Essentials of Marketing: A Marketing Strategy Planning Approach, 18th Edition
Joseph P. Cannon, William D. Perreault Jr. and E. Jerome McCarthy
Contents
CHAPTER ONE
Marketing’s Value to Consumers, Firms, and Society 2
Marketing—What’s It All About? 4
Marketing Is Important to You 6
How Should We Define Marketing? 7
Macro-Marketing 10
The Role of Marketing in Economic Systems 13
Marketing’s Role Has Changed a Lot over the Years 16
What Does the Marketing Concept Mean? 17
The Marketing Concept and Customer Value 20
The Marketing Concept, Social Responsibility, and Marketing Ethics 24
Learning Objective Review 29
Key Terms 30
Questions and Problems 30
Suggested Cases 31
Marketing Analytics: Data to Knowledge 31
CHAPTER TWO
Marketing Strategy Planning 32
The Management Job in Marketing 34
What Is a Marketing Strategy? 35
Selecting a Market-Oriented Strategy Is Target
Marketing 36
Developing Marketing Mixes for Target
Markets 37
The Marketing Plan Guides Implementation and
Control 42
Recognizing Customer Lifetime Value and
Customer Equity 45
What Are Attractive Opportunities? 48
Marketing Strategy Planning Process Highlights
Opportunities 49
Types of Opportunities to Pursue 54
International Opportunities Should Be
Considered 55
Learning Objective Review 57
Key Terms 58
Questions and Problems 58
Marketing Planning for Hillside Veterinary Clinic 59
Suggested Cases 59
Marketing Analytics: Data to Knowledge 59
CHAPTER THREE
Evaluating Opportunities in the
Changing Market Environment 60
The Market Environment 63
Objectives Should Set Firm’s Course 64
Company Resources May Limit Search for
Opportunities 66
Analyzing Competitors and the Competitive
Environment 67
The Economic Environment 71
The Technological Environment 72
The Political Environment 75
The Legal Environment 76
The Cultural and Social Environment 77
Screening Criteria Narrow Down Strategies 85
Learning Objectives Review 89
Key Terms 90
Questions and Problems 90
Marketing Planning for Hillside Veterinary Clinic 91
Suggested Cases 91
Marketing Analytics: Data to Knowledge 91
CHAPTER FOUR
Focusing Marketing Strategy with
Segmentation and Positioning 92
Search for Opportunities Can Begin
by Understanding Markets 94
Naming Product-Markets and Generic
Markets 97
Market Segmentation Defines Possible Target
Markets 100
Target Marketers Aim at Specific Targets 104
What Dimensions Are Used to Segment
Markets? 107
A Best Practice Approach to Segmenting
Product-Markets 110
More Sophisticated Techniques May Help
in Segmenting and Targeting 115
Differentiation and Positioning Take the
Customer Point of View 117
Learning Objectives Review 121
Key Terms 122
Questions and Problems 122
Marketing Planning for Hillside Veterinary Clinic 123
Suggested Cases 123
Marketing Analytics: Data to Knowledge 123
CHAPTER FIVE
Final Consumers and Their Buying
Behavior 124
Consumer Behavior: Why Do They Buy What
They Buy? 126
Economic Needs Affect Most Buying
Decisions 128
Psychological Influences within an Individual 130
Social Influences Affect Consumer Behavior 139
Culture, Ethnicity, and Consumer Behavior 142
Individuals Are Affected by the Purchase
Situation 145
The Consumer Decision Process 147
Learning Objectives Review 152
Key Terms 153
Questions and Problems 153
Marketing Planning for Hillside Veterinary Clinic 154
Suggested Cases 154
Marketing Analytics: Data to Knowledge 154
CHAPTER SIX
Business and Organizational
Customers and Their Buying
Behavior 156
Business and Organizational Customers—A Big
Opportunity 158
Organizational Customers Are Different 160
