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8/7/2019 26wordsonmarketing-110224031831-phpapp01

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A-Z

Lessons on Marketing

6By Philip Kotler

Practice your ABCs daily to manage your marketing


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A- AdvertisingMake good advertising, not bad advertising. David Ogilvy cautioned:Never write an advertisement which you wouldnt want your own familyto read. You wouldnt tell lies to your own wife. Dont tell them to mine.


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B- BrandA brand saves people time, and this is worth money. Niall Fitzgerald, chairmanof Unilever, observed: A brand is a store-house of trust that matters moreand more as choices multiply. People want to simplify their lives.


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C- ChangeYour company has to be able to recognize Strategic Inflection Points,defined by Andy Grove of Intel as a time in the life of a business when itsfundamentals are about to change.


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C- CompanyTom Siebel, CEO of Siebel Systems, has a simple but comprehensive view of whatcreates great companies. Focus on satisfying your customers, becoming a marketleader, and being known as a good corporate citizen and a good place to work.Everything else follows.


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C- CompetitorAccording to marketing guru Theodore Levitt: The new competition is notbetween what companies produce in their factories, but between what they addto their factory output in theform of packaging, services, advertising, customer advice, financing, deliveryarrangements, warehousing, and other things that people value.


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C- CustomerOver 30 years ago, Peter Drucker emphasized the importance of customer thinkingto the success of a firm. He said that the purpose of a company is to create acustomer. Therefore the business has two and only two basic functions: marketingand innovation. Marketing and innovation produce results: all the rest are costs.


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D- DifferentiationTom Peters broadcasts the mantra: Be distinct or extinct. But notevery difference is distinctive. Establish meaningful differences, notbetter sameness.


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D- Distribution & ChannelsPeter Drucker said: The greatest change will be in distribution channels, notin new methods of production or consumption. Choosing the right channels,convincing them to carry yourmerchandise, and getting them to work as partners is a major challenge.


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E- EmployeeWalt Disney held the same view: Youll never have great customerrelations till you have good employee relations. The way your employeesfeel is ultimately the way your customers are going to feel.


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F- Focusing & NichingWise companies focus. An old saying is that if you chase two monkeys, bothwill escape.The problem of being a mass marketer is that you will attract nichers whowill take better aim at specific customer groups and meet their needs better.


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G- Goal & ObjectivePeter Drucker, who fathered the idea of management by objectives,nevertheless lamented: Management by objectives works if you know theobjectives. Ninety percent of the time you dont.


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G- GrowthCompanies often excuse their lack of growth by saying that they are in a maturemarket. All they are expressing is a lack of imagination. Larry Bossidy, CEO ofHoneywell, observed: Theres no such thing as a mature market. We need matureexecutives who can find ways to grow.... Growth is a mind-set.


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H- Huge international networkRoyal Ahold, the giant Dutch food retailer, has the brand philosophy,Everything the customer sees we localize. Everything they dontsee, we globalize.

I I f i


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I- InformationIn all battlesmilitary, business, and maritalvictory goes to the party thathas the better information. Arie De Geus, former strategist for RoyalDutch/Shell, observed: The ability to learn faster than our competitors maybe our only sustainable competitive weapon.

I I t t


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I- InternetOne warning: Customers cant wait for all the downloading of prettypictures. They want information, not show time. They want a fastdownload, a clear and uncluttered initial screen, easy passage to otherscreens, clear information, an easy ordering procedure, and no intrusive

advertising.

L L d hi


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L- LeadershipRobert Townsend, former CEO of Avis Rent-A-Car, observed: Trueleadership must be for the benefit of the followers, not the enrichmentof the leaders. Leadership worksbest when there are committed followers.

M M t


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M- ManagementManagement is the task of making trade-offs and juggling contradictions.Harvards Rosabeth Moss Kanter observed: The ultimate corporate balancingact: Cut back and grow. Trim down and build. Accomplish more, and do it in newareas, with fewer resources.

M M k ti Pl


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M- Marketing PlanThe benefit of planning may lie less in the plan than in the process ofplanning. Dwight Eisenhower observed: In preparing for battle I havealways found that plans are useless but planning is indispensable.

M M k ti R h


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M- Marketing ResearchHerbert Baum, CEO of Hasbro Inc., said: Market research is crucial to acorporations marketing process. I dont think anybody ought to be makingmarketing decisions without some form of research, because you can waste a lotof time and money.

