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Preface xxix
PART 1
Chapter 1
Chapter 2
AR 2
Chapter 3
Chapter 4
ART
Chapter 5
Chapter 6
Chapter 7
Chapter 8
PART 4
Chapter 9
Chapter 10
Chapter 11
PART 5
Chapter 12
Chapter 13
Chapter 14
PART 6
Chapter 15
Chapter 16
PA T7
Chapter 17
Chapter 18
Chapter 19
Understanding Marketing Management
Defining Marketing for the 21 st Century 3
Developing Marketing Strategies and Plans 33
2
Capturing Marketing Insights 64
Gathering Information and Scanning the Environment 65
Conducting Marketing Research and Forecasting Demand 89
Connecting with Customers 118
Creating Customer Value, Satisfaction, and Loyalty 119
Analyzing Consumer Markets 149
Analyzing Business Markets 181
Identifying Market Segments and Targets 207
Building Strong Brands 234
Creating Brand Equity 235
Crafting the Brand Positioning 267
Dealing with Competition 293
Shaping the Market Offerings 316
Setting Product Strategy 317
Designing and Managing Services 345
Developing Pricing Strategies and Programs 375
Delivering Value 408
Designing and Managing Integrated Marketing 409
Managing Retailing, Wholesaling, and Logistics 441'
Communicating Value 468
Designing and Managing Integrated Marketing Communications 469
Managing Mass Communications: Advertising, Sales Promotions,
Events and Experiences, and Public Relations 497
Managing Personal Communications: Direct and Interactive
Marketing, Word of Mouth, and Personal Selling 531
PARTS
Chapter 20
Chapter 21
Chapter 22
Creating Successful Long-Term Growth 564
Introducing New Market Offerings 565
Tapping into Global Markets 597
Managing a Holistic Marketing Organization 625
Appendix A1
Endnotes E1
Glossary G1
Image Credits C1
Name Index 11
Company, Brand, and Organization Index 13
Subject Index 110
vii
Preface xxix
PART 1
Understanding Marketing Management 2
Chapter 1 Defining Marketing for the 21st Century 3
The Importance of Marketing 4
The Scope of Marketing 5
What Is Marketing? 5
What Is Marketed? 6
Who Markets? 7
Marketing in Practice 10
Core Marketing Concepts 12
Needs, Wants, and Demands 12
Target Markets, Positioning, and Segmentation 13
Offerings and Brands 13
Value and Satisfaction 13
Marketing Channels 14
Supply Chain 14
Competition 14
Marketing Environment 14
The New Marketing Realities 15
Major Societal Forces 15
New Consumer Capabilities 16
New Company Capabilities 17
Company Orientation toward the Marketplace 18
The Production Concept 18
The Product Concept 18
The Selling Concept 19
The Marketing Concept 19
The Holistic Marketing Concept 19
MARKETING MEMO Marketing Right and Wrong
20
Relationship Marketing 20
BREAKTHROUGH MARKETING Nike 21
Integrated Marketing 22
Internal Marketing 24
Performance Marketing 26
Marketing Management Tasks 28
Developing Marketing Strategies and Plans 28
Capturing Marketing Insights 28
MARKETING MEMO Marketers' Frequently Asked
Questions
29
Connecting with Customers 29
Building Strong Brands 29
ix
E
Shaping the Market Offerings 29
Delivering Value 29
Communicating Value 30
Creating Long-Term Growth 30
Summary 30
Applications 31
Chapter 2 Developing Marketing Strategies and Plans 33
Marketing and Customer Value 34
The Value Delivery Process 34
The Value Chain 35
Core Competencies 36
A Holistic Marketing Orientation and Customer Value 38
The Central Role of Strategic Planning 39
BREAKTHROUGH MARKETING Intel 40
Corporate and Division Strategic Planning 41
Defining the Corporate Mission 41
Establishing Strategic Business Units 43
Assigning Resources to Each SBU25 44
Assessing Growth Opportunities 44
Organization and Organizational Culture 47
Marketing Innovation 47
Business Unit Strategic Planning 48
The Business Mission 48
SWOT Analysis 48
MARKETING INSIGHT Creating Innovative Marketing 49
Goal Formulation 52
MARKETI
MEMO Checklist for Performing
StrengthslWeaknesses Analysis
53
Strategic Formulation 53
Program Formulation and tmplementation 55
MARKETING INSIGHT Marketing's Contribution to
Shareholder Value 56
Feedback and Control 56
Product Planning: The Nature and Contents of a Marketing
Plan 56
MARKETING MEMO Marketing Plan Criteria 57
Summary 63
Applications 63
;.
