Chapter 1 Get to Know Marketing 1
Chapter Objectives 1
1.1 Defining Marketing 1
1.2 Core Terms 3
1.2.1 Needs,Wants and Demands 3
1.2.2 Products 4
1.2.3 Value,Cost and Satisfaction 4
1.2.4 Exchange,Transactions and Relationships 5
1.2.5 Markets and Marketers 6
1.2.6 Marketing Mix 7
1.3 Marketing Philosophies 11
1.3.1 Production Concept 11
1.3.2 Product Concept 11
1.3.3 Selling Concept 12
1.3.4 Marketing Concept 12
1.3.5 Societal Marketing Concept 14
1.4 Marketing Process 15
1.4.1 Analyzing Marketing Opportunities 15
1.4.2 Selecting the Target Market 16
1.4.3 Developing the Marketing Mix 16
1.4.4 Managing the Marketing Effort 16
1.5 Scope,Functions and Utilities of Marketing 19
1.6 Marketing in Today's Economic Environment 20
1.6.1 Competition 20
1.6.2 Internet/Word of Mouth 21
1.6.3 Consumer Decision Making 21
1.6.4 Niche Markets Rising Up 21
Chapter Questions 22
Multiple Choice Questions 22
Glossary 24
Chapter 2 Buyer and Buyer Behaviour 26
Chapter Objectives 26
2.1 What Is a Buyer? 26
2.2 Customer Satisfaction 27
2.3 Consumer Buying Behaviour 28
Hierarchy of Needs 28
2.4 Factors Influencing Consumer Buying Behavior 30
2.4.1 Cultural Factors 30
2.4.2 Social Factors 32
2.4.3 Personal Factors 33
2.4.4 Psychological Factors 36
2.4.5 Situational Factors 38
2.5 Consumer Buying Decision Process 40
2.5.1 Problem Recognition 40
2.5.2 Information Search 41
2.5.3 Alternative Evaluation 41
2.5.4 Purchase Decision 42
2.5.5 Postpurchase Behavior 42
2.5.6 Buying Process in Reality 43
2.5.7 Consumer Involvement and Types of Buying Decision 43
2.5.8 Family Decision Making 45
2.6 Industrial Buying Behavior 48
2.6.1 Industrial Buying Tasks 48
2.6.2 Industrial Buyer Decision Process 49
2.6.3 Main Influences on Business Buyers 50
2.6.4 Decision-Making Unit 51
2.7 Customer Relationship and CRM 52
Chapter Questions 55
Multiple Choice Questions 55
Glossary 56
Chapter 3 Marketing Environment 59
Chapter Objectives 59
3.1 What Is Marketing Environment? 59
3.2 The Internal Environment 60
3.3 The Micro Environment 61
3.4 The Macro Environment 63
3.4.1 Political Environment 63
3.4.2 Economic Environment 64
3.4.3 Social Environment 65
3.4.4 Technological Environment 65
3.4.5 Other Factors to Include 66
3.5 Situational Analysis 68
3.5.1 Gap Analysis 68
3.5.2 SWOT Analysis 69
3.5.3 Competitive Analysis 71
3.5.4 Responding to External Environment 71
3.6 Environment Scanning ＆ Future Trends 72
3.6.1 Environment Scanning 72
3.6.2 Technological Advancement 74
3.6.3 Anticipated New Trends 74
Chapter Questions 75
Multiple Choice Questions 76
Glossary 77
Chapter 4 Segmentation,Targeting and Positioning 79
Chapter Objectives 79
4.1 What Is a Market? 80
4.1.1 An Expansive Definition 80
4.1.2 Types of Markets 81
4.2 Market Segmentation 82
4.2.1 Why Segmenting? 82
4.2.2 Segmenting Variables 83
4.2.3 Segmentation Requirements 85
4.2.4 Segmenting Industrial Market 86
4.3 Targeting 87
4.3.1 Target Market 88
4.3.2 Evaluating Market Segments 88
4.3.3 The Psychology of Target Marketing 89
4.3.4 Strategies for Reaching Target Markets 90
4.4 Positioning 92
4.4.1 Consumer's Perceptual Map 92
4.4.2 Positioning Strategies 94
4.4.3 Positioning Process 96
4.4.4 Repositioning 97
Chapter Questions 98
Multiple Choice Questions 99
Glossary 101
Chapter 5 Marketing Research 103
Chapter Objectives 103
5.1 Marketing Research Basics 104
5.1.1 What Is Marketing Research? 104