N Ne prod ct de elopment


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N- New product developmentWilliam H. Davidow, former Vice President of Strategy at Intel, got it right: Whilegreat devices are invented in the laboratory, great products are invented in theMarketing Department. A product must be more than a physical device: It must bea concept that solves someones problems.

O Oportunity


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O- OportunityRosabeth Moss Kanter, in her When Giants Learn to Dance, observed: Theyears ahead will be best for those who learn to balance dreams and discipline.The future will belong to those who embrace the potential of wideropportunities but recognize the realities of more constrained resources, and findnew solutions that permit doing more with less.

P Positioning


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P- PositioningActually the word had been used earlier in connection with placing products instores, hopefully at the eye-level position. However, Ries and Trout gave a newtwist to the term: But positioning is not what you do to a product. Positioning iswhat you do to the mind of the prospect. Thus Volvo tells us that it makes

P Price


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P- PriceAfter you set the price, dont use the price to make the sale. You use thevalue to make the sale. As Lee Iacocca observed: When the product is right,you dont have to be a great marketer.

P Product


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P- ProductSometimes it is the better marketed product, not the better product, thatwins. Professor Theodore Levitt of Harvard observed: A product is not aproduct unless it sells. Otherwise it is merely a museum piece.

Q Quality


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Q- QualityPeter Drucker also sees quality coming from the customer: Qualityin a service or product is not what you put into it. It is what the clientor customer gets out of it.

R Retailer & Vendors


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R- Retailer & VendorsThe three success factors in retailing used to be location, location, location.With the advent of the Internet, physical location is less important. Millions ofpeople buy books from Amazon.com without knowing the companys physicallocation. All that is needed is an Internet address.

S- Selling


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S- SellingSalespeople must get used to being rejected. Dennis Tamcsin observed: Wehave something in this industry called the 10-3-1 ratio. This means that for every10 calls a salesperson makes, he will only get to make a presentation to three,and if hes got a good success rate, hell make one sale. We need people whowont shrink from that kind of rejection.

S- Service


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S- ServiceGood service is not enough. Nobody talks about good service. Sam Walton,founder of Wal-Mart, set a higher goal: Our goal as a company is to havecustomer service that is not just the best, but legendary. The three Fs of servicemarketing are be fast, flexible, and friendly.

S- Strategy


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S- StrategyOne of the best rules for strategy development is to strive to find out what thetarget customers like and do more of it; and find out what they dislike and do lessof it. This means spending time in the marketplace and seeing what matters. Asstated by Al Ries and Jack Trout, Strategy should evolve out of the mud of themarketplace, not in the antiseptic environment of an ivory tower.

S- Success & Failure


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S- Success & FailureFailure shouldnt be viewed as always bad. Henry Ford said: Failure is only theopportunity to begin again more intelligently. He added that he wouldnt hireanyone who has never failed.Thomas Huxley, the English biologist, concurred: There is the greatestpractical benefit in making a few failures early in life.

T- Trend


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T- TrendFrom make-and-sell marketing to sense-and-respond marketing. Your companywill perform better if you view the marketing challenge as that of developing asuperior understanding ofyour customer needs rather than as simply pushing out your products better.

V- Vision


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V VisionYour company needs a vision, the vision demands a strategy, the strategyrequires a plan, and the plan requires action. A Japanese proverb says:Vision without action is a daydream. Action without vision is a nightmare.

W- Word of mouth


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W Word of mouthAccording to word-of-mouth expert Michael Cafferky: Word of mouth . . .marches proudly but quietly onward as its Madison Avenue cousins try in vainto replicate its dramatic results. . . Word of mouth is the brains low-techmethod of sorting through all the high-tech hype that comes to it from themarket place.

Z- Zest


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Z ZestA marketer cant be effective without zest. Zest is defined as hearty enjoyment,gusto, enthusiasm for life. This attitude is epitomized by the way certain CEOspracticed their marketing. One is Richard Branson of Virgin, to whom marketing isthe fun of creating new, better, and more satisfying solutions for people as theyinteract with everyday products and services.

The toughest thing about


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Thank You Very Much

S Y t

The toughest thing aboutsuccess is that youve got tokeep on being a success.

- IrvingBerlin

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