Marketing 1st by mello and hunts macgraw hill

www.downloadslide.com MARKETING C Shane Hunt Arkansas State University John E Mello Arkansas State University MARKETING Published by McGraw-Hill Education, Penn Plaza, New York, NY 10121 Copyright © 2015 by McGraw-Hill Education All rights reserved Printed in the United States of America 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 Some ancillaries, including electronic and print components, may not be available to customers outside the United States This book is printed on acid-free paper DOW/DOW ISBN MHID 978-0-07-786109-4 0-07-786109-4 Senior Vice President, Products & Markets: Kurt L Strand Vice President, Content Production & Technology Services: Kimberly Meriwether David Managing Director: Paul Ducham Executive Brand Manager: Sankha Basu Executive Director of Development: Ann Torbert Development Editor: Gabriela Gonzalez Marketing Manager: Donielle Xu Director, Content Production: Terri Schiesl Content Project Manager: Lori Koetters Buyer II: Debra R Sylvester Design: Debra Kubiak Lead Content Licensing Specialist: Keri Johnson Typeface: 10/12 Palatino Roman Compositor: Laserwords Private Limited Printer: R R Donnelley All credits appearing on page or at the end of the book are considered to be an extension of the copyright page Library of Congress Cataloging-in-Publication Data Hunt, C Shane Marketing/C Shane Hunt, Arkansas State University, John E Mello, Arkansas State University pages cm Includes bibliographical references and index ISBN-13: 978-0-07-786109-4 (alk paper) ISBN-10: 0-07-786109-4 (alk paper) Marketing I Mello, John E II Title HF5415.H872 2015 658.8—dc23 2013031992 The Internet addresses listed in the text were accurate at the time of publication The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGrawHill Education does not guarantee the accuracy of the information presented at these sites www.mhhe.com BRIEF CONTENTS Letter to Students vii Making Marketing Personal x Connect Interactive Assignment Guide xviii Acknowledgments xxiv PART ONE Marketing in the Twenty-First Century 1 Why Marketing Matters to You 2 Strategic Planning for a Successful Future 28 Analyzing Your Environment 66 PART TWO Understanding Your Customer 95 Marketing Research 96 Knowing Your Customer: Consumer and Business 126 Developing Your Product 158 Segmenting, Targeting, and Finding Your Market Position 190 PART THREE Reaching Your Customer 221 10 11 Promotional Strategies 222 Supply Chain and Logistics Management: Adding Value for Your Customers 254 Pricing for Profit and Customer Value 286 Building Successful Brands: Your Organization, Your Product, and Yourself 314 PART FOUR Responding to Your Customer 341 12 Managing Your Customer Relationships 342 13 Social Responsibility and Sustainability 368 14 Measuring Marketing Performance 394 Appendix: Sample Marketing Plan Glossary 428 Credits 437 Company Index 439 Name Index 443 Subject Index 446 418 iii DEDICATION To my children, Andrew and Sarah You are the inspiration for everything I do, and I love you both very much Shane To my wife, Sandra, for your support and patience Without your help I could not have made it through a PhD program and achieved my dream of becoming a college professor John HELLO, MY NAME IS C Shane Hunt Dr C Shane Hunt received his PhD in marketing from Oklahoma State University where he was an AMA Sheth Foundation and National Conference in Sales Management Doctoral Fellow Shane has won numerous awards for his teaching, including the 2010 National Inspire Integrity Award from the National Society of Collegiate Scholars, the 2010 Lt Col Barney Smith Award as Professor of the Year at Arkansas State University, and the 2011 Excellence in Undergraduate Teaching Award Shane’s research has appeared in The Journal of Personal Selling and Sales Management, The Journal of Business Logistics, and other leading marketing journals, and he has presented to numerous organizations including the American Marketing Association and the National Conference in Sales Management Shane also serves as the vice chair for an American Marketing Association special interest group in the area of personal selling and sales management After completing his bachelor’s and MBA degrees at the University of Oklahoma, Shane went to work for a Fortune 500 company in Tulsa, Oklahoma, and spent eight years working as a pricing analyst, product manager, and business development manager overseeing numerous strategic initiatives In addition to his role as a professor, Shane also serves as a consultant, speaker, and board member for businesses and nonprofit organizations across the country Shane is now an associate professor of marketing at Arkansas State University and lives in Jonesboro, Arkansas, with his wife Jenifer and their two children, Andrew and Sarah John E Mello Dr John Mello received his PhD from the University of Tennessee John is a wellrespected educator at both the undergraduate and graduate levels and is the recipient of the 2012 Excellence in Teaching Award from the Arkansas State University College of Business Prior to completing his PhD, John spent 28 years in the consumer packaged goods industry in a variety of positions at Unilever and Playtex Products John holds a bachelor’s degree from Central Connecticut State University and master’s degrees from the University of New Haven and Wilmington College John’s research has appeared in leading journals, including The Journal of Business Logistics, Transportation Journal, and the International Journal of Physical Distribution and Logistics Management, and he has presented to leading conferences, including the Decisions Sciences Institute and the Marketing Management Association John serves on the editorial review boards of multiple leading journals, including The Journal of Business Logistics and Transportation Journal John is now an associate professor of marketing and the director for the Center for Supply Chain Management at Arkansas State University He lives in Jonesboro, Arkansas, with his wife Sandra; they have two adult daughters, Abby and Katie v This page intentionally left blank A LETTER TO STUDENTS Dear Students, Wherever your life takes you after this course, you can be assured that knowing how to implement marketing principles will be an important part of your professional success We have designed this product to demonstrate the connection between marketing and your career going forward, whether you choose to pursue a major in marketing or another field As you begin this course, we encourage you not to look at the information as a collection of random concepts that you can forget about once you take your final exam Instead, think about how each of the concepts you read about can help you market and position yourself as a student and as an employee We have included a number of features to support your efforts, including career tips at the end of every chapter and a comprehensive marketing plan exercise that focuses on marketing the most important product and brand of your entire life: you If you are a marketing major, this product will give you a practical foundation in topics such as consumer behavior, professional selling, supply chain management, marketing research, and advertising—information that you will need as you move forward in your degree program We have also included Today’s Professional profiles in each chapter, which feature recent marketing graduates discussing their current jobs You will see that a marketing major can open doors to a variety of opportunities in large companies, small businesses, and nonprofit organizations throughout the world If you are majoring in a field other than marketing, this might be the only marketing course you take This product will help you understand the role marketing plays in the success of virtually every for-profit and nonprofit organization Every chapter features a successful executive or entrepreneur who majored in something other than marketing, but who is using the principles you will learn in this course each day of his or her professional life Your future is bright, and this product can help you along the path of reaching your professional goals The working world will continue to evolve and change, but no matter what part of the world you live in, how big your community is, or what the economy looks like, opportunities will always be