Summary of chapters 1-3, 5-12, 14-16, 18 & 19 from Principles of Marketing by Kotler & Armstrong. Covers all material needed for the final exam of the course Marketing for E&BE in the programme Economics & Business Economics at the University of Groningen.
,Ch 1, 2, 3. Introduction into Marketing & the External Environment
Marketing
Engaging customers by creating value for them and building strong relationships with them in order
to capture value from them in return
Wants
Desires shaped by culture and personality that will satisfy needs
Need: food
- American: Big Mac, fries, soft drink
- Papua New Guinean: taro, rice, yams, pork
Demands
Wants backed by buying power
Market
Set of actual and potential buyers of a market offering (product, service, information or experience
offered to satisfy needs or wants)
Marketing myopia
Focus on the product itself (existing want) rather than its benefits and experiences (underlying need)
Modern marketing system
Marketing management
Choosing target markets (what customers will we serve?) and building profitable relationships with
them (what is our value proposition?)
,Marketing strategies
Logic by which the company hopes to create customer value and achieve profitable customer
relationships
Production concept
Consumers will favor products that are available and highly affordable
Product concept
Consumers will favor products that offer the most quality, performance, and innovative
features. Focus on making continuous product improvements
Selling concept
Consumers will not buy enough of the firm’s products unless it undertakes a large scale
selling and promotion effort. Focus on selling what the company makes rather than what the
market wants
Marketing concept
Knowing the needs and wants of the target markets and delivering desired satisfactions
better than competitors do. Focus on customers and value
Societal concept
Considering consumers’ short-run wants, the company’s requirements and the long-run
interests and well-being of consumers and society
Product vs market orientation
Impacts who you see as competitors an thus how you should market
, Integrated marketing program
Comprehensive plan that communicates and delivers intended value to customers
Customer relationship management
Building and maintaining profitable customer relationships by delivering superior customer value
and satisfaction
Creating value for customers
Customer satisfaction
Match between expected and perceived value. Dissatisfaction, satisfaction or delight
Customer-expected value
Before purchase. Expectation of benefits and costs compared to competition
Customer-perceived value
After purchase. Difference between costs and total customer perceived benefits
Customer-engagement
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
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 equity
Total combined customer lifetime values of all the company’s current and potential customers
Customer relationship groups
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