(BQ) Part 2 book Essentials of marketing has contents: Personal selling and customer service, advertising and sales promotion, publicity- promotion using earned media, owned media, and social media, pricing objectives and policies, price setting in the business world,...and other contents.
12 www.downloadslide.com C H A P T E R T W E LV E © imageBROKER/Alamy www.downloadslide.com Retailers, Wholesalers, and Their Strategy Planning From 1843 to 1855 Rowland Hussey Macy opened—and closed—four general stores that specialized in “dry goods,” mainly textiles and ready-to-wear clothing Learning from those early failures, Macy finally hit on a formula that worked with the R.H Macy Dry Goods store he opened in New York City in 1858 Macy was soon adding departments with new product lines and moving into nearby buildings Resembling a collection of specialty shops, Macy’s became one of the world’s first department stores Innovative from the start, Macy’s was the first store to offer visits with Santa Claus It also led the way in illuminating window displays to lure customers into its stores In 1902, the original store moved uptown to Herald Square, where it remains today as the flagship in the 800+ store Macy’s chain Department stores proved to be popular with American shoppers; the concept was in the growth stage of its life cycle for more than a century before sales topped out in the 1970s Department stores’ large product assortment and attentive customer service appealed to many customers Typically located in city centers or regional malls, department stores pulled customers from a wide geographic area In the early 1900s, Sears and Marshall Field’s branched out with mail-order catalogs and brought the department store to rural America In the 1970s, department stores began to lose market share; first to mass-merchandisers and later to supercenters such as Target and Walmart, which offered convenient neighborhood locations and lower prices To compete, department stores pushed sale prices, but profits declined and customer service suffered Many thought the arrival of Internet retailing in the late 1990s signaled the death knell for department stores But some department stores successfully adapted their marketing mixes, making them relevant again Macy’s has been particularly successful Macy’s revival stems from changes across its marketing strategy Macy’s started by clearly defining its target markets Macy’s saw an opportunity with teens and the slightly older millennials (ages 19–30), who spend $60 billion a year and 50 percent more per person than the average population Within that segment, Macy’s defined four distinct target markets: teen girls, teen boys, millennial women, and millennial men Each segment has unique needs and shopping behaviors High school age teens want stylish clothes and spend a lot of time online So Macy’s connects with them through Tumblr, Pinterest, Facebook, and text messages Macy’s social media feauture a mix of content that appeals to teens: videos with the latest fashion trends, online shopping, and m.mix, where teens can discover new bands, download music, and get tips on decorating a college dorm room Macy’s has also developed exclusive lines for this market, including Marilyn Monroe clothing (for girls), G-Star Raw clothing (for boys), Keds collection shoes, and a Glee-themed line based on the popular television program In the store, this group prefers to “self-serve,” so Macy’s trained its sales staff to be available but not pushy with teens The millennial market might be found in college, starting a career, or maybe having a family These customers prefer to hear from Macy’s via e-mail, catalog, or direct mail Macy’s created its Impulse Shop with products for this group Shoppers will find Inglot Cosmetics, DV by Dolce Vita Shoes, and Else from Joe’s Jeans here This target market favors fastfashion retailers such as Zara and H&M that produce a collection of clothes and get it into a store in just a couple of weeks Macy’s needed to the same and spurred its supply chain to respond quickly to fashion trends These customers appreciate suggestions and advice from Macy’s salespeople So in the Impulse Shop at Macys.com, a black handbag might be suggested to complement the black shoes a shopper puts into her shopping cart And in the store, Macy’s salespeople are friendlier and offer more suggestions to millennials than to teens The My Macy’s program mines customer data to adapt marketing communications to individual customers Macy’s customer relationship management database includes a great deal of insight about each customer: previous purchases, responses to e-mails, online shopping behavior, and other information collected over time Macy’s uses these data to customize promotions in e-mails