(BQ) Part 2 book Marketing an introduction has contents: Marketing channels - delivering customer value; engaging customers and communicating customer value - advertising and public relations; personal selling and sales promotion; the global marketplace,...and other contents.
Find more at http://www.downloadslide.com Part 1: Defining Marketing anD the Marketing Process (chaPters 1–2) Part 2: UnDerstanDing the MarketPlace anD cUstoMer ValUe (chaPters 3–5) Part 3: Designing a cUstoMer ValUe-DriVen strategy anD Mix (chaPters 6–14) Part 4: extenDing Marketing (chaPters 15–16) 10 Marketing channels chaPter roaD MaP Delivering customer Value objective outline objectiVe 10-1 explain why companies use marketing channels and discuss the functions these channels perform Supply Chains and the Value Delivery Network (328–329); The Nature and Importance of Marketing Channels (329–331) objectiVe 10-4 explain how companies select, motivate, and evaluate channel members Channel Management Decisions (343–346); Public Policy and Distribution Decisions (347) objectiVe 10-2 Discuss how channel members interact and how they organize to perform the work of the channel Channel Behavior and Organization (332–339) objectiVe 10-5 Discuss the nature and importance of marketing logistics and integrated supply chain management Marketing Logistics and Supply Chain Management (347–354) objectiVe 10-3 identify the major channel alternatives open to a company Channel Design Decisions (339–343) Previewing the concepts We now look at the third marketing mix tool—distribution companies rarely work alone in creating value for customers and building profitable customer relationships instead, most are only a single link in a larger supply chain and marketing channel as such, a firm’s success depends not only on how well it performs but also on how well its entire marketing channel competes with competitors’ channels the first part of this chapter explores the nature of marketing channels and the marketer’s channel design and management decisions We then examine physical distribution—or logistics—an area that has grown dramatically in importance and sophistication in the next chapter, we’ll look more closely at two major channel intermediaries: retailers and wholesalers We start by looking at Uber, the fast-growing, app-based car-hailing service that has recently sprouted up in cities around the world Uber has radically reinvented urban transportation channels, posing a serious threat to conventional taxi cab and car service companies as Uber grows, traditional competitors must innovate or risk being pushed aside Find more at http://www.downloadslide.com first stop Uber: Radically Reshaping Urban Transportation Channels It’s rare But every now and then a company comes along that completely disrupts the traditional ways of distributing a product or service FedEx revolutionized small package delivery channels; Amazon.com radically transformed online selling; and Apple’s iTunes and iPod turned music distribution on its ear Now comes Uber, the app-based ride service that is revolutionizing urban transportation Fast-growing Uber is giving conventional taxi cab and car services a real ride for their money In just five short years, Uber has revved up operations in 270 major cities in 55 countries, already booking more than Uber lets passengers hail the nearest cab from any location using its $1 billion in rides annually smartphone app, then track the vehicle on a map as it approaches Why are so many customers around the world bypassing PAUL J RICHARDS/AFP/Getty Images good old taxi cabs in favor of newcomer Uber? It’s all about convenience, ease of use, and peace of mind No more stepping out into busy city streets to wave down a passing cab Instead, their best behavior Poorly rated drivers risk being rejected by future Uber’s smartphone app lets passengers hail the nearest cab or limo passengers; poorly rated passengers risk rejection by drivers, who from any location with the touch of a button, then track the vehicle can choose which fares they accept on a map as it approaches The Uber app gives riders an accurate Uber’s disruptive innovation has brought a breath of fresh air to estimate in advance of the fare to their destinations (usually less an industry begging for change Urban transportation channels have than that charged by a regular cab), eliminating guesswork and unlong been characterized by cartel-like relationships between cab certainty After the ride, passengers simply exit and walk away Uber companies and local governments, high fixed fares, poor service, automatically pays the driver (including tip) from the passenger’s preand little accountability As one economics professor points out, the paid Uber account, eliminating the often inconvenient and awkward taxi cab industry “was ripe for entry [by startups] because everybody moment of payment And it’s the same process all over the world, hates it.” The business reporter puts it more plainly: “If service at from San Francisco, London, Paris, or Abu Dhabi to Ashville, North Starbucks was as routinely disappointing as service from taxis, StarCarolina, or Athens, Georgia bucks would have gone out of business long ago.” Compare the Uber experience to the uncertain and often unsetLike any innovator, upstart Uber faces tling experience of using a standard taxi cab One business reporter some significant challenges For examdescribes waiting in line at a taxi stand while a driver tried to convince ple, Uber has been criticized for another would-be passenger—a total stranger—to share the cab, exercising too little control over thereby increasing his fare The cab itself was ancient and filthy, with driver quality and security So Uber—the fast-growing ripped and worn seats During the entire ride, the cabbie carried on far, the company has ridapp-based ride service—is a phone conversation in a foreign language via his headset, causing den beneath the radar of revolutionizing urban transportation safety concerns while distractedly navigating busy city streets The industry regulators by not channels in cities around the globe driver spoke only poor, hard-to-understand English “That turned out directly employing drivers as Uber grows, traditional taxi to be a good thing,” says the reporter, “because I couldn’t understand (all Uber drivers are indecab services must innovate or what he was trying to say when he insulted me for not tipping him pendent contractors) and risk extinction enough.” The reporter’s conclusion: “I stepped out of the taxi in front not owning any vehicles (all of my house and realized I just don’t have to put up with this garvehicles are driver-owned) bage anymore Uber has changed my life, and as God is my witness, However, although some muni[wherever Uber is available] I will never take a taxi again.” cipalities have passed ordinances Uber actually began as a ride-sharing service Current Uber favorable to Uber’s operations, others drivers range from professional drivers who’ve switched over from are imposing new regulatory restrictions conventional cab and transportation companies to regular people and licensing requirements looking for a little adventure and some extra income in their spare Uber has also been criticized for its “surge pricing” practices—a time All Uber drivers go through an orientation that requires profidynamic pricing mechanism that kicks in to raise prices when demand ciency in a market area’s dominant language, ensuring that they can exceeds supply, sometimes resulting in shockingly high fares and communicate effectively with customers Uber vehicles must be at accusations of price gouging Uber justifies surge pricing by pointing to least 2007-year models or newer, and customers can often choose the very foundation of its business model—allowing the forces of supthe type of car they want, from an entry-level Prius to a stretch ply and demand to work Surge pricing provides an incentive for more Mercedes S-Class A two-way rating system—by which riders rate drivers to be available during periods when passengers need them drivers and drivers rate riders in return—helps keep both sides on most According to Uber, if a passenger faces a higher-than-normal 327 Find more at http://www.downloadslide.com fare because of surge pricing, the alternative without Uber would more than likely be no taxi at all Moreover, Uber informs passengers in advance what the fares will be If they don’t like the fare, they can find another cab, take public transportation, or walk As Uber expands within a given market, Uber founder and CEO Travis Kalanick envisions the increased likelihood of what he calls “a perfect day”—a day when there is a ride available for everyone who needs one and no surge pricing results Such a scenario is no pipe dream In New York City recently, Uber riders experienced seven such “perfect days” in a row Uber’s huge success has attracted a garage full of competitors, such as Lyft, Sidecar, Gett, Carma, and Curb Even Google (itself a major Uber investor) is rumored to be readying the launch of its own ride-sharing service, one that would eventually utilize the driverless vehicles Google is developing Uber still has a huge first-to-market advantage It has an estimated seven times the riders and 12 times the revenues of nearest competitor Lyft, and it’s adding new customers at an estimated five times faster Beyond the numbers, however, for now, Uber has little to fear from like-minded competitors In fact, the more competitors adopt the new model, the more the revolutionary channel will grow and thrive versus traditional channels, creating opportunities for all new entrants Instead, the new distribution model poses the biggest threat to traditional taxi cab and car-for-hire companies, who are now losing both customers and drivers to Uber and its competitors Uber-mania is even catching on in other industries It seems like there’s an app-based on-demand “Uber” for almost anything these days—laundry and dry cleaning (Washio), in-home massage (Zeel), 24/7 delivery services (Postmates), and even booze (Minibar) In fact, CEO Kalanick sees no end of future applications for Uber’s services, well beyond just delivering people to their destinations Once Uber has established a dense network of cars in every city, he predicts using the network to deliver everything from packages from retailers to takeout food As Kalanick puts it, “Once you’re delivering cars in five minutes, there are a lot of other things you can deliver in five minutes.”1 s the Uber story shows, good distribution strategies can contribute strongly to customer value and create competitive advantage for a firm But firms cannot bring value to customers by themselves Instead, they must work closely with other firms in a larger value delivery network a author comment These are pretty hefty terms for a really simple concept: A company can’t go it alone in creating customer value It must work within a broader network of partners to accomplish this task Individual companies and brands don’t compete; their entire value delivery networks supply chains and the Value Delivery network Producing a product or service and making it available to buyers requires building relationships not only with customers but also with key suppliers and resellers in the company’s supply chain This supply chain consists of upstream and downstream partners Upstream from the company is the set of firms that supply the raw materials, components, parts, information, finances, and expertise needed to create a product or service Marketers, however, have traditionally focused on the downstream side of the supply chain—the marketing channels (or distribution channels) that look toward the customer Downstream marketing channel partners, such as wholesalers and retailers, form a vital link between the firm and its customers The term supply chain may be too limited, as it takes a make-and-sell view of the business It suggests that raw materials, productive inputs, and factory capacity should serve as the starting point for market planning A better term would be demand chain because it suggests a sense-and-respond view of the market Under this view, planning starts by identifying the needs of target customers, to which the company responds by organizing a chain of resources and activities with the goal of creating customer value Yet, even a demand chain view of a business may be too limited because it takes a step-by-step, linear view of purchase-production-consumption activities Instead, most large companies today are engaged in building and managing a complex, continuously evolving value delivery network As defined in Chapter 2, a value delivery network is made up of Value delivery network: in making and marketing even just its classic the company, suppliers, distributors, and, ultimately, customcolas, Pepsi manages a huge network of people within the company plus ers who “partner” with each other to improve the performance thousands of outside suppliers, bottlers, retailers, and marketing service of the entire system For example, Pepsi makes great beverfirms that must work together to create customer value and establish the ages But to make and market just one of its many lines—say, brand’s “Pepsi: live for now” positioning its classic colas—Pepsi manages a huge network of people Vasiliy Baziuk/AP Images 328 Find more at http://www.downloadslide.com chapter 10: Marketing channels: Delivering customer Value Value delivery network A network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value author comment In this section, we look at the downstream side of the value delivery network—the marketing channel organizations that connect the company and its customers To understand their value, imagine life without retailers— say, without grocery stores or department stores Marketing channel (distribution channel) A set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user 329 within the company, from marketing and sales people to folks in finance and operations It also coordinates the efforts of thousands of suppliers, bottlers, retailers ranging from Kroger and Walmart to Papa John’s Pizza, and advertising agencies and other marketing service firms The entire network must function together to create customer value and establish the brand’s “Pepsi: Live for Now” positioning This chapter focuses on marketing channels—on the downstream side of the value delivery network We examine four major questions concerning marketing channels: What is the nature of marketing channels, and why are they