The World Marketing Summit:

Creating a Better World Through Marketing

Philip Kotler Kellogg School of Management

Dhaka, Bangladesh March 1-3, 2012

Facts about World Marketing TodaysSchedule TodaysSchedule Summit

This is the worlds first World Marketing Summit. Eminent speakers (economists, marketers, psychologists) coming from 20(?) countries. Over 3,000(?) delegates attending the talks also coming from several countries. Theme is Creating a Better World Through Marketing. WMS will focus on how marketing can improve lives in four areas: Health, Education, Environment, and Food WMS is unique in establishing eight continuing incubators around these themes to advance human knowledge and well-being.

Nowtheriseoftwospeedworld
Welcome to "the new normal" a two-speed world in which two types of economies are emerging: 1.On the one hand, rapidly developing countries such as China, India and Brazil are characterized by high growth but low average household income. With GDP ranging from 8% to 12% and some 2.6 billion people, these markets are hard to ignore. 2.By contrast, the low growth countries -- most of the U.S. and Western Europe, for instance -- have a slower rate of economic growth but higher household incomes. With GDP growth of only 1% to 4%, these economies are expanding more slowly but their populations have higher salaries -and more to spend.

ource: Knowledge@Wharton

The Strategic TrajectoryGrowth for a The Strategic Trajectory for a Economy Growth Country
Low cost, average quality domestic products. Low cost, average quality domestic products exported. Low cost, good quality products exported. High-end products made for other companies. Branded products (regional). Branded products (global). Dominant brands (global).

The Evolution of Marketing

2000s 1990s 1980s 1970s 1960s 1950s FINANCIALLY-DRIVEN ONE-TO-ONE UNCERTAIN POSTWAR SOARING TURBULENT
Emotional Marketing Experiential Marketing Internet and ebusiness Marketing Sponsorship Marketing Marketing Ethics ROI Marketing Brand Equity Marketing Customer Equity Marketing Social Responsibility Marketing Consumer Empowerment Social Media Marketing Tribalism Authenticity Marketing Co-creation Marketing

The Marketing Mix Product Life Cycle Brand Image Market Segmentation The Marketing Concept The Marketing Audit

The Four Ps Marketing Myopia Lifestyle Marketing The Broadened Concept of Marketing

Targeting Positioning Strategic Marketing Service Marketing Social Marketing Societal Marketing Macro-marketing

Marketing Warfare Global Marketing Local Marketing Mega-marketing Direct Marketing Customer Relationship Marketing Internal Marketing

The Four Tasks of Holistic Marketing

Five shifts
Driving business Impact Galvanizing your network Pervasive innovation Inspiring marketing excellence Relentless customer focus

From Traditional to Digital Media

From Traditional to Digital Media
Traditional Media Face-to-face sales calls Trade fairs Leaflets, posters, brochures Billboards Newspapers and magazines Direct mail and catalogs Telephone Radio TV Film Sponsorships Street level promotion and festivals Product placement Digital Media Websites Email Banners and pop-ups Podcasts Webcasts Videocasts Expressive social media (Blogs, Facebook,Twitter,, Linkedin, YouTube) Collaborative social media (Wikipedia, Rotten Tomatoes, Craigslist) Mobile marketing

Power is Shifting to the Power is Shifting to the Consumers Customers

Consumers have now become the Brand Influencers they are publishers, broadcasters and critics of different products and brands. Facebook has more than 750 million active users, Twitter users send 140 million tweets a day. YouTubes 490 million users upload more video content every two months more than the three major U.S. TV networks created in 60 years. Mobile commerce is showing an annual growth rate of 40 percent. There will be a growth from 70 million tablets worldwide today to 300 million by 2015.

Types of Innovation
Product and service incremental innovation Marketing innovation

Types of Innovation

Business model innovation

New to the world innovation

Source: http://2.bp.blogspot.com/_qD9Y8Ncd3I4/Sb6hKKOJkJI/AAAAAAAACDo/fHZHCQbvRe4/s400/BornToInnovate2009.jpg

EVOLUTION OF MANAGEMENT THINKING Evolution of Marketing

Thinking

1950s 1960s

1970s 1980s

1990s 2000s

2010s 2020s

Comparison of Marketing 1.0, 2.0, and 3.0

Values-Based Matrix (VBM) Model

INDIVIDUAL

Y N A P M O C

Mind
Deliver SATISFACTION

Heart
Realize ASPIRATION

Spirit
Practise COMPASSION

N O S I M

) y h W (

ProfitAbility
N O S I V ) t a h W (

ReturnAbility

SustainAbility

BeBETTER
S E U L A V ) w o H (

DIFFERENTIATE

Makea DIFFERENCE

Values-Based Matrix of S.C. Johnson

MOVING TOWARD MARKETING 3.0 Where Do You Stand?

