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Marketing: summary Kotler&Keller Chpt. 1-4
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This is a English summary of the chapters 1-4 of the Kotler and Keller book 'Marketing Managment'.
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TEST BANK FOR MARKETING MANAGEMENT, 15TH EDITION BY PHILIP KOTLER
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TEST BANK FOR MARKETING MANAGEMENT, 15TH EDITION BY PHILIP KOTLER
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TEST BANK FOR MARKETING MANAGEMENT, 15TH EDITION BY PHILIP KOTLER
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Chapter 1Marketing helps introduce new or enhanced products that ease or enrich
people’s lives. Successful marketing builds demand for products and services
which creates jobs. Firms must constantly move forward.
Marketing: is about identifying and meeting human and social needs. Meeting
needs proftably. American marketing association defnition: marketing is the
activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging oferings that have value for customers, clients,
partners and society at large. Marketing management: the art and science of
choosing target markets and getting, keeping, and growing customers through
creating, delivering, and communicating superior customer value.
Social defnition: shows role marketing plays in society: marketing is a societal
process by which individuals and groups obtain what they need and want
through creating, ofering, and freely exchanging products and services of value
with others. Marketing is more than just selling.
Marketers market 10 main types of entities:
1. Goods: physical goods constitute the bulk of most countries’ production
and marketing eforts.
2. Services: as economies advance, growing proportion of their activities
focuses on production of services.
3. Events: marketers promote time-based events.
4. Experiences: by orchestrating several services and goods, a frm creates,
stage, and market experiences.
5. Persons: professionals often get help from marketers.
6. Places:
7. Properties: properties are intangible rights of ownership to either real
property or fnancial property. Are bought and sold, and these exchanges
require marketing.
8. Organizations: museums performing arts organization etc. all use
marketing to boost their public images and compete for audiences and
funds.
9. Information: information is essentially what books, schools and
universities produce, market and disturbed at a price to parents students
and communities.
10.Ideas: every market ofering includes a basic idea.
Marketer: is someone who seeks a response from another party called the
prospect. If two partier are seeking to sell something to each other we call
them both marketers.
Marketers are skilled at stimulating demand for their products. 8 demand states
are possible:
1. Negative demand: consumers dislike the product and may even pay to
avoid it.
2. Nonexistent demand: consumers may be unaware of or uninterested in
the product.
3. Latent demand: consumers may share a strong need that cannot be
satisfed by an existing product.
4. Declining demand: consumer begin to buy the product less frequently
or not at all
5. Irregular demand: consumer purchases vary on a seasonal, monthly,
weekly, daily or hourly basis.
6. Full demand: consumers are adequately buying all products put into the
marketplace.
, 7. Overfull demand: more consumers would like to buy the product than
can be satisfed.
8. Unwholesome demand: consumers may be attracted to products that
have undesirable social consequences.
In each case, marketers must identify the underlying cause of the demand state
and determine a plan of action to shift demand to a more desired state.
Market: a collection of buyers and sellers who transact over a particular
product or product class.
Each nation’s economy, and the global economy consist of interacting sets of
markets linked through exchange processes. Marketers view sellers as the
industry and customer groups as market.
Key customer markets:
- Consumer markets: companies selling mass consumer goods and
services.
- Business markets: companies selling business goods and services often
face well informed professional buyers skilled at evaluating competitive
oferings.
- Global markets: companies in the global marketplace navigate cultural
language, legal and political diferences while deciding which countries to
enter ho to enter each how to adapt product and service features to each
country, how to set prices, how to communicate in diferent cultures.
- Nonprofit and governmental markets: companies selling to nonproft
organizations with limited purchasing power.
Needs: basic human requirements. Needs become wants when directed to
specifc objects that might satisfy the need.
Demand: are wants for specifc products backed by an ability to pay.
5 types of needs:
1. Stated needs
2. Real needs
3. Unstated needs
4. Delight needs
5. Secret needs
For each of these target markets the frm develops a market ofering that is
position in target buyers’ minds as delivering some key benefts.
Companies address customer needs by putting forth a value proposition: set of
benefts that satisfy those needs.
For each of the target markets, the frm develops a market ofering that it
positions in target buyers’ minds as delivering some key benefts.
Companies address customer needs by putting forth a value proposition: set of
benefts that satisfy those needs. Value proposition is made physical by an
ofering which can be a combination of products services information and
experiences.
To reach target market. 3 kinds of marketing channels: communication channels
deliver and receive messages from target buyers. Distribution channels help
display, sell or deliver the physical product or service to the buyer or user. To
carry out transactions with potential buyers the marketers uses service
channels.
