About This Book:
In this book, you will learn about how effective marketing is. You will definitely want to make the best selling products, win the trust of the customer and want to be the leading brand in the market. There are also brands which have been made for a long time. Learn from this book how they did it. If you work in branding, marketing, advertising or sales, then this book will help you a lot.
Who should read this book
Business Students, Marketing, Branding, Advertising and Sales Professionals
About author
Philip Kotler is the author of 60 books written on marketing. He is also a marketing consultant and a very well known professor. Kevin Lane Keller is the author of Famous Textbook, Strategic Brand Management. He is also a professor and a branding consultant.
Let's We Start Summary:
Introduction:
Do you know the most effective method of marketing? Do you want to know how a business market wins the loyalty of customers by dominating the rest? Don't you want to know how successful brands like Nike, Kimberly-Clark, Wal-Mart, Caterpillar and IKEA do their high-level marketing? In this book summary, you will read about marketing management. In this, you will tell about marketing strategies and marketing research.
In this book, you will also get to learn how marketers can give the best products and services by collecting and analyzing information. We will also tell you about Consumer Behavior and about Behavior and Factors Influencing it. Marketing is not just about making money. It teaches you how you can bring the best product or service market through planning and perfect execution. It is not about short term solutions. And in the end, we will talk about giving the best value to the customers.
Defining Marketing:
What is marketing? We can disable this broad concept in 3 words. And that is "meeting needs profitability". This means to find the needs of the people, then to make a huge profit by creating the product according to the needs of the customers. The goal of marketing is to understand the customers so well that they can make perfect products for them.
When a product completely satisfies the demand of the customers, then it is called good marketing. If the marketing planning and execution are done properly then the product will be sold on its own. Then you will not need any false tricks i.e. Gimmick Cell. And once the product is available in the market, people will come and buy it themselves. He himself will be excited to use that product. But good marketing does not just end at the product launch, it is important to continue even further.
Most successful brands are finding new ways to meet the demands of the customers and also to avoid competition. Nike is one of the world's biggest brands. And Nike's core marketing message is that it provides high-quality rubber shoes that are specially designed for athletes. And brands are running on this basis. Nike thought of the "pyramid of influence". The idea was that a small group of athletes would infuse the rest of the aspiring athletes with their shoes and sportswear.
Today, Nike has established itself as a marketing brand of high performing athletes. In 1985, Nike signed Michael Jordan as brand ambassador. Although it was the beginning of Michael Jordan in the field of support, in such a short time he gave an amazing performance. And this strategy worked because in the same year Air Jordan had collected $ 100 million.
In 1998, Nike released it's first "Just Do It" ad campaign. In this, athletes were given a clear message to chase their goals. Through these AIDS, Nike had established the image of one of its self-empowered sports in sports. "Just Do It" is Nikki's slogan even today. When Nike expanded into the European market, the company changed its approach. He felt that the "Just Do It" campaign would be a little aggressive for Europe. That's why Nike capitalized on football, which is Europe's most popular support.
Nike sponsored many local and national football teams of Europe. And above all, in 2007, Nike acquired Umbro, a British brand of football shoes, uniforms and equipment. Today, Nike alone supplies uniforms to 100 football teams all over the world. Naiki made a mark at the 2008 Asia Summer Olympics. Although the official sponsor of this event was Adidas, Naiki removed the AIDS by wearing Olympic shoes to her athletes. Similarly, the company-sponsored athletes, mostly Chinese, and 12 of the 11 American basketball team members.
The result of this marketing strategy was that Nike's sales in Asia had increased by 15% to reach $ 3.3 billion. Many experts believed that Nike's marketing strata were more effective than Adidas during this event, which was the official sponsor of the Olympics. Nike also partnered with famous athletes such as Tiger Woods and Maria Shapira. However, in 2008, when the Wimbledon match between Roger Federer and Rafael Nadel was held, both champions were sponsored by Nike. From his shoes to the dress, all belonged to Nike. At that time it seemed that this is not a match, but a 5-hour commercial run of Nike.
"Designed for Athletes by Athletes" is Naik's mantra. In a way, the company has got its target market as high performing athletes. Nike created the shoes, apparel and equipment that these athletes wanted. And for this reason, today the leading brand has become the leading brand of Nike Support. "Just Do It" is the trademark of Nike, which is inspiring all the athletes of the world.
