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This is a special edition of an established title widely used by colleges and
GLOBAL universities throughout the world. Pearson published this exclusive edition
for the benefit of students outside the United States and Canada. If you
GLOBAL
EDITION purchased this book within the United States or Canada, you should be aware EDITION
EDITION
GLOB AL
that it has been imported without the approval of the Publisher or Author.
Principles of Marketing
Principles of Marketing presents a comprehensive overview of basic marketing concepts, strategies,
and practices within a customer engagement framework, which shows how creating and capturing
customer value drives effective marketing strategies.
The nineteenth edition continues to reflect the trends and shifting forces that impact marketing, with
added discussions on major digital transformations in marketing research; omni-channel marketing;
Principles of Marketing
real-time customer listening and marketing; and digital, mobile, and social media marketing. It also
includes new coverage of how companies are dealing with recent disruptions in the marketing NINETEENTH EDITION
environment, such as the rapid rise of digital technologies, large economic swings, extreme
environmental patterns, and global health crises.
Key Features
Philip Kotler
• NEW and UPDATED—Each chapter contains a chapter-opening vignette and two Real
Marketing features that provide engaging marketing stories of real companies, with a special focus on
brand marketing strategies and contemporary marketing issues across the globe.
Gary Armstrong
• NEW and UPDATED—A Company Case concludes each chapter and prompts students to
apply marketing concepts and critical thinking to challenges faced by real companies and brands.
Sridhar Balasubramanian
• NEW and REVISED—Chapter 17 is now a standalone digital marketing strategy chapter,
NINETEENTH
organized around a four-step digital marketing process. Updated with new organizing frameworks,
EDITION
concepts, and examples, Chapters 19 and 20 offer focused coverage of global and sustainable
marketing.
• NEW—Care has been taken to ensure that the interests of diversity, equity, and inclusion (DEI)
are responsibly represented in the treatment of marketing topics, examples, and illustrations.
Discussions on gender segmentation and gender-neutral marketing, DEI in advertising, and
subcultures show how marketers are applying DEI values in their strategies and actions.
Balasubramanian
Armstrong
Kotler
Available separately for purchase is MyLab Marketing for Principles of Marketing, the teaching and
learning platform that empowers instructors to personalize learning for every student. When
combined with Pearson’s trusted educational content, this optional suite helps deliver the desired
learning outcomes.
Philip Kotler
Northwestern University
Gary Armstrong
University of North Carolina
Sridhar Balasubramanian
University of North Carolina
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have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
Authorized adaptation from the United States edition, entitled Principles of Marketing, 19th Edition, ISBN 978-0-13-
786489-8 by Philip Kotler, Gary Armstrong, and Sridhar Balasubramanian, published by Pearson Education © 2024.
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Preface 15
Glossary 678
References 689
Index 738
7
CHAPTER 1 Marketing: Creating Customer Value with Others in the Marketing System 69
Marketing Strategy and the Marketing Mix 69
and Engagement 24 Customer Value–Driven Marketing Strategy 70 | Developing an
Integrated Marketing Mix 74
What Is Marketing? 26 Managing the Marketing Effort and Marketing Return on
Marketing Defined 27 | The Marketing Process 27
Investment 75
Understanding the Marketplace and Customer Needs 28 Managing the Marketing Effort 75 | Measuring and Managing
Customer Needs, Wants, and Demands 28 | Market
Marketing Return on Investment 79
Offerings—Products, Services, Solutions, and
REVIEWING AND EXTENDING THE CONCEPTS 81 | Objectives
