In today's complex world, we all need to understand marketing. Whether we're selling a car, looking for a job, raising money for a charity, or promoting an idea, we're marketing. We need to know what the market is, who operates on it, how it functions, what its needs are.
We need to understand marketing and our role as consumers and our role as citizens. Someone is constantly trying to sell us something, and we must be able to recognize the marketing methods used. Knowing marketing allows us to be smarter as consumers, whether it's buying toothpaste, a frozen pizza, a personal computer, or a new car.
Marketing is one of the fundamental disciplines for market professionals such as salespeople, retailers, advertisers, marketing researchers, new and branded product managers, etc. They need to know how to describe the market and break it down into segments; how to assess the needs, requests and preferences of consumers within the framework of target market; how to design and test a product with the consumer properties necessary for this market; how to convey to the consumer the idea of \u200b\u200bthe value of the product through the price; how to choose skilled intermediaries so that the product is accessible and well presented; how to advertise a product so that consumers know it and want to buy it. A professional marketer must, no doubt, have an extensive set of knowledge and skills.
Those who wish to study marketing can find many books on the subject. But even the thickest textbooks barely skim the surface of this science, because there is a huge amount of information to know about each marketing tool. First-time students of marketing need the most general idea about its basics, so as not to drown in a sea of specific details. It is from the standpoint of this approach that the proposed book “Fundamentals of Marketing. Short Course».
At the same time, the book “Fundamentals of Marketing. A Short Course" should not be viewed as just a general digression. The topic is too exciting to be limited to its schematic representation. The book contains case studies illustrating the drama modern marketing: the failure of the CBS cable television system; the never-ending confrontation between Coca-Cola and Pepsi-Cola; rise in the beer market of the company "Miller" from seventh to second place; the impact of Avon female salespeople on home shopping; a long-term campaign by Columbia Records to promote the Man at Work Orchestra; a price war in the consumer computer market, etc. Each chapter begins with a description of some significant marketing event. Real-life examples throughout each chapter fill the bare bones of marketing with the pulse of life.
When writing the book, I was guided by several principles. It should be interesting to read. It should cover all the main points that both the market leader and the ordinary citizen need to know. The narrative should develop logically from chapter to chapter. The presentation should be based on scientific research data, and not on rumors and conjectures, and be focused on management problems. My goal is to prepare the reader to make better marketing decisions.
Philip Kotler
Means to facilitate the assimilation of the material
The book uses many special techniques designed to make it easier for students to learn marketing. Here are the main ones.
Statement of goals. To prepare for the perception of the material, each chapter is preceded by a statement of its objectives.
Initial screensaver. Each chapter begins with a short story from the practice of marketing, leading to the main material.
Numerical data, tables. The main provisions and principles discussed in the book are illustrated.
Inserts. Additional examples and other interesting information are provided throughout the book.
Summary. Each chapter ends with a brief recapitulation of the main provisions and principles set forth in it.
Issues for discussion. Each chapter is provided with a selection of questions covering the entire volume of the material presented in it.
Basic concepts. Definitions of new concepts are given at the end of each chapter.
Applications. Two appendices, Marketing Arithmetic and Marketing Careers, provide additional material, which is of practical interest.
Chapter 1 The Social Basis of Marketing: Satisfying Human Needs
Goals
After reading this chapter, you should be able to:
1. Define marketing and describe its role in the economy.
2. Compare five approaches to marketing management.
3. Tell what buyers, sellers and ordinary citizens expect from the marketing system.
4. Explain how marketing is used by the organization.
Everyday impact of marketing on consumers
Marketing affects the interests of each of us in any day of our lives. We wake up to the sound of a Barbra Streisand song on the Sears clock radio, followed by a United Airlines commercial for a vacation in Hawaii. In the bathroom, we brush our teeth with Colgate toothpaste, shave with a Gillette razor, freshen our mouth with Listerine antiseptic, spray our hair with Revlon hairspray, and use a host of other toiletries and devices made in different parts of the world. We wear Calvin Klein jeans and Bass boots. In the kitchen, we drink a glass of Minute Maid orange juice, scoop Kellogg crispy rice into a bowl, and top it with Borden milk. After a while, we have a cup of Maxwell House coffee with two teaspoons of Domino sugar, while chewing on a Sarah Lee muffin. We buy oranges grown in California, coffee imported from Brazil, a newspaper made from Canadian wood, and the news reaches us on the radio as far away as Australia. As we go through the mail, we find another Metropolitan Museum of Art catalogue, a letter from a Prudential Insurance sales representative offering various services, and coupons to save money on our favorite branded items. We leave the house and go to shopping center Northbrook Court, with Neiman Marcus, Lord & Taylor, Sears, and hundreds of shops stocked floor to ceiling with merchandise. Then we work out at the Nautilus fitness center, get a haircut at the Vidal Sassoon salon, and with the help of the Thomas Cook travel agency, we plan a trip to the Caribbean.
All this became possible thanks to the marketing system, and with minimal effort on our part. It provided us with a standard of living that our predecessors could only dream of.
What is marketing
What is behind the concept of "marketing"? Most mistakenly equate marketing with sales and advertising.
And no wonder! After all, Americans are constantly pestered by television commercials, newspaper ads, direct mail mail advertising, salesman visits. Someone is always trying to sell something. It seems that we have nowhere to escape from death, taxes and commerce.
Therefore, many are surprised to learn that the most important element of marketing is not sales at all. Sales is just the tip of the marketing iceberg, one of its many functions, and often not the most significant one. If the marketer has done a good job with such sections of marketing as identifying consumer needs, developing suitable products and setting an appropriate price for them, establishing a distribution system and effective incentives, such products will certainly go easy.
