MARKETING MANAGEMENT past, present and future.

Preface
	Our Applied Approach
	Our Global Perspective
	Our Incorporation of Technology
	Electronic and In-Print Versions
	Our Social Awareness
	Our Research Orientation
	Our Policy Orientation
	Our User Friendliness
	Our Target Orientation
	Our Instructor Support
Acknowledgments
Contents
About the Authors
1: An Overview of Marketing
	1.1	 Introduction
	1.2	 What Is Marketing?
		1.2.1	 Definitions of Marketing
	1.3	 A Brief History of Marketing Thought
	1.4	 The Structure of Marketing Theory
		Marketing in Action 1.1
			Walgreens Battles the Virtual Pharmacy
		1.4.1	 Goods Versus Services
		1.4.2	 Product Categories
		1.4.3	 Consumer Versus Industrial Markets
		1.4.4	 Profit Versus Nonprofit
		Manager’s Corner 1.1
			March of Dimes Uses Content Marketing Strategy to Raise Awareness and Funds for Their Social Cause
		1.4.5	 Intermediaries Versus End Users
		Web Exercise 1.1
		1.4.6	 Domestic Versus International
		1.4.7	 Small Firms Versus Large Firms
		1.4.8	 Industry Sector Specificity
		1.4.9	 Marketing and Double Bottom Lines
	1.5	 Marketing and Internal Resources
	Manager’s Corner 1.2
		The Soul and the Curative Marketing Concept
	1.6	 The Complexity of Marketing
		1.6.1	 Multiple Decision-Makers
		1.6.2	 Multiple Factors
		1.6.3	 Interaction
		1.6.4	 Time Frame
		1.6.5	 Global Factors
		1.6.6	 Enormous Flow of Information
	1.7	 The Marketing Mix
	1.8	 Selling Versus Marketing
	Manager’s Corner 1.3
		Overcoming Tension Between Sales and Marketing
	1.9	 Marketing and Corporate Strategy
	1.10	 The Difference Between Products and Benefits
	Web Exercise 1.1
	Marketing in Action 1.2
		The Art and Science of Marketing as Applied to Tantra
	1.11	 Marketing and Service Cultures
	1.12	 Marketing and Nonprofit Organizations
	References
		Further Reading
2: Marketing Planning
	2.1	 Introduction
	2.2	 The Marketing Plan
		2.2.1	 The Planning Process
		Manager’s Corner 2.1
			The Success Story of Haidilao, a Chinese Hotpot Eatery Chain
	2.3	 The Corporate Plan
		2.3.1	 Corporate Objectives
		2.3.2	 Objectives for Nonprofit Organizations
		2.3.3	 Corporate Mission
		Marketing in Action 2.1
			Empowering Customers Is the Redefined Mission of Microsoft
		2.3.4	 Corporate Vision
		2.3.5	 Marketing Myopia
	2.4	 The Marketing Audit
		2.4.1	 Analysis
		2.4.2	 SWOT Analysis
		2.4.3	 SWOT Analysis Limitation
		2.4.4	 Assumptions
		Web Exercise 2.1
	2.5	 Marketing Objectives
	2.6	 Marketing Strategies
		Manager’s Corner 2.2
			Yield Management
			Segmenting
			Preventing Arbitrage
			Advance Reservation
		Web Exercise 2.2
	2.7	 Detailed Plans and Programs
		2.7.1	 Reasons for Inadequate Planning
		2.7.2	 Marketing Plan Structure
		2.7.3	 Contingency Plan
		2.7.4	 Budgets as Managerial Tools
		2.7.5	 Measurement of Progress
		2.7.6	 Performance Analysis
		Marketing in Action 2.2
			Increasing Roswell Park Cancer Institute’s Market Share
		2.7.7	 Ethics in Marketing Planning
	References
		Further Reading
3: Understanding the Market Environment and the  Competition
	3.1	 Introduction
	3.2	 Theoretical Frameworks
		3.2.1	 The Sociocultural Environment
		3.2.2	 The Technological Environment
		3.2.3	 The Economic Environment