5.1.2 General Procedure of Marketing Research 107
5.1.3 Types of Data 111
5.1.4 Marketing Information Systems 112
5.2 Focusing on Research Design 115
5.2.1 Exploratory Studies 116
5.2.2 Descriptive Studies 117
5.2.3 Casual Studies 118
5.2.4 Choosing a Research Design 118
5.3 Sampling 119
5.3.1 Sample Plan 119
5.3.2 Sampling Frame 120
5.3.3 Sampling Methods 121
5.3.4 Sample Size 122
5.3.5 Sampling and Non-sampling Error 123
5.4 Surveys and Interviews 124
5.4.1 Survey Types 125
5.4.2 Questionnaire Design 128
5.4.3 Interview Technique 129
5.5 Observation and Experiment 130
5.5.1 Observation 130
5.5.2 Experiment 131
5.5.3 Test Marketing 132
5.6 Presenting Findings 134
5.7 International Marketing Research 135
5.7.1 Cultural Differences 136
5.7.2 Language Issues 136
5.7.3 Ways Out 136
5.7.4 More to Confront 137
Chapter Questions 137
Multiple Choice Questions 138
Glossary 139
Chapter 6 Product,Branding and Packaging 142
Chapter Objectives 142
6.1 Product 143
6.1.1 Product or Offering? 143
6.1.2 Levels of Product 144
6.1.3 Classification of Goods 146
6.1.4 Individual Product Decisions 149
6.1.5 Product Line Decisions 150
6.1.6 Product Mix Decisions 152
6.1.7 Adjustments to Products 153
6.1.8 Product Life Cycle 154
6.1.9 New Product Development(NPD) 160
6.2 Branding 169
6.2.1 What Is a Brand? 169
6.2.2 Purpose of Branding 170
6.2.3 Brand Loyalty 171
6.2.4 Brand Equity 172
6.2.5 Brand Positioning 173
6.2.6 Naming a Brand 174
6.2.7 Brand Sponsorship 175
6.2.8 Brand Development 177
6.3 Packaging 178
6.3.1 Defining Packaging 178
6.3.2 Classification of Packaging 180
6.3.3 Packaging Considerations 181
6.3.4 Labeling 181
6.3.5 Problems with Packaging 182
6.4 Global Considerations in Branding and Packaging 183
6.4.1 Language 184
6.4.2 Colors 184
6.4.3 Customs and Taboos 184
6.4.4 Aesthetics 184
6.4.5 Placement 184
Chapter Questions 185
Multiple Choice Questions 185
Glossary 188
Chapter 7 Pricing 192
Chapter Objectives 192
7.1 Price 192
7.1.1 What Is a Price? 192
7.1.2 Value and Relative Value 193
7.1.3 Price as a Variable of Marketing Mix 194
7.1.4 How to Set a Price? 195
7.2 Pricing Objectives 197
7.2.1 Profit-Based Sales Targets 199
7.2.2 Return on Investment 200
7.2.3 Market Share 201
7.2.4 Cash Flow 202
7.2.5 Status Quo 202
7.2.6 Quality Leadership 203
7.3 Demand Analysis 203
7.3.1 Demand and Demand Curve 203
7.3.2 How Do Supply and Demand Influence Price? 205
7.3.3 Elasticity of Demand 205
7.4 Estimating Costs 207
7.5 General Pricing Strategies 208
7.5.1 Cost-Based Pricing 208
7.5.2 Demand-Based Pricing 209
7.5.3 Competitor-Based Pricing 211
7.5.4 Markup Pricing 212
7.6 Specific Pricing Strategies 214
7.6.1 New Product Pricing 214
7.6.2 Psychological Pricing 215
7.6.3 Everyday Low Pricing 216
7.6.4 High/Low Pricing 216
7.6.5 Other Pricing Strategies 217
7.7 Pricing Tactics 218
7.7.1 Discounting 218
7.7.2 Geographic Pricing 219
7.7.3 Promotional Pricing 220
7.7.4 Product-mix Pricing 221
7.7.5 Discriminatory pricing 222
7.8 Legal Concerns of Pricing 223
7.8.1 Unfair Trade Practices 223
7.8.2 Illegal Price Advertising 224
7.8.3 Predatory Pricing 225
7.8.4 Price Discrimination 226
7.8.5 Price Fixing 227
Chapter Questions 228
Multiple Choice Questions 228
Glossary 231
Chapter 8 Distribution Channels 235
Chapter Objectives 235
8.1 Channel and Channel Selecting 235
8.1.1 Channel as a Variable of Marketing Mix 235
8.1.2 Cost of Utilizing Channels 237
