Marketing: Real People, Real Choices / Edition 2

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Overview

This reader-friendly marketing book conveys timely and relevant material in a dynamic presentation of how marketing concepts are implemented, and what they mean in the marketplace. It introduces marketing from the perspective of real people making real marketing decisions at leading companies every day. Learners will come to understand that marketing is about creating value–for customers, for companies, and for society as a whole-and they will see how that is accomplished in the real world.

A five-part organization covers making marketing value decisions, identifying markets and understanding customers' needs for value, creating the value proposition, communicating the value proposition, and delivering the value proposition.

For individuals interested in a career in marketing.

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Product Details

  • ISBN-13: 9780130319593
  • Publisher: Pearson
  • Publication date: 1/28/2000
  • Edition description: REV
  • Edition number: 2

Table of Contents


Preface     xxiii
Making Marketing Value Decisions     3
Welcome to the World of Marketing: Creating and Delivering Value     3
Real people, real choices: Meet Bill Bieberbach, a Decision Maker at Ron Jon Surf Shop Inc.     3
Welcome to a Branded World     5
Welcome to Brand You     5
The Who and Where of Marketing     6
Marketing's Role in the Firm: Working Cross-Functionally     7
Where Do You Fit In? Careers in Marketing     7
The Value of Marketing     9
Marketing Is About Meeting Needs     9
Marketing Is About Creating Utility     10
Marketing Is About Exchange Relationships     11
When Did Marketing Begin? The Evolution of a Concept     12
The Production Era     13
The Selling Era     13
The Consumer Era     14
The New Era: Make Money and Act Ethically     14
Measuring value: Marketing Metrics     16
Measuring Value     16
What can be Marketed?     16
Consumer Goods and Services     17
Business-to-Business Goods and Services     17
Not-for-Profit Marketing     18
Idea, Place, and People Marketing     18
The Marketing of Value     19
Value from the Customer's Perspective     19
Value from the Seller's Perspective     20
Value from Society's Perspective     24
The Dark Side of Marketing     25
Marketing as a Process     26
Marketing Planning     26
Real people, other voices: Advice for Ron Jon Surf Shop Inc.     27
Marketing's Tools: The Marketing Mix     28
Real people, real choices: How It Worked Out at Ron Jon Surf Shop     30
Chapter Summary     31
Key Terms     32
Chapter Review     32
Real people, real surfers: exploring the web     34
Marketing Plan Exercise     34
Marketing in Action Case: Real Choices at Virgin Galactic     34
Strategic Market Planning: Capturing the Big Picture     37
Real people, real choices: Meet Rick Szatkowski, a Decision Maker at NeoMedia Technologies     37
Business Planning: Composing the Big Picture     40
The Three Levels of Business Planning     41
Strategic Planning: Framing the Picture     42
Define the Mission     42
Evaluate the Internal and External Environment      43
Set Organizational or SBU Objectives     45
Establish the Business Portfolio     46
Develop Growth Strategies     48
Measuring value: Marketing Metrics     48
Real people, other voices: Advice for Qode     50
Marketing Planning: Selecting the Camera Setting     51
Perform a Situation Analysis     51
Set Marketing Objectives     51
Develop Marketing Strategies     52
Implement and Control the Marketing Plan     54
Creating and Working with a Marketing Plan: Snapping the Picture     56
Make Your Life Easier!: Use the Marketing Planning Template     57
Operational Planning: Day-to-Day Execution of Marketing Plans     57
The Value of a Marketing Culture     57
Real people, real choices: How it Worked Out at Qode     58
Chapter Summary     60
Key Terms     60
Chapter Review     61
Real people, real surfers: exploring the web     62
Marketing Plan Exercise     62
Marketing in Action Case: Real Choices at NeoMedia Technologies     63
Thriving in the Marketing Environment: The World Is Flat     65
Real people, real choices: Meet Rick Goings, a Decision Maker at Tupperware Brands Corporation     65
Welcome to the New Era of Marketing     67
Doing Good: Ethical Behavior in the Marketplace     68
Business Ethics     68
Consumerism: People Fighting Back     69
Ethics in the Marketing Mix     71
Doing it Right: Promoting Social Responsibility     72
Serving the Environment     73
Serving Society: Cause Marketing     74
Serving the Community; Promoting Cultural Diversity     74
