Marketing Management Second Edition This page intentionally left blank Marketing Management Second Edition Greg W Marshall ROLLINS COLLEGE Mark W Johnston ROLLINS COLLEGE MARKETING MANAGEMENT, SECOND EDITION 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 Previous edition © 2010 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 978-0-07-802886-1 0-07-802886-8 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 Editors: Sean M Pankuch and Jane Beck Digital Product Analyst: Kerry Shanahan Marketing Manager: Donielle Xu Director, Content Production: Terri Schiesl Content Project Manager: Dana M Pauley Content Project Manager: Susan Lombardi Senior Buyer: Sandy Ludovissy Design: Margarite Reynolds Cover Image: © Bernard Jaubert/imagebroker/Corbis Senior Content Licensing Specialist: Jeremy Cheshareck Typeface: 10/12 Palatino LT Std 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 Marshall, Greg W Marketing management / Greg W Marshall, Rollins College, Mark W Johnston, Rollins College.—Second edition pages cm Includes bibliographical references and index ISBN 978-0-07-802886-1 (alk paper)—ISBN 0-07-802886-8 (alk paper) Marketing—Management I Johnston, Mark W II Title HF5415.13.M3699 2015 658.8—dc23 2013049003 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 McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites www.mhhe.com To Patti and Justin -Greg To Susan, my love, and Grace, my joy, thank you -Mark ABOUT THE AUTHORS Greg W Marshall Greg W Marshall is the Charles Harwood Professor of Marketing and Strategy in the Roy E Crummer Graduate School of Business at Rollins College in Winter Park, Florida, and is also the academic director of the Executive DBA program there For three years he served as vice president for Strategic Marketing for Rollins He earned his PhD in Business Administration from Oklahoma State University, taking a marketing major and management minor, and holds a BSBA in marketing and an MBA from the University of Tulsa Before joining Rollins, Greg was on the faculty at the University of South Florida, Texas Christian University, and Oklahoma State University He currently also holds an appointment as professor of Marketing and Strategy at Aston Business School in Birmingham, United Kingdom Prior to returning to school for his doctorate, Greg’s managerial industry experience included 13 years in consumer packaged goods and retailing with companies such as Warner Lambert, Mennen, and Target Corporation He also has considerable experience as a consultant and trainer for a variety of organizations and has been heavily involved in teaching Marketing Management at multiple universities to both MBA and undergraduate students Greg is editor of the Journal of Marketing Theory and Practice and from 2002–2005 was editor of the Journal of Personal Selling & Sales Management His published research focuses on the areas of decision making by marketing managers, intraorganizational relationships, and sales force performance He is past president of the American Marketing Association Academic Division and also was a founder and served for five years on its Strategic Planning Group He is a Distinguished Fellow and past president of the Academy of Marketing Science and is a Fellow and past president of the Society for Marketing Advances Mark W Johnston Mark W Johnston is the Alan and Sandra Gerry Professor of Marketing and Ethics in the Roy E Crummer Graduate School of Business at Rollins College in Winter Park, Florida He earned his PhD from Texas A&M University and holds a BBA and an MB from Western Illinois University Before joining Rollins, Mark was on the faculty at Louisiana State University Prior to his academic career, he worked in industry as a sales representative for a leading distributor of photographic equipment His research has been published in a number of professional journals including Journal of Marketing Research, Journal of Applied Psychology, Journal of Business Ethics, Journal of Marketing Education, Journal of Personal Selling & Sales Management, and many others Mark has been retained as a consultant for firms in a number of industries including personal health care, chemical, transportation, hospitality, and telecommunications He has consulted on a wide range of issues involving strategic business development, sales force structure and performance, international market opportunities, and ethical decision making Mark also works with MBA students on consulting projects around the world for companies such as Tupperware, Disney, and Johnson & Johnson He has conducted seminars globally on a range of topics including the strategic role of selling in the organization, developing an ethical framework for decision making, improving business unit performance, and structuring an effective international marketing department For more than two decades Mark has taught Marketing Management, working with thousands of students His hands-on, real-world approach has earned him a number of teaching awards vi This page intentionally left blank PREFACE INTRODUCTION No doubt about it, the field of marketing is really changing The changes in the practice of marketing management are dramatic and important, and call attention to a number of organizational issues in today’s business milieu that differ from the past In general, marketing management today is: • • • • • • • • • Very strategic—customer centricity is now a core organizational value Heavily enabled by technology and data Focused on facilitating value for the customer Concerned with internal alignment of people, processes, systems, and strategies to effectively compete through a customer focus Accountable to top management through diligent attention to metrics and measurement Oriented toward service as the driver of product Focused on a long-term customer relationship–centered understanding of the need to develop deep commitments from current profitable customers while also cultivating new ones “Owned” by everybody in the firm, to one degree or another Critically committed to exhibiting the utmost ethical behavior in all dealings In contrast, marketing management in the past has been: • Much less strategic in nature • Very 4Ps oriented—more tactical • Less relationship-centered, thus focused on shorter time horizon decision making • Less focused on the ability to consistently deliver value for the customer • Oriented toward product as the core deliverable • Done by marketing departments • Much less accountable to upper management in terms of measurement of marketing success WHY WE WROTE THIS BOOK Given the dramatic changes in the field of marketing, it is a sure bet that the job of leading and managing marketing’s contributions to the organization and its customers, clients, partners, and society at large has changed at a concurrent level Yet, the typical marketing management book on the market today does not effectively capture and communicate to students how marketing management is really practiced in the 21st century world of business Clearly, it is time for an updated approach to teaching and learning within the field This book is designed to fulfill that need We hear it from colleagues all the time—the complaint that the book they are using in their marketing management course “doesn’t say what I believe the students need to hear” or that it “is too simplistic—like a marketing principles book” or that it “doesn’t match what my MBAs actually on the job” or that it “reads like an encyclopedia of marketing” or that it “has too much about everything and not enough focus on anything.” During the development process for this book, viii we heard comments like these and others from hundreds of colleagues in focus groups, in written reviewer comments, and in numerous conversations around the world about the course As a result, we became convinced that such comments truly are pervasive among instructors who teach marketing management, whether as the introductory MBA course, capstone undergraduate course, or first focal course after the undergraduate marketing principles course Many marketing management instructors are looking for a book that is: • Written for today’s students in an up-to-date, user-friendly, yet professional and thorough style • Able to strike an effective balance between presenting the new world order of marketing at the strategic, operational, and tactical levels • A step up from the previous norm in terms of support materials for the classroom Marshall/Johnston’s Marketing Management, 2e has taken great effort to represent marketing management the way it is actually practiced in successful organizations today In our view, leading and managing the aspects of marketing to improve individual, unit, and organizational performance—marketing management—is a core business activity Its relevance is not limited to just marketing departments or marketing majors And business students of all backgrounds should appreciate the impact of effective marketing management on their own professional careers as well on as the overall success of their organizations Bottom line, the ability to great marketing management is relevant to everyone in a firm The content of the book reflects the major trends in the managerial practice of marketing, and the pedagogy is crafted around learning and teaching preferences in today’s classroom Above all, it is written in a style that is appealing for both students and instructors so that students will actually enjoy reading the material and instructors will be proud to teach from it and