Part I UNDERSTANDING MARKETING MANAGEMENT 1
CHAPTER 1 Assessing Marketing's Critical Role in Organizational Performance 1
DOING BUSINESS IN THE GLOBAL ECONOMY 3
The Global Economy 3
The Income Gap 4
The Environmental Imperative and Other Business Trends 4
Technological Advances 5
Focus on the Customer 8
Other Issues 8
WHAT IS MARKETING? THE CORE CONCEPTS 9
Needs, Wants, and Demands 9
Products (Goods, Services,and Ideas) 9
Value, Cost, and Satisfaction 10
Exchange and Transactions 11
Relationships and Networks 12
Markets 13
Marketers and Prospects 14
MARKETING MANAGEMENT 14
COMMNY ORIENTATIONS TOWARD THE MARKETPLCE 17
The Production Concept 17
The Product Concept 17
The Selling Concept/Sales Concept 18
The Marketing Concept 19
The Societal Marketing Concept 27
THE RAPID ADOPTION OF MARKETING MANAGEMENT 29
In the Business Sector 29
In the Nonprofit Sector 29
In the Global Sector 31
SUMMARY 31
CONCEPT APPLICATIONS 32
NOTES 34
CHAPTFR 2 Building Customer Satisfaction Through Quality,Service, and Value 36
DEFINING CUSTOMER VALUE AND SATISFACTlON 38
Customer Value 38
Customer Satisfaction 40
DELIVERING CUSTOMER VALUE AND SATISFACTION 44
Value Chain 44
Value-Delivery Network 45
ATTRACTING AND RETAINING CUSTOMERS 46
Computing the Cost of Lost Customers 46
The Need for customer Retention 47
Relatiorship Marketing The Key 48
CUSTOMER PROFITABILITY: THE ULTIMATE TEST 52
IMPLEMENTING TOTAL QUALITY MARKETING 54
SUMMARY 58
CONCEPT APPLICATIONS 58
NOTES 61
CHAPTER 3 Winning Markets Tbrougb Market -Oriented Strategic Planning 62
THE NATURE OF HIGH-PERFORMANCE BUSINESSES 65
Stakeholders 65
Processes 66
Resources 66
Organization and Organizational Culture 67
CORPORATE AND DIVISION STRATEGIC PLANNING 68
Defining the Corporate Mission 68
Establishing Strategic Business Units 70
Assigning Resources to Each SBU 71
Planning New Businesses 77
Downsizing Older Businesses 80
BUSINESS STRATEGIC PLANNING 80
Business Mission 80
External Environment Analysis (Opportunity and Threat Analysis) 81
Internal Environment Analysis (strengths/Weaknesses Analysis) 82
Goal Formulation 84
Strategy Formulation 84
Program Formulation 87
Implementation 87
Feedback and Control 87
THE MARKETING PROCESS 88
Analyzing Marketing Opportunities 90
Developing Marketing Strategies 91
Planning Marketing Programs 92
Managing the Marketing Effort 94
PRODUCT PLANNING:THE NATURE AND CONTENTS OF A MARKETING PLAN 95
Executive Summary and Table of Contents 95
Current Marketing Situation 96
Opportunity and Issue Analysis 98
Objectives 99
Marketing Strategy 100
Action Programs 100
Projected Profit-and-Loss Statement 101
Controls 101
THE SHAPE OF MARKETING PLANNING IN THE 1900s 101
SUMMARY 102
CONCEPT APPLICATIONS 103
NOTES 106
Part Ⅱ ANALYZING MARKETING OPPORTUNITIES 108
CHAPTER 4 Managing Marketing Information and Measuring Market Demand 108
WHAT IS A MARKETING INFORMATION SYSTEM? 110
INTERNAL RECORDS SYSTEM 110
The Order-to-Payment Cycle 110
Sales Reporting Systems 111
MARKETING INTELLIGENCE SYSTEM 112
MARKETING RESEARCH SYSTEM 113
Suppliers of Marketing Research 114
The Marketing Research Process 115
The Characteristics of Good Marketing Research 124
Overcoming Barriers to the Use of Marketing Research 126
MARKETING DECISION SUPPORT SYSTEM 127
AN OVERVIEW OF FORECASTING AND DEMAND MEASUREMENT 130
Measures of Market Demand 131
Which Market to Measure? 131
A Vocabulary for Demand Measurement 132
Estimating Current Demand 135
Estimating Future Demand 139
SUmmary 141
CONCEPT APPLICATIONS 142
NOTES 144
CHAPTER 5 Scanning the Marketing Enviroment 146
ANALYZING NEEDS AND TRENDS IN THE MACROENVIRONMENT 148
IDENTIFYING AND RESPONDING TO THE MAJOR MACROENVIRONMENT FORCES 150