Developing Marketing Strategies:
Behind the marketing activities of any brand is its marketing strategy, which requires both display and flexibility. Disappointing in marketing strategies is very important as it should be at the core of the business. This is your commitment in a way, but it should not be rigid. The company should be flexible according to the times and should change the changing demand of the market. Keep improving the marketing strategies in other words but don't leave the core value. In earlier times, traditional marketing was dominated in business.
After creating the product, it was marketed only when it came time to sell it. But in today's modern time, this simple idea will no longer work. Because today competition is too much. And apart from this, today's customer is also smarter. Today there are many products and services in the market which compete for the best value and the best price. And due to the internet, today's customer is more informed. Today, keeping your marketing stick and making loyal customers for any business is no less than a big challenge.
So how to develop effective marketing strategies in such situations? The goal of any business is "Deliver Customer Value at a Profit". The more value you give, the more profit you will get. Marketing strategies must be a value driver. The first phase of effective marketing is STP i.e. Segmentation, Targeting and Positioning (STP or Segmentation, Targeting and Positioning). And this product is the stage even before the creation. Segmentation is the meaning of dividing the market into several parts. Targeting means targeting specific clients. And positioning is to find out what value your product will give and how it is different from the rest.
How do you decide who will use your product? It is very important to understand what type of customers you want. Because it is your goal to create a product on the demand of those special customers. Because of the customers, you have targeted, only they can give a higher price for a higher value. And the same customers would also like to recommend (recommend) your product. So STP is done before production. The second phase is to create value which is done while producing.
A business coming to this stage decides about the special features of its product and its distribution and pricing. The third phase is communicating the value. At the time of product launch and after that customers are told about the value of the product. Marketing strategies should be reflected in platforms such as the company website, social media, blogs, prints and TV commercials. Sports channel ESPN is one such company with effective marketing strategies. ESPN's Meaning is Entertainment and Sports Programming Network.
This company was established in 1978. In those days, ESPN started showing regional sports news with the help of a single satellite in Connecticut. In the 1990s, ESPN started marketing as a sports authority whether it was television or print media. Within a few years, ESPN had expanded its business into many categories. Today, ESPN operates several cable channels, a magazine, a website and several local radio stations. ESPN has not only made its original TV and movie series but has also created sports merchandise.
The company annually earns $ 5 billion. In 1996, the Walt Disney Company purchased ESPN. ESPN created its marketing slogan "Surviving Sports Fence, Anytime, Anywhere" and since then the company has carried on this branding. ESPN's brand message was so powerful that once a sports fan said "If ESPN had been a woman, I would have married her". From fantasy league to online gaming and social media as well as making mobile apps, ESPN is playing its commitment to serve sports fences. ESPN always remembered its core marketing but it was always flexible with current trends. The company has made its mark as a sports authority not only in America but also in many other countries.
Collecting Information and Forecasting Demand:
Information is very important in marketing. The business that collects superior information can understand the customer in the same manner as the battery, accordingly, he will develop the battery products and will be able to execute the battery marketing plan. It is very important to have a continuous flow of information in the business so that the marketing manager can make the right decision.
Every company has an MIS i.e. marketing information system in which analytics data is collected with the help of people, tools and procedures. And it is the job of MIS to distribute this information to marketing managers in time and accurate way. Successful brands invest in MIS and they also get a lot of benefit from it. Marketing information is the 3rd part of the system. The first one is internal company records. The second is marketing intelligence activity and the third one is marketing research. Internal company records contain collected data of order forms, sales invoices, inventory lists and daily transactions.
Sales reports in Wal-Mart type companies do a lot of monitoring so that records of millions of customers' demand can be kept. Wal-Mart has an efficient sales and inventory system that collects data from "every customer, every store and every day". And these systems are updated after every hour. Due to the increasing use of the Internet, companies have the advantage of "cookies" that keep a record of the online behaviour of individual customers.
Cookies are a very helpful tool for business-targeted marketing. Customers also get their right product or services, so it is an advantage for them too.
Whether a business is online or offline, it is necessary to have its own database. It should also contain the data of the customer's demographics, where he is from, how much he belongs to, etc. and psychographics i.e. how he behaves. This means that the business should have an idea not only of the edge, gender and location of its customers but also of more targeted information such as hobbies, opinion and lifestyle. A reliable database will enable marketers to create target advertisements and sales letters that will directly appeal to the right customers, and improve the company's sales.
