Marketing, Sixteenth Edition
By Roger A. Kerin and Steven W. Hartley
Detailed Contents:
Part 1 Initiating the Marketing Process
1 Creating Customer Relationships And Value Through Marketing 2
Bombas Is Solving Social Problems with Great Socks and Great Marketing! 2
Creating Better Socks 2
Building a Brand with a Purpose 2
Bombas Today 4
Bombas, Marketing, and You 4
What Is Marketing? 4
Marketing and Your Career 5
Marketing: Delivering Value to Customers 5
The Diverse Elements Influencing Marketing Actions 6
What Is Needed for Marketing to Occur 6
How Marketing Discovers and Satisfies Consumer Needs 7
Discovering Consumer Needs 7
The Challenge: Meeting Consumer Needs with New Products 8
Satisfying Consumer Needs 10
The Marketing Program: How Customer Relationships Are Built 11
Relationship Marketing: Easy to Understand, Hard to Do 11
The Marketing Program and Market Segments 13
3M’s Strategy and Marketing Program to Help Students Study 13
How Marketing Became So Important 15
Evolution toward a Market Orientation 15
Focusing on Customer Relationship Management 16
Ethics and Social Responsibility in Marketing: Balancing the
Interests of Different Groups 17
The Breadth and Depth of Marketing 18
Learning Objectives Review 20
Learning Review Answers 20
Focusing on Key Terms 21
Applying Marketing Knowledge 21
Building Your Marketing Plan 21
Video Case 1: Bombas: Creating Socks with a Purpose! 22
2 Developing Successful Organizational And Marketing Strategies 26
I Scream, You Scream, We All Scream for . . . 26
Today’s Organizations 28
Kinds of Organizations 28
What Is Strategy? 28
The Structure of Today’s Organizations 28
Making Responsible Decisions: New Types of Organizations
Help Entrepreneurs Focus on Passion and Purpose 29
Strategy in Visionary Organizations 31
Organizational Foundation: Why Does It Exist? 31
Organizational Direction: What Will It Do? 33
Organizational Strategies: How Will It Do It? 34
Tracking Strategic Performance with Marketing Analytics 34
Applying Marketing Metrics: How Well Is Ben & Jerry’s Doing? 36
Setting Strategic Directions 37
A Look Around: Where Are We Now? 37
Growth Strategies: Where Do We Want to Go? 37
Marketing Matters: Filling the Shoes of Apple CEO Tim
Cook: Where Will Apple’s Projected Future Growth for Its
Major SBUs Come From? 38
The Strategic Marketing Process 41
Guiding Principles Underlying the Strategic Marketing Process 42
The Planning Phase of the Strategic Marketing Process 42
The Implementation Phase of the Strategic Marketing Process 46
The Evaluation Phase of the Strategic Marketing Process 48
Pulling It All Together 49
Learning Objectives Review 50
Learning Review Answers 51
Focusing on Key Terms 52
Applying Marketing Knowledge 52
Building Your Marketing Plan 52
Video Case 2: IBM: Putting Smart Strategy to Work 53
Appendix A Building an Effective Marketing Plan 58
3 Scanning The Marketing Environment 74
Change Is Constant for Marketers at Facebook 74
Facebook in the Future 75
Environmental Scanning 76
Tracking Environmental Trends 76
An Environmental Scan of Today’s Marketplace 77
Social Forces 78
Demographics 78
Making Responsible Decisions: Balancing Profits and
Purpose—Millennial Style 81
Culture 84
Economic Forces 87
Macroeconomic Conditions 87
Consumer Income 88
Marketing Insights About Me: The Census Bureau:
Your Source for Economic Information 89
Technological Forces 90
Technology of Tomorrow 90
Technology’s Impact on Customer Value 90
Technology Enables Data Analytics 91
Competitive Forces 92
Alternative Forms of Competition 92
Components of Competition 93
Small Businesses as Competitors 93
Regulatory Forces 94
Protecting Competition 94
Product-Related Legislation 94
Pricing-Related Legislation 96
Distribution-Related Legislation 96
Advertising- and Promotion-Related Legislation 96
Marketing Matters: Does Protecting Privacy Hurt the Web? 97
Control through Self-Regulation 97
Learning Objectives Review 98
Learning Review Answers 98
Focusing on Key Terms 99
Applying Marketing Knowledge 99
Building Your Marketing Plan 100
Video Case 3: Geek Squad: A New Business for a New Environment 100
