Preface xiii
PART 1: UNDERSTANDING MARKETING AND
1.THE MARKETING PROCESS
Marketing in a Changing World: Creating
Customer Value and Sarisfaction
What Is Marketing?
Needs, Wants, and Demands Products
Vatue, Satisfaction, and Qualty Exchange,
Transactions. and Relationships
Markets Marketing
Marketing Management
Demand Managefnent
Customer Relationships
Building Profitable
Marketing Management Philosuphies
The Production Concept The Product
Concepl The Selling Concept The
M.arketing Concept The Societal Marketing
Concept
Markering Challenges into the Next Century
Growth of Nonprofit Marketing Rapid
Globalization The Changing World
Economy The Call fm More Ethics and
Social Respottsibiltty The New Marketing
Landscape
Summary Key Terms Discussing the
Issues Applying the Concepts
Referenccs
2.Strategic Planning and the Marketing
Process
Strategic Planning
Defining the Compury Mission . Setting
Company Objectises and Goals
Designing the Business Portfolio
Analyzing the Current Business Portfolio
Deteloping Growth Strategies Plannmg
Panctional Strategas
The Marketing Procsess
Target Consumers Marketing Strcatefgies for
Competitive Advantage Developing the
Marketing Mix
Managing the Marjketing Effbrt
Markettng Analysis , Marketing Planning
Marketing Implementation Marketing
Department Organization Marketing
Control The Marketing Environment
SuJmmary Key Terms Discussing thc
Issues Applying the Concepts
References
3.The Marketing Environmcnt
The Company's Microenvironment
The Company Suppliers Marketing
Intermediaries Customers
Competitors Publics
The Company's Macroenvironmenr
Demographic Environment Economic
Environment Natural Environment
Techogical Environment Political
Environment Cultural Environment
Responding to the Marketing Environmcnt
Summary Kcy Terms Discnssing rhe
Issues Applying the Concepts
Rcferences
PART 11: ANALYZING MARKETiNG
OPPORTUNITIES
4.Marketing Rcsearch and Information Systcms
Thc Markcting Information System
Assessing Informantion Detloping
Information Distributiong information
The Marketing Research Process
Defining the Problem and Research
Objectives Dweloping thr Research
Plan Implementing the Research
Plan Interpreting and Reporting the
pindings Other Marketing Resemch
Considerations
Sammary Key Terms Discussine the
Issues Applying the Concepts
References
5.Consumcr Markets and Consumer Buycr
Behavior
Modcl of Consumer Behavior
Characteristics Affecting Consumer
Behavior
Cultwal Pactors Sodal Factors
Personal Factors Psychological
Pacwrs
Consumer Buying Roles
Types of Buying Decision Bchavior
Compiex Buying Behavior Dissssonance-
Reducing Buying Behavior Habitual
Buying Behavior Variety-Seeking Buying
Behavior
The Buyer Decision Process
Heed Recognition Information
Search Evatuation of Altematives
Purchase Dension Postpurchase
Behavior
The Buyer Decision Process for New
Products
Stages m the Adoption Process Individual
Dtfferences in Innovativeness Infiuence
of Producf Characteristics on Rate of
Adoption
Consumer Behavior Across International
Borders
Summary Key Terms Discussing the
Issues Appiying the Conccpts
References
Business Markets and
Behsvior
Business Markets
Characteristics of
6.A Model of Business Business Buyer Behavior
Major Types of buying
Participants in the bus
Major influences on busiess
Business Buying Process
Istitutional and Government
fnstttutional Markets
Marhets
Summary Key Terms Discussing the
Issues Applying the Concepts
References
VIDEO CASE 3:DHL WORLDWIDE
EXPRESS
PART III:Measuring and Forecasring Demand
Defining the Market
7.Measuring Current Market-Demand
Estimating Total Market Demand
Estimating Area Market Demand Market-
Buildup Method Market Factor Index
Method Estimating Actual Sales and
Market Shares
Forecasting Future Demand
Survey of Buyers'Intentions Composite
of Saksforce Opinions Expert
Opinion Test Marketing Ttfne-
Series Analysis Leading tndicators
Statistical Demand Analysis
Summary Key Terms Discussing the
Issues Applying the Concepts
References
8.Market Segmentation, Targering,and Positioning For CompetitiveAdvantage
Markess
Market Segmentation
Bases for Segmenting Consumer Markets
Segmenting Business Markets Segmenting
Intemational Markets Requirements for
Effective Segmentation
Market Targeting
Evaluating Market Segments Selecting
Market Segments
Positioning for Competitive Advantage
What Is Market Positioning? Positioning
Strategies Choosing and Implementing a
Positioning Strategy
Summary Key Terms Discussing the
Issues Applying the Concepts
References
COMPANY CASE 8A: QUAKER OATS: DOUSING
ON THE COMPETJTION
COMPANY CASE 8B: RYKA: BE STRONG
COMPREHENSrVE CASE lll: LOOK OUT!