Playing on an International Stage: The Complicated World of Global Marketing     75
World Trade     75
Making the Decision to Go Global     76
Road Blocks at the Borders     77
The Global Marketing Environment     80
The Economic Environment     80
The Competitive Environment     82
The Technological Environment     84
The Political and Legal Environment     84
The Sociocultural Environment     87
Real people, real choices: Advice for Tupperware Corporation     89
Is the World Flat or Not? How "Global" Should a Global Marketing Strategy Be?     91
Company-Level Decisions: Choosing a Market-Entry Strategy      91
Born-Global Firms     93
Product-Level Decisions: Choosing a Marketing Mix Strategy     94
Standardization versus Localization     94
Real people, real choices: How it Worked Out at Tupperware     97
Chapter Summary     98
Key Terms     99
Chapter Review     100
Real people, real choices: exploring the web     102
Marketing Plan Exercise     102
Marketing in Action Case: Real Choices at New Balance     102
Understanding Consumers' Value Need     105
Marketing Research: Gathering, Analyzing, and Using Information     105
Real people, real choices: Meet Cindy Tungate, a Decision Maker at Plan-it Marketing     105
Knowledge is Power     107
The Marketing Information System     107
Marketing Decision Support Systems     111
Measuring value: Marketing Metrics     111
Searching for Gold: Data Mining     112
What Marketers Can Do with Data Mining     112
Steps in the Marketing Research Process     113
Define the Research Problem     113
Determine the Research Design     115
Choose the Method for Collecting Primary Data     120
Real people, other voices: Advice for Plan-it Marketing     122
Design the Sample     128
Collect the Data     129
Analyze and Interpret the Data     130
Prepare the Research Report     130
Real people, real choices: How it Worked Out at Plan-it Marketing     131
Chapter Summary     133
Key Terms     133
Chapter Review     134
Real people, real surfers: exploring the web     135
Marketing Plan Exercise     136
Marketing in Action Case: Real Choices at Acxiom     136
Consumer Behavior: How and Why People Buy     139
Real people, real choices: Meet Danny Grossman, a Decision Maker at Wild Planet     139
Decisions, Decisions     141
Steps in the Consumer Decision-Making Process     141
Extended Problem Solving versus Habitual Decision Making     141
Problem Recognition     143
Information Search     144
Evaluation of Alternatives     145
Product Choice     145
Measuring value: Marketing Metrics     145
Postpurchase Evaluation     146
Internal Influences on Consumers' Decisions     147
Perception      147
Motivation     149
Learning     150
Attitudes     151
Personality     152
Age Group     153
The Family Life Cycle     154
Lifestyle     154
Situational Influences on Consumers' Decisions     155
The Physical Environment     156
Time     157
Social Influences on Consumers' Decisions     157
Culture     157
Subculture     159
Social Class     159
Group Membership     160
Real people, other voices: Advice for wild Planet     161
Opinion Leaders     162
Gender Roles     162
Consumer-to-Consumer E-Commerce     163
Blogs     164
Real people, real choices: How it worked Out at Wild Planet     165
Chapter Summary     166
Key Terms     167
Chapter Review     167
Real people, real surfers: exploring the web     169
Marketing Plan Exercise     169
Marketing in Action Case: Real Choices at Facebook.com     170
Business-to-Business Markets: How and Why Organizations Buy     173
Real people, real choices: Meet Vicki Holt, a Decision Maker at PPG Industries     173
Business Markets: Buying and Selling When Stakes are High     175
Characteristics That Make a Difference in Business Markets     176
Multiple Buyers     177
Number of Customers     177
Size of Purchases     177
Geographic Concentration     177
Business-to-Business Demand     178
Derived Demand     178
Inelastic Demand     178
Fluctuating Demand     179
Joint Demand     179
Types of Business-to-Business Markets     179
Producers     180
Resellers     180
Organizations     180
North American Industry Classification System     181
The Nature of Business Buying     182
The Buying Situation     182
The Professional Buyer     184
The Buying Center     184
Real people, other voices: Advice for PPG Industries     185
The Business Buying Decision Process     186
Business-to-Business E-Commerce     190
Intranets, Extranets, and Private Exchanges     191
Security Threats     192
Real people, real choices: How It Worked Out at PPG Industries     193
Chapter Summary     194
Key Terms     194
Chapter Review     195
Real people, real surfers: exploring the web     197
Marketing Plan Exercise     197