available for people with marketing skills We hope you enjoy this product, and we wish the very best for your future Sincerely, C Shane Hunt John E Mello vii CREATING VALUE THROUGH RELEVANCE H my Ename L Lis O Hello, and welcome to Hunt and Mello’s Marketing Over the course of many conversations, we’ve heard from you, and instructors like you, about a number of the key challenges you face in your principles of marketing course Though every instructor’s situation is unique, some common themes emerged from our conversations Students, particularly non-marketing majors, struggle to understand how this course relates to them They need guidance on how to put together the pieces and make it relevant Students come to the course expecting a high level of engagement They need course materials that deliver on this expectation by providing them with engaging, interesting content Students want to know that what they are learning matters Content must be presented in a logical, concise way that highlights its importance to encourage students to read and interact with the material as they prepare for class After listening to you discuss your challenges, we examined the other side— students’ opinions—through surveys of principles students at several universities Students from a variety of majors shared with us their primary complaints about existing course materials Again, common themes emerged The content doesn’t relate to students’ individual goals and lives Products don’t convey how marketing strategies can be used in students’ future marketing careers There is a lack of order associated with the seemingly random inclusion of topics, terms, and chapters in most products Marketing meets the critical challenges voiced by both instructors and students We deliver the most important content, in the most engaging way, to help students Roberta Schultz from all backgrounds and all career aspirations learn the science of marketing and Western Michigan University how essential it is to their careers, their organizations, and society as a whole Marketing was created with an emphasis on student engagement and relevance, a focus Very helpful addition of career focus Students will benefit from the information that’s embodied in the following key benefits: and help in applying marketing to their Student career focus A number of pedagogical tools own career search Well-written, concise help students understand how marketing will support coverage of the concepts with current, their career, whether they choose to major in marketing relevant examples or something else From the very first chapter, “Why Marketing Matters to You,” students learn about marketing as it relates Erin Brewer to them, Managing Partner whatever RedPin Bowling Lounge and their career path happens The Basement Modern Diner to be The Executive Perhttp://www.bowlredpin.com/ spective features that begin RedPin is a combination restaurant, bowling alley, and bar in Oklahoma City It boasts 10 bowling lanes; a full-service bar; space for private parties; a menu of local, made-fromscratch fare; and a large canal-front patio viii AND STUDENT ENGAGEMENT S Social Media every chapter connect to students’ ultimate career goals and represent the importance of marketing to students from a wide range of majors, including computer science, anthropology, applied mathematics, and economics Each chapter also includes a Today’s Professional feature that connects to where students want to be in the near term In these, recent graduates discuss various areas of marketing as an avenue for employment Both of these features demonstrate marketing’s relevance in a vivid and immediate way In addition, Career Tips at the end of every chapter encourage students to think about their personal brand and how to market themselves effectively to future employers Finally, instructors can choose to assign a personal Marketing Plan Exercise that asks students to apply principles concepts to create a marketing plan for the most important product they will ever market: themselves Relevant content integration Coverage of ethics, globalization, and social media has been integrated throughout the chapters to emphasize the impact of these important topics on every marketing decision Organizations don’t have “ethical Tuesday” or celebrate “global Wednesday.” Students must understand how H my Ename L Lis O The global and social media these concepts integrate into key princiicons highlight integrated covples content Finally, we’ve incorporated erage, allowing students and Guy Lochiatto coverage of marketing in nonprofit instructors to quickly locate MassBay Community College settings throughout the relevant content within each text to appeal to stu- chapter dents pursuing careers applying and integrating ethics, in this growing area globalization, and social media makes it easier for the students to understand the Results-driven impact of these on consumer behavior technology Four Interthroughout marketing and makes them less active Assignments in generalized each chapter delivered via McGraw-Hill Connect® allow stuH my Ename L Lis O dents to apply what they’ve just learned in a dynamic, interactive way One of these, the Social Media in Action assignment, asks David Bourff the student to view the chapter concepts as they relate to social Boise State University media, an increasingly important tool in mar-keting as well as many other areas of business In addiPowerful Most of what I hear from students is that they'd like to hear tion, each chapter has an associmore of the “how” when it comes to ated Video Case, often featuring everything This is a great way to show the the executive that appears at the how aspect in a fun way start of the chapter The video case introduces students to marketing principles as they are practiced at both large corporations and the kind of small businesses at which most students will begin their careers ix 440 Company Index F H Facebook, 8, 12, 43–44, 112, 129, 130, 171, 203, 215, 218, 240, 329, 331, 332, 348, 387, 389, 406–407, 413 Family Circle, 234 Federal Reserve Bank of St Louis, 73 Federal Trade Commission (FTC), 80, 120, 154, 163, 174, 185, 270, 307–308 FedEx, 45, 86, 263, 348, 375, 376 Ferrero USA, 251 First Security Bank, 333 Fitness Bootcamp Unlimited, 191, 199 Five Guys Burgers and Fries, 192–193 Flash Purchase, 167 Flickr, 129 Florida Atlantic University (FAU), 338 Food and Drug Administration (FDA), 251 Food for the Poor, 335 Ford, 7, 33, 39, 52, 69, 70, 76, 129–131, 136, 137, 162, 239–240, 300, 331 Forest Pharmaceuticals, 149 Fortune, 233 Fortune 500, 15, 16, 45, 311, 330, 388 Fox, 229, 416 Frito-Lay, 209, 226, 275 Fuji, 412 Fuze, 101–103, 105–108, 110, 113 Harbor Freight Tools, 273 Harley-Davidson, 332 Harmony Health Clinic, 47 Harris Interactive, 335 Harrods, 45 Hasbro, Inc., 376 Hashtags.org, 329 HBO, 237 Health Net, 345 H.E.B., 345 Hershey’s, 323 Hewlett-Packard, 161, 215 HGTV, 237 Highmark (BCBS), 345 Hispanic Community Services, Inc (HCSI), 369, 375 Holiday Inn, 202, 238 Holt Cat Companies, 343, 347 The Home Depot, 150, 344 Honda, 70, 168 Hulu, 110, 230 Hyundai, 73, 164 G Game Informer Magazine, 234 Gap, 75, 317 Gatorade, 69 GE, 331, 387 Gearhead Outfitters, 118 GEICO, 5, 318 General Electric, 376 General Mills, 77, 154, 323, 374, 375–376 General Motors (GM), 7, 69, 70, 82, 151, 162–163, 209, 290, 332, 413 GEO Group, 338 Georgia-Pacific, 258 Ghost Tweeting, 76 Girl Scouts, 179, 335 Giving USA, 88, 399 Glassdoor, 113 Global Sustainable Tourism Council (GSTC), 387 GNC, 274 Good Housekeeping, 234 Goodwill, 335 Google, 32, 37, 86, 105, 228, 289, 320, 330, 331, 406 Greenpeace, 89 Groupon, 7, 81, 236, 401 Gucci, 332, 334 Gulf Coast Produce, 145 Kohl’s, 379 Kontera, 130 Kraft, 154, 199 Kroger, 150, 357, 359 Kryptonite, 328 L Ladies’ Home Journal, 234 Lego, 195 Lehman Brothers, 151 Lennar, 196 Levi’s, 227, 332, 376 Lexus, 141 LexisNexis, 105 Little Caesars, 145, 210, 345 Living Social, 360 Loehmann’s, 296 Long John Silver’s, 403 Louis Vuitton, 71, 72, 300 Lowe’s, 150, 195, 305 Loyola University, 411 Lucasfilm, 40–41 Lufthansa, 203 Lytro, 161 I IBM, 239, 320, 331, 374–376, 387 IHOP, IKEA, 196 Indeed.com, 113, 246 Instagram, 327 Intel Corporation, 331, 376 International Chamber of Commerce (ICC), 120 International Monetary Fund (IMF), 85, 90 International Paper, 258 J J Crew, 356 Jack Daniel’s, 323, 332 J.B Hunt Transport