important? How channel firms interact and organize to the work of the channel? What problems companies face in designing and managing their channels? What role physical distribution and supply chain management play in attracting and satisfying customers? In the next chapter, we will look at marketing channel issues from the viewpoints of retailers and wholesalers the nature and importance of Marketing channels Few producers sell their goods directly to final users Instead, most use intermediaries to bring their products to market They try to forge a marketing channel (or distribution channel)—a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user A company’s channel decisions directly affect every other marketing decision Pricing depends on whether the company works with national discount chains, uses high-quality specialty stores, or sells directly to consumers online The firm’s sales force and communications decisions depend on how much persuasion, training, motivation, and support its channel partners need Whether a company develops or acquires certain new products may depend on how well those products fit the capabilities of its channel members Companies often pay too little attention to their distribution channels—sometimes with damaging results In contrast, many companies have used imaginative distribution systems to gain a competitive advantage Enterprise Rent-A-Car revolutionized the car-rental business by setting up off-airport rental offices Apple turned the retail music business on its head by selling music for the iPod via the Internet on iTunes FedEx’s creative and imposing distribution system made it a leader in express package delivery And Amazon.com forever changed the face of retailing and became the Walmart of the Internet by selling anything and everything without using physical stores Distribution channel decisions often involve long-term commitments to other firms For example, companies such as Ford, McDonald’s, or Nike can easily change their advertising, pricing, or promotion programs They can scrap old products and introduce new ones as market tastes demand But when they set up distribution channels through contracts with franchisees, independent dealers, or large retailers, they cannot readily replace these channels with company-owned stores or Internet sites if the conditions change Therefore, management must design its channels carefully, with an eye on both today’s likely selling environment and tomorrow’s as well how channel Members add Value Why producers give some of the selling job to channel partners? After all, doing so means giving up some control over how and to whom they sell their products Producers use intermediaries because they create greater efficiency in making goods available to target markets Through their contacts, experience, specialization, and scale of operation, intermediaries usually offer the firm more than it can achieve on its own figure 10.1 shows how using intermediaries can provide economies Figure 10.1A shows three manufacturers, each using direct marketing to reach three customers This system requires nine different contacts Figure 10.1B shows the three manufacturers working through one distributor, which contacts the three customers This system requires only Find more at http://www.downloadslide.com 330 Part 3: Designing a customer Value-Driven strategy and Mix Manufacturer Customer Manufacturer Customer Marketing channel intermediaries make buying a lot easier for consumers Again, think about life without grocery retailers How would you go about buying that 12-pack of Coke or any of the hundreds of other items that you now routinely drop into your shopping cart? Manufacturer Customer Manufacturer Distributor Customer Manufacturer Customer A Number of contacts without a distributor Manufacturer Customer B Number of contacts with a distributor figure 10.1 how a Distributor reduces the number of channel transactions six contacts In this way, intermediaries reduce the amount of work that must be done by both producers and consumers From the economic system’s point of view, the role of marketing intermediaries is to transform the assortments of products made by producers into the assortments wanted by consumers Producers make narrow assortments of products in large quantities, but consumers want broad assortments of products in small quantities Marketing channel members buy large quantities from many producers and break them down into the smaller quantities and broader assortments desired by consumers For example, Unilever makes millions of bars of Lever 2000 hand soap each week However, you most likely only want to buy a few bars at a time Therefore, big food, drug, and discount retailers, such as Safeway, Walgreens, and Target, buy Lever 2000 by the truckload and stock it on their stores’ shelves In turn, you can buy a single bar of Lever 2000 along with a shopping cart full of small quantities of toothpaste, shampoo, and other related products as you need them Thus, intermediaries play an important role in matching supply and demand In making products and services available to consumers, channel members add value by bridging the major time, place, and possession gaps that separate goods and services from those who use them Members of the marketing channel perform many key functions Some help to complete transactions: ●● ●● ●● ●● ●● Information Gathering and distributing information about consumers, producers, and other actors and forces in the marketing environment needed for planning and aiding exchange Promotion Developing and spreading persuasive communications about an offer Contact Finding and engaging customers and prospective buyers Matching Shaping offers to meet the buyer’s needs, including activities such as manufacturing, grading, assembling, and packaging Negotiation Reaching an agreement on price and other terms so that ownership or possession can be transferred Others help to fulfill the completed transactions: ●● ●● ●● Physical distribution Transporting and storing goods Financing Acquiring and using funds to cover the costs of the channel work Risk taking Assuming the risks of carrying out the channel work The question is not whether these functions need to be performed—they must be— but rather who will perform them To the extent that the manufacturer performs these functions, its costs go up; therefore, its prices must be higher When some of these functions are shifted to intermediaries, the producer’s costs and prices may be lower, but the Find more at http://www.downloadslide.com chapter 10: Marketing channels: Delivering customer Value 331 intermediaries must charge more to cover the costs of their work In dividing the work of the channel, the various functions should be assigned to the channel members that can add the most value for the cost number of channel levels channel level A layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyer Direct marketing channel A marketing channel that has no intermediary levels indirect marketing channel A marketing channel containing one or more intermediary levels figure 10.2 consumer and business Marketing channels Producer Producer Companies can design their distribution channels to make products and services available to customers in different ways Each layer of marketing intermediaries that performs some work in bringing the product and its ownership closer to the final buyer is a channel level Because both the producer and the final consumer perform some work, they are part of every channel The number of intermediary levels indicates the length of a channel figure 10.2 shows both consumer and business channels of different lengths Figure 10.2A shows several common consumer distribution channels Channel 1, called a direct marketing channel, has no intermediary levels—the company sells directly to consumers For example, Mary Kay Cosmetics and Amway sell their products through home and office sales parties and online Web sites and social media; companies ranging from GEICO insurance to Omaha Steaks sell directly to customers via the Internet, mobile, and telephone The remaining channels in Figure 10.2A are indirect marketing channels, containing one or more intermediaries Figure 10.2B shows some common business distribution channels The business marketer can use its own sales force to sell directly to business customers Or it can sell to various types of intermediaries, which in turn sell to these customers Although consumer and business marketing channels with even more levels can sometimes be found, these are less common From the producer’s point of view, a greater number of levels means less control and greater channel complexity Moreover, all the institutions in the channel are connected by several types of flows These include the physical flow of products, the flow of ownership, the payment flow, the information flow, and the promotion flow These flows can make even channels with only one or a few levels very complex Using direct channels, a company sells directly to consumers (no surprise there!) Examples: GEICO and Amway Producer Using indirect channels, the company uses one or more levels of intermediaries to help bring its products to final buyers Examples: most of the things you buy—everything from toothpaste to cameras to cars Producer Producer Manufacturer’s representatives or sales branch Wholesaler Retailer Retailer Consumer Consumer Consumer Channel Channel Channel A Consumer marketing channels Producer Business distributor Business distributor Business customer Business customer Business customer Channel Channel Channel B Business marketing channels Find more at http://www.downloadslide.com 332 Part 3: Designing a customer Value-Driven strategy and Mix author comment Channels are made up of more than just boxes and arrows on paper They are behavioral systems consisting of real companies and people who interact to accomplish their individual and collective goals Like groups of people, sometimes they work well together and sometimes they don’t channel behavior and organization Distribution channels are more than simple collections of firms tied together by various flows They are complex behavioral systems in which people and companies interact to accomplish individual, company, and channel goals Some channel systems consist of only informal interactions among loosely organized firms Others consist of formal interactions guided by strong organizational structures Moreover, channel systems not stand still— new types of intermediaries emerge and whole new channel systems evolve Here we look at channel behavior and how members organize to the work of the channel channel behavior channel conflict Disagreements among marketing channel members on goals, roles, and rewards—who should what and for what rewards A marketing channel consists of firms that have partnered for their common good Each channel member depends on the others For example, a Ford dealer depends on Ford to design cars that meet customer needs In turn, Ford depends on the dealer to engage customers, persuade them to buy Ford cars, and service the cars after the sale Each Ford dealer also depends on other dealers to provide good sales and service that will uphold the brand’s reputation In fact, the success of individual Ford dealers depends on how well the entire Ford marketing channel competes with the channels of Toyota, GM, and other auto manufacturers Each channel member plays a specialized role in the channel For example, Samsung’s role is to produce electronics products that consumers will covet and create demand through national advertising Best Buy’s role is to display these Samsung products in convenient locations, answer buyers’ questions, and complete sales The channel will be most effective when each member assumes the tasks it can best Ideally, because the success of individual channel members depends on the overall channel’s success, all channel firms should work together smoothly They should understand and accept their roles, coordinate their activities, and cooperate to attain overall channel goals However, individual channel members rarely take such a broad view Cooperating to achieve overall channel goals sometimes means giving up individual company goals Although channel members depend on one another, they often act alone in their own shortrun best interests They often disagree on who should what and for what rewards Such disagreements over goals, roles, and rewards generate channel conflict Horizontal conflict occurs among firms at the same level of the channel For instance, some Ford dealers in Chicago might complain that other dealers in the city steal sales from them by pricing too low or advertising outside their assigned territories Or Holiday Inn franchisees might complain about other Holiday Inn operators overcharging guests or giving poor service, hurting the overall Holiday Inn image Vertical conflict, conflict between different levels of the same channel, is even more common For example, McDonald’s has recently faced growing conflict with its corps of almost 3,000 independent franchisees:2 channel conflict: growing McDonald’s franchisee discontent may explain the increasing lack of smiles on the faces of both McDonald’s cashiers and customers “there’s a huge connection” between franchisee satisfaction and customer service Seth Perlman/AP Images In a recent company Webcast, based on rising customer complaints that service isn’t fast or friendly enough, McDonald’s told its franchisees that their cashiers need to smile more At the same time, it seems, the franchisees weren’t very happy with McDonald’s, either A recent survey of franchise owners reflected growing franchisee discontent with the corporation Much of the conflict stems from a recent slowdown in systemwide sales that has both sides on edge The most basic conflicts are financial McDonald’s makes its money from franchisee royalties based on total system sales In contrast, franchisees make money on margins—what’s left over after their costs Find more at http://www.downloadslide.com chapter 10: Marketing channels: Delivering customer Value 333 To reverse the sales slump, McDonald’s has increased emphasis on Dollar Menu items, a strategy that increases corporate sales but squeezes franchisee margins Franchisees are also grumbling about adding popular but more complex menu items, such as Snack Wraps, that increase the top line for McDonald’s but add preparation and staffing costs for franchisees while slowing down service McDonald’s is also asking franchisees to