CHAPTER 1 MARKETING: CREATING VALUE FOR CUSTOMERS 4
What Is Marketing？ 6
Types of Marketing 7
Levels of Marketing Analysis 8
What Are the Traditional Orientetions to Marketing？ 8
Marketing Movers ( Shakers: Jerry Stakhouse/Philadelphia 76ers) 9
Production Orientation 9
Sales Orientation 10
Put It into Practice: Record How Nonprofit Organizations Try to Create Value 11
Marketing Orientation 11
What Is Value-Driven Marketing? 12
Principles of Value-Driven Marketing 12
Value-Driven Marketing View of Customers 15
You Decide: Marketing Conflicts among Chinese Stakeholders 17
What Is Marketing Management? 21
Developing Marketing Plans and Strategies 21
Understanding Customers and Markets 22
Developing Marketing Mixes 22
Implementing and Controlling Marketing Activities 23
Summary 23
CHAPTER 2 ENVIRONMENTAL ANALYSIS 26
Scanning and Analyzing the Environment 28
Content of Environmental Scanning 29
Scope of Environmental Scanning 29
The Economic Environment 30
Business Cycles and Spending Patterns 30
Consumer Income 31
The Political and Legal Environment 33
Laws Affecting Marketing 33
Regulation of Marketing 35
Marketing Movers ( Shakers: Robert Johnson/Black Entertainment Television) 40
Influences on Laws and Regulations 36
You Decide: The Bootlegging of American Products Overseas 37
Court Actions 37
Political and Legal Factors in the Global Environment 37
The Social Environment 38
Demographic Trends 38
Put It into Practice: Use Your Consumer Rights 36
Social Responsibility and Ethics 40
The Natural Environment 44
Availability of Resources 44
Responsibity to the Natural Environment 44
The Technological Environment 46
Information Technology 46
Technological Factors in the Global Environment 48
Technology and Value 48
The Competitive Environment 48
Types of Competition 48
Competitive Forces 49
Competition in the Global Environment 51
Summary 51
Chapter 3 GLOBAL MARKETING CHALLENGES 54
The Changing Global Environment 56
North America 57
The European Community 59
Japan 60
Other Nations 60
Environmental Scanning and Analysis of Foreign Markets 63
Economic Environment 63
Political and Legal Environment 67
Social Environment 70
You Decide: Whose Chicken Is Better? 74
Natural Environment 74
Technological Environment 74
Put It into Practice: How Mary Foreign Products Do You Own or Use? 77
Competitive Environment 75
Marketing Movers ( Shakers: Thomas Eck/Upton Tea Company) 76
Modes of Entry into Global Market 76
Exporting 76
Licensing 77
Joint Ventures 78
Direct Ownership 78
Summary 79
CHAPTER 4 MARKETING AND ORGANIZATION STRATEGY 82
Strategic Planning in the Organization 84
Organizational Mission 85
Marketing Movers ( Shakers: Guy Kawasaki/Apple Computer) 86
Organizational Objectives 87
Organizational Strategies 87
Organization Portfolio Plan 91
Business Portfolio Analysis 92
Boston Consulting Group's Growth/Share Matrix 92
General Electric’s Industry Attractiveness/Business Stpength Matrix 93
Marketing and Other Functional Areas in the Strategic Panning Process 94
Traditional Role of Marketing in the Planning Process 95
Cross-Functional Teams 96
Managing the Marketing Effort 97
Developing a Marketing Plan 98
Put it into Practice: Create Your Own Marketing Plan 101
Demand Estimation 101
Estimating Demand 101
You Decide: Is Predicting and Fulfilling Demand the Best Value for Customers 102
Forecasting,sales 102
Evalueting the Forecast 104
Summary 105
PART 2 UNDERSTANDING CUSTOMERS AND MARKETS 110
CHAPTER 5 MARKETING RESEARCH:INFORMATION AND TECHNOLOGY 110
Information for Effective Marketing 112
Information versus Data 112
Marketing Information Systems 114
Sources of Information 105
Primary and Secondary Data 117
The Marketing Research Process 120
Formulate the Problem 121
Plan a Research Design 121
Collect Data 124
Marketing Movers ( Shakers: Martin McKendry and Charlie/Bass SoloPrint) 127
Analyze and Interpret Data 127
Prepare the Research Report 129
Applications of New Technology 129
Geographical information Systems 129
Virtual Peality 130
The Internet 131
Ethical Considerations 131
Put It into Practice: Surf the Net 132
You Decide: How Much Information Should Marketers Have Consumers? 133