4 Ethical And Social Responsibility For Sustainable Marketing 106
Anheuser-Busch: Becoming the Best Beer Company in a Better World 106
Responsible Drinking 106
Environmental Sustainability 106
Nature and Significance of Marketing Ethics 108
An Ethical/Legal Framework for Marketing 108
Critical Perceptions of Ethical Behavior 109
Four Factors Affect Ethical Marketing Behavior 109
Societal Culture and Norms 109
Business Culture and Industry Practices 110
Making Responsible Decisions: Corporate Conscience in the Cola War 112
Marketing Insights About Me: Is Corruption More or Less
Common in My Country? 113
Corporate Culture and Expectations 113
Your Personal Moral Philosophy and Ethical Behavior 114
Understanding Social Responsibility for Sustainable Marketing 116
Three Concepts of Social Responsibility 116
Marketing Matters: Will Consumers Switch Brands for a Cause? Yes, If . . . 119
The Social Audit and Sustainable Development:
Doing Well by Doing Good 119
Turning the Tables: Consumer Ethics and Social Responsibility 121
Learning Objectives Review 122
Learning Review Answers 123
Focusing on Key Terms 124
Applying Marketing Knowledge 124
Building Your Marketing Plan 124
Video Case 4: Toyota: Where the Future Is Available Today 124
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Part 2 Understanding Buyers and Markets
5 UNDERSTANDING CONSUMER BEHAVIOR 130
Enlightened Carmakers Know What Custom(h)ers and Influenc(h)ers Value 130
Consumer Purchase Decision Process and Experience 131
Problem Recognition: Perceiving a Need 132
Information Search: Seeking Value 132
Alternative Evaluation: Assessing Value 132
Purchase Decision: Buying Value 133
Postpurchase Behavior: Realizing Value 134
Marketing Matters: How Much Is a Satisfied Customer Worth? 135
Consumer Involvement Affects Problem Solving 135
Situational Influences That Affect Purchase Decisions 137
Putting the Purchase Decision Process into Practice: Consumer
Touchpoints and Consumer Journey Maps 137
Psychological Influences on Consumer Behavior 139
Consumer Motivation and Personality 139
Consumer Perception 140
Making Responsible Decisions: The Ethics of Subliminal Messages 142
Consumer Learning 142
Consumer Values, Beliefs, and Attitudes 143
Consumer Lifestyle 144
Marketing Insights About Me: What Motivates You?
It Depends on Your Mindset 145
Sociocultural Influences on Consumer Behavior 146
Personal Influence 146
Marketing Matters: BzzAgent—the Buzz Experience 147
Reference Group Influence 148
Applying Marketing Metrics: Are Your Customers
Recommending Your Company or Brand? 149
Social Class Influence 150
Family Influence 150
Culture and Subculture Influences 152
Learning Objectives Review 155
Learning Review Answers 155
Focusing on Key Terms 156
Applying Marketing Knowledge 156
Building Your Marketing Plan 156
Video Case 5: Coppertone: Creating the Leading Sun Care
Brand by Understanding Consumers 157
6 Understanding Organizations As Customers 162
Organizational Buying Is Marketing, Too! Purchasing Publication
Paper for JCPenney 162
Business-to-Business Marketing and Organizational Buyers 163
Organizational Buyers 163
Organizational Markets 164
Measuring Organizational Markets 164
Characteristics of Organizational Buying 165
Demand Characteristics 165
Size of the Order or Purchase 166
Number of Potential Buyers 166
Organizational Buying Objectives 167
Organizational Buying Criteria 167
Buyer–Seller Relationships and Supply Partnerships 168
Marketing Matters: At Milsco Manufacturing, “Our Marketing
Philosophy Is Designed to Develop Partnerships” and Deliver
a Great Ride for Customers’ Seats 169
The Organizational Buying Function, Process, and Buying Center 169
The Buying Function in Organizations 169
Making Responsible Decisions: Sustainable Procurement for
Sustainable Growth at Starbucks 170
Stages in the Organizational Buying Process 170
The Buying Center: A Cross-Functional Group 170
Online Buying in Business-to-Business Marketing 173
Prominence of Online Buying in Organizational Markets 173
E-Marketplaces: Virtual Organizational Markets 173
Marketing Matters: eBay Means Business for Business-to-