Services, Inc., 255, 284, 304, 381 JCPenney, 144, 274, 380 J.D Power, 318, 344, 349, 359 Jell-O, 326 John Deere, 397 Johns Hopkins University, 20 Jonesboro Regional Chamber of Commerce, 385 Juicy Couture, 210 Junior Achievement, 370 K KAIT-TV, 127 Keck Graduate Institute (GKI), 165 Kellogg Company, 143, 144, 154, 251 KFC, 235, 322, 332, 399 Kimberly-Clark, 106 Klout, 406 Kodak, 412 M 3M, 165 Macy’s, 356 Major League Baseball (MLB), 45, 397 Make-A-Wish Foundation, 244, 335 Marketing Research Association, 120, 122 Marks & Spencer, 384 Marriott International, 244 Mars, 231 Martha Stewart products, 195 Mary Kay Cosmetics, 274 Mattel, 172 Mazda, 119–120 McDonald’s, 8, 11, 34–39, 41–42, 45–46, 68, 74, 133, 153–154, 194, 195, 205, 208, 236, 302, 316, 322, 323–324, 326, 331, 398–399 The McGraw-Hill Companies, 376 McKinsey, 384 Medicaid, 345 Memphis Grizzlies, 21, 251 Mercedes, 199 Mercedes-Benz, 290, 300, 319 Merrill Lynch, 195 Microsoft, 33, 150, 300, 319, 320, 331, 366, 376, 407 Mobily, 203–204 Money, 233 Monster, 113 Morgan Stanley, 376 Mountain Dew, 317–318 MTV, 225 Company Index N Q National Basketball Association (NBA), 141, 230, 251, 310–311 National Conference on Citizenship, 374 National Football League (NFL), 416 National Geographic, 234 Natural Resources Canada, 148 NBC, 229, 416 Neiman Marcus, 356 Nestlé, 16, 69, 380 Netflix, 200, 289, 292, 297 NFL Network, 416 Nielsen, 74, 116, 327–329, 406 Nike, 119–120, 135, 213, 316 Nikon, 177 Nintendo, 161 Nissan, 162, 206, 362 Nokia, 173 Norwegian Cruise Lines, 358 Nutella, 251 Quaker Oats, 251 Quiznos, 247–248 O Odd Lots, 181 OkCupid, 165 Olive Garden, 208 OnStar, 10, 132 Optus Inc., 287 Oracle, 302 Orbitz, 305 Oreo, 237 Oscar Mayer, 79 P Panda Express, 208 Pandora, 68 Panera Bread, 389 Papa John’s, 210 Papa Murphy’s, 210 Parenting, 233 Patagonia, 137 Path, 120 PEG Bandwidth, 159 People, 233, 234 PeopleSource, 251 Pepsi, 69, 107, 377, 378, 399 Pepsi Arabia, 204 Pepsi Refresh Project, 372, 381 Pew Research Center, Phillips NV, 46 Pizza Fusion, 210 Pizza Hut, 39, 145, 210, 332, 399 Pizza Patrón’s, 210 Points of Light, 374 Procter & Gamble (P&G), 43–44, 106, 165, 374 Publishers Clearing House, 237–238 Publix, 345 R Radio Shack, 274 Reader’s Digest, 234 Red Bull, 224, 327 RedPin Bowling Lounge and The Basement Modern Diner, 67, 72 Reebok, 330–331 Regroupement, 377 Ritz, 130 R.L Winston, 181 Rolex, 290 Rosetta Stone, 113, 141, 305 Rosneft, 46 Royal Philips Electronics, 117 Ruby Receptionists, 75 S Safeway, 403 St Jude Children’s Research Hospital, 22 Salesforce.com, 356 Sam’s Club, 345 Samsung, 173, 331 San Diego Padres, 302 S&P 500, 16, 18 SAP, 302 Sara Lee, 143 Save-a-Lot, 345 Schiffer, Odom, Hicks, and Johnson, 315 Scribd, 129 Search Institute, 387 Sears Holdings, 150 Securities and Exchange Commission (SEC), 104–105, 113–114 ShamWow, 229 Sierra Club, 89 SiriusXM, 68–69, 132, 232 Six Flags, 413 SKYCITY Breakers, 87 Smurfit-Stone Container, 258 SNG Corporation, 116 Social Mention, 330 Sonic Drive-In, 133, 274, 345 Sony, 8, 138, 161, 230 Southwest Airlines, 203, 317, 376, 396, 407 Spangler Candy, 163 Sports Illustrated, 233, 234 Sprint, 144, 212, 213, 380 Stand Up To Cancer, 335 Staples, 305 Starbucks, 38, 39, 117, 167, 300, 323–324, 328, 407 Starwood Hotels, 274 State Farm Insurance, 134–135, 321 Strategic Business Insights (SBI), 201 Subaru, 131 441 Subway, 5, 37, 69, 74, 135, 232, 247 Sunkist, 215, 323, 403 Supreme Court, U.S., 79, 306 SurveyMonkey, 107 T Taco Bell, 225–226, 321, 399, 402 Target, 22, 143, 150, 273, 274, 299, 376, 387 Taste of Home, 234 Teledyne Technologies, 383 Temkin Group, 344, 345 Temple University, 89 Tennis Channel, 229, 405 Tesla, 182 Textbook Brokers, 361 T.G.I Friday’s, 323 Ties.com, 210 Tiffany, 325, 332 Timberland, 374 Time—The Weekly Newsmagazine, 234 Time Warner Cable, 345 Tim Hortons, 323–324 T.J Maxx, 296 T-Mobile, 212, 213 TNT, 229 Toms, 370 Toyota, 39, 76, 131, 136, 162, 229, 231, 323, 331, 373–374 Tracfone, 212 Trader Joe’s, 104, 345 TripAdvisor, 132 Tropicana, 69 21st Century, 345 Twin Oaks Integrated Marketing, 3, 11, 20 Twitter, 8, 12, 129, 130, 203–204, 326, 330, 332, 348, 349, 406, 413 U UNICEF, 227 Unilever, 99, 106, 169, 171, 377 UnitedHealth Group, 376 United Nations, 375, 387 United Parcel Service (UPS), 5, 45, 86, 261, 263, 348 United States House of Representatives, 198–199 United Way, 48, 334 United Way of Southeast Alaska, 48 University of Colorado, 89 U.S Cellular, 212 U.S News and World Report, 263 U.S Patent and Trademark Office, 113–114 U.S Postal Service, 348 US Airways, 345 V Verizon, 34, 144, 202, 212, 213, 295 Virgin Atlantic, 203, 306 Vodafone, 384 442 Company Index W Walgreens, 150, 324 Walmart, 5, 7, 40, 143, 150, 196, 213, 257, 264, 273, 274, 306–307, 325, 354, 380 Walt Disney World, 81, 82–83 Wells Fargo, 181, 349 Wendy’s, 37, 68, 69, 296 Western Union, 376 Weyerhaeuser, 258 Whole Foods, 370, 382 Wildfire, 406 Wildlife Conservation Society, 335 Williams Communications Group (WCG), 400 The Williams Companies, 311, 392 Woman’s Day, 234 WorldCom, 16, 371 World Trade Organization (WTO), 85, 90, 303 World Wildlife Fund (WWF), 334–335 WWE, 244 X Xerox, 33 Y Yelp, 132 Young and Rubicam (Y&R), 319 YouTube, 76, 110, 129, 130, 215, 224 Z Zappos.com, 346 Zayo Group, 223 ZenithOptimedia, 227 Zipcar, 214 443 NAME INDEX A Akin, Melissa, 53 Anderson, Mae, 53 Ansoff, H Igor, 53 Austen, Ben, 417 Ayala, Saundra, 153 B Baertlein, Lisa, 156, 312 Ballou, Ronald H., 285 Bandyk, Matthew, 417 Barbaro, Michael, 393 Barboza, David, 188 Bardsley, Greg, 94 Barnes, Brooks, 220 Barr, Colin, 219 Barry, Michael J., 125 Baumgartner, Felix, 224 Beck, Ernest, 340 Beirne, Mike, 220 Belk, R W., 155 Benton, W C., Jr., 285 Berfield, Susan, 393 Berlusconi, Silvio, 331 Berry, Leonard L., 27 Bhattacharya, C B., 393 Bienstock, Carol C., 125 Bills, William, 94 Blackhurst, Jennifer, 393 Blankenship, Erin, 47 Bloch, Doren, 171 Blythe, Jim, 156, 188 Bogoslaw, David, 94 Boudway, Ira, 338 Boyle, Matthew, 93, 125 Brady, Diane, 393 Brady, Shirley, 252 Brenner, Joanna, 252 Bresnahan, Mary Jiang, 220 Brewer, Erin, 67, 72, 92–93, 317 Browning, William, 93 Brue, Stanley L., 312 Bryant, Adam, 188 Bunkley, Nick, 312, 417 Burbary, Ken, 252 Burk, Monte, 219 Burks, Ryan, 275 Burnes, Bernard, 188 Burrows, Dan, 53 Bush, Robert P., 125 Buss, Dale, 155 Byron, Ellen, 94, 156 Campbell, Katherine, 251 Cantor, David, 393 Carroll, Archie B., 371 Carver, James R., 252 Caucutt, Joshua, 219 Cena, John, 244 Chen, Brian X., 417 Choi, Candice, 93 Christopher, Martin, 188 Clifford, Stephanie, 219 Cobb, Mei, 393 Cohan, Peter, 417 Coleman-Lochner, Lauren, 44 Connors, Will, 125, 188 Coy, Peter, 27 Coyle, John J., 284, 285 Craner, Edward, 343, 347, 366 Crawford, Amanda J., 25 Cronin, Matt, 252 Crupi, Anthony, 252 Curtin, Stacy, 417 D Dannanberg, Jamie, 165 Dauginas, Tony, 283–284 David, Isaiah, 312 Dean, Jason, 94 De Lollis, Barbara, 252 Dentch, Courtney, 339 Desjardins, Joseph, 19, 27 DeVore, Steve, 3, 11, 20, 25, 26 D’Innocenzio, Anne, 53 Dishman, Lydia, 188 Doctoroff, Tom, 125 Dodes, Rachel, 13 Drewery, Malcolm P., Jr., 94 Drucker, Peter, 31, 53 Drummond, Ree, 136 Duckworth, Mark, 287, 293 Dugas, Christine, 76 Dugdale, Kristen L., 94 Dugger, Celia, 94 Dunne, Patrick M., 252 Duren, Marty, 253 E Eastman, Jacqueline K., 155 Edwards, Cliff, 312 Elliott, Stuart, 231, 389, 417 Ellram, Lisa M., 285 El Nasser, Haya, 94 Emerson, Melinda, 188 Evans, Julian, 393 Evans, Kelly, 312 F C Calder, Bobby J., 220 Callen, Tim, 93 Fahmy, Sam, 94 Farchy, Jack, 27 Fawcett, Stanley E., 285 Featherstonhaugh, Brian, 253 Fickling, David, 188 Finn, Kathy, 339 Fisher, Eric, 53 Fixmer, Andy, 252, 416 Flynn, Leisa Reinecke, 155 Flynn, Sean M., 312 Ford, Henry, Fowler, Geoffrey, 252 Fowler, Geoffrey A., 113 Franzen, Giep, 339 Friloux, Michael, 29, 31, 38, 52 Fry, Arthur, 165 G Gamm, Scott, 417 Gibson, Brian J., 284 Gillette, Felix, 340 Gillis, Justin, 94 Gillis, Tamara, 393 Ginipero, Larry C., 285 Giroux, Greg, 155 Glader, Paul, 187 Glazer, Emily, 125 Goldsmith, Ronald E., 155 Gomez, Gina, 369, 375 Gooch, Lance, 21 Goodin, Samantha M., 220 Goodnight, Teresa, 223, 240, 243 Green, Penelope, 219 Greenfeld, Karl Tero, 252 Grinton, Claire, 393 Grover, Rajiv, 339 Grow, Brian, 252 Gutenberg, Johannes, 160 Guynn, Jessica, 125 H Hair, Joseph R., Jr., 125 Hall, Holly, 94 Hamdan, Sarah, 204 Handfield, Robert B., 285 Hann, David, 25 Hartman, Laura P., 19, 27 Haselton, Todd, 