and direct mail For example, Macy’s sent out 30,000 different versions of a 305 www.downloadslide.com clothing and unsold merchandise to clearance centers or irect mailing; the pieces varied from 32 to 76 pages long d other countries and featured merchandise designed to appeal to each cusMacy’s is leading a department store revival with its tomer As a result, footwear fanatics saw more shoes and blend of online, mobile, and 800+ stores, an ability to transmoms saw more kids’ clothes form big data into personalized shopping experiences, and Macy’s recognizes that teens and millennials are multia focus on the needs of its teen and millennial target marchannel shoppers, and Macy’s wants to be in all those kets Still, Macy’s faces fierce competition from department channels Macy’s developed its “omnichannel” strategy to stores such as Nordstrom and Kohl’s, specialty shops such create a seamless shopping experience across its mobile, as Buckle and American Eagle, and online stores such as online, and brick-and-mortar stores So when the shoes a eBay and Zappos To keep growing, Macy’s must continue customer loves at the store are not in stock in his size, they adapting its marketing mix to meet its customers’ evolving are delivered to the customer’s home two days later direct needs.1 from Macys.com When a customer finds Macys.com doesn’t have a navy blue Lacoste polo shirt he wants to buy in stock, the order LEARNING OBJECTIVES can be shipped today from a local store that has one on Retail and wholesale organizations exist as members of marketing channel systems But its shelf they also their own strategy planning as they compete for target customers As the In retail, not everything Macy’s case shows, these firms make decisions about Product, Place, Promotion, and Price goes out the front door This chapter overviews the strategy planning decisions of different types of retailers and Sometimes even Macy’s Onewholesalers The chapter shows how retailing and wholesaling are evolving—to give you a Day Sale prices don’t move sense of how things may change in the future the merchandise When that happens, or when returns When you finish this chapter, you should be able to cannot be restocked, other Understand the nature and basic structure of retailing. channels of distribution are needed Macy’s Wholesale Understand how retailers plan their marketing strategies sells pallet loads of returned Know about the many kinds of retailers that work with producers and wholesalers as members of channel systems Understand what is different about retailing on the Internet. Understand how and why retailers evolve, including the roles of technology, scrambled merchandising, and the “wheel of retailing.” Understand some of the differences in retailing in different nations Know what progressive wholesalers are doing to modernize their operations and marketing strategies Know the various kinds of merchant and agent wholesalers and the strategies they use Understand important new terms (shown in red) Retailers and Wholesalers Plan Their Own Strategies As we saw in Chapter 10, retailers and wholesalers perform a vital role in channel systems Now we’ll look at the decisions that retailers and wholesalers make in developing their own strategies But first, study Exhibit 12–1 for a visual of how everything fits together Producers can choose a variety of different paths to deliver products to target customers (see Exhibit 12–2) In Chapter 10 we discussed how some producers deliver goods or services directly to customers We also saw how in some i ndustries, 306 www.downloadslide.com Exhibit 12–1 Marketing Strategy Planning for Retailers and Wholesalers CHAPTER 12 PL A CE 307 Chapter 11 Distribution Customer Service and Logistics Strategy planning for retailers • Product offering • Expand assortment and service; increase price • Mass-merchandise retailers • Competing on convenience • Retailing on the Internet Chapter 12 Retailers, Wholesalers, and Their Strategy Planning Nature of retailing • Evolution of retailing • Differences in retailing in different nations retailers and/or wholesalers add value so it makes sense to use indirect channels And of course, many producers use more than one of these paths to get products to customers When marketing managers decide to use intermediaries in their marketing strategy, they can choose among many different types of retailers and wholesalers Retailers and wholesalers have different target markets and different marketing mixes, and a producer should select intermediaries that best facilitate its strategy To better understand these options, we begin the chapter with a discussion of strategy planning for retailers (back to Exhibit 12–1) Retailers must create a marketing mix that provides value for a