Business Marketing Entrepreneurs, Too! 174
Online Auctions in Organizational Markets 175
Learning Objectives Review 176
Learning Review Answers 177
Focusing on Key Terms 177
Applying Marketing Knowledge 177
Building Your Marketing Plan 177
Video Case 6: Trek: Building Better Bikes through
Organizational Buying 178
7 Understanding And Reaching Global Consumers And Markets 182
Transforming the Way India Sells and Buys: Amazon India Builds a
Multibillion-Dollar Operation from the Ground up to the Cloud 182
Amazon’s Awesome Opportunity in India 182
Amazon’s Awesome Challenges in India 182
Failure Was Not an Option 183
Dynamics of World Trade 184
Global Perspective on World Trade 184
United States’ Perspective on World Trade 185
Marketing in a Dynamic Global Economy 186
Economic Protectionism by Individual Countries 186
Making Responsible Decisions: Global Ethics and Global
Economics—The Case of Protectionism 187
Economic Integration among Countries 188
Global Competition among Global Companies for Global Consumers 190
Marketing Matters: The Global Teenager—A Market of
Voracious Consumers 192
The Presence of a Networked Global Marketspace 192
The Prevalence of Economic Espionage 193
A Global Environmental Scan 194
Cultural Diversity 194
Economic Considerations 197
Political-Regulatory Climate 199
Comparing Global Market-Entry Strategies 200
Marketing Matters: Creative Cosmetics and Creative Export
Marketing in Japan 201
Exporting 201
Licensing 202
Joint Venture 202
Direct Investment 203
Crafting a Worldwide Marketing Program 203
Product and Promotion Strategies 203
Distribution Strategy 205
Pricing Strategy 206
Learning Objectives Review 206
Learning Review Answers 207
Focusing on Key Terms 207
Applying Marketing Knowledge 208
Building Your Marketing Plan 208
Video Case 7: Mary Kay, Inc.: Launching Pink Young in China 208
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Part 3 Targeting Marketing Opportunities
8 Marketing Research: From Customer Insights To Actions 212
Hollywood Loves Marketing Research! 212
A Film Industry Secret 212
The Role of Marketing Research 215
What Is Marketing Research? 215
The Challenges in Doing Good Marketing Research 215
Five-Step Marketing Research Approach 215
Step 1: Define the Problem 216
Set the Research Objectives 216
Identify Possible Marketing Actions 217
Step 2: Develop the Research Plan 217
Specify Constraints 217
Identify Data Needed for Marketing Actions 217
Determine How to Collect Data 217
Step 3: Collect Relevant Information 218
Secondary Data: Internal 218
Secondary Data: External 219
Marketing Matters: Online Databases and Internet Resources
Useful to Marketers 220
Advantages and Disadvantages of Secondary Data 220
Primary Data: Watching People 221
Primary Data: Asking People 223
Primary Data: Other Sources 227
Applying Marketing Metrics: Are the Carmex Social Media
Programs Working Well? 228
Making Responsible Decisions: Your Digital Life Is
Transparent: The Downside of Data Mining 231
Advantages and Disadvantages of Primary Data 231
Analyzing Primary Data Using Cross Tabulations 232
Step 4: Develop Findings 233
Analyze the Data 234
Present the Findings 234
Step 5: Take Marketing Actions 235
Make Action Recommendations 236
Implement the Action Recommendations 236
Evaluate the Results 236
Sales Forecasting Techniques 236
Judgments of the Decision Maker 237
Surveys of Knowledgeable Groups 237
Statistical Methods 237
Learning Objectives Review 238
Learning Review Answers 239
Focusing on Key Terms 240
Applying Marketing Knowledge 240
Building Your Marketing Plan 240
Video Case 8: Carmex® (A): Leveraging Facebook for Marketing Research 241
9 Market Segmentation, Targeting, And Positioning 246
There Is Only One Word for the Zappos Experience: WOW! 246
Segmentation Is Zappos’s Secret to Success 246
Delivering WOW through Customer Service 246
Why Segment Markets? 247
What Market Segmentation Means 247
When and How to Segment Markets 249
Steps in Segmenting and Targeting Markets 251
Step 1: Group Potential Buyers into Segments 252
Marketing Insights About Me: To Which “Flock” Do You Belong? 253
