Summary principles of marketing 19th edition kotler 9781292449364
, Summary principles of marketing 19th edition kotler 9781292449364
Contents
CHAPTER 1 - Marketing............................................................................................... 3
CHAPTER 2 Strategic planning.................................................................................... 6
CHAPTER 3 Marketing environment............................................................................ 8
CHAPTER 4 Customer information............................................................................. 10
CHAPTER 5 Consumer buyer behavior......................................................................12
CHAPTER 6 Business buy behaviour..........................................................................14
CHAPTER 7 Mass marketing to target marketing......................................................16
CHAPTER 8 Products................................................................................................. 18
CHAPTER 9 Product development............................................................................. 21
CHAPTER 10 Pricing................................................................................................... 23
CHAPTER 11 Pricing strategies.................................................................................. 24
CHAPTER 12 Producing............................................................................................. 26
66 common test bank questions – answers separately.............................................29
Part 1: Introduction to Marketing........................................................................... 29
Part 2: Consumer Behavior.................................................................................... 29
Part 3: Market Segmentation and Targeting..........................................................29
Part 4: Product Strategy......................................................................................... 30
Part 5: Pricing Strategy.......................................................................................... 30
Part 6: Distribution and Promotion.........................................................................30
50 core concepts explained...................................................................................... 34
25 learning goals explained...................................................................................... 37
, Summary principles of marketing 19th edition kotler 9781292449364
CHAPTER 1 - Marketing
Simply put, marketing is managing profitable relationships, by attracting new customers by
superior value and keeping current customers by delivering satisfaction. Marketing must be
understood in the sense of satisfying customer needs. Marketing can be defined as the
process by which companies create value for customers and build strong customer
relationships to capture value from customers in return. A five-step model of the marketing
process will provide the structure of this chapter.
Understanding the marketplace and customer needs
There are five different core customer and marketplace concepts.
1. Customer needs, wants and demands. Human needs are states of felt deprivation and can
include physical, social and individual needs. Wants are the form human needs take as they
are shaped by culture and individual personality. Demands are human wants that are backed
by buying power.
2. Market offerings are a combinations of products, services and experiences offered to a
market to satisfy a need or want. These can be physical products, but also services –
activities that are essentially intangible. The phenomenon of marketing myopia is paying
more attention to company products, than to the underlying needs of consumers.
3. Value and satisfaction are key building blocks for customer relationships.
4. Exchanges are the acts of obtaining a desired object form someone by offering something
in return. Marketing consists of actions trying to build an exchange relationship with an
audience.
5. A market is the set of all actual and potential buyers of a product or service. Marketing
involves serving a market of final consumers in the face of competitors.
Designing a customer-driven marketing strategy
Marketing management is the art and science of choosing target markets and building
profitable relationships with them. The aim is to find, attract, keep and grow the targeted
customers by creating and delivering superior customer value. The target audience can be
selected by dividing the market into customer segments (market segmentation) and
selecting which segments to go after (target marketing). A company must also decide how
to serve the targeted audience, by offering a value proposition. A value proposition is the set
of benefits or values a company promises to deliver.
There are five alternative concepts that companies use to carry out their marketing strategy.
1. The production concept: the idea that consumers will favour products that are available
and highly affordable and that the organisation should therefore focus on improving
production and distribution efficiency.
2. The product concept: the idea that consumers will favour products that offer the most
quality, performance, and features and that the organisation should therefore devote its
energy to making continuous product improvements.
3. The selling concept: the idea that consumers will not buy enough of the firm’s product,
unless it undertakes a large-scale selling and promotion effort.
4. The marketing concept: the idea that achieving organisational goals depends on knowing
, Summary principles of marketing 19th edition kotler 9781292449364
the needs and wants of target markets and delivering the desired satisfactions better than
competitors do. It can be regarded as an “outside-in view”.
