Preface xvii
Acknowledgments xxiii
Part 1: Defining Marketing and the Marketing Process 2
Chapter 1 Marketing: Creating Customer Value and Engagement 2
What Is Marketing? 4
Marketing Defined 5
The Marketing Process 5
Understanding the Marketplace and Customer Needs 6
Customer Needs, Wants, and Demands 6
Market Offerings—Products, Services, and Experiences 7
Customer Value and Satisfaction 7
Exchanges and Relationships 9
Markets 9
Designing a Customer Value–Driven Marketing Strategy and Plan 10
Customer Value–Driven Marketing Strategy 10
Preparing an Integrated Marketing Plan and Program 14
Managing Customer Relationships and Capturing Customer Value 14
Engaging Customers and Managing Customer Relationships 14
Capturing Value from Customers 20
The Changing Marketing Landscape 22
The Digital Age: Online, Mobile, and Social Media Marketing 22
The Changing Economic Environment 26
The Growth of Not-for-Profit Marketing 27
Rapid Globalization 28
Sustainable Marketing—The Call for More Environmental and Social Responsibility 29
So, What Is Marketing? Pulling It All Together 29
Reviewing and Extending the Concepts 31
Objectives Review and Key Terms 31
Objectives Review 31
Key Terms 32
Discussion and Critical Thinking 33
Discussion Questions 33
Critical Thinking Exercises 33
Applications and Cases 33
Online, Mobile, and Social Media Marketing: The ALS Ice Bucket Challenge 33
Marketing Ethics: Is Big Brother Watching? 34
Marketing by the Numbers: What’s a Customer Worth? 34
Video Case: Eskimo Joe’s 34
Company Case: Chick-Fil-A: Getting Better before Getting Bigger 35
Chapter 2 Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships 38
Company-Wide Strategic Planning: Defining Marketing’s Role 40
Defining a Market-Oriented Mission 40
Setting Company Objectives and Goals 42
Designing the Business Portfolio 42
Analyzing the Current Business Portfolio 43
The Boston Consulting Group Approach 43
Developing Strategies for Growth and Downsizing 46
Planning Marketing: Partnering to Build Customer Relationships 48
Partnering with Other Company Departments 48
Partnering with Others in the Marketing System 49
Marketing Strategy and the Marketing Mix 50
Customer Value–Driven Marketing Strategy 50
Developing an Integrated Marketing Mix 53
Managing the Marketing Effort and Marketing Return on Investment 55
Managing the Marketing Effort 55
Measuring and Managing Marketing Return on Investment 59
Reviewing and Extending the Concepts 60
Objectives Review and Key Terms 60
Objectives Review 60
Key Terms 61
Discussion and Critical Thinking 62
Discussion Questions 62
Critical Thinking Exercises 62
Applications and Cases 62
Online, Mobile, and Social Media Marketing: Google’s (Alphabet’s) Mission 62
Marketing Ethics: Creating Value or Distracting Consumers? 63
Marketing by the Numbers: Apple vs. Microsoft 63
Video Case: Konica 63
Company Case: Facebook: Making the World More Open and Connected 64
Part 2: Understanding the Marketplace and Consumer Value 66
Chapter 3 Analyzing the Marketing Environment 66
The Microenvironment and Macroenvironment 68
The Microenvironment 68
The Macroenvironment 72
The Demographic and Economic Environments 72
The Demographic Environment 72
The Economic Environment 79
The Natural and Technological Environments 80
The Natural Environment 80
The Technological Environment 82
The Political–Social and Cultural Environments 84
The Political and Social Environment 84
The Cultural Environment 87
Responding to the Marketing Environment 90
Reviewing and Extending the Concepts 93
Objectives Review and Key Terms 93
Objectives Review 93
Key Terms 93
Discussion and Critical Thinking 94
Discussion Questions 94
Critical Thinking Exercises 94
Applications and Cases 94
Online, Mobile, and Social Media Marketing: Sharing Economy 94
Marketing Ethics: How Young Is Too Young? 94
Marketing by the Numbers: Demographic Trends 95
Video Case: Burger King 95
Company Case: Fitbit: Riding the Fitness Wave to Glory 95
