Marketing

Preface

1. The Marketing Process: Basic Concepts

Overview

Introducing Merton Electronics

Marketing Concepts That Support Marketing Plans

Market Focus 1-1 Titanic: The Amazing Movie

Eight Basic Marketing Functions

Evolution of Marketing: Self-Sufficiency to Centralization

Evolution of Marketing Philosophies: Production to Societal

International Perspective

Global Focus 1-1 Domino's Pizza Changes Its Mix

Chapter Perspective

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2. The International Market: Forces and Opportunities

Overview

Why International Trade Grows

The IMF and World Bank

Benefits of Entering Foreign Markets

Global Focus 2-1 The Free Market at Work: From Dirty Hands to Skilled Hands

Global Focus 2-2 Exports as a Hedge Against Flat U.S. Market

Difficulties in Entering Foreign Markets

The Role of the United States in Global Trade

Reducing the Trade Deficit Will Increase GDP

Reducing the Trade Deficit Won't Be Easy

Regaining the Competitive Edge

A Strategy for Reducing the Trade Deficit

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3. Marketing Management and Strategic Marketing Planning

Overview

Marketing Management Creates Satisfactory Exchanges

What Marketing Managers Do

Market Focus 3-1 Strategic Planning at Wainwright Industries Earns the Baldrige Award

Creating and Maintaining Demand Levels

Strategic Marketing Planning Manages Demand

Business-Level Strategic Planning

International Perspective

Global Focus 3-1 Formulating a Successful Export Strategy

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4. The Marketing Environment

Overview

Environmental Variables

How Technology Affects Environmental Variables

First Step: Scan Internal and External Environments

Market Focus 4-1 AT&T Responds to Full-Scale Environmental Change

Macro/Microenvironments

The Macroenvironment: Threats and Opportunities

The Demographic Environment

The Economic Environment

The Social-Cultural Environment

The Political-Legal Environment

The Technological Environment

The Competitive Environment

The Microenvironment: Threats and Opportunities

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5. The International Marketing Environment

Overview

Global Environments Affect Strategic Planning

Economic Considerations

Political-Legal Considerations

Home-Country Trade Influences

Global Focus 5-1 Export Controls Hurt U.S. Firms

Host-Country Influences on Trade

Supranational Influences on Trade

Global Legal Systems Affect Business Decisions

Cultural Influences on Global Markets

Global Focus 5-2 It Helps to Know the Negotiating Context

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6. Decision Support and Strategic Planning/Management Systems

Overview

Support Systems That Inform Other Systems

How DSSs Evolved

The Early Stage: Too Much Information

The First MIS

Market Focus 6-1 The Global Spyglass

Transforming MISs into DSSs

DSS Applications

Strategic Planning/Management Systems

The Balanced Scorecard

Market Focus 6-2 Improving Chrysler Dealer Quality: A Tale of Two Programs

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7. Marketing Systems

Overview

Marketing Processes and Systems

Systems Theory Explains Marketing Processes

Four Marketing Systems

The Organizational System Harmonizes Marketing Efforts

Market Focus 7-1 Hewlett-Packard Organizes for Growth

The Planning System Helps Define and Exploit Opportunities

The Control System Keeps Plans On Track

International Perspective

Global Focus 7-1 Whirlpool Succeeds Abroad

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8. Marketing Research 1: Problems and Processes

Overview

What Marketing Research Does

Who Does Marketing Research?

Product/Market MR Applications

MR Applications Differ by Industry and Roles

Validity and Reliability

Key MR Constraints: Subjects, Instruments, and Controls

The MR Process: Formulate, Compile, Analyze, Recommend

Define Research Problem and Objectives

Conduct a Situation Analysis

Design a Research Plan

International Perspective

Global Focus 8-1 How Hewlett-Packard Finds Market Opportunities

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9. Marketing Research: Tools and Techniques

