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Marketing Management

Authors:
Marketing Management 12e
PHILIP KOTLER & KEVIN LANE KELLER
ISBN 0-13-145757-8
658.8—dc22
Note: all credits for contents goes to the original author.
Summarized by Wawan Setiawan (winanci@gmail.com)
Summarized by winanci@gmail.com 2
Redefining Marketing for 21st
Century
Marketing is everywhere, but tricky
It makes Marketing management difficult
because it needs continuous improvement
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The scope of marketing: What is
marketing? (1)
Marketing: meeting needs profitably
Marketing: 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
Marketing management: the art and science
of choosing target markets and getting,
keeping, and growing customers through
creating, delivering, and communicating
superior customer value.
Summarized by winanci@gmail.com 4
The scope of marketing: What is
marketing? (2)
Marketing is not only selling.
Marketing makes product/service fits customer
& sells itself ==> customer ready to buy
In the end, Marketing makes selling
unnecessary
Example: iPhone by Apple
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The scope of marketing: What is
marketing? (3)
Exchange:
at least 2 parties
each has something that might be of value for
the other
each is capable of communication & delivery.
each is free to accept or reject the exchange
offer.
each believes it is appropriate or desirable to
deal with the other party.
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The scope of marketing: What is
marketing? (4)
Transaction involves:
2 things of value
certain conditions
time & place
Transaction is not transfer (one way)
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The scope of marketing: What is
marketed?
goods
services
experiences
events
persons
places
properties
organizations
information
ideas
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The scope of marketing: Who
markets? (1)
Marketers market to Prospects
Marketers do Demand management: seek to
influence the level, timing & composition of
demand
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The scope of marketing: Who
markets? (2)
Eight demand states:
negative: dislike & avoid
nonexistent: unaware or uninterested
latent: strong need unsatisfied by existing product
declining: buy less frequently if not at all
irregular: purchases vary
full: buying all
overfull: customers demand is more than product availability
unwholesome: for product that may have undesirable social
consequences
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The scope of marketing: Who
markets? (3)
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The scope of marketing: Who
markets? (4)
Key customer markets: consumer, business,
global, and nonprofit.
Marketplace: physical
Marketspace; digital
Metamarket: a cluster of complementary P&S,
closely related in the minds of consumers,
spread across a diverse set of industries
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Digital revolution
increase in buying power
a greater variety of G&S (Goods & Services) or
P&S (Product & Services)
more information
a greater ease in interacting and placing and
receiving orders
ability to compare G&S
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Business & Marketing changes
changing technology
globalization
deregulation: greater competition & growth opportunities
privatization: increasing efficiency
customer empowerment
customization
heightened competition
industry convergence
retail transformation
disintermediation
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Company Orientation toward
Marketplace
production concept: high production efficiency, low cost &
mass distribution. Usually good developing countries
product concept: Q, performance or innovation
selling concept: aggressive selling & more promotion
efforts
marketing concept: customer-centered, "sense-and-
respond"
Note: marketing dept is not the most important but
customer is.
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New Orientation
Holistic marketing concept
everything matters
4 components: relationship marketing, integrated
marketing (4 Ps), internal marketing, and social
responsibility marketing.
4 Ps (seller) of marketing mix: Product, Price. Place,
Promotion
4 Cs (customer): customer's solution, Cost, Convenience,
Communication
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Core Concepts (1)
Needs: basic human requirements
Wants: directed to specific objects that might satisfy the
need
Demands: wants for specific products backed by an ability
to pay
5 types of needs:
1. Stated (an inexpensive car).
2. Real (a car whose operating cost, not its initial price, is low).
3. Unstated (expects good service from the dealer).
4. Delight (would like the dealer to include an onboard navigation
system).
5. Secret (to be seen by friends as a savvy consumer).
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Core Concepts (2)
target market: swhich segments present the greatest
opportunity
market offering for each chosen target market
offering: for target buyers, delivering some central
benefit(s)
brand: an offering from a known source
successful: if it delivers value & satisfaction to the target
buyer
Value: perceived tangible & intangible benefits & costs to
customers
satisfaction: judgments/outcome vs expectations
Summarized by winanci@gmail.com 18
Core Concepts (3)
Marketing channel:
communication
distribution
service: to carry out transactions with potential buyers
Supply chain: from raw materials to components to final
products that are carried to final buyers
Supply chain = value delivery system
Competition: actual & potential
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Core Concepts (4)
Marketing environment:
task environment: immediate actors involved in producing,
distributing, and promoting the offering.
broad environment: demographic, economic, physical,
technological, political-legal, social-cultural
Marketing planning: analyzing opportunities; selecting
target markets; designing strategies; developing programs;
and managing effort.
