Summary Marketing management by Kotler and Keller
15th global edition
Structure of this summary:
‘’1. Questions mentioned on the first page of each chapter (p. including page number of the book)’’
‘’1. Part of the summary copied from the summary at the end of each chapter which matches the questions above.’’
‘’Extra text supporting the question in bold and the summary beneath the question found in the book and the lectures .’’
Learning outlines provided by Wageningen University
1. Understanding marketing management: the marketing concept and holistic marketing; needs, wants
and demand; the marketing mix; market oriented strategic planning processes: corporate planning,
business unit strategic planning and the marketing plan; (chapter 1 and 2)
2. Capturing marketing insights: the marketing information system; fads, trends and mega trends in the
macro-environment; how to set-up marketing research; measuring marketing productivity; forecasting
demand; (chapter 3 and 4)
3. Connecting with customers: customer delivered value; customer relationship management; consumer
buying behavior versus organizational buying behavior; (chapter 5,6,7 and 8)
4. Building strong brands: target marketing and branding; positioning; competition; the product life cycle;
(chapter 9,10 and 11)
5. Creating value: product strategies; Services management; new product development; pricing strategies;
(chapter 12,13,14, 15 and 16)
6. Delivering value: marketing channel management; wholesaling; retailing; (chapter 17 and 18)
7. Communicating value: integrated marketing communications; advertising, sales promotion, events and
experiences, public relations and publicity, direct and interactive marketing, word-of-mouth marketing, and
personal selling. (chapter 19, 20, 21 and 22)
Marketing management tasks provided by Wageningen University
Marketing 1: Developing marketing strategies and plans (chapter 1,2)
Marketing 2: Capturing marketing insights (chapter 3, 4)
Marketing 3: Connecting with customers (chapter 5,6,7,8)
Marketing 4: Building strong brands (chapter 9,10,11)
Marketing 5 and 6: Shaping the market offerings (chapter 12,13,14,15,16)
Marketing 7: Delivering value (chapter 17,18)
Marketing 8: Communicating value (chapter 19,20,21,22)
Summary written by Elisa Bertels 2020. Elisa.bertels@gmail.com
,Chapter 1
1. Why is marketing important? (p. 25)
1. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to
customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
Marketing management is the art and science of choosing target markets and getting, keeping, and growing
customers through creating, delivering, and communicating superior customer value.
- Non-profit markets are market with customers that are non-profit organizations
2. What is the scope of marketing? (p. 27)
2. Marketers are skilled at managing demand: They seek to influence its level, timing, and composition for goods,
services, events, experiences, persons, places, properties, organizations, information, and ideas. They also operate in
four different marketplaces: consumer, business, global, and nonprofit.
- Marketing is about identifying and meeting human and social needs.
- Thus, we see marketing management as the art and science of choosing target markets and getting, keeping, and
growing customers through creating, delivering, and communicating superior customer value.
1. Goods Physical goods
2. Services airlines, hotels, car rental firms,
3. Events major trade shows, artistic performances
4. Experiences a four-day rock and roll fantasy camp, and a climb up Mount Everest
5. Persons marketing themselves
6. Places tourists, residents, factories, and company headquarters.
7. Properties They are bought and sold, and these exchanges require marketing
8. Organizations Museums, performing arts organizations, corporations, and nonprofits
9. Information books, schools, and universities produce,
10. Ideas Products and services are platforms for delivering some idea or benefit.
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 satisfied by an existing product.
4.Declining demand—Consumers begin to buy the product less frequently or not at all.
5.Irregular demand—Consumer purchases vary on a seasonal, monthly, weekly, daily, or even 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 satisfied.
8.Unwholesome demand—Consumers may be attracted to products that have undesirable social
consequences.
What are some core marketing concepts? (p. 31)
3. Marketing is not done only by the marketing department. It needs to affect every aspect of the customer experience.
To create a strong marketing organization, marketers must think like executives in other departments, and executives
in other departments must think more like marketers.
needs, wants, and demands
1.Stated needs (The customer wants an inexpensive car.)
2.Real needs (The customer wants a car whose operating cost, not initial price, is low.)
3.Unstated needs (The customer expects good service from the dealer.)
4.Delight needs (The customer would like the dealer to include an onboard GPS system.)
5.Secret needs (The customer wants friends to see him or her as a savvy consumer.)