Biography
Remark 1
F. Kotler was born in 1931 in the USA, his parents emigrated from Ukraine in 1917. Within the walls of the University of Chicago, he began his scientific career, here he completed a master's degree in economics, became a doctor of philosophy. In addition, he did a PhD in mathematics from Harvard University.
Kotler is currently Professor of International Marketing at Northwestern University's Graduate School of Management. For several years in a row, this School has been awarded the title best business- schools in the USA and the best school of marketing education. A considerable merit in this belongs to Kotler, who taught there for many years and conducted his research activities.
He is the author of numerous books in the field of marketing and management, more than a hundred scientific articles for authoritative publications. He is the only author to receive the Alpha Kappa Psi award for the best marketing articles.
His book "Marketing Management" is a textbook widely used throughout the world in the field of marketing. As a consultant, Kotler collaborated with many well-known corporations: Bank of America, IBM, General Electric, Coca-Cola, Motorola and others. He also advised government various countries in developing and positioning their companies' resources and skills in an increasingly competitive environment.
F. Kotler's contribution to the development of marketing
F. Kotler considered marketing to be an invention of the 20th century, and his initial contribution to the development of marketing lies in the fact that he managed to emphasize its most important role in the process of managing a company. Essential Functions marketing are to study the market:
- Market segmentation
- Gathering market information
- Product positioning
- Market Forecasting
F. Kotler believes that managerial, behavioral, political, international and economic concepts can be used in the development of marketing thinking. In his opinion, the key concept of marketing is exchange. The essence of marketing includes a transaction, that is, an exchange between parties, while the purpose of marketing in the future is seen by Kotler as a science of human behavior as a social process.
The concept of marketing according to Kotler
Marketing is a process that includes:
- planning and implementation of the idea;
- pricing;
- promotion and implementation of an idea, product and service through an exchange that satisfies the goals of various persons.
Planning plays a vital role in marketing. At the same time, it is important both current and strategic planning, because it provides opportunities for analyzing the market situation in dynamics, choosing suitable target markets, developing a system of marketing actions in order to achieve the successful implementation of a variety of ideas. According to F. Kotler, sooner or later someone will copy any marketing strategy, because of which it will lose effectiveness. Putting together multiple marketing strategies can cause them to rot.
Remark 2
There are many critics of Kotler's concept. Basically, those theoretical developments of the scientist that affect the deepening and expansion of the marketing concept are criticized. F. Kotler is criticized for simplistic views on the market and application general schemes, which can be used for almost any product and service created by the company, regardless of the need that they must satisfy.
But not all scientists and practitioners share this opinion, most experts agree that Kotler's success is based on the idea of the need to develop theoretical conclusions in practice. At the same time, it is very important not to impede the practical application of the theory by the complexity of terminology and methods.
M.: 2007. - 656 p.
The first acquaintance with the theory of marketing of the majority of citizens of the former USSR began with Philip Kotler's book `Fundamentals of Marketing`, published by `Progress` publishing house in 1990. The textbook turned out to be so timely and in demand that hundreds of thousands of pirated copies immediately appeared, published by enterprising businessmen from the publishing business. The book you are holding in your hands is the only legal edition of your favorite bestseller today. This edition includes a new chapter on interactive marketing and new examples of the practical application of certain theoretical provisions.
The book is intended for students of economic specialties, but will be of interest to a wide range of readers.
Format: djvu/zip ( Fundamentals of Marketing. Short course. 2007 g., 656s.)
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CONTENT
Introduction 18
Chapter 1. Social Foundations marketing: meeting human needs 20
What is Marketing 21
Needs 22
Needs 22
Requests 23
Products 23
Exchange 25
Deal 26
Market 27
Marketing 29
Marketing Management 30
Marketing management concepts 30
Production improvement concept 32
Product development concept 33
The concept of intensifying commercial efforts 34
Marketing Concept 35
Concept socially ethical marketing 36
Objectives of the marketing system 39
Achieving the highest possible high consumption 42
Achieving maximum customer satisfaction 42
Providing the widest possible choice 43
Maximizing the quality of life 43
The rapid spread of the marketing system 44
In the field of entrepreneurship 44
On the international stage 45
In the field non-commercial activities 45
Resume 46
Issues for discussion 47
Key Concepts Encountered in Chapter 1 48
Chapter 2 Marketing Management Process 50
Market Opportunity Analysis 52
Identification of new markets 53
Assessing Marketing Opportunities 55
Selection of target markets 58
Demand measurement and forecasting 58
Market segmentation 59
Selection target segments market 59
Product positioning in the market 61
Development of the marketing mix 63
Implementation of marketing activities 65
Marketing Planning System 65
Marketing organization system 66
Marketing control system 72
Brief recap of theme 72
Resume 73
Issues for discussion 75
Basic Concepts Encountered in Chapter 2 75
Chapter 3. Market research and marketing information systems 77
Marketing Information System Concept 79
Internal reporting system 80
System for collecting external current marketing information 81
Market research system 82
Scheme marketing research 86
Identification of problems and formulation of research objectives 87
Selection of sources of information 88
Resume 98
Issues for discussion 99
Basic Concepts Encountered in Chapter 3 101
Chapter 4 Marketing Environment 102
The main factors of the microenvironment of the functioning of the company 105
Firm 105
Suppliers 106
Marketing intermediaries 107
Clientele 108
Competitors 109
Contact audiences 111
The main factors of the macroenvironment of the functioning of the company 114
Demographic environment 114
Economic environment 120
Natural environment 122
Scientific and technical environment 124
