Marketing: an introduction

Cover......Page 1
Title Page......Page 6
Copyright Page......Page 7
Brief Contents......Page 12
Contents......Page 14
Preface......Page 24
Acknowledgments......Page 30
   Previewing the Concepts......Page 33
   First Stop: Emirate’s Customer-Value DrivenMarketing......Page 34
  What Is Marketing?......Page 35
   The Marketing Process......Page 36
   Market Offerings—Products, Services, and Experiences......Page 37
   Exchanges and Relationships......Page 38
   Markets......Page 39
   Marketing Management Orientations......Page 40
  Preparing an Integrated Marketing Plan and Program......Page 43
   Customer Relationship Management......Page 44
   Marketing at Work 1.1: Amazon: Delighting Customers and Delivering Satisfying Online Customer Experiences......Page 46
   Customer Engagement and Today’s Digital and Social Media......Page 49
   Consumer-Generated Marketing......Page 50
  Capturing Value from Customers......Page 51
   Growing Share of Customer......Page 52
   Building Customer Equity......Page 53
   The Digital Age: Online, Mobile, and Social Media Marketing......Page 55
   Marketing at Work 1.2: Facebook: Real-Time Marketing All the Time......Page 57
   The Growth Of Not-for-Profit Marketing......Page 59
   Rapid Globalization......Page 60
   Sustainable Marketing—The Call for More Environmental and Social Responsibility......Page 61
  So, What Is Marketing? Pulling It All Together......Page 62
   Objectives Review......Page 64
   Discussion Questions......Page 65
   Marketing Ethics......Page 66
   Video Case......Page 67
   Company Cases......Page 68
   Previewing the Concepts......Page 69
   First Stop: Rolex......Page 70
  Company-Wide Strategic Planning: Defining Marketing’s Role......Page 71
   Defining a Market-Oriented Mission......Page 72
   Setting Company Objectives and Goals......Page 73
   Designing the Business Portfolio......Page 74
   Marketing at Work 2.1: Red Bull: The Global Market Leader in Energy Drinks Skillfully ManagesIts Business Portfolio......Page 75
  Planning Marketing: Partnering to Build Customer Relationships......Page 79
   Partnering with Other Company Departments......Page 80
  Marketing Strategy and the Marketing Mix......Page 81
   Customer Value-Driven Marketing Strategy......Page 82
   Developing an Integrated Marketing Mix......Page 84
   Marketing at Work 2.2: DuckDuckGo: Google’s Tiniest, Fiercest Competitor......Page 85
   Marketing Analysis......Page 87
   Marketing Implementation......Page 88
   Marketing Department Organization......Page 90
  Measuring And Managing Marketing Return On Investment......Page 91
   Objectives Review......Page 93
   Critical Thinking Exercises......Page 94
   Marketing by the Numbers......Page 95
   Company Cases......Page 96
Part 2 Understanding the Marketpiace and Customer Value......Page 15
   Previewing the Concepts......Page 97
   First Stop: Philips......Page 98
   The Company......Page 99
   Suppliers......Page 100
   Competitors......Page 101
   Publics......Page 102
   The Demographic Environment......Page 103
   The Economic Environment......Page 111
   The Natural Environment......Page 112
   The Technological Environment......Page 113
   Marketing at Work 3.1: Chipotle’s Environmental Sustainability Mission: Food With Integrity......Page 114
   The Political and Social Environment......Page 116
   The Cultural Environment......Page 119
  Responding to the Marketing Environment......Page 122
   Marketing at Work 3.2: In the Social Media Age: When the Dialogue Gets Nasty......Page 123
   Objectives Review......Page 125
   online, Mobile, and social Media Marketing......Page 126
   Video Case......Page 127
   Company Cases......Page 128
   Previewing the Concepts......Page 129
   First Stop: Ferrero......Page 130
  Marketing Information and Customer Insights......Page 131
   Managing Marketing Information......Page 132
   Internal Data......Page 133
   Competitive Marketing Intelligence......Page 134
   Marketing at Work 4.1: Social Media Command Centers: Listening to and Engaging Customers in Social Space......Page 135
  Marketing Research......Page 137
   Developing the Research Plan......Page 138
   Gathering Secondary Data......Page 139
   Primary Data Collection......Page 140
   Interpreting and Reporting the Findings......Page 148
   Customer Relationship Management (CRM)......Page 149
   Big Data and Marketing Analytics......Page 150
   Marketing at Work 4.2: Netflix Streams Success with Big Data and Marketing Analytics......Page 151
