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KotlerPresentation

KotlerPresentation

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03/18/2014

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Toward Stronger Marketing

Philip Kotler, Ph.D Kellogg School of Management Northwestern University Advertising Research Foundation Chicago, Illinois October 24, 2005

Thesis
MARKETS ARE CHANGING. THEREFORE MARKETING MUST CHANGE!

Marketing is Changing!
1. Marketing is much more than an advertising/selling/brochure support function.

Newer Ways to Reach Customers
Sponsorships Product placement Street-level promotion Festivals Webinairs, podcasting, etc. Buzz troops and non-clutter media Mobile billboards

Marketing is Changing
2. Marketing must align better with sales.

Four Levels of Relationship
Hypothesis: The integration of sales and marketing tends to progress through four distinct stages or levels of complexity.

Undefined

Defined

Aligned

Integrated

Caution! The most appropriate stage for a company will depend on many factors. More integrated will not always mean more effective.

Buying Funnel

Customer Awareness

Brand Awareness

Brand Consideration

Brand Preference

Purchase Intention

Purchase

Loyalty

Customer Advocacy

Marketing

Handoff

Sales

Integrating Marketing Into the Sales Funnel
Purchase Intention Purchase Loyalty Customer Advocacy

Prospecting

Qualifying

Defining Needs

Developing Solutions

Proposal Preparation/ Presentation

Revision & Issue Resolution

Contract Negotiation

Implemen -tation

Marketing is Changing!
3. Marketing now participates more actively in the designing of new products and consumers are joining in as well.

Cases
Microsoft
– Marketing participates in product development!

Virgin Atlanta Airways
– Virgin invites a sample of its devoted business customers to spend the night in a mock airplane cabinet, complete with flight attendants, food and entertainment.

Lego
– LEGO invites small groups of kids to see the company facilities and work closely with product designers and developers, model makers and marketing planners.

Marketing is Changing!
4. Marketing is moving toward more financial accountability.

Marketing is Changing!
5. Marketing is automating more of the company’s customer-related activities.

Marketing Automation
IT reduces the cost of acquiring, analyzing, storing and mediating information for customers and company. Closed-loop marketing architecture must include ATM, phone, www, kiosk, call center, dealer, branch, agent, all supported by relational databases, transaction systems, and external data sources. More and more marketing activities will disappear into the network. Customer interaction and support will be increasingly automated.
Source: Regis McKenna lecture

Marketing is Changing!
6. Marketing is acquiring new skills.

Examining the Marketing Talent Pool
Skills required Product development Marketing PR Market research Direct marketing Mass-media advertising Channel management Strategic pricing Skills inventory 1 3 3 1 2 3 2 Outsource Outsource Executive education Recruit talent Executive education Action plan

Customer relationship mgt 4 Database management 4

CMO’s Key Responsibilities
1. Strengthening the brands 2. Measuring marketing effectiveness 3. Driving new product development 4. 5. 6.

based on customer needs Gathering meaningful customer insights Utilizing new marketing technology Improving the customer experience.

Source: McKinsey study

Conclusions
The Old Marketing is broken. A New Marketing is needed. Marketers need to adopt a financial mindset and an IT mindset as well as some additional skills. Superior marketing performance will increasingly require integrated systems, processes, relationships, and information.

“This time like all times is a good one, if we but know what to do with it.”

-Ralph Waldo Emerson

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