Principles of Marketing – Fourth European Edition

Written by: Philip Kotler

Philip Kotler, who created the field of social marketing (marketing which focuses on helping individuals and groups modify their behaviors toward healthier and safer living styles) has authored over 60 marketing books, including Principles of Marketing. The large work has gone through several editions and has been published in both the United States and Europe. Fortunately, for students, the fourth European edition is available, in English, for free online.

While this edition of Principles of Marketing may have been written and published with the European student in mind, it offers a huge amount of great information for any marketing student. After all, with the Internet, our world is smaller than ever before and many of us are developing marketing materials that will be viewed by people from all over the world. The authors note that the text includes examples and case students from Europe, Japan and the USA, among other countries.

Students should keep in mind that there are additional learning materials available from the authors and their publisher. However, these are limited to students who purchase a new textbook. The latest American edition, including access codes is apparently available on Amazon. Previous editions, probably without the access codes, are available at significantly reduced costs. Unfortunately, since the table of contents has not been made public for the 2017, 17th edition, I can’t offer suggestions on how much it might differ from the freely available European edition.


If the European edition does not match the edition you were assigned in class, perhaps the European version offers some case studies and other information that would be excellent starting points for class assignments.

Table of Contents for Principles of Marketing

Part 1: Marketing Now

Chapter 1: Marketing Now
Chapter Objectives
Prelude case: Nike
Introduction
What is marketing?

Needs, wants and demands

The market offering – producs, services and experiences

Value, satisfaction and quality

Exchange, transactions and relationships

Markets

Marketing

Marketing Management

Demand management

Building profitable customer relationships

Marketing management practice

Marketing management philosophies

The production concept

The product concept

The selling concept

The marketing concept

The soceital marketing concept

Marketing Insights 1.1 The citizen bands
Marketing in the noughties
Marketing Insights 1.2 A new dawn?
The marketing process

Strategy, marketing and planning

The marketing setting

Markets

Strategic Marketing

The marketing mix

Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 1 KitKat: Have a break…
Chapter Two: Strategic Marketing
Chapter Objectives
Prelude Case: Poor little rich brands
Introduction
Strategic Planning

Overview of planning

The planning process

The strategic plan

The mission

SWOT analysis

The business portfolio

Marketing Insights 2.2 KISS (Keep It Simple Stupid)

Developing Growth Strategies

Marketing within strategic planning

Planning functional strategies

Marketing’s role in strategic planning

Marketing and the other business functions

The marketing plant

Executive summary

Marketing audit

SWOT analysis

Objectives and issues

Marketing strategy

Marketing mix

Action programmes

Budgets

Controls

Implementation

Marketing organisation
Marketing control

Implementing marketing

Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 2: Starbucks

Part Two: The Marketing Setting

Chapter Three: The marketing environment
chapter objectives
Prelude case: Big food has a lot on its plate
Introduction
The company’s microenvironment

The company

Suppliers

Marketing intermediaries

Customers

Competitors

Publics

The company’s macroenvironment

Demographic environment

Marketing Insights 3.1 We have a say!

Economic environment

Natural environment

Technological environment

Political environment

Cultural environment

Marketing Insights 3.2 Marimekko: Simplicity sells!
Responding to the marketing environment
Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 3 Toyota Prius: green or geek machine?
Chapter four: Marketing in the Internet age
Chapter objectives
Prelude case Cool Diamonds: are they forever?
Introduction
Major forces shaping the Internet age

Digitalisation and connectivity

The Internet explosion

New forms of intermediaries

Customisation and custeromisation

Marketing Insights 4.1 The new dotcom landscape
Marketing strategy in the new digital age

E-business, e-commerce and e-marketing

Benefits to buyer

Benefits to sellers

E-commerce domains

B2C [business to consumer]

B2B [business to business]

C2C [consumer to consumer]

C2B [sonsumer to business]

Conducting e-commerce

Click-only versus click-and-mortar e-marketers

Setting up an e-marketing presence

Marketing Insights 4.2 Viral boosters for Virgin
The promise and challenges of e-commerce

