MARKETING
S.C. Johnson & Son Professor of International Marketing
He received his Master’s Degree at the University of Chicago and his PhD Degree at MIT, both in economics. He did post-doctoral work in mathematics at Harvard University and in behavioral science at the University of Chicago.
Professor Kotler is the author of: Marketing Management: Analysis, Planning, Implementation and Control, the most widely used marketing book in graduate business schools worldwide; Principles of Marketing; Marketing Models; Strategic Marketing for Nonprofit Organizations; The New Competition; High Visibility; Social Marketing; Marketing Places; Marketing for Congregations; Marketing for Hospitality and Tourism; The Marketing of Nations; Kotler on Marketing, Building Global Biobrands, Attracting Investors, Ten Deadly Marketing Sins, Marketing Moves, and Marketing Insights from A to Z. He has published over one hundred articles in leading journals, several of which have received best-article awards.
Professor Kotler was the first recipient of the American Marketing Association’s (AMA) “Distinguished Marketing Educator Award” (1985). The European Association of Marketing Consultants and Sales Trainers awarded Kotler their prize for “Marketing Excellence”. He was chosen as the “Leader in Marketing Thought” by the Academic Members of the AMA in a 1975 survey. He also received the 1978 “Paul Converse Award” of the AMA, honoring his original contribution to marketing. In 1989, he received the Annual Charles Coolidge Parlin Marketing Research Award. In 1995, the Sales and Marketing Executives International (SMEI) named him “Marketer of the Year”.
Professor Kotler has consulted for such companies as IBM, General Electric, AT&T, Honeywell, Bank of America, Merck and others in the areas of marketing strategy and planning, marketing organization and international marketing.
He has been Chairman of the College of Marketing of the Institute of Management Sciences, a Director of the American Marketing Association, a Trustee of the Marketing Science Institute, a Director of the MAC Group, a former member of the Yankelovich Advisory Board, and a member of the Copernicus Advisory Board. He is a Member of the Board of Governors of the School of the Art Institute of Chicago and a Member of the Advisory Board of the Drucker Foundation. He has received honorary doctoral degrees from the Stockholm University, University of Zurich, Athens University of Economics and Business, DePaul University, the Cracow School of Business and Economics, Groupe H.E.C. in Paris, the University of Economics and Business Admininstration in Vienna, Budapest University of Economic Science and Public Administration, and the Catholic University of Santo Domingo.
He has traveled extensively throughout Europe, Asia and South America, advising and lecturing to many companies about how to apply sound economic and marketing science principles to increase their competitiveness. He has also advised governments on how to develop and position the skill sets and resources of their companies for global competition.
Arts Marketing
Brand Management
Business to Business Markets
Development Economics
Distribution Channels
International Business
International Marketing
Marketing Management
Marketing Strategy/Planning/Policy
New Product Development
Nonprofit Marketing
Sales Force Management
Strategy
Urban Development and Economics
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BBC News: US interstate rivalry hits new lows - 10/4/2009
Financial Times: Something for the weekend - 9/25/2009
USA Today: States go head-to-head to lure businesses - 8/25/2009
Época Negocios (Brazil): Na era digital, é o consumidor quem manda - 8/18/2009
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Kellogg grad named among ‘world’s greatest investors’ - 9/29/2009
Up and Out of Poverty - 7/6/2009
Building value for the customer - 6/11/2009
Profs. Kotler and Shalowitz publish 'tour de force' - 8/12/2008
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Proposes and analyzes different approaches to correcting a negative image of a place
Describes and chronologically orders the events in the broadening of marketing debate
Analyses different systems of social giving
Firms are constantly exhorted to become more market driven. However, our study of 25 pioneering companies (e.g. Body Shop, IKEA, Tetra Pak) whose success has been based on radical business innovation indicates that such companies are better described as market driving. While market driven processes are excellent in generating incremental innovation, they rarely produce the type of radical innovation which underlies market driving companies. Market driving companies, who are generally new entrants into an industry, gain a more sustainable competitive advantage by delivering a leap in customer value through a unique business system. Market driving strategies entail high risk, but also offer a firm the potential to revolutionize an industry and reap vast rewards. Although established companies face four major obstacles in developing and launching radical market driving business ideas, we offer several recommendations to help established companies overcome these obstacles and become more market driving.