LIPTON, HERE COMES OOLONG!
PART IV: DEVELOPING THE MARKETING MIX
9.Designing Products: Products, Brands,
Packaging, and Services
What Is a Product?
Product Classifications
Consumer Products Industrial
Products
Individual Product Decisions
Product Attributes Branding
Packaging Labeling Product-
Support Semices
Product Line Decisions
Product Line Length Product Line
Modemization Product Line Featuring
Product Mix Decisions
International Product Decisions
Summary Key Terms Discussing the
Issues Applying the Concepts
References
COMPANY CASE 9: COLGATE: SQUEEZING
MORE FROM A BRAND NAME
Designing Products: New-Product
10.Development and Product Life-Cycle
Strategies
New-Product Development Strategy
New-Product Success and Failure The
New-Product Dilemma
The New-Product Development Process
Idea Generation Idea Screening
Concept Development and Testing
Marketing Strategy Development Business
Analysis Product Development Test
Marketing Commercialization
Speeding Up New-Product Development
Product Life-Cycle Strategies
Introduction Stage Growth Stage
Maturity Stage Decline Stage
Summary Key Terms Discussing the
Issues Applying the Concepts
References
COMPANY CASE 10: POLAROID: TAKING
VISION TO THE MARKETPLACE
11.Pricing Products: Pricing Considerations
and Approaches
Factors to Consider When Setting Prices
Internal Factors Affecting Pricing Decisions
Extemal Factors Affecting Pricing
Decisions
General Pricin
Cost-Based
Pricing
Approaches
Pricing Value-Based
Competition-Based Pricing
Summary Key Terms Discussing the
Issues Applying the Concepts
References
COMPANY CASE 11: U.S. AIR: SURVJVING THE
FARE WARS
12.Pricing Products: Pricing Strategies
New-Product Pricing Strategies
Market-Skimming Pricing Market-
Penetration Pricing
Product-Mix Pricing Strategies
Product Line Pricing Optional-Product
Pricing Captive-Product Pricmg
By-Product Pricing Product-Bundle
Pricing
Price-Adjustment Strategies
Discount and Allowance Pricing
Segmented Pricing Psychological
Pricing Promotional Pricing Value
Pricing Geographical Pricing
International Pricing
Price Changes
Initiating Price Changes
Price Changes
Responding to
Summary Key Terms Discussing the
Issues Applying the Concepts
References
COMPANY CASE 12: CIRCUIT CITY: SELLING
USED CARS LIKE STEREOS
13.Placing Products: Distriburion Channels and Logistics Management
The Nature of Distribution Channels
Why Are Marketing Intermediaries Used?
