Kotler set out to identify themost glaring marketing defi-ciencies that handicap com-panies from succeeding inthe marketplace. He foundwhat he calls the 10 DeadlySins of Marketing:1.Your company is not suf-ficiently market-focusedand customer-driven.2.Your company doesn’tfully understand itstarget customers.3.Your company needs tobetter define its competi-tors and monitor them.4.Your company has notproperly managed itsrelationships with stake-holders.5.Your company is notgood at finding newopportunities.6.Your company’s market-ing plans and planningprocess are deficient.7.Your company’s productand service policies needtightening.8.Your company’s brand-building and communica-tions skills are weak.9.Your company is notwell-organized to carryon effective and efficientmarketing.10.Your company has notmade maximum use of technology.Let’s discuss each of thesesins in detail, including boththe
that it is a problemin your company, and thebest
for fixing it.
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and its imitators areinsisting on much lowerprices from suppliers ifthese suppliers wantWal-Mart’s business.And mega-retailers areincreasingly putting outtheir own store brandsthat are reaching a levelof quality equal to thenational brands. Storebrands don’t have to payfor research, advertising,and selling.2.
Companies have been embracing Customer Relationship Management as the latest cure for their ills.
This meanscollecting private infor-mation about individualsto make a better guessat what they can betempted to buy. Butthere is growing opposi-tion to the collection ofpersonal information.Furthermore, people areincreasingly upset with junk mail, spam e-mail,and telemarketing phonecalls. Companies bettermove to permission or"opt-in" marketing assoon as they can.3.
No matter how cheaply a company can produce its products domestically, it can’t be the cheapest as long as China has a say.
China can produce every-thing cheaper and isstarting to make it asgood. China will havethe power to repeat theJapanese game: betterquality at lower prices.4.
Mass marketing costs are rising even though mass marketing effectiveness is falling.
As fewer peoplepay attention to TV com-mercials — either ignor-ingor zapping them — TVnetworks are raising theirprices. This will forcemarketers to find a moreeffective media.5.
Differentiation isn’t work- ing.
Professor TheodoreLevitt said years ago thatyou could differentiateanything, including saltand cement. But theproblem is two-fold. Manydifferentiations don’tmatter to customers—they are spurious or notcompelling. Worse, com-petitors are quick to copyany effective differentia-tion, leading innovatorsto enjoy even shorter life-cycles, barely recoveringtheir investments.6.
Consumers are more informed and sophisticat- ed in their buying habits.
A customer who wants tobuy a digital camera goeson www.mysimon.comand finds over 25 on-linemerchants stating theirprices for this camera.People are being trainedinto price consciousness.Buying on-line is all aboutprice, not reliability orservice differences.7.
Companies continue to cut their marketing expenses during reces- sions, the one prop on which their sales depend.
But because companiesdon’t get hard data onwhat their marketingexpenditures are doing,can you blame them?The point is that marketerswill face increasing chal-lenges in trying to preservecompany margins and hitcompany profit targets. Tomake matters worse, manycompanies are inefficientlyorganized from a marketingstandpoint. Adding companymarketing inefficiency andineffectiveness to all thesechallenges is a recipe fordisaster.