confident about presenting its up-todate, professional, and thorough approach to their courses STRUCTURE OF THE BOOK Marshall/Johnston’s Marketing Management, 2e has six major parts, reflective of the logical sequence of building blocks for the course • Part One: Discover Marketing Management In this part, students gain an understanding of the dynamics of the field Significant attention is paid to framing the importance of studying marketing to future success as a manager To kick off the marketing planning theme early in the course, Part One includes comprehensive coverage of this aspect along with an example marketing plan • Part Two: Use Information to Drive Marketing Decisions It has often been said that information is the fuel that fires the engine of marketing management decision making With this in mind, Part Two focuses on effective management of information to better understand customers, both in the consumer and business marketplaces Effective segmentation, target marketing, and positioning are at the core of successful marketing and this part provides a modern managerial treatment of these critical topics, including connecting CRM capabilities with other relevant competencies and capabilities of successful marketers • Part Three: Develop the Value Offering—The Product Experience This “product suite” of chapters presents a coherent and comprehensive drill-down into today’s world of product strategy, branding, and new-product development Reflective of the notion that service is a key driver of product success, we devote a separate chapter to making important links between service and the overall offering ix Shammen, Asif, 155 Shannon, S., 318 Shaoming, Z., 439 Shapiro, Benson P., 177 Sharma, Arun, 24, 438 Sharma, Bishnu, 51 Shaver, Eric F., 262 Shay, Jeffrey P., 471 Shearman, S., 439 Shen, C Y., 155 Sherman, Lauren, 195 Shervani, T A., 437 Sheth, Jagdish N., 24, 438 Shiv, Baba, 319 Shocker, Allan D., 194 Shoemaker, Robert, 236 Shugan, Steven M., 413, 471 Shughart, William F., II, 320 Sichtmann, C., 438 Sierra, Jeremy J., 291 Silayoi, Pinya, 262 Silver, Jon, 126 Silverman, Ed, 262 Siminitiras, A C., 91 Simon, Bill, 345 Sinclair, Janas, 413 Singh, Jagdip, 292, 439 Singh, Nanua, 234 Singh, Vishal, 320 Sinha, Indrajit, 319 Sinha, P., 438 Sirdeshmukh, Deepak, 292 Sirgy, M Joseph, 154 Siriba, D N., 503 Siseth, Pal R., 156 Sisodia, Rajendra S., 24 Sjodin, Henrik, 236 Skiera, Bernd, 501 Skinner, L., 438 Skinner, Lauren R., 357 Slater, Robert, 51 Slater, Stanley F., 51, 471 Slavin, Stephen, 136 Slotegraaf, Rebecca J., 263, 503 Smalley, Karen, 24 Smidts, Ale, 90 Smith, Alan D., 356 Smith, Amy K., 292 Smith, Denis, 52, 503 Smith, H L., 438 Smith, J Brock, 236 Smith, Jeremy, 23 Smith, Jessica, 194 Smith, John, 324 Smolker, Rachel, 155 Snow, Charles C., 38, 39 Soares, Joao Oliveira, 470 Solem, O., 263 Sood, Suresh, 261 Sorescu, B., 235 Sorvillo, Nick, 236 I-12 Name Index Souchon, Anne L., 90 Southwick, R., 51 Souza Fontana, Mariadel Mar, 235 Spanjol, Jelena, 235 Sparrow, Nick, 92 Spataro, Nancy, 434 Speece, Mark, 262 Speed, Richard J., 318 Sperduti, A., 234 Spink, Amanda, 358 Srinivasan, Raghavan, 502 Srinivasan, Raji, 395, 502 Staelin, Richard, 413 Stagg, Chris, 235 Stainburn, Samantha, 156 Stamps, M B., 437 Stan, Simona, 292 Stanford, Duane, 23 Stanley, Sarah M., 127 Starvish, Maggie, 91–92 Stedman, Craig, 91 Steenkamp, Jan-Benedict E M., 437 Steinberg, Brian, 194, 394 Stelter, Brian, 91 Sterling, Jay U., 154, 195 Stewart, David W., 23, 262, 503 Stobbe, Mike, 126 Stock, Ruth Maria, 24 Stogner, Sam, 416 Stokes, David, 91 Stone, B., 502 Story, Louise, 127 Stotzer, Shelly, 475 Strauss, Karsten, 471 Stremersch, Stefan, 503 Stride, Helen, 261 Stuyck, Jules, 320 Sudharshan, D., 91 Sudhir, K., 355 Suh, Jaebeom, 413 Sullivan, Chris T., 292 Sullivan, P., 126 Sullivan, Ursula Y., 193 Sun, Baohong, 319 Sundara, Sreeram Ramakrishnan, 502 Suter, Tracy A., 262 Svahn, Senja, 470 Swaidan, Ziad, 394 Swaminathan, Vanitha, 503 Swan, J E., 438 Swift, Ronald S., 196 Synodinos, Nicolaos E., 395 T Takeuichi, Riki, 471 Talley, K., 24 Tam, J L M., 438 Tamilla, Robert D., 356 Tanner, Christian, 156 Tansuhaj, Patriya, 51 Tapp, Alan, 91 Taudes, Alfred, 394 Tayles, Mike, 320 Taylor, A J., 439 Taylor, Charles R., 394 Taylor, L., 438 Taylor, Ronald D., 127 Taylor, Sam, 261 Teich, Ira, 194 Tellis, Gerald J., 235, 503 Terryn, Evelyne, 320 Terwiesch, Christian, 235, 320 Theodosiou, M., 470 Thiagarajan, Palaniappan, 127 Thilenius, Peter, 355 Thirkell, Peter C., 196 Thomas, Dave, 397 Thomas, Jacquelyn S., 193, 196, 439 Thomas, M W., 234 Thorpe, Daniel, 502 Tichy, Noel, 51 Till, Brian D., 127 Tiltman, David, 91 Timberlake, Cotton, 24 Timberlake, Justin, 30–31 Tinson, Julie, 127 Todd, Sarah, 195 Tokman, Mert, 357 Toran Torres, Francisco, 357 Trebilcock, Bob, 355 Trejos, Nancy, 193 Trivedi, Minakshi, 292 Tsai, Ming-tiem, 127 Tsao, Hsiu-Yuan, 261 Tse, David K., 319 Turner, Gregory B., 194 Twiggy, 11 U Ulrich, Karl T., 235 Ulwick, Anthony W., 234 Urban, Glen L., 235, 413 Utke, Scott, 17 V Van Auken, Stuart, 194 Van Bruggen, Gerrit H., 90, 503 Van De Valde, Doug, 408 Van Den Butte, Christophe, 236 Van der Stede, Wim A., 126 Van Dyck, Tom, 320 Van Hoof, Tim, 181 Van Riel, Cees B M., 503 Van Tilbury, Aad, 471 Vance, A., 291 Vance, Ashley, 235 Vanheule, Marc, 319 Varadarajan, P Rajan, 51, 356, 393 Varela, Jose A., 503 Vargas, Vicente, 355 Vargo, Stephen L., 24, 193, 234, 291, 324 Vaught, Bobby C., 356 Vega, Tanzina, 262 Ventura, Eva, 502 Verbeke, W J., 195, 438 Vergara, Sofia, 40 Verheoven, Piet, 472 Verhoef, Peter C., 50, 155, 195, 196 Verwaal, Ernst, 235 Vetter, William, 472 Vilcassim, Naufel J., 355 Villanueva, Julián, 501 Villarejo-Ramos, Angel F., 319 Vinod, Ben, 320 Viswanathan, Madhubalan, 195, 261 Viswanathan, Siva, 320 Vitell, Scott J., 394 Volpp, Kevin G., 126 Voorhees, Roy Dale, 394 Voss, Glenn B., 320 Vriens, Marco, 24 W Waaser, E., 438 Walker, Beth A., 51 Wall, Chuck, 24 Wallendorf, Melanie, 194 Walley, Keith, 261 Walton, Sam, 444 Wan, Wan Jamaliah, 394 Wang, Guangping, 318 Wang, Hsiao-Fan, 502 Wang, Jeff, 194 Wangenheim, Florian V., 195 Wansink, Brian, 394 Want, Chung-Yu, 262 Ward, David, 92 Warden, Clyde A., 357 Wathne, Kenneth H., 355 Watson, Tom, 472 Weaver, Dianne Altman, 91 Webster, Frederick E., Jr., 356, 393 Weeks, W A., 439 Wehmeyer, Kai, 92 Weinberger, Joshua, 92 Weinmann, K., 438 Weissel, M., 438 Welch, David, 234, 472 Welch, Jack, 35, 36 Wells, William D., 194 Wernle, Bradford, 154 West, Kanye, 30 Wetzels, Martin, 92 Wheelen, Thomas H., 37, 43, 50, 51, 195, 496 Wheeler, David, 51 Whipple, Thomas W., 292 White, J Chris, 51, 356, 393 White, Joseph B., 127 White, Katherine, 128 Whitman, Meg, 36, 49, 149 Wiedmann, Klaus-Peter, 262 Wieners, Brad, 194 Wierenga, Berend, 90 Wiersema, Fred, 15, 24 Wiesel, Thorsten, 501 Wiesenfeld, David, 235 Wilkie, Joe, 236 Williams, Dennis, 395 Williams, J A., 439 Williams, Jasmine E M., 470 Williams, Jerome D., 126 Williams, Patti, 195 Williamson, Nicholas C., 355 Wilson, J Holton, 503 Wilson, R Dale, 92 Wiman, Alan R., 320 Winchester, Maxwell, 126 Wingfield, Nick, 291 Wolffle, Ralf, 156 Wong, Veronica, 235 Wong, Y J., 438 Wood, Charles M., 194 Wood, Stacy L., 236 Woodall, Regina D., 51 Woodman, Nicholas, 106 Woods, Tiger, Woodside, Arch G., 261 Woodward, K., 395 Workman, John P., Jr., 195 Worthy, Sheri Lokken, 127 Wright, S., 439 Wu, Bob T., 394 Wu, Wann-Yih, 357 Wu, Yaozhong, 319 Wyner, Gordon A., 91, 195, 438 Y Yang, Jerry, 112 Yang, Jun, 234 Yang, Moonhee, 127 Yang, Sha, 195 Yang, Xiz, 128 Yavas, Ugar, 393 Yeung, Matthew, 261 Yip, George S., 472 Yoo, Boonghee, 356, 394 Young, Laurie, 196 Young, Robert B., 292 Young, S Mark, 126 Yu, Seongjae, 50 Z Zabin, Jeff, 51, 196 Zaccour, G., 262, 413 Zacharia, Zach, 356 Zaheer, Srilata, 154 Zamiska, Nicholas, 234 Zeithaml, Valarie A., 51, 275, 279, 283, 293, 502 Zhang, Jie, 357 Zhao, Miao, 357 Zheng, Yu-Sheng, 293 Zielke, Stephan, 319 Zimmer, Greg, 253 Zinkhan, George M., 91, 395 Zoltners, A A., 438 Zoratti, Sandra, 24 Zwick, Detiev, 91 Name Index I-13 SUBJECT INDEX A Accumulating bulk, 328 Acquisitions, 178 Action for Healthy Kids, 408 Action plans, 485–487, 494–495 Action stage, 372 Activities, interests, and opinions (AIOs), 97–98, 172 Additions to existing product lines, 218 Administered VMS (vertical marketing systems), 332–333 Advertising; see also Internet advertising cooperative, 406–407 costs, 376–377 definition, 361 diminishing returns, 397–398 execution approaches, 402–403 in foreign markets, 464–465 frequency, 401–402 institutional, 399 largest advertisers, 397, 398, 465 location-based targeted, 100 low-involvement settings, 115 media selection, 401–403 metrics, 484–485 music, 105 opinion leaders in, 112–113 product, 399–401 pros and cons, 365 reach, 401–402 spending, 397 subliminal stimuli, 104 television, 377, 403 in video games, 164 Advertising agencies; see Creative agencies Advertising execution, 402–403 Advertising response function, 397–398 Advertising wearout, 397 Aesthetics, package design, 255 African Americans marketing to, 108, 168 population, 168 Age groups; see Generational groups Age segmentation, 163–164 Agent intermediaries, 326, 327 AIDA model, 370–372 AIOs; see Activities, interests, and opinions Airlines service recovery, 280–281, 283 strategic alliances, 457, 458 Allowances, 311 promotional, 312, 330, 407 slotting, 336 All-you-can-afford method, 380, 494 AMA; see American Marketing Association I-14 American Indians, 168 American Marketing Association (AMA) brand definition, 239 historical definitions of