Contemporary Marketing

Front Cover......Page 1
Title Page......Page 2
Copyright......Page 3
Contents......Page 8
Preface......Page 23
PART 1 DESIGNING CUSTOMER-ORIENTED MARKETING STRATEGIES......Page 34
OPENING VIGNETTE: Xerox: From Copies to Networking......Page 35
What Is Marketing?......Page 38
Four Eras in the History of Marketing......Page 41
Avoiding Marketing Myopia......Page 45
Extending the Traditional Boundaries of Marketing......Page 46
Nontraditional Marketing......Page 48
From Transaction-Based Marketing to Relationship Marketing......Page 51
Costs and Functions of Marketing......Page 53
MARKETING SUCCESS: Wal-Mart’s Big Environment Push: Green SuperCenters......Page 55
SOLVING AN ETHICAL CONTROVERSY: Does “Green” Light Have a Dark Side?......Page 56
Strategic Implications of Marketing in the 21st Century......Page 57
Review of Chapter Objectives......Page 58
Assessment Check Answers......Page 59
Projects and Teamwork Exercises......Page 61
Ethics Exercise......Page 62
Case 1.1 Reinventing IBM......Page 63
Video Case 1.2 Marketing: Satisfying Customers at Flight 001......Page 64
OPENING VIGNETTE: Target’s Strategy: Low Prices, High Design, Green Practices......Page 65
Marketing Planning: The Basis for Strategy and Tactics......Page 67
ETIQUETTE TIPS FOR MARKETING PROFESSIONALS: Planning Virtual Meetings......Page 69
Steps in the Marketing Planning Process......Page 71
Successful Strategies: Tools and Techniques......Page 72
SOLVING AN ETHICAL CONTROVERSY: The Rice Shortage: Was Rationing the Answer?......Page 73
MARKETING SUCCESS: Wrigley and Mars Concoct a Sweet Connection......Page 77
Methods for Marketing Planning......Page 82
Review of Chapter Objectives......Page 84
Assessment Check Answers......Page 85
Projects and Teamwork Exercises......Page 87
Ethics Exercise......Page 88
Case 2.1 Chrysler Retools for a Rebound......Page 89
Video Case 2.2 Strategic Planning and the Marketing Process at Recycline......Page 90
OPENING VIGNETTE: Electrifying GM’s Future with the Chevy Volt......Page 91
Environmental Scanning and Environmental Management......Page 94
The Competitive Environment......Page 95
MARKETING SUCCESS: Chipotle Mexican Grill Turns Up the Heat......Page 97
The Political-Legal Environment......Page 98
The Economic Environment......Page 104
ETIQUETTE TIPS FOR MARKETING PROFESSIONALS: To Give . . . or Not to Give?......Page 107
The Technological Environment......Page 108
SOLVING AN ETHICAL CONTROVERSY: Diverting Corn from Food to Fuel......Page 109
The Social-Cultural Environment......Page 110
Ethical Issues in Marketing......Page 112
Social Responsibility in Marketing......Page 117
Strategic Implications of Marketing in the 21st Century......Page 120
Review of Chapter Objectives......Page 121
Assessment Check Answers......Page 122
Other Important Marketing Terms......Page 123
Critical-Thinking Exercises......Page 124
Ethics Questionnaire Answers......Page 125
Video Case 3.2 The Marketing Environment, Ethics, and Social Responsibility at Scholfield Honda......Page 126
OPENING VIGNETTE: Amazon.com Hopes to Kindle E-Book Reading......Page 127
The Digital World......Page 130
E-Business and E-Marketing......Page 131
B2B E-Marketing......Page 134
B2C E-Marketing......Page 136
MARKETING SUCCESS: Zipcar Offers Wheels to Go......Page 137
Challenges in E-Business and E-Marketing......Page 140
SOLVING AN ETHICAL CONTROVERSY: Viacom vs. YouTube: Whose Property Is It?......Page 145
Marketing and Web Communication......Page 146
ETIQUETTE TIPS FOR MARKETING PROFESSIONALS: Blogging on Your Best Behavior......Page 148
Building an Effective Web Presence......Page 149
Assessing Site Effectiveness......Page 151
Strategic Implications of Marketing in the 21st Century......Page 152
Review of Chapter Objectives......Page 153
Assessment Check Answers......Page 154
Projects and Teamwork Exercises......Page 157
Ethics Exercise......Page 158
Case 4.1 Are Customers Wandering from Online Travel Sites?......Page 159
Video Case 4.2 E-business at Evo......Page 160
