Marketing Management : Millennium Edition / Edition 10

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Overview

This world-wide best-selling book highlights the most recent trends and developments in global marketing—with an emphasis on the importance of teamwork between marketing and all the other functions of the business. It introduces new perspectives in successful strategic market planning, and presents additional company examples of creative, market-focused, and customer-driven action. Coverage includes a focus on marketing in the 21st Century that introduces the new ideas, tools and practices companies will need to successfully operate in the New Millenium. Chapter topics discuss building customer satisfaction, market-oriented strategic planning, analyzing consumer markets and buyer behavior, dealing with the competition, designing pricing strategies and programs, and managing the sales force. For marketing managers who want to increase their understanding of the major issues of strategic, tactical, and administrative marketing—along with the opportunities and needs of the marketplace in the years ahead.
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Product Details

  • ISBN-13: 9780130122179
  • Publisher: Pearson Education
  • Publication date: 7/19/1999
  • Series: Prentice Hall International Series in Marketing
  • Edition description: Older Edition
  • Edition number: 10
  • Pages: 131
  • Product dimensions: 8.26 (w) x 10.28 (h) x 1.37 (d)

Meet the Author


Philip Kotler is one of the world's leading authorities on marketing. He is the S. C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg Graduate School of Management, Northwestern University. He received his master's degree at the University of Chicago and his Ph.D. at MIT, both in economics. He did postdoctoral work in mathematics at Harvard University and in behavioral science at the University of Chicago.

Dr. Kotler is the co-author of Principles of Marketing and Marketing: An Introduction. His Strategic Marketing for Nonprofit Organizations, now in its fifth edition, is the best seller in that specialized area. Dr. Kotler's other books include Marketing Models; The New Competition; Marketing Professional Services; Strategic Marketing for Educational Institutions, Marketing for Health Care Organizations; Marketing Congregations; High Visibility; Social Marketing; Marketing Places; The Marketing of Nations; Marketing for Hospitality and Tourism; Standing Room Only-Strategies for Marketing the Performing Arts; Museum Strategy and Marketing; and Kotler on Marketing.

Professor Kotler was the first recipient of the American Marketing Association's (AMA) Distinguished Marketing Educator Award (1985). The European Association of Marketing Consultants and Sales Trainers awarded him their Prize for Marketing Excellence. He was chosen as the Leader in Marketing Thought by the Academic Members of the AMA in a 1975 survey. He also received the 1978 Paul Converse Award of the AMA, honoring his original contribution to marketing. In 1995, theSales and Marketing Executives International (SMEI) named him Marketer of the Year. He has received honorary doctoral degrees from Stockholm University, the University of Zurich, Athens University of Economics and Business, DePaul University, the Cracow School of Business and Economics, Groupe H.E.C. in Paris, and the University of Economics and Business Administration in Vienna.

Professor Kotler has been a consultant to many major U.S. and foreign companies, including IBM, General Electric, AT&T, Honeywell, Bank of America, Merck, SAS Airlines, Michelin, and others in the areas of marketing strategy and planning, marketing organization, and international marketing.

He has been Chairman of the College of Marketing of the Institute of Management Sciences, a Director of the American Marketing Association, a Trustee of the Marketing Science Institute, a Director of the MAC Group, a member of the Yankelovich Advisory Board, and a member of the Copernicus Advisory Board. He is a member of the Board of Governors of the School of the Art Institute of Chicago and a member of the Advisory Board of the Drucker Foundation. He has traveled extensively throughout Europe, Asia, and South America, advising and lecturing to many companies about global marketing opportunities.

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Read an Excerpt


Chapter 3: Winning Markets - Market-Oriented Strategic Planning

In chapters 1 and 2, we asked the question: How do companies compete in a global marketplace? One part of the answer is a commitment to creating and retaining satisfied customers. We can now add a second part: Successful companies know, how to adapt to a continuously changing marketplace. They practice the art of market-oriented strategic planning.
  • Market-oriented strategic planning is the managerial process of developing and maintaining a viable fit between the organization's objectives, skills, and resources and its changing market opportunities. The aim of strategic planning is to shape the company's businesses and products so that they yield target profits and growth.