make costly restaurant upgrades and overhauls As one survey respondent summarized, there’s “too much reliance on price-pointing and discounting to drive top-line sales, which is where the corporate cow feeds.” In all, the survey rates McDonald’s current franchisee relations at a decade-low 1.93 out of a possible 5, in the “fair” to “poor” range That fact might explain both the lack of smiles and the increasing customer complaints According to one restaurant consultant, “there’s a huge connection” between franchisee satisfaction and customer service Some conflict in the channel takes the form of healthy competition Such competition can be good for the channel; without it, the channel could become passive and noninnovative For example, the McDonald’s conflict with its franchisees might represent normal give-and-take over the respective rights of the channel partners However, severe or prolonged conflict can disrupt channel effectiveness and cause lasting harm to channel relationships McDonald’s should manage the channel conflict carefully to keep it from getting out of hand Vertical Marketing systems conventional distribution channel A channel consisting of one or more independent producers, wholesalers, and retailers, each a separate business seeking to maximize its own profits, perhaps even at the expense of profits for the system as a whole Vertical marketing system (VMs) A channel structure in which producers, wholesalers, and retailers act as a unified system One channel member owns the others, has contracts with them, or has so much power that they all cooperate figure 10.3 comparison of conventional Distribution channel with Vertical Marketing system For the channel as a whole to perform well, each channel member’s role must be specified, and channel conflict must be managed The channel will perform better if it includes a firm, agency, or mechanism that provides leadership and has the power to assign roles and manage conflict Historically, conventional distribution channels have lacked such leadership and power, often resulting in damaging conflict and poor performance One of the biggest channel developments over the years has been the emergence of vertical marketing systems that provide channel leadership figure 10.3 contrasts the two types of channel arrangements A conventional distribution channel consists of one or more independent producers, wholesalers, and retailers Each is a separate business seeking to maximize its own profits, perhaps even at the expense of the system as a whole No channel member has much control over the other members, and no formal means exists for assigning roles and resolving channel conflict In contrast, a vertical marketing system (VMS) consists of producers, wholesalers, and retailers acting as a unified system One channel member owns the others, has Producer Producer Wholesaler Wholesaler Retailer Vertical marketing system—here’s another fancy term for a simple concept It’s simply a channel in which members at different levels (hence, vertical) work together in a unified way (hence, system) to accomplish the work of the channel Retailer Consumer Consumer Conventional marketing channel Vertical marketing system Find more at http://www.downloadslide.com 334 Part 3: Designing a customer Value-Driven strategy and Mix contracts with them, or wields so much power that they must all cooperate The VMS can be dominated by the producer, the wholesaler, or the retailer We look now at three major types of VMSs: corporate, contractual, and administered Each uses a different means for setting up leadership and power in the channel corporate VMs A vertical marketing system that combines successive stages of production and distribution under single ownership—channel leadership is established through common ownership contractual VMs A vertical marketing system in which independent firms at different levels of production and distribution join together through contracts corporate VMs A corporate VMS integrates successive stages of production and distribution under single ownership Coordination and conflict management are attained through regular organizational channels For example, Sherwin-Williams, the largest U.S coatings manufacturer, sells its Sherwin-Williams-branded products exclusively through more than 4,000 company-owned retail paint stores And grocery giant Kroger owns and operates 38 manufacturing plants—17 dairies, bakery plants, grocery plants, frozen dough plants, beverage plants, cheese plants, ice cream plants, and meat plants—that give it factory-to-store channel control over 40 percent of the more than 11,000 private-label items found on its shelves.3 Integrating the entire distribution chain—from its own design and manufacturing operations to distribution through its own managed stores—has turned Spanish clothing chain Zara into the world’s fastest-growing fast-fashion retailer:4 franchise organization A contractual vertical marketing system in which a channel member, called a franchisor, links several stages in the production-distribution process In recent years, fashion retailer Zara has attracted an army of loyal shoppers swarming to buy its “cheap chic”—stylish designs that resemble those of big-name fashion houses but at moderate prices However, Zara’s amazing success comes not just from what it sells but from how fast its cutting-edge distribution system delivers what it sells Zara delivers fast fashion—really fast fashion Thanks to vertical integration, Zara can take a new fashion concept through design, manufacturing, and store-shelf placement in as little as three weeks, whereas competitors such as H&M, Gap, or Benetton often take six months or more And the resulting low costs let Zara offer the very latest midmarket chic at downmarket prices Speedy design and distribution allow Zara to introduce a copious supply of new fashions—at three times the rate of competitor introductions Then Zara’s distribution system supplies its stores with small shipments of new merchandise twice a week, compared with competing chains’ outlets, which get large shipments seasonally, usually just four to six times per year The combination of a large number of timely new fashions delivered in frequent small batches gives Zara stores a continually updated merchandise mix that brings customers back more often Fast turnover also results in less outdated and discounted merchandise Rather than guessing about tomorrow’s fashions, Zara can wait to see what customers are actually buying and then make that contractual VMs franchising systems: through franchising, two Men and a truck—“Movers Who care”—grew quickly from two high school students with a pickup truck to an international network of 330 franchise locations that’s experienced record growth over the past six years Two Men and a Truck International A contractual VMS consists of independent firms at different levels of production and distribution that join together through contracts to obtain more economies or sales impact than each could achieve alone Channel members coordinate their activities and manage conflict through contractual agreements The franchise organization is the most common type of contractual relationship In this system, a channel member called a franchisor links several stages in the production-distribution process In the United States alone, some 780,000 franchise outlets account for more than $889 billion of economic output Industry analysts estimate that a new franchise outlet opens somewhere in the United States every eight minutes and that about one out of every 12 retail business outlets is a franchised business.5 Almost every kind of business has been franchised—from motels and fastfood restaurants to dental centers and dating services, from wedding consultants and handyman services to funeral homes, fitness centers, and moving services For example, through franchising, Two Men and a Truck moving services— “Movers Who Care”—grew quickly from two high school students looking to make extra money with a pickup truck to an international network of 330 franchise locations that’s experienced record growth over the past six years and completed more than 5.5 million moves.6 There are three types of franchises The first type is the manufacturersponsored retailer franchise system—for example, Ford and its network of Find more at http://www.downloadslide.com chapter 10: Marketing channels: Delivering customer Value administered VMs A vertical marketing system that coordinates successive stages of production and distribution through the size and power of one of the parties horizontal marketing system A channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity 335 independent franchised dealers The second type is the manufacturer-sponsored wholesaler franchise system—Coca-Cola licenses bottlers (wholesalers) in various world markets that buy Coca-Cola syrup concentrate and then bottle and sell the finished product to retailers locally The third type is the service-firm-sponsored retailer franchise system— for example, Burger King and its nearly 12,100 franchisee-operated restaurants around the world Other examples can be found in everything from auto rentals (Hertz, Avis), apparel retailers (The Athlete’s Foot, Plato’s Closet), and motels (Holiday Inn, Hampton Inn) to supplemental education (Huntington Learning Center, Mathnasium) and personal services (Great Clips, Mr Handyman, Anytime Fitness) The fact that most consumers cannot tell the difference between contractual and corporate VMSs shows how successfully the contractual organizations compete with corporate chains The next chapter presents a fuller discussion of the various contractual VMSs administered VMs In an administered VMS, leadership is assumed not through common ownership or contractual ties but through the size and power of one or a few dominant channel members Manufacturers of a top brand can obtain strong trade cooperation and support from resellers For example, GE, P&G, and Apple can command unusual cooperation from many resellers regarding displays, shelf space, promotions, and price policies In turn, large retailers such as Walmart, Home Depot, Kroger, and Walgreens can exert strong influence on the many manufacturers that supply the products they sell For example, in the normal push and pull between Walmart and its consumer goods suppliers, giant Walmart—the biggest grocer in the United States with nearly 30 percent share of all U.S grocery sales—usually gets its way Take supplier Clorox, for instance Although The Clorox Company’s strong consumer brand preference gives it significant negotiating power, Walmart simply holds more cards Sales to Walmart make up 26 percent of Clorox’s sales, whereas Clorox products account for only one-third of percent of Walmart’s purchases, making Walmart by far the dominant partner Things get even worse for CalMaine Foods and its Eggland’s Best brand, which relies on Walmart for nearly one-third of its sales but tallies only about one-tenth of percent of Walmart’s volume For such brands, maintaining a strong relationship with the giant retailer is crucial.7 horizontal Marketing systems horizontal marketing systems: general Mills and nestlé operate a joint venture—cereal Partners Worldwide—that markets general Mills big g cereal brands outside north america Sonny Meddle/Rex Features/Presselect/Alamy Another channel development is the horizontal marketing system, in which two or more companies at one level join together to follow a new marketing opportunity By working together, companies can combine their financial, production, or marketing resources to accomplish more than any one company could alone Companies might join forces with competitors or noncompetitors They might work with each other on a temporary or permanent basis, or they may create a separate company For example, competing big media companies Fox Broadcasting, Disney-ABC, and NBCUniversal (Comcast) jointly own and market Hulu, the successful online subscription service that provides on-demand streaming of TV shows, movies, and other video content Together, they compete more effectively against digital streaming competitors such as Netflix Walmart partners with noncompetitor McDonald’s to place “express” versions of McDonald’s restaurants in Walmart stores McDonald’s benefits from Walmart’s heavy store traffic, and Walmart keeps hungry shoppers from needing to go elsewhere to eat Such channel arrangements also work well globally For example, competitors General Mills and Nestlé operate a joint venture—Cereal Partners Worldwide—to market General Mills Big G cereal brands in 130 countries outside North America General Mills supplies a kitchen Find more at http://www.downloadslide.com 658 Subject Index Advertising agency, 418–419 Advertising appeals, 410 Advertising media media types, 413, 414t media vehicles, 415 reach, frequency, impact, engagement, 412–413 timing, 415–416 Advertising message, 407–412 Advertising objectives, setting, 403–405 Advertising option icon, 481 Advertising specialties, 448 Advertising strategy, 407–416 Advertising-to-sales ratios, 425 Advocate, The, 107 Affordable Care Act, 454 Affordable method, advertising, 405 African Americans, 106, 164 Age consumer buying behavior and, 170–171 consumer privacy and, 479–480 market segmentation and, 200 See also Children; Demographic entries Age and life-cycle segmentation, 200 Agents, wholesalers and, 385t Age structure of population, changing, 101–104 AIO (activities, interests, opinions) dimensions of consumer lifestyles, 171 Air carriers, supply chain distribution and, 352 Airtruck (transportation), 352 Allowance pricing, 308t, 309, 450 Alternative evaluation, consumer buying behavior and, 178 Alternative media, advertising, 414 American Dream, 525 American pop culture, 497 Americans with Disabilities Act (1991), 114t Amount of service retailers, 363–364 Approach step, in selling process, 443 Asian Americans, as consumer subculture, 165 Aspirational group, 166 Assortment building, 383 Atmosphere, of store, 371 Attack advertising, 404 Attitudes, consumer buying behavior and, 176 Attraction, 46 Audiovisual materials, PR and, 422 Augmented product, 232 Automated warehouses, 387 Automobile Information Disclosure Act, 321 B Baby boomers, 101–102 Bad Samaritans, 149 Barnacles (customer group), 51f Barriers to entry, marketing practices and, 526–527 Barter, 495 Basic relationships, 45 Basing-point pricing, 312 Battle of the brands, 254 Behavioral segmentation, consumer market, 202–204 benefits sought, 202–203 loyalty status