A Model of Business and Organizational
Buying 166
Step 1: Defining the Problem 167
Step 2: The Decision-Making Process 168
Step 3: Managing Buyer–Seller Relationships in
Business Markets 172
Manufacturers Are Important Customers 177
Producers of Services—Smaller and More
Spread Out 179
Retailers and Wholesalers Buy for Their
Customers 180
The Government Market 182
Learning Objectives Review 183
Key Terms 184
Questions and Problems 184
Marketing Planning for Hillside Veterinary Clinic 185
Suggested Cases 185
Marketing Analytics: Data to Knowledge 185
CHAPTER SEVEN
Improving Decisions with Marketing
Information 186
Effective Marketing Requires Good
Information 188
Changes Are Under Way in Marketing
Information Systems 190
The Scientific Method and Marketing
Research 198
Five-Step Approach to Marketing Research 199
Step 1: Defining the Problem 200
Step 2: Analyzing the Situation 201
Step 3: Getting Problem-Specific Data 205
Step 4: Interpreting the Data 213
Step 5: Solving the Problem 216
Learning Objectives Review 217
Key Terms 217
Questions and Problems 217
Marketing Planning for Hillside Veterinary Clinic 218
Suggested Cases 218
Marketing Analytics: Data to Knowledge 218
CHAPTER EIGHT
Elements of Product Planning for
Goods and Services 220
The Product Area Involves Many Strategy
Decisions 222
What Is a Product? 223
Differences between Goods and Services 226
Technology and Intelligent Agents Add Value to
Products 229
Branding Is a Strategy Decision 232
Achieving Brand Familiarity 234
Branding Decisions: What Kind? Who
Brands? 238
Packaging Promotes, Protects, and
Enhances 241
Product Classes Help Plan Marketing
Strategies 243
Consumer Product Classes 244
Business Products Are Different 247
Business Product Classes—How They Are
Defined 247
Learning Objectives Review 250
Key Terms 251
Questions and Problems 251
Marketing Planning for Hillside Veterinary Clinic 252
Suggested Cases 252
Marketing Analytics: Data to Knowledge 252
CHAPTER NINE
Product Management and
New-Product Development 254
Innovation and Market Changes Create
Opportunities 256
Managing Products over Their Life Cycles 257
Product Life Cycles Vary in Length 261
Planning for Different Stages of the Product Life
Cycle 263
New-Product Planning 267
An Organized New-Product Development
Process Is Critical 269
New-Product Development: A Total Company
Effort 278
Need for Product Managers 280
Managing Product Quality 281
Learning Objectives Review 284
Key Terms 284
Questions and Problems 284
Marketing Planning for Hillside Veterinary Clinic 285
Suggested Cases 285
Marketing Analytics: Data to Knowledge 285
CHAPTER TEN
Place and Development of Channel
Systems 286
Marketing Strategy Planning Decisions for
Place 288
Place Decisions Are Guided by “Ideal” Place
Objectives 289
Channel System May Be Direct or Indirect 291
Channel Specialists May Reduce Discrepancies
and Separations 296
Channel Relationships Must Be Managed 300
Vertical Marketing Systems Focus on Final
Customers 304
The Best Channel System Should
Achieve Ideal Market Exposure 305
Multichannel Distribution and Reverse
Channels 308
Entering International Markets 312
Learning Objectives Review 314
Key Terms 315
Questions and Problems 315
Marketing Planning for Hillside Veterinary Clinic 316
Suggested Cases 316
Marketing Analytics: Data to Knowledge 316
CHAPTER ELEVEN
Distribution Customer Service and
Logistics 318
Physical Distribution Gets It to Customers 320
Physical Distribution Customer Service 321
Physical Distribution Concept Focuses on the
Whole Distribution System 325