Focuses on the ways by which company board members can evaluate existing and proposed marketing campaigns and develop questions they should ask to their management. How chief executive officers should view marketing; Significant procedures to consider for an effective marketing effort; Marketing indicators featured in a marketing scorecard.
Distinguishes several different types of network marketing.
The nonprofit performing arts industry in America, along with many performing arts organizations around the world, are facing crises on a variety of fronts. Accordingly, arts organizations must learn new ways to attract the resources they need to sustain their mission and quality. Arts managers must improve their skills in increasing and broadening their audience base, improving accessibility to various art forms, and learning how to better meet the needs of specific audience segments and contributors. To accomplish this, they must develop a better understanding of their own business and of the interests, attitudes, and motivations of their customers. They must professionalize their marketing and management skills and learn to be accountable to all their publics: their artists, their funders, and their audiences. Then they can create offerings, services, and messages to which the target audience will enthusiastically respond, without compromising their artistic integrity.
From the mid-1960s to the mid-1980s, the nonprofit performing-arts industry in the United States enjoyed unprecedented growth. But in recent years, the arts have been hard hit by shrinking audiences, rising debt, and cuts in government funding. Can arts organizations succeed in this environment and fulfill their own special missions? The authors have observed one way in which they can succeed: through strategic collaborations--intensive, durable commitments created for mutual gain. Scheff and Kotler describe how innovative arts organizations are leveraging their limited resources by allying themselves with organizations ranging from other nonprofit arts groups to community groups to businesses. The authors tell how arts groups in Philadelphia have worked together to build audiences, how foundations and arts organizations in Chicago have made possible the construction of a new performance hall, and how a broad range of businesses and nonprofit groups have recharged downtown San Jose, California. They lay out the critical steps that organizations must take to forge viable partnerships. In a strategic collaboration, partners create joint authority and structure to carry out a common mission. They engage in comprehensive planning and operate well-defined communication channels. Each partner contributes its own resources and reputation. A strategic collaboration is a major opportunity for both nonprofit arts organizations and their partners. When well designed and executed, such collaborations can help the partners expand their customer base, develop new sources of funding, and cut costs without compromising any organization's mission or quality.
Philip Kotler is a name synonymous with the development of marketing as an academic discipline and operational practice over the last three decades. He has published not only the classical texts on the subject, like Marketing Management, but in recent times has added radical new interpretations, like social marketing. In this interview in London with EMJ's editor, Paul Stonham, he recounts some of the major new concepts he has introduced to make the subject a more comprehensive and powerful business tool, reviews the current state of marketing, sometimes said to be in a ‘mid-life crisis’, and makes some hard forecasts about the subject and the direction in which its practitioners are going. Kotler makes the point that ‘marketing’ has at least four meanings. It is important to be clear. Kotler himself has broadened marketing thinking considerably to include non-profit organizations, by searching for the fundamental concept underlying the subject. He goes on to explain some of his new ideas, societal marketing, demarketing, and megamarketing, as steps in this direction of reconceptualizing marketing. The future for marketing is exciting and full of potential change. It must certainly involve market-oriented strategic planning, specifically STP: ‘segmentation, targeting and positioning’. Subsegmentation is another firm trend. Future marketing will be assisted by greater scientific analysis like geodemographics. Kotler sees marketing's so-called ‘mid-life crisis’ as a strength not a weakness — since it is involving a re-examination of our ideas. He considers the corporate organizational aspects of revitalizing marketing, as well as the rapid growth of megaretailers and its associated tidal wave of private brands. Other trends to watch are an emphasis on value marketing and the growth of third-world middle-class markets. Such changes to marketing and the market place have educational implications for new generations of business school students and Philip Kotler spells out four major lessons to be learned.
