Principles of Marketing (17th edition), T. Kotler & G. Armstrong
The summary
This summary includes the following chapters:
- Chapter 1
- Chapter 2
- Chapter 3
- Chapter 5
- Chapter 6
- Chapter 7
- Chapter 18
The summary covers the exam material of the midterm for the course Marketing (EBP033A05)
at the University of Groningen, a first-year course for the program Economics & Business
Economics. It is a clear overview of the structure of each chapter, explaining concepts with a
definition and explanation. Moreover, it offers crucial thought patterns that help you answer
exam questions. In advance, some pictures from the book have been added to ensure that
important concepts can be clearly understood not only by text, but also in the form of a scheme
or table.
The author
I am a third year student of the program Economics & Business Economics at the University of
Groningen. I have a feeling for summarizing large parts of text in a structured and clear manner,
ensuring to transfer the knowledge the book offers in a more concise way. Hopefully this
summary will help many students!
1
, Chapter 1: Marketing: Creating Customer Value and Engagement
> Simply put, marketing is engaging customers and managing profitable customer relationships. The aim
of marketing is to create value for customers in order to capture value from customers in return.
Facing dramatic technological advances and deep economic, social, and environmental challenges,
today’s customers are reassessing how they engage with brands → Customer relationships and value are
especially important today
- Marketing = engaging customers and managing profitable customer relationships.
= The process by which companies engage customers, build strong customer
relationships, and create customer value in order to capture value from customers in
return.
- Two-fold goal: to attract new customers by promising superior value and to keep and
grow current customers by delivering value and satisfaction.
- Evolution of marketing: today’s marketers want to become a part of your life and enrich
your experiences with their brands. They want to help you live their brands.
- Is not just selling & advertising → also: satisfying customer needs. Selling and advertising
are only part of a larger marketing mix—a set of marketing tools that work together to
engage customers, satisfy customer needs, and build customer relationships.
By creating value for c onsumers, they in turn capture value from consumers in the form of sales, profits,
and long-term customer equity.
(1) Step 1: marketers need to understand customer needs and wants and the marketplace in which they
operate.
5 core customer and marketplace concepts:
1. needs, wants, and demands
- Needs = states of felt deprivation (physical, social, individual)
- Wants = The form human needs take as they are shaped by culture and individual personality
(described in terms of objects)
- Demands = Human wants that are backed by buying power.
2. market offerings ( products, services, and experiences);
- Market offerings = Some combination of products, services, information, or experiences offered
to a market to satisfy a need or want.
- Many sellers suffer from marketing myopia = The mistake of paying more attention to the
specific products a company offers than to the benefits and experiences produced by these
products.
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