book

Principles of Marketing, 17/e

Name: Principles of Marketing, 17/e
ISBN: 9780134492513

by Philip T. Kotler, Gary Armstrong

January 2017

Beginner

580 pages

160h 2m

English

Pearson

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Principles of Marketing
Principles of Marketing
Dedication
About the Authors
Brief Contents
Contents
Preface
The Seventeenth Edition of Kotler/Armstrong’s Principles of Marketing! Setting the World Standard in Marketing EducationMarketing: Creating Customer Value and Engagement in the Digital and Social AgeWhat’s New in the Seventeenth Edition?Five Major Customer Value and Engagement ThemesAn Emphasis on Real Marketing and Bringing Marketing to LifeLearning Aids That Create Value and EngagementA Total Teaching and Learning Package
Reviewers
Principles of Marketing

Part 1: Defining Marketing and the Marketing Process (Chapters 1–2)
1 Marketing Creating Customer Value and EngagementChapter PreviewObjectives Outline
What Is Marketing?
Marketing DefinedThe Marketing Process
Understanding the Marketplace and Customer Needs
Customer Needs, Wants, and DemandsMarket Offerings—Products, Services, and ExperiencesCustomer Value and SatisfactionExchanges and RelationshipsMarkets
Designing a Customer Value–Driven Marketing Strategy and Plan
Customer Value–Driven Marketing StrategySelecting Customers to ServeChoosing a Value PropositionMarketing Management OrientationsThe Production ConceptThe Product ConceptThe Selling ConceptThe Marketing ConceptThe Societal Marketing ConceptPreparing an Integrated Marketing Plan and Program
Managing Customer Relationships and Capturing Customer Value
Engaging Customers and Managing Customer RelationshipsCustomer Relationship ManagementRelationship Building Blocks: Customer Value and SatisfactionCustomer Relationship Levels and ToolsCustomer Engagement and Today’s Digital and Social MediaConsumer-Generated MarketingPartner Relationship ManagementCapturing Value from CustomersCreating Customer Loyalty and RetentionGrowing Share of CustomerBuilding Customer EquityWhat Is Customer Equity?Building the Right Relationships with the Right Customers
The Changing Marketing Landscape
The Digital Age: Online, Mobile, and Social Media MarketingSocial Media MarketingMobile MarketingThe Changing Economic EnvironmentThe Growth of Not-for-Profit MarketingRapid GlobalizationSustainable Marketing—The Call for More Environmental and Social ResponsibilitySo, What Is Marketing? Pulling It All Together
1 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 1-1 Define marketing and outline the steps in the marketing process. (pp 4–6)Objective 1-2 Explain the importance of understanding the marketplace and customers and identify the five core marketplace concepts. (pp 6–10)Objective 1-3 Identify the key elements of a customer value–driven marketing strategy and discuss the marketing management orientations that guide marketing strategy. (pp 10–14)Objective 1-4 Discuss customer relationship management and identify strategies for creating value for customers and capturing value from customers in return. (pp 14–22)Objective 1-5 Describe the major trends and forces that are changing the marketing landscape in this age of relationships. (pp 22–31)Key TermsObjective 1-1Objective 1-2Objective 1-3Objective 1-4Objective 1-5Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing The ALS Ice Bucket ChallengeMarketing Ethics Is Big Brother Watching?Marketing by the Numbers What’s a Customer Worth?Video Case Eskimo Joe’sCompany Case Chick-Fil-A: Getting Better before Getting BiggerApplying Some PressureGetting It RightGive Them Something to DoQuestions for Discussion
2 Company and Marketing Strategy Partnering to Build Customer Engagement, Value, and Relationships
Chapter PreviewObjectives Outline
Company-Wide Strategic Planning: Defining Marketing’s Role
Defining a Market-Oriented MissionSetting Company Objectives and Goals
Designing the Business Portfolio
Analyzing the Current Business PortfolioThe Boston Consulting Group ApproachProblems with Matrix ApproachesDeveloping Strategies for Growth and Downsizing
Planning Marketing: Partnering to Build Customer Relationships
Partnering with Other Company DepartmentsPartnering with Others in the Marketing System
Marketing Strategy and the Marketing Mix
Customer Value–Driven Marketing StrategyMarket SegmentationMarket TargetingMarket Differentiation and PositioningDeveloping an Integrated Marketing Mix
Managing the Marketing Effort and Marketing Return on Investment
Managing the Marketing EffortMarketing AnalysisMarketing PlanningMarketing ImplementationMarketing Department OrganizationMarketing ControlMeasuring and Managing Marketing Return on Investment
2 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 2-1 Explain company-wide strategic planning and its four steps. (pp 40–42)Objective 2-2 Discuss how to design business portfolios and develop growth strategies. (pp 42–48)Objective 2-3 Explain marketing’s role in strategic planning and how marketing works with its partners to create and deliver customer value. (pp 48–49)Objective 2-4 Describe the elements of a customer value–driven marketing strategy and mix and the forces that influence them. (pp 50–55)Objective 2-5 List the marketing management functions, including the elements of a marketing plan, and discuss the importance of measuring and managing marketing return on investment. (pp 55–60)Key TermsObjective 2-1Objective 2-2Objective 2-3Objective 2-4Objective 2-5Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing Google’s (Alphabet’s) MissionMarketing Ethics Creating Value or Distracting Consumers?Marketing by the Numbers Apple vs. MicrosoftVideo Case KonicaCompany Case Facebook: Making the World More Open and ConnectedFrom Simple ThingsTo the StratosphereGiving It All AwayQuestions for Discussion