The continuing promise of e-commerce

The Web’s darker side

Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 4 eBay: connecting in China
Chapter five Marketing and society: social responsibility and marketing ethics
Chapter objectives
Prelude case NSPCC: misunderstood introduction
Introduction
Social criticisms of marketing

Marketing’s impact on individual consumers

Marketing’s impact on other businesses

Marketing Insights 5.1 Microsoft: a giant against the world
Citizen and public actions to regulate marketing

Consumerism

Environmentalism

Public actions to regulate marketing

Marketing Insights 5.2 From Plato’s Republic to supermarket slavery
Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 5 Nestle: singled out again and again
Chapter six: The global marketplace
Chapter objectives
Prelude case Jagermeister: Schnapps goes to college
Introduction
Global marketing in the twenty-first century
Looking at the global marketing environment

Understanding the global environment

Deciding whether to go international
Deciding which markets to enter
Marketing Insights 6.1 Emerging markets: going east
Deciding how to enter the market

Exporting

Joint venturing

Direct investment

Deciding on the global marketing programme

Standardisation or adaptation for international markets?

Marketing Insights 6.2 McDonald’s French-style!

Product

Promotion

Price

Global organisation

Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 6 Making the global tipple: soil, climate, aspect and mystique

Part Three: Markets

Chapter Seven: Consumer markets
Chapter objectives
Prelude case Sheba: the pet’s St Valentine’s Day
Introduction
Models of consumer behavior
Characteristics affecting consumer behavior

Cultural factors

Social factors

Personal factors

Psychological factors

Marketing Insights 7.1 ‘Touchy-feely’ research into consumer motivations
Consumer decision process
Types of buying decision behavior

Complex buying behavior

Dissonance-reducing buying behavior

Habitual buying behavior

Variety-seeking buying behavior

The buyer decision process

Need recognition

Marketing Insights 7.2 Pong: marketing’s final frontier

Information search

Evaluation of alternatives

Purchase decision

Postpurchase behavior

The buyer decision process for new products

Stages in the adoption process

Individual differences in innovativeness

Role of personal influence

Influence of product characteristics on rate of adoption

Consumer behavior across international borders
Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 7 Sony Aibo ERS-7c: Grandma’s best friend?
Chapter Eight: Business-to-business marketing
Chapter objectives
Prelude case Concorde is dead. Long live the busjets!
Introduction
Business markets

Characteristics of business markets

A model of business buyer behavior

Business buyer behavior

What buying decisions do business buyers make?

Who participates in the business buying process?

What are the main influences on business buyers?

Marketing Insights 8.1 International marketing manners matter

How do business buyers make their buying decisions?

Business buying on the Internet
Insititutional and government markets

Institutional markets

Government markets

Marketing Insights 8.2 Political graft: wheeze or sleaze?
Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 8 Biofoam: just peanuts?
Chapter Nine: Marketing Research
Chapter objectives
Prelude case Market researching AIDS in Africa: a little achieves the unimaginable
Introduction
The marketing information system
Developing information

Internal records

Marketing intelligence

Competitor intelligence

Marketing research

The marketing research process

Marketing Insights 9.1 Marketing research on the Internet

Demand estimation

Defining the market
Measuring current market demand

Estimating total market demand

Estimating actual sales and market shares

Forecasting future demand

Buyer’s intentions

Composite of sales force opinions

Expert opinion

Marketing Insights 9.2 Sometimes ‘expert opinion’ isn’t all it should be

Test-market method

Time-series analysis

Leading indicators

Statistical demand analysis

Information analysis

Distributing information
International studies
Marketing research in small businesses and non-profit organisations
Market research ethics

Intrustions on consumer privacy

Misuse of research findings

Summary
Applying the concepts
References
Concluding concepts 9 Judy Greene Pottery

Part 4: Core Strategy

Chapter ten Segmentation and positioning
Chapter objectives
Prelude case drivedreamcars.com
Introduction
Market Segmentation

Levels of market segmentation

Marketing Insights 10.1 If it will digitise, it will customise
Segmenting consumer markets

Geometric segmentation

Demographic segmentation

Psychographic segmentation

Behavioral segmentation

Segmenting business marketgs
Segmenting international markets
Multivariate segmentation