marketing, marketing definition, 7, 10, 17–18, 27 viral marketing definition, 389 Anti-Defamation League, 379 ASEAN (Association of Southeast Asian Nations), 453 Asia, cultural differences, 70 Asian Americans, 168 Aspirational purchases, 111–112 Association of Southeast Asian Nations; see ASEAN Assortments, product, 328–329, 341, 343 Assurance, 284 Attention, 370–371 Attitude-based choices, 120 Attitudes, 102 Attribute-based choices, 120 Auction pricing, 309 Audits brand, 497 marketing, 497–499 Auto industry luxury carmakers, 111–112 warranties, 257–258 Average-cost pricing, 310–311 Awareness set, 119 B B2B; see Business-to-business markets B2C; see Business-to-consumer marketing Baby boomers, 96, 97, 105, 165–166 Bait and switch practices, 315 Basket of global marketing themes, 464 Behavioral data, 78 Behavioral segmentation, 174–176 Beliefs, of consumers, 102 Benefits definition, 27 essential, 200, 201 sought by consumers, 174 Big M marketing, 17–18, 30–31 Biofuels, 134 Blogs, 372, 388, 407 Boston Consulting Group (BCG) Growth-Share Matrix, 33–34 Brand assets, 244 Brand associations, 244, 367–368 Brand audits, 497 Brand awareness, 243, 374 Brand connections, 246–247 Brand equity benefits, 245–247 dimensions, 243–245 Brand experience, role of scent, 239–240 Brand identity, 243 Brand loyalty, 243–244 benefits, 247 brand strategies and, 244 maintaining, 374–375 Brand personalities, 105–106 Brand sponsors, 241 Brand strategies for global marketing, 462 increasing brand equity, 244 Branding decisions, 247 co-branding, 250–251 licensing, 250 national or store brands, 250 stand-alone or family branding, 248–250 Branding strategy, 239 Brands; see also Products boundaries, 242–243 in business markets, 239 definition, 239 family, 248–250 global, 245, 462 local, 462 logos, 239, 252, 367 most valuable, 245 national, 250 roles, 239–242 of service firms, 267 store (private-label), 250 testing, 226 trademark protection, 241, 252 warranties and, 257–258 Breadth of merchandise, 343 Breaking bulk, 328, 341–342 British Paralympic Association, 409 Budgets; see also Costs action plan, 486, 494–495 all-you-can-afford method, 380, 494 comparative-parity method, 380, 494 marketing, 494–495 objective-and-task method, 379, 494 percent-of-sales method, 379–380, 494 promotion allocation, 364, 376–377, 495 preparation, 378–380 zero-based, 494–495 Bureau of Labor Statistics, 265 Business case analysis, 224 Business customs, in foreign markets, 446–447 Business-to-business (B2B) markets brands, 239 buying centers, 138–140 buying decision process, 133–134 modified rebuys, 137 new purchases, 137–138 post-purchase evaluation, 150–151 problem recognition, 144 product choice, 147–149 product specifications, 144–145 purchase decision, 147–150 sales proposals, 147 search for suppliers, 145–146 straight rebuys, 143–144 supplier choice, 149–150 buying situations modified rebuys, 137, 144 new purchases, 137–138, 144 straight rebuys, 136–137, 143–144 channels of distribution, 327, 328 differences from consumer markets, 132, 133 buying process, 133–134 customer number and sizes, 133 customer relationships, 132 decision process, 133–134 geographic concentration, 133 product demand, 135–136 supply chain complexity, 134 electronic commerce, 350–351 end user purchases, 142 industry classifications, 140–141 largest, 131 marketing communications, 144 new product market testing, 227 personal selling relationships, 132, 144, 415–416 sales positions, 418–419 skills needed, 418 players, 140–143 governments, 143 institutions, 143 manufacturers, 131, 141–142, 204–205 resellers, 142–143 product classifications, 204–205 sales promotion, 405–407 segmentation, 176–177 technology use, 132, 151, 350–351 Business-to-consumer (B2C) marketing; see also Consumer decision process; Retailers adoption of new products, 228–230 channels of distribution, 327 differences from business markets, 132, 133 buying process, 133–134 customer number and sizes, 133 customer relationships, 132 decision process, 133–134 geographic concentration, 133 product demand, 135–136 supply chain complexity, 134 e-retailing, 348–350 new product market testing, 226–227 personal selling, 418 sales promotion, 405, 406 segmentation behavioral, 174–176 demographic, 163–172 gender, 98–99, 166–167 geographic, 161–162 multiple approaches, 176 psychographic, 172–174 Buying centers definition, 138 marketing challenges, 139–140 participants, 138–139 pursuing, 139–140 Buying decisions, in B2B markets, 133–134, 136–138 Buzz, 389–390, 407–408 C Call centers; see Telemarketing Cannibalization rates, 483 Capital equipment, 142 Capital goods, 205 Captive pricing, 305 Cash discounts, 311 Catalog retailers, 346–347, 434, 455–456 Category extensions, 249 Causal research, 76 Cell phones; see also Mobile communications devices advertising on, 100 text messaging, 385 Census Bureau; see U.S Census Bureau Censuses, 79 Centers for Disease Control, 101 Centralization, in global marketing, 459 Change drivers, 14–15 customer information power, 15–16 distinction of Big M and little m marketing, 17–19 focus on payback of marketing investment, 19–20 generational value shifts, 16–17 product glut and customer shortage, 15 Channel captains (leaders), 332–333 Channel conflict, 333 Channel power, 333–334 Channels communication, 368 direct marketing, 431, 433–434 Channels of distribution; see also Intermediaries; Market channels; Retailers approaches, 336 control, 336 definition, 326 direct, 327 disintermediation, 331–332 electronic, 331–332 to end-user consumers, 327 indirect, 328 international, 462–464 legal issues, 339–340 logistics, 328, 336–339 to organizational buyers, 327, 328 prioritization of functions, 336 vertical marketing systems, 332–333, 336 Chief marketing officers (CMOs), 18, 20 China food exports, 209 manufacturing plants, 325 product quality issues, 209 social media, 461 stem cell medicine, 277 Cities largest, 161, 162 population growth, 70, 161, 163 Classes, social, 111–112, 170 Click fraud, 72 Climate, 161, 162 Closed-ended questions, 79 Closing sales, 423 Clutter, 402–403 CLV; see Customer lifetime value Co-branding, 250–251 Coercive power, 333 Cognitive learning, 105 Commissions, 429 Communication channels, 368 customer feedback, 368–369, 415, 417 decoding process, 368 definition, 366 encoding process, 367–368 feedback loops, 368–369 message transmission, 368 noise, 369 nonverbal, 107–108 in personal selling, 416–417 process model, 366–369 receivers, 368 senders, 367 Communications, marketing; see also Advertising; Direct marketing; Integrated marketing communications; Personal selling; Promotion; Public relations; Sales promotion AIDA model, 370–372 in B2B markets, 144 customer expectations management, 281–282 elements, 361 in foreign markets, 464–465 hierarchy of effects model, 370–372 influence on external information sources, 118 labeling, 256–257 packaging, 252, 255 product introductions, 224, 228 product items vs lines, 212–213 Companies; see also Multinational corporations advertising spending, 397, 398, 464–465 customer-centric, 12–13, 31, 188–189, 270 Company websites; see Websites, company Comparative advertising, 401 Comparative-parity method, 380, 494 Compensation, of salespeople, 429, 430 Competitive advantage differential, 183 sustainable, 38 Subject Index I-15 Competitive advertising, 400 Competitive forces, 178 Competitive strategies, 37–38 cost leadership, 38, 295, 302–303 differentiation, 38 focus (niche), 38, 180, 299 low cost, 179, 182 Competitor analysis, 41–42 Competitor-based pricing, 300–301 Competitors brand roles for, 241–242 collecting information on, 73 price wars, 300–301, 314 promotion budgets, 380 promotion mix decisions and, 376 Complaints, customer, 123 Complementary pricing, 305 Complete set, 118–119 Concentrated target marketing, 180 Conditioning, 104–105 Conformance quality, 208 Consideration (evoked) set, 119 Consumer decision process, 95, 96 Consumer decision process, factors in cultural, 106–108 external forces, 106 internal forces, 95, 96 involvement levels, 114–115 personal characteristics, 95–96 demographics, 95–96, 97 family life cycle stages, 97 lifestyles, 97–99 occupations, 97 psychological attributes, 96, 99 attitudes, 102, 120 emotions, 119 learning, 104–105 motivation, 99–101 perceptions, 102–104 personality, 105–106 situational, 108–109, 120–121 social, 109 class, 111–112 families, 110–111 opinion leaders, 112–113 reference groups, 113 time, 109, 121 Consumer decision process stages, 115–116 evaluating alternatives, 119–120 information search, 116–119 post-purchase assessment, 121–123 problem recognition, 116 product choice decisions, 120–121 Consumer demand, 135–136 Consumer Financial Protection Bureau, 422 Consumer goods, 203–204 Consumer marketing; see Business-toconsumer marketing; Positioning; Segmentation; Target marketing Consumers; see also Customers complaints, 123 I-16 Subject Index early adopters, 229, 230 early majority, 230 in foreign markets, 460–462 innovators, 229, 230 laggards, 229, 230 late majority, 230 sales promotion to, 405, 406 Contingency plans, 46, 495–496 Contractual agreements in foreign markets, 456–457 franchising, 332, 334, 456, 457 licensing, 250, 456–457 Contractual VMS (vertical marketing systems), 332, 336 Controls, 487, 495, 496; see also Audits Convenience goods, 203, 335 Cooperative advertising and promotion, 406–407 Cooperatives, 332 Core competencies, 37–38 Core products, 200 Corporate identity, 367 Corporate VMS (vertical marketing systems), 332, 336 Corporate-level strategic planning, 32 Cost leadership strategy, 