The concepts and tools that underlie strategic planning emerged in the 1970s as a result of a succession of shock waves that hit U.S. industry-the energy crisis, double-digit inflation, economic stagnation, Japanese competitive victories, deregulation of key industries. No longer could U.S. companies rely on simple growth projections to plan production, sales, and profits. Today, the main goal of strategic planning is to help a company select and organize its businesses in a way that will keep the company healthy even when unexpected events adversely affect any of its specific businesses or product lines. Strategic planning calls for action in three key areas: The first is managing a company's businesses as an investment portfolio. The second key area involves assessing each business's strength by considering the market's growth rate and the company's position and fit in that market. The third key area is strategy. For each of its businesses, the company must develop a game plan for achieving its long-run objectives. Each company must determine what makes the most sense in the light of its industry position, objectives, opportunities, skills, and resources.

Marketing plays a critical role in the strategic-planning process. According to a strategic-planning manager at General Electric:

The marketing manager is the most significant functional contributor to the strategic- planning process, with leadership roles in defining the business mission; analysis of the environmental, competitive, and business situations; developing objectives, goals, and strategies; and defining product, market, distribution, and quality plans to implement the business's strategies. This involvement extends to the development of programs and operating plans that are fully linked with the strategic plan.

To understand marketing management, we must understand strategic planning. And to understand strategic planning, we need to recognize that most large companies consist of four organizational levels: the corporate level, division level, business unit level, and product level. Corporate headquarters is responsible for designing a corporate strategic plan to guide the whole enterprise; it makes decisions on the amount of resources to allocate to each division, as well as on which businesses to start or eliminate. Each division establishes a division plan covering the allocation of funds to each business unit within the division. Each business unit develops a business unit strategic plan to carry that business unit into a profitable future. Finally, each product level (product line, brand) within a business unit develops a marketing plan for achieving its objectives in its product market.

The marketing plan operates at two levels. The strategic marketing plan lays out the broad marketing objectives and strategy based on an analysis of the current market situation and opportunities. The tactical marketing plan outlines specific marketing tactics, including advertising, merchandising, pricing, channels, and service.

The marketing plan is the central instrument for directing and coordinating the marketing effort. In today's organizations, the marketing department does not set the marketing plan by itself. Rather, plans are developed by teams, with inputs and sign-offs from every important function. These plans are then implemented at the appropriate levels of the organization. Results are monitored, and corrective action is taken when necessary. The complete planning, implementation, and control cycle is shown in Figure 3.1.

By preparing statements of mission, policy, strategy, and goals, headquarters establishes the framework within which the divisions and business units prepare their plans. Some corporations give a lot of freedom to their business units to set their own sales and profit goals and strategies. Others set goals for their business units but let them develop their own strategies. Still others set the goals and get heavily involved in the individual business unit strategies.

All corporate headquarters undertake four planning activities:

  • Defining the corporate mission
  • Establishing strategic business units (SBUs)
  • Assigning resources to each SBU
  • Planning new businesses, downsizing older businesses

DEFINING THE CORPORATE MISSION

An organization exists to accomplish something: to make cars, lend money, provide a night's lodging, and so on. Its specific mission or purpose is usually clear when the business starts. Over time the mission may lose its relevance because of changed market conditions or may become unclear as the corporation adds new products and markets to its portfolio.

When management senses that the organization is drifting from its mission, it must renew its search for purpose. According to Peter Drucker, it is time to ask some fundamental questions.' What is our business? Who is the customer? What is of value to the customer? What will our business be? What should our business be? These simplesounding questions are among the most difficult the company will ever have to answer. Successful companies continuously raise these questions and answer them thoughtfully and thoroughly.

