PART Ⅰ UNDERSTANDING MARKETING AND THE MARKETING PROCESS 2
1 Marketing in a Changing World: Creating Customer Value and Satisfaction 2
What Is Marketing? 6
Needs, Wants, and Demands 7
Products 9
Value, Satisfaction, and Quality 10
Exchange, Transactions, and Relationships 11
Markets 12
Marketing 13
Marketing Management 14
Demand Management 14
Building Profitable Customer Relationships 14
Marketing Management Philosophies 15
The Production Concept 15
The Product Concept 17
The Selling Concept 17
The Marketing Concept 19
The Societal Marketing Concept 20
Marketing Challenges into the Next Century 22
Growth of Non-Profit Marketing 22
Rapid Globalization 23
The Changing World Economy 25
The Call for More Ethics and Social Responsibility 26
The New Marketing Landscape 26
Summary 27
Key Terms 28
Discussing the Issues 28
Applying the Concepts 29
References 29
COMPANY CASE 1: DOORGUARD: TRYING TO MAKE A DENT IN THE MARKET 30
VIDEO CASE 1: ZELLERS STRIKES BACK 33
2 Strategic Planning and the Marketing Process 34
Strategic Planning 37
Defining the Company Mission 38
Setting Company Objectives and Goals 40
Designing the Business Portfolio 41
Analysing the Current Business Portfolio 41
Developing Growth Strategies 44
Planning Functional Strategies 45
The Marketing Process 47
Target Consumers 47
Marketing Strategies for Competitive Advantage 50
Developing the Marketing Mix 51
Managing the Marketing Effort 53
Marketing Analysis 54
Marketing Planning 54
Marketing Implementation 57
Marketing Department Organization 60
Marketing Control 62
The Marketing Environment 64
Summary 65
Key Terms 66
Discussing the Issues 66
Applying the Concepts 66
References 67
COMPANY CASE 2: TRAP-EASE: THE BIG CHEESE OF MOUSETRAPS 68
VIDEO CASE 2: TAKING A RISK OR PLAYING IT SAFE 70
3 The Marketing Environment 72
The Company's Microenvironment 76
The Company 76
Suppliers 76
Marketing Intermediaries 76
Customers 77
Competitors 77
Publics 77
The Company's Macroenvironment 78
Demographic Environment 78
Economic Environment 86
Natural Environment 88
Technological Environment 90
Political Environment 92
Cultural Environment 94
Responding to the Marketing Environment 98
Summary 100
Key Terms 100
Discussing the Issues 101
Applying the Concepts 101
References 102
Demographic Study: Fifty something: Don't Call Me Old 103
VIDEO CASE 3: MAIL-ORDER PHARMACY 105
COMPREHENSIVE CASE I: MASTERCARD: CHARGING THE COMPETITION 106
PART Ⅱ ANALYSING MARKET OPPORTUNITIES 110
4 Marketing Research and Information Systems 110
The Marketing Information System 114
Assessing Information Needs 114
Developing Information 115
Distributing Information 120
The Marketing Research Process 121
Defining the Problem and Research Objectives 121
Developing the Research Plan 123
Implementing the Research Plan 134
Interpreting and Reporting the Findings 135
Other Marketing Research Considerations 135
Summary 140
Key Terms 140
Discussing the Issues 140
Applying the Concepts 141
References 141
COMPANY CASE 4: ACT Ⅰ:FEELING OUT THE APPLIANCE CONTROLS MARKET 143
VIDEO CASE 4: TOUGH TO REACH 147
5 Consumer Markets and Consumer Buyer Behaviour 148
Model of Consumer Behaviour 151
Characteristics Affecting Consumer Behaviour 152
Cultural Factors 152
Social Factors 158
Personal Factors 159
Psychological Factors 163
Consumer Buying Roles 169
Types of Buying Decision Behaviour 169
Complex Buying Behaviour 169
Dissonance-Reducing Buying Behaviour 170
Habitual Buying Behaviour 170