Consumer electronics company Best Buy has a database of more than 15 terabytes. And this information is collected by them in 7 years time. Best Buy collected such a huge amount of information from all phone call records, emails, sales invoices and other sources. After database collection, the company runs its intelligent algorithms. Best Buy has classified 100 million individual categories.
There are some customers who are called "Buzz", and those who are young technology buffs, that is, they have a lot of knowledge about technology. Then there are some customers who are called "Jill" which mothers hai. "Barry" speaks to the customers who are ameer professionals. And some "Ray" fall into the category of customers who are typically family men. Each category has its own needs and choices. And because Best Buy understands its customers so well, its marketing is so precise. That is why the customer feels that the product of their choice has been made only for them.
This is the secret that customers are so loyal to this brand. And every time they come to get the product from Best Buy. So now you must know why Precise Marketing guarantees sales increments and long term success.
Conducting Marketing Research:
So how can companies do precise marketing other than internal records? So the answer is marketing research. In this process, companies collect facts about customers and then analyze them. Effective marketing research helps to create the perfect product that customers want. There are 6 steps of marketing research.
Step 1 is to define the problem. Step 2 is to develop a plan. Information is collected in step 3. In step 4, that information is analyzed. The results are presented in step 5 and the decision is taken in step 6 in the last. In Step 1, the marketing manager must have a special approach to understand the problem. For example, American Airlines wanted to provide internet for its first-class passengers.
So if he defines the problem in such a way that "know everything about the needs of your first-class passengers") then it would have been much broader because it will also collect the unessential data. And if those problems were to define that "find out how many passengers who took a Flight B747 from Chicago to Tokyo are willing to pay $ 25 for an Internet connection", then it would have been a bit more narrow. So he approached a specific and simple approach. American Airlines may ask for step 1 "Internet service for first-class passengers is significantly more important than other services such as power plugs or enhanced entertainment." Or "How many first-class passengers can choose American Airlines because of Internet service?"
For this special problem, marketers can plan Step 2. What data sources or research instruments they will have to use and how much cost they will have, they will have to find out all these things. Will the survey be more effective or a focus group? Will the product be sampling or distributing questions? Step 3 is to collect information. If marketers want to survey, then it can be through social media or phone calls. Or talking to customers face to face, such as in shopping malls or in a party's house.
In step 4, tabulating and collecting data is done using statistic use. In step 5, marketers present the collected data in recommendations form or invaluable insights. And then it is the turn of step 6, in which the market evaluates the results of the research. One of the best examples of effective research marketing is the diaper brand Huggies by Kimberly-Clark. Kimberly-Clark is the same company that manufactures Cotex Sanitary Napkins and Kleenex Facial Tissues.
For the Haggis, marketers researched for 3 years, then they were able to create a new product. The plan was that a home interview of the mothers with different ethics and background be taken in the entire country. Marketers also fitted small cameras so that the response to the diaper changing routine could be monitored. This led him to discover that New Moms often had to struggle to change diapers because the babies kept on shaking their feet constantly. So the diaper should be in perfect shape according to the body of the baby. Mothers were also in demand that their babies should feel more comfortable, they do not know that they are wearing diapers. The result of this research was that the company made its new diaper quite slim and body fit.
This new diaper was 16% less wide and its back waistband was more stretchable. Mothers also said that she often uses cartoon designed diapers so that the baby is happy while wearing them. And that was the reason Haggis had secured the license of Disney character Winnie the Pooh. The result of this market research was that Huggies Supreme Natural Fit became a highly successful product and the company's sales reached the top. Not only this, there was a lot of increase in the market share of Haggis as well. Kimberly-Clarke sold diapers worth $ 4 billion in 2007.
Creating Long-Term Loyalty Relationships:
Today many brands are in the market that is competing for the same product. But the thing that differentiates one brand from the rest is the level of value that is given to the customers. Many Decades ago the goal of marketing was to sell only the product. It only lasts until it is sold and bought. But modern marketing is more holistic. Because competition is very high, marketing careful planning is done. The most important thing is that its goal should be to build a relationship with customers. In addition to product engineering, today's business needs market engineering as well. If spoken in simple terms, it should be the core of the business that customers can be given more value.
As marketing experts say, "Business Secured by Getting, Keeping and Growing Customers". Customers are the reason for which you build factories, hire employees, schedule meetings or engage in any business activity. You have no business without customers. Today's modern companies have also learned what is the importance of being customer-centric. Traditional organizers used to keep senior managers at the top, but this model has now become outdated. And the businesses which still follow it will never be able to run. Modern Organizers is customer-oriented. They invert their business models. Customers should be on top of the business model. They should be given top priority, highest import and great value.