Needs: human requirements (not urgent)
Wants: needs directed towards specific objects that satisfy needs
Demands: wants for specific products backed by an ability to pay
marketing channels: communication channels, distribution
channels and service channels
supply chain: The supply chain is a channel stretching from raw
materials to components to finished products carried to final
buyers.
competition: Competition includes all the actual and potential rival
offerings and substitutes a buyer might consider.
marketing environment: (1) The task environment includes the
actors engaged in producing, distributing, and promoting the
Summary written by Elisa Bertels 2020. Elisa.bertels@gmail.com
,offering. (2) The broad environment consists of six components: demographic environment, economic environment,
social-cultural environment, natural environment, technological environment.
4. What forces are defining the new marketing realities? (p. 35)
Technology, globalization and social responsibility
- Globalization changes innovation and product development as companies take ideas and lessons from one country
and apply them to another.
- Social responsibility: Poverty, pollution, water shortages, climate change, wars, and wealth concentration demand
our attention. The private sector is taking some responsibility for improving living conditions, and firms all over the
world have elevated the role of corporate social responsibility.
- Not explained in the book but asked in an exam question: Industry convergence represents the most fundamental
growth opportunity for organizations and will redefine industry boundaries by shifting the focus from individual
products to cross-industry value experiences, based on digital business principles. (Samsung is producing tv’s, smart
phones and computers).
5. What new capabilities have these forces given consumers and companies? (p. 38)
4. Today’s marketplace is fundamentally different as a result of major societal forces that have resulted in many new
consumer and company capabilities. In particular, technology, globalization, and social responsibility have created
new opportunities and challenges and significantly changed marketing management. Companies seek the right
balance of triedand- true methods with breakthrough new approaches to achieve marketing excellence.
- Empowerment is not just about technology, though. Consumers are willing to move to another brand if they think
they are not being treated right or do not like what they are seeing, as Progressive Insurance found out.
New consumer capabilities:
-Can use the Internet as a powerful information and purchasing aid
-Can search, communicate, and purchase on the move
-Can tap into social media to share opinions and express loyalty
-Can actively interact with companies
-Can reject marketing they find inappropriate
New company capabilities:
-Can use the Internet as a powerful information and sales channel, including for individually
differentiated goods
-Can collect fuller and richer information about markets, customers, prospects, and competitors
-Can reach customers quickly and efficiently via social media and mobile marketing, sending
targeted ads, coupons, and information
-Can improve purchasing, recruiting, training, and internal and external communications
-Can improve cost efficiency
Changing Channels:
- Retail transformation: Store-based retailers face competition.
- Disintermediation: online services
Increased competitions:
- Private labels.
- Mega-brands.
- Deregulation: laws have all been loosened in the spirit of greater competition.
- Privatization: increase their efficiency
6. What does a holistic marketing philosophy include? (p. 42)
5. There are five competing concepts under which organizations can choose to conduct their business: the production
concept, the product concept, the selling concept, the marketing concept, and the holistic marketing concept. The first
three are of limited use today.
6. The holistic marketing concept is based on the development, design, and implementation of marketing programs,
processes, and activities that recognize their breadth and interdependencies. Holistic marketing recognizes that
everything matters in marketing and that a broad, integrated perspective is often necessary. Four components of
holistic marketing are relationship marketing, integrated marketing, internal marketing, and performance marketing.
- Production concept: It holds that consumers prefer products that are widely available and inexpensive. Characterized
by mass distribution.
- The product concept proposes that consumers favor products offering the most quality, performance, or innovative
features. Focus on a better product.
- The selling concept holds that consumers and businesses, if left alone, won’t buy enough of the organization’s
products. ‘’Consumer want my product but they don't know it yet so I have to tell them’’. Works the first time, but
doesn't lasts for long (short results).
Summary written by Elisa Bertels 2020. Elisa.bertels@gmail.com
,- Marketing concept: The job is to find not the right customers
for your products, but the right products for your customers.
The holistic marketing concept is based on the development,
design, and implementation of marketing programs, processes,
and activities that recognize their breadth and
interdependencies. Everything matters in marketing.
- Internal marketing, an element of holistic marketing, is the task
of hiring, training, and motivating able employees who want to
serve customers well.
- Integrated marketing occurs when the marketer devises
marketing activities and assembles marketing programs to
create, communicate, and deliver value for consumers such
that “the whole is greater than the sum of its parts.”
- Relationship marketing aims to build mutually satisfying long-
term relationships with key constituents in order to earn and retain their business. a marketing network, consisting of
the company and its supporting stakeholders: build an effective network of relationships with key stakeholders (and
customers, employees and other marketing partners such as suppliers), and profits will follow.