38, 295, 302–303 Cost per thousand impressions (CPM) rates, 484 Cost reduction, 219 Cost-based price strategy, 466 Cost-plus pricing, 309–310 Costs; see also Budgets advertising, 376–377 average-cost pricing, 310–311 channel, 463 distribution, 467 of exporting, 466 of international distribution, 463, 466–467 transportation, 338, 467 Countries; see also Cultures, foreign developing, 69, 296 economic development stages, 448–449 emerging markets, 448–449 fastest-growing, 448, 449 top five economies, 446, 447 Country-of-origin effect, 462 CPM; see Cost per thousand impressions Creating assortments, 328–329, 341 Creative agencies full-service, 404 public relations, 407 roles, 404 value added, 372–373 website development, 404 Credence attributes, 275–276 Crisis management, 409 CRM; see Customer relationship management Cultures company, 188–189 definition, 106–107 influence on consumer decisions, 106–108 subcultures, 108 values, 107 Cultures, foreign differences, 70, 461 language differences, 86–87, 461 researching, 446 similarities, 450 Customer acquisition, 185 Customer advocacy, 272 Customer communities, 350, 351 Customer delight, 278 Customer expectations actual, 279–280, 282 gap analysis, 279–280, 282 management’s perceptions of, 279–280 for product experience, 200 Customer expectations management, 272, 281–282 Customer lifetime value (CLV), 185–186, 483 Customer loyalty definition, 185 digital programs, 81 measuring, 79 programs, 175–176, 272–274, 406 satisfaction and, 185, 272, 273 segmentation by degree, 175–176 value proposition and, 28 Customer mind-set, 189, 271 Customer orientation, 13, 189; see also Customer-centric culture Customer profitability, 67, 185 Customer relationship management (CRM) customer-centric culture, 188–189 data mining, 78, 187 definition, 184 example, 44 integration into marketing planning, 185, 187 metrics, 185–186 objectives, 185 process cycle, 186 analysis and refinement, 187 customer interaction, 187 knowledge discovery, 186–187 marketing planning, 187 sales proposals, 147 uses of data, 67, 184–185 Customer retention, 28, 185, 272 Customer satisfaction assessing, 123 definition, 185 loyalty and, 185, 272, 273 measuring, 28, 282 product evaluation, 123 Customer service; see Services Customer switching, 28 Customer touchpoints, 186, 188–189 Customer-centric culture, 188–189 Customer-centric enterprises, 12–13, 31, 270 Customers; see also Consumers brand roles for, 239–241 building relationships, 417 feedback, 368–369, 415, 417 firing, 186 information power, 15–16 new product ideas, 221 prospecting, 419–420 shortages, 15 switching behavior, 272, 273 as value network members, 325–326 Customized (one-to-one) marketing, 180 Cyclical factors, 492 D Dashboard; see Marketing dashboard Data; see also Information behavioral, 78 confidential, 65, 188, 350, 400 observational, 78 primary, 77 secondary, 77, 80–81, 85–86 Data collection, 77–78, 81, 86–87 Data mining, 78, 187 Data warehouses, 186–187 Database marketing, 187 Databases, online, 83 Deceptive pricing, 315 Deciders, 139 Decision-making authority, in global marketing, 459 Decoding process, 368 Decomposition forecasting method, 492 Degree of affiliation, 113 Degree of centralization, in global marketing, 459 Delightful surprises, 278 Delphi technique, 489 Demand; see also Forecasting in business markets, 135–136 consumer, 135–136 derived, 135 estimating for new products, 224 fluctuating, 135–136, 269 inelastic, 136 price elasticity, 300 statistical analysis, 492–493 Demographic segmentation, 163 ages, 163–164 educational, 170 family and household, 167 genders, 98–99, 166–167 generational group, 165–166 geodemographics, 171–172 incomes, 169 occupations, 169–170 PRIZM clusters, 171–172 racial and ethnic groups, 167–169 social classes, 170 variables, 163, 164 Demographics ages, 97, 98, 110, 163–164 aging of society, 96 city populations, 70, 161, 162 data collection, 68–70 definition, 68, 95 ethnicity and race, 69–70 family life cycle stages, 97 impact on consumer decisions, 95–96 migration, 70 occupations, 97 population growth, 69, 161 Depth of merchandise, 343 Derived demand, 135 Descriptive research, 76, 77–78, 79 Desirability, 113 Desire, 371–372 Developed economies, 448 Developing countries emerging markets, 448–449 laptop computers for children, 296 population growth, 69 Differentiation; see also Product discrimination; Segmentation of markets, 160, 179–180 of products, 13 sources, 183 strategy, 38 Dimensions of service quality, 283–284 Direct channels, 327 Direct foreign investment, 458 Direct mail, 403, 433–434 Direct marketing; see also Telemarketing campaigns, 432–433 catalog retailers, 346–347, 434, 455–456 channels, 431, 433–434 customer prospecting, 420 definition, 361, 431 pros and cons, 365 target customers, 432–433 Direct Marketing Association, 431, 433 Direct product extension, 460 Direct sales forces, in foreign markets, 456 Direct selling, 347 Discounts, 311–312, 484 Disintermediation, 331–332 Disruptive innovation, 218 Dissonance, post-purchase, 122 Distinctive competencies, 38 Distribution channels; see Channels of distribution Distribution costs, 467 Distribution intensity, 334–335 Distributors, 143, 221, 326, 456 Diversification strategies, 44–45 Diversity, 431 DOD; see U.S Department of Defense Dodd–Frank Wall Street Reform and Consumer Protection Act, 73 Dumping, 467 Durability, 208 Durable products, 203 E Early adopters, 229, 230 Early majority, 230 E-commerce; see Electronic commerce; Internet Economic conditions, 70–71, 446 Economic development stages, 448–449 Economic forces, 450 Economy, service sector, 265 EDI; see Electronic data interchange EDLP; see Everyday low pricing Educational segmentation, 170 Egypt, tariffs, 447 Electronic commerce; see also Interactive marketing; Websites, company advantages and disadvantages, 349–350 business-to-business, 350–351 definition, 348 e-retailing, 348–350 exporting, 455–456 flash sales, 309 growth, 349, 383 luxury brands, 169 mobile devices and, 385 product reviews, 349, 388–389 showrooming, 346 Electronic data interchange (EDI), 151, 350–351 E-mail advertising, 384, 385 Emergencies, 409 Emergency goods, 203 Emerging markets, 448–449 Emotional appeals, 377–378 Emotional choices, 119 Empathy, 284 Employees; see also Salespeople customer service skills, 271 internal marketing and, 366 loyalty, 271 satisfied, productive, and loyal, 271 Employment retailing, 340 services jobs, 265 Encoding process, 367–368 End-user purchases, 142 Enhanced product, 200–202 Enterprise resource planning (ERP) systems, 337–338 Environmental issues biofuels, 134 green products, 9, 452 packaging, 252 pollution, 71–72 product disposal, 122–123 E-procurement, 151, 350–351 E-retailing, 348–350 ERP; see Enterprise resource planning systems Essential benefits, 200, 201 Ethanol, 134 Ethical issues biofuels, 134 click fraud, 72 corporate scandals, 36 e-commerce, 242 green products, 9, 452 hiring salespeople, 431 Subject Index I-17 Ethical issues—Cont imported food products, 209 labor standards compliance of suppliers, 325 online information collection, 400 paid product reviews, 388 pricing, 306 privacy, 65, 86, 100, 188, 350, 400 product claims, 184 product usage, 242 in promotion, 400 social responsibility, 296, 480, 482 stem cell medicine, 277 video games, 164 Ethnic groups as consumers, 108 diversity, 69–70 segmentation, 167–169 subcultures, 108 in United States, 69–70, 108, 168 European Union (EU), 70, 450–451 Even pricing, 307 Event sponsorships, 408–409 Everyday low pricing (EDLP), 308 Exchange rate fluctuations, 467 Exchanges, Exclusive dealing, 339–340 Exclusive distribution, 335 Exclusive territories, 340 Expectations; see Customer expectations Experience attributes, 275 Expert power, 334 Exploratory research, 76, 77, 79 Exponential smoothing, 491–492 Exporters, 455–456 Exporting strategy, 455–456, 466–467; see also Foreign markets Extensive information search, 117 External forces, 69 External information sources, 117–118 Extrinsic rewards, 428 F Facilitating agents, 326 Facilitating functions, 330–331 Fads, 215 Fair trade laws, 315 Families decision making, 110–111 definition, 110 gender roles, 110–111 influence on consumer decisions, 110–111 structures, 110, 167 traditional, 110 Family and household segmentation, 167 Family branding, 248–250 Family life cycle, 97, 110, 167 FCC; see Federal Communications Commission FDA; see Food and Drug Administration FDIC; see Federal Deposit Insurance Corporation Features, product, 205–207 I-18 Subject Index Federal Communications Commission (FCC), 100 Federal Deposit Insurance Corporation (FDIC), 422 Federal Trade Commission (FTC), 256, 314 Feedback, customer, 368–369, 415, 417 Feedback loops, 368–369 Firing customers, 186 First-mover advantages, 39 Fluctuating demand, 135–136, 269 FOB pricing, 312–313 Focus groups, 77, 83, 181 Focus strategy, 38, 180, 299 Follow-up, 423 Food and Drug Administration (FDA), 209, 255–256 Food retailers, 341, 344, 345 Forecasting accuracy, 493–494 importance, 487 objective methods, 487, 489 accuracy, 494 advantages and disadvantages, 488 market tests, 490 statistical demand analysis, 492–493 time-series analysis, 490–492 selecting method, 493–494 subjective methods, 487 accuracy, 494 advantages and disadvantages, 488 Delphi technique, 489 jury of executive opinion, 489 sales force composite, 489 user expectations, 487 Foreign direct investment, 458 Foreign marketing, 445 Foreign markets; see also Global marketing consumers, 460–462 country-of-origin effect, 462 direct sales forces, 456 distributors, 