Political environment 127
Cultural environment 131
Resume 135
Issues for discussion 136
Basic Concepts Encountered in Chapter 4 137
Chapter 5 Consumer Markets and Consumer Buying Behavior 138
Model buying behavior 141
Buyer characteristics 142
Cultural level factors 143
Factors of social order 146
Personal factors 150
Psychological factors 153
Purchasing decision process 160
Awareness of the problem 161
Finding information 161
Evaluation of options 163
Buying decision 165
Buy reaction 165
Different options for making a decision to buy a novelty product 167
Stages of the process of perception 168
Individual differences of people in readiness to perceive innovations 168
The role of personal influence 170
The influence of product characteristics on the rate of its perception 171
Resume 171
Issues for discussion 172
Basic Concepts Encountered in Chapter 5 173
Chapter 6. The market of enterprises and the behavior of organized consumers 174
Industrial goods market 176
Who is in the industrial goods market? 176
What purchasing decisions do buyers of industrial products make? 179
Who is involved in making purchasing decisions for industrial products? 183
What is the main influence on buyers of industrial goods? 184
How exactly do buyers of industrial products make purchasing decisions? 186
Intermediary market 191
Who is in the reseller market? 191
What purchasing decisions do intermediaries make? 191
Who is involved in making purchasing decisions for goods for resale? 192
How exactly do intermediaries make purchasing decisions? 192
Public institutions market 193
Who is in the government market? 193
What purchasing decisions do buyers make on behalf of government agencies? 193
Who is involved in purchasing decisions on behalf of government agencies? 194
What has the main influence on the buyers of public institutions? 195
How exactly state institutions make purchasing decisions? 195
Resume 197
Questions for discussion 198
Basic Concepts Encountered in Chapter 6 199
Chapter 7 Segmenting the Market, Selecting Target Segments, and Positioning the Product 200
Market segmentation 203
General Approach to Market Segmentation 203
Basic principles for segmenting consumer markets 205
Basic principles of market segmentation for industrial goods 217
Selecting target market segments 218
Three options for market coverage 219
Identification of the most attractive market segments 222
Product positioning in the market 224
Resume 225
Issues for discussion 227
Basic Concepts Encountered in Chapter 7 227
Chapter 8 Product Development: Products, Brands, Packaging, Services 229
What is product 231
Product by design, product in reality, product with reinforcement 231
The main types of classification of goods 232
Durable goods, non-durable goods, services 233
Classification of consumer goods 234
Classification of industrial goods 236
Stamp Decisions 238
Brand Decisions 239
Decision on the owner of the brand 240
Brand Quality Decision 242
Decision on brand nepotism 242
Decision to expand the boundaries of the use of brand 245
Multibrand Approach Decision 245
Product packaging decisions 246
Labeling decisions 248
Customer Service Decisions 251
Service Package Decision 251
Service level decision 252
Decision on the form of service 252
Customer Service Department 253
Product Line Decisions 253
Decision on the breadth of the product range 253
Decisions concerning the commodity nomenclature 256
Resume 259
Questions for discussion 261
Basic Concepts Encountered in Chapter 8 262
Chapter 9. Product Development: New Products and Challenges life cycle 264
New Product Development Strategy 266
Formulation of ideas 269
Selection of ideas 270
Concept Development and Verification 270
Marketing strategy development 273
Analysis of production and marketing opportunities 274
Product Development 274
Trial Marketing 275
Deployment of commercial production 275
Approach to product life cycle stages 278
The stage of bringing the goods to the market 282
Growth Stage 282
Stage of maturity 283
Decline Stage 284
Resume 286
Issues for discussion 287
Basic Concepts Encountered in Chapter 9 288
Chapter 10. Commodity Pricing: Tasks and Pricing Policies 289
Pricing in different types of markets 291
Pure competition 292
Monopolistic competition 292
Oligopolistic competition 292
Pure monopoly 293
Setting pricing objectives 294
Ensuring survival 294
Maximizing current profit 294
Winning leadership in terms of market share 294
Winning leadership in terms of product quality 295
Definition of demand 295
Methods for estimating demand curves 295
Price elasticity of demand 298
Cost estimate 298
Types of costs 299
Analysis of prices and products of competitors 299
Choosing a Pricing Method 300
Calculation of the price according to the method "average costs plus profit" 300
Price calculation based on break-even analysis and target profit 301
Setting a price based on the perceived value of a product 303
Setting a price based on current price levels 303
Price setting based on closed tenders 305
Setting the final price 305
Psychology of price perception 305
Firm 305 pricing policy
Effect of price on other participants market activity 306
Resume 308
Questions for discussion 308
Basic Concepts Encountered in Chapter 10 309
Chapter 11. Setting prices for goods: approaches to the problem of pricing 310
Approaches to the problem of pricing 311
Establishing prices for a new product 311
Product line pricing 313
Geographic pricing 315
Setting prices with discounts and offsets 317
Promotion pricing 318
Setting discriminatory prices 319
Proactive price changes 321
Proactive price cuts 321
Proactive price increase 321
Consumer reactions to price changes 322
Reactions of competitors to price changes 322
The firm's response to price changes by competitors 323
Resume 323
Questions for discussion 324
Basic Concepts Encountered in Chapter 11 325
Chapter 12
The nature of distribution channels 329
Why intermediaries are needed 329
Distribution Channel Functions 330
Number of channel levels 332
Service channels 333
Diffusion of vertical marketing systems 335
Diffusion of horizontal marketing systems 338
Distribution of multi-channel marketing systems 339
Collaboration, conflicts and competition of distribution channels 339
Channel Structure Decisions 340
Identification of the main variants of channels 341
Channel management decisions 343
Selection of channel members 343
Motivating channel members 343
Evaluation of the activities of channel participants 344
Solutions for distribution problems 345
The nature of merchandising 345
Purposes of distribution 347
Order processing 349
Warehousing 350
Maintenance of inventories 351
Transportation 351
Choice of mode of transport 353
The structure of the company's goods movement management 354
Resume 355
Issues for discussion 355
Basic Concepts Encountered in Chapter 12 356
Chapter 13. Methods of distribution of goods: retail and wholesale 358
Retail 360
