PHILIP KOTLER, Ph.D

KELLOGG SCHOOL OF MANAGEMENT

NORTHWESTERN UNIVERSITY

MAY 28, 2014

NEW YORK CITY

THE FUTURE OF

MARKETING

MY BACKGROUND

1950-53

Milton Friedman

University of Chicago

1953-56

Paul Samuelson & Robert Solow

MIT

Frank Bass, Robert Buzzell, William Lazer

Jerry McCarthy and Ed Pessemier (not pictured)

THE FORD FOUNDATION PROGRAM, 1960

PROBLEMS WITH ECONOMIC THEORY

• Classical economic theory focuses on price. It fails to take into account major forces that affect market behavior and market institutions, namely the impact of marketing channels, advertising, sales force, and sales promotion on demand and supply.

• Classical economic theory assumes rational maximizing behavior on the part of consumers, middlemen, and producers.

• The new economics is now called behavioral economics. The Nobel Prize in Economic Science recognized Kahneman and Tversky, two psychologists, for their work on economic irrationality. Behavioral economics is another word for Marketing! For 100 years marketers have been enriching economic theory without gaining any recognition from economists.

EARLY KOTLER MARKETING BOOKS

1. Marketing Management 1967. Based on economic theory, social-psychology theory, organizational theory, and mathematical theory.

2. Marketing Decision Making 1971. Sales

response theory, carryover effects,

multiple territories, multiple products,

joint marketing and production planning,

multiple goals, uncertainty.

THE BROADENING OF MARKETING

• Commercial marketing

• Place marketing

• Person marketing

• Social marketing

• Political marketing

MARKETING FOR NONPROFIT ORGANIZATIONS

Professor Alan Andreasen

Georgetown University

SOCIAL MARKETING

Jerry Zaltman Nancy Lee

CORPORATE SOCIAL RESPONSIBILITY

VALUES-BASED MATRIX (VBM) MODEL

INDIVIDUAL

COMPANY

Mind Heart Spirit

Deliver

SATISFACTION

Realize

ASPIRATION

Practise

COMPASSION

Profit Ability Return Ability Sustain Ability

Be BETTER DIFFERENTIATEMake a

DIFFERENCE

MIS

SIO

N(W

hy)

VIS

ION

(What)

VA

LU

ES

(How)

VALUES-BASED MATRIX OF S.C. JOHNSON

POSTWAR SOARING TURBULENT

UNCERTAIN

ONE-TO-ONE

FINANCIALLY-DRIVEN1950s1960s

1970s

1980s

1990s

2000s

• The Marketing Mix

• Product Life Cycle

• Brand Image

• Market

Segmentation

• The Marketing

Concept

• The Marketing Audit

• The Four Ps

• Marketing Myopia

• Lifestyle

Marketing

• The Broadened

Concept of

Marketing

• Targeting

• Positioning

• Strategic Marketing

• Service Marketing

• Social Marketing

• Societal Marketing

• Macro-marketing

• Marketing Warfare

• Global Marketing

• Local Marketing

• Mega-marketing

• Direct Marketing

• Customer

Relationship

Marketing

• Internal Marketing

• Emotional Marketing

• Experiential

Marketing

• Internet and e-

business Marketing

• Sponsorship

Marketing

• Marketing Ethics

• ROMI Marketing

• Brand Equity Marketing

• Customer Equity Marketing

• Social Responsibility

Marketing

• Consumer Empowerment

• Social Media Marketing

• Tribalism

• Authenticity Marketing

• Co-creation Marketing

• Crowdsourcing Marketing

THE EVOLUTION OF MARKETING CONCEPTS

THE PROBLEM: PROFITABLE GROWTH

“THIS TIME LIKE ALL TIMES IS A GOOD ONE,

IF WE BUT KNOW WHAT TO DO WITH IT.”

RALPH WALDO EMERSON