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MarketingSouthern Methodist University
University of Denver
University of Minnesota
MeGrawHill
McGraw-HillIrwin
DETAILED CONTENTS
Parti Initiating the Marketing Process
1 CREATING CUSTOMER RELATIONSHIPS AND VALUETHROUGH MARKETING 3
Discovering How College Students Study Helps Launch a NewProduct at 3M 3
Discovering Student Study Needs 3Satisfying Student Study Needs 3
What Is Marketing? 4Marketing and Your Career 4Marketing: Delivering Benefits to the Organization, ItsStakeholders, and Society 5The Diverse Factors Influencing Marketing Activities 5What Is Needed for Marketing to Occur 6
Marketing Matters: When Your College Instructor SaysYou "Didn't Do Very Well," ... There's Still Hope! AndMaybe a Fortune! 6
How Marketing Discovers and Satisfies Consumer Needs 8Discovering Consumer Needs 8The Challenge: Meeting Consumer Needs with NewProducts 8Satisfying Consumer Needs 10
The Marketing Program: How Customer Relationships AreBuilt 11
Customer Value and Customer Relationships 11Relationship Marketing and the Marketing Program 12The Marketing Program 133M's Strategy and Marketing Program to Help StudentsStudy 13
How Marketing Became So Important 15Evolution of the Market Orientation 15Ethics and Social Responsibility: Balancing the Interests ofDifferent Groups 17The Breadth and Depth of Marketing 18
Learning Objectives Review 20
Focusing on Key Terms 21
Applying Marketing Knowledge 21
Building Your Marketing Plan 21
Video Case 1: 3M's Post-it® Flag Highlighter: Extending theConcept! 22
2 DEVELOPING SUCCESSFUL MARKETING ANDORGANIZATIONAL STRATEGIES 25
Want to Be an Entrepreneur? Get an "A" in a CorrespondenceCourse in Ice Cream Making! 25
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DETAILED CONTENTS XXXIII
Today's Organizations 26Kinds of Organizations 26What Is Strategy? 26Structure of Today's Organizations 26
Making Responsible Decisions: Using SocialEntrepreneurship to Help People 27
Strategy in Visionary Organizations 28Organizational Foundation: Why Does It Exist?Organizational Direction: What Will It Do? 30
28
Marketing Matters: The Netflix Launch and Its ContinuallyChanging Business Model! 31
Organizational Strategies: How Will It Do It? 31Tracking Strategic Performance with MarketingDashboards 32
Using Marketing Dashboards: How Well Is Ben &Jerry's Doing? 33
Setting Strategic Directions 34A Look Around: Where Are We Now? 34Growth Strategies: Where Do We Want to Go? 35
The Strategic Marketing Process 38The Planning Phase of the Strategic Marketing Process 38The Implementation Phase of the Strategic MarketingProcess 41The Evaluation Phase of the Strategic Marketing Process 42
Learning Objectives Review 44Focusing on Key Terms 45Applying Marketing Knowledge 45Building Your Marketing Plan 45
Video Case 2 IBM: Using Strategy to Build a "Smarter Planet" ^46
APPENDIX A Building an Effective Marketing Plan 48
3 SCANNING THE MARKETING ENVIRONMENT 63
What Is the World's Third Largest Nation? The Social NationCreated by Facebook! 63
Facebook and the Influence of Environmental Forces- 63Where Social Networking and Facebook Are Headed 63
Environmental Scanning 64Tracking Environmental Trends 64An Environmental Scan of Today's Marketplace 65
Social Forces 66Demographics 66
Making Responsible Decisions: Millennials Are Goingto Change the World—through EnvironmentalSustainability! 69
Culture 71Economic Forces 73
Macroeconomic Conditions 73Consumer Income 74
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Going Online: There Are 65 Types of Neighborhoods—Which Type Is Yours? 75
Technological Forces 76Technology of Tomorrow 76Technology's Impact on Customer Value 77Electronic Business Technologies 78
Competitive Forces 78Alternative Forms of Competition 78Components of Competition 79Small Businesses as Competitors 79
Regulatory Forces 80Protecting Competition 80Product-Related Legislation 80Pricing-Related Legislation 82Distribution-Related Legislation 82Advertising- and Promotion-Related Legislation 82
