Hey everyone, this is my summary of the book Principles of Marketing the 17th (global edition) by Kotler. It includes chapter 1,2,3,5,7,18 (I followed the exam material from my university). All information is from the book and images contain sources. I hope that I can broaden your knowledge of the ...
, Principles of Marketing (17th) Global Edition Summary
Information beforehand
About the Author
Ian Matthew Sollie is a, Dutch, first-year student at The Hague University of Applied Sciences at The
Hague, the Netherlands. He studies International Business and Managements Studies (IBMS) and has
always had a feeling for summarizing and keeping structure in recapitulating. By sharing this he
hopes that he can broaden your knowledge about The Principles of Marketing.
Please note that the author is not a native English speaker. In advance, the writer apologizes for any
spelling, grammar, or sentence structure mistake that has been made.
Structure of the Summary
The summarized text is based on the exam material for Test Period One of the IBMS-programme
from THUAS. Therefore, the pages of The Principles of Marketing that the author has used from the
book are indicated at the beginning of each chapter.
Since the exam material is divided into Learning Objectives (LO), the summary is divided into LOs as
well. Beware: due to following the exam material, not every Learning Objective has been adopted.
All the content comes from the book except for the images. Sources that have been used for these
have been added under the image. Check the sources; some of them can give extra information on
certain topics. Besides that, feel free to look up anything if difficulties occur.
Writing Style
Written in Italic: examples/illustrations
Written in Bold + colour of heading: concepts
! Written in Bold + Italic + colour of heading + exclamation points: important sentence !
(= also known as)
à Followed by explanation or examples (not italic)
=> What happens next / what they do / definition
Option 1 / on this side à …
V.S.
Option 2 / on that side à …
There are no points after a sentence à this is because of the author’s summary style
WARNING: this summary does not guarantee a 100/100
SOLLIE, I.M. 2
, Principles of Marketing (17th) Global Edition Summary
CHAPTER 1:
Marketing
Pages in book: 28-33; 34-35; 38-42; 44-45
SOLLIE, I.M. 3
, Principles of Marketing (17th) Global Edition Summary
LO 1.1: What is Marketing?
Marketing = engaging customers and managing profitable customer relationships:
Ø Attract new customers à via superior value
Ø Keep customers à via value + satisfaction
Marketing Defined
Marketing à satisfy the customer needs => understand those needs => products will sell easily
The main goal of Marketing:
Create customer value to capture the value in return
The Marketing Process
This is the Marketing Process to
create and capture customer value.
Take a look.
Source: mahabubhasan.wordpress.com
SOLLIE, I.M. 4
, Principles of Marketing (17th) Global Edition Summary
LO 1.2: Marketplace and Customer Needs
Customer Needs, Wants, and Demands
Needs = states of felt deprivation:
Ø Physical à food, clothing, warmth, and safety;
Ø Social à belonging and affection;
Ø Individual à knowledge and self-expression
Wants = the form the needs take
I.e. a person needs food but wants a Big Mac, fries, and a soft drink
Demands = wants that are backed by buying power (= purchasing power)
Market Offerings – Products, Services and Experiences
Needs and wants à satisfied through market offerings:
Ø Products/services/experiences
Ø Information
Ø Persons
Ø Places
Ø Organizations
=> Some sellers pay more attention to specific products instead of the benefits and experiences
produced by these products => marketing myopia
Customer Value and Satisfaction
Satisfied customers à buy again + tell others about good experience
V.S.
Dissatisfied customers à switch to competitors + tell others about bad experience
=> Marketers should set the right level of expectations to satisfy enough buyers
Exchanges, Relationships and Markets
Exchange = obtaining a desired object by offering something in return
I.e. you go into a restaurant and order your favourite meal. You eat the food and then you pay for it
with your credit card.
=> Marketers want to grow desirable exchange relationships with target audiences involving goods
Exchange relationships:
Ø Create a market à set of actual & potential buyers of products/services)
Ø Needs/wants can be satisfied
Modern Marketing System
In short: suppliers deliver products to company and
competitors à company/competitors deliver to
marketing intermediaries (e.g. retail stores) à these
intermediaries deliver it to the customers à
relationship have been created/improved between
customers and companies.
Source: mahabubhasan.wordpress.com
SOLLIE, I.M. 5
, Principles of Marketing (17th) Global Edition Summary
LO 1.3: Designing Customer Value – Driven
Marketing Strategy and Plan
Customer Value – Driven Marketing Strategy
Fully understand customers and marketplace
=> Marketing management à design customer value – driven marketing strategy
à art and science of choosing target market and building relationships
Design a winning Marketing Strategy:
1. What’s our target market?
Divided the market into segments (= market segmentation) => choose the one we want to go
after (= target market)
! it is not possible to serve all customers in every way !
2. What is our value proposition?
Value proposition à set of benefits or values that the company promises to deliver (a slogan)
=> differentiate and positon in the marketplace
I.e. Apple claims: “light years ahead”
The Societal Marketing Concept
Questions whether marketing concept neglects
conflicts between short-run wants and long-
run welfare
=> Marketing strategy should deliver value to
customers => maintain/improve consumer’s
and society’s well-being
=> Calls for sustainable and responsible
marketing
Source: relivingmbadays.wordpress.com
SOLLIE, I.M. 6
, Principles of Marketing (17th) Global Edition Summary
LO 1.4: Managing Customer relationships and
Capturing Customer Value
Engaging Customers and Managing Customer Relationships
Customer Relationship Management = building/maintaining relationships by delivering superior
customer value and satisfaction
Relationship Building Blocks:
Customer-perceived value à customer’s evaluation of difference between benefits and costs of
offerings relative to the competitive offers (perceived = the way they
V.S. see it) => these values differentiate per person
Customer satisfaction à depends on perceived performance relative to the buyer’s expectations =>
higher levels => greater customer loyalty => better company performance
Customer Relationship Levels and Tools
Company with low-margin à basic relationships
Company with high-margin à full partnerships
Tools for developing stronger bonds:
Ø Frequency marketing programs à reward customers who buy frequently/in large amounts
Ø Customer-engagement Marketing à make the brand a meaningful part of their lives
=> Consumer-generated Marketing = consumers plat role in shaping experiences
=> Customer-managed relationships => customers connect with companies and help plot and share
their brand experiences
! Marketing by attraction – engage the consumers rather than interrupt them !
Capturing Value from Customers
1. Satisfied customers are loyal => spend more
and stay around longer => customer lifetime
value
2. Customer relationship management => increase
share of customer (= customer purchasing
portion that a company gets in its product
categories)
3. Produce high customer equity = total
combined customer lifetime values of all
company’s customers
Source: slideplayer.com/slide/6813787/
SOLLIE, I.M. 7
, Principles of Marketing (17th) Global Edition Summary
LO 1.5: The Changing Marketing Landscape
This Learning Object will not be summarized due to that it is not exam material for IBMS at
THUAS
SOLLIE, I.M. 8
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