Part 2: Understanding the Marketplace and Consumer Value (Chapters 3–6)
3 Analyzing the Marketing EnvironmentChapter PreviewObjectives Outline
The Microenvironment and Macroenvironment
The MicroenvironmentThe CompanySuppliersMarketing IntermediariesCompetitorsPublicsCustomersThe Macroenvironment
The Demographic and Economic Environments
The Demographic EnvironmentThe Changing Age Structure of the PopulationThe Baby BoomersGeneration XMillennialsGeneration ZGenerational MarketingThe Changing American FamilyGeographic Shifts in PopulationA Better-Educated, More White-Collar, More Professional PopulationIncreasing DiversityThe Economic Environment
The Natural and Technological Environments
The Natural EnvironmentThe Technological Environment
The Political–Social and Cultural Environments
The Political and Social EnvironmentLegislation Regulating BusinessIncreased Emphasis on Ethics and Socially Responsible ActionsSocially Responsible BehaviorCause-Related MarketingThe Cultural EnvironmentThe Persistence of Cultural ValuesShifts in Secondary Cultural ValuesPeople’s Views of ThemselvesPeople’s Views of OthersPeople’s Views of OrganizationsPeople’s Views of SocietyPeople’s Views of NaturePeople’s Views of the Universe
Responding to the Marketing Environment
3 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 3-1 Describe the environmental forces that affect the company’s ability to serve its customers. (pp 68–72)Objective 3-2 Explain how changes in the demographic and economic environments affect marketing decisions. (pp 72–80)Objective 3-3 Identify the major trends in the firm’s natural and technological environments. (pp 80–84)Objective 3-4 Explain the key changes in the political and cultural environments. (pp 84–90)Objective 3-5 Discuss how companies can react to the marketing environment. (pp 90–92)Key TermsObjective 3-1Objective 3-2Objective 3-3Objective 3-4Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing Sharing EconomyMarketing Ethics How Young Is Too Young?Marketing by the Numbers Demographic TrendsVideo Case Burger KingCompany Case Fitbit: Riding the Fitness Wave to GloryA Magical DeviceAn Unexpected OpportunityEncountering HurdlesQuestions for Discussion
4 Managing Marketing Information to Gain Customer Insights
Chapter PreviewObjectives Outline
Marketing Information and Customer Insights
Marketing Information and Today’s “Big Data”Managing Marketing Information
Assessing Information Needs and Developing Data
Assessing Marketing Information NeedsDeveloping Marketing InformationInternal DataCompetitive Marketing Intelligence
Marketing Research
Defining the Problem and Research ObjectivesDeveloping the Research PlanGathering Secondary DataPrimary Data CollectionResearch ApproachesObservational ResearchSurvey ResearchExperimental ResearchContact MethodsMail, Telephone, and Personal InterviewingFocus Group InterviewingOnline Marketing ResearchOnline Behavioral and Social Tracking and TargetingSampling PlanResearch InstrumentsQuestionnairesMechanical InstrumentsImplementing the Research PlanInterpreting and Reporting the Findings
Analyzing and Using Marketing Information
Customer Relationship Management (CRM)Big Data and Marketing AnalyticsDistributing and Using Marketing Information
Other Marketing Information Considerations
Marketing Research in Small Businesses and Nonprofit OrganizationsInternational Marketing ResearchPublic Policy and Ethics in Marketing ResearchIntrusions on Consumer PrivacyMisuse of Research Findings
4 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 4-1 Explain the importance of information in gaining insights about the marketplace and customers. (pp 100–102)Objective 4-2 Define the marketing information system and discuss its parts. (pp 102–106)Objective 4-3 Outline the steps in the marketing research process. (pp 106–116)Objective 4-4 Explain how companies analyze and use marketing information. (pp 116–120)Objective 4-5 Discuss the special issues some marketing researchers face, including public policy and ethics issues. (pp 120–125)Key TermsObjective 4-1Objective 4-2Objective 4-3Objective 4-4Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing The Trail You Leave BehindMarketing Ethics MetadataMarketing by the Numbers The Value of InformationVideo Case NielsenCompany Case Campbell Soup Company: Watching What You EatReading Consumers’ MindsDiving Deeper for InsightsQuestions for Discussion
5 Consumer Markets and Buyer Behavior
Chapter PreviewObjectives Outline
Model of Consumer Behavior
Characteristics Affecting Consumer Behavior
Cultural FactorsCultureSubcultureHispanic American ConsumersAfrican American ConsumersAsian American ConsumersA Total Marketing StrategySocial ClassSocial FactorsGroups and Social NetworksFamilyRoles and StatusPersonal FactorsOccupationAge and Life StageEconomic SituationLifestylePersonality and Self-ConceptPsychological FactorsMotivationPerceptionLearningBeliefs and Attitudes
Buying Decision Behavior and the Buyer Decision Process
Types of Buying Decision BehaviorComplex Buying BehaviorDissonance-Reducing Buying BehaviorHabitual Buying BehaviorVariety-Seeking Buying BehaviorThe Buyer Decision ProcessNeed RecognitionInformation SearchEvaluation of AlternativesPurchase DecisionPostpurchase Behavior