5. The societal marketing concept is the idea that a company’s marketing decisions should
consider consumer wants, the company’s requirements, consumers’ long-term interests and
society’s long-term interests. Companies should deliver value in a way that maintains
consumers and society’s well-being.
Constructing an integrated marketing plan
A marketing strategy outlines which customers it will serve and how it will create value. The
marketer develops an integrated marketing plan that will deliver value to customers. It
contains the marketing mix: the tools used to implement the strategy, which are the four
Ps: product, price, place and promotion.
Building customer relationships
The first three steps all lead to this one: building profitable customer relationships. Customer
relationship management (CRM) is the overall process of building and maintaining profitable
customer relationships by delivering superior customer value and satisfaction. The crucial
part here is to create superior customer-perceived-value, which is the customer’s evaluation
of the difference between all the benefits and all the costs of a marketing offer, in relation to
those of competing offers and superior customer satisfaction, which is the extent to which a
product’s perceived performance matches a buyer’s expectations. Customer delight can be
achieved by delivering more than promised.
Customer relationships exist at multiple levels. They can be basic relationships or full
partnerships and everything in between. In current times, companies are choosing their
customers more selectively. New technologies have paved the way for two-way customer
relationships, where consumers have more power and control. The marketing world is also
embracing customer-managed relationships: marketing relationships in which customers,
empowered by today’s new digital technologies, interact with companies and with each other
to shape their relationships with brands. A growing part of this dialogue is consumer-
generated marketing: brand exchanges created by consumers themselves, by which
consumers are playing an increasing role in shaping their own brand experiences and
those of other consumers.
Today’s marketers often work with a variety of partners to build consumer relationships.
Partner relationship management means working closely with partners in other company
departments and outside the company to jointly bring greater value to customers. These
partners can be inside the company, but also outside the firm. The supply chain is a channel,
from raw material to final product, and the companies involved can be partners through
supply chain management.
Capturing customer value
The final step of the model involves capturing value. Customer lifetime value is the value of
the entire stream of purchases that the customer would make over a lifetime of
patronage.
, Summary principles of marketing 19th edition kotler 9781292449364
Contents
CHAPTER 1 - Marketing............................................................................................... 3
CHAPTER 2 Strategic planning.................................................................................... 6
CHAPTER 3 Marketing environment............................................................................ 8
CHAPTER 4 Customer information............................................................................. 10
CHAPTER 5 Consumer buyer behavior......................................................................12
CHAPTER 6 Business buy behaviour..........................................................................14
CHAPTER 7 Mass marketing to target marketing......................................................16
CHAPTER 8 Products................................................................................................. 18
CHAPTER 9 Product development............................................................................. 21
CHAPTER 10 Pricing................................................................................................... 23
CHAPTER 11 Pricing strategies.................................................................................. 24
CHAPTER 12 Producing............................................................................................. 26
66 common test bank questions – answers separately.............................................29
Part 1: Introduction to Marketing........................................................................... 29
Part 2: Consumer Behavior.................................................................................... 29
Part 3: Market Segmentation and Targeting..........................................................29
Part 4: Product Strategy......................................................................................... 30
Part 5: Pricing Strategy.......................................................................................... 30
Part 6: Distribution and Promotion.........................................................................30
50 core concepts explained...................................................................................... 34
25 learning goals explained...................................................................................... 37
, Summary principles of marketing 19th edition kotler 9781292449364
CHAPTER 1 - Marketing
Simply put, marketing is managing profitable relationships, by attracting new customers by
superior value and keeping current customers by delivering satisfaction. Marketing must be
understood in the sense of satisfying customer needs. Marketing can be defined as the
process by which companies create value for customers and build strong customer
relationships to capture value from customers in return. A five-step model of the marketing
process will provide the structure of this chapter.
Understanding the marketplace and customer needs
There are five different core customer and marketplace concepts.
1. Customer needs, wants and demands. Human needs are states of felt deprivation and can
include physical, social and individual needs. Wants are the form human needs take as they
are shaped by culture and individual personality. Demands are human wants that are backed
by buying power.