Overview

Exploratory and Conclusive Research

Conclusive and Exploratory Research Work Together

Designing the Research Plan

Collecting, Processing, and Applying Primary Data

Constructing the Questionnaire

Interpreting Data with Statistics and Experiments

Coding and Tabulating Data

Generating Conclusions and Making Recommendations

Implementation and Feedback

International Perspective

Global Focus 9-1 Adjusting Marketing Research to Market Conditions

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10. Consumer Behavior

Overview

Understanding Consumer Behavior Helps Relate and Communicate

Consumer Behavior Defines Markets, Marketing Mixes, and Messages

A Model of Consumer Behavior

Stimuli That Influence Consumer Behavior

How Interpersonal Variables Influence Consumer Behavior

How Reference Groups Influence Consumer Behavior

How Intrapersonal Variables Influence Consumer Behavior

How Buyers Make Decisions

Market Focus 10-1 The Consumer Decision Process Guides Rogaine's Promotion

International Perspective

Global Focus 10-1 Ostrich Rancher Looks to Feather His Nest in Overseas Markets

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11. Organizational Markets and Buying Behavior

Overview

Components of the Organizational Market

The Industrial Producer Market

SIC Categories Define Industries and Trades

Industrial Market Demand Patterns

The Industrial Buying Process

Market Focus 11-1 Building Markets by Building Partnerships

The Reseller Market

The Government Market

The Institutional Market

International Perspective

Stages of Economic Development

Key Export Industries Generate Jobs and Growth

Global Focus 11-1 Sivam: Case Study in Successful Advocacy

Demand Patterns in Global Markets

Purchasing Policies and Practices in Global Markets

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12. Market Segmentation, Targeting, and Positioning Strategies

Overview

Target Marketing Improves Market Planning

Segmentation Strategy Options

Criteria That Define Worthwhile Segments

Bases for Segmenting Markets

Identifying, Defining, and Prioritizing Segments

Choosing a Segmentation Strategy in the Consumer Market

Organizational Market Segmentation Strategies

Market Positioning: Find a Niche

International Perspective

Global Focus 12-1 Nonalcoholic Wine Exporter Toasts World Markets

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13. Measuring Market and Sales Potential

Overview

Forecasts Project Market and Sales Potential

Forecasts Help Plan and Achieve Marketing Goals

Forecasting Dimensions: Time, Space, and Products

Forecasting Criteria: Money, Authority, Desire, Access

Relationships Between Marketing Effort and Demand

The Three-Step Direct Forecasting Approach

Organizational Market Forecasting Strategies

Market Focus 13-1 Building Forecasts and Market Plans on Zip Codes and Census Data

Judgmental Forecasting Techniques

International Perspective

Global Focus 13-1 Analogy Forecasts Help Build Lakewood's World Market for Chopsticks

Gap Analysis Scans, Compares

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14. Relationship Marketing and Integrated Marketing Communications

Overview

RM and IMC Work Together

RM's Focus: Long-Term Loyalty

Market Focus 14-1 Hilton's CRM System Builds Customer Loyalty and Profits

Integrated Marketing Communications

Market Focus 14-2 Gilette Introduces the Fusion Shaving System

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15. Product Planning I: Product/Market Growth Strategies

Overview

Products Define Customers, Competitors, and Marketing Mix

Products Defined: Bundles of Satisfactions

Consumer/Industrial Products

Segmentation Implications

Product Life Cycles Help Plan Strategies

New Products: Anything New

Organizing for New Product Development

International Perspective

Global Product Benefits

Standardized vs. Customized Plans

Global Focus 15-1 When Product Plans Go Awry

Product/Market Adaptation Strategies

The Fast-Growing Global Services Sector

International Product Life Cycles Help Plan Strategies

Introducing New Products into Global Markets

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16. Product Planning II: Product Design and Development Strategies

Overview

Product Planning Meets Customer Needs, Company Goals

Product Planning in Context

Product Design

Product Brands

Quality Levels

Overlooked Service Opportunities

Market Focus 16-1 The Increasing Importance of Service in Competitive Markets

Customer Service Needs

Product Packaging Decisions

Labeling Decisions Supplement Packaging Decisions

Line and Mix Strategies

International Perspective

Product Design in Global Markets

Global Focus 16-1 Learning from Product Design Successes and Failures

Branding in Global Markets

Product Counterfeiting Threatens Global Trade

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17. Establishing Pricing Objectives and Policies