The Buyer Decision Process for New Products
Stages in the Adoption ProcessIndividual Differences in InnovativenessInfluence of Product Characteristics on Rate of Adoption
5 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 5-1 Define the consumer market and construct a simple model of consumer buyer behavior. (pp 134–135)Objective 5-2 Name the four major factors that influence consumer buyer behavior. (pp 135–149)Objective 5-3 List and define the major types of buying decision behavior and the stages in the buyer decision process. (pp 150–154)Objective 5-4 Describe the adoption and diffusion process for new products. (pp 154–156)Key TermsObjective 5-1Objective 5-2Objective 5-3Objective 5-4Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing Digital Influencer CredibilityMarketing Ethics Ultimate WaterMarketing by the Numbers Evaluating AlternativesVideo Case IMG WorldwideCompany Case GoldieBlox: Swimming Upstream against Consumer PerceptionsA Different Kind of Toy CompanyAll That Glitters Is Not GoldieQuestions for Discussion
6 Business Markets and Business Buyer Behavior
Chapter PreviewObjectives Outline
Business Markets
Market Structure and DemandNature of the Buying UnitTypes of Decisions and the Decision Process
Business Buyer Behavior
Major Types of Buying SituationsParticipants in the Business Buying ProcessMajor Influences on Business Buyers
The Business Buyer Decision Process
Problem RecognitionGeneral Need DescriptionProduct SpecificationSupplier SearchProposal SolicitationSupplier SelectionOrder-Routine SpecificationPerformance Review
Engaging Business Buyers with Digital and Social Marketing
E-procurement and Online PurchasingBusiness-to-Business Digital and Social Media Marketing
Institutional and Government Markets
Institutional MarketsGovernment Markets
6 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 6-1 Define the business market and explain how business markets differ from consumer markets. (pp 164–166)Objective 6-2 Identify the major factors that influence business buyer behavior. (pp 166–171)Objective 6-3 List and define the steps in the business buying decision process. (pp 171–173)Objective 6-4 Discuss how new information technologies and online, mobile, and social media have changed business-to-business marketing. (pp 173–175)Objective 6-5 Compare the institutional and government markets and explain how institutional and government buyers make their buying decisions. (pp 175–179)Key TermsObjective 6-1Objective 6-2Objective 6-3Objective 6-4Objective 6-5Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing E-procurement and Mobile ProcurementMarketing Ethics What Are Our Kids Eating?Marketing by the Numbers NAICSVideo Case EatonCompany Case Procter & Gamble: Treating Business Customers as Strategic PartnersDeveloping the Customer’s BusinessA Competitive EdgeIt’s Better to Give…Then to ReceiveQuestions for Discussion
Part 3: Designing a Customer Value-Driven Strategy and Mix (Chapters 7–17)
7 Customer Value–Driven Marketing Strategy: Creating Value for Target CustomersChapter PreviewObjectives Outline
Marketing Strategy
Market Segmentation
Segmenting Consumer MarketsGeographic SegmentationDemographic SegmentationAge and Life-Cycle StageGenderIncomePsychographic SegmentationBehavioral SegmentationOccasionsBenefits SoughtUser StatusUsage RateLoyalty StatusUsing Multiple Segmentation BasesSegmenting Business MarketsSegmenting International MarketsRequirements for Effective Segmentation
Market Targeting
Evaluating Market SegmentsSelecting Target Market SegmentsUndifferentiated MarketingDifferentiated MarketingConcentrated MarketingMicromarketingLocal MarketingIndividual MarketingChoosing a Targeting StrategySocially Responsible Target Marketing
Differentiation and Positioning
Positioning MapsChoosing a Differentiation and Positioning StrategyIdentifying Possible Value Differences and Competitive AdvantagesChoosing the Right Competitive AdvantagesHow Many Differences to PromoteWhich Differences to PromoteSelecting an Overall Positioning StrategyMore for MoreMore for the SameThe Same for LessLess for Much LessMore for LessDeveloping a Positioning StatementCommunicating and Delivering the Chosen Position
7 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 7-1 Define the major steps in designing a customer value–driven marketing strategy: market segmentation, targeting, differentiation, and positioning. (pp 188–189)Objective 7-2 List and discuss the major bases for segmenting consumer and business markets. (pp 189–197)Objective 7-3 Explain how companies identify attractive market segments and choose a market-targeting strategy. (pp 197–204)Objective 7-4 Discuss how companies differentiate and position their products for maximum competitive advantage. (pp 204–212)Key TermsObjective 7-1Objective 7-2Objective 7-3Objective 7-4Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing Get Your GrouponMarketing Ethics Targeting to TeensMarketing by the Numbers USAAVideo Case SproutCompany Case Virgin America: Flight Service for the Tech SavvyTargeting the Right CustomersHoming in on the DetailsAbove the CloudsQuestions for Discussion
8 Products, Services, and Brands Building Customer Value
Previewing the ConceptsObjectives Outline
What Is a Product?
Products, Services, and ExperiencesLevels of Product and ServicesProduct and Service ClassificationsConsumer ProductsIndustrial ProductsOrganizations, Persons, Places, and Ideas
Product and Service Decisions