target market We also discuss how retailing has evolved and where it stands today, including some important international differences Chapter 12 concludes by considering strategy planning and the services offered by different types of wholesalers Strategy planning for wholesalers • Evolution of wholesaling • How wholesalers add value • Merchant wholesalers • Agent wholesalers Exhibit 12–2 Wholesalers and Retailers in a Typical Channel of Distribution Producer Wholesaler Retailer Customer Retailers, Wholesalers, and Their Strategy Planning Chapter 10 Place and Development of Channel Systems www.downloadslide.com The Nature of Retailing LO 12.1 Retailing covers all of the activities involved in the sale of products to final consumers Retailers range from large chains of specialized stores, such as Toys “R” Us, to individual merchants like the woman who sells baskets from an open stall in the central market in Ibadan, Nigeria Some retailers operate from stores and others operate without a store—by selling online, on TV, with a printed catalog, from vending machines, or even in consumers’ homes Most retailers sell physical goods produced by someone else But in the case of service retailing—such as dry cleaning, fast food, tourist attractions, online bank accounts, or hair salons—the retailer is often the producer Because they serve individual consumers, even the largest retailers face the challenge of handling many small transactions The nature of retailing and its rate of change are generally related to the stage and speed of a country’s economic development In the United States, retailing is more varied and dynamic than in most other countries By studying the U.S system, you will better understand where retailing is headed in other parts of the world Retailing is big business. Retailing is crucial to consumers in every macro-marketing system For example, consumers spend about $4.7 trillion (that’s $4,700,000,000,000!) a year buying goods and services from U.S retailers A few big retailers most of the business There are more than a million retailers in the United States, but most of these retailers are small; more than half report annual sales of less than $1 million The larger retail stores—those selling more than $5 million annually—do most of the business Less than 15 percent of the retail stores are this big, yet they account for almost 75 percent of all retail sales.2 Big chains have market clout One reason for the dominance of large retailers is that many achieve economies of scale from a corporate chain A corporate chain is a firm that owns and manages more than one store—and often it’s many. Chains—including Nordstrom’s, Walmart, Kroger, 7-11, and Chipotle— have grown rapidly and now account for about half of all retail sales Chains can buy in larger quantities and earn lower prices, they get operational efficiencies from running many stores, and they can apply advertising and other promotion costs over many stores You can expect chains to continue to grow and take business from independent stores.3 Retail through cooperatives and franchisors Because size offers such an advantage, many retailers not connected to a chain join cooperatives or franchises Retailers’ cooperatives pool purchasing and marketing expenses to increase efficiency and effectiveness Piggly Wiggly grocery, Ace Hardware, NAPA Auto Parts stores, and Carpet One are examples of cooperatives In a franchise operation, the franchisor develops a good marketing strategy, and the retail franchise holders carry out the strategy in their own units Each 308 Some businesspeople like to open retail franchises with brand names consumers already know—brands with track records of success, like Dunkin’ Donuts and Baskin Robbins © 2011 DD IP Holder LLC All rights reserved www.downloadslide.com Small retailers specialize Planning a Retailer’s Strategy LO 12.2 Retailers interact directly with final consumers—so strategy planning is critical to their survival If a retailer loses a customer to a competitor, the retailer is the one who suffers Producers and wholesalers still make their sale regardless of which retailer sells the product So let’s look closer at strategy planning for retailers. Consumers have reasons for buying from particular retailers Different consumers prefer different kinds of retailers But many retailers either don’t know or don’t care why All too often, beginning retailers just rent a store and assume customers will show up As a result, in the United States about three-fourths of new retailing ventures fail during the first year Even an established retailer will quickly lose if its customers find a better way to meet their needs To avoid this fate, a retailer should carefully identify possible target markets and try to understand why