Marketing Matters: Online Tracking: The FTC EncouragesSelf-Regulation 83
Control through Self-Regulation 83
Learning Objectives Review 84Focusing on Key Terms 85Applying Marketing Knowledge 85Building Your Marketing Plan 85
Video Case 3: Geek Squad: A New Business for a NewEnvironment 85
ETHICAL AND SOCIAL RESPONSIBILITY INMARKETING 89
There Is More to Anheuser-Busch than Meets the Palate 89 'Nature and Significance of Marketing Ethics 90
Ethical/Legal Framework in Marketing 90Current Perceptions of Ethical Behavior 91
Understanding Ethical Marketing Behavior 91Societal Culture and Norms 91Business Culture and Industry Practices 92
Making Responsible Decisions: Corporate ConsciWnce inthe Cola War 94
Corporate Culture and Expectations 95
Going Online: The Bribe Payers Index 95
Your Personal Moral Philosophy and Ethical Behavior 96Understanding Social Responsibility In Marketing 98
Three Concepts of Social Responsibility 98The Social Audit and Sustainable Development: Doing Well byDoing Good 101
DETAILED CONTENTS XXXV
Marketing Matters: Will Consumers Switch Brands for aCause? Yes, If... 101
Turning the Table: Consumer Ethics and Social
Responsibility 102
Learning Objectives Review 103Focusing on Key Terms 104Applying Marketing Knowledge 104Building Your Marketing Plan 104
Video Case 4: Toyota: Building Cleaner, Greener Cars 705
Part 2 Understanding Buyers and Markets
5 UNDERSTANDING CONSUMER BEHAVIOR 109
Enlightened Carmakers Know What Custom(h)ers Value 109Consumer Purchase Decision Process and Experience 110
Problem Recognition: Perceiving a Need 110
Information Search: Seeking Value 110
Alternative Evaluation: Assessing Value 111
Purchase Decision: Buying Value 112
Postpurchase Behavior: Value in Consumption or Use 112
Marketing Matters: The Value of a Satisfied Customer tothe Company 113
Consumer Involvement and Problem-Solving Variations 113
Situational Influences 115
Psychological Influences on Consumer Behavior 116Motivation and Personality 116
Making Responsible Decisions: The Ethics of SubliminalMessages 118
Perception 118
Learning 120
Values, Beliefs, and Attitudes 121
Going Online: Identifying Your VALS Profile: WhatMotivates You? 122
Consumer Lifestyle 122
Sociocultural Influences on Consumer Behavior 124Personal Influence 124
Marketing Matters: BzzAgent—The Buzz Experience 125
Reference Groups 126
Family Influence 126
Social Class 128
Culture and Subculture 129
Learning Objectives Review 131
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Focusing on Key Terms 132Applying Marketing Knowledge 132Building Your Marketing Plan 133
Video Case 5: Groupon: Helping Consumers with PurchaseDecisions 7 33
UNDERSTANDING ORGANIZATIONS ASCUSTOMERS 137
Buying Publication Paper Is a Serious Marketing ResponsibilityatJCPenney 137The Nature and Size of Organizational Markets 138
Industrial Markets 138Reseller Markets 138Government Markets 139Global Organizational Markets 139
Measuring Domestic and Global Industrial, Reseller, andGovernment Markets 139Characteristics of Organizational Buying 141
Demand Characteristics 141Size of the Order or Purchase 142Number of Potential Buyers 142Organizational Buying Objectives 142
Going Online: Supplier Diversity Is a Strategic Initiative atAT&T 143
Organizational Buying Criteria 143
Marketing Matters: Harley-Davidson's SupplierCollaboration Creates Customer Value ... and a GreatRide 144
Buyer-Seller Relationships and Supply Partnerships 144
Making Responsible Decisions: Sustainable Procurementfor Sustainable Growth 145
The Buying Center: A Cross-Functional Group 145Charting the Organizational Buying Process 148
Stages in the Organizational Buying Process 148Buying a Machine Vision System 148
Online Buying in Organizational Markets 151Prominence of Online Buying in Organizational Markets 151E-Marketplaces: Virtual Organizational Markets 151
Marketing Matters: eBay Means Business forEntrepreneurs 152
Online Auctions in Organizational Markets 153
