Marketing Management, Millenium Edition

1 Marketing Management, Millenium EditionPhilip KotlerCustom Edition for University of PhoenixExcerpts taken from:A Framework for Marketing Management, by Philip KotlerCopyright 2001by Prentice-Hall, Pearson Education CompanyUpper Saddle River, New Jersey 07458 Marketing management Millenium Edition , Tenth Edition ,by Philip KotlerCopyright 2000 by Prentice-Hall, rights reserved. No part of this book may be reproduced, in any form or by anymeans, without permission in writing from the Copyright 2002 by Pearson Custom copyright covers material written expressly for this volume by the editor/s aswell as the compilation itself.

2 It does not cover the individual selections herein thatfirst appeared elsewhere. Permission to reprint these has been obtained by PearsonCustom Publishing for this Edition only. Further reproduction by any means, electron-ic or mechanical, including photocopying and recording, or by any information stor-age or retrieval system, must be arranged with the individual copyright holders special Edition published in cooperation with Pearson Custom PublishingPrinted in the United States of America10 9 8 7 6 5 4 3 2 1 Please visit our web site at 0 536 63099-2BA 993095 PEARSON CUSTOM PUBLISHING75 Arlington Street, Suite 300, Boston.

3 MA 02116A Pearson Education Company SECTION ONEC hange is occurring at an accelerating rate; today is not like yesterday, and tomor-row will be different from today. Continuing today s strategy is risky; so is turningto a new strategy. Therefore, tomorrow s successful companies will have to heed threecertainties: Global forces will continue to affect everyone s business and personal life. Technology will continue to advance and amaze us. There will be a continuing push toward deregulation of the economic three developments globalization, technological advances, and deregula-tion spell endless opportunities.

4 But what is Marketing and what does it have to dowith these issues? Marketing deals with identifying and meeting human and social needs. One ofthe shortest definitions of Marketing is meeting needs profitably. Whether the mar-keter is Procter & Gamble, which notices that people feel overweight and want tastybut less fatty food and invents Olestra; or CarMax, which notes that people want morecertainty when they buy a used automobile and invents a new system for selling usedcars; or IKEA, which notices that people want good furniture at a substantially lowerprice and creates knock-down furniture all illustrate a drive to turn a private or socialneed into a profitable business opportunity through TASKSA recent book, Radical Marketing ,praises companies such as Harley-Davidson for suc-ceeding by breaking all of the rules of of commissioning expensivemarketing research, spending huge sums on advertising, and operating large market-1 Marketing in theTwenty-FirstCenturyWe will address the following questions.

5 What are the tasks of Marketing ? What are the major concepts and tools of Marketing ? What orientations do companies exhibit in the marketplace? How are companies and marketers responding to the new challenges?Understanding Marketing Management2 CHAPTER1 Marketing IN THETWENTY-FIRSTCENTURYing departments, these companies stretch their limited resources, live close to their cus-tomers, and create more satisfying solutions to customers needs. They form buyersclubs, use creative public relations, and focus on delivering quality products to winlong-term customer loyalty.

6 It seems that not all Marketing must follow the P&G fact, we can distinguish three stages through which Marketing practice Marketing :Most companies are started by individuals who visualize anopportunity and knock on every door to gain attention. Jim Koch, founder of BostonBeer Company, whose Samuel Adams beer has become a top-selling craft beer,started out in 1984 carrying bottles of Samuel Adams from bar to bar to persuade bar-tenders to carry it. For 10 years, he sold his beer through direct selling and grassrootspublic relations.

7 Today his business pulls in nearly $200 million, making it the leaderin the craft beer Marketing :As small companies achieve success, they inevitably move towardmore formulated Marketing . Boston Beer recently began a $15 million televisionadvertising campaign. The company now employs more that 175 salespeople and hasa Marketing department that carries on market research, adopting some of the toolsused in professionally run Marketing Marketing :Many large companies get stuck in formulated Marketing ,poring over the latest ratings, scanning research reports, trying to fine-tune dealerrelations and advertising messages.

8 These companies lack the creativity and passionof the guerrilla marketers in the entrepreneurial brand and productmanagers need to start living with their customers and visualizing new ways to addvalue to their customers bottom line is that effective Marketing can take many forms. Although it iseasier to learn the formulated side (which will occupy most of our attention in thisbook), we will also see how creativity and passion can be used by today s and tomor-row s Marketing Scope of MarketingMarketing people are involved in Marketing 10 types of entities: goods, services, expe-riences, events, persons, places, properties, organizations, information, and goods constitute the bulk of most countries production andmarketing effort.

9 The United States produces and markets billions of physicalgoods, from eggs to steel to hair dryers. In developing nations, goods particularly food, commodities, clothing, and housing are the mainstay of economies advance, a growing proportion of their activities arefocused on the production of services. The economy today consists of a70 30 services-to-goods mix. Services include airlines, hotels, and maintenanceand repair people, as well as professionals such as accountants, lawyers,engineers, and doctors. Many market offerings consist of a variable mix ofgoods and orchestrating several services and goods, one can create, stage,and market experiences.

10 Walt Disney World s Magic Kingdom is an experience;so is the Hard Rock promote time-based events, such as the Olympics, tradeshows, sports events, and artistic Marketing has become a major business. Artists, musicians,CEOs, physicians, high-profile lawyers and financiers, and other professionalsdraw help from celebrity , states, regions, and nations compete to attract tourists, factories,company headquarters, and new marketers include economicdevelopment specialists, real estate agents, commercial banks, local businessassociations, and advertising and public relations are intangible rights of ownership of either real property(real estate) or financial property (stocks and bonds).