PART 2
Capturing Marketing Insights 64
Chapter 3 Gathering Information and Scanning the Environment 65
Components of a Modern Marketing Information System 66
Internal Records and Marketing Intelligence 67
The Order-to-Payment Cycle 67
Sales Information Systems 68
Databases, Data Warehousing, and Data Mining 68
The Markehng Intelligence System 69
MARKETING INSIGHT The Big Dig 70
MARKETING MEMO Clicking on the Competition 72
Analyzing the Macroenvironment 72
Needs and Trends 72
MARKET NG MEMO Trends Shaping the Business
Landscape 73
Identifying the Major Forces 74
BREAKTHROUGH MARKETING Google 75
The Demographic Environment 75
Worldwide Population Growth 75
Population Age Mix 76
MARKETING INSIGHT Friends for Life 76
Ethnic and Other Markets 77
Educational Groups 78
Household Patterns 78
Geographical Shifts in Population 78
Other Major Macroenvironments 79
Economic Environment 79
Social-Cultural Environment 80
Natural Environment 82
MARKETING INSIGHT Green Marketing 83
Technological Environment 84
Political-Legal Environment 86
Summary 87
Applications 87
Chapter 4 Conducting Marketing Research and Forecasting Demand 89
The Marketing Research System 90
The Marketing Research Process 9~
Step 1: Define the Problem, the Decision Alternatives, and the
Research Objectives 91
Step 2: Develop the Research Plan 92
xi
MARKETING INSIGHT Conducting Informative Focus
Groups 95
MARKETING MEMO Questionnaire Dos and Don'ts 96
MARKETING INSIGHT Getting into Consumers' Heads with
Qualitative Research 98
MARKETING INSIGHT Understanding Brain Science 99
Step 3: Collect the Information 101
MARKETING MEMO Pros and Cons of Online Research 102
Step 4: Analyze the Information 102
Step 5: Present the Findings 103
Step 6: Make the Decision 103
Overcoming Barriers to the Use of Marketing Research 103
BREAKTHROUGH MARKETING IDEO 105
Measuring Marketing Productivity 106
Marketing Metrics 106
Marketing-Mix Modeling 106
Marketing Dashboards 107
MARKETING INSIGHT Marketing Dashboards to Improve
Effectiveness and Efficiency 108
Forecasting and Demand Measurement 109
The Measures of Market Demand 110
A Vocabulary for Demand Measurement 111
Estimating Current Demand 113
Estimating Future Demand 115
Summary 117
Applications 117
PART 3
Connecting with Customers 118
Chapter 5 Creating Customer Value, Satisfaction, and Loyalty 119
Building Customer Value, Satisfaction, and loyalty 120
Customer Perceived Value 121
Total Customer Satisfaction 124
Monitoring Satisfaction 125
MARKETING INSIGHT Net Promoter and Customer
Satisfaction 127
Product and Service Quality 129
xli
Maximizing Customer Lifetime Value 130
Customer Profitability 130
Measuring Customer Lifetime Value 132
ARKETI G MEMO Calculating Customer Lifetime Value 132
Cultivating Customer Relationships 133
Customer Relationship Management 133
MARKETING INSIGHT Company Response to Customer
Empowerment 134
Attracting and Retaining Customers 136
Building Loyalty 138
MA KETI G MEMO Creating Customer Evangelists 139
Win-Backs 142
Customer Databases and Database Marketing 142
Customer Databases 143
Data Warehouses and Datamining 143
BREAKTHROUGH MARKETING Tesco 144
The Downside of Database Marketing and CRM 145
Summary 147
Applications 147
Chapter 6 Analyzing Consumer Markets 149
What Influences Consumer Behavior? 150
Cultura! Factors 150
MARKETING INSIGHT The Future of American
Hyperconsumption 152
MARKETING INSIGHT Marketing to Cultural Market
Segments 153
Social Factors 154
Personal Factors 156
MARKETING MEMO The Average U.s. Consumer Quiz 157
Key Psychological Processes 160
BREAKTHROUGH MARKETING Ikea 161
Motivation: Freud, Maslow, Herzberg 161
Perception 163
Learning 164
Memory 165
The Buying Decision Process: The Five-Stage Model 167
Problem Reco9nition 168
Information Search 168
xlii
Evaluation of Alternatives 169
Purchase Decision 172
Postpurchase Behavior 173
Other Theories of Consumer Decision Making 174
Level of Consumer Involvement 174
Decision Heuristics and Biases 175
MARKETING INSIGHT How Consumers Really Make
Decisions 176
MARKETING MEMO Decision Traps 177
Mental Accounting 177
Profiling the Customer Buying-Decision Process 178
Summary 178
Applications 179
Chapter 7 Analyzing Business Markets 181
What Is Organizational Buying? 182
The Business Market versus the Consumer Market 182
MARKETING INSIGHT Big Sales to Small Business 184
Buying Situations 185
Systems Buying and Selling 186
MARKETING MEMO Maximizing Customer References 187
Participants in the Business Buying Process 188
The Buying Center 188
Buying Center Influences 188
Buying Center Targeting 190
The Purchasing/Procurement Process 191
Purchasing Department Perceptions 191
Purchasing Organization and Administration 192
Stages in the Buying 'Process 192
Problem Recognition 193
General Need Description and Product Specification 193
Supplier Search 193
Proposal Solicitation 194
Supplier Selection 194
MARKETING MEMO Developing Compelling Customer Value
Propositions 196
Order-Routine Specification 197
Performance Review 198
Managing Business-to-Business Customer Relationships 198
The Benefits of Vertical Coordination 198
BREAKTHROUGH MARKETING General Electric 199