Kiev Business 5/19/06 docx

The New Marketing and Sales

Strategies and Tactics

 Philip Kotler, Ph.D

 Kellogg School of

Management

 Northwestern University

 Kiev, Ukraine

 May 19, 2006

My Message

 Marketing’s performance has been disappointing.

 You must replace your Old Marketing with New Marketing that is:

 Holistic

 strategic

 technology-enabled

 financially-oriented

The New Marketplace

 Commoditization.

 Competition of cheaper brands from China.

 Rising selling and promotion costs.

 Proliferation of distribution and media channels.

 Power shifting to giant retailers.

 Power shifting to increasingly informed customers.

 Shrinking margins.

 Mergers, bankruptcies.

Marketing’s Results

Are Embarrassing

 TV advertising has lost much of its

former efficiency.

 Sales promotions are mostly

wasted.

 Direct marketing mailings have

poor response.

 Too many sales calls done by the

numbers.

 High rate of new product failure.

 Marketing focuses too much on

the short run.

 Marketing has become a one P

function.

How Do CEOs See Marketing?

 Marketing is Advertising and Selling.

 Marketing is 4Ps.

 Marketing is STP and 4Ps.

(STP: Segmentation, Targeting, Positioning)