Marketing Moves: A New Approach to Profits, Growth, and Renewal

BOOK SUMMARY

“MARKETING MOVES: A NEW APPROACH TO PROFITS, GROWTH, AND RENEWAL”

AUTHORS:

PHILIP KOTLER

DIPAK C. JAIN

SUVIT MAESINCEE

PUBLISHER:

HARVARD BUSINESS SCHOOL PRESS

BOOK SUMMARY OF ‘MARKETING MOVES: A NEW APPROACH TO PROFITS, GRWOTH, AND RENEWAL’

AUTHORS: PUBLISHER:

PHILIP KOTLER HARVARD BUSINESS PRESS

DIPAK C. JAIN

SUVIT MAESINCEE

BRIEF INTRODUCTION:

Marketing guru Philip Kotler and other two eminent academics have written this well researched work on marketing. The book is written in the form of strategic principles. The cornerstone of their approach is the idea that marketing has changed due to the emergence of digital technologies, shifting the emphasis away from traditional marketing principles towards a more customer centric approach. They attempt to rewrite marketing theory by introducing the concept of "holistic marketing", which they argue must be accepted in order to succeed in this new Information age. This 'New Economy' has its foundation in managing information and use of the information industries. Those who quickly embrace the need to digitise their businesses achieve cost savings and increased market penetration. It aims to help companies:

• Identify new value opportunities for renewing their markets

• Efficiently create more promising new value offerings

• Use their capabilities and infrastructure to deliver the new value offerings

efficiently

At the heart of their thinking about the new economy are a few key facts. First, buyers have been empowered by the digital revolution: they have more products being offered to them, more suppliers competing to sell those products, and more information on which to base their purchase decisions. Second, products are rapidly commoditized due to the rapid diffusion of knowledge and the existence of well-developed supplier networks. Finally, the new technologies permit companies to engage in widespread two way communication with their customers and create new products with this information. These changes, the authors argue, require that companies move away from the “marketing concept" and toward an idea they call the "holistic marketing framework." This means that success requires a restructuring of the business, so they gather deep knowledge about customers and then have the capacity to offer customized products, services, programs, and messages. Clearly, this is a careful, systematic approach to the new economy that is close to unique. The authors discuss and analyze nine blocks and four platforms. The length and depth of the information is thought provoking. Every marketer and strategic planner will find much in it that is of high value.

ORGANIZATION OF BOOK CONTENTS:

Divided into two sections, the book discusses how marketing theory has changed as a result of the digital economy, and challenges the assumptions behind traditional strategic marketing theory, and then goes on in the second half to look at how you can put this into practice. It has a range of ideas, checklists, frameworks and examples that can be of practical use to all managers. Topics include formulating a market renewal strategy, identifying market opportunities and achieving profits and growth through market renewal. It is aimed at the practitioners, students of marketing. Each chapter concludes with a series of questions to think about in respect of the principles discussed in that section. The comprehensive notes and references section at the end of the work shows the extensive research that has gone into the production of this book. A well-structured Index is included.

CHAPTER 1: POSITIONING MARKETING AS THE DRIVER IN THE DIGITAL ECONOMY

• Many forces are shaping the world of tomorrow, today. They are biotechnology, globalization, deregulation, privatization etc. this has created new economy which is based on digital revolution and management of information industries. The major shifts in the business and marketing thinking in the times of new digital economy are listed below:

(1) From asymmetry of information to democratization of information.

(2) Form goods for elites to goods for everyone

(3) From make-and-sell to sense-and-respond

(4) From local economy to global economy

(5) From economics of diminishing returns to the economics of increasing returns.

(6) From owing assets to gaining access

(7) From corporate governance to market governance

(8) Form just-in-time to real-time

• Digital revolution has given consumers new capabilities:

(1) A substantial increase in buyer power

(2) A greater variety of available goods and services

(3) A great amount of information about practically anything

(4) An increased ability to interact with vendors when placing and receiving orders

(5) A leveraged ability to chat with other buyers and compare notes.

• Today’s companies have also benefited form new capabilities ushered in by internet.

(1) Companies can add a powerful new information and sales source with extended geographical reach to inform customers and to promote their products and services.

(2) Companies can facilitate two way communications with tier customers and prospects as well as expedite transactions.

(3) Companies can customize their offering and services to individual customers.

(4) Companies can improve their purchasing, recruiting, training and internal and external communication

• Authors identify three major