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Summary Principles of Marketing
A summary based on the book of Principles of Marketing.
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Table of contentsChapter 1....................................................................................................................................................... 5
Understanding the marketplace and costumer needs.........................................................................................5
Needs, want and demands..............................................................................................................................5
Market offering – products, services and experiences...................................................................................5
Customer value and satisfaction.....................................................................................................................5
Exchanges and relationship.............................................................................................................................6
Markets............................................................................................................................................................6
Designing a customer value-driven marketing strategy......................................................................................6
Selecting customers to serve...........................................................................................................................7
Choosing a value proposition..........................................................................................................................7
Marketing management orientations.............................................................................................................7
Preparing an integrated marketing plan and programme...................................................................................9
Building customer relationships.........................................................................................................................10
Customer relationship management.............................................................................................................10
Partner relationship management................................................................................................................11
Capturing value from customers........................................................................................................................11
Creating customer loyalty and retention......................................................................................................11
Growing share of customer...........................................................................................................................12
Building customer equity...............................................................................................................................12
The changing marketing landscape....................................................................................................................12
Chapter 2..................................................................................................................................................... 13
Company-wide strategic planning: defining marketing’s role...........................................................................13
Defining a market-oriented mission..............................................................................................................14
Setting company objectives and goals...........................................................................................................14
Designing the business portfolio...................................................................................................................15
Planning marketing: partnering to build customer relationships......................................................................17
Partnering with other company departments..............................................................................................17
Partnering with others in the marketing system...........................................................................................17
Marketing strategy and the marketing mix.......................................................................................................19
Customer value-driven marketing strategy...................................................................................................19
Developing an integrated marketing mix......................................................................................................20
Managing the marketing effort..........................................................................................................................21
Marketing analysis.........................................................................................................................................22
Marketing planning........................................................................................................................................22
Marketing implementation............................................................................................................................23
Marketing control..........................................................................................................................................23
Measuring and managing marketing return on investment..............................................................................23
Chapter 3..................................................................................................................................................... 24
microenvironment:.............................................................................................................................................25
The company.................................................................................................................................................25
Suppliers........................................................................................................................................................25
Marketing intermediaries..............................................................................................................................25
Competitors...................................................................................................................................................25
Publics............................................................................................................................................................25
Customer.......................................................................................................................................................26
1
, Macroenvironment:............................................................................................................................................26
Demographic environment............................................................................................................................27
Economic environment..................................................................................................................................27
Natural environment.....................................................................................................................................27
Technological environment...........................................................................................................................27
Political/social environment..........................................................................................................................27
Cultural environment.....................................................................................................................................28
Chapter 5..................................................................................................................................................... 28
Model of consumer behaviour............................................................................................................................28
Characteristics affecting consumer behaviour...................................................................................................29
Cultural factors..............................................................................................................................................29
Social factors..................................................................................................................................................30
Personal factors.............................................................................................................................................30
Psychological factors.....................................................................................................................................30
Types of buying decision behaviour....................................................................................................................31
Complex buying behaviour............................................................................................................................31
dissonance-reducing buying behaviour.........................................................................................................31
Habitual buying behaviour............................................................................................................................31
Variety-seeking behaviour.............................................................................................................................31
The buyer decision process.................................................................................................................................32
The buyer decision process for new products.....................................................................................................32
Stages in the adoption process......................................................................................................................32
Chapter 6..................................................................................................................................................... 33
Business markets................................................................................................................................................33
Market structure and demand......................................................................................................................33
Types of decisions and the decision process.................................................................................................34
Business buyer behaviour...................................................................................................................................34
Major types of buying situations...................................................................................................................34
Participant in the business buying process...................................................................................................34
Major infuences on business buyers.............................................................................................................35
The business buying process.........................................................................................................................36
E-procurement and online purchasing..........................................................................................................37
Institutional and government markets...............................................................................................................37
Institutional markets......................................................................................................................................37
Government markets.....................................................................................................................................37
Chapter 7.................................................................................................................................................... 38
Market segmentation.........................................................................................................................................38
Segmenting consumer markets.....................................................................................................................38
Segmenting business markets.......................................................................................................................39
Segmenting international markets................................................................................................................39
Requirements for effective segmentation.....................................................................................................40
Market targeting................................................................................................................................................40
Evaluating market segments.........................................................................................................................40
Selecting target market segments.................................................................................................................40
Differentiation and positioning...........................................................................................................................42
Positioning maps............................................................................................................................................42
Chapter 8..................................................................................................................................................... 44
2
, What is a product?.............................................................................................................................................44
Products, services and experiences...............................................................................................................44
Levels of product and services.......................................................................................................................45
Product and service classifications................................................................................................................45
Product and service decisions.............................................................................................................................47
Individual product and service decisions...................................................................................................... 47
Product line decisions....................................................................................................................................49
Product mix decisions....................................................................................................................................49
Services marketing..............................................................................................................................................50
The nature and characteristics of a service...................................................................................................50
Marketing strategies for service firms...........................................................................................................50
Branding strategy: building strong brands.........................................................................................................51
Brand equity..................................................................................................................................................51
Building strong brands...................................................................................................................................51
Chapter 9..................................................................................................................................................... 53
New product development strategy...................................................................................................................53
Chapter 10................................................................................................................................................... 53
What is a price....................................................................................................................................................53
Major pricing strategies.....................................................................................................................................53
Customer value-based pricing.......................................................................................................................53
Chapter 11................................................................................................................................................... 54
New product pricing strategies..........................................................................................................................54
Market-skimming...........................................................................................................................................54
Market-penetration pricing...........................................................................................................................54
Product mix pricing strategies............................................................................................................................54
Product line pricing........................................................................................................................................54
Optional-product pricing...............................................................................................................................54
Captive-product pricing.................................................................................................................................54
By-product pricing.........................................................................................................................................55
Product bundle pricing..................................................................................................................................55
Price adjustment strategies................................................................................................................................55
Segmented pricing.........................................................................................................................................55
Psychological pricing......................................................................................................................................55
Promotional pricing.......................................................................................................................................55
Dynamic pricing.............................................................................................................................................55
International pricing......................................................................................................................................55
Price changes......................................................................................................................................................56
Responding to price changes.........................................................................................................................56
Chapter 12................................................................................................................................................... 56
The nature and importance of marketing channels...........................................................................................57
How channel member add value...................................................................................................................57
Number of channel levels..............................................................................................................................57
Channel behaviour and organisation.................................................................................................................57
Vertical marketing systems............................................................................................................................57
Chapter 13................................................................................................................................................... 58
3
, Chapter 14................................................................................................................................................... 59
Chapter 18................................................................................................................................................... 59
Competitor analysis............................................................................................................................................59
Identifying competitors.................................................................................................................................60
Assessing competitors...................................................................................................................................60
Selecting competitors to attack and avoid....................................................................................................61
Designing a competitive intelligence system................................................................................................62
Competitive strategies........................................................................................................................................62
Approaches to marketing strategy................................................................................................................63
Basic competitive strategies..........................................................................................................................63
Competitive positions....................................................................................................................................64
Market leader strategies...............................................................................................................................64
Market challenger strategies.........................................................................................................................65
Market follower strategies............................................................................................................................65
Market nicher strategies................................................................................................................................66
Balancing customer and competitor orientations..............................................................................................66
Chapter 19................................................................................................................................................... 67
Chapter 20................................................................................................................................................... 68
4
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