Instructor’s Visual Index Kotler/Armstrong

Chapter 1: Marketing in a Changing

World

1-1

PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong

Chapter
Chapter 11
Marketing in a Changing World:
Creating Customer Value and
Satisfaction
© Copyright 1999 Prentice Hall

What
What is
is Marketing?
Marketing?
1-2

• Process by which individuals and

groups obtain what they need and
want through creating and
exchanging products and value with
others.

• More simply: Marketing is the

delivery of customer satisfaction at a
profit.

© Copyright 1999 Prentice Hall

© Copyright 1999 Prentice Hall

Instructor’s Visual Index Kotler/Armstrong
Chapter 1: Marketing in a Changing
World

1-3
Core
Core Marketing
Marketing Concepts
Concepts

Products
Needs, wants, and
and demands Services

Core
Core
Marketing
Marketing
Concepts
Concepts
Markets
Value, satisfaction,
and quality

Exchange, transactions,
and relationships

© Copyright 1999 Prentice Hall

What
What Motivates
Motivates aa Consumer
Consumer
1-4

to
to Take
Take Action?
Action?
• Needs - state of felt deprivation for basic
items such as food and clothing and complex
needs such as for belonging. i.e. I am thirsty

• Wants - form that a human need takes as

shaped by culture and individual personality.
i.e. I want a Coca-Cola.

• Demands - human wants backed by buying

power. i.e. I have money to buy a Coca-Cola.

© Copyright 1999 Prentice Hall

© Copyright 1999 Prentice Hall

Instructor’s Visual Index Kotler/Armstrong
Chapter 1: Marketing in a Changing
World

What
What Will
Will Satisfy
Satisfy Consumer’s
Consumer’s
1-5

Needs
Needs and
and Wants?
Wants?

• Products - anything • Services - activities or

that can be offered to a
market for attention,
acquisition, use or
consumption and that
might satisfy a need or
want.
• Examples: persons,
places, organizations,
activities, and ideas.
benefits offered for
sale that are
essentially intangible
and don’t result in the
ownership of anything.
• Examples: banking,
airlines, haircuts, and
hotels.

© Copyright 1999 Prentice Hall

How
How DoDo Consumers
Consumers Choose
Choose
1-6

Choose
Choose Among
Among Products
Products and
and
Services?
Services?
• Customer Value - benefit that the customer
gains from owning and using a product
compared to the cost of obtaining the
product.

• Customer Satisfaction - depends on the

product’s perceived performance in
delivering value relative to a buyer’s
expectations. Linked to Quality and Total
Quality Management (TQM).
© Copyright 1999 Prentice Hall

© Copyright 1999 Prentice Hall

Instructor’s Visual Index Kotler/Armstrong
Chapter 1: Marketing in a Changing
World

How
How do
do Consumers
Consumers Obtain
Obtain
1-7

Products
Products and
and Services?
Services?
• Exchanges - act of obtaining a desired object from
someone by offering something in return.

• Transactions - trade of values between parties.

Usually involves money and a response.

• Relationships - building long-term relationships

with consumers, distributors, dealers, and
suppliers.

© Copyright 1999 Prentice Hall

Who
Who Purchases
Purchases Products
Products
1-8

and
and Services?
Services?

Actual
Actual
Market
Market -- buyers
buyers Buyers
who Buyers
who share
share aa
particular
particular need
need
or
or want
want that
that can
can
be
be satisfied by aa
satisfied by
company’s
company’s products
products Potential
Potential
or services.
or services. Buyers
Buyers

© Copyright 1999 Prentice Hall

© Copyright 1999 Prentice Hall

Instructor’s Visual Index Kotler/Armstrong
Chapter 1: Marketing in a Changing
World

Modern
Modern Marketing
Marketing System
System
1-9

Suppliers
Suppliers

Company
Company
Competitors
Competitors (Marketer)
(Marketer)
Environment

Environment
Marketing
Marketing
Intermediaries
Intermediaries

End
End User
User
Market
Market

© Copyright 1999 Prentice Hall

Marketing
Marketing Management
Management
1-10

Marketing Management
Implementing programs to create exchanges
with target buyers to achieve organizational
goals

Demand Management
Finding and increasing demand, also
changing or reducing demand

Profitable Customer Relationships

Attracting new customers and
retaining current customers
© Copyright 1999 Prentice Hall

© Copyright 1999 Prentice Hall

Instructor’s Visual Index Kotler/Armstrong
Chapter 1: Marketing in a Changing
World

1-11
Marketing
Marketing Management
Management
Philosophies
Philosophies
• Consumers favor products that are
Production
Production Concept
Concept available and highly affordable
•Improve production and distribution

•Consumers favor products that offer

Product the most quality, performance, and
Product Concept
Concept innovative features

•Consumers will buy products only if

Selling
Selling Concept
Concept the company promotes/ sells these
product

•Focuses on needs/ wants of target

Marketing
Marketing Concept
Concept markets & delivering satisfaction
better than competitors

•Focuses on needs/ wants of target

Societal markets & delivering superior value
Societal Marketing
Marketing Concept
Concept •Society’s well-being

© Copyright 1999 Prentice Hall

Marketing
Marketing &
& Sales
Sales
1-12

Concepts
Concepts Contrasted
Contrasted
Starting Focus Means Ends
Point
Selling Profits
Existing
Factory and through
Products
Promoting Volume

The
The Selling
Selling Concept
Concept

Profits
Customer Integrated
Market through
Needs Marketing
Satisfaction

The
The Marketing
Marketing Concept
Concept

© Copyright 1999 Prentice Hall

© Copyright 1999 Prentice Hall

Instructor’s Visual Index Kotler/Armstrong
Chapter 1: Marketing in a Changing
World

1-13
Societal
Societal Marketing
Marketing Concept
Concept
Society
Society
(Human
(Human Welfare
Welfare))

Societal
Societal
Marketing
Marketing
Concept
Concept

Consumers
Consumers Company
Company
(Wants)
(Wants) (Profits)
(Profits)
© Copyright 1999 Prentice Hall

New
New Marketing
Marketing Challenges
Challenges 1-14

New
Marketing
Landscape &
Information Nonprofit
Technology Marketing

Emerging
Emerging
Ethical
Concerns
Challenges
Challenges Globalization

Changing
World
Economy

© Copyright 1999 Prentice Hall

© Copyright 1999 Prentice Hall