MKTG5, 5th Edition
By Charles W Lamb, Joseph F Hair, Carl McDaniel, Jane Summers and Michael Gardiner
Contents:
Part 1 AN INTRODUCTION TO MARKETING
1 An overview of marketing 2
What is marketing? 2
A social and evolving science 3
Participating in marketing 4
Marketing exchange 4
Marketing management philosophies 5
Production orientation 5
Sales orientation 6
Market orientation 6
Societal marketing orientation 8
Co-created value orientation 8
Who’s in charge? 9
How organisations apply the different orientations 10
The organisation’s focus 10
The organisation’s understanding of customer value 10
The organisation’s attitude to customer satisfaction 12
Defining the organisation’s business 12
Identifying the product’s target audience 12
The organisation’s primary goal 13
The sales tools the organisation uses 13
Building relationships 14
Why study marketing? 16
Marketing plays an important role in society 16
Marketing is important to businesses 16
Marketing offers outstanding career opportunities 16
Marketing is important to you 17
2 Ethics and the marketing environment 18
The external marketing environment 18
Factor 1: Understand current customers 19
Factor 2: Understand what drives consumer decisions 20
Factor 3: Identify the most valuable customers and
understand their needs 20
Factor 4: Understand the competition 20
Environmental management 20
The sociocultural environment 21
Baby boomers: demanding change 22
Generation X: savvy and cynical 23
Generation Y (Millennials): born to shop 23
Generation Z or iGeneration: the silent generation 24
Generation Alpha 24
How social media have changed our behaviour 25
Growth of component lifestyles 25
The demographic environment 26
The changing character of families 26
Multiculturalism 26
The economic environment 27
Consumer incomes 27
Inflation 27
Recession 27
The technological environment 27
The competitive environment 28
Industry analysis 28
Identifying your place in the industry 29
Competitor analysis 29
The political and legal environment 29
Federal legislation 29
Regulatory agencies 30
Ethics, morality and law 30
Ethical theories 31
Personal ethics 33
Part 2 CONSUMER INFORMATION 35
- Consumer decision making 36
Understanding consumer behaviour 36
Value 37
The traditional consumer decision-making process 38
Stage 1: Need recognition 39
Stage 2: Information search 39
Stage 3: Evaluation of alternatives 42
Stage 4: Purchase 44
Stage 5: Post-purchase behaviour 44
Consumer buying decisions and involvement 46
Determining the level of consumer involvement 47
Marketing implications of involvement 48
The consumer decision journey 48
Factors influencing consumer buying decisions 50
Cultural influences 51
Social influences 54
Individual influences 58
Psychological influences 60
What is business-to-business marketing (B2B)? 64
- Business-to-business marketing 64
Business versus consumer markets 66
Demand 66
Purchase volume 67
Number of customers 68
Distribution structure 68
Nature of buying 68
Primary promotional method 69
Trends in B2B marketing 69
Social media in B2B marketing 70
Content marketing 71
Personalised communications and AI 71
Account-based marketing 71
Relationship marketing and strategic alliances 73
Major categories of business customers 74
Producers 74
Resellers 75
Governments 75
Institutions 75
Types of business products 75
Major equipment 76
Accessory equipment 76
Raw materials 76
Component parts 76
Processed materials 77
Supplies 77
Business services 77
Understand business buying behaviour 77
Buying centres 77
Evaluative criteria 78
Buying situations 79
Purchasing ethics 80
Customer service 81
Understanding market segmentation 82
5 Segmenting and targeting markets 82
What is a market segment? 83
Why marketers use segmentation 84
The process of segmenting a market 85
Step 1: Select a market or product category
for study 85
Step 2: Select bases and descriptors/variables
for segmentation 86
Geographic base 86
Demographic base 87
Psychographic base 89
Behavioural base 90
Access base 91
Step 3: Analyse and profile segments to identify
target markets 92
Step 4: Select targeting strategies 94
Undifferentiated targeting 94
Concentrated targeting 95
Multi-segment targeting 95
Step 5: Develop a positioning strategy 96
Perceptual mapping 97
Positioning bases 97
Segmenting for markets other than consumer markets 98
Segmenting business markets 99
Segmenting for a one-to-one market 100
Segmenting a global market 101
Segmentation in a social market 101
6 Market research, data collection and analytics 103
