Preface
The Seventeenth Edition of Kotler/Armstrong¡¯s Principles of Marketing! Setting the World Standard in Marketing Education
These are exciting times in marketing. Recent surges in digital technologies have created a new, more engaging, more connected marketing world. Beyond traditional tried-and-true marketing concepts and practices, today¡¯s marketers have added a host of new-age tools for engaging consumers, building brands, and creating customer value and relationships. In these digital times, sweeping advances in ¡°the Internet of Things¡±¡ªfrom social and mo- bile media, connected digital devices, and the new consumer empowerment to ¡°big data¡± and new marketing analytics¡ªhave profoundly affected both marketers and the consum- ers they serve.
All around the world¡ªacross five continents, more than 40 countries, and 24 languages¡ªstudents, professors, and business professionals have long relied on Kotler/ Armstrong¡¯s Principles of Marketing as the most-trusted source for teaching and learning about the latest developments in basic marketing concepts and practices. More than ever, the seventeenth edition introduces new marketing students to the fascinating world of modern marketing in a complete and authoritative yet fresh, practical, and engaging way.
Once again, we¡¯ve added substantial new content and poured over every page, table, figure, fact, and example in order to make this the best text from which to learn about and teach marketing. Enhanced by MyMarketingLab, our online homework and personalized study tool, the seventeenth edition of Principles of Marketing remains the world standard in introductory marketing education.
Marketing: Creating Customer Value and Engagement in the Digital and Social Age
Top marketers share a common goal: putting the consumer at the heart of marketing. To- day¡¯s marketing is all about creating customer value and engagement in a fast-changing, increasingly digital and social marketplace.
Marketing starts with understanding consumer needs and wants, determining which target markets the organization can serve best, and developing a compelling value proposi- tion by which the organization can attract and grow valued consumers. Then, more than just making a sale, today¡¯s marketers want to engage customers and build deep customer relationships that make their brands a meaningful part of consumers¡¯ conversations and lives.
In this digital age, to go along with their tried-and-true traditional marketing methods, marketers have a dazzling set of new online, mobile, and social media tools for engaging customers anytime, anyplace to jointly shape brand conversations, experiences, and commu- nity. If marketers do these things well, they will reap the rewards in terms of market share, profits, and customer equity. In the seventeenth edition of Principles of Marketing, you¡¯ll learn how customer value and customer engagement drive every good marketing strategy.
What¡¯s New in the Seventeenth Edition?
We¡¯ve thoroughly revised the seventeenth edition of Principles of Marketing to reflect the major trends and forces that affect marketing in this digital age of customer value, engage- ment, and relationships. Here are just some of the major and continuing changes you¡¯ll find in this edition.
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? The seventeenth edition adds fresh coverage in both traditional marketing areas and
on fast-changing and trending topics such as customer engagement marketing, mobile
and social media, big data and the new marketing analytics, the Internet of Things,
omni-channel marketing and retailing, customer co-creation and empowerment, real-
time customer listening and marketing, building brand community, marketing content
creation and native advertising, B-to-B social media and social selling, monetizing
social media, tiered and dynamic pricing, consumer privacy, sustainability, global
marketing, and much more.
? This new edition continues to build on its customer engagement framework¡ªcreating
direct and continuous customer involvement in shaping brands, brand conversations,
brand experiences, and brand community. New coverage and fresh examples through-
out the text address the latest customer engagement tools, practices, and develop-
ments. See especially Chapter 1 (refreshed sections on Customer Engagement and Today¡¯s
Digital and Social Media and Consumer-Generated Marketing); Chapter 4 (big data and
real-time research to gain deeper customer insights); Chapter 5 (creating social influ-
ence and customer community through digital and social media marketing); Chapter
9 (customer co-creation and customer-driven new-product development); Chapter 13
(omni-channel retailing); Chapters 14 and 15 (marketing content curation and native
advertising); Chapter 16 (sales force social selling); and Chapter 17 (direct digital, on-
line, social media, and mobile marketing).
? No area of marketing is changing faster than online, mobile, social media, and other
digital marketing technologies. Keeping up with digital concepts, technologies, and
practices has become a top priority and major challenge for today¡¯s marketers. The
seventeenth edition of Principles of Marketing provides thoroughly refreshed, up-to-
date coverage of these explosive developments in every chapter¡ªfrom online, mobile,
and social media engagement technologies discussed in Chapters 1, 5, 14, 15, and 17
to ¡°real-time listening¡± and ¡°big data¡± research tools in Chapter 4, real-time dynamic
pricing in Chapter 11, omni-channel retailing in Chapter 13, and social selling in
Chapter 16. A Chapter 1 section on The Digital Age: Online, Mobile, and Social Media
Marketing introduces the exciting new developments in digital and social media mar-
keting. Then a Chapter 17 section on Direct, Online, Social Media, and Mobile Marketing
digs more deeply into digital marketing tools such as online sites, social media, mobile
ads and apps, online video, email, blogs, and other digital platforms that engage con-
sumers anywhere, anytime via their computers, smartphones, tablets, internet-ready
TVs, and other digital devices.