8.1.3 Characteristics of a Channel 237
8.1.4 How to Decide on Channels? 238
8.2 Channel Partners 239
8.2.1 Wholesalers 239
8.2.2 Retailers 241
8.2.3 Functions Performed by Channel Partners 242
8.3 Channel Structure 244
8.3.1 Business-to-Consumer Channels 244
8.3.2 Business-to-Business Channels 245
8.3.3 Multiple Channels 246
8.3.4 Alternative Arrangements for Other Markets 248
8.4 Marketing Channel Decisions 249
8.4.1 Channel Objectives 250
8.4.2 Channel Selection Factors 251
8.4.3 Distribution Intensity 252
8.5 Marketing Channel Relationships 254
8.5.1 Competitive Priorities in Marketing Channels 254
8.5.2 Channel Power and Channel Conflict 254
8.5.3 Channel Partnering 256
8.5.4 Channel Integration 257
8.6 Retailing 257
8.6.1 Retailing and Its Importance 257
8.6.2 Retail Marketing Strategy 258
8.6.3 Ongoing Trends in Retailing 259
8.6.4 Future of Retailing 260
8.7 Supply Chains and Logistics 261
8.7.1 Supply Chains 261
8.7.2 Distribution and Logistics 262
8.7.3 Warehousing 263
8.7.4 Transportation 264
Chapter Questions 266
Multiple Choice Questions 266
Glossary 268
Chapter 9 Promotion and IMC 271
Chapter Objectives 271
9.1 Understanding Promotion 272
9.1.1 What Is Promotion? 272
9.1.2 Promotion Objectives 273
9.2 Promotional Mix 274
9.2.1 Advertising 275
9.2.2 Personal Selling 276
9.2.3 Sales Promotion 277
9.2.4 Public Relations 278
9.2.5 Direct Marketing 280
9.3 Consideration of a Promotional Mix 281
9.3.1 Target Market Characteristics 281
9.3.2 Characteristics of the Product 281
9.3.3 Type of Buying Decisions 282
9.3.4 Funds Available Relative to Costs 283
9.3.5 Push and Pull Strategies 283
9.4 Integrated Marketing Communications(IMC) 284
9.4.1 Why IMC? 284
9.4.2 The Communication Process 286
9.4.3 Consumer Perception of Communication 287
9.4.4 AIDA Model 288
9.5 Roadmap of IMC 289
9.5.1 Setting Objectives 290
9.5.2 Determining a Budget 291
9.5.3 Measuring Success 291
9.5.4 Internet and Word of Mouth 292
Chapter Questions 293
Multiple Choice Questions 294
Glossary 297
Chapter 10 Advertising ＆ Public Relations 298
Chapter Objectives 298
10.1 Advertising as a Mass Communication 298
10.1.1 Defining Advertising 298
10.1.2 Corporate Advertising or Product Advertising 299
10.2 Advertising Campaign 301
10.2.1 Define Campaign Objectives 302
10.2.2 Determine a Budget 304
10.2.3 Create a Media Plan 305
10.2.4 Focus of Advertisements 310
10.2.5 Measure Impact with Metrics 313
10.3 Public Relations 315
10.3.1 Public Relation Tools 315
10.3.2 Handling Unfavorable Publicity 317
10.3.3 Measuring Effectiveness of Public Relations Efforts 318
Chapter Questions 319
Multiple Choice Questions 319
Glossary 321
Chapter 11 Personal Selling ＆ Sales Promotion 324
Chapter Objectives 324
11.1 What Is Personal Selling? 324
11.1.1 Personal Selling Objectives 325
11.1.2 Value of Personal Selling 326
11.2 Personal Selling Process 327
11.2.1 Steps in Personal Selling 328
11.2.2 Implementing the Personal Selling Process 330
11.2.3 CRM and Personal Selling 331
11.3 Selling Roles 332
11.3.1 Proactive Representative 332
11.3.2 Passive Representative 333
11.3.3 Consultant 334
11.3.4 Support Personnel 335
11.4 Types of Selling 337
11.4.1 Team Selling 337
11.4.2 Relationship Selling 337
11.5 Managing Sales Force 338
11.5.1 Creating Sales Force Structure,Territories ＆ Goals 338
11.5.2 Recruiting and Selecting Salespeople 340
11.5.3 Sales Training 341
11.5.4 Motivating ＆ Compensating Salespeople 343
