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Part Ⅰ UNDERSTANDING MARKETING AND THE MARKETING PROCESS2

CHAPTER 1: Marketing: Managing Profitable Customer Relationships3

What Is Marketing?5

Marketing Defined5

Needs, Wants, and Demands6

Marketing Offers—Products, Services, and Experiences6

Value and Satisfaction9

Exchange, Transactions, and Relationships9

Markets10

Marketing10

Marketing Management11

Customer and Demand Management11

Marketing Management Orientations12

Customer Relationship Management15

Attracting, Retaining, and Growing Customers17

Building Customer Relationships and Customer Equity20

Marketing Challenges in the New, "Connected" Millennium22

Technologies for Connecting23

Connecting with Customers25

Connecting with Marketing Partners27

Connecting with the World Around Us28

The New, Connected World of Marketing32

Looking Back: Reviewing the Concepts33

Reviewing the Key Terms34

Discussing the Concepts34

Applying the Concepts34

Digital Connections35

VIDEO SHORT: SATMETRIX: HELPING TO BUILD CUSTOMER RELATIONSHIPS35

COMPANY CASE: BOTOX: ALMOST TROUBLE-FREE NEW FACES36

CHAPTER 2: Company and Marketing Strategy: Partnering to Build Customer Relationships39

Strategic Planning41

Defining a Market-Oriented Mission41

Setting Company Objectives and Goals45

Designing the Business Portfolio45

Strategic Planning and Small Businesses50

Planning Marketing: Partnering to Build Customer Relationships51

Partnering with Others in the Company52

Partnering with Others in the Marketing System53

The Marketing Process53

Relationships with Consumers54

Marketing Strategies for Competitive Advantage56

Developing the Marketing Mix56

Managing the Marketing Effort59

Marketing Analysis59

Marketing Planning59

Marketing Implementation59

Marketing Department Organization61

Marketing Control62

The Marketing Environment62

Looking Back: Reviewing the Concepts63

Reviewing the Key Terms64

Discussing the Concepts65

Applying the Concepts65

Digital Connections65

VIDEO SHORT: NERVEWIRE: STRATEGIC PLANNING FOR E-COMMERCE66

COMPANY CASE: TRAP-EASE AMERICA: THE BIG CHEESE OF MOUSETRAPS66

CHAPTER 3: Marketing in the Digital Age: Making New Customer Connections69

Major Forces Shaping the Internet Age71

Digitalization and Connectivity71

The Internet Explosion71

New Types of Intermediaries72

Customization and Customerization72

Marketing Strategy in the New Digital Age73

E-Business, E-Commerce, and E-Marketing in the New Digital Age74

Benefits to Buyers74

Benefits to Sellers75

E-Commerce Domains76

B2C (Business to Consumer)76

B2B (Business to Business)79

C2C (Consumer to Consumer)81

C2B (Consumer to Business)82

Conducting E-Commerce82

Click-Only Versus Click-and-Mortar E-Marketers82

Setting Up an E-Marketing Presence86

The Promise and Challenges of E-Commerce94

The Continuing Promise of E-Commerce96

The Web's Darker Side96

Looking Back: Reviewing the Concepts98

Reviewing the Key Terms99

Discussing the Concepts99

Applying the Concepts100

Digital Connections100

VIDEO SHORT: FINDWHAT.COM:SEARCHING FOR SUCCESS101

COMPANY CASE: EBAY: CONNECTING IN CHINA101

CASE PILOT: UNDERSTANDING MARKETING AND MARKETING PROCESSES103

Part Ⅱ DEVELOPING MARKETING OPPORTUNITIES AND STRATEGIES104

CHAPTER 4: The Marketing Environment105

The Company's Microenvironment107