Chapter 4 Managing Marketing Information to Gain Customer Insights 98
Marketing Information and Customer Insights 100
Marketing Information and Today’s “Big Data” 101
Managing Marketing Information 101
Assessing Information Needs and Developing Data 102
Assessing Marketing Information Needs 102
Developing Marketing Information 102
Marketing Research 106
Defining the Problem and Research Objectives 106
Developing the Research Plan 107
Gathering Secondary Data 108
Primary Data Collection 109
Implementing the Research Plan 116
Interpreting and Reporting the Findings 116
Analyzing and Using Marketing Information 116
Customer Relationship Management (CRM) 117
Big Data and Marketing Analytics 117
Distributing and Using Marketing Information 120
Other Marketing Information Considerations 120
Marketing Research in Small Businesses and Nonprofit Organizations 120
International Marketing Research 121
Public Policy and Ethics in Marketing Research 123
Reviewing and Extending the Concepts 125
Objectives Review and Key Terms 125
Objectives Review 125
Key Terms 126
Discussion and Critical Thinking 126
Discussion Questions 126
Critical Thinking Exercises 127
Applications and Cases 127
Online, Mobile, and Social Media Marketing: The Trail You Leave Behind 127
Marketing Ethics: Metadata 127
Marketing by the Numbers: The Value of Information 127
Video Case: Nielsen 128
Company Case: Campbell Soup Company: Watching What You Eat 128
Chapter 5 Consumer Markets and Buyer Behavior 132
Model of Consumer Behavior 134
Characteristics Affecting Consumer Behavior 135
Cultural Factors 135
Social Factors 138
Personal Factors 143
Psychological Factors 145
Buying Decision Behavior and the Buyer Decision Process 150
Types of Buying Decision Behavior 150
The Buyer Decision Process 151
The Buyer Decision Process for New Products 154
Stages in the Adoption Process 154
Individual Differences in Innovativeness 155
Influence of Product Characteristics on Rate of Adoption 155
Reviewing and Extending the Concepts 156
Objectives Review and Key Terms 156
Objectives Review 156
Key Terms 157
Discussion and Critical Thinking 158
Discussion Questions 158
Critical Thinking Exercises 158
Applications and Cases 158
Online, Mobile, and Social Media Marketing: Digital Influencer Credibility 158
Marketing Ethics: Ultimate Water 159
Marketing by the Numbers: Evaluating Alternatives 159
Video Case: IMG Worldwide 159
Company Case: GoldieBlox: Swimming Upstream against Consumer Perceptions 160
Chapter 6 Business Markets and Business Buyer Behavior 162
Business Markets 164
Market Structure and Demand 165
Nature of the Buying Unit 165
Types of Decisions and the Decision Process 165
Business Buyer Behavior 166
Major Types of Buying Situations 167
Participants in the Business Buying Process 168
Major Influences on Business Buyers 168
The Business Buyer Decision Process 171
Problem Recognition 171
General Need Description 172
Product Specification 172
Supplier Search 172
Proposal Solicitation 172
Supplier Selection 173
Order-Routine Specification 173
Performance Review 173
Engaging Business Buyers with Digital and Social Marketing 173
E-procurement and Online Purchasing 173
Business-to-Business Digital and Social Media Marketing 174
Institutional and Government Markets 175
Institutional Markets 175
Government Markets 177
Reviewing and Extending the Concepts 179
Objectives Review and Key Terms 179
Objectives Review 179
Key Terms 180
Discussion and Critical Thinking 180
Discussion Questions 180
Critical Thinking Exercises 181
Applications and Cases 181
Online, Mobile, and Social Media Marketing: E-procurement and Mobile Procurement 181
Marketing Ethics: What Are Our Kids Eating? 181
Marketing by the Numbers: NAICS 182
Video Case: Eaton 182
Company Case: Procter & Gamble: Treating Business Customers as Strategic Partners 182
Part 3: Designing a Customer Value–Driven Strategy and Mix 186
Chapter 7 Customer Value–Driven Marketing Strategy: Creating Value for Target Customers 186