Presents guide questions concerning the suitability of turbo marketing approach to a company. Presence of large and attractive time-sensitive market; Feasibility of a company to shorten cycle time; Principles to reduce cycle time; Costs of following a turbo marketing strategy.
This article focuses on global standardization of products. The author says that there are circumstances where a multinational can gain through increased standardization of its product and marketing mix, and circumstances where this strategy would hurt the company. There are some products and communication programs that can be taken abroad without major modifications; many consumer electronics fit that mold, although their price and distribution strategies still vary from country to country. On the other hand, many of the most notable international product failures have come from a lack of product adaptation. A modified product, would lead to higher sales in each major market, and the additional revenue would more than cover product and advertising modification costs. There are three broad forces that push manufacturers toward more international customization. The first is the extent to which customers in different countries want or require special product features. The second is the extent to which customers in different countries vary in their resources and buying behavior. The third is the extent to which environmental factors vary, such as government regulation, climate, competition etc.
In this article the author focuses on how to organize a hospital's marketing budget. The author states that hospital administrators should not focus on advertising costs until they have implemented quality standards in its facilities, food, and staff-patient relations. The author also discusses the importance of separating public relations expenditures from the other marketing expenditures.
A letter to the editor is presented in response to the article "Mega-marketing," by Philip Kotler from the March-April 1986 issue.
Focuses on the consumer responses and marketer strategies for flawed products. Decision of buyers to accept flaw in a product; Restriction of the flow of defective products to the market; Rarity on the production of substandard goods.
As international market opportunities increased, Japan's global marketing strength became evident while American global market shares fell. Having secured its domestic markets, Japan expanded into developing and developed countries. It also pursued a strategy of producing products to sell in selected segments. Concurrent with this expansion was the development of a global marketing network which include, the important stage of establishing production facilities around the world. The authors document these two strategies and provide a case example of how Japan's consumer electronics industry became dominant via global marketing. The lessons for US companies are obvious.
The purpose of this article is to draw some lessons on successful global marketing by examining Japan's patterns of global marketing. Two major strategic elements are examined--the strategic global market expansion path and the development of global marketing networks.
Design is a potent strategic toot that companies can use to gain a sustainable competitive advantage. Yet most companies neglect design as a strategy tool. What they don't realize is that good design can enhance products, environment, communications, and corporate identity.
Focuses on the factors contributing to the global market leadership of business enterprises in Japan. Theory on the economic success of the country; Business practices of firms; Close relations among the structural factors.
Explores how military strategy ideas can help business firms formulate effective marketing strategies for the 1980s. Increase in marketing competition; Competitor-centered strategies; Application of military warfare idea to business competition.
This article considers the range of approaches used to reduce cigarette smoking and notes their limited success. Technological solutions, economic incentives and disincentives, legislation, and public education have had an impact on cigarette use, but smoking remains a significant threat to health. A social marketing approach has the potential to combine and intensify these otherwise partial solutions. Through analysis of the exchange process encouraging or maintaining smoking, through segmentation of target markets to match strategies and appeals, and through coordinated interventions affecting the product, price availability, and promotion of cigarettes and smoking, a social market approach represents a means of moving beyond the present state of fragmentation and limited results.
The application of marketing to the promotion of social causes was proposed a decade ago. The authors position social marketing as an approach to social change, describe its evolution, and review social marketing applications and assess their impact.
Marketing is a topic of growing interest to nonprofit organization managers as their organizations confront new, complex marketplace problems. These institution heads are taking their first, tentative steps toward marketing, often confusing it with its advertising and selling sub-functions. Nonprofit institutions can introduce marketing in a number of ways, such as appointing a marketing committee or task force, hiring an advertising agency or marketing research firm, hiring a marketing consultant, or appointing a marketing director or marketing vice president.