these people buy where they In this way, the retailer can finetune its marketing mix to the needs of specific target markets.6 Retailers make decisions about the whole marketing mix Like other organizations, retailers make marketing mix decisions about target market, Product, Place, Promotion, and Price (see Exhibit 12–3) For retailers, some of the Product decisions include choices about what products to carry, how wide an assortment to offer, and which services to support Place decisions include where stores will be located (online and/or brick-and-mortar), the number of stores, as well as store layout and design Promotion involves Retailers make decisions about the whole marketing mix Drugstore CVS created its myCVS smartphone app that helps its customers manage and quickly refill their prescriptions, find out about deals, place orders for merchandise to be picked up later, and much more © 2013 CVS Caremark; Phone image: © Jacek Lasa/Alamy 309 Retailers, Wholesalers, and Their Strategy Planning While big chains and franchises dominate the sales volume, 85% of all retailers are small But it is not easy for small retailers; the failure rate of small retailers is high A recent study found less than half were operating four years after starting in business Without the same economies of scale, small retailers that survive usually develop a specialty and become highly knowledgeable about a market niche For example, online retailer Wicker Central specializes in outdoor wicker furniture With four toy stores in Charleston, South Carolina, Wonder Works survives because it offers visitors a unique experience on each visit These stores compete with larger competitors based on intimate knowledge of their markets and high levels of customer service.5 CHAPTER 12 franchise holder benefits from its relationship with the larger company and its experience, buying power, promotion, and image In return, the franchise holder signs a contract, agreeing to pay fees and commissions and strictly follow franchise rules designed to continue the successful strategy Franchise holders’ sales account for about a third of all retail sales Hampton Hotels, Anytime Fitness, Subway, and Supercuts are examples of franchises.4 www.downloadslide.com Exhibit 12–3 Examples of Marketing Strategy Decisions for Retailers Product • Product selection (width and depth of assortment, brands, quality) • After-sale service • Special services (special orders, entertainment, gift wrap) Place • Physical stores and/or sales over the Internet • Number and location of stores • Shopping atmosphere (comfort, safety) • Store S size, layout, and design • Store S hours Price • Credit cards—whether to offer a store card • Discount policies • Frequency and level of sales prices • Charge (or not) for delivery or other services Promotion •A Advertising • PPublicity (Facebook, Twitter, PPinterest) • Salespeople (number and training) • Helpful information (demonstrations, displays, online videos, online reviews) letting customers know about the business and the goods and services offered through its in-store and out-of-store signage, advertising, salespeople, publicity (including social media), and other approaches Price decisions are varied as well, and include, for example, whether to accept credit cards or charge for delivery, and how frequently to offer products at discounted sales prices Strategy requires carefully setting policies 310 In developing a strategy, a retailer should consciously make decisions that set policies on all of these marketing mix issues Each of them can impact a customer’s view of the costs and benefits of choosing that retailer The combination of these marketing mix decisions differentiates one retailer’s offering from another These decisions affect its positioning in the market—how customers think about the retailer compared to others A retailer must consider its target customers’ economic, social, and emotional needs If the combination doesn’t provide superior value to some target market, the retailer will fail Consider the marketing strategies for two very different, yet successful, shoe retailers Usually located in malls and shopping centers, Payless ShoeSource’s primary target market is families looking for moderately priced shoes Although its shoes can be ordered online, most sales occur in one of its 4,500 brick-and-mortar stores The stores have a self-service design that encourages customers to select and try on shoes without the help of a salesperson Even though each store carries an average of 500 styles and 6,700 pairs of shoes—including dress, casual, boots, and athletic—for men, women, and children, Payless’ product line is relatively narrow for a shoe retailer and includes mostly lesser-known brands Payless’ advertising in