Part Ⅰ UNDERSTANDING MARKETING AND THE MARKETING PROCESS 2
CHAPTER 1: Marketing: Managing Profitable Customer Relationships 3
What Is Marketing? 5
Marketing Defined 5
Needs, Wants, and Demands 6
Marketing Offers—Products, Services, and Experiences 6
Value and Satisfaction 9
Exchange, Transactions, and Relationships 9
Markets 10
Marketing 10
Marketing Management 11
Customer and Demand Management 11
Marketing Management Orientations 12
Customer Relationship Management 15
Attracting, Retaining, and Growing Customers 17
Building Customer Relationships and Customer Equity 20
Marketing Challenges in the New, "Connected" Millennium 22
Technologies for Connecting 23
Connecting with Customers 25
Connecting with Marketing Partners 27
Connecting with the World Around Us 28
The New, Connected World of Marketing 32
Looking Back: Reviewing the Concepts 33
Reviewing the Key Terms 34
Discussing the Concepts 34
Applying the Concepts 34
Digital Connections 35
VIDEO SHORT: SATMETRIX: HELPING TO BUILD CUSTOMER RELATIONSHIPS 35
COMPANY CASE: BOTOX: ALMOST TROUBLE-FREE NEW FACES 36
CHAPTER 2: Company and Marketing Strategy: Partnering to Build Customer Relationships 39
Strategic Planning 41
Defining a Market-Oriented Mission 41
Setting Company Objectives and Goals 45
Designing the Business Portfolio 45
Strategic Planning and Small Businesses 50
Planning Marketing: Partnering to Build Customer Relationships 51
Partnering with Others in the Company 52
Partnering with Others in the Marketing System 53
The Marketing Process 53
Relationships with Consumers 54
Marketing Strategies for Competitive Advantage 56
Developing the Marketing Mix 56
Managing the Marketing Effort 59
Marketing Analysis 59
Marketing Planning 59
Marketing Implementation 59
Marketing Department Organization 61
Marketing Control 62
The Marketing Environment 62
Looking Back: Reviewing the Concepts 63
Reviewing the Key Terms 64
Discussing the Concepts 65
Applying the Concepts 65
Digital Connections 65
VIDEO SHORT: NERVEWIRE: STRATEGIC PLANNING FOR E-COMMERCE 66
COMPANY CASE: TRAP-EASE AMERICA: THE BIG CHEESE OF MOUSETRAPS 66
CHAPTER 3: Marketing in the Digital Age: Making New Customer Connections 69
Major Forces Shaping the Internet Age 71
Digitalization and Connectivity 71
The Internet Explosion 71
New Types of Intermediaries 72
Customization and Customerization 72
Marketing Strategy in the New Digital Age 73
E-Business, E-Commerce, and E-Marketing in the New Digital Age 74
Benefits to Buyers 74
Benefits to Sellers 75
E-Commerce Domains 76
B2C (Business to Consumer) 76
B2B (Business to Business) 79
C2C (Consumer to Consumer) 81
C2B (Consumer to Business) 82
Conducting E-Commerce 82
Click-Only Versus Click-and-Mortar E-Marketers 82
Setting Up an E-Marketing Presence 86
The Promise and Challenges of E-Commerce 94
The Continuing Promise of E-Commerce 96
The Web's Darker Side 96
Looking Back: Reviewing the Concepts 98
Reviewing the Key Terms 99
Discussing the Concepts 99
Applying the Concepts 100
Digital Connections 100
VIDEO SHORT: FINDWHAT.COM:SEARCHING FOR SUCCESS 101
COMPANY CASE: EBAY: CONNECTING IN CHINA 101
CASE PILOT: UNDERSTANDING MARKETING AND MARKETING PROCESSES 103
Part Ⅱ DEVELOPING MARKETING OPPORTUNITIES AND STRATEGIES 104
CHAPTER 4: The Marketing Environment 105
The Company's Microenvironment 107
The Company 108
Suppliers 108
Marketing Intermediaries 108
Customers 109
Competitors 109
Publics 110
The Company's Macroenvironment 111
Demographic Environment 111
Economic Environment 120
Natural Environment 123
Technological Environment 124
Political Environment 125
Cultural Environment 127
Responding to the Marketing Environment 132
Looking Back: Reviewing the Concepts 134
Reviewing the Key Terms 135
Discussing the Concepts 135
Applying the Concepts 135
Digital Connections 136
VIDEO SHORT: STRIKE HOLDINGS: REDISCOVERING THE PAST 137