Marketing in Action Case: Real Choices at Airbus     198
Sharpening the Focus: Target Marketing Strategies and Customer Relationship Management     201
Real people, real choices: Meet Que Gaskins, a Decision Maker at Reebok     201
Target Marketing Strategy: Selecting and Entering a Market     203
Segmentation     203
Segmenting Consumer Markets     204
Segmenting Business-to-Business Markets     216
Targeting     216
Evaluating Market Segments     216
Real people, other voices: Advice for Reebok     217
Developing Segment Profiles     218
Choosing a Targeting Strategy     218
Positioning     220
Developing a Positioning Strategy     220
Bringing a Product to Life: The Brand Personality     222
Customer Relationship Management: Toward a Segment of One     224
Four Steps in One-to-One Marketing     224
CRM: A New Perspective on an Old Problem      224
Characteristics of CRM     226
Real people, real choices: How it Worked Out at Reebok     228
Chapter Summary     229
Key Terms     229
Chapter Review     230
Real people, real surfers: exploring the web     231
Marketing Plan Exercise     232
Marketing in Action Case: Real Choices at Oracle     232
Creating the Value Preposition     235
Creating the Product     235
Real people, real choices: Meet Eleni Rossides, a Decision Maker at Black & Decker     235
Build a Better Mousetrap: The Value Proposition     237
Layers of the Product Concept     238
The Core Product     238
The Actual Product     239
The Augmented Product     239
Classifying Products     241
Classifying Goods: How Long Does the Product Last?     242
Classifying Goods: How Do Consumers Buy the Product? 242 Business-to-Business Products     244
"New and Improved!": The Process of Innovation     245
It's Important to Understand How Innovations Work     246 Types of Innovations     246
Developing New Products     249
Idea Generation      250
Product Concept Development and Screening     251
Marketing Strategy Development     253
Business Analysis     253
Real people, other voices: Advice for Black & Decker     254
Technical Development     254
Test Marketing     255
Commercialization     256
Adoption and Diffusion of New Products     256
Stages in Consumer Adoption of a New Product     257
The Diffusion of Innovations     260
How Organizational Differences Affect Adoption     263
Real people, real choices: How It Worked Out at Black & Decker     264
Chapter Summary     266
Key Terms     266
Chapter Review     267
Real people, real surfers: exploring the web     268
Marketing Plan Exercise     268
Marketing in Action Case: Real Choices at Kodak     269
Managing the Product     271
Real people, real choices: Meet Angela Daros, a Decision Maker at Grendha Shoes Corporation     271
Product Planning: Taking the Next Step     273
Using Product Objectives to Decide on a Product Strategy     273
Objectives and Strategies for Individual Products     274
Objectives and Strategies for Multiple Products     275
Quality as a Product Objective     278
Marketing Throughout the Product Life Cycle     281
The Introduction Stage     282
The Growth Stage     282
The Maturity Stage     283
The Decline Stage     284
Real people, other voices: Advice for Grendha Shoes     285
Creating Product Identity: Branding Decisions     286
What's in a Name (or a Symbol)?     286
The Importance of Branding     287
Branding Strategies     290
Measuring value: Marketing Metrics     291
Creating Product Identity: Packaging and Labeling Decisions     293
Packaging Functions     293
Designing Effective Packaging     294
Labeling Regulations     295
Organizing for Effective Product Management     295
Management of Existing Products     295
Organizing for New-Product Development     296
Real people, real choices: How It Worked Out at Grendha Shoes     297
Chapter Summary     298
Key Terms     299
Chapter Review     299
Real people, real surfers: exploring the web     301
Marketing Plan Exercise     301
Marketing in Action Case: Real Choices at Sony     302
Services and Other Intangibles: Marketing the Product That Isn't There     305
Real people, real choices: Meet Robyn Eichenholz, a Decision Maker at Universal Orlando     305
Marketing What Isn't There     307
Does Marketing Work for Intangibles?     307
What Is a Service?     309
Characteristics of Services     309
Classifying Services     312
Measuring value: Marketing Metrics     312
Core and Augmented Services     315
Services on the Internet     316
Measuring value: Marketing Metrics     316
The Service Encounter     317
Providing Quality Service     319
Service Quality Attributes     319
Measuring Service Quality     320
Strategic Issues in Service Quality     322
Measuring value: Marketing Metrics     322