Simple multivariate segmentation

Advanced multivariate segmentation

Multistage segmentation

Developing market segments

Requirements for effective segmentation

Market targeting

Evaluating market segments

Segment attractiveness

Business strengths

Selecting market segments

Segment strategy

Undifferentiated marketing

Differentiated marketing

Concentrated marketing

Choosing a market-coverage strategy

Core strategy
Differentiation
Marketing Insights 10.2 Shott:positioning for success

Differentiating markets

Product positioning
Positioning strategies
MArketing Insights 10.3 The place is the thing
Choosing and implementing a positioning strategy

Selecting the right competitive advantages

Communicating and delivering the chosen position

Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 10 Coffee-Mate
Chapter Eleven: Relationship marketing
Chapter objectives
Prelude case ‘The most important part of the car is the distributor’
Introduction
Satisfying customer needs
Defining customer value and satisfaction

Customer value

Customer satisfaction

Tracking customer satisfaction

Marketing Insights 11.1 Cold turkey has got me on the run
Delivering customer value and satisfaction

Value chain

Total quality management

Customer value

Customer retention

Relationship marketing
Marketing Insights 11.2 Network marketing: we are not alone

Customer relationship management

When to use relationship marketing

Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 11 National Gummi AB
Chapter Twelve: Competitive strategy
Chapter objectives
Prelude case PS2 meets the X-box: certainly not all fun and games
Introduction
Competitor analysis

Identifying the company’s objectives

Determining the competitors’ objectives

Identifying the competitors’ strengths

Designing the competitive intelligence system

Competitive strategies

Compeititve positions

Competitive moves

Market-leader strategies

Market-challenger strategies

Market-follower strategies

Market-nicher strategies

Marketing Insights 12.2 Concentrated marketing: nice niches
Balancing customer-competitor orientations
Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 12 The mobile maelstrom

Part Five: Product

Chapter Thirteen: Product and branding strategy
Chapter objectives
Prelude case L’Oreal: are you worth it?
Introduction
What is a product?

Levels of product

Product classifications

Product decisions

Individual product decisions

Product-line decisions

Product-mix decisions

Branding strategy: building strong brands

Brand equity

Marketing Insights 13.1 Brands: what are they worth?
Marketing Insights 13.2 Trademarks worth fighting for!

Managing brands

Additional product considerations

Product decisions and social responsibility

International product decisions

Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 13 Colgate: one squeeze too many?
Chapter fourteen: New-product development and product life-cycle strategies
Chapter objectives
Prelude case Nokia: games on bu not having fun!
Introduction
Innovation and new-product development stategy

Risks and returns in new-product development

Why do new products fail?

What influences new product success?

Marketing Insights 14.1 3M:champions of innovation
New-product development process

New-product strategy

Idea generation

Idea screening

Concept development and testing

Marketing strategy development

Business analysis

Product development

Test marketing

Commercialisation

Organising for new-product development

Product life-cycle strategies

Introduction stage

Growth stage

Maturity stage

Decline stage

Marketing Insights 14.2 Smile! Leica takes you back to the good old days
Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 14 Red Bull: waking a new market
Chapter fifteen: Marketing services
Chapter objectives
Prelude case Stena Line: sailing out of troubled waters
Introduction
Nature and characteristics of a service

Defining services and the service mix

Service characteristics

Marketing strategies for service firms

The service-profit chaing

Managing differentiation

Marketing Insights 15.1 British Airways: no long haul for callers!

