$ USA / $ CAN“Marketing has lost some of its sway in recent years. This provocative book tells how marketing can regain trust and infl uence inside and outside the organization.” From Products to— Leonard L. BerryDistinguished Professor of Marketing, Texas A&M University, Customers tocoauthor of Management Lessons from Mayo ClinicToday’s customers are choosing products and companies PHILIP KOTLER is the . Johnson & Son Distin-that satisfy deeper needs for creativity, community, and guished Professor of International Marketing at North-the Humanidealism. Leading companies realize they must reach western University’s Kellogg School of Management, “Philip Kotler is again leading the way in strategic marketing with timely insight into these highly aware, technology-enabled customers, and and one of the world’s leading authorities on marketing. a transformational period. Marketing makes a compelling case for the competi-that the old rules of marketing won’t help them do this. His writing has defi ned marketing around the world for Spirittive benefi ts of tapping into the human spirit to engage consumers.”Instead, they must create products, services, and corpo-the past forty years. The recipient of numerous awards rate cultures that inspire, include, and refl ect their cus-and honorary degrees from schools all over the world, he — Dennis Dunlap tomers’ an MA from the University of Chicago and a PhD CEO, American Marketing Associationfrom MIT, both in economics. Kotler has an incredible Legendary marketing sage Philip Kotler and his col-international presence—his books have been translated leagues Hermawan Kartajaya and Iwan Setiawan have into approximately twenty-fi ve languages, and he regu-identifi ed this defi nitive break with earlier models as “Marketing has important ideas for all senior managers. It clearly points the path larly speaks on the international . Moving beyond product-based (Mar-to the values-driven human-centric fi rm. The innovative ‘ten credos’ integrate market-keting ) and consumer-based (Marketing ) ap-ing and values and provide personality and purpose to companies that practice them.”proaches, Marketing takes a holistic approach to customers as multidimensional, values-driven people, — Stephen A. Greysereven as potential collaborators. Richard P. Chapman Professor of Business Administration, marketingEmeritus, Harvard Business SchoolMarketing clearly lays out the authors’ key ideas and gives you real-world examples so you can implement HERMAWAN KARTAJAYA is the founder and CEO of Marketing practices at your organization. Custom-MarkPlus, Inc. and is one of the “50 Gurus Who Have ers have realized that their purchasing power has a global “For too long, marketers thought customer satisfaction was the goal of marketing Shaped the Future of Marketing” according to the Char-impact, and they are acting accordingly and talking to tered Institute of Marketing, United . Marketing makes the persuasive case that customer and societal welfare each other about the choices they make. Marketing is the next frontier for companies. Consumers are demanding more from themselves explains how you can engage this conversation, position and so should smart companies.”your brand as a positive force in the world, and collabo-rate successfully with customer-advocates.— Nirmalya Kumar Professor of Marketing and Co-Director of the Aditya Birla India Marketing also goes beyond “messaging” custom-ers to encompass how a company defi nes and embodies Centre at London Business SchoolIWAN SETIAWAN is a senior consultant at MarkPlus, its values for a variety of stakeholders. It explores how Inc. where he consults for clients on marketing have an impact on issues such as poverty, socio-cultural change, and environmental sustainability. It also looks at how values-driven marketing affects employees, Jacket Images: iStockphotochannel partners, and Photographs: (Philip Kotler) ' Nathan Mandell,(Hermawan Kartajaya) ' Darwis TriadiCustomers are more aware, more active, and more pow-erful than ever before. Marketing shows you how to demonstrate your relevance to this interconnected, global community, giving you an unmatched guide to PHILIP KOTLERwinning in this new age of KARTAJAYA IWAN SETIAWANMATTE FINISHKOTLERmarketing SETIAWAN
P1:OTA/XYZP2:ABCfmJWBT240/KotlerMarch8,201012:44PrinterName:CourierWestford,Westford,MA
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P1:OTA/XYZP2:ABCfmJWBT240/KotlerMarch8,201012:44PrinterName:CourierWestford,Westford,MA©CCopyrightby2010byPhilipKotler,HermawanKartajaya,&Sons,Inc.,Hoboken,,storedinaretrievalsystem,ortransmittedinanyformorbyanymeans,electronic,mechanical,photocopying,recording,scanning,orotherwise,exceptaspermittedunderSection107or108ofthe1976UnitedStatesCopyrightAct,withouteitherthepriorwrittenpermissionofthePublisher,orauthorizationthroughpaymentoftheappropriateper-copyfeetotheCopyrightClearanceCenter,Inc.,222RosewoodDrive,Danvers,MA01923,(978)750-8400,fax(978)646-8600,,JohnWiley&Sons,Inc.,111RiverStreet,Hoboken,NJ07030,(201)748-6011,fax(201)748-6008,oronlineat
P1:OTA/XYZP2:ABCfmJWBT240/KotlerMarch8,201012:44PrinterName:CourierWestford,Westford,MA“TothenextgenerationofMarketerswhowillenhancethesocialandenvironmentalcontributionsofthemarketingdiscipline.”PhilipKotler“Tomyfirstgrandson,DarrenHermawan,TheNextGreatMarketer.”HermawanKartajaya“ToLouiseforherendlesssupport.”IwanSetiawan
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P1:OTA/XYZP2:ABCfmJWBT240/KotlerFebruary21,201010:56PrinterName:CourierWestford,Westford,MAviiiCONTENTSPARTIIIApplicationChapterSevenDeliveringSocio-CulturalTransformation121ChapterEightCreatingEmergingMarketEntrepreneurs137ChapterNineStrivingforEnvironmentalSustainability153ChapterTenPuttingItAllTogether169Index181
P1:OTA/XYZP2:ABCfmJWBT240/KotlerFebruary21,201010:56PrinterName:CourierWestford,Westford,MAFOREWORDAccordingtoAlvinToffler,-cultureAge,,Indonesia,,wheremind,in-formation,,ashumanityembracesthechallengeofglobalwarming,wearemovingtowardthefourthwave,whichisori-entedtocreativity,culture,heritage,,,-ilyonthemarketers’abilitytosensehumananxietiesanddesires,whicharerootedincreativity,culture,heritage,-privatepartnershiphasalwaysbeenastrongfundamentalforeconomicgrowth,
P1:OTA/XYZP2:ABCfmJWBT240/KotlerFebruary21,201010:56PrinterName:CourierWestford,Westford,’,,HermawanKartajaya,.—SusiloBambangYudhoyonoPresidentoftheRepublicofIndonesia
P1:OTA/XYZP2:ABCfmJWBT240/KotlerFebruary21,201010:56PrinterName:CourierWestford,Westford,-creasedthelevelofpovertyandunemployment,,climatechangeandrisingpollutionarechallengingcountriestolimitthereleaseofcarbondioxideintotheatmosphere,-more,therichcountriesoftheWestarenowexperiencingamuchslowerrateofgrowth,,technologyisshiftingfromthemechanicalworldtothedigitalworld—theInternet,comput-ers,cellphones,andsocialmedia—,sowillconsumerbehaviorchange,,marketinghasmovedfrombeingproduct-centric()tobeingconsumer-centric().-centricitytoxi
P1:OTA/XYZP2:ABCfmJWBT240/KotlerFebruary21,201010:56PrinterName:CourierWestford,Westford,-sustainingoper-atorinacompetitiveworldbutasacompanythatoperateswithaloyalnetworkofpartners—employees,distributors,dealers,,andtheirgoalsarealignedandthere-wardsareequitableandmotivating,,thecompanymustshareitsmission,vision,,vision,,,weshowhowthecompanycanmarketitscorporatevision,mission,andvaluestoeachofitskeystakeholders—consumers,employees,channelpartners,,-suessuchaswellness,poverty,,
P1:OTA/XYZP2:ABCfmJWBT240/KotlerFebruary21,201010:56PrinterName:CourierWestford,Westford,MAPrefacexiiiMarkPlus,aSoutheastAsian–-creationtoenhancetheconcept,PhilipKotlerandHermawanKartajayalaunchedthedraftmanuscriptatthe40thanniversaryoftheAssociationofSoutheastAsianNations(ASEAN)-20memberinSoutheastAsia,,BarackObama,,andwearehonoredtohaveaForewordbySusiloBambangYudhoyono,,oneoftheMarkPlusconsultantswhoiniti-atedtheconcept,collaboratedwithPhilipKotleratNorthwest-ernUniversity’sKelloggSchoolofManagement—oneoftheworld’stopbusinessschoolsintheWest—.
P1:OTA/XYZP2:ABCfmJWBT240/KotlerFebruary21,201010:56PrinterName:CourierWestford,Westford,MA
P1:OTA/XYZP2:ABCfmJWBT240/KotlerFebruary21,201010:56PrinterName:CourierWestford,Westford,MAABOUTTHEAUTHORSPhilipKotler,&SonDistinguishedProfes-sorofInternationalMarketingattheKelloggSchoolofMan-agement,NorthwesternUniversity,,Inc.,andisoneofthe“50GurusWhoHaveShapedtheFutureofMarketing,”accordingtotheCharteredInstituteofMarket-ing,(KelloggSchoolofManagement2010)isaseniorconsultantatMarkPlus,
P1:OTA/XYZP2:ABCfmJWBT240/KotlerFebruary21,201010:56PrinterName:CourierWestford,Westford,MA
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,MAPARTITRENDS
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,MA
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,“customerisking”-day’smarketerstrytotouchtheconsumer’,,-sumers,marketersapproachthemaswholehumanbeingswithminds,hearts,,,theysearchforcompaniesthataddresstheirdeepestneedsforso-cial,economic,andenvironmentaljusticeintheirmission,vision,,,,visions,andvaluestocontributetotheworld;,values,,,-pactedmorebyrapidsocial,economic,,poverty
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,,,therefore,,,,,,:theageofparticipation,theageofglob-alizationparadox,-laborative,cultural,,cultural,,markets,,,:cheapcomputersandmobilephones,low-1costInternet,
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,,,-centricConsumer-orientedValues-drivenMarketingMarketingMarketingObjectiveSellproductsSatisfyandretaintheMaketheworldabetterconsumersplaceEnablingforcesIndustrialRevolutionInformationtechnologyNewwavetechnologyHowcompaniesseetheMassbuyerswithphysicalSmarterconsumerwithWholehumanwithmind,marketneedsmindandheartheart,andspiritKeymarketingconceptProductdevelopmentDifferentiationValuesCompanymarketingProductspecificationCorporateandproductCorporatemission,vision,guidelinespositioningandvaluesValuepropositionsFunctionalFunctionalandemotionalFunctional,emotional,andspiritualInteractionwithconsumersOne-to-manytransactionOne-to-onerelationshipMany-to-manycollaboration
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,,ChairmanofSunMicrosystems,,peoplecre-atenews,ideas,,whichincludesblogs,Twitter,YouTube,Facebook,photosharingsiteslikeFlickr,,whichincludessitessuchasWikipedia,RottenTomatoes,,,,-thoughthereadershipislow,,,awell-knownmarketer,,,thenumberofTwitterusershasgrown1,,userscansharetheirthoughts,theiractivities,-torAshtonKutcherreportedlyhitthe1millionfollowersmarkonTwitter,beatingoutevenCNN.
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,MA8TRENDSManyoftheblogsandtweetsarepersonalwhereaper-sonsharesnews,opinion,-ersmightcommentoncompaniesandproducts,,forexample,,whichestablishedaTweetSquad,-profilecampaignonYouTubewasMarcEcko’,theclothingcompanymadeavideothatshowedacoupleofyoungsterssprayingthewords“StillFree”-mittedthattheplaneonthevideowasnotAirForceOneanditjustwantedtocreateapop-culturesensationaspartofitsbrand–,,consumersareget-tingmoreinvolvedinotheractivitiessuchasvideogames,
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,,usingthecomputer,-costandbias-free,,Hewlett-Packard,,,
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,-comescompaniesthatwishtofindsolutionstotheirprob-lems(solutionseekers)andalsoindividuals,scientists,andresearcherswhocanproposesolutionstotheproblems(prob-lemsolvers).Oncethebestsolutionisfound,,-rationphenomenonisdescribedbyTapscottandWilliamsin9theirbook,-sumerstakingoverthejobofmarketersiswhatWipperfu¨-ingmanagerslistentotheconsumers’,alargetrendresearchnetwork,summa-rizesconsumers’,&Gamble(P&G)isknownforitsconnectandde-velopstrategy,&Gmodelresemblesastarfish,which,accordingtoBrafmanandBeckstrom,
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,&G’-13centofP&G’-knownproductsinventedthroughconnectanddevelopincludeOlayRegener-ist,SwifferDusters,,“FreeDoritos”-generatedadwonthetopspotatthe21stAnnualUSATodaySuperBowlAdMeter,,,,market-ingwastransactionoriented,,marketingbecamerelationshiporiented,,marketinghasshiftedtoinvitingconsumerstoparticipateinthecompany’,theymustcollaboratewithoneanother,withtheirshareholders,withtheirchannelpartners,withtheiremployees,
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,,-tiontechnologyenablestheexchangeofinformationamongnations,corporations,andindividualsaroundtheworld,,,,,,-democracydemonstrationsledbystudents,intellectuals,andlaboractivistsresultedinamili-tarycrackdownthatleftbetween400and800civiliansdeadandbetween7,000and10,,,whichhadseparatedWestGermanyfromEastGermany,wasknockeddown,,standingontheBerlinWall,per-formedhispopularsong“LookingforFreedom.”-democracymovementinChina,whichhaltedmovementtowardfreedom,.