Distribution Channel Functions Nymber
of Channel Levels Channels m the Service
Sector
Channel Behavior and Organization
Channel Behavior Vertical Marketing
Systems Horizontal Marketmg
Systems Hybrid Marketing Systems
Channel Design Decisions
Analyzing Consumer Service Needs
Setting the Channel Objectives and
Constraints Identifying Major
Altematives Evaluating the Major
Alternatives Designing International
Distribution Channels
Channel Management Decisions
Selecting Channel Members Motivating
Channel Members Evaluating Channel
Members
Physical Distribution and Logistics
Management
Nature and Importance of Physical Distribution
and Marketing Logistics Goals of the
Logistics System Major Logistics
Functions Integrated Logistics
Management
Key Terms Discussing the
Applying the Concepts
Summary
Ideas
References
COMPANY CASE 13: ICON ACOUSTICS:
BYPASSING TRADITION
14.Placing Products: Retailing and Wholesaling
Retailing
Store Retailing
Amount of Service Product Line
Relative Prices Control of Outlets
Type of Store Cluster
Nonstore Retailing
Direct Marketing Direct Selling
Automatic Vending
Retailer Marketing Decisions
Target Market and Positioning Decision
Product Assortment and Services Decision
Price Decision Promotion Decision
Place Decision
The Future of Retailing
Wholesaling
Types of Wholesalers
Merchant Wholesalers Brokers and
Agents Manufacturers' Sales Branches and
Offtces
Wholesaler Marketing Decisions
Target Market and Positioning Decision
Marketing Mix Decisions
Trends in Wholesaling
Summary Key Terms Discussing the
Issues Applying the Concepts
References
COMPANY CASE 14: SAM'S CLUB: BULKING L'P
FOR COMPETITION
15.Promoting Products: Marketing
Communication Strategy
Steps in Developing Effective
Communication
Identifying the Target Audience
Determining the Response Sought
Choosing a Message Choosing Media
Selecting the Message Source Collecting
Feedback
Setting the Total Promotion Budget and
Mix
Setting the Total Promotion Budget
Setting the Promotion Mix
The Changing Face of Marketing
Communications
The Changing Communications
Environment Growth of Direct
Marketing Integrated Marketing
Communications
Socially Responsible Marketing
Communication
Advertising Personal Selling Direct
Marketing
Summary Key Terms Discussing the
Issues Applying the Concepts
References
COMPANY CASE 15: AVON: A PROMOTIONAL
STRATEGY MAKEOVER
16.Promoring Products: Adverrising, Sales
Promotion, and Public Relations
Advertising
Major Decisions in Advertising
Setting Obfectives Setting the Advertising
Budget Advertising Strategy
Advertising Evaluation International
Advertising Decisions
Sales Promotion
Rapid Growth of Sales Promotion
Purpose of Sales Promotion Setting Sales-
Promotion Objectives Selecting
Sales-Promotion Tools Developing the
Sales-Promotion Program
Public Relations
Major Public Relations Tools Major
Public Relations Decisions
Summary Key Terms Discussing the
Issues Applying the Concepts
References
COMPANY CASE 16: BURGER KING:
SEARCHING FOR THE RIGHT MESSAGE
17.Promoting Products: Personal Selling and Sales Management
The Role of Personal Selling
The Nature of Personal Selling The Role
of the Sales Force
Managing the Sales Force
Designing Sales Force Strategy and
Structure Recruiting and Selecting
Salespeople Training Salespeople
Compensating Salespeople Supervising
Salespeople Evaluating Salespeople
Principles of Personal Selling
The Personal Selling Process Steps in the
Selling Process Relationship
Marketing
Summary Key Terms Discussing the
Issues Applying the Concepts
References
COMPANY CASE 17: IBM: RESTRUCTURING
THE SALES FORCE
VIDEO CASE 4: ROLLERBLADE: THE ASPHALT
IS CALLING
VIDEO CASE 5: TERRA CHIPS: EAT YOUR
VEGGIES!