220 Hawkins, Lindsey, 333 Hawley, Logan, 361 Hemann, Chuck, 252 Hicks, Andrew, 315, 317 Hill, Kashmir, 340 Hoeffel, Elizabeth M., 94 Hogan, John, 291, 312, 417 Holahan, Catherine, 154 Holmes, Elizabeth, 367 Holstein, William J., 27 Hornblower, Sam, 367 Howden, Lindsay M., 219 Hoyer, Wayne D., 156, 188 Hsu, Tiffany, 93, 393 444 Humes, Karen R., 78 Hunt, Shane, 219, 311, 392, 417 I Inoue, Yasuhiro, 220 J Jacobe, Dennis, 393 Jiang, Crystal, 340 Jim, Clare, 27 Johnson, Renee, 312 Johnson, Tallese D., 94 Johnston, Mark, 241, 253, 410 Jones, Nicholas A., 78 Jordan, Michael, 135, 213 K Kaminsky, Philip, 285 Kapner, Suzanne, 349 Kary, Tiffany, 417 Katona, Zsolt, 155 Kavilanz, Parija, 312 Kayal, Michele, 220 Keller, Kevin Lane, 339 Kelly, Anne Marie, 339 Kemp, Matt, 302 Kennedy, C., 393 Khan, Omera, 188 Kharas, Homi, 83 Kim, Miyoung, 27 Klayman, Ben, 187 Kohler, Ashlyn, 118 Kotabe, Masaaki, 340 L Lambert, Douglas M., 285 Lamonica, Martin, 393 Lamonica, Paul R., 252 Langley, John C., Jr., 284 Lapide, Larry, 417 Lappin, Joan, 417 Lardner, Richard, 125 Lataif, Louis, 93 Lee, Dean, 403 Lee, Justina, 312 Lewin, Tamar, 94 Lieber, Ron, 94 Lienert, Paul, 187 Linebaugh, Kate, 125 Linoff, Gordon S., 125 Liu, Wen Ying, 220 Lohr, Steve, 252 Looney, Jonathon, 211 Louve, Mikaela, 27 Lovelace, Cornelius, 191, 198 Luo, Yadong, 53 Lusch, Robert F., 252 Name Index M MacInnis, Deborah, 156, 188 Marchial, Gene, 93 Marriott, Bill, 244 Marrou, Kathy, 210 Marshall, Greg, 241 Marshall, Greg W., 253, 410 Martin, Diane, 393 Maslow, Abraham, 139–142, 156 Matthews, Terry, 255, 277 Mattioli, Dana, 274, 312 McCollum, Misti, 179 McConnell, Campbell R., 312 McCormally,Kevin, 93 McKee, Steve, 340 McKinley, James C., Jr., 331 McLoone, Sharon, 156 McQuerrey, Lisa, 187 Mears, Bill, 94 Mello, John, 125, 284, 417 Mentzer, John T., 27, 125, 284 Meyer, Julie A., 219 Mildenburg, David, 220 Milian, Mark, 252 Miller, Carolyn, 252 Miller, Claire Cain, 417 Minor, Michael, 156 Mitchell, Amy, 252 Modi, Manish, 331 Monczka, Robert M., 285 Montgomery, Kathryn, 153, 154 Montier, James, 155 Moon, Mark A., 125 Moriarty, Sandra, 339 Morimoto, R., 393 Mowen, John C., 156 Muret, Don, 53 Murnen, Sarah K., 220 Myers, Kristina, 385 N Nagle, Thomas, 291, 312, 417 Naughton, Keith, 220 Nelson, Jill, 75 Newman, Andrew Adam, 130, 156 Nishida, Tsukasa, 220 Novack, Robert, 284 O Obama, Barack, 236 O’Brien, Keith, 53 O’Carroll, Eoin, 393 O’Connell, Michael, 252 O’Connor, Jack, 356 Ogden, Jeffrey A., 285 Olenski, Steve, 252 Orsato, Renato J., 381, 393 Ortinau, David J., 125 O’Toole, James, 312 Ottman, Jacquelyn A., 393 Ourand, John, 53 P Pachell, Mitchell, 417 Page, Robert A., 219 Parbat, Kalyan, 188 Parnell, Brid-Aine, 417 Paronen, Lars, 156 Patterson, James L., 285 Payne, Tom, 159, 169, 187 Pepitone, Julianne, 93, 187 Peterson, Barry, 27 Phelps, Michael, 135 Phillips, Matthew, 27 Pieters, Rik, 156 Pilgrim, Debbie, 251 Poe, Ryan, 219 Pogue, David, 220 Polonsky, M J., 393 Prahalad, Deepa, 27 Purcell, Kristen, 252 Purdy, Alicia, 155 R Raabe, Steve, 253 Raice, Shayndi, 407 Rainee, Lee, 252 Ramirez, Roberto R., 78 Rastogi, Sonya, 94 Rate, Betsy, 253 Ray, Rachael, 135 Ray, Susanna, 188 Reeves, James Epstein, 393 Reisinger, Don, 339 Robertson, Jordan, 218 Rogers, Tracey, 127, 136, 145, 155 Rooney, Jennifer, 417 Rosenberger, P J., III, 393 Rosenstiel, Tom, 252 Rosenwald, Michael S., 253 Ross, Rick, 330 Russell, Mallory, 252 S Sachs, Rob, 219 Sacks, Danielle, 94 Sage, Ken, 304 Saletta, Jill, 154 Santhanam, Laura Houston, 252 Santiarano, Adam, 156 Sass, Erik, 252 Satran, Richard, 340 Savitz, Andrew, 393 Sawhney, Ravi, 27 Schechner, Sam, 27 Scheck, Justin, 187 Name Index Schmitz, Paul, 27 Schor, Juliet, 154 Schouten, John, 393 Schultz, D E., 339 Schultz, E J., 340 Schulz, David P., 150 Schumpeter, Joseph, 339 Schwartz, George, 367 Sen, Sankar, 393 Sepehri, Mohammad, 393 Seymour, Leslie Jane, 220 Sharma, Subhash, 94 Sherman, Alex, 312 Shimp, Terence A., 94 Short, Doug, 71 Silver, Sheldon, 165 Simchi-Levi, David, 285 Simchi-Levi, Edith, 285 Simmons, Bill, 232 Singer-Vine, Jeremy, 306 Smith, Judy Reed, 97, 110, 114, 124 Smolak, Linda, 220 Soldatkin, Vladamir, 53 Soltani, Ashkan, 306 Son, Hugh, 52 Spagat, Elliot, 417 Stampler, Laura, 252 Startz, Stephanie, 93 Steel, Emily, 125 Stevenson, Seth, 340 Stock, James R., 285 Story, Louise, 188 Sweet, Elizabeth, 219 T Takahashi, Dean, 252 Taylor, Josh, 156 Taylor, Nelson, 411 Thompson, Derek, 94 Thornton, Barry, 393 Tierney, John, 156 Timiraos, Nick, 312 Toth, Robert J., 312 Townsend, Matt, 94 Tozzi, John, 94 Tracer, Zachary, 156 Tschetter, John, 27 Tybout, Alice M., 220 V Valentino-Devries, Jennifer, 306 Van Denburg, Alyssa, 220 van Houten, Frans, 117 Vega, Tanzina, 331 Vlasic, Bill, 417 Voelcker, John, 155 Vranica, Suzanne, 252 Vriens, Marco, 339 W Wade, Dwyane, 141 Walter, Ekaterina, 94, 367 Ward, Halsey, 87 Weiss, Sebastian, 220 Weitzenkorn, Ben, 94 White, Joseph B., 94 Whoriskey, Peter, 187 Williams, Alex, 94 Williams, Grant, 94 Williams, Kaylene C., 219 Winchester, Kimberly, 246 Winderman, Ira, 156 Windle, Charlotte, 312 Winey, Caitlin, 149 Witte, Griff, 340 Wolfinbarger, Mary F., 125 Woodall, Bernie, 187 Wooden, John, 416 Wooten, Adam, 340 Y Yan, Aimin, 53 York, Emily Bryson, 339 Z Zale, Joseph, 291, 312, 417 445 446 SUBJECT INDEX A Adoption See Product adoption/adopters Advertising See also Promotion to children, 133–134, 153–154 cost of, 228, 229, 231 explanation of, 26, 225, 226 informative, 226 Internet, 227–228 measuring success of, 404–405 nontraditional, 235–236 objectives of, 226–227 outdoor, 234–235 persuasive, 226 print, 233–234 product placement and, 230 radio, 231–232 television, 228–230 Advertising Act See Wheeler-Lea Act (1938) Affordable method, for promotion mix budgeting, 247 African Americans, demographic information about, 77, 78 Age marketing environment and, 74–75 segmentation by, 194–195 Aided recall test, 404 Airline industry, 203 Air transportation, 277 American Marketing Association, Code of Ethics, 16, 17 Annual reports, as public relations tool, 243 Anticipative stock, 266 Anti-dumping laws, 303 Anti-Price Discrimination Act See Robinson-Patman Act (1936) Asian Americans, demographic information about, 77, 78 Aspirational reference group, 135 Assumptive close, 243 Attitude, consumer buying decisions and, 138 Audits, of corporate social responsibility program, 374 See also Marketing audits Automobile manufacturing, 400 B Baby boomers, 74 Bankruptcy, 413 Banner ads, 228 Barriers to change bankruptcy and, 413 complacency and, 412 explanation of, 410, 412 organizational structure and, 412 poor communication and, 412–413 Behavioral segmentation for business-to-business forms, 203 explanation of, 200, 202 Black market, 302 Blogs, as public relations tool, 244 Bonuses, employee, 408–409 Boston Consulting Group (BCG) matrix, 34–35 Brand equity benefits of, 319–320 explanation of, 318, 319 measurement of, 320–321 nonprofit, 335 Brand extension, 321–322 Brand image, 325–326 Branding components of, 317–318 ethical issues in, 338 function of, 316–317 in marketing plan, 424 for nonprofit organizations, 334–335 packaging and, 325–326 social media and, 326–330 Branding strategies brand extension as, 321–322 brand revitalization as, 322–323 co-branding as, 323–324 explanation of, 321 private label brands as, 324–325 Brand loyalty explanation of, 316 relationship marketing and, 353–354 social media use to express, 328 Brand recall, 321 Brand recognition, 316–317 Brand recognition research, 321 Brand revitalization, 322–323 Brands developing your personal, 317 explanation of, 14–15, 316 global, 331–332, 334 list of most valuable nonprofit, 335 marketed to children, 154 Break-even analysis, 43, 293–294 Break-even point, 293 Brochures, as public relations tool, 244 Business analysis, for new-product development, 167 Business-to-business marketing (B2B) buying situations in, 148, 150–151 customer relationship management systems in, 360 explanation of, 144 factors unique to, 144–145 government market for, 145–146 institutional market for, 146–147 reseller market for, 147–148 segmentation bases and, 202–203 Business-to-consumer marketing (B2C) See also Consumer decisionmaking process building customer relationships in, 359 decision process for, 128–132 explanation of, 128, 129 C Canada, North American Free Trade Agreement and, 83–84 Cannibalization, 322 Career tips to choose organizations, 