and, 203–204 occasions, 202 usage rate, 203 user status, 203 Behavioral targeting, 143 Beliefs, consumer buying behavior and, 176 Benefit segmentation, consumer market, 202–203 Beyond greening, environmental sustainability and, 529f, 532 Big Bang Theory, The, 407, 488 Big-box discounters, 365–366 Big data analyze use, CRM and, 146–147 customer insights, marketing and, 129 marketing analytics and, 146–150 Big idea, advertising, 410 Black Friday, 518 Blogosphere, 467 Blogs online marketing and, 466–467 See also Social media entries Bloomberg’s, 415 BoJack Horseman, 149 BOOM! Magazine, 101 Boston Consulting Group (BSG) approach, to portfolio analysis, 73–74 Boycotts, globalization and, 497 Branches, manufacturers’/ retailers’, 385t Brand(s) American, in international marketplace, 497–498 managing, 257, 259 product life-cycle and, 278 shopper marketing and, 362–363 websites, 421 word-of-mouth, 168–169 Brand ambassadors, 167 Brand-building advertising, 406 Brand content, advertising and, 407–412 Brand development brand extensions, 256–257 line extension, 255–256 multibrands, 257 new brands, 257 strategies, 256f Branded community websites, online marketing and, 463 Branded entertainment, 408–409 Brand equity, 250–251 Brand experience, 35 Brand extensions, 256–259 Branding global, 503 product, 237–238 Branding strategies brand development, 255–257 brand equity/value, 250–251 brand name selection, 252–253 brand positioning, 251–252 brand sponsorship, 253–255 defining, 249–250 major strategy decisions, 251f Brand integrations, 408–409 Brand managers, 430 Brand name hall of shame, 505 Brand names, localizing, 506–507 Brand name selection, 252–253 Brand personality, 173 Brand positioning, 251–252, 259 Brand sponsorship, 253–255 co-branding, 255 licensing, 254–255 national v store brands, 253–254 Brand tribes, 202 Brand value, 250–251 Break-even chart, 298 Break-even pricing, 298, 325 Bribes, 540–541 Brick-and mortar retailers, 337, 373 Brokeback Mountain, 107 Brokers, wholesalers and, 385t Browsing, in-store/at-home, 380–381 Bulk breaking, wholesalers and, 383 Bundling, pricing and, 308 Business, marketing impact on, 526–527 Business analysis, 273 Business buyer behavior influences on, 186–187f participants in process, 185–186 types of buying situations, 184, 185f Business buyer decision process general need description, 188 order-routine specification, 189 performance review, 189 problem recognition, 187–188 product specification, 188 proposal solicitation, 189 supplier search, 188 supplier selection, 189 Business buyers, digital/social marketing and business-to-business, 190–191 e-procurement/online purchasing, 189 Business markets, 100 buyer behavior See Business buyer behavior buying unit, nature of, 183 decision types/process, 183–184 market structure and demand, 183 segmentation and, 204–205 Business norms, culture and, 496 Business portfolio, designing, 71 See also Portfolio analysis Business promotions, 445–446, 451 Business-to-business e-procurement, 189 selling, social selling and, 439–440 telemarketing, 477 Businessweek, 415 Butterflies (customer group), 51f Buyer decision process information search, 177–178 need recognition, 177 Buyer decision process, new products, 179–181 adoption process, 180 innovativeness, individual differences in, 180 rate of adoption, product characteristics influence on, 181 Buyers direct and digital marketing and, 459–460 omni-channel, 362 power of, 207 price changes, reactions to, 317 Buying, wholesalers and, 383 Buying center, 186 Buying unit, in business markets, 183 Buy one give one away concept, 536–537 BuzzFeed, 409 Buzz marketing, 167–169 By-product pricing, 307–308 C Call objectives, 443 Call plan, 437 Call reports, 438 CAN-SPAM Act (2003), 114t Capital items, 234 Captain America, 409 Captive-product pricing, 307 Care and Training of Your Pet Rock, The (Dahl), 279 Cars, 255 Cash-and-carry wholesalers, 384t Cash cows, 73 Cash discount, 309 Cash rebates, 311 Cash transactions, international trade and, 495 CASRO Code of Standards and Ethics for Survey Research, 155 Catalog Age magazine, 476 Catalog marketing, 476–477 Category killers, 365 Causal research, 135 Cause-exploitative marketing, 116 Cause-related marketing, 115–116 Central American Free Trade Agreement (CAFTA-DR), 492 Cents-off deals consumer promotions and, 448 Channel (direct marketing), 331 Channel behavior, 332–333 Find more at http://www.downloadslide.com Subject Index Channel conflict, 332 Channel design consumer needs, analyzing, 339–340 evaluate economic/control/adaptability criteria, 342 intermediaries, type/number of, 341–342 international distribution, 342–343 objectives, setting channel, 340–341 responsibilities of channel members, 342 Channel differentiation, 218 Channel levels pricing across, public policy and, 321 pricing within, public policy and, 320 Channel management, 343–346 evaluate members, 346 manage/motivate members, 344 members, selecting, 343–344 Channel members evaluate, 346 motivate/manage, 344 select, 343–344 Channel partnering, 344–346 Channels between nations, 509 Channels within nations, 509 Chief marketing officers (CMO), 88 Chief privacy officer (CPO), 154 Children Child Protection Act (1966), 114t Children’s Online Privacy Protection Act (2000), 114t, 481 Children’s Television Act (1990), 114t online privacy and, 479–480 social media privacy and, 543 targeted marketing and, 212–213 Citizen-action publics, 99 Class-action lawsuits, 285 Clayton Act (1914), 114t, 319, 347 Closing, selling process, 444 Club marketing programs, 46 Cluster (area) sample, 144t Codes of conduct, ethical, 540–541 Cognitive dissonance, 179 Cold calling, 442 Colors, in-store experience, 371 Commercialization, new product development and, 275 Commercial online databases, 136 Commercials, as cultural pollution, 526 Commercial sources, of information, 177 Commission, salespeople and, 436 Commission merchants, 385t Common Threads Initiative, Patagonia, 517–518 Communicability, adoption rate and, 181 Communication adaptation, 505 Communication channels, 396 Communication effects, of advertising, 416–418 Communication strategies, global marketing and, 504–505 Community shopping center, 375 Companies, PR and, 420 Company buying sites, 189 Company environment macroenvironment, 100–119 microenvironment, 96–97f See also entries for individual environments Company to customer, personal selling and, 430 Comparative advertising, 404 Compatibility, adoption rate and, 181 Compensation, of salespeople, 436 Competence, personality trait, 173 Competition channel conflict and, 333 global, 489 in marketing plan, 86f Competition-based pricing, 299–300 Competitive advantage, 217–219 Competitive marketing, unfair, 526–527 Competitive marketing intelligence, 131, 133–134 Competitive party method, advertising, 406 Competitors acquisition of, 526–527 in company microenvironment, 98 as idea source, 268 market strategies of, 212 powerful, 207 price changes, reaction to, 318 Complexity, adoption rate and, 181 Complex sales force structure, 431 Concentrated marketing, 208–209 Concept development, 271–272 Concept testing, 272 Conformance quality, 236 Congestion tolls, 526 Conscious consumption, 517 Conspicuous spending, 525 Consumer consumerism, 527–529 engagement, tracking, 412–413 environmentalism and, 529, 531–533 marketing communications and, 395 planned obsolescence, 523 poor service to disadvantaged, 523–524 social costs and, 526 telemarketing and, 477 See also Customer entries Consumer, marketing impact on deceptive practices, 521–522 high-pressure selling, 522 high prices, 520–521 planned obsolescence, 523 poor service, to disadvantaged consumers, 523–524 product safety, 522–523 Consumer behavior buying decision process See Buyer decision process cultural factors and, 163–167 evaluation of alternatives, 178 factors influencing, 163f model of, 162–163f personal factors, 170–174 post-purchase behavior, 179 psychological factors, 174–176 purchase decision, 178–179 social factors, 166–170 Consumer buyer behavior, 162 See also Consumer behavior Consumer expressions, 413 Consumer-generated content, advertising, 412 Consumer-generated video, 47 Consumer impressions, 413 Consumerism, 527–529 Consumer market, 100 defined, 162 segmentation variables for, 199f segmenting, 199–204 See also Market segmentation, consumer Consumer-oriented marketing, 534 Consumer privacy direct and digital marketing and, 480 See also Privacy entries Consumer privacy marketing research ethics and, 153–155 Consumer products, 232–233 Consumer Product Safety Act (1972), 114t, 285 Consumer promotions, 445–448, 450 Consumer protection, legislation/ regulations and, 113–115, 114t Consumer spending, retailers and, 376 Consumer value-driven market strategy, 198f Consumption, conscious, 517–518 Contact methods, for research, 139–141 Content marketing, 396–399 Content marketing managers, 397 Contests, consumer promotions and, 448 Contextual advertising, 464 Continuous inventory replenishment systems, 353 Contract logistics, 354–355 Contract manufacturing, 501 Contractual VMS, 334–335 Control issues, in channel design, 342 Controlled test markets, 274 Convenience products, 233 Convenience sample, 144t Convenience stores, 365 Conventional distribution channels, 333 vertical marketing systems v., 333f Conventions, business promotions and, 451 Cookies online tracking and, 481 659 Copy, advertising, 411 Core beliefs/values, 116–117 Core customer value, 231, 232f Corporate chain retailer, 367t Corporate giving, 116 Corporate identity materials, PR and, 422 Corporate image marketing, 234 Corporate marketing ethics policies, 539 Corporate VMS, 334 Cosmopolitan, 469 Cost-based pricing, 293, 294f, 297–299 cost-plus, 298–299 types of costs, 297–298 Costs, types of, 297–298 Costs-plus pricing, 298–299 Coupons, consumer promotions, 447, 465 Cradle-to-cradle practices, 532 Creative concept, advertising, 410 Creative selling, 429 CRM See Customer relationship management (CRM) Cross-company teams, logistics management and, 354 Cross-functional teamwork, logistics management and, 353, 354 Cross-market segmentation, 205–206 Cross-shopping, digital devices and, 379 Crowdsourcing, idea generation and, 268–271 Cues, 176 Cultural behaviors, global trade and, 496 Cultural environment, 116–119 cultural values, persistence of, 116–117 secondary, shifts in, 117–119 Cultural pollution, marketing and, 526 Cultural shifts, consumer behavior and, 164 Cultural values persistence of, 116–117 secondary, 117–119 Culture consumer behavior and, 163–167 international marketing and, 495–498 international marketing research and, 153 language, global marketing and, 505–507 localizing brand names and, 506–507 market segmentation and, 205 Currency restrictions, 493 Current business portfolio, 71 Customer brand engagement/experience, 259 brand extensions and, 258–259 branding and, 250 Find more at http://www.downloadslide.com 660 Subject Index Customer (Continued) in company microenvironment, 100 direct/digital marketing, issues with, 479–480 as idea source, 268 insights, marketing information and See Marketing information needs, channel design and, 339–340 needs/wants/demands, 34 personal selling and, 429–430 selecting, 37 serving or stalking, 214–215 share of, 49–50 shopper marketing and, 362–363 See also Consumer entries Customer Business Development (CBD) teams, 434 Customer care, employees and, 246–247 Customer-centered logistics, 347–348 Customer-centered new product development, 275–276 Customer-centricity program, 131 Customer coproduction, 244 Customer-driven companies, 39 Customer-driving marketing, 39 Customer engagement online retailing and, 378–380 real-time marketing and, 54–55 social media marketing and, 470 Customer-engagement marketing, 46–47 Customer equity branding and, 251 defining, 50 right customer/right relationship, 51 Customer experiences, 230–231 Customer insights, marketing information and, 129–130 Customer insights teams, 129 Customer lifetime value, 49 Customer loyalty, 49 Customer-managed relationships, 46 Customer management organization, 87 Customer-perceived value, 41 Customer Relationship Groups, 51f Customer relationship management (CRM), 41–46, 77, 427–428 analyze/use customer data, 146–147 benefits of, 149–150 customer satisfaction, 42–45 customer value, 41–42 levels and tools, 45–46 loyalty/retention, 49 personal selling process and, 444–445 share of customer, 49–50 software systems, 344 systems for, 150 Customer relationships, planning/ building, 76–78 Customer retention, 49 Customer reviews, 142 Customer sales force structure, 431 Customer satisfaction, 42–45, 245 Customer-segment pricing, 309 Customer service managing quality of, 248–249 marketing logistics and, 350 product support, 240–241 Customer-solution approach, 443 Customer value, 41–42 Customer value-based pricing, 293–294 Customer value delivery network, 339 See also Marketing channels Customer value-driven marketing strategies, 79–81 Customer value marketing, 534–535 D Dancing with the Stars, 107, 449, 498 Data consumer insight, 129 consumer privacy and, 480 marketing analytics and, 146–150 misuse of, 155 primary data collection, 137–145 See also Primary data collection public policy, privacy, ethics and, 153–155 secondary, gathering, 136–137 See also Marketing information entries Databases, commercial online, 136 Data mining, online privacy and, 481 See also Privacy entries Deadliest Catch, 230 Deception, marketing and, 479–480 Deceptive practices, in marketing, 521–522 Deceptive pricing, 321 Decision making, in business markets, 183–184 Decline stage, of product life-cycle, 278f, 283–284 Deficient products, 537–538 Delivery, service differentiation and, 248 Demand, 34 business market structure and, 183 price elasticity and, 303 Demand, pricing and, 302–303 Demand chain, 328 Demand curve, 302–303 Demographic environment, of companies, 100–108 age structure of population, 101–104 baby boomers, 101–102 diversity and, 106–108 education and, 106 family, changing American, 104–105 generational marketing, 104 Generation X, 102 Generation Z, 103–104 geographic shifts, in population, 105–106 Millennials, 103 See also Age; Children Demographics, global market potential and, 500t Demographic segmentation, 200–201 age/life cycle, 200 gender, 200–201 income, 201 Demography, 100 Demonstration, selling process, 443 Department stores, 364 Derived demand, 183 Descriptive research, 135 Design for environment (DFE), 532 Desirable products, 537–538 Development, PR and, 420 Differentiated marketing, 208 Differentiation, 198 branding and, 250 channel, 218 managing