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,,also,thetwoopposingviewsofThomasFried-manandRobertSamuelson,representingglobalizationandnationalism,,,services,,Samuelsonarguedinhisarticle,“The16WorldIsStillRound,”-tionlevelstheplayingfieldfornationsaroundtheworld,,,,whiledemocracyisfindingmoreglobalroots,thenew,nondemocraticsuperpower,China,’-racyintheworld,,,theprocessesofpriva-tization,liberalization,andstabilizationhavebeenmisman-aged,,,,,therearestillmorethan1billionpeopleintheworldwholiveinthestateof
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,MA14TRENDSextremepovertyandsubsistonlessthan$,,:HowGlobalismandTribalismAreReshapingtheWorldinwhichheassertsthattherearetwoaxialandopposingprin-17ciplesofourage:,in18TheLexusandtheOliveTree:UnderstandingGlobalization,ThomasFriedmanwroteabouttheclashoftheglobaliza-tionsystem,symbolizedbytheLexus,andancientforcesofculture,geography,tradition,-ization,—therearealotmorethanthreeparadoxes—,theseglobalizationparadoxes,especiallythesocioculturalparadox,,,,,globalizationhas
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,,injustice,environ-mentalsustainability,communityresponsibility,-nuity,connection,,,economic,-causetheyaddressthecollectiveanxietiesanddesiresofa20nation,,,Coca-Colacreatedanadvertisementfeaturingthesong,“I’dLiketoTeachtheWorldtoSing.”Atthattime,,itwouldnolongerbeasrelevant,,´
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,’,representedbyglobalbrands,—,Mc-Donald’,FriedmanintroducedtheGoldenArchesTheoryofConflictPrevention,whichholdsthatcountrieswithMcDonald’,inTheWorldIsFlat,FriedmanchangedthetheoryintotheDellTheoryofConflictPrevention,whichstatedthatnocountrieswithinDell’,,DellisincreasinglyreplacingMcDonald’,—,TheBodyShop
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,,infact,,theconceptofthepublic’sinterestisnowforeshadowedinthenewdefinitionofmarketingcreatedbytheAmericanMarketingAssociationin2008,whichreads:“Marketingistheactivity,setofinstitutions,andprocessesforcreating,communicating,delivering,andexchangingof-feringsthathavevalueforconsumers,clients,partners,and23societyatlarge.”Byadding“society,”’,:communitiesofconsumers,employees,channelpartners,-brainerswhoworkincreativesectorssuchasscience,art,,accordingtoDanielPink’sAWholeNewMind,-tionfromtheprimitivehunter,farmer,andblue-collarworkerwhorelyontheirmuscleandwhothenevolveintowhite-collar
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,,,,,theycriticizebrandsthathavenegativesocial,economic,andenvironmentalimpactsonpeople’,,,theinvestment,output,,hedescribeshowheextendedhisresearchtootherpartsoftheworldandfoundthatEuropeancountriesalsohaveahighcreativityindex,whichmeasurescreativedevelopmentofanationbasedon26itsadvancementintechnology,talent,-vancednations,’-mid,-ativityemergesinresponsetosocialissuesinruralareas.
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,,aplacewherepovertyisachronicissue,managestobecometheworld’,-pressesitselfinhumanity,morality,,,,fromsurvival(basicneeds),safetyandsecurity,belongingandsocial,esteem(ego),uptoself-actualization(meaning).,inSpiritual29Capital,ZoharrevealedthatMaslow,acreativeworkerhim-self,,infact,“thevaluingofthenonmaterialaspectsoflifeandintimationsofanen-30duringreality”
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,,happiness,’’sgreatestmotivator,,conse-quently,,,-els?,visions,,wehaveseenmanycompaniesthatsimplyputthevaluesofgoodcorporatecitizenshipinthemission,vision,.
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,,,vision,’appreciationofthesecompanies’’:COLLABORATIVE,CULTURAL,ANDSPIRITUALInsummary,-centricerawheretheconsumerde-mandsmorecollaborative,cultural,andspiritualmarketingapproaches.(.)The Age of Participationand CollaborativeMarketingTechnologyThe Age of GlobalizationSocio-Political-EconomyParadox and CulturalculturelegalMarketingMarketThe Age of CreativeSociety and Human
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,,“What’sAFriendWorth?”BusinessWeek,June1,<>,.“Masscollaborationcouldchangewaycompaniesoperate,”USAToday,December26,,OpenBusinessModels:HowtoThriveintheNewInnovationLandscape(HarvardBusinessSchoolPress,2006).,Wikinomics:HowMassCollaborationChangesEverything(NewYork:Portfolio,2006).¨rth,BrandHijack:MarketingwithoutMarketing(NewYork:Portfolio,2005).-made,
P1:OTA/XYZP2:ABCc01JWBT240/KotlerFebruary21,201010:57PrinterName:CourierWestford,Westford,,WorldOutofBalance:NavigatingGlobalRiskstoSeizeCompetitiveAdvantage(NewYork:McGraw-Hill,2005).23.“TheAmericanMarketingAssociationReleasesNewDefinitionforMarketing,”PressRelease,AmericanMarketingAssociation,January14,,AWholeNewMind:MovingfromtheInformationAgetotheConceptualAge(NewYork:RiverheadBooks,2005).,TheRiseofCreativeClass:AndHowIt’sTrans-formingWork,Leisure,CommunityandEverydayLife(NewYork:BasicBooks,2002).,TheFlightoftheCreativeClass:TheNewGlobalCompetitionforTalent(NewYork:HarperBusiness,2005).,“TheGreatLeap:DrivingInnovationfromtheBaseofthePyramid,”MITSloanManagementReview,October15,,TheQuantumSelf:HumanNatureandConscious-nessDefinedbytheNewPhysics(NewYork:Quill,1990).,SpiritualCapital:WealthWeCanLiveBy(SanFrancisco:Berrett-KoehlerPublishers,2004).,TheHungrySpirit:BeyondCapitalism,AQuestforPurposeintheModernWorld(NewYork:BroadwayBooks,1998).,TheArtist’sWay:ASpiritualPathtoHigherCre-ativity(NewYork:Tarcher,1992).,TheHeartofSoul:EmotionalAwareness(NewYork:FreePress,2002).,TheFourthAwakeningandtheFutureofEgalitarianism(Chicago:UniversityofChicagoPress,2000).,TheNewCultureofDesire:FiveRadicalNewStrategiesthatWillChangeYourBusinessandYourLife(NewYork:FreePress,2002).,LiberatingtheCorporateSoul:BuildingaVision-aryOrganization(Butterworth-Heinemann,1998).
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,:,marketinghasrevolvedaroundthreemajordisciplines:prod-uctmanagement,customermanagement,,“marketing-mix”terminthe1950sandJeromeMcCarthyintroducedthefourPsinthe1960s,,itwaslogical25
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,-portantfunctionssupportingproduction,’sfourPscon-ciselyexplainedthegenericpracticesofproductmanagementinthosedays:developaproduct,determinetheprice,dothepromotion,-nesswasontheupswingduringthosetwodecades,—andtheWesterneconomyingeneral—,’minds,—people,process,physicalevidence,publicopin-2ion,andpoliticalpower—-ever,,,,“cus-tomer”shouldreplace“product”,including
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,,targeting,andpositioning(STP),,,,,,,experientialmarketing,-eratedemand,itwasnolongerenoughtotargetthecus-tomer’’,’ceaselessdeterminationtodevelopnewwaystounderstandthechang-ingmarkets,customers,competitors,andcollaboratorsgavebirthtonewunderstandingsandtools.
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,MA282000s1990s1980s1970s1960s1950sFinancially-DrivenOne-to-OneUncertainTurbulentSoaring ?ROI MarketingPostwar?Brand Equity Marketing?Emotional ?Customer Equity Marketing?MarketingMarketing?ExperientialWarfare?Social Responsibility ?TargetingMarketing?Global Marketing?The Four PsMarketing?Positioning?The Marketing Mix?Internet and?Local Marketing?Consumer Empowerment?Marketing?Product Life ?StrategicE-Business ?Mega-marketingMy?Social Media MarketingopiaCycleMarketingMarketing ?Direct Marketing?Tribalism?Brand Image?Lifestyle ?Sponsorship ?Service Marketing?Customer ?Authenticity Marketing?MarketMarketingMarketingSegmentationRelationship ?Social Marketing?Cocreation Marketing?Marketing Ethics?The Broadened?The Marketing Marketing?Societal MarketingConcept of Concept?Internal MarketingMarketing?Macro-marketing?The Marketing
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,:,-gages,creditcards,,greedyinvestors,speculators,,,GeneralMotors,-2009withoutpromisingmuchofarecovery;atbest,“buynow,paylater”islesslikelytoreoccur,,theneconomicgrowthwillbeslow,.
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,-ketingisstillaboutdevelopingsegmentation,choosingthetargetsegment,definingthepositioning,providingthefourPs,,thechangesinthebusinessenvironment—recession,climateconcerns,newsocialmedia,consumerempowerment,newwavetech-nology,andglobalization—&Companyresearchreportlists10trendsinbusinessfol-3lowingthefinancialcrisisof2007–
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,,-ketingisconsideredthesameasselling,usingtheartofper-suasion,,whichaimstoserveconsumers,—,-ferencetoannounceitsnew“corevalues.”Numberoneonthelistwasthesimplestatement,“Thecustomercomesfirst.”Thatevening,,afellownamedMonty,pro-posedatoast.“Ijustwantyoutoknow,”hebegan,“thatthecustomerdoesnotcomefirst.”Montypointedatthepresidentofthedivision.“Hecomesfirst.”HenamedtheEuropeanpresident.“Hecomessecond.”HenamedtheNorthAmericanpresident.“Hecomesthird.”Montyrattledofffourmoreseniorexecutivesofthedivision,allofwhomwereintheroom.“Thecustomer,”heconcluded,“comeseighth.”Astunnedsilenceovertooktheroombeforeoneoftheexecutivessmiled,’,
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,’sMarketingConceptConceptProductTheFourPs(product,price,CocreationManagementplace,promotion)CustomerSTP(segmentation,CommunitizationManagementtargeting,andpositioning)’trustistoem-bracewhatwecall“thenewconsumertrustsystem.”,cocreatetheirownproductsandexperiences,,,companiesshouldunderstandthatcon-sumersincreasinglyappreciatecocreation,communitization,andcharacters().,
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,,suppliers,,,com-paniesshouldcreatewhatwecalla“platform,”,,-sumers’,,consumerscanorganize8intocommunitiesofpools,webs,
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,,ontheotherhand,’sargumentthatconsumersareeitherconnectedtooneanother(webs),toaleader(hubs),ortoanidea(pools).Godin,Fournier,,’sidentityinconsumers’,Authenticity,PineandGilmorearguethatwhentoday’sconsumersviewabrand,,:,,awholehumanhasfourbasiccomponents:aphysicalbody,amind
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,,aheartthatcan10feelemotion,andaspirit—,theconceptofbeingrelevanttothecon-sumer’smindbeganwithAlRiesandJackTrout’,,-inghasbeendescribedinseveralbookssuchasExperientialMarketingbyBerndSchmitt,EmotionalBrandingbyMarc12Gobe´,andLovemarksbyKevinRoberts,,RichardBransonofVirgin,’con-ceptof“thirdplacefordrinkingcoffee,”Virgin’s“unconven-tionalmarketing,”andApple’s“creativeimagination”-fortswereaimedatouremotionalhearts,“unlockthesoul’scode”,hearts,,marketingshouldberedefinedasaconsonant13triangleofbrand,positioning,-pletethetriangle,weintroducethe3i:brandidentity,brandintegrity,-sumers,brandisuselessifitonlyarticulatesitspositioning.
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,’,’().,,fulfillingyourpromise,andestablishingconsumers’
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,,brandimageisaboutacquiringastrongshareoftheconsumer’’,hearts,,marketersshouldtargetconsumers’,,&Son,Inc.,positioneditselfas“thesustainablefive-generationfamilycompanythatspecial-izesinhomecareconsumerproducts.”“bottomofthepyramid”—referringtopeopleearninglessthan$1aday—,,&,&,-fore,thecorporatebrandhastheintegritytobepositionedasthesustainablefive-generationfamilycompany().“thegoodoutdoor-inspiredfootwearandapparelcompany”().-knownforits“PathofService,”
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,MA38TRENDSPositioningDifferentiationThe SUSTAINABLE 5G Sustainable Family Company that Business Modelspecializes in home care consumer productsBrandSC CitizenshipThe GOOD Outdoor-?Environmental inspired Footwear Stewardshipand Apparel ?Global Human
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,,thecompany’snetprofitsfellfrom$$,salesstayedstagnant,-land’,,,(thatis,youravatar),originality,-DRIVENMARKETINGMarketersneedtoidentifytheanxietiesanddesiresoftheconsumerstobeabletotargettheirminds,hearts,,thegenericanxietyanddesireoftheconsumersistomaketheirsociety—andthe
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,MA40TRENDSworldatlarge—abetter,,,,itmakesthecorporateleaderspas-sionateaboutasocialcauseandthereforeencouragesthemtodonatepersonaland/,,,companiescanfallintoatrapofbeinginauthentic—,Vision,andValuesToincludegooddeedsinacorporatecultureandmain-taincommitment,thebestapproachistoembedthemintothecompany’smission,vision,,thecommitmentneedstostartatthecorporatelevel,
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,-vironment,,weprefertodefineamissioninmoreen-duringtermsasyourcompany’sreasonforbeing;itreflectsthecompany’,,wesym-19bolizeacompany’,,’-panywasestablished,,,valuescanbeconsideredas“acor-20poration’sinstitutionalstandardsofbehavior.”Becausecompaniesgenerallyfollowthesamevaluescycle,-oritiesandmanagementattemptstoembedtheminitsprac-tices,whichithopeswillreinforcebehaviorsthatbenefitthecompanyandcommunitiesinsideandoutsidethefirm,andwhichinturnstrengthentheinstitution’,avalues-basedmatrixshouldalsobeintro-ducedwhere,ononeaxis,thecompanystrivestooccupy
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,MA42TRENDSINDIVIDUALMindHeartSpiritDeliverRealizePracticeSATISFACTIONASPIRATIONCOMPASSIONProfitAbilityReturnAbilitySustainAbilityMake aBe -BasedMatrix(VBM)Modeltheminds,hearts,’smission,vision,andvalues().Whiledeliveringper-formanceandsatisfactiontothecustomersattheproductlevelisessential,atthehighestlevel,,,different,,&Sonembedsitscommitmenttosocialandenvironmentalsustainabilityinthemission,vi-sion,andvaluesofthecompany().Withthemissionof“contributingtothecommunitywell-beingaswellassus-tainingandprotectingtheenvironment,”&SonCOMPANYVALUESVISIONMISSION(How)(What)(Why)
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford, and ibuting to thePromoting reusable Targeting Base of the community well–being asConsumer Product shopping bagsPyramidwell as sustaining andLinesprotecting the environmentFor SC Johnson, Visioncreating sustainable To be a world leader in economic value means The Ron Brown Award Sustaining Values:helping communities delivering innovative for Corporate SC Johnson Public prosper while solutions to meet human LeadershipReportachieving profitable needs through growth for the sustainability chance to do We believe our One of the 100 best We create economic valuewhat’s right for the Wfundamental strength companies for working e strive for environment and social enlies in our healthsustainabilityWe advance social ,realizesaspirationsbyinvitingcustomerparticipationinsustainingtheenvironment,&Sonarerootedinthecon-ceptofthetriplebottomline:economicvalue,environmentalhealth,,hearts,andspiritofcurrentandfutureemployees,’sfun-damentalstrengthliesinitspeople,,thecompanyhiresmothersandwasdubbed
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,MA44TRENDSMindHeartSpiritMissionMake it betterOutdoor store Tagline: “Make it High quality productsdesignBetter”VisionTo be a twenty-first century example for socially-Sustainability Key Profit growthStock performanceresponsible corporations Performance Indicatorsaround the world ValuesHumanity“At our corporate Humilityheadquarters,Fortune 100 Best Integrityemployees work hard Companies to Work Path of ServiceExcellenceto make some of the Forworld’s most innovative products”-ingtheopportunitytodowhat’srightfortheenvironmentandsocialsustainability,-plemissionofmakingitsproductsbetter().Itde-liverscustomersatisfactionthroughitsqualityproductsandfostersemotionalexperiencesthroughstoredesign,,,,,,Timberlandbuildsthevaluesofhu-manity,humility,integrity,
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,,::identity,integrity,-beddedinthecorporatemission,vision,-ingmarketinginthismanner,wewishtoelevatethestateofmarketingfurtherintobeingamajorplayerinthedesigningofthecompany’“marketingmix”’sBasicMarket-ing:AManagerialApproach(1stedition)(Homewood,IL:Irwin,1960).;people,process,,IanDavis,andLennyMendonca,“TheTenTrendsYouHavetoWatch,”HarvardBusinessReview,July–.“PersonalRecommendationsandConsumerOpinionsPostedOnlineAretheMostTrustedFormsofAdvertisingGlobally,”pressrelease(NewYork:TheNielsenCompany,July7,2009).