The article discusses the different responsibilities of marketing and public relations functions, considers where one ends and one begins, and discusses their shared roles as the external face of the firm. The article discusses the various degrees of the use of these two functions within organizations, ranging from very little use to extensive use of strong departments. The article chronicles the evolution of marketing and public relations, presents some alternate models of the two functions, and forecasts their future relationship. The author sees a further breaking down of the boundaries between the two functions, advocating for the voice of both in corporate policy decision making.
An enormous number of U.S. companies are sales-minded, but only a few are marketing-minded. The difference is subtle and usually hard for sales executives to see, but it spells the difference between unstable short-term success and stable long-term growth. The first aim of this article is to show executives how to tell whether an organization understands and practices marketing--and if so, how well. This can be done by means of a marketing effectiveness audit. The audit is a form for rating marketing effectiveness in each of five major functions; the resulting score tells where the organization falls on a scale ranging from no marketing effectiveness to superior effectiveness. the second aim of the article is to show top management how to respond to a low or mediocre score by injecting more marketing thinking into the division or company.
The article discusses the use of marketing techniques by professional service firms. The author notes that increase in competition in the professional services industries as sell as changing expectations of clients is causing professionals to turn to techniques employed in marketing. According to the author, there are a number of barriers that stand in the way of marketing implementation in professional service industries, including professionals' hostility toward commercialism, professional association codes of ethics and a general trend towards equating marketing with selling.
This classic article has been read by countless business-school students and marketing professionals since it originally appeared in 1977 The model proposed at that time—which outlined how an independent entity should go about assessing an existing marketing program—was sufficiently streamlined that it holds up very well today In their retrospective comments, the authors discuss marketing issues that have come to the forefront in the interning years: globalization of markets, information technology, communications/promotion technology, strategic planning, more sophisticated analytical tools, and the increased attention paid to marketing throughout the organization. They close with suggestions on how to implement marketing audit recommendations.
Focuses on a problem of companies adapting to a business environment characterized by shortages and inflationary pressure. Decision options facing management during periods of shortages and inflation; Reason for the error in the assumption of businessmen that shortages is a past problem; Major adjustment elements in trying to respond to sudden shortages.
In recent years, a growing number of business practitioners and theorists have postulated that one way for a company to increase its return is by increasing its market share, and studies appear to have confirmed this relationship. But the authors of this article refuse to accept the blanket inference that "more" is necessarily always going to mean "better." A large market share, they point out, can spell more trouble as well as more profit for a company; a given project promising higher returns than others will surely entail greater risks as well. Given this direct link between profit and risk, it behooves companies to manage their market shares with the same diligence as they would manage any other facet of their businesses. This concept of managing market shares leads to some intriguing possibilities. Although most companies can profit by attempting to increase their market shares, some may conclude that they are at (or possibly beyond) the point at which expected costs and risks outweigh expected gains. The authors suggest various strategies that these companies might consider in attempting to manage their market shares.
The article discusses the role of marketing during periods of shortages. The author looks at the three characteristics of the shortages that appeared in industry in 1973, and the different schools of thought that came out of management's's view on the future character of the economy. He explains the two levels of product line review that are called for, which are the need to identify the less profitable product lines and the need to reallocate production and marketing budgets to the remaining products. Furthermore, he examines several other aspects of marketing such as the customer mix, the marketing mix, advertising, and marketing channels, and how periods of shortages will influence them.
Marketing is widely viewed as a subject serving the interest of sellers. Buyers are typically studied from the perspective of helping sellers achieve their objectives. Earlier students of marketing studied both parties to the market transaction and how each pursued their marketing advantage. The buyer has a broad range of marketing strategies available to increase the chances of consummating the desired transaction. This article attempts to restore interest among marketing practitioners and scholars in the objectives and strategies of the buyer.
Presents a proposal on how to cut down advertising expenditures in the U.S. Reduction in the number of brand competition; Economic penalties for advertising; Economic incentives for reduced advertising.
