Marketing Management
Marketing Summaries: Chapters 1 - 2
Phillip Kotler and Kevin Keller
Key concepts discussed in the preface of the textbook
- Companies have shifted gear from managing product portfolios to managing customer portfolios ie compiling databases on individual customers so that they can understand them better and construct individualised offerings and messages. They are doing less product and service standardisation and more niching and customisation. They are replacing monologues with customer dialogues. They are improving their methods of measuring customer profitability and customer lifetime value. They are intent on measuring the return on their marketing investments and its impact on shareholder value. They are also concerned with the social and ethical implications of their marketing decisions.
- Marketing should drive the company’s vision, mission and strategic planning. It is no longer a department charged with a number of tasks.
- Marketing decides:
o Who the company wants as customers
o Which needs to satisfy
o What products and services to offer
o What prices to set
o What communications to send and receive
o What channels of distribution to use
o What partnerships to develop
Chapter 1 – Defining marketing for the 21st Century
Marketing is everywhere – it is embedded in everything we do. And it has become a key ingredient to business success. Marketing is both an “art” and a “science” and good marketing is no accident. It takes careful planning and execution.
The importance of marketing
Financial success often depends on marketing ability. Marketing managers need to make big decisions about what features to design into a new product, what prices to offer and where to sell products. Some of the key questions marketers need to constantly ask themselves are listed on the top of page 6.
The scope of marketing – What is marketing?
- Marketing deals with identifying and meeting human and social needs. It is about “meeting...
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