		3.2.4	 The Political and Legal Environment
		3.2.5	 The Ecological Background
	3.3	 Environmental Analysis
		3.3.1	 Environmental Scanning
		3.3.2	 Delphi Studies
		3.3.3	 Scenario Building
	3.4	 Competition
		3.4.1	 The Industry
		3.4.2	 Competitive Structure
		3.4.3	 Competitive Response
		3.4.4	 Competitive Strategies
		3.4.5	 Leaders and Followers
	References
		Further Reading
4: Understanding the Buyer
	4.1	 Introduction
	4.2	 A Model of Consumer Behavior
		4.2.1	 The Consumer Decision-Making Process
		4.2.2	 Problem or Need Recognition
		4.2.3	 Information Search
		4.2.4	 Evaluation of Alternatives
		4.2.5	 Purchase Decision
		4.2.6	 Postpurchase Behavior
	4.3	 What Factors Specifically Influence Consumers?
		4.3.1	 Economic Factors
		4.3.2	 Age and Life Cycle
		Manager’s Corner 4.1
			Marketers “Graduate” Buyers
		4.3.3	 Geography
		4.3.4	 Social Class
		4.3.5	 Culture
		Marketing in Action 4.1
			Starbucks Took 47 Years to Launch Its First Store in Italy
		4.3.6	 Peer Pressure
		Manager’s Corner 4.2
			Multicultural Websites in a Changing World
		4.3.7	 Lifestyle and Values
		4.3.8	 Diffusion of Innovation
		4.3.9	 Psychological Factors
		Manager’s Corner 4.3
			Technology and Marketing Opportunities
		4.3.10	 Globalization
	4.4	 Coordinating Consumer Dimensions
		Web Exercise 4.1
	4.5	 Organizational Purchasing
		4.5.1	 Demand Patterns
		4.5.2	 Decision-Makers and Influencers
		4.5.3	 Ethics and Buying
		Manager’s Corner 4.4
			Ethics in a Shrinking World
	4.6	 Usage and Loyalty
	4.7	 The Customer Franchise and Brand Equity
	References
		Further Reading
5: Marketing Research and Information
	5.1	 Introduction
	5.2	 Evaluating the Benefits of Research
		5.2.1	 The Risks of Inadequate Research
	5.3	 The Market Information System
		5.3.1	 System Structure
	5.4	 Secondary Data
		5.4.1	 Internal Database
		5.4.2	 Libraries
		5.4.3	 Directories and Newsletters
		5.4.4	 Commercial Information Providers
		5.4.5	 Trade Associations
		Web Exercise 5.1
	5.5	 Electronic Information Services
	5.6	 Evaluating Secondary Data Source and Quality
		5.6.1	 Source Quality
		5.6.2	 Data Quality
		5.6.3	 Data Compatibility
		Marketing in Action 5.1
	5.7	 Primary Marketing Research
		5.7.1	 Suppliers of Primary Marketing Research
	5.8	 The Marketing Research Process
		5.8.1	 Defining the Objectives
		5.8.2	 Determining the Research Level
		5.8.3	 Determining the Research Approach
		Manager’s Corner 5.1
		5.8.4	 Collecting the Data
		5.8.5	 Analyzing the Results
		5.8.6	 Reporting the Findings
	5.9	 Knowledge Is the Business
	Marketing in Action 5.2
	Appendix
		Selected Information Sources for Marketing Issues
	References
		Further Reading
6: Estimating the Market Demand
	6.1	 Introduction
	6.2	 Forecasts Versus Budgets
	6.3	 Short-Term, Medium-Term, and Long-Term Forecasts
		6.3.1	 Short-Term Forecasts
		6.3.2	 Medium-Term Forecasts
		6.3.3	 Long-Term Forecasts
	6.4	 The Dynamics of Forecasting
		6.4.1	 Forecasts into Budgets
		6.4.2	 High and Low Budgets
		6.4.3	 Macro- and Microforecasts
		6.4.4	 Derived Forecasts
		6.4.5	 World and National Economies
		6.4.6	 Market
		6.4.7	 Product
		6.4.8	 Legal and Political Issues
	6.5	 Forecasting Techniques
		6.5.1	 Qualitative Methods