   Distributing and Using Marketing Information......Page 153
   Marketing Research in Small Businesses and Nonprofit Organizations......Page 154
   International Marketing Research......Page 155
   Public Policy and Ethics in Marketing Research......Page 156
   Objectives Review......Page 159
   Critical Thinking Exercises......Page 160
   Marketing by the Numbers......Page 161
   Company Cases......Page 162
   Previewing the Concepts......Page 163
   First Stop: Lenovo......Page 164
   Model of Consumer Behavior......Page 165
   Characteristics Affecting Consumer Behavior......Page 166
   Marketing at Work 5.1: Word-of-Mouth Marketing: Sparking Brand Conversations and Helping Them Catch Fire......Page 171
   Marketing at Work 5.2: Taco Bell: More than Just Tacos, a “Live Más” Lifestyle......Page 175
   Information Search......Page 180
   Purchase Decision......Page 181
  The Buyer Decision Process for New Products......Page 182
   Individual Differences in Innovativeness......Page 183
   Influence of Product Characteristics on Rate of Adoption......Page 184
   Business Markets......Page 185
   Business Buyer Behavior......Page 187
   Engaging Business Buyers with Digital and Social Marketing......Page 192
   Objectives Review......Page 195
   Critical Thinking Exercises......Page 196
   Marketing by the Numbers......Page 197
   Company Cases......Page 198
Part 3 Designing A Customer Value-Driven Strategy and Mix......Page 17
   Previewing the Concepts......Page 199
   First Stop: Henkel’s Persil......Page 200
  Market Segmentation......Page 201
   Segmenting Consumer Markets......Page 202
   Segmenting Business Markets......Page 207
   Segmenting International Markets......Page 208
   Requirements for Effective Segmentation......Page 209
   Selecting Target Market Segments......Page 210
   Marketing at Work 6.1: Hypertargeting: Walking a Fine Line between Serving Customers and Stalking Them......Page 217
  Differentiation and Positioning......Page 218
   Positioning Maps......Page 219
   Choosing a Differentiation and Positioning Strategy......Page 220
   Marketing at Work 6.2: LEGO: Successfully Reviving the Positioning Strategy and Value Proposition......Page 225
   Communicating and Delivering the Chosen Position......Page 226
   Objectives Review......Page 227
   Discussion Questions......Page 228
   Marketing Ethics......Page 229
   Company Cases......Page 230
   Previewing the Concepts......Page 231
   First Stop: IKEA......Page 232
   Products, Services, and Experiences......Page 233
   Levels of Product and Services......Page 234
   Product and Service Classifications......Page 235
   Individual Product and Service Decisions......Page 238
   Product Line Decisions......Page 244
   Product Mix Decisions......Page 245
   The Nature and Characteristics of a Service......Page 246
   Marketing Strategies for Service Firms......Page 247
   The Service Profit Chain......Page 248
   Marketing at Work 7.1: HSBC: Taking Care of Those Who Take Care of the Customer......Page 249
  Branding Strategy: Building Strong Brands......Page 252
   Brand Equity and Brand Value......Page 253
   Building Strong Brands......Page 254
   Managing Brands......Page 260
   Marketing at Work 7.2: Adidas: Successful Brand Extensions......Page 261
   Objectives Review......Page 263
   Critical Thinking Exercises......Page 264
   Marketing by the Numbers......Page 265
   Company Cases......Page 266
   Previewing the Concepts......Page 267
   First Stop: Nestlé......Page 268
  New Product Development Strategy......Page 269
   Idea Generation......Page 270
   Marketing at Work 8.1: Open Innovation at NIVEA: Throwing the Innovation Doors Wide Open......Page 272
   Concept Development and Testing......Page 274
   Marketing Strategy Development......Page 275
   Product Development......Page 276
   Test Marketing......Page 277
   Customer-Centered New Product Development......Page 278
   Systematic New Product Development......Page 279
  Product Life-Cycle Strategies......Page 280
   Introduction Stage......Page 282
   Marketing at Work 8.2: Managing L’Oréal’s Product Life Cycle: More Than Just Makeup......Page 283
   Growth Stage......Page 284
   Maturity Stage......Page 285
   Decline Stage......Page 286
   Product Decisions and Social Responsibility......Page 287
   International Product and Services Marketing......Page 288
   Objectives Review......Page 289
   Key Terms......Page 290
   Marketing Ethics......Page 291
   Company Cases......Page 292
   Previewing the Concepts......Page 293