Marketing 1.0 MIND PRODUCTCENTERED ECONOMICVALUE PROFITS Marketing 2.0 HEART CUSTOMERORIENTED PEOPLE-VALUE SOCIAL PROGRESS Marketing 3.0 SPIRIT VALUES-DRIVEN ENVIRONMENTVALUE HUMAN HAPPINESS

Where is your company now? Where do you want it to be? Why? What would steps would you take?

Examples of Great Missions and Vision

Leader
Ingvar Kamprad Richard Branson Walt Disney Herb Kelleher Anita Roddick Bill Gates Steve Jobs Jeff Bezos

Brand
IKEA Virgin Walt Disney Southwest Airlines The Body Shop Microsoft Apple Amazon.com

Mission and Vision

Make stylish furniture affordable Bring excitement in boring industries Create magical world for families Make flying possible for many people Embed social activism in business Realize ubiquitous computing Transform how people enjoy technology Provide the biggest selection of knowledge delivered conveniently

Companies Americans Love Amazon, Apple, Best Buy, BMW, CarMax, Caterpillar, Commerce Bank, Container Store, Costco, eBay, Google, Harley-Davidson, Honda, IDEO, IKEA, JetBlue Johnson & Johnson, Jordan's Furniture, L L Bean, New Balance, Patagonia, Progressive Insurance, REI, Southwest, Starbucks, Timberland, Toyota, Trader Joe's, UPS, Wegmans, Whole Foods. These firms of endearment were highly profitable. They outperformed the market by a 9-to-1 ratio over a ten-year period. More fulfilled employees, happy and loyal customers, innovative and profitable suppliers, environmentally healthy communities.

Characteristics of Firms of of Endearment Characteristics of FirmsEndearment

They align the interests of all stakeholder groups Their executive salaries are relatively modest They operate an open door policy to reach top management Their employee compensation and benefits are high for the category; their employee training is longer; and their employee turnover is lower They hire people who are passionate about customers They view suppliers as true partners who collaborate in improving productivity and quality and lowering costs They believe that their corporate culture is their greatest asset and primary source of competitive advantage. Their marketing costs are much lower than their peers while customer satisfaction and retention is much higher.

What Are the Major Causes That Companies Invest In?

What are some major social causes Avon cancer thatMills Breastnutrition adopt? companies General Better
General Motors Home Depot Kraft Levi Strauss Motorola Pepsi Cola Shell Petsmart Aleve British Airways Starbucks Best Buy Traffic safety Habatat for Humanity Reducing obesity Preventing AIDS Reducing solid waste Staying active Coastal cleanup Animal adoption Arthritis Children in need Tropical rainforests Recycle used electronics

See Philip Kotler and Nancy Lee, Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause, Wiley 2005.

What is the Relationship What is the Relationship between Business and and Society? between Business Society?
Old philosophy: What is good for business is good for society! The simple act of profit maximization is good enough. New philosophy: What is good for society is good for business. (GE) Every company should figure out not only how to improve its output but also its outcomes. A food company should improve nutrition; an energy company should improve energy; a bank should improve sound savings.
Michael Porter and Michael Kramer, The Big Idea: Creating Shared Value, Harvard Business Review, January/February 2011.

thanzyl@markandcomm.com. Creating shared value (CSV)

Develop the Social Responsibility Side your business of Your Business

Economic Growth

Develop the social responsibility side

Recession

Consumer Life Styles and Well-Being

Sustainability

Global poverty

Empower your marketing engine

To Win at Marketing,

1. See crisis as opportunity. 2. Go to where the growth is. 3. Engage marketing to drive your future. 4. Intensify your online and social media activity. 5. Develop the social responsibility side of your business.

Your thoughts and actions will flow into the rest of the world.