Applying Marketing Metrics: What Is the Lifetime Value of a
McDonald’s and Burger King Customer? 257
Step 2: Group Products to Be Sold into Categories 259
Step 3: Develop a Market-Product Grid and Estimate the Size of Markets 260
Step 4: Select Target Markets 260
Step 5: Take Marketing Actions to Reach Target Markets 262
Market-Product Synergies: A Balancing Act 264
Marketing Matters: Apple’s Segmentation Strategy—Camp
Runamok No Longer 265
Positioning the Product 266
Two Approaches to Product Positioning 266
Writing a Product Positioning Statement 266
Product Positioning Using Perceptual Maps 267
A Perceptual Map to Reposition Chocolate Milk for Adults 267
Learning Objectives Review 268
Learning Review Answers 269
Focusing on Key Terms 269
Applying Marketing Knowledge 269
Building Your Marketing Plan 270
Video Case 9: Prince Sports, Inc.: Tennis Racquets for Every Segment 270
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Part 4 Satisfying Marketing Opportunities
10 Developing New Products And Services 274
Apple: The World-Class New-Product Machine 274
Apple’s New-Product Development Successes 274
Apple’s New-Product Development Stumbles 274
The Next Chapter in Apple’s Story: An Apple-Enabled iCar? 275
What Are Products and Services? 276
A Look at Goods, Services, and Ideas 276
Classifying Products 276
Classifying Services 278
Product Classes, Forms, Items, Lines, and Mixes 278
New Products and Why They Succeed or Fail 279
What Is a New Product? 279
Marketing Matters: Too Much of a Good Thing: Feature Bloat
and Feature Fatigue in New-Product Development 280
Why Products and Services Succeed or Fail 281
Tracking New-Product Performance 284
Applying Marketing Metrics: Do Your New Products Have Vitality? 285
The New-Product Development Process 285
Stage 1: New-Product Strategy Development 285
Stage 2: Idea Generation 286
Stage 3: Screening and Evaluation 289
Stage 4: Business Analysis 289
Marketing Matters: Was the Google Glass Half Full or Half Empty? 290
Stage 5: Development 290
Stage 6: Market Testing 291
Stage 7: Commercialization 292
Learning Objectives Review 293
Learning Review Answers 294
Focusing on Key Terms 295
Applying Marketing Knowledge 295
Building Your Marketing Plan 295
Video Case 10: GoPro: Making All of Us Heroes with Exciting New Products 295
11 Managing Successful Products, Services, And Brands 300
Gatorade: Bringing Science to Sweat for 60 Years 300
Creating the Gatorade Brand 300
Building the Gatorade Brand 300
Charting the Product Life Cycle 302
Introduction Stage 302
Growth Stage 304
Maturity Stage 304
Decline Stage 305
Three Aspects of the Product Life Cycle 305
Marketing Matters: Will E-Mail Spell Extinction for Fax Machines? 306
The Product Life Cycle and the Diffusion of Innovation 308
Managing the Product Life Cycle 309
Role of a Product Manager 309
Modifying the Product 310
Modifying the Market 310
Applying Marketing Metrics: Knowing Your CDI and BDI 311
Repositioning the Product 311
Making Responsible Decisions: Consumer Economics of
Shrinkflation—Get Less, Pay More 312
Branding and Brand Management 313
Marketing Insights About Me: Do You Want to Start a
Business Using Your Own Name? Better Check First! 314
Brand Personality and Brand Equity 314
Picking a Good Brand Name 316
Branding Strategies 318
Packaging and Labeling Products 320
Creating Customer Value and Competitive Advantage
through Packaging and Labeling 320
Marketing Matters: Creating Customer Value through
Packaging—Pez Heads Dispense More Than Candy 321
Packaging and Labeling Challenges and Responses 322
Learning Objectives Review 323
Learning Review Answers 324
Focusing on Key Terms 324
Applying Marketing Knowledge 324
Building Your Marketing Plan 325
Video Case 11: Justin’s: Managing a Successful Product with Passion 325
12 Services Marketing 330
Marketing Helped Airbnb Survive the Pandemic,
Now Demand Exceeds Supply! 330
The Uniqueness of Services 331
The Four I’s of Services 333
The Service Continuum 335
Classifying Services 336
Marketing Matters: Social Marketing Is a Must for Nonprofits 338
How Consumers Purchase Services 339
