basic marketing - gbv
TRANSCRIPT
Basic MarketingA Marketing Strategy Planning Approach
William D. Perreault, Jr., Ph.D.UNIVERSITY OF NORTH CAROLINA
Joseph P. Cannon, Ph.D.COLORADO STATE UNIVERSITY
E. Jerome McCarthy, Ph.D.MICHIGAN STATE UNIVERSITY
McGraw-HillIrwin
Boston Burr Ridge, IL Dubuque, IA New York San Francisco St. LouisBangkok Bogota Caracas Kuala Lumpur Lisbon London Madrid Mexico CityMilan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto
CHAPTER ONE
Marketing's Value to Consumers,Firms, and Society 2
Marketing—What's It All About? 4
Marketing Is Important to You 5 . *•
How Should We Define Marketing? 6 '
Macro-Marketing 8
The Role of Marketing in Economic Systems 11
Marketing's Role Has Changed a Lot over the Years 15
What Does the Marketing Concept Mean? 16
Adoption of the Marketing Concept Has Not Been Easy or
Universal 17
The Marketing Concept and Customer Value 19
The Marketing Concept Applies in Nonprofit Organizations 11
The Marketing Concept, Social Responsibility, and MarketingEthics 13
Conclusion 27Key Terms 27Questions and Problems 28Suggested Cases 28Computer-Aided Problem 28
CHAPTER TWO
Marketing Strategy Planning 30
The Management Job in Marketing 31
What Is a Marketing Strategy? 33
Selecting a Market-Oriented Strategy Is Target
Marketing 34
Developing Marketing Mixes for Target Markets 35
The Marketing Plan Is a Guide to Implementation and
Control 41
The Marketing Program Should Build Customer
Equity 43
The Importance of Marketing Strategy Planning 45
Creative Strategy Planning Needed for Survival 46
What Are Attractive Opportunities? 47
Marketing Strategy Planning Process Highlights
Opportunities 48Types of Opportunities to Pursue 51International Opportunities Should Be
Considered 53
Conclusion 54Key Terms 55Questions and Problems 55Creating Marketing Plans 56Suggested Cases 56Computer-Aided Problem 56
CHAPTER THREE
Evaluating Opportunities in theChanging Marketing Environment 58
The Marketing Environment 60
Objectives Should Set Firm's Course 61
Company Resources May Limit Search for
Opportunities 64
Analyzing Competitors and the Competitive
Environment 65
The Economic Environment 69
The Technological Environment 71
The Political Environment 71
The Legal Environment 74
The Cultural and Social Environment 77
Using Screening Criteria to Narrow Down to
Strategies 78
Planning Grids Help Evaluate a Portfolio of
Opportunities 82
Multiproduct Firms Have a Difficult
Strategy-Planning Job 83
Evaluating Opportunities in InternationalMarkets 84
Conclusion 85Key Terms 86Questions and Problems 86Creating Marketing Plans 87Suggested Cases 87Computer-Aided Problem 87
CHAPTER FOUR
Focusing Marketing Strategy withSegmentation and Positioning 88
Search for Opportunities Can Begin by UnderstandingMarkets 90
Naming Product-Markets and Generic Markets 93
Market Segmentation Defines Possible TarketMarkets 95
What Dimensions Are Used to Segment Markets? 100
A Best Practice Approach to Segmenting Products-Markets 105
More Sophisticated Techniques May Help inSegmenting 109
Differentiation and Positioning Take the CustomerPoint of View HI
Conclusion 115Key Terms 115
Questions and Problem 115Creating Marketing Plans 116Suggested Cases 116Computer-Aided Problem 116
CHAPTER FIVE
Demographic Dimensions ofGlobal Consumer Markets 118
Target Marketers Focus on the Customer 120
People with Money Make Markets 121
Population Trends in the U.S. Consumer Market 119
Income Dimensions of the U.S. Market 135
Spending Varies with Income and Other Demographic
Dimensions 138
Ethnic Dimensions of the U.S. Market 141
Conclusion 144Key Terms 144Questions and Problems 144Creating Marketing Plans 145Suggested Cases 145Computer-Aided Problem 145
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CHAPTER SIX
Final Consumers andTheir Buying Behavior 146
Consumer Behavior: Why Do They Buy WhatThey Buy? 148
Economic Needs Affect Most Buying Decisions 149
Psychological Influences within an Individual 150
Social Influences Affect Consumer Behavior 160
Individuals Are Affected by the Purchase
Situation 163
The Consumer Decision Process 164
Consumer Behavior in International Markets 167
Conclusion 169Key Terms 169Questions and Problems 169Creating Marketing Plans 170Suggested Cases 170Computer-Aided Problem 170