The Company108

Suppliers108

Marketing Intermediaries108

Customers109

Competitors109

Publics110

The Company's Macroenvironment111

Demographic Environment111

Economic Environment120

Natural Environment123

Technological Environment124

Political Environment125

Cultural Environment127

Responding to the Marketing Environment132

Looking Back: Reviewing the Concepts134

Reviewing the Key Terms135

Discussing the Concepts135

Applying the Concepts135

Digital Connections136

VIDEO SHORT: STRIKE HOLDINGS: REDISCOVERING THE PAST137

COMPANY CASE: THE PRIUS: LEADING A WAVE OF HYBRIDS137

CHAPTER 5: Managing Marketing information141

Assessing Marketing Information Needs143

Developing Marketing Information144

Internal Data144

Marketing Intelligence145

Marketing Research147

Analyzing Marketing Information161

Customer Relationship Management (CRM)161

Distributing and Using Marketing Information163

Other Marketing Information Considerations164

Marketing Research in Small Businesses and Not-for-Profit Organizations164

International Marketing Research166

Public Policy and Ethics in Marketing Research167

Looking Back: Reviewing the Concepts169

Reviewing the Key Terms170

Discussing the Concepts171

Applying the Concepts171

Digital Connections172

VIDEO SHORT: UNICA: BUILDING BETTER CUSTOMER RELATIONSHIPS172

COMPANY CASE: ENTERPRISE RENT-A-CAR: MEASURING SERVICE QUALITY173

CHAPTER 6: Consumer Markets and Consumer Buyer Behavior177

Model of Consumer Behavior178

Characteristics Affecting Consumer Behavior179

Cultural Factors179

Social Factors183

Personal Factors186

Psychological Factors191

Types of Buying-Decision Behavior197

Complex Buying Behavior197

Dissonance-Reducing Buying Behavior197

Habitual Buying Behavior198

Variety-Seeking Buying Behavior198

The Buyer Decision Process198

Need Recognition199

Information Search199

Evaluation of Alternatives200

Purchase Decision200

Postpurchase Behavior201

The Buyer Decision Process for New Products201

Stages in the Adoption Process203

Individual Differences in Innovativeness203

Influence of Product Characteristics on Rate of Adoption204

Consumer Behavior Across International Borders205

Looking Back: Reviewing the Concepts206

Reviewing the Key Terms207

Discussing the Concepts207

Applying the Concepts207

Digital Connections208

VIDEO SHORT: ZOOTS: DRY CLEANING —YOUR WAY209

COMPANY CASE: THE WHIRLPOOL DUET: A SOAP OPERA FOR KIDS?209

CHAPTER 7: Business Markets and Business Buyer Behavior213

Business Markets214

Characteristics of Business Markets214

A Model of Business Buyer Behavior217

Business Buyer Behavior217

Major Types of Buying Situations219

Participants in the Business Buying Process220

Major Influences on Business Buyers221

The Business Buying Process224

Business Buying on the Internet227

Institutional and Government Markets228

Institutional Markets228

Government Markets229

Looking Back: Reviewing the Concepts231

Reviewing the Key Terms232

Discussing the Concepts232

Applying the Concepts232

Digital Connections233

VIDEO SHORT: WHEREOWARE: CONNECTING SELLERS TO BUSINESS BUYERS233

COMPANY CASE: EMERSON PROCESS MANAGEMENT: ACCELERATING ON THE INTERNET234

CHAPTER 8: Segmentation, Targeting, and Positioning: Building the Right Relationships with the Right Customers237

