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.
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1-5
What is Marketed?
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Goods
Services
Events
Experiences
Persons
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Places
Properties
Organizations
Information
Ideas
1-6
Demand States
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Negative
Nonexistent
Latent
Declining
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Irregular
Unwholesome
Full
Overfull
1-7
Key Customer Markets
Consumer markets
 Business markets
 Global markets
 Nonprofit/Government markets
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1-8
The marketplace isn’t what it used to be….
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Changing technology
Globalization
Deregulation
Privatization
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Empowerment
Customization
Convergence
Disintermediation
1-9
Company Orientations
Production
 Product
 Selling
 Marketing

1-10
Marketing Mix and the Customer
Four Ps
 Product
 Price
 Place
 Promotion
Four Cs
 Customer solution
 Customer cost
 Convenience
 Communication
1-11
Core Concepts
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Needs, wants, and
demands
Target markets,
positioning,
segmentation
Offerings and brands
Value and
satisfaction
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Marketing channels
Supply chain
Competition
Marketing
environment
Marketing planning
1-12
I want it, I need it…..
5 Types of Needs
Stated needs
 Real needs
 Unstated needs
 Delight needs
 Secret needs
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1-13
Marketing Management Tasks
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Developing
marketing strategies
Capturing marketing
insights
Connecting with
customers
Building strong
brands
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Shaping market
offerings
Delivering value
Communicating
value
Creating long-term
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
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1-18
Benchmarks
Organizational
costs
and
performance
measures
Competitor
costs
and
performance
measures
1-19
Core Business Processes
Market
sensing
Customer
relationship
management
New offering
realization
Fulfillment
management
Customer
acquisition
1-20
Characteristics of Core Competencies
A source of competitive advantage
 Applications in a wide variety of markets
 Difficult to imitate
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1-21
Challenges Facing CMO’s
Doing more with less
 Driving new business development
 Becoming a full business partner
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1-22
Levels of a Marketing Plan

Strategic
 Target
marketing
decisions
 Value proposition
 Analysis of marketing
opportunities
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Tactical
 Product
features
 Promotion
 Merchandising
 Pricing
 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
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1-25
Major Competitive Spheres
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Industry
Products
Competence
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Market segment
Vertical channels
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, costeffective 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
needs
Technology
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?
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1-34
Goal Formulation and MBO
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Requirements for using MBO
 Unit’s
objectives 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
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1-36
Categories of Marketing Alliances
Product or Service Alliances
 Promotional Alliances
 Logistics Alliances
 Pricing collaborations
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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
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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
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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
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1-43
Industry Concept of Competition
Pure monopoly
 Oligopoly
 Monopolistic competition
 Pure competition
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1-44
Analyzing Competitors
Share of market
 Share of mind
 Share of heart
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1-45
Expanding the Total Market
New customers
 More usage
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1-46
Figure 11.6 Six Types of
Defense Strategies
Defender
 Flank
 Preemptive
 Counteroffensive
 Mobile
 Contraction
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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
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1-48
Other Competitive Strategies
Market challengers
 Market followers
 Market nichers
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1-49
Market Challenger Strategies
Define the strategic objective and
opponents
 Choose a general attack strategy
 Choose a specific attack strategy
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1-50
General Attack Strategies
Frontal attack
 Flank attack
 Encirclement attack
 Bypass attack
 Guerrilla warfare
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1-51
Specific Attack Strategies
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Price discounts
Lower-priced goods
Value-priced goods
Prestige goods
Product proliferation
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Product innovation
Improved services
Distribution innovation
Manufacturing-cost
reduction
Intensive advertising
promotion
1-52
Market Follower Strategies
Counterfeiter
 Cloner
 Imitator
 Adaptor
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1-53
Balancing Orientations
Competitor-centered
 Customer-centered
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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
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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
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1-59
Steps to Improve Marketing Intelligence
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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 Megatrends Shaping the
Consumer Landscape
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Aging boomers
Delayed retirement
Changing nature of
work
Greater educational
attainment
Labor shortages
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Increased immigration
Rising Hispanic
influence
Shifting birth trends
Widening geographic
differences
Changing age
structure
1-62
Environmental Forces
Demographic
 Economic
 Socio-Cultural
 Natural
 Technological
 Political-Legal
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1-63
Population and Demographics
Size
 Growth rate
 Age distribution
 Ethnic mix
 Educational
levels
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Household
patterns
 Regional
characteristics
 Movement
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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
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1-66
Social-Cultural Environment
Views of themselves
 Views of others
 Views of organizations
 Views of society
 Views of nature
 Views of the universe
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1-67
Natural Environment
Shortage of raw materials
 Increased energy costs
 Anti-pollution pressures
 Governmental protections
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1-68
Technological Environment
Pace of change
 Opportunities for innovation
 Varying R&D budgets
 Increased regulation of change
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1-69