Deceit and Fraud in Marketing Research 134
Invasion of Privacy 134
Global Marketing Research 135
Summary 136
CHAPTER 6 CONSUMER BEHAVIOR 140
The Consumer Buying Process 142
Need Recognition 142
Information Search 144
Alternative Evaluation 145
Purchase Decision 146
Postpurchase Evaluation 146
Types of Consumer Decision Making 147
Routine Decision Making 148
Limited Decision Making 148
Extensive Decision Making 149
SociaI Influences 149
Culture 150
Subcultures 151
Social Class 154
Reference Groups 155
Family 157
Put It into Practice: Who Makes the Buying Decisions in Your Family? 158
Marketing Influences 159
Product 159
Pricing 160
Placement (Channels of Distribution) 160
You Decide: Should Computels Be Cheaper? 161
Promotion（Marketing Communications) 161
Situational Influences 161
Physical Surrounding 162
Marketing Movers ( Shakers: Mike Bartusick/Park Bench Cafe) 163
Social Surroundings 163
Time 163
Task 164
Momentary Conditions 164
Summary 165
CHAPTER 7 ORGANIZATIONAL BUYING BEHAVIOR 168
Organizational Markets 170
Characteristics of Organizational Markets 170
Categories of Organizational Buyers 171
Business Classifications 175
International Exchanges 176
Major Forces in Organizational Markets 177
Demand 177
Competition 177
Marketing Movers ( Shakers: Al Misale/Office Club) 178
Technology 179
You Decide: Could Russia Become the New Computing Capital of the World? 180
The Organizational Buying Process 182
Types of Purchases 182
Buying Criteria 184
Characteristics of Organizational Buying 187
The Nature of Organizational Exchanges 189
Interactions with Organizational Buyers 189
Buyer-Seller Interactions 190
The Buying Center 192
Put It into Practice: Who Is Involved in the Buying ter in Your Organization? 194
Summary 195
CHAPTER 8 MARKET SEGMENTATION 198
The Need for Market Segmentation 200
What Is Market Segmentation? 201
General Approaches to Serving Markets 201
Put It into Practice: Find Your Own Niche 202
Approaches to Segmenting Consumer Markets 204
Marketing Movers ( Shakers: The Beretta Family/Beretta) 204
Demographic Segmentation 205
You Decide: What's the Market for Used Stuff? 207
Geographic Segmentation 210
Psychographic Segmentation 210
Segmentation Based on Thoughts and Feelings 211
Segmentation Based on Purchase Behavior 213
Multiple Bases for Segmentation 214
Approaches to Segmenting Organizational Markets 215
Geographic Segmentation 215
Segmentation Based on Customer Type 215
Segmentation Based on Organizational Buyer Behavior 217
The Market Segmentation Process 217
Analyze Customer-Product Relationships 218
Investigate Segmentation Bases 218
Develop Product Positioning 219
Select Segmentation Strategy 221
Global Implications 222
Summary 224
PART 3 MANAGING AND DEVELOPING GOODS AND SERVICES 228
CHAPTER 9 MANAGING EXISTING PRODUCTS 228
Product Classifications 230
Consumer and Industrial Products 230
Durables and Nondurables 234
The Product Life Cycle 234
Introduction 235
Growth 236
Maturity 236
Decline 236
Evaluation of the Product Life Cycle 237
Product AdoPtion and Diffusion 239
Branding and Brand Equity 239
Put It into Practice: Do You Know What Kind of Buyers You Know? 241
Benefits of Branding 241
You Decide: Does Sub-Zero Create Superior Value? 242
Types of Brands 242
Selecting a Brand 244
Protecting Trademarks 248
Developing and Managing Brand Equity 246
Product Mixes and Product Lines 248
Managing Product Mixes and Lines 249
Marketing Movers ( Shakers: Harvey McLeod & Chris Freeman/Devil Sticks) 251
Summary 253
CHAPTER 10 DEVELOPING NEW PRODUCTS 256
Types Of New Products 258
The New Product Development Process 260
Idea Generation 260
Put lt into Practice: Generate Your Own Ideas for a New Product 261
Idea Screening 262
Business Analysis 263
Product Development 264
Test Marketing 265
Commercialization 267
Selecting New Product Characteristics 268
Quality Level 268
Product Features 269
Product Design 270
Product safety 271
Packaging and Labeling New Products 272
Packaging 272
Labeling 274
Global Implications 274
You Decide: Do Eco-Labels Really Create Value for Consumers? 275
Reducing New Product Failures 216
Why New Products Fail 276
