PRINCIPLES AND PRACTICE OF MARKETING David Jobber and Fiona Ellis-Chadwick NINTH EDITION NINTH EDITION PRINCIPLES AND PRACTICE OF MARKETING DAVID JOBBER AND FIONA ELLIS-CHADWICK NIINTH EDITION PRINCIPLES AND PRACTICE OF MARKETING DAVID JOBBER AND FIONA ELLIS-CHADWICK Me Graw H ill P rin ciples and Practice o f Marketing, N in th E d itio n David Jobber and Fiona Ellis-Chadwick ISBN-13 9781526847232 ISBN-10 152684723X Published by McGraw-Hill Education 338 Euston Road, London, NW1 3BH Telephone: +44 (0) 203 429 3400 Website: www.mheducation.co.uk B ritish L ibrary C ataloguing in Publication Data A catalogue record for this book is available from the British Library Library o f C ongress C ataloguing in Publication Data The Library of Congress data for this book has been applied for from the Library of Congress Portfolio Manager: Rosie Churchill Content Developer: Nicola Cupit Content Product Manager: Ali Davis Marketing Manager: Katarzyna Rutkowska Text design by Kamae Design Cover design by Adam Renvoize Published by McGraw-Hill Education Copyright © 2020 by McGraw-Hill Education All rights reserved No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning Fictitious names of companies, products, people, characters and/or data that may be used herein (in case studies or in examples) are not intended to represent any real individual, company, product or event ISBN-13 9781526847232 ISBN-10 152684723X eISBN-13 9781526847249 © 2020 Exclusive rights by McGraw-Hill Education for manufacture and export This book cannot be re-exported from the country to which it is sold by McGraw-Hill Education Printed and bound in Great Britain by Bell & Bain Ltd, Glasgow Dedication To Jackson, River and Rosie briet Iable ot Contents Detailed Table of Contents Vignettes Case Guide Preface Guided Tour Technology to Enhance Learning and Teaching About the Authors Acknowledgements vii xi xiii xvii xix xxii xxvii xxviii PART F u n d a m e n t a ls o f M a r k e tin g 1 Marketing and the Organization The Marketing Environment Consum er Behaviour B usiness-to-Business Marketing io q Marketing, Ethics and Society 13q 37 73 Marketing Analytics and Research 17 Market Segmentation and Positioning 03 PART C r e a t in g C u s t o m e r V a lu e PART Communicating and Delivering Customer Value 405 13 Integrated Marketing Com m unications 407 14 M ass Marketing Com m unications 441 15 Direct Marketing Com m unications 481 16 Digital Marketing and Social Media 5iq 17 Distribution and Channel M anagem ent 555 23q Value Through Brands 41 q Value Through Services 27q 10 Value Through Relationships 311 11 Value Through Innovation 341 12 Value Through Pricing 371 PART Marketing Planning and Strategg 5R3 18 Marketing Planning: An Overview of Strategic A n alysis and D ecision­ making 5q5 iq A n alysing Com petitors and Creating a Competitive Advantage 27 20 Product Strategy: Lifecycle, Portfolio and Growth 67 21 Global Marketing Strategy 6qq 22 Managing Marketing Implementation, Organization and Control 735 Detailed Table of Contents Vignettes Case guide Preface Guided Tour Technology to Enhance Learning and Teaching About the Authors Acknowledgements xi xiii xvii xix xxii xxvii xxviii PART F u n d a m e n t a ls o f M a r k e tin g Marketing and the Organization Introduction to Principles and Practice of Marketing What is Marketing? Adopting a Market Orientation in a Changing World Understanding Market-driven Businesses Efficiency Versus Effectiveness Creating Customer Value, Satisfaction and Loyalty Marketing Planning Does Marketing have all the Answers? Review Key Terms Study Questions Recommended Reading References CASE Coca-Cola and Pepsi CASE Fast Fashion at H&M The Marketing Environment Technological Forces and the Digital Revolution Economic Forces Political and Legal Forces Legal and Regulatory Responses to Ethical Issues in Marketing The Physical Environmental Forces Culture and Society Societal Responses to Ethical Issues in Marketing The Microenvironment Monitoring and Responding