local newspapers emphasizes value and usually promotes its low prices Further, Payless’ Facebook page, with more than 750,000 “likes,” keeps its most ardent fans informed of the next deal.7 Zappos.com offers a different marketing mix that appeals to a different target market Zappos operates several online storefronts in addition to Zappos—including Zappos Couture with high fashion shoes and Zappos Running Although Zappos recently added clothing, handbags, housewares, and beauty supplies to its product assortment, its core product line remains shoes Zappos’ wide product line includes www.downloadslide.com CHAPTER 12 Zappos creatively utilizes its advertising budget—in this case, placing ads at the bottom of airport security bins Payless advertises in local newspapers, promoting the value of its fine shoes at low prices © 2009–2015 Zappos.com or its affiliates, 400 E Stewart Avenue, Las Vegas, NV 89101; © 2014 Payless Shoesource Inc All Rights reserved 311 Different types of retailers emphasize different strategies Retailers have an almost unlimited number of ways in which to alter their offerings— their marketing mixes—to appeal to a target market Because of all the variations, it’s oversimplified to classify retailers and their strategies on the basis of a single characteristic—such as merchandise, services, sales volume, or even whether they operate in cyberspace But a good place to start is by considering basic types of retailers and some differences in their strategies Conventional Retailers—Try to Avoid Price Competition LO 12.3 Single-line, limited-line retailers specialize by product About 150 years ago, general stores—which carried anything they could sell in reasonable volume—were the main retailers in the United States But with the growing number of consumer products after the Civil War, general stores couldn’t offer enough variety in all their traditional lines So some stores began specializing in dry goods, apparel, furniture, or groceries Retailers, Wholesalers, and Their Strategy Planning more than 150,000 styles and 1,400 brands—including many styles in well-known brands such as Nike, Timberland, and Bandolino Because shoppers are understandably reluctant to buy shoes without first trying them on, Zappos devotes a whole page to each shoe There it provides eight or more photos from different angles, customer reviews, videos, and detailed descriptions Zappos also offers free shipping and free returns—for up to 365 days after purchase! The retailer wins praise for its customer service, available 24/7 on the phone or the web That service helps build positive word-of-mouth for Zappos, and more than 75 percent of its customers are repeat b uyers It has a relatively small budget for its advertising on television, print, online, and the bottom of the plastic bins in airport security lines A free monthly digital magazine for tablet computers, Zappos Now, keeps customers informed about fashion trends and offers tips about Zappos products CEO and author Tony Hsieh’s Twitter feed has more than 2.8 million followers Zappos and Payless ShoeSource developed very different marketing mixes, but each keeps target customers coming back.8 www.downloadslide.com Exhibit 12–4 Types of Retailers and the Nature of Their Offerings (with examples) Conventional Single- and limited-line Offerings stores Expanded assortment and service Specialty shops and department stores (Ritz Camera, Coach, Gap, Macy’s, Kohl’s) Expanded assortment and/or reduced margins and service Supermarkets, discount houses, massmerchandisers, superstores, club stores, single-line mass retailers (Safeway, American Furniture Warehouse, IKEA, Costco, Home Depot) Added convenience and higher than conventional margins, usually reduced assortment Convenience stores, (7-11, Pepsi vending vending machines, door- machines, Avon, QVC, to-door, cable TV, Lands' End) shopping channels, catalogs Expanded assortment, reduced margins, and more information Internet (eBay, Amazon, Zappos, Netflix, Dell) Now most conventional retailers are single-line or limited-line stores—stores that specialize in certain lines of related products rather than a wide assortment Many specialize not only in a single line, such as clothing, but also in a limited line within the broader line Within the clothing line, a retailer might carry only shoes, formal wear, or even neckties but offer depth in that limited line Single-line, limited-line stores are being squeezed The main advantage of limited-line retailers is that they can satisfy some target markets better Perhaps some are just more conveniently located But most adjust to suit specific customers They build a relationship with their customers and earn a position as the place to shop for a certain type of product But these