service, 247–248 product, 81 retailer, 369–370 services, 217 strategy, choosing, 217–223 wholesaler, 385–386 Digital advertising, 414t, 459 See also Direct and digital marketing Digital and social media marketing, 52–56 Internet, marketing, digital age and, 461–462 mobile marketing, 471–475 online advertising, 463–464 online marketing, 462–467 social media marketing, 467–471 Digital catalogs, 476 Digital coupons, 447 Digital in-store experience, 372–373 Digital marketing, 401 Amazon.com and, 457–458 business-to-business, 190–191 promotion mix and, 394–395 See also Digital and social media marketing; Direct and digital marketing Digital media, customer engagement and, 46–47 Digital promotion, 396 Digital sales, social selling, 438–441 Digital shopping, 377–380 Digital technology advertising and, 407–408 consumer-generated advertising content, 412 marketing communications and, 395 social selling and, 438–441 Direct and digital marketing, 458–460 benefits of, buyer/seller, 459–460 forms of, 460f model for, 458–459 public policy and, 479–481 rapid growth of, 459 Direct exporting, 501 Direct investment, international market and, 502–503 Direct mail, advertising, 414t Direct-mail marketing, 475–476 Direct marketing, 331, 401, 458–459 Amazon.com and, 457–458 catalog marketing, 476–477 consumer privacy, 480 direct-mail, 475–476 direct-response television (DRTV), 477–478 kiosk marketing, 478–479 promotion mix and, 394–395 telemarketing, 477 See also Direct and digital marketing Direct-response television (DRTV), marketing and, 477–478 Direct retailing, 377–380 Disabilities, diversity and, 106–108 Discount pricing, 308–310, 450 Discount stores, 365–366 Disintermediation, 336–339 Distribution flows, 331 high costs of, 520 intensive/exclusive/selective, 341–342 international channel design for, 342–343 marketing channels and, 86f See Marketing channels public policy and, 347 wholesaling and, 386 Distribution centers, 350 Distribution channels, 328 in global marketplace, 509–510 See also Channel entries Distributors, as idea source, 268 Diversification, 75f, 76 Diversity, in populations, 106–108 Divisibility, adoption rate and, 181 Dogs, in portfolio analysis, 74 Doha Round, 491 Do-Not-Call Implementation Act (2003), 114t Do Not Call Registry, 432, 480–481 Do Not Track system, 143 Double bottom line, of values/ profits, 537 Downsizing, strategies for, 75–76 Drive, consumer buying behavior and, 174, 176 Drones, use of, 424 Drop shippers, 384t Duties on imports, 316, 490 Dynamic pricing, 312, 314–315, 327–328 E Early adopters, 180, 181f Early mainstream adopters, 180, 181f Earned media, 397, 414 E-commerce, 337, 362, 513 Find more at http://www.downloadslide.com Subject Index Economic communities, 491–492 Economic criteria, channel design and, 342 Economic environment business buying and, 187 changing, 56 of international trade, 492–493 macroenvironment and, 108–109 Economic factors in global marketplace, 500t market segmentation and, 205 Economics global pricing and, 509 international target marketing and, 494–495 Economic situation, consumer buying behavior and, 171 Economy consumer spending retailing and, 387 pricing and, 303–304 retailing, consumer spending and, 376 See also Great Recession entries EDLP (everyday low pricing), 295, 374 Education, demographics and, 106 E-learning, 435–436 Electronic data interchange (EDI), 352 Electronic transfer order, 348 Elementary, 408 Email marketing, 464–465 Emerging economies, 492 Empathy, sales and, 427 Employees, customer care and, 246–247 Encyclopedia Britannica, 461 Endorsements, advertising and, 411 Engagement, advertising and, 412–413, 470 Engaging customers See Customer engagement entries Entertainment global movie market, 498 merge with advertising, 408 Environment changing economic, 56 sustainable marketing and, 58–59 Environmental footprint, 519 Environmental forces, 36f Environmentalism consumers, marketing and, 529, 531–533 ethics and, 540 Environmental sustainability, 110–112, 529–531 E-procurement, business buyers and, 189 ESPN The Magazine, 71, 415 Esteem needs, 174, 175f E-tailers, 461 Ethical behavior, 519 Ethics marketing, 538–541 marketing research and, 153–155 morally difficult marketing situations, 539t Ethnic diversity, in populations, 106–108 Ethnicity, subcultures, consumer behavior and, 164–166 Ethnographic research, 137–138 Evaluation, of sales promotions, 451–452 Event marketing, consumer promotions and, 448–450 Event sponsorships, consumer promotions and, 448, 450 Everything Zoomer, 101 Excessive markups, 520 Exchange controls, 490 Exchanges, 35–36 Excitement, personality trait, 173 Exclusive dealing, 347 Exclusive distribution, 341, 347 Exclusive territorial agreements, 347 Execution style, of advertising, 410–411 Expectations v post-purchase performance, 179 Expense reports, 438 Expenses, compensation and, 436 Experiences, consumer, market offering and, 230–231 Experiential retailing, 371, 373 Experimental research, 139 Experimental sources, of information, 178 Exploratory research, 135 Export department, global marketing, 511 Exporting, to foreign markets, 500–501 External idea sources, 268 External marketing, 245f External publics, 99 External stimuli, 177 Extranet links, suppliers and, 189 F Factory outlet malls, 366 Factory outlets, 366 Fair Packaging and Labeling Act (1966), 114t, 240 Fair-trade, 40 False advertising, 404 False wants, 524–525 Family changing structure of American, 104–105 consumer buying behavior and, 169–170 Family-planning marketers, 117 Fantasy advertising, 410 Farmed and Dangerous, 112 Fashion, product life-cycle and, 278, 279f Fast Company, 535 Fast-food, health and, 519, 522–523 Federal Cigarette Labeling and Advertising Act (1967), 114t Federal Food, Drug, and Cosmetic Act, 285 Federal Food and Drug Act (1906), 114t Federal Trade Commission Act (1914), 114t, 240 Feedback, social media marketing and, 470 Field sales force, 432–433, 485 Fifty & Fabulous, 101 Fighter brand, 319 Financial intermediaries, 98 Financial publics, 99 Financial Reform Law (2010), 114t Financing, wholesalers and, 384 Fishyback (transportation), 352 Fit factor, brand extensions and, 258 Fixed amount compensation, 436 Fixed costs, 297 Fixed fee, 307 Flash sales, 377 Flow of ownership, 331 Fluctuating demand, 183 FOB (free on board)-origin pricing, 312 Focus group interviewing, 140 Follow-up, selling process, 444 Food deserts, 524 Forbes, 415, 424, 427, 535 Foreign markets, international research and, 152–153 See also International entries Format elements, in advertising, 411 Fortune 100, 481 Fortune 500, 354, 361 Fortune 1000, 190 Fortune magazine, 44 Forums online, marketing and, 466–467 Four Ps of marketing, 40, 81f, 162 Fragrance, in-store experience and, 371, 373 Franchise organization, 334–335 Franchises contractual VMS and, 334–335 distribution channels and, 332–333 organization, retail sales and, 367t, 368 retailer franchise system, manufacturer-sponsored, 334–335 service-firm-sponsored retailer franchise system, 335 wholesaler franchise system, manufacturer-sponsored, 335 Franchisor, 334–335 Fraud Internet, 479 marketing and, 479–480 See also Ethics entries Free goods, trade promotions, 451 Free on board, 312 Free trade zones, 491–492 Freight-absorption pricing, 312 Frequency, advertising and, 412–413 Frequency marketing programs, 45 loyalty cards, 446 See also Loyalty programs Fringe benefits, compensation, 436 Full-line forcing, 347 Full partnerships, 45 661 Full-service retailers, 364 Full-service wholesalers, 384t Functional discount, 309 Functional organization, 87 Future business portfolio, 71 Futurists, 119 G Games, consumer promotions and, 448 Gender, diversity and, 106–108 Gender segmentation, consumer market, 200–201 General Agreement on Tariffs and Trade (GATT), 491 General need description, in business buying process, 188 General public, 99 Generational marketing, 104 Generation X, 102 Generation Y, 103 Generation Z, 103–104 Generic brands, 253–254 Geocosmetics, 487 Geographical markets, 76 Geographical organizations, 511 Geographical pricing, 311–312 Geographic characteristics, global markets and, 500t Geographic location, market segmentation and, 205 Geographic organization, 87 Geographic shifts, in population, 105–106 Geolocation information, 481 Geopolitical conflicts, 495 Global brands, international advertising, 419 Global expansion of major retailers, 382 Netflix, 514 Global firm, 489 Globalization backlash against American, 497 company decision to go global, 498 international research and, 152–153 marketing and, 489–490 rapid, 57–58 See also International entries Global-local balance, international marketing, 487–488 Global marketing, 488–490 choosing a market, 499–500 decision to go global, 498 market potential, indicators, 500t Global marketing environment cultural, 495–498 and economic, 492–493 entering, 500–503 See also International marketplace, entering international trade system, 490–492 See also International trade system political-legal, 493, 495 See also Culture, international marketing Find more at http://www.downloadslide.com 662 Subject Index Global marketing organization, 511 Global marketing program, 503–504 distribution channels, 509–510 price and, 507–509 product adaptation/extension/ invention, 504–505 promotion, 505–506, 507 Global movie market, 498 Global organizations, 511 Global pricing, 508–509 Global value delivery network, 509 Goals, setting company, 70–71 Good-value pricing, 295 Government, pricing and, 304 Government intervention, in resource management, 109–110 Government markets, 100 Government publics, 99 Graphic segmentation, consumer markets, 199 Great Recession advertising expenditures and, 406 economy and, 56 gross domestic product and, 488 layoffs in, 118 materialism, spending and, 525 price-value equation and, 303 retailers and, 376 sales and, 108 shopping malls and, 375 Greening, environmental sustainability and, 529f, 532 Greenlist process, S.C Johnson, 531 Green retailing, 381–382 Green supply chains, 349 Gross-domestic product (GDP), 488, 493 Group interviewing, 140 Groups, customer behavior and, 166–169 Growth, strategies for, 75–76 Growth-share matrix, 73–74 Growth stage, of product life-cycle, 278f, 281 Guides Against Deceptive Pricing (FTC), 321 Guiding philosophy, 77 H Handling objectives, selling process and, 444 Hashtags, 47 Headline, advertising and, 411 Hemlock Grove, 149, 339 High-k, 374 High-low pricing, 295 High-pressure selling, 522 High prices, consumers and, 520–521 Hispanics, as consumer subculture, 164–165 Horizontal conflict, channel, 332 Horizontal marketing systems, 335–336 House of Cards, 149, 339, 498 Huffington Post, 409, 424 Hybrid sales rep, 433 Hydrofluorocarbons (HFCs), 532 Hypertargeting, 213, 214–215 I Idea generation, 267–271 crowdsourcing, 268–271 external idea sources, 268 internal sources for, 267 product concept, 271–272 See also Product concept Idea marketing, 235 Ideas, 34 Idea screening, 271 Identity theft, 479 Illustration, advertising and, 411 Image advertising, 410–411 Image differentiation, 218 Images, service differentiation and, 248 IMC See Integrated marketing communications (IMC) Immersion groups, 140 Impact, of advertising, 412–413 Import quotas, 493 Inbound logistics, 348 Inbound toll-free numbers, marketing and, 477 Incentive size, sales promotion, 451 Income distribution, 108–109, 493 Income segmentation, consumer market, 201 Incredible Hulk, The, 53 Independent off-price retailers, 366 Indirect exporting, 501 Indirect marketing channels, 331 Individual factors, in business buying process, 187 Individual interviewing, 140 Individual marketing, 211 Individual needs, 34 Individual product and service decisions branding, 237–238 labeling, 239–240 packaging, 238–239 product/service attributes, 235–237 product support services, 240–241 Individual products, 235–237 Indoor positioning systems, 380–381 Industrial distributors, 384t Industrial economies, 492 Industrialized nations, 493 Industrializing economies, 492 Industrial products, marketing, 234 Industrial structure, of countries, 492–493 Inelastic demand, 183 Influentials, 166 Infomercials, 477–478 Information, 34, 177–178 See also Data entries Information flow, 331 Information search, buying decision process, 177–178 Information technology automated distribution and, 361 retailing and, 380–381 wholesaling and, 387 Information technology, supply chain logistics and, 348–349 Informative advertising, 404t Innovation crowdsourcing and, 270 idea generation and, 267–271 See also Idea entries new product development and, 266–267 Innovation management system, 276–277 Innovative marketing, 535 Innovators, 180, 181f Inside-out perspective, 38 Inside sales force, 432–433 In-store experience, digitizing, 372–373 Integrated logistics management, 353–355 Integrated marketing mix, develop, 82–84 plan/program, 40–41 Integrated marketing communications (IMC) mix, IMC and promotion tools, 399f need for, 398–400 new marketing communications model, 395–396 promotion mix, shaping, 400–402 See also Promotion Integrated marketing communications (IMC) Integrated social media marketing, 471 Intelligence See Competitive marketing intelligence Intensive distribution, 341 Interactive advertising, 472 Interactive marketing, 245f, 247, 470 Interactive TV (iTV), 478 Intermarket segmentation, 205–206 Intermediaries, type/number of marketing channel, 341–342 Intermediary levels, distribution channels, 331 Internal databases, marketing information and, 130–131 Internal idea sources, 267 Internal marketing, 245 Internal publics, 99 Internal service quality, 245 Internal stimuli, 177 International advertising, 419 International distribution channels, 342–343 International divisions, of companies, 511 International marketing environmentalism, ethics and, 540–541 global-local balance, 487–488 major decisions in, 490f research, 152–153 target marketing, economics and, 494–495 whole-channel concept for, 509f See also Global entries International marketplace, entering, 500–503 direct investment, 502–503 entry strategies, 500f exporting to, 500–501 joint venturing, 501 International marketplace, pricing strategies and, 305–306 International markets, 100 International market segmentation, 205–206 International pricing, 315–316 International product and services marketing, 285–286 International subsidiaries, 511 International trade system, 490–492 regional free trade zones, 491–492 World Trade Organization (WTO), 491 Internet Do Not Track system, 143 dynamic real-time price adjustments, 313–314 e-learning, 435–436 fraud on, 479 marketing communications and, 395 