in the Marketing Environment Responses to Environmental Change Review Key Terms Study Questions Recommended Reading References CASE Marketing a 'Place' in a Rapidly Changing Environment CASE Reaching 'Sinks, Dinks and Millennials' Worldwide 4 11 14 19 20 22 23 24 24 24 28 32 37 39 41 47 67 70 Business-to-Business Marketing Importance of Business-to-Business (B2B) Markets What is Business-to Business Marketing? People and Process in Purchasing Influences on Buying Decisions Segmenting B2B Markets Review Key Terms Study Questions Recommended Reading References CASE Naked Wines—A Community of Wine Makers and Drinkers CASE AstraZeneca: Sweden and the UK Join Forces to Serve New Markets in the Pharmaceutical Industry 73 74 76 87 96 98 99 qq 100 102 105 109 110 113 117 123 125 129 130 130 131 131 133 136 139 Marketing, Ethics and Society 140 Dimensions of Sustainable Marketing 144 Marketing and Ethics 149 Marketing Approaches and Society 155 Societal Marketing 159 Review 160 Key Terms 161 Study Questions 161 Recommended Reading 161 References CASE Channel and Maltesers Championing 164 Diversity CASE 10 Social Responsibility or Good Business? Coop Danmark's Anti 167 Food Wastage Initiatives Marketing Analytics and Research Marketing Analytics: Goals, Performance and Measurement Marketing and Research The Market Research Process Ethiical Issues in Marketing Analytics 51 51 54 58 59 60 61 63 64 64 65 65 Consumer Behaviour The Changing Context of Consumer Behaviour The Dimensions of Consumer Behaviour Influences on Consumer Behaviour Review Key Terms Study Questions Recommended Reading References CASE Cappuccino Wars CASE The Rise of influencer Marketing: is it Worth it for Brands? 171 172 178 179 192 Review Key Terms Study Questions Recommended Reading References CASE 11 Accelerating Marketing Research CASE 12 TomTom: Still Helping Us Find Our Way Around the Planet Market Segmentation and Positioning Why Bother to Segment Markets? The Process of Market Segmentation and Target Marketing Segmenting Consumer Markets Target Marketing Positioning Key Characteristics of an Effective Marketing Mix Review Key Terms Study Questions Recommended Reading References CASE 13 The Growing No-Alcohol and Low-Alcohol Beer Segment CASE 14 Behavioural and Psychological Segmentation Criteria: The LEGO Case 192 194 195 195 195 197 200 203 204 206 207 218 224 228 229 230 231 231 232 234 237 Value Through Brands Products, Services and Brands The Product Line and Product Mix Brand Types Why Strong Brands are Important Brand Equity Brand Building Key Branding Decisions Rebranding Brand Extension and Stretching Co-branding Global and Pan-European Branding Review Key Terms Study Questions Recommended Reading References CASE 15 Kim Kardashlan: Marketing Genius? CASE 16 Burberry 241 242 243 243 244 247 249 254 256 259 261 263 265 267 268 268 268 271 274 Value Through Service The Service Industries The Nature of Services Managing Services Review 279 280 287 291 300 Key Terms Study Questions Recommended Reading References CASE 17 Nordstrom: Using Service Excellence To Provide A Better Customer Experience CASE 18 Pret A Manger: ‘Passionate About Food' 301 301 302 302 304 307 10 Value Through Relationships Value Creation Value and Relational Networks Key Concepts of Relationship Marketing Relationship Management and Managing Customer Relationships How to Build Relationships Benefits for the Organization Benefits for the Customer Developing Customer Retention Strategies Technology-enhanced Customer Relationship Management Relationship Marketing—Summary Review Key Terms Study Questions Recommended Reading References CASE 19 Starbucks: Managing Customer Relationships One Cup At a Time CASE 20 Top of their Game—Technology Innovation in Manchester City Football Club (FC) 311 312 315 317 11 Value Through Innovation What is an Innovation and What is a New Product? Creating and Nurturing an Innovative Culture Organizing Effectively for Innovation and New Product Development Managing Idea Realization (New Product Development) Review Key Terms Study Questions Recommended Reading References CASE 21 Keogh's Crisps—Home Grown Innovation CASE 22 Innovation through Collaboration: Apple Watch Nike+ 341 12 Value Through Pricing Economists' Approach to Pricing Cost-orientated Pricing Competitor-orientated Pricing Market-orientated Pricing Initiating Price Changes Reacting to Competitors' Price Changes 371 372 373 375 376 388 390 318 319 322 323 324 327 331 332 333 333 334 334 336 338 343 345 348 350 361 362 363 363 363 365 368 Ethical Issues in Pricing Review Key Terms Study Questions Recommended Reading References CASE 23 easyJet and Ryanair CASE 24 The Triumph of German Limited Range Discounters 392 393 394 394 395 395 396 400 PART Communicating and Delivering Custom er Value 13 Integrated Marketing Communications Integrated Marketing Communications Approach Planning for Integrated Marketing Communications Elements of Integrated Marketing Communications Review Key Terms Study Questions Recommended Reading References CASE 25 Domino's Journey to Number One CASE 26 eSports Sponsorship: Game On 407 408 14 Mass Marketing Communications Introduction Advertising The Role of Advertising Advertising Expenditure How Advertising Works When to use Advertising Organizing for Campaign Development Product Placement Public Relations and Sponsorship Sales Promotion Ethical Issues in Advertising Review Key Terms Study Questions Recommended Reading References CASE 27 Volvo: Buying a Car by Simply Using an App CASE 28 Toyota and Buddy 441 442 443 443 447 447 451 456 458 459 465 469 470 472 473 473 473 15 Direct Marketing Communications Principles of Direct Marketing Communications Direct Marketing Direct Marketing Campaigns Managing a Direct Marketing Campaign Selling and Sales Management Characteristics of Selling Personal Selling and Sales Management 481 482 484 485 490 493 494 495 410 415 430 431 432 432 433 435 438 Detailed Table of Contents lx Sales Management Business-to-Business Relationship Development Strategies Exhibitions and Trade Shows Ethical Issues in Direct Communications Review Key Terms Study Questions Recommended Reading References CASE 29 Airbnb: Don't Go There, Uve There! CASE 30 The Taste of Success: Nestlé's Direct Marketing Communications 497 503 505 507 508 510 510 511 511 513 516 16 Digital Marketing and Media What are Digital Marketing and Digital Media? The Digital Communication Environment Digital Marketing and Digital Media Campaign Planning Creative Implementation The Dark Side of Digital Marketing Review Key Terms Study Questions Recommended Reading References CASE 31 Digital Disrupters Competing for Our Attention CASE 32 Online Media— Brand Marketing in Real Time 519 520 528 17 Distribution and Channel Management Functions of Channel Intermediaries Types of Distribution Channel Channel Strategy Channel Management Retailing: Physical and Digital Channels to Market Retailing: In-store, Online and Mobile Ethical Issues in Distribution Review Key Terms Study Questions Recommended Reading References CASE 33 ASOS CASE 34 Walmart and Asda 555 556 558 563 569 573 576 579 580 582 583 583 583 585 588 18 Marketing Planning: An Overview of Strategic Analysis and Decision-making Marketing Planning Context The Functions of Marketing Planning The Process of Marketing Planning Marketing Audit Marketing Objectives 595 596 597 598 601 605 533 539 542 544 545 545 546 546 548 552 476 478 ...NINTH EDITION PRINCIPLES AND PRACTICE OF MARKETING DAVID JOBBER AND FIONA ELLIS-CHADWICK NIINTH EDITION PRINCIPLES AND PRACTICE OF MARKETING DAVID JOBBER AND FIONA ELLIS-CHADWICK Me... Brands Products, Services and Brands The Product Line and Product Mix Brand Types Why Strong Brands are Important Brand Equity Brand Building Key Branding Decisions Rebranding Brand Extension and. .. tin g 1 Marketing and the Organization The Marketing Environment Consum er Behaviour B usiness-to-Business Marketing io q Marketing, Ethics and Society 13q 37 73 Marketing Analytics and Research