Organizations develop mission statements to share with managers, employees, and (in many cases) customers. A well-worked-out mission statement provides employees with a shared sense of purpose, direction, and opportunity. The statement guides geographically dispersed employees to work independently and yet collectively toward realizing the organization's goals. Mission statements are at their best when they are guided by a vision, an almost "impossible dream" that provides a direction for the company for the next 10 to 20 years. Sony's former president, Akio Morita, wanted everyone to have access to "personal portable sound," so his company created the Walkman and portable CD player. Fred Smith wanted to deliver mail anywhere in the United States before 10:30 A.M. the next day, so he created Federal Express. Here are two examples of mission statements:

  • Rubbermaid Commercial Products Inc. Our Vision is to be the Global Market Share Leader in each of the markets we serve. We will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, cost-effective and environmentally responsible products. We will add value to these products by providing legendary customer service through our Uncompromising Commitment to Customer Satisfaction.
  • Motorola The purpose of Motorola is to honorably serve the needs of the community by providing products and services of superior quality at a fair price to our customers; to do this so as to earn an adequate profit which is required for the total enterprise to grow; and by so doing provide the opportunity for our employees and shareholders to achieve their reasonable personal objectives.

Good mission statements have three major characteristics. First, they focus on a limited number of goals. The statement "We want to produce the highest-quality products, offer the most service, achieve the widest distribution, and sell at the lowest prices" claims too much. Second, mission statements stress the major policies and values that the company wants to honor. Policies define how the company will deal with stakeholders, employees, customers, suppliers, distributors, and other important groups. Policies narrow the range of individual discretion so that employees act consistently on important issues. Third, they define the major competitive scopes within which the company will operate:

  • Industry scope: The range of industries in which a company will operate. Some companies will operate in only one industry; some only in a set of related industries; some only in industrial goods, consumer goods, or services; and some in any industry. For example, DuPont prefers to operate in the industrial market, whereas Dow is willing to operate in the industrial and consumer markets. 3M will get into almost any industry where it can make money.
  • Products and applications scope: The range of products and applications that a company will supply. St. Jude Medical aims to "serve physicians worldwide with high-quality products for cardiovascular care."
  • Competence scope: The range of technological and other core competences that a company will master and leverage. Japan's NEC has built its core competences in computing, communications, and components. These competences support its production of laptop computers, television receivers, and handheld telephones.
  • Market-segment scope: The type of market or customers a company will serve. Some companies will serve only the upscale market. For example, Porsche makes only expensive cars and licenses its name for high-quality sunglasses and other accessories. Gerber serves primarily the baby market.
  • Vertical scope: The number of channel levels from raw material to final product and distribution in which a company will participate. At one extreme are companies with a large vertical scope; at one time Ford owned its own rubber plantations, sheep farms, glass manufacturing plants, and steel foundries. At the other extreme are corporations with low or no vertical integration. These "hollow corporations" or "pure marketing companies" consist of a person with a phone, fax, computer, and desk who contracts out for every service including design, manufacture, marketing, and physical distributions...
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Table of Contents

Each chapter concludes with a Summary, Applications, and Notes.

I. UNDERSTANDING MARKETING MANAGEMENT.

1. Marketing in the Twenty-first Century.
Marketing Tasks. Marketing Concepts and Tools. Company Orientations Toward the Marketplace. How Business and Marketing are Changing.

2. Building Customer Satisfaction, Value, and Retention.
Defining Customer Value and Satisfaction. The Nature of High- Performance Businesses. Delivering Customer Value and Satisfaction. Attracting and Retaining Customers. Customer Profitability: The Ultimate Test. Implementing Total Quality Management.

3. Winning Markets: Market-Oriented Strategic Planning.
Corporate and Division Strategic Planning. Business Strategic Planning. The Marketing Process. Product Planning: The Nature and Contents of a Marketing Plan. Marketing Planning for the 21st Century.

II. ANALYZING MARKETING OPPORTUNITIES.

4. Gathering Information and Measuring Market Demand.
The Components of a Modern Marketing Information System. Internal Records System. Marketing Intelligence System. Marketing Research System. Marketing Decision Support System. An Overview of Forecasting and Demand Measurement.

5. Scanning the Marketing Environment.
Analyzing Needs and Trends in the Macroenvironment. Identifying and Responding to the MajorMacroenvironment Forces.

6. Analyzing Consumer Markets and Buyer Behavior.
A Model of Consumer Behavior. The Major Factors Influencing Buyer Behavior. The Buying Decision Process. The Stages of the Buying Decision Process.

7. Analyzing Business Markets and Business Buying Behavior.
What is Organizational Buying? Participants in the Business Buying Process. The Purchasing-Procurement Process. Institutional and Government Markets.