392 for developing people skills, 52–53 for developing questioning skills, 52 for employer evaluation process, 131 for marketing research positions, 124 for media marketing, 155 for nonprofit positions, 93 for personal marketing, 251 for pricing positions, 311 for product management positions, 187 sample marketing plan exhibiting, 418–427 for self-positioning, 219 for skill development, 366 for supply chain management and logistics, 284 for your personal development, 317, 339, 416–417 Carrier selection, 280 Causal research, 103 Central America Free Trade Agreement (CAFTA), 85 Change See Barriers to change Chapter bankruptcy, 413 Chapter 11 bankruptcy, 413 Charitable donations, 89 Children as influence on consumer buying decisions, 133–134 marketing food to, 133–134, 153–154, 194 obesity in, 134 Children’s Online Privacy Protection Act (COPPA), 218 China currency valuation in, 82 economic recession of 2007 and, 13 GDP growth rate in, 70 marketing research on, 117 silk prices and, 303 Clayton Antitrust Act (1914), 307 Click-and-mortar companies, 355 Click-through rate (CTR), 228 Closing strategies, in personal-selling process, 242–243 Subject Index Co-branding, 323–324 Code of Ethics of American Marketing Association, 16, 17 Cognitive dissonance explanation of, 132 use of customer relationship management information to combat, 359 Cold calling, 241 Collaborative planning, forecasting, and replenishment (CPFR), 404 Commission, 409–410 Common carriers, 277 Communication barriers to, 378 with customers, 347–348 electronic, 160 failures in, 412–413 by nonprofit organizations, 49 of value, Compatibility, 177 Compensation for marketing employees, 408–409 for sales employees, 409–410 Competition analyzing position of, 212 direct, 68–69 example of, 57–58 indirect, 69 in marketing plan, 37 pricing and, 294–295 repositioning and, 215 target markets and, 207–208 Competitive advantage explanation of, 41, 177 positioning strategies to highlight, 213 Competitive analysis, 212 Competitive intelligence, 113–114 Complacency, 412 Complexity, 177–178 Compliance leadership, 381–382 Concurrent new-product development, 171–172 Consumer adoption process, 175 Consumer behavior, 128 Consumer confidence, 72–74 Consumer decision-making process attitude and, 138 consumer learning and, 139 evaluation of alternatives in, 131 explanation of, 128 global factors in, 137–138 information search in, 129–131 involvement level and, 142–143 motivation and, 139–142 personal factors in, 136–137 post-purchase evaluation in, 132 problem recognition in, 128–129 purchasing in, 131–132 social factors in, 133–136 time considerations in, 133 Consumer ethnocentrism, 86 Consumerism, 377–378 Consumer learning, 139 Consumption ritual, 131–132 trends in, Contests, 237–238 Contingency planning, 43 Contract carriers, 277 Contracts, supplier, 268 Controls, in marketing plan, 43, 63–65, 426–427 Core carriers, 280 Corporate social responsibility (CSR) developing program for, 373–374 economic dimension of, 371 ethical dimension of, 372 explanation of, 15, 370–371 legal dimension of, 371–372 in marketing plan, 425–426 philanthropic dimension of, 372 social media and, 386–388 volunteerism and, 374–375 Corporate volunteerism, 374–375 Cost per click (CPC), 228 Cost-per-thousand impressions (CPM), 228 Cost-plus pricing See Markup pricing Costs estimates of new-product, 167 fixed, 293 inventory carrying, 267 marginal, 290 price determination and, 292–293 purchasing, 267 stockout, 267 variable, 293 Country-of-origin effects, consumer buying decisions and, 138 Coupons, 236–237 Credit Card Accountability, Responsibility, and Disclosure Act (2009), 80 Crisis management, 245 Cultural diversity consumer buying decisions and, 137–138 tastes and brand preferences and, 332, 334 Cultural fit, global marketing and, 86 Currency exchange rate, 82–83 Customer acquisition, 401 Customer equity, 362 Customer focus, 362 Customer orientation, Customer relationship management (CRM) determining effectiveness of, 362 explanation of, 355 447 leveraging customer information for, 359–360 objectives for, 355–356 process of, 356–359 security and ethical issues in, 360 software for, 355 Customer relationships relationship marketing and, 353–354 service employee empowerment and, 354–355 Customers communication with, 347–348 follow-up with, 243 gathering, storing and analyzing information about, 357–358 identifying current, 356–357 leveraging information about, 359–360 segmentation by convenience of, 196–197 share of, 362 understanding method of interaction with, 357 Customer satisfaction, 352–353 Customer segmentation analysis, 357 Customer service branding through, 329 distribution network design and, 273 explanation of, 344–345 goals for, 345–346 list of best and worst ratings for, 345 performance tracking for, 349–351 policies for, 346–348 role of social media in, 348–349 Customer value, 354 Customized research firms, 116 Cyberspace, as transportation mode, 278 Cyclical inventory, 266 D Data analysis of, 108–109 ethical use of research, 120 primary and secondary, 101–102, 112 qualitative, 108, 109 quantitative, 108–109 Data collection primary, 105–107 privacy issues related to, 228 secondary, 104–105 Data hacking, 360 Data mining explanation of, 111, 357–358 social media and, 124 Days of supply, 268 Debit card fees, as ethical issue, 52 Deceptive pricing, 306–307 Decision making See also Consumer decision-making process attitude and, 138 framework for ethical, 18–20 448 Subject Index Decision making—Cont personal factors in, 136–137 social factors in, 133–136 Decision support system (DSS), 111 Decline stage, in product life cycle, 180–181 Demand analysis of, 100 derived, 144 elastic, 292 inelastic, 292 new-product, 167 price elasticity of, 292 pricing and, 290–292 supply chain strategy and, 261 Demographic factors age and, 74–75 education and, 76–77 ethnicity and, 77, 78 explanation of, 74 gender and, 76 Demographics, 74 Demographic segmentation age and, 194–195 for business-to-business forms, 202 explanation of, 193–194 family size and marital status and, 195–196 gender and, 195 income and, 195 Derived demand, 144 Descriptive research, 103 Differentiated targeting, 209 Diffusion explanation of, 175 of new products, 176–178 Digital video recorders (DVRs), 229–230 Direct competition, 68–69 Direct marketing, 227 Direct ownership, 46 Disposable income, 74 Dissociative reference group, 135 Distribution See also Logistics; Logistics functions customer service and, 347 in marketing plan, 41–42, 61–62, 423 marketing research and, 100 Distribution centers (DC) explanation of, 271 functions of, 271–272 network design for, 272–273 Distribution channels explanation of, 256–257 large retailers as, 274 Diversification, 40–41 Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, 371 Dollar fill rate, 350 Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), 84–85 Dumping, 303 Dynamic pricing, 301–302 E Early adopters, 176 Early majority, 176, 177 Ease of doing business, 348 Eco-branding, 381 Eco-efficiency, 381 Economic factors consumer confidence and, 72–74 corporate social responsibility and, 371 gross domestic product and, 70 income distribution and, 70–72 inflation and, 72 marketing decisions and, 70 for nonprofit organizations, 88 Economic recession of 2007, 9, 13, 70, 74 Educational attainment, 76–77 80/20 rule, 200 Elastic demand, 292 Electronic communication, 160 Electronic data interchange (EDI), 264–265 Elevator pitch, 33–34 Employees empowerment of service, 354–355 financial rewards for, 408–410 nonfinancial rewards for, 407–408 Empowerment explanation of, 354 of service employees, 354–355 Energy Policy Act (1992), 383 Enterprise resource planning (ERP), 264 Environment See Marketing environment Environmental cost leadership, 382 Environmentalism explanation of, 379 global, 384, 386 Environmental marketing See also Sustainable marketing benefits of, 383 environmental regulation and, 383 explanation of, 379–380 packaging and, 326 strategies for, 380–383 Environmental regulations, 383 Environmental scanning explanation of, 70 for new-product strategy development, 164 Escalator clauses, 296–298 Esteem, 141 Ethical issues in competitive intelligence, 114 corporate social responsibility and, 372, 391–392 in debit card fees, 52 decision-making framework for, 18–20 in evaluating customer needs and wants, in false or misleading product claims, 251 