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,,WhoReallyMatters:TheCoreGroupTheoryofPower,Privilege,andSuccess(NewYork:TheDoubledayBroadwayPub-lishingGroup,2003).,TheNewAgeofInnovation:DrivingCo-createdValuethroughGlobalNetworks(NewYork:McGraw-Hill,2008).,Tribes:WeNeedYoutoLeadUs(NewYork:Portfolio,2008).,“GettingBrandCommunitiesRight,”HarvardBusinessReview,,Authenticity:WhatCon-sumersReallyWant(Boston:HarvardBusinessSchoolPress,2007).,The8thHabit:FromEffectivenesstoGreat-ness(NewYork:FreePress,2004).,Positioning:TheBattleforYourMind(NewYork:McGraw-Hill,1981).,,ExperientialMarket-ing:HowtoGetCustomerstoSense,Think,Act,RelatetoYourCompanyandBrands(NewYork:FreePress,1999);MarcGobe´,EmotionalBranding:TheNewParadigmforConnectingBrandstoPeople(NewYork:AllworthPress,2001);KevinRoberts,Lovemarks:TheFutureBeyondBrands(NewYork:PowerhouseBooks,2004).-Positioning-DifferentiationTrianglecanbefoundinPhilipKotler,HermawanKartajaya,HooiDenHuan,andSandraLiu,RethinkingMarketing:SustainableMarketingEnterpriseinAsia(Singapore:PearsonEducationAsia,2002).,TheFortuneattheBottomofthePyramid:Erad-icatingPovertythroughProfits(Philadelphia:WhartonSchoolPublishing,2005).,,,“Timberland:CommerceandJustice,”HarvardBusinessSchoolCase,revisedDecember21,,CompassionateCapitalism:HowCorporationsCanMakeDoingGoodanIntegralPartofDoingWell(FranklinLakes,NewJersey:TheCareerPressInc.,2004).,TruetoOurRoots:FermentingaBusinessRevolution(NewYork:BloombergPress,2003).
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,,“WhatBusinessCanLearnfromNonprofits,”ClassicDrucker(Boston:HarvardBusinessSchoolPress,2006).,“FindingSenseinUncertainty”inRowanGibson,RethinkingtheFuture:RethinkingBusiness,Principles,Competition,ControlandComplexity,Leadership,Markets,andtheWorld(London:NicholasBrealeyPublishing,1997).,LisaFabish,andNancyMcGaw,“TheValueofCorporateValues,”strategy+business,Issue39.
P1:OTA/XYZP2:ABCc02JWBT240/KotlerFebruary25,201010:57PrinterName:CourierWestford,Westford,MA
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,MAPARTIISTRATEGY
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,MA
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,MACHAPTERTHREEMarketingtheMissiontotheConsumersCONSUMERSARETHENEWBRANDOWNERS!Remember1985’sNewCokestory?Inlessthanthreemonths,-1980s,-inedthebondandthus,,,-firstcentury,,ithappenedtoIKEA,,inacost-savingmove,,
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,MA52STRATEGYWhentheNewCokecasehappened,-Colamanagementsimplymisinterpretedmarketresearchfindingsandthereforemisunderstoodconsumers’,whenasimilarsituationhap-penedwithIKEA,’smissionissuc-cessfullyimplantedinconsumers’minds,hearts,andspirits,“I’dLiketoTeachtheWorldtoSing”-Colalaterlaunchedthe“OpenHappiness”campaignin2009,-Cola,,-Cola:,too,,,,:,,itwasnotagoodmove,,-sumers,itwasabetrayaloftheirbeliefsandknockedoffthe
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,,:,youdon’-culttosummarizewhyyourbrandshouldexistinonesimplestatement,,,,’,:“Itisourjobtocontinuallyfosterworld-classinfrastructuresaswellastoquicklycreateprinciple-centered4sourcestomeetourconsumers’needs.”,-isticsthatmakeagoodbrandmission().,creatingagoodmissionmeansintroducinganewbusinessperspectivethatcantransformthelivesof
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,MA54STRATEGYBusiness asStory thatConsumerUnusualMoves “BusinessasUnusual,”borrowingthewell-knownphrasefromthelateAnitaRoddick,,,,-atesanannuallistcalledthe“BreakthroughIdeas”,-troducedgreatbusinessideasoverthepastdecades().,leaderssuchasHerbKelleher,AnitaRoddick,.
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,-serviceMakestylishfurnitureKampradexperientialstores(inthe1960s)thatmadeitpossiblefortheaffordablefurnitureretailertosignificantlysavecostsRichardVirginReinventedbusinesswithriskyanddiverseventuresundersingleBringexcitementtoBransonbrandnamesince1970;appliedunconventionalbusinessboringindustriespracticescompany-wide;mostrecentlyattemptedtocreatecommercialspacecraftwithVirginGalactic(2004)-costairlinemodelandMakeflyingpossibleAirlinescorporateculturefromPacificSouthwestAirlines(establishedformanypeoplein1949),,Roddickintroducedtheideaofcreatingstoriesbehindcosmeticproducts(continued)
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,(Continued)LeaderBrandBusinessasUnusualOriginalBrandMissionBillGatesMicrosoftAlthoughnotanearlypioneer,GateshasintroducedoperatingRealizeubiquitoussystemsintothemainstreamsince1975andarguablymadecomputingsoftwareanessentialpartofcomputingbytakingadvantageofthenetworkeffectSteveJobsAppleTransformedthecomputing,music,andphoneindustriesbyTransformhowpeopleintroducingtheMac(1984),iPod(2001),andiPhone(2007)enjoytechnologywithcoolcountercultureapproach;alsoreinventedanimationpictureswithPixar(2006)(andotherproducts)(1994)andreinventedthebookitselfwiththeselectionofknowledgeKindle(2007)deliveredconvenientlyPierreeBayConnectedsellersandbuyerswitheBay(1995),facilitatedCreateuser-governedOmidyartransactionandgovernancewithuserratingsandinclusionmarketspaceofPayPalassubsidiary(2002)LarryPageGoogleSince1998,GooglehasbeenreinventingthesearchengineMaketheworld’sandSergey(theword“Google”isinthedictionarydefinedasawordforinformationorganizedBrinsearchingontheInternet);redefinedonlineadvertisingbyandaccessibleprovidingsearchengine-basedadvertisingplatform
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,(Continued)LeaderBrandBusinessasUnusualOriginalBrandMissionJimmyWalesWikipediaSince2001,WikipediahasbeenredefiningtheencyclopediaCreateapubliclyandLarryandpopularizingthecollaborativewikiapproachdevelopededitableencyclopediaSangerbyWardCunningham(1994)MarkFacebookAlthoughhedidnotinventsocialnetworking(FriendsterwasProvidesocialnetworkZuckerbergintroducedfirstbyJonathanAbramsin2002andMySpaceasbusinessplatformbyChrisDeWolfeandTomAndersonin2003;Facebookwasintroducedlaterin2004),ZuckerbergexpandedtheideabyintroducingFacebookPlatform(2007)andConnect(2008)andexpandedsocialnetworkingtoawiderpresenceReidHoffmanLinkedInLinkedInintroducedonlineprofessionalnetworkingandnewConnectprofessionalswaysoforganizingprofessionalcontactinformation;somearoundtheworldsayitwillsoonreplacethetraditionalresumeforjobsearchJackDorseyTwitterEstablishedin2006,Twitterpioneeredtheideaofmini-blogsProvidethetoolstoontheInternetandhowpeoplecanbroadcasttheirideastotrackfriendsandtheirnetworkotherinterests
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,,whodidextensiveresearchon119globalcom-panies,arguedthatinaninterlinkedeconomy,the“butter-5flyeffect”,-makercalledtheseleaders“vigilantleaders”—theoneswhohavehighlevelsofawareness,alertness,“narcissisticleaders”:-thenticandreflectwhatPeterDruckerargued:,—,,agoodmissionisalwaysaboutchange,transfor-mation,,-perienceEconomy,PineandGilmorearguedthatoncetheexperienceeconomymatures,
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,MAMarketingtheMissiontotheConsumers59economy—whereacompany’sofferingisaconsumer’slife-transformingexperience—,,theiPod,andtheiPhone,,,,-dayLeadership,Innovation,andGrowth(LIG)programin2006fortopexecutives—,theprogramisessentialtoembedgrowthinGE’scorporateDNA,thatis,,afamousscreenwriter,,whichhethinksismuchmoreeffective,istowritecompellingstoriesaroundtheideasandengagewithpeople’,Apple’,,Jobswillthenspeakaboutthefeaturesandthesetoffactsregardingtheproduct.
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,MA60STRATEGYInthefallof1983,theyoungJobsairedtheinfamous“1984”’scountertoIBM’,,,smart,andeasy-to-usedevicethatcombinesmusic,phone,,SteveJobshasdeliveredthemissionoftransformationforthecomputing,music,:theemployees,channelpartners,,,,,accordingtoHolt,hasatleastthreema-15jorcomponents:character,plot,’’,-ple,
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,MAMarketingtheMissiontotheConsumers61collaboration,,’slives,,ChipandDanHeathof-ferthreetypesofgoodstoryplots:challenge,connection,,,ofcourse,,thebrandisbridgingthegapsthatexistineverydaylives:racial,age,gender,,ontheotherhand,istypicaloftelevision’sMacGyverseries,,,(ZMET),’ssevenmetaphors,whichrepresent70percentofallmetaphors,,transformation,journey,container,connection,resource,andcontrol.
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,MA62STRATEGYInZMET,,,peoplewhounconsciouslyusethebal-ancemetaphor,mightmakeanexpressionabout“overweight”whenweprobetheircollageondietor“equalemployment”-ingthesenseoftransformationthatconsumershavewhenswitching,forinstance,totheenvironmentally-friendlyPriusduringtheCash-for-Clunkersprogram,,might,forinstance,commentthat“itisgoingtobeanuphilltasktosurviveincrisis.”,,phone,,-tureshowshowthecharacternavigatesamongthenetwork
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,:character,plot,,-mousnames,,,whichincludesthelikesofBarackObamaandthelateTedKennedy,the21-year-oldmysteriousguynamed“moot”,aninfluentialimage-basedonlinebulletinboard,,,:-longstotheconsumers,,’-to-onerelationships,one-to-manyrelationships,,intheconsumernetwork,
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,MA64STRATEGYinventorRobertMetcalfecapturedthisinMetcalfe’,Metcalfe’sLawun-derestimatesthepowerofnetworkswhentherelationshipisone-to-manyormany-to-many,thatis,’sLaw,,,’,Googleaskedforideasfromconsumersonhowtohelpothersineightcategories:community,opportunity,energy,environment,health,education,shelter,$-considerationproductssuchasconsumerpackagedgoods,,abrandwithamissiontomakepeoplesmile,,abrandwithasimplemissiontocleanclothes,.
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,,,,,,
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,MA66STRATEGYofmouthisonlyone-to-onedialogueanditfollowsMetcalfe’-to-manyanditfollowsthemoreaccurateReed’,,thestoriesofthebrandsuchas,“howSaabsavedmylife,”“theritualofflashinglightstootherSaabdrivers,”and“Snaaberyhierarchy”:PROMISEOFTRANSFORMATION,COMPELLINGSTORIES,ANDCONSUMERINVOLVEMENTTomarketthecompany’sorproduct’smissiontoconsumers,companiesneedtoofferamissionoftransformation,buildcompellingstoriesaroundit,,:busi-nessasunusual,astorythatmovespeople,andcustomerempowerment.
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,,“Coke’sBrand-LoyaltyLesson,”Fortune,August5,,“TheFontWar:IKEAFansFumeoverVerdana,”BusinessWeek,August28,,“StateYourBusiness:,”BusinessWeek,January14,,“StatingYourMissioninNoUncertainTerms,”NewYorkTimes,September1,,“AreYoua‘VigilantLeader’?”MITSloanManagementReview,Spring2008,,NarcissisticLeaders:WhoSucceedsandWhoFails(Boston:HarvardBusinessSchoolPress,2007).,“WhatBusinessCanLearnfromNonprof-its,”ClassicDrucker(Boston:HarvardBusinessSchoolPress,2006).,“ASurprisefromAmazon:ItsFirstProfit,”NewYorkTimes,January23,,“TwitterStillHasNoBusinessModel,andThat’sOK,”CNETNews,March27,,“TheFutureofFacebook,”Time,July7,,TheExperienceEcon-omy:WorkIsTheaterandEveryBusinessaStage(Boston:HarvardBusinessPress,1999).,LeadershipEngine:HowWinningCompaniesBuildLeadersatEveryLevel(NewYork:HarperCollins,2002).,“HowGETeachesTeamstoLeadChange,”HarvardBusinessReview,.“StorytellingthatMovesPeople:AConversationwithScreen-writingCoachRobertMcKee,”HarvardBusinessReview,,HowBrandsBecomeIcons:ThePrinciplesofCulturalBranding(Boston:HarvardBusinessSchoolPress,2004).,MadetoStick:WhySomeIdeasSur-viveandOthersDie(NewYok:RandomHouse,2007).
