Kotler

Winning Marketing Strategies: How to Compete in the Global Marketplace
• Philip Kotler, Ph.D • Kellogg School of Management • Northwestern University • Seminarium Ecuador • Guayaquil, Ecuador • March 13, 2008

Two Challenges Facing Your Companies
1. Will your companies be able to defend their market against the growing invasion of foreign global brands? 2. Can your companies develop strongregional or global brands?

Your Companies Need Stronger Marketing and Sales
• Widespread failure to understand strategic marketing. • Little or poor use of marketing research to find new opportunities and segment the market. • Weak skills in market planning and control. • Over focusing on winning through low price; neglecting differentiation and branding. • Insufficient appreciation of therole of good service in building customer loyalty.

Outline of Seminar
1. 2. Building and Strengthening Your Brand Improving Marketing’s Role and Relationships in the Company Finding New Opportunities Finding New Ways to Communicate Using New Technologies and Measuring Results

3. 4. 5.

1. Building and Strengthening Your Brand
• The world is globalizing. • Products developed in onecountry–Gucci purses, Mont Blanc pens, McDonald’s hamburgers, Japanese sushi, Chanel suits, German BMWs–are finding enthusiastic acceptance in other countries. • An Ecuadorean businessman may wear an Armani suit to meet an English friend at a Greek restaurant who later returns home to drink Russian vodka and watch an American soap on TV.

Which Businesses to Internationalize?
Computer Wholesaler FastFood Fast Food Franchises Franchises Financial Financial Services Services Imports/ Imports/ Distribution Distribution Hotel Hotel Car Car Dealership Dealership Sugar Sugar Grocery Grocery Stores Stores Industrial Industrial Parts Parts Airline Airline Food Food Processing Processing Textiles Textiles Real Estate Real Estate Services Services Tobacco

Does Branding Work? You Bet!!

CorporateBranding

Are You a Brand-Run Company?
• There is a difference between: – Between Acme bricks and just bricks. – Between Cemex cement and just cement. Brand-managed B2B companies are usually well-known and included in the consideration set of buyers. Buyers know a lot about these companies beyond the character of their products, such as their positioning and value propositions. Buyers normallyhave emotionally favorable feelings about the brand-managed company. Brand-managed companies have brand strategy documents and possibly have appointed a Chief Branding Office (CBO) Brand-managed companies track brand equity in addition to sales, costs, and profits

• • • • •

What Role Does a Brand Play?
• TQM has driven bad products and services out of the market. Hence the need foremotional or meaning differentiation.

• “Branding is all about uniqueness. In this age of sameness, difference rules. The brand…is your company's differentiation code. It is a code as vital, as powerful, as universal, and as unique as DNA.”
Source: Thomas Gad, 4-D Branding

A Strong Brand Improves Demand and Supply
• On the demand side:
– – – – higher price increased sales volume lower churnmore brand stretching

• On the supply side:
– greater trade acceptance, more favorable supplier terms, lower rejection – lower staff acquisition and retention costs – lower cost of capital – better scale economics through higher volume

What Makes a Strong Brand?
• Strong brand = Product Benefits x Distinct Identity x Emotional Values
• Peter Doyle, Marketing Management & Strategy, 1997• Strong brand = Overt Benefit x Readiness to Believe x Dramatic Difference
• Doug Hall of P&G and his Market Physics findings

B2B Brand-Managed Companies
• • • • • • • • • • • IBM FedEx Schott Nucor Tata Steel Lenova Cemex Microsoft Intel HP Cisco Systems • • • • • • • • • Dell Oracle SAP Siemens Boeing Bosch Caterpillar Black and Decker Accenture

Sequence of the Brand Building...