in marketing food to children, 133–134, 153–154 in new-product development, 174–175 in pricing, 305–308, 310–311 privacy as, 119–120, 365–366 in purchasing, 270, 283–284 in relationship management, 360 in research use, 120 in reverse mortgages, 92 in social media use, 124, 218 in state lotteries, 25 in target marketing, 210, 212 in television programming decisions, 416 for university brands, 338 Ethics codes of, 16, 17 explanation of, 16, 372 impact on business, 16 Ethnicity, 77, 78 See also Cultural diversity Euro, 82 European Union (EU) banking crisis and, 13 environmentalism and, 384, 386 function of, 85 Evaluative criteria, 131 Excel (Microsoft), 311 Exchange, Executive summary example of, 54–55 in marketing plan, 33–34 Expense forecasts, 42–43 Experiments, 106–107 Exploratory research, 102 Exporting, 44–45 External idea generation, 165–166 External information search, 129–130 External marketing environment demographic, 74–77 economic, 70–74 explanation of, 69–70 legal, 79–80 political, 79 sociocultural, 78–79 technological, 81–82 F Fad products, 182, 183 Fair Packaging and Labeling Act (1966), 80 Subject Index Families as influence on consumer buying decisions, 133–134 segmentation by size of, 195–196 Family life-cycle, 134 Fashion products, 182, 183 Federal government, marketing to, 145–146 Federal Trade Commission Act (FTCA) (1914), 307–308 Feedback on branding strategy, 318 in market positioning, 213–214 Females, 76 See also Gender Field experiments, 106–107 Fill rate, 349, 350 Financials example of, 62–63 in marketing plan, 42–43, 62–63 Fixed costs, 293 Fixed salaries, 408 Focus groups explanation of, 105 on Internet, 112 Follow-up, with customers, 243 Food product marketing, 133–134, 153–154, 194, 251 Franchising, 45–46 Free association, 320 Frequency measures, 405 G Gambling, state lotteries as, 25 Gender, 76, 195 Generation Y See Millennials Geographic segmentation for business-to-business forms, 203 customer convenience and, 196–197 explanation of, 196 market size and, 196, 197 population shifts and, 198–199 Germany, consumer buying decisions in, 138 Gift dash, 356 Global brands balance between local and, 332, 334 explanation of, 331 list of most valuable, 331 U.S brands strength and, 331–332 Globalization explanation of, 13–14 marketing research needs and, 98–99 new-product development and, 164 transportation and, 279–280 Global marketing brands and, 331–332, 334 consumer buying decisions and, 137–138 direct ownership and, 46 environmentalism and sustainability and, 384, 386 explanation of, 14–15 exporting and, 44–45 franchising and, 45–46 goods and services sourcing and, 269 joint ventures and, 46 licensing and, 45 pricing strategy and, 302–303 segmentation bases and, 204–206 social media and, 387–388 Global marketing environment cultural fit and, 86 currency fluctuation and, 82–83 explanation of, 82 income distribution and, 83 technology and, 86 trade agreements and organizations and, 83–85 Global marketing research explanation of, 116–117 issues for conducting, 117, 119 Global segmentation explanation of, 204–205 marketing mix and, 205–206 Global Sustainable Tourism Council (GSTC), 387 Goods, 160 Google Alerts, 330 Google Analytics, 406 Government markets, 145–146 Gray market, 302–303 Green market, 379–380 Green marketing See Environmental marketing Gross domestic product (GDP), 70 Gross margin, 398 Growth stage, in product life cycle, 180 H Hierarchy of needs (Maslow), 139–141 Higher education, marketing environment and, 76–77 High-involvement products, 143 High-learning products, 182, 183 Hispanics, demographic information about, 77, 78 Home Equity Conversion Mortgages program, 92 Hypothesis, 101 I ICC/ESOMAR International Code on Marketing and Social Research, 120 Idea generation, for new-product development, 165–166 Idea screening, for new-product development, 166–167 Implementation, of marketing plan, 43 449 Income demographic segmentation and, 195 disposable, 74 distribution of, 70–72 segmentation by, 195 India GDP growth rate in, 70 middle-class consumption in, 83 silk prices and, 303 Indirect competition, 69 Inelastic demand, 292 Inflation, 72 Information search, in consumer buying process, 129–131 Informative advertising, 226 Innovators, 176 Institutional markets, 146–147 Integrated marketing communications (IMC), 225–226 Intermodal transportation, 278–279 Internal idea generation, 165 Internal information search, 130–131 International Monetary Fund (IMF), 85 Internet See also Social media advertising on, 227–228 collecting primary data on, 107 dating sites on, 141, 165 marketing to children on, 133–134, 153–154 privacy issues and, 218 to reach millennials, 75 as research tool, 112 social media and, 12 Interpersonal skills, importance of, 52–53 Interviews, for research purposes, 105–106 Introduction stage, in product life cycle, 178, 180 Inventories costs of, 267 management of, 265–267, 347 types of, 266–267 Inventory carrying costs, 259 Involvement, buying decision level of, 142–143 Item fill rate, 349–350 J Japan brand preferences in, 332, 334 tsunami in 2011 in, 13 VALS framework in, 200 Joint ventures, 46 Judgmental techniques, 115 Just-in-time (JIT) manufacturing process, 265 K Klout, 406 Korea, brand preferences in, 334 450 Subject Index L Laggards, 177 Late majority, 177 Learning, consumer buying decisions and, 139 Legal issues corporate social responsibility and, 371–372 environmental regulations as, 383 in pricing, 305–308 sweepstakes as, 237–238 Legal system marketing environment and, 79–80 nonprofit organizations, 89 Licensing, 45 Lifestyle, consumer buying decisions and, 136 Lifestyle segmentation, 199 Lifetime value (LTV) analysis, 358, 362 Line fill rate, 350 Local governments, 146 Logistics See also Distribution; Supply chains explanation of, 6, 263 impact of, 263–264 measuring success of, 403–404 supply chain strategies and, 264–265 Logistics functions distribution as, 271–274 explanation of, 265 inventory management as, 265–268 materials management as, 270 purchasing as, 268–270 transportation management as, 276 warehousing as, 270–271 Lotteries, state, 25 Love and belonging needs (Maslow), 140–141 Low-involvement products, 142–143 Low-learning products, 182, 183 Loyalty programs, 238 M Magazines, advertising in, 233–234 Manufacturer brands, 324–325 Marginal cost, 290 Marginal revenue, 290 Marital status, segmentation by, 195–196 Market development, 40 Marketing See also Globalization; Global marketing business-to-business, 144–151 to children, 133–134 consumer needs vs wants as basic concept in, 8–9 to consumers (See Consumer decision-making process) corporate social responsibility and, 15 direct, 227 environmental, 379–383 ethical issues related to, 9, 16–20 future outlook for, 7–8 historical background of, 6–7 niche, 209–210 for nonprofit organizations, 20, 22 relationship, 7, 353–354 sustainable, 375–378 tips for self-marketing, 22, 26, 52–53 value of, 4–6, Marketing audits explanation of, 401–402 place and, 403–404 price and, 403 products and, 402–403 promotion and, 404–406 social media and, 406 Marketing channels See Distribution channels Marketing concept customer satisfaction and, 352–353 explanation of, Marketing dashboard, 401, 402 Marketing environment competitive, 68–69 external, 69–82 (See also External marketing environment) global, 82–86 nonprofit, 88–90 Marketing expenditures, 398 Marketing information system (MIS), 110–111 Marketing mix explanation of, 9–10 logistics and, 264 in marketing plan, 60–62 market segments and, 205–206 place and, 11, 41–42 price and, 10–11 product and, 10, 41 product life cycle and, 182–184, 227 promotion and, 11–12, 41 repositioning and, 215 Marketing performance See Performance measurements Marketing plan components of, 31, 32 controls in, 43, 63–65 example of, 54–65, 418–427 executive summary in, 33–34, 54–55 explanation of, 31 financials in, 42–43, 62–63 marketing strategy in, 37–42, 58–62 mission statement in, 31–33 situation analysis in, 34–37, 55–58 Marketing research competitive intelligence and, 113–114 ethical issues related to, 119–120 explanation of, 98–99 global, 116–117, 119 impact of, 99–100 Internet-enabled, 112 marketing information systems for, 110–111 sales forecasting and, 114–115 trends in, 121 types of, 102–103 Marketing research industry, 116 Marketing research process data analysis step in, 108–109 data collection step in, 104–107 explanation of, 