Coordinating Logistics Activities among
Firms 327
The Transporting Function Adds Value to a
Marketing Strategy 330
Which Transporting Alternative Is Best? 332
The Storing Function and Marketing
Strategy 335
Specialized Storing Facilities May Be
Required 337
The Distribution Center—A Different Kind of
Warehouse 338
Disaster Relief—Logistics Saves Lives 339
Learning Objectives Review 341
Key Terms 341
Questions and Problems 341
Marketing Planning for Hillside Veterinary Clinic 342
Suggested Cases 342
Marketing Analytics: Data to Knowledge 343
CHAPTER TWELVE
Retailers, Wholesalers, and Their
Strategy Planning 344
Retailers and Wholesalers Plan Their Own
Strategies 346
The Nature of Retailing 348
Planning a Retailer’s Strategy 349
Single- and Limited-Line Retailers
Specialize in Similar Products 352
Evolution of Mass-Merchandising Retailers 355
Retailing and the Internet 359
Why Retailers Evolve and Change 365
Differences in Retailing in Different Nations 368
Wholesalers Add Value in Different Ways 369
Merchant Wholesalers Are the Most
Numerous 370
Agents Are Strong on Selling 373
Learning Objectives Review 375
Key Terms 375
Questions and Problems 376
Marketing Planning for Hillside Veterinary Clinic 376
Suggested Cases 377
Marketing Analytics: Data to Knowledge 377
CHAPTER THIRTEEN
Promotion—Introduction to
Integrated Marketing
Communications 378
Promotion Communicates to Target Markets 380
Several Promotion Methods Are Available 382
Someone Must Plan, Integrate, and Manage
the Promotion Blend 383
Which Methods to Use Depends on Promotion
Objectives 385
Promotion Requires Effective
Communication 389
When Customers Initiate the Communication
Process 394
How Typical Promotion Plans Are Blended and
Integrated 397
Adoption Processes Can Guide Promotion
Planning 400
Promotion Blends Vary over the Product Life
Cycle 402
Setting the Promotion Budget 404
Learning Objectives Review 406
Key Terms 407
Questions and Problems 407
Marketing Planning for Hillside Veterinary Clinic 408
Suggested Cases 408
Marketing Analytics: Data to Knowledge 408
CHAPTER FOURTEEN
Personal Selling and Customer
Service 410
The Importance and Role of Personal Selling 412
What Kinds of Personal Selling Are Needed? 415
Order Getters Develop New Business
Relationships 415
Order Takers Nurture Relationships
to Keep the Business Coming 417
Supporting Sales Force Informs and Promotes in
the Channel 418
Customer Service Promotes the Next
Purchase 419
The Right Structure Helps Assign
Responsibility 422
Information Technology Provides Tools to Do the
Job 425
Sound Selection and Training to Build a Sales
Force 428
Compensating and Motivating Salespeople 430
Personal Selling Techniques—Prospecting and
Presenting 433
Real Sales Jobs 437
Learning Objectives Review 439
Key Terms 440
Questions and Problems 440
Marketing Planning for Hillside Veterinary Clinic 441
Suggested Cases 441
Marketing Analytics: Data to Knowledge 441
CHAPTER FIFTEEN
Advertising and Sales
Promotion 442
Advertising, Sales Promotion, and Marketing
Strategy Planning 444
Advertising Is Big Business 446
Advertising Objectives Are a Strategy
Decision 448
Objectives Determine the Kinds of Advertising
Needed 449
Choosing the “Best” Medium—How to Deliver
the Message 452
Digital and Mobile Advertising 456
Planning the “Best” Message—What to
Communicate 462
Measuring Advertising Effectiveness Is Not
Easy 466
Avoid Unfair Advertising 467
Sales Promotion—Do Something Different to
Stimulate Change 469
Managing Sales Promotion 473
Learning Objectives Review 474
Key Terms 475