? The seventeenth edition continues to track fast-changing developments in marketing
communications and the creation of marketing content. Marketers are no longer sim-
ply creating integrated marketing communications programs; they are joining with
customers and media to curate customer-driven marketing content in paid, owned,
earned, and shared media. You won¡¯t find fresher coverage of these important topics
in any other marketing text.
? The seventeenth edition of Principles of Marketing continues to improve on its innova-
tive learning design. The text¡¯s active and integrative presentation includes learning
enhancements such as annotated chapter-opening stories, a chapter-opening objective
outline, explanatory author comments on major chapter sections and figures, and Real
Marketing highlights that provide in-depth examples of marketing concepts and prac-
tices at work. The chapter-opening layout helps to preview and position the chapter
and its key concepts. Figures annotated with author comments help students to sim-
plify and organize chapter material. New and substantially revised end-of-chapter fea-
tures help to summarize important chapter concepts and highlight important themes,
such as marketing ethics, financial marketing analysis, and online, mobile, and social
media marketing. This innovative learning design facilitates student understanding
and eases learning.
? The seventeenth edition provides 18 new end-of-chapter company cases by which stu-
dents can apply what they learn to actual company situations. It also features 16 new
video cases, with brief end-of-chapter summaries and discussion questions. Finally, all
of the chapter-opening stories, Real Marketing highlights, and end-of-chapter features
in the seventeenth edition are either new or revised.
? New material throughout the seventeenth edition highlights the increasing importance
of sustainable marketing. The discussion begins in Chapter 1 and ends in Chapter 20,
Preface xvii
which pulls marketing together under a sustainable marketing framework. In be- tween, frequent discussions and examples show how sustainable marketing calls for socially and environmentally responsible actions that meet both the immediate and the future needs of customers, companies, and society as a whole.
? The seventeenth edition provides new discussions and examples of the growth in global marketing. As the world becomes a smaller, more competitive place, marketers face new global marketing challenges and opportunities, especially in fast-growing emerging markets such as China, India, Brazil, Africa, and others. You¡¯ll find much new coverage of global marketing throughout the text, starting in Chapter 1 and dis- cussed fully in Chapter 19.
Five Major Customer Value and Engagement Themes
The seventeenth edition of Principles of Marketing builds on five major customer value and engagement themes:
1. Creating value for customers in order to capture value from customers in return. Today¡¯s marketers must be good at creating customer value, engaging customers, and manag- ing customer relationships. Outstanding marketing companies understand the marketplace and customer needs, design value-creating marketing strategies, develop integrated marketing programs that engage customers and deliver value and satisfaction, and build strong customer relationships and brand community. In return, they capture value from customers in the form of sales, profi and customer equity.
This innovative customer-value and engagement framework is introduced at the start of Chapter 1 in a fi marketing process model, which details how mar- keting creates customer value and captures value in return. The framework is care- fully developed in the fi two chapters and then fully integrated throughout the remainder of the text.
2. Customer Engagement and Today¡¯s Digital and Social Media. New digital and so- cial media have taken today¡¯s marketing by storm, dramatically changing how com- panies and brands engage consumers and how consumers connect and infl
each other¡¯s brand behaviors. The seventeenth edition introduces and thoroughly explores the contemporary concept of customer engagement marketing and the excit- ing new digital and social media technologies that help brands to engage customers more deeply and interactively. It starts with two major Chapter 1 sections: Customer Engagement and Today¡¯s Digital and Social Media and The Digital Age: Online, Mobile, and Social Media. A refreshed Chapter 17 on Direct, Online, Social Media, and Mobile Marketing summarizes the latest developments in digital engagement and relation- ship-building tools. Everywhere in between, you¡¯ll fi revised and expanded cov- erage of the exploding use of digital and social tools to create customer engagement and build brand community.
3. Building and managing strong, value-creating brands. Well-positioned brands with strong brand equity provide the basis upon which to build customer value and profit- able customer relationships. Today¡¯s marketers must position their brands powerfully and manage them well to create valued brand experiences. The seventeenth edition provides a deep focus on brands, anchored by a Chapter 8 section on Branding Strategy: Building Strong Brands.
4. Measuring and managing return on marketing. Especially in uneven economic times, marketing managers must ensure that their marketing dollars are being well spent. In the past, many marketers spent freely on big, expensive marketing pro- grams, often without thinking carefully about the fi returns on their spend- ing. But all that has changed rapidly. ¡°Marketing accountability¡±¡ªmeasuring and managing marketing return on investment¡ªhas now become an important part of strategic marketing decision making. This emphasis on marketing accountability is addressed in Chapter 2, in Appendix 2 (Marketing by the Numbers), and throughout the seventeenth edition.
5. Sustainable marketing around the globe. As technological developments make the world an increasingly smaller and more fragile place, marketers must be good at mar- keting their brands globally and in sustainable ways. New material throughout the
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seventeenth edition emphasizes the concepts of global marketing and sustainable marketing¡ªmeeting the present needs of consumers and businesses while also preserv- ing or enhancing the ability of future generations to meet their needs. The seventeenth edition integrates global marketing and sustainability topics throughout the text. It then provides focused coverage on each topic in Chapters 19 and 20, respectively.
