isbn 978-0-13-210292-6

14

MarketingManagement

PHILIP KOTLERNorthwestern University

KEVIN LANE KELLERDartmouth College

Prentice Hall

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Library of Congress Cataloging-in-Publication DataKotler, Philip.

Marketing management/Philip Kotler, Kevin Lane Keller. — 14th ed.p. cm.

Includes bibliographical references and index.ISBN 978-0-13-210292-61. Marketing—Management. I. Keller, Kevin Lane, 1956- II. Title.HF5415.13.K64 2012658.8—dc22 2010046655

10 9 8 7 6 5 4 3 2 1ISBN 13: 978-0-13-210292-6ISBN 10: 0-13-210292-7

www.pearsonhighered.com

This book is dedicated to my wife and best friend, Nancy, with love.

– PK

This book is dedicated to my wife, Punam, and my two daughters,

Carolyn and Allison, with much love and thanks.

– KLK

About the Authors

iv

Authors

Philip Kotler is one of the world’s leading authorities on market-ing. He is the S. C. Johnson & Son Distinguished Professor of InternationalMarketing at the Kellogg School of Management, Northwestern University.He received his master’s degree at the University of Chicago and his Ph.D.at MIT, both in economics. He did postdoctoral work in mathematics atHarvard University and in behavioral science at the University of Chicago.

Dr. Kotler is the coauthor of Principles of Marketing and Marketing:An Introduction. His Strategic Marketing for Nonprofit Organizations,now in its seventh edition, is the best seller in that specialized area.Dr. Kotler’s other books include Marketing Models; The New Competi-

tion; Marketing Professional Services; Strategic Marketing for EducationalInstitutions; Marketing for Health Care Organizations; Marketing Congregations;High Visibility; Social Marketing; Marketing Places; The Marketing of Nations;Marketing for Hospitality and Tourism; Standing Room Only—Strategies forMarketing the Performing Arts; Museum Strategy and Marketing; Marketing Moves;Kotler on Marketing; Lateral Marketing: Ten Deadly Marketing Sins; and CorporateSocial Responsibility.

In addition, he has published more than one hundred articles in leading journals, in-cluding the Harvard Business Review, Sloan Management Review, BusinessHorizons, California Management Review, the Journal of Marketing, the Journal ofMarketing Research, Management Science, the Journal of Business Strategy, andFuturist. He is the only three-time winner of the coveted Alpha Kappa Psi award for thebest annual article published in the Journal of Marketing.

Professor Kotler was the first recipient of the American Marketing Association’s (AMA)Distinguished Marketing Educator Award (1985). The European Association of MarketingConsultants and Sales Trainers awarded him their Prize for Marketing Excellence. He waschosen as the Leader in Marketing Thought by the Academic Members of the AMA ina 1975 survey. He also received the 1978 Paul Converse Award of the AMA, honoring hisoriginal contribution to marketing. In 1995, the Sales and Marketing Executives International(SMEI) named him Marketer of the Year. In 2002, Professor Kotler received the DistinguishedEducator Award from the Academy of Marketing Science. He has received honorarydoctoral degrees from Stockholm University, the University of Zurich, Athens University ofEconomics and Business, DePaul University, the Cracow School of Business andEconomics, Groupe H.E.C. in Paris, the Budapest School of Economic Science and PublicAdministration, and the University of Economics and Business Administration in Vienna.

Professor Kotler has been a consultant to many major U.S. and foreign companies, in-cluding IBM, General Electric, AT&T, Honeywell, Bank of America, Merck, SAS Airlines,Michelin, and others in the areas of marketing strategy and planning, marketing organiza-tion, and international marketing.

He has been Chairman of the College of Marketing of the Institute of ManagementSciences, a Director of the American Marketing Association, a Trustee of the MarketingScience Institute, a Director of the MAC Group, a member of the Yankelovich AdvisoryBoard, and a member of the Copernicus Advisory Board. He was a member of the Boardof Governors of the School of the Art Institute of Chicago and a member of the AdvisoryBoard of the Drucker Foundation. He has traveled extensively throughout Europe, Asia,and South America, advising and lecturing to many companies about global marketingopportunities.

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Kevin Lane Keller is widely recognized as one of the top mar-keting academics of the last 25 years. He is the E. B. Osborn Professor ofMarketing at the Tuck School of Business at Dartmouth College. ProfessorKeller has degrees from Cornell, Carnegie-Mellon, and Duke universities. AtDartmouth, he teaches MBA courses on marketing management and strate-gic brand management and lectures in executive programs on those topics.

Previously, Professor Keller was on the faculty of the Graduate Schoolof Business at Stanford University, where he also served as the head of themarketing group. Additionally, he has been on the marketing faculty at theUniversity of California at Berkeley and the University of North Carolina atChapel Hill, been a visiting professor at Duke University and the Australian Graduate Schoolof Management, and has two years of industry experience as Marketing Consultant forBank of America.

Professor Keller’s general area of expertise lies in marketing strategy and planning,and branding. His specific research interest is in how understanding theories and con-cepts related to consumer behavior can improve marketing strategies. His research hasbeen published in three of the major marketing journals—the Journal of Marketing, theJournal of Marketing Research, and the Journal of Consumer Research. He also hasserved on the Editorial Review Boards of those journals. With over ninety published pa-pers, his research has been extensively cited and has received numerous awards.

Professor Keller is acknowledged as one of the international leaders in the study ofbrands and branding. His textbook on those subjects, Strategic Brand Management,has been adopted at top business schools and leading firms around the world and hasbeen heralded as the “bible of branding.”

Actively involved with industry, he has worked on a host of different types of marketingprojects. He has served as a consultant and advisor to marketers for some of the world’smost successful brands, including Accenture, American Express, Disney, Ford, Intel, LeviStrauss, Procter & Gamble, and Samsung. Additional brand consulting activities have beenwith other top companies such as Allstate, Beiersdorf (Nivea), BlueCross BlueShield,Campbell’s, Colgate, Eli Lilly, ExxonMobil, General Mills, GfK, Goodyear, Intuit, Johnson &Johnson, Kodak, L.L.Bean, Mayo Clinic, Nordstrom, Ocean Spray, Red Hat, SAB Miller,Shell Oil, Starbucks, Unilever, and Young & Rubicam. He has also served as an academictrustee for the Marketing Science Institute.