retailers face the costly problem of having to stock some slow-moving items in order to satisfy their target markets Many of these stores are small—with high expenses relative to sales So they try to keep their prices up by avoiding competition on identical products Conventional retailers like this have been around for a long time and are still found in every community They are a durable lot and clearly satisfy some people’s needs In fact, in most countries conventional retailers still handle the vast majority of all retailing sales However, this situation is changing fast Nowhere is the change clearer than in the United States Conventional retailers are being squeezed by retailers who modify their mixes in the various ways suggested in Exhibit 12–4 Let’s look closer at some of these other types of retailers Expand Assortment and Service—To Compete at a High Price Specialty shops usually sell shopping products 312 A specialty shop—a type of conventional limited-line store—is usually small and has a distinct “personality.” Specialty shops sell special types of shopping products, such as high-quality sporting goods, exclusive clothing, baked goods, or even antiques They aim at a carefully defined target market by offering a unique product assortment, knowledgeable salesclerks, and better service Catering to certain types of customers whom the management and salespeople know well simplifies buying, speeds turnover, and cuts costs due to obsolescence and www.downloadslide.com Department stores combine many limitedline stores and specialty shops 313 Specialty shops and department stores often rely on well-trained salespeople who deliver expertise and customer service John Henley/Getty Images Evolution of Mass-Merchandising Retailers Mass-merchandising is different from conventional retailing The conventional retailers just discussed think that demand in their area is fixed—and they have a “buy low and sell high” philosophy Many modern retailers reject these ideas Instead, they accept the mass-merchandising concept—which says that retailers should offer low prices to get faster turnover and greater sales volumes—by appealing to larger markets The mass-merchandising concept applies to many types of retailers, including both those that operate stores and those that sell online But to understand massmerchandising better, let’s look at its evolution from the development of supermarkets and discounters to modern mass-merchandisers such as Walmart in the United States, Tesco in the U.K., and Amazon.com on the Internet Supermarkets started the move to massmerchandising The basic idea for supermarkets, large stores specializing in groceries with selfservice and wide assortments, developed in the United States during the 1930s Depression In earlier days, customers entered a store and a clerk, from behind a counter, fetched requested items Then some innovators introduced self-service as a way to cut costs while also providing a broad assortment in large bare-bones stores.11 Today’s supermarkets carry 20,000 to 40,000 items and per-store sales are about $20 million a year, with about 75 percent of that in food The average size of a supermarket is 40,000 square feet In the United States, there are about 35,000 supermarkets, and competition in most areas is intense More recently, supermarket operators have opened superstores of 50,000 to 100,000 square feet with extensive selection.12 Supermarkets are planned for maximum efficiency Scanners at checkout make it possible to carefully analyze the sales of each item and allocate more shelf space to faster-moving and higher-profit items Survival depends on efficiency and high sales volume Net profits in supermarkets usually run a thin to percent of sales or less! Discount houses upset conventional retailers After World War II, some retailers started to focus on discount prices These discount houses offered “hard goods” (cameras, TVs, and appliances) at substantial Retailers, Wholesalers, and Their Strategy Planning Department stores are larger stores that are organized into many separate departments and offer many product lines Each department is like a separate limited-line store and handles a wide variety of shopping products, such as men’s wear or housewares They are usually strong in customer services, including credit, merchandise return, delivery, and sales help Department stores are still a major force in big cities Although they have staged a bit of a comeback recently in the United States, the number of department stores, the average sales per store, and their share of retail business has declined significantly since the 1970s Well-run limited-line stores compete with good service and often carry the same brands In the United States and many other countries, mass-merchandising