Download MARKETING Thirteenth Edition Roger A. Kerin Southern

MARKETING
Thirteenth Edition
Roger A. Kerin
Southern Methodist University
Steven W Hartley
University of Denver
Mc
Graw
Hill
Education
DETAILED CONTENTS
Initiating the Marketing Process
1
CREATING CUSTOMER RELATIONSHIPS AND VALUE
THROUGH MARKETING 2
At Chobani, Marketing Is "Nothing But Good"! 2
Understanding Consumers' Food Values 2
Reaching Customers 2
Chobani Today 3
Chobani, Marketing, and You 3
What Is Marketing? 4
Marketing and Your Career 4
Marketing: Delivering Value to Customers 5
The Diverse Elements Influencing Marketing
Actions 5
What Is Needed for Marketing to Occur 6
How Marketing Discovers and Satisfies Consumer
Needs 7
Discovering Consumer Needs 7
The Challenge: Meeting Consumer Needs with New
Products 7
Satisfying Consumer Needs 9
The Marketing Program: How Customer Relationships
Are Built 10
Relationship Marketing: Easy to Understand, Hard to Do 10
The Marketing Program and Market Segments 12
3M's Strategy and Marketing Program to Help Students
Study 12
How Marketing Became So Important 14
Evolution of the Market Orientation 14
Focusing on Customer Relationship Management 15
Ethics and Social Responsibility in Marketing: Balancing the
Interests of Different Groups 16
The Breadth and Depth of Marketing 17
Learning Objeetives Review 19
Learning Review Answers 19
Focusing on Key Terms 20
Applying Marketing Knowledge 20
Building Your Marketing Plan 20
Video Case 1: Chobani1'1: Making Greek Yogurt a
Household Name 21
Chapter Notes 24
2
DEVELOPING SUCCESSFUL ORGANIZATIONAL AND
MARKETING STRATEGIES 26
Making the World a Better Place, One Scoop
at a Time! 26
xxiv
Today's Organizations 28
Kinds of Organizations 28
What Is Strategy? 28
The Structure of Today's Organizations 28
Making Responsible Decisions: Social Entrepreneurs Are
Creating New Types of Organizations to Pursue Social
Goals 29
Strategy in Visionary Organizations 30
Organizational Foundation: Why Does It Exist? 30
Organizational Direction: What Will It Do? 32
Organizational Strategies: How Will It Do It? 33
Tracking Strategie Performance with Marketing Analytics
33
Applying Marketing Metrics: How Well Is Ben &
Jerry's Döing? 35
Setting Strategie Directions 35
A Look Around: Where Are We Now? 35
Growth Strategies: Where Do We Want to Go?
36
Marketing Matters: Filling the Shoes of Apple CEO Tim Cook:
Where Will Apple's Projected Future Growth for Its Major
SBUs Come From? 37
The Strategie Marketing Process 40
The Flanning Phase of the Strategie Marketing Process 40
The Implementation Phase of the Strategie Marketing
Process 43
The Evaluation Phase of the Strategie Marketing Process 45
Learning Objectives Review 47
Learning Review Answers 48
Focusing on Key Terms 49
Applying Marketing Knowledge 49
Building Your Marketing Plan 49
Video Case 2: IBM: Using Strategy to Build a "Smarter
Planet" 49
Chapter Notes 57
Appendix A
3
Building an Effective Marketing Plan 54
SCANNING THE MARKETING ENVIRONMENT
70
Is "Connecting the World" an Ambitious Vision? Not If You Are
Facebook! 70
Facebook in the Future 70
Environmental Scanning 72
Tracking Environmental Trends 72
An Environmental Scan of Today's Marketplace 73
Social Forces 74
Demographics 74
XXV
Making Responsible Decisions: Millennials Are a Force
for Good 77
Culture 80
Economic Forces 82
Macroeconomic Conditions 82
Consumer Income 83
Marketing Insights About Me: American FactFinder: Your
Source for Economic Information 83
Technological Forces 84
Technology of Tomorrow 84
Technology's Impact on Customer Value
Technology Enables Data Analytics 86
Competitive Forces 86
Alternative Forms of Competition 87
Components of Competition 87
Small Businesses as Competitors 88
Regulatory Forces 88
Protecting Competition 88
Product-Related Legislation 89
Pricing-Related Legislation 90
Distribution-Related Legislation 91
Advertising- and Promotion-Related
Legislation 91
85
Marketing Matters: Online Tracking: Is Big Brother
Watching? 92
Control through Self-Regulation
92
Learning Objectives Review 93
Learning Review Answers 93
Focusing on Key Terms 94
Applying Marketing Knowledge 94
Building Your Marketing Plan 94
Video Case 3: Geek Squad: A New Business for a New
Environment 95
Chapter Notes 97
ETHICAL AND SOCIAL RESPONSIB1LITY FOR
