Principles of Marketing, 6th European edition, Philip Kotler
Chapter 1 Marketing: creating value and capturing customer value
What is marketing?
Marketing: is a process by which companies create value for customers and build strong customer
relationships to capture value from customers in return.
The marketing process: By creating value for the costumer, marketers capture value from costumers
in return.
Understanding the marketplace and customer needs
Five core customer and marketplace concepts: 1. Needs wants and demands 2. Market offerings
(products, services and experiences) 3. Value and satisfaction 4. Exchanges and relationships 5.
Markets
1. Needs, wants and demands
Needs: States of felt deprivation (noodzakelijke)
a. Physical needs: needs for food, clothing, warmth and safety.
b. Social needs: needs for belonging and affection.
c. Individual needs: needs for knowledge and self-expression.
Wants: The form human needs take as they are shaped by cultural and individual personality.
E.g.: need for food, but wants for KFC.
Demands: Human wants that are backed by buying power. (add up the most value and satisfaction)
2. Market offerings – products, services and experiences.
Market offerings: are some combination of products, services, information, or experiences offered
to a market to satisfy a need or want. E.g.: Products, services, persons, places, organizations, places,
information and ideas.
Marketing myopia: is focusing only on existing wants and losing sight of underlying consumer needs.
E.g.: Manufacturer from drill bits think customers need is a drill bit. But the need is an hole in the
wall. If a more convenient product comes along, the customer will have the same need but will want
the new product.
3. Customer value and satisfaction
Customers: form expectations about the value and satisfaction. Satisfied customers will buy more,
dissatisfied customers will switch to competitors. Value = benefits - costs
Marketers: Must set right level of expectations. Too low: may satisfy those who buy but fail to attract
enough buyers. Too high: buyers will be disappointed.
Chapter 1 Marketing: creating value and capturing customer value
What is marketing?
Marketing: is a process by which companies create value for customers and build strong customer
relationships to capture value from customers in return.
The marketing process: By creating value for the costumer, marketers capture value from costumers
in return.
Understanding the marketplace and customer needs
Five core customer and marketplace concepts: 1. Needs wants and demands 2. Market offerings
(products, services and experiences) 3. Value and satisfaction 4. Exchanges and relationships 5.
Markets
1. Needs, wants and demands
Needs: States of felt deprivation (noodzakelijke)
a. Physical needs: needs for food, clothing, warmth and safety.
b. Social needs: needs for belonging and affection.
c. Individual needs: needs for knowledge and self-expression.
Wants: The form human needs take as they are shaped by cultural and individual personality.
E.g.: need for food, but wants for KFC.
Demands: Human wants that are backed by buying power. (add up the most value and satisfaction)
2. Market offerings – products, services and experiences.
Market offerings: are some combination of products, services, information, or experiences offered
to a market to satisfy a need or want. E.g.: Products, services, persons, places, organizations, places,
information and ideas.
Marketing myopia: is focusing only on existing wants and losing sight of underlying consumer needs.
E.g.: Manufacturer from drill bits think customers need is a drill bit. But the need is an hole in the
wall. If a more convenient product comes along, the customer will have the same need but will want
the new product.
3. Customer value and satisfaction
Customers: form expectations about the value and satisfaction. Satisfied customers will buy more,
dissatisfied customers will switch to competitors. Value = benefits - costs
Marketers: Must set right level of expectations. Too low: may satisfy those who buy but fail to attract
enough buyers. Too high: buyers will be disappointed.
