Marketing, 16th Edition PDF by Roger A Kerin and Steven W Hartley


Marketing, Sixteenth Edition

By Roger A. Kerin and Steven W. Hartley

Marketing, 16th Edition PDF 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


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


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.


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


D-5 Groupon: Helping Consumers with Purchase Decisions

D-6 Motetronix Technology: Marketing Smart Dust

D-7 Callaway Golf: The Global Challenge


D-8 HOM Furniture: Where Keen Observation Pays

D-9 Lawn Mowers: Segmentation Challenges


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

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