Variety-Seeking Buying Behaviour 171
The Buyer Decision Process 171
Need Recognition 172
Information Search 172
Evaluation of Alternatives 173
Purchase Decision 174
Postpurchase Behaviour 174
The Buyer Decision Process for New Products 175
Stages in the Adoption Process 176
Individual Differences in Innovativeness 177
Influence of Product Characteristics on Rate of Adoption 178
Consumer Behaviour Across International Borders 179
Summary 181
Key Terms 182
Discussing the Issues 182
Applying the Concepts 182
References 183
COMPANY CASE 5: SHISEIDO: RETHINKING THE FUTURE 184
VIDEO CASE 5: RETURN OF A STATUS SYMBOL 186
COMPREHENSIVE CASE Ⅱ: PLEDGE: ASSESSING MARKETING STRATEGIES 187
6 Business Markets and Business Buyer Behaviour 198
Business Markets 201
Characteristics of Business Markets 201
A Model of Business Buyer Behaviour 206
Business Buyer Behaviour 206
Major Types of Buying Situations 206
Participants in the Business Buying Process 208
Major Influences on Business Buyers 208
The Business Buying Process 214
Institutional and Government Markets 217
Institutional Markets 217
Government Markets 217
Summary 220
Key Terms 220
Discussing the Issues 220
Applying the Concepts 221
References 221
COMPANY CASE 6: ACT Ⅱ CONTROLLING AN INDUSTRIAL MARKET 222
PART Ⅲ SELECTING TARGET MARKETS 228
7 Measuring and Forecasting Demand 228
Defining the Market 231
Measuring Current Market Demand 231
Estimating Total Market Demand 232
Estimating Area Market Demand 234
Estimating Actual Sales and Market Shares 236
Forecasting Future Demand 236
Survey of Buyers' Intentions 237
Composite of Sales Force Opinions 239
Expert Opinion 240
Test Marketing 241
Time-Series Analysis 241
Leading Indicators 241
Statistical Demand Analysis 242
Summary 242
Key Terms 243
Discussing the Issues 243
Applying the Concepts 244
References 244
COMPANY CASE 7: FORECASTING CHILD'S PLAY 245
VIDEO CASE 7: WHAT'S OUR MARKET SHARE? 247
8 Market Segmentation, Targeting, and Positioning for Competitive Advantage 248
Markets 250
Market Segmentation 252
Bases for Segmenting Consumer Markets 253
Segmenting Business Markets 261
Segmenting International Markets 263
Requirements for Effective Segmentation 264
Market Targeting 265
Evaluating Market Segments 265
Selecting Market Segments 266
Positioning for Competitive Advantage 271
What Is Market Positioning? 271
Positioning Strategies 271
Choosing and Implementing a Positioning Strategy 272
Summary 279
Key Terms 280
Discussing the Issues 280
Applying the Concepts 280
References 281
COMPANY CASE 8A: QUAKER OATS: DOUSING ON THE COMPETITION 281
COMPANY CASE 8B: RYKA: BE STRONG 284
VIDEO CASE 8: PASTA: CONDITIONING FOR THE U.S. MARKET 286
PART Ⅳ DEVELOPING THE MARKETING MIX 288
9 Designing Products: Products, Brands, Packaging, and Services 288
What Is a Product? 290
Product Classifications 292
Consumer Products 292
Industrial Products 293
Individual Product Decisions 294
Product Attributes 294
Branding 298
Marketers Speak Out 305
Packaging 311
Labelling 314
Product-Support Services 315
Product Line Decisions 316
Product Line Length 316
Product Line Modernization 318
Product Line Featuring 318
Product Mix Decisions 319
International Product Decisions 320
Summary 322
Key Terms 323
Discussing the Issues 323
Applying the Concepts 324
References 324
COMPANY CASE 9: COLGATE: SQUEEZING MORE FROM A BRAND NAME 326
VIDEO CASE 9: CREATING BREAD: THE STAPLE OF LIFE 328
10 Designing Products: New-Product Development and Product Life-Cycle Strategies 330