Voice of Experience: Talking about Marketing Careers with Michael L. Hutzel, Jr.......Page 161
Greensburg, Inc.: Continuing Video Case: Marketing Is Not a Dirty Word......Page 163
PART 2 UNDERSTANDING BUYERS AND MARKETS......Page 164
OPENING VIGNETTE: “Guitar Hero” Rocks the Sales Charts......Page 165
Interpersonal Determinants of Consumer Behavior......Page 168
MARKETING SUCCESS: SunChips Live Up to Their Name......Page 169
Personal Determinants of Consumer Behavior......Page 177
ETIQUETTE TIPS FOR MARKETING PROFESSIONALS: How to Deal with Product Returns......Page 183
The Consumer Decision Process......Page 185
SOLVING AN ETHICAL CONTROVERSY: Greenwashing: Truth or Myth?......Page 188
Strategic Implications of Marketing in the 21st Century......Page 190
Review of Chapter Objectives......Page 191
Assessment Check Answers......Page 192
Other Important Marketing Terms......Page 193
Projects and Teamwork Exercises......Page 194
Internet Exercises......Page 195
Video Case 5.2 Consumer Behavior at Scholfield Honda......Page 196
OPENING VIGNETTE: Seafood Shortages Hurt Suppliers, Sellers, Shoppers......Page 197
Nature of the Business Market......Page 200
Segmenting B2B Markets......Page 204
MARKETING FAILURE MLB: Confronts the Wooden Bat Dilemma......Page 206
Business Market Demand......Page 209
The Make, Buy, or Lease Decision......Page 211
The Business Buying Process......Page 213
The Buying Center Concept......Page 219
Developing Effective Business-to-Business Marketing Strategies......Page 220
SOLVING AN ETHICAL CONTROVERSY: Is Government Purchasing a Level Playing Field?......Page 222
Review of Chapter Objectives......Page 225
Assessment Check Answers......Page 226
Marketing Terms You Need to Know......Page 228
Projects and Teamwork Exercises......Page 229
Ethics Exercise......Page 230
Case 6.1 Peerless Pump Puts Customers......Page 231
Video Case 6.2 Business-to-Business Marketing at Flight 001......Page 232
OPENING VIGNETTE: “Global” Focus Drives McDonald’s......Page 233
The Importance of Global Marketing......Page 236
The International Marketing Environment......Page 240
MARKETING SUCCESS: Scotland Rides the Wave......Page 241
ETIQUETTE TIPS FOR MARKETING PROFESSIONALS: Lessons from the Beijing Olympics......Page 243
Multinational Economic Integration......Page 247
SOLVING AN ETHICAL CONTROVERSY: How Fair Is Fair Trade?......Page 249
Strategies for Entering Foreign Markets......Page 251
Developing an International Marketing Strategy......Page 255
The United States as a Target for International Marketers......Page 259
Review of Chapter Objectives......Page 260
Assessment Check Answers......Page 261
Assurance of Learning Review......Page 263
Ethics Exercise......Page 264
Case 7.1 Fresh & Easy: Not So Easy......Page 265
Video Case 7.2 Global Marketing at Evo......Page 266
Voice of Experience: Talking about Marketing Careers with Anne Saunders......Page 267
Greensburg, Inc.: Continuing Video Case: Rebuilding: They Didn’t Ask for This......Page 269
PART 3 TARGET MARKET SELECTION......Page 270
OPENING VIGNETTE: Procter & Gamble’s Research for a Better Environment......Page 271
The Marketing Research Function......Page 273
The Marketing Research Process......Page 277
Marketing Research Methods......Page 281
ETIQUETTE TIPS FOR MARKETING PROFESSIONALS: How to Conduct Online Surveys......Page 289
SOLVING AN ETHICAL CONTROVERSY: Online Reputation Management: Legitimate Marketing or Cover-Up?......Page 290
Interpretive Research......Page 291
Computer Technology In Marketing Research......Page 292
MARKETING SUCCESS: Ruf Strategic Solutions Taps Data for Kansas Tourism......Page 293
Sales Forecasting......Page 295
Strategic Implications of Marketing in the 21st Century......Page 297
Review of Chapter Objectives......Page 298
Assessment Check Answers......Page 299
Assurance of Learning Review......Page 301
Critical-Thinking Exercises......Page 302
Internet Exercises......Page 303
Video Case 8.2 Marketing Research and Sales Forecasting at Ogden Publications......Page 304
OPENING VIGNETTE: Wal-Mart Caters to the Arab American Community......Page 305