A popular and highly sought-after speaker, he has made speeches and conductedmarketing seminars to top executives in a variety of forums. Some of his senior manage-ment and marketing training clients have included such diverse business organizations asCisco, Coca-Cola, Deutsche Telekom, GE, Google, IBM, Macy’s, Microsoft, Nestle,Novartis, and Wyeth. He has lectured all over the world, from Seoul to Johannesburg,from Sydney to Stockholm, and from Sao Paulo to Mumbai. He has served as keynotespeaker at conferences with hundreds to thousands of participants.

An avid sports, music, and film enthusiast, in his so-called spare time, he has helped tomanage and market, as well as serve as executive producer for, one of Australia’s great rockand roll treasures, The Church, as well as American power-pop legends Dwight Twilley andTommy Keene. Additionally, he is the Principal Investor and Marketing Advisor for SecondMotion Records. He is also on the Board of Directors for The Doug Flutie, Jr. Foundation forAutism and the Montshire Museum of Science. Professor Keller lives in Etna, NH, with hiswife, Punam (also a Tuck marketing professor), and his two daughters, Carolyn and Allison.

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Brief Contents

vi

Preface xvi

PART 1 Understanding Marketing Management 2Chapter 1 Defining Marketing for the 21st Century 2Chapter 2 Developing Marketing Strategies and Plans 32

PART 2 Capturing Marketing Insights 66Chapter 3 Collecting Information and Forecasting Demand 66Chapter 4 Conducting Marketing Research 96

PART 3 Connecting with Customers 122Chapter 5 Creating Long-term Loyalty Relationships 122Chapter 6 Analyzing Consumer Markets 150Chapter 7 Analyzing Business Markets 182Chapter 8 Identifying Market Segments and Targets 212

PART 4 Building Strong Brands 240Chapter 9 Creating Brand Equity 240Chapter 10 Crafting the Brand Positioning 274Chapter 11 Competitive Dynamics 298

PART 5 Shaping the Market Offerings 324Chapter 12 Setting Product Strategy 324Chapter 13 Designing and Managing Services 354Chapter 14 Developing Pricing Strategies and Programs 382

PART 6 Delivering Value 414Chapter 15 Designing and Managing Integrated Marketing Channels 414Chapter 16 Managing Retailing, Wholesaling, and Logistics 446

PART 7 Communicating Value 474Chapter 17 Designing and Managing Integrated Marketing

Communications 474Chapter 18 Managing Mass Communications: Advertising, Sales Promotions,

Events and Experiences, and Public Relations 502Chapter 19 Managing Personal Communications: Direct and Interactive

Marketing, Word of Mouth, and Personal Selling 534

PART 8 Creating Successful Long-term Growth 566Chapter 20 Introducing New Market Offerings 566Chapter 21 Tapping into Global Markets 594Chapter 22 Managing a Holistic Marketing Organization for the Long Run 620

Appendix: Sonic Marketing Plan A1Endnotes E1Glossary G1Image Credits C1Name Index I1Company, Brand, and Organization Index I4Subject Index I14

Contents

vii

Preface xvi

PART 1 Understanding MarketingManagement 2

CHAPTER 1 Defining Marketing for the 21stCentury 2

The Importance of Marketing 3The Scope of Marketing 5

What Is Marketing? 5What Is Marketed? 5Who Markets? 7

Core Marketing Concepts 9Needs, Wants, and Demands 9Target Markets, Positioning, and

Segmentation 10Offerings and Brands 10Value and Satisfaction 10Marketing Channels 11Supply Chain 11Competition 11Marketing Environment 11

The New Marketing Realities 12Major Societal Forces 12New Company Capabilities 14Marketing in Practice 15

MARKETING INSIGHT Marketing in an Ageof Turbulence 16

Company Orientation toward theMarketplace 17

The Production Concept 18The Product Concept 18The Selling Concept 18The Marketing Concept 18The Holistic Marketing Concept 18

MARKETING MEMO Marketing Rightand Wrong 19

Relationship Marketing 20Integrated Marketing 20Internal Marketing 21Performance Marketing 22

The New Four Ps 25Marketing Management Tasks 26

Developing Marketing Strategies andPlans 26

Capturing Marketing Insights 26

MARKETING MEMO Marketers’ FrequentlyAsked Questions 26

Connecting with Customers 27

Building Strong Brands 27Shaping the Market Offerings 27Delivering Value 27Communicating Value 27Creating Successful Long-Term Growth 27

Summary 28Applications 28

CHAPTER 2 Developing Marketing Strategiesand Plans 32

Marketing and Customer Value 33The Value Delivery Process 33The Value Chain 34Core Competencies 35A Holistic Marketing Orientation and

Customer Value 36The Central Role of Strategic Planning 36

Corporate and Division Strategic Planning 37

Defining the Corporate Mission 38Establishing Strategic Business Units 39Assigning Resources to Each SBU 42Assessing Growth Opportunities 42Organization and Organizational Culture 45Marketing Innovation 45

MARKETING INSIGHT Creating InnovativeMarketing 46

Business Unit Strategic Planning 47The Business Mission 48SWOT Analysis 48Goal Formulation 50Strategic Formulation 50

MARKETING MEMO Checklist for PerformingStrengths/Weaknesses Analysis 52

Program Formulation andImplementation 53

Feedback and Control 53Product Planning: The Nature and Contents

of a Marketing Plan 54

MARKETING MEMO Marketing PlanCriteria 55

The Role of Research 55The Role of Relationships 55From Marketing Plan to Marketing

Action 55Summary 56Applications 56

Sample Marketing Plan: Pegasus SportsInternational 60

PART 2 Capturing MarketingInsights 66

CHAPTER 3 Collecting Information andForecasting Demand 66

Components of a Modern MarketingInformation System 67

Internal Records 70The Order-to-Payment Cycle 70Sales Information Systems 70Databases, Data Warehousing, and Data

Mining 71Marketing Intelligence 71

The Marketing IntelligenceSystem 71

Collecting Marketing Intelligence on theInternet 72

Communicating and Acting on MarketingIntelligence 73

Analyzing the Macroenvironment 74Needs and Trends 74Identifying the Major Forces 74The Demographic Environment 75

MARKETING INSIGHT Finding Gold at theBottom of the Pyramid 76

The Economic Environment 77The Sociocultural Environment 78The Natural Environment 80The Technological Environment 81

MARKETING INSIGHT The Green MarketingRevolution 82

The Political-Legal Environment 84Forecasting and Demand

Measurement 85The Measures of Market Demand 85A Vocabulary for Demand

Measurement 86Estimating Current Demand 88Estimating Future Demand 90


CHAPTER 4 Conducting MarketingResearch 96

The Marketing Research System 97The Marketing Research Process 99

Step 1: Define the Problem, the DecisionAlternatives, and the ResearchObjectives 99