New-Product Development Strategy 333
New-Product Success and Failure 333
The New-Product Dilemma 334
The New-Product Development Process 336
Idea Generation 336
Idea Screening 337
Concept Development and Testing 338
Marketing Strategy Development 340
Business Analysis 341
Product Development 341
Test Marketing 342
Commercialization 344
Marketers Speak Out 345
Speeding Up New-Product Development 346
Product Life-Cycle Strategies 347
Introduction Stage 349
Growth Stage 350
Maturity Stage 350
Decline Stage 353
Summary 354
Key Terms 355
Discussing the Issues 355
Applying the Concepts 356
References 356
COMPANY CASE 10: INTRODUCING SPLENDA BRAND SWEETENER 357
VIDEO CASE 10: THE FRIDGE 359
11 Pricing Products: Pricing Considerations and Approaches 360
Factors to Consider When Setting Prices 363
Internal Factors Affecting Pricing Decisions 364
External Factors Affecting Pricing Decisions 369
General Pricing Approaches 374
Cost-Based Pricing 376
Value-Based Pricing 377
Competition-Based Pricing 379
Summary 380
Key Terms 381
Discussing the Issues 381
Applying the Concepts 381
References 382
COMPANY CASE 11: CANADIAN VS. AIR CANADA: SURVIVING THE FARE WARS 382
VIDEO CASE 11: UNITEL 385
12 Pricing Products: Pricing Strategies 386
New-Product Pricing Strategies 389
Market-Skimming Pricing 389
Market-Penetration Pricing 390
Product-Mix Pricing Strategies 391
Product Line Pricing 391
Optional-Product Pricing 392
Captive-Product Pricing 392
By-Product Pricing 392
Product-Bundle Pricing 393
Price-Adjustment Strategies 393
Discount and Allowance Pricing 393
Segmented Pricing 394
Psychological Pricing 395
Promotional Pricing 396
Value Pricing 397
Geographical Pricing 397
International Pricing 400
Price Changes 401
Initiating Price Changes 401
Responding to Price Changes 403
Summary 406
Key Terms 406
Discussing the Issues 407
Applying the Concepts 407
References 407
COMPANY CASE 12: CIRCUITCITY: SELLING USED CARS LIKE STEREOS 408
VIDEO CASE 12: WEDDING BELLS 410
13 Placing Products: Distribution Channels and Logistics Management 412
The Nature of Distribution Channels 416
Why Are Marketing Intermediaries Used? 416
Distribution Channel Functions 416
Number of Channel Levels 417
Channels in the Service Sector 419
Channel Behaviour and Organization 419
Channel Behaviour 420
Vertical Marketing Systems 422
Horizontal Marketing Systems 425
Hybrid Marketing Systems 426
Channel Design Decisions 427
Analysing Consumer Service Needs 428
Setting the Channel Objectives and Constraints 429
Identifying Major Alternatives 430
Evaluating the Major Alternatives 432
Designing International Distribution Channels 433
Channel Management Decisions 434
Selecting Channel Members 434
Motivating Channel Members 434
Evaluating Channel Members 435
Physical Distribution and Logistics Management 437
Nature and Importance of Physical Distribution and Marketing Logistics 437
Goals of the Logistics System 438
Major Logistics Functions 439
Integrated Logistics Management 443
Summary 445
Key Terms 446
Discussing the Issues 446
Applying the Concepts 447
References 447
COMPANY CASE 13: ICON ACOUSTICS: BYPASSING TRADITION 448
VIDEO CASE 13: THE CHANNEL NOT TAKEN 451
14 Placing Products: Retailing and Wholesaling 452
Retailing 454
Store Retailing 455
Amount of Service 455
Product Line 455
Relative Prices 460
Control of Outlets 462
Type of Store Cluster 463
Non-Store Retailing 464
Direct Marketing 464
Direct Selling 465