Individual Product and Service DecisionsProduct and Service AttributesProduct QualityProduct FeaturesProduct Style and DesignBrandingPackagingLabeling and LogosProduct Support ServicesProduct Line DecisionsProduct Mix Decisions
Services Marketing
The Nature and Characteristics of a ServiceMarketing Strategies for Service FirmsThe Service Profit ChainManaging Service DifferentiationManaging Service QualityManaging Service Productivity
Branding Strategy: Building Strong Brands
Brand Equity and Brand ValueBuilding Strong BrandsBrand PositioningBrand Name SelectionBrand SponsorshipNational Brands versus Store BrandsLicensingCo-brandingBrand DevelopmentLine ExtensionsBrand ExtensionsMultibrandsNew BrandsManaging Brands
8 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 8-1 Define product and describe the major classifications of products and services. (pp 220–225)Objective 8-2 Describe the decisions companies make regarding their individual products and services, product lines, and product mixes. (pp 225–233)Objective 8-3 Identify the four characteristics that affect the marketing of services and the additional marketing considerations that services require. (pp 234–240)Objective 8-4 Discuss branding strategy—the decisions companies make in building and managing their brands. (pp 240–248)Key TermsObjective 8-1Objective 8-2Objective 8-3Objective 8-4Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing Feeding Pets from Your SmartphoneMarketing Ethics Geographical IndicationMarketing by the Numbers Pop-Tarts Gone Nutty!Video Case Plymouth Rock AssuranceCompany Case Airbnb: Making Hospitality AuthenticTwo Million Rooms—No Two AlikeSeeing the World as the Locals DoExecuting on the PromiseQuestions for Discussion
9 Developing New Products and Managing the Product Life Cycle
Chapter PreviewObjectives Outline
New Product Development Strategy
The New Product Development Process
Idea GenerationInternal Idea SourcesExternal Idea SourcesCrowdsourcingIdea ScreeningConcept Development and TestingConcept DevelopmentConcept TestingMarketing Strategy DevelopmentBusiness AnalysisProduct DevelopmentTest MarketingCommercializationManaging New Product DevelopmentCustomer-Centered New Product DevelopmentTeam-Based New Product DevelopmentSystematic New Product Development
Product Life-Cycle Strategies
Introduction StageGrowth StageMaturity StageDecline Stage
Additional Product and Service Considerations
Product Decisions and Social ResponsibilityInternational Product and Services Marketing
9 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 9-1 Explain how companies find and develop new product ideas. (pp 256–257)Objective 9-2 List and define the steps in the new product development process and the major considerations in managing this process. (pp 257–265)Objective 9-3 Describe the stages of the product life cycle and how marketing strategies change during a product’s life cycle. (pp 265–273)Objective 9-4 Discuss two additional product issues: socially responsible product decisions and international product and services marketing. (pp 273–275)Key TermsObjective 9-1Objective 9-2Objective 9-3Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing TelemedicineMarketing Ethics Put On Your Thinking Caps!Marketing by the Numbers Dental House CallsVideo Case Day2Night Convertible HeelsCompany Case Bose: Better Products through ResearchThe Bose PhilosophyInnovating the Bose WayQuestions for Discussion
10 Pricing Understanding and Capturing Customer Value
Chapter PreviewObjectives Outline
What Is a Price?
Major Pricing Strategies
Customer Value–Based PricingGood-Value PricingValue-Added PricingCost-Based PricingTypes of CostsCosts at Different Levels of ProductionCosts as a Function of Production ExperienceCost-Plus PricingBreak-Even Analysis and Target Profit PricingCompetition-Based Pricing
Other Internal and External Considerations Affecting Price Decisions
Overall Marketing Strategy, Objectives, and MixOrganizational ConsiderationsThe Market and DemandPricing in Different Types of MarketsAnalyzing the Price–Demand RelationshipPrice Elasticity of DemandThe EconomyOther External Factors
10 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 10-1 Answer the question “What is a price?” and discuss the importance of pricing in today’s fast-changing environment. (pp 284–285)Objective 10-2 Identify the three major pricing strategies and discuss the importance of understanding customer-value perceptions, company costs, and competitor strategies when setting prices. (pp 285–293)Objective 10-3 Identify and define the other important external and internal factors affecting a firm’s pricing decisions. (pp 293–299)Key TermsObjective 10-1Objective 10-2Objective 10-3Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing Online Price TrackingMarketing Ethics The Cost of a LifeMarketing by the Numbers Pricey SheetsVideo Case Fast-Food Discount WarsCompany Case Trader Joe’s: Cheap Gourmet—Putting a Special Twist on the Price-Value EquationHigh on BenefitsLow on PricesSomething ExtraQuestions for Discussion
11 Pricing Strategies Additional Considerations
Chapter PreviewObjectives Outline
New Product Pricing Strategies
Market-Skimming PricingMarket-Penetration Pricing
Product Mix Pricing Strategies
Product Line PricingOptional-Product PricingCaptive-Product PricingBy-Product PricingProduct Bundle Pricing
Price Adjustment Strategies
Discount and Allowance PricingSegmented PricingPsychological PricingPromotional PricingGeographical PricingDynamic and Online PricingInternational Pricing