Step 2: Develop the Research Plan 100

MARKETING MEMO Conducting InformativeFocus Groups 102

MARKETING MEMO Questionnaire Dos andDon’ts 104

MARKETING INSIGHT Getting into theHeads of Consumers 106

MARKETING INSIGHT Understanding BrainScience 108

Step 3: Collect the Information 110Step 4: Analyze the Information 111Step 5: Present the Findings 111Step 6: Make the Decision 111

MARKETING INSIGHT Bringing MarketingResearch to Life with Personas 112

Overcoming Barriers to the Use of MarketingResearch 112

Measuring Marketing Productivity 114Marketing Metrics 114Marketing-Mix Modeling 116Marketing Dashboards 116

MARKETING INSIGHT MarketingDashboards to Improve Effectiveness andEfficiency 117


PART 3 Connecting withCustomers 122

CHAPTER 5 Creating Long-term LoyaltyRelationships 122

Building Customer Value, Satisfaction, andLoyalty 123

Customer Perceived Value 124Total Customer Satisfaction 128Monitoring Satisfaction 128

MARKETING INSIGHT Net Promoter andCustomer Satisfaction 129

Product and Service Quality 131

viii

Maximizing Customer Lifetime Value 132

MARKETING MEMO Marketing and TotalQuality 132

Customer Profitability 133Measuring Customer Lifetime Value 134

Cultivating Customer Relationships 134

MARKETING MEMO Calculating CustomerLifetime Value 134

Customer Relationship Management 135

Attracting and Retaining Customers 139

Building Loyalty 141Win-Backs 143

Customer Databases and DatabaseMarketing 143

Customer Databases 143Data Warehouses and Data Mining 143The Downside of Database Marketing and

CRM 145

MARKETING INSIGHT The BehavioralTargeting Controversy 146


CHAPTER 6 Analyzing ConsumerMarkets 150

What Influences Consumer Behavior? 151Cultural Factors 151Social Factors 153

MARKETING MEMO The Average U.S.Consumer Quiz 155

Personal Factors 155Key Psychological Processes 160

Motivation: Freud, Maslow, Herzberg 160Perception 161Learning 163Emotions 163Memory 163

MARKETING INSIGHT Madeto Stick 165

The Buying Decision Process:The Five-Stage Model 166

Problem Recognition 167Evaluation of Alternatives 168

ix

Purchase Decision 170Postpurchase Behavior 172Moderating Effects on Consumer Decision

Making 173Behavioral Decision Theory and Behavioral

Economics 174Decision Heuristics 174

MARKETING INSIGHT PredictablyIrrational 176

Framing 177Summary 177Applications 178

CHAPTER 7 Analyzing Business Markets 182

What Is Organizational Buying? 183The Business Market versus the Consumer

Market 183Buying Situations 185Systems Buying and Selling 187

Participants in the Business BuyingProcess 188

The Buying Center 188Buying Center Influences 189Targeting Firms and Buying Centers 190

MARKETING INSIGHT Big Sales to SmallBusinesses 191

The Purchasing/ProcurementProcess 193

Stages in the Buying Process 195Problem Recognition 196General Need Description and Product

Specification 196Supplier Search 196Proposal Solicitation 198Supplier Selection 198

MARKETING MEMO Developing CompellingCustomer Value Propositions 199

Order-Routine Specification 201Performance Review 201

Managing Business-to-Business CustomerRelationships 201

The Benefits of Vertical Coordination 202

MARKETING INSIGHT EstablishingCorporate Trust, Credibility, andReputation 203

Business Relationships: Risks andOpportunism 203

New Technology and BusinessCustomers 204

Institutional and Government Markets 205Summary 207Applications 208

CHAPTER 8 Identifying Market Segments andTargets 212

Bases for Segmenting ConsumerMarkets 214

Geographic Segmentation 214Demographic Segmentation 216

MARKETING INSIGHT Trading Up, Down,and Over 218

Psychographic Segmentation 225Behavioral Segmentation 227

Bases for Segmenting Business Markets 230Market Targeting 231

Effective Segmentation Criteria 231Evaluating and Selecting the Market

Segments 232

MARKETING INSIGHT Chasing the LongTail 235


PART 4 Building StrongBrands 240

CHAPTER 9 Creating Brand Equity 240

What Is Brand Equity? 241The Role of Brands 242The Scope of Branding 243Defining Brand Equity 243Brand Equity Models 245

MARKETING INSIGHT Brand BubbleTrouble 248

Building Brand Equity 249Choosing Brand Elements 250Designing Holistic Marketing Activities 251Leveraging Secondary Associations 252Internal Branding 253Brand Communities 253

Measuring Brand Equity 255

MARKETING INSIGHT The Brand ValueChain 255

MARKETING INSIGHT What Is a BrandWorth? 257

Managing Brand Equity 258Brand Reinforcement 258Brand Revitalization 259

Devising a Branding Strategy 260Branding Decisions 261Brand Portfolios 262Brand Extensions 263

Customer Equity 267

MARKETING MEMO Twenty-First-CenturyBranding 267


CHAPTER 10 Crafting the Brand Positioning 274

Developing and Establishing a BrandPositioning 275

Determining a Competitive Frame ofReference 276

MARKETING INSIGHT High Growth ThroughValue Innovation 278

Identifying Optimal Points-of-Difference andPoints-of-Parity 280

Choosing POPs and PODs 283Brand Mantras 284Establishing Brand Positioning 286

MARKETING MEMO Constructing a BrandPositioning Bull’s-eye 287

Differentiation Strategies 289Alternative Approaches to Positioning 291

Positioning and Branding a SmallBusiness 293


CHAPTER 11 Competitive Dynamics 298

Competitive Strategies for MarketLeaders 299

MARKETING INSIGHT When YourCompetitor Delivers More for Less 300

x

Expanding Total Market Demand 301Protecting Market Share 302Increasing Market Share 304

Other Competitive Strategies 305Market-Challenger Strategies 305Market-Follower Strategies 307Market-Nicher Strategies 308

MARKETING MEMO Niche SpecialistRoles 309

Product Life-Cycle MarketingStrategies 310

Product Life Cycles 310Style, Fashion, and Fad Life Cycles 311Marketing Strategies: Introduction Stage and

the Pioneer Advantage 312Marketing Strategies: Growth Stage 313Marketing Strategies: Maturity Stage 313Marketing Strategies: Decline Stage 315

MARKETING INSIGHT Managing a BrandCrisis 316

Evidence for the Product Life-CycleConcept 316

Critique of the Product Life-CycleConcept 317

Market Evolution 317Marketing in an Economic

Downturn 318Explore the Upside of Increasing

Investment 318Get Closer to Customers 318Review Budget Allocations 319Put Forth the Most Compelling Value