P1:OTA/XYZP2:ABCc03JWBT240/KotlerFebruary21,201011:7PrinterName:CourierWestford,Westford,,MarketingMetaphoria:WhatDeepMetaphorsRevealabouttheMindsofConsumers(Boston:HarvardBusinessSchoolPress,2008).,“TheLawofthePack,”HarvardBusinessReview,,,“CauseMarketingMeetsSocialMedia,”Adweek,May18,,“KeepItReal:LearntoUnderstand,Manage,andExcelatRenderingAuthenticity,”MarketingManagement,January/,“TheOneNumberYouNeedtoGrow,”HarvardBusinessReview,,“BuildaMarketingPlatformlikeaCelebrity,”BusinessWeek,August8,,“Insight:MySecretLove,”FinancialTimes,July25,2009.
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,,’slivesliketeachers,doctors,’,,Tyco,-comestatementthatresultedininflatedearnings—
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,MA70STRATEGYInthebest-sellingbookonthefallofEnron,TheSmartestGuysintheRoom,youcanreadaboutthevaluesofthecom-2panyin2000,,Enron’,En-ronwasconsidereda“deeplydysfunctionalworkplacewhere3financialdeceptionbecamealmostinevitable.”AmorerecentcasewasinsurancecompanyAIG’’’simageisthefactthattwoofAIG’ssixcorporatevalues—accordingtoitsCodeof4Conduct—,,AIG’,anexecu-tivevicepresidentofAIG,sentaresignationlettertothethenAIG’sCEO,EdwardLiddy,thatwasalsopublishedintheNewYorkTimes:...weinthefinancialproductsunithavebeenbetrayedbyAIG....Icannolongereffectivelyperformmydutiesinthisdys-functionalenvironment....,,
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,,,-pany’,’-paniescanalsoachievethispracticeofvaluesasexemplifiedbysuchcompaniesasIBM,GeneralElectric,andProcter&,ReturnAbility,,’actions.
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,,rememberthataspirationalvaluesarevaluesthatemployeesdonothaveasyetandtherefore,-ues;,itisaboutdemonstratingthevaluesthrougheverydaybehaviorwithinthecorporation().Thecombinationofemployeevaluesandbehaviorshouldreflectthecompany’:collaborativetechnology,globalization-drivenculturaltransformation,,,peoplearemovingupMaslow’,goodvaluesarethosethatstimulateandnurturethecollaborative,cultural,andcreativesidesofemployees().Acompanywithcollaborativevaluesencouragesemploy-eestoworkwithoneanotherandwithnetworksoutsidethe
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,;..,includingthechairmanandCEO,-startasmanagementtrainees;,scientists,andalliedhealth..;;:Darkerbulletmeansmorerelevance.
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,-ingthecompany’’svaluesaremainlycol-laborative,-calledMayoClinicModelofCare,,ithascul-9turalimpactaswell.
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,,,,,-ity,-cessful,theoutcomecouldbethecompany’,’
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,,-panyisalsomorecapableofmanagingdifferenceswithintheorganization,&,:,,,Hill,,Russia,India,andChina(BRIC).,thatis,,
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,-menttothesevalues,thecompanybuyssmallerbagsofflourtoavoidbackinjuriestoemployeesthatcarrythem,,&Jerry’,,asreportedinthecompany’ssocialandenviron-mentalassessmentreportin2007,thecommitmentofem-ployeeshadlessened,perhapsduetocontinuedconcernover14thefutureofthecompany’-ietywasalsofeltwhenTheBodyShopwasboughtbyL’&Jerry’’“100BestCompaniestoWorkFor”,hearts,’HowardSchultzcalledthis“pouringyourheartintoit”whenreferringtoemployees’
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,,,’,consumers’,,thenetworkcompany,,“livingthe18brand.”
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,,-likeAvisandHertzthatcompetemostlyinairports,-standingroutinetocreatethisculture:Recruitnewcollegegraduates,tellthemtoworkhardbywashingandshuttlingcars,teachthemhowtobuildlong-termrelationshipswithcustomers,letthemprogressuptheranks,-paniestoWorkFor,’.
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,MA80STRATEGYPRACTICEWHATYOUPREACHToinstillvalues,,,,’,-powerthem,,,’svaluesasafifth-generationfamilycompanyare,ofcourse,,bothworking
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,,,’svalueshaveadirectimpactonemployees’-ating“signatureexperiencewithinanorganization.”,Dychtwald,andMorrisonrevealsixsegmentsofemployees:-ployeesegmentationframeworkthatMcKinsey&,
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,,signatureexperienceshouldbecollaborative,cultural,-ativevaluesmightbesuitablefortheriskandreward(orbigriskbigreward)(orsavetheworld).,“TellmeandI’llforget;showmeandImayremember;involvemeandI’llunderstand.”’,,HillsandMahmudarguethatvolunteeringachieveshighim-pactwhenthereisastrategicimpactthatleveragesthecom-26pany’,-quakehitAsiainDecember2004,,,accordingtoKanter,-impactvolunteeringisonewaytobeaSuperCorp.
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,,accordingtofounderDavidKelly,,psychologist,physi-cian,anthropologist,economist,andotherstodevelopin-novativeproductsthatsolvetheirclients’,,,:,,corporatecultureshouldbecollaborative,cultural,-tegrity,companiescancompeteinthetalentmarket,improveproductivityandtheconsumerinterface,.
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,,“BusinessLacksRespect,”BRW,,Issue25,June25,,TheSmartestGuysintheRoom:TheAmazingRiseandScandalousFallofEnron(NewYork:Portfolio,2003).,EmilyChenoweth,andJeffZaleski,“TheSmartestGuysintheRoom:TheAmazingRiseandScandalousFallofEnron,”PublishersWeekly,,Issue41,October13,,“FlawedLeadershipValues:TheAIGLesson,”Busi-nessWeek,April3,,“DearAIG,IQuit!”NewYorkTimes,March25,,“HowtoUseLan-guagethatEmployeesGet,”HarvardBusinessReview,,“MakeYourValuesMeanSomething,”HarvardBusinessReview,,mainlythecom-panies’,ManagementLessonsfromMayoClinic:InsideOneoftheWorld’sMostAdmiredServiceOrganizations(NewYork:McGraw-Hill,2008).,MarkFoulon,HelenHandfield-Jones,,,“TheWarforTalent,”TheMcKinseyQuarterly,Number3,,“TheNewSpiritofWork,”FastCompany,,,,“WinningtheRaceforTalentinEmergingMarkets,”HarvardBusinessReview,,“WalkingtheTalk:TheQuestionsforAllCor-porateEthicsandValuesIs:HowDoTheyPlayOutinRealLife?”EdgesMagazine,,
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,MAMarketingtheValuestotheEmployees8515.“TheBodyBeautiful—EthicalBusiness,”TheEconomist,March26,,,StrategicCorpo-rateSocialResponsibility:StakeholdersinaGlobalEnvironment(ThousandOaks,CA:SagePublications,2006).,“Strategy&Society:TheLinkbetweenCompetitiveAdvantageandCorporateSocialResponsibility,”HarvardBusinessReview,,LivingtheBrand:HowtoTransformEveryMem-berofYourOrganizationintoaBrandChampion(London:KoganPage,2007).,“TransformingGiants,”HarvardBusi-nessReview,’Reilly,“TheRent-a-CarJocksWhoMadeEnterprise#1,”Fortune,October26,,“AlignActionandValues,”LeadershipExcellence,,“,”InformationWeek,,“TheMarchofFlextimeTransatlanticTrends,”FinancialTimes,April28,,“WhatItMeanstoWorkHere,”HarvardBusinessReview,,“TheWarforTalent,”FastCompany,Decem-ber18,,“VolunteeringforImpact:BestPracticesinInternationalCorporateVolunteering,”FSGSocialImpactAdvisor,,SuperCorp:HowVanguardCompaniesCreateInnovation,Profits,Growth,andSocialGood(NewYork:RandomHouse,2009).
P1:OTA/XYZP2:ABCc04JWBT240/KotlerFebruary21,201011:10PrinterName:CourierWestford,Westford,MA
P1:OTA/XYZP2:ABCc05JWBT240/KotlerFebruary5,20109:33PrinterName:CourierWestford,Westford,,by-passresellers,’sfamouscut-out-the-middlemanprinciple,thecompanywasconsid-eredanenemybythemiddleman—,by1999,,eBay,and1Yahoo!’ssurprise,’,,
P1:OTA/XYZP2:ABCc05JWBT240/KotlerFebruary5,20109:33PrinterName:CourierWestford,Westford,,’,however,-tunately,inthesemarkets,,itwasimperativeforDelltopursueacompletelyoppo-sitebusinessmodel:,in2002,-2007,Dell’ssalesthroughchannelshadrisentoaccountfor15percentofitsoverallrevenue,,DellfinallylaunchedthePartnerDirectprogramandrevealedthatithadbuiltpartnershipswith11,-sellersonebyone,listenedtotheirfeedback,,Dellisnowembracingitsnewpartnerswiththekindofattentionthatitgivestoconsumers.
P1:OTA/XYZP2:ABCc05JWBT240/KotlerFebruary5,20109:33PrinterName:CourierWestford,Westford,,economic,,,too,-cietybecomesmoresophisticated,,economic,-growthchangesareessentialforDellandothercompaniestounderstand,-bridsofcompanies,consumers,,visions,values,,,culturalchangeagents,andcreativepartnersforcompaniesatthesametime.
P1:OTA/XYZP2:ABCc05JWBT240/KotlerFebruary5,20109:33PrinterName:CourierWestford,Westford,MA90STRATEGYChannelasCollaborator:,-Identity-Values().
P1:OTA/XYZP2:ABCc05JWBT240/KotlerFebruary5,20109:33PrinterName:CourierWestford,Westford,,ı¨’shonestyandsimplicityarereflectedinallfacetsofthecompany’sbusinessasseeninitsdescriptiveproductnaming,useofnaturalin-gredients,,,,andduringeachinterview,,&Jerry’sestablishedinRussiabeforethecompany’,Ben&Jerry’:-termvisionofmakingtheworldabetterplace,theearlyman-agementofBen&Jerry’’,itwasnotbecauseofbusinessconsiderationsthatBen&Jerry’,Ben&Jerry’sjust
P1:OTA/XYZP2:ABCc05JWBT240/KotlerFebruary5,20109:33PrinterName:CourierWestford,Westford,&Jerry’sdecidedtoestablishafootholdonRussiansoilinthe1990s,theyassignedsomeonefromtheUnitedStateswhocouldbetrusted:,-responsibleval-uesofBen&Jerry’,&Jerry’,Ben&Jerry’,&Jerry’,-agementofBen&Jerry’&Jerry’sandtheRussianpartnersalsohadconflictingopinionsaboutbribery,’sourcingforenvironmentally-friendlyingredientswasalsobelowthehigh9expectationofBen&Jerry’,Friedman,,,,
P1:OTA/XYZP2:ABCc05JWBT240/KotlerFebruary5,20109:33PrinterName:CourierWestford,Westford,,eachbusinessentityshouldidentifyitspotentialpart-ner’,Raju,-istsinthepartnershipbetweenthecompanyanditschannelpartners,,’,-ingthepurpose,values,andidentities—beyondunderstand-ingeachother’sbusinessmodel,applyingwin-winnegotia-tion,andwritingsoundlegalcontracts—,exemplifiedbyAnitaRoddick,:,thecompanybecomeshighlydependentonthedistributorstomarketitsvalues,,,Inc.,likeotherfurni-turemanufacturers,marketsproductstotheupper-middlemarketthroughthreekeyretailers:Crate&Barrel,Room
P1:OTA/XYZP2:ABCc05JWBT240/KotlerFebruary5,20109:33PrinterName:CourierWestford,Westford,MA94STRATEGY&Board,-inggreenareclearlydemonstratedinthecompany’sbusinessmodel,,MariaYeedoesnothaveadirectinterfacewithconsumersandthereforereliesonitschannelpartnerstosendits“green”-friendlymovementintheindustry,MariaYee,thefounderherself,-mally,’,alargeconsumerpackagedgoods(CPG),acompanythatproducesor-ganicyogurtproducts,,thewellness-orientedcompanytriestocreatedirectcontactwithconsumerstomarketthecompany’,,-lets,thissendsastrongsignaltothechannelpartnersthatthevalueshaveastrongimpactonthebrandandthatcarry-ingthebrandisgoodforthem.
P1:OTA/XYZP2:ABCc05JWBT240/KotlerFebruary5,20109:33PrinterName:CourierWestford,Westford,MAMarketingtheValuestotheChannelPartners95Insomecases,-ingcountries,(distribution)andpromotion(communication).Manyproductsandinforma-tionarenotreadilyaccessibletothepoor,-creasemarketpenetrationand,atthesametime,,,-Choupal,,ITCalsodevelopedtheChoupalSaagars,,ontheotherhand,,thetwocompaniesaresellingtheirsocially-responsiblevaluestotheirchannelpartnerswhohappentobetheircon-sumersaswell.
P1:OTA/XYZP2:ABCc05JWBT240/KotlerFebruary5,20109:33PrinterName:CourierWestford,Westford,-to-peersellingisthemostcommonlyappliedgo-to-marketstrategyinIndia,,’,,,suchasDell,:,-fortunately,,,,forexample,-addedresellersareperceivedtobecapableofdeliveringsolutions,,companiesshouldunderstand
P1:OTA/XYZP2:ABCc05JWBT240/KotlerFebruary5,20109:33PrinterName:CourierWestford,Westford,MAMarketingtheValuestotheChannelPartners97theirproducts’margincontribution,inventoryturnaroundrate,,companiesshoulddemonstrategenuinecon-cernandactivemanagementofthe“sellingout”processattheretaillevelthroughco-opmarketing,in-storepromotion,andensuringabrand’,acompanyshouldalsocareaboutandunderstanditschannelpartners’-channelintegrationisparticu-larlyimportantincaseswherechannelsarebecominganin-creasinglyimportantlinkinthevaluechain,-enceofsuchintegrationinthevaluechain,-channelintegrationusuallystartsfrombasiccooperationbetweenacompanyanditschannelpartners,,theystarttointegratewithoneanotherandalsowithothermembersoftheirindustry’,,,whetheradirectsalesforceorasolechannelpartner,,itaddsmoredistributorsandotherchannelstoincreaseitscoverageareatoimprovesalesrevenueandproductavailabilitywithoutlimitingwhereorto
P1:OTA/XYZP2:ABCc05JWBT240/KotlerFebruary5,20109:33PrinterName:CourierWestford,Westford,-Channelstage,inwhichthecompanysellstomultipledistributorsanddirectchannelsbutdoesnotdelineateproduct,segment,-erationchannelconflictproblemsanddividesthecompany’smarketbyterritories,consumersegments,-BasedChannelstage,,thereexistsadivisionoftasksamongacompany’,-petingwitheachother,-Channelstage,,acomputermanufacturermayallocatetaskstomultiplechannels:awebsitetogeneratedemand,itsownstorestostageconsumerexperience,resellerstodistributeandprovidetechnicalsupport,-Channelstage,:,channelmanagementbeginswithfindingtherightchannelpartnerswithsimilarpurpose,identity,and
P1:OTA/XYZP2:ABCc05JWBT240/KotlerFebruary5,20109:33PrinterName:CourierWestford,Westford,,,“MichaelDell:ThinkingOutoftheBox,”Business-Week,November24,,“ChoosetheChannelthatMatchesYourProduct,”SupplyChainStrategy,,“Dell:TimeforaNewModel,”BusinessWeek,April6,,“ITVendorsEmbraceChannelPartners,”BtoB,September9,,“DellinChannelEmbrace,”MicroScope,May7,,“DellandtheChannel:OneYearLater,”Com-puterResellerNews,August11,,“DoingBusinessinaPost-GrowthSoci-ety,”HarvardBusinessReview,-pherBartlett,KentonElderkin,andKristaMcQuade,“TheBodyShopInternational,”HarvardBusinessSchoolCase,&Jerry’,“Iceverks:Ben&Jerry’sinRussia,”RichardIveySchoolofBusinessCase,,LawrenceFriedman,andRichardRuff,GettingPartneringRight:HowMarketLeadersAreCreatingLong-TermCompetitiveAdvantage(NewYork:McGraw-Hill,1996).,,,“Fair-nessandChannelCoordination,”ManagementScience,,,,“MariaYeeInc.:Making‘Green’FurnitureinChina,”StanfordGraduateSchoolofBusinessCase,,“SociallyResponsibleDis-tribution:StrategiesforReachingtheBottomofthePyramid,”CaliforniaManagementReview,2008.