SUSTAINABLE MARKETING 100
Anheuser-Busch: Becoming the Best Beer Company in a
Better World 100
Alcohol Responsibility 100
Environmental Preservation 101
Nature and Significance of Marketing Ethics 102
An Ethical/Legal Framework for Marketing 102
Critical Perceptions of Ethical Behavior 103
Four Factors Affect Ethical Marketing Behavior 103
Societal Culture and Norms 103
Business Culture and Industry Practices 104
Making Responsable Decisions: Corporate Conscience in the
Cola War 106
Corporate Culture and Expectations
106
Marketing Insights About Me: Is Commercial Bribery More
or Less Common in My Country? 107
Your Personal Moral Philosophy and Ethical Behavior 107
Understanding Social Responsibility for Sustainable Marketing 110
Three Concepts of Social Responsibility 110
Marketing Matters: Will Consumers Switch Brands
for a Cause? Yes, If... 112
The Social Audit and Sustainable Development:
Döing Well by Döing Good 113
Turning the Table: Consumer Ethics and Social
Responsibility 114
Learning Objeetives Review 115
Learning Review Answers 116
Focusing on Key Terms 116
Applying Marketing Knowledge 116
Building Your Marketing Plan 117
Video Case 4: Toyota. Building Cleaner, Greener Cars 117
Chapter Notes 120
5
UMXRSTAMXNG CONSUMER BEHAVIOR 122
Enlightened Carmakers Know What Custom(h)ers and
Influenc(h)ers Value 122
Consumer Purchase Decision Process and Experience 124
Problem Recognition: Perceiving a Need 124
Information Search: Seeking Value 124
Alternative Evaluation: Assessing Value 124
Purchase Decision: Buying Value 125
Postpurchase Behavior: Realizing Value 126
Marketing Matters: How Much Is a Satisfied Customer
Worth? 127
Consumer Involvement Affects Problem Solving 129
Situational Influences That Affect Purchase
Decisions 129
Psychological Influences on Consumer Behavior 130
Consumer Motivation and Personality 130
Consumer Perception 131
Making Responsable Decisions: The Ethics of Subliminal
Messages 132
Consumer Learning 133
Consumer Values, Beliefs, and Attitudes
Consumer Lifestyle 135
134
Marketikglnsights About Me: What Motivates You?
Identifying Your VALS Profile 136
Sociocultural Influences on Consumer Behavior
Personal Influenae 137
Reference Group Influenae 138
137
Marketing Matters: BzzAgent—The Buzz Experience 139
Family Influenae 140
Social Class Influenae 142
Culture and Subculture Influences
142
Learning Objectives Review 144
Learning Review Answers 145
Focusing on Key Terms 146
Applying Marketing Knowledge 146
Building Your Marketing Plan 146
Video Case 5: Groupon: Helping Consumers with Purchase
Decisions 146
Chapter Notes 149
6
UNDERSTANDING ORGANIZATIONS AS CUSTOMERS 152
Buying Is Marketing Tool Purchasing Publication Paper for
JCPenney 152
Business-to-Business Marketing and Organizational Buyers
Organizational Buyers 154
Organizational Markets 154
Measuring Organizational Markets 155
Characteristics of Organizational Buying 156
Demand Characteristics 156
Size of the Order or Purchase 157
Number of Potential Buyers 157
Organizational Buying Objectives 157
Organizational Buying Criteria 158
154
Marketing Insights About Me: Do I Buy frorn Organizations
That Promote Diversity among Their Suppliers and in Their
Workplaces? 158
Buyer-Seller Relationships and Supply Partnerships
,
159
Marketing Matters: At Milsco Manufacturing, "Our Marketing
Philosophy Is Designed to Develop Partnerships" and Deliver
a Great Ride for Customers' Seats 160
Making Responsible Decisions: Sustainable Procurement for
Sustainable Growth at Starbucks 161
The Organizational Buying Function and Process and the
Buying Center 161
The Buying Function in Organization« 161
Stages in the Organizational Buying Process 161
The Buying Center: A Cross-Functional Group 162
Online Buying in Business-to-Business Marketing 164
Prominence of Online Buying in Organizational
Markets 164
E-Marketplaces: Virtual Organizational Markets 165
Marketing Matters: eBay Means Business for
Entrepreneurs 165
Online Auctions in Organizational Markets
166
Learning Objeetives Review 167
Learning Review Answers 168
Focusing on Key Terms 168
Applying Marketing Knowledge 168
Building Your Marketing Plan 169
Video Case 6: Trek: Building Better Bikes through
Organizational Buying 169
Chapter Notes 172
7
UNDERSTANDING AND REACHING GLOBAL CONSUMERS