The Role of Market Segmentation......Page 308
Geographic Segmentation......Page 310
Demographic Segmentation......Page 313
ETIQUETTE TIPS FOR MARKETING PROFESSIONALS: Communicating with Your Target Market......Page 314
SOLVING AN ETHICAL CONTROVERSY: Targeting Seniors with Unclear Messages......Page 318
Psychographic Segmentation......Page 323
MARKETING SUCCESS: The Future of Fashion: Designers Market Eco-Friendly Threads......Page 325
Product-Related Segmentation......Page 327
The Market Segmentation Process......Page 328
Strategies for Reaching Target Markets......Page 329
Selecting and Executing a Strategy......Page 332
Strategic Implications of Marketing in the 21st Century......Page 333
Review of Chapter Objectives......Page 334
Assessment Check Answers......Page 335
Assurance of Learning Review......Page 337
Ethics Exercise......Page 338
Case 9.1 Food Allergies: Feeding a Growing Niche......Page 339
Video Case 9.2 Targeting and Positioning at Numi Tea......Page 340
OPENING VIGNETTE: Recycled Energy Development Turns Partnerships Green Rec......Page 341
The Shift from Transaction-Based Marketing to Relationship Marketing......Page 343
The Relationship Marketing Continuum......Page 346
SOLVING AN ETHICAL CONTROVERSY: Are Social Networking Sites Abusing Their Customer Relationships?......Page 348
Enhancing Customer Satisfaction......Page 349
Building Buyer–Seller Relationships......Page 350
MARKETING SUCCESS: My Privacy Helps Consumers Gain Control......Page 353
Customer Relationship Management......Page 355
Buyer–Seller Relationships in Business-to-Business Markets......Page 357
Improving Buyer–Seller Relationships in Business-to-Business Markets......Page 360
Vendor-Managed Inventory......Page 361
Evaluating Customer Relationship Programs......Page 362
Review of Chapter Objectives......Page 364
Assessment Check Answers......Page 365
Assurance of Learning Review......Page 367
Ethics Exercise......Page 368
Case 10.1 Jive Software Strengthens Relationships......Page 369
Video Case 10.2 Relationship Marketing and CRM at Numi Tea......Page 370
Voice of Experience: Talking about Marketing Careers with Libbey Paul......Page 371
Greensburg, Inc.: Continuing Video Case: This Isn’t Your Father’s Honda . . . or Is It?......Page 373
PART 4 PRODUCT DECISIONS......Page 374
OPENING VIGNETTE: Green Works: Clorox Aims to Clean Up the Environment......Page 375
What Is a Product?......Page 377
What Are Goods and Services?......Page 378
Importance of the Service Sector......Page 379
Classifying Goods and Services for Consumer and Business Markets......Page 381
Quality as a Product Strategy......Page 390
ETIQUETTE TIPS FOR MARKETING PROFESSIONALS: Giving Helpful Feedback......Page 391
Development of Product Lines......Page 392
SOLVING AN ETHICAL CONTROVERSY: Spam on Cell Phones: Who Pays?......Page 393
The Product Mix......Page 394
The Product Lifecycle......Page 396
Extending the Product Lifecycle......Page 399
Product Deletion Decisions......Page 400
MARKETING SUCCESS: And the Winner Is . . . Blu-ray......Page 401
Review of Chapter Objectives......Page 402
Assessment Check Answers......Page 403
Projects and Teamwork Exercises......Page 405
Ethics Exercise......Page 406
Case 11.1 Under Armour Takes a Run at the Shoe Market......Page 407
Video Case 11.2 Product and Service Strategy at Recycline......Page 408
OPENING VIGNETTE: Schwinn e-Bikes Provide Pedal Power......Page 409
Managing Brands for Competitive Advantage......Page 412
Product Identification......Page 417
ETIQUETTE TIPS FOR MARKETING PROFESSIONALS: IMHO . . . Don’t Use Jargon! Seriously, I’m Not JK......Page 419
MARKETING SUCCESS: Nintendo Extends Its Line and Stretches Consumers’ Bodies with Wii Fit......Page 423
New-Product Planning......Page 425
Product Safety and Liability......Page 433
SOLVING AN ETHICAL CONTROVERSY: Are BPA Plastics Safe?......Page 435
Review of Chapter Objectives......Page 436
Assessment Check Answers......Page 437
Assurance of Learning Review......Page 439
Critical-Thinking Exercises......Page 440