Questions and Problems 475
Marketing Planning for Hillside Veterinary Clinic 476
Suggested Cases 476
Marketing Analytics: Data to Knowledge 476
CHAPTER SIXTHEEN
Publicity: Promotion Using Earned
Media, Owned Media, and Social
Media 478
Publicity, the Promotion Blend, and
Marketing Strategy Planning 481
Paid, Earned, and Owned Media 482
Customers Obtain Information from Search,
Pass-Along, and Experience 486
Create Owned Media Content Your Customers
Can Use 489
Earned Media from Public Relations and the
Press 495
Earned Media from Customer Advocacy 497
Social Media Differs from Traditional Media 499
Major Social Media Platforms 501
Strategy Planning for Social Media 509
Software to Manage, Measure, and Automate
Online Media 513
Learning Objectives Review 516
Key Terms 516
Questions and Problems 516
Marketing Planning for Hillside Veterinary Clinic 517
Suggested Cases 517
Marketing Analytics: Data to Knowledge 517
CHAPTER SEVENTEEN
Pricing Objectives and Policies 518
Price Has Many Strategy Dimensions 520
Objectives Should Guide Strategy Planning for
Price 524
Profit-Oriented Objectives 524
Sales-Oriented Objectives 526
Status Quo–Oriented Objectives 527
Most Firms Set Specific Pricing Policies—To
Reach Objectives 528
Price Flexibility Policies 528
Price-Level Policies and the Product Life
Cycle 532
Discount Policies—Reductions from List
Prices 534
Allowance Policies—Off List Prices 536
Pricing Policies for Price Reductions,
Financing, and Transportation 537
Pricing Policies Combine to Impact Customer
Value 542
Legality of Pricing Policies 545
Learning Objectives Review 548
Key Terms 549
Questions and Problems 549
Marketing Planning for Hillside Veterinary Clinic 550
Suggested Cases 550
Marketing Analytics: Data to Knowledge 550
CHAPTER EIGHTEEN
Price Setting in the Business
World 552
Price Setting Is a Key Strategy Decision 554
Some Firms Just Use Markups 555
Average-Cost Pricing Is Common and Can Be
Dangerous 559
Marketing Managers Must Consider Various
Kinds of Costs 560
Break-Even Analysis Can Evaluate Possible
Prices 563
Marginal Analysis Considers Both Costs and
Demand 566
Additional Demand-Oriented Approaches for
Setting Prices 568
Pricing a Full Line 575
Learning Objectives Review 577
Key Terms 577
Questions and Problems 578
Marketing Planning for Hillside Veterinary Clinic 578
Suggested Cases 579
Marketing Analytics: Data to Knowledge 579
CHAPTER NINETEEN
Appraisal, Review, and Reflection of
Marketing in the 21st Century 580
Appraisal, Review, and Reflection 582
How Should Marketing Be Evaluated? 583
Can Consumer Satisfaction Be Measured? 585
Micro-Marketing Often Does Cost Too Much 586
Macro-Marketing Does Not Cost Too Much 588
Marketing Strategy Planning Process
Requires Logic and Creativity 591
The Marketing Plan Brings All the Details
Together 594
Reflecting on the Future of Marketing: Is
Marketing Evil? 597
Reflecting on the Future of Marketing: Is
Marketing Good? 600
Learning Objectives Review 607
Key Terms 608
Questions and Problems 608
Marketing Planning for Hillside Veterinary Clinic 609
Suggested Cases 609
BONUS CHAPTER 1
(FULL CHAPTER ONLINE)
Bonus Chapter 1: Implementing
and Controlling Marketing Plans:
Metrics and Analysis 611
BONUS CHAPTER 2
(FULL CHAPTER ONLINE)
Bonus Chapter 2: Managing
Marketing’s Link with
Other Functional Areas 612
APPENDIX A (FULL APPENDIX ONLINE)
Economics Fundamentals 613
APPENDIX B (FULL APPENDIX ONLINE)
Marketing Arithmetic 614
APPENDIX C (FULL APPENDIX ONLINE)
Career Planning in Marketing 615
APPENDIX D
Hillside Veterinary Clinic Marketing
Plan 616