COMPANY CASE: THE PRIUS: LEADING A WAVE OF HYBRIDS 137
CHAPTER 5: Managing Marketing information 141
Assessing Marketing Information Needs 143
Developing Marketing Information 144
Internal Data 144
Marketing Intelligence 145
Marketing Research 147
Analyzing Marketing Information 161
Customer Relationship Management (CRM) 161
Distributing and Using Marketing Information 163
Other Marketing Information Considerations 164
Marketing Research in Small Businesses and Not-for-Profit Organizations 164
International Marketing Research 166
Public Policy and Ethics in Marketing Research 167
Looking Back: Reviewing the Concepts 169
Reviewing the Key Terms 170
Discussing the Concepts 171
Applying the Concepts 171
Digital Connections 172
VIDEO SHORT: UNICA: BUILDING BETTER CUSTOMER RELATIONSHIPS 172
COMPANY CASE: ENTERPRISE RENT-A-CAR: MEASURING SERVICE QUALITY 173
CHAPTER 6: Consumer Markets and Consumer Buyer Behavior 177
Model of Consumer Behavior 178
Characteristics Affecting Consumer Behavior 179
Cultural Factors 179
Social Factors 183
Personal Factors 186
Psychological Factors 191
Types of Buying-Decision Behavior 197
Complex Buying Behavior 197
Dissonance-Reducing Buying Behavior 197
Habitual Buying Behavior 198
Variety-Seeking Buying Behavior 198
The Buyer Decision Process 198
Need Recognition 199
Information Search 199
Evaluation of Alternatives 200
Purchase Decision 200
Postpurchase Behavior 201
The Buyer Decision Process for New Products 201
Stages in the Adoption Process 203
Individual Differences in Innovativeness 203
Influence of Product Characteristics on Rate of Adoption 204
Consumer Behavior Across International Borders 205
Looking Back: Reviewing the Concepts 206
Reviewing the Key Terms 207
Discussing the Concepts 207
Applying the Concepts 207
Digital Connections 208
VIDEO SHORT: ZOOTS: DRY CLEANING —YOUR WAY 209
COMPANY CASE: THE WHIRLPOOL DUET: A SOAP OPERA FOR KIDS? 209
CHAPTER 7: Business Markets and Business Buyer Behavior 213
Business Markets 214
Characteristics of Business Markets 214
A Model of Business Buyer Behavior 217
Business Buyer Behavior 217
Major Types of Buying Situations 219
Participants in the Business Buying Process 220
Major Influences on Business Buyers 221
The Business Buying Process 224
Business Buying on the Internet 227
Institutional and Government Markets 228
Institutional Markets 228
Government Markets 229
Looking Back: Reviewing the Concepts 231
Reviewing the Key Terms 232
Discussing the Concepts 232
Applying the Concepts 232
Digital Connections 233
VIDEO SHORT: WHEREOWARE: CONNECTING SELLERS TO BUSINESS BUYERS 233
COMPANY CASE: EMERSON PROCESS MANAGEMENT: ACCELERATING ON THE INTERNET 234
CHAPTER 8: Segmentation, Targeting, and Positioning: Building the Right Relationships with the Right Customers 237
Market Segmentation 239
Segmenting Consumer Markets 239
Segmenting Business Markets 248
Segmenting International Markets 248
Requirements for Effective Segmentation 250
Target Marketing 251
Evaluating Market Segments 251
Selecting Target Market Segments 251
Socially Responsible Target Marketing 257
Positioning for Competitive Advantage 259
Choosing a Positioning Strategy 259
Communicating and Delivering the Chosen Position 267
Looking Back: Reviewing the Concepts 268
Reviewing the Key Terms 269
Discussing the Concepts 269
Applying the Concepts 269
Digital Connections 270
VIDEO SHORT: SMARTERKIDS.COM: SMARTER TARGETING 270
COMPANY CASE: GM: DOWNSIZING THE HUMMER 271
CASE PILOT: DEVELOPING MARKETING OPPORTUNITIES AND STRATEGIES 273
Part Ⅲ DEVELOPING THE MARKETING MIX 274
CHAPTER 9: Product, Services, and Branding Strategies 275
What Is a Product? 276
Products, Services, and Experiences 277
Levels of Product and Services 279
Product and Service Classifications 280
Product and Service Decisions 283