Case 12.1 Ferrari Runs on Brand Power......Page 441
Video Case 12.2 Developing and Managing Brand and Product Categories at Maine Media Workshops......Page 442
Voice of Experience: Talking about Marketing Careers with Mark A. Mercurio......Page 443
Greensburg, Inc.: Continuing Video Case: Green: It’s Not Just for Earth Day Anymore......Page 445
PART 5 DISTRIBUTION DECISIONS......Page 446
OPENING VIGNETTE: Burlington Northern Santa Fe Rides Green Rails......Page 447
The Role of Marketing Channels in Marketing Strategy......Page 450
Types of Marketing Channels......Page 451
ETIQUETTE TIPS FOR MARKETING PROFESSIONALS: Anatomy of a Successful Sales Call......Page 453
Channel Strategy Decisions......Page 455
Channel Management and Leadership......Page 460
Vertical Marketing Systems......Page 461
MARKETING SUCCESS IGA: Cooperative Strengthens Supply Chain......Page 463
Logistics and Supply Chain Management......Page 464
Physical Distribution......Page 467
SOLVING AN ETHICAL CONTROVERSY: The Battle over “Blue Gold”......Page 471
Review of Chapter Objectives......Page 476
Assessment Check Answers......Page 477
Assurance of Learning Review......Page 479
Critical-Thinking Exercises......Page 480
Case 13.1 XM and Sirius Merge: A New Channel for Radio Listeners......Page 481
Video Case 13.2 Marketing Channels and Supply Chain Management at Recycline......Page 482
OPENING VIGNETTE: DirectBuy’s Model for Home Improvement......Page 483
Retailing......Page 485
Retailing Strategy......Page 486
SOLVING AN ETHICAL CONTROVERSY: Who Benefits with a Parttime Workforce?......Page 490
ETIQUETTE TIPS FOR MARKETING PROFESSIONALS: Getting Personal with Your Customers......Page 494
Types of Retailers......Page 495
MARKETING SUCCESS: Threadless Fits Web Shoppers to a “T”......Page 497
Wholesaling Intermediaries......Page 501
Direct Marketing and Other Nonstore Retailing......Page 508
Strategic Implications of Marketing in the 21st Century......Page 510
Review of Chapter Objectives......Page 511
Assessment Check Answers......Page 512
Marketing Terms You Need to Know......Page 513
Projects and Teamwork Exercises......Page 514
Internet Exercises......Page 515
Video Case 14.2 Retailing at Flight 001......Page 516
Voice of Experience: Talking about Marketing Careers with Richard Yoo......Page 517
Greensburg, Inc.: Continuing Video Case: A Little Hope for the Little Guy......Page 519
PART 6 PROMOTIONAL DECISIONS......Page 520
OPENING VIGNETTE: Major League Baseball Joins the Green Team......Page 521
Integrated Marketing Communications......Page 524
The Communication Process......Page 526
Objectives of Promotion......Page 530
SOLVING AN ETHICAL CONTROVERSY Sports Blogs: Who Controls the Marketing Message?......Page 532
Elements of the Promotional Mix......Page 533
Sponsorships......Page 538
Direct Marketing......Page 539
Developing an Optimal Promotional Mix......Page 544
MARKETING SUCCESS: Spin Master Toys on Tour......Page 545
Pulling and Pushing Promotional Strategies......Page 547
Budgeting for Promotional Strategy......Page 548
Measuring the Effectiveness of Promotion......Page 550
The Value of Marketing Communications......Page 551
Review of Chapter Objectives......Page 553
Assessment Check Answers......Page 554
Other Important Marketing Terms......Page 556
Critical-Thinking Exercises......Page 557
Internet Exercises......Page 558
Case 15.1 Dubai Metro: Naming Rights Take a New Turn......Page 559
Video Case 15.2 Integrated Marketing Communications at Ogden Publications......Page 560
OPENING VIGNETTE: Aflac Takes a Quack at the Business Market......Page 561
Advertising......Page 564
Advertising Strategies......Page 566
Creating an Advertisement......Page 569
Advertising Messages......Page 570
Media Selection......Page 573
MARKETING SUCCESS: S.C. Johnson’s Commitment to Clean Power......Page 575
Media Scheduling......Page 580
Organization of the Advertising Function......Page 581
Public Relations......Page 582
ETIQUETTE TIPS FOR MARKETING PROFESSIONALS: How to Handle a Business Crisis......Page 584