The Purchase Process 339
Assessing Service Quality 339
Customer Contact and Relationship Marketing 340
Marketing Matters: Managing Service Failures:
The Importance of Monitoring and Guarantees 341
Managing the Marketing of Services 342
Product (Service) 343
Price 343
Place (Distribution) 343
Promotion 344
People 345
Physical Environment 345
Process 346
Applying Marketing Metrics: Are JetBlue’s Flights Profitably
Loaded? 347
Services in the Future 347
Learning Objectives Review 348
Learning Review Answers 349
Focusing on Key Terms 350
Applying Marketing Knowledge 350
Building Your Marketing Plan 350
Video Case 12: Minnesota Lynx: Building a Team Brand and
Being a Vehicle for Change! 350
13 Building The Price Foundation 358
VIZIO, Inc.—Building a Smart TV Brand at a Great Value 358
Nature and Importance of Price 360
What Is a Price? 360
Price Is What a Consumer Pays, Value Is What
a Consumer Receives 361
Marketing Matters: Does Spirit Airlines Engage in Value
Pricing? For Some Yes, for Others No 362
Price in the Marketing Mix 362
Step 1: Identify Pricing Objectives and Constraints 363
Identifying Pricing Objectives 363
Identifying Pricing Constraints 365
Step 2: Estimate Demand and Revenue 368
Estimating Demand 368
Price Elasticity of Demand 370
Fundamentals of Estimating Revenue 370
Marketing Matters: Using Big Data to Curb Smoking:
Uncovering the Price Elasticity of Demand for Cigarettes 371
Step 3: Determine Cost, Volume, and Profit Relationships 371
The Importance of Costs and Margins 371
Break-Even Analysis 372
Learning Objectives Review 374
Learning Review Answers 375
Focusing on Key Terms 376
Applying Marketing Knowledge 376
Building Your Marketing Plan 377
Video Case 13: Washburn Guitars: Using Break-Even Points to
Make Pricing Decisions 377
14 Arriving At The Final Price 380
E-Books and E-Conomics: A Twisted Tale of Pricing for Profit 380
Setting the Stage with e-Readers: Amazon’s Kindle 380
Printed Book Pricing Practices 380
Enter e-Books 380
Pricing e-Books . . . Profitably 381
Step 4: Select an Approximate Price Level 382
Demand-Oriented Pricing Approaches 382
Marketing Matters: Energizer’s Lesson in Price Perception—
Value Lies in the Eye of the Beholder 384
Cost-Oriented Pricing Approaches 385
Profit-Oriented Pricing Approaches 387
Competition-Oriented Pricing Approaches 388
Applying Marketing Metrics: Are Red Bull Prices Above, At,
or Below the Market? 390
Step 5: Set the List or Quoted Price 391
Choose a Price Policy 391
Making Responsible Decisions: The Ethics and Economics of Surge Pricing 392
Consider Company, Customer, and Competitive Effects on Pricing 392
Balance Incremental Costs and Revenues 394
Step 6: Make Special Adjustments to the List or Quoted Price 395
Discounts 395
Allowances 397
Geographical Adjustments 397
Marketing Matters: Everyday Low Prices at the
Supermarket = Everyday Low Profits—Creating
Customer Value at a Cost 398
Legal and Regulatory Aspects of Pricing 399
Learning Objectives Review 401
Learning Review Answers 402
Focusing on Key Terms 403
Applying Marketing Knowledge 403
Building Your Marketing Plan 403
Video Case 14: Carmex (B): Setting the Price
of the Number One Lip Balm 404
Appendix B Financial Aspects of Marketing 408
15 Managing Marketing Channels And Supply Chains 416
Eddie Bauer: The “Brick, Click, and Flip” Pick for the Active Outdoor Enthusiast 416
Eddie Bauer’s Multichannel Marketing Strategy 416
Supply Chain Dynamics at Eddie Bauer 416
Nature and Importance of Marketing Channels 418
What Is a Marketing Channel of Distribution? 418
How Customer Value Is Created by Intermediaries 418
Marketing Channel Structure and Organization 420
Marketing Channels for Consumer Products and Services 420
Marketing Channels for Business Products and Services 421
Digital Marketing Channels 422
Direct to Consumer and Multichannel Marketing 422
Dual Distribution and Strategic Channel Alliances 423
Marketing Matters: Nestlé and General Mills—Cereal Partners Worldwide 424
Vertical Marketing Systems 424
Marketing Channel Choice and Management 426
Factors Affecting Channel Choice and Management 426