mobile marketing and, 471–475 netnography research and, 138 online behavioral/social tracking/ targeting, 142–143 online marketing research, 141–142 online sales, 290–291 price comparisons using, 303, 314–315 privacy and, 480 sales leads and, 432 social selling and, 438–441 Super Bowl advertising and, 417–418 supply chain distribution and, 352 See also and Online and Social media entries; Digital and social media marketing; Direct and digital marketing Internet-based logistics systems, 348 Internet marketing, issues with, 479–480 Internet search engines, 136 See also Search engines Interpersonal factors, in business buying process, 187 Interpretive consumer research, 174 Interpret research, 145–146 Intranet, 150 Intrapreneurial programs, 267 Introduction stage, of product life-cycle, 278f, 279, 281 Intrusion, 46 Inventory control, 387 See also RFID entries Inventory management, supply chain and, 351 Inventory turnover, 390 Investor relations, PR and, 420 Find more at http://www.downloadslide.com Subject Index J J-14 magazine, 104 Joint ownership, international trade and, 502 Joint venturing, international markets and, 501 contract manufacturing, 501 joint ownership, 502 licensing, 501 management contracting, 502 Judgment sample, 144t Junk mail, 476 Junk phone calls, 477 Just-in-time logistics system, 351 K Kickbacks, 540–541 Kiosk marketing, 478–479 Kraft Food & Family magazine, 147 L Labeling decisions, 239–240 Lagging adopters, 180, 181f Language global marketing and, 505–507 global trade and, 496–497 international marketing research and, 153 localizing brand names, 506–507 subcultures, marketing and, 164–165 Lanham Trademark Act (1946), 114t Late mainstream adopters, 180, 181f Law, marketing decisions and, 534f Leading adopters, 166 Learning, consumer buying behavior and, 176 Legal factors, in market segmentation, 205 Legal-political environment, international trade, 493, 495 Legislation, regulating businesses, 113–115, 114t LEGO MOVIE, The, 223, 409 Less for much less value proposition, 220–223 Lexus and the Olive Tree, The:Understanding Globalization (Friedman), 497 Liability, product, 285 Licensed characters, 255 Licensing, 254–255, 501 Life-cycles, short, retailers and, 376–377 Life stage consumer buying behavior and, 170–171 market segmentation and, 200 Lifestyle advertising, 410 consumer buying behavior and, 171–173 Lifestyle centers, 375 Lillyhammer, 149, 339 Limited-service retailers, 364 Limited-service wholesalers, 384t Limited-time offers, 311 Line extensions, brand development and, 255–256 Line filling, 241 Line stretching, 241 Litigation, product, 285 Lobbying, PR and, 420 Localizing brand names, 506–507 Local marketing, 209–210 Local publics, 99 Locate-compare-select process, 364 Location-based pricing, 309 Location decisions, retailers and, 375–376 Logistics, supply chain management and, 347–355 See also Marketing logistics, supply chain management and Logistics information management, 352–353 Logos colors, 371, 373 PR and, 422 product differentiation and, 218 product labeling and, 239–240 roll over ads and, 464 trade promotion and, 451 Long-run welfare, 39 Los Angeles Times, 536 Lovemarks, branding and, 252 Low-interest financing, 311 Loyalty brand equity and, 251 cards, 446 customer, 49, 245 salesperson-owned, 430 status, consumer market segmentation and, 203–204 See also Frequency marketing programs M Macroenvironment, 96 cultural environment, 116–119 demographic, 100–108 See also Demographic environment, of companies economic environment, 108–109 major forces in, 100f natural environment, 109–110 political/social environment, 113–116 technological environment, 110, 112–113 Madison & Vine, 408 Magazines, advertising, 414t Magnuson-Moss Warranty Act (1975), 114t Mail-order wholesalers, 384t Mail surveys, 139–141 Maintenance, 311 Make-and-sell philosophy, 38, 328 Management contracting, joint venturing and, 502 Managing marketing See Marketing management Manufacturers’ and retailers’ branches and offices, 385t Manufacturer-sponsored retailer franchise system, 334–335 Manufacturer-sponsored wholesaler franchise system, 335 Manufacturers’ representatives, 385t Manufactures’ agents, 385t Marco Polo, 149, 339 Market description, 86f Market development, 75f–76 Market growth rate, 73–74 Marketing consumer products, 232–233f defined, 33 expanded model of process of, 59f four Ps of, 41 industrial products, 234 organizations, persons, places, ideas, 234–235 societal criticisms of, 520–527 what is?, 32–33 Marketing 3.0, 39 Marketing, impact on society, 524–526 cultural pollution, 526 false wants, materialism and, 524–525 social goods, too few, 525–526 Marketing analysis, 84–85 Marketing analytics, 146–150 Marketing at Work big data/marketing analytics (Netflix), 148–149 brand extensions, 258–259 B-to-B sales, 439–440 buy-one-give-one concept, 536–537 channel partnering, 345–346 Chipotle, environmental sustainability, 111–112 customer care, 246–247 customers, serve/stalk, 214–215 digitizing in-store experience, 372–373 DuckDuckGo, 82–83 events, consumer promotions and, 449–450 international marketing, 494–495 lifestyle, Taco Bell, 172–173 mobile marketing, smartphones and, 473–474 pricing, value and, 296–297 product life-cycle, 280–281 real-time marketing, 54–55 social media, corporate message backlash, 120–121 social media, engaging customers, 132–133 word-of-mouth, brand conversations, 168–169 Marketing budget, 85 Marketing channels, 328 channel behavior, 332–333 channel design, 339–343 See also Channel design channel management, 343–346 See also Channel management channel organization, changing, 336–337 663 consumer and business, 331f distributors reduce number of channel transactions, 330f horizontal marketing systems, 335–336 key functions, 330 levels, number of channel, 331 multichannel distribution systems, 336 public policy and, 347 value added, by members, 329–331 vertical marketing systems and, 333–335 Marketing communications model, 395–396 Marketing concept, 38–39, 518–519 Marketing control, 88 Marketing dashboards, 89 Marketing decision areas, law and, 534f Marketing department organization, 87–88 Marketing environment, 96, 119–120 Marketing impact, on business, 526–527 Marketing implementation, 85–87 Marketing information assess need for, 130 big data and, 129 competitive marketing intelligence, 131, 133–134 customer insights and, 128 distribute/use, 150 internal databases, 130–131 See also Data Marketing information, analyze/use big data/marketing analytics, 146–150 customer relationship management (CRM), 146–147 Marketing information system (MIS), 129, 130f Marketing intermediaries, 98, 331 Marketing logistics, supply chain management and, 347–355 goals of logistics systems, 349–350 integrated logistics management, 353–355 See also Integrated logistics management inventory management, 351 logistics, supply chain management and information management, 352–353 nature/importance of, 347–349 partnerships, build logistics, 354 sustainable supply chains, 349 third-party logistics (3PL), 354–355 transportation and, 351–352 warehousing, 350–351 Marketing management, 37 analysis, planning, implementation, control, 84f market department organization, 87–88 Find more at http://www.downloadslide.com 664 Subject Index Marketing management (Conitnued) marketing analysis, 84–85 marketing concept, 38–39 marketing control, 88 marketing implementation, 85–87 planning, marketing, 85 product concept, 38 production concept, 38 selling concept, 38 societal marketing concept, 39 Marketing mix, 40 develop integrated, 82–84 four Ps of, 81f integrated, 79 marketing strategies and, 79f modify, 282 pricing decisions and, 300–301 products, services, experiences, 230–231 wholesaler, 386–387 Marketing myopia, 35 Marketing niche, 82–83 Marketing plan, contents of, 86f Marketing process, 33 Marketing regulation, public actions, 533–534 Marketing research international, 152–153 interpret/report findings, 145–146 misuse of data, 155 primary data collection, 137–145 See also Primary data collection problem definition/research objectives, 135 process of, 134f public policy, ethics and, 153–155 research plan, develop, 135–136 research plan, implement, 145 secondary data collection, 136–137 in small business and nonprofits, 151–152 Marketing return on investment (marketing ROI), 88–89f Marketing services agencies, 98 Marketing stimuli, 162, 163 Marketing strategies cultural impact of, 496–498 culture, global trade and, 495–496 defined, 79, 85 development, new product, 272–273 differentiation/positioning, 80–81 marketing communications and, 395 marketing mix and, 79f market segmentation, 79–80 market targeting, 80 pricing decisions and, 300–301 Marketing strategy development, 272–273 Marketing strategy statement, 273 Marketing websites, online marketing and, 462–463 Market management organization, 87 Market offerings, 34–35, 230–231 Market-oriented business, productoriented business v., 69f Market penetration, 75–76, 75f Market-penetration pricing, 305–306 Market pioneer, 281 Markets, 36 Market sales force structure, 431 Market segment, 80, 207 Market segmentation, 37, 79–80 business, 204–205 effective, requirements for, 206 international, 205–206 segmentation bases, using multiple, 204 Market segmentation, consumer, 198 behavioral, 202–204 demographic, 200–201 graphic, 199 psychographic, 201–202 Market-skimming pricing, 305 Market structure, demand and, 183 Market targeting, 80, 198 concentrated, 208–209 customers: serve or stalk?, 214–215 differentiated, 208 market segments, evaluating, 207 micromarketing, 209–211 products, services, experiences, 230–231 selecting targets, 207–213 socially responsible, 212–213 strategies, 207f, 211–212 undifferentiated, 207–208 See also Target market Market variability, 212 Markup pricing, 298–299 Mashable, 409 Maslow’s Hierarchy of Needs, 174, 175f Mass customization, 211 Mass marketing, 207–208 Mass-media marketing, 395 Mass mingling, 117 Mass-promotion, public relations and, 420–422 Materialism, 119, 524–525 Materials and parts, 234 Matrix approach, to portfolio analysis, 74–75 Maturity stage, of product lifecycle, 278f, 282–283 Maxim magazine, 415 McDomination, 497 Meat space, tracking in, 484 Mechanical instruments, for research, 144–145 Media, select advertising, 412–413 Media availability, international advertising and, 507 Media impact of advertising, 413 Media multitaskers, 415 Media planner, 415 Media publics, 99 Media timing, 415–416 Media types, choosing, 413, 414t Media vehicles, 415 Megaretailers, 377 Membership group, 166 Membership warehouses, 367 Merchant wholesalers, 384t Message strategy/execution, advertising and, 409–411 Microenvironment of company, 96–97f competitors, 98 customers, 100 marketing intermediaries, 98 public, 99–100 suppliers, 97 Micromarketing, 209–211 individual, 211 local marketing, 209–210 Millennials, 103, 468 Minorities, diversity in populations and, 106–108 Mission statement, strategic planning and, 69–70 Mobile advertising, 414t, 415 Mobile apps consumer promotions and, 447 flash sales, 377 marketing and, 454 mobile marketing and, 471–475 online retailing and, 377–380 shopping and, 363 social selling and, 441 Mobile marketing, 53–56, 471–475 Mobile payments, 324 Mobile sales, social selling, 438–441 Modern Family, 104, 107, 409, 415, 421 Modified rebuy, 185 Monetization, social media, marketing and, 468–469 Monopolistic competition, 302 Mood advertising, 410–66 Morally difficult issues, in marketing, 539t More for less value proposition, 221 More-for-more positioning, 219–220 More for the same value proposition, 220 Morning Joe, 408 Motivating salespeople, 437–438 Motivation research, 174 Motive, consumer buying behavior and, 174 Movies, global market for, 498 Multibrands, 257 Multichannel distribution systems, 336 Multimodal transportation, 352 Multinational companies, 496 Multitasking, media, 415 Music advertising and, 411 in-store experience, 371 My Little Pony, 448 N National brands, 253–254 National Enquirer, 415 National Environmental Policy Act (1969), 114t National Geographic, 469 National Traffic and Safety Act (1958), 114t Native advertising, 409, 424 Natural environment, 109–110 Nature, changing attitudes about, 118–119 Need recognition, 177 Needs, 34, 174, 175f Neighborhood shopping center, 375 Netnography research, 138 Neuromarketing, 145 New brands, 257 New clean technology, 532 New entrants, to market, 207 New marketing, 46 New product development, 266–267 business analysis, 273 commercialization, 275 customer-centered, 275–276 idea generation, 267–271 See also Idea entries marketing strategy development, 272–273 product development, 273–274 systematic, 276–277 team-based, 276 test marketing, 274–275 New product pricing strategies market-penetration, 305–306 market-skimming pricing, 305 New products, buying decision, 179–181 News, PR and, 421 Newspapers, advertising, 414t New task, 185 New York Times, The, 409, 461, 517 Niche marketing, 208–209 DuckDuckGo, 82–83 social networks and, 469 No-name brands, 253–254 Nonprofits, marketing research in, 151–152 Nontariff trade barriers, 490 North American Free Trade Agreement (NAFTA), 492 Not-for-profit marketing, 56–57 Nothing but the Truth So Help Me God: 51 Women Reveal the Power of Positive Female Connection (Bronstein), 357 Nutrition Labeling and Education Act (1990), 114t, 240 O Objective-and-task method, advertising, 406 Objectives pricing decisions and, 300–301 setting company, 70–71 Find more at http://www.downloadslide.com Subject Index Observational research, 137–138 Occasion segmentation, consumer market, 202 Occupation, consumer buying behavior and, 170 Offer, service differentiation and, 247–248 Office, The, 428 Offices, manufacturers’/ retailers’, 385t Off-invoice trade promotions, 450 Off-list trade promotions, 450 Off-price retailers, 366 Old marketing, 46 Oligopolistic competition, 302 Omni-channel buyers, 362 Omni-channel retailing, 363, 378–380, 462 One-stop shopping, 375 Online advertising, 463–464 email marketing, 464–465 online videos, 465–466 Online advertising vehicles, 415 Online and digital security, 479 Online behavioral research, 142–143 Online display ads, 463–464 Online dynamic price adjustments, 313–314 Online focus groups, 142 Online marketing, 462–467 advertising, 463–464 mobile marketing, 53–56 research, 141–142 social media, 52–53, 461 websites/branded community, 462–463 See also Digital and social media marketing Online price tracking, 324 Online promotions, 374–375 Online purchasing, business buyers and, 189 Online retailing, 377–380 Online sales flash sales, 377 price wars, 290–291 