The "Father of Modern Marketing" says there are 5 levels to a certain product or service. On which level are you?
Let’s start this day with our daily dose of inspiration from the “Marketing Marvels”―outstanding people in the field of marketing, communications, business, etc. Each Monday, we highlight these people and their exceptional experiences because we believe it’s good for us to gain motivation from them by learning about their work and insights. Today, we’ll talk about the “Father of Modern Marketing.” Keep reading to know more about this Marvel’s take on marketing as an academic field of study in today’s business landscape.
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The "Father of Modern Marketing" says there are 5 levels to a certain product or service. On which level are you? Philip Kotler: The Father of Modern Marketing Some people earn the “Father” titles in their respective industries because they pioneered a specific idea that made a significant impact in their field of expertise. Examples: Chuck Berry became the “Father of Rock ‘n Roll” for creating a new music genre that spoke to the younger generation. George Washington became the “Father of the United States of America” because of the great role he played in commanding the Continental Army during the American Revolution, leading the convention that wrote the US Constitution, and serving as the country’s first president. Peter Drucker became the “Father of Modern Management” because of his numerous books and articles on innovation, entrepreneurship, and strategies for dealing with an ever-changing world. Let’s think about these titles in the field of marketing. Are you aware who the “Father of Modern Marketing” is? It’s none other than… Philip Kotler!
Kotler is a marketing author, consultant, and Distinguished Professor of International Marketing at the Kellogg School of Management in Northwestern University. He is the author of more than 80 books, including:
He is known for popularizing the definition of Marketing Mix and for describing strategic marketing as “the link between society’s needs and its patterns of industrial response.” He LITERALLY wrote the book on marketing and pushed for it to become a discipline in the 1960s. He also saw how important this business aspect was and worked to make marketing a major course and part of MBA programs at different universities. Marketing as an Academic Field of Study One of Kotler’s contributions in the marketing industry is creating the field of social marketing, which focuses on helping individuals and groups modify their behaviors towards healthier and safer lifestyles. He also pioneered the concept of demarketing to aid in reducing the level of demand from consumers. These are why many scholars regarded him as the “Father of Modern Marketing.” Many of his principles delved into consumer behavior―why people think a certain way and how business owners and marketers should listen to their target market. For him, no product or service can be profitable unless it sells… and the only way it would sell is if it satisfies customers’ needs, wants, and demands. In Kotler’s words, “Customers will choose a product based on their perceived value of it. Satisfaction is the degree to which the actual use of a product matches the perceived value at the time of the purchase. A customer is satisfied only if the actual value is the same or exceeds the perceived value.” Kotler’s marketing concept attributes five levels to a certain product or service. He calls this the Five Product Level business model:
The Five Product Level provides business owners and marketers with an effective method for structuring their product or service portfolios to target various customer segments. Additionally, this enables them to analyze customer profitability more effectively. By organizing offerings according to this business model, operational processes such as design and engineering, procurement, production planning, costing and pricing, logistics, and sales and marketing will be aligned with customers’ needs and wants. The result? Higher profitability and an increase in customers’ satisfaction and loyalty towards your brand! — Consumer behavior. Marketing management. Strategic planning. Leadership. Organizational behavior. Psychology. Almost all things that make consumers act on a certain call-to-action tie back to the principles Kotler wrote and taught about. Because of these principles and his other insights, a lot of business builders and marketers are able to get better results from their marketing strategies and establish stronger connections with their target market. *Applause* The main takeaway you can get from Kotler’s contributions in the industry? Customers are an integral part of a business. Without them, brands and enterprises won’t thrive for a long period of time. That’s why as a business owner or marketer, you have to know how to determine the needs and wants of your customers and address those things effectively and efficiently. These actions will enable you to appeal to your target market and earn their trust. May Kotler’s teaching inspire you to do your marketing strategies more excellently! By getting back to the roots of marketing a.k.a. identifying your target market and understanding them, you’ll create compelling marketing techniques and deliver high-quality products and services to your customers. “A good company offers excellent products and services. A great company also offers excellent products and services but also strives to make the world a better place.” Hope you’ve found this week’s insights interesting and helpful. Follow us on LinkedIn. Stay tuned for next Monday’s Marketing Marvels! Tony The Tiger. Learn more about Leo Burnett and his contributions to the Marketing industry on next week’s Marketing Marvels! |