Managing Channel Relationships: Conflict and Cooperation 428
Applying Marketing Metrics: Channel Sales and Profit at Charlesburg Furniture 429
Logistics and Supply Chain Management 431
Supply Chains versus Marketing Channels 432
Sourcing, Assembling, and Delivering a New Car: The Automotive Supply Chain 433
Supply Chain Management and Marketing Strategy 433
Marketing Matters: IBM’s Watson Supply Chain—Delivering a
Total Solution for Its Customers 434
Two Concepts of Logistics Management in a Supply Chain 435
Total Logistics Cost Concept 436
Customer Service Concept 436
Closing the Loop in the Circular Economy: Reverse Logistics 437
Making Responsible Decisions: Reverse Logistics and Green
Marketing Go Together at Hewlett-Packard: Recycling e-Waste 438
Learning Objectives Review 438
Learning Review Answers 439
Focusing on Key Terms 440
Applying Marketing Knowledge 440
Building Your Marketing Plan 440
Video Case 15: Amazon: Delivering the Earth’s Biggest Selection! 441
16 Retailing And Wholesaling 444
Malls Are Reinventing Themselves, for You! 444
The Value of Retailing 445
Consumer Utilities Offered by Retailing 446
The Global Economic Impact of Retailing 446
Classifying Retail Outlets 447
Making Responsible Decisions: Retailers Are Getting Serious
about Sustainability! 448
Form of Ownership 448
Level of Service 450
Type of Merchandise Line 451
Nonstore Retailing 453
Automatic Vending 453
Direct Mail and Catalogs 454
Television Home Shopping 455
Online Retailing 455
Telemarketing 456
Direct Selling 456
Formulating a Retail Strategy 457
Positioning in a Retail Setting 457
Retailing Mix 459
Applying Marketing Metrics: Why Apple Stores
May Be the Best in the United States! 462
The Evolution of Retailing 463
The Wheel of Retailing 463
The Retail Life Cycle 464
Current Trends in Retailing 465
Safety and Convenience 465
Marketing Matters: The Multichannel Marketing Multiplier 466
Multichannel Retailing 466
Data Analytics 467
Wholesaling Functions and Firms 467
Merchant Wholesalers 467
Agents and Brokers 468
Manufacturers’ Branches and Offices 468
Learning Objectives Review 469
Learning Review Answers 469
Focusing on Key Terms 470
Applying Marketing Knowledge 470
Building Your Marketing Plan 471
Video Case 16: Mall of America®: America’s Biggest Mall
Knows the Secret to Successful Retailing! 471
17 Implementing Interactive And Multichannel Marketing 476
Seven Cycles Delivers Just One Bike. Yours. 476
Creating Customer Value, Relationships, and Experiences
in a Digital Environment 478
Marketing Challenges in Two Environments 478
Creating Customer Value in a Digital Environment 478
Interactivity and Individuality Create Customer Relationships 479
Creating a Compelling Online Customer Experience 481
Applying Marketing Metrics: Sizing Up Site Stickiness at
Sewell Automotive Companies 483
Online Consumer Behavior and Marketing Opportunities and Practices 484
Who Is the Online Consumer? 484
What Consumers Buy Online 484
Why Consumers Shop and Buy Online 484
Making Responsible Decisions: Who Is Responsible for
Internet Privacy and Security? 489
When and Where Consumers Shop and Buy Online 490
How Consumers Shop and Buy Online 490
Cross-Channel Consumers and Multichannel Marketing 490
Who Is the Cross-Channel Consumer? 490
Implementing Multichannel Marketing 491
Learning Objectives Review 493
Learning Review Answers 494
Focusing on Key Terms 494
Applying Marketing Knowledge 494
Building Your Marketing Plan 495
Video Case 17: Poshmark: Succeeding at Social Commerce 495
18 Integrated Marketing Communications And Direct Marketing 500
Taco Bell Has the World’s Biggest Billboard:The Taco Moon! 500
The Communication Process 502
Encoding and Decoding 502
Feedback 503
Noise 503
The Promotional Elements 503
Advertising 504
Personal Selling 505
Public Relations 505
Sales Promotion 506
Direct Marketing 506
Integrated Marketing Communications—Developing the Promotional Mix 507
The Target Audience 507
Marketing Matters: Marketers Want to Go to College,
and on Spring Break, with You! 508
The Product Life Cycle 508
Product Characteristics 509
Stages of the Consumer Journey 510