The Nature and Importance of Retail 360
Types of retail trade enterprises 362
Retailer Marketing Solutions 384
Wholesale 388
Nature and meaning wholesale trade 388
Types of wholesalers 390
Wholesaler Marketing Solutions 395
Resume 396
Issues for discussion 398
Basic Concepts Encountered in Chapter 13 398
Chapter 14
Stages of developing effective communication 404
Identification of the target audience 405
Determining the desired response 405
Choice of treatment 407
Choice of media 409
The choice of properties that characterize the source of the call 412
Flow Accounting feedback 412
Development of a comprehensive promotion budget and selection of elements of the promotion complex 414
Calculation of the total budget for promotion 414
Formation of the promotion complex 417
Resume 423
Questions for discussion 424
Basic Concepts Encountered in Chapter 14 425
Chapter 15
Advertising 429
Setting goals 433
Budget Development Decisions 435
Advertising Appeal Decisions 435
Media Decisions 439
Grade advertising program 443
Sales promotion 446
Setting goals for sales promotion 447
Choice of promotional tools 447
Development of a sales promotion program 450
Preliminary testing of sales promotion program 451
Implementation of the sales promotion program 451
Evaluation of the results of the sales promotion program 452
Public Relations 452
Setting tasks for the PR department 454
Choice of means of public relations 455
Implementation of the plan for the formation public opinion 456
Evaluation of the results of activities to form public opinion 456
Resume 457
Questions for discussion 459
Basic Concepts Encountered in Chapter 15 460
Chapter 16 Product Promotion: Personal Selling and Sales Management 461
Setting goals for the sales department of the company 466
Choice organizational structure sales services 466
Basic principles of the sales department 467
Organizational structure of the sales service of the company 467
Dimensions of the sales department of the company 469
Remuneration system for sales personnel 469
Attracting and selecting sales agents 470
The Importance of Careful Selection 470
Essential Traits of a Good Sales Agent 470
Recruitment procedure 471
Sales agent training 471
Fundamentals of the Art of Selling 472
Control over the work of sales agents 477
Sales agent orientation 477
Motivating Sales Agents 478
Evaluation of the performance of sales agents 480
Sources of information 480
Formal performance appraisal 480
Resume 482
Questions for discussion 483
Basic Concepts Encountered in Chapter 16483
Chapter 17 Interactive and Direct Marketing 484
What is "direct marketing" 487
The Growth and Benefits of Direct Marketing 488
Benefits of direct marketing 489
Development of direct marketing 490
Customer databases and direct marketing 491
Forms of direct marketing 495
Personal Selling 495
Direct mail 496
Catalog Marketing 498
Telemarketing 498
Immediate Response Television Marketing 499
Marketing from the video booth 500
Interactive Marketing and electronic commerce 501
The rapid development of interactive marketing 502
Electronic shopper 503
Benefits of Interactive Marketing 505
Interactive marketing channels 507
The Temptations and Challenges of Interactive Marketing 512
Integrated direct marketing 514
public opinion and ethical issues in direct marketing 515
Annoyance, dishonesty, cheating and cheating 515
Invasion of privacy 516
Resume 517
Questions for discussion 520
Basic Concepts Encountered in Chapter 17521
Chapter 18
Strategic planning 525
Company mission 525
Tasks and goals of the company 527
Business Portfolio Development Plan 529
Firm growth strategy 529
Marketing planning 532
Marketing plan sections 533
Marketing budget development 536
Marketing control 541
Execution control annual plans 541
Profit control 544
Strategic control 545
Resume 551
Questions for discussion 552
Basic Concepts Encountered in Chapter 18553
Chapter 19 International Marketing 555
Exploring the environment international marketing
558
System international trade 558
Economic environment 559
Political and legal environment 560
Cultural environment 562
Decision on the expediency of entering the foreign market 563
Deciding which markets to enter 563
Decision on methods of entering the market 564
Export 564
joint entrepreneurial activity 565
Direct investment 567
Decision on the structure of the marketing mix 568
Item 568
Promotion 570
Price 570
Distribution channels 571
Decision on the structure of the marketing service 572
Export Department 572
International Branch 572
Multinational company 574
Resume 574
Issues for discussion 575
Basic Concepts Encountered in Chapter 19576
Chapter 20. Marketing of services and marketing in the field of non-profit activities 577
Service Marketing 578
The nature and main characteristics of the service 579
Service classification 582
The scale and importance of marketing in the service sector 583
Organization Marketing 584
Assessment of the image of the organization 585
Image planning and image health 585
Individual Marketing 585
Celebrity Marketing 586
Marketing of political candidates 587
Place Marketing 588
Housing Marketing 588
Commercial area marketing 589
Marketing investments in land property 589
Holiday destination marketing 589
Idea Marketing 590
Resume 591
Questions for discussion 593
Basic Concepts Encountered in Chapter 20,594
Chapter 21 Marketing and Society 596
Public criticism of marketing 598
The impact of marketing on individual consumers 598
The impact of marketing on society as a whole 605
The impact of marketing on other entrepreneurs 608
Citizens' actions to regulate marketing 609
Consumerism 610
protection movement environment 611
Measures state regulation marketing 612
Actions of Entrepreneurs to Become Socially Responsible Marketing 613
Moral Principles of Marketing 616
Resume 619
Questions for discussion 620
Basic Concepts Encountered in Chapter 21 621
Appendix A. Marketing Arithmetic 622
Business results report 622
Calculation of analytical coefficients 626
Mark-ups and discounts from the price 629
Appendix B. Careers in Marketing 632
Job Description in Marketing 632
Advertising 633
Managing the production of conventional and branded goods 635
Working with consumers 635
Industrial Marketing 635
International Marketing 636
Specialists in organizing marketing management and systems analysis 636
Marketing Research 636
New product planning 637
Merchandising system 637
Shaping public opinion 637
Logistics 637
Control retail 638
Sales and management 638
Other Marketing Career Opportunities 638
Choosing a job and getting a place 639
Conduct a self-assessment 639
Explore job descriptions 639
Formulate the goals of your search 639
Explore the job market and evaluate its opportunities 640
Develop a search strategy 640
Prepare a brief introduction about yourself and transmittal letter 640
Get interview 641
Get things done 642
Index 643
© Williams Publishing House, 2007
Copyright © 1984 Prentice-Hall, Inc.