Managing service quality

Managing productivity

International services marketing
Marketing Insights 15.2 Office Tiger
Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 15 The Ritz

Part Six: Price

Chapter Sixteen: Pricing
Chapter objectives
Prelude case The Oresund Bridge: over or under, down and out, again and again
Introduction
What is price?
Factors to consider when setting prices

Internal factors affecting pricing decisions

External factors affecting pricing decisions

Marketing Insights 16.1 Economic Value Added
General pricing approaches

Cost-based pricing

Value-based pricing

Competition-based pricing

New-product pricing strategies

Market-skimming pricing

Market-penetration pricing

Product-mix pricing strategies

Product line pricing

Optional-product pricing

Captive-product pricing

By-product pricing

Product-bundle pricing

Price-adjustment strategies

Discount and allowance pricing

Segmented pricing

Marketing Insights 16.2 Back to the future: pricing on the Web

Psychological pricing

Promotional pricing

Geographical pricing

International pricing

Price changes

Initiating price changes

Responding to price changes

Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 16 easyJet: easy come, easy go

Part Seven: Promotion

Chapter Seventeen: Integrated marketing communications strategy
Chapter objectives
Prelude case Cadbury’s Dairy Milk: staying at the top of the chocolate tree
Introduction
Integrated marketing communications

The changing communications environment

Marketing Insights 17.1 Outdoor campaigns staying ‘cool’ after all this time

The need for integrated marketing communications

A view of the communication process
Steps in developing effective communication

Identifying the target audience

Determining the communication objectives

Designing a message

Choosing media

Collecting feedback

Setting the total promotion budget and mix

Setting the total promotion budget

Setting the promotion mix

Integrating the promotion mix

Socially responsible marketing communication
Advertising and sales promotion
Marketing Insights 17.2 Promoting health on the Internet: for whose eyes only?

Personal selling

Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 17 Absolut Vodka: Samantha and the Hunk on the Level
Chapter Eighteen: Advertising, sales promotion and public relations
Chapter objectives
Prelude case Proctor & Gamble: feeling the heat
Introduction
Advertising
Marketing Insights 18.1 Why pay with hard cash? Bartering will do!

Evaluating advertising

Ohter advertising considerations

Organising for advertising

International advertising decisions

Sales promotion

Rapid growth of sales promotion

Setting sales promotion objectives

Major sales promotion tools

Developing the sales promotion programme

Public relations

The role and impact of public relations

Major public relations tools

Marketing Insights 18.2 Samsung’s cool ‘matrix’ values
Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 18 Ninety per cent of spend wasted
Chapter Nineteen: Personal selling and direct marketing
Chapter objectives
Prelude case MD Foods AMBA: rethinking its sales force strategy and structure
Introduction
Personal selling

The nature of personal selling

The role of the sales force

Managing the sales force

Setting sales force objectives

Designing sales force strategy and structure

Recruiting and selecting salespeople

Training salespeople

Supervising salespeople

Evaluating salespeople

The personal selling process

Steps in the selling process

Personal selling and customer relationship management

Marketing Insights 19.1 Cross-cultural selling: in search of universal values
Direct Marketing

The new direct-marketing model

Benefits and growth of direct marketing

The benefits of direct marketing

The growth of direct marketing

Customer databases and direct marketing
Marketing Insights 19.2 Database growth: a wealth of information, but a poverty of customer attention
Forms of direct marketing

Telephone marketing

Direct-mail marketing

Catalogue marketing

Direct-response television marketing

Integrated direct marketing

Public policy and ethical issues in direct marketing

Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 19 Britcraft Jetprop: whose sale is it anyhow?

Part Eight: Place

Chapter Twenty: Managing marketing channels
Chapter objectives
Prelude case Dell Corporation
Introduction
Supply chains and the value delivery network
The nature and importance of marketing channels

How channel members add value

Number of channel levels

Channel behavior and organisation

Channel behavior

Channel organisation

MArketing Insights 20.1 Mail Box Etc: signed, sealed and delivered
Channel design decisions

Analysing customer service needs

Setting channel objectives

Identifying major alternatives

Evaluating the main alternatives

Designing international distribution channels

Channel management decisions

Selecting channel members

Managing and motivating channel members

Evaluating channel members

Marketing logistics and supply chain management

The nature and importance of marketing logistics

Goals of the logistics system

Major logistics functions

Integrated logistics management

Channel trends

Retailing and wholesaling trends

Marketing Insights 20.2 Retail giants: coming to terms with the global marketplace
Summary
Discussing the issues
Applying the concepts
References
Concluding concepts 20 Pieta luxury chocolates
Glossary
Subject index
Company index
   

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Principles of Marketing – Fourth European Edition

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