kotler beyond advertising
DESCRIPTION
Am in awe of both our Management Guru Phillip Kotler and Economic Times ~ this is a compilation from the said source.TRANSCRIPT
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Beyond Advertising
Philip Kotler remains one of the most influential marketing thinkers
BRAMD EQUITY ET __29 FEB, 2012,, VIVEK KAUL,ET BUREAU
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Philip Kotler
At 80, Philip Kotler remains one of the most influential thinkers on marketing.
His best-selling textbook 'Marketing Management' is still among the most widely used in colleges across the world.
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Philip Kotler
• Trained as an economist with a Master's Degree from the University of Chicago and a PhD in economics at MIT, Kotler confesses to being drawn to marketing by what was missing from economics.
• He's often called the father of marketing; something he regards as a compliment, while at the same time ceding the title of the "grandfather of marketing" to management thinker Peter Drucker.
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Philip Kotler
• He is currently the SC Johnson & Son Professor of International Marketing at the Kellogg School of Management, Northwestern University.
• In this interview he discusses the impact of social media on marketing, how being both idealistic and profitable is not a contradiction and why Peter Drucker is still important
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What impact do the internet, social media and communication technology have
on marketing? [B]
• People's brand choices used to be heavily influenced by advertising. – Today this is changing.
• Persons with access to computers, iPads, or smart phones now take time to research the brands in a category , such as cars or TV, before making a choice.
• Younger persons find it very easy to look up information about products on the internet, ask their Facebook friends, attend to bloggers, watch YouTube.
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What impact do the internet, social media and communication technology have
on marketing? [B]
• All this means that sellers must learn the ins and outs of digital marketing .
• They must hire skilled netizens and carry out experiments to find what works.
• Buyers are increasingly welcoming fresh content rather than just repetitive ads.
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Could you give us any examples of this in practice?
• L’Oreal last year created a customised online video series of beauty tutorials to help customers better understand how to improve their appearance.
• John Deer publishes a digital version of 'The Homestead' carrying topics of interest to those who might buy tractors or combines.
• Content marketing is increasing in relation to straightforward advertising.
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To shift tracks, Indian and Chinese brands find it difficult to crack the markets in Europe and the US. What should they do?
• While cracking into Western markets is not easy, a growing number of emerging multinationals from India, China and other emerging economies are succeeding admirably.
• Consider Acer, Bharti, HTC, Haier, Huawei, Lenovo , Tata Motors, Tata Tea, Wipro and others. Some are growing by buying existing companies and brands.
• Others are growing organically.
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Your research suggests that the 3 year strategic plan is anachronistic and worthless. Why is that?
• I don't remember saying three year strategic plans are anachronistic and worthless.
• What would be worthless is only preparing a new plan each year without a three or five year plan already developed.
• A company needs to develop a long view and not only a tactical short view.
• Even if the long view turns out to be wrong, this will be realised in time.
• In fact, no company follows its three year plan for three years. It is revised and updated every year.
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In this day and age which companies have a better chance at succeeding? [A]
• Companies have a better chance if they go beyond just making something.
• They need to describe their business as pursuing a bigger idea, one that adds value not only to their customers but to employees, stakeholders and society as a whole.
• We think better of firms that "go green" or employ the poor or pay living wages.
• A new book by Jim Stengel, former P&G global marketing leader, called Grow: How Ideals Power Growth and Profit at the World's Greatest Companies , describes 50 companies that are pursuing both an ideal and profit at the same time.
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In this day and age which companies have a better chance at succeeding? [B]
• Being idealistic and being profitable is not a contradiction.
• And it requires taking the long view of strategic planning to help a company determine what its contribution will be beyond just making a product.
• A company should not only plan and replan, but embrace some ideal to guide and motivate their planning.
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Peter Drucker used to say business has only 2 functions: Marketing and innovation which produce results. Everything else is a cost. How do you interpret this in the current scheme of things? [A]
• Peter Drucker's aim was to draw attention to two functions that generally received less attention from management . – Management at that time thought mainly about making and
selling. – Much of making was to produce minor variations in an existing
product.
• Peter knew this wasn't innovation; this was tweaking. – Nor did he think that a company that occasionally developed
something new could pass for having a true dedication to innovation.
– As for selling, companies either thought it was the same as marketing or that it was a minor function that existed to help selling.
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Peter Drucker used to say business has only 2 functions: Marketing and innovation which produce results. Everything else is a cost. How do you interpret this in the current scheme of things? [B]
• So, Peter disabused them by calling marketing the main function and its aim is to make selling unnecessary!
• That marketing's aim is to develop offerings that are so timely and relevant so customers would flock to buy them, and therefore companies needed to do little or no selling.