Sell Value

Sell Value, Not Price

Price produces revenue.

Philip Kotler

Price is the one element of the marketing that produces revenue; the other elements of produce costs.

A firm must set price for the first time when it develops a new product, when it introduces its regular products into a new distribution channel or geographical area, and when it enter bids on new contract work.

The company first decides where it wants to position its market offering.

Each price will lead to different level of demand and therefore have a different impact on a company's marketing objective.

Demand set a ceiling on the price the company can charge for its product.

The firm must take the competitor's costs' prices, and possible price reactions into account.

Most companies will adjust their list price and give discounts and allowances for early payment, volume purchases, and off-season buying.

Company can use several pricing techniques to stimulate early purchase.

Company can adjust the basic price to accomudate differencies in customers, products,and location.

Companies often face situations where they may need to cut or raise prices.

The Internet

The Internet will create
new winners
and bury the laggards.

Philip Kotler

Major Drivers of Information Economy

Digitalization and Connectivity
Today most appliances and systems operate with digital information, which convert text, data, sound, and images into a stream of zeros and ones that can be combined into bits and transmitted from appliance to appliance.

Dissintermediation and Reintermediation
Oly system of distribution is gradually changed by new system of distribution. The brick and mortar distribution is gradually change by online distribution.

Customization and Customerization
The new economy is supported by information businesses. Information has the advantages of being easy to differentiated, customize, personalize, and dispatch over networks at incredible speed.

Philip Kotler, Marketing Management

Public Relations Functions

Press Relation
Presenting news and information about the organization in the most positive light.

Product Publicity
Sponsoring efforts to publicize spesific products.

Comporate Communication
Promoting understanding of the organization through internal and external communications.

Lobbying
Dealing with legislator and goverment officials to promote or defeat legislation and regulation.

Counseling
Advising management about public issues and company positions and image during good times and crises.

Philip Kotler, Marketing Management

Integrated Marketing Communication

Integrated marketing

communication is a way

of looking at the whole

marketing process from

the viewpoint of the customer.

Philip Kotler

Strategic Segmentation

Useful Segmentation must:

Measurable	The size, purchasing power, and characteristic of the segment must be measurable.
Substantial	The segment are large enough and profitable enough to serve.
Accessible	The segment can be effectively reached and served.
Differentiable	The segment are conceptually distinguisable and respond effectively to different marketing-mix elements and programs.
Actionable	Effective programs can be formulated for attracting and serving segments

Philip Kotler, Marketing Management Guru

Competitive Equilibrium in Marketing

If competitors are nearly identical and make their living in the same way, then their competitive equilibrium is unstable.

If a single major factor is the critical factor, then the competitive equilibrium is unstable.

If multiple factors may be critical factors, then it is possible for each competitior to have some advantage and be differentially attractive to some customers. The more factors that may provide an advantage, the more competitors who can coexist. Competitor all have their segment, defined by the preference fro the factor trade-offs they offer.

The fewer the number of critical competitive variables, the fewer the number of competitiors.

Philip Kotler