America knows how to market itself, its products, and its ideas. For better or for worse, for richer or poorer, American marketing creativity, power, and prestige influence consumers the world over. Philip Kotler, best known for the marketing principle of the four Ps—product, price, promotion, and place—takes us on a guided tour of American marketing, including its origins and trends, its relationship to economics, and its criticisms. His talk will include examples of exemplary marketing. Kotler is professor of marketing at Northwestern University’s Kellogg School of Management, and his textbooks serve as the basis for graduate business programs worldwide.
Introduction
Why would “marketing” be featured at a humanities festival?
- Marketing is a humanistic subject.
- Marketing is a force that shapes (even creates) our wants and lifestyles.
- The theme of the festival is American, and American is the best place of modern marketing.
Marketing & Selling : “The aim of marketing is to make selling unnecessary”
Marketing Today
When did companies start to add marketing departments ? When we need to someone to do the following jobs :
- Conduct consumer research.
- Find Leads (prospect): hot lead, warm lead, cold lead.
- Prepare brochures and other promotions (ads).
| Name | Profession / Identity | Book / Contribution |
|---|---|---|
| Ernest Dichter | Motivational psychologist | The Strategy of Desire |
| Alfred Politz | Attitude scientist | Life Study of Consumer Expenditures |
| Julius Rosenwald | Business executive and philanthropist | Julius Rosenwald: The Man Who Built Sears |
| Lester Wunderman | Direct marketer | Being Direct: Making Advertising Pay |
| David Ogilvy | Advertising executive | Confessions of an Advertising Man |
| Stanley Marcus | Retail executive | Minding the Store |
| Edward Bernays | Father of Public Relations | Crystallizing Public Opinion |
| Dale Carnegie | Sales philosopher | How to Win Friends and Influence People |
Job positions today : Chief Marketing Officer (CMO), Brand managers, Category managers, Market segment managers, Distribution channel managers, Pricing managers, Marketing communication managers, Database managers, Direct marketers, Internet and social media managers.
CMO roles : (CMOs on the average hold on to their job for two years)
- Represent the voice of customer (VOC).
- Monitor the evolving business landscape and gather customer insights.
- Be the steward of the corporate .
- Upgrade marketing technology and skills of the company.
- Bring insight into the corporate portfolios and synergies.
- Measure and account for marketing financial performance.
The border of marketing is enlarging. Its technique to influence and study customer, could be used to other fields. Marketing forges ahead : Commercial marketing, Place marketing, Person marketing, Social marketing, Political marketing, Fundraising.
Criticisms about marketing : Intrusion and interruption, Exaggeration, Deceptive practices, Hard selling or pressure selling, Buy now; pay later (giving loans), Planned obsolescence (in fashion and technical products), Too much choice, promotes a materialistic mindset.
| Name | Profession / Identity | Book / Contribution |
|---|---|---|
| Ralph Nader | Activist | Unsafe at Any Speed |
| Rachel Carson | Naturalist | Silent Spring |
| Vance Packard | Business critic | The Hidden Persuaders; The Status Seekers |
| John Kenneth Galbraith | Professor and Diplomat | The Affluent Society |
| Naomi Klein | Social critic | No Logo |
| Michael Sandel | Professor and Social critic | What Money Can’t Buy: The Moral Limits of Marketing |
Best Marketers
| Leader | Brand | Mission and Vision |
|---|---|---|
| Ingvar Kamprad | IKEA | Make stylish furniture affordable |
| Richard Branson | Virgin | Bring excitement in boring industries |
| Walt Disney | Walt Disney | Create magical world for families |
| Herb Kelleher | Southwest Airlines | Make flying possible for many people |
| Anita Roddick | The Body Shop | Embed social activism in business |
| Bill Gates | Microsoft | Realize ubiquitous computing |
| Steve Jobs | Apple | Transform how people enjoy technology |
| Jeff Bezos | Amazon.com | Provide the biggest selection of knowledge delivered conveniently |
“Firms of Endearment”
Characteristics of Firms of Endearment:
- They align the interests of all stakeholder groups.
- Their executive salaries are relatively modest.
- They operate an open door policy to reach top management.
- Their employee compensation and benefits are high for the category, their employee training is longer, and their employee turnover is lower.
- They hire people who are passionate about customers.
- They view suppliers as true partners who collaborate in improving productivity and quality and lowering costs.
- They believe that their corporate culture is their greatest asset and primary source of competitive advantage.
- Their marketing costs are much lower than their peers while customer satisfaction and retention is much higher.
“The End of Work”
Market is the job creator. It accelerate the recognition of a new product, and intensify the drive to purchase it.