Principles of Marketing Book , by Kotler & Armstrong, is the most popular and important marketing book in the world. Besides, the book’s authors are highly-accredited scholars globally in marketing and management research and teaching. We discuss here the 2nd most recent edition of the book (17th Edition, 2018), published by Pearson (U.S.A.). The most recent edition of the book is the 18th Edition (Mar 2020). Management with Merits Channel (MANWIM) establishes its 2nd year with the 2nd Year Books Program within the service of (Global English Management & Leadership Books). An independent playlist has been created at our YouTube Channel to include the introductory sessions for the three books to be discussed in the channel’s 2nd year. Despite that we asked our fans to provide us with their opinions regarding the books/topics they would like us to discuss (1st Annual Anniversary Session), unfortunately we haven’t received any feedback. Therefore, the channel decided to start the 2nd Year Books’ Program with this book (Principles of Marketing – 2018) because marketing is the 1st and most important function for all businesses. Besides, marketing is an art of life. We practice marketing in all our life aspects. We can’t get value from our family, friends, jobs or whatever without creating value for them first. This is the core of marketing. The last reason for choosing this book is its popularity worldwide, as well as its recent publication (2018), as per the 1st shape below. We still encourage our fans/viewers to express their opinion with respect to the next two books to be introduced after this one. After we introduce the three books of the 2nd year, each of them will be discussed in four months’ period. Besides, each of which will have its own playlist at our YouTube Channel, as well as an independent category at this website. This book will be taken in the months of October, November, December 2020 & January 2021 (2nd below picture). To download the associated presentation (PDF), kindly go to the video at YouTube and click on the appropriate link in the description section below the video.
Principles of Marketing Book , Sales & Advertising
Principles of Marketing Book makes a clear distinction between marketing and other similar concepts, which are widely believed to by synonyms of marketing, such as selling and advertising. First, the selling concept is totally different from the marketing concept. Selling is about achieving as much sales as possible in order to earn more money. On the other hand, marketing starts with customers by understanding their needs and wants, and achieves its goals by customers via both revenues from sales, as well as customer satisfaction (below shape). With respect to advertising, it is a technique for promotion, which is in turn a part of the integrated marketing program (marketing mix) within the overall concept of marketing.
Principles of Marketing Book , What is Marketing ?
As per Principles of Marketing Book , Marketing means the customer. It is simply providing and creating value for customers, in order to capture value back from customers. Therefore, the book visualizes marketing as a process that is based on two corners, which are customers’ value and engagement. This process is divided into two major parts, which are creating and capturing value. The whole process has five steps. Thus, the book calls it the (Five-Step Model of the Marketing Process), as per the below shape. The first four steps make out “Creating Value” part, while the last fifth step is “Capturing Value” part. Principles of Marketing Book focuses on this model. Each and every part and chapter explains a section or aspect of the model. Below, we briefly discuss each step.
A. Create Value for Customers : 1. Understanding the Market & Customers’ Needs & Wants
The first step in marketing and in all businesses, both current & new ones, is understanding the market and the customers. We discussed this thoroughly in our 2nd book, 1st year – (Entrepreneurship 2016), especially in the session of (Recognizing Opportunities and Generating Ideas). The market includes all the participants and forces in the modern marketing system, as well as the current and future trends, as per the below picture. Understanding customers means looking for their needs, wants and demands. The purpose is to provide value that solves current problems for customers or fills out a missing gap in the market. Customer needs are the basic physical & psychological necessities, such as food, drink, safety, security, respect etc. Customer wants denote how customers want to satisfy their needs, shaped by their culture and individual preferences. A good example is the consumers choice in food or drink. Finally, customers’ demand is the customers’ want supplied by purchasing power. It answers the questions (What will the customers purchase to get their wants?).
