Principles of Marketing
Global Edition
Assembled by Lilla Toth - 2017
16th Edition
by Gary Armstrong, Philip Kotler
ISBN: 978129209248
Chapters: 8, 9, 10, 11, 12, 14, 15, 16 (pp. 518-525), 19 (pp. 607-614)
Includes the most important information of the lectures and lecture slides! (Including guest
lecture!)
GOOD LUCK! ENJOY!
Table of Contents
Part III Designing a Customer Value-Driven Strategy and Mix ............... 3
VIII. Products, Services, and Brands - Building Customer Value ......................................................... 3
Three Levels of Product ................................................................................................................... 3
Consumer Products ......................................................................................................................... 3
Industrial Products .......................................................................................................................... 4
Organizations, Persons, Places, and Ideas ...................................................................................... 5
Product and Service Decisions ........................................................................................................ 5
Services Marketing .......................................................................................................................... 7
Brand Equity and Brand Value ........................................................................................................ 8
IX. New Product Development and Product Life-Cycle Strategies ...................................................... 9
Managing New Product Development .......................................................................................... 11
Product Life-Cycle Strategies ......................................................................................................... 11
X. Pricing - Understanding and Capturing Customer Value .............................................................. 14
a) Customer Value-Based Pricing .................................................................................................. 14
b) Cost-Based Pricing ..................................................................................................................... 15
c) Competition-Based Pricing ........................................................................................................ 17
Other Internal and External Considerations Affecting Price Decisions ......................................... 17
XI. Pricing Strategies – Additional Considerations ............................................................................ 18
New Product Pricing Strategies ..................................................................................................... 18
Product Mix Pricing Strategies ...................................................................................................... 19
Price Adjustment Strategies .......................................................................................................... 19
Price Changes ................................................................................................................................ 21
Public Policy and Pricing ................................................................................................................ 22
1
, XII. Marketing Channels - Delivering Customer Value ...................................................................... 23
Supply Chains and the Value Delivery Network ............................................................................ 23
The Nature and Importance of Marketing Channels .................................................................... 23
Channel Behavior and Organization .............................................................................................. 25
Channel Design Decisions .............................................................................................................. 26
Channel Management Decisions ................................................................................................... 27
Public Policy and Distribution Decisions ....................................................................................... 28
XIV. Engaging Customers and Communicating Customer Value - .................................................... 30
Integrated Marketing Communications Strategy.............................................................................. 30
The Promotion Mix ........................................................................................................................ 30
Integrated Marketing Communications ........................................................................................ 31
A View of the Communication Process ......................................................................................... 32
Steps in Developing Effective Marketing Communication ............................................................ 33
Choosing Communication Channels and Media ........................................................................... 33
Setting the Total Promotion Budget and Mix................................................................................ 34
Socially Responsible Marketing Communication .......................................................................... 36
XV. Advertising and Public Relations ................................................................................................. 36
Advertising..................................................................................................................................... 36
Public relations (PR) ...................................................................................................................... 39
XVI. Personal Selling and Sales Promotion (pp 520-525) .................................................................. 40
Sales promotion ............................................................................................................................ 40
Major Sales Promotion Tools ........................................................................................................ 40
Developing the Sales Promotion Program .................................................................................... 41
Part IV Extending Marketing ..................................................................... 42
XIX. The Global Marketplace (pp 607-614) ....................................................................................... 42
Deciding on the Global Marketing Program .................................................................................. 42
Guest Lecture – Philips ..................................................................................... 43
Mandatory Articles ........................................................................................... 45
Hofstede, G., 1994, "Management Scientists are Human", Management Science, 40(1): 4-13. ..... 45
Cultural Relativity of Management Theories ................................................................................ 45
National Cultures and Implicit Organizational Models ................................................................. 46
The Chinese Value Survey ............................................................................................................. 47
Conclusion ..................................................................................................................................... 47
Kelly, N. (2015). The Most Common Mistakes Companies Make with Global Marketing. Harvard
Business Review Digital Articles, 2-5 ................................................................................................. 48
2
,Part III Designing a Customer Value-Driven Strategy and Mix
VIII. Products, Services, and Brands - Building Customer Value
Product: Anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need. (Broadly defined products also include
services, events, persons, places, organizations, and ideas, or a mixture of these)
Service: An activity, benefit, or satisfaction offered for sale that is essentially intangible and
does not result in the ownership of anything.