Marketing Strategy 188
Market Segmentation 189
Segmenting Consumer Markets 189
Segmenting Business Markets 195
Segmenting International Markets 196
Requirements for Effective Segmentation 197
Market Targeting 197
Evaluating Market Segments 197
Selecting Target Market Segments 198
Differentiation and Positioning 204
Positioning Maps 205
Choosing a Differentiation and Positioning Strategy 206
Communicating and Delivering the Chosen Position 211
Reviewing and Extending the Concepts 212
Objectives Review and Key Terms 212
Objectives Review 212
Key Terms 213
Discussion and Critical Thinking 213
Discussion Questions 213
Critical Thinking Exercises 214
Applications and Cases 214
Online, Mobile, and Social Media Marketing: Get Your Groupon 214
Marketing Ethics: Targeting to Teens 214
Marketing by the Numbers: USAA 214
Video Case: Sprout 215
Company Case: Virgin America: Flight Service for the Tech Savvy 215
Chapter 8 Products, Services, and Brands: Building Customer Value 218
What Is a Product? 220
Products, Services, and Experiences 220
Levels of Product and Services 221
Product and Service Classifications 222
Product and Service Decisions 225
Individual Product and Service Decisions 225
Product Line Decisions 232
Product Mix Decisions 232
Services Marketing 234
The Nature and Characteristics of a Service 234
Marketing Strategies for Service Firms 235
The Service Profit Chain 235
Branding Strategy: Building Strong Brands 240
Brand Equity and Brand Value 240
Building Strong Brands 241
Managing Brands 248
Reviewing and Extending the Concepts 248
Objectives Review and Key Terms 248
Objectives Review 248
Key Terms 249
Discussion and Critical Thinking 250
Discussion Questions 250
Critical Thinking Exercises 250
Applications and Cases 250
Online, Mobile, and Social Media Marketing: Feeding Pets from Your Smartphone 250
Marketing Ethics: Geographical Indication 250
Marketing by the Numbers: Pop-Tarts Gone Nutty! 251
Video Case: Plymouth Rock Assurance 251
Company Case: Airbnb: Making Hospitality Authentic 251
Chapter 9 Developing New Products and Managing the Product Life Cycle 254
New Product Development Strategy 256
The New Product Development Process 257
Idea Generation 257
Idea Screening 259
Concept Development and Testing 259
Marketing Strategy Development 260
Business Analysis 261
Product Development 262
Test Marketing 262
Commercialization 263
Managing New Product Development 263
Product Life-Cycle Strategies 265
Introduction Stage 270
Growth Stage 270
Maturity Stage 271
Decline Stage 272
Additional Product and Service Considerations 273
Product Decisions and Social Responsibility 273
International Product and Services Marketing 274
Reviewing and Extending the Concepts 275
Objectives Review and Key Terms 275
Objectives Review 275
Key Terms 276
Discussion and Critical Thinking 276
Discussion Questions 276
Critical Thinking Exercises 277
Applications and Cases 277
Online, Mobile, and Social Media Marketing: Telemedicine 277
Marketing Ethics: Put On Your Thinking Caps! 277
Marketing by the Numbers: Dental House Calls 278
Video Case: Day2Night Convertible Heels 278
Company Case: Bose: Better Products through Research 278
Chapter 10 Pricing: Understanding and Capturing Customer Value 282
What Is a Price? 284
Major Pricing Strategies 285
Customer Value–Based Pricing 285
Cost-Based Pricing 289
Competition-Based Pricing 293
Other Internal and External Considerations Affecting Price Decisions 293
Overall Marketing Strategy, Objectives, and Mix 294
Organizational Considerations 297
The Market and Demand 297
The Economy 299
Other External Factors 299
Reviewing and Extending the Concepts 300
Objectives Review and Key Terms 300
Objectives Review 300
Key Terms 301
Discussion and Critical Thinking 301
Discussion Questions 301
Critical Thinking Exercises 301
Applications and Cases 301
Online, Mobile, and Social Media Marketing: Online Price Tracking 301
Marketing Ethics: The Cost of a Life 302
