Principles of Marketing by Philip Kotler 12th Edition Chapter 1
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
- 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