The role of market research in marketing
decision making 103
The practice of market research 104
Steps in a market research project 106
Opportunity or problem definition 106
Secondary data 108
Research design 110
Sampling 118
Collecting data 120
Analysing data 121
Present findings and recommend actions 121
Following up 122
The growth of emerging technologies 122
Mobile-first delivery 122
Consumer-generated media (CGM) 123
Competitive intelligence 124
Part 3 MANAGING THE MARKETING MIX 125
- Product concepts 126
What is a product? 126
Types of products 127
Convenience products 128
Shopping products 129
Speciality products 129
Unsought products 129
Product items, lines and mixes 130
Adjustments to product items, lines and mixes 132
The market uses of branding 134
Benefits of branding 134
Branding strategies 136
Generic products versus branded products 136
Manufacturers’ brands versus private brands 137
Individual brands versus family brands 138
Co-branding 139
Trademarks 139
Packaging and14 0 Packaging functions 140
Labelling 142
Greenwashing 142
Universal product codes 143
Quick response codes 143
Product guarantees and warranties 143
- Developing and managing products 145
The product life cycle (PLC) 145
Introductory stage 147
Growth stage 148
Maturity stage 149
Decline stage 149
Implications for marketing management 150
The importance of new products 151
Categories of new products 152
The new-product development process 152
New-product strategy 153
Idea generation 154
Idea screening 155
Business analysis 155
Development 156
Test marketing 156
Commercialisation 157
Global issues 158 The spread 159 Diffusion of 159 Product characteristics and the rate of adoption 160
Marketing implications of the adoption process 160
- Services, non-profit and other intangibles 162
The importance of services marketing 162
How services differ from goods 163
Intangibility 163
Inseparability 164
Heterogeneity 164
Perishability 164
Service qualit1y6 4
The gap model of service quality 165
Marketing mixes for services 167
Product (service) strategy 167
Place (distribution) strategy 168
Promotion strategy 169
Price strategy 169
Global issues 169
Relationship marketing in services 170
Internal marketing in service organisations 170
Non-profit-organisation marketing 171
Unique aspects of non-profit organisation marketing
strategies 171
Product decisions 172
Place (distribution) decisions 172
Promotion decisions 173
Pricing decisions 173
Social and peer-to-peer marketing 173
Peer-to-peer marketing 174
- Marketing channels and distribution decisions 176
Specialisation and division of labour 176
Overcoming discrepancies 177
Contact efficiency 178
Channel intermediaries and their functions 179
Channel functions performed by intermediaries 180
Channel structures 180
Alternative channel arrangements 183
Issues that influence channel strategy 184
Factors affecting channel choice 184
Levels of distribution intensity 185
Channels and their relationships 187
Supply chains and supply chain management 189
Benefits of supply chain management 190
Supply chain integration 190
The key processes of supply chain management 192
Customer relationship management 192
Customer service management 193
Demand management 193
Order fulfilment 193
Manufacturing flow management 193
Supplier relationship management 194
Product development and commercialisation 194
Returns management 195
How supply chain functions affect company success 195
Supply management 196
Inventory control 196
Order processing 197
Production 198
Warehousing and materials handling 198
Transportation 199
Supply chain technologies 200
Sustainable supply chain management 200
Trends in supply chain management 201
Outsourcing logistics functions 201
Supply chain risk, security and resilience 201
Electronic distribution 202
Blockchains 202
Global logistics and supply chain management 203
Channel and distribution decisions: retail and
services 204
Retailing 204
Main types of retail operations 205
Services 207
Customer trends and advancements 207
Omnichannel versus multichannel marketing 207
Use of emerging technology 208
- Integrated marketing communication (IMC) 210
Introducing integrated marketing
communication (IMC) 210
Traditional media and digital marketing 212
The communication process 213
The sender and encoding 213
Message transmission 214
The receiver and decoding 214
Feedback 215
The communication process and the promotional mix 216
The goals and tasks of promotion 218
Informing 218
Persuading 219
Reminding 219
Connecting 219