Cross-Promotion......Page 585
Measuring Promotional Effectiveness......Page 586
Ethics in Nonpersonal Selling......Page 588
Review of Chapter Objectives......Page 590
Assessment Check Answers......Page 591
Assurance of Learning Review......Page 593
Ethics Exercise......Page 594
Case 16.1 Great Political Ads: Which Do You Remember?......Page 595
Video Case 16.2 Advertising and Public Relations at Ogden Publications......Page 596
OPENING VIGNETTE: Zappos.com’s Representatives and Customers: The Perfect Fit......Page 597
The Evolution of Personal Selling......Page 600
The Four Sales Channels......Page 601
Trends in Personal Selling......Page 604
ETIQUETTE TIPS FOR MARKETING PROFESSIONALS: Dressing Like a Sales Pro......Page 606
Sales Tasks......Page 608
The Sales Process......Page 609
Managing the Sales Effort......Page 614
Ethical Issues in Sales......Page 619
Sales Promotion......Page 620
SOLVING AN ETHICAL CONTROVERSY: Limiting Sweepstakes Fraud......Page 624
MARKETING SUCCESS: Coast to Coast, It’s the Eco Trade Show......Page 625
Strategic Implications of Marketing in the 21st Century......Page 627
Review of Chapter Objectives......Page 628
Assessment Check Answers......Page 629
Projects and Teamwork Exercises......Page 631
Ethics Exercise......Page 632
Case 17.1 Chrysler Pins Its Hopes on Sales Star......Page 633
Video Case 17.2 Personal Selling and Sales Promotion at Scholfield Honda......Page 634
Voice of Experience: Talking about Marketing Careers with Andrew Swinand......Page 635
Greensburg, Inc.: Continuing Video Case: A Town Rebounds......Page 637
PART 7 PRICING DECISIONS......Page 638
OPENING VIGNETTE: Dollar Tree Branches Out......Page 639
Pricing and the Law......Page 641
Pricing Objectives and the Marketing Mix......Page 644
MARKETING SUCCESS: Starbucks Takes a Shot at New Pricing and Promotions......Page 647
Pricing Objectives of Not-for-Profit Organizations......Page 649
SOLVING AN ETHICAL CONTROVERSY: Congestion Pricing: Who Really Bears the Burden?......Page 650
Methods for Determining Prices......Page 651
Price Determination in Economic Theory......Page 652
Price Determination in Practice......Page 657
The Modified Breakeven Concept......Page 660
Yield Management......Page 661
Global Issues in Price Determination......Page 663
Strategic Implications of Marketing in the 21st Century......Page 664
Review of Chapter Objectives......Page 665
Assessment Check Answers......Page 666
Assurance of Learning Review......Page 668
Projects and Teamwork Exercises......Page 669
Internet Exercises......Page 670
Case 18.1 Impact Fees: Who Pays, Who Profits?......Page 671
Video Case 18.2 Pricing Concepts at Evogear.com......Page 672
OPENING VIGNETTE: Imax Focuses on a Digital Future......Page 673
Pricing Strategies......Page 676
Price Quotations......Page 680
Pricing Policies......Page 685
ETIQUETTE TIPS FOR MARKETING PROFESSIONALS: How to Handle Price Increase......Page 686
MARKETING SUCCESS: Pricing of Green Products Equals Prestige......Page 689
Competitive Bidding and Negotiated Prices......Page 690
SOLVING AN ETHICAL CONTROVERSY: Ditching Cafeteria Trays—Does It Really Save Dough?......Page 691
Global Considerations and Online Pricing......Page 692
Strategic Implications of Marketing in the 21st Century......Page 694
Review of Chapter Objectives......Page 695
Assessment Check Answers......Page 696
Other Important Marketing Terms......Page 697
Critical-Thinking Exercises......Page 698
Internet Exercises......Page 699
Video Case 19.2 Pricing Strategy at Standard Renewable Energy......Page 700
Voice of Experience: Talking about Marketing Careers with Paul Williams......Page 701
Greensburg, Inc.: Continuing Video Case: Watt’s the Deal?......Page 703
Video Cases......Page 704
Appendix A: Your Career in Marketing......Page 722
Appendix B: Developing an Effective Marketing Plan......Page 740
Appendix C: Financial Analysis in Marketing......Page 754
Notes......Page 760
Glossary......Page 774
Name & Company Index......Page 788
Subject Index......Page 798
International Index......Page 815