Learning Objectives Review 154Focusing on Key Terms 154
DETAILED CONTENTS XXXVII
Applying Marketing Knowledge 155Building Your Marketing Plan 155
Video Case 6: Trek: Building Better Bikes throughOrganizational Buying 155
7 UNDERSTANDING AND REACHING GLOBALCONSUMERS AND MARKETS 159
How Dell, Inc., Built a Billion Dollar Business in India 159Dynamics of World Trade 160
World Trade Flows 160Competitive Advantage of Nations 161
Marketing in a Borderless Economic World 164Decline of Economic Protectionism 164
Making Responsible Decisions: Global Ethics and GlobalEconomics—The Case of Protectionism 165
Rise of Economic Integration 166A New Reality: Global Competition among Global Companiesfor Global Consumers 167
Marketing Matters: The Global Teenager—A Marketof 2 Billion Voracious Consumers with $250 Billion toSpend 170
Emergence of a Networked Global Marketspace 170A Global Environmental Scan 171
Cultural Diversity 171Economic Considerations 175Political-Regulatory Climate 178
Going Online: Checking a Country's Political RiskRating 179
Comparing Global Market-Entry StrategiesExporting 180Licensing 180
179
Marketing Matters: Creative Cosmetics and CreativeExport Marketing in Japan 181
Joint Venture 182Direct Investment 183
Crafting a Worldwide Marketing ProgramProduct and Promotion Strategies 183Distribution Strategy 185Pricing Strategy 186
Learning Objectives Review 186Focusing on Key Terms 187Applying Marketing Knowledge 187Building Your Marketing Plan 187
183
Video Case 7: CNS Breathe Right Strips: Going Global 188
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Part 3 Targeting Marketing Opportunities
8 MARKETING RESEARCH: FROM CUSTOMERINSIGHTS TO ACTIONS 191
How Test Screenings and Tracking Studies Reduce MovieRisks 191
What's in a Movie Name? 191The Risks of Today's (and Tomorrow's) BlockbusterMovies 191Converting Marketing Research Results into Actions 192
The Role of Marketing Research 192What Is Marketing Research? 192The Challenges in Doing Good Marketing Research 192Five-Step Marketing Research Approach 193
Step 1: Define the Problem 193Set the Research Objectives 193Identify Possible Marketing Actions 194
Step 2: Develop the Research Plan 194Specify Constraints 195Identify Data Needed for Marketing Actions 195Determine How to Collect Data 195
Step 3: Collect Relevant Information 196Secondary Data: Internal 196Secondary Data: External 197Advantages and Disadvantages of Secondary Data 197
Marketing Matters: Online Databases and InternetResources Useful to Marketers 198
Primary Data: Watching People 198Primary Data: Asking People 200
Marketing Matters: Buyology: How "Neuromarketing" IsTrying to Understand Consumers 201
Primary Data: Other Sources 205
Using Marketing Dashboards: Are the Carmex SocialMedia Programs Working Well? 206
Advantages and Disadvantages of Primary Data 208
Making Responsible Decisions: No More Personal Secrets:The Downside of Data Mining 209
Step 4: Develop Findings 209Analyze the Data 209Present the Findings 210
Step 5: Take Marketing Actions 211Make Action Recommendations 211Implement the Action Recommendations 212Evaluate the Results 212
Sales Forecasting Techniques 212Judgments of the Decision Maker 212Surveys of Knowledgeable Groups 213Statistical Methods 213
DETAILED CONTENTS XXXIX
Learning Objectives Review 214Focusing on Key Terms 215Applying Marketing Knowledge 215Building Your Marketing Plan 215
Video Case 8: Carmex®: Leveraging Facebook for MarketingResearch 216
9 MARKET SEGMENTATION, TARGETING, ANDPOSITIONING 219
Zappos.corn's "Wow" = Segments + Service 219A Clear Market Segmentation Strategy 219Delivering WOW Customer Service 219
Why Segment Markets? 220What Market Segmentation Means 220When and How to Segment Markets 221
Steps in Segmenting and Targeting Markets 224Step 1: Group Potential Buyers into Segments 224
Marketing Matters: To Which "Flock" Do YouBelong? 226
Step 2: Group Products to Be Sold into Categories 230Step 3: Develop a Market-Product Grid and Estimate the Size ofMarkets 231Step 4: Select Target Markets 232Step 5: Take Marketing Actions to Reach Target Markets 233