social selling and, 438–441 Walmart, 362 Online sellers, 432 Online shopping, showrooming, 379–380 Online social networks, consumer buying behavior, influences, 167–169 Online videos, Digital and social media marketing and, 465–466 Open-ended questions, 144 Operating characteristics, 204 Operating control, 88 Opinion leaders, 166 Opt-in calling systems, 477 Optional-product pricing, 307 Orange Is the New Black, 149, 339 Order getter, 429 Order-routine specification, in business buyer process, 189 Order taker, 429 Organic farming, 544 Organizational climate, 437f Organizational factors in business buying, 187 in pricing decisions, 301 Organization marketing, 234 Organizations, 34, 118 Others, view of, 117–118 Ouija (film), 468 Outbound logistics, 348 Outbound telephone marketing, 477 Outdoor advertising, 414t Out magazine, 107 Outside-in perspective, 38 Outside sales force, 432–433 Outsourced logistics, 354–355 Out Traveler, 107 Overhead, 297 Overselling private goods, v public goods, 525–526 Owned media, 397, 398, 414 P Packaging deceptive, 521 decisions, 238–239, 532 green, 382 Paid media, 397, 398, 414 Parents magazine, 415 Partnership relationship management (PRM), 47, 77, 344 Partnerships, building logistics, 354 Payment data, 348 Payment flow, 331 Peer-to-peer car sharing, 473 People differentiation, 218 People magazine, 469 Perceived obsolescence, 523 Perceived performance, 179 Percent-of-sales method, advertising, 405 Perception, consumer buying behavior and, 174–175 Perceptual positioning maps, 216–217 Performance quality, 236 Performance review, in business buyer process, 189 Perks of Being a Wallflower, The, 107 Permission-based marketing direct, 476 email, 465 Personal characteristics, 204 Personal factors, consumer buying behavior and, 170–174 age/life stage, 170–171 economic situation, 171 lifestyle, 171–173 occupation, 170 personality/self-concept, 173–174 Personal interviews, research and, 139–141 Personality, consumer buying behavior and, 173–174 Personality symbol, advertising and, 411 Personality variables, 202 Personal selling, 401 company to customer and, 429–430 coordinating marketing/sales and, 430 nature of, 428–429 promotion mix and, 394 sales force, role of in, 429–430 Personal selling process approach, 443 closing, 444 customer relationship management, 444–445 follow-up, 444 handling objectives, 444 preapproach, 442–443 presentation/demonstration, 443 prospecting/qualifying, 442 Personal sources, of information, 177 Person marketing, 235 Persons, 34 Persuasive advertising, 404t PET plastic bottles, 532 Phishing, 479 Physical distribution, 347–349 Physical distribution firms, 98 Physical flow, of product, 331 Physical needs, 34 Physician Payment Sunshine Act, 454 Physiological needs, 174, 175f Piggyback (transportation), 351, 352 Pipelines, supply chain distribution and, 352 Place(s), 34, 41 Place marketing, 235 Planned obsolescence, 523 Planning, marketing and, 77, 85, 86f PlantBottle packaging, 532 Pleasing products, 537–538 POES channels, 397 Point-of-purchase (POP) promotions, 448 Point-of-sale scanners, 348 Polar vortex, 109 Political environment, legislation regulating business, 113–115, 114t See also Public policy entries Political factors, in market segmentation, 205 Political-legal environment, of international trade, 493, 495, 500t Pollution, 109 Pollution prevention, 529f, 531, 533 Polyvinylidene chloride (PVDC), 540 Pop culture, 497 Population changing age structure of, 101–104 diversity in, 106–108 education and, 106 geographic shifts in, 105–106 See also Demographics entries 665 Portals, digital and social media marketing, 461 Portfolio analysis, 71–75 Boston Consulting Group Approach to, 73–74 matrix approach, issues with, 74–75 Positioning, 198 communicate/deliver chosen, 223–224 maps, 216–217 retailer, 369–370 strategy for, choosing, 217–223 wholesaler, 385–386 Positioning, product, 80–81 Positioning statement, 221, 223 Positive incentives, 438 Postpurchase behavior v expectations, 179 Power centers, 375 PR See Public relations (PR) Preapproach, selling process, 442–443 Predatory pricing, 321 Premiums, consumer promotions and, 448 Presentation, selling process, 443 Press agency, 420 Press relations, 420 Price, 41 defining, 292–293 high, impact on consumer, 520–521 international target marketing, economics and, 494–495 relative, retailers and, 365–367 setting, considerations in, 293f setting international, 508–509 wholesalers and, 386 Price adjustment strategies discount allowance pricing, 308–309 dynamic and online pricing, 312–315 geographical pricing, 311–312 international pricing, 315–316 promotional pricing, 310–311 psychological pricing, 310 segmented pricing, 309 strategies, descriptions, 308t Price bundling, 308 Price changes buyer reaction to, 317 competitor reaction to, 318 initiating price cuts, 317 responding to, 318–319 Price comparison, using Internet, 314–315 Price cuts, initiating, 317 Price decisions, internal/external factors in marketing strategy, objectives, mix, 300–301 organizational considerations, 301 Price-demand relationship, 302–303 Price discrimination, 321 Price elasticity, 303 Price escalation, 316, 508 Find more at http://www.downloadslide.com 666 Subject Index Price fixing, 320 Price gouger, 317 Price increases, initiating, 317 Price-off trade promotions, 450 Price packs, consumer promotions and, 448 Price promotions, 374 Price reduction, 325 Price skimming, 305 Price-value equation, economy and, 303–304 Price war, 290–291, 325 Pricing across channel levels, public policy and, 321 within channel levels, public policy and, 320 competition-based, 299–300 cost-based, 297–299 customer value-based, 293–294 deceptive, 321, 521 dynamic, 312, 314–315, 327–328 economy and, 303–304 external factors, 304–305 good-value, 295 high-low, 295 high quality/low price, 296–297 market, demand and, 302–303 predatory, 321 product mix, 306–308 See also Product mix pricing strategies public policy and, 319–321 retailer decisions, 373–374 strategies for See New product pricing strategies surge, 327–328 value-added, 295, 297 value-based v cost-based, 294f Primary data, 136 Primary data collection, 137–145 experimental research, 139 mail survey, telephone/personal interviewing, 139–141 observational research, 137–138 online behavioral/social tracking/ targeting, 142–143 online marketing research, 141–142 planning, 137f research, 144–145 sampling plan, 143–144t survey research, 138–139 Principles before profits, 537 Privacy, consumer, marketing research, ethics and, 153–155 Privacy online children and, 479–480, 543 Children’s Online Privacy Protection Act (2000), 114t consumer, 480 DuckDuckGO, 83 of Generation Z, 104 legislative action and, 480–481 Private brands, 253–254 Private goods v public goods, 525–526 Private labels, 253–254 Proactive marketing stance, 119–120 Probability Sample, 144t Problem definition, market research and, 135 Problem recognition, in business buying process, 187–188 Producer’s cooperatives, 384t Product(s), 34, 41 attributions of individual, 235–237 characteristics, adoption rate and, 181 classification, 232–233 consumer, marketing, 232–233 defining, 230 See also Market offering five global product and communication strategies, 504f industrial, 234 levels of services and, 231–232 marketing consumer, 233f post-purchase behavior, consumers, 179 societal marketing and, 537–538 three levels of, 232f Product adaptation, 504–505 Product and service attributes, 235–237 product features, 236 product quality, 236 product style and design, 237 Product assortment, retailer, 370–371, 373 Product attributes, 251 Product bundle pricing, 308 Product class, 278 Product concept, 38 concept testing, 272 development, 271–272 Product decisions, social responsibility and, 284–285 Product development, 75f, 76 new, 273–274, 277, 278f testing, 274–275 Product differentiation, 81, 217 choosing/promoting, 218–219 value proposition and, 219–221 Product features, 236 Product form, 278 Product form pricing, 309 Product invention, 505 Production concept, 38 Productivity, managing service, 249 Product liability, 285 Product licensing, 254–255 Product life-cycle (PLC) strategies, 277–284 decline stage, 283–284 fads, 279 fashion, 278, 279f growth stage, 281 introduction stage, 279, 281 Mattel, 280–281 sales/profits over product’s life, 278f summary of characteristics, objectives, strategies, 284f sustainability and, 532 Product line, retailers and, 364–365 Product line decisions, 241–242 Product line filling, 241 Product line length, 241 Product line pricing, 306–307 Product line stretching, 241 Product/market expansion grid, 75f–76 Product marketing, international, 285–286 Product mix decisions, 242–243 Product mix pricing strategies, 306–308 by-product pricing, 307–308 captive-product pricing, 307 optional-product pricing, 307 product bundle pricing, 308 product line pricing, 306–307 Product-oriented business, marketoriented business v., 69f Product performance, 42 Product portfolio, 242–243 Product position, 80–81, 216–217 See also Positioning entries Product publicity, 420 Product quality, 236 Product review, 86f Product safety, 522–523 Product sales force structure, 431 Product specification, in business buying process, 188 Product stewards, 285 Product stewardship, 529f, 532 Product style and design, 237 Product support services, 240–241 Product testing, 274–275 Product value analysis, 188 Promotion, 41 deceptive, 521–522 global marketplace and, 505–507 high cost of, 520 public relations and, 420–421 wholesalers and, 386 Promotional allowances, 309 Promotional pricing, 310–311 Promotional products, 448 Promotion clutter, 446 Promotion decisions, retailers and, 374–375 Promotion flow, 331 Promotion mix, 394–395 Promotion mix, IMC and, 400–402 advertising, 400–401 direct and digital marketing, 401 personal selling, 401 public relations, 401 push v pull promotion strategy, 402f sales promotions, 401 strategies, 401–402 Proposal solicitation, in business buyer process, 189 Pro Publica, 454 Prospecting, selling process, 442 Psychographic segmentation, 201–202 Psychological factors, in consumer beliefs/attitudes, 176 buying behavior, 174–176 learning, 176 motivation, 174 perception, 174–175 Psychological pricing, 310 Public actions, marketing regulation and, 533–534 Public actors, in company microenvironment, 99–100 Public affairs, PR and, 420 Public goods v private goods, 525–526 Public policy direct and digital marketing and, 479–481 distribution decisions and, 347 ethics, marketing research and, 153–155 pricing and, 319–321 Public relations (PR), 401, 420–422, 465 promotion mix and, 394–395 role/impact of, 421 tools, 421–422 Public service activities, PR and, 422 Public sources, of information, 177 Puffery, 522 Pull strategy, promotion mix, 402 Purchase decision, 178–179 Purchasing agents, 385t Purchasing approaches, 204 Purchasing offices, 385t Pure competition, 302 Pure monopoly, 302 Pure services, 230–231 Pure tangible goods, 230–231 Purpose-driven marketing, 39 Push money, trade promotions, 451 Push strategy, promotion mix, 401, 402f Q QSCV (quality, service, cleanliness and value), 78 Qualifying leads, selling process, 442 Qualitative research, 142 Qualitative value, of advertising, 413 Quality, managing service, 248–249 Quality level, product, 236 Quantitative research, 141 Quantity discount, 309 Question marks, in portfolio analysis, 74 Questionnaires, 144 Questions, research and, 144 Quotas, 493 Quota sample, 144t R Race consumer subcultures and, 164–166 diversity in populations, 106–108 See also Demographics entries Find more at http://www.downloadslide.com Subject Index Rack jobbers, 384t Radio, advertising, 414t Radio-frequency identification (RFID) transmitters, 110, 112–113 Railroads, supply chain logistics and, 351 Raw material exporting economies, 492 Raw materials, 109, 234 Reach, advertising and, 412–413 Real Simple magazine, 415 Real-time marketing, 53–55, 460, 470 Real-time price adjustments, 313–314 Rebates, consumer promotions and, 447–448 Recruiting salespeople, 434–435 Recycling, 532, 533 Redlining, 524 Reference groups, 166 Reference prices, 310 Regional free trade zones, 491–492 Regional shopping center, 375 Regional shopping mall, 375 Regulating business, legislation, 113–115, 114t Regulating marketing, public actions, 533–534 Reinforcement, 176 Relationship building, 429, 444–445 Relationships, 35–36 Relative advantage, adoption rate and, 181 Relative market share, 73–74 Religion, changing views of, 119 Reminder advertising, 404t, 405 Report research, 145–146 Resale price maintenance, 321 Research and development, 266–267, 489 Research approaches contact methods, 139–141 experimental, 139 observational, 137–138 online marketing research, 141–142 survey, 138–139 Research instruments mechanical, 144–145 questionnaires, 144 Research objectives, market research and, 135 Research plan develop, 135–136 implement, 145 Reseller markets, 100 Resellers, 98, 304 Resources, natural environment and, 109–110 Retail convergence, 377 Retailer, world’s largest, 361–362 Retailer cooperative, 367t, 368 Retailers amount of service, 363–364 discount stores, 365–366 location decisions, 375–376 major store types, 363t marketing strategies, 369f omni-channel, 378–380 organizations, types of retail, 367t price decisions, 373–374 product assortment/services decisions, 370–371, 373 product lines and, 364–365 promotion decisions, 374–375 segmentation, targeting, differentiation, positioning, 369–370 trends/developments, 376–382 See also Retailing trends Retail forms, new, 376–377 Retailing online, 377–380 shopper marketing, 362–363 Retailing trends, 376–382 consumer spending, tight, 376 direct, online, mobile, social media, growth of, 377–380 global expansion of major retailers, 382 green retailing, 381–382 megaretailers, 377 new retail forms, 376–377 retail technology, growth of, 380–381 Retail price maintenance, 321 Retail technology, 380–381 Retention, customer, 49 Return on advertising investment, 416–418 Return on investment (ROI), 88–89f Return-on-quality, 236 Reverse auctions, 189 Reverse logistics, 348 RFID inventory tracking, 380 RFID tags, 348, 351 Right customer, 51 Right relationship, 51 Risk bearing, wholesalers and, 384 Robinson-Patman Act (1936), 114t, 319, 321 Roles family, shifting, 169–170 status, buying behavior and, 170 Ruggedness, personality trait, 173 S Safety, product, 522–523 Safety needs, 174, 175f Safety standards, 514 Sales and profit effects, of advertising, 416 Sales assistants, 432 Sales branches and offices, 385t Sales contests, 438, 451 Sales force, 427–430 compensating