Principles of Marketing: 19th Edition Philip Kotler Gary Armstrong Sridhar Balasubramanian Instructor’s Manual Revised by : Susan Leshnower (Solution Manual Latest Edition 2023-24, Grade A+, 100% Verified) Copyright© 2024 Pearson Education, Inc. 1-1 Chapter 1 MARKETING: CREATING CUSTOMER VALUE AND ENGAGEMENT MARKETING STARTER: CHAPTER 1 AMAZON: Obsessed with Creating Customer Value, Engagement, and Relationships Synopsis Amazon, which was founded in 1995 as a book store, has experienced explosive growth by moving beyond online selling to physical stores, video and music streaming, cloud services, and the Internet of Things, which allowed it to grow revenue to $233 billion. Its CEO, Jeff Bezos, said that Amazon’s success is due to its obsession with customers. It is driven to create genuine value and special experiences for customers. Selection, convenience, and value are the foundation stones of the Amazon experience, and Amazon has introduced innovations that make shopping easier (e.g. 1-Click ordering; Alexa; fast delivery; Dash Cart). Discussion Objective An active 10-minute discussion of the Amazon story will help link students to key foundational marketing concepts. Amazon provides an excellent vehicle for introducing the overall marketing framework presented in Chapter 1 and throughout the text: Good marketing is all about creating value for customers and building strong customer relationships in order to capture val ue from customers in return. Starting the Discussion To start the discussion, ask the class to share their experiences with Amazon. What attracts them to Amazon? What is it about the customer experience that is so enticing? Next, pull up Amazon’s Facebook page. Click on articles and links to further explore . Together, note the variety of approaches Amazon takes and the focus on customers. Investigate Amazon’s other media, including the company’s website, Twitter, Snapchat, and YouTube. In what ways does Amazon’s focus on customer service show through ? You should be familiar with th ese websites in advance so that you can move purposefully to keep the discussion moving. But let the class discussion interactively guide the site s that you explore, taking you deeper into each page. Start with the first question below, and then ask other questions as the discussion allows. Throughout the discussion, keep your objective firmly in mind: to emphasize that good marketing is all about creating value for customers and managing customer relationships in order to capture value from customers in return. The final question leads the class into Chapter 1 and the discussion for the day. Ha ve fun with this one! Discussion Questions 1. The first marketing story in the text is about Amazon. Let’s go to Amazon’s Facebook page. W hat stands out about Amazon? Go to Amazon’s other media channels to find examples of how Amazon connects the company and the customers. 2. How does the Amazon shopping experience affect performance? The company has grown astronomically in market share and strength of customer relationships , due largely to its customer satisfaction and customer experience. 3. Why did the authors choose Amazon as the very first company to highlight in the first chapter of the text? How does this opening story relate to the major points made in the rest of the c hapter? (This question should lead naturally into major Chapter 1 concepts: What is marketing and what is the marketing process? What is customer-driven marketing? Why are customer value, customer satisfaction, and customer relationships so important?) Copyright© 20 24 Pearson Education, Inc. 1-2 CHAPTER PRE VIEW Use Power Point Slide 1 Here In this chapter, we introduce the basic concepts of marketing. It starts with the question, “What is marketing ?” Simply put, marketing is managing profitable customer relationships. The aim of marketing is to cr eate value for customers and to capture value from customers in return. Next, the five steps in the marketing process are discussed —from understanding customer needs, to designing customer -driven marketing strategies and integrated marketing programs, to b uilding customer relationships and capturing value for the firm. Finally, there is a discussion of the major trends and forces affecting marketing in this age of digital, mobile, and social media. CHAPTER OBJECTIVES Use Power Point Slide 1 -2 here 1. Define marketing and outline the steps in the marketing process. 2. Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. 3. Identify the key elements of a customer value –driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. 4. Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return. 5. Describe the major trends and f orces that are changing the marketing landscape in this age of relationships. CHAPTER OUTLINE p. 2 INTRODUCTION PPT 1 -3 Opening Vignette Questions 1. The first marketing story in the text is about Amazon. What stands out about Amazon? 2. How does the Amazon shopping experience affect performance? 3. Why did the authors choose Amazon as the very first company to highlight in the first chapter of the text? How does this opening story relate to the major points made in the rest of the chapter? p. 3 Photo: Amazon Copyright© 20 24 Pearson Education, Inc. 1-3 PPT 1 -4 PPT 1 -5 p. 4 p. 5 Define marketing and outline the steps in the marketing process. WHAT IS MARKETING? A simple definition of marketing is engaging customers and managing profitable customer relationships . Marketing must both attract new customers and grow current customers. Every organization must perform marketing functions, not only for-profit companie s. Nonprofits (colleges, hospitals, churches, etc.) also must perform marketing. Marketing Defined Most people think of marketing only as selling and advertising or “telling and selling.” Marketing must focus on satisfying customer needs. We define marketing 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. Learning Objective 1 p. 4 Key Term: Marketing p. 5 Photo: Social media marketing on mobile devices ➢ Troubleshooting Tip For most students, this will be their first introduction to marketing and all its ramifications. To most of them, marketing is nothing more than selling and/or advertising, and this gets reinforced daily when they see “marketing” job ads that are really sa les positions. It helps to get students talking about what marketing is, and to give examples of what they consider good marketing. Try to bring in contemporary examples that the students can relate to. p. 5 PPT 1-7 The Marketing Process Figure 1.1 shows the five -step marketing process. 1. Understand the marketplace and customer needs and wants. 2. Design a customer value -driven marketing strategy. 3. Construct a n integrated marketing program that delivers superior value. p. 6 Figure 1.1: The Marketing Process: Creating and Capturing Customer Value
