management notes

1. Meaning of marketing Product oriented definition: American marketing association “the performance of business activities that direct the flow of goods and services through producers to consumers or users.” Limitations: Exclusion of non- economic activities e.g. Population control, lack of consumer orientation, Lack of emphasis on after sale services.

2. Consumer oriented definition Cundiff & still “marketing is the business process by which products are matched with the markets and through which transfer of ownership are effected” American marketing association “ marketing is the process of planning and executing the conception, pricing, promotion, distribution of ideas, goods and services to create exchange that satisfy the individual and organizational goals”

3. System oriented Stanton “marketing is the total system of interacting business activities designed to plan, price, promote and distribute want satisfying products to target markets to achieve the organizational objectives”

4. Philip kotler “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others” Essence is the generation of value to customers and marketers.

5. Nature of marketing Is consumer oriented Starts and ends with the consumer Modern marketing precedes and succeeds production Guided by the element of business Is science as well as an art Is a system Exchange process is the essence of marketing Is goal oriented

6. Evolution of marketing The evolution of commerce and industry has been a gradual process. Initial stages of developments include Household economy (self- sufficient) Barter system (exchange of goods for goods) Village economy (agriculture became main occupation) Rise of Entrepreneurship

7. Evolution of marketing Industrial revolution in the 18 th &19 th century Invention of spinning genny by James Hargreaves, water frame by Richard Further invention and innovation in designing machinery for textiles, coal mining, steam engines, development in the means of transport, rise of chemical industry, etc Information revolution

8. Philip kotler’s Scope of marketing Marketers are skilled in stimulating for demand for company’s products, but this is too limited a view of the tasks marketers perform. They seek to influence the level, timing, composition of demand. Marketers are involved in 10 types of entities: goods, services, experiences, events, persons, place, properties, organizations, information, ideas

9. S cope Goods are not only marketed by companies but thanks to internet even individuals can market goods. E bay is worlds largest person to person online trading community It offers efficient one- to one trading in an auction format on the web.

10. Scope Services e.g. insurance Experience ( experimental marketing) try the product or money back Events: promoting events like sports e.g. Pepsi- change the game ( football) Persons : celebrity marketing is a major business SRk is a brand Place e.g . Australia, Malaysia Properties real estate, financial property including bonds& stocks

11. scope Organizations : some organizations build a strong, favorable image in minds of target market. e.g. reliance services Philips uses the tag “ lets make things better amity university. Information : Ideas : e.g. say no to drugs take the stairs save energy.

12. scope – a different approach Function of exchange Buying and assembling Selling and dividing Function of physical supply Transportation Storage or warehousing Facilitating functions Financing Standardization or grading Market information Risk taking

13. Marketing myopia( product concept) Understood as organizations which concentrate on one line of product rather than looking at the want that they a here to satisfy . For instance coca-cola focused on its soft drink business missing the market for coffee- bars and fresh juice bars that eventually impinged on its soft drink business. Mc Donald’s is in danger of over focusing on burgers while other diners are turning to sandwiches, pizzas, etc.. These organizations are looking into the mirror when they should be looking outside the window.

14. Importance of marketing Fulfills the needs of customers Customer satisfaction and loyalty Economic development Firm, Time, place, possession utilities

15. Selling concept Holds that consumers & businesses, if left alone, will ordinarily not buy enough of products. This concept assumes that consumers show a buying inertia or resistance and must be coaxed into buying. This concept is practiced aggressively with unsought goods, that buyers normally do not buy e.g. encyclopedias, political party selling candidates Their aim is to sell what they make rather than make what the market wants.

16. Marketing concept Emerged in 1950’s Instead of product-centered, make and sell, we shift to consumer centered, sense and respond philosophy The job is not to find right customers for your product, but the right product for your customers. Some punch line You’re the boss ( United Airlines) Putting people first ( British Airways)

17. Distinction a) Selling concept Starting point focus means ends Factory product selling and promoting profits through sales Target market customer needs integrated marketing profit through customer satisfaction b) Marketing concept

18. Societal marketing concept Whether customers needs and wants should get priority over society’s concern for environment, poverty, social overheads, etc? Do excellent companies care more for the society or customers? Experts are of the view that marketing concept side steps the potential conflict among customer wants & interest and long term social welfare.

19. Instances A fast food hamburger firm offers tasty but unhealthy food. Consumers prefer soft drink tetra packs (e.g. frooti, plastic bottle- coke, pepsi ) Thus, societal marketing concept holds that the firm’s task is to determine the needs, wants and interest of the target markets and deliver desired satisfaction in such a way that it preserves and enhances the customer’s and society’s well being.

20. Meta marketing Meta market describes a cluster of complementary products and services that are closely related in the minds of the consumer but are spread across a diverse set of industries. The automobile meta market consist of automobile manufacturer, mechanics, spare parts dealers, service shops, auto magazine, auto sites on internet, new and used car dealers, insurance companies, financing companies.

21. Best example Edmunds ( www.edmunds.com ), is a website where a car buyer can find the stated features and prices of different automobiles and easily click to other sites to search for the lowest price dealer, for financing for car accessories, and for used cars at bargain prices. Metamediaries can also serve other meta markets such as home ownership market, parenting and baby care and weeding market.

22. Production oriented Assumption : consumer will buy those goods that are inexpensive & readily available. Marketers approach : high product efficiency, mass production, wide distribution, and low cost Suitability : developing nations, markets with wide expansion scope

23. Product oriented Assumption : consumer will favor products with high quality, performance & innovative features Marketers approach : make superior product and improve it overtime, result in marketing myopia- given by Theodore Levitt (love your customer and not product) Failed product e.g. vacuum cleaner Suitability : monopoly market for a product in maturity stage in product life cycle.

24. Selling orientation Assumption : consumers if left alone will not buy the product, thus there is a need to inform and persuade him Marketer’s approach : hard/ aggressive selling (focus on 4 th P- promotion) Suitability : unsought product with (-)ive demand

25. Marketing orientation Assumption : key of achieving organizational goals lies in the company being more effective than its competitors in creating, delivering and communicating superior consumer value to its chosen target market. Marketer’s approach : love customers, not the market, opposite of selling, outside-in-approach, sense and respond Suitability : all kinds of market

26. 4 pillars in marketing orientation Target market Customer needs - stated real and unstated, delight and secret needs, responsive mkting, anticipative mkting, creative mkting. Integrated marketing - integrating both marketing and managerial functions Profitability

27. Customer orientation Assumption : customer is the king, therefore focus on individual customer needs Marketer’s approach : one to one market integration and value chain to earn profit through customer loyalty and life time value Suitability : unique/ innovation and high value products with limited demand, introductory stage on PLC.

28. Market environment According to Philip kotler “ marketing environment refers to the external factors and forces that affect the company’s ability to develop and maintain successful transactions and relationships with its target customers ” Marketing environment is bifurcated into two parts Micro environment Macro environment

29. Micro environment It refers to the factors and forces in the immediate environment which affect the company’s ability to serve its market. They include the suppliers, market intermediaries, customers, competitors and public.