The elements of the promotional mix 220
Personal selling 220
Direct marketing 220
Advertising 221
Sales promotion 221
Public relations 222
Content marketing and social media 223
Factors affecting the promotional mix 223
Nature of the product 223
Stage in the product life cycle 224
Target market characteristics 225
Type of buying decision 225
Availability of funds for promotion 225
Push and pull strategies 225
Promotional goals and the AIDA concept 227
AIDA and the promotional mix 228
- The promotions mix 230
The importance and effects of advertising 230
Advertising and market share 231
Advertising and the consumer 233
Types of advertising 234
Institutional advertising 234
Product advertising 234
Making creative and media decisions 236
Determining advertising campaign objectives 237
Post-campaign evaluation 240
Media types 240
Media selection considerations 245
Media scheduling 247
Sales promotion 247
The objectives of sales promotion 248
Tools for consumer sales promotion 248
Public relations 251
Major PR tools 252
Managing unfavourable publicity 254
Personal selling 254
Relationship selling 255
Selling in the technology age 256
Customer relationship management (CRM) and
personal selling 257
Leveraging customer information 259
Social media 260
Types of media 261
Social behaviour of consumers 262
Identifying social media objectives 263
Evaluation and measurement of social media 264
Social media tools 265
Mobile technology 265
The changing world of social media 268
- Pricing 269
The importance of price 269
What is price? 269
The importance of price to marketing managers 272
Pricing objectives 274
Profit-oriented pricing objectives 275
Sales-oriented pricing objectives 275
Status-quo pricing objectives 275
The demand determinant of price 275
The nature of demand 275
How demand and supply establish prices 276
Elasticity of demand 276
The cost determinant of price 278
Mark-up pricing 279
Other determinants of price 279
Stages in the product life cycle 279
The competition 280
Distribution strategy 281
The electronic environment 281
Promotion strategy 281
Demands of large customers 282
The relationship of price to quality 282
How to set a price on a product 283
Establish pricing goals 283
Estimate demand, costs and profits 284
Choose a price strategy 284
The legality and ethics of price strategy 286
Unfair trade 286
Price fixing or collusion 286
Price discrimination 286
Predatory pricing 286
Fine-tuning the base price 287
Discounts, allowances, rebates and value pricing 287
Value-based pricing 288
Geographic pricing 288
Special pricing tactics 289
PART 4 THE WORLD OF MARKETING 291
- Global marketing 292
The impact of global marketing 292
Developing a global vision 293
Importance of global marketing 294
The external environment 294
Culture 294
Economic and technological development 296
Political structure 298
Natural resources 301
Global marketing by an organisation 301
Exporting 301
Licensing 302
Contract manufacturing 302
Joint venture 302
Direct foreign investment 302
The global marketing mix 303
Product and promotion 303
Pricing 305
Place (distribution) 305
Effect of the Internet on global marketing 307
Social media 307
- Marketing strategy and planning 308
Why plan? 308
Developing a mission statement and objectives 309
Levels of strategy 309
Corporate social responsibility 310
Sustainability 311
Ethical business decision making 312
Marketing strategic planning 313
Analysis of the marketing situation 316
Identifying competitive advantage 317
Identifying strategic alternatives 318
Developing the marketing plan 322
Marketing objectives 323
Establishing marketing mix components for each
target market 323
Implementation, evaluation and control processes 324
- Marketing and new technology 326
The impact of the changing environment on marketing 326
Sociocultural environment 327
Economic environment 328
Political and legal environment 328
Competitive environment 329
Technological environment 329
The impact of disruptive technologies on
marketing practice and strategy 330
Crowdsourcing 332
Technology and entrepreneurship 332
Operating systems and mobile technology 332
Market research and technology 333
The impact of new technologies and media on
business-to-business (B2B), business-to-consumer
(B2C) and peer-to-peer (P2P) markets 334
B2B markets 334
B2C markets 334
P2P markets 334
Emerging issues affecting marketing 335
Virtual worlds and virtual reality 335
Value and co-creation 338
Analytics and metrics 338
Artificial intelligence (AI) 339
Conclusion 339
Endnotes 341
Index 350