100, 101 plan definition step in, 101–104 problem definition step in, 100–101 report as culmination of, 110 Marketing research reports, 110 Marketing return-on-investment (ROI), 398 Marketing strategy examples of, 58–62, 418–419 in global marketplace, 44–46 objectives for, 37–38 strategic directions and, 39–42 target markets and positioning and, 38–39 Market penetration, 39 Market positioning explanation of, 212 in marketing plan, 38–39, 60, 422 repositioning and, 215 steps in, 212–213 Market positioning statement, 214–215 Markets explanation of, 34 government, 145–146 institutional, 146–147 reseller, 147–148 size of, 196 Market segmentation behavioral, 200, 202 business-to-business, 202–203 criteria for effective, 206 demographic, 193–196 explanation of, 192 function of, 192–193 geographic, 196–199 international, 204–206 psychographic, 199–201 radio advertising and, 232 social media and, 203 Market share analysis, 400 Markup pricing, 298–299 Mass production, 160 Materials management distribution and, 271–274 explanation of, 270 warehouse functions and, 270–271 Subject Index Mathematical modeling, 107 Maturity stage, in product life cycle, 180 Membership reference group, 135 Metropolitan Statistical Areas (MSA), 196, 197 Mexico, North American Free Trade Agreement and, 83–84, 303 Millennials, 75 Mission statements example of, 59 explanation of, 31–32 of leading companies, 32–33 Mobile advertising, 235 Mobile technology, pricing and, 301 Mobile tracking technology, 120 Modified rebuy, 150–151 Mortgages, reverse, 92 Motivation esteem and, 141 explanation of, 139 financial rewards for employee, 408–410 love and belonging and, 140–141 nonfinancial rewards for employee, 407–408 physiological needs and, 139–140 safety needs and, 140 self-actualization and, 141 Multinational companies explanation of, 38 marketing research needs of, 98–99 My Top Tweet, 406 N Narrowcasting, 229 Needs customer wants vs customer, 8–9 explanation of, hierarchy of, 139–141 Netnography, 106 New buy, 148 New category entries, 162–163 New-product development ethical issues in, 174–175 risks in, 172–173 sequential vs concurrent, 171–172 New-product development process business analysis stage in, 167 explanation of, 164 idea generation stage in, 165–166 idea screening stage in, 166–167 product development stage in, 168 product launch stage in, 169–172 test marketing stage in, 168–169 New products See also Products adoption of, 175–178 explanation of, 160–161 as new category entries, 162–163 new-to-the-market, 161–162 as product line extensions, 163 revamped products as, 163 Newspapers, advertising in, 233–234 New-to-the-market products, 161–162 Niche marketing, 209–210 Nonprobability sampling, 103 Nonprofit brand equity, 335 Nonprofit organizations See also Organizations branding for, 334–335 growth rate of, 20 marketing for, 20, 22 marketing environment for, 88–90 revenue analysis for, 399–400 strategic planning in, 48–49 Nontraditional advertising, 235–236 North American Free Trade Agreement (NAFTA), 14, 83–84, 146, 303 North American Industry Classification System (NAICS), 146–148 O Obesity, childhood, 34, 1153 Objections, in personal-selling process, 242 Objective-and-task method, for promotion mix budgeting, 247–248 Objective measures, 406 Observability, 177 Observation, for research purposes, 106 Obsolete inventory, 266–267 Odd pricing, 299 Offshore, 167 Older individuals marketing to, 194 statistics related to, 74–75 Online dating, 141, 165 Online test marketing, 169 On-time delivery, 350–351 Opinion leaders, 135–136 Opportunities, for organization, 36–37, 57 Order cycle, 346–347 Order cycle time, 351 Organizational culture, 166 Organizational structure as barrier to change, 412 in marketing strategy, 43 Organizations See also Nonprofit organizations barriers to change in, 410, 412–413 profitability comparison of world’s most ethical, 18 research information on, 113–114 Outdoor advertising, 234–235 P Packaging brand image and, 325–326 explanation of, 325 logistics decisions and, 263 451 Paid display advertising, 227 Paid search advertising, 227 Pay-for-performance compensation, 408 Penetration pricing See Volume maximization Percentage-of-sales method, for promotion mix budgeting, 247 Perceptual maps, 212–213 Perfect order rate, 350 Performance measurements barriers to change and, 410, 412–413 customer service objectives and, 349 importance of, 396 for individual marketing performance, 407–410 marketing audits and, 401–406 marketing return on investment as, 398 market share analysis as, 400 principles for, 396–397 profitability analysis as, 400–401 revenue analysis as, 398–400 Performance metrics, 396 Personal buying, 270 Personal factors, consumer buying decisions and, 136–137 Personality, consumer buying decisions and, 136 Personal selling advantages of, 239 explanation of, 225, 238–239 impact of social media on, 239–240 measuring success of, 405–406 process of, 240–243 Persuasive advertising, 226 Pharmaceutical industry, new-product development in, 174–175 Philanthropy, corporate, 372, 373 Picking, 271 Pipeline inventory, 266 Pipelines, 278 Place, 11 See also Distribution Plan development, for marketing research, 101 Planned obsolescence, 175 PLC curve, 182–183 Political action committees (PACs), 79 Political climate marketing and, 79 for nonprofit organizations, 88–89 Population shifts, 198–199 Positioning See Market positioning Positioning statement, 214–215 Post-purchase evaluation, in consumer buying process, 132 Posttest, 404 Preapproach, to personal selling, 240 Predatory pricing, 306 452 Subject Index Predictive modeling, 358 Prestige pricing, 299–300 Pretest, 404 Price bundling, 300–301 Price discrimination, 305 Price elasticity of demand, 292 Price fixing, 306 Price sensitivity, 291, 403 Price-setting process analyzing competitive price environment in, 294–295 defining pricing objectives in, 289–290 determining costs in, 292–294 evaluating demand in, 290–292 final price choice in, 295–296 monitoring and evaluating, 296–298 Price skimming See Profit maximization Prices/pricing bundling, 300–301 deceptive, 306–307 effectiveness of, 296–298 for environmentally friendly products, 382 explanation of, 288 global marketing and, 302–303 importance of, 288–289 legal and ethical issues in, 305–308 in marketing mix, 10–11 in marketing plan, 62, 423–424 marketing research and, 99–100 markup, 298–299 odd, 299 penetration, 290 predatory, 306 prestige, 299–300 reference, 295–296 seasonal discount, 300 strategy for, 41 survival, 290 technology and, 301–302 underpricing, 296 U.S laws impacting, 307–308 Pricing, dynamic, 301–302 Primary data collection of, 105–107, 112 explanation of, 101–102 Print advertising, 233–234 Privacy customer relationship management and, 360 as ethical issue, 119–120, 365–366 marketing research and, 119–120 social media use and, 218 Private label brands, 324–325 Probability sampling, 103, 104 Problem definition, for marketing research, 100–101 Problem recognition, 128–129 Product accumulation, 271 Product adoption/adopters categories of, 177–178 process of, 175 types of, 175–177 Product allocation, 271 Product assortment, 272 Product development, 39–40, 168 See also New-product development; New-product-development process Production orientation, 6–7 Product launch, 169–170 Product life cycle (PLC) decline stage of, 180–181 estimates of product life length and, 181–182 explanation of, 178 growth stage of, 180 introduction stage of, 178, 180 marketing mix and, 182–184, 227 maturity stage of, 180 PLC curve projections and, 182–183 Product line, 163 Product line extensions, 163 Product mix, 181 Product placement, 230 Products See also New products fad, 182, 183 fashion, 182, 183 high-involvement, 142–143 high-learning, 182, 183 low-involvement, 142–143 low-learning, 182, 183 in marketing mix, 10 in marketing plan, 41, 60–61, 421–422 marketing research and, 99 measuring success of, 402–403 new category entry, 162–163 new-to-the-market, 161–162 revamped, 163 sources of information on, 328 Product sortation, 271 Profit, 288 Profitability analysis, 400–401 Profit margin, 298 Profit maximization, 289–290 Projective techniques, 320 Promotion See also Advertising; Personal selling; Public relations; Sales promotion budgeting strategies for, 247–248 elements of, 12, 225–226 explanation of, 224 finding optimal mix for, 245 in marketing mix, 11–12, 224–225 in marketing