Proposition 319Fine-tune Brand and Product

Offerings 320Summary 320Applications 321

PART 5 Shaping the MarketOfferings 324

CHAPTER 12 Setting Product Strategy 324

Product Characteristics andClassifications 325

Product Levels: The Customer-ValueHierarchy 326

Product Classifications 327

xi

Product and Services Differentiation 328Product Differentiation 329Services Differentiation 330

Design 332Product and Brand Relationships 333

MARKETING INSIGHT Marketing LuxuryBrands 334

The Product Hierarchy 336Product Systems and Mixes 336Product Line Analysis 337Product Line Length 337

MARKETING INSIGHT When Less IsMore 339

Product Mix Pricing 342Co-Branding and Ingredient

Branding 344

MARKETING MEMO Product-Bundle PricingConsiderations 344

Packaging, Labeling, Warranties, andGuarantees 346

Packaging 346Labeling 348Warranties and Guarantees 349


CHAPTER 13 Designing and ManagingServices 354

The Nature of Services 355Service Industries Are Everywhere 356Categories of Service Mix 356Distinctive Characteristics of Services 358

The New Services Realities 361A Shifting Customer Relationship 362

Achieving Excellence in ServicesMarketing 365

Marketing Excellence 365Best Practices of Top Service

Companies 366Differentiating Services 368

MARKETING INSIGHT Improving CompanyCall Centers 369

Managing Service Quality 370

MARKETING MEMO Recommendations forImproving Service Quality 372

Managing Customer Expectations 373Incorporating Self-Service Technologies

(SSTs) 375Managing Product-Support Services 375

Identifying and Satisfying CustomerNeeds 376

MARKETING MEMO Assessing E-ServiceQuality 376

Postsale Service Strategy 377Summary 378Applications 378

CHAPTER 14 Developing Pricing Strategies andPrograms 382

Understanding Pricing 383A Changing Pricing Environment 384

MARKETING INSIGHT Giving It AllAway 384

How Companies Price 386Consumer Psychology and

Pricing 386Setting the Price 389

Step 1: Selecting the PricingObjective 389

Step 2: Determining Demand 390Step 3: Estimating Costs 392Step 4: Analyzing Competitors’ Costs, Prices,

and Offers 395Step 5: Selecting a Pricing

Method 395Step 6: Selecting the Final Price 402

MARKETING INSIGHT Stealth PriceIncreases 403

Adapting the Price 403Geographical Pricing (Cash, Countertrade,

Barter) 404Price Discounts and Allowances 404Promotional Pricing 405Differentiated Pricing 406

Initiating and Responding to PriceChanges 407

Initiating Price Cuts 407Initiating Price Increases 408Responding to Competitors’ Price

Changes 409Summary 410Applications 410

PART 6 Delivering Value 414

CHAPTER 15 Designing and Managing IntegratedMarketing Channels 414

Marketing Channels and Value Networks 415The Importance of Channels 416Hybrid Channels and Multichannel

Marketing 416Value Networks 417

The Role of Marketing Channels 418Channel Functions and Flows 418Channel Levels 420Service Sector Channels 421

Channel-Design Decisions 422Analyzing Customer Needs and Wants 422Establishing Objectives and

Constraints 423Identifying Major Channel Alternatives 424Evaluating Major Channel Alternatives 426

Channel-Management Decisions 427Selecting Channel Members 427Training and Motivating Channel

Members 428Evaluating Channel Members 429Modifying Channel Design and

Arrangements 429Channel Modification Decisions 429Global Channel Considerations 430

Channel Integration and Systems 431Vertical Marketing Systems 431

MARKETING INSIGHT Channel StewardsTake Charge 432

Horizontal Marketing Systems 433Integrating Multichannel Marketing

Systems 433Conflict, Cooperation, and Competition 435

Types of Conflict and Competition 435Causes of Channel Conflict 436Managing Channel Conflict 436Dilution and Cannibalization 438Legal and Ethical Issues in Channel

Relations 438E-Commerce Marketing Practices 438

Pure-Click Companies 439Brick-and-Click Companies 440

M-Commerce Marketing Practices 441Summary 442Applications 442

xii

CHAPTER 16 Managing Retailing, Wholesaling,and Logistics 446

Retailing 447Types of Retailers 448The New Retail Environment 451Marketing Decisions 453Channels 454

MARKETING MEMO Helping Stores toSell 458

Private Labels 459Role of Private Labels 460Private-Label Success Factors 460

MARKETING INSIGHT Manufacturer’sResponse to the Private Label Threat 461

Wholesaling 461Trends in Wholesaling 463

Market Logistics 464Integrated Logistics Systems 464Market-Logistics Objectives 465Market-Logistics Decisions 466Organizational Lessons 469


PART 7 Communicating Value 474

CHAPTER 17 Designing and Managing IntegratedMarketing Communications 474

The Role of Marketing Communications 476The Changing Marketing Communications

Environment 476

MARKETING INSIGHT Don’t Touch ThatRemote 476

Marketing Communications, Brand Equity,and Sales 478

The Communications Process Models 480Developing Effective Communications 482

Identify the Target Audience 482Determine the Communications

Objectives 482Design the Communications 484

MARKETING INSIGHT CelebrityEndorsements as a Strategy 486

Select the Communications Channels 486

xiii

Establish the Total MarketingCommunications Budget 488

Deciding on the MarketingCommunications Mix 490

Characteristics of the MarketingCommunications Mix 490

Factors in Setting the MarketingCommunications Mix 492

Measuring Communication Results 494Managing the Integrated Marketing

Communications Process 494Coordinating Media 495Implementing IMC 496

MARKETING MEMO How Integrated Is YourIMC Program? 496


CHAPTER 18 Managing Mass Communications:Advertising, Sales Promotions,Events and Experiences, and PublicRelations 502

Developing and Managing an AdvertisingProgram 504

Setting the Objectives 504Deciding on the Advertising Budget 505Developing the Advertising Campaign 506

MARKETING MEMO Print Ad EvaluationCriteria 509

Deciding on Media and MeasuringEffectiveness 510

Deciding on Reach, Frequency, andImpact 511

Choosing among Major Media Types 512Alternate Advertising Options 512

MARKETING INSIGHT Playing Games withBrands 516

Selecting Specific Media Vehicles 516Deciding on Media Timing and

Allocation 517Evaluating Advertising Effectiveness 518

Sales Promotion 519Objectives 519Advertising versus Promotion 519Major Decisions 520