Price Changes
Initiating Price ChangesInitiating Price CutsInitiating Price IncreasesBuyer Reactions to Price ChangesCompetitor Reactions to Price ChangesResponding to Price Changes
Public Policy and Pricing
Pricing within Channel LevelsPricing across Channel Levels
11 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 11-1 Describe the major strategies for pricing new products. (pp 308–309)Objective 11-2 Explain how companies find a set of prices that maximizes the profits from the total product mix. (pp 309–311)Objective 11-3 Discuss how companies adjust their prices to take into account different types of customers and situations. (pp 311–319)Objective 11-4 Discuss the key issues related to initiating and responding to price changes. (pp 320–322)Objective 11-5 Overview the social and legal issues that affect pricing decisions. (pp 322–326)Key TermsObjective 11-1Objective 11-2Objective 11-3Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing Krazy Coupon LadyMarketing Ethics Less Bang for Your BuckMarketing by the Numbers Louis Vuitton Price IncreaseVideo Case HammerpressCompany Case Lululemon: Indulging Customers at a Premium PriceRiding the WaveWhere Price Is No ObjectExpensive—but Worth ItQuestions for Discussion
12 Marketing Channels Delivering Customer Value
Chapter PreviewObjectives Outline
Supply Chains and the Value Delivery Network
The Nature and Importance of Marketing ChannelsHow Channel Members Add ValueNumber of Channel Levels
Channel Behavior and Organization
Channel BehaviorVertical Marketing SystemsCorporate VMSContractual VMSAdministered VMSHorizontal Marketing SystemsMultichannel Distribution SystemsChanging Channel Organization
Channel Design Decisions
Analyzing Consumer NeedsSetting Channel ObjectivesIdentifying Major AlternativesTypes of IntermediariesNumber of Marketing IntermediariesResponsibilities of Channel MembersEvaluating the Major AlternativesDesigning International Distribution Channels
Channel Management Decisions
Selecting Channel MembersManaging and Motivating Channel MembersEvaluating Channel MembersPublic Policy and Distribution Decisions
Marketing Logistics and Supply Chain Management
Nature and Importance of Marketing LogisticsSustainable Supply ChainsGoals of the Logistics SystemMajor Logistics FunctionsWarehousingInventory ManagementTransportationLogistics Information ManagementIntegrated Logistics ManagementCross-Functional Teamwork Inside the CompanyBuilding Logistics PartnershipsThird-Party Logistics
12 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 12-1 Explain why companies use marketing channels and discuss the functions these channels perform. (pp 334–337)Objective 12-2 Discuss how channel members interact and how they organize to perform the work of the channel. (pp 338–344)Objective 12-3 Identify the major channel alternatives open to a company. (pp 344–348)Objective 12-4 Explain how companies select, motivate, and evaluate channel members. (pp 348–352)Objective 12-5 Discuss the nature and importance of marketing logistics and integrated supply chain management. (pp 352–359)Key TermsObjective 12-1Objective 12-2Objective 12-3Objective 12-4Objective 12-5Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing Fabletics Changing ChannelsMarketing Ethics Trucker Rest RulesMarketing by the Numbers Tyson Expanding DistributionVideo Case ProgressiveCompany Case Apple Pay: Taking Mobile Payments MainstreamHardly NewOvercoming Negative Consumer PerceptionsEstablishing Points of AcceptanceQuestions for Discussion
13 Retailing and Wholesaling
Chapter PreviewObjectives Outline
Retailing
Retailing: Connecting Brands with ConsumersTypes of RetailersAmount of ServiceProduct LineRelative PricesDiscount StoresOff-Price RetailersOrganizational Approach
Retailer Marketing Decisions
Segmentation, Targeting, Differentiation, and Positioning DecisionsProduct Assortment and Services DecisionPrice DecisionPromotion DecisionPlace Decision
Retailing Trends and Developments
Tighter Consumer SpendingNew Retail Forms, Shortening Retail Life Cycles, and Retail ConvergenceThe Rise of MegaretailersGrowth of Direct, Online, Mobile, and Social Media RetailingThe Need for Omni-Channel RetailingGrowing Importance of Retail TechnologyGreen RetailingGlobal Expansion of Major Retailers
Wholesaling
Types of WholesalersWholesaler Marketing DecisionsSegmentation, Targeting, Differentiation, and Positioning DecisionsMarketing Mix DecisionsTrends in Wholesaling
13 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 13-1 Explain the role of retailers in the distribution channel and describe the major types of retailers. (pp 368–375)Objective 13-2 Describe the major retailer marketing decisions. (pp 376–381)Objective 13-3 Discuss the major trends and developments in retailing. (pp 381–387)Objective 13-4 Explain the major types of wholesalers and their marketing decisions. (pp 387–392)Key TermsObjective 13-1Objective 13-2Objective 13-3Objective 13-4Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing Skipping the Checkout LineMarketing Ethics Lilly for TargetMarketing by the Numbers Stockturn RateVideo Case KmartCompany Case Bass Pro Shops: Creating Nature’s Theme Park for People Who Hate to ShopFilling a Gap in the MarketNature’s Theme ParkHalf the Size—All the FunQuestions for Discussion
14 Engaging Consumers and Communicating Customer Value Integrated Marketing Communication Strategy
Chapter PreviewObjectives Outline
The Promotion Mix
Integrated Marketing Communications