Brand is the name, term, sign, or design—or a combination of these—that identifies the
maker or seller of a product or service
A company’s market offering often includes both tangible goods and services.
Three Levels of Product
When developing products, marketers first must identify the core customer value that
consumers seek from the product. They must then design the actual product and find ways
to augment it to create customer value and a full and satisfying brand experience.
Consumer Products
Consumer product: A product bought by final consumers for personal consumption.
Convenience product: A consumer product that customers usually buy frequently,
immediately, and with minimal comparison and buying effort. Usually low priced, and
3
, marketers place them in many locations to make them readily available when customers need
or want them. (i.e. laundry detergent, candy, magazines, and fast food)
Shopping product: A consumer product that the customer, in the process of selecting and
purchasing, usually compares on such attributes as suitability, quality, price, and style.
Consumers spend much time and effort in gathering information and making comparisons.
(i.e. furniture, clothing, major appliances, and hotel services)
Unsought product: A consumer product that the consumer either does not know about or
knows about but does not normally consider buying. (i.e. life insurance, preplanned funeral
services, and blood donations to the Red Cross)
Specialty product: A consumer product with unique characteristics or brand identification
for which a significant group of buyers is willing to make a special purchase effort. (i.e.
specific brands of cars, high-priced photography equipment, designer clothes, gourmet foods,
and the services of medical or legal specialists)
Industrial Products
Industrial product: A product bought by individuals and organizations for further processing
or for use in conducting a business.
Materials and parts include raw materials (farm products [wheat, cotton, fruits] + natural
products [fish, lumber]) as well as manufactured materials and parts (component materials
[iron, yarn, cement] + component parts [tires, castings]).
4
Global Edition
Assembled by Lilla Toth - 2017
16th Edition
by Gary Armstrong, Philip Kotler
ISBN: 978129209248
Chapters: 8, 9, 10, 11, 12, 14, 15, 16 (pp. 518-525), 19 (pp. 607-614)
Includes the most important information of the lectures and lecture slides! (Including guest
lecture!)
GOOD LUCK! ENJOY!
Table of Contents
Part III Designing a Customer Value-Driven Strategy and Mix ............... 3
VIII. Products, Services, and Brands - Building Customer Value ......................................................... 3
Three Levels of Product ................................................................................................................... 3
Consumer Products ......................................................................................................................... 3
Industrial Products .......................................................................................................................... 4
Organizations, Persons, Places, and Ideas ...................................................................................... 5
Product and Service Decisions ........................................................................................................ 5
Services Marketing .......................................................................................................................... 7
Brand Equity and Brand Value ........................................................................................................ 8
IX. New Product Development and Product Life-Cycle Strategies ...................................................... 9
Managing New Product Development .......................................................................................... 11
Product Life-Cycle Strategies ......................................................................................................... 11
X. Pricing - Understanding and Capturing Customer Value .............................................................. 14
a) Customer Value-Based Pricing .................................................................................................. 14
b) Cost-Based Pricing ..................................................................................................................... 15
c) Competition-Based Pricing ........................................................................................................ 17
Other Internal and External Considerations Affecting Price Decisions ......................................... 17
XI. Pricing Strategies – Additional Considerations ............................................................................ 18
New Product Pricing Strategies ..................................................................................................... 18
Product Mix Pricing Strategies ...................................................................................................... 19
Price Adjustment Strategies .......................................................................................................... 19
Price Changes ................................................................................................................................ 21
Public Policy and Pricing ................................................................................................................ 22
1
, XII. Marketing Channels - Delivering Customer Value ...................................................................... 23
Supply Chains and the Value Delivery Network ............................................................................ 23
The Nature and Importance of Marketing Channels .................................................................... 23
Channel Behavior and Organization .............................................................................................. 25
Channel Design Decisions .............................................................................................................. 26
Channel Management Decisions ................................................................................................... 27