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CHAPTER SEVEN
Business and Organizational Customersand Their Buying Behavior 172
Business and Organizational Customers—A BigOpportunity 174
Organizational Customers Are Different 175
Many Different People May Influence a Decision 177
Organizational Buyers Are Problem Solvers 181
Buyer-Seller Relationships in Business Markets 186
Manufacturers Are Important Customers 190
Producers of Services—Smaller and More Spread
Out 193
Retailers and Wholesalers Buy for TheirCustomers 194
The Government Market 195
Conclusion 197Key Terms 197Questions and Problems 197Creating Marketing Plans 198Suggested Cases 198Computer-Aided Problem 198
CHAPTER EIGHT
Improving Decisions with MarketingInformation 200
Effective Marketing Requires Good Information 101
Changes Are Under Way in Marketing Information
Systems 203
The Scientific Method and Marketing Research 107
Five-Step Approach to Marketing Research 208
Defining the Problem—Step 1 108
Analyzing the Situation—Step 2 209
Getting Problem-Specific Data—Step 3 111
Interpreting the Data—Step 4 110
Solving the Problem—Step 5 223
International Marketing Research 224
Conclusion 225Key Terms 226Questions and Problems 226Creating Marketing Plans 227Suggested Cases 227Computer-Aided Problem 227
CHAPTER NINE
Elements of Product Planningfor Goods and Services 228
The Product Area Involves Many StrategyDecisions 130
What Is a Product? 231
Differences in Goods and Services 133
Whole Product Lines Must Be Developed Too 235
Branding Is a Strategy Decision 235
Conditions Favorable to Branding 236
Achieving Brand Familiarity Is Not Easy 137
Protecting Brand Names and Trademarks 240
What Kind of Brand to Use? 140
Who Should Do the Branding? 141
The Strategic Importance of Packaging 141
What Is Socially Responsible Packaging? 144
Warranty Policies Are a Part of Strategy Planning 246
Product Classes Help Plan Marketing Strategies 247
Consumer Product Classes 147
Business Products Are Different 250
Business Product Classes—How They Are
Defined 251
Conclusion 254Key Terms 254Questions and Problems 254Creating Marketing Plans 256Suggested Cases 256Computer-Aided Problem 256
CHAPTER TEN
Product Management and New-Product Development 258
Innovation and Market Changes CreateOpportunities 260
Managing Products Over Their Life Cycles 261
Product Life Cycles Should Be Related to Specific
Markets 263
Product Life Cycles Vary in Length 264
Planning for Different Stages of the Product LifeCycle 267
New-Product Planning 171
An Organized New-Product Development Process IsCritical 171
New-Product Development: A Total Company
Effort 178
Need for Product Managers 280
Managing Product Quality 181
Conclusion 285Key Terms 285Questions and Problems 286Creating Marketing Plans 286Suggested Cases 286Computer-Aided Problem 286
CHAPTER ELEVEN
Place and Development of ChannelSystems 288
Marketing Strategy Planning Decisions for Place 291
Place Decisions Are Guided by "Ideal" Place
Objectives 292
Channel System May Be Direct or Indirect 293
Channel Specialists May Reduce Discrepancies and
Separations 297
Channel Relationship Must Be Managed 298
Vertical Marketing Systems Focus on Final
Customers 301
The Best Channel System Should Achieve Ideal
Market Exposure 304
Channel Systems Can Be Complex 307
Entering International Markets 309
Conclusion 312Key Terms 312Questions and Problems 312Creating Marketing Plans 313Suggested Cases 313Computer-Aided Problem 313
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CHAPTER TWELVE
Distribution Customer Serviceand Logistics 314
PhysicakDistribution Gets It to Customers 316
Physical Distribution Customer Service 317
Physical Distribution Concept Focuses on the Whole
Distribution System 319
Coordinating Logistics Activities among Firms 322
The Transporting Function Adds Value to a Marketing
Strategy 316
Which Transporting Alternative Is Best? 327
The Storing Function and Marketing Strategy 331
Specialized Storing Facilities May Be Required 333
The Distribution Center—A Different Kind ofWarehouse 335
Conclusion 335Key Terms 336Questions and Problems 336Creating Marketing Plans 337Suggested Cases 337Computer-Aided Problem 337
CHAPTERTHIRTEEN
Retailers, Wholesalers, and TheirStrategy Planning 338
Retailers and Wholesalers Plan Their OwnStrategies 340
The Nature of Retailing 341
