Principles of Marketing
By
Kotler and Gary Armstrong
Chapter 01
Chapter 1: Marketing—Creating Customer Value and Engagement
Marketing Defined Marketing is broadly defined as the process by which companies engage
customers, build strong customer relationships, and create customer value in order to
capture value from customers in return. Its twofold goal is to attract new customers by promising
superior value and to keep and grow current customers by delivering satisfaction. Rather than
being just "telling and selling," modern marketing focuses on satisfying customer needs.
The Five-Step Marketing Process The framework for marketing consists of a simple five-step
model:
1. Understand the marketplace and customer needs and wants.
2. Design a customer value–driven marketing strategy.
3. Construct an integrated marketing program that delivers superior value.
4. Engage customers, build profitable relationships, and create customer delight.
5. Capture value from customers to create profits and customer equity.
Core Marketplace Concepts To understand the marketplace, marketers examine five core
concepts:
• Needs, Wants, and Demands: Needs are states of felt deprivation; wants are the forms needs
take as shaped by culture and personality; and demands are wants backed by buying power.
• Market Offerings: These include some combination of products, services, information, or
experiences offered to satisfy a need or want.
By
Kotler and Gary Armstrong
Chapter 01
Chapter 1: Marketing—Creating Customer Value and Engagement
Marketing Defined Marketing is broadly defined as the process by which companies engage
customers, build strong customer relationships, and create customer value in order to
capture value from customers in return. Its twofold goal is to attract new customers by promising
superior value and to keep and grow current customers by delivering satisfaction. Rather than
being just "telling and selling," modern marketing focuses on satisfying customer needs.
The Five-Step Marketing Process The framework for marketing consists of a simple five-step
model:
1. Understand the marketplace and customer needs and wants.
2. Design a customer value–driven marketing strategy.
3. Construct an integrated marketing program that delivers superior value.
4. Engage customers, build profitable relationships, and create customer delight.
5. Capture value from customers to create profits and customer equity.
Core Marketplace Concepts To understand the marketplace, marketers examine five core
concepts:
• Needs, Wants, and Demands: Needs are states of felt deprivation; wants are the forms needs
take as shaped by culture and personality; and demands are wants backed by buying power.
• Market Offerings: These include some combination of products, services, information, or
experiences offered to satisfy a need or want.