retailers have posed an even bigger threat.10 CHAPTER 12 style changes Specialty shops probably will continue to be a part of the retailing scene as long as customers have varied tastes and the money to satisfy them.9 www.downloadslide.com Charmin, 42, 120, 435 Checkout scanners, 163–164, 186–187, 459 Cheer detergent, 42, 98 Cheerios, 212 Cheerleader shoes, 98 Children’s shoes, 39–40, 41 China adapting flavors for, 248 advertising climate, 411 advertising expenditures, 394 advertising growth in, 394 Alibaba in, 324 Amazon in, 57 Apple lawsuit, 210 Apple marketing strategy, 115 blend of integrated marketing communications in, 340 demographic characteristics in, 74 direct investment in, 278 direct selling in, 262 dumping by, 475 emerging middle class consumer segment, 52 ethnographic research in, 185 healthcare in, 618–619 in-home shopping, 315 joint venture in, 278 Lenovo computers and direct selling channel, 255–256 as lucrative overseas market, 52 marketing research challenges in, 192–193 money spent on branded products, 207 nationalism and rejection of outside firms, 69 Nestlé’s target marketing in, 91 Nike’s marketing strategy in, 3–4 population growth, 75 product counterfeiting in, 210 reverse channels in, 276 smartphone ownership, 256 social networks in, 444 taste preferences, 91, 248 U.S outsourcing of production to, 159 China Statistical Yearbook, 193 Chocolate Chex Mix, 62 Choice, freedom of, 14 ChotuKool, 238 Christmas layaway program, 137 Cinema ads, 400 Circuses, 31–32 Citizen journalists, 436 City centers, 305 City of San Jose, 164 Civil penalties, 71 Class (social), 129–130 Classes of products, 215–222, 258 Classified ads, 404, 405 Clayton Act (1914), 71 Clearance centers, 306 Click fraud, 406 Click2Asia, 82 Click-through-rate, 405 Climate Counts (www.climatecounts.org), 124 Clorox Scented Bleach, 201 Close, 385 Close competitors, 64 Close substitute, 90 Closing sales, 380 Cloud computing, 353 Cloud data storage services, 138 Clustering techniques, 104 Clutter ads, 400 Coast soap, 108 Coating services, 143 Co-creation process, 244–245 Codes of ethics; see Ethics Coffee, accumulating, 264 Coffee sales, 169–170 CoffeeMate, 102 Cold calls, 380, 421 Colgate, 212 738 Colgate Total Gum Defense toothpaste, 96 Collaboration, 227 Collaborators defined, 12 in model of market-driven macro-marketing system, 15 College students, credit cards and, 466–467 CollegeHumor.com, 391 Collusion, 273 Combination export manager, 330 Combination plans, for sales pay, 381 Combined target market approach, 96 Combiners, 97 Combining, segmenting versus, 108–109 Command economy, 13–14 Commercial overload, 407 Commercialization stage, 245 Commission of manufacturers’ agent, 329 for salespeople, 381, 382 Committee buying, 163 Common frame of reference, 345 Common law protections, 72–73, 214 Communication, of promotion to target markets, 336–337 Communication process, defined, 344 Communication technologies, 522 Company objectives, 59–61; see also Objectives Comparative advantage, 232 Comparative advertising, 398 Compensation, in sales, 380–382 Competition assessing in strategy planning, 63–65 customer perceptions of, 106–110 for customer value, 20 exclusive distribution versus, 271–273 legal defense of, 70–73 nonprofit organizations and, 23 Competitive advantage, 239, 255 Amazon and, 57 of Cirque du Soleil, 32 defined, 45 from economies of scale, 51–52 finding, 61–63 how to get, 48 importance in maturity stage, 236 sustainable, 63–64 Competitive advertising, 397 Competitive bid, 154, 164 Competitive environment, 63–65 Competitive rivals, 64 Competitor analysis, 64, 496–497, 519 Competitor matrix, 64, 65 Competitor-free environments, 63 Competitors appearance in product life cycle, 229–230 illegal, 210 potential, identifying, 64 product ideas from, 242 Complaints; see also Customer service about marketing, 27 costs to firm, 248 firms’ efforts to find and resolve, 369 Complementary product pricing, 502 Component parts and materials, 220, 221 Computer hardware, for sales support, 378 Computer programs; see Software Computer sales, 255–256 Computer system breach, 241 Computer-aided design (CAD) software, 67 Computer-aided segmentation, 104 Computerization, 522 Concentration of industries, 160 Concept testing, 243–244 ConExpo show, 416 Confidence intervals, 190–191 Confidence of consumers, 119 Confirmation, in new-product adoption, 138 Conflict of interest, 148 Conflicts, in distribution channels, 267 Conservation; see Sustainability Conspiracy, 475 Consultative selling approach, 385–386 Consumer affairs, careers in, 570–571 Consumer behavior Apple loyalty, 115–116 challenges of, 116 consumer decision process, 134–138 consumer product classes and, 216 culture and, 131–133, 143–144 expanded model of, 135 influences