Marketing by the Numbers: Pricey Sheets 302
Video Case: Fast-Food Discount Wars 303
Company Case: Trader Joe’s: Cheap Gourmet—Putting a Special Twist on the Price-Value Equation 303
Chapter 11 Pricing Strategies: Additional Considerations 306
New Product Pricing Strategies 308
Market-Skimming Pricing 308
Market-Penetration Pricing 309
Product Mix Pricing Strategies 309
Product Line Pricing 310
Optional-Product Pricing 310
Captive-Product Pricing 310
By-Product Pricing 311
Product Bundle Pricing 311
Price Adjustment Strategies 311
Discount and Allowance Pricing 311
Segmented Pricing 312
Psychological Pricing 313
Promotional Pricing 314
Geographical Pricing 315
Dynamic and Online Pricing 316
International Pricing 318
Price Changes 320
Initiating Price Changes 320
Responding to Price Changes 321
Public Policy and Pricing 322
Pricing within Channel Levels 325
Pricing across Channel Levels 325
Reviewing and Extending the Concepts 326
Objectives Review and Key Terms 326
Objectives Review 326
Key Terms 327
Discussion and Critical Thinking 327
Discussion Questions 327
Critical Thinking Exercises 328
Applications and Cases 328
Online, Mobile, and Social Media Marketing: Krazy Coupon Lady 328
Marketing Ethics: Less Bang for Your Buck 328
Marketing by the Numbers: Louis Vuitton Price Increase 328
Video Case: Hammerpress 329
Company Case: Lululemon: Indulging Customers at a Premium Price 329
Chapter 12 Marketing Channels: Delivering Customer Value 332
Supply Chains and the Value Delivery Network 334
The Nature and Importance of Marketing Channels 335
Channel Behavior and Organization 338
Channel Behavior 338
Vertical Marketing Systems 339
Horizontal Marketing Systems 341
Multichannel Distribution Systems 341
Changing Channel Organization 342
Channel Design Decisions 344
Analyzing Consumer Needs 345
Setting Channel Objectives 345
Identifying Major Alternatives 346
Evaluating the Major Alternatives 347
Designing International Distribution Channels 347
Channel Management Decisions 348
Selecting Channel Members 348
Managing and Motivating Channel Members 349
Evaluating Channel Members 351
Public Policy and Distribution Decisions 351
Marketing Logistics and Supply Chain Management 352
Nature and Importance of Marketing Logistics 352
Sustainable Supply Chains 353
Goals of the Logistics System 354
Major Logistics Functions 354
Integrated Logistics Management 357
Reviewing and Extending the Concepts 359
Objectives Review and Key Terms 359
Objectives Review 359
Key Terms 360
Discussion and Critical Thinking 361
Discussion Questions 361
Critical Thinking Exercises 361
Applications and Cases 361
Online, Mobile, and Social Media Marketing: Fabletics Changing Channels 361
Marketing Ethics: Trucker Rest Rules 362
Marketing by the Numbers: Tyson Expanding Distribution 362
Video Case: Progressive 362
Company Case: Apple Pay: Taking Mobile Payments Mainstream 363
Chapter 13 Retailing and Wholesaling 366
Retailing 368
Retailing: Connecting Brands with Consumers 368
Types of Retailers 369
Retailer Marketing Decisions 376
Segmentation, Targeting, Differentiation, and Positioning Decisions 376
Product Assortment and Services Decision 377
Price Decision 379
Promotion Decision 379
Place Decision 380
Retailing Trends and Developments 381
Tighter Consumer Spending 381
New Retail Forms, Shortening Retail Life Cycles, and Retail Convergence 382
The Rise of Megaretailers 382
Growth of Direct, Online, Mobile, and Social Media Retailing 383
The Need for Omni-Channel Retailing 383
Growing Importance of Retail Technology 385
Green Retailing 386
Global Expansion of Major Retailers 387
Wholesaling 387
Types of Wholesalers 388
Trends in Wholesaling 392
Reviewing and Extending the Concepts 393
Objectives Review and Key Terms 393
Objectives Review 393
Key Terms 394
Discussion and Critical Thinking 394
Discussion Questions 394
Critical Thinking Exercises 394
Applications and Cases 394
