Philip Kotler’s Insights on

Marketing Process
Converting Customer Needs into Products and Services:
This involves understanding and addressing customer needs, transforming them into tangible products
and services.

Demand Creation:
It's not just about meeting existing needs but also about creating new demand for products and
services through innovative approaches.

Matching Consumers and Products:

This is about ensuring that the right products reach the right consumers, aligning product offerings
with consumer expectations.

Consumer-to-Consumer Activity:
Marketing involves interactions not just between businesses and consumers but also among
consumers themselves.

A Creative Management Function:

It includes producing goods and services, pricing them appropriately, promoting them effectively, and
ensuring they are distributed to the consumers. This ensures satisfaction of consumer wants.

Systems Approach in Marketing:

Kotler added a new dimension to marketing with the systems approach. This approach views
marketing as an integrated whole, emphasizing the need for coordination among all marketing
activities.

Marketing as an Ongoing Social Process:

It's not a one-time activity but an ongoing process that involves creating and delivering standards and
styles of life.
Kotler’s View on Marketing:
Kotler’s perspective is that marketing is a set of human activities directed at facilitating and
consummating exchanges. It's about a network where buyers and sellers interact, and where products
and services, along with their competitive substitutes, are bought and sold.
Philip Kotler’s Marketing
Process: Coffee Shop Example
Converting Customer Needs into Products and Services:
First, we identify what customers want in their coffee experience – from the flavors they enjoy to
the ambiance they prefer. Then, we develop our coffee offerings and other services to meet these
needs.

Demand Creation:
We introduce new flavors and special offerings to create a demand for our coffee shop. This could
involve unique blends or limited-time offers that attract customers.

Matching Consumers and Products:

We align our coffee varieties with customer preferences. For instance, offering a range of
coffees from classic espresso to trendy cold brews, ensuring there's something for every
type of coffee lover.

Consumer-to-Consumer Activity:
Our coffee shop becomes a place where customers not only enjoy their coffee but also socialize and
recommend our shop to others. This word-of- mouth plays a crucial role in marketing.

A Creative Management Function:

We manage various aspects like crafting unique coffee blends, setting appropriate prices, marketing
our shop effectively, and ensuring our products are accessible to customers. This involves making
sure that every customer's want is satisfied.

Systems Approach in Marketing:

All our marketing activities are part of an integrated strategy. This ensures that our services and
customer experiences are cohesive and consistently delivered.
Marketing as an Ongoing Social Process:
Our coffee shop's marketing isn't a one-time event. It’s an ongoing effort to create and deliver a
lifestyle and standard that resonates with our customers. It's about constantly engaging with them and
evolving our offerings to suit their changing preferences.
Applying Philip Kotler’s
Marketing Process in Schindler Elevator

Converting Customer Needs into Products and Services:

We start by understanding the specific challenges and needs in elevator security and efficiency,
focusing on safety, reliability, and innovative technology. We then develop our elevators to meet
these precise requirements.

Demand Creation:
We differentiate our products by emphasizing unique features such as energy efficiency, advanced
safety systems, and customizable designs. This approach is particularly effective in markets
prioritizing sustainability and innovative building designs.

Matching Consumers and Products:

Our products are tailored for different market segments. For commercial buildings, we offer high-
capacity elevators. For residential use, we focus on comfort and efficiency, ensuring each product
aligns with its intended market.

Consumer-to-Consumer Activity:
We encourage our clients to share their positive experiences, leveraging testimonials and case studies,
especially from iconic building installations, to promote our products through word-of-mouth.

A Creative Management Function:

Our marketing strategy includes targeting specific groups in the construction industry, participating in
trade shows, building strong B2B relationships, and engaging in digital marketing tailored to
professionals in building and design.
Systems Approach in Marketing:
We coordinate all marketing activities, from advertising to client interactions, under a unified strategy.
This ensures consistency in our brand messaging and enhances our reputation as a leader in the
elevator industry.

Marketing as an Ongoing Social Process:

We continuously engage with industry trends and customer needs, refining our products and services
to remain at the forefront of elevator industry innovation. This involves staying updated with
technological advancements and evolving market demands.
Applying Philip Kotler’s
Marketing Principles in a Fintech
Company
Introduction:

Hello everyone, I work at a fintech company where we focus on delivering backend security for
payment processing in banks. Today, I'll explain how we apply Philip Kotler's marketing
principles in our business model.

Converting Customer Needs into Products and Services:

We start by identifying the unique challenges banks face in securing transactions, including data
encryption, fraud detection, and regulatory compliance. We develop advanced security solutions
tailored to these needs.

Demand Creation:
We create demand by highlighting our solution's unique features, like advanced encryption
and real-time fraud monitoring. We show how our solution enhances security and
streamlines transactions.

Matching Consumers and Products:

Our services are customized for various banks. For larger banks, we offer scalable security solutions.
For smaller banks, we emphasize simplicity and cost-effectiveness.

Consumer-to-Consumer Activity:
We encourage clients to share their experiences, using testimonials and case studies, promoting our
solutions through word-of-mouth.

A Creative Management Function:

Our marketing approach includes fintech conferences, digital marketing campaigns, and
insightful content, positioning us as leaders in financial cybersecurity.
Systems Approach in Marketing:
All marketing efforts, from digital campaigns to customer interactions, are unified, ensuring a
consistent message about our service quality.

Marketing as an Ongoing Social Process:

We engage with the latest fintech and cybersecurity developments, updating our services to address
emerging threats and incorporating client feedback.
Philip Kotler’s Marketing
Process: New Car Launch
Example
Converting Customer Needs into Products and Services:
This step involves researching what potential car buyers are looking for. Preferences in terms of fuel
efficiency, safety features, design, and technology are considered. Based on this, the car is designed to
meet these specific needs.

Demand Creation:
Focus is on creating a demand for the new car. This could be through innovative features that set it
apart, like advanced eco-friendly technology, unique design, or superior performance.

Matching Consumers and Products:

Ensuring the new car appeals to its target audience. Features like spacious interiors and advanced
safety systems for families, or sportier look and tech gadgets for younger demographics.

Consumer-to-Consumer Activity:
Encouraging current customers to share their experiences. This might involve platforms for reviews,
social media engagement, or referral programs.

A Creative Management Function:

Encompasses activities like competitively pricing the car, effectively promoting it through various
channels, and ensuring availability through a network of dealerships.

Systems Approach in Marketing:

All marketing activities, from advertising campaigns to dealership training, are coordinated and
aligned with the overall strategy for consistency.
Marketing as an Ongoing Social Process:
Involves continuously engaging with customers, getting feedback, and updating the car model based
on market needs and technological advancements.