on, model of, 118 for marketing strategy planning, 117 organizational customers, 146–147 psychological influences, 119–127 role of needs in, 117–119 situational effects, 133–134 social influences affecting, 128–131 Consumer choice in planned economies, 13–14 Consumer confidence and spending, 119 Consumer Electronics Show, 417 Consumer groups, 15 Consumer market segments; see Segmentation Consumer panels, 186–187 Consumer product classes, 216–218, 258 Consumer Product Safety Act (1972), 72, 242 Consumer Product Safety Commission, 24, 242 Consumer products, defined, 215 Consumer protection laws, 72 Consumer Reports magazine, 126 Consumer Safety Institute (Netherlands), 122 Consumer surplus, 540 Consumer sweepstakes, 394 Consumerism, 528 Consumerist.com, 527 Consumer-producer separation, 10 Contagious messages, 429 Containerization, 297 Contests, 338, 445 Continuous improvement, 249 Continuous innovations, 238 Continuum of environmental sensitivity, 83 Contracts between buyer and seller, 158–159 Contractual channel systems, 270 Control, 53 analytical tools for, 42 as marketing management task, 32, 33 in marketing plans, 40–43 Convenience (food) stores, 315 Convenience, defined, 318 Convenience products, 23, 216, 258 Conventional retailer strategies, 311–312 Conversion, 421 Cookies (computer), 68, 318, 350, 404, 406–407 Cooperation, in marketing research, 177 Cooperative advertising, 396 Cooperative relationships, 157 Cooperatives, 308–309 Coordination, of relief efforts, 291 Copy thrust, 407–408, 426 Copyright law, 239 Core benefits, 101 Corporate chains (retail), 308 Corporate channel systems, 270 Corporate culture, 606 Corporate giving program, 606 Corrective advertising, 412 Cost of lost sales, 287, 289 Cost of sales, 548 Cost structure, of a firm, 489 Cost-benefit analysis, 189 Cost-oriented price setting, 482, 490 Costs; see also Prices; Profits of brand rejection, 207 budgeting, for promotion, 357–358 customer value and, 20 forms of, 20, 488–491 in full-line pricing, 502 www.downloadslide.com D Damage awards, 65 Dasani brand bottled water, 283 Dashboard, 174 Data; see also Big data converting to information, 173 government, 180 massive growth in, 172–173 primary, 179 secondary, 179 “Data exhaust,” 241 Data gathering; see also Marketing research methods, 181–189 searching the Web, 179–180 Data interpretation principles and tools, 189–191 for quality improvements, 249 types of, for marketing research, 189–192 Data sources primary, 179, 181–189 secondary, 179, 189 Data warehouse, 173 Databases customer relationship management (CRM) and, 104–105 MIS developments, 171–176 online, 179–180 use in segmentation, 104–105 Dawn dishwashing detergent, 345, 451 Dealer brands, 211, 451, 473 Dealers, 262 “Deal-of-the-Day” sites, 468–469 “Deal-prone” customers, 414 Deceptive advertising, 412 Deciders, 149 Decision support system (DSS), 174–176 Decision-making process,150, 156–160; see also Problem solving Decisions, in adoption process, 137–138 Decline stage, 231, 234, 237 Decoding, 345 Defects, reducing, 248; see also Quality Demand bid pricing and, 503 building in introduction stage, 234, 235 derived, 219 diminishing, law of, 533 generating, 499 impact on average-cost pricing, 488–491 pricing methods based on, 494–501 skimming prices and, 461 Demand and supply competition and, 540–543 size of market and price level and, 539–540 Demand curve about, 533–537 defined, 533 estimating, 488–490, 492, 493 kinked, 542 in prestige pricing, 501 prices on, 461 in psychological pricing, 499 Demand elasticities, 536–537 Demand schedule, 533 Demand-backward pricing, 500–501 Demand-oriented price setting, 482 Demographic segmentation; see Segmentation Demographics, 73 age distribution, 77–79 cell phone and Internet usage, 76–77 dimensions and characteristics for selected countries, 74 effects of, on marketing strategy planning, 522 income and investment, 75 lifestyle dimensions and, 127 literacy, 75–76 population, 77 population trends, 75 as segmenting dimension, 100, 101 social class, 129–130 U.S income distribution, 119 Department stores, 305–306, 313 Depletion of the ozone layer, 525 Derived demand, 219 Desire, in AIDA model, 342, 408 Destination development, 607 Detailers, 370 Determining dimensions, 100 Determining dimensions (segmentation), 99–102, 110 Developing countries; see Less-developed countries Dial soap, 107–109 Diapers, markets for, 35–36, 344, 414, 436 Dictatorships, 508 Differentiation achieving with product design, 206 by blending goods and services, 203–204 in career planning, 564–565 case study, 643–644 defined, 48 e-commerce strategies for, 311, 316–319 739 Subject Index Customer relations, careers in, 570–571 Customer relationship management (CRM) defined, 104–105 InterContinental Hotels Group’s use of, 105–106 