Public Policy and Distribution Decisions ....................................................................................... 28
XIV. Engaging Customers and Communicating Customer Value - .................................................... 30
Integrated Marketing Communications Strategy.............................................................................. 30
The Promotion Mix ........................................................................................................................ 30
Integrated Marketing Communications ........................................................................................ 31
A View of the Communication Process ......................................................................................... 32
Steps in Developing Effective Marketing Communication ............................................................ 33
Choosing Communication Channels and Media ........................................................................... 33
Setting the Total Promotion Budget and Mix................................................................................ 34
Socially Responsible Marketing Communication .......................................................................... 36
XV. Advertising and Public Relations ................................................................................................. 36
Advertising..................................................................................................................................... 36
Public relations (PR) ...................................................................................................................... 39
XVI. Personal Selling and Sales Promotion (pp 520-525) .................................................................. 40
Sales promotion ............................................................................................................................ 40
Major Sales Promotion Tools ........................................................................................................ 40
Developing the Sales Promotion Program .................................................................................... 41
Part IV Extending Marketing ..................................................................... 42
XIX. The Global Marketplace (pp 607-614) ....................................................................................... 42
Deciding on the Global Marketing Program .................................................................................. 42
Guest Lecture – Philips ..................................................................................... 43
Mandatory Articles ........................................................................................... 45
Hofstede, G., 1994, "Management Scientists are Human", Management Science, 40(1): 4-13. ..... 45
Cultural Relativity of Management Theories ................................................................................ 45
National Cultures and Implicit Organizational Models ................................................................. 46
The Chinese Value Survey ............................................................................................................. 47
Conclusion ..................................................................................................................................... 47
Kelly, N. (2015). The Most Common Mistakes Companies Make with Global Marketing. Harvard
Business Review Digital Articles, 2-5 ................................................................................................. 48
2
,Part III Designing a Customer Value-Driven Strategy and Mix
VIII. Products, Services, and Brands - Building Customer Value
Product: Anything that can be offered to a market for attention, acquisition, use, or
consumption that might satisfy a want or need. (Broadly defined products also include
services, events, persons, places, organizations, and ideas, or a mixture of these)
Service: An activity, benefit, or satisfaction offered for sale that is essentially intangible and
does not result in the ownership of anything.
Brand is the name, term, sign, or design—or a combination of these—that identifies the
maker or seller of a product or service
A company’s market offering often includes both tangible goods and services.
Three Levels of Product
When developing products, marketers first must identify the core customer value that
consumers seek from the product. They must then design the actual product and find ways
to augment it to create customer value and a full and satisfying brand experience.
Consumer Products
Consumer product: A product bought by final consumers for personal consumption.
Convenience product: A consumer product that customers usually buy frequently,
immediately, and with minimal comparison and buying effort. Usually low priced, and
3
, marketers place them in many locations to make them readily available when customers need
or want them. (i.e. laundry detergent, candy, magazines, and fast food)
Shopping product: A consumer product that the customer, in the process of selecting and
purchasing, usually compares on such attributes as suitability, quality, price, and style.
Consumers spend much time and effort in gathering information and making comparisons.
(i.e. furniture, clothing, major appliances, and hotel services)
Unsought product: A consumer product that the consumer either does not know about or
knows about but does not normally consider buying. (i.e. life insurance, preplanned funeral
services, and blood donations to the Red Cross)
Specialty product: A consumer product with unique characteristics or brand identification
for which a significant group of buyers is willing to make a special purchase effort. (i.e.
specific brands of cars, high-priced photography equipment, designer clothes, gourmet foods,
and the services of medical or legal specialists)
Industrial Products
Industrial product: A product bought by individuals and organizations for further processing
or for use in conducting a business.
Materials and parts include raw materials (farm products [wheat, cotton, fruits] + natural
products [fish, lumber]) as well as manufactured materials and parts (component materials
[iron, yarn, cement] + component parts [tires, castings]).
4