Planning a Retailer's Strategy 342
Conventional Retailers—Try to Avoid PriceCompetition 344
Expand Assortment and Service—To Compete at aHigh Price 345
Evolution of Mass-Merchandising Retailers 345
Some Retailers Focus on Added Convenience 348
Retailing on the Internet 349
Why Retailers Evolve and Change 352
Retailer Size and Profits 354
Differences in Retailing in Different Nations 355
What Is a Wholesaler? 356
Wholesaling Is Changing with the Times 356
Wholesalers Add Value in Different Ways 358
Merchant Wholesalers Are the Most Numerous 359
Agents Are Strong on Selling 361
What Will Happen to Retailers and Wholesalersin the Future? 363
Conclusion 363Key Terms 364Questions and Problems 364Creating Marketing Plans 365Suggested Cases 365Computer-Aided Problem 365
CHAPTER FOURTEEN
Promotion—Introduction to IntegratedMarketing Communications 366
Promotion Communicates to Target Markets 368
Several Promotion Methods Are Available 369
Someone Must Plan, Integrate, and Manage the
Promotion Blend 371
Which Methods to Use Depends on PromotionObjectives 374
Promotion Requires Effective Communication 376
Integrated Direct-Response Promotion Is Very
Targeted 378
The Customer May Initiate the Communication
Process 379
How Typical Promotion Plans Are Blended and
Integrated 382
Adoption Processes Can Guide Promotion
Planning 385
Promotion Blends Vary Over the Life Cycle 388
Setting the Promotion Budget 390
CHAPTER FIFTEEN
Personal Selling andCustomer Service 394
The Importance and Role of Personal Selling 396
What Kinds of Personal Selling Are Needed? 399
Order Getters Develop New Business
Relationships 399
Order Takers Nurture Relationships to Keep theBusiness Coming 400
Supporting Sales Force Informs and Promotes in theChannel 401
Customer Service Promotes the Next Purchase 403
The Right Structure Helps Assign Responsibility 404
Information Technology Provides Tools to Do
the Job 409
Sound Selection and Training to Build a Sales
Force 410
Compensating and Motivating Salespeople 412
Personal Selling Techniques—Prospecting andPresenting 415
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Conclusion 391Key Terms 392Questions and Problems 392Creating Marketing Plans 393Suggested Cases 393Computer-Aided Problem 393
Conclusion 419Key Terms 420Questions and Problems 420Creating Marketing Plans 421Suggested Cases 421Computer-Aided Problem 421
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CHAPTER SIXTEEN CHAPTER SEVENTEEN
Advertising and Sales Promotion 422 Pricing Objectives and Policies 454
Advertising, Sales Promotion, and Marketing StrategyPlanning 424
Advertising Is Big Business 426
Advertising Objectives Are a Strategy Decision 418
Objectives Determine the Kinds of Advertising
Needed 429
Coordinated Advertising Efforts with Cooperative
Relationships 431
Choosing the "Best" Medium—How to Deliver the
Message 431
Advertising on the Internet—New Opportunities and
New Challenges 435
Planning the "Best" Message—What to
Communicate 438Advertising Agencies Often Do the Work 441
Measuring Advertising Effectiveness Is Not Easy 444
How to Avoid Unfair Advertising 445
Sales Promotion—Do Something Different to
Stimulate Change 446
Problems in Managing Sales Promotion 448
Different Types of Sales Promotion for DifferentTargets 449
Conclusion 450Key Terms 451Questions and Problems 451Creating Marketing Plans 452Suggested Cases 452Computer-Aided Problem 452
Price Has Many Strategy Dimensions 456
Objectives Should Guide Strategy Planning
for Price 458
Profit-Oriented Objectives 459
Sales-Oriented Objectives 460
Status Quo Pricing Objectives 461
Most Firms Set Specific Pricing Policies—To Reach
Objectives 461
Price Flexibility Policies 462
Price-Level Policies—Over the Product
Life Cycle 464
Most Price Structures Are Built Around List Prices 469
Discount Policies—Reductions from List Prices 469
Allowance Policies—Off List Prices 471
Some Customers Get Something Extra 472
List Price May Depend on Geographic Pricing
Policies 473
Pricing Policies Combine to Impact Customer
Value 474
Legality of Pricing Policies 478
Conclusion 481Key Terms 482Questions and Problems 482Creating Marketing Plans 483Suggested Cases 483Computer-Aided Problem 483
CHAPTER EIGHTEEN
Price Setting in theBusiness World 484
Price Setting Is a Key Strategy Decision 487