An Emphasis on Real Marketing and Bringing Marketing to Life
Principles of Marketing, seventeenth edition, takes a practical marketing-management ap- proach, providing countless in-depth, real-life examples and stories that engage students with marketing concepts and bring modern marketing to life. In the seventeenth edition, every chapter has an engaging opening story plus Real Marketing highlights that provide fresh insights into real marketing practices. Learn how:
? Samsung¡¯s passion for creating superb online customer experiences has made it a poster child for direct and digital marketing.
? Nestl¨¦ has set up a customer-driven new product development process for finding and growing new market offerings while living up to its vision to make its products tastier and healthier.
? Apple¡¯s outstanding success has never been about prices; it¡¯s always been about creat- ing ¡°life-feels-good¡± user experiences that make its products fly off the shelves despite their premium prices.
? Emirates became a lifestyle brand by changing the way it reached out to customers. It framed itself as connecting peoples and cultures, creating meaningful experiences.
? Lenovo¡¯s global success is rooted in its deep and sound understanding of customers and its ability to build profitable relationships. Its business model is thus built on cus- tomer satisfaction, innovation, and operational efficiency.
? Philips has realized that assessing multiple factors for change is vital to the under- standing of current and probable future shifts in a marketing environment that is continuously shifting.
? Ferrero successfully analyzes and uses marketing information and customer insights to better tailor its offerings to the local market.
? Zara¡¯s control of the entire distribution chain, from design and production to its own worldwide distribution network, has turned the brand into the world¡¯s fastest- growing retailer.
? App-based car sharing service Uber is radically reshaping urban transportation chan- nels in cities around the globe, but it is now facing stiff competition from local rivals like Careem.
? Industrial giant GE has unleashed a remarkable array of digital and social me- dia content that connects the brand with its business customers and positions the 130-year-old company as a youthful, contemporary technology leader in the new digital industrial era.
? High-flying Mountain Dew is ¡°Doin¡¯ the Dew¡± with brand superfans to build a pas- sionately loyal and engaged brand community. It doesn¡¯t just market to customers; it makes them partners in building the brand.
Beyond such features, each chapter is packed with countless real, engaging, and timely ex- amples that reinforce key concepts. No other text brings marketing to life like the seventeenth edition of Principles of Marketing.
Learning Aids That Create Value and Engagement
Preface xix
A wealth of chapter-opening, within-chapter, and end-of-chapter learning devices help stu- dents to learn, link, and apply major concepts:
? Integrated chapter-opening preview sections. The active and integrative chapter-opening spread in each chapter starts with a Chapter Preview, which briefly previews chapter concepts, links them with previous chapter concepts, and introduces the chapter- opening story. This leads to a chapter-opening vignette¡ªan engaging, deeply devel- oped, illustrated, and annotated marketing story that introduces the chapter material and sparks student interest. Finally, an Objective Outline provides a helpful preview of chapter contents and learning objectives, complete with page numbers.
? Real Marketing highlights. Each chapter contains two carefully developed highlight features that provide an in-depth look at real marketing practices of large and small companies.
? Author comments and figure annotations. Each figure contains author comments that ease student understanding and help organize major text sections.
? Reviewing and Extending the Concepts. Sections at the end of each chapter summarize key chapter concepts and provide questions and exercises by which students can review and apply what they¡¯ve learned. The Objectives Review and Key Terms section reviews major chapter concepts and links them to chapter objectives. It also provides a helpful listing of chapter key terms by order of appearance with page numbers that facilitate easy reference. A Discussion and Critical Thinking section provides discussion questions and critical thinking exercises that help students to keep track of and apply what they¡¯ve learned in the chapter.
? Applications and Cases. Brief Online, Mobile, and Social Media Marketing; Marketing Ethics;
and Marketing by the Numbers sections at the end of each chapter provide short applications cases that facilitate discussion of current issues and company situations in areas such as mobile and social marketing, ethics, and financial marketing analysis. End-of-chapter Company Case sections provide all-new or revised company cases that help students to apply major marketing concepts to real company and brand situations.
? Marketing Plan appendix. Appendix 1 contains a sample marketing plan that helps stu- dents to apply important marketing planning concepts.
? Marketing by the Numbers appendix. An innovative Appendix 2 provides students with a comprehensive introduction to the marketing financial analysis that helps to guide, assess, and support marketing decisions. An exercise at the end of each chapter lets students apply analytical and financial thinking to relevant chapter concepts and links the chapter to the Marketing by the Numbers appendix.
More than ever before, the seventeenth edition of Principles of Marketing creates value
and engagement for you¡ªit gives you all you need to know about marketing in an effective and enjoyable total learning package!
A Total Teaching and Learning Package
A successful marketing course requires more than a well-written book. Today¡¯s classroom requires a dedicated teacher, well-prepared students, and a fully integrated teaching sys- tem. A total package of teaching and learning supplements extends this edition¡¯s emphasis on creating value and engagement for instructor.
