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Summary Principles of Marketing, Global Edtion
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Summary of chapter 1 till 10 of the book of Principles of Marketing, complete with all the figures from the book.
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Summary: Principles of Marketing 18e Global Edition - Marketing (MAN-BCU2008)
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MarketingChapter 1
Objective 1-1 Define marketing and outline the steps in the marketing
process.
Marketing is engaging customers and managing profitable customer relationships.
The aim of marketing is to create value for customers in order to capture value from customers in return.
Figure 1.1 The Marketing Process: Creating and Capturing Customer Value.
Objective 1-2 Explain the importance of understanding the
marketplace and customers and identify the five core marketplace
concepts.
We examine five core customer and marketplace concepts:
1. Needs, wants, and demands
- Need: Food
- Want: Hamburger (American) / Noodles (Asian)
- Demand: products/services with most value (e.g., happy meal) (buying power)
2. Market offerings (products, services, and experiences)
- Marketing offerings = Some combination of products, services, information, or
experiences offered to a market to satisfy a need or want.
- Marketing myopia = The mistake of paying more attention to the specific products a
company offers than to the benefits and experiences produced by these products.
3. Value and satisfaction
- Set the right level of expectation, too low = not attract new customers, too high =
not satisfy customers.
4. Exchange and relationships
- Exchange = The act of obtaining a desired object from someone by offering
something in return.
5. Markets
- Market = The set of all actual and potential buyers of a product or service.
1
,Figure 1.2 A Modern Marketing System.
Objective 1-3 Identify the key elements of a customer value-driven
marketing strategy and discuss the marketing management
orientations that guide marketing strategy.
Marketing management = The art and science of choosing target markets and building profitable
relationships with them.
In order to design a winning marketing strategy two important questions, need to be answered:
- What customers will we serve? (What’s our target market)
- How can we serve these customers best? (What’s our value proposition?)
There are five alternative concepts under which organizations design and carry out their marketing
strategies:
- Production concept = The idea that consumers will favour products that are
available and highly affordable; therefore, the organization should focus on
improving production and distribution efficiency.
- Product concept = The idea that consumers will favour products that offer the most
quality, performance, and features; therefore, the organization should devote its
energy to making continuous product improvements.
- Selling concept = The idea that consumers will not buy enough of the firm’s products
unless the firm undertakes a large-scale selling and promotion effort.
- Marketing concept = A philosophy in which achieving organizational goals depends
on knowing the needs and wants of target markets and delivering the desired
satisfactions better than competitors do.
- Societal marketing concept = The idea that a company’s marketing decisions should
consider consumers’ wants, the company’s requirements, consumers’ long-run
interests, and society’s long-run interests.
2
,Figure 1.3 Selling and Marketing Concepts Contrasted.
Figure 1.4 Three Considerations Underlying the Societal Marketing Concept.
Objective 1-4 Discuss customer relationship management and identify
strategies for creating value for customers and capturing value from
customers in return.
Customer relationship management = The overall process of building and maintaining profitable
customer relationships by delivering superior customers value and satisfaction.
Customer-perceived value = The customer’s evaluation of the difference between all the benefits and all
the costs of a marketing offers relative to those of competing offers.
Customer Satisfaction = The extent to which a product’s perceived performance matches a buyer’s
expectations.
Customer-engagement marketing = Making the brand a meaningful part of consumers’ conversations
and lives by fostering direct and continuous customer involvement in shaping brand conversations,
experiences, and community.
Customer brand advocacy = Actions by which satisfied customers initiate favourable interactions with
others about a brand.
3
, Consumer-generated marketing = Brand exchanges created by consumers themselves – both invited and
uninvited – by which consumers are playing an increasing role in shaping their own brand experiences
and those of other consumers.
Partner relationship management = working closely with partners in other company departments and
outside the company to jointly bring greater value to customers.
Customer lifetime value = The value of the entire stream of purchases a customer makes over a lifetime
of patronage.
Share of customer = The portion of the customer’s purchasing that a company gets in its product
categories.
Customer equity = The total combined customer lifetime values of all the company’s customers.
Figure 1.5 Customer Relationship Groups.
Objective 1-5 Describe the major trends and forces that are changing
the marketing landscape in this age of relationships.
Internet of things (IoT) = a global environment where everything and everyone is digitally connected to
everything and everyone else.
Digital and social media marketing = Using digital marketing tools such as websites, social media, mobile
apps and ads, online video, email, and blogs to engage consumers anywhere, at any time, via their digital
devices.
4
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