Market Segmentation239

Segmenting Consumer Markets239

Segmenting Business Markets248

Segmenting International Markets248

Requirements for Effective Segmentation250

Target Marketing251

Evaluating Market Segments251

Selecting Target Market Segments251

Socially Responsible Target Marketing257

Positioning for Competitive Advantage259

Choosing a Positioning Strategy259

Communicating and Delivering the Chosen Position267

Looking Back: Reviewing the Concepts268

Reviewing the Key Terms269

Discussing the Concepts269

Applying the Concepts269

Digital Connections270

VIDEO SHORT: SMARTERKIDS.COM: SMARTER TARGETING270

COMPANY CASE: GM: DOWNSIZING THE HUMMER271

CASE PILOT: DEVELOPING MARKETING OPPORTUNITIES AND STRATEGIES273

Part Ⅲ DEVELOPING THE MARKETING MIX274

CHAPTER 9: Product, Services, and Branding Strategies275

What Is a Product?276

Products, Services, and Experiences277

Levels of Product and Services279

Product and Service Classifications280

Product and Service Decisions283

Individual Product and Service Decisions283

Product Line Decisions289

Product Mix Decisions290

Branding Strategy: Building Strong Brands291

Brand Equity291

Building Strong Brands292

Managing Brands297

Services Marketing298

The Nature and Characteristics of a Service299

Marketing Strategies for Service Firms299

Additional Product Considerations304

Product Decisions and Social Responsibility304

International Product and Services Marketing304

Looking Back: Reviewing the Concepts306

Reviewing the Key Terms307

Discussing the Concepts307

Applying the Concepts308

Digital Connections308

VIDEO SHORT: SIEGELGALE: GREAT BRANDS ON A COMPELLING PROMISE309

COMPANY CASE: STARBUCKS: BREWING A WORLDWIDE EXPERIENCE310

CHAPTER 10: New-Product Development and Product Life-Cycle Strategies313

New-Product Development Strategy315

Idea Generation315

Idea Screening320

Concept Development and Testing320

Marketing Strategy Development322

Business Analysis323

Product Development323

Test Marketing324

Commercialization327

Organizing for New-Product Development327

Product Life-Cycle Strategies328

Introduction Stage332

Growth Stage332

Maturity Stage333

Decline Stage335

Looking Back: Reviewing the Concepts337

Reviewing the Key Terms338

Discussing the Concepts338

Applying the Concepts339

Digital Connections339

VIDEO SHORT: SENSABLE TECHNOLOGIES: DESIGNING PRODUCTS DIGITALLY340

COMPANY CASE: RED BULL: WAKING A NEW MARKET340

CHAPTER 11: Pricing Considerations and Approaches343

What Is a Price?345

Factors to Consider When Setting Prices347

Internal Factors Affecting Pricing Decisions347

External Factors Affecting Pricing Decisions352

General Pricing Approaches357

Cost-Based Pricing357

Value-Based Pricing359

Competition-Based Pricing361

Looking Back: Reviewing the Concepts363

Reviewing the Key Terms364

Discussing the Concepts364

Applying the Concepts364

Digital Connections365

VIDEO SHORT: METREO: AUTOMATING PRICING?365

COMPANY CASE: DVDS: LIEBERFARBIAN ECONOMICS?366

CHAPTER 12: Pricing Strategies369

New-Product Pricing Strategies370

Market-Skimming Pricing371

Market-Penetration Pricing371

Product Mix Pricing Strategies372

Product Line Pricing372

Optional-Product Pricing372

Captive-Product Pricing373

By-Product Pricing374

Product Bundle Pricing375

Price Adjustment Strategies375

Discount and Allowance Pricing375

Segmented Pricing376

Psychological Pricing377

Promotional Pricing378

Geographical Pricing379

International Pricing382

Price Changes383

Initiating Price Changes383

Responding to Price Changes385

Public Policy and Pricing386

Pricing Within Channel Levels387

Pricing Across Channel Levels390

Looking Back: Reviewing the Concepts391

Reviewing the Key Terms392

Discussing the Concepts392

Applying the Concepts393

Digital Connections393

VIDEO SHORT: SITE 59: ADDING VALUE FOR CUSTOMERS THROUGH PRICING394

COMPANY CASE: SOUTHEAST BANK: FREE CHECKING?394

CHAPTER 13: Marketing Channels and Supply Chain Management397

Supply Chains and the Value Delivery Network399

The Nature and Importance of Marketing Channels400

How Channel Members Add Value401

Number of Channel Levels402

Channel Behavior and Organization403

Channel Behavior403

Vertical Marketing Systems405

Horizontal Marketing Systems407

Multichannel Distribution Systems408

