Kotler - marketing 3.0

Thriving with Marketing 3.0 g t a et g 3.0

HSM Sao Paulo S P l November 10, 2010

MARKETING’S LOSS OF EFFECTIVENESS
MARKETING will be less effective in the next few y years Marketing budgets will be lower Companies will want marketers to do more with less

DISTRIBUTORS

TRADITIONAL MEDIA

COMPETITION

PUBLIC

SOCIAL MEDIA NETWORKS

DISTRIBUTORS will demand more TRADE PROMOTION. This will leave less money for g , marketing research, advertising and consumer promotion for brand building and ultimately reduce brand equity. Investors will then Investors will then downgrade the stock. This will leave the company with fewer resources to prop up demand. d d This is a VICIOUS

Traditional media such as TV 30‐second spots, newspapers, etc., are growing LESS EFFECTIVE

Categories are so crowded with competitors that heavy price cutting will be UNAVOIDABLE

The public, in its wish to spend less, will be less inclined to pay higher prices for top brands where the quality differences are minimal. There is a strong shift to store brands and sub‐ brands. This means brands This means that top brands are overvalued and there may be a brand bubble.

Social media networks will play an increasingly influential role in shaping brand evaluations

CIRCLE

STRATEGIC vs TACTICAL MARKETING
Most marketing departments are engaged in brand‐maintenance instead of brand‐ building. Company marketers spend only 15‐30% of their time doing true marketing activities. Company marketers spend only 15 30% of their time doing true marketing activities The rest of the time is spent on forecasting volume, securing approvals on label artwork, checking manufacturing schedules, and doing routine analysis. Strategic marketing is missing in many marketing departments. Strategic marketing requires taking a 3‐5 year view of the business.

Downstream Marketing Markets TODAY s Product Markets TODAY’s Product

Upstream Marketing