* * *
Introduction
In today's complex world, we all need to understand marketing. Whether we're selling a car, looking for a job, raising money for a charity, or promoting an idea, we're marketing. We need to know what the market is, who operates on it, how it functions, what its needs are.
We need to understand marketing and our role as consumers and our role as citizens. Someone is constantly trying to sell us something, and we must be able to recognize the marketing methods used. Knowing marketing allows us to be smarter as consumers, whether it's buying toothpaste, a frozen pizza, a personal computer, or a new car.
Marketing is one of the fundamental disciplines for market professionals such as salespeople, retailers, advertisers, marketing researchers, new and branded product managers, etc. They need to know how to describe the market and break it down into segments; how to assess the needs, requests and preferences of consumers within the target market; how to design and test a product with the consumer properties necessary for this market; how to convey to the consumer the idea of \u200b\u200bthe value of the product through the price; how to choose skilled intermediaries so that the product is accessible and well presented; how to advertise a product so that consumers know it and want to buy it. A professional marketer must, no doubt, have an extensive set of knowledge and skills.
Those who wish to study marketing can find many books on the subject. But even the thickest textbooks barely skim the surface of this science, because there is a huge amount of information to know about each marketing tool. Newcomers to the study of marketing need a very general understanding of its basics, so as not to drown in a sea of specific details. It is from the standpoint of this approach that the proposed book “Fundamentals of Marketing. Short Course.
At the same time, the book “Fundamentals of Marketing. A Short Course" should not be viewed as just a general digression. The topic is too exciting to be limited to its schematic representation. The book provides case studies that illustrate the drama of modern marketing: the failure of the CBS cable television system; the never-ending confrontation between Coca-Cola and Pepsi-Cola; rise in the beer market of the company "Miller" from seventh to second place; the impact of Avon female salespeople on home shopping; a long-term campaign by Columbia Records to promote the Man at Work Orchestra; a price war in the consumer computer market, etc. Each chapter begins with a description of some significant marketing event. Real-life examples throughout each chapter fill the bare bones of marketing with the pulse of life.
When writing the book, I was guided by several principles.
It should be interesting to read. It should cover all the main points that both the market leader and the ordinary citizen need to know. The narrative should develop logically from chapter to chapter. The presentation should be based on scientific research data, and not on rumors and conjectures, and be focused on management problems. My goal is to prepare the reader to make better marketing decisions.
Philip Kotler
Means to facilitate the assimilation of the material
The book uses many special techniques designed to make it easier for students to learn marketing. Here are the main ones.
Statement of goals. To prepare for the perception of the material, each chapter is preceded by a statement of its objectives.
Initial screensaver. Each chapter begins with a short story from the practice of marketing, leading to the main material.
Numerical data, tables. The main provisions and principles discussed in the book are illustrated.
Inserts. Additional examples and other interesting information are provided throughout the book.
Summary. Each chapter ends with a brief recapitulation of the main provisions and principles set forth in it.
Issues for discussion. Each chapter is provided with a selection of questions covering the entire volume of the material presented in it.
Basic concepts. Definitions of new concepts are given at the end of each chapter.
Applications. Two appendices, "Marketing Arithmetic" and "Marketing Careers," provide additional material of practical interest.