The Future of Services     323
Real people, other voices: Advice for Universal Orlando     324
Marketing People, Places, and Ideas     325
Marketing People     325
Marketing Places     327
Marketing Ideas      327
Real people, real choices: How it Worked Out at Universal Orlando     328
Chapter Summary     329
Key Terms     330
Chapter Review     330
Real people, real surfers: exploring the web     331
Marketing Plan Exercise     332
Marketing in Action Case: Real Choices at XM Satellite Radio     332
Pricing the Product     335
Real people, real choices: Meet Danielle Blugrind, a Decision Maker at Taco Bell     335
"Yes, But What Does It Cost?"     337
Develop Pricing Objectives     338
Sales or Market Share Objectives     338
Profit Objectives     339
Competitive Effect Objectives     339
Customer Satisfaction Objectives     340
Image Enhancement Objectives     340
Estimate Demand     340
Demand Curves     340
Price Elasticity of Demand     343
Determine Costs     345
Types of Costs     345
Break-Even Analysis     347
Marginal Analysis     348
Evaluate the Pricing Environment     349
The Economy     350
The Competition     350
Consumer Trends      351
Choose a Pricing Strategy     351
Pricing Strategies Based on Cost     351
Pricing Strategies Based on Demand     352
Pricing Strategies Based on the Competition     354
Pricing Strategies Based on Customers' Needs     354
New-Product Pricing     355
Develop Pricing Tactics     356
Pricing for Individual Products     356
Pricing for Multiple Products     356
Distribution-Based Pricing     357
Discounting for Channel Members     357
Pricing and Electronic Commerce     358
Dynamic Pricing Strategies     359
Auctions     359
Pricing Advantages for Online Shoppers     359
Psychological Issues in Pricing     360
Buyers' Pricing Expectations     360
Psychological Pricing Strategies     361
Real people, other voices: Advice for Taco Bell     362
Legal and Ethical Considerations in Pricing     363
Deceptive Pricing Practices     363
Unfair Sales Acts     363
Illegal Business-to-Business Price Discrimination     364
Price-Fixing     364
Predatory Pricing     364
Real people, real choices: How It Worked Out at Taco Bell     365
Chapter Summary     366
Key Terms     367
Chapter Review     367
Real people, real surfers: exploring the web     369
Marketing Plan Exercise     369
Marketing in Action Case: Real Choices at True Religion Jeans     370
Communicating the Value Proposition     373
Catching the Buzz: Promotional Strategy and Integrated Marketing Communication     373
Real people, real choices: Meet Vince O'Brien, a Decision Maker at General Motors R*Works     373
Tailoring Marketing Communication to Customers     375
The Communication Model     377
Encoding by the Source (the Marketer)     377
The Message     378
The Medium     378
Decoding by the Receiver     379
Noise     379
Feedback     379
Marketing Communication Strategy and the Promotion Mix     380
Mass Appeals     380
Personal Appeals     381
Buzz Appeals     383
Real people, other voices: Advice for General Motors R*works     383
Integrated Marketing Communication     387
Measuring value: Marketing Metrics      387
Characteristics of IMC     388
IMC and Database Marketing     390
Developing the IMC Plan     391
Identify the Target Audiences     391
Establish the Communication Objectives     392
Determine and Allocate the Marketing Communication Budget     394
Design the Promotion Mix     396
Evaluate the Effectiveness of the Communication Program     397
Real people, real choices: How It Worked Out at General Motors R*Works     398
Chapter Summary     400
Key Terms     401
Chapter Review     401
Real people, real surfers: exploring the web     402
Marketing in Action Case: Real Choices at American Express     403
Advertising, Sales Promotion, and Public Relations     405
Real people, real choices: Meet Joe Chernov, a Decision Maker at BzzAgent     405
Advertising: The Image of Marketing     407
Types of Advertising     408
Who Creates Advertising?     409
Developing the Advertising Campaign     411
Identify the Target Audience     411
Establish Message and Budget Objectives     412
Design the Ads     412
Measuring value: Marketing Metrics      412
Pretest What the Ads Will Say     415
Choose the Media Type(s) and Media Schedule     415
Measuring value: Marketing Metrics     417
Measuring value: Marketing Metrics     419
Evaluate the Advertising     422
Sales Promotion     422
Measuring value: Marketing Metrics     422
Sales Promotion Directed toward the Trade     423
Sales Promotion Directed toward Consumers     425
Measuring value: Marketing Metrics     425
Public Relations     429
Objectives of Public Relations     430