Marketing Matters: Apple's Segmentation Strategy—Camp Runamok No Longer 235
Market-Product Synergies: A Balancing Act 236Positioning the Product 236
Two Approaches to Product Positioning 236Writing a Positioning Statement 237Product Positioning Using Perceptual Maps 237A Perceptual Map to Reposition Chocolate Milk for Adults 238
Learning Objectives Review 238-Focusing on Key Terms 239Applying Marketing Knowledge 239Building Your Marketing Plan 239
Video Case 9: Prince Sports, Inc.: Tennis Racquets for EverySegment 239
Part 4 Satisfying Marketing Opportunities
10 DEVELOPING NEW PRODUCTS AND SERVICES 243
Apple's New-Product Innovation Machine 243Apple's Innovation Machine 243iCloud: Where the Digital Lifestyle Is Heading
What Are Products and Services? 244A Look at Goods, Services, and Ideas 244
243
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Classifying Products 244Product Items, Product Lines, and Product Mixes 246How Marketing Dashboards Can Improve New-ProductPerformance 246
Using Marketing Dashboards: Which States AreUnderperforming? 247
New Products and Why They Succeed or FailWhat Is a New Product? 247
247
Marketing Matters: Feature Bloat: Geek Squad to theRescue! 248
Marketing Matters: When a National Brand Doesn't Workin an Unfamiliar Market 250
Why Products and Services Succeed or Fail 251The New-Product Process 253
Stage 1: New-Product Strategy Development 254Stage 2: Idea Generation 254Stage 3: Screening and Evaluation 256Stage 4: Business Analysis 257Stage 5: Development 257
Marketing Matters: Marissa Mayer: The Talent behindGoogle's Familiar White Home Page 258
Stage 6: Market Testing 258Stage 7: Commercialization 259
Learning Objectives Review 260Focusing on Key Terms 261Applying Marketing Knowledge 261Building Your Marketing Plan 262
Video Case 10: Activeion Cleaning Solutions: Marketing aHigh-Tech Cleaning Gadget 262
11 MANAGING SUCCESSFUL PRODUCTS, SERVICES,AND BRANDS 265
Gatorade: Bringing Science to Sweat 265Charting the Product Life Cycle 266
Introduction Stage 266Growth Stage 268Maturity Stage 269
Marketing Matters: Will E-mail Spell Extinction for FaxMachines? 270
Decline Stage 270Four Aspects of the Product Life Cycle
Managing the Product Life Cycle 274Role of a Product Manager 274Modifying the Product 274Modifying the Market 274
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DETAILED CONTENTS xli
Using Marketing Dashboards: Knowing Your CDI andBDI 275
Repositioning the Product 276
Making Responsible Decisions: Consumer Economics ofDownsizing—Get Less, Pay More 277
Branding and Brand Management 278Brand Personality and Brand Equity 278
Picking a Good Brand Name 280
Going Online: Have an Idea for a Brand or Trade Name?Check It Out 281
Branding Strategies 281Packaging and Labeling Products 284
Creating Customer Value and Competitive Advantage through
Packaging and Labeling 284
Marketing Matters:Creating Customer Value throughPackaging—Pez Heads Dispense More than Candy 285
Packaging and Labeling Challenges and Responses 286
Product Warranty 288
Learning Objectives Review 288Focusing on Key Terms 289Applying Marketing Knowledge 289Building Your Marketing Plan 289
Video Case 11: Mary Kay, Inc.: Building a Brand in India 290
12 SERVICES MARKETING 295
Services: Consumers Want Authentic Experiences 295The Uniqueness of Services 296
The Four I's of Services 297
The Service Continuum 299
Classifying Services 300
Marketing Matters: Social Marketing Is a Must forNonprofits 302
How Consumers Purchase Services 303
The Purchase Process 303
Assessing Service Quality 304
Customer Contact and Relationship Marketing 304
Going Online: How Can You Learn about Service Failures?Media Monitoring! 305
Managing the Marketing of ServicesProduct (Service) 306Price 307Place (Distribution) 307
Promotion 308
People 309
Physical Environment 309
Process 309
306
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Services in the Future 310