P1:OTA/XYZP2:ABCc05JWBT240/KotlerFebruary5,20109:33PrinterName:CourierWestford,Westford,MA100STRATEGY14.“$,butprogressagainstpovertyremainsstrong,”
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,MACHAPTERSIXMarketingtheVisiontotheShareholdersSHORT-TERMISMHURTSTHEECONOMY1InSeptember2008,’-cessfulcompaniesoftengetarrogantandthinktheycandomanythings(stage1),andthereforepursueaggressivelywildgrowth(stage2).Whentheyfindearlywarningsignsoffail-ure,theyignorethem(stage3),untiltheirfailurebecomesverypublic(stage4),andiftheydon’treform,theyfinallygo3bankrupt(stage5).
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,,ayearafterthefallofLehmanBroth-ers,-term-drivencapitalismwillmakeasignificantcontribution,,theUnitedKingdom’sFinancialServicesSecretary,recentlypro-posedatwo-tiershareholdingstructurewherebylong-termshareholdersaregivenmorevotesthanshort-termsharehold-5ersindeterminingthecompany’,,manypeoplebelievethatthissystem,whichoriginatesfromfamily-runbusinesses,,-ingtomeetshort-termshareholderexpectations,,’,Kartajaya,andYoungin
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,,,theymightattractangels—,thesecompaniesattractprivateequity,mostlyfromventurecapitalists—agroupofpeoplewithinvestmentman-agementexperienceandapooloffunds—thatwillhelpthemrealizeaninitialpublicoffering(IPO).InanIPO,,;smartcompa-nieswillfocusonallthestakeholders—consumers,employ-ees,channelpartners,government,nonprofits,andthepublicatlarge—,—ensuringthattheyallfeelrewarded—-TERMSHAREHOLDERVALUE=VISIONOFSUSTAINABILITYWebelievealongwithCollinsandPorrasthatcorporatevisionisaresultoftyingcorporatemissionandvaluestothecom-8pany’.
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,MA104STRATEGYWebelievethatthestrongestfuturetrendforcorporations,especiallyinthecapitalmarket,,,ontheotherhand,,insearchofnewcompetitiveadvantagesinthecommoditizedworld,-scribethetwomostimportantdevelopmentsinrecentyears—marketpolarizationandscarceresources—:MatureMarketorImpoverishedMarketIfthereisonebigtrendthathasbeenbotheringbusiness-peoplesincetheendofthe1990s,,SilversteinandButmanarguedthattheirsurveyfoundmiddle-marketconsumersintheUnitedStateswhoearnbe-tween$50,000and$150,,$500billionwhiletradingdownisaround$,NorthAmerica,andselectadditionalcountriesbyKnudsen,11Randel,andRughø-marketproductslaggedthemarketaverageby6percentayearfrom1999to2004.
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,,-endmarket,-endproducts,’-plesofthesepracticesarefoundincompaniessuchasWholeFoods,Patagonia,,,’sTheFortuneattheBottomofthePyramidandHart’,intheirbookUpandOutofPoverty,
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,,winnerofthe2008NobelPeacePrize,-Cola,Unilever,:,asthemanufacturingsectorgrew,,whenconsumer-centricpracticesweregrowing,,-Martannounceditsmovetoembracetheconceptin2006,
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,—whowonthe2007NobelPeacePrizeandwhosefilmonglobalwarming,AnInconvenientTruth,wontwoOscars—hasbeenspeakingoutaboutthelimitofearth’:,,poorpeopleareforcedtodepletescarcenaturalresources—cleanwaterandairandfertileagriculturalsoil——polarizationandresourcescarcity—,theCEO,
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,,andthisisalreadyevidentinitsworkwithsolarpanels,windturbines,,,,sustainablecompanies’,-nualprofitgrowthof16percentandsharepricegrowthof45percent,,-dentssaidthatsustainabilityattractsconsumers,34percentsaidsustainabilityimprovesshareholdervalue,,about61percentofthebusinessleaderssaidthatcommunicat-ingwithshareholdersabouttheircompanies’,while37percentsaiditisamajorpriority.
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,: TheKLDBroadMarketSocialIndex(BSMI)definesgoodbusinesspracticesasthosethatincludeenvironmental,23social,andgovernance(ESG)consideration. TheFTSE4GoodIndexdefinesgoodcompaniesascom-paniesthatworktowardenvironmentalsustainability,havepositiverelationshipswithallstakeholders,pro-tectuniversalhumanrights,possessgoodsupplychain24laborstandards,andcounterbriberypractices. TheDowJonesSustainabilityIndex(DJSI)viewssus-tainablebusinesspracticesasameanstoachievehigherprofitproductivitybycapturingthemarketpotentialofsustainability-consciousconsumerswhilereducingthecostsandrisksassociatedwithunsus-tainablepractices,“abusinessapproachthatcreateslong-termshare-holdervaluebyembracingopportunitiesandmanagingrisksderivingfromeconomic,environmental,andsocial25developments.” GoldmanSachshasintroducedtheGSSustainFocusList,-comesincreasinglytransparentandgrowthismigrat-ingtotheBRICcountries,,thelistalsocontainsananalysisofemergingindustriessuchasalternativeenergy,environmentaltechnology,biotechnology,,theseindexestrackcompanies’triplebottomlines,namely,howwellacompanyperformsinrelationship
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,MA110STRATEGYtoprofit,planet,’seco-nomic,environmental,,however,,-fore,,-nentexamplesincludeBenCohenandJerryGreenfieldofBen&Jerry’s,AnitaandGordonRoddickofTheBodyShop,,,-term,sustainabilityhastobethecompany’sstrategyarisingoutofitsmission,vision,,employees,,shareholdersarelessimpressedwith
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,’,,,profitabil-ity,-termbenefitsofsustainability,,higherrevenuefromnewmarketopportunities,.
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,-of-mouthreviewsaboutthecompany’,thecompany’-to-serve,-causeemployeesarelivingthevaluesintheireverydaywork,,,-niesbyKaufmann,Reimann,Ehrgott,-incomemarkets,-friendly
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,MAMarketingtheVisiontotheShareholders113practicesarewellacceptedbyconsumers,,,,companieswithagoodmission,vision,,,,:,,environmentally-responsiblebrandsattract73percentofconsumersand15percentof
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,,,sustainabilityenablescompaniestotargetnewmarketsegments,especiallythegrowingsegmentsofcollaborative,culturallyactive,,,togetherwith34imageandculture,-animal-testingpractice,’’
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,-mitmenttosustainabilitycanhaveasignificantimpactonthecompany’:,acompany’,,particularlythemarketpolariza-tionandthescarceresources,-ablepracticeswillimprovecostproductivity,leadtohigherrevenuegrowth,,“LehmanFilesBiggestBankruptcyCaseasSuitorsBalk,”Bloomberg,September15,,“LehmanandtheFinan-cialCrisis,”WallStreetJournal,September15,,HowtheMightyFallandWhySomeCompaniesNeverGiveIn(NewYork:HarperBusiness,2009).4.“OvercomingShort-termism:ACallforaMoreResponsibleAp-proachtoInvestmentandBusinessManagement.”TheAspenInstitute,.“ShareholderRightsandWrongs,”TheEconomist,August8,,“10WaystoCreateShareholderValue,”HarvardBusinessReview,,HermawanKartajaya,DavidYoung,AttractingIn-vestors:AMarketingApproachtoFindingFundsforYourBusi-ness(Hoboken,NJ:JohnWiley&Sons,2004).
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,,“OrganizationalVisionandVisionaryOrganization,”CaliforniaManagementReview,.“ForgingaLinkbetweenShareholderValueandSocialGood,”Knowledge@Wharton,May19,.“TheDisappearingMid-Market,”TheEconomist,May18,,AndreasRandel,andJorgenRughølm,“TheVanishingMiddleMarket,”TheMcKinseyQuarterly,Num-ber4,,TheFortuneattheBottomofthePyramid:Erad-icatingPovertythroughProfits(Philadelphia:WhartonSchoolPublishing,2005);,CapitalismattheCrossroads:TheUnlimitedBusinessOpportunitiesinSolvingtheWorld’sMostDifficultProblems(Philadelphia:WhartonSchoolPublishing,2005).,TheInnovator’sDilemma:WhenNewTechnologiesCauseGreatFirmstoFail(NewYork:HarperBusi-ness,2000).,UpandOutofPoverty:TheSocialMarketingSolution(Philadelphia:WhartonSchoolPub-lishing,2009).,BankertothePoor:Micro-LendingandtheBattleagainstWorldPoverty(NewYork:PublicAffairs,2007).,“GlobalBrandsMakingForayinRuralIndia,”RegentGlobalBusinessReview,,“SustainabilityatHewlett-Packard:FromThe-orytoPractice,”CaliforniaManagementReview,,“TheGreenMachine,”Fortune,July31,,“WeNeedSustainableCapitalism,”WallStreetJournal,November5,,“MoneyandMoralsatGE,”Fortune,November15,,“GreenWinners:ThePerformanceofSustainability-focusedCompaniesintheFinancialCrisis,”,February9,.“DoingGood:BusinessandtheSustainabilityChallenge,”EconomistIntelligenceUnit,,KLDResearch&Analytics,2009.
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,,FTSEInternationalLimited,,DowJones,.“IntroducingGSSustain,”GoldmanSachInvestmentResearch,June22,,“InvestinginSus-tainability:AnInterviewwithAlGoreandDavidBlood,”TheMcKinseyQuarterly,,TheNextSustainabilityWave:BuildingBoardroomBuy-in(BritishColumbia:NewSocietyPublishers,2005).29.“ValuingCorporateSocialResponsibility,”TheMcKinseyQuar-terly,,FelixReimann,MatthiasEhrgott,andJohanRauer,“SustainableSuccess:ForCompaniesOperatinginDe-velopingCountries,ItPaystoCommittoImprovingSocialandEnvironmentalConditions,”WallStreetJournal,June22,,“BoostingtheTripleBottomLine,”IveyBusi-nessJournal,January/,Cone,,“MakingtheCaseforEnvironmentallyandSociallyResponsibleConsumerProducts,”Forrester,,“AretheStarsAlignedforYourCorporateBrand?,”HarvardBusinessReview,
P1:OTA/XYZP2:ABCc06JWBT240/KotlerFebruary7,201011:35PrinterName:CourierWestford,Westford,MA
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,MAPARTIIIAPPLICATION
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,MA
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,,. Forthepast15years,,morethanhalfof121
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,MA122APPLICATIONtheconsumersstillexpectcompaniestosupportsocial2challenges. Evenduringtherecession,38percentofAmericans3wereundertakingsocially-consciousactivitiesin2009. ThemajorityofconsumersintheUnitedKingdom(93percent)wantcompaniestoimprovethesocialimpactoftheirproductsandservices,,profoundsocialissuesincludewellness,privacy,:DisneyonChildren’,Disneyistheworld’sbiggestcharacterfranchisor—MickeyMouse,DonaldDuck,WinniethePoohandmanyothers—,Disneyacquiredoneofitscompetitors,MarvelComics,for$,thecompanyalsoleveragesitsaccesstochildrenbysellingconsumerproducts.
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,MADeliveringSocio-CulturalTransformation123Inthisparticularbusinessarea,itaddressesconsumerwell-nesschallenges—obesityspecifically—(DCP),-lightedbecauseoneofitsfranchiseeswasMcDonald’s,,DCPdesignedasetofnutritionguidelinescalled“betterforyou”-tion(FDA).TheinternalguidelinesoutlineabasicformulaforDisney’,,oneofthelargestsupermarketchainsintheUnitedStates,-day,DCPcontributesaround6percentoftheentireDisneybusinessconglomerate’’::WegmansonHealthyLivingAsacategorykiller,-Mart’
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,MA124APPLICATIONstrongerdifferentiation,grocerswillhavedifficultyjustifyingtheirhigherpricesandcompetingagainstWal-Mart’,severalgrocershaveworkedtobuilduptheirdifferentiationand,intheprocess,-ownedsupermarketchainthatpromotesahealthylifestyle,WegmansisratedoneofthebestcompaniesinFortunemagazine’-storeexperienceswithitssupplementarypharmacy,wineshop,videorentals,drycleaner,bookstore,’“homemealre-placement”“eatwell,livewell”principle,whichisacombi-nationofeatingfruitsandvegetables,doingphysicalexercise,trackingcalories,,-nessincreases,-Mart’
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,,,-CapgeminifindsthatAsia’smillionairescommitted12percentoftheirwealthforsocialcauses,,,75percentofAmericansstilldonatetoasocialcause,—,companiesdirecttheirenergy,notjusttheirmoney,,,grantsforsocialactivities,-Dazs’“HelptheHoneyBee”programaimsatpreservingcoloniesofhoneybeesandpositionshoneybeesasanimportantsourceoffoodsupply,especiallyformaking
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,,,WaitroseintheUnitedKingdomandWhole15FoodsintheUnitedStates,,theywillbehandedatoken,,,-geststhat85percentofconsumersprefersociallyrespon-siblebrands,70percentwillpaymoreforthebrands,-creasinglyrecognizingthattheiremployees,consumers,(95percent),,theyarenotshapingtheviewoftop-levelexecutivesandhowexecutivesruntheirbusinesses.