Automatic Vending 467
Retailer Marketing Decisions 468
Target Market and Positioning Decision 468
Product Assortment and Services Decision 468
Price Decision 472
Promotion Decision 472
Place Decision 472
The Future of Retailing 472
Wholesaling 473
Types of Wholesalers 474
Merchant Wholesalers 474
Brokers and Agents 476
Manufacturers' Sales Branches and Offices 477
Wholesaler Marketing Decisions 477
Target Market and Positioning Decision 477
Marketing Mix Decisions 477
Trends in Wholesaling 478
Summary 479
Key Terms 480
Discussing the Issues 480
Applying the Concepts 481
References 481
COMPANY CASE 14: CANADIAN RETAILING; AN INDUSTRY IN CHAOS 482
VIDEO CASE 14: BACK TO SQUARE ONE 486
15 Promoting Products: Marketing Communication Strategy 488
Steps in Developing Effective Communication 492
Identifying the Target Audience 493
Determining the Response Sought 493
Marketers Speak Out 494
Choosing a Message 495
Choosing Media 497
Selecting the Message Source 498
Collecting Feedback 499
Setting the Total Promotion Budget and Mix 500
Setting the Total Promotion Budget 500
Setting the Promotion Mix 501
The Changing Face of Marketing Communications 505
The Changing Communication Environment 506
Growth of Direct Marketing 507
Integrated Marketing Communications 511
Socially Responsible Marketing Communication 512
Advertising 512
Personal Selling 514
Direct Marketing 515
Summary 516
Key Terms 517
Discussing the Issues 518
Applying the Concepts 518
References 519
COMPANY CASE 15: AVON: A PROMOTIONAL STRATEGY MAKEOVER 520
VIDEO CASE 15: DIRECT RESPONSE-IMMEDIATE RESULTS 523
Window on the Future: Internet Marketing 524
The Explosive Growth of "The Web" 525
A Brief History of the Internet 525
The World Wide Web: An Evolving Marketing Tool 525
Understanding Empowered Consumers 526
Who Uses the Net 527
Using the Internet for Competitive Advantage 527
Enhancing Strategic Positioning 527
Creation of First-Mover Advantages 529
A New Focus for Marketing Strategy 529
The Need for Careful Segmentation 530
The Internet and Marketing Mix Decisions 531
Improved Product Decisions 531
Revised Channels of Distribution 532
Pricing and Payment 532
Communication Vehicle 533
Promotion Vehicle 533
Monitoring Effectiveness 534
The Future of Internet Marketing 535
Facilitators Who Support Internet Marketing 535
Interesting and Effective Web Sites 536
References 538
CASE STUDY—INTERNET MARKETING AT LABATT 540
16 Promoting Products: Advertising, Sales Promotion, and Public Relations 542
Advertising 545
Major Decisions in Advertising 547
Setting Objectives 547
Setting the Advertising Budget 549
Advertising Strategy 550
Advertising Evaluation 558
International Advertising Decisions 559
Sales Promotion 561
Rapid Growth of Sales Promotion 561
Purpose of Sales Promotion 562
Setting Sales-Promotion Objectives 563
Selecting Sales-Promotion Tools 563
Developing the Sales-Promotion Program 568
Public Relations 569
Major Public Relations Tools 571
Major Public Relations Decisions 572
Summary 574
Key Terms 574
Discussing the Issues 574
Applying the Concepts 575
References 575
COMPANY CASE 16: BURGER KING: SEARCHING FOR THE RIGHT MESSAGE 576
VIDEO CASE 16: EXPOSING ADVERTISING'S DARK SIDE 579
17 Promoting Products: Personal Selling and Sales Management 580
The Role of Personal Selling 582
The Nature of Personal Selling 582
The Role of the Sales Force 584
Managing the Sales Force 585
Designing Sales-Force Strategy and Structure 585