AND MARKETS 174
Building a Two Billion Dollar Business in India the
Dell Inc. Way 174
Dynamics of World Trade 176
Global Perspective on World Trade 176
U.S. Perspective on World Trade 177
Marketing in a Borderless Economic World 177
Decline of Economic Protectionism 178
Making Responsible Decisions: Global Ethics and Global
Economics—The Case of Protectionism 178
Rise of Economic Integration 179
A New Reality: Global Competition among Global Companies
for Global Consumers 181
Marketing Matters: The Global Teenager—Ä Market öf
2 Billion Voracious Consumers 183
Emergence of a Networked Global Marketspace 184
Growing Prevalence of Economic Espionage 185
A Global Environmental Scan 185
Cultural Diversity 185
Economic Considerations 188
xxix
Marketing Insights About Me: Checking My Country's
Political Risk Rating—Are You Surprised? 191
Political-Regulatory Climate 191
Comparing Global Market-Entry Strategies
Exporting 192
192
Marketing Matters: Creative Cosmetics and Creative Export
Marketing in Japan 193
Licensing 193
Joint Venture 194
Direct Investment 194
Crafting a Worldwide Marketing Program 195
Product and Promotion Strategies 195
Distribution Strategy 196
Pricing Strategy 197
Learning Objeetives Review 198
Learning Review Answers 198
Focusing on Key Terms 199
Applying Marketing Knowledge 199
Building Your Marketing Plan 199
Video Case 7: Mary Kay, Inc.: Building a Brand in India
Chapter Notes 202
Targeting Marketing Opportunities
8
MARKETING RESEARCH: FROM CUSTOMER INSIGHTS
TO ACTIONS 204
Marketing Research Goes to the Movies 204
A Film Industry Secret 204
The Role of Marketing Research 206
What Is Marketing Research? 206
The Challenges in Döing Good Marketing Research 206
Five-Step Marketing Research Approach 207
Step 1: Define the Problem 207
Set the Research Objeetives 207
Identify Possible Marketing Actions 208
Step 2: Develop the Research Plan 208
Specify Constraints 208
Identify Data Needed for Marketing Actions 209
Determine How to Collect Data 209
Step 3: Collect Relevant Information 210
Secondary Data: Internal 210
Secondary Data: Externa! 211
Advantages and Disadvantages of Secondary Data 211
Marketing Matters: Online Databases and Internet Resources
Useful to Marketers 212
xxx
Primary Data: Watching People 212
Primary Data: Asking People 214
Primary Data: Other Sources 218
Applying Marketing Metrics: Are the Carmex Social Media
Programs Working Well? 220
Advantages and Disadvantages of Primary Data 222
Analyzing Primary Data Using Gross Tabulations 222
Making Responsible Decisions: No More Personal Secrets:
The Downside of Data Mining 223
Step 4: Develop Findings 224
Analyze the Data 225
Present the Findings 225
Step 5: Take Marketing Actions 226
Make Action Recommendations 226
Implement the Action Recommendations 227
Evaluate the Results 227
Sales Forecasting Techniques 227
Judgments of the Decision Maker 228
Surveys of Knowledgeable Croups 228
Statistical Methods 228
Learning Objectives Review 229
Learning Review Answers 230
Focusing on Key Terms 231
Applying Marketing Knowledge 231
Building Your Marketing Plan 232
Video Case 8: Carmex® (A): Leveraging Facebook for
Marketing Research 232
Chapter Notes 235
9
MARKET SEGMENTATION, TARGETING, AND
POSITIONING 236
Zappos.com Is Powered by Service—and Segmentation! 236
Segmentation Is a Key to Success 236
Delivering WOW Customer Service 236
Why Segment Markets? 238
What Market Segmentation Means 238
When and How to Segment Markets 239
Steps in Segmenting and Targeting Markets 242
Step 1: Group Potential Buyers into Segments 242
Marketing Insights About Me: To Which "Flock" Do You
Belong? 245
Step 2: Group Products to Be Sold into Categories 248
Step 3: Develop a Market-Product Grid and Estimate
the Size of Markets 250
xxxi
Step 4: Select Target Markets 251
Step 5: Take Marketing Actions to Reach Target Markets
Market-Product Synergies: A Balancing Act 254
252
Marketing Matters: Apple's Segmentation Strategy—Camp
Runamok No Longer 255
Positioning the Product 256
Two Approaches to Product Positioning 256
Writing a Positioning Statement 256
Product Positioning Using Perceptual Maps 256
A Perceptual Map to Reposition Chocolate Milk
for Adults 257
Learning Objeetives Review 258
Learning Review Answers 258
Focusing on Key Terms 259