Consumer movements are not a new phenomenon on the U.S. business scene. But the current one, unlike its predecessors, shows no signs of subsiding. In fact, this author argues that consumerism is inevitable, enduring, beneficial, promarketing, and profitable. This is quite contrary to the intuitive assessment of businessmen. After discussing his own assessment, the author advances a new concept of societal marketing to replace the time-honored marketing concept.
The way marketers try to cope with excess demand or unwanted demand may affect the company's long-run objectives just as much as do marketing policies for normal times. What kinds of situations lead companies to cut back on their marketing efforts? How do methods of de-emphasis differ depending on the type of problem? This instructive and sometimes amusing analysis answers these and other questions that have never before been raised in HBR. It also suggests new directions for the study of marketing.
Can marketing concepts and techniques be effectively applied to the promotion of social objectives such as brotherhood, safe driving, and family planning? The applicability of marketing concepts to such social problems is examined in this article. The authors show how social causes can be advanced more successfully through applying principles of marketing analysis, planning, and control to problems of social change.
Social distress has always been a feature of man's existence. War, pestilence, poverty, and oppression have been so characteristic of human history that one is tempted to a functionalist explanation that they somehow serve the needs of the human or the natural order. Yet this possibility can never quite be accepted, and one always finds some fraction of mankind engaged in organized collective efforts to banish--or at least mitigate-the amount of social distress.
The article mentions the broadening scope of marketing and the challenges in marketing management. Six factors contributing to renewed interest in the marketing process and putting new demands on managers include the need for cultural sensitivity in international marketing, selling of intangibles such as insurance, incidence of social protest, and rapid innovation and competition. The development of marketing is represented in a framework of concepts: bartering or the face-to-face exchange of goods; selling where the exchange includes money; marketing that promotes economic transactions; and "furthering" where marketing extends into intangible areas that are relevant to nonbusiness organizations. Marketing responsibilities, public affairs, and public relations are mentioned.
Marketing is so dependent on human judgment, so involved with complex relationships, and so beset with imperfect knowledge that decisions are all too often made by sheer intuition rather than rational analysis. Of course, experience and intuition are vital ingredients in marketing, but their value can be greatly enhanced by objective measurement of market forces. In this article, the author shows how a company can analyze its marketing system step by step, express various relationships explicitly in a model, and then simulate alternative plans on the computer. This process will help a decision maker increase his understanding of a complex operation and evaluate the financial implications of a proposed marketing plan.
Quantitative tools came into marketing largely as a potential means for helping marketing executives make decisions in areas of high uncertainty, such as launching products, setting advertising budgets, and designing sales-force strategies. Early model building in marketing was characterized by an effort to impose standard operations including research tools, calculus, linear programming, queuing theory and Markov processes on highly simplified versions of marketing problems. This article will undertake to review and evaluate a selected sample of marketing simulations. The term simulation is interpreted broadly to reflect the fact that it is used in a variety of ways by persons inside and outside of marketing to describe their work. In the most general sense, simulation describes the act of creating a complex model to resemble a real process or system, and running and experimenting with the model in the hope of learning something about the real system. Simulation is used as behavioral modeling, as a way of introducing and handling uncertainty, as a computational technique for measuring parametric sensitivity and as a heuristic technique for finding an approximately optimal solution.
Several recent developments in marketing information systems and analytical marketing models are described. These developments in combination with others reported in this JOURNAL OF MARKETING symposium will cast the future marketing executive in the role of a market engineer. He will have a heavier involvement in planning rather than doing, and in profit maximization.
Marketing is a pervasive societal activity that goes considerably beyond the selling of toothpaste, soap, and steel. The authors interpret the meaning of marketing for nonbusiness organizations and the nature of marketing functions such as product improvement, pricing, distribution, and communication in such organizations. The question considered is whether traditional marketing principles are transferable to the marketing of organizations, persons, and ideas.