		6.5.2	 Quantitative Methods
		6.5.3	 Spreadsheets
		6.5.4	 Alternatives to Forecasting
		6.5.5	 Factors Limiting Forecasts
		6.5.6	 Market Forecasting Software
	References
		Further Reading
7: Market Segmentation, Positioning, and Branding
	7.1	 Introduction
	7.2	 What Is a Market?
	7.3	 Who Is the Market?
		7.3.1	 Channels
	7.4	 Market Boundaries
		7.4.1	 Customers, Consumers (Users), and Prospects
		Marketing in Action 7.1
		7.4.2	 Penetration
		7.4.3	 Market Share and Share of Wallet
		7.4.4	 The Pareto, or 80/20, Effect
	7.5	 Market Segments
		Web Exercise 7.1
		7.5.1	 Segmentation
		7.5.2	 Benefit Segmentation
		7.5.3	 Segmentation by Consumption Profile
		7.5.4	 Segmentation Across National Boundaries
		7.5.5	 Segment Viability
		7.5.6	 The Internet and Segmentation
		7.5.7	 Segmentation Methods and Practical Segmentation
	7.6	 Product/Service Positioning
		7.6.1	 Positioning over Time
		7.6.2	 Perceptual Maps
		7.6.3	 Target Marketing
	7.7	 Possible Approaches to Segmentation
		7.7.1	 Single Segment
		7.7.2	 Multiple Segments
		7.7.3	 Cross-Segment
		Web Exercise 7.2
		7.7.4	 Full Coverage (“Mass Marketing”)
		7.7.5	 Counter-Segmentation
		7.7.6	 Segmentation and Ethics
	Manager’s Corner 7.1
	7.8	 Differentiation and Branding
		7.8.1	 Brand Monopoly
		7.8.2	 Branding Policies and Strategies
		7.8.3	 Brand Extension
		7.8.4	 Multibrands
		7.8.5	 Cannibalization
		Marketing in Action 7.2
		7.8.6	 Cobranding
		7.8.7	 Private and Generic Brands
		7.8.8	 Differentiation of Services
	References
		Further Reading
8: Product and Service Decisions
	8.1	 Introduction
	8.2	 The Product Package
	8.3	 The Product Audit
	8.4	 The Product Strategy
		8.4.1	 Market Penetration
			Manager’s Corner 8.1
		8.4.2	 Product Development
		8.4.3	 Market Development
		8.4.4	 Diversification
	8.5	 The Ansoff Matrix
		Marketing in Action 8.1
	8.6	 The Product Life Cycle
		8.6.1	 Life-Cycle Stages
		8.6.2	 Lessons of the Product Life Cycle
	8.7	 Other Life Cycles
		8.7.1	 Life-Cycle Extension
		8.7.2	 Fashion and Fads
		8.7.3	 Technological Life Cycle
		8.7.4	 The International Product Cycle
			Manager’s Corner 8.2
	8.8	 Product Life
		8.8.1	 Life Cycles and Marketing Strategy
	8.9	 Cash Flow
	Web Exercise 8.1
	8.10	 Product Portfolios
		8.10.1	 The Boston Consulting Group Matrix
		8.10.2	 Theory Versus Practice
		8.10.3	 Product Mix
	8.11	 Refining Product Strategies
		Marketing in Action 8.2
	8.12	 Product Standardization and Adaptation
	Web Exercise 8.2
	8.13	 Packaging
	8.14	 Strategies for Services
		8.14.1	 Service Categories
		8.14.2	 Distinctive Features of Services
			Manager’s Corner 8.3
		8.14.3	 Marketing Repercussions of Service
	References
		Further Reading
9: New Products
	9.1	 Introduction
	9.2	 Gap Analysis for Scanning and Idea Generation
		9.2.1	 Usage Gap
		9.2.2	 Distribution Gap
		Marketing in Action 9.1
		Web Exercise 9.1
		9.2.3	 Product Gap
		9.2.4	 Competitive Gap
		Manager’s Corner 9.1
		9.2.5	 Market Gap Analysis
		9.2.6	 Broader Objectives
		9.2.7	 Beyond the Trends
	9.3	 Product Modification
	9.4	 New Product Development
		9.4.1	 Customers
		9.4.2	 Innovative Imitation
	9.5	 Corporate Response
		9.5.1	 Production Capabilities
		9.5.2	 Financial Performance