A. Create Value for Customers : 2. Making Customer-Value Driven Marketing Strategy
In our 1st book, 1st year (Management 2015), we stated in the (Planning) session that strategy means the way or path to achieve your goals. In marketing, the goal is customers’ value. Therefore, after understanding the market and customers, we have to establish our method (strategy) to create value for them. First, we have to do (Segmentation), which is dividing the market into segments depending on different criteria, such as age, gender, social/financial status or any combination. After that, we should perform (Targeting), which is to target specific segment(s) depending on our understanding (step 1) and the value we intend to create. Next, we should make (Value Proposition). We have to establish a specific (Differentiation) that makes our value unique and special, with at least one competitive advantage. Besides, we have to do (Positioning), which is to strongly place and position our value in the minds of customers. For example, KFC differentiates its value by the unique taste of chicken, which is made by a secret recipe that consists of 11 ingredients. It also positions this value in the minds of customers via its superb slogan (Finger Lickin’ Good), as per the below shape.
A. Create Value for Customers : 3. Implementing the Strategy by an Integrated Marketing Program
To create superior value, I must implement the strategy by an integrated marketing program that consists of four elements called (Promotional Mix) or sometimes commonly known as (4Ps). First, I must provide/produce/make an (Offering: Product/Service) that presents superior value. Second, I should also (Price) it creatively and reasonably to suit the customers and the value provided. After that, I should decide the (Placement/Distribution) of the offering and value. How will I place or distribute my offerings and give it to customers? Shall I open a store, or work online, or do both, and why? Finally, I must include proper (Promotion) for my offering/value to let the customers know about it and get fond of it. Several promotional techniques, such as advertising, campaigns, agents etc. can be used, within the promotional mix of the firm. That’s why advertising is only a small part of the overall marketing concept as explained before.
A. Create Value for Customers : 4. Customers’ Engagement & Relationships
Stew Leonard, the owner of several diary stores in the U.S., states that he cries whenever he sees a customer simply leaving one of his stores without any purchase. He describes the scene as 50,000 dollars flying out of his store. The reason is that the lifetime value of one customer residing in the area, if they make average purchases of USD100/week from the store, is USD50K. He strongly believes in the slogan: “The Customer is Always Right”, as per the 1st below picture. In addition, Leonard creates and presents”Disney Land for Diary Stores” by providing fun, engagement & delight in his stores (2nd picture below). He is exemplary in creating customers’ engagement & delight. A great method of obtaining customers’ engagement & delight is via using electronic means, such as websites and social media like Facebook, Twitter & YouTube.
B. Capture Value from Customers : 5. Profits, Loyalty & Customers’ Equity
It’s the ultimate goal for marketing and businesses as well. Capturing value from customers doesn’t come only in the form of profits, generated from sales. Most importantly, it comes from customers’ loyalty, such as the lifetime value example of USD50K stated before. Firms should ensure that customers don’t switch to another competitor. This is called the customers’ equity for the firm in the market, which is the amount of loyal customers the organization has.
Finally, Congratulations & Thanks for Surpassing YouTube Partner Program (YPP) and Monetization Condition, and Getting the Channel Monetized
In the 1st annual anniversary meeting, we stated that we hadn’t passed YPP requirement of 4000 public watch hours. Besides, we put a target of maximum one month to meet the requirement. Thankfully, on Tues, Aug 25, 2020, the channel surpassed this condition. It took us only 12 days from the 1st annual anniversary date (Aug 13, 2020) to surpass the requirement. Thence, we immediately applied for joining YPP to get the channel monetized (1st below picture). Happily, it took YouTube only two days to monetize all the channel’s videos (Thurs, Aug 27, 2020), as per the 2nd picture below. It confirms that our channel follows all YouTube Monetization Policies, as explained in the 1st annual anniversary session. I’d like to express my sincere thanks and appreciation for all the channels’ fans & viewers for this amazing achievement.
Principles of Marketing Book – Enjoy Our Journey
Don’t forget to join and enjoy our great journey in discussing Principles of Marketing Book (2018), the 1st book in the 2nd Year Books’ Program in your channel (Management with Merits – Manage to Prosper). I’m sure that you will find joy, fun and benefit from this book, in order to help you prosper and achieve your goals.
That was our session for today, guys. Thank you so much for watching us. Next English session, we will introduce the 2nd book in the 2nd Year Books’ Program in the channel. As explained in the intro of this post, we are still waiting for your suggestions for the coming books/titles. Please support the channel strongly so we can continue our glorious mission. Our production is every Thursday. Please subscribe to the channel at YouTube and activate the notifications bell there. Please stay with us, follow us, participate with us, and widely share the channel and all its electronic contact platforms.