Demographic Environment 151
Economic Environment 156
Natural Environment 157
Technological Environment 160
Political/Legal Environment 160
Social/Cultural Environment 164
SUMMARY 166
CONCEPT APPLICATIONS 167
NOTES 169
CHAPTER 6 Analyzing Consumer Markets and Buying Behavior 170
A MODEL OF CONSUMER BEHMIOR 171
MAJOR FACTORS INFLUENCING BUYING BEHAVIOR 172
Cultural Factors 172
Social Factors 175
Personal Factors 179
Psychological Factors 181
THE BUYING PROCESS 189
Buying Roles 189
Buying Behavior 190
The Stages of the Buying Decision Process 192
SUMMARY 199
CONCEPT APPLICATIONS 199
NOTES 201
CHAPTER 7 Analyzing Business Markets and Business Buying Bebavior 203
WHAT IS ORGANIZATIONAL BUYING? 204
The Business Market versus the Consumer Market 204
Buying Situations 206
Participants in the Business Buying Process 209
Major Influences on Business Buyers 210
The Purchasing/Procurement Process 214
INSTITUTIONAL AND GOVERNMENT MANKETS 221
SUMMARY 222
CONCEPT APPLICATIONS 223
NOTES 225
CHAPTER 8 Analyzing Industries and Competitors 227
IDENTIFYNG COMPETITORS 229
Industry Concept of Competition 230
Market Concept of Competition 233
IDENTIFYING COMPETITORS' STRATEGIES 233
DETERMINING COMPETITORS' OBJECTIVES 235
ASSESSING COMPETITOR' STRENGTHS AND WEAKNESSES 236
ESTIMATING COMPETITORS' REACTION PATTRNS 238
DESIGNING THE COMPETITIVE INTELLIGENCE SYSTEM 240
SELECTING COMPETITORS TO ATTACK AND AVOID 241
BALANCING CUSTOMER AND COMPETITOR ORENTATIONS 244
SUMMARY 245
CONCEPT APPLICATIONS 245
NOTES 247
CHAPTER 9 Identifying Market Segments and Market Targets 248
MARKET SEGMENTATION 249
Levels of Market Segmentation 250
Patterns of Market Segmentation 254
Market-Segmentation Procedure 255
Bases for Segmenting Consumer Markets 256
Bases for Segmenting Business Markets 266
Requirements for Effective Segmentation 268
MARKET TARGETING 269
Evaluating the Market Segments 269
Selecting the Market Segments 269
Additional Considerations in Evaluating and Selecting Segments 272
SUMMARY 275
CONCEPT APPLICATIONS 276
NOTES 277
CHAPTER 10 279
PART Ⅲ DEVELOPING MARKETING STRATEGIES 279
Differentiating and Positioning the Market offering~ 279
TOOLS FOR COMPETITIVE DIFFERFNMATION 282
Product Differentiation 283
Services Differentiation 289
Personnel Differentiation 291
Channel Differentiation 292
Image Differentiation 292
DEVELOPING A POSITIONING STRATEGY 294
How Many Differences to Promote? 296
Which Differences to Promote? 300
COMMUNICATING THE COMPANY'S POSITIONING 301
SUMMARY 301
CONCEPT APPLICATIONS 302
NOTES 305
CHAPTER 11 Developing New Products 306
CHALLENGES IN NEW-PRODUCT DEVELOPMENT 308
EFFECTIVE ORGANIZATIONAL ARRANGEMENTS 309
MANAGING THE NEW-PRODUCT DEVELOPMENT PROCESS 311
Idea Generation 312
Idea Screening 315
Concept Development and Testing 317
Marketing Strategy Development 322
Business Analysis 323
Product Development 326
Market Testing 328
Commercialization 332
THE CONUMER-ADOPTION PROCESS 335
Stages in the Adoption Process 335
Factors Influencing the Adoption Process 336
SUMMARY 338
CONCEPT APPLICATIONS 338
NOTES 341
CHAPTER 12 Managing Life-Cycle Strategies 343
THE PRODUCT LIFE CYCLE 344
Demand/Technology Life Cycle 344
Stages in the Product Life Cycle 345
Product-Category,Product-Form,Product,and Brand Life Cycles 346
Other Shapes of the Product Life Cycle 347
The International Product Life Cycle 350
MARKETING STRATEGIES THROUGHOUT THE PLC 350
Introduction Stage 350
Growth Stage 354
Maturity Stage 355
Decline Stage 358
Summary and Critique of the Product Life-Cycle Concept 362
MARKET EVOLUTION 362
Stages in Market Evolution 364
Dynamics of Attribute Competition 367
SUMMARY 368
CONCEPT APPLICATIONS 369
NOTES 371
