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I still remember the day I issued Philip Kotler's book titled Principles of Marketing (in its red and white cover) from my college library and how that made me decide in my first year of undergraduate degree program that I wanted to pursue a master's degree with majors in Marketing.
Students or graduates of Marketing are well aware of the fact that this is a dynamic field that constantly evolves with changes in consumer behaviour, technology, and the business landscape. I have personally witnessed the evolution in marketing trends over the past two and a half decades since the first time I was introduced to the subject.
Over these years, one name that stands out as a pioneer and thought leader in the world of marketing is Philip Kotler. Over the years, Kotler has made significant contributions to the field of marketing through his innovative theories and strategies that have evolved in the same way as marketing strategies have.
When asked about the future megatrends in Marketing, Kotler shares his opinion saying, “The major economic force is hyper-competition, namely companies are able to produce more goods than can be sold, putting a lot of pressure on price. This also drives companies to build more differentiation. However, a lot of the differentiation is psychological, not real. Even then, a company’s current advantage doesn’t last very long in an economy where any advantage can be copied rapidly.”
Philip Kotler: The Father of Modern Marketing
For those of you who didn't pursue a marketing degree (or have been living under a stone), Philip Kotler, often referred to as the "Father of Modern Marketing," is a renowned economist and marketing guru who has played a pivotal role in shaping the field of marketing as we know it today. His passion for understanding consumer behaviour and market dynamics led him to a lifelong career in academia and marketing consultancy.
Kotler's influence extends beyond academia; his books, articles, and teachings have had a profound impact on marketing professionals, entrepreneurs, and business leaders worldwide. He has authored over 80 books, including the seminal "Marketing Management," which is the world's most widely used graduate-level textbook in marketing; and a personal favourite (I still remember the blue cover and white font).
Philip Kotler’s work is a clear depiction of his belief that marketing theories need to go beyond the basic price theory and incorporate the dynamics of innovation, distribution and promotion systems into analyzing, explaining and predicting economic outcomes.
He developed new concepts in marketing including atmospherics, demarketing, megamarketing, turbomarketing and synchromarketing and applied them to relevant case studies of their time.
For instance, Starbucks is a great example of a company that has successfully used Kotler's concept of positioning.
Starbucks targets high-income, educated customers who are willing to pay more for premium coffee.
This is the reason why the brand is positioned as premium coffee that offers a unique customer experience.
Meanwhile, Nike is another company that has successfully applied Kotler's marketing theories. Nike uses a variety of marketing channels to reach its target customers, including advertising, sponsorships, and social media and also focuses on building relationships with consumers through its loyalty program and customer service; while maintaining a focused approach to connecting with their target consumers.
In addition to his work on marketing theory, Kotler has also been a strong advocate for social responsibility in marketing. He has argued that businesses have a responsibility to use their marketing power to improve society. Kotler has also developed a number of marketing frameworks that can be used to measure the social impact of marketing activities.
Harvard Business Review carries this insightful piece on Philip Kotler’s views on the difference between sales and marketing. Titled Ending the War Between Sales and Marketing, there are interesting points of debate regarding the belief of sales departments that marketers are out of touch with the reality of the marketplace while marketing people, believe that the sales force is myopic and blind to the future.
Kotler's Key Marketing Theories
The Four Ps of Marketing (Marketing Mix)
One of Philip Kotler's most enduring contributions to marketing is the concept of the "Four Ps," also known as the marketing mix. This framework outlines the four key elements that a company must consider when developing a marketing strategy: Product, Price, Place, and Promotion.
Sharing his views on the marketing mix, Kotler says, “(Marketers should) use the marketing tools – product, price, place and promotion – in an integrated way.” He believes that many brands are struggling to find their niche and are not ready to adapt to new situations; which is why their marketing mix has not evolved as it should have.
However, Apple is a prime example of a company that has excelled in implementing Kotler's Four Ps. Apple's products, such as the iPhone and MacBook, are known for their innovation and quality (Product). The company strategically prices its products to reflect their premium quality while maintaining a strong customer base (Price).
Apple's retail stores and online presence ensure that its products are accessible to consumers around the world (Place). Lastly, Apple's iconic marketing campaigns, led by the late Steve Jobs, have effectively communicated the value of their products to consumers (Promotion).
Segmentation, Targeting, and Positioning (STP)
Kotler introduced the concept of Segmentation, Targeting, and Positioning (STP) as a strategic approach to marketing. This theory suggests that companies should divide the market into segments, select one or more target segments, and then develop a unique positioning strategy to meet the needs and preferences of those segments.
The Coca-Cola Company, the global beverage giant, has effectively utilized the STP approach. For instance, the company has segmented its market based on demographics, offering different products like Coca-Cola Classic, Diet Coke, and Coca-Cola Zero Sugar to cater to various consumer preferences (Segmentation).
Coca-Cola has also targeted specific market segments, such as young adults and teenagers, with creative advertising and promotional campaigns (Targeting).
In terms of positioning, Coca-Cola has positioned its brand as a symbol of happiness and refreshment, associating it with memorable moments and positive emotions (Positioning).
Social Marketing
Philip Kotler is also known for his contributions to social marketing, a branch of marketing that focuses on promoting behaviours that benefit society as a whole. While traditional marketing aims to drive sales and profit, social marketing aims to influence behaviours for the greater good.
Kotler says, “Companies that are already known for caring about society will be more likely to try and add a flavour of brand activism.” He is quite vocal about his likeness for Unilever
in this regard. He singles out brands such as Dove, Axe (Lynx in the UK) and Ben & Jerry’s, which have addressed issues such as women’s self-esteem, male suicide and racial justice.
One notable example of social marketing in action is the "Designated Driver" campaign under the Harvard Alcohol Project and Center for Health Communication that aimed to reduce drunk driving incidents in the United States. This campaign encouraged individuals to designate a sober driver when going out to drink alcohol. By appealing to a sense of responsibility and care for others, this campaign successfully contributed to a significant reduction in drunk driving accidents.
Wrapping It Up
When asked about when marketing first appeared, Philip Kotler had an interesting response to the question. He said, “Marketing started with the first human beings. Using the first Bible story as an example (but this was not the beginning of human beings), we see Eve convincing Adam to eat the forbidden apple. But Eve was not the first marketer. It was the snake that convinced her to market to Adam.”
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