The New Marketing Communications ModelThe Need for Integrated Marketing Communications
Developing Effective Marketing Communication
A View of the Communication ProcessSteps in Developing Effective Marketing CommunicationIdentifying the Target AudienceDetermining the Communication ObjectivesDesigning a MessageMessage ContentMessage StructureMessage FormatChoosing Communication Channels and MediaPersonal Communication ChannelsNonpersonal Communication ChannelsSelecting the Message SourceCollecting Feedback
Setting the Total Promotion Budget and Mix
Setting the Total Promotion BudgetAffordable MethodPercentage-of-Sales MethodCompetitive-Parity MethodObjective-and-Task MethodShaping the Overall Promotion MixThe Nature of Each Promotion ToolAdvertisingPersonal SellingSales PromotionPublic RelationsDirect and Digital MarketingPromotion Mix StrategiesIntegrating the Promotion MixSocially Responsible Marketing CommunicationAdvertising and Sales PromotionPersonal Selling
14 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 14-1 Define the five promotion mix tools for communicating customer value. (pp 400–401)Objective 14-2 Discuss the changing communications landscape and the need for integrated marketing communications. (pp 401–406)Objective 14-3 Outline the communication process and the steps in developing effective marketing communications. (pp 406–413)Objective 14-4 Explain the methods for setting the promotion budget and factors that affect the design of the promotion mix. (pp 413–420)Key TermsObjective 14-1Objective 14-2Objective 14-3Objective 14-4Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing #withoutshoesMarketing Ethics An Ethical Promotion?Marketing by the Numbers Advertising-to-Sales RatiosVideo Case OXOCompany Case Volvo Trucks: Integrated Marketing Communications of Epic ProportionsA Consumer ApproachAppealing to the Masses with “Live Tests”The Synergy of IMCQuestions for Discussion
15 Advertising and Public Relations
Chapter PreviewObjectives Outline
Advertising
Major Advertising Decisions
Setting Advertising ObjectivesSetting the Advertising BudgetDeveloping Advertising StrategyCreating the Advertising Message and Brand ContentBreaking Through the ClutterMerging Advertising and EntertainmentMessage and Content StrategyMessage ExecutionConsumer-Generated ContentSelecting Advertising MediaDetermining Reach, Frequency, Impact, and EngagementChoosing among Major Media TypesSelecting Specific Media VehiclesDeciding on Media TimingEvaluating Advertising Effectiveness and the Return on Advertising InvestmentOther Advertising ConsiderationsOrganizing for AdvertisingInternational Advertising Decisions
Public Relations
The Role and Impact of PR
Major Public Relations Tools
15 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 15-1 Define the role of advertising in the promotion mix. (pp 428)Objective 15-2 Describe the major decisions involved in developing an advertising program. (pp 429–446)Objective 15-3 Define the role of public relations in the promotion mix. (pp 446–448)Objective 15-4 Explain how companies use public relations to communicate with their publics. (p 448 )Key TermsObjective 15-1Objective 15-2Objective 15-3Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing Facebook Audience NetworkMarketing Ethics Native AdvertisingMarketing by the Numbers C3, CPM, and CPPVideo Case KmartCompany Case Allstate: Bringing Mayhem to the Auto Insurance Advertising WarsAn Advertising Shakeup“Good Hands” Meets MayhemMayhem ReduxQuestions for Discussion
16 Personal Selling and Sales Promotion
Chapter PreviewObjectives Outline
Personal Selling
The Nature of Personal SellingThe Role of the Sales ForceLinking the Company with Its CustomersCoordinating Marketing and Sales
Managing the Sales Force
Designing the Sales Force Strategy and StructureThe Sales Force StructureSales Force SizeOther Sales Force Strategy and Structure IssuesOutside and Inside Sales ForcesTeam SellingRecruiting and Selecting SalespeopleTraining SalespeopleCompensating SalespeopleSupervising and Motivating SalespeopleSupervising SalespeopleMotivating SalespeopleEvaluating Salespeople and Sales Force PerformanceSocial Selling: Online, Mobile, and Social Media Tools
The Personal Selling Process
Steps in the Selling ProcessProspecting and QualifyingPreapproachApproachPresentation and DemonstrationHandling ObjectionsClosingFollow-UpPersonal Selling and Managing Customer Relationships
Sales Promotion
The Rapid Growth of Sales PromotionSales Promotion ObjectivesMajor Sales Promotion ToolsConsumer PromotionsTrade PromotionsBusiness PromotionsDeveloping the Sales Promotion Program
16 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 16-1 Discuss the role of a company’s salespeople in creating value for customers and building customer relationships. (pp 456–458)Objective 16-2 Identify and explain the six major sales force management steps. (pp 458–469)Objective 16-3 Discuss the personal selling process, distinguishing between transaction-oriented marketing and relationship marketing. (pp 469–472)Objective 16-4 Explain how sales promotion campaigns are developed and implemented. (pp 472–479)Key TermsObjective 16-1Objective 16-2Objective 16-3Objective 16-4Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing Snap It and Redeem It!Marketing Ethics Walking the CustomerMarketing by the Numbers Sales Force AnalysisVideo Case First FlavorCompany Case SunGard: Building Sustained Growth by Selling the SunGard WayPioneering a New IndustryGood, but Not GreatSetting Transformation in MotionFrom Transformation to ResultsQuestions for Discussion