Individual Product and Service Decisions 283
Product Line Decisions 289
Product Mix Decisions 290
Branding Strategy: Building Strong Brands 291
Brand Equity 291
Building Strong Brands 292
Managing Brands 297
Services Marketing 298
The Nature and Characteristics of a Service 299
Marketing Strategies for Service Firms 299
Additional Product Considerations 304
Product Decisions and Social Responsibility 304
International Product and Services Marketing 304
Looking Back: Reviewing the Concepts 306
Reviewing the Key Terms 307
Discussing the Concepts 307
Applying the Concepts 308
Digital Connections 308
VIDEO SHORT: SIEGELGALE: GREAT BRANDS ON A COMPELLING PROMISE 309
COMPANY CASE: STARBUCKS: BREWING A WORLDWIDE EXPERIENCE 310
CHAPTER 10: New-Product Development and Product Life-Cycle Strategies 313
New-Product Development Strategy 315
Idea Generation 315
Idea Screening 320
Concept Development and Testing 320
Marketing Strategy Development 322
Business Analysis 323
Product Development 323
Test Marketing 324
Commercialization 327
Organizing for New-Product Development 327
Product Life-Cycle Strategies 328
Introduction Stage 332
Growth Stage 332
Maturity Stage 333
Decline Stage 335
Looking Back: Reviewing the Concepts 337
Reviewing the Key Terms 338
Discussing the Concepts 338
Applying the Concepts 339
Digital Connections 339
VIDEO SHORT: SENSABLE TECHNOLOGIES: DESIGNING PRODUCTS DIGITALLY 340
COMPANY CASE: RED BULL: WAKING A NEW MARKET 340
CHAPTER 11: Pricing Considerations and Approaches 343
What Is a Price? 345
Factors to Consider When Setting Prices 347
Internal Factors Affecting Pricing Decisions 347
External Factors Affecting Pricing Decisions 352
General Pricing Approaches 357
Cost-Based Pricing 357
Value-Based Pricing 359
Competition-Based Pricing 361
Looking Back: Reviewing the Concepts 363
Reviewing the Key Terms 364
Discussing the Concepts 364
Applying the Concepts 364
Digital Connections 365
VIDEO SHORT: METREO: AUTOMATING PRICING? 365
COMPANY CASE: DVDS: LIEBERFARBIAN ECONOMICS? 366
CHAPTER 12: Pricing Strategies 369
New-Product Pricing Strategies 370
Market-Skimming Pricing 371
Market-Penetration Pricing 371
Product Mix Pricing Strategies 372
Product Line Pricing 372
Optional-Product Pricing 372
Captive-Product Pricing 373
By-Product Pricing 374
Product Bundle Pricing 375
Price Adjustment Strategies 375
Discount and Allowance Pricing 375
Segmented Pricing 376
Psychological Pricing 377
Promotional Pricing 378
Geographical Pricing 379
International Pricing 382
Price Changes 383
Initiating Price Changes 383
Responding to Price Changes 385
Public Policy and Pricing 386
Pricing Within Channel Levels 387
Pricing Across Channel Levels 390
Looking Back: Reviewing the Concepts 391
Reviewing the Key Terms 392
Discussing the Concepts 392
Applying the Concepts 393
Digital Connections 393
VIDEO SHORT: SITE 59: ADDING VALUE FOR CUSTOMERS THROUGH PRICING 394
COMPANY CASE: SOUTHEAST BANK: FREE CHECKING? 394
CHAPTER 13: Marketing Channels and Supply Chain Management 397
Supply Chains and the Value Delivery Network 399
The Nature and Importance of Marketing Channels 400
How Channel Members Add Value 401
Number of Channel Levels 402
Channel Behavior and Organization 403
Channel Behavior 403
Vertical Marketing Systems 405
Horizontal Marketing Systems 407
Multichannel Distribution Systems 408
Changing Channel Organization 408
Channel Design Decisions 409
Analyzing Consumer Needs 409
Setting Channel Objectives 411
Identifying Major Alternatives 412
Evaluating the Major Alternatives 414
Designing International Distribution Channels 414
Channel Management Decisions 415
Selecting Channel Members 415
Managing and Motivating Channel Members 416
Evaluating Channel Members 418
Public Policy and Distribution Decisions 418
Marketing Logistics and Supply Chain Management 419