Using Marketing Dashboards: Are JetBlue FlightsProfitably Loaded? 311
Learning Objectives Review 312Focusing on Key Terms 312Applying Marketing Knowledge 313Building Your Marketing Plan 313
Video Case 12: Philadelphia Phillies, Inc.: Sports Marketing101 313
13 BUILDING THE PRICE FOUNDATION 317
The Result of an "Unthrilled Mother": The Launch of Stubhub.com! 317
Plan for the Start-Up 317How StubHub's Pricing Works Now 317
Nature and Importance of Price 318What Is a Price? 318
Marketing Matters: How Flattening the World AffectsPrices, Revenues, and Costs: Infosys Technologies, Ltd.,IKEA ... and You! 320
Price and the Global Marketplace 320Price as an Indicator of Value 320
Marketing Matters: American Eagle "Buy One, Get OneFree" Hoodies: A Good Deal? 322
Price in the Marketing Mix 322Step 1: Identify Pricing Objectives and Constraints
Identifying Pricing Objectives 323Identifying Pricing Constraints 324
323
Marketing Matters: The Revolutionary Impact of Walmart'sEvery Day Low Prices (EDLP) Strategy 327
Step 2: Estimate Demand and Revenue 328Fundamentals of Estimating Demand 328Fundamentals of Estimating Revenue 330
Step 3: Determine Cost, Volume, and Profit Relationships 333The Importance of Controlling Costs 333Marginal Analysis and Profit Maximization 334Break-Even Analysis 334
Learning Objectives Review 338Focusing on Key Terms 339Applying Marketing Knowledge 339Building Your Marketing Plan 340
Video Case 13: Washburn Guitars: Using Break-Even Points toMake Pricing Decisions 340
14 ARRIVING AT THE FINAL PRICE 343
Vizio, Inc.—Where Vision Meets Value™ in HDTVStep 4: Select an Approximate Price Level 344
Demand-Oriented Pricing Approaches 344
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Marketing Matters: Energizer's Lesson in PricePerception—Value Lies in the Eye of the Beholder 346
Cost-Oriented Pricing Approaches 347Profit-Oriented Pricing Approaches 349Competition-Oriented Pricing Approaches 351
Step 5: Set the List or Quoted Price 352
Using Marketing Dashboards: Are Red Bull Prices Above,At, or Below Market? 353
Choosing a Price Policy 353Company, Customer, and Competitive Effects on Pricing 354
Making Responsible Decisions: Flexible Pricing—Is ThereDiscrimination in Bargaining for a New Car? 355
Balancing Incremental Costs and Revenues 356Step 6: Make Special Adjustments to the List Or QuotedPrice 357
Discounts 358Allowances 359Geographical Adjustments 360
Marketing Matters: Everyday Low Prices at theSupermarket = Everyday Low Profits—Creating CustomerValue at a Cost 361
Legal and Regulatory Aspects of Pricing 361
Going Online: And You Thought That "Free" Is SimplyDefined 364
Learning Objectives Review 364Focusing on Key Terms 365Applying Marketing Knowledge 365Building Your Marketing Plan 365
Video Case 14: 3M Greptile Grip Golf Glove: Pricing anInnovative Product 366
APPENDIX B Financial Aspects of Marketing 368
15 MANAGING MARKETING CHANNELS AND SUPPLYCHAINS 377
Callaway Golf: Designing and Delivering the Goods~for GreatGolf 377Nature and Importance of Marketing Channels 378
What Is a Marketing Channel of Distribution? 378Value Is Created by Intermediaries 378
Channel Structure and Organization 380Marketing Channels for Consumer Products and Services 380Marketing Channels for Business Products and Services 381Electronic Marketing Channels 382Direct and Multichannel Marketing 382Dual Distribution and Strategic Channel Alliances 383
Marketing Matters: Nestle and General Mills—CerealPartners Worldwide 384
Vertical Marketing Systems 384
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Marketing Channel Choice and Management 386Factors Affecting Channel Choice and Management 386
Going Online: Visit an Apple Store to See What All theExcitement Is About 387
Managing Channel Relationships: Conflict andCooperation 388
Using Marketing Dashboards: Channel Sales and Profit atCharlesburg Furniture 389
Logistics and Supply Chain Management 392Supply Chains versus Marketing Channels 392Sourcing, Assembling, and Delivering a New Car: TheAutomotive Supply Chain 392