Applying Marketing Knowledge 259
Building Your Marketing Plan 259
Video Case 9: Prince Sports, Inc.: Tennis Racquets
for Every Segment 260
Chapter Notes 262
Satisfying Marketing Opportunities
10 DEVELOPING NEW PRODUCTS AND SERVICES 264
Apple: The World-Class New-Product Machine 264
Apple's New-Product Development Successes... 264
... And New-Product Development Stumbles 264
The Next Chapter in Apple's Story: Apple Watch 265
What Are Products and Services? 266
A Look at Goods, Services, and Ideas 266
Classifying Products 266
Classifying Services 267
Product Classes, Forms, Items, Lines, and Mixes 268
New Products and Why They Succeed or Fail 268
What Is a New Product? 268
Marketing Matters: Feature Bloat: Geek Squad to the
Rescue! 269
Why Products and Services Succeed or Fail 271
How Applying Marketing Metrics Can Improve
New-Product Performance 273
Applying Marketing Metrics: Whieh States Are
Underperforming? 273
The New-Product Development Process 274
Stage 1: New-Product Strategy Development
Stage 2: Idea Generation 275
xxxii
274
Stage 3: Screening and Evaluation 277
Marketing Matters: Was the Google Glass Half Füll or Half
Empty? 278
Stage 4: Business Analysis 279
Stage 5: Development 279
Stage 6: Market Testing 280
Stage 7: Commercialization 281
Learning Objectives Review 282
Learning Review Answers 283
Focusing on Key Terms 284
Applying Marketing Knowledge 284
Building Your Marketing Plan 285
Video Case 10: X-1: Breaking the Barriers of Sound with
New-Product Development 285
Chapter Notes 288
11 MANAGING SUCCESSFUL PRODUCTS, SERVICES,
AND BRANDS 290
&
4'
f'
*
Gatorade: Bringing Science to Sweat for 50 Years 290
Creating the Gatorade Brand 290
Building the Gatorade Brand 290
Charting the Product Life Cycle 292
Introduction Stage 292
Growth Stage 294
Maturity Stage 295
Decline Stage 295
Three Aspects of the Product Life Cycle 296
Managing the Product Life Cycle 300
Role of a Product Manager 300
Modifying the Product 300
Modifying the Market 300
Applying Marketing Metries: Knowing Your CDI and BDI 301
Repositioning the Product
303
Making Responsible Decisions: Consumer Economic« of
Downsizing—Get Less, Pay More 303
Branding and Brand Management
303
Marketing Insights About Me: Do You Want to Start a
Business Using Your Own Name-? Better Check First! 304
Brand Personality and Brand Equity 305
Picking a Good Brand Name 306
Branding Strategies 307
xxxiii
Packaging and Labeling Products 310
Creating Customer Value and Competitive Advantage through
Packaging and Labeling 311
Marketing Matters: Creating Customer Value through
Packaging—Pez Heads Dispense More Than Candy 311
Packaging and Labeling Challenges and Responses
Product Warranty 312
Learning Objeetives Review 313
Learning Review Answers 314
Focusing on Key Terms 314
Applying Marketing Knowledge 314
Building Your Marketing Plan 315
Video Case 11: P&G's Secret Deodorant: Finding
Inspiration in Perspiration 315
Chapter Notes 318
12 SERVICES MARKETING 320
Airbnb Redefines Services—and the Economy! 320
The Uniqueness of Services 322
The Four I's of Services 323
The Service Continuum 325
Classifying Services 326
Marketing Matters: Social Mariceting Is a Must for
Nönprofits 328
How Consumers Purchase Services 329
The Purchase Process 329
Assessing Service Quality 329
Customer Contact and Relationship Marketing
330
Marketing Matters: Managing Service Failures: The
Importance of Monitoring and Guarantees 331
Managing the Marketing of Services 333
Product (Service) 333
Price 333
Place (Distribution) 334
Promotion 335
People 335
Physical Environment 336
Process 336
Applying Marketing Metrics: Are JetBlue's Flights
Profitably Loaded? 337
Services in the Future
338
Learning Objeetives Review 339
Learning Review Answers 339
312
Focusing on Key Terms 340
Applying Marketing Knowledge 340
Building Your Marketing Plan 340
Video Case 12: LA Galaxy: Where Sports Marketing
Is a Kick! 341
Chapter Notes 344
13 BUILDING THE PRICE FOUNDATION 348
VIZIO, Inc.—Delivering Beautifully Simple Products at
a Great Value 348
Nature and Importance of Price 350
What Is a Price? 350
Price as an Indicator of Value 351
Marketing Matters: Does Spirit Airlines Engage in Value
Pricing? For Some Yes, for Others No 352
Price in the Marketing Mix 352