		9.5.3	 Investment Potential
		9.5.4	 Human Factors
		9.5.5	 Materials Supply
		9.5.6	 Cannibalism
		9.5.7	 Time
	9.6	 Marketing Response
		9.6.1	 Match with Existing Product Lines
		9.6.2	 Price and Quality
		9.6.3	 Distribution Patterns and Capabilities
		9.6.4	 Seasonality
	9.7	 Product Development Process
		9.7.1	 Strategic Screening
		9.7.2	 Concept Testing
		9.7.3	 Product Development
		9.7.4	 Product Testing
		Marketing in Action 9.2
		9.7.5	 Test Marketing
	9.8	 Product Launch
		9.8.1	 Product Replacement
		9.8.2	 Risk Versus Time
		9.8.3	 Japanese-Style Product Development
	References
		Further Reading
10: Pricing Decisions
	10.1	 Introduction
	10.2	 Price
		10.2.1	 Service Prices
		10.2.2	 Price and Nonprofit Organizations
	10.3	 Demand and Supply
		10.3.1	 Price Elasticity of Demand
		10.3.2	 Estimation of the Demand Curve and Price Elasticity
		10.3.3	 Organization-Controlled Factors
		Manager’s Corner 10.1
		10.3.4 Customer Factors
		10.3.5	 Market Factors
	10.4	 Pricing New Products
		Manager’s Corner 10.2
		10.4.1	 Alternative Pricing Strategies
		10.4.2	 Practical Pricing Policies
	Marketing in Action 10.1
	10.5	 Discounts
		10.5.1	 Price Negotiation
	10.6	 Pricing Strategy
		10.6.1	 Price Wars
		10.6.2	 Reactions to Price Challenges
		Manager’s Corner 10.3
		10.6.3	 Avoiding Price Wars
		10.6.4	 Price Increases
	Manager’s Corner 10.4
	10.7	 Global Geopolitical Issues and Pricing Considerations
	References
		Further Reading
11: Distribution and Supply Chain Management
	11.1	 Introduction
	11.2	 The Distribution Channel
		11.2.1	 Channel Members and Levels
		Web Exercise 11.1
		11.2.2	 Channel Decisions
		11.2.3	 Channel Compensation
		Marketing in Action 11.1
			The Body Shop Foresees Changes in Its Retail Store Concept
	11.3	 Channel Management
		11.3.1	 Channel Membership
		11.3.2	 Channel Motivation
		11.3.3	 Monitoring Channels
		Manager’s Corner 11.1
			Gray Markets: Advantages and Disadvantages
	11.4	 Retailing
		11.4.1	 Type of Product or Service Sold
		11.4.2	 Type of Customer Service
		11.4.3	 Type of Organization
		11.4.4	 Location
		Manager’s Corner 11.2
			Computer-Dating the Customer
		11.4.5	 Branding Focus of the Retailers
	11.5	 Wholesaling
	11.6	 Purchasing
	11.7	 Supply Chain Management
		Manager’s Corner 11.3
			Supplying Product with Dignity
		11.7.1	 Production Decisions
		Manager’s Corner 11.4
			Global Supply Chain Management at McDonald’s
		11.7.2	 Transportation Decisions
		Manager’s Corner 11.5
			The Challenge of Short Shelf Life
		Marketing in Action 11.2
			Pepsi-Cola Seeks Bottlers for Abroad
		11.7.3	 Facility Decisions
		11.7.4	 Inventory Decisions
		11.7.5	 Inventory as a Strategic Tool
		11.7.6	 Communications Decisions
	11.8	 Logistics and the Environment
	11.9	 Customer Service
		11.9.1	 Service Levels
		11.9.2	 Customer Complaints
		11.9.3	 Customer Satisfaction
		11.9.4	 Organizing for Customer Service
	References
		Further Reading
12: Designing Effective Promotion and Advertising Strategies
	12.1	 Introduction
	12.2	 Dialogue
		12.2.1	 Encoding and Decoding
		12.2.2	 Marketing Mix
	12.3	 Corporate Promotion Versus Brand Promotion
	12.4	 Push Versus Pull
		Manager’s Corner 12.1
			Techno-branding!