,3 categories of communication options: paid media (TV, magazines etc.), all of
which allow marketers to show their ad or brand for a fee. Owned media are
communication channels marketers actually own. Earned media are streams in
which consumers, the press, or other outsiders voluntarily communicate
something about the brand via word of mouth, buzz or viral marketing methods.
Impressions which occur when consumers view a communication are a useful
metric for tracking the scope or breadth of a communication’s reach that can
also be compared across all communication types. Downside: don’t provide any
insight into the result of viewing the communication.
Engagement is the extent of a customer’s attention and active involvement with
a communication. Refects an active response and creates value for the frm.
Value: the sum of the tangible and intangible benefts and cost. Combination of
quality, service, and price: customer value triad. Satisfaction refects a person’s
judgement of a product’s perceived performance in relationship to expectations.
Supply chain is channel stretching from raw materials to components to fnished
products carried to fnal buyers.
Competition includes all the actual and potential rival oferings and substitutes a
buyer might consider.
Marketing environment consist of the task environment and the broad
environment. Task environment includes the actors engaged in producing
distributing and promoting the ofering. These are the company suppliers
distributors dealers and target customers. Broad environment consists of six
components: demographic, environment, economic environment, social-cultural
environment, natural environment, technological environment and political-legal
environment.
The new marketing realities
Marketing’s efects extend to society as a whole, marketers must consider the
ethical, environmental, legal and social context of their activities. Technology,
globalization and social responsibility have changed the marketplace.
New consumer capabilities:
- Consumers can use the internet as a powerful information and purchasing
aid.
- Consumers can search, communicate, and purchase on the move.
- Consumers can tap into social media to share opinions and express
loyalty.
- Consumers can actively interact with companies.
- Consumers can reject marketing they fnd inappropriate.
New capabilities for companies:
- Companies can use the internet as a powerful information and sales
channel, including for individually diferentiated goods.
- Companies can collect fuller and richer information about markets,
customers, prospects and competitors.
- Companies can reach consumers quickly and eficiently via social media
and mobile marketing sending targeted ads., coupons and information
- Companies can improve purchasing recruiting training and internal and
external communications.
- Companies can improve their cost eficiency.
Channels of distribution have changed as result of retail transformation and
disintermediation.
, - Retail transformation: store based retailers face competition from
catalog houses etc.
- Disintermediation: early webstores successfully created
disintermediation in the delivery of products and services by intervening
in the traditional fow of goods. Traditional stores added online services.
Rise of private labels and mega brands and a trend toward deregulation and
privatization have also increased competition.
- Private labels: brand manufactures are further bufeted by powerful
retailers that market their own store brands increasingly
indistinguishable from any other type of brand.
- Mega brands: brands that have extended into related products
categories including new opportunities at the intersection of two or more
industries.
- Deregulation: many countries have deregulated industries to create
greater competition and growth opportunities.
- Privatization: many countries have converted public companies to
private ownership and management to increase their eficiency.
Marketing in practice
Marketers are increasingly asked to justify their investments in fnancial and
proftability terms.
The production concept holds that consumers prefer products that are widely
available and inexpensive.
Product concept: consumers favor products ofering the most quality,
performance or innovative features.
Selling concept: consumers and businesses won’t buy enough of the
organization’s products. And when frms with overcapacity aim to sell what they
make, rather than make what the market wants.
Marketing concept: customer-centered. Sense and respond phyllophyte. To
fnd not the right customers for your products but the right products for your
customers. The key to achieving organizational goals is being more efective
than competitors in creating, delivering and communicating superior customer
value to your target markets.
Holistic marketing: concept based on development, design, implementation of
marketing programs, processes and activities that recognize their breadth and
interdependencies. Acknowledges that everything matters in marketing.
Relationship marketing: aims to build mutually satisfying long term
relationships with key constituents in order to earn and retain their business. 4
key constituents for relationship marketing: customers, employees, marketing
partners and members of the fnancial community. Ultimate outcome is an
unique company asset called marketing network.
Integrated marketing: occurs when the marketer devises marketing activities
and assembles marketing programs to create communicate and deliver value for
consumers . 2 themes: many diferent marketing activities can create
communicate and deliver value and marketers should design and implement any
one marketing activity with all other activities in mind.
Internal marketing: element of holistic marketing: task of hiring training and
motivating able employees who want to serve customers well. Marketing
succeeds only when all departments work together to achieve customer goals.
Performance marketing: requires understanding the fnancial and
nonfnancial returns to business and society from marketing activities and
programs.
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