Events and Experiences 524

Events Objectives 524Major Sponsorship Decisions 525Creating Experiences 526

MARKETING MEMO Measuring HighPerformance Sponsorship Programs 526

Public Relations 527Marketing Public Relations 527Major Decisions in Marketing PR 528


CHAPTER 19 Managing PersonalCommunications: Direct andInteractive Marketing, Wordof Mouth, and PersonalSelling 534

Direct Marketing 535The Benefits of Direct Marketing 536Direct Mail 538Catalog Marketing 539Telemarketing 539Other Media for Direct-Response

Marketing 539Public and Ethical Issues in Direct

Marketing 540Interactive Marketing 540

Advantages and Disadvantages of InteractiveMarketing 540

Interactive Marketing CommunicationOptions 541

MARKETING MEMO How to Maximize theMarketing Value of E-mails 543

MARKETING MEMO Segmenting TechUsers 545

Word of Mouth 546Social Media 546Buzz and Viral Marketing 549Opinion Leaders 551

MARKETING MEMO How to Start a BuzzFire 552

Measuring the Effects of Word ofMouth 552

Designing the Sales Force 553Sales Force Objectives and Strategy 554Sales Force Structure 555

MARKETING INSIGHT Major AccountManagement 555

Sales Force Size 556Sales Force Compensation 556

Managing the Sales Force 556Recruiting and Selecting

Representatives 556Training and Supervising Sales

Representatives 557Sales Rep Productivity 557Motivating Sales Representatives 558Evaluating Sales Representatives 559

Principles of Personal Selling 560The Six Steps 561Relationship Marketing 562


PART 8 Creating Successful Long-term Growth 566

CHAPTER 20 Introducing New MarketOfferings 566

New-Product Options 567Make or Buy 567Types of New Products 568

Challenges in New-ProductDevelopment 568

The Innovation Imperative 568New-Product Success 569New-Product Failure 570

Organizational Arrangements 570Budgeting for New-Product

Development 571Organizing New-Product

Development 572Managing the Development Process:

Ideas 573Generating Ideas 573

MARKETING MEMO Ten Ways to Find GreatNew-Product Ideas 574

MARKETING INSIGHT P&G’s New Connect �Develop Approach to Innovation 574

MARKETING MEMO Seven Ways to DrawNew Ideas from Your Customers 576

MARKETING MEMO How to Run aSuccessful Brainstorming Session 577

Using Idea Screening 578

xiv

Managing the Development Process: Conceptto Strategy 579

Concept Development and Testing 579Marketing Strategy Development 582Business Analysis 583

Managing the Development Process:Development to Commercialization 585

Product Development 585Market Testing 585Commercialization 588

The Consumer-Adoption Process 589Stages in the Adoption Process 589Factors Influencing the Adoption

Process 589Summary 590Applications 591

CHAPTER 21 Tapping into Global Markets 594

Competing on a Global Basis 595Deciding Whether to Go Abroad 597Deciding Which Markets to Enter 597

How Many Markets to Enter 598Developed versus Developing Markets 598

MARKETING INSIGHT Spotlight on KeyDeveloping Markets 600

Evaluating Potential Markets 602Deciding How to Enter the Market 603

Indirect and Direct Export 603Licensing 604Joint Ventures 605Direct Investment 605

Deciding on the Marketing Program 606Global Similarities and Differences 606Marketing Adaptation 607

MARKETING MEMO The TenCommandments of Global Branding 608

Global Product Strategies 608Global Communication Strategies 610Global Pricing Strategies 611Global Distribution Strategies 613

Country-of-Origin Effects 614Building Country Images 614Consumer Perceptions of Country of

Origin 614Deciding on the Marketing Organization 616

Export Department 616International Division 616Global Organization 616


xv

CHAPTER 22 Managing a Holistic MarketingOrganization for the LongRun 620

Trends in Marketing Practices 621Internal Marketing 623

Organizing the Marketing Department 623

MARKETING MEMO Characteristics ofCompany Departments That Are TrulyCustomer Driven 624

Relationships with Other Departments 627Building a Creative Marketing

Organization 628

MARKETING INSIGHT The MarketingCEO 628

Socially Responsible Marketing 629Corporate Social Responsibility 630

MARKETING INSIGHT The Rise ofOrganic 633

Socially Responsible Business Models 634Cause-Related Marketing 634

MARKETING MEMO Making a Difference:Top 10 Tips for Cause Branding 637

Social Marketing 638Marketing Implementation and Control 640

Marketing Implementation 640Marketing Control 641Annual-Plan Control 641Profitability Control 642Efficiency Control 642Strategic Control 643

The Future of Marketing 643

MARKETING MEMO Major MarketingWeaknesses 647

Summary 648Applications 648Appendix Tools for Marketing

Control 650

Appendix Sonic Marketing Plan A1Endnotes E1Glossary G1Image Credits C1Name Index I1Company, Brand, and Organization Index I4Subject Index I14

Preface

xvi

What’s New in the 14th EditionThe overriding goal of the revision for the 14th edition of Marketing Management was tocreate as comprehensive, current, and engaging MBA marketing textbook as possible. Whereappropriate, new material was added, old material was updated, and no longer relevant ornecessary material was deleted. Marketing Management, 14th edition, allows those instructorswho have used the 13th edition to build on what they have learned and done while at the sametime offering a text that is unsurpassed in breadth, depth, and relevance for students experi-encing Marketing Management for the first time.

The successful across-chapter reorganization into eight parts that began with the 12th edi-tion of Marketing Management has been preserved, as well as many of the favorably receivedwithin-chapter features that have been introduced through the years, such as topical chapteropeners, in-text boxes highlighting noteworthy companies or issues, and the Marketing Insightand Marketing Memo boxes that provide in-depth conceptual and practical commentary.

Significant changes to the 14th edition include:

• Brand new opening vignettes for each chapter set the stage for the chapter material to fol-low. By covering topical brands or companies, the vignettes are great classroom discussionstarters.

• Almost half of the in-text boxes are new. These boxes provide vivid illustrations of chapterconcepts using actual companies and situations. The boxes cover a variety of products,services, and markets, and many have accompanying illustrations in the form of ads orproduct shots.

• The end-of-chapter section now includes two Marketing in Action mini-cases highlightinginnovative, insightful marketing accomplishments by leading organizations. Each case in-cludes questions that promote classroom discussion and analysis.