Step 1: Identify Pricing Objectives and Constraints 353
Identifying Pricing Objectives 353
Identifying Pricing Constraints 355
Step 2: Estimate Demand and Revenue 358
Estimating Demand 358
Price Elasticity of Demand 360
Marketing Matters: Using Big Data to Curb Smoking
Uncovering the Price Elasticity of Demand foi Cigarettes 361
Fundamentals of Estimating Revenue 361
Step 3: Determine Cost, Volume, and Profit Relationships
The Importance of Controlling Costs 362
Break-Even Analyst s 362
362
Learning Objectives Review 364
Learning Review Answers 365
Focusing on Key Terms 365
Applying Marketing Knowledge 366
Building Your Marketing Plan 366
Video Case 13: Washburn Guitars: Using Break-Even
Points to Make Pricing Decisions 367
Chapter Notes 368
14 ARRIVING AT THE FINAL PRICE 370
E-books and E-conomics: A Twisted Tale of Pricing for
Profit 370
Setting the Stage with E-readers: Amazon's Kindle
Printed Book Pricing Practices 370
Enter E-books 370
Pricing E-books . .. Profitably 371
370
XXXV
Step 4: Select an Approximate Price Level 372
Demand-Oriented Pricing Approaches 372
Marketing Matters: Energizer's Lesson in Price Perception—
Value Lies in the Eye of the Beholder 374
Cost-Oriented Pricing Approaches 375
Profit-Oriented Pricing Approaches 377
Competition-Oriented Pricing Approaches
379
Applying Marketing Metrics: Are Red Bull Prices Above,
At, or Below the Market? 380
Step 5: Set the List or Quoted Price 381
Choose a Price Policy 381
Consider Company, Customer, and Competitive Effects on
Pricing 382
Making Responsible Decisions: The Ethics and Economics
of Surge Pricing 383
Balance Incremental Costs and Revenues 384
Step 6: Make Special Adjustments to the List or Quoted Price 385
Discounts 385
Allowances 387
Geographica! Adjustments 388
Marketing Matters: Everyday Low Prices at the
Supermarket = Everyday Low Profits—Creating
Customer Value at a Cost 388
Legal and Regulatory Aspects of Pricing
389
Learning Objeetives Review 391
Learning Review Answers 392
Focusing on Key Terms 393
Applying Marketing Knowledge 393
Building Your Marketing Plan 393
Video Case 14: Carmex (B): Setting the Price of the Number
One Lip Balm 394
Chapter Notes 396
Appendix B Financial Aspects of Marketing
397
15 MANAGING MARKETING CHANNELS AND SUPPLY
CHAINS 406
Callaway Golf: Designing and Delivering the Goods for Great Golf 406
Nature and Importance of Marketing Channels 408
What Is a Marketing Channel of Distribution? 408
How Customer Value Is Created by Intermediaries 408
Marketing Channel Structure and Organization 410
Marketing Channels for Consumer Products and
Services 410
xxxvi
Marketing Channels for Business Products and Services 411
Internet Marketing Channels 412
Direct and Multichannel Marketing 413
Dual Distribution and Strategie Channel Alliances 413
Marketing Matters: Nestle and General Mills—Cereal Partners
Worldwide 414
Vertical Marketing Systems 414
Marketing Channel Choice and Management 416
Factors Affecting Channel Choice and Management 416
Applying Marketing Metrics: Channel Sales and Profit at
Charlesburg Furniture 418
Managing Channel Relationships: Conflict and
Cooperation 418
Logistics and Supply Chain Management 421
Supply Chains versus Marketing Channels 421
Sourcing, Assembling, and Delivering a New Car: The
Automotive Supply Chain 422
Supply Chain Management and Marketing Strategy 423
Marketing Mätters: IBM s Integrated Supply Chain—
Delivering a Total Solution for Its Customers 424
Two Concepts of Logistics Management in a Supply
Chain 425
Total Logistics Cost Concept 425
Customer Service Concept 425
Closing the Loop: Reverse Logistics 426
Making Responsible Decisions: Reverse Logistics and
Green Marketing Go Together at Hewlett-Packard:
Recycling e-Waste 427
Learning Objectives Review 428
Learning Review Answers 428
Focusing on Key Terms 429
Applying Marketing Knowledge 429
Building Your Marketing Plan 430
Video Case 15: Amazon: Delivering the Earth's Biggest
Selection! 430
Chapter Notes 432
16 RETAILING AND WHOLESALING 434
Shoppers Are Wearing the Future of Retailing! 434
The Value of Retailing 436
Consumer Utilities Offered by Retailing 436
The Global Economic Impact of Retailing 437
Classifying Retail Outlets 438
Form of Ownership 438
xxxvii
Making Responsible Decisions: How Green Is Your Retailer?