Several grand models of buyer choice behavior exist, differing in their relative emphasis on economic, social, and psychological factors. Some of the partial or incompatible theorizing can be cleared up through efforts to develop and compare mathematical formulations of the different assertions about buyer behavior. This paper deals with the problem of explaining how the purchasers of consumer staples make brand choices through time. The author contrasts seven models of increasing complexity, the last one involving all the previous considerations of brand loyalty, stochastic factors, the influence of the last brand purchased, learning, competitive brand features, competitive brand promotion, and word-of-mouth influence. He concludes that model complexity is necessary both to provide a norm for exposing the omissions of simpler models and as a requirement for the eventual development of useful and realistic market simulators.
In a small but increasing number of companies the traditional intuitive and judgmental approach to marketing decision making is giving way to advanced mathematical model analysis, which can be most helpful to business managers. This development has led to practical applications in such areas as new products, pricing, advertising, physical distribution, and sales force management.
Presents a view of the major concepts and design steps in developing a modern marketing information system. Inadequacies of the existing information system for marketing; Elaboration of the three marketing information flows; Steps to take by companies serious about a total systems approach to marketing information.
What happens in the buyer's mind between the acts of receiving impressions about products and making his purchasing decisions? Several theories exist, but there is no generally accepted comprehensive theory. Here the author contrasts buyer behavioral models based on five major theories, and shows how each has unique marketing applications.
The author suggests that executives should consider whether their company's interests are advanced by making all departments focus on customer satisfaction. A new marketing concept has led to organizational proposals, often creating much interdepartmental conflict and concern. The author says that there is less unanimity on how much authority marketing should have over other departments to bring about coordinated marketing. After briefly examining the typical concerns of each of the other departments, he concludes that top management should reduce its emphasis on departmental efficiency and increase its emphasis on the development of interdepartmental policies and practices designed to advance overall company interests.
The article attempts to define the seriousness of the product-line pruning problem and describes a new control system currently under development for conducting efficient and rapid annual product checkups. The author presents a detailed discussion of the new approach so that it can be implemented by any company concerned with limiting its product population to the more robust contenders. The system consists of the appointment of a high-level and broadly representative management team which holds meetings at about the same time each year for the purpose of spotting dubious products, evaluating them, choosing those which must be dropped, and developing the phasing-out program for them.
Of all the functional areas, marketing has been marked by the least analytical progress. This is not due to executive apathy, but to the difficult nature of marketing decisions. This new model should suggest better ways to conceptualize marketing.
In evaluating a new product idea, it can be misleading to consider only one conception of the product's attributes and marketing program. Different conceptions of the marketing mix will yield different estimates of profit potential. The author shows how the "best" marketing mix can be found under the conditions of limited information. The estimated profit potential of this best mix becomes the basis for judging whether the company should develop the new product.
A goal programming model for selecting media is presented which alters the objective and extends previous media models by accounting for cumulative duplicating audiences over a variety of time periods. This permits detailed control of the distribution of message frequencies directed at each of numerous marketing targets over a sequence of interrelated periods. This is accomplished via a new logarithmic non-reach device and a continuous lognormal generation of the discrete message frequencies.
Marketing executives and mathematicians have joined forces in a search for improved decision models to handle such problems as new-product development, media selection, retail inventory control, and size of sales force. The author of this article explains and illustrates those operations research models which hold the greatest promise in the marketing area.
Describes the range of traditional and new services that are offered by marketing consultants.
This book contains hundreds of questions about marketing that have been asked to Professor Philip Kotler and his answers.
Book is based on interviews with companies that show corporate social responsibility. Distinctions are made among different forms of corporate giving to good causes. Lessons are drawn for running and efficient and effective corporate social responsibility program.
This is a capstone course in marketing, applying and extending into the future many previously introduced marketing concepts. The course addresses questions critical to the future of marketing from a number of different perspectives. Leading thinkers in marketing will provide their insights as well as guide discussions to address some of the most important marketing questions facing leaders in the future, including what marketing's role will be, how marketing concepts and tools need to be adapted to conform to the future marketplace, and what marketing principles and frameworks will remain valuable into the future. In addition to their class sessions, students will work individually and in teams.
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