Marketing Matters: IBM's Integrated Supply Chain—Delivering a Total Solution for Its Customers 394
Supply Chain Management and Marketing Strategy 394Two Concepts of Logistics Management in a SupplyChain 396
Total Logistics Cost Concept 396Customer Service Concept 396
Making Responsible Decisions: Reverse Logistics andGreen Marketing Go Together at Hewlett-Packard:Recycling e-Waste 397
Closing the Loop: Reverse Logistics 398
Learning Objectives Review 398Focusing on Key Terms 399Applying Marketing Knowledge 399Building Your Marketing Plan 399
Video Case 15 Amazon: Delivering the Goods . . . Millions of
Times a Day 400
16 RETAILING AND WHOLESALING 403
Retailers Love It When the Mayor Visits! 403The Value of Retailing 404
Consumer Utilities Offered by Retailing 404The Global Economic Impact of Retailing 405
Classifying Retail Outlets 406Form of Ownership 406
Making Responsible Decisions: Green Isn't Just a Color toRetailers. It's a Value! 407
Level of Service 408Type of Merchandise Line 409
Nonstore Retailing 411Automatic Vending 411Direct Mail and Catalogs 412Television Home Shopping 413Online Retailing 413
DETAILED CONTENTS xlv
Going Online: For Some Consumers, Shopping Is aGame! 414
Telemarketing 415Direct Selling 415
Retailing Strategy 416Positioning a Retail Store 416Retailing Mix 417
Using Marketing Dashboards: Why Apple Stores May Bethe Best in the United States 421
The Changing Nature of Retailing 422The Wheel of Retailing 422The Retail Life Cycle 423
Future Changes in Retailing 424Multichannel Retailing 424Managing the Customer Experience 424
Marketing Matters: The Multichannel MarketingMultiplier 425
Wholesaling 425Merchant Wholesalers 425Agents and Brokers 426Manufacturer's Branches and Offices 426
Learning Objectives Review 427Focusing on Key Terms 427Applying Marketing Knowledge 427Building Your Marketing Plan 428
Video Case 16: Mall of America®: Shopping and a Whole LotMore 428
17 INTEGRATED MARKETING COMMUNICATIONS ANDDIRECT MARKETING 431
Get Engaged. . . in the Twitterverse! 431The Communication Process 432
Encoding and Decoding 433Feedback 434Noise 434
The Promotional Elements 434Advertising 434Personal Selling 435Public Relations 436Sales Promotion 437Direct Marketing 437
Integrated Marketing Communications—Developing thePromotional Mix 438
The Target Audience 438
Marketing Matters: How Can You Reach Generation Y?With Mobile Marketing! 439
The Product Life Cycle 439Product Characteristics 440
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Stages of the Buying Decision 441Channel Strategies 442
Developing an IMC Program 443Identifying the Target Audience 444Specifying Promotion Objectives 444Setting the Promotion Budget 445
Using Marketing Dashboards: How Much Should YouSpend on IMC? 446
Selecting the Right Promotional Tools 447Designing the Promotion 447Scheduling the Promotion 447
Executing and Assessing the Promotion Program 448Direct Marketing 449
The Growth of Direct Marketing 449The Value of Direct Marketing 450Technological, Global, and Ethical Issues in DirectMarketing 451
Making Responsible Decisions: What Information ShouldBe Private? 452
Learning Objectives Review 452Focusing on Key Terms 453Applying Marketing Knowledge 453Building Your Marketing Plan 453
Video Case 17 Mountain Dew: Using IMC and Social Mediato Create and Promote a New Flavor 454
18 ADVERTISING, SALES PROMOTION, AND PUBLICRELATIONS 457
Where Can You Watch TV? Where Can't You? 457Types of Advertisements 458
Product Advertisements 458Institutional Advertisements 459
Developing the Advertising Program 460• - Identifying the Target Audience 460
Specifying Advertising Objectives 460Setting the Advertising Budget 461
Going Online: See Your Favorite Super Bowl Ads Again,and Again! 462
Designing the Advertisement 462Selecting the Right Media 465
Using Marketing Dashboards: What Is the Best Way toReach 1,000 Customers? 467
Different Media Alternatives 467