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,’,addressingsocialchallengesshouldnotbeviewedonlyasatoolofpublicrelationsorasawaytodiffusecriticismofsomenegativefalloutfromthecompany’,-culturaltransformation().Self-ActualizationSocio-Cultural TransformationCause MarketingBasic NeedsPhilanthropyVerticalHorizontalCompany EmpoweredConsumer EmpoweredCollaboration Spectrum
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,,-culturaltransformationinvolvesathree-stepprocessthatbeginswithdefiningwhichchallengestoaddress().Oncespecificchallengesarechosen,-CulturalChallengesAcompanyshouldchoosetopromoteissuesbasedonthreecriteria:therelevancewithitsvision-mission-values,thebusi-nessimpact, Identify Socio-Select TargetTransformationalCultural ChallengesConstituentsSolution— Identify current and predict — For immediate impact: — Provide behavior-changing solutions moving up the select constituents such as future challengesthe middle class, women, Maslow Pyramid— Challenges may include or the elderly— Aim toward more wellness (nutrition and — For future impact: select collaborative, cultural, and health care), education, or children and youthcreative transformationsocial -CulturalTransformation
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,MADeliveringSocio-CulturalTransformation129Inmaturemarkets,,20or$,yetpreventable,-maturedeathsarecausedbyobesity,unfitness,,,changingthelifestylesofconsumerscouldhaveamajorimpactnotonlyonsociety’-themessuchasmalnutrition,imbalanceddiet,obesity,andunfitness;variouskindsofdiseaseandepidemics;naturaldisasterandrefugees;personalandworksafety;-ventionandmedicationaretheprovinceofpharmaceuticalcompaniessuchasMerck,GlaxoSmithKline,andNovartis,-age,groceryretail,andpharmaceuticalcompanies,’’sresources(researchers,consultants,andtechnology)-basedprogramis
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,,employmentdiversity,“supportcommunitytrade”and“noanimaltesting”andprogramssuchas“StopViolenceintheHome”arereflectionsofthecompany’,-centricity,especiallytheone-to-onemarketinginthelastfewyears,,:asconsumersareincreasinglynetworked,,togetherwithvendorsfromEclipseGroup,’-standingacompany’skeystakeholders—especiallythecon-sumers,employees,distributors,dealers,suppliers,,companiesshouldchooseconstituentsthathavemajorinfluenceintheoverallsociety.
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,,youth,’tThinkPink,-steinandSayrearguethatwomenwilldrivetheeconomyduetotheirpurchasingpower($13trillioninannualin-come),,-ciety—thebabyboomersandGenY—-denBrainDrainTaskForceaswellasthecomplementaryfocusgroupsandinterviewsconductedbyHewlett,Sherbin,(86percentofGenYand85percentofbabyboomers),,,,theycouldbecomethekeyconstituentsforsocialjusticeanddiseaseprevention.
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,,adistinguishedBrazilianeconomist,definesthemiddleclassas“peoplewhoarenotresignedtoalifeofpoverty,whoarepreparedtomakesacrificestocreateabetterlifeforthemselvesbutwhohavenotstartedwithlife’smaterialproblemssolvedbecausethey27havematerialassetstomaketheirliveseasy.”Themiddleclassisthebiggestconsumermarket,butpeopleinthegrouphavemajorchallengeswithwellness,education,,,religiousbelievers,’s2009listofthemostdiverseemployersin-cludescompaniessuchasFourSeasonsHotel,Qualcomm,T-Mobile,(65percent),de-velopingbreakthroughinnovation(43percent),andmak-ingproductsorservicesthatprovidesolutionstotheissues28(41percent).OfficeDepot,forinstance,,MasterManufacturing,,
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,MADeliveringSocio-CulturalTransformation133bycollaboratingwithHUBs,,,adesigncompany,:desirability(howdeepistheneedforthesolution),feasibility(howpossibleisittoexecutetechnicallyandorganizationally),andviability(howpromisingisitfromafinancialperspective).Companiescanadoptthisopen-sourceapproachbycon-ductingathree-phaseprocess:hear,create,,ateamofmultidisciplinarypeoplewilldothedeepdive,,theywillidentifyopportunities,designsolutions,,inthedeliverphase,,,forinstance,:BUILDINGTRANSFORMATIONINTOYOURCOMPANY’SCHARACTERCompaniesaretraditionallystartedforthepurposeofmak-ingaprofitthroughsatisfyingsomesetofmarketwantsand
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,,,then,,,TheExperienceEcon-omy:WorkIsTheaterandEveryBusinessaStage(Boston:HarvardBusinessPress,1999).,Cone,,“DoingWellbyDoingGood,”Time,September10,,“TheRiseandRiseoftheEthicalConsumer,”Guardian,November6,,“DisneytoPurchaseMarvelComicsfor$4B,”Time,August31,,“DisneyConsumerProducts:MarketingNutritiontoChildren,”HarvardBusinessSchoolCase,,TheWaltDisneyFactBook,,“TheWegmansWay,”Fortune,January24,,“AsaGrocer,Wal-MartisNoCategoryKiller,”Forbes,June30,.“TheStateofCorporatePhilanthropy:AMcKinseyGlobalSur-vey,”TheMcKinseyQuarterly,January2008.
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,,citedinShu-ChingJeanChen,“WhenAsia’sMillionairesSplurge,TheyGoBig,”Fortune,,December19,,“QuakerKicksOffBrandCampaigninTimesSquare,”AdvertisingAge,March9,,“Haagen-DazsExtendsItsHoney-BeeEfforts,”AdvertisingAge,August4,.“ShoppersDetermineGrocers’CharitableGiving,”RetailWire,September5,,“CanBrandingSavetheWorld?”Brandchannel,April8,.“MotorolaFoundationGrants$5MilliontoProgramsthatEn-gageBuddingInnovators,”pressrelease,Motorola,June25,,Edelmanpressrelease,November15,2007,citedinRyanMcConnell,“Edelman:ConsumersWillPayUptoSupportSociallyConsciousMarketers,”AdvertisingAge,November16,,,,“CEOsonStrategyandSocialIssues,”TheMcKinseyQuarterly,,“InnovationinHealthCare:AnInterviewwiththeCEOoftheClevelandClinic,”TheMcKinseyQuarterly,,“TheRealCostofOffshoring,”BusinessWeek,June18,,“WhatWasPrivacy,”HarvardBusinessReview,,Don’tThinkPink:WhatRe-allyMakesWomenBuy—andHowtoIncreaseYourShareofThisCrucialMarket(NewYork:AMACOM,2004).,“TheFemaleEconomy,”HarvardBusinessReview,,LauraSherbin,andKarenSumberg,“HowGenY&BoomersWillReshapeYourAgenda,”HarvardBusinessReview,July–,“Japan:DesignfortheElderly,”BusinessWeek,May6,2008.
P1:OTA/XYZP2:ABCc07JWBT240/KotlerFebruary7,201011:36PrinterName:CourierWestford,Westford,MA136APPLICATION27.“BurgeoningBourgeoisie,”TheEconomist,February12,,JiehGreeney,andLennyMendonca,“AssessingtheImpactofSocietalIssues:AMcKinseyGlobalSurvey,”TheMcKinseyQuarterly,,“SocialResponsibilityIsDead,”AdvertisingAge,September17,-CenteredDesign:AnIntroduction,IDEO,2009.
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,MACHAPTEREIGHTCreatingEmergingMarketEntrepreneursFROMPYRAMIDTODIAMOND,—OleDanboltMjøsThisstatementfromthechairmanoftheNorwegianNobelCommitteeledGrameenBank,Bangladesh’smicrofinanceinstitutionanditsfounder,MuhammadYunus,’sefforttoreducepoverty,asstatedintheUnitedNation’’-sumerswillbeatthemediumsectionofthepyramidandthe137
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,,,therearefiveincomesegmentsinIndia().In2005,,in2025,,peopleinthisgroupwillhaveadifferentlifestyle,—peoplelivingonlessthan$1perday—(trillionIndianrupees)(inIndianrupees)2005201520251Global>1,000,,000–1,000,,000–499,,000–199,<90,
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,MACreatingEmergingMarketEntrepreneurs139fulfilled:,,,undercon-sumptioninmaturemarkets,“unbankable”,forced
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,MA140APPLICATIONbythenarrowerspreadinthetopandmiddlemarkets,-mentintheruralareas,ontheotherhand,,Mumbai,:doingwellbydoinggooddisruptively—havingim-pressivebusinessgrowthbymakingpovertyhistory—“greatleapdownward”—tothebottomoftheeconomicpyramid,,simpler,-ruptiveinnovationsforthepoorwouldincludeacellphonesellingfor$5,alaptopsellingfor$100,andsoon.
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,MACreatingEmergingMarketEntrepreneurs141However,toensurethatthedisruptiveinnovationtrulyre-17ducespoverty,MichaelChuputforwardfourrequirements:-50jointventure,themissiontheyhadinmindwassimple:,,)hugeinscalebecauseofitsnationalrollout,2)enduringforgenerationsbecauseofitsjob-creatingimpact,3)proveneffectivebecauseitcreatesbetterlivingconditions,and4)(SBE).
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,—acountrythatisre-gardedasamicrofinanceflagshipcopedwiththefinancialcrisisofthe1990sandhascontinuedtodevelopfavorablyinitsaftermath—’’,,,,’-able,,’sXOandNova
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,MACreatingEmergingMarketEntrepreneurs143netPC,themostpopulareffortstoprovidethepoorwithper-25sonalcomputers,—largelydrivenbyGrameenPhone—createdatotalvalueaddedof$812millionin2005andcon-tributeddirectlyandindirectlytomorethan250,’sProjectShakti,,whichareintheformofsmall,,ensuringsuccessinvolvesafewguidingprinciples. MarketEducationSBEsmusteducatetheunder-servedmarketcontinuously,notonlyonproductben-efitsbutalsoonhowtoincreasetheirqualityoflifeasrelatedtotheSBE’,,theproductswillnotbeconnectedtothecustomers. LinkagewithLocalCommunitiesandtheInformalLeadersSBEsmustalsobuildlinkageswithlocalcommunitiesandtheinformalleaderssuchasdoctors,teachers,headsofvillages,
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,MA144APPLICATIONverycrucialindoingbusinesswiththelow-incomeseg-menttoeliminatetheculturalbarriersandresistances. ’,itwilladdcredibilityandfacili-tateacceptanceoftheSBE’,•ProductProductsnotCurrentlyAccessibleforLow-IncomeCustomers•PriceAffordable•PromotionWord-of-Mouth•PlaceCommunityDistribution6SellingSalesForceofSocialEntrepreneurs7BrandIconic8ServiceNo-Frills9ProcessLow-Cost
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,MACreatingEmergingMarketEntrepreneurs145SegmentationandTargetingAnSBEusuallyhasasimplesegmentationtarget,namely,,,low-incomeconsumerscanbeclassifiedintofour30segments:-driven,,,,ithelpsinspreadingtheword,,,havingacommunity
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,-Differentiation-BrandPoorconsumersarenotnecessarilyattractedtowhateverislowcost;,,“aheroforthepoor”orasacompanythat“teachespeoplehowtofishin-steadofgivingthemfreefish.”Themainmessageisthesame:,,forex-ample,positionsitselfasa“healthcareservicesproviderfor32ruralcommunities.”PhilipsIndiaintroducedDISHA(Dis-tanceHealthcareAdvancementProject),-tiationforarealSBEasopposedtoothersociallyresponsiblecompaniesandNGOsisthatanSBEprovidesalong-termsolutionbyprovidingentrepreneurshipatthebottomofthepyramid.
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,MACreatingEmergingMarketEntrepreneurs147Forexample,,,withitsCommu-nityDividendscheme,’-incomecus-tomersisaffordability,’AndreaandHerreroarguedthatinthecontextofpoverty,priceisassociatedwiththeTotalPurchasingCost,,especiallythoseinruralareas,oftenbuyproductsinurbanareas;,,-itempriceforthesesmallerpackagesishigher,
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,-fore,,-the-airreloading;-nessatthebottomofthepyramidisrelativelysmall,,,teachers,’sPatrimonioHoypromotesitslow-costbuildingprogramthroughteachersandchurchlead-erstogainmorebuy-infromthecommunity.
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,MACreatingEmergingMarketEntrepreneurs149SUMMARY:,thedistributionofincomeisintheshapeofapyramidratherthanadiamond,,,inparticular,,typicallywomen,-nessenterprisesamongentrepreneurs,companies,:NobelPeacePrize2006,Oslo,October13,,EconomicJustice:TowardsaLevelPlayingFieldinanUnfairWorld(Princeton:PrincetonUniversityPress,2006).,TheFortuneattheBottomofthePyramid:Erad-icatingPovertythroughProfits(Philadelphia:WhartonSchoolPublishing,2005).,Post-AmericanWorld(NewYork:&Co.,2008).,DianaFarrell,,“TrackingtheGrowthofIndia’sMiddleClass,”TheMcKinseyQuarterly,,TheEndofPoverty:EconomicPossibilitiesforOurTime(NewYork:PenguinPress,2005).,InvestinginDevelopment:APracticalPlantoAchievetheMillenniumDevelopmentGoals:Overview,UnitedNationsDevelopmentProgram,2005.
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,’swebsite,
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,,“TheFaceofthe$100Laptop,”BusinessWeek,March1,,“Pharma’sEmergingOpportunity,”TheMcKinseyQuarterly,,YouCanHearMeNow:HowMicroloansandCellPhonesAreConnectingtheWorld’sPoortotheGlobalEcon-omy(SanFrancisco,Jossey-Bass,2007).28.“MarketingtoRuralIndia:MakingtheEndsMeet,”IndiaKnowl-edge@Wharton,March8,,JohnGoodman,,,“MarketingProgramstoReachIndia’sUnderserved,”,,GustavoHerrero,andBrookeBarton(editors),BusinessSolutionsfortheGlobalPoor:CreatingSocialandEconomicValue(SanFrancisco:Jossey-Bass,2007).
