Kotler's Marketing Notes - 2
Updated: Jun 29, 2020
The second part of marketing notes from Philip Kotler's Book 'Marketing Management':
Important Terms:
Core Competency -
Source of competitive advantage
Has a wide application
Is difficult to imitate
Types of:
Core Business Processes -
Market sensing
New-offering realization
Customer acquisition
Customer relationship management
Fulfillment management
Marketing Plans -
Strategic (lays out target markets and firm’s value proposition)
Tactical (marketing tactics including pricing, product features, promotional channels)
Processes:
Corporate & Division Strategic Planning Process:
Define corporate mission
Establish strategic business units
Assign resources
Assess growth opportunities
Business Unit Strategic Planning Process:
Business mission
Swot analysis
Goal formulation
Strategy formulation
Program formulation
Implementation
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
Inbound logistics
Operations
Outbound logistics
Marketing
Service Supportive
Procurement
Technology development
HRM
Infrastructure

Assessing Growth Opportunities (Expansion) - ways:
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)
Integrative Growth - (build/acquire related businesses) - Backward integration - (acquire suppliers) - Forward integration - (acquire wholesalers/retailers) - Horizontal integration - (acquire competitors)
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:
Opportunity Matrix - success probability vs attractiveness
Threat Matrix - probability of occurrence vs seriousness
Porter’s Generic Strategies -
Overall cost leadership - lowest cost
Differentiation - e.g. quality leadership
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:
Executive Summary & Table of Contents
Situation Analysis
Marketing Strategy
Marketing Tactics
Financial Projections
Implementation Controls