- Performance marketing requires understanding the financial and nonfinancial returns to business and society from
marketing activities and programs. Both financial accountability as social accountability.
Updating the four P’s with four A’s:
1. Acceptability is the extent to which a firm’s total product offering exceeds
customer expectations.
2. Affordability is the extent to which customers in the target market are able
and willing to pay the product’s price.
3. Accessibility, the extent to which customers are able to readily acquire the
product
4. Awareness, is the extent to which customers are informed regarding the
product’s characteristics, persuaded to try it, and reminded to repurchase.
Note that we can easily relate the 4 As to the traditional 4 Ps. Marketers set the
product (which mainly influences acceptability), the price (which mainly influences affordability), the place (which
mainly influences accessibility), and promotion (which mainly influences awareness).
7. What tasks are necessary for successful marketing management? (p. 49)
7. The set of tasks necessary for successful marketing management includes developing marketing strategies and
plans, capturing marketing insights, connecting with customers, building strong brands, creating, delivering, and
communicating value, and creating long-term growth.
Chapter 2
1. How does marketing affect customer value? (p. 57)
1. The value delivery process includes choosing (or identifying), providing (or delivering), and communicating superior
value. The value chain is a tool for identifying key activities that create value and costs in a specific business.
- A company can win only by fine-tuning the value delivery process and choosing, providing, and communicating
superior value to increasingly well-informed buyers.
- Core business processes:
1. Market sensing
2. Customer relationship management
3. New-offering realization (new products faster
than competitor)
4. Fulfillment management (organizing the proces)
5. Customer acquisition (defining target markets)
- The value delivery process: marketing at the
beginning of planning. Instead of emphasizing
making and selling, companies now see
themselves as part of a value delivery process.
A) traditional physical process sequence (upper
diagram) = in line with sale organisation:
Summary written by Elisa Bertels 2020. Elisa.bertels@gmail.com
, 1. Make the product
2. Sell the product
B) value creation and delivery sequence
1. First, choosing the value is the
“homework” marketers must do before any
product exists.(strategic marketing)
2. The second phase is providing the value.
(tactical marketing)
3. The task in the third phase is
communicating the value by utilizing the
Internet, advertising, sales force, and any
other communication tools to announce and
promote the product. (tactical marketing)
- the value chain as a tool for identifying
ways to create more customer value.
- Companies today outsource less-critical resources if they can obtain better quality or lower cost.
- A core competency has three characteristics: (1) It is a source of competitive advantage and makes a significant
contribution to perceived customer benefits; (2) It has applications in a wide variety of markets; and (3) It is difficult for
competitors to imitate.
- To ensure they execute the right activities, marketers must prioritize strategic planning in three key areas: (1)
managing the businesses as an investment portfolio, (2) assessing the market’s growth rate and the company’s
position in that market, and (3) establishing a strategy. The company must develop a game plan for achieving each
business’s long-run objectives.
- Each of the 4 divisions (see below) (corporate, division, business unit and product) establish a plan. Each business
unit develops a strategic plan. Each product level develops a marketing plan.
2. How is strategic planning carried out at the corporate and divisional levels? (p. 60)
2. Strong companies develop superior capabilities in managing core business processes such as new-product
realization, inventory management, and customer acquisition and retention. In today’s marketing environment,
managing these core processes effectively means creating a marketing network in which the company works closely
with all parties in the production and distribution chain, from suppliers of raw materials to retail distributors. Companies
no longer compete—marketing networks
do.
3. Market-oriented strategic planning is
the managerial process of developing
and maintaining a viable fit between the
organization’s objectives, skills, and
resources and its changing market
opportunities. The aim of strategic
planning is to shape the company’s
businesses and products so they yield
target profits and growth. Strategic
planning takes place at four levels:
corporate, division, business unit, and
product.
- Planning activities corporate
headquarters undertake:
1.Defining the corporate mission (limited number of goals,
stress major values, define competitive spheres (industry,
geographical, vertical, market segment, competence, products,
industry) within which you will operate, long-term view, short,
memorable and meaningful)
2. Establishing strategic business units (SBU)
An SBU has three characteristics:
1.It is a single business, or a collection of related businesses, that
can be planned separately from the rest of the company.
2. It has its own set of competitors.
3. It has a manager responsible for strategic planning and profit
performance, who controls most of the factors affecting profit
Summary written by Elisa Bertels 2020. Elisa.bertels@gmail.com