Overview

Pricing Objectives Define Policies and Strategies

Prices Influence Sales, Profits, and Marketing Mixes

Prices Support the Marketing Mix

Pricing as a Marketing Function

Pricing Objectives, Policies, Strategies

Market Focus 17-1 How Customer Perceptions Define Quality and Price

How Political/Legal Climates Affect Pricing

International Perspective

How Cost Considerations Affect Global Pricing Decisions

Transfer Pricing and Tax-Tariffs

Global Focus 17-1 Penalizing Transfer Pricing Abuses: Actions and Reactions

Currency Valuation Threats and Opportunities

Escrow Requirements Tie Up Earning Potential

Dumping: Hard to Prove

Pricing Legislation

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18. Formulating Pricing Strategies and Tactics

Overview

Pricing Strategies Help Achieve Marketing Goals

Pricing Options Respond to Market Challenges

Cost-Based Strategies: ROI, Markups, and Breakevens

Oligopolistic Strategies: Copycats and Kinked Demand

Demand-Based Price Strategies

Price Discrimination Favors Different Segments

Promotional Pricing Attracts Market Segments

Expected Profit Strategies Control Bidding

Product Line Pricing Strategies

Price Modification Strategies

Price Change Strategies

Anticipating Price Change Reactions

Addressing Global Pricing Problems

Global Focus 18-1 Different Companies, Different Price Strategies

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19. Promotion Planning I: Indirect Promotion

Overview

Promotion Mix Elements Inform, Persuade, or Remind

What Promotional People Do

A Model of the Communication Process

Planning Productive Promotion Programs

International Perspective

Advertising Around the World

Global Promotion Planning Problems

Guidelines for Successful Global Promotions

Global Focus 19-1 Overseas Trade Shows Enhance Direct Selling

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20. Promotion Planning II: Sales and Sales Management

Overview

Personal Selling: Expensive and Profitable

Ultimate Goal: Ultimate Sale

Anatomy of a Sales Call

Types of Selling

Careers in Selling

Sales Managers Manage People

Salesforce Design

Salesforce Management

Salesforce Automation

International Perspective

Global Focus 20-1 Block Those Language Blunders!

Sales Management Challenges in Global Markets

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21. Marketing on the Internet

Overview

e-Business to e-Marketing to B2B, B2C, and B2G

Technology Grows e-Commerce

Modern e-Market Strategies

Internet Marketing Aids Strategic Planning

Market Focus 21-1 How to Buy a Car over the Internet

Internet Sites Sell, Service, and Inform

The Well-Designed Website

Internet Marketing Builds Markets

Benefits of Internet Marketing

International Perspective

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22. Distribution Planning I: Channel Strategy

Overview

Distribution Planning Moves Goods Through Channels

Channels Perform Marketing Functions

Channel Networks in Consumer and Industrial Markets

Channel Flows Influence Channel Choice

Retailers and Wholesalers

Retailers Defined by Ownership

Retailers Defined by Services and Facilities

Types of Wholesalers

Retailer and Wholesaler Marketing Decisions

VMS Structures Aid Channel Cooperation

VMS Alternatives: Horizontal and Multichannel Systems

Good Distributor Agreements Create Good Communications

International Perspective

Global Distribution Systems

Global Channel Strategies

Global Focus 22-1 Direct and Indirect Selling: Exporters Go Both Ways

Finding Distributors in International Markets

Managing Channels in International Markets

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23. Distribution Planning II: Logistics Systems

Overview

Logistics: Getting Products to Customers

Market Focus 23-1 Distributors as Strategic Business Partners

Total Systems and Total Costs Define Logistics Goals

Planning Cost-Efficient Logistics Systems

Tradeoffs Among Logistics Functions Optimize Costs

International Perspective

Transportation Constraints

Transportation Modes

Storage Facility Availability

Order Processing in Global Markets

Coordinating Transportation

Global Focus 23-1 How BLS Simplified NSC's Delivery Problem

Managing the Logistics Function

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Glossary

Index