Summary Principles of Marketing global edition 15th edition - Chapter 1
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Course
Marketing
Institution
Avans Hogeschool (Avans)
Book
Principles of Marketing
Summary in English of the book Principles of Marketing Philip Kotler and Gary Armstrong. The first chapter (Marketing: Creating and Capturing Customer Value) is summarized. Also pictures of different models are included.
Inhoud
Principles of Marketing ........................................................................................................................... 2
What is marketing? ............................................................................................................................. 2
Objective 1 – What Is Marketing? (pp. 26-28) .................................................................................... 2
Marketing Defined........................................................................................................................... 2
The marketing process .................................................................................................................... 2
Objective 2 – Understanding the Marketplace and Customer Needs ................................................ 3
Customer Needs, Wants and Demands........................................................................................... 3
Market Offerings – Products, Services, and Experiences ................................................................ 3
Customer Value and Satisfaction .................................................................................................... 4
Exchanges and Relationships........................................................................................................... 4
Markets............................................................................................................................................ 4
Objective 3 – Designing a Customer-Driven Marketing Strategy........................................................ 5
Selecting Customers to Serve .......................................................................................................... 5
Choosing a Value Proposition.......................................................................................................... 5
Marketing Management Orientations ............................................................................................ 6
Preparing an Integrated Marketing Plan and Program ................................................................... 8
Objective 4 – Building Customer Relationships .................................................................................. 8
Customer Relationship Management ............................................................................................. 8
The Changing Nature of Customer Relationships ........................................................................... 9
Partner Relationship Management ............................................................................................... 10
Capturing Value from Customers ...................................................................................................... 11
Creating Customer Loyalty and Retention .................................................................................... 11
Growing Share of Customer .......................................................................................................... 11
Building Customer Equity .............................................................................................................. 11
Objective 5 – Changing Marketing Landscape .................................................................................. 12
The Changing Economic Environment........................................................................................... 12
The Digital Age............................................................................................................................... 13
The Growth of Not-for-profit Marketing ....................................................................................... 13
Rapid Globalization........................................................................................................................ 13
Sustainable Marketing – The Call for More Social Responsibility ................................................. 13
So, What Is Marketing Pulling It All Together?.............................................................................. 14
,Principles of Marketing
Chapter 1 Creating and Capturing Costumer Value
What is marketing?
- Marketing is managing profitable customer relationships
- Create value for customers in order to capture value from customers in return
- Five steps in the marketing process
Amazon.com: Obsessed with creating costumer value and relationships
Objective 1 – What Is Marketing? (pp. 26-28)
- Deals with customers
- Marketing is managing profitable customer relationships
- Attract new customers by promising superior value
- Keep and grow current customers by delivering satisfaction
- Marketing is critical to the success of every organization
- Today’s marketers want to become a part of your life and enrich your experiences with their
brands
Marketing Defined
- Selling and advertising are only the tip of the marketing iceberg
- “satisfying costumer needs”
- If the marketer understands consumer needs; develops products that provide superior
customer value; and prices, distributes, and promotes them effectively, these product will
sell easily.
- The aim of marketing is to make selling unnecessary
- Selling and advertising are only part of a larger marketing mix – a set of marketing tools that
work together to satisfy customer needs and build customer relationships
- Marketing involves building profitable, value-laden exchange relationships with customers.
- Marketing The process by which companies create value for customers and build strong
customer relationships in order to capture value from customers in return
The marketing process
This figure presents a simple, five-step model of the marketing process. In the first four steps,
companies work to understand consumers, create costumer value and build strong customer
relationships. In the final step companies reap the rewards of creating superior customer value. By
creating value for consumers, they in turn capture value from consumers in the form of sales, profits
and long-term customer equity.
- Marketing in a nutshell
- By creating value for the customers, marketers capture value from customers in return
- Five-step process forms the marketing framework
, Objective 2 – Understanding the Marketplace and Customer Needs
- Marketers need to understand customer needs and wants and the marketplace in which they
operate
- Five core customer and marketplace concepts
1. Needs, wants and demands
2. Market offerings (products, services and experiences)
3. Value and satisfaction
4. Exchanges and relationships
5. Markets
Customer Needs, Wants and Demands
- Human needs are states of felt deprivation
Basic physical needs for food, clothing, warmth and safety
Social needs for belonging and affection
Individual needs for knowledge and self-expression
Marketers did not create these needs; they are a basic part of the human makeup
- Wants are the form human needs take as they are shaped by culture and individual
personality
You need food but you want a Big Mac, French fries and a soft drink
A person in a Papua, New Guinea, needs food but wants taro, rice, yams and pork.
Wants are shaped by one’s society and are described in terms of objects that will satisfy
those needs
- When backed by buying power, wants become demands Given their wants and resources,
people demand products with benefits that add up to the most value and satisfaction
- Marketing companies go to great lengths to learn about and understand their customers’
needs, wants and demands
- They conduct consumer research management and analyse mountains of consumer data
- People at all levels – including top management – stay close to customers
Market Offerings – Products, Services, and Experiences
- Consumers’ needs and wants are fulfilled through market offerings – some combination of
products, services, information, or experiences offered to a market to satisfy a need or a
want
- Market offerings are not limited to physical products
- Market offerings also include services – activities or benefits offered for sale that are
essentially intangible and do not result in ownership of anything
Examples: banking, airline, hotel, retailing and home repair services
- More broadly, market offerings also include other entities, such as persons, places,
organizations, information and ideas
Pure Michigan example: The “Pure Michigan” campaign markets the state of Michigan as tourism
destination that “lets unspoiled nature and authentic character revive your spirits.” And the “Let’s
Move” public service campaign, jointly sponsored by the U.S. Department of Agriculture and the U.S.
Department of Health & Human Services, markets the idea of reducing childhood obesity by urging
kids and their families to make healthier food choices and increase their physical activity.
- Many sellers suffer from marketing myopia they are so taken with their products that
they focus only on existing wants and lose sight of underlying customer needs
- A product is only a tool to solve a consumer problem A manufacturer of quarter-inch drill
bits may think that the customer needs a drill bit. But what the customer really needs is a
quarter-inch hole.
- Smart marketers look beyond the attributes of the products and services they sell.
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