456 economic environments, 446 emerging markets, 448–449 entering, 445 market channels, 462–464 marketing research, 84–87, 446–448 quality perceptions, 461 Form, product, 205, 208 Form utility, 27 Formalization, 188–189 4Ps of marketing, 12; see also Pricing; Products; Promotion Franchise organizations, 332 Franchising, 334, 456, 457 Frequency, advertising, 401–402 FTC; see Federal Trade Commission Functional discounts, 311–312 Functional-level plans, 34–35 GE Business Screen, 33, 34 Gender roles, 98–99, 110–111 Gender segmentation, 98–99, 166–167 General warranties, 257 Generation X, 165–166 Generation Y, 16, 165–166, 372, 427 Generational groups, 165–166 baby boomers, 96, 97, 105, 165–166 GI generation, 165, 166 millennials, 97, 165, 166, 372 populations, 110 promotional strategies for, 372 teenagers, 400 values, 16–17, 166 Generational segmentation, 165–166 Generic strategies, 37 Geodemographic segmentation, 171–172 Geographic concentration, 133 Geographic proximity, 450 Geographic regions, 460 Geographic segmentation, 161–162 Geo-location marketing, 385 GI generation, 165, 166 Global brands, 245, 462 Global marketing; see also Foreign markets challenges, 443, 449 communications, 464–465 company characteristics and, 454–455 learning curve, 444–446 market channels, 462–464 market entry strategies, 455 contractual agreements, 456–457 direct foreign investment, 458 exporting, 455–456, 466–467 strategic alliances, 457–458 market research, 446–448 organizational structure, 459–460 pricing strategies, 466–467 product strategies, 460 in regional market zones, 453 selecting markets, 453–455 strategies, 445, 455 Global marketing themes, 464 Global marketing with local content, 464 Global product lines, 459–460 Goals, 35, 44 Go-to-market mistakes, 222 Governments as customers, 143 information sources, 80, 83 Gray market, 467 Green marketing, 9, 40–41, 104 Green packaging, 252 Green products, 9, 452 G Hierarchy of effects model, 370–372 Hierarchy of Needs, 99–101 High-involvement learning, 114 High/low pricing, 308 Gap Model of Service Quality, 278–282 Gatekeepers, 139–140 H Hispanics, 69–70, 108, 168–169; see also Ethnic groups HLC; see Household life cycle Home sales parties, 363 House brands; see Private-label (store) brands Household life cycle (HLC), 110, 111; see also Family life cycle Household segmentation, 167 I IMC; see Integrated marketing communications Immigrants, 169 Import tariffs, 447, 453, 466 Importance-performance analysis matrix, 282, 283 Impulse goods, 203, 335 Inbound logistics, 337 Inbound telemarketing, 420 Incentive pay, 429 Income segmentation, 169 Incomes, occupations and, 170 In-depth interviews, 77 Indirect channels, 328 Industrial revolution, 10 Industry advertising, 399 Industry classifications, 140–141, 343 Inelastic demand, 136 Influencers, 139, 140, 386 Information; see also Data; Demographics; Market information systems; Marketing research on business environment, 68, 69 on foreign markets, 446–447 internal sources, 66–68 need for, 63–64 perception of, 102–104 privacy, 65, 86, 100, 350 Information power, 15–16 Information searches alternatives set, 118–119 by consumers, 116–119, 349 extensive, 117 external, 117–118 internal, 117 limited, 117 minimal, 117 sources, 117–118 Information systems; see Customer relationship management; Market information systems; Software Initiators, 138–139 Innovation; see also New products creating new market segments, 161 diffusion, 228–230 disruptive, 218 packaging designs, 252, 253–254 sustaining, 218 Innovation diffusion process, 228–230 Innovators, 229, 230 Input measures, 431, 432 Inseparability of services, 267–268 Institutional advertising, 399 Institutions, 143 Instrumental performance, 123 Intangibility product characteristics, 203 of services, 266–267 Integrated marketing communications (IMC), 361; see also Communications, marketing budget allocations, 364 creative agency roles, 404 decision making, 363, 364 definition, 362 internal marketing and, 366 promotion mix decisions, 364, 375–377 rise of, 362 Intensive distribution, 335 Interactive marketing; see also Direct marketing; Internet advertising; Social media; Websites, company challenges, 381, 404 definition, 361 ethical issues, 400 importance, 381 integration with print catalogs, 434 privacy issues, 400 pros and cons, 365 viral marketing, 389–390 Interest, 371 Intermediaries; see also Channels of distribution agents, 326, 327 distributors, 221, 326, 456 functions facilitating, 330–331 physical distribution, 328–329 transaction and communication, 329–330 merchant, 326, 327 need for, 327 number of, 334–335 resellers, 142–143 as source of marketing information, 330 types, 326–327 Internal information search, 117 Internal information sources, 66–68 Internal marketing, 269–271, 366 International marketing, 445; see also Global marketing Internet; see also Electronic commerce; Social media; Websites, company auction sites, 309 blogs, 372, 388, 407 buzz on, 389–390 consumer research on, 117, 349 customer prospecting, 420 dating sites, 179 disintermediation, 331–332 e-mail, 384, 385 e-procurement, 151, 350–351 focus groups, 83 global marketing, 455–456 growth, 455 market research data on, 80, 83 marketing alcohol, 242 mobile use of, 86, 384–385 privacy issues, 400 product reviews, 349, 388–389 search engines advertising on, 146, 384, 485 optimization tools, 146 supplier searches, 146 security issues, 350 surveys, 78, 81, 83–84 tracking user activity, 400 women’s use, 99 Internet advertising analytics, 84 for B2B markets, 146 banner ads, 384 click fraud, 72 click-through rates, 384, 485 decisions, 384 display ads, 384 e-mail, 384, 385 interstitials, 384 paying bloggers, 388 pros and cons, 403 response rates, 384 search-related, 146, 384, 485 on social media, 247, 400 sponsorships, 384 Interviews, in-depth, 77 Intrinsic rewards, 428 Inventory just-in-time, 338 management, 338 of retailers, 342 stock-outs, 337, 484 turns, 484 Investment direct foreign, 458 promotion as, 377, 379 Involvement levels, 114–115 Issue sponsorships, 408 J Japan Vending Machine Manufacturers Association, 348 JIT; see Just-in-time inventory management JND; see Just noticeable differences Jobbers, 326 Joint ventures, 251, 457–458 Jury of executive opinion, 489 Just noticeable differences (JND), 313 Just-in-time (JIT) inventory management, 338 K Key account salespeople, 419 Knowledge discovery, 186–187 L Labeling; see also Packaging information included, 255–256 legal requirements, 255–256 marketing role, 256–257 Subject Index I-19 Laggards, 229, 230 Language culture and, 107 differences, 86–87 Spanish, 169 Late majority, 230 Latin America, MERCOSUR, 453 Learning definition, 104 high-involvement, 114 influence on consumer decisions, 104–105 low-involvement, 115 organizational, 187 Legal environments of foreign markets, 447 Legal issues collecting information on, 72–73 labeling, 255–256 pricing practices, 314–315 privacy, 188, 400 supply chain management, 339–340 telemarketing restrictions, 72, 434 trademarks, 241, 252 Legitimate power, 334 Licensing brands, 250 in foreign markets, 456–457 Life cycles family, 97, 110, 167 household, 110, 111 product; see Product life cycle Lifestyles gender roles, 98–99, 110–111 influence on consumer decisions, 97–99 psychographic segmentation, 172–174 trends, 98, 99 Lifetime value of customer, 185–186, 483 Limited information search, 117 Line of visibility, 287 Literacy rates, 87 Little m marketing, 17, 18–19, 30–31 Local market ad generation, 464 Local market conditions price strategy, 466 Logistics, 328 inbound, 337 inventory management, 338 order processing, 337–338 outbound, 337 reverse, 337 third-party providers, 331–332 transportation, 338–339 warehousing and materials handling, 338 Logos, 239, 252, 367; see also Brands; Labeling Long-term memory, 103–104 Loss leader products, 315 Loyalty; see also Brand loyalty; Customer loyalty employee, 271 programs, 81, 175–176, 272–274, 406 M Macroeconomics, 71 Magazine advertising, 403 I-20 Subject Index Management; see Marketing management; Sales forces Management research deliverable, 74 Manufacturers in China, 325 as customers, 131, 141–142, 204–205 Manufacturers’ agents, 326 Margin on sales, 482–483 Market channels; see also Channels of distribution discounts and allowances, 311–312, 336, 484 in foreign markets, 462–464 Market creation, 18 Market development strategies, 44–45 Market entry strategies, 455 contractual agreements, 456–457 direct foreign investment, 458 exporting, 455–456, 466–467 strategic alliances, 457–458 Market information systems (MISs) definition, 64 external information, 68 competition, 73 demographic data, 68–70 economic conditions, 70–71 natural world, 71–72 political/legal environment, 72–73 technology, 71 internal information sources, 66–68 Market makers, 351 Market mavens, 112–113 Market orientation, 13 Market penetration pricing strategy, 298 Market penetration strategies, 44–45 Market research; see Marketing research Market research companies, 73–74, 80 Market segmentation; see Segmentation Market share, 298, 481 Market skimming pricing strategy, 298–299, 303 Market testing, 226–227, 490 Market-driven strategic planning, 32–33 Marketing AMA definition, 7, 8, 10, 17–18, 27 Big M, 17–18, 30–31 definition, 6–7 history, 10–13 little m, 17, 18–19, 30–31 misconceptions, 3–6 return on investment, 478–480 strategic, 17–18, 30–31 tactical, 18–19, 30–31 visibility, 4–5 Marketing audits, 497–499 Marketing communications; see Communications, marketing; Integrated marketing communications Marketing concept, 11–12 