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Core Concepts (5)
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Shift in Marketing Management (1)
Marketing does Marketing ==> Everyone does Marketing
Organizing by Product units ==> by Customer segments
Making everything ==> buying more G&S from outside
using many suppliers ==> working with fewer in a
partnership
relying on old marketing positions ==> uncovering new
ones
emphasizing tangible assets ==> intangible assets
building brands through advertising ==> through
performance & integrated communications
Summarized by winanci@gmail.com 22
Shift in Marketing Management (2)
attracting customer through stores & salespeople ==>
making products available online
selling to everyone ==> being the best firm serving well-
defined target markets
focusing on profitable transactions ==> on customer
lifetime value
focus on gaining market share ==> on building customer
share
being local ==> being “glocal” (both global & local)
focusing on financial scorecard ==> on marketing
scorecard
focusing on shareholders ==> on stakeholders
Summarized by winanci@gmail.com 23
Marketing Management Tasks
developing marketing strategies & plans
capturing marketing insights
connecting with customers
building strong brands
shaping the market offerings
delivering value
communicating value
creating long-term growth
Summarized by winanci@gmail.com 24
Marketer's FAQ (1)
How to:
spot & choose the right segments?
differentiate offerings?
respond to customers who buy on price?
compete against lower-cost, lower-price
competitors?
grow business?
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Marketer's FAQ (2)
How to:
build stronger brands?
reduce the cost of customer acquisition?
keep our customers loyal for longer?
tell which customers are more important?
measure the payback for advertising, sales
promotion & PR?
improve sales force productivity?
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Marketer's FAQ (3)
How to:
establish multiple channel and yet manage
channel conflict?
get the other company depts to be more
customer oriented?
How far to go in customizing offering for each
customer?
Summarized by winanci@gmail.com 27
10 Rules of Radical Marketing (1)
CEO must own the marketing function: no
delegation
marketing department must start small and flat
and stay small and flat: not allow layers of management
between them and the market.
Face-to-face with customers: direct interaction.
Use market research cautiously: prefer grassroots
techniques
Hire only passionate missionaries
Love and respect customers as individuals, not
as numbers
Summarized by winanci@gmail.com 28
10 Rules of Radical Marketing (2)
Create a community of consumers unified by
certain brands
Rethink the marketing mix: e.g. short, targeted ad
campaigns
Celebrate common sense and compete with
larger competitors through fresh and different
marketing ideas
Be true to the brand: brand integrity & quality
Summarized by winanci@gmail.com 29
Internet Advantage
reaching worldwide
more information
speed up internal communication
2 way communication with customers &
prospects
able to send ads, coupons, etc. easily
customizing offerings based on customer
profiling
improve other processes & more savings
... Service quality is the process of rendering superior service to the customers segment of an organization. Service quality is important for customer satisfaction and retention (Kotler & Armstrong, 2008;Kotler & Keller, 2012). Thus, companies should strive to satisfy and retain their market through effective and efficient service delivery to the customers. ...
... Thus, companies should strive to satisfy and retain their market through effective and efficient service delivery to the customers. In today's competitive business environment, organizations rendering quality services to customers is a way of enhancing the firm's competitiveness by increasing and defending the companies market position in the industry (Kotler & Keller, 2012). In today's highly competitive business environment, service has increasingly played a critical role in banks' operations. ...
... This is a situation where the individual consumer or customer has comfort in consuming the firm's products and services. According to Kotler and Keller (2012) customer satisfaction could be defined as the process by which a company's products and service meet the needs and wants and requirements of the customers. Customer satisfaction most time occurs when the entire company's focus and activities are geared towards fulfilling the needs and wants, preferences and perception of the customers. ...
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... Sales promotion is the cornerstone of the marketing communication strategy of retail stores and has a combination of functions such as news, persuasion, and recall (Yildirim & Aydinb, 2012). Sales promotion is a short-term initiative that includes a set of short-run monetary and non-monetary incentives (Kotler & Keller, 2017). Kotler and Armstrong (2009) consider sales promotion a short-run tool that can stimulate buying and avoid competition. ...
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... Whereas a trademark is a registered brand or trade name, a brand name identifies a specific product or name of a company. A brand is an offering from a known source (Kotler & Keller, 2012). Because of a brand name's importance, many companies want to protect it through trademark. ...
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