8. Dealing with the Competition.
Identifying Competitors. Analyzing Competitors. Designing the Competitive Intelligence System. Designing Competitive Strategies. Balancing Customer and Competitor Orientations.

9. Identifying Market Segments and Selecting Target Markets.
Levels and Patterns of Market Segmentation. Segmenting Consumer and Business Markets. Market Targeting.

III. DEVELOPING MARKETING STRATEGIES.

10. Positioning the Market Offering through the Product Life Cycle.
How to Differentiate. Differentiation Tools. Developing and Communicating a Positioning Strategy. Product Life Cycle Marketing Strategies. Market Evolution.

11. Developing New Products.
Challenges in New Product Development. Effective Organizational Arrangements. Managing the Development Process: Ideas. Managing the Development Process: Concept to Strategy. Managing the Development Process: Development to Commercialization. The Consumer-Adoption Process.

12. Designing Global Market Offerings.
Deciding Whether to go Abroad. Deciding Which Markets to Enter. Deciding How to Enter the Market. Deciding on the Marketing Program. Deciding on the Marketing Organization.

IV. MAKING MARKETING DECISIONS.

13. Managing Product Lines and Brands.
The Product and the Product Mix. Product-Line Decisions. Brand Decisions. Packaging and Labeling.

14. Designing and Managing Services.
The Nature of Services. Marketing Strategies for Service Firms. Managing Product Support Services.

15. Designing Pricing Strategies and Programs.
Setting the Price. Adapting the Price. Initiating and Responding to Price Changes.

V. MANAGING AND DELIVERING MARKETING PROGRAMS.

16. Managing Marketing Channels.
What Work is Performed by Marketing Channels? Channel-Design Decisions. Channel-Management Decisions. Channel Dynamics.

17. Managing Retailing, Wholesaling, and Market Logistics.
Retailing. Wholesaling. Market Logistics.

18. Managing Integrated Marketing Communications.
The Communication Process. Developing Effective Communications. Deciding on the Marketing Communications Mix. Managing and Coordinating Integrated Marketing Communications.

19. Managing Advertising, Sales Promotion, Public Relations.
Developing and Managing an Advertising Program. Deciding on Media and Measuring Effectiveness. Sales Promotion. Public Relations.

20. Managing the Sales Force.
Designing a Sales Force. Managing the Sales Force. Principles of Personal Selling.

21. Managing Direct and Online Marketing.
The Growth and Benefits of Direct Marketing. Customer Databases and Indirect Marketing. Major Channels for Direct Marketing. Marketing in the 21st Century: Electronic Commerce. Public and Ethical Issues in Direct Marketing.

22. Managing the Total Marketing Effort.
Trends in Company Organization. Marketing Organization. Marketing Implementation. Evaluation and Control.

Credits.
Name Index.
Company/Brand Index.
Subject Index.
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Sort by: Showing all of 6 Customer Reviews
  • Anonymous

    Posted March 26, 2013

    Great text. Extremely useful for any type of marketing. A beginn

    Great text. Extremely useful for any type of marketing. A beginner will benefit from well explained concepts and it is an excellent review for experts.

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  • Anonymous

    Posted August 28, 2005

    Just the bible of Modern Marketing

    I was given this textbook as a gift, and I found this textbook to have all the answers I need in my position. Kotler gives every area of marketing its due to great detail. I always look at this textbook at least once to twice a week. I work at a Fortune 100 consumer product company and this book is my bible in any area I need an answer or idea.

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  • Anonymous

    Posted February 11, 2001

    this is for undergrads

    Not a very useful compamy profiles too much lecture not enough real life application.

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  • Anonymous

    Posted February 8, 2001

    Beware of Kotler's 'Definitions'

    This is a great book on contemporary marketing management. Kotler covers all of today's topics in depth with great examples, detail, and insight. The only problwm is that Kotler often uses his position as the pre-eminent marketing text writer to create some of his own definitions. His ideas are sound, but he puts his own perspective into many of his seemingly generic and well-acepted explanations and definitions. I would highly recommend this for advanced marketing or marketing management courses (undergrad or MBA).

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  • Anonymous

    Posted December 4, 2012

    No text was provided for this review.

  • Anonymous

    Posted January 11, 2014

    No text was provided for this review.

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