Real people, real voices: Advice for BzzAgent     431
Planning a Public Relations Campaign     432
Public Relations Activities     432
Real people, real choices: How It Worked Out at BzzAgent     436
Chapter Summary     437
Key Terms     438
Chapter Review     438
Real people, real surfers: exploring the web     440
Marketing Plan Exercise     440
Marketing in Action Case: Real Choices at Amazon.com     440
Personal Selling, Sales Management, and Direct Marketing     443
Real people, real choices: Meet Esther Ferre, A Decision Maker at IBM     443
Advertising is Not the Only Game in Town!     445
Personal Selling     445
The Role of Personal Selling     446
Technology and Personal Selling     447
Measuring value: Marketing Metrics     448
Types of Sales Jobs     448
Approaches to Personal Selling     449
The Creative Selling Process     449
Sales Management     453
Setting Sales Force Objectives     453
Creating a Sales Force Strategy     453
Recruiting, Training, and Rewarding the Sales Force     454
Real people, other voices: Advice for IBM     455
Evaluating the Sales Force     456
Direct Marketing     457
Measuring value: Marketing Metrics     457
Mail Order     457
Direct-Response Advertising     458
M-Commerce     459
Real people, real choices: How It Worked Out at IBM     460
Chapter Summary     460
Key Terms     461
Chapter Review     461
Real people, real surfers: exploring the web     462
Marketing Plan Exercise     462
Marketing in Action Case: Real Choices at Eli Lilly     462
Delivering the Value Proposition     465
Delivering Value Through Supply Chain Management: Channels of Distribution and Logistics     465
Real people, real choices: Meet Jim Lawrence, a Decision Maker at Darden Restaurants     465
Place: The Final Frontier     467
The Value Chain     468
Links in the Supply Chain     469
The Importance of Distribution: You Can't Sell What Isn't There!     471
Functions of Distribution Channels     471
The Internet in the Distribution Channel     473
Real people, other voices: Advice for Darden Restaurants     474
Channel Composition: Types of Wholesaling Intermediaries     475
Independent Intermediaries     475
Manufacturer-Owned Intermediaries     478
Types of Distribution Channels     478
Consumer Channels     480
Business-to-Business Channels     481
Dual Distribution Systens     481
Hybrid Marketing Systens     482
Planning a Channel Strategy     482
Develop Distribution Objectives     482
Evaluate Internal and External Environmental Influences 483 Step 3 Choose a Distribution Strategy     484
Develop Distribution Tactics     487
Distribution Channels and the Marketing Mix     489
Logistics: Implementing the Supply Chain     489
The Lowdown on Logistics     490
Logistics Functions     490
Measuring value: Marketing Metrics     493
Real people, real choices: How It Worked Out at Darden Restaurants     494
Chapter Summary     495
Key Terms     496
Chapter Review     496
Real people, real surfers: exploring the web     497
Marketing Plan Exercise     497
Marketing in Action Case: Real Choices at Procter & Gamble     498
Retailing: Bricks and Clicks     501
Real people, real choices: Meet Stan Clark, a Decision Maker at Eskimo Joe's     501
Retailing: Special Delivery     503
Retailing: A mixed (Shopping) Bag     503
The Evolution of Retailing     504
Real people, other voices: Advice for Eskimo Joe's     506
The Evolution Continues; What's "In Store" for the Future?     507
From Mom-and-Pop to Super Wal-Mart: Classifying Retail Stores     510
Classifying Retailers by What They Sell     510
Classifying Retailers by Level of Service      511
Measuring value: Marketing Metrics     511
Classifying Retailers by Merchandise Selection     511
Nonstore Retailing     516
Direct Selling     516
Automatic Vending     517
B2C E-Commerce     518
Benefits of B2C E-Commerce     518
Limitations of B2C E-Commerce     520
Measuring value: Marketing Metrics     521
Measuring value: Marketing Metrics     522
B2C's Effect on the Future of Retailing     522
Developing a Store Positioning Strategy: Retailing as Theater     522
Store Image     524
Building the Theater: Store Location     527
Real people, real choices: How it Worked Out at Eskimo Joe's     530
Chapter Summary     531
Key Terms     531
Chapter Review     532
Real people, real surfers: exploring the web     533
Marketing Plan Exercise     534
Marketing in Action Case: Real Choices at IKEA     534
Qode in Action: Implementing a Marketing Plan     537
Sample Marketing Plan: The S&S Smoothie Company     543
Marketing Math     555
Notes     565
Glossary      579
Photo Credits     594
Index     595
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