			Techno-branding Processes
			Intel’s Success Story
	12.5	 Consumer Versus Industrial Advertising
	12.6	 Creating the Correct Messages
		12.6.1	 Awareness
		12.6.2	 Interest
		Marketing in Action 12.1
			Creating Coke Zero’s Awareness: “Next Time You’re Thirsty, Drink an Ad!”
		12.6.3	 Understanding
		12.6.4	 Attitudes
		12.6.5	 Buying Decision
	12.7	 Other Models
	12.8	 The Message
		12.8.1	 Message Consistency
		12.8.2	 Opinion Leaders
		12.8.3	 Word of Mouth
		12.8.4	 Message Selection
		12.8.5	 Cognitive Dissonance
		12.8.6	 Promotional Message and Promotional Purpose
		Marketing in Action 12.2
			Is Advertising the Name of the Game for Shoe Manufacturers?
		Web Exercise 12.1
	12.9	 Media Selection
		12.9.1	 Coverage
		12.9.2	 Frequency
		12.9.3	 Types of Media and Their Characteristics
		Manager’s Corner 12.2
			How Do We Measure the Effectiveness of Ads on the Internet?
		Web Exercise 12.2
	12.10	 Promotional Mix
		12.10.1	 Promotion of Services
		12.10.2	 Promotion in Nonprofit Organizations
	12.11	 Advertising Plan
		12.11.1	 Deciding on Advertising Budgets
		12.11.2	 Researching Advertising Effectiveness
		12.11.3	 Determining Coupon Response
		12.11.4	 Selecting an Advertising Agency
	12.12	 Internet Advertising and Creating Attention
	References
		Further Reading
13: Direct Marketing, Sales Promotion, and Public Relations
	13.1	 Precision Marketing
		13.1.1	 Availability and Consolidation of Secondary Data
		13.1.2	 Point-of-Sale Data
		13.1.3	 Manipulation of Data
	13.2	 Direct Marketing Delivery Systems
		13.2.1	 Direct Mail Communication
		13.2.2	 Advantages and Disadvantages of Direct Mail
		13.2.3	 Structuring the Direct Mail Campaign
		13.2.4	 Internet-Based Communications
		13.2.5	 Door-to-Door
		13.2.6	 Publications
	13.3	 Telemarketing and Email Marketing
		13.3.1	 Network Marketing
	13.4	 Sales Promotion
		13.4.1	 Advantages and Disadvantages of Sales Promotion
		13.4.2	 Promotional Pricing
		13.4.3	 Nonprice Promotions
		13.4.4	 Sampling
	13.5	 Sponsorship
	13.6	 Trade Shows
	13.7	 The Press and Public Relations
		13.7.1	 Media Contact
		13.7.2	 News Stories
		13.7.3	 The Press Office
		13.7.4	 Corporate Public Relations
	References
		Further Reading
14: Selling and Sales Management
	14.1	 Introduction
	14.2	 Territory Management and Planning
		14.2.1	 Geographical Territories
		14.2.2	 Territory Plans
		14.2.3	 Annual Calls Available
		14.2.4	 Sales Personnel Plan
	14.3	 The Sales Professional
		14.3.1	 Individual Management of Sales
		14.3.2	 Territory Sales Plan
		14.3.3	 Sales Objectives
	14.4	 Industrial (B2B) Sales
		14.4.1	 Industrial Buying Situations
		14.4.2	 Decision-Makers and Influencers
		14.4.3	 Project Management
		14.4.4	 Proposals
	14.5	 Interorganizational Relations
		14.5.1	 Relationship Marketing and Corporate Sales Management
		14.5.2	 Account Planning
	14.6	 Sales Team Management
		14.6.1	 Marketing Management
		Marketing in Action 14.1
		14.6.2	 Cultural Generalization
		Manager’s Corner 14.1
		14.6.3	 People Management
		14.6.4	 Technological Management
	References
		Further Reading
15: The Future of Marketing
	15.1	 Introduction
	15.2	 Environmental Changes
		15.2.1 The Technological Environment
		Web Exercise 15.1
		Marketing in Action 15.1
		15.2.2 The Financial Environment
		15.2.3	 The Regulatory Environment
		15.2.4	 The Societal Environment
		Web Exercise 15.2
		15.2.5	 The Competitive Environment
		15.2.6	 The Geopolitical Environment
		15.2.7	 The Novel Coronavirus and the Postpandemic World
	15.3	 Effects on Marketing Management
		15.3.1	 Product Policy
		15.3.2	 Pricing Policy
		15.3.3	 Distribution Strategy
		15.3.4	 Communications Strategy
		Marketing in Action 15.2
	15.4	 Marketing: Past, Present, and Future
		15.4.1	 Customers and Marketers: Mirror of Each Other
		15.4.2	 Ethical Consumers and the Sustainability Concerns
		15.4.3	 Expanding Marketing Mix
		15.4.4	 Cross-Cultural Customers: The Global Village—A Single Market
		15.4.5	 Ongoing Changes in Marketplace
		Manager’s Corner 15.1
		15.4.6	 Marketers are Change Agents
	References
		Further Reading
Cases
	Case 1: Yo Man! It’s Yao Ming!
