Kotler Marketing Chapter 1

Chapter 1: Defining Marketing for the 21st Century * Marketing is about identifying and meeting human and social needs. It is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offers that have value for customers, clients, partners, and society at large. * Marketing creates demand for a product, which in turn drives revenue. Greater demand creates the need for companies to hire new workers, while revenue (top line) contributes to a company’s bottom line (profits), which allow the company to be more fully engaged in socially responsible activities. * Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. * Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. * Persons, experiences, events, properties, organizations, information ideas, goods, services and places are marketed. * Marketers are individuals, groups, associations, companies, etc. that seek a response, such as attention, a purchase, donation, vote, etc., from another party which is called the prospect. * If two parties are seeking to sell someone to each other, we call them both marketers. * Eight demand states are possible: 1. Negative – consumer’s dislike a product and may pay to avoid, such as with dental work 2. Nonexistent – consumers are unaware of or uninterested in the product or service 3. Latent – There is no product on the market that can satisfy consumer needs 4. Declining – Consumers purchase a product less and less frequently, or not at all. For example, the sales of albums (vinyl and CD’s) are declining significantly. 5. Irregular – A products demand varies by time, such as on a seasonal basis. 6.