• Dramatic changes in the marketing environment have occurred in recent years—in particular,the economic, natural, and technological environments. Throughout the new edition, thesethree areas are addressed, sometimes via new subsections in chapters, with emphasis onmarketing during economic downturns and recessions, the rise of sustainability and “green”marketing, and the increased development of computing power, the Internet, and mobilephones. These new marketing realities make it more important than ever for marketers to beholistic in what they do, the overriding theme of this text.

• Chapter 19, on personal communications, received a significant update with much newmaterial to reflect the changing social media landscape and communications environment.

• Forecasting has been moved to Chapter 3 where it fits well with the material on the market-ing environment.

• Chapter 5 was re-titled as “Creating Long-Term Loyalty Relationships” to better reflect itsstronger area of emphasis.

• Chapters 10 and 11 were reorganized and material swapped. Chapter 11 was also re-titledas “Competitive Dynamics” to acknowledge the significant material added on marketing inan economic downturn.

What Is Marketing Management All About?Marketing Management is the leading marketing text because its content and organizationconsistently reflect changes in marketing theory and practice. The very first edition ofMarketing Management, published in 1967, introduced the concept that companies must becustomer-and-market driven. But there was little mention of what have now become funda-mental topics such as segmentation, targeting, and positioning. Concepts such as brandequity, customer value analysis, database marketing, e-commerce, value networks, hybridchannels, supply chain management, and integrated marketing communications were not

even part of the marketing vocabulary then. Marketing Management continues to reflect thechanges in the marketing discipline over the past 40 years.

Firms now sell goods and services through a variety of direct and indirect channels. Mass ad-vertising is not nearly as effective as it was, so marketers are exploring new forms of communica-tion, such as experiential, entertainment, and viral marketing. Customers are telling companieswhat types of product or services they want and when, where, and how they want to buy them.They are increasingly reporting to other consumers what they think of specific companies andproducts—using e-mail, blogs, podcasts, and other digital media to do so. Company messages arebecoming a smaller fraction of the total “conversation” about products and services.

In response, companies have shifted gears from managing product portfolios to managingcustomer portfolios, compiling databases on individual customers so they can understand thembetter and construct individualized offerings and messages. They are doing less product andservice standardization and more niching and customization. They are replacing monologueswith customer dialogues. They are improving their methods of measuring customer profitabil-ity and customer lifetime value. They are intent on measuring the return on their marketinginvestment and its impact on shareholder value. They are also concerned with the ethical andsocial implications of their marketing decisions.

As companies change, so does their marketing organization. Marketing is no longer a companydepartment charged with a limited number of tasks—it is a company-wide undertaking. It drivesthe company’s vision, mission, and strategic planning. Marketing includes decisions like who thecompany wants as its customers, which of their needs to satisfy, what products and services to of-fer, what prices to set, what communications to send and receive, what channels of distribution touse, and what partnerships to develop. Marketing succeeds only when all departments worktogether to achieve goals: when engineering designs the right products; finance furnishes therequired funds; purchasing buys high-quality materials; production makes high-quality productson time; and accounting measures the profitability of different customers, products, and areas.

To address all these different shifts, good marketers are practicing holistic marketing.Holistic marketing is the development, design, and implementation of marketing programs,processes, and activities that recognize the breadth and interdependencies of today’s market-ing environment. Four key dimensions of holistic marketing are:

1. Internal marketing—ensuring everyone in the organization embraces appropriate market-ing principles, especially senior management.

2. Integrated marketing—ensuring that multiple means of creating, delivering, and commu-nicating value are employed and combined in the best way.

3. Relationship marketing—having rich, multifaceted relationships with customers, channelmembers, and other marketing partners.

4. Performance marketing—understanding returns to the business from marketing activitiesand programs, as well as addressing broader concerns and their legal, ethical, social, and en-vironmental effects.

These four dimensions are woven throughout the book and at times spelled out explicitly.The text specifically addresses the following tasks that constitute modern marketing manage-ment in the 21st century:

1. Developing marketing strategies and plans

2. Capturing marketing insights and performance

3. Connecting with customers

4. Building strong brands

5. Shaping the market offerings

6. Delivering and communicating value

7. Creating successful long-term growth

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What Makes Marketing Managementthe Marketing Leader?Marketing is of interest to everyone, whether they are marketing goods, services, properties,persons, places, events, information, ideas, or organizations. As it has maintained its respectedposition among students, educators, and businesspeople, Marketing Management has kept up-to-date and contemporary. Students (and instructors) feel that the book is talking directly tothem in terms of both content and delivery.

Marketing Management owes its marketplace success to its ability to maximize three dimen-sions that characterize the best marketing texts—depth, breadth, and relevance—as measuredby the following criteria:

• Depth. Does the book have solid academic grounding? Does it contain important theo-retical concepts, models, and frameworks? Does it provide conceptual guidance to solvepractical problems?

• Breadth. Does the book cover all the right topics? Does it provide the proper amount ofemphasis on those topics?

• Relevance. Does the book engage the reader? Is it interesting to read? Does it have lots ofcompelling examples?

The 14th edition builds on the fundamental strengths of past editions that collectively dis-tinguish it from all other marketing management texts:

• Managerial Orientation. The book focuses on the major decisions that marketing man-agers and top management face in their efforts to harmonize the organization’s objectives,capabilities, and resources with marketplace needs and opportunities.

• Analytical Approach. Marketing Management presents conceptual tools and frameworksfor analyzing recurring problems in marketing management. Cases and examples illustrateeffective marketing principles, strategies, and practices.

• Multidisciplinary Perspective. The book draws on the rich findings of various scientificdisciplines—economics, behavioral science, management theory, and mathematics—forfundamental concepts and tools directly applicable to marketing challenges.

• Universal Applications. The book applies strategic thinking to the complete spectrum ofmarketing: products, services, persons, places, information, ideas and causes; consumer andbusiness markets; profit and nonprofit organizations; domestic and foreign companies;small and large firms; manufacturing and intermediary businesses; and low- and high-techindustries.

• Comprehensive and Balanced Coverage. Marketing Management covers all the topics aninformed marketing manager needs to understand to execute strategic, tactical, and admin-istrative marketing.

Student SupplementsmymarketinglabMymarketinglab gives you the opportunity to test yourself on key concepts and skills, trackyour progress through the course and use the personalized study plan activities—all to helpyou achieve success in the classroom.

Features include:

• Personalized Study Plans—Pre- and post-tests with remediation activities directed to helpyou understand and apply the concepts where you need the most help.

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• Interactive Elements—A wealth of hands-on activities and exercises let you experience andlearn actively.

• Current Events Articles—Concise, highly relevant articles about the latest marketing re-lated news with thought provoking short essay questions.