Marketing control, 45–46 Marketing dashboard; see also Metrics benefits, 475, 476 definition, 475 developing, 478 elements, 476 forms, 475 goals, 476 pitfalls, 477–478 Marketing intelligence, 68 Marketing management chief marketing officers, 18, 20 as core business activity, promotion roles, 372–373 budget development, 378–380 goal setting, 373–375 media selection, 378 message development, 377–378 promotion mix decisions, 375–377 results measurement, 380 target identification, 373 Marketing metrics; see Metrics Marketing mix, 12 Marketing planning, 30; see also Budgets; Forecasting action plans, 485–487, 494–495 contingency plans, 46, 495–496 controls, 487, 495, 496 effective, 31 framework, 32 goals and objectives, 44 implementation, 45–46 integration of CRM, 185, 187 link to firm’s business plan, 32–33 market research, 43–44 new products, 223–224 as ongoing process, 46–47 participants, 46 situation analysis, 39 competitive environmental factors, 41–42 external environmental factors, 39–41 internal environmental factors, 42 SWOT analysis, 42–43 strategic, 30–31 strategy development, 44–45 tactical, 30–31 tips, 46–47 Marketing plans, 30 Marketing research, 43–44 costs by country, 85 definition, 73 in foreign markets, 84–87, 446–448 importance, 73 technology, 82–84 use in decision making, 64–65 Marketing research process, 74 data analysis, 81–82 data collection, 81 problem definition, 74–75 reports, 82 research design activities, 75 data collection, 77–78 data types, 77 information content, 78–79 research types, 75–76 sampling plans, 79–80 secondary data, 80–81 Marketing strategies, 44–45 Markup on cost, 309–310 Markup on sales price, 310 Maslow’s Hierarchy of Needs, 99–101 Mass customization, 14, 180 Mass marketing, 179 Materials, 123, 204, 338; see also Inventory Materials, repairs and operational (MRO) purchases, 142, 204–205 Materials requirement planning (MRP), 338 Matrix structure, 460 Maturity stage, product life cycle, 298 M-commerce, 385 Mechanical devices, 78 Mechanical observation, 78 Media; see also Advertising; Social media advertising spending, 397 as communication channels, 368 costs, 376–377 pros and cons, 402, 403 selection, 378, 401–403 Medicine, ethical issues, 277 Memory, 103–104, 105, 117 Men, Internet use, 99; see also Gender Merchant intermediaries, 326, 327 MERCOSUR, 453 Message transmission, 368 Metrics; see also Marketing dashboard advertising, 484–485 cannibalization rate, 483 click-through rates, 485 cost per thousand impressions, 484 customer lifetime value, 185–186, 483 customer loyalty, 79 importance, 19–20 margin on sales, 482–483 market share, 481 penetration, 481–482 planning, 487 promotion, 380 promotions and pass-through, 484 return on customer investment, 186, 479 return on marketing investment, 478–480 return on social investment, 480, 482 sales force effectiveness, 483 share of voice, 484 supply chain, 484 Microeconomics, 71 Microsites, 383 Middlemen, 326, 467; see also Intermediaries Migration, 70 Millennials, 97, 165, 166, 372 Minimal information search, 117 Minimum markup laws, 315 Minorities; see Ethnic groups MISs; see Market information systems Mission statements, 35–36 Missionary salespeople, 418 Mobile communications devices, 86, 100, 384– 385; see also Cell phones; Social media Mobile payments, 385 Modified rebuy situations, 137, 144 Moments of truth, 278, 287 Moral appeals, 378 Motivation involvement with product, 114–115 of salespeople, 428, 429 theories, 99–101 Moving average forecasting method, 490–491, 492 MRO; see Materials, repairs and operational MRP; see Materials requirement planning Multiattribute model, 102 Multinational corporations; see also Global marketing advertising spending, 465 international revenue, 446 largest, 443 organizational structures, 459–460 Multinational regional market zones; see Regional market zones N NAFTA (North American Free Trade Agreement), 451–452 NAICS; see North American Industrial Classification System National Archives and Records Administration, 83 National Association of State Purchasing Officials, 143 National brands, 250 National Do Not Call Registry, 72, 434 National Realtors Association, 86 Native Americans, 168 Natural world, 71–72; see also Environmental issues Near field communication (NFC), 385 Negotiations, 421–423 Neighborhood types, 172 Network organizations, 324; see also Vertical marketing systems Networks, value, 323–326 New dominant logic for marketing, 265–266 New media; see Interactive marketing; Social media New products; see also Product development business case analysis, 224 cannibalization rates, 483 company perspective, 218–219 consumer adoption, 228–230 customer’s perspective, 219 definition, 218 failures, 219 idea sources, 220–222 launching, 228 marketing strategies, 223–224 pricing strategies, 298 reasons for success or failure, 219–220 screening ideas, 222–223 New purchase situations, 137–138, 144, 224 Newspaper advertising, 403 New-to-the-world products, 218 NFC; see Near field communication NGOs; see Nongovernmental organizations Niche strategy, 38, 180, 299 Nimble operations, 325 Noise, 369 Nondurable products, 203 Nonfinancial incentives, 429 Nongovernmental organizations (NGOs), 143 Nonprobability sampling, 79, 80 Non-store retailers, 346 catalog retailers, 346–347, 434, 455–456 direct selling, 347 vending machines, 348 Nonverbal communication, 107–108 North American Free Trade Agreement (NAFTA), 451–452 North American Industrial Classification System (NAICS), 140–141, 343 O Objective measures, 431 Objective-and-task method, 379, 494 Objectives, 35, 44 Observational data, 78 Occupational segmentation, 169–170 Occupations, 97 Odd pricing, 307 OEM; see Original equipment manufacturer Offerings, 12 One world price strategy, 466 One-price strategy, 307–308 One-to-one marketing, 14 Online communications; see Interactive marketing; Internet advertising; Social media; Websites, company Online databases, 83 Open-ended questions, 79 Operant conditioning, 105 Opinion leaders, 112–113 Order processing, 337–338 Organizational factors, 150 Organizational learning, 187 Organizational structure for global marketing, 459–460 sales forces, 423–426 Original equipment manufacturer (OEM) customers, 141; see also Manufacturers Out suppliers, 137 Outbound logistics, 337 Outbound telemarketing, 420, 434 Outdoor advertising, 403 Output measures, 431, 432 Outsourcing ethical issues, 325 global, 325 logistics, 331–332 promotion, 372–373, 377 sales forces, 373, 424 Ownership utility, 27 Subject Index I-21 P Packaging aesthetics, 255 colors, 255 designing, 226, 255 effective, 255 environmentally sensitive, 252 importance, 251 information communicated, 252, 255 innovative designs, 252, 253–254 labeling, 255–257 objectives, 251–253 security, 252 testing, 226 Partner relationship management (PRM) strategies, 333 Parts, 204 Pass-through percentage, 484 Penetration, 481–482 Penetration pricing, 298 Perceived quality brands and, 244, 246 in foreign markets, 461 Percent-of-sales method, 379–380, 494 Perceptions definition, 102 influence on consumer decisions, 102–104 selective, 368 selective awareness, 103 selective distortion, 103 selective retention, 103–104 subliminal stimuli, 104 Perceptual maps, 182–183 Perishability of services, 269 Personal circumstances, influence on consumer decisions, 109 Personal factors, 149–150 Personal selling activities, 416–417 advantages, 415–416 in B2B markets relationships, 132, 144, 415–416 sales positions, 418–419 skills needed, 418 in consumer markets, 418 costs, 377, 415 customer needs, 422 definition, 361 in foreign markets, 465 key success factors, 417 process, 419 closing sales, 423 follow-up, 423 handling objections, 421–423 opening relationships, 420 prospecting, 419–420 qualifying prospects, 420 sales presentations, 420–421 stages, 419 I-22 Subject Index pros and cons, 365 Personality brand, 105–106 definition, 105 influence on consumer decisions, 105–106 theories, 105 Physical distribution, 328–329; see also Distribution channels; Logistics Physical surroundings influence on consumer decisions, 108– 109, 120 of retail stores, 109 Pioneering advertising, 399–400 Pioneers, 215 Place utility, 27 Planning; see Action plans; Marketing planning PLC; see Product life cycle Politics collecting information on, 72–73 in foreign markets, 447 influence on formation of regional market zones, 450 Population growth; see also Demographics in cities, 70, 161, 163 in less developed countries, 69 Portfolio analysis, 33–34 Positioning, 180–181 definition, 159 differential competitive advantage, 183 errors, 183–184 perceptual maps, 182–183 repositioning, 182, 218–219 value pricing and, 301–303 Positioning strategies, 159, 181 Post-purchase dissonance, 122 Post-purchase evaluation by business customers, 150–151 by consumers, 121–123 Power, channel, 333–334 PR; see Public relations Predatory pricing, 315 Preferred state, 116 Presentations; see Sales presentations Prestige pricing, 306–307 Price bundling, 305–306 Price discrimination, 314–315 Price elasticity of demand, 300 Price escalation, 466–467 Price lining, 303–305 Price points, 303–304 Price pressure, 313–314 Price skimming, 298–299, 303 Price wars, 300–301, 314 Price-fixing, 314 Price-quality positioning map, 302–303 Pricing changes, 313–314 customer concerns, 423 customer perceptions, 295 decisions, 296–297 discounts and allowances, 311–312, 336, 484 ethical issues, 306 geographic aspects, 312–313 legal issues, 314–315 setting exact prices average-cost pricing, 310–311 cost-plus pricing, 309–310 markup on sales price, 