Channel Strategies 511
Developing an Integrated Marketing Communications Program 512
Identifying the Target Audience 513
Specifying Promotion Objectives 513
Setting the Promotion Budget 514
Applying Marketing Metrics: How Much Should You Spend on IMC? 515
Selecting the Right Promotional Tools 515
Designing the Promotion 516
Scheduling the Promotion 516
Executing and Assessing the Promotion Program 517
Direct Marketing 518
The Growth of Direct Marketing 518
The Value of Direct Marketing 519
Technological, Global, and Ethical Issues in Direct Marketing 520
Making Responsible Decisions: What Is the Future of Your Privacy? 521
Learning Objectives Review 522
Learning Review Answers 522
Focusing on Key Terms 523
Applying Marketing Knowledge 523
Building Your Marketing Plan 524
Video Case 18: Chipotle Mexican Grill: Where IMC Helps Deliver Food “For Real”! 524
19 Advertising, Sales Promotion, And Public Relations 530
Advertisers Prepare for a Cookieless Future and “Smart Audiences”! 530
Types of Advertisements 532
Product Advertisements 532
Institutional Advertisements 533
Developing the Advertising Program 534
Identifying the Target Audience 534
Specifying Advertising Objectives 535
Setting the Advertising Budget 535
Marketing Insights About Me: Are You an Expert at Picking
the Best Super Bowl Ads? 537
Designing the Advertisement 537
Selecting the Right Media 541
Applying Marketing Metrics: What Is the Best Way to Reach
1,000 Customers? 542
Different Media Alternatives 542
Making Responsible Decisions: Who Is Responsible for
Preventing Click Fraud? 548
Scheduling the Advertising 550
Executing the Advertising Program 550
Pretesting the Advertising 550
Carrying Out the Advertising Program 551
Assessing the Advertising Program 552
Posttesting the Advertising 552
Making Needed Changes 553
Sales Promotion 553
Consumer-Oriented Sales Promotions 553
Trade-Oriented Sales Promotions 558
Public Relations 559
Publicity Tools 560
Increasing the Value of Promotion 560
Building Long-Term Relationships 560
Self-Regulation 561
Learning Objectives Review 561
Learning Review Answers 562
Focusing on Key Terms 563
Applying Marketing Knowledge 563
Building Your Marketing Plan 563
Video Case 19: Fallon Worldwide: Creating a Competitive
Advantage with Creativity 564
20 Using Social Media And Mobile Marketing To Connect With Consumers 570
Consumers Are Social, Mobile, and Connected—In Their Cars! 570
Understanding Social Media 571
Defining Social Media 571
Classifying Social Media 572
Social Networks, Social Media, Influencer Marketing, and Social Shopping 573
Social Media and Influencer Marketing 573
Social Media and Social Shopping 574
A Look at Six Prominent Social Media 575
Facebook 576
Instagram 577
Twitter 579
YouTube 580
Marketing Matters: Vloggers Are the New Power Players, Worldwide! 581
Pinterest 581
LinkedIn 583
Social Media and User Privacy 584
Social Media Marketing Programs and Customer Engagement 584
Applying Marketing Metrics: Measuring Your Customer
Engagement Rate on Social Media 585
Selecting Social Media 586
Selecting Social Media Content 587
Measuring the Results of Social Media Marketing Programs 588
Carmex Goes Viral with Luck and a LeBron James Bear Hug 590
The Future: Convergence and Mobility 591
The Convergence of Real and Digital Worlds 591
Mobile Marketing: Tightening Links to Marketing Actions 593
Learning Objectives Review 594
Learning Review Answers 595
Focusing on Key Terms 596
Applying Marketing Knowledge 596
Building Your Marketing Plan 596
Video Case 20: Body Glove: Helping Consumers Do What They Love! 597
21 Personal Selling And Sales Management 602
Meet Today’s Sales Professional 602
Scope and Significance of Personal Selling and Sales Management 603
Nature of Personal Selling and Sales Management 604
Selling Happens Almost Everywhere 604
Personal Selling in Marketing and Entrepreneurship 604
Creating Customer Solutions and Value through Salespeople:
Relationship Selling 605
Marketing Matters: Science and Selling: Is Customer Value
Creation in Your Genes? 606
The Many Forms of Personal Selling 607
Order-Taking Salespeople 607