Changing Channel Organization408

Channel Design Decisions409

Analyzing Consumer Needs409

Setting Channel Objectives411

Identifying Major Alternatives412

Evaluating the Major Alternatives414

Designing International Distribution Channels414

Channel Management Decisions415

Selecting Channel Members415

Managing and Motivating Channel Members416

Evaluating Channel Members418

Public Policy and Distribution Decisions418

Marketing Logistics and Supply Chain Management419

The Nature and Importance of Marketing Logistics419

Goals of the Logistics System420

Major Logistics Functions420

Integrated Logistics Management423

Looking Back: Reviewing the Concepts428

Reviewing the Key Terms429

Discussing the Concepts429

Applying the Concepts429

Digital Connections430

VIDEO SHORT: CELARIX: WEB-BASED LOGISTICS MANAGEMENT431

COMPANY CASE: STAPLES, INC.: REVISING THE STRATEGY431

CHAPTER 14: Retailing and Wholesaling435

Retailing436

Types of Retailers436

Retailer Marketing Decisions441

The Future of Retailing447

Wholesaling453

Types of Wholesalers455

Wholesaler Marketing Decisions457

Trends in Wholesaling458

Looking Back: Reviewing the Concepts459

Reviewing the Key Terms460

Discussing the Concepts460

Applying the Concepts461

Digital Connections461

VIDEO SHORT: ACCORDIA: BALANCING TRADITIONAL AND ONLINE RETAILING462

COMPANY CASE: DELIA'S: SEARCHING FOR THE RIGHT WAY TO CONNECT WITH TEENS462

CHAPTER 15: Integrated Marketing Communication Strategy465

The Marketing Communications Mix467

Integrated Marketing Communications467

The Changing Communications Environment467

The Need for Integrated Marketing Communications468

A View of the Communication Process471

Steps in Developing Effective Communication472

Identifying the Target Audience472

Determining the Communication Objectives472

Designing a Message473

Choosing Media476

Selecting the Message Source479

Collecting Feedback479

Setting the Total Promotion Budget and Mix480

Setting the Total Promotion Budget480

Setting the Overall Promotion Mix481

Integrating the Promotion Mix485

Socially Responsible Marketing Communication486

Advertising and Sales Promotion486

Personal Selling486

Looking Back: Reviewing the Concepts487

Reviewing the Key Terms488

Discussing the Concepts488

Applying the Concepts489

Digital Connections489

VIDEO SHORT: SCHWARTZ COMMUNICATIONS: SPREADING THE WORD THROUGH PUBLIC RELATIONS490

COMPANY CASE: PROCTER ＆ GAMBLE: FEELING THE HEAT490

CHAPTER 16: Advertising, Sales Promotion, and Public Relations493

Advertising494

Setting Advertising Objectives494

Setting the Advertising Budget496

Developing Advertising Strategy497

Evaluating Advertising506

Other Advertising Considerations507

Sales Promotion509

Rapid Growth of Sales Promotion510

Sales Promotion Objectives510

Major Sales Promotion Tools510

Developing the Sales Promotion Program514

Public Relations515

The Role and Impact of Public Relations515

Major Public Relations Tools517

Looking Back: Reviewing the Concepts519

Reviewing the Key Terms519

Discussing the Concepts519

Applying the Concepts520

Digital Connections521

VIDEO SHORT: POTTY PERFECTION: CREATING A CUSTOMER EXPERIENCE521

COMPANY CASE: PEPSI: PROMOTING NOTHING522

CHAPTER 17: Personal Selling and Direct Marketing525

Personal Selling526

The Nature of Personal Selling526

The Role of the Sales Force527

Managing the Sales Force528

Designing Sales Force Strategy and Structure528

Recruiting and Selecting Salespeople533

Training Salespeople534

Compensating Salespeople537

Supervising Salespeople537

Evaluating Salespeople539

The Personal Selling Process540

Steps in the Selling Process540

Personal Selling and Customer Relationship Management543

Direct Marketing543

The New Direct-Marketing Model543

Benefits and Growth of Direct Marketing544

Customer Databases and Direct Marketing544

Forms of Direct Marketing548

Integrated Direct Marketing554

Public Policy and Ethical Issues in Direct Marketing555

Looking Back: Reviewing the Concepts557

Reviewing the Key Terms558

Discussing the Concepts559

Applying the Concepts559

Digital Connections560

VIDEO SHORT: MARKETSOPT: TURNING PROSPECTS INTO CUSTOMERS560

COMPANY CASE: JEFFERSON-PILOT FINANCIAL: GROWING THE SALES FORCE561

CASE PILOT: DEVELOPING THE MARKETING MIX563