Organizing for Success 277
Shorting Development Time 278
Marketing Movers ( Shakers: Bill Gates & Doug Rowan/Corbis Corp) 279
Summary 281
CHAPTER 11 MARKETING SERVICES 284
The Service Economy 286
Reasons For Growth 286
The Nature of Services Marketing 288
Characteristics of Services 288
You Decide: Can Amtrak Deliver High-Speed Service? 292
Classification Of Services 293
The Marketing Environment for Services 294
The Marketing Mix for services 295
Developing Services 295
Put it into Practice: Evaluate the Alternatives for a Service 296
Pricing Services 297
Distributing Services 298
Promoting Services 299
Nonbusiness Services Marketing 300
Nonprofit Organization 300
Marketing Movers ( Shakers: Paul Martin Du Bois & Francis Moore Lapp/American News Service) 301
Government Agencies 302
Political Groups 303
Summary 303
PART 4 PRICING PRINCIPLES AND STRATEGIES 308
CHAPTER 12 FUNDAMENTALS OF PRICING 308
Economics of Pricing 310
Demand Curves 310
Put It into Practice: Consider Psychological Factors in Pricing as a Consumer 313
Marginal Analysis 315
Approaches to Pricing 317
Pricing Based on Cost 317
Pricing Based on Competition 320
Pricing Based on Customer Value 322
Marketing Movers ( Shakers: The New Bike Manufacturers) 323
Legal and Ethical Issues in Pricing 325
Government Regulation of Pricing 325
You Decide: Are Women Being Taken to the Cleaners? 327
Ethics of Pricing 327
Summary 328
CHAPTER 13 PRICING GOODS AND SERVICES 332
PricIng Objectives 334
Segmentation and Positioning Objectives 335
Sales and Profit Objectives 335
Competitive Objectives 336
Survival Objectives 336
You Decide: Is Fingerhut's Pricing Strategy Socially Responsible? 337
Social Responsibility Objectives 337
Pricing Strategies 337
The Pricing Process 338
Pricing New ProductS 340
Pricing Existing Products 341
Pricing Product Lines 343
Adjusting Prices 343
Discounting 344
Marketing Movers ( Shakers: Bill Dinardo/Tech-Ceram Corp) 348
Psychological Pricing 350
Geographic pricing 352
Put It into Practice: Evaluate Your Own Response to Psychological Pricing 354
Strategies for Global Marketers 354
Evaluation and Control of Pricing 356
Competitor Responses 356
Customer Responses 357
Controlling the Price Level 358
Summary 359
PART 5 PLACEMENT:DISTRIBUTING GOODS AND SERVICES 364
CHAPTER 14 MANAGING DISTRIBUTION CHANNELS 364
Introduction to Channels 366
Distribution Functions 366
Intermediaries and Costs 368
Channel Options 369
Channels for Consumer Goods 369
Put It into Practice: Find Out How Products Get into a Store's Shelf 370
Channels for Organizational GoodS 370
Channels for Services 372
Multiple Distribution Channels 372
Reverse Channels 373
Vertical Marketing Systems 374
Administered VMS 374
Corporate VMS 374
Contractual VMS 375
Managing Channels of Distribution 376
Selecting Channels 376
Marketing Movers ( Shakers: Michael P. Krasny/CDW Computer Center Inc) 378
Managing Channel Relationships 381
You Decide: When a Change in Channels Creates Conflict 383
Managing Global Channels 384
Regulating Channels 385
Legal Issues 385
Political Issues 386
Ethical Issues 387
Summary 387
Chaper 15 WHOLESALING AND PHYSICAL DISTRIBUTION 390
The Role of Wholesaling in Distribution 392
Major Types Of WholesaIers 393
Merchant Wholesalers 394
Marketing Movers ( Shakers: Nanci Mackenzie/U.S. Gas Transportation) 395
Agents and Brokers 396
Marketing Strategies for Wholesalers 397
Strategies to Attract Producers 397
Strategies to Attract Retallers 398
Trends in Wholesaling 398
Put It into Practice: Help a Wholesaler Survive 399
Physical Distribution 399
The Physical Distribution Process 399
You Decide: Can Truckers and Wholesalers Establish a Better Relationship? 401
Meneging Physical Distribution 406
Trends in Physical Distribution 407
Summary 410
CHAPTER 16 RETAILING 412
The Role of Retailing in Distribution 414
Major Types of Retailers 415
Store Retailing 416
Nonstore Retailing 418
Marketing Strategy Decisions for Retailers 422
Product Retailers 422
Pricing Decisions 424
Placement Decisions 425
Put It into Practice: How Convenient Is Your Local Mail 427
Promotion Decisions 427
Store Image and Atmospherics 428