Order-Getting Salespeople 607
Customer Sales Support Personnel 608
Marketing Matters: Creating and Sustaining Customer Value
through Cross-Functional Team Selling 609
The Personal Selling Process: Building Relationships 610
Prospecting: Identifying and Qualifying Prospective
Customers 610
Preapproach: Preparing for the Sales Call 611
Approach: Making the First Impression 612
Presentation: Tailoring a Solution for a Customer’s Needs 612
Marketing Matters: Imagine This . . . Putting the Customer
into Customer Solutions! 614
Close: Asking for the Customer’s Order or Business 615
Follow-Up: Solidifying the Relationship 615
The Sales Management Process 616
Sales Plan Formulation: Setting Direction 616
Making Responsible Decisions: The Ethics of Asking
Customers about Competitors 617
Sales Plan Implementation: Putting the Plan into Action 620
Marketing Insights About Me: What Is Your Emotional Intelligence? You Might Be Surprised. 621
Salesforce Evaluation: Measuring Results 622
Customer Relationship Management Systems and Technology 623
Applying Marketing Metrics: Tracking Salesperson Performance
at Moore Chemical & Sanitation Supply, Inc. 624
Learning Objectives Review 626
Learning Review Answers 626
Focusing on Key Terms 627
Applying Marketing Knowledge 627
Building Your Marketing Plan 628
Video Case 21: Cascade Maverik: Creating an Amazing Success
Story with Exceptional Salespeople 628
22 Pulling It All Together: The Strategic Marketing Process 632
Strategic Marketing Helps General Mills “Accelerate” to Success! 632
Planning for Even More Change 632
Creative Initiatives at General Mills 633
Marketing Basics: Doing What Works and Allocating Resources 634
Finding and Using What Really Works 634
Allocating Marketing Resources Using Sales Response Functions 635
The Planning Phase of the Strategic Marketing Process 638
The Use of Marketing Metrics in Marketing Planning 638
The Time Horizon of Marketing Plans 638
Competing Planning Perspectives for Pursuing Growth and Profit 639
Some Marketing Planning and Strategy Lessons 642
The Implementation Phase of the Strategic Marketing Process 643
Is Planning or Implementation the Problem? 643
Increasing Emphasis on Marketing Implementation 644
Improving Implementation of Marketing Programs 644
Organizing for Marketing 645
The Evaluation Phase of the Strategic Marketing Process 647
The Marketing Evaluation Process 647
Marketing ROI, Metrics, and Dashboards 648
Evaluation Using Marketing Metrics and Marketing
Dashboards at General Mills 649
Learning Objectives Review 651
Learning Review Answers 651
Focusing on Key Terms 652
Applying Marketing Knowledge 652
Building Your Marketing Plan 652
Video Case 22: Ford Motor Company: Applying the Strategic
Marketing Process to Build a Better World 653
Part 5 Appendices
Appendix C Planning a Career in Marketing 657
Appendix D Alternate Cases, available in Connect at www.connect.
mheducation.com
PART 1
D-1 Chobani®: Making Greek Yogurt a Household Name
D-2 Daktronics, Inc.: Global Displays in 68 Billion Colors
D-3 Jamba Juice: Scanning the Marketing Environment
D-4 BP’s Deepwater Horizon: Ethics and Environmental Effects
PART 2
D-5 Groupon: Helping Consumers with Purchase Decisions
D-6 Motetronix Technology: Marketing Smart Dust
D-7 Callaway Golf: The Global Challenge
PART 3
D-8 HOM Furniture: Where Keen Observation Pays
D-9 Lawn Mowers: Segmentation Challenges
PART 4
D-10 Medtronic in China: Where “Simpler” Serves Patients Better
D-11 P&G’s Secret Deodorant: Finding Inspiration in Perspiration
D-12 Philadelphia Phillies, Inc.: Sports Marketing 101
D-13 Wellness Getaways, Inc.: The Challenge of Setting a Price
D-14 Glitzz: Devising a Pricing Strategy
D-15 Shiseido: Channeling Cosmetics in China
D-16 Trader Joe’s: Upscale Value
D-17 Crate and Barrel: Multichannel Marketing
D-18 Banyan Tree Holdings: Creating a Brand with IMC
D-19 Google, Inc.: The Right Ads at the Right Time
D-20 AOI Marketing: Using Facebook to Launch Bitter Girls®
D-21 Selling College Textbooks
D-22 Naked® Juice: Strategy for Growth Glossary 678
Name Index 688
Company/Product Index 701
Subject Index 711