The Rankings Are Out! 439
Level of Service 440
Type of Merchandise Line 441
Nonstore Retailing 443
Automatic Vending 443
Direct Mail and Catalogs 444
Television Home Shopping 445
Online Retailing 445
Telemarketing 446
Direct Selüng 447
Retailing Strategy 447
Positioning a Retail Store 447
Retailing Mix 449
Applying Marketing Metrics: Why Apple Stores May Be the
Best in the United States! 452
The Changing Nature of Retailing 453
The Wheel of Retailing 453
The Retail Life Cycle 454
Future Changes in Retailing 455
Multichannel Retailing 455
Marketing Matters: The Multichannel Marketing
Multiplier 456
Data Analytics 456
Wholesaling 457
Merchant Wholesalers 457
Agents and Brokers 458
Manufacturer's Branches and Offices
458
Learning Objeetives Review 459
Learning Review Answers 459
Focusing on Key Terms 460
Applying Marketing Knowledge 460
Building Your Marketing Plan 461
Video Case 16: Mall of America®: America's Biggest Mall
Knows the Secret to Successful Retailing! 461
Chapter Notes 463
17 INTEGRATED MARKETING COMMUNICATIONS AND
DIRECT MARKETING 468
Taco Bell Loves Twitter! 468
The Communication Process 470
Encoding and Decoding 471
Feedback 471
Noise 472
xxxviii
The Promotional Elements 472
Advertising 472
Personal Selling 473
Public Relations 474
Sales Promotion 475
Direct Marketing 475
Integrated Marketing Communications—Developing the
Promotional Mix 476
The Target Audience 476
Marketing Matters; Tips for Targeting College Students
The Product Life Cycle 477
Product Characteristics 478
Stages of the Buying Deelsion 479
Channel Strategies 480
Developing an Integrated Marketing Communications Program
Identifying the Target Audience 482
Specifying Promotion Objectives 482
Setting the Promotion Budget 483
477
482
Applying Marketing Metrics: How Much Should You
Spend on IMC? 484
Selecting the Right Promotional Tools 485
Designing the Promotion 485
Scheduling the Promotion 485
Executing and Assessing the Promotion Program 486
Direct Marketing 487
The Growth of Direct Marketing 488
The Value of Direct Marketing 488
Technological, Global, and Ethical Issues in Direct Marketing 489
Making Responsable Decisions: What Is the Future of
YourPrivacy? 490
Learning Objectives Review 491
Learning Review Answers 491
Focusing on Key Terms 492
Applying Marketing Knowledge 492
Building Your Marketing Plan 493
Video Case 17: Taco Bell: Using IMC to Help
Customers Live Mäs! 493
Chapter Notes 495
18 ADVERTISING, SALES PROMOTION, AND PUBLIC
RELATIONS 498
Virtual Reality Is the New Reality for Advertising!