Recruiting and Selecting Salespeople 588
Training Salespeople 591
Compensating Salespeople 592
Supervising Salespeople 593
Evaluating Salespeople 596
Principles of Personal Selling 598
The Personal Selling Process 599
Steps in the Selling Process 599
Relationship Marketing 601
Summary 603
Key Terms 604
Discussing the Issues 604
Applying the Concepts 604
References 605
COMPANY CASE 17: IBM: RESTRUCTURING THE SALES FORCE 606
VIDEO CASE 17: CANADA'S HOTTEST HOME SELLER 608
PART Ⅴ MANAGING THE MARKETING EFFORT 610
18 Building Customer Relationships Through Satisfaction, Value, and Quality 610
Defining Customer Value and Satisfaction 614
Customer Value 615
Customer Satisfaction 617
Delivering Customer Value and Satisfaction 619
Value Chain 619
Value Delivery System 621
Retaining Customers 622
The Cost of Lost Customers 622
The Need for Customer Retention 623
The Key: Customer Relationship Marketing 623
The Marketers Speak Out 627
Ultimate Test: Customer Profitability 628
Implementing Total Quality Marketing 629
Total Quality Management 629
Marketing's Role in Total Quality 630
Summary 632
Key Terms 632
Discussing the Issues 632
Applying the Concepts 633
References 633
COMPANY CASE 18: OUTBACK STEAKHOUSE:BREAKING THE RULES 634
VIDEO CASE 18: BOOTS: COMPETITIVE ADVANTAGE 637
19 Creating Competitive Advantage: Competitor Analysis and Competitive Marketing Strategies 638
Competitor Analysis 641
Identifying the Company's Competitors 642
Determining Competitors' Objectives 643
Identifying Competitors' Strategies 644
Assessing Competitors' Strengths and Weaknesses 644
Estimating Competitors' Reactions 645
Selecting Competitors to Attack and Avoid 647
Designing a Competitive Intelligence System 648
Competitive Strategies 649
Basic Competitive Strategies 650
Competitive Positions 652
Market-Leader Strategies 653
Market-Challenger Strategies 657
Market-Follower Strategies 659
Market-Nicher Strategies 660
Balancing Customer and Competitor Orientations 662
Summary 663
Key Terms 664
Discussing the Issues 664
Applying the Concepts 664
References 664
COMPANY CASE 19: COMPETITION NIPS AT AIR CANADA 665
VIDEO CASE 19: SHREDDING THEIR WAY TO THE TOP 668
PART Ⅵ EXTENDING MARKETING 670
20 The Global Marketplace 670
Global Marketing into the Twenty-First Century 673
Looking at the Global Marketing Environment 675
The International Trade System 675
Marketers Speak Out 680
Economic Environment 681
Political-Legal and Ethical Environment 683
Cultural Environment 684
Deciding Whether To Go International 685
Deciding Which Market to Enter 687
Deciding How to Enter the Market 689
Exporting 689
Joint Venturing 690
Direct Investment 691
Deciding on the Global Marketing Program 693
Product 693
Promotion 694
Price 695
Distribution Channels 697
Deciding on the Global Marketing Organization 697
Summary 698
Key Terms 699
Discussing the Issues 699
Applying the Concepts 700
References 700
COMPANY CASE 20: NORPAK CORPORATION 701
VIDEO CASE 20: MISSION IMPOSSIBLE: VISITING POTENTIAL MARKETS 709
21 Marketing Services, Organizations, Persons, Places, and Ideas 710
Services Marketing 713
Nature and Characteristics of a Service 715
Marketing Strategies for Service Firms 718
International Services Marketing 723
Marketers Speak Out 724
Organization Marketing 726
Image Assessment 726
Image Planning and Control 726
Person Marketing 727
Place Marketing 729
Idea Marketing 730
Summary 732
Key Terms 732
Discussing the Issues 732
Applying the Concepts 733
References 733