P1:OTA/XYZP2:ABCc08JWBT240/KotlerFebruary7,201011:37PrinterName:CourierWestford,Westford,MA
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,MACHAPTERNINEStrivingforEnvironmentalSustainabilityAnotherwaytomakeadifferenceistosolveoneofthebiggestglobalissuesofourtimes:——DuPont,Wal-Mart,andTimberland—wecandistinguishthreerolesthatcompa-niescanadopttoprotectMotherNature—theInnovator,theInvestor,
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,MA154APPLICATIONTheInnovator:DuPontCaseDuPont,thesciencecompanythathasexistedformorethantwocenturies,,Dacron,Lucite,Kevlar,Corian,Tyvek,Teflon,andpolymerchemistrythatwouldchangehu-manlivesforeverwasalsothecreatorofchlorofluorocarbon(CFC),today,(USCAP),,,$5bil-lionofits$29billioninrevenuecomesfromsustainableprod-ucts:’sexecutives,“Myteamknowsthatwhentheywalkintomyofficewithanideaaboutanewproduct,it’dbetterhaveareducedenvironmentalfoot-print,[ifitdoesn’t]I’mnotlistening!”
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,’,,whenwarbegantoincorpo-ratebiologicalwarfareandthestrongestcountrypossessedthebestscientistsanddiscoveries,,,Tyvek,’sbiofuelunitisworkingtomakecornyieldmoreethanol,findingacheaperwaytoproducehigher-energycellulosicethanol,andpartneringwithBPonanewfuelcalledbio-butanol,ahigh-energyfuelthatworksintoday’,thesubstanceusedforbulletproofvests,-ally,-tionorinnovationproject,,theInnovatorusuallytakesgreatriskswhenembarkingonamajorresearchproject.
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,MA156APPLICATIONInnovatorsareusuallyfromthechemical/bio-technology/energy/,GE’’,DowChemicalanditsbiotech-nologyinvestments,andEmpressLaModerna,aboominglife-sciencescompanyfocusingon“greenchemistry”,innovatingforsustainable,en-vironment-savingproductsformsthecoreoftheirraisond’eˆ,“It’sNotEasyBeingGreen”:“Beinggreen...is4acatalystforinnovation.”TheInvestor:Wal-MartCaseThereisalsoachangeoccurringintheworld’slargestre-5tailer,,,Wal-Mart:,-Martmillionsofdollarsinfinesforitsenvironmentalabuse,-larshoppingvisittoWal-Martstoresbecausetheyperceivedthecompanynegatively,
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,MAStrivingforEnvironmentalSustainability157finallyaddressenvironmentalissues,-Mart’sformerCEO,ScottLee,announcedinhis“21stCenturyLeadership”,,,-Mart’-Mart’,manycriticsstillsaythatWal-Mart,whoseclassictagline“AlwaysLowPrices,”,thetaglinereads“.”ButmanyseeWal-Mart’smovetosavetheenvironmentasbeingchieflyperformedforselfisheconomicgoals—tosaveenergy,savecosts,,theInvestorissomeonewho“puts[money]touse,bypurchaseorexpenditure,insomethingofferingpo-tentialprofitablereturns,asinterest,income,orappreciation6invalue.”Althoughthisdescriptionmayhintatbeingsome-whatnegative,especiallyinthecontextofgivingsomethingbacktoMotherNatureandnottakingmore,-searchprojects(usuallybyInnovators),Wal-Martinvested
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,MA158APPLICATION$500millionin2005sothatitsstorescanuselessenergy,7itstrucksemitlesspoisonousgas,,’gasemissions,reduceuseofenergyfromtheirstores/computers,,,theInvestoralsoseeksreturnsinotherareas—improvementinimage,increaseinbrandvalue,avoid-anceofmorepressurefromenvironmentalorganizations,andsellinggreenproductstomeetmarketdemand,,:TimberlandCaseIncontrasttoWal-Mart,,engineering,andmarketingofpremium-qualityfootwear,apparel,andaccessoriesforconsumerswhovaluetheoutdoors,itbelievesin“doingwellbydoinggood.”Ithasnotonlybeenanenvironmentally-friendlycompany,,,ithasintroduceda“nutritionlabel”oneach
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,“abouttheproducttheyarepurchasing,includingwhereitwasmanufactured,howitwasproduced,anditseffectonthe8environment.”,ServiceSabbaticals,EarthDay,andServ-a-palooza,Timberlandaimstohelpunderprivilegedcommu-nitiesaswellastopromoteitstrademarkvalues,,’,forinstance,Timberlandplantedatreeforeachconsumerwhospent$-chemical/biotechnology/energy/,’smission,otherthanbusiness,istocreateawarenessamongusergroups,employees,,,inspire,.
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,’snewinitiative—whatitcallsanutritionallabelforshoesandboots—,Timberland’slabelsdescribetheimpactofproductsontheearth’,WholeFoodsMarket,FetzerVineyards,,THEINVESTOR,ANDTHEPROPAGATORBecausetheyhavedifferentmotivations,theInnovators,theInvestors,,-tors,reasons4to6forthePropagators,andreasons7to8fortheInvestors().
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,MAStrivingforEnvironmentalSustainability161InnovatorPropagatorInvestorEnablerPromoterAmplifierNatural resources Competitive marketHigh brand exposuredependencefor talentBig environmental Current exposureLow market power in impactto regulationhighly competitive marketIncreasing potentialGood environmental track for -talcausethroughtheirbusinessprocesses,,,,-Mart,().-vicescanbeclassifiedintofoursegments:trendsetters,value-seekers,standardmatchers,-tersaretheearlymarketwhereasvalue-seekersandstandardmatchersarethemainstreammarketandthecautiousbuyers
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,MA162APPLICATIONNicheMassPropagatorInvestorInitiate the buzz of greenCreate critical mass byPromotingproducts by targeting amaking green productsniche market of trend-the new standard in thesettersmainstream marketInnovatorProducingCreate fullyCreate specialty productcommercialized productfor a niche marketfor mass -liefstowardproductbenefit,,,,andtheirpurchasesreflectsophisti-catedtastesforupscale,-ever,-offpeople,
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,-seekerStandardmatcherCautiousbuyerSegment-Treehuggeror-Environmental-Environmental-EnvironmentalProfilevisionarypragmatistconservativeskepticsenvironmental-Rationalmotivation-Waitandseefor-Donotbelieveinenthusiastforusinggreengreenproductstogreenproducts-Emotionalandproductsreachmassusagespiritualmotivation-Utilizinggreen-Usinggreenforusinggreenproductstoincreaseproductsthathaveproductefficiencyandsavealreadybecame-LookingforcostsstandardcompetitiveadvantagethroughgreeninnovationPositioningforEco-advantageEco-efficiencyEco-standardNotworthpursuingTargetingtheInnovativeproductforMorevaluewithProductwithmassSegmentcompetitivelessimpactusageandadvantageconformance
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,,’,,whichismoreemotionalandspiritual,,“thinkers”,,value-seekersarealsoconservative,practicalconsumers;theylookfordurability,functionality,,,-seekersarepractical,’,,
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,MAStrivingforEnvironmentalSustainability165TrendsetterValue-seekerStandard-matcherCautious-buyerDecreased likelihood of buying green ,thefourthsegment,().Intheintroductionstage,,,thereisagapinthemarket—thechasm—,competitionintensifiesandmarketersneedtostartfindingdifferentiatorsotherthanjustbeinggreen.(.)SUMMARY:GREENINNOVATIONFORSUSTAINABILITYInthischapter,-cludelowercost,betterreputation,
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,MA166APPLICATIONMatureGrowthDeclineIntroductionPromote Eco-Promote Eco-Promote Eco-AdvantageEfficiencyEfficiencyUse “green”as Build early As more green main source of popularity by competitors differentiationtargeting the emerge, increase value-seekersdifferentiation in Seek other areasendorsement Utilize the from the trend-economics of settersscale to increase affordabilityUtilize word-of-mouth marketing to reach the growth ,wearguethatwhentheyalloperateinthesamemarketandcollaborate,,companiesneedtodistinguishthefoursegmentsinthegreenmarket—thetrendsetters,value-seekers,standardmatchers,,“ChemicalReaction,”Fortune,March22,,“BeyondGreening:StrategiesforaSustainableWorld,”HarvardBusinessReview,January–February1997.
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,,“GreenisGood,”FortuneMagazine,March22,,“It’sNotEasyBeingGreen,”HarvardBusinessReview,May–-MartCaseismainlywrittenbasedonanarticlebyMarcGunther,“TheGreenMachine,”Fortune,July31,.“IsWal-MartGoingGreen?”MSNBCNewsServices,October25,,,May11,’DonnellandChristineDugas,“MoreRetailersGoforGreen—theEcoKind,”USAToday,April19,,“CompassionateCapitalismatTimberland,”Fortune,February8,,GreentoGold:HowSmartCompaniesUseEnvironmentalStrategytoInnovate,CreateValue,andBuildCompetitiveAdvantage(NewHaven,CT:YaleUniver-sityPress,2006).
P1:OTA/XYZP2:ABCc09JWBT240/KotlerFebruary21,201011:11PrinterName:CourierWestford,Westford,MA
P1:OTA/XYZP2:ABCc10JWBT240/KotlerFebruary21,201011:12PrinterName:CourierWestford,Westford,,,,,-ues,’srootsandmorefullycomprehendthem,,-mentGoals(MDGs),
P1:OTA/XYZP2:ABCc10JWBT240/KotlerFebruary21,201011:12PrinterName:CourierWestford,Westford,
P1:OTA/XYZP2:ABCc10JWBT240/KotlerFebruary21,201011:12PrinterName:CourierWestford,Westford,MAPuttingItAllTogether171CampbellSoupCompany,forinstance,,,,becausewithoutanycompetitors,,wecanlearnourownstrengthsandweaknessesaswellasthoseofcompetitors;,,,,’,,-calcompanies(BoehringerIngelheim,Bristol-MyersSquibb,GlaxoSmithKline,Merck,Roche,Abbot,andGilead)thatcol-laborativelybroughtdownthepriceofHIV/AIDStreatmentin7developingcountriesinpursuitofMDGs.
P1:OTA/XYZP2:ABCc10JWBT240/KotlerFebruary21,201011:12PrinterName:CourierWestford,Westford,MA172APPLICATIONAnotherexampleiswhenmultipletelecommunicationscompaniesintheUnitedKingdom(Motorola,CarphoneWare-house,O2,Orange,Vodafone,T-Mobile,Tesco,VirginMobile,andFresh):BESENSITIVETOCHANGE,,,,-ever,,inintroducingthePrius,-Mart,theretailgiant,’slargestretailerhasbeencriticizedformanythingsandattackedbymanyforitsemployment,envi-ronmental,,,changewiththem.
P1:OTA/XYZP2:ABCc10JWBT240/KotlerFebruary21,201011:12PrinterName:CourierWestford,Westford,MAPuttingItAllTogether173CREDO3:GUARDYOURNAME,BECLEARABOUTWHOYOUAREInmarketing,,’’’spromi-nentpracticeofcommunitytrade—buyingnaturalingredientsfromlocalandpoorcommunitiesaroundtheworld—-monbusinesssense,,theyhavehelpedTheBodyShoptobecomeoneoftheUnitedKingdom’,theworld’slargestcosmeticcompany,L’Oreal,’Oreal—acompanythathasbeencriticizedfortestingcertainingredi-entsonanimals—’:CUSTOMERSAREDIVERSE;-dresseveryone,butdomakeyourcasetothosewhoaremostreadytobuyandbenefitfromthepurchaseandrelationship.
P1:OTA/XYZP2:ABCc10JWBT240/KotlerFebruary21,201011:12PrinterName:CourierWestford,Westford,“glocal”:,,ithelpsachieveGoals1,2,3,7,:,,.
P1:OTA/XYZP2:ABCc10JWBT240/KotlerFebruary21,201011:12PrinterName:CourierWestford,Westford,MAPuttingItAllTogether175Toimprovethehealthofthelocalcommunity,,’,2,&Gamble’,-treatmenttechnology,,,thecompanyishelpingtheworldtoachieveGoals145,6,:ALWAYSMAKEYOURSELFAVAILABLE,SPREADTHEGOODNEWSDon’’sglobalknowledgeeconomy,—thesocio-culturaldifferencesbetweenthosewhohaveaccesstodigitaltechnologyandtheInternetandthosewhodon’t—,,,-becustomersfindyou.
P1:OTA/XYZP2:ABCc10JWBT240/KotlerFebruary21,201011:12PrinterName:CourierWestford,Westford,MA176APPLICATIONCREDO7:GETYOURCUSTOMERS,KEEPANDGROWTHEMOnceyouhaveacustomer,,onebyone,(CRM).,,:WHATEVERYOURBUSINESS,,’scalling,,-paniesshouldunderstandthattheircorporatevalues,ex-pressedthroughtheirproductsandservices,shouldhaveapositiveimpactonpeople’,itispracticingthesenseofservicetoemployeesaswellbylet-tingthemvoteonthecompany’sstrategicdirection.
P1:OTA/XYZP2:ABCc10JWBT240/KotlerFebruary21,201011:12PrinterName:CourierWestford,Westford,MAPuttingItAllTogether177Everybusinessisaservicebusiness,:ALWAYSREFINEYOURBUSINESSPROCESSINTERMSOFQUALITY,COST,ANDDELIVERYThetaskofmarketersistoalwaysimprovequality,cost,anddelivery(QCD),suppliers,andtoyourchannels,-ity,quantity,deliverytime,,forinstance,,,,,2,,:GATHERRELEVANTINFORMATION,BUTUSEWISDOMINMAKINGYOURFINALDECISIONThisprinciplecautionsustocontinuallylearn,learn,,,theboardmembersofHersheyTrustconsideredsellingitsstakeinHersheyFoodsbecauseoftheemergence
P1:OTA/XYZP2:ABCc10JWBT240/KotlerFebruary21,201011:12PrinterName:CourierWestford,Westford,-spective,,’ssurprise,,,itwasnotwisebecauseitdidn’tconsiderthesocialimpactofthedecision,:IT’STIMETOMAKEACHANGE!Isitpossibletobeahuman-centriccompanyandstillbeprofitable?,products,,
P1:OTA/XYZP2:ABCc10JWBT240/KotlerFebruary21,201011:12PrinterName:CourierWestford,Westford,,WithinReason:RationalityandHumanBehavior(NewYork:PantheonBooks,1999).,“BreastCancerAwarenessStrategyIn-creasesSalesofCampbell’sSoup:Pink-LabeledCansaHitwithKrogerCustomers,”AdvertisingAge,October3,´bastienMiroudot,“TheLinkagesbetweenOpenServicesMarketandTechnologyTransfer,”,January27,,Co-opetition:ARevolutionaryMindsetthatCombinesCompetitionandCoopera-tion...TheGameTheoryStrategythat’sChangingtheGameofBusiness(NewYork:CurrencyDoubleday,1996).7.“IncreasingPeople’sAccesstoEssentialMedicinesinDevelopingCountries:AFrameworkforGoodPracticeinthePharmaceuticalIndustry,”AUKGovernmentPolicyPaper,DepartmentforInter-nationalDevelopment,,“(RED)PhoneUnitesRivalTelecomOperatorsinBattleagainstAIDS,”TheIndependent,May16,,“Toyota:TheBirthofthePrius,”Fortune,February21,,“TheGreenMachine,”Fortune,July31,,“EmergingGiants:Build-ingWorld-ClassCompaniesinDevelopingCountries,”HarvardBusinessReview,´cileChuret&AmandaOliver,´cileChuret&AmandaOliver,´cileChuret&AmandaOliver,,ProfitwithPrinciples:SevenStrategiesforDeliveringValuewithValues(NewYork:CurrencyDoubleday,2004).,CorporateSocialResponsibility:Do-ingtheMostGoodforYourCompanyandYourCause(Hoboken,NJ:JohnWiley&Sons,2005).´cileChuret&AmandaOliver,,TheTripleBottomLine:HowToday’sBest-RunCompaniesAreAchievingEconomic,Social,andEnvironmentalSuccess—andHowYouCanToo(SanFrancisco:Jossey-Bass,2006).