• Critical Thinking Challenge Question—These questions measure core critical-thinkingskills through the context of marketing applications. To answer these questions, you willneed to recognize assumptions, evaluate arguments, identify relevant issues, draw infer-ences, spot logical flaws, and recognize similarities between arguments. Knowledge of mar-keting content picked up through the text and the class will help you zero in on the correctissues, but you will still need to exercise critical judgment in order to get the correct answer.

Marketing Management CasesPrentice Hall Custom Business Resources can provide instructors and students with all thecases and articles needed to enhance and maximize learning in a marketing course. Instructorscan create Custom CoursePacks or Custom CaseBooks. Resources include top-tier cases fromDarden, Harvard, Ivey, NACRA, and Thunderbird, plus full access to a database of articles. Fordetails on how to order these value-priced packages, contact your local representative or visitthe Prentice Hall Custom Business Resources Web site at www.prenhall.com/custombusiness.

Marketing Management Video GalleryMake your classroom “newsworthy.” PH has updated the Marketing Management video li-brary for the 14th edition. A full library of video segments accompany this edition featuringissue-focused footage such as interviews with top executives, objective reporting by real newsanchors, industry research analysts, and marketing and advertising campaign experts. A fullvideo guide, including synopses, discussion questions, and teaching suggestions, is availableon the IRC (online and on CD-ROM) to accompany the video library.

The Marketing Plan Handbook, 4th edition,with Marketing Plan ProMarketing Plan Pro is a highly rated commercial software program that guides you throughthe entire marketing plan process. The software is totally interactive and features 10 samplemarketing plans, step-by-step guides, and customizable charts. Customize your marketingplan to fit your marketing needs by following easy-to-use plan wizards. Follow the clearly out-lined steps from strategy to implementation. Click to print, and your text, spreadsheet, andcharts come together to create a powerful marketing plan. The new The Marketing PlanHandbook, by Marian Burk Wood, supplements the in-text marketing plan material with anin-depth guide to what student marketers really need to know. A structured learning processleads to a complete and actionable marketing plan. Also included are timely, real-world exam-ples that illustrate key points, sample marketing plans, and Internet resources.

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www.prenhall.com/custombusiness

Acknowledgments

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The 14th edition bears the imprint of many people. From Phil Kotler: My colleagues andassociates at the Kellogg School of Management at Northwestern University continue tohave an important impact on my thinking: Nidhi Agrawal, Eric T. Anderson, James C.

Anderson, Robert C. Blattberg, Miguel C. Brendl, Bobby J. Calder, Gregory S. Carpenter, AlexChernev, Anne T. Coughlan, David Gal, Kent Grayson, Karsten Hansen, Dipak C. Jain,Lakshman Krishnamurti, Angela Lee, Vincent Nijs, Yi Qian, Mohanbir S. Sawhney, Louis W.Stern, Brian Sternthal, Alice M. Tybout, and Andris A. Zoltners. I also want to thank the S. C.Johnson Family for the generous support of my chair at the Kellogg School. Completing theNorthwestern team is my former Dean, Donald P. Jacobs, and my current Dean, Dipak Jain,both of whom have provided generous support for my research and writing.

Several former faculty members of the marketing department had a great influence on mythinking when I first joined the Kellogg marketing faculty, specifically Richard M. Clewett,Ralph Westfall, Harper W. Boyd, and Sidney J. Levy. I also want to acknowledge GaryArmstrong for our work on Principles of Marketing.

I am indebted to the following coauthors of international editions of Marketing Manage-ment and Principles of Marketing who have taught me a great deal as we worked together toadapt marketing management thinking to the problems of different nations:

• Swee-Hoon Ang and Siew-Meng Leong, National University of Singapore• Chin-Tiong Tan, Singapore Management University• Friedhelm W. Bliemel, Universitat Kaiserslautern (Germany)• Linden Brown; Stewart Adam, Deakin University; Suzan Burton, Macquarie Graduate

School of Management; and Sara Denize, University of Western Sydney (Australia)• Bernard Dubois, Groupe HEC School of Management (France); and Delphine Manceau,

ESCP-EAP European School of Management• John Saunders, Loughborough University and Veronica Wong, Warwick University (United

Kingdom)• Jacob Hornick, Tel Aviv University (Israel)• Walter Giorgio Scott, Universita Cattolica del Sacro Cuore (Italy)• Peggy Cunningham, Queen’s University (Canada)

I also want to acknowledge how much I have learned from working with coauthors onmore specialized marketing subjects: Alan Andreasen, Christer Asplund, Paul N. Bloom,John Bowen, Roberta C. Clarke, Karen Fox, David Gertner, Michael Hamlin, Thomas Hayes,Donald Haider, Hooi Den Hua, Dipak Jain, Somkid Jatusripitak, Hermawan Kartajaya, NeilKotler, Nancy Lee, Sandra Liu, Suvit Maesincee, James Maken, Waldemar Pfoertsch, GustaveRath, Irving Rein, Eduardo Roberto, Joanne Scheff, Norman Shawchuck, Joel Shalowitz, BenShields, Francois Simon, Robert Stevens, Martin Stoller, Fernando Trias de Bes, Bruce Wrenn,and David Young.

My overriding debt continues to be to my lovely wife, Nancy, who provided me with thetime, support, and inspiration needed to prepare this edition. It is truly our book.

From Kevin Lane Keller: I continually benefit from the wisdom of my marketing colleaguesat Tuck—Punam Keller, Scott Neslin, Kusum Ailawadi, Praveen Kopalle, Jackie Luan, PeterGolder, Ellie Kyung, Fred Webster, Gert Assmus, and John Farley—as well as the leadership ofDean Paul Danos. I also gratefully acknowledge the invaluable research and teaching contribu-tions from my faculty colleagues and collaborators through the years. I owe a considerable debtof gratitude to Duke University’s Jim Bettman and Rick Staelin for helping to get my academiccareer started and serving as positive role models to this day. I am also appreciative of all thatI have learned from working with many industry executives who have generously shared theirinsights and experiences. With this 14th edition, I received some extremely helpful research as-sistance from two former Tuck MBAs—Jeff Davidson and Lowey Sichol—who were as accu-rate, thorough, dependable, and cheerful as you could possibly imagine. Alison Pearsonprovided superb administrative support. Finally, I give special thanks to Punam, my wife, andCarolyn and Allison, my daughters, who make it all happen and make it all worthwhile.