11.5.5 Measuring Sales Force Performance 345
11.6 Sales Promotion 346
11.6.1 Objectives of a Sales Promotion 346
11.6.2 Sales Promotions and Customer Needs 346
11.7 Consumer Sales Promotion Methods 347
11.7.1 Coupons 347
11.7.2 Rebates 349
11.7.3 Premiums 350
11.7.4 Loyalty Marketing 351
11.7.5 Contests ＆ Sweepstakes 352
11.7.6 Sampling 354
11.7.7 Point-of-Purchase Promotions 355
11.7.8 Online Sales Promotion 356
11.8 Trade Sales Promotion 357
11.8.1 Trade Allowances 357
11.8.2 Training Programs 358
Chapter Questions 358
Multiple Choice Questions 359
Glossary 362
Chapter 12 Strategic Marketing Planning 364
Chapter Obiectives 364
12.1 Strategic Planning 364
12.1.1 What Is Strategic Planning? 364
12.1.2 Value of Strategic Planning 365
12.1.3 Levels of Strategic Planning 365
12.2 Steps of Planning 368
12.2.1 Setting Corporate Mission and Objectives 368
12.2.2 Arialyzing the Current Situation 370
12.2.3 Creating Marketing Strategy 374
12.2.4 Marketing Plan 380
12.3 Implementation of Marketing Planing 382
12.3.1 Institutionalization of Strategy 383
12.3.2 Setting Proper Organizational Climate 383
12.3.3 Developing Appropriate Organization Structure 383
12.3.4 Periodic Review of Strategy 384
12.4 Marketing Control 384
12.5 Meeting the Competition:Analysis and Strategies 385
12.5.1 Market Structure 385
12.5.2 Primary Competitive Positions 387
12.5.3 Competitor Analysis 387
12.5.4 Competitive Strategies 389
12.5.5 Balancing Customer and Competitor Orientations 391
Chapter Questions 392
Multiple Choice Questions 392
Glossary 394
Chapter 13 Global Marketing 397
Chapter Objectives 397
13.1 Introduction to Global Marketing 397
13.1.1 Trade and Globalization 397
13.1.2 Go Global or Not? 399
13.1.3 Tapping into Global Markets 401
13.1.4 Standardization or Adaptation? 403
13.2 The Global Marketing Environment 404
13.2.1 Social and Cultural Environment 404
13.2.2 Measuring the Economic Environment 406
13.2.3 Political and Regulatory Environment 408
13.2.4 Demographics of New Markets 409
13.2.5 Other Factors 410
13.3 Global Marketing Mix 412
13.3.1 Product in the Light of Promotion 413
13.3.2 Changes in Promotion 414
13.3.3 Changes in Distribution 414
13.3.4 Changes in Pricing 415
13.3.5 Global Marketing in E-era 416
13.4 Organizational Structure of Global Marketing 418
13.4.1 Operational Underpinnings 418
13.4.2 Centralized or Decentralized? 418
13.4.3 Structure Alternatives 419
Chapter Questions 419
Multiple Choice Questions 420
Glossary 422
Chapter 14 Digital Marketing and Social Media 424
Chapter Objectives 424
14.1 Understanding Digital Marketing 424
14.1.1 What Is Digital Marketing? 424
14.1.2 Digital Marketing Methods 425
14.2 The Rise of Social Media 426
14.2.1 What Is Social Media? 426
14.2.2 Types of Social Media 429
14.3 Online Consumer Behavior 430
14.3.1 Consumers with WWW 430
14.3.2 Online Behavioral Trends 432
14.3.3 Behavioral Targeting 433
14.4 Research Using Digital Media 434
14.4.1 Application of Digital Media in Research 434
14.4.2 Collecting and Analyzing Online Consumer Data 435
14.4.3 Consumer Privacy Issues 435
14.5 Adapting to New Media Landscape 437
14.5.1 Internet Advertising 437
14.5.2 Social Media Marketing Communications 439
14.5.3 Marketing Mix in Social Media 441
14.5.4 Mobile Marketing 442
Chapter Questions 444
Multiple Choice Questions 444
References 446
Source of Figures 449
Source of Tables 454