Chapter 1 The Social Basis of Marketing: Satisfying Human Needs
Goals
After reading this chapter, you should be able to:
1. Define marketing and describe its role in the economy.
2. Compare five approaches to marketing management.
3. Tell what buyers, sellers and ordinary citizens expect from the marketing system.
4. Explain how marketing is used by the organization.
Everyday impact of marketing on consumers
Marketing affects the interests of each of us in any day of our lives. We wake up to the sound of a Barbra Streisand song on the Sears clock radio, followed by a United Airlines commercial for a vacation in Hawaii. In the bathroom, we brush our teeth with Colgate toothpaste, shave with a Gillette razor, freshen our mouth with Listerine antiseptic, spray our hair with Revlon hairspray, and use a host of other toiletries and devices made in different parts of the world. We wear Calvin Klein jeans and Bass boots. In the kitchen, we drink a glass of Minute Maid orange juice, scoop Kellogg crispy rice into a bowl, and top it with Borden milk. After a while, we have a cup of Maxwell House coffee with two teaspoons of Domino sugar, while chewing on a Sarah Lee muffin. We buy oranges grown in California, coffee imported from Brazil, a newspaper made from Canadian wood, and the news reaches us on the radio as far away as Australia. As we go through the mail, we find another Metropolitan Museum of Art catalogue, a letter from a Prudential Insurance sales representative offering various services, and coupons to save money on our favorite branded items. We leave the house and drive to the Northbrook Court shopping center with Neiman-Marcus, Lord & Taylor, Sears department stores and hundreds of shops stocked from floor to ceiling with goods. Then we work out at the Nautilus fitness center, get a haircut at the Vidal Sassoon salon, and with the help of the Thomas Cook travel agency, we plan a trip to the Caribbean.
All this became possible thanks to the marketing system, and with minimal effort on our part. It provided us with a standard of living that our predecessors could only dream of.
What is marketing
What is behind the concept of "marketing"? Most mistakenly equate marketing with sales and advertising.
And no wonder! After all, Americans are constantly pestered by television commercials, newspaper ads, direct mail, visits from salesmen. Someone is always trying to sell something. It seems that we have nowhere to escape from death, taxes and commerce.
Therefore, many are surprised to learn that the most important element of marketing is not sales at all. Sales is just the tip of the marketing iceberg, one of its many functions, and often not the most significant one. If the marketer has done a good job with such sections of marketing as identifying consumer needs, developing suitable products and setting an appropriate price for them, establishing a distribution system and effective incentives, such products will certainly go easy.
Everyone knows about the so-called special hot goods for which consumers hunt in droves. When Eastman Kodak created the Instamatic cameras, Atari the first video games, and Mazda the PX-7 sports car, they were inundated with orders because they offered exactly the products that were in that time is needed. Not copycat products, but products that are clearly different from existing ones and offer new benefits to consumers.
One of the leading management theorists, Peter Drucker, puts it this way: “The purpose of marketing is to make sales efforts unnecessary. Its goal is to know and understand the customer so well that the product or service will fit the customer exactly and sell itself.”
This does not mean that sales and promotion efforts are losing their importance. Rather, it is about becoming part of a larger “marketing mix,” that is, a set of marketing tools that need to be harmoniously linked together in order to achieve maximum market impact.
Here is our definition of marketing.
Marketing - a type of human activity aimed at satisfying needs and requirements through exchange.
To clarify this definition, consider the following concepts: needs, needs, requests, product, exchange, transaction and market.
Needs
The basic idea behind marketing is the idea of human needs. We define need as follows.
Need- a feeling of a lack of something felt by a person.
Human needs are varied and complex. Here are the basic physiological needs for food, clothing, warmth and security; and social needs for spiritual intimacy, influence, and affection; and personal needs for knowledge and self-expression. These needs are not created by the efforts of Madison Avenue, but are the original components of human nature.
If the need is not satisfied, the person feels destitute and unhappy. And the more this or that need means to him, the deeper he worries. A dissatisfied person will do one of two things: either he will look for an object that can satisfy the need, or he will try to drown it out.
Needs
The second initial idea of marketing is the idea of human needs.
Need - a need that has taken a specific form in accordance with the cultural level and personality of the individual.
A hungry resident of Bali needs mangoes, a young pig and beans. Hungry US citizen - a bun with chopped steak, fried potato chips and a glass of Coca-Cola. Needs are expressed in objects that can satisfy the need in a way that is inherent in the cultural structure of a given society.
As society progresses, so do the needs of its members. People are faced with more and more objects that awaken their curiosity, interest and desire. Manufacturers, for their part, take targeted actions to stimulate the desire to own goods. They are trying to form a connection between what they produce and the needs of the people. A product is promoted as a means of satisfying one or a number of specific needs. A marketer does not create a need, it already exists.
Retailers often confuse needs with needs. A drill bit manufacturer may think that the customer wants his bit, when in fact the customer wants the hole. When another product appears that can drill a well better and cheaper, the client will have a new need (for a novelty product), although the need will remain the same (well).
Requests
The needs of people are almost unlimited, but the resources to meet them are limited. So a person will choose those goods that will give him the greatest satisfaction within his financial capabilities.
Request - it is a need backed by purchasing power.
It is not difficult to enumerate the demands of a particular society at a particular point in time. In the late 1970s, 200 million Americans bought 67 billion eggs, 250 million chickens, 5 million hair dryers, paid for 133 billion domestic passenger miles, and over 20 million teacher lectures. of English language and literature in colleges. These and others consumer goods and services have in turn generated demands for more than 150 million tons of steel, 4 billion tons of cotton and a host of other manufactured goods. And these are just a few of the demands of the $1.5 trillion economy.
The company could plan production volumes for the next year, based on a set of requests from the previous one. This is how production is planned in countries with centrally planned economies. However, requests are not a reliable indicator. People get bored with the things that are current and look for variety for the sake of variety. A change in choice may also be the result of a change in prices or income levels. K. Lancaster notes that products are, in fact, sets of properties, and people opt for those products that provide them with the best set of benefits for their money. So, the Volkswagen car embodies an elementary means of transport, a low purchase price, fuel efficiency and a European course, and a Cadillac embodies high comfort, luxury and prestige. A person chooses a product whose combination of properties provides him with the greatest satisfaction for a given price, taking into account his specific needs and resources.