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We are indebted to the following colleagues at other universitieswho reviewed this new edition:

• Jennifer Barr, Richard Stockton College

• Lawrence Kenneth Duke, Drexel University LeBowCollege of Business

• Barbara S. Faries, Mission College, Santa Clara, CA

• William E. Fillner, Hiram College

• Frank J. Franzak, Virginia Commonwealth University

• Robert Galka, De Paul University

• Albert N. Greco, Fordham University

• John A. Hobbs, University of Oklahoma

• Brian Larson, Widener University

• Anthony Racka, Oakland Community College, AuburnHills, MI

• Jamie Ressler, Palm Beach Atlantic University

• James E. Shapiro, University of New Haven

• George David Shows, Louisiana Tech University

We would also like to thank colleagues who have reviewedprevious editions of Marketing Management:

Homero Aguirre, TAMIU

Alan Au, University of Hong Kong

Hiram Barksdale, University of Georgia

Boris Becker, Oregon State University

Sandy Becker, Rutgers University

Parimal Bhagat, Indiana University of Pennsylvania

Sunil Bhatla, Case Western Reserve University

Michael Bruce, Anderson University

Frederic Brunel, Boston University

John Burnett, University of Denver

Lisa Cain, University of California at Berkeleyand Mills College

Surjit Chhabra, DePaul University

Yun Chu, Frostburg State University

Dennis Clayson, University of Northern Iowa

Bob Cline, University of Iowa

Brent Cunningham, Jacksonville State University

Hugh Daubek, Purdue University

John Deighton, University of Chicago

Kathleen Dominick, Rider University

Tad Duffy, Golden Gate University

Mohan Dutta, Purdue University

Barbara Dyer, University of North Carolinaat Greensboro

Jackkie Eastman, Valdosta State University

Steve Edison, University of Arkansas–Little Rock

Alton Erdem, University of Houston at Clear Lake

Elizabeth Evans, Concordia University

Barb Finer, Suffolk University

Chic Fojtik, Pepperdine University

Renee Foster, Delta State University

Ralph Gaedeke, California State University, Sacramento

Robert Galka, De Paul University

Betsy Gelb, University of Houston at Clear Lake

Dennis Gensch, University of Wisconsin, Milwaukee

David Georgoff, Florida Atlantic University

Rashi Glazer, University of California, Berkeley

Bill Gray, Keller Graduate School of Management

Barbara Gross, California State University at Northridge

Lewis Hershey, Fayetteville State University

Thomas Hewett, Kaplan University

Mary Higby, University of Detroit–Mercy

Arun Jain, State University of New York, Buffalo

Michelle Kunz, Morehead State University

Eric Langer, Johns Hopkins University

Even Lanseng, Norwegian School of Management

Ron Lennon, Barry University

Michael Lodato, California Lutheran University

Henry Loehr, Pfeiffer University–Charlotte

Bart Macchiette, Plymouth University

Susan Mann, Bluefield State College

Charles Martin, Wichita State University

H. Lee Matthews, Ohio State University

Paul McDevitt, University of Illinois at Springfield

Mary Ann McGrath, Loyola University, Chicago

John McKeever, University of Houston

Kenneth P. Mead, Central Connecticut State University

Henry Metzner, University of Missouri, Rolla

Robert Mika, Monmouth University

Mark Mitchell, Coastal Carolina University

Francis Mulhern, Northwestern University

Pat Murphy, University of Notre Dame

Jim Murrow, Drury College

Zhou Nan, University of Hong Kong

Nicholas Nugent, Boston College

Nnamdi Osakwe, Bryant & Stratton College

Donald Outland, University of Texas, Austin

Albert Page, University of Illinois, Chicago

Young-Hoon Park, Cornell University

Koen Pauwels, Dartmouth College

Lisa Klein Pearo, Cornell University

Keith Penney, Webster University

Patricia Perry, University of Alabama

Mike Powell, North Georgia College and State University

Hank Pruden, Golden Gate University

Christopher Puto, Arizona State University

Abe Qstin, Lakeland University

Lopo Rego, University of Iowa

Richard Rexeisen, University of St. Thomas

William Rice, California State University–Fresno

Scott D. Roberts, Northern Arizona University

Bill Robinson, Purdue University

Robert Roe, University of Wyoming

Jan Napoleon Saykiewicz, Duquesne University

Larry Schramm, Oakland University

Alex Sharland, Hofstra University

Dean Siewers, Rochester Institute of Technology

Anusorn Singhapakdi, Old Dominion University

Jim Skertich, Upper Iowa University

Allen Smith, Florida Atlantic University

Joe Spencer, Anderson University

Mark Spriggs, University of St. Thomas

Nancy Stephens, Arizona State University

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Michael Swenso, Brigham Young University,Marriott School

Thomas Tellefsen, The College of Staten Island–CUNY

Daniel Turner, University of Washington

Sean Valentine, University of Wyoming

Ann Veeck, West Michigan University

R. Venkatesh, University of Pittsburgh

Edward Volchok, Stevens Institute of Management

D. J. Wasmer, St. Mary-of-the-Woods College

Zac Williams, Mississippi State University

Greg Wood, Canisius College

Kevin Zeng Zhou, University of Hong Kong

A warm welcome and many thanks to the following peoplewho contributed to the global case studies developed forthe 14th edition:

Mairead Brady, Trinity College

John R. Brooks, Jr., Houston Baptist University

Sylvain Charlebois, University of Regina

Geoffrey da Silva, Temasek Business School

Malcolm Goodman, Durham University

Torben Hansen, Copenhagen Business School

Abraham Koshy, Sanjeev Tripathi, and Abhishek, IndianInstitute of Management Ahmedabad

Peter Ling, Edith Cowan University

Marianne Marando, Seneca College

Lu Taihong, Sun Yat-Sen University

The talented staff at Prentice Hall deserves praise for their role in shaping the 14th edition. Wewant to thank our editor, Melissa Sabella, for her contribution to this revision. We also want tothank our project manager, Kierra Bloom, for making sure everything was moving along andfalling into place in such a personable way, both with regard to the book and supplements. Webenefited greatly from the superb editorial help of Elisa Adams, who lent her considerable tal-ents as a development editor to this edition. We also want to acknowledge the fine productionwork of Ann Pulido, the creative design work of Blair Brown, and the editorial assistance ofElizabeth Scarpa. We thank Denise Vaughn for her work on the media package. We also thankour marketing manager, Anne Fahlgren.

Philip KotlerS. C. Johnson Distinguished Professor of International Marketing

Kellogg School of ManagementNorthwestern University

Evanston, Illinois

Kevin Lane KellerE. B. Osborn Professor of Marketing

Tuck School of BusinessDartmouth College

Hanover, New Hampshire

MarketingManagement

isbn 978-0-13-210292-6

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