2. Market offerings are a combinations of products, services and experiences offered to a
market to satisfy a need or want. These can be physical products, but also services –
activities that are essentially intangible. The phenomenon of marketing myopia is paying
more attention to company products, than to the underlying needs of consumers.
3. Value and satisfaction are key building blocks for customer relationships.
4. Exchanges are the acts of obtaining a desired object form someone by offering something
in return. Marketing consists of actions trying to build an exchange relationship with an
audience.
5. A market is the set of all actual and potential buyers of a product or service. Marketing
involves serving a market of final consumers in the face of competitors.
Designing a customer-driven marketing strategy
Marketing management is the art and science of choosing target markets and building
profitable relationships with them. The aim is to find, attract, keep and grow the targeted
customers by creating and delivering superior customer value. The target audience can be
selected by dividing the market into customer segments (market segmentation) and
selecting which segments to go after (target marketing). A company must also decide how
to serve the targeted audience, by offering a value proposition. A value proposition is the set
of benefits or values a company promises to deliver.
There are five alternative concepts that companies use to carry out their marketing strategy.
1. The production concept: the idea that consumers will favour products that are available
and highly affordable and that the organisation should therefore focus on improving
production and distribution efficiency.
2. The product concept: the idea that consumers will favour products that offer the most
quality, performance, and features and that the organisation should therefore devote its
energy to making continuous product improvements.
3. The selling concept: the idea that consumers will not buy enough of the firm’s product,
unless it undertakes a large-scale selling and promotion effort.
4. The marketing concept: the idea that achieving organisational goals depends on knowing
, Summary principles of marketing 19th edition kotler 9781292449364
the needs and wants of target markets and delivering the desired satisfactions better than
competitors do. It can be regarded as an “outside-in view”.
5. The societal marketing concept is the idea that a company’s marketing decisions should
consider consumer wants, the company’s requirements, consumers’ long-term interests and
society’s long-term interests. Companies should deliver value in a way that maintains
consumers and society’s well-being.
Constructing an integrated marketing plan
A marketing strategy outlines which customers it will serve and how it will create value. The
marketer develops an integrated marketing plan that will deliver value to customers. It
contains the marketing mix: the tools used to implement the strategy, which are the four
Ps: product, price, place and promotion.
Building customer relationships
The first three steps all lead to this one: building profitable customer relationships. Customer
relationship management (CRM) is the overall process of building and maintaining profitable
customer relationships by delivering superior customer value and satisfaction. The crucial
part here is to create superior customer-perceived-value, which is the customer’s evaluation
of the difference between all the benefits and all the costs of a marketing offer, in relation to
those of competing offers and superior customer satisfaction, which is the extent to which a
product’s perceived performance matches a buyer’s expectations. Customer delight can be
achieved by delivering more than promised.
Customer relationships exist at multiple levels. They can be basic relationships or full
partnerships and everything in between. In current times, companies are choosing their
customers more selectively. New technologies have paved the way for two-way customer
relationships, where consumers have more power and control. The marketing world is also
embracing customer-managed relationships: marketing relationships in which customers,
empowered by today’s new digital technologies, interact with companies and with each other
to shape their relationships with brands. A growing part of this dialogue is consumer-
generated marketing: brand exchanges created by consumers themselves, by which
consumers are playing an increasing role in shaping their own brand experiences and
those of other consumers.
Today’s marketers often work with a variety of partners to build consumer relationships.
Partner relationship management means working closely with partners in other company
departments and outside the company to jointly bring greater value to customers. These
partners can be inside the company, but also outside the firm. The supply chain is a channel,
from raw material to final product, and the companies involved can be partners through
supply chain management.
Capturing customer value
The final step of the model involves capturing value. Customer lifetime value is the value of
the entire stream of purchases that the customer would make over a lifetime of
patronage.
