Kotler on Marketing | Philip Kotler

Summary of: Kotler on Marketing: How to Create, Win, and Dominate Markets
By: Philip Kotler

Introduction

Dive into the world of marketing with Philip Kotler’s ‘Kotler on Marketing: How to Create, Win, and Dominate Markets’. This book summary navigates through a five-stage marketing approach that focuses on research, target market selection, product positioning, marketing tactics, and evaluation. Delve into different marketing types – responsive, anticipative, and need-shaping – and learn how to identify consumer needs, carry out market research, and focus on innovation. Explore the significance of understanding your target market, positioning your product effectively, and adapting the old ‘Four P’s’ model for the modern, customer-centric economy.

The 5-Stage Marketing Method

Marketing is not just for-profit organizations, but all kinds of organizations that desire to attract resources from the public. In this book summary, the author introduces a five-stage marketing method that revolves around offering people perceived value in return for their resources. The first stage is research, the second is to choose your target market, the third is to position your product to appeal to this market, the fourth is to implement marketing tactics, and the final stage is evaluation. The method offers a compelling framework for effective marketing strategies that continuously listens to customer feedback, undertakes regular auditing, and adapts to good ideas that emerge.

Three Types of Marketing

Marketing can be classified into three types: responsive, anticipative, and need-shaping. Responsive marketing focuses on fulfilling pre-existing needs while anticipative marketing recognizes emerging trends and creates products to meet newly arising needs. The boldest form of marketing is need-shaping marketing, which involves creating needs that don’t yet exist. Though market research is essential for the first two types of marketing, it is not as useful for need-shaping marketing. Therefore, companies need to heavily invest in innovation and development to be successful in this kind of marketing. Toyota, for example, successfully redesigned their car trunks after observing customers’ difficulties in loading groceries into their cars. Marketing ultimately depends on consumer needs and is the art of identifying, fulfilling, and sometimes creating consumer needs.

Target Marketing Strategy

After selecting a product to take to market, it’s important to choose your target market carefully. For most products, target marketing is more efficient than massive advertising campaigns. Targeting a specific segment of the market allows for a more specific offering and a greater chance of becoming the supplier of choice for that group. However, if the target market chosen is too narrow, there might not be enough profitable customers to service. To select a target market, divide potential customers into smaller categories such as demographic background, needs and desires, occupation, and income. Choose market segments that are likely to be the most profitable based on whether the group is able and willing to buy your product and if you can serve them in a superior way.

Uniqueness through Positioning

in this era of intense competition, it has become increasingly challenging to make a product stand out. Offering a completely new product is not always viable, but positioning is. Positioning is how you present your product in a way that appeals to your target market. You could position your product by quality, application, occupation, or combining multiple benefits. Successful marketing strategies generally weave together a tapestry of different positionings, which makes it harder for competitors to imitate or undercut your offering. Adding extra benefits and services that augment your product’s value also help in positioning. In summary, don’t think of your product as just a product, think of it as a full benefits package.

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