You Decide: Does Wal-Mart Need a New Face？ 429
Marketing Movers ( Shakers: John L. Morris /Bass Pro Shops) 430
Changing Environment of Retailing 430
Changes in Types of Retailer 431
Technological Changes in Retailing 432
Global Scope of Retailing 435
Legal and Ethical Issues in Retailing 436
Summary 437
PART 6 PROMOTION:INTEGRATED MARKETING COMMUNICATIONS 442
CHAPTER 17 MANAGING MARKETING COMMUNICATIONS 442
Goals of Marketing Communications 444
Create Awareness 445
Build Positive Images 445
Identify Prospects 445
Put It into Practice: Observe How a Product's Image Is Created 446
Build Channel Relationships 447
Retain Customers 447
Understanding Marketing Communications 447
The Communlcation Process 447
The AIDA Model 448
Communication with a Target market 449
Elements Of the Communications Mix 449
Marketing Movers ( Shakers: Jason and Matthew Olim/CDnow) 450
Advertising 450
Personal Selling 451
Sales Promotion 451
Publicity 452
Integrated Marketing Communications 452
Managing Communications Strategy 454
Setting Communications Objectives 454
Selecting the Communications Mix 455
Setting Communications Budgeting 457
Implementing and Controlling the Communications Strategy 459
Implications for Global marketers 461
Legal and Ethical Issues in Marketing Communications 462
You Decide: How Do You Communicate in the New 'Net Cultre? 463
Regulation of Communications 463
Socially Responsible Communications 465
Summary 465
CHAPTER 18 ADVERTISING, SALES PROMOTION,ANDPUBLICITY 468
Advertising 470
Types of Advertising 470
Developing and Managing Advertising Campaigns 472
Marketing Movers ( Shakers: Michael Bronner/Bronner Slosberg Humphrey Inc.) 473
Review Advertising Goals and Budgets 474
Put It into Practice: How Many Slogans Do You Remember? 476
Create Messages 476
Select Media 477
Pretest Ads 482
Evaluate Advertising Effectiveness 483
Adjust Adverting as Needed 485
Legal and Ethical Issues in Advertising 485
Sales Promotion 486
Consumer Promotions 487
Trade Promotions 491
Legal and Ethical Issues in Sales Promotion 492
Publicity 492
Types of Publicity 492
Managing Negative Publicity 494
Ethical Issues in Publicity 494
You Decide: Was the Russian Election as American as Apple Pie? 495
Summary 496
CHAPTER 19 PERSONAL SELLING AND SALES MANAGEMENT 500
The Nature Of Personal Selling 502
The Role Of Personal Selling 503
Activities of Salespeople 503
Relationship Selling 507
Marketing Movers ( Shakers: Stuart Levine/Dale Carnegie & Associates) 508
Steps in the Selling Process 508
Prospect for customers 509
Put It into Practice: Indentify Your Own Personal Selling Experience 510
Prepare for Sales Calls 510
Approach Qualified Prospects 511
Make Sales Presentations 511
Handle Objections 513
Close Sales 514
Build Long-Term Relationships 514
Sales Management 515
Organizing Sales Forces 515
Recruiting Salespeople 516
Training and Supervising Salespeople 518
Motivating and Compensating Salespeople 519
You Decide: What's the Best Way to Motivate Sales Support Staff? 522
Evaluating and Controlling Salespeople 522
Ethical Issues in Personal Selling 524
Manipulation Of Prospects 525
Bribery 525
Accuracy of Reports 526
Summary 526
PART 7 EVALUATING MARKETING EFFECTIVENESS 532
Chapter 20 IMPLEMENTING AND CONTROLLING MARKETING ACTIVITIES 532
Organizing Marketing Activities 534
Organizing Marketing Within a Company 534
Organizing Marketing across Companies 535
Implementing Marketing Plans and Strategies 537
Staffing Marketing Positions 537
Coordinating Marketing Activities 538
Communicating Ideas and Information 540
Marketing Movers ( Shakers: Small Bussiness Counselors) 541
Motivating Employees 542
Controlling Marketing Plans and Strategies 543
You Decide: Can Business Control the Direction of Technology? 544
The Control Process 544
Sales Analysis 546
Profitability Analysis 549
Put It into Practice: Give Feedback as a Customer 550
Customer Satisfaction Analysis 550
The Marketing Analysis 552
Summary 554
Appendix A: Creating a Marketing Plan 558
Appendix B: career Opportunities in Marketing 568
Appendix C: Mathematics Used in Marketing 576
Notes 587
photo Credits 604
Glossary 606
Indexes 615