salespeople, 436 evaluating salespeople, performance and, 438 motivating salespeople, 437–438 outside/inside, 432–433 salespeople, recruiting, 434–435 size, 432 steps in sales force management, 431f structure, 431 supervising salespeople, 437 team selling, 433–434 training salespeople, 435–436 Sales force automation systems, 437 Sales force promotions, 445–446 Sales meetings, 438 Salespeople compensating, 436 high-pressure selling and, 522 motivating, 437–438 recruiting, 434–435 salesperson, defined, 429 supervising, 437 time management of, 437f training, 435–436 Salesperson-owned loyalty, 430 Sales promotion, 394, 401 business promotions, 451 consumer promotions, 447–448, 450 objectives, 446–447 program development, 451–452 rapid growth of, 445–446 trade promotions, 450–451 Sales quotas, 438 Sales reports, 438 Salutary products, 537–538 Same for less value proposition, 220 Samples, consumer promotions, 447 Sampling plan, 143–144t Satellite tracking, 348 Scarecrow, The, 112 Scientific evidence, advertising and, 411 Search engines, 461, 527 data collection and, 136 DuckDuckGO, 82–83 Search-related advertising, 464 Seasonal discount, 309 Secondary beliefs/values, 116–119 Secondary data collection, 136–137 Security, online, 479 Segmentation retailer, 369–370 wholesaler, 385–386 Segmented marketing, 208 Segmented pricing, 309 Selective attention, 175 Selective distortion, 175 Selective distribution, 341–342 Selective retention, 175 Self, view of, 117 Self-actualization needs, 174, 175f Self-concept, consumer buying behavior and, 173–174 Self-image, 173–174 Self-publishing, 357 Self-service retailers, 364 Sellers direct and digital marketing and, 459–460 wholesalers and, 383–384 Selling, high pressure, 522 Selling agents, 385t 667 Selling and Marketing Concepts contrasted, 39f Selling concept, 38 SellingPower magazine, 439 Sense-and-respond philosophy, 38, 328 Sense-of-mission marketing, 517, 535–537 Sequential product development, 276 Service firms, marketing strategies for, 244–245 Service-firm-sponsored retailer franchise system, 335 Service inseparability, 243f, 244 Service intangibility, 243–244 Service perishability, 243f, 244 Service productivity, managing, 249 Service products, 83 Service profit chain five links of, 245 managing service differentiation, 247–248 productivity, managing, 249 quality, managing service, 248–249 Service quality, 243–244, 248–249 Service recovery, 248 Service retailers, 365 Services, 34 classification, 232–233 levels of, product and, 231–232 market offering and, 230–231 poor, to disadvantaged consumers, 523–524 product support, 240–241 public, 525–526 Services differentiation, 217 Services marketing four characteristics of, 243f international, 285–286 nature/characteristics of, 243–244 three types of, 245f Services mix, retailer, 370–371, 373 Service variability, 243f, 244 Sesame Street, 53, 200, 255 Sexual orientation, diversity and, 106–108 Shared digital content, PR and, 421 Shared media, 397, 398, 414 Shared projects, 354 Shared value, 39 Share of customer, 49–50 Share Our Strength’s No Kid Hungry program, 116 Sherman Antitrust Act (1890), 114t, 319 Shopper marketing, 362–363 Shopping center, 375 Shopping movement, 525 Shopping products, 233 Short-run wants, 39 Showrooming digital devices and, 379–380 online retailing and, 378 pricing and, 315 Simple random sample, 144t Simulated test markets, 274–275 Find more at http://www.downloadslide.com 668 Subject Index Sincerity, personality trait, 173 Site-to-store, 291 Situational factors, 204 60 Minutes, 424 60 Minutes Overtime, 424 Slice of life, advertising, 410 Small-box discounters, 365–366 Small business, marketing research in, 151–152 Smart kiosks, 478 Smartphones apps, in-store experience, 372–373 consumer promotions, coupons and, 447 media multitasking and, 415 mobile marketing and, 471–475 omni-channel retailing and, 379–380 online retailing and, 377–380 product line filling and, 241–242 promotions and, 374 shop-Beacon app, 380–381 shopping research and, 362–363 showrooming and, 315 target marketing and, 214–215 Uber app, 327–328 See also Mobile entries Smart shelves, 351 Smart tag, 351 Smells, in store experience, 371 Social class, as consumer subculture, 166 Social concerns, pricing and, 305 Social environment cause-related marketing, 115–116 socially responsible behavior, 115 Social factors, of consumer behavior, 166–170 family, 169–170 groups/social networks, 166–169 role/status, 170 Social goods, marketing, impact on society, 525–526 Social ideas, 235 Socially responsible behavior, 115 Social marketing, 235 Social media advertising, 414t backlash to corporate messages, 120–121 business-to-business marketing and, 190–191 consumer buying behavior, influences, 167–169 consumer-generated advertising and, 412 consumer-generated marketing and, 46–47 data mining, ethics and, 153–155 engaging customers in, 132–133 event marketing and, 449–450 hypertargeting and, 214–215 marketing, 52–53 marketing communications and, 395 monetization, marketing and, 468–469 online behavior/social tracking/ targeting and, 142–143 online marketing research and, 141–142 online retailing and, 377–380 PR and, 421 PR channels, 422 privacy and, 479–480, 543 sales leads and, 432 social selling and, 438–441 Social media marketing advantages/challenges, 470–471 integrated, 471 monetization, 468–469 using, 467, 469 See also Digital and social media marketing Social mission, marketing and, 535–537 Social needs, 34, 174, 175f Social networks, customer behavior and, 166–169 Social responsibility product development and, 284–285 sustainable marketing and, 58–59 Social selling, 429, 438–441 Social sharing, social media marketing and, 470 Social targeting, 143 Social tracking research, 142–143 Social welfare, 519 Societal criticisms, of marketing, 520–527 See also Marketing, societal criticisms of Societal marketing concept, 39, 40f, 519, 537–538 Society attitudes toward, 118 marketing impact on, 524–526 See also Marketing, impact on society protection of, legislation/regulation, 113–115, 114t Sociocultural factors, in international markets, 500t Software channel member management and, 344 retail technology, 380–381 supply chain management and, 353 virtual meeting, 433 SoLoMo (social+local+mobile) marketing, 210 Solutions selling, 185, 428 Sophistication, personality trait, 173 Spam, email and, 465 Special-event pricing, 310–311 Special events, PR and, 421 Specialty advertising items, trade promotion and, 451 Specialty products, 233 Specialty stores, 364 Spending, conspicuous, 525 Spend-now-pay later, 522 Spirituality, changing vies of, 119 Standardization, in advertising, 419, 505–507 Standardized global marketing, 503 Star magazine, 415 Stars, in business portfolios, 73 Star Trek, 53 Star Wars, 255, 281 Status, consumer buying behavior and, 170 STEM education, 424 Stimulus object, 176 Stimulus-response model, of buyer behavior, 162, 163f Stockturn rate, 599 Storage warehouse, 350 Store brands, 253–254 Storytelling, sales and, 428 Straight product extension, 504 Straight rebuy, 184–185 Strangers (customer group), 51f Strategic business units (SBUs), 71 Strategic control, 88 Strategic planning, 68 business portfolio, designing, 71 growth/downsizing, strategies for, 75–76 marketing and, 77 mission statement, 69–70 objectives/goals, setting company, 70–71 portfolio analysis, 71–75 See also Portfolio analysis steps in, 68f sustainable marketing and, 519 Stratified random sample, 144t Strip mall, 375 Style, product life-cycle and, 279f Subcultures, consumer behavior and, 164–166 African Americans, 164 Asian Americans, 165 Hispanics, 164–165 Subliminal advertising, 175 Subsistence economies, 492 Substitute products, 207 Sunday Night Football, 407 Super Bowl advertising, 417–418 Supercenters, 365 Supermarkets, 364–365 Superstores, 365 Supplier development, 184 Suppliers business buying-decision process and, 188–189 in company microenvironment, 97 as idea source, 268 power of, 207 Supplies and services, 234 Supply chain, 47 international distribution, 342–343 management, marketing logistics and, 347–355 See also Marketing logistics, supply chain management and value delivery network and, 328–329 Supply chain management (SCM), 47, 348 software, 344 Survey research, 138–139 Sustainability, cost of, 544 Sustainability vision, 529f, 532–533 Sustainable company, 541 Sustainable Living Plan (Unilever, 530–531 Sustainable marketing, 39, 58–59, 518–520 concept, 519f consumer-oriented marketing, 534 consumers and consumerism, 527–529 customer value marketing, 534–535 environmentalism, 529, 531–533 ethics and, 538–541 innovative marketing and, 535 principles of, 534–537 public action, to regulate marketing, 533–534 sense-of-mission marketing, 535–537 societal marketing, 537–538 sustainable company, 541 Sustainable Product Index, 382 Sustainable supply chains, 349 Sustainable value/environmental sustainability, 529f Sweepstakes, consumer promotions and, 448 SWOT (strengths, weaknesses, opportunities) analysis, 84–85f Systematic new product development, 276–277 System selling, 185 T Targeted online ads, 481 Targeting retailer, 369–370 wholesaler, 385–386 Targeting research, 142–143 Target market, 207 See also Market targeting Target marketing, 37, 207–213 economics and, 494–495 in marketing plan, 86f See also Market targeting Target return pricing, 298 Tariff, 490 Taxes on imports, 490 Team-based new product development, 276 Team selling, 433–434 Teamwork, 353 Technical expertise, advertising and, 411 Technical sales-support, 432 Technological environment, 110, 112–113 Technology, digital See Digital entries planned obsolescence and, 523 retail, 380–381 Find more at http://www.downloadslide.com Subject Index Telecommute, 105–106 Telemarketers, 432 Telemarketing, 477, 485 Telephone, telemarketing and, 477 Telephone Consumer Protection Act (1991), 114t Telephone interviews, research and, 139–141 Television advertising, 400–401, 407, 414t Television marketing, directresponse, 477–478 Territorial agreements, 347 Territorial sales force structure, 431 Testimonials, advertising and, 411 Test marketing, 274–275 Third-party logistics (3PL), 354–355 Time-and-duty analysts, 437 Time-based pricing, 309 Time magazine, 415 Timing, new product introduction and, 275 Tone, advertising and, 411 Total costs, 298 Total market strategy, 165 Total quality management (TQM), 236 Touch point, 146 Toy Story, 255 Tracking, in meat space, 484 Tracking online, 143, 481 Trade associations, PR and, 420 Trade barriers, 490, 492 Trade discount, 309 Trade-in allowance, 309 Trade promotions, 445–446, 450–451 Trade shows, business promotions and, 451 Trade system, 490 Trading exchanges, 189 Training, salespeople, 435–436 Trainship (transportation), 352 Transaction oriented selling process, 444 Transportation channels supply chain logistics and, 351–352 urban, reshaping, 327–328 wholesalers and, 384 Trucks, supply chain logistics and, 351 Truck wholesalers (truck jobbers), 384t True friends (customer group), 51f Twist magazine, 104 Two-part pricing, 307 Tying agreements, 347 U Undifferentiated marketing, 207–208 Unfair competitive marketing, 526–527 Unfair marketing, 479–480 Uniform-delivery pricing, 312 Unique selling proposition (USP), 218–219 Unsought products, 233 Uruguay Round, 491 Usage rate, 203 USA Today, 47, 411, 418 User status, 203 V Value-added pricing, 295, 297 Value-added resellers, 341 Value Added Tax (VAT), 324 Value-added wholesaling, 387 Value-based pricing, 293, 294f Value chain, 77 Value delivery network, 77, 78, 328–329 Value differences, 217–218 Value for the money, 304 Value marketing, 108 Value proposition, 37, 215, 219–221 less for much less, 220–221 more for less, 221 more for more, 219–220 more for the same, 220 possible propositions, 220f same for less, 220 Value-retail centers, 366 Values, core/secondary, 116–117 Value selling, 444 Variable amount compensation, 436 Variable costs, 298 Variable usage rate, 307 Vendor Flex program (Amazon/ P&G), 344–346 Vendor-managed inventory (VMI), 189, 353 Vertical conflict, channel, 332 Vertical marketing systems (VMS), 333–335 administered VMS, 335 contractual, 334–335 conventional distribution channel v., 333f corporate VMS, 334 Video convergence, 399 Video marketing, online, 465–466 Videos, made-for-the-Web, 395 Viral marketing, 465–466 Virtual instructor training (VILT), 435 Virtual meeting software, 433 Vogue magazine, 415 Voluntary chain retailer, 367t, 368 W Wall Street Journal, The, 409, 415, 484 Wants, 34, 524–525 Warehouse clubs, 366, 367 Warehousing supply chain logistics and, 350–351 wholesalers and, 383 Warranties, 311 Washington Post, 173, 237 WatchBoom, 101 Water carriers, supply chain distribution and, 352 Webinar, 441 Web logs, marketing online and, 466–467 669 Webrooming, online retailing and, 378 Websites omni-channel retailing and, 379–380 online marketing and, 462–463 social selling and, 440 See also Digital and social media marketing; Direct and digital marketing Web wholesalers, 384t Wheeler-Lea Act (1938), 114t, 521 Whole channel concept, for international marketing, 509f Wholesale clubs, 367 Wholesale merchants, 384t Wholesaler marketing decisions marketing mix, 386–387 segmentation, targeting, differentiation, positioning, 385–386 Wholesalers, 383, 384t–385t Wholesaling, 383–388 defining, 383 marketing strategies, 386t sellers, importance to, 383–384 trends in, 387–388 types of wholesalers, 384t–385t Word-of-mouth influence, consumer behavior and, 166–169 Word-of-Web, online consumer buying behavior, 167 Words, attention-getting, in advertising, 411 Workload approach, sales force size and, 432 World product groups, 511 Written materials, PR and, 422 Written proposal, 136 Y Yell and sell presentations, 522 Z Zone pricing, 312 Find more at http://www.downloadslide.com This page intentionally left blank Find more at http://www.downloadslide.com This page intentionally left blank Find more at http://www.downloadslide.com This page intentionally left blank ... chosen channel design and work with selected channel members to manage and motivate them Marketing channel management Selecting, managing, and motivating individual channel members and evaluating... concerning marketing channels: What is the nature of marketing channels, and why are they important? How channel firms interact and organize to the work of the channel? What problems companies face... performance over time channel Management Decisions Once the company has reviewed its channel alternatives and determined the best channel design, it must implement and manage the chosen channel Marketing