CHAPTER 13 Designing Marketing Strategies for Market Leaders, Challengers, Followers, and Nicbers 372
MARKet-LEADER STRATGIES 373
Expanding the Total 374
Defending Market Share 376
Expanding Market Share 382
Two Case Studies: Procter & Gamble and Caterpillar 384
MARKET-CHALLENGER STRATEGIES 387
Defining the Strategic Objective and Opponent(s) 387
Choosing a General Attack Strategy 388
Choosing a Specific Attack Strategy 391
MARKET-FOLLOWER STRATEGIES 393
MARKET-NICHER STRATEGIES 395
Niche Specialization 396
SUMMARY 397
CONCEPT APPLICATIONS 399
NOTES 400
CHAPTER 14 Designing and Managing Global Marketing Strategies 402
DECIDING WHETHER TO GO ABROAD 404
DECIDING WHICH MARKETS TO ENTER 405
DECIDING HOW TO ENTER THE MARKET 409
Indirect Export 409
Direct Export 410
Licensing 410
Joint Ventures 412
Direct Investment 412
The Internationalization Process 413
DECIDING ON THE MARKETING PROGRAM 413
Product 416
Promotion 417
Price 419
Place (Distribution Channels) 420
DECIDING ON THE MARkETING ORGANIZATION 421
Export Department 421
International Division 421
Global Organization 424
SUMMARY 425
CONCEPT APPLICATIONS 426
NOTES 427
Part Ⅳ PLANNING MARKETING PROGRAMS 429
CHAPTER 15 Managing Product Lines, Brands, and Packaging 429
WHAT IS A PRODUCT? 430
Five Levels of a Product 431
Product Hierarchy 432
Product Classifications 433
PRODUCT-MIX DECISIONS 435
PRODUCT-LINE DEClSIONS 436
Product-Line Analysis 437
Product-Line Length 438
Line Modernization 441
Line Featuring 442
Line Pruning 442
BRAND DECISIONS 442
What Is a Brand? 443
The Concept and Measurement of Brand Equity 444
Challenges in Branding 445
PACKAGING AND LABELING DECISIONS 457
Packaging 458
Labeling 459
SUMMARY 460
CONCEPT APPLICATIONS 461
NOTES 463
CHAPTER 16 Managing Service Businesses and Product Support Services 465
THE NATURE AND CLASSIFICATION OF SERVICES 467
CHARACTERSTICS OF SERVICES AND THEIR MARKETING IMPLICATIONS 468
Intangibility 469
Inseparability 469
Variability 470
Perishability 471
MARKETING STKATEGIES FOR SEBVICE FIRMS 471
Managing Differentiation 474
Managing Service Quality 476
Managing Productivity 482
MANAGING PRODUCT SUPPORT SERVICES 483
Postsale Service Strategy 485
SUMMARY 488
CONCEPT APPLICATIONS 488
NOTES 491
CHAPTER 17 Designing Pricing Strategies and Programs 493
SETTING THE PRICE 495
Selecting the Pricing Objective 496
Determining Demand 497
Estimating Costs 499
Analyzing Competitors' Costs, Prices, and Offers 502
Selecting a Pricing Method 502
Selecting the Final Price 508
ADAPTING THE PRICE 510
Geographical Pricing (Cash, Countertrade, and Barter) 510
Price Discounts and Allowances 511
Promotional Pricing 512
Discriminatory Pricing 513
Product-Mix Pricing 514
INITIATING AND RESPONDING TO PRICE CHANGES 516
Initiating Price Cuts 516
Initiating Price Increases 517
Reactions to Price Changes 520
Responding to Competitors Price Changes 521
SUMMARY 522
CONCEPT APPLICATIONS 523
NOTES 527
CHAPTER 18 Selecting and Marketing Channels 528
WHAT ARE MARKETINManagingG CHANNELS? 530
Why Are Marketing Intermediaries Used? 530
Channel Functions and Flows 531
Channel Levels 533
Channe1s in the Service Sector 534
CHANNEL-DESIGN DECISIONS 535
Analyzing Customers Desired Service Output Levels 537
Establishing the Channel Objectives and Constraints 537
Identifying the Major Channel Alternatives 538
Evaluating the Major Channel Alternatives 541
CHANNEL-MANAGEMENT DECISIONS 542
Selecting Channel Members 543
Motivating Channel Members 544
Evaluating Channel Members 545
Modifying Channel Arrangements 546
CHANNEL DYNAMICS 549
Vertical Marketing Systems 549
Horizontal Marketing Systems 551
Multichannel Marketing Systems 551
Roles of Individual Firms in a Channel 552