   First Stop: Amazon versus Walmart......Page 294
  What Is a Price?......Page 295
   Customer Value-Based Pricing......Page 296
   Marketing at Work 9.1: ALDI: Impressively High Quality at Impossibly Low Prices, Every Day......Page 299
   Cost-Based Pricing......Page 300
   Competition-Based Pricing......Page 302
   Overall Marketing Strategy, Objectives, and Mix......Page 303
   Organizational Considerations......Page 304
   The Market and Demand......Page 305
   The Economy......Page 306
   Other External Factors......Page 307
   Market-Penetration Pricing......Page 308
   Product Line Pricing......Page 309
   By-Product Pricing......Page 310
   Discount and Allowance Pricing......Page 311
   Segmented Pricing......Page 312
   Promotional Pricing......Page 313
   Geographical Pricing......Page 314
   Dynamic and Online Pricing......Page 315
   Marketing at Work 9.2: Dynamic Pricing at EasyJet and Ryanair: Climbing the Skies with Low Prices......Page 316
   International Pricing......Page 318
   Initiating Price Changes......Page 319
   Responding to Price Changes......Page 321
  Public Policy and Pricing......Page 322
   Pricing within Channel Levels......Page 323
   Pricing Across Channel Levels......Page 324
   Objectives Review......Page 325
   Discussion Questions......Page 326
   Marketing Ethics......Page 327
   Company Cases......Page 328
   Previewing the Concepts......Page 329
   First Stop: Uber......Page 330
  Supply Chains and the Value Delivery Network......Page 331
   How Channel Members Add Value......Page 332
   Number of Channel Levels......Page 334
   Channel Behavior......Page 335
   Vertical Marketing Systems......Page 336
   Horizontal Marketing Systems......Page 338
   Changing Channel Organization......Page 339
   Marketing at Work 10.1: Zara: Though Disintermediation to the Top of World Fashion......Page 341
   Analyzing Consumer Needs......Page 342
   Setting Channel Objectives......Page 343
   Identifying Major Alternatives......Page 344
   Designing International Distribution Channels......Page 345
   Selecting Channel Members......Page 346
   Managing and Motivating Channel Members......Page 347
   Marketing at Work 10.2: Amazon and P&G: Taking Channel Partnering to a New Level......Page 348
   Evaluating Channel Members......Page 349
   Nature and Importance of Marketing Logistics......Page 350
   Goals of the Logistics System......Page 352
   Major Logistics Functions......Page 353
   Integrated Logistics Management......Page 356
   Objectives Review......Page 358
   Key Terms......Page 359
   Online, Mobile, and Social Media Marketing......Page 360
   Video Case......Page 361
   Company Cases......Page 362
   Previewing the Concepts......Page 363
   First Stop: UNIQLO......Page 364
   Retailing: Connecting Brands with Consumers......Page 365
   Types of Retailers......Page 366
   Retailer Marketing Decisions......Page 372
   Marketing at Work 11.1: The Dubai Mall: Digitizing the In-Store Retail Experience......Page 375
   Retailing Trends and Developments......Page 379
   Marketing at Work 11.2: Omni-Channel Retailing: Creating a Seamless Shopping Experience......Page 382
  Wholesaling......Page 386
   Types of Wholesalers......Page 387
   Wholesaler Marketing Decisions......Page 388
   Trends in Wholesaling......Page 390
   Objectives Review......Page 391
   Critical Thinking Exercises......Page 392
   Marketing by the Numbers......Page 393
   Company Cases......Page 394
   Previewing the Concepts......Page 395
   First Stop: Dove......Page 396
  The Promotion Mix......Page 397
   The New Marketing Communications Model......Page 398
   Marketing at Work 12.1: Just Don’t Call It Advertising: It’s Content Marketing......Page 400
   The Need for Integrated Marketing Communications......Page 401
   Shaping the Overall Promotion Mix......Page 403
   Setting Advertising Objectives......Page 406
   Setting the Advertising Budget......Page 408
   Developing Advertising Strategy......Page 410
   Evaluating Advertising Effectiveness and the Return on Advertising Investment......Page 419
   Marketing at Work 12.2: The World Cup as the Biggest Ad Game in the World—But Is It Worth thePrice?......Page 420
   Other Advertising Considerations......Page 421
  Public Relations......Page 423
   Major Public Relations Tools......Page 424
   Objectives Review......Page 425
   Critical Thinking Exercises......Page 426
   Marketing Ethics......Page 427
   Company Cases......Page 428
   Previewing the Concepts......Page 429
