THE FUTURE OF

PHILIP KOTLER, Ph.D MAY 28, 2014 KELLOGG SCHOOL OF MANAGEMENT NEW YORK CITY MY BACKGROUND

1950-53 University of

1953-56 & MIT THE FORD FOUNDATION PROGRAM, 1960

Frank Bass, Robert Buzzell, William Lazer Jerry McCarthy and Ed Pessemier (not pictured) PROBLEMS WITH ECONOMIC THEORY

• Classical economic theory focuses on price. It fails to take into account major forces that affect behavior and market institutions, namely the impact of marketing channels, , force, and on demand and supply.

• Classical economic theory assumes rational maximizing behavior on the part of consumers, middlemen, and producers.

• The new is now called behavioral economics. The Nobel Prize in Economic Science recognized Kahneman and Tversky, two psychologists, for their work on economic irrationality. Behavioral economics is another word for Marketing! For 100 years marketers have been enriching economic theory without gaining any recognition from economists. EARLY KOTLER MARKETING BOOKS

1. 1967. Based on economic theory, social-psychology theory, organizational theory, and mathematical theory.

2. Marketing Decision Making 1971. Sales response theory, carryover effects, multiple territories, multiple products, joint marketing and production planning, multiple goals, uncertainty. THE BROADENING OF MARKETING

• Commercial marketing

• Place marketing

• Person marketing

•

• Political marketing MARKETING FOR NONPROFIT ORGANIZATIONS

Professor Alan Andreasen Georgetown University SOCIAL MARKETING

Jerry Zaltman Nancy Lee CORPORATE SOCIAL RESPONSIBILITY VALUES-BASED MATRIX (VBM) MODEL

INDIVIDUAL COMPANY Mind Heart Spirit

Deliver Realize Practise

SATISFACTION ASPIRATION COMPASSION

(Why) MISSION

Profit Ability Return Ability Sustain Ability

(What) VISION

Make a Be BETTER DIFFERENTIATE

DIFFERENCE

(How) VALUES VALUES-BASED MATRIX OF S.C. JOHNSON THE EVOLUTION OF MARKETING CONCEPTS

2000s 1990s 1980s 1970s 1960s 1950s FINANCIALLY-DRIVEN ONE-TO-ONE UNCERTAIN TURBULENT • ROMI Marketing POSTWAR SOARING • Brand Equity Marketing • Emotional Marketing • Customer Equity Marketing • Marketing Warfare • Experiential • Social Responsibility • Targeting • The Four Ps • Marketing Marketing • The • Positioning • Marketing Myopia • Local Marketing • Internet and e- • Consumer Empowerment • Product Life Cycle • Strategic Marketing business Marketing • Lifestyle • Mega-marketing • Social Media Marketing • Brand Image • Service Marketing Marketing • Direct Marketing • Sponsorship • Tribalism • Market • Social Marketing Marketing Segmentation • The Broadened • Customer • Authenticity Marketing Concept of • Societal Marketing Relationship • Marketing Ethics • The Marketing • Co-creation Marketing Marketing • Macro-marketing Marketing Concept • Crowdsourcing Marketing • Internal Marketing • The Marketing Audit THE PROBLEM: PROFITABLE GROWTH “THIS TIME LIKE ALL TIMES IS A GOOD ONE, IF WE BUT KNOW WHAT TO DO WITH IT.” RALPH WALDO EMERSON