310 target return pricing, 311 tactics, 303 auction pricing, 309 bundling, 305–306 captive pricing, 305 everyday low pricing, 308 high/low pricing, 308 odd/even pricing, 307 one-price strategy, 307–308 prestige pricing, 306–307 product line pricing, 303–305 reference pricing, 306 variable pricing, 307–308 Pricing objectives, 297 Pricing strategies competitor-based, 300–301 for global marketing, 466–467 market penetration, 298 market skimming, 298–299 for new products, 298 objectives and, 297, 298 penetration pricing, 298 price skimming, 298–299, 303 profit maximization, 299–300 stability pricing, 301 target return on investment, 299–300 value pricing, 301–303 Primary data, 77, 86 Primary groups, 113 Primary target markets, 178 Print media, 397, 403 Privacy, 65, 86, 100, 188, 350, 400 Private-label (store) brands, 250 PRIZM clusters, 171–172 PRM; see Partner relationship management Probability sampling, 79 Problem recognition, 116 Problems, research, 74–75 Product adaptation, for global marketing, 460 Product advertising, 399–401; see also Advertising Product choice, 147–149 Product classifications, 202 business goods, 204–205 consumer goods, 203–204 durability, 203 tangibility, 203 Product demand, in business markets, 135–136; see also Demand Product development; see also New products designs, 210 for global markets, 460 mistakes, 222 models, 225–226 testing, 223, 226–227 Product development process opportunity definition, 223–224 opportunity development market testing, 226–227 product development, 225–226 product launch, 228 opportunity identification, 220–223 Product development strategies, 44–45 Product discrimination, 205, 206–207 conformance quality, 208 durability, 208 features, 205–207 form, 205, 208 performance quality, 207–208 reliability, 208–209 repairability, 209 style, 210 Product glut, 15 Product invention, for global marketing, 460 Product items distinction from products, 200 marketing communications, 212–213 in product lines, 210–211 Product life cycle (PLC) caveats, 215 maturity phase, 298 profitability, 215 promotion mix decisions across, 375, 376 sales revenue, 215 stages, 214, 216–217 timeline, 215 use of, 213 Product line pricing, 211–212, 303–305 Product lines, 210–211 global, 459–460 marketing communications, 212–213 pricing decisions, 211–212, 303–305 Product mix, 211 Product reviews, online, 349, 388–389 Product specifications, 144–145 Product usage consumer experiences, 122 ethical issues, 242 segmentation by, 176 Production orientation, 10 Product-Market Matrix, 44–45 Products; see also Brands; New products; Packaging attributes, 182, 205–207 characteristics, 199–202 consumer research on, 116–119, 349 core, 200 customer involvement, 114–115 defining, 199, 223 differentiation, 13 disposal, 122–123 enhanced, 200–202 essential benefits, 200, 201 for global marketing, 460 green, 9, 452 mass customization, 14, 180 multiple, 210–211 offerings, 12 performance, 123 vs product items, 200 repositioning, 218–219 returns, 337 upgrades or modifications, 218 Professional services, 276 Profit maximization pricing strategy, 299–300 Profitability customer, 67, 185 of new products, 224 over product life cycle, 215 Promotion; see also Sales promotion budgets allocation, 364, 376–377, 495 preparation, 378–380 ethical issues, 400 in foreign markets, 465 to generational groups, 372 goals, 373–375, 379 as investment, 377, 379 marketing manager’s role, 372–373 budget development, 378–380 goal setting, 373–375 media selection, 378 message development, 377–378 promotion mix decisions, 375–377 results measurement, 380 target identification, 373 metrics, 380, 484 outsourcing, 372–373, 377 pull strategy, 336, 364–365 push strategy, 336, 364–365 Promotion mix; see also Integrated marketing communications AIDA model stages and, 370, 371 decisions, 375–377 elements, 361 for product life cycle stages, 375, 376 pros and cons of elements, 364, 365 traditional decision making, 362–363 Promotion mix strategies, 362 Promotional allowances, 312, 330, 407 Promotional appeals, 377–378 Promotional campaigns, 362 Prospecting for customers, 419–420 Psychographic segmentation, 172–174 Psychographic variables, 172 Psychological attributes, 96, 99 attitudes, 102, 120 emotions, 119 learning, 104–105 motivation, 99–101 perceptions, 102–104 personality, 105–106 Psychological pricing, 307 Public relations (PR) core functions, 407–409 crisis management, 409 definition, 361 event sponsorships, 408–409 in-house departments, 407 international, 465 issue sponsorships, 408 pros and cons, 365 Public relations firms, 407; see also Creative agencies Publicity, 407–408 Puffery, 374 Pull strategy, 336, 364–365 Purchasing agents and departments, 138, 139 Purpose marketing, Push strategy, 336, 364–365 Q Qualifying prospects, 420 Qualitative research, 77; see also Focus groups Quality; see also Service quality conformance, 208 perceptions in foreign markets, 461 perceptions of brands, 244, 246 price-quality positioning map, 302–303 product performance, 207–208 warranties, 257–258 Quantitative research, 77; see also Surveys Quantity discounts, 312 Questions closed-ended, 79 open-ended, 79 R R&D; see Research and development Race and ethnicity segmentation, 167–169; see also Ethnic groups Racial groups, 69–70, 168; see also African Americans Radio advertising, 403 Rainforest Alliance, 452 Random factors, 492 Rational appeals, 377 Reach, 401–402 Real state, 116 Receivers, 368 Recycling, 104, 123 Reducing transactions, 329 Reference groups, 113, 170 Reference pricing, 306 Referent power, 334 Regional market zones, 449–450 ASEAN, 453 European Union, 70, 450–451 influences on formation, 450 marketing in, 453 MERCOSUR, 453 NAFTA, 451–452 Subject Index I-23 Regulations, telemarketing, 72, 434; see also Legal issues Relationship orientation, 13–14 Reliability product, 208–209 service delivery, 283 supplier, 149 Repairability, 209 Repeat purchases, 224 Replacement purchases, 224 Repositioning, 182, 218–219 Requests for proposal (RFPs), 145, 146, 147 Research; see Marketing research Research and development (R&D), 221; see also Product development Research problems, defining, 74–75 Resellers, 142–143; see also Distributors Responsiveness, 283–284 Retailer cooperatives, 332 Retailers characteristics, 343–344 co-branding, 250–251 in distribution channel, 326 inventories, 342 loyalty programs, 81 non-store, 346 catalog retailers, 346–347, 434, 455–456 direct selling, 347 television home shopping, 348 vending machines, 348 online; see Electronic commerce personal selling, 418 physical surroundings, 109, 120 pricing, 308 product assortments creating, 328–329, 341 depth, 343 social class of customers and, 112 product variety, 341, 343 purchases, 142–143 services levels, 345–346 of stores, 342, 343–344 store advantages, 344–346 food, 341, 344, 345 general merchandise, 344–345 salespeople, 418 services, 342, 343–344 specialty, 343, 344 Retailing definition, 340 economic importance, 340–341 employment, 340 growth, 340–341 roles, 341–342 top global markets, 341 Retention, customer, 28, 185, 272 Return on customer investment (ROCI), 186, 479 Return on investment (ROI), target, 299–300 I-24 Subject Index Return on marketing investment (ROMI), 478–480 Return on social investment (ROSI), 480, 482 Revenue; see Sales revenue Reverse auctions, 309 Reverse logistics, 337 Reward power, 334 Rewards extrinsic and intrinsic, 428 for salespeople, 428, 429 RFPs; see Requests for proposal Risk tolerance, 150 ROCI; see Return on customer investment ROI; see Return on investment ROMI; see Return on marketing investment ROSI; see Return on social investment S Safety food, 209 product, 208 Salaries, 429 Sales; see also Personal selling in foreign markets, 465 unit, 224 Sales aptitude, 427 Sales force composite, 489 Sales force effectiveness (SFE), 483 Sales forces; see also Personal selling; Salespeople brokers, 329, 373 costs, 377 effectiveness measures, 483 in foreign markets, 456, 465 independent agents, 424 as information sources, 67–68 managing, 426 compensation and rewards, 429, 430 motivation, 428 performance, 426–428 performance evaluation, 429–431 recruitment and selection, 428–429, 431 training, 429, 431 manufacturers’ representatives, 329 new product ideas, 220–221 organizing, 423 customer orientation, 426 geographic orientation, 424–425 product orientation, 425 outsourcing, 373, 424 positions, 418–419 separation from marketing organization, 373 technical selling, 418–419 Sales forecasts; see Forecasting Sales information systems, 67–68 Sales orientation, 11 Sales presentations characteristics of great, 421 definition, 420 goals, 420–421 skills needed, 417 Sales promotion in B2B markets, 405–407 to consumers, 405, 406 definition, 361 in foreign markets, 465 pros and cons, 365 purpose, 404–405 trade shows, 144, 406 Sales proposals, 147 Sales revenue estimating for new products, 224 market share, 481 over product life cycle, 215 Sales skill levels, 427–428 Salespeople; see also Personal selling; Sales forces compensation and rewards, 429, 430 diverse backgrounds, 431 information management, 417 job satisfaction, 428 key account, 419 motivation, 428, 429 performance, 426–428 performance evaluation, 429–431 recruiting and selecting, 428–429 retail, 418 role perceptions, 427 skills needed, 416–417, 427–428 training, 429 Salvation Army, 378 Samples, 79–80, 86 Sarbanes-Oxley (SOX) Act of 2002, 36 SBA; see Small Business Administration SBUs; see Strategic business units Search attributes, 274–275 Search engines advertising on, 146, 384, 485 optimization tools, 146 