Types of Advertisements 500
Product Advertisements 500
Institutional Advertisements 501
498
xxxix
Developing the Advertising Program 502
Identifying the Target Audience 502
Specifying Advertising Objeetives 502
Setting the Advertising Budget 503
Marketing lasights About Me: Are You an Expert at Picking
the Best Super Bowl Ads? 504
Designing the Advertisement 504
Selecting the Right Media 507
Applying Marketing Metrics: What Is the Best Way to Reach
l OOD CnÄkmcm) 5%
Different Media Alternatives
509
Making Responsible Decisions: Who Is Responsible for
Preventing Click Fraud? 514
Scheduling the Advertising 515
Executing the Advertising Program 516
Pretesting the Advertising 516
Carrying Out the Advertising Program 517
Assessing the Advertising Program 518
Posttesting the Advertising 518
Making Needed Changes 518
Sales Promotion 519
Consumer-Oriented Sales Promotions 519
Trade-Oriented Sales Promotions 524
Public Relations 526
Publicity Tools 526
Increasing the Value of Promotion 526
Building Long-Term Relationships 526
Self-Regulation 527
Learning Objeetives Review 528
Learning Review Answers 528
Focusing on Key Terms 529
Applying Marketing Knowledge 529
Building Your Marketing Plan 530
Video Case 18: Google, Inc.: The Right Ads at the Right
Time 530
Chapter Notes 533
19 USING SOCIAL MEDIA AND MOBILE MARKETING TO
CONNECT WITH CONSUMERS 538
The Ultimate Marketing Machine .. . Is in Your
Pocket! 538
Understanding Social Media 540
What Are Social Media? 540
Comparing Social and Traditional Media 542
A Look at Four Important Social Media 543
Comparing Four Social Media 543
Facebook 543
Twitter 546
Linkedln 547
YouTube 548
Marketing Matters: Mobile Marketing Discovers
Video Bloggers! 549
Integrating Social Media into Today's Marketing Strategies 550
Social Media and the Strategie Marketing Process 550
Selecting Social Media 551
How Social Media Produce Sales 551
Measuring the Results of Social Media Programs 552
Carmex Goes Viral with Luck and a LeBron James
Bear Hug 554
The Future: Social Media 4- Smartphones + Exotic Apps 556
The Convergence of Real and Digital Worlds 556
Mobile Marketing: Tightening Links to Marketing
Actions 557
Learning Objectives Review 559
Learning Review Answers 560
Focusing on Key Terms 561
Applying Marketing Knowledge 561
Building Your Marketing Plan 561
Video Case 19: StuffDOT™, Inc.: Rewarding Users for
Actively Shopping and Sharing! 561
Chapter Notes 564
20 PERSONAL SELLING AND SALES MANAGEMENT 566
Meet Today's Sales Professional 566
Scope and Significance of Personal Selling and Sales
Management 568
Nature of Personal Selling and Sales Management 568
Selling Happens Almost Everywhere 568
Personal Selling in Marketing and Entrepreneurship 569
Creating Customer Solutions and Value through Salespeople:
Relationship and Partnership Selling 569
Marketing Matters: Science and Selling: Is Customer Value
Creation in Your Genes? 571
The Many Forms of Personal Selling 571
Order-Taking Salespeople 571
Order-Getting Salespeople 572
Customer Sales Support Personnel 572
v Marketing Matters: Creating and Sustaining Customer Value
through Cross-Functional Team Selling 574
xli
The Personal Selling Process: Building Relationships 574
Prospecting: Identifying and Qualifying Prospective
Customers 575
Preapproach: Preparing for the Sales Call 576
Approach: Making the First Impression 577
Presentation: Tailoring a Solution for a Customer's Needs 577
Marketing Matters: Imagine This ,.. Patting the Customer into
Customer Solutions! 579
Close: Asking for the Customer's Order or Business 580
Follow-up: Solidifying the Relationship 580
The Sales Management Process 580
Making Responsible Decisions: The Ethics of Asking
Customers about Competitors 581
Sales Plan Formulation: Setting Direction 581
Sales Plan Implementation: Putting the Plan into Action
585
Marketing Insights About Me: What Is Your Emotional
Intelligence? You Might Be Surprised 586
Salesforce Evaluation: Measuring Results
587
Applying Marföting Metrics: liacklng Salesperson Performance
at Moore Chemical& Sanitation Supply, Inc. 588
Salesforce Automation and Customer Relationship
Management 589
Learning Objeetives Review 590
Learning Review Answers 591
Focusing on Key Terms 591
Applying Marketing Knowledge 592
Building Your Marketing Plan 592
Video Case 20: Xerox: Building Customer Relationships
through Personal Selling 593
Chapter Notes 594
Managing the Marketing Process
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Seven Cycles Delivers Just One Bike. Yours. 596
Creating Customer Value, Relationships, and Experiences in
Marketspace 598
Marketing in Two Environments 598
Creating Customer Value in Marketspace 598
Interactivity, Individuality, and Customer Relationships in
Marketspace 599
Creating an Online Customer Experience 601
xlii
Applying Marketing Metrics: Sizing Up Site Stickiness at
Sewell Automotive Companies 604
Online Consumer Behavior and Marketing Practice in Marketspace 604
Who Is the Online Consumer? 604
Marketing Insights About Me: Am I Addicted to the Internet?