Online, Mobile, and Social Media Marketing: Skipping the Checkout Line 394
Marketing Ethics: Lilly for Target 395
Marketing by the Numbers: Stockturn Rate 395
Video Case: Kmart 395
Company Case: Bass Pro Shops: Creating Nature’s Theme Park for People Who Hate to Shop 396
Chapter 14 Engaging Consumers and Communicating Customer Value: Integrated Marketing Communication Strategy 398
The Promotion Mix 400
Integrated Marketing Communications 401
The New Marketing Communications Model 401
The Need for Integrated Marketing Communications 403
Developing Effective Marketing Communication 406
A View of the Communication Process 406
Steps in Developing Effective Marketing Communication 408
Setting the Total Promotion Budget and Mix 413
Setting the Total Promotion Budget 413
Shaping the Overall Promotion Mix 415
Integrating the Promotion Mix 417
Socially Responsible Marketing Communication 417
Reviewing and Extending the Concepts 420
Objectives Review and Key Terms 420
Objectives Review 420
Key Terms 421
Discussion and Critical Thinking 422
Discussion Questions 422
Critical Thinking Exercises 422
Applications and Cases 422
Online, Mobile, and Social Media Marketing: #withoutshoes 422
Marketing Ethics: An Ethical Promotion? 423
Marketing by the Numbers: Advertising-to-Sales Ratios 423
Video Case: OXO 423
Company Case: Volvo Trucks: Integrated Marketing Communications of Epic Proportions 423
Chapter 15 Advertising and Public Relations 426
Advertising 428
Major Advertising Decisions 429
Setting Advertising Objectives 429
Setting the Advertising Budget 432
Evaluating Advertising Effectiveness and the Return on Advertising Investment 444
Other Advertising Considerations 444
Public Relations 446
The Role and Impact of PR 447
Major Public Relations Tools 448
Reviewing and Extending the Concepts 449
Objectives Review and Key Terms 449
Objectives Review 449
Key Terms 449
Discussion and Critical Thinking 450
Discussion Questions 450
Critical Thinking Exercises 450
Applications and Cases 450
Online, Mobile, and Social Media Marketing: Facebook Audience Network 450
Marketing Ethics: Native Advertising 450
Marketing by the Numbers: C3, CPM, and CPP 451
Video Case: Kmart 451
Company Case: Allstate: Bringing Mayhem to the Auto Insurance Advertising Wars 451
Chapter 16 Personal Selling and Sales Promotion 454
Personal Selling 456
The Nature of Personal Selling 456
The Role of the Sales Force 457
Managing the Sales Force 458
Designing the Sales Force Strategy and Structure 458
Recruiting and Selecting Salespeople 461
Training Salespeople 462
Compensating Salespeople 463
Supervising and Motivating Salespeople 464
Evaluating Salespeople and Sales Force Performance 465
Social Selling: Online, Mobile, and Social Media Tools 466
The Personal Selling Process 469
Steps in the Selling Process 469
Personal Selling and Managing Customer Relationships 471
Sales Promotion 472
The Rapid Growth of Sales Promotion 472
Sales Promotion Objectives 473
Major Sales Promotion Tools 474
Developing the Sales Promotion Program 478
Reviewing and Extending the Concepts 479
Objectives Review and Key Terms 479
Objectives Review 479
Key Terms 480
Discussion and Critical Thinking 481
Discussion Questions 481
Critical Thinking Exercises 481
Applications and Cases 481
Online, Mobile, and Social Media Marketing: Snap It and Redeem It! 481
Marketing Ethics: Walking the Customer 482
Marketing by the Numbers: Sales Force Analysis 482
Video Case: First Flavor 482
Company Case: SunGard: Building Sustained Growth by Selling the SunGard Way 482
Chapter 17 Direct, Online, Social Media, and Mobile Marketing 486
Direct and Digital Marketing 488
The New Direct Marketing Model 488
Rapid Growth of Direct and Digital Marketing 489
Benefits of Direct and Digital Marketing to Buyers and Sellers 490
Forms of Direct and Digital Marketing 490
Marketing, the Internet, and the Digital Age 491
Online Marketing 492
Social Media and Mobile Marketing 497
Social Media Marketing 497
Mobile Marketing 501