Making Responsible Decisions: Who Is Responsible forClick Fraud? 473
Scheduling the Advertising 474
DETAILED CONTENTS xlvii
Executing the Advertising Program 475Pretesting the Advertising 475 .Carrying Out the Advertising Program 475
Assessing the Advertising Program 476Posttesting the Advertising 476Making Needed Changes 477
Sales Promotion 477Consumer-Oriented Sales Promotions 477Trade-Oriented Sales Promotions 482
Public Relations 484Publicity Tools 484
Increasing the Value of Promotion 484Building Long-Term Relationships 485Self-Regulation 485
Learning Objectives Review 486Focusing on Key Terms 486Applying Marketing Knowledge 486Building Your Marketing Plan 487
Video Case 18: Google, Inc.: The Right Ads at the RightTime 487
19 USING SOCIAL MEDIA TO CONNECT WITHCONSUMERS 491
Connecting with Today's College Students Using Facebook andTwitter 491
Freshman Move-In Day at West Virginia University 491The New Age of Social Media 491
Understanding Social Media 492What Are Social Media? 492Comparing Social and Traditional Media 494
A Look at Four Important Social Networks 495Facebook 495Twitter 498Linkedln 499YouTube 500
Marketing Matters: What Are Some of Your OtherFavorite Social Networks? 501
Integrating Social Media Into Today's MarketingStrategies 502
Social Media and the Strategic Marketing Process 502Selecting the Social Network 502How Social Media Produce Sales 504Measuring the Results of Social Media Programs 505Greenpeace vs. Nestle's Kit Kat: A NightmarishMeltdown 507
The Future: Social Media + Smartphones + Exotic Apps 508The Convergence of the Real and Digital Worlds 508How This Convergence Links Social Media to MarketingActions 509
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Marketing Matters: The Coolest, Wildest, Weirdest, and... Best... Mobile Apps 509
Where to Now? 510The Global Reach of Social Media 511
Learning Objectives Review 512Focusing on Key Terms 513Applying Marketing Knowledge 513Building Your Marketing Plan 513
Video Case 19: AOI Marketing: Using Facebook to Launch
Bitter Girls 514
20 PERSONAL SELLING AND SALESMANAGEMENT 517
Meet Today's Sales Professional 517Scope and Significance of Personal Selling and SalesManagement 518
Nature of Personal Selling and Sales Management 518Selling Happens Almost Everywhere 518Personal Selling in Marketing 519Creating Customer Solutions and Value through Salespeople:Relationship and Partnership Selling 519
The Many Forms of Personal Selling 520Order-Taking Salespeople 520Order-Getting Salespeople 521Customer Sales Support Personnel 522
Marketing Matters: Creating and Sustaining CustomerValue through Cross-Functional Team Selling 523
The Personal Selling Process: Building Relationships 524Prospecting: Identifying and Qualifying ProspectiveCustomers 524Preapproach: Preparing for the Sales Call 525Approach: Making the First Impression 526Presentation: Tailoring a Solution for a Customer's Needs 526
Marketing Matters: Imagine This ... Putting the Customerinto Customer Solutions! 528
Close: Asking for the Customer's Order or Business 529Follow-Up: Solidifying the Relationship 529
The Sales Management Process 530Sales Plan Formulation: Setting Direction 530
Making Responsible Decisions: The Ethics of AskingCustomers about Competitors 531
Sales Plan Implementation: Putting the Plan into Action 534
Going Online: What Is Your Emotional Intelligence? 536
Salesforce Evaluation: Measuring Results 537
Using Marketing Dashboards: Tracking SalespersonPerformance at Moore Chemical & Sanitation Supply,Inc. 538
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Salesforce Automation and Customer RelationshipManagement 538
Learning Objectives Review 540Focusing on Key Terms 541Applying Marketing Knowledge 541Building Your Marketing Plan 541
Video Case 20: Xerox: Building Customer Relationshipsthrough Personal Selling 542
Part 5 Managing the Marketing Process
21 IMPLEMENTING INTERACTIVE AND MULTICHANNELMARKETING 545
Seven Cycles. One Bike. Yours. 545Creating Customer Value, Relationships, and Experiences inMarketspace 546