		Ming, the Next Big Thing
		Looking Back to the Cross-Border Yao Ming Mania
		NBA Going Global
		Corporate “Courtship”
		Challenges for the “Great Wall”
		“The Golden Bridge”
	Case 2: BMW Marketing Innovation
		Company Profile
		Marketing Overview
		BMW Film
		Film Concept
		Target Audience
		Characteristics of the Typical BMW Target Audience
		Marketing Channels
		Competitive Analysis
	Case 3: It Is Not on the Shelf! Is It?: How Marketing Myopia Occurs
		Marketing Overview
		Marketing Myopia: A Real-Life Example
		How We Could Avoid Marketing Myopia
	Case 4: Citibank N.A. in Japan
		The Japanese Banking Scene
		Citibank Worldwide
		The Citibank Global Network
		Long Presence and Local Market Experience
		Localization Commitment
		Technological Orientation
		The Rise of Citibank in Japan
		Strategic Alliances
		Financial Record
		Major Competitors
		Marketing Strategy
		Challenges for Citibank
	Case 5: Gap Inc.
		Brief Background of Gap Inc.
		Growth and Expansion
		Selling Private, Store-Brand Product
		Gap Inc. Operating Components
		Retail Divisions
		Products and Customer Base
		Sourcing
		Advertising
		Distribution
		Marketing
		Performance
		Conclusion
	Case 6: The Value-Breeding Bond Network of Hawthorn: A Relationship Marketing Context in a Business-to-Business Setting
		Background
		From Value Network to Value-Breeding Bond Network: A Relationship Marketing Context
		The Hawthorn–Tasmania Marriage: An Example of a Value-Breeding Bond Network
		Irresolution About the Future of the Hawthorn–Tasmania Partnership
	Case 7: Marketing and the Environment: Tuna Versus Dolphins
		Trade Implications
		The Ongoing Debate
		Current Actions to Protect Marine Animals from Vessel Collision
	Case 8: The Embryonic Phase of Spectrum Color
		History
		Product Line
		The Embryonic Phase of Spectrum: Market Competition and Expansion
	Case 8 Appendix: The Basics of Color and Appearance
		The Language of Color
	Case 9: Implications of the Ancient Business Concepts for Contemporary Markets: Background and a Case Example
		Context
		Implications of Business History
		Looking Back at Different Previous Market Dynamics
		Microcredit: A Case Example of the Implications of Historical Business Concepts for Contemporary Markets
	Case 10: Will Natural Diamonds Remain Forever?
		Diamonds Take Forever
		The Gem of the Diamond Industry: De Beers
		Technology “Rocks” the Industry: Gemesis and Apollo
		Gemesis
		Apollo
		Marketing “Cultured” Diamonds
		De Beers Diamonds Feel the Pressure
		Diamonds’ Fifth C: Consumers
		Conclusion
	Case 11: Does Mattel Sell Dolls or Dreams?
		Introduction
		Brief History: A Story of Marketing Success
		Imagine the Possibilities
		Diagnosis of Imagine the Possibilities
		Conclusion
	Case 12: The Changing Global Context: A Philosophical Approach to Deal with the Embryonic Market Environment
		New Policy for a New World
		Freedom and Globalization: Simultaneously Possible
		The Impact of Trust Bridges on Business
		Let the Soul Lead the Way
Practice Quiz Answer
Glossary
Name Index
Subject Index
Company Index