Experiences 29 | Customer Value and Satisfaction 31 |
Review 81 | Key Terms 82 | Discussion Questions 82 | Critical Thinking
Exchanges and Relationships 31 | Markets 31 Exercises 82 | APPLICATIONS AND CASES 82 | Digital Marketing:
Designing a Customer Value–Driven Marketing Lush UK Abandons Social Media 82 | Marketing Ethics: Pharrell Williams’
Strategy and Plan 32 Humanrace Brand 83 | Marketing by the Numbers: Alphabet versus
Customer Value–Driven Marketing Strategy 32 | Preparing an Meta 83 | Company Case: DuPont: Improving Everyday Life by Solving the
Integrated Marketing Mix 36 World’s Most Challenging Problems 84
Managing Customer Relationships and Capturing
Customer Value 36
Part 2: Understanding the Marketplace and
Engaging Customers and Managing Customer Relation-
Consumer Value 86
ships 36 | Capturing Value from Customers 41
Differentiation and Positioning 234 Review 306 | Key Terms 306 | Discussion Questions 307 | Critical Thinking
Positioning Maps 234 | Choosing a Differentiation and Exercises 307 | APPLICATIONS AND CASES 307 | Digital Marketing:
Positioning Strategy 235 | Communicating and Delivering the Barbie in the Digital Age 307 | Marketing Ethics: Space Tourism 307 |
Chosen Position 240 Marketing by the Numbers: Dental House Calls 308 | Company Case:
Toyota: Developing a Million New Product Ideas Every Year 308
REVIEWING AND EXTENDING THE CONCEPTS 240 | Objectives
Review 240 | Key Terms 241 | Discussion Questions 241 | Critical
Thinking Exercises 242 | APPLICATIONS AND CASES 242 | Digital
Marketing: Using Social Media for Inclusive Hyperlocal Segmentation 242|
CHAPTER 10 Pricing: Understanding and
Marketing Ethics: Cameo: Do the Celebrity Connections Reinforce Gender Capturing Customer Value 310
Pay Gaps? 242 | Marketing by the Numbers: At-Home Workouts 243 |
Company Case: Outschool: Personalized Education for All 243 What Is Price? 312
Major Pricing Strategies 313
CHAPTER 8 Products, Services, and Brands: Customer Value–Based Pricing 313 | Cost-Based Pricing 317 |
Competition-Based Pricing 321
Building Customer Value 246 Other Internal and External Considerations Affecting Price
Decisions 323
What Is a Product? 248 Overall Marketing Strategy, Objectives, and Mix 323 | Organi-
Products, Services, and Experiences 248 | Levels of Product zational Considerations 325 | The Market and Demand 325 |
and Services 249 | Product and Service Classifications 250 The Economy 327 | Other External Factors 328
Product and Service Decisions 253 REVIEWING AND EXTENDING THE CONCEPTS 328 | Objectives
Individual Product and Service Decisions 253 | Product Line Review 328 | Key Terms 329 | Discussion Questions 330 | Critical Thinking
Decisions 259 | Product Mix Decisions 260 Exercises 330 | APPLICATIONS AND CASES 330 | Digital Marketing:
Services Marketing 261 Intuit QuickBooks 330 | Marketing Ethics: Should Large Passengers Pay
The Nature and Characteristics of a Service 261 | Marketing More for Airline Tickets? 331 | Marketing by the Numbers: Rock Bottom
Strategies for Service Firms 263 | The Service Profit Chain 263 Promotional Pricing 331 | Company Case: Gillette: Searching for the Right
Price in a Volatile Market 331
Branding Strategy: Building Strong Brands 266
Brand Equity and Brand Value 268 | Building Strong
Brands 269 | Managing Brands 277
REVIEWING AND EXTENDING THE CONCEPTS 277 | Objectives
CHAPTER 11 Pricing Strategies: Advanced
Review 277 | Key Terms 278 | Discussion Questions 279 | Critical Topics 334
Thinking Exercises 279 | APPLICATIONS AND CASES 279 | Digital
Marketing: Dyson: A Formula for Brand Extension 279 | Marketing Ethics: New Product Pricing Strategies 336
Cutthroat Prices 279 | Marketing by the Numbers: Coca-Cola Considers Market-Skimming Pricing 336 | Market-Penetration Pricing 336
the Cost of Cannibalization 280 | Company Case: Avocados From Mexico: Product Mix Pricing Strategies 337
Building a Brand in a Brandless Category 280 Product Line Pricing 337 | Optional-Product Pricing 338 |
Captive-Product Pricing 338 | By-Product Pricing 339 |
Channel Members 381 | Evaluating Channel Members 382 | for Integrated Marketing Communications 438
Public Policy and Distribution Decisions 382 Developing Effective Marketing Communication 441
Marketing Logistics and Supply Chain Management 383 A View of the Communication Process 441 | Steps in Devel-
Nature and Importance of Marketing Logistics 383 | Sustain- oping Effective Marketing Communication 443 | Nonpersonal
able Supply Chains 386 | Goals of the Logistics System 387 | Communication Channels 446
Major Logistics Functions 387 | Integrated Logistics Setting the Total Promotion Budget and Mix 447
Management 390 Setting the Total Promotion Budget 447 | Shaping the Overall
Promotion Mix 449 | Integrating the Promotion Mix 451 |
REVIEWING AND EXTENDING THE CONCEPTS 392 | Objectives
Review 392 | Key Terms 393 | Discussion Questions 393 | Critical Socially Responsible Marketing Communication 451
Thinking Exercises 394 | APPLICATIONS AND CASES 394 | Digital REVIEWING AND EXTENDING THE CONCEPTS 454 | Objectives
Marketing: Members Only? 394 | Marketing Ethics: Ethical Sourc- Review 454 | Key Terms 454 | Discussion Questions 455 | Critical Thinking
ing 394 | Marketing by the Numbers: Drinking from the Source 395 | Exercises 455 | APPLICATIONS AND CASES 455 | Digital Marketing: “Your
Company Case: Weyerhaeuser: Riding Out the Supply Chain Table Is Ready” 455 | Marketing Ethics: It’s a Powerful Thing to Be Seen 455 |
Storm 395 Marketing by the Numbers: Never-Ending Cola War 456 | Company Case:
Nestlé: Integrating Marketing Communication into Daily Operations 456
The New Digital Marketing Model 517 | Benefits of Digital Deciding on the Global Marketing Program 592
Marketing to Buyers and Sellers 518 Product 593 | Promotion 595 | Price 597 | Distribution
Knowing the Digital Consumer 520 | Understanding Consumer Deciding on the Global Marketing Organization 598
Omni-Channel Navigation Behavior 521 | Using Experimenta- REVIEWING AND EXTENDING THE CONCEPTS 599 | Objectives
tion to Understand What Works 522 Review 599 | Key Terms 600 | Discussion Questions 600 | Critical
Thinking Exercises 601 | APPLICATIONS AND CASES 601 | Digital
Employing Digital Channels in an Omni-Channel
Marketing: Customized Shoes from Nike by You 601 | Marketing Ethics:
Strategy 523
Unlicensed and Counterfeit Products 601 | Marketing by the Numbers:
Online Marketing 523 | Social Media Marketing 528 | Mobile
Peloton Pedals to Australia 602 | Company Case: Huawei: Running the
Marketing 533 | Creating an Integrated Omni-Channel
Global Telecommunications Race 602
Strategy 536
Public Policy Issues in Digital Marketing 538
REVIEWING AND EXTENDING THE CONCEPTS 543 | Objectives
CHAPTER 20 Sustainable Marketing: Social
Review 543 | Key Terms 544 | Discussion Questions 544 | Critical
Responsibility and Ethics 604
Thinking Exercises 544 | APPLICATIONS AND CASES 545 | Digital
Marketing: Can Social Media Raise Awareness of Uniqlo in the United Sustainable Marketing 606
States? 545 | Marketing Ethics: Customized Insurance 545 | Marketing Social Criticisms of Marketing 607
by the Numbers: Uniqlo’s Fast-Moving Image Campaign 545 | Company Marketing’s Impact on Individual Consumers 608 |
Case: Instagram: A Win-Win-Win for the Company, Advertisers, and Marketing’s Impact on Society as a Whole 612 | Marketing’s
Instagrammers 546 Impact on Other Businesses 614
T
he sun’s moved to Jersey, the sun’s
behind Hoboken.
Covers are clicking on typewriters, rolltop
desks are closing; elevators go up empty,
come down jammed. It’s ebbtide in the
downtown district, flood in Flatbush,
Woodlawn, Dyckman Street, Sheepshead
Bay, New Lots Avenue, Canarsie.
Pink sheets, green sheets, gray sheets,
FULL MARKET REPORTS, FINALS ON
HAVRE DE GRACE. Print squirms among
the shopworn officeworn sagging faces, sore
fingertips, aching insteps, strongarm men
cram into subway expresses. SENATORS 8,
GIANTS 2, DIVA RECOVERS PEARLS,
$800,000 ROBBERY.
It’s ebbtide on Wall Street, floodtide in the
Bronx.
The sun’s gone down in Jersey.
“G
odamighty,” shouted Phil Sandbourne and pounded with his
fist on the desk, “I don’t think so.... A man’s morals arent
anybody’s business. It’s his work that counts.”
“Well?”
“Well I think Stanford White has done more for the city of New
York that any other man living. Nobody knew there was such a thing
as architecture before he came.... And to have this Thaw shoot him
down in cold blood and then get away with it.... By gad if the people
of this town had the spirit of guineapigs they’d——”
“Phil you’re getting all excited over nothing.” The other man took
his cigar out of his mouth and leaned back in his swivel chair and
yawned.
“Oh hell I want a vacation. Golly it’ll be good to get out in those
old Maine woods again.”
“What with Jew lawyers and Irish judges ...” spluttered Phil.
“Aw pull the chain, old man.”
“A fine specimen of a public-spirited citizen you are Hartly.”
Hartly laughed and rubbed the palm of his hand over his bald
head. “Oh that stuff’s all right in winter, but I cant go it in summer....
Hell all I live for is three weeks’ vacation anyway. What do I care if all
the architects in New York get bumped off as long as it dont raise the
price of commutation to New Rochelle.... Let’s go eat.” As they went
down in the elevator Phil went on talking: “The only other man I ever
knew who was really a born in the bone architect was ole Specker,
the feller I worked for when I first came north, a fine old Dane he was
too. Poor devil died o cancer two years ago. Man, he was an
architect. I got a set of plans and specifications home for what he
called a communal building.... Seventyfive stories high stepped back
in terraces with a sort of hanging garden on every floor, hotels,
theaters, Turkish baths, swimming pools, department stores, heating
plant, refrigerating and market space all in the same buildin.”
“Did he eat coke?”
“No siree he didnt.”
They were walking east along Thirtyfourth Street, sparse of
people in the sultry midday. “Gad,” burst out Phil Sandbourne,
suddenly. “The girls in this town get prettier every year. Like these
new fashions, do you?”
“Sure. All I wish is that I was gettin younger every year instead of
older.”
“Yes about all us old fellers can do is watch em go past.”
“That’s fortunate for us or we’d have our wives out after us with
bloodhounds.... Man when I think of those mighthavebeens!”
As they crossed Fifth Avenue Phil caught sight of a girl in a
taxicab. From under the black brim of a little hat with a red cockade
in it two gray eyes flash green black into his. He swallowed his
breath. The traffic roars dwindled into distance. She shant take her
eyes away. Two steps and open the door and sit beside her, beside
her slenderness perched like a bird on the seat. Driver drive to beat
hell. Her lips are pouting towards him, her eyes flutter gray caught
birds. “Hay look out....” A pouncing iron rumble crashes down on him
from behind. Fifth Avenue spins in red blue purple spirals. O Kerist.
“That’s all right, let me be. I’ll get up myself in a minute.” “Move along
there. Git back there.” Braying voices, blue pillars of policemen. His
back, his legs are all warm gummy with blood. Fifth Avenue throbs
with loudening pain. A little bell jinglejangling nearer. As they lift him
into the ambulance Fifth Avenue shrieks to throttling agony and
bursts. He cranes his neck to see her, weakly, like a terrapin on its
back; didnt my eyes snap steel traps on her? He finds himself
whimpering. She might have stayed to see if I was killed. The
jinglejangling bell dwindles fainter, fainter into the night.
Joe Harland had slumped down in his chair until his head rested
on his arms. Between his grimestiff hands his eyes followed uneasily
the lines in the marbletop table. The gutted lunchroom was silent
under the sparse glower of two bulbs hanging over the counter
where remained a few pies under a bellglass, and a man in a white
coat nodding on a tall stool. Now and then the eyes in his gray
doughy face flicked open and he grunted and looked about. At the
last table over were the hunched shoulders of men asleep, faces
crumpled like old newspapers pillowed on arms. Joe Harland sat up
straight and yawned. A woman blobby under a raincoat with a face
red and purplish streaked like rancid meat was asking for a cup of
coffee at the counter. Carrying the mug carefully between her two
hands she brought it over to the table and sat down opposite him.
Joe Harland let his head down onto his arms again.
“Hay yous how about a little soivice?” The woman’s voice shrilled
in Harland’s ears like the screech of chalk on a blackboard.
“Well what d’ye want?” snarled the man behind the counter. The
woman started sobbing. “He asts me what I want.... I aint used to
bein talked to brutal.”
“Well if there’s anythin you want you kin juss come an git it....
Soivice at this toime o night!”
Harland could smell her whiskey breath as she sobbed. He raised
his head and stared at her. She twisted her flabby mouth into a smile
and bobbed her head towards him.
“Mister I aint accustomed to bein treated brutal. If my husband
was aloive he wouldn’t have the noive. Who’s the loikes o him to say
what toime o night a lady ought to have soivice, the little shriveled up
shrimp.” She threw back her head and laughed so that her hat fell off
backwards. “That’s what he is, a little shriveled up shrimp, insultin a
lady with his toime o night.”
Some strands of gray hair with traces of henna at the tips had
fallen down about her face. The man in the white coat walked over to
the table.
“Look here Mother McCree I’ll trow ye out o here if you raise any
more distoirbance.... What do you want?”
“A nickel’s woirt o doughnuts,” she sniveled with a sidelong leer at
Harland.
Joe Harland shoved his face into the hollow of his arm again and
tried to go to sleep. He heard the plate set down followed by her
toothless nibbling and an occasional sucking noise when she drank
the coffee. A new customer had come in and was talking across the
counter in a low growling voice.
“Mister, mister aint it terrible to want a drink?” He raised his head
again and found her eyes the blurred blue of watered milk looking
into his. “What ye goin to do now darlin?”
“God knows.”
“Virgin an Saints it’d be noice to have a bed an a pretty lace
shimmy and a noice feller loike you darlin ... mister.”
“Is that all?”
“Oh mister if my poor husband was aloive, he wouldn’t let em
treat me loike they do. I lost my husband on the General Slocum
might ha been yesterday.”
“He’s not so unlucky.”
“But he doid in his sin without a priest, darlin. It’s terrible to die in
yer sin ...”
“Oh hell I want to sleep.”
Her voice went on in a faint monotonous screech setting his teeth
on edge. “The Saints has been agin me ever since I lost my husband
on the General Slocum. I aint been an honest woman.” ... She began
to sob again. “The Virgin and Saints an Martyrs is agin me,
everybody’s agin me.... Oh wont somebody treat me noice.”
“I want to sleep.... Cant you shut up?”
She stooped and fumbled for her hat on the floor. She sat sobbing
rubbing her swollen redgrimed knuckles into her eyes.
“Oh mister dont ye want to treat me noice?”
Joe Harland got to his feet breathing hard. “Goddam you cant you
shut up?” His voice broke into a whine. “Isnt there anywhere you can
get a little peace? There’s nowhere you can get any peace.” He
pulled his cap over his eyes, shoved his hands down into his pockets
and shambled out of the lunchroom. Over Chatham Square the sky
was brightening redviolet through the latticework of elevated tracks.
The lights were two rows of bright brass knobs up the empty Bowery.
A policeman passed swinging his nightstick. Joe Harland felt the
policeman’s eyes on him. He tried to walk fast and briskly as if he
were going somewhere on business.
“Well Miss Oglethorpe how do you like it?”
“Like what?”
“Oh you know ... being a nine days’ wonder.”
“Why I don’t know at all Mr. Goldweiser.”
“Women know everything but they wont let on.”
Ellen sits in a gown of nilegreen silk in a springy armchair at the
end of a long room jingling with talk and twinkle of chandeliers and
jewelry, dotted with the bright moving black of evening clothes and
silveredged colors of women’s dresses. The curve of Harry
Goldweiser’s nose merges directly into the curve of his bald
forehead, his big rump bulges over the edges of a triangular gilt
stool, his small brown eyes measure her face like antennæ as he
talks to her. A woman nearby smells of sandalwood. A woman with
orange lips and a chalk face under an orange turban passes talking
to a man with a pointed beard. A hawk-beaked woman with crimson
hair puts her hand on a man’s shoulder from behind. “Why how do
you do, Miss Cruikshank; it’s surprising isn’t it how everybody in the
world is always at the same place at the same time.” Ellen sits in the
armchair drowsily listening, coolness of powder on her face and
arms, fatness of rouge on her lips, her body just bathed fresh as a
violet under the silk dress, under the silk underclothes; she sits
dreamily, drowsily listening. A sudden twinge of men’s voices
knotting about her. She sits up cold white out of reach like a
lighthouse. Men’s hands crawl like bugs on the unbreakable glass.
Men’s looks blunder and flutter against it helpless as moths. But in
deep pitblackness inside something clangs like a fire engine.
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