17 Direct, Online, Social Media, and Mobile Marketing
Chapter PreviewObjectives Outline
Direct and Digital Marketing
The New Direct Marketing ModelRapid Growth of Direct and Digital MarketingBenefits of Direct and Digital Marketing to Buyers and Sellers
Forms of Direct and Digital Marketing
Marketing, the Internet, and the Digital Age
Online MarketingWebsites and Branded Web CommunitiesOnline AdvertisingEmail MarketingOnline VideosBlogs and Other Online Forums
Social Media and Mobile Marketing
Social Media MarketingUsing Social MediaSocial Media Marketing Advantages and ChallengesIntegrated Social Media MarketingMobile Marketing
Traditional Direct Marketing Forms
Direct-Mail MarketingCatalog MarketingTelemarketingDirect-Response Television MarketingKiosk MarketingPublic Policy Issues in Direct and Digital MarketingIrritation, Unfairness, Deception, and FraudConsumer PrivacyA Need for Action
17 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 17-1 Define direct and digital marketing and discuss their rapid growth and benefits to customers and companies. (pp 488–490)Objective 17-2 Identify and discuss the major forms of direct and digital marketing. (pp 490–491)Objective 17-3 Explain how companies have responded to the internet and the digital age with various online marketing strategies. (pp 491–497)Objective 17-4 Discuss how companies use social media and mobile marketing to engage consumers and create brand community. (pp 497–503)Objective 17-5 Identify and discuss the traditional direct marketing forms and overview the public policy and ethical issues presented by direct marketing. (pp 504–510)Key TermsObjective 17-1Objective 17-2Objective 17-3Objective 17-4Objective 17-5Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing “Buy” ButtonsMarketing Ethics #FailMarketing by the Numbers Field Sales versus TelemarketingVideo Case NutrisystemCompany Case Alibaba: The World’s Largest E-tailer Is Not AmazonUnlikely BeginningsFeeding the MassesA Little of EverythingQuestions for Discussion
Part 4: Extending Marketing (Chapters 18–20)
18 Creating Competitive AdvantageChapter PreviewObjectives Outline
Competitor Analysis
Identifying CompetitorsAssessing CompetitorsDetermining Competitors’ ObjectivesIdentifying Competitors’ StrategiesAssessing Competitors’ Strengths and WeaknessesEstimating Competitors’ ReactionsSelecting Competitors to Attack and AvoidStrong or Weak CompetitorsGood or Bad CompetitorsFinding Uncontested Market SpacesDesigning a Competitive Intelligence System
Competitive Strategies
Approaches to Marketing StrategyBasic Competitive StrategiesCompetitive PositionsMarket Leader StrategiesExpanding Total DemandProtecting Market ShareExpanding Market ShareMarket Challenger StrategiesMarket Follower StrategiesMarket Nicher Strategies
Balancing Customer and Competitor Orientations
18 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 18-1 Discuss the need to understand competitors as well as customers through competitor analysis. (pp 518–525)Objective 18-2 Explain the fundamentals of competitive marketing strategies based on creating value for customers. (pp 525–535)Objective 18-3 Illustrate the need for balancing customer and competitor orientations in becoming a truly market-centered organization. (pp 535–536)Key TermsObjective 18-1Objective 18-2Objective 18-3Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing Social LoginsMarketing Ethics Creating Competitive Advantage . . . to What End?Marketing by the Numbers Market ShareVideo Case Umpqua BankCompany Case YouTube: Google’s Quest for Video Dominance“I Want My TV!”The Competition IntensifiesDoing Video Its Own WayQuestions for Discussion
19 The Global Marketplace
Chapter PreviewObjectives Outline
Global Marketing Today
Elements of the Global Marketing EnvironmentThe International Trade SystemThe World Trade OrganizationRegional Free Trade ZonesEconomic EnvironmentPolitical-Legal EnvironmentCultural EnvironmentThe Impact of Culture on Marketing StrategyThe Impact of Marketing Strategy on CulturesDeciding Whether to Go GlobalDeciding Which Markets to Enter
Deciding How to Enter the Market
ExportingJoint VenturingLicensingContract ManufacturingManagement ContractingJoint OwnershipDirect Investment
Deciding on the Global Marketing Program
ProductPromotionPriceDistribution Channels
Deciding on the Global Marketing Organization
19 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 19-1 Discuss how the international trade system and the economic, political-legal, and cultural environments affect a company’s international marketing decisions. (pp 544–556)Objective 19-2 Describe three key approaches to entering international markets. (pp 556–558)Objective 19-3 Explain how companies adapt their marketing strategies and mixes for international markets. (pp 559–566)Objective 19-4 Identify the three major forms of international marketing organization. (p 566)Key TermsObjective 19-1Objective 19-2Objective 19-3Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing China’s Great FirewallMarketing Ethics Global Safety StandardsMarketing by the Numbers Netflix’s Global ExpansionVideo Case MonsterCompany Case L’Oréal: The United Nations of BeautyBecause I’m Worth ItBeauty from Multiple PerspectivesDiving Deep for BeautyQuestions for Discussion
20 Sustainable Marketing Social Responsibility and Ethics
Chapter PreviewObjectives Outline
Sustainable Marketing
Social Criticisms of Marketing
