Kotler's Marketing Notes - 2

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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• Part 1