   First Stop: Salesforce......Page 430
   The Nature of Personal Selling......Page 431
   The Role of the Sales Force......Page 432
   Designing the Sales Force Strategy and Structure......Page 433
   Recruiting and Selecting Salespeople......Page 437
   Training Salespeople......Page 438
   Compensating Salespeople......Page 439
   Supervising and Motivating Salespeople......Page 440
  Social Selling: Online, Mobile, and Social Media Tools......Page 441
   Marketing at Work 13.1: B-to-B Salespeople: In This Digital and Social Media Age, Who Needs Them Anymore?......Page 442
   Steps in the Selling Process......Page 445
   Personal Selling and Managing Customer Relationships......Page 447
   The Rapid Growth of Sales Promotion......Page 448
   Sales Promotion Objectives......Page 449
   Major Sales Promotion Tools......Page 450
   Marketing at Work 13.2: P&G’s “Everyday Effect” Event: A Great Marriage between Old-School Promotions and New-School Social Sharing......Page 452
   Developing the Sales Promotion Program......Page 454
   Objectives Review......Page 455
   Discussion Questions......Page 456
   Marketing Ethics......Page 457
   Company Cases......Page 458
   Previewing the Concepts......Page 459
   First Stop: Samsung Electronics......Page 460
   The New Direct Marketing Model......Page 461
   Benefits of Direct and Digital Marketing to Buyers and Sellers......Page 462
  Forms of Direct and Digital Marketing......Page 463
   Marketing, the Internet, and the Digital Age......Page 464
   Online Marketing......Page 465
   Social Media Marketing......Page 470
   Marketing at Work 14.1: Social Media Monetization: Making Money without Driving Fans Away......Page 471
   Mobile Marketing......Page 474
   Marketing at Work 14.2: Mobile Marketing: Smartphones Are Changing How People Live—and How They Buy......Page 476
   Direct-Mail Marketing......Page 478
   Catalog Marketing......Page 479
   Direct-Response Television Marketing......Page 480
   Kiosk Marketing......Page 481
   Irritation, Unfairness, Deception, and Fraud......Page 482
   A Need for Action......Page 483
   Objectives Review......Page 485
   Discussion Questions......Page 486
   Marketing Ethics......Page 487
   Company Cases......Page 488
   Previewing the concepts......Page 489
   first stop......Page 490
  Global Marketing Today......Page 491
   The International Trade System......Page 493
   Economic Environment......Page 495
   Political-Legal Environment......Page 496
   Marketing at Work 15.1: International Marketing: Targeting the Bottom of the Economic Pyramid......Page 497
   Cultural Environment......Page 498
  Deciding Whether to go Global......Page 501
  Deciding Which Markets to Enter......Page 502
   Exporting......Page 503
   Joint Venturing......Page 504
   Direct Investment......Page 505
  Deciding on the Global Marketing Program......Page 506
   Product......Page 507
   Promotion......Page 508
   Marketing at Work 15.2: Localizing Chinese Brand Names: Very Important but Notoriously Tricky......Page 510
   Price......Page 511
   Distribution Channels......Page 512
  Deciding on the Global Marketing Organization......Page 514
   Key Terms......Page 515
   Online, Mobile, and Social Media Marketing......Page 516
   Video Case......Page 517
   Company Cases......Page 518
   Previewing the Concepts......Page 519
   First Stop: Unilever’s Knorr......Page 520
  Sustainable Marketing......Page 521
   Marketing’s Impact on Individual Consumers......Page 523
   Marketing’s Impact on Society as a Whole......Page 527
   Marketing’s Impact on Other Businesses......Page 529
  Consumer Actions to Promote Sustainable Marketing......Page 530
   Consumerism......Page 531
   Environmentalism......Page 532
   Marketing at Work 16.1: Sustainability at Unilever: Creating a Better Future Every Day......Page 533
   Public Actions to Regulate Marketing......Page 536
   Sustainable Marketing Principles......Page 537
   Marketing at Work 16.2: TOMS: “Be the Change You Want to See in the World”......Page 539
   Societal Marketing......Page 540
   Marketing Ethics......Page 541
   The Sustainable Company......Page 544
   Objectives Review......Page 545
   Online, Mobile, and Social Media Marketing......Page 546
   Video Case......Page 547
   Company Cases......Page 548
 Appendix 1 Company Cases......Page 550
 Appendix 2 Marketing Plan......Page 582
 Appendix 3 Marketing by the Numbers......Page 592
 Appendix 4 Careers in Marketing......Page 610
Glossary......Page 622
References......Page 632
Index......Page 654