VIDEO CASE 6: MOUNTAIN TRAVEL SOBEK:
ALL OVER THE WORLD
VIDEO CASE 7: MALL OF AMERICA: THE
ULTIMATE DESTINATJON FOR FUN
COMPREHENSFVE CASE IV: SMITH'S HOME
FOODS: BRlNGING HOME THE BACON
PART V: MANAGING THE MARKETING EFFORT
18.Building Customer Relationships through Satisfaction, Value, and Quality
Defining Customer Value and Satisfaction
Customer Value Customer
Satisfaction
Delivering Customer Value and Satisfaction
Value Chain Value Delivery System
Retaining Customers
The Cost of Lost Customers The Need
foT Customer Retention The Key:
Customer Relationship Marketing The
Ultimate Test: Customer Profitabiltty
Implementing Total Quality Marketing
Total Quality Management Marketing's
Role in Total Quality
Summary Key Terms Discussing the
Issues Applying the Concepts
References
COMPANY CASE 18: OUTBACK STEAKHOUSE:
BREAKING THE RULES
19.Crearing Competitive Advantage: Competitor Analysis and CompetiriveMarketing Strategies
Competitor Analysis
Identifying the Company's Competitors
Determining Competitors' Objectives
Identifying Competitors' Strategies
Assessing Competitors' Strengths and
Weaknesses Estimating Competitors'
Reactions Selecting Competitors to Attack
and Avoid Designing a Competitive
Intelligence System
Competitive Strategies
Basic Competitive Strategies Competitive
Positions Market-Leader Strategies
Market-Challenger Strategies Market-
Follower Strategies Market-Nicher
Strategies
Balancing Customer and Competitor
Orientations
Key Terms Discussing the
Applying the Concepts
Summary
Issues
References
COMPANY CASE 19: PROCTER GAMBLE
GOING GLOBAL-A NEW WRINKLE IN.
COSMETICS
VIDEO CASE 8: RITZ-CARLTON: SIMPLY THE
BEST
COMPREHENSIVE CASE V: NEW BALANCE:
RUNNING IN THE BUSINESS MARATHON
Economic
PART Vl: EXTENDING MARKETING
20.The Global Marketplace Global Marketing into the Twenty-first Century
Looking at the Global Marketing
Environment
The International Trade System
Environment Political-Legal
Environment Cultural Environment
Deciding Whether to Go International
Deciding Which Markets to Enter
Deciding How to Enter the Market
Exporting Joint Venturing Direct
Investment
Deciding on the Global Marketing Program
Product Promotion Price
Distribution Channels
Deciding on the Global Marketing
Organization
Summary Key Terms Discussing the
Issues Applying the Concepts
References
COMPANY CASE 20: HARDEE'S: MARKETING IN
SOUTH KOREA
21.Marketing Serviees, Organizations, Persons,Places, and Ideas
Services Marketing
Nature and Characteristics of a Service
Marketing Strategies for Service Firms
International Services Marketing
Organization Marketing
Image Assessment
Control
Person Marketing
Place Marketing
Idea Marketing
Image Planning and
Summary Key Terms Discussing the
Issues Applying the Concepts
References
COMPANY CASE 21: CITY YEAR: RUNNINC A
NONPROFIT I.IKE A RUSINESS
22.Marketing and Society: Social Responsibility and Markering Ethics
Social Criticisms of Marketing
Marketing's Impact on Indivtdual
Consumers Marketing's Impact on Society
as a Whole Marketing's Impact on Other
Businesses
Citizen and Public Actions to Regulate
Marketing
Consumerism Envirohmentalism
Public Actions to Regulate Mdrketing
Business Actions toward Socially Responsible
Marketing
Enlightened Marketing Marketing
Ethics
Principles for Public Policy toward
Marketing
Summary Key Terms Discussing the
Issues Applying the Concepts
References
COMPANY CASE 12: WSTLE: UNDER fIRE
ACAJN
VIDEO CASE 9: MTV- THINK CLOBALLY, ACT
LOCALLY
COWREHFNSIVE CASE: VI: IORD: EXPORTINC,
TO JAPAN
Appendix 1: Marketing Arithmetic Al
Appendix 2: Careers in Marketing A7
Glossary Gl
Subject Index 11
Company/Brand/Name Index
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