Answer 20 Questions to Find Out 605
What Online Consumers Buy 605
Why Consumers Shop and Buy Online 605
When and Where Online Consumers Shop and Buy
610
Making Responsible Decisions: Who Is Responsible for
Internet Privacy and Security? 610
Cross-Channel Consumers and Multichannel Marketing
Who Is the Cross-Channel Consumer? 611
Implementing Multichannel Marketing 612
611
Learning Objectives Review 613
Learning Review Answers 614
Focusing on Key Terms 614
Applying Marketing Knowledge 615
Building Your Marketing Plan 615
Video Case 21: Pizza Hut and imc2: Becoming a
Multichannel Marketer 615
Chapter Notes 619
22 PULLING IT ALL TOGLTHFk: THL STRATEGIC MARKETING
PROCESS 6:0
Strategie Marketing Helps General Mills Adapt to New Tastes! 620
Flanning for Even More Change 620
Creative Initiatives at General Mills 621
Marketing Basics: Döing What Works and Allocating
Resources 622
Rinding and Using What Really Works 622
Allocating Marketing Resources Using Sales Response
Functions 623
The Flanning Phase of the Strategie Marketing Process 626
The Use of Marketing Metrics in Marketing Flanning 626
The Variety of Marketing Plans 627
Marketing Flanning Frameworks: The Search for
Growth 627
Marketing Matters: A Test of Your Skills: Where Are the
Synergies? 629
Some Marketing Flanning and Strategy Lessons
639
Marketing Matters: Ask Disruptive Questions to Achieve
Disruptive Innovations 633
xliii
The Implementation Phase of the Strategie Marketing
Process 634
Is Flanning or Implementation the Problem? 634
Increasing Emphasis on Marketing Implementation 634
Improving Implementation of Marketing Programs 634
Marketing Matters: Learning from Mistakes and Avoiding
Traps on the Way to Blue Oceans 636
Organizing for Marketing 638
The Evaluation Phase of the Strategie Marketing Process 640
The Marketing Evaluation Process 640
Marketing ROI, Metrics, and Dashboards 642
Evaluation Using Marketing Metrics and Marketing
Dashboards at General Mills 642
Learning Objectives Review 644
Learning Review Answers 645
Focusing on Key Terms 646
Applying Marketing Knowledge 647
Building Your Marketing Plan 647
Video Case 22. General Mills Warm Delights: Indulgent,
Delicious, and Gooey! 647
Chapter Notes 649
Appendix C
Flanning a Career in Marketing
652
Appendix D
Alternate Cases, available in SmartBook or Connect
Instructor Resources
Part 1
D-l 3M's Post-it Flag Highlighter: Extending the Concept!
D-2 Daktronics, Inc.: Global Displays in 68 Billion Colors
D-3 Jamba Juice: Scanning the Marketing Environment
D-4 BP's Deepwater Horizon: Ethics and Environmental Effects
Part 2
D-5 Decoding a Purchase Decision
D-6 Motetronix Technology: Marketing Smart Dust
D-7 Callaway Golf: The Global Challenge
Part 3
D-8 HOM Furniture: Where Keen Observation Pays
D-9 Lawn Mowers: Segmentation Challenges
Part 4
D-10 Medtronic in China: Where "Simpler" Serves
Patients Better
D-II Pampered Pooches Travel in Style
D-I2 Philadelphia Phillies, Inc.: Sports Marketing 101
D-13 Wellness Getaways, Inc.: The Challenge of Setting
a Price
D-14 Glitzz: Devising a Pricing Strategy
D-15 Shiseido: Channeling Cosmetics in China
D-16 Trader Joe's: Upscale Value
D-17 Banyan Tree Holdings: Creating a Brand
with 1MC
D-18 Target Corporation: Award-Winning Advertising
D I 9 A01 Marketing: Using Facebook to Laurich
Bitter Girls
D-20 Morgantown Furniture: Making Promotion
Trade Offs
Part 5
D-21 Crate and Barrel: Multichannel Marketing
D-22 Nakecf Juice: Strategy for Growth
Glossary 673
Name Index 683
Company/Product Index
Subject Index 698
691
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