Principles of Marketing by Philip Kotler 12th Edition Chapter 1

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Marketing
-Is the process of building profitable customer relationships by creating value for customers and capturing value in return -Satisfying customer needs

2 GOALS OF MARKETING
To attract new customers by promising superior value
To keep and grow current customers by delivering satisfaction

MARKETING PROCESS

1.Understanding the Marketplace and Customer Needs

1.1.Needs, Wants, and Demands
1.1.1.NEEDS – states of felt deprivation.
1.1.2.WANTS – the form human needs take as shaped by culture and individual personality. 1.1.3.DEMANDS – human wants that are backed by buying power.

1.2.Marketing Offerings (Products, services, and experiences) – some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

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.

1.3.Customer Value Satisfaction – are key building blocks for developing and managing customer relationships.

1.4. Exchanges and Relationships – the act of obtaining a desired object from someone by offering in return.

1.5.Markets – set of all actual and potential buyers of a product or service.

2.Designing a Customer-Driven Marketing Strategy

Marketing Management – the art and science of choosing target markets and building profitable relationships with them.

2.1.What customers will we serve? (What’s our target market?) 2.1.1.MARKET SEGMENTATION – dividing the market into segments of customers 2.1.2.TARGET MARKETING – selecting which segments it will go after.

2.2.How can we serve these customer’s best? (What’s our value proposition?) – is the company’s set of benefits or values it promises to deliver to consumers to satisfy their needs.

2.2.1.MARKETING MANAGEMENT ORIENTATIONS
2.2.1.1.THE PRODUCTION CONCEPT – the idea that consumers will favour products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency.

2.2.1.2.THE PRODUCT CONCEPT – the idea that consumers will favour products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements.

2.2.1.3.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.

2.2.1.4.THE MARKETING CONCEPT – the marketing management philosophy that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

2.2.1.5.THE SOCIETAL MARKETING CONCEPT – a principle of enlightened marketing that holds that a company should make good marketing decisions by considering the consumers’ wants, the company’s requirements, consumers’ long-run interests, and the society’s long-run interests.

3.Preparing an Integrated Marketing Plan and Program – consists of the firm’s marketing mix, the set of marketing tools the firm uses to implement its marketing strategy.

Marketing Mix (4Ps)
a)Product
b)Price
c)Place
d)Promotion

4.Building Customer Relationships – most important step in marketing process

4.1.Customer Relationship Management – the overall process of building and maintaining customer relationships by delivering superior customer value and satisfaction

4.2.Relationships Building Blocks: Customer Value and Satisfaction 4.2.1.CUSTOMER PERCEIVED VALUE – the customer’s evaluation of the difference between all the benefits and all the costs of a market offering relative to those of competing offers. 4.2.2.CUSTOMER SATISFACTION – the extent to which a product’s perceived performance matches a buyer’s expectations.

4.3.Customer Relationship Levels and Tools
4.3.1.FREQUENCY...
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