P1:OTA/XYZP2:ABCc10JWBT240/KotlerFebruary21,201011:12PrinterName:CourierWestford,Westford,MA
P1:OTA/XYZP2:ABCindJWBT240/KotlerFebruary21,201011:14PrinterName:CourierWestford,Westford,MAINDEXABodyShop,The,16,54,Abbot,17160–61,77,91,110,114,Adams,Scott,53130,173AIG,70,101BoehringerIngelheim,16,,58–59,65,87,171111Bono,172AmericanMarketingBorden,Neil,25Association,17BottomofthePyramidAmericanExpress,125(BOP),37,105,142,145Apple,35,59,60BP,170AspenInstitute,102Brand:Authenticity,34,39–40,45,equity,11458,60,66,71–72,78identity,34,36,39,45Avis,79image,36–37,39Avon,126integrity,37,39management,27BBranson,Richard,35,61Babyboomers,131Brazil,76BankRakyatIndonesia,(BRIC),76BottomofthePyramidBristol-MyersSquibb,171(BOP)Buffett,Warren,102Ben&Jerry’s,77,91–92,Butman,John,104110BerlinWall,12CBlackBerry,7Calne,Donald,170Blog,7CampbellSoup,171181
P1:OTA/XYZP2:ABCindJWBT240/KotlerFebruary21,201011:14PrinterName:CourierWestford,Westford,MA182INDEXCausemarketing,125–126,Conversation,51,64–66,129,134114,139,148Cemex,148Corporatebrand,37,Challengeplot,61114–115Channelpartner:Covey,Stephen,34–35aschangeagent,93–96Craigslist,7ascollaborator,90–93Creativesociety,ageof,5,ascreativeally,96–9817–21Channelpartnership,92Creativityplot,61Characterbuilding,34Crowdsourcing,,15–17,60ConnectionplotCulturalmarketing,5,China,12–13,76,88,12–17130–131,138,140,149Customermanagement,Chopra,Sunil,8725–26Chouinard,Yvon,110Christensen,Clayton,19,105,140DCisco,74,78,83,-Cola,15,51–52ChallengeplotCocreation,10,32–33Davis,Mellinda,20customization,33Day,George,58platform,33Dell,87–89,140Colgate,64Dell,Michael,88Collaborativemarketing,DeSantis,Jake,705–,James,80,101,Emergingmarket103Differentiation,5,20,31,Communitization,33–3434–37,39,122–124,Connectanddevelop,10–11127,132,146–147,159,Connectionplot,61165,173ConocoPhilips,170Dilbert,53Consumerempowerment,Disney,122–12363–66Dolan,Paul,40Consumer-centricDoughnutprinciple,,Peter,,110,153,154–156
P1:OTA/XYZP2:ABCindJWBT240/KotlerFebruary21,201011:14PrinterName:CourierWestford,Westford,MAIndex183Epolitical,13eBay,9,61,65,87,111sociocultural,14Education,129Gobe,Marc,15,35Emergingmarket,76,125,Godin,Seth,7,33–34140Google,64,130Emotionalmarketing,27GrameenBank,137Enron,69Grameenphone,139,143EnterpriseRent-A-Car,75GreatDepression,29,101Experienceeconomy,58Greenwald,Robert,156Experientialmarketing,27ExxonMobil,31HHabitatforHumanity,14FHart,Stuart,19Facebook,7Hasselhoff,David,12FetzerVineyards,40Heath,Chip,61Flickr,7Heath,Dan,61Florida,Richard,18Hershey,177Fogel,RobertWilliam,20Hertz,79Fonseca,EduardoGiannettiHewlett-Packard,9da,132HindustanLever,,63Holcim,170FourPs,25–26Holliday,Chad,156Friedman,Lawrence,92Human,keycomponentof,Friedman,Thomas,1334–35GHumancivilization,17GatesFoundation,83Humanspirit,4Gates,Bill,54marketingto,17–21,GenY,13134–39GeneralElectric,8GeneralMotors,66IGerstner,Louis,102IBM,8Gilead,171IDEO,75Gilmore,James,34“I’dLiketoTeachtheWorldGlaxoSmithKline,143,171toSing,”15Globalizationparadox:IKEA,51ageof,5,12–17Immelt,Jeff,59economic,14India,76
P1:OTA/XYZP2:ABCindJWBT240/KotlerFebruary21,201011:14PrinterName:CourierWestford,Westford,MA184INDEXIndustrialRevolution,5Lencioni,Patrick,71Informationage,3Liddy,Edward,70Informationtechnology,3,Linux,95,11,13,72,175Livingthebrand,78Initialpublicoffering(IPO),LoadsofHopeprogram,64103InnoCentive,9Innovator,153,154–156,M157,158,159,160,Mac,59161,,5,7,27,175CreativityplotInvestor,153,155,156–158,Macintosh,1984159,160,161,165commercial,,7,59alsoMaciPod,59MariaYee,93–94ITC,95Marketpolarization,104–106Marketing:Jdefinition,17Jobs,Steve,35evolutionof,27futureof,,3,5,26,30,Kanter,RosabethMoss,78,,3,4,5,27Kelleher,Herb,,3,5,12,14,Kelly,David,8317,20–22,34,36,39,Kennedy,Ted,6345,53,72,80,82,Kenya,3789–90,93,96,98,111,Kramer,Mark,77113,115,127,130,Krishnan,.,32134,166,174,178Kunreuther,Howard,104Marketingmix,25,95,147,Kutcher,Ashton,7149Mark-to-marketaccounting,L69Lee,Nancy,105Marriott,78Lee,Scott,157Maslowpyramid,19,83,LehmanBrothers,101127,128,133
P1:OTA/XYZP2:ABCindJWBT240/KotlerFebruary21,201011:14PrinterName:CourierWestford,Westford,MAIndex185Masscollaboration,10OMayoClinic,74O2,172McCarthy,Jerome,25Obama,Barrack,29,63McDonald’s,16OfficeDepot,132McKee,Robert,59Opensource,9,33,133McNealy,Scott,7Orange,172Merck,171Metcalfe,Robert,64PMetcalfe’sLaw,64Participation,ageof,5–,88MicrofinancePatagonia,110Microfinance,106,137,142,PathofService,37174PatrimonioHoyprogram,,27Microsoft,9Philanthropy,40,124,125,Middleclass,132126MillenniumDevelopmentPhilips,170Goals(MDGs),137,170,Pine,Joseph,34171,174,175,177Pink,Daniel,17Minorities,132Porras,Jerry,103Mission,4,20,40,42,44,Porter,Michael,7752–53,63Positioning,26–27,30,creating,53–5435–37,39,94,146,173definition,41Post-growth,eraof,89Moot,63Poverty,4,14–15,19,62,Motorola,12695,105,107,132,Myners,Lord,102137–138,140–141,147,MySpace,9149,170,173Prahalad,.,18NPrivacy,122,130Narcissisticleaders,58Procter&Gamble,10,11NetPromoterScore,65Productmanagement,25,NewCoke,5126Newwavetechnology,5,7,,143Profitability,42
P1:OTA/XYZP2:ABCindJWBT240/KotlerFebruary21,201011:14PrinterName:CourierWestford,Westford,MA186INDEXPropagator,153,155,Schultz,Howard,35158–159,160,161,&Son,37–38,16680–81,170,177Pyramid,economic,Segmentation,27137–139SevenGiants,61Shareholder,typesof,102–103QShort-termism,financial,Quaker,125101–102Shriver,Bobby,172RSierraClub,14Rabobank,170Silverstein,Michael,104Rackham,Neil,92Smileprogram,64Rappaport,Alfred,102SocialBusinessEnterpriseRecession,29–30,62,122,(SBE),141125Socialjustice,130,131REDproducts,172Socialmedia:Reed,David,64collaborative,9–12Reed’sLaw,64expressive,7–9Reichheld,Frederick,65Speth,James,89Returnability,42Spiritualmarketing,5Ries,Al,35Starbucks,35Roberts,Kevin,35Stiglitz,Joseph,13Roche,171Story:Roddick,Anita,54characters,60,61Roddick,Gordon,110metaphors,60,61–62RottenTomatoes,7plot,60,61,62Ruff,Richard,92Storytelling,59–63Russia,76Strategicforesight,54Subway,129SSunMicrosystems,7Saab,66Sustainability,42Samuelson,Robert,13businesscase,111–115Savitz,Andrew,177definition,104Schmitt,Bernd,35environmental,42,106,Schoemaker,Paul,58107,109,153,170
P1:OTA/XYZP2:ABCindJWBT240/KotlerFebruary21,201011:14PrinterName:CourierWestford,Westford,MAIndex187indices,109Values,4,20,40,42,43,andshareholdervalue,44107–110creating,72–75definition,41typesof,71–72TVigilantleaders,58Targeting,27Virgin,35Technorati,7VirginMobile,172Terez,Tom,76Vision,4,20,40,42,43,44Tesco,172definition,413M,75Vodafone,170,172TiananmenSquare,12Volunteering,39–40,64,82,Tichy,Noel,59160Tide,64Volvo,35Timberland,37–38,44–45,153,158–159T-Mobile,172WToyota,156,172Wachovia,,126polarizationWal-Mart,106,123,124,,153,156–158polarizationWashingtonMutual,101Transformationeconomy,59Weber,Karl,177Trendwatching,10Wegmans,75,78,123–124,Tribalism,33133Triplebottomline,43Welch,Jack,53Trout,Jack,35Welch,Suzy,53Twitter,7Wellness,94,122,129,160WholeFoods,75,83,124,133,161UWikipedia,9Unilever,77Wordofmouth,30,147VValue,Attitude,andLifestyleYStudy(VALS),145,162,Yelp,
P1:OTA/XYZP2:ABCindJWBT240/KotlerFebruary21,201011:14PrinterName:CourierWestford,Westford,MA188INDEXYouTube,7,8,94Zaltman,Lindsay,61Yunus,Muhammad,106,ZaltmanMetaphor137,141,147ElicitationTechnique(ZMET),Z61–62Zakaria,Fareed,138Zohar,Danah,19Zaltman,Gerald,61Zuckerberg,Mark,58
$ USA / $ CAN“Marketing has lost some of its sway in recent years. This provocative book tells how marketing can regain trust and infl uence inside and outside the organization.” From Products to— Leonard L. BerryDistinguished Professor of Marketing, Texas A&M University, Customers tocoauthor of Management Lessons from Mayo ClinicToday’s customers are choosing products and companies PHILIP KOTLER is the . Johnson & Son Distin-that satisfy deeper needs for creativity, community, and guished Professor of International Marketing at North-the Humanidealism. Leading companies realize they must reach western University’s Kellogg School of Management, “Philip Kotler is again leading the way in strategic marketing with timely insight into these highly aware, technology-enabled customers, and and one of the world’s leading authorities on marketing. a transformational period. Marketing makes a compelling case for the competi-that the old rules of marketing won’t help them do this. His writing has defi ned marketing around the world for Spirittive benefi ts of tapping into the human spirit to engage consumers.”Instead, they must create products, services, and corpo-the past forty years. The recipient of numerous awards rate cultures that inspire, include, and refl ect their cus-and honorary degrees from schools all over the world, he — Dennis Dunlap tomers’ an MA from the University of Chicago and a PhD CEO, American Marketing Associationfrom MIT, both in economics. Kotler has an incredible Legendary marketing sage Philip Kotler and his col-international presence—his books have been translated leagues Hermawan Kartajaya and Iwan Setiawan have into approximately twenty-fi ve languages, and he regu-identifi ed this defi nitive break with earlier models as “Marketing has important ideas for all senior managers. It clearly points the path larly speaks on the international . Moving beyond product-based (Mar-to the values-driven human-centric fi rm. The innovative ‘ten credos’ integrate market-keting ) and consumer-based (Marketing ) ap-ing and values and provide personality and purpose to companies that practice them.”proaches, Marketing takes a holistic approach to customers as multidimensional, values-driven people, — Stephen A. Greysereven as potential collaborators. Richard P. Chapman Professor of Business Administration, marketingEmeritus, Harvard Business SchoolMarketing clearly lays out the authors’ key ideas and gives you real-world examples so you can implement HERMAWAN KARTAJAYA is the founder and CEO of Marketing practices at your organization. Custom-MarkPlus, Inc. and is one of the “50 Gurus Who Have ers have realized that their purchasing power has a global “For too long, marketers thought customer satisfaction was the goal of marketing Shaped the Future of Marketing” according to the Char-impact, and they are acting accordingly and talking to tered Institute of Marketing, United . Marketing makes the persuasive case that customer and societal welfare each other about the choices they make. Marketing is the next frontier for companies. Consumers are demanding more from themselves explains how you can engage this conversation, position and so should smart companies.”your brand as a positive force in the world, and collabo-rate successfully with customer-advocates.— Nirmalya Kumar Professor of Marketing and Co-Director of the Aditya Birla India Marketing also goes beyond “messaging” custom-ers to encompass how a company defi nes and embodies Centre at London Business SchoolIWAN SETIAWAN is a senior consultant at MarkPlus, its values for a variety of stakeholders. It explores how Inc. where he consults for clients on marketing have an impact on issues such as poverty, socio-cultural change, and environmental sustainability. It also looks at how values-driven marketing affects employees, Jacket Images: iStockphotochannel partners, and Photographs: (Philip Kotler) ' Nathan Mandell,(Hermawan Kartajaya) ' Darwis TriadiCustomers are more aware, more active, and more pow-erful than ever before. Marketing shows you how to demonstrate your relevance to this interconnected, global community, giving you an unmatched guide to PHILIP KOTLERwinning in this new age of KARTAJAYA IWAN SETIAWANMATTE FINISHKOTLERmarketing SETIAWAN