Marketing’s Impact on Individual ConsumersHigh PricesDeceptive PracticesHigh-Pressure SellingShoddy, Harmful, or Unsafe ProductsPlanned ObsolescencePoor Service to Disadvantaged ConsumersMarketing’s Impact on Society as a WholeFalse Wants and Too Much MaterialismToo Few Social GoodsCultural PollutionMarketing’s Impact on Other Businesses
Consumer Actions to Promote Sustainable Marketing
ConsumerismEnvironmentalismPublic Actions to Regulate Marketing
Business Actions Toward Sustainable Marketing
Sustainable Marketing PrinciplesConsumer-Oriented MarketingCustomer Value MarketingInnovative MarketingSense-of-Mission MarketingSocietal Marketing
Marketing Ethics and the Sustainable Company
Marketing EthicsThe Sustainable Company
20 Reviewing and Extending the Concepts
Objectives Review and Key TermsObjectives ReviewObjective 20-1 Define sustainable marketing and discuss its importance. (pp 574–576)Objective 20-2 Identify the major social criticisms of marketing. (pp 576–583)Objective 20-3 Define consumerism and environmentalism and explain how they affect marketing strategies. (pp 583–589)Objective 20-4 Describe the principles of sustainable marketing. (pp 589–593)Objective 20-5 Explain the role of ethics in marketing. (pp 593–596)Key TermsObjective 20-1Objective 20-3Objective 20-4Discussion and Critical ThinkingDiscussion QuestionsCritical Thinking ExercisesApplications and CasesOnline, Mobile, and Social Media Marketing Teens and Social MediaMarketing Ethics Milking the International MarketMarketing by the Numbers The Cost of SustainabilityVideo Case Honest TeaCompany Case adidas: Athletic Apparel with PurposeA Marathon, Not a SprintThe Four Ps of SustainabilityDoing Well by Doing Good?Questions for Discussion
Appendix 1 Marketing Plan
The Marketing Plan: An IntroductionThe Purpose and Content of a Marketing PlanThe Role of ResearchThe Role of RelationshipsFrom Marketing Plan to Marketing Action
Sample Marketing Plan: Chill Beverage Company
Executive SummaryCurrent Marketing SituationMarket DescriptionProduct ReviewCompetitive ReviewChannels and Logistics ReviewStrengths, Weaknesses, Opportunities, and Threat AnalysisStrengthsWeaknessesOpportunitiesThreatsObjectives and IssuesFirst-Year ObjectivesSecond-Year ObjectivesIssuesMarketing StrategyPositioningProduct StrategyPricingDistribution StrategyMarketing Communication StrategyMarketing ResearchAction ProgramsBudgetsControls
Appendix 2 Marketing by the Numbers
Pricing, Break-Even, and Margin Analysis
Pricing ConsiderationsDetermining CostsSetting Price Based on CostsSetting Price Based on External FactorsBreak-Even and Margin AnalysisDetermining Break-Even Unit Volume and Dollar SalesDetermining “Breakeven” for Profit GoalsMarketing by the Numbers Exercise Set One
Demand Estimates, the Marketing Budget, and Marketing Performance Measures
Market Potential and Sales EstimatesThe Profit-and-Loss Statement and Marketing BudgetMarketing Performance MeasuresAnalytic RatiosMarketing Profitability MetricsNet Marketing ContributionMarketing Return on Sales and InvestmentMarketing by the Numbers Exercise Set Two
Financial Analysis of Marketing Tactics
Increase Advertising ExpendituresIncrease Distribution CoverageDecrease PriceExtend the Product LineMarketing by the Numbers Exercise Set Three
Appendix 3 Careers in Marketing
Marketing Careers Today
Overall Marketing Facts and Trends
Looking for a Job in Today’s Marketing World
Conduct a Self-Assessment and Seek Career CounselingExamine Job DescriptionsExplore the Job Market and Assess OpportunitiesCareer Development CentersJob FairsNetworkingInternshipsJob Hunting on the InternetProfessional Networking SitesDevelop Search StrategiesPrepare RésumésOnline RésumésRésumé TipsWrite Cover Letter, Follow Up, and Assemble Supporting DocumentsCover LetterFollow UpLetters of RecommendationInterview for JobsBefore the InterviewDuring the InterviewAfter the InterviewFollow-Up Interview
Marketing Jobs
AdvertisingJob DescriptionsSkills Needed, Career Paths, and Typical SalariesBrand and Product ManagementJob DescriptionsSkills Needed, Career Paths, and Typical SalariesSales and Sales ManagementJob DescriptionsSkills Needed, Career Paths, and Typical SalariesOther Marketing JobsRetailingMarketing ResearchNew Product PlanningMarketing Logistics (Physical Distribution)Public RelationsNot-for-Profit Services
Other Resources
Glossary
References
Index
Brand, Company, Name, and Organization Index
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I
J
K
L
M
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Subject Index
A
B
C
D
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Content preview from Principles of Marketing, 17/e

Retailing Trends and Developments

Retailers operate in a harsh and fast-changing environment, which offers threats as well as opportunities. Consumer demographics, lifestyles, and spending patterns are changing rapidly, as are retailing technologies. To be successful, retailers need to choose target segments carefully and position themselves strongly. They need to take the following retailing developments into account as they plan and execute their competitive strategies.

Tighter Consumer Spending

Following many years of good economic times for retailers, the Great Recession of 2008–2009 turned many retailers’ ...

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Principles of Marketing, 17/e

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Retailing Trends and Developments

Tighter Consumer Spending

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