Customer Value Creation in Marketspace 546Interactivity, Individuality, and Customer Relationships inMarketspace 547Creating an Online Customer Experience 549
Online Consumer Behavior and Marketing Practice inMarketspace 551
Who Is the Online Consumer? 551
Using Marketing Dashboards: Sizing Up Site Stickiness atSewell Automobile Companies 552
Going Online: Are You a Roving Node or a DriftingSurfer? 553
Marketing Matters: Meet Today's Internet Mom 554
What Online Consumers Buy 554Why Consumers Shop arid Buy Online 555
Making Responsible Decisions: Who Is Responsible forInternet Privacy and Security? 559
When and Where Online Consumers Shop and Buy 560Cross-Channel Shoppers and Multichannel Marketing- 560
Who Is the Cross-Channel Shopper? 560Implementing Multichannel Marketing 560
Learning Objectives Review 562Focusing on Key Terms 563Applying Marketing Knowledge 563Building Your Marketing Plan 564
Video Case 21: Pizza Hut and imc2: Becoming a MultichannelMarketer 564
DETAILED CONTENTS
22 PULLING IT ALL TOGETHER: THE STRATEGICMARKETING PROCESS 569
Reaching Today's On-the-Go Consumer by Breaking the Rulesat "Big G" 569
Cereal Industry Facts of Life 569Creative Initiatives Outside Cereals 570
Marketing Basics: Doing What Works and AllocatingResources 570
Finding and Using What Really Works 571Allocating Marketing Resources Using Sales ResponseFunctions 572
The Planning Phase of the Strategic Marketing Process 575The Vital Importance of Metrics in Marketing Planning 575The Variety of Marketing Plans 576Marketing Planning Frameworks: The Search for Growth 576
Marketing Matters: A Test of Your Skills: Where Are theSynergies? 578
Some Marketing Planning and Strategy Lessons 580The Implementation Phase of the Strategic MarketingProcess 582
Is Planning or Implementation the Problem? 582
Marketing Matters: It Came Out of the Blue: ChobaniGreek Yogurt! 583
Increasing Emphasis on Marketing Implementation 584Improving Implementation of Marketing Programs 584Organizing for Marketing 586
The Evaluation Phase of the Strategic Marketing Process 588The Marketing Evaluation Process 588Evaluation Involves Marketing ROI, Metrics, andDashboards 589Evaluation Using Marketing Metrics and Marketing Dashboardsat General Mills 590
Learning Objectives Review 592Focusing on Key Terms 593Applying Marketing Knowledge 593Building Your Marketing Plan 593
Video Case 22: General Mills Warm Delights: Indulgent,Delicious, and Gooey! 593
APPENDIX C Planning a Career in Marketing 596
APPENDIX D Alternate Cases 614Case D-1 Nike MaxSight Contact Lenses: Seeing a Need 614Case D-2 Daktronics, Inc.: Global Displays in 68 Billion Colors 615Case D-3 Jamba Juice: Scanning the Marketing Environment 617Case D-4 BP's Deepwater Horizon: Ethics and EnvironmentalEffects 619
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Case D-5 The Jamisons Buy an Espresso Machine 621Case D-6 Motetronix Technology: Marketing Smart Dust 622Case D-7 Callaway Golf: The Global Challenge 623
Case D-8 HOM Furniture: Where Keen Observation Pays 626Case D-9 Lawn Mowers: Segmentation Challenges 627Case D-10 Medtronic in China: Where "Simpler" Serves PatientsBetter 628Case D-11 Pampered Pooches Travel in Style 630Case D-12 DigitalThink: Marketing E-Learning Services 631Case D-13 Health Cruises, Inc.: Estimating Cost, Volume, and ProfitRelationships 633Case D-14 Glitzz: Devising a Pricing Strategy 634Case D-15 Shiseido: Channeling Cosmetics in China 635Case D-16 Dell Inc.: A Foundation Built on Supply ChainManagement 638Case D-17 Trader Joe's: Upscale Value 639Case D-18 Banyan Tree Holdings: Creating a Brand with IMC 640Case D-19 Target Corporation: Award-Winning Advertising 644Case D-20 Morgantown Furniture: Making Promotion Trade-Offs 645Case D-21 Crate and Barrel: Multichannel Marketing 647Case D-22 Naked® Juice: Strategy for Growth 647
Glossary 649Learning Review Answers 660Chapter Notes 671Credits 707Name Index 709Company/Product Index 717Subject Index 724