There are frontline people under the customers. Which are the staff, cashiers and salespersons who interact directly with the customers. This is the only person who serves and satisfies customers. Next comes the middle managers who support the frontline logo. Senior managers come at the bottom. But this does not mean that only the frontline logo should deal with the customers. It is very important that every level should be personally included in knowing and serving customers and meeting customers.
Adam Smith once said "The real price of anything is the toilet and trouble of acquiring it" (The real price of anything is the toil and trouble of acquiring it. ") Customers not only see the monetary cost of the product at the time cost. , Also sees energy cost and stress cost. He sees that buying the product is not more time consuming or energy-consuming? Not very stressful? If the price is low but the distribution of the product is not done properly, the customer will not buy it. So marketers use two methods to increase product value. And that is to increase the total customer benefit or decry the total customer cost.
When a customer takes a product or service, he is not only convincing the item, but he also keeps his interaction and brand image with the frontline logo. All the benefits or cost required in taking a product are called CPV or Customer Perceived Value. And the higher CPV the brand has, the more profitable, popular and successful it will be. It will be the biggest market share, and that brand will be ahead in competition due to the loyalty of its customers. One example of this is the construction equipment company Caterpillar.
There is a reason behind why people trust Caterpillar Company more than Hitachi, Volvo or Komatsu. The first and most important reason is that the caterpillar makes the most reliable and durable heavy equipment. And the most important thing is that the caterpillar gives the highest total percentage value. The company has a large range of full-line construction equipment. The company provides everything that is needed in a construction business. And apart from this, they also have better payment plans and options. Time cost, energy cost and stress cost are quite low to buy equipment.
Caterpillar has many dealers that are spread all over America. Every dealer works at the independent level and keeps all the products. Not only this, their dealers are well trended and quite reliable too, which assist the customers in the right way. Caterpillar provides the best parts and best service system not only in America but also in many other countries, due to its best value, it sells products at 10% or 20% more price than its competitors. Komatsu and other companies will still need to do a lot of marketing improvement to compete with this giant.
Analyzing Consumer Markets:
What triggers customers to buy? What influences them to choose brands or products? This concept is called Customer Behavior in which it is studied how the customer selects, buys and uses the product according to his needs. There can be many different factors influencing consumer behaviour such as cultural, social or personal factors. IKEA is an example of one such company which is very good at analyzing consumer behaviour.
IKEA is a Swedish company that has successfully entered various international and domestic markets. So how did IKEA achieve all this? How did it become a leading brand in home furnishing? A 17-year-old Swedish boy, Ingvar Kamprad started a small business in his hometown. Today, after 70 years, IKEA has become a very large company that operates in 50 countries and has more than 500 stores all over the world. The mission of IKEA is to create great value for customers by giving them great value.
And as founder Ingvar Kamprad once said, "People's wallets are very thin, so we should take care of their interest." The company knew how important the cultural factor is in consumer behaviour. In China, IKEA sold roster theme placemats to celebrate the Year of the Rooster. In the US, marketers objected that people buy vases and use them as a drinking glass. Because Americans used to find a regular glass of IKEA quite small.
And that's why the company took over the U.S. To serve the market, we started making large size glasses. IKEA marketers often go to their homes to try and find out where their product needs improvement. When he visited the houses of Europe and the US, he saw that there is a difference in the way people use the cabinet. Europeans hang their clothes in it, while Americans prefer to keep it folded. Therefore, IKEA designed cabinets with deeper drawers for the American market.
IKEA marketers also visited the California Hispanic Community logo. He noticed that these people are very influential with Hispanic culture and prefer to design their own dining area in the same manner. And IKEA started offering furnishings with a bright colour palette in its California branch, keeping this cultural factor in mind. He also added some more chairs design and large size tables so that the Hispanic community's people get more dining space and their walls have more picture frame hangs.
Conclusions:
You learned about this book through marketing. We told you about marketing strategies, market research and consumer behaviour. You also learned in this that only the customer stays in the centre of any marketing activity. Merely making chip products is not enough. A business will also have to conserve things like service efficiency and customers' convenience. Marketing management takes a lot of time, efforts and money. Therefore, only after the battery planning, a product should be launched. So next time when you go to a department store, study the marketing strategies of your favourite brand. Do you know something that will give you a batter's choice and help in improving your lifestyle?
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