CHANNEL COOPERATION, CONFLICT AND COMPETITION 553
TyPes of ConfLict and Competition 553
Causes of Channel Conflict 555
Managing Channel Conflict 556
Legal and Ethical Issues in Channel Relations 557
SUMMARY 558
CONCEPT APPLICATIONS 559
NOTES 560
CHAPTER 19 Managing Retailing,Wholesaling,and Market Logistics 562
RETAILILNG 563
Types of Retailers 563
Retailer Marketing Decisions 567
Trends in Retailing 579
WHOLESALING 583
The Growth and Types of Wholesaling 584
Wholesaler Marketing Decisions 584
Trends in Wholesaling 585
MARKET LOGISTICS 589
Market-Logistics Objectives 593
Market-Logistics Decisions 594
Organizational Lessons About Market Objectives 597
SUMMARY 598
CONCEPT APPLICATIONS 599
NOTES 601
CHAPTER 20 Designing and Managing Integrated Marketing Communications 603
A VIEW OF THE COMMUNICATION PROCESS 605
DEVELOPING EFFECTIVE COMMUNICATONS 607
Identifying the Target Audience 607
Determining the Communication Objectives 610
Designing the Message 611
Selecting the Communication Channels 616
Establishing the Total Promotion Budget 620
Deciding on the Promotion Mix 622
Measuring the Promotion's Results 629
Managing and Coordinating Integrated Markering Communications 629
SUMMARY 632
CONCEPT APPLICATIONS 633
NOTES 634
CHAPTER 21 Managing Advertising,Sales Promotion,and Public Relations 636
DEVELOPING AND MANAGING AN ADVERTISING PROGRAM 637
Setting the Advertising Objectives 638
Deciding on the Advertising Budget 639
Choosing the Advertising Message 640
Deciding on the Media 648
Evaluating Advertising Effectiveness 657
SALES PROMOTION 661
The Rapid Growth of Sales Promotion 662
PurPose of Sales Promotion 662
Major Decisions in Sales Promotion 663
PUBLIC RELATIONS 671
Major Decisions in Marketing PR 673
SUMMARY 678
CONCEPT APPLICATIONS 679
NOTES 681
CHAPTER 22 Managing the Sales Force 684
DESIGNING THE SALES FORCE 686
Sales Force Objectives 686
Sales Force Strategy 688
Sales Force Structure 689
Sales Force Size 692
Sales Force Compensation 692
MANAGING THE SALES FORCE 694
Recruiting and Selecting Sales Representatives 694
Training Sales Representatives 695
Supervising Sales Representatives 696
Motivating Sales Representatives 698
Evaluating Sale Representatives 701
PRINCIPLES OF PERSONAL SELLING 704
Sales Professionalism 704
Negotiation 707
Relationship Marketing 711
SUMMARY 713
CONCEPT APPLICATIONS 713
NOTES 715
CHAPTER 23 Managing Direct and Online Marketing 717
THE GROWTH AND BENEFITS OF DIRECT MARKETING 718
The Growth of Direct Marketing and Electronic Shopping 719
The Benefits of Direct Marketing 720
CUSTOMER DATABASES AND DIRECT MARKETING 721
MAJOK CHANELS FOR DIRECT MARKETING 725
Face-to-Face Selling 725
Direct-Mail Marketing 725
Catalog Marketing 729
Telemarketing 729
Television and Other Major Media Direct-Response Marketing 730
Kiosk Marketing 730
Online Channels 730
MARKETING IN THE TWENTYFIRST CENTURY: ONLINE MARKETING 731
The Benefits of Online Marketing 731
On1ine Marketing Channels 732
THE GROWING USE OF INTEGRATED DIRECT MARKETING 737
PUBUC AND ETHICAL ISSUES IN THE USE OF DIRECT MARKETING 739
SUMMARY 740
CONCEPT APPLICATIONS 740
NOTES 742
Part V MANAGING THE MARKETING EFFORT 744
CHAPTER 24 Organizing,Implementing,Evaluating,and Controlling Marketing Activities 744
COMMANY ORGANIZATION 745
MARKETING ORGANIZATION 746
The Evolution of the Marketing Department 746
Ways of Organizing the Marketing Department 748
Marketing's Relations with Other Departments' 757
Strategies for Building a Companywide Marketing Orientation 761
MARKETING IMPLEMENTATION 763
CONTROLLING MARKETING ACTIVITY 765
Annual-Plan Control 766
Profitability Control 770
Efficiency Control 774
Strategic Control 776
SUMMARY 784
CONCEPT APPLICATIONS 785
NOTES 788