supplier searches, 146 Seasonal discounts, 312 Seasonal index, 492, 493 Seasonality, 492 SEC; see Securities and Exchange Commission Secondary data advantages and disadvantages, 80–81 definition, 77 in foreign markets, 85–86 sources, 80 Secondary groups, 113 Secondary target markets, 178 Securities and Exchange Commission (SEC), 72–73, 86 Segmentation; see also Demographic segmentation; Target marketing business markets, 140, 176–177 consumer markets behavioral, 174–176 demographic, 163–172 gender, 98–99, 166–167 geographic, 161–162 multiple approaches, 176 psychographic, 172–174 creating new segments, 161 criteria for effective, 161 definition, 159 logic behind, 160 purpose, 160 Selective awareness, 103 Selective distortion, 103 Selective distribution, 335 Selective perception, 368 Selective retention, 103–104 Selling; see Personal selling; Sales Senders, 367 Service agreements; see Warranties Service attributes, 274, 275 credence, 275–276 experience, 275 importance, 276–277 search, 274–275 Service blueprints, 284, 287–288 Service economy, 265 Service encounters, 278 Service failure, 280 Service quality definition, 278 delivery, 280–282 dimensions, 283–284 failures, 280 gap analysis, 278–282 internal services, 269–271 measuring, 283–284 SERVQUAL instrument, 283–284, 285–287 Service recovery, 280–281 Service sector, 265 Service-profit chain, 269, 270 internal service quality, 269–271 revenue and profit growth, 272–274 satisfied, productive, and loyal employees, 271 service value for external customers, 272 Services characteristics, 266 inseparability, 267–268 intangibility, 266–267 perishability, 269 variability, 268–269 customized, 268 definition, 265 as differentiator, 265 free trials, 267 pricing strategies, 305, 308 professional, 276 of retailers levels, 345–346 stores, 342, 343–344 SERVQUAL instrument, 283–284, 285–287 SFE; see Sales force effectiveness Share of voice, 484 Shelf fees, 336 Shopping goods, 204, 335 Short-term memory, 103 Showrooming, 346 SIC; see Standard Industrial Classification Silent Generation, 165, 166 Situation analysis, 39 competitive environmental factors, 41–42 external environmental factors, 39–41 internal environmental factors, 42 SWOT analysis, 42–43 Six Cs of channel strategy, 463–464 SKUs; see Stock-keeping units Slotting allowances, 336 Small Business Administration (SBA), 143, 380 Smartphones; see Mobile communications devices SMSAs; see Standard metropolitan statistical areas Social class segmentation, 170 Social classes, 111–112 Social media advertising on, 247, 400 buzz on, 407–408 in China, 461 marketing strategies, 249 online communities, 389 opportunities and threats, 386 privacy issues, 400 product review sites, 388–389 promotion strategies, 363 social networks, 386–387 teenagers’ use, 400 trends, 247 viral marketing, 389–390 Social responsibility, 296, 480, 482 Societal marketing, Software; see also Customer relationship management; Market information systems; Technology enterprise resource planning systems, 337–338 Excel spreadsheets, 493, 495 marketing research, 82–84 sales systems, 67–68 statistical, 84, 493 Solution sellers, 419 Sorting, 328 Specialty goods, 204 Specific warranties, 257 Sponsorships event, 408–409 issue, 408 Stability pricing, 301 Stakeholders, 7–8, 42 Stand-alone brands, 248 Standard Industrial Classification (SIC) codes, 140 Standard metropolitan statistical areas (SMSAs), 161, 162; see also Cities Staple goods, 203 State and local governments, 143 Statistical demand analysis, 492–493 Statistical software, 84, 493 Stem cell medicine, 277 Stock-keeping units (SKUs), 200 Stock-outs, 337, 484 Stop-to-market mistakes, 222 Storage intermediaries, 329, 338 Store (private-label) brands, 250 Store retailers; see also Retailers advantages, 344–346 food, 341, 344, 345 general merchandise, 344–345 salespeople, 418 services, 345–346 specialty, 343, 344 Straight rebuy situations, 136–137, 143–144 Strategic alliances, 457–458 Strategic business units (SBUs), 32–34 Strategic fit, 178 Strategic marketing, 17–18 Strategic planning corporate-level, 32 functional-level plans, 34–35 market-driven, 32–33 portfolio analysis, 33–34 SBU-level, 32–33 Strategic types, 38–39 Strategic visions, 35 Strategies; see also Competitive strategies definition, 36–37 generic, 37 marketing, 44–45 organizational, 37–39 Styles, product, 210 Subcultures, 108 Subjective measures, 431 Supermarkets, 341 Supplier choice, 149–150 Suppliers; see also Business-to-business markets electronic networks, 350–351 labor standards compliance, 325 out, 137 preferred, 137, 145 reliability, 149 searching for, 145–146 Supplies, 204 Supply chain management, 323 Supply chains; see also Channels of distribution complexity, 134 definition, 134, 323 metrics, 484 Surveys, 77–78 customer satisfaction, 282 delivery methods, 79 electronic, 78, 81, 83–84 in foreign markets, 86–87 positioning studies, 181 questionnaire design, 78–79 questions, 79 Sustainability, 9, 40–41; see also Environmental issues Sustainable competitive advantage, 38 Sustaining innovation, 218 Subject Index I-25 SWOT analysis, 42–43 Symbolic performance, 123 T Tactical marketing, 18–19 Tangibility, of products, 203 Tangibles, in services, 283 Target marketing; see also Positioning; Segmentation approaches concentrated, 180 customized, 180 differentiation, 179–180 undifferentiated, 179 definition, 159, 177 steps, 177 approach selection, 179–180 market segment analysis, 177–178 profiles of target markets, 178 Target markets abandoning, 178 primary, 178 profiles, 178 promotion mix decisions, 375–376 secondary, 178 tertiary, 178 Target return on investment, 299–300 Target return pricing, 311 Tariffs, 447, 453, 466 TCA; see Transaction cost analysis Technical selling, 418–419 Technology; see also Internet; Mobile communications devices; Software in B2B markets, 132, 151, 350–351 changes caused by, 71 electronic data interchange, 151, 350–351 marketing research, 82–84 new products, 218 Teenagers, 400 Telemarketing abuses, 422 costs, 434 customer prospecting, 420 inbound, 420 outbound, 420, 434 regulations, 72, 434 response rates, 434 success factors, 434 Television advertising, 377, 403 home shopping, 348 in pediatricians’ waiting rooms, 222 ratings, 80 Tertiary target markets, 178 Test markets, 226–227, 490 Text messaging, 385 Third-party logistics, 331–332 Time, influence on consumer decisions, 109, 121 I-26 Subject Index Time utility, 27 Time-series analysis, 490–492 Touchpoints, 186, 188–189 Trade discounts, 311–312 Trade servicers, 418 Trade shows, 144, 406 Trademarks, 241, 252 Training, sales, 429 Transaction cost analysis (TCA), 424 Transfer pricing, 466 Transportation costs, 338, 467 in foreign markets, 463 intermediaries, 329 methods, 338–339 Trends, 492 Trust, 149, 422 Tying contracts, 340 U Undifferentiated target marketing, 179; see also Mass marketing Uniform delivered pricing, 313 Unions, 42 Unit sales, 224 U.S Air Force, 142 U.S Army, 30 U.S Census Bureau, 80, 85, 95, 168, 169–170, 343 U.S Department of Defense (DOD), 143, 153–154 U.S Postal Service (USPS), 313 Unsought goods, 204 Upgrades or modifications to existing products, 218 Usage patterns, segmentation by, 174–176; see also Product usage User expectations method, 487 Users, 138 Utility, 27 V VALS (Values and Lifestyles), 172–174, 175 Value benefits-cost ratio, 27 definition, Value chain, 28–30, 323 Value co-creation, 324 Value equation, 344 Value networks, 323–326 Value offering; see Pricing; Products; Services Value pricing, 301–303 Value propositions, 28, 461; see also Positioning Value-creating activities, 28–29 Values of consumers, 102 cultural, 107 generational, 16–17, 166 Values and Lifestyles (VALS), 172–174, 175 Variability, of services, 268–269 Variable pricing, 307–308 Variety, product, 341, 343 Vending machines, 348 Vendors; see Business-to-business markets; Suppliers Vertical integration, 332 Vertical marketing systems (VMSs), 332–333 Video gaming, 164, 299 Viral marketing, 389–390 Virtual organizations, 324 Visions, strategic, 35 VMSs; see Vertical marketing systems W Warehousing, 338; see also Storage intermediaries Warranties brands and, 257–258 costs and benefits, 257–258 general, 257 message conveyed to customer, 258 specific, 257 Website advertising; see Internet advertising Websites, company; see also Electronic commerce; Internet for B2B markets, 146, 151 communication, 383 connection, 383 content, 381–382, 383 context, 382 customer communities, 350, 351, 383, 389 customer interface dimensions, 382–383 customization, 383 development, 404 integration with print catalogs, 434 messages, 381–382 microsites, 383 Wholesaler cooperatives, 332 Wholesalers, 326 Women; see also Gender Internet use, 99 purchasing roles, 98–99 Word-of-mouth advertising, 390; see also Buzz; Viral marketing World Economic Forum, 445 World Trade Organization (WTO), 467 World Wildlife Fund, 381 Y York College of Pennsylvania, 434 Z Zero-based budgeting, 494–495 Zone pricing, 313 .. .Marketing Management Second Edition This page intentionally left blank Marketing Management Second Edition Greg W Marshall ROLLINS COLLEGE Mark W Johnston ROLLINS COLLEGE MARKETING MANAGEMENT, ... success MARKETING PLAN EXERCISE Each chapter connects that chapter’s key content to a semester-long marketing plan project activity Marshall/ Johnston’s Marketing Management, 2e is the only marketing. .. OF THE BOOK Marshall/ Johnston’s Marketing Management, 2e has six major parts, reflective of the logical sequence of building blocks for the course • Part One: Discover Marketing Management In