Products
Human needs, wants and demands suggest the existence of goods to satisfy them. We define a product in the following way.
Product- everything that can satisfy a need or need and is offered to the market for attention, acquisition, use or consumption.
Suppose a woman feels the need to look beautiful. All products that can satisfy this need, we call product range choice. This range includes cosmetics, new clothes, spa tanning, beautician services, plastic surgery, etc. Not all of these products are equally desirable. Most likely, goods and services that are more accessible and cheaper, such as cosmetics, clothes, and haircuts, will be purchased first.
Rice. 1.1. Three Degrees of Need Satisfaction
You can depict a specific product and a specific human need in the form of circles, and the ability of a product to satisfy this need can be represented as the degree of their combination. On fig. 1 shows the item BUT does not meet the need X, product B satisfies it partially, and the product AT- fully. In this case, the product AT will be called " perfect product».
The more fully the product corresponds to the desires of the consumer, the more successful the manufacturer will achieve. Suppose an ice cream maker asks a consumer what degree of fat and sweetness they like in ice cream. Let us also assume that the answer is shown in Fig. 1.2 dot marked "Ideal". The consumer is then asked to try three competing ice creams and rate their levels of fat and sweetness. The corresponding places of each variety are also represented by dots in Fig. 1.2. Variety B more than others, combines the ideal levels of desired properties. If the manufacturer offers ice cream that is closer to the consumer ideal than the variety B, the novelty should go on the market better than this variety, given the comparability of their prices, degree of availability and other conditions.
The moral is that manufacturers should find the consumers they want to sell to, find out their needs, and then create a product that satisfies those needs as best as possible.
The concept of "goods" is not limited to physical objects. Anything that can provide a service, that is, satisfy a need, can be called a commodity. In addition to products and services, these can be individuals, places, organizations, activities, and ideas. The consumer decides what kind of entertainment program to watch on television, where to go on vacation, which organizations to help, what ideas to support. And if the use of the term "commodity" at times seems unnatural, it can be replaced by others - " satisfies needs», « remedy" or " sentence". All these words have a certain value for different people.
Rice. 1.2. Comparison of ice cream varieties in terms of fat content and sweetness
Exchange
Marketing takes place when people decide to satisfy their needs and wants through exchange.
Exchange- the act of receiving from someone the desired object with the offer of something in return.
Exchange is one of four ways in which individuals can obtain a desired object. For example, a hungry person can get food in the following ways: provide himself with food by hunting, fishing, or picking fruits ( self-sufficiency), steal food from someone ( weaning), beg her ( begging) and, finally, to offer some means of compensation for providing him with food, say, money, another product or some kind of service ( exchange).
Of these four ways of satisfying needs, exchange has the greatest advantage. Under him, people do not have to encroach on the rights of others, do not have to depend on someone's charity. They do not have to produce any essential item on their own, regardless of whether they know how to do it or not. You can focus on creating things that they have mastered the production of, and then exchange them for the right items made by others. As a result, the total production of goods in society increases.
Exchange is the basic concept of marketing as a scientific discipline. To make a voluntary exchange, five conditions must be met.
1. There must be at least two sides.
2. Each side must have something that could be of value to the other side.
3. Each party must be able to communicate and deliver its goods.
4. Each party must be completely free to accept or reject the proposal of the other party.
5. Each party must be confident in the expediency or desirability of dealing with the other party.
These five conditions only create the potential for exchange. But whether it will take place depends on the agreement between the parties on its terms. If an agreement is reached, we can conclude that as a result of the exchange, all its participants benefit (or at least do not suffer damage), since each of them was free to either reject or accept the offer.
Deal
If the exchange is the basic concept of marketing as a scientific discipline, then the basic unit of measurement in the field of marketing is the transaction.
Deal– commercial exchange of values between two parties.
This requires that the side BUT transferred to the side B an object X and received from her in return an object At . Let's say Jones gives Smith $400 and gets a TV. This is classic money deal, although the presence of money as commercially exchangeable values is not at all necessary. At barter deal in exchange for the television, Jones will give Smith a refrigerator. Instead of goods, services can be exchanged in a barter transaction, as when lawyer Jones makes a will to Dr. Smith in exchange for a medical examination (Box 1.1).
The transaction implies the existence of several conditions: at least two value-significant objects, agreed conditions for its implementation, agreed time of completion, agreed venue. As a rule, the terms of the transaction are supported and protected by law.
A transaction should be distinguished from a mere transfer. On handover side BUT gives to the side B an object X, without getting anything in return. Transfers relate to gifts, subsidies, charity events, and are also one of the forms of exchange. After all, the giver of a gift is counting on this or that benefit, such as a good disposition towards himself, getting rid of feelings of guilt, or the desire to put the other party in a position of obligation. Professional fundraisers are keenly aware of the "reciprocity" motives underlying donor behavior and seek to secure the benefits they seek. If donors are simply forgotten or acknowledged, the foundation will soon lose their support. As a result, market professionals have recently begun to broadly interpret the concept of marketing, including in its scope not only the study of behavior during transactions, but also the study of behavior in the process of transfers.
Box 1.1. Back to barter
Due to high prices today, thousands of people in the United States of America are returning to the primitively simple practice of bartering. Many are discovering that it is possible to make a commercial exchange of their goods or services for the goods or services of others they need. Lawyers, doctors, and accountants trade favors, and some savvy barterers manage to cut their hair, dry-clean, get their teeth fixed, and use other services without paying cash. The membership of the ever-growing barter clubs is replenished with many future barter practitioners.
