Defining Marketing for the 21st Century - Philip Kotler First Chapter

Defining Marketing for the 21st
Century Group – 1
Amrita Chatterjee
Anurag Saikia
Ayushi Barnwal
Dhruv Bhatia
Prerna Khindri

Topic Outline
• Why is marketing important?
• What is the scope of marketing?
• What are some core marketing concepts?
• How has marketing management changed in
recent years?
• What are the tasks necessary for successful
marketing management?

What is Marketing?
• “Marketing is a societal process by which individuals and
groups obtain what they need and want through creating,
offering and freely exchanging products and services of value
with others.”
-Philip Kotler
• “Marketing is getting the right goods & services to the right
people at the right time, at the right place, at the right price with
the right communications & promotions.”
- American Marketing Association

The Scope of Marketing
What is Marketed?
Goods Services
Events
Experiences Persons Places
Properties Organizations Information
Ideas

Marketing Insight: Rural Markets
in South Asia
• RRuurraall mmaarrkkeettiinngg is any marketing activity in which one dominant
participant is from a rural area
• Why is it iimmppoorrttaanntt??
 The majority of South Asia’s population of about 11..55 bbiilllliioonn resides in
rural areas
 These markets offer immense potential for market expansion and growth
 Market indicators such as size and growth rate for many products and
product categories are too attractive for any company to ignore
 Around 48% of the rural population is below 20 years of age

Marketing Insight: Rural Markets
in South Asia
• f Challenges foorr MMaarrkkeetteerrss:
 Vast difference in nature, characteristics, buying patterns and behaviour
than urban counterparts
 Demand and consumption pattern is different
 Pattern of income levels in rural markets
 Lower literacy levels
 Dispersed nature of the population
 Inadequacy of physical infrastructure like roads
 Weak banking system and limited availability of credit facilities
 Problems of storage infrastructure

The New Marketing Realities
• Network Information Technology
• Globalization
• Deregulation
• Heightened Competition
• Industry Convergence
• Retail Transformation
• Disintermediation
• Consumer Buying Power
• Consumer Information
• Consumer Participation
• Consumer Resistance

New Company Capabilities
• Marketers can use the internet as a powerful information and sales channel
• Marketers can collect fuller and richer information about markets, customers,
prospects and competitors
• Marketers can tap into social media to amplify their brand message
— Social MMeeddiiaa MMaarrkkeettiinngg
• Marketers can facilitate and speed external communication among customers
• Marketers can send ads, coupons, samples, and information to customers who have
requested them or given the company permission to send them
• Marketers can reach consumers on the move with mobile marketing
• Companies can make and sell individually differentiated goods
• Companies can improve purchasing, recruiting, training, and internal and external
communications
• Companies can facilitate and speed up internal communication via private intranet
• Companies can improve their cost efficiency by skillful use of the Internet

Marketing Insight: Marketing in
an Age of Turbulence
• Turbulence – – Chaos, Risk and Uncertainty characterise many industries,
markets and companies
• Turbulence is the new normal, punctuated by periodic and intermittent
spurts of prosperity and downturn, including extended downturns
amounting to recession or even depression
• Chaotics Marketing SSttrraatteeggiieess::
 Secure your market share from core customer segments
 Push aggressively for greater market share from competitors
 Research customers more now, because their needs and wants are in flux
 Minimally maintain, but seek to increase your marketing budget
 Focus on all that’s safe and emphasize core values
 Drop programs that are not working for you quickly
 Don’t discount your best brands
 Save the strong; lose the weak

Company Orientation Toward the
Marketplace

THE EVOLUTION OF
MARKETING CONCEPTS

The Production Concept
• Oldest Concept
• Customer
– Favour products that are widely available and affordable
• Goal
– Improve production, cost and distribution efficiency
• Usefulness
– Demand exceeds supply
– Product cost is too high, pressure to decrease
• Risk
—— [[WWhhaatt ttoo ddoo wwhheenn ssiittuuaattiioonn cchhaannggeess??]]
• E.g.: - Lenovo and Haier in China
I need lots of food
and places to
roam around..

The Product Concept
• Marketers are caught in a “love-affair” with their product
• Consumer
– Favour products with best quality, performance, innovative features
• Goal
– Improve product features in a continuous fashion
• Usefulness
–– [[IIff mmaarrkkeett iiss ssttaabbllee,, nnoo ccoommppeettiinngg tteecchhnnoollooggiieess iinn ssiigghhtt]]
• Risk
– Competing technology (spray instead of mouse trap)
enters market
I will climb to the
topmost branch
and get the fruits.
No one usually
does it!

The Selling Concept
• Aim is to sell what firms make rather than make what the market wants
• Consumer
– Will not buy enough products unless seller(s) undertake large-scale
promotion and selling effort
• Goal
– Promote product, do aggressive selling and coax people into buying
• Usefulness
– Unsought goods – encyclopaedias, insurance, etc
• Risk
– Dissatisfied customers – will not buy again,
will tell 10 people!
• “Inside out”
Food! Food! Food!
First Come, First Serve

The Marketing Concept
• Customer Centred instead of Product Centred
• Customer
– Buys product that best satisfies needs and wants
• Goal
– Determine needs and wants of target markets
– Deliver the desired satisfaction more effectively and efficiently than
competitors
• Risk
– Short term focus with respect to larger social and ethical issues
– Overlooks long term customer welfare (fast food)
• Customer driven marketing
– When customers know what they want

The Marketing Concept
• Customer driving marketing
– When customers do not yet know they even need something
– Meeting existing latent and future needs by understanding customers
better than they understand themselves
• E.g.: GSM networks, CD players
• Total Market Orientation
– “Outside in”
Which animal
will be my tasty
meal today…?

The Holistic Marketing Concept
Communications
HHoolliissttiicc
MMaarrkkeettiinngg
CCoonncceepptt
HHoolliissttiicc
MMaarrkkeettiinngg
CCoonncceepptt
Senior Mgmt
Internal
Marketing
Performance
Marketing
Integrated
Marketing
Relationship
Marketing
Legal Environment
Sales Revenue Customers
Partners
Channel
Ethics
Brand & Customer
Equity
Commodity
Products & Services
Marketing Other Depts
Channels
Dept

The Social Responsibility
Marketing
• The organizations task is to determine the needs, wants and interests of
target markets and to deliver the desired satisfactions more effectively and
efficiently than competitors in a way that preserves or enhances the
consumers’ and the society’s well-being
• The Human concept
• The intelligent consumption concept
What will they eat
today..?
• The ecological imperative concept
Live and let live..
• Goal
– Balance
 Consumer satisfaction in short and long term
 Society
 Company profits

CASE STUDY –
MARKETING EXCELLENCE
Horlicks in India

Major Promotional activities
•In India, over 2 billion cups of
Horlicks are consumed every year
•Horlicks’ largest market is in India
•Horlicks is the 6th mot trusted brand
in India (AC Nielsen)
•Horlicks is the most trusted health
drink brand (Economic times 2004)
•Horlicks has more than 50% share
in health drink market

Defining Marketing for the 21st Century - Philip Kotler First Chapter

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