Kotler's Marketing Notes - 2

Updated: Jun 29

The second part of marketing notes from Philip Kotler's Book 'Marketing Management':


Important Terms:


  • Core Competency -

  1. Source of competitive advantage

  2. Has a wide application

  3. Is difficult to imitate


Types of:


  • Core Business Processes -

  1. Market sensing

  2. New-offering realization

  3. Customer acquisition

  4. Customer relationship management

  5. Fulfillment management


  • Marketing Plans -

  1. Strategic (lays out target markets and firm’s value proposition)

  2. Tactical (marketing tactics including pricing, product features, promotional channels)



Processes:


  • Corporate & Division Strategic Planning Process:

  1. Define corporate mission

  2. Establish strategic business units

  3. Assign resources

  4. Assess growth opportunities


  • Business Unit Strategic Planning Process:

  1. Business mission

  2. Swot analysis

  3. Goal formulation

  4. Strategy formulation

  5. Program formulation

  6. Implementation

  7. Feedback and control



Concepts:


  • Michael Porter’s Value Chain - tool for identifying ways to create more customer value 9 strategic activities (5 primary, 4 supportive): Primary

  1. Inbound logistics

  2. Operations

  3. Outbound logistics

  4. Marketing

  5. Service Supportive

  6. Procurement

  7. Technology development

  8. HRM

  9. Infrastructure


  • Assessing Growth Opportunities (Expansion) - ways:

  1. Intensive Growth - (within the business) - Market penetration - (current product, current market) - Market development - (current product, new market) - Product development - (new product, current market) - Diversification Strategy*- (new product, new market)

  2. Integrative Growth - (build/acquire related businesses) - Backward integration - (acquire suppliers) - Forward integration - (acquire wholesalers/retailers) - Horizontal integration - (acquire competitors)

  3. Diversification Growth*- (unrelated businesses) (*These are different, former is a strategy of ‘intensive growth’, latter is a growth opportunity)


  • SWOT Analysis - Strengths, Weaknesses (Internal environment), Opportunities & Threats (External Environment). Can produce the following matrices:

  1. Opportunity Matrix - success probability vs attractiveness

  2. Threat Matrix - probability of occurrence vs seriousness



  • Porter’s Generic Strategies -

  1. Overall cost leadership - lowest cost

  2. Differentiation - e.g. quality leadership

  3. Focus - on one or more narrow market segments


  • Marketing Plan - Written document that summarizes what the marketer has learnt about the marketplace and indicates how the firm plans to reach its marketing objectives. Contents:

  1. Executive Summary & Table of Contents

  2. Situation Analysis

  3. Marketing Strategy

  4. Marketing Tactics

  5. Financial Projections

  6. Implementation Controls



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