A number of large firms also resort to barter trade. A few years ago, Xerox offered to trade 200 of its desktop copiers, worth about $800,000, for items it needed, such as forklifts and airline tickets for its business travelers. And there is nothing surprising in the fact that specialized barter companies have already appeared to help individuals and firms make barter transactions. One such company is Barter System, Inc. from Oklahoma City - has 62 commodity exchange centers in different parts of the United States. In one of the letters sent to a specially selected group of 25,000 customers of the company, there was also the following appeal: “Required: a batch of powdered milk or corn flakes total cost$300,000 in exchange for an aircraft of equal value.” To search for clients who want to make a barter transaction, such barter organizations use a computer, and for future transactions, as in monetary transactions provide loans. They usually pay their employees in cash, but with the consent of the workers, they prefer to pay them in durable goods and services.
When transferring, the market actor seeks to evoke a response to a particular proposal. This reaction is not tantamount to "purchase" or "commercial exchange". A political candidate wants to win popular votes, a church wants to grow its congregation, a social action group wants what is called "reception of the idea." Marketing consists of actions taken to achieve in any form the desired response of the target audience in relation to any object, service or idea.
The new book of the world-famous marketing guru "Marketing 3.0" will be a revelation for many, and only for the most experienced in marketing will it be a confirmation of what they have intuitively guessed for a long time. In developed countries today (and in developing countries - very soon) only a company that masters and starts applying marketing 3.0 can count on victory over competitors. In short, this is a way of the most subtle, sophisticated impact on the consumer, in which not only the mind and emotions are affected, but also the soul of a person. Use it, and soon all the buyers and customers of your competitors will go to you.
The huge advantage of Marketing 3.0 over the previous two versions is that with its help any company can get involved in solving the global problems of mankind (poverty, environmental pollution, social injustice, deadly diseases) with a commercial benefit for themselves! Do good - and earn on it.
Who is this book for?
Marketers, managers of various levels, teachers and students.
Philip Kotler, professor of international marketing at the Graduate School of Management. J. L. Kellogg Northwestern University. One of the world's leading authorities in the field of marketing. His work has defined and directed the development of marketing throughout the world for the past forty years. Received numerous awards and honorary titles educational institutions all over the world. Philip Kotler is widely known in the world, his books have been translated into twenty-five languages, and he regularly lectures in many countries.
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people about books
On the store shelf next to this book is another one with a similar title, published by employees of a certain consulting company and entirely devoted to optimizing sites in terms of user interface and their indexing by search engines. Is the new work of Kotler et al., equipped with such a broadcast title, devoted to some technical aspects of the practice of creating and promoting websites?
The scope of the book means already a small, but emotional, energetic and informative foreword by the Indonesian President Yudhoyono, by the way, the author of more than 20 books and an outstanding personality. The preface clearly and without prejudice states that we have before us an ambitious and quite scientific work dedicated to the meeting of global challenges.
About 15 years ago, I was talking with a Japanese colleague (at that time I was an employee of a Japanese trading house) about what is the main difficulty when starting a new business. With brevity characteristic of the Japanese, a colleague summarized the circumstances as follows: it is inexpensive and easy to get a loan, other technical difficulties are also surmountable. The question is always in the idea of business.
Japan is a developed and advanced country, although it is experiencing stagnation. Looking around, we can find that our entire planet has acquired some of the features that were previously identified with Japan. The unrestrained expansion model marks the limits of its applicability. Natural resources, thank God, not yet at the end, but the limits are visible here. About the disadvantage production capacity forgotten decades ago. What can become the engine of development?
In general, the book answers the question of what should be the parameters of a viable business idea today. Logically and captivatingly, the book demonstrates, like a matryoshka doll being taken apart, how to change mechanisms economic activity causes a shift in the foundations of cultural life. I do not share the authors' enthusiasm for the growing influence of the emerging creative class, which seems to me somewhat premature, but it is not necessary to argue with the fact that in our era it is easier than ever to express oneself and that such self-expression is becoming more and more in demand. .
The idea of the book can be compared to the spiritual practice of business. Indeed, greater information transparency and infinite resources require a comprehensive understanding of the mutual influences of business and ways to manage them. Some time ago, branding or, for example, segmentation was a step forward, now it is clear that the whole line has stepped. Only those who are comprehensively prepared, motivated and adequately equipped have a chance of success.
The chapter on shareholder relations seems to explain the “Damodaran paradox” – this business valuation classic pointed out that when assessing the value of a company, it is supposed to either rely on the rationality of the investment market or neglect it.
Since the assessment is based on the forecast financial flows, then the optimism of the forecast - a half-empty or half-full glass - is directly related to how much the investor shares the company's values. This belief is the result of the company's work.
The book draws attention to the fact that the market is a more diverse and diverse phenomenon than just the mature market in the US and the peripheral mature market of the EEC, as could be inferred from earlier writings on marketing. The authors draw attention to the transformation of the pyramidal structure of the market in developing countries into a rhombic one, summing up in some way the processes of globalization and commodity commoditization.
The book or its Russian translation is not free from shortcomings, for example, when describing a certain joint venture in Bangladesh, on page 189 it is indicated that "... the mission was very simple: save the world with a package of yogurt." On page 205 it is stated that "in the late 1800s ... biological weapons came into military fashion ...".
The book is conceptual in its essence, so some lack of practicality and applicability to everyday tasks cannot be attributed to shortcomings.
Summarizing, we can say that we have before us a consciousness-expanding work. Must have for everyone who claims to have fundamental knowledge in business...
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