plan, 41, 61, 422–423 marketing research and, 100 measuring success of, 404–406 tailored to customer profiles, 359 Prospecting, 240 Prospects, method to qualify, 240 Prototypes, 168 Psychographic segmentation explanation of, 199 lifestyle and, 199 VALS network and, 199–201 Psychological needs (Maslow), 139–140 Psychological processes attitude and, 138 consumer learning and, 139 explanation of, 138 motivation and, 139–142 Publicity, 244–245 Public relations explanation of, 225, 243 publicity as, 244–245 tools for, 243–244 trends in, 245 Pull strategy, 260–261 Purchase orders, 268 Purchasing See also Consumer decisionmaking process activities related to, 268–269 business, 144 consumer, 131–132 ethical issues in, 270, 283–284 explanation of, 268 Purchasing power, 72 Push-pull strategy, 261 Push strategy, 260 Put-away, 271 Q Qualifying, in personal-selling process, 240 Qualitative data, 108, 109 Qualitative research advantages and disadvantages of, 109 Internet as source for, 112 to measure brand equity, 320–321 types of, 105–106, 320 Quantitative data advantages and disadvantages of, 109 analysis of, 108–109 Internet as source for, 112 Quantitative research to measure brand equity, 321 types of, 106–107 Quasi-strategic greening, 380, 381 Questionnaires, 106 Questions, power of, 52 Quota sampling, 103 R Radio advertising, 231–232 Railroads, 277 Rate-of-trial method, 402 Reach, 404–405 Rebates, 237 Subject Index Rebranding See Brand revitalization Rebuy modified, 150–151 straight, 148, 150 Recency-frequency-monetary analysis, 357 Recession See Economic recession of 2007 Reciprocity, 270 Recognition test, 404 Reference groups consumer buying decisions and, 134–136 types of, 135 Reference prices, 295–296 Regression techniques, 115 Relationship development, in marketing plan, 424–425 Relationship marketing, 7, 353–354 Reliability, 347 Repositioning, 215 Research See Marketing research; Marketing research process Research reports, 110 See also Marketing research Reseller markets, 147–148 Responsiveness, 351 Retailers, 274 Return-on-investment (ROI) logistics and, 264 marketing, 398 new products and, 166, 167 Revamped products, 163 Revenue, 288, 290 Revenue analysis explanation of, 398 in for-profit organizations, 398–399 in nonprofit organizations, 399–400 Reverse mortgages, 92 Ritual consumption, 131–132 Robinson-Patman Act (1936), 80, 307 S Safety needs (Maslow), 140 Salaries, 408, 409 Sales and operations planning (S&OP), 403 Salesforce compensation, 409–410 Sales forecasting disadvantages of, 115 explanation of, 42, 114 judgmental techniques for, 115 regression techniques for, 115 time series techniques for, 114–115 Sales orientation, Sales presentations, 241–242 Sales promotion contests and sweepstakes as, 237–238 coupons as, 236–237 explanation of, 225, 236 loyalty programs as, 238 rebates as, 237 samples as, 237 trade sales promotions as, 238 Sales quotas, 406 Samples, 103, 237 Sampling, 103 Sampling methods, 103–104 Seasonal discounts, 300 Seasonal stock, 266 Secondary data collection of, 104–105 explanation of, 101–102 Security, customer relationship management and, 360 Segmentation See Market segmentation Self-actualization, 141 Selling See Personal selling Sequential new-product development, 171–172 Service employees, 354–355 Services, 160 Share of customer, 360 Sherman Antitrust Act (1890), 80 Ships, 277–278 Simple random sampling, 103 Simulated test marketing, 169 Situation analysis competition in, 37 examples of, 55–58, 419–421 explanation of, 34 market summary in, 34–35 SWOT analysis in, 35–37 Snowball sampling, 103–104 Social factors family influences and, 133–134 opinion leaders and, 136 reference groups and, 134–136 Social media See also Internet advertising on, 227 branding and, 326–330 corporate social responsibility and, 386–388 customer engagement through, 327–329 customer service and, 348–349 ethical issues related to, 124, 218 explanation of, 12 idea screening and, 166–167 marketing to children on, 154 market segmentation and, 203–204 measuring effectiveness of, 406 as research tool, 112, 124 tools to monitor, 330 Social Media Monitor (Wildfire), 406 Social Mention, 330 Social responsibility See Corporate social responsibility (CSR) 453 Sociocultural factors, 78–79 Speculation strategy See Push strategy Speeches, as public relations tool, 244 Stakeholder responsibility, 15 Standardized research firms, 116 State governments, 146 State lotteries, 25 Storage, 270–271 Straight rebuy, 148, 150 Strategic greening, 380, 381 Strategic planning background of, 30–31 controls and, 43 explanation of, 31 financials and, 42–43 globalization and, 44–46 marketing plan and, 31–37 marketing strategy and, 37–42 nonprofit organizations and, 48–49 Strategy, 37 See also Marketing strategy Strengths, organizational, 35, 56 Subjective measures, 406 Substitute products, 68–69 Summarization close, 243 Suppliers contracts with, 268 developing capabilities of, 269 monitoring performance of, 269 selecting and qualifying, 268 Supply chain management, 258–259 Supply chain orientation, 257 Supply chains explanation of, 6, 256 flow of, 256–257 integration of, 259 as network, 257 Supply chain strategies explanation of, 260 logistics and, 264–265 pull, 260–261 push, 260 push-pull, 261 selection of appropriate, 261–262 Surveys, 106 Survival pricing, 290 Sustainability explanation of, 375–376 global interest in, 384, 386–388 social media and, 387–388 Sustainability vision, 377 Sustainable marketing See also Environmental marketing consumerism and, 377–378 explanation of, 376 vision and, 377 Sustainable value innovation, 382–383 Sweepstakes, 237–238 454 Subject Index SWOT analysis example of, 36, 56 explanation of, 35 external considerations in, 36–37 internal considerations in, 35–36 for new-product strategy development, 164 T Tactical greening, 380, 381 Targeting, 209 Target markets ethical issues in, 210, 212 explanation of, 38–39, 207 in marketing plan, 59, 421 narrowcasting and, 229 positioning and, 212–215 selection of, 207–208 strategies for, 208–210 Tariffs, 84, 303 Taxes, 89 Technology See also Internet; Social media marketing environment and, 81–82, 86 nonprofit organizations and, 89–90 pricing and, 301–302 product and service offerings and, Telephone Consumer Protection Act (1991), 80 Television advertising advantages of, 229 disadvantages of, 229–230 explanation of, 228–229 product placement and, 230 Test marketing, 168–169 Threats, for organization, 36, 57 Time considerations, consumer decision making and, 133 Timeliness, 346–347 Time series techniques, 114–115 Touch point, 355 Trade, tariffs and, 303 Trade agreements Dominican Republic-Central America Free Trade Agreement, 84–85 European Union, 85 function of, 14, 83 North American Free Trade Agreement, 83–84 Trade sales promotions, 238 Transportation carrier selection for, 280 intermodal, 278–279 international modes of, 279–280 management of, 276 modes of, 276–278 new products and, 160 selecting mode of, 278–279 Trialability, 178 Trial-method close, 243 Trucks, 277 Twitter Search, 330 U Unaided recall test, 404 Unbundling, 296–297 Underpricing, 296 Undifferentiated targeting, 209 Unemployment rate, 76, 77 Universities funding for public, 89 graduation rates for, 76 U.S dollar, 82 V Validity, 108 VALS network, 199–201 Value (quality) communication of, creation of, 4–5 delivery of, 5–6 Values (personal), 137 Variable costs, 293 Video game advertising, 235–236 Volume maximization, 290 Volunteerism, 374–375 W Wants, 8–9 Warehouses, 270–271 See also Distribution centers (DC) Water transportation, 277–278 Weaknesses, organizational, 35–36, 56 Wheeler-Lea Act (1938), 308 Wheeler-Lea Amendment (1938), 80 Wholesalers, 148 Wholesaling, 148 Wildfire’s Social Media Monitor, 406 World Trade Organization (WTO), 85 Y Yield management, 302 .. .MARKETING C Shane Hunt Arkansas State University John E Mello Arkansas State University MARKETING Published by McGraw -Hill Education, Penn Plaza, New York, NY 10121 Copyright © 2015 by McGraw -Hill. .. Jenifer and their two children, Andrew and Sarah John E Mello Dr John Mello received his PhD from the University of Tennessee John is a wellrespected educator at both the undergraduate and graduate... product, and we wish the very best for your future Sincerely, C Shane Hunt John E Mello vii CREATING VALUE THROUGH RELEVANCE H my Ename L Lis O Hello, and welcome to Hunt and Mello s Marketing