Marketing Management, Millenium Edition Philip Kotler Custom Edition for University of Phoenix Excerpts taken from: AFramework for Marketing Management , by Philip Kotler Copyright2001by Prentice-Hall, Inc. APearson Education Company Upper Saddle River, New Jersey07458 Marketing Management Millenium Edition , Tenth Edition, by Philip Kotler Copyright2000 by Prentice-Hall, Inc. All rights reserved.No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Compilation Copyright2002 by Pearson Custom Publishing. This copyright covers material written expressly for this volume by the editor/s as well as the compilation itself. It does not cover the individual selections herein that first appeared elsewhere. Permission to reprint these has been obtained by Pearson Custom Publishing for this edition only. Further reproduction by any means, electron- ic or mechanical, including photocopying and recording, or by any information stor- age or retrieval system, must be arranged with the individual copyright holders noted. This special edition published in cooperation with Pearson Custom Publishing Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 Please visit our web site at www.pearsoncustom ISBN 0–536–63099-2 BA993095 PEARSON CUSTOM PUBLISHING 75 Arlington Street,Suite 300,Boston,MA 02116 A Pearson Education Company SECTION ONE C hange is occurring at an accelerating rate; today is not like yesterday, and tomor- row will be different from today. Continuing today’s strategy is risky; so is turning to a new strategy. Therefore, tomorrow’s successful companies will have to heed three certainties: Global forces will continue to affect everyone’s business and personal life. Technology will continue to advance and amaze us. There will be a continuing push toward deregulation of the economic sector. These three developments—globalization, technological advances, and deregula- tion—spell endless opportunities. But what is marketing and what does it have to do with these issues Marketing deals with identifying and meeting human and social needs. One of the shortest denitions of marketing is “meeting needs protably.” Whether the mar- keter is Procter & Gamble, which notices that people feel overweight and want tasty but less fatty food and invents Olestra; or CarMax, which notes that people want more certainty when they buy a used automobile and invents a new system for selling used cars; or IKEA, which notices that people want good furniture at a substantially lower price and creates knock-down furniture—all illustrate a drive to turn a private or social need into a protable business opportunity through marketing. MARKETING TASKS A recent book, Radical Marketing, praises companies such as Harley-Davidson for suc- ceeding by breaking all of the rules of marketing.1Instead of commissioning expensive marketing research, spending huge sums on advertising, and operating large market-Marketing in the Twenty-First Century We will address the following questions: ■What are the tasks of marketing ■What are the major concepts and tools of marketing ■What orientations do companies exhibit in the marketplace ■How are companies and marketers responding to the new challenges Understanding Marketing Management