1. MARKETING MANAGEMENT 12th edition
Defining Marketing
for the 21st Century
Kotler Keller

2. 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?

3. 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.

4. 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.

5. 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.

6. What is Marketed? Goods Services Events Experiences Persons Places
Properties
Organizations
Information
Ideas

7. Demand States Negative Nonexistent Latent Declining Irregular
Unwholesome
Full
Overfull

8. Key Customer Markets Consumer markets Business markets Global markets
Nonprofit/Government markets

9. The marketplace isn’t what it used to be….
Changing technology
Globalization
Deregulation
Privatization
Empowerment
Customization
Convergence
Disintermediation

10. Company Orientations
Production
Product
Selling
Marketing

11. Marketing Mix and the Customer
Four Ps
Product
Price
Place
Promotion
Four Cs
Customer solution
Customer cost
Convenience
Communication

12. Core Concepts Needs, wants, and demands
Target markets, positioning, segmentation
Offerings and brands
Value and satisfaction
Marketing channels
Supply chain
Competition
Marketing environment
Marketing planning

13. I want it, I need it….. 5 Types of Needs Stated needs Real needs
Unstated needs
Delight needs
Secret needs

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

15. MARKETING MANAGEMENT 12th edition
Developing Marketing
Strategies and Plans
Kotler Keller

16. 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?

17. Improving Value Delivery the Japanese Way
0 customer feedback time
0 product improvement time
0 purchasing time
0 setup time
0 defects

18. 3 V’s Approach to Marketing
Define the value segment
Define the value proposition
Define the value network

19. Benchmarks Organizational costs and performance measures Competitor

20. Core Business Processes
Market
sensing
Customer
relationship
management
New offering
realization
Fulfillment
management
Customer
acquisition

21. Characteristics of Core Competencies
A source of competitive advantage
Applications in a wide variety of markets
Difficult to imitate

22. Challenges Facing CMO’s
Doing more with less
Driving new business development
Becoming a full business partner

23. Levels of a Marketing Plan
Strategic
Target marketing decisions
Value proposition
Analysis of marketing opportunities
Tactical
Product features
Promotion
Merchandising
Pricing
Sales channels
Service

24. Corporate Headquarters’ Planning Activities
Define the corporate mission
Establish SBUs
Assign resources to each SBU
Assess growth opportunities

25. Good Mission Statements
Focus on limited number of goals
Stress major policies and values
Define major competitive spheres

26. Major Competitive Spheres
Industry
Products
Competence
Market segment
Vertical channels
Geographical

27. 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.”

28. “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.”

29. 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.”

30. Dimensions That Define A Business
Customer
groups
Customer
needs
Technology

31. 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

32. Organizations
Culture
Policies
Structure

33. 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?

34. 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?

35. Goal Formulation and MBO
Requirements for using MBO
Unit’s objectives must be hierarchical
Objectives should be quantitative
Goals should be realistic
Objectives must be consistent

36. Porter’s Generic Strategies
Overall cost leadership
Differentiation
Focus

37. Categories of Marketing Alliances
Product or Service Alliances
Promotional Alliances
Logistics Alliances
Pricing collaborations

38. Marketing Plan Contents
Executive summary
Table of contents
Situation analysis
Marketing strategy
Financial projections
Implementation controls

39. Evaluating a Marketing Plan
Is the plan simple?
Is the plan specific?
Is the plan realistic?
Is the plan complete?

40. MARKETING MANAGEMENT 12th edition11
Dealing with Competition
Kotler Keller

41. 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?

42. Figure 1.1 Five Forces Determining Segment Structural Attractiveness
Potential entrants
Suppliers
Buyers
Industry competitors
Substitutes

43. 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

44. Industry Concept of Competition
Pure monopoly
Oligopoly
Monopolistic competition
Pure competition

45. Analyzing Competitors
Share of market
Share of mind
Share of heart

46. Expanding the Total Market
New customers
More usage

47. Figure 11.6 Six Types of Defense Strategies
Defender
Flank
Preemptive
Counteroffensive
Mobile
Contraction

48. 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

49. Other Competitive Strategies
Market challengers
Market followers
Market nichers

50. Market Challenger Strategies
Define the strategic objective and opponents
Choose a general attack strategy
Choose a specific attack strategy

51. General Attack Strategies
Frontal attack
Flank attack
Encirclement attack
Bypass attack
Guerrilla warfare

52. Specific Attack Strategies
Price discounts
Lower-priced goods
Value-priced goods
Prestige goods
Product proliferation
Product innovation
Improved services
Distribution innovation
Manufacturing-cost reduction
Intensive advertising promotion

53. Market Follower Strategies
Counterfeiter
Cloner
Imitator
Adaptor

54. Balancing Orientations
Competitor-centered
Customer-centered

55. MARKETING MANAGEMENT 12th edition3
Gathering Information
and Scanning the
Environment
Kotler Keller

56. 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?

57. Chapter Questions_2
What are the key methods for tracking and identifying opportunities in the macroenvironment?
What are some important macroenvironment developments?

58. 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?

59. Internal Records Order-to-Payment Cycle Sales Information System
Databases, Warehousing, Data mining
Marketing Intelligence System

60. 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

61. Needs and Trends
Fad
Trend
Megatrend

62. 10 Megatrends Shaping the Consumer Landscape
Aging boomers
Delayed retirement
Changing nature of work
Greater educational attainment
Labor shortages
Increased immigration
Rising Hispanic influence
Shifting birth trends
Widening geographic differences
Changing age structure

63. Environmental Forces Demographic Economic Socio-Cultural Natural
Technological
Political-Legal

64. Population and Demographics
Size
Growth rate
Age distribution
Ethnic mix
Educational levels
Household patterns
Regional characteristics
Movement

65. Economic Environment Income Distribution Savings Rate Debt
Purchasing Power
Income Distribution
Savings Rate
Debt
Credit Availability

66. Types of Industrial Structures
Industrial economies
Industrializing economies
Raw-material exporting economies
Subsistence economies

67. Social-Cultural Environment
Views of themselves
Views of others
Views of organizations
Views of society
Views of nature
Views of the universe

68. Natural Environment Shortage of raw materials Increased energy costs
Anti-pollution pressures
Governmental protections

69. Technological Environment
Pace of change
Opportunities for innovation
Varying R&D budgets
Increased regulation of change