Some Firms Just Use Markups 487
Average-Cost Pricing Is Common and Can Be
Dangerous 491
Marketing Managers Must Consider Various Kinds
of Costs 492
Some Firms Add a Target Return to Cost 496
Break-Even Analysis Can Evaluate Possible Prices 496
Marginal Analysis Considers Both Costs and
Demand 498
Demand-Oriented Approaches for Setting Prices 502
Pricing a Full Line 509
Bid Pricing and Negotiated Pricing Depend HeavilyonCosts 510
Conclusion 512Key Terms 512Questions and Problems 512Creating Marketing Plans 513Suggested Cases 513Computer-Aided Problem 513
CHAPTER NINETEEN
Implementing and ControllingMarketing Plans: Evolutionand Revolution 514
Good Plans Set the Framework for Implementationand Control 516
Speed Up Information for Better Implementation and
Control 518
Effective Implementation Means That Plans Work
as Intended 519Control Provides Feedback to Improve Plans and
Implementation 522
Sales Analysis Shows What's Happening 523
Performance Analysis Looks for Differences 524
Performance Indexes Simplify Human Analysis 526
A Series of Performance Analyses May Find the
Real Problem 527
Marketing Cost Analysis—Controlling Costs Too 530
Planning and Control Combined 535
The Marketing Audit 536
Conclusion 537Key Terms 537Questions and Problems 537Creating Marketing Plans 538Suggested Cases 538Computer-Aided Problem 539
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CHAPTER TWENTY
Managing Marketing's Link withOther Functional Areas 540
Marketing in the Broader Context 542
The Finance Function: Money to Implement
Marketing Plans 543
Production Must Be Coordinated with the MarketingPlan 549
Accounting Data Can Help in Understanding Costsand Profit 555
People Put Plans into Action 559
Conclusion 561Key Terms 562Questions and Problems 562Creating Marketing Plans 563 /Suggested Cases 563
CHAPTER TWENTY-ONE
Ethical Marketing in a Consumer-Oriented World: Appraisal andChallenges 564
How Should Marketing Be Evaluated? 566
Can Consumer Satisfaction Be Measured? 568
Micro-Marketing Often Does Cost Too Much 569
Macro-Marketing Does Not Cost Too Much 571
Marketing Strategy Planning Process Requires Logic
and Creativity 573
The Marketing Plan Brings All the Details
Together 576Challenges Facing Marketers 577
How Far Should the Marketing Concept Go? 586
Conclusion 586Questions and Problems 587Creating Marketing Planss 587Suggested Cases 587
Appendix A EconomicsFundamentals 588
Appendix B Marketing Arithmetic 601
Appendix C Career Planning inMarketing 618
VIDEO CASES 632
1. Chick-fil-A: "Eat Mor Chickin" (Excepton Sunday) 633
2. Bass Pro Shops (Outdoor World) 634
3. Toyota Prius: The Power of Excellence in ProductInnovation and Marketing 635
4. Potbelly Sandwich Works Grows through"Quirky" Marketing 637
5. Suburban Regional Shopping Malls: Can theMagic Be Restored? 638
6. Girl Scouts 641
7. The GM HUMMER: Brand Equity, Positioning, andDevelopment 643
8. Segway Finds Niche Markets for Its HumanTransporter Technology 644
CASES 647
1. McDonald's "Seniors" Restaurant 648
2. Harvest Farm Foods, Inc. 648
3. MANU Soccer Academy 649
4. Trusty Technology Services 650
5. PolyTech Products 651
6. Global Steel Company 652
7. Waituiwa Lodge 653
8. Lombardi's Italian Grill 654
9. Sweetest Dreams Inn 655
10. Taffe's Ice Land 656
11. The Next Step 657
12. DrRay.com—Custom Vitamins andSupplements 658
13. File-It Supplies, Inc. 659
14. Express Multimedia 660
15. The Trujillo Group 661
16. Bunyan Lumber 662
17. Oh So Pure Water, Inc. 664
18. Whisper Valley Volunteer Fire Department 665
19. OurPerfectWedding.com 666
20. Recreation Supplies Unlimited 668
21. Advanced Materials, Inc. 669
22. Bright Light Innovations: The Starlight Stove 670
23. West Side Furniture 671
24. Lone Star Wire, Inc, 671
25. United Plastics Mfg., Inc. 673
26. Best Way Canning, Inc. 674
27. Superior Molding, Inc. 675
28. Precision Cutting Tools, Inc. 676
29. Specialized Castings, Inc. 677
30. Eden Prairie Mills, Ltd . 678
31. At-Home Health Services, Inc. 679
32. Lever, Ltd. 681
33. Mulligan & Starling 683
34. Innovative Aluminum Products, Inc. 684
35. Mama Rossi's Pizza 686
36. Sorenson Builders 688
Computer-Aided Problems 690
Notes 695
Illustration Credits 755
Name Index l-i
Company Index l-io
Subject Index 1-14
Glossary G-i
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