The Nature and Importance of Marketing Logistics 419
Goals of the Logistics System 420
Major Logistics Functions 420
Integrated Logistics Management 423
Looking Back: Reviewing the Concepts 428
Reviewing the Key Terms 429
Discussing the Concepts 429
Applying the Concepts 429
Digital Connections 430
VIDEO SHORT: CELARIX: WEB-BASED LOGISTICS MANAGEMENT 431
COMPANY CASE: STAPLES, INC.: REVISING THE STRATEGY 431
CHAPTER 14: Retailing and Wholesaling 435
Retailing 436
Types of Retailers 436
Retailer Marketing Decisions 441
The Future of Retailing 447
Wholesaling 453
Types of Wholesalers 455
Wholesaler Marketing Decisions 457
Trends in Wholesaling 458
Looking Back: Reviewing the Concepts 459
Reviewing the Key Terms 460
Discussing the Concepts 460
Applying the Concepts 461
Digital Connections 461
VIDEO SHORT: ACCORDIA: BALANCING TRADITIONAL AND ONLINE RETAILING 462
COMPANY CASE: DELIA'S: SEARCHING FOR THE RIGHT WAY TO CONNECT WITH TEENS 462
CHAPTER 15: Integrated Marketing Communication Strategy 465
The Marketing Communications Mix 467
Integrated Marketing Communications 467
The Changing Communications Environment 467
The Need for Integrated Marketing Communications 468
A View of the Communication Process 471
Steps in Developing Effective Communication 472
Identifying the Target Audience 472
Determining the Communication Objectives 472
Designing a Message 473
Choosing Media 476
Selecting the Message Source 479
Collecting Feedback 479
Setting the Total Promotion Budget and Mix 480
Setting the Total Promotion Budget 480
Setting the Overall Promotion Mix 481
Integrating the Promotion Mix 485
Socially Responsible Marketing Communication 486
Advertising and Sales Promotion 486
Personal Selling 486
Looking Back: Reviewing the Concepts 487
Reviewing the Key Terms 488
Discussing the Concepts 488
Applying the Concepts 489
Digital Connections 489
VIDEO SHORT: SCHWARTZ COMMUNICATIONS: SPREADING THE WORD THROUGH PUBLIC RELATIONS 490
COMPANY CASE: PROCTER ＆ GAMBLE: FEELING THE HEAT 490
CHAPTER 16: Advertising, Sales Promotion, and Public Relations 493
Advertising 494
Setting Advertising Objectives 494
Setting the Advertising Budget 496
Developing Advertising Strategy 497
Evaluating Advertising 506
Other Advertising Considerations 507
Sales Promotion 509
Rapid Growth of Sales Promotion 510
Sales Promotion Objectives 510
Major Sales Promotion Tools 510
Developing the Sales Promotion Program 514
Public Relations 515
The Role and Impact of Public Relations 515
Major Public Relations Tools 517
Looking Back: Reviewing the Concepts 519
Reviewing the Key Terms 519
Discussing the Concepts 519
Applying the Concepts 520
Digital Connections 521
VIDEO SHORT: POTTY PERFECTION: CREATING A CUSTOMER EXPERIENCE 521
COMPANY CASE: PEPSI: PROMOTING NOTHING 522
CHAPTER 17: Personal Selling and Direct Marketing 525
Personal Selling 526
The Nature of Personal Selling 526
The Role of the Sales Force 527
Managing the Sales Force 528
Designing Sales Force Strategy and Structure 528
Recruiting and Selecting Salespeople 533
Training Salespeople 534
Compensating Salespeople 537
Supervising Salespeople 537
Evaluating Salespeople 539
The Personal Selling Process 540
Steps in the Selling Process 540
Personal Selling and Customer Relationship Management 543
Direct Marketing 543
The New Direct-Marketing Model 543
Benefits and Growth of Direct Marketing 544
Customer Databases and Direct Marketing 544
Forms of Direct Marketing 548
Integrated Direct Marketing 554
Public Policy and Ethical Issues in Direct Marketing 555
Looking Back: Reviewing the Concepts 557
Reviewing the Key Terms 558
Discussing the Concepts 559
Applying the Concepts 559
Digital Connections 560
VIDEO SHORT: MARKETSOPT: TURNING PROSPECTS INTO CUSTOMERS 560
COMPANY CASE: JEFFERSON-PILOT FINANCIAL: GROWING THE SALES FORCE 561
CASE PILOT: DEVELOPING THE MARKETING MIX 563