Traditional Direct Marketing Forms 504
Direct-Mail Marketing 504
Catalog Marketing 505
Telemarketing 505
Direct-Response Television Marketing 506
Kiosk Marketing 507
Public Policy Issues in Direct and Digital Marketing 507
Reviewing and Extending the Concepts 510
Objectives Review and Key Terms 510
Objectives Review 510
Key Terms 512
Discussion and Critical Thinking 512
Discussion Questions 512
Critical Thinking Exercises 512
Applications and Cases 512
Online, Mobile, and Social Media Marketing: “Buy” Buttons 512
Marketing Ethics: #Fail 513
Marketing by the Numbers: Field Sales versus Telemarketing 513
Video Case: Nutrisystem 513
Company Case: Alibaba: The World’s Largest E-tailer Is Not Amazon 514
Part 4: Extending Marketing 516
Chapter 18 Creating Competitive Advantage 516
Competitor Analysis 518
Identifying Competitors 518
Assessing Competitors 521
Selecting Competitors to Attack and Avoid 523
Designing a Competitive Intelligence System 525
Competitive Strategies 525
Approaches to Marketing Strategy 525
Basic Competitive Strategies 526
Competitive Positions 529
Market Leader Strategies 530
Market Challenger Strategies 533
Market Follower Strategies 534
Market Nicher Strategies 534
Balancing Customer and Competitor Orientations 535
Reviewing and Extending the Concepts 536
Objectives Review and Key Terms 536
Objectives Review 536
Key Terms 537
Discussion and Critical Thinking 537
Discussion Questions 537
Critical Thinking Exercises 538
Applications and Cases 538
Online, Mobile, and Social Media Marketing: Social Logins 538
Marketing Ethics: Creating Competitive Advantage…to What End? 538
Marketing by the Numbers: Market Share 538
Video Case: Umpqua Bank 539
Company Case: YouTube: Google’s Quest for Video Dominance 539
Chapter 19 The Global Marketplace 542
Global Marketing Today 544
Elements of the Global Marketing Environment 546
Deciding Whether to Go Global 554
Deciding Which Markets to Enter 554
Deciding How to Enter the Market 556
Exporting 556
Joint Venturing 557
Direct Investment 558
Deciding on the Global Marketing Program 559
Product 561
Promotion 562
Price 564
Distribution Channels 565
Deciding on the Global Marketing Organization 566
Reviewing and Extending the Concepts 567
Objectives Review and Key Terms 567
Objectives Review 567
Key Terms 567
Discussion and Critical Thinking 568
Discussion Questions 568
Critical Thinking Exercises 568
Applications and Cases 568
Online, Mobile, and Social Media Marketing: China’s Great Firewall 568
Marketing Ethics: Global Safety Standards 569
Marketing by the Numbers: Netflix’s Global Expansion 569
Video Case: Monster 569
Company Case: L’Oréal: The United Nations of Beauty 569
Chapter 20 Sustainable Marketing: Social Responsibility and Ethics 572
Sustainable Marketing 574
Social Criticisms of Marketing 576
Marketing’s Impact on Individual Consumers 576
Marketing’s Impact on Society as a Whole 580
Marketing’s Impact on Other Businesses 582
Consumer Actions to Promote Sustainable Marketing 583
Consumerism 583
Environmentalism 584
Public Actions to Regulate Marketing 588
Business Actions Toward Sustainable Marketing 589
Sustainable Marketing Principles 589
Marketing Ethics and the Sustainable Company 593
Marketing Ethics 593
The Sustainable Company 596
Reviewing and Extending the Concepts 596
Objectives Review and Key Terms 596
Objectives Review 596
Key Terms 597
Discussion and Critical Thinking 597
Discussion Questions 597
Critical Thinking Exercises 598
Applications and Cases 598
Online, Mobile, and Social Media Marketing: Teens and Social Media 598
Marketing Ethics: Milking the International Market 598
Marketing by the Numbers: The Cost of Sustainability 598
Video Case: Honest Tea 599
Company Case: adidas: Athletic Apparel with Purpose 599
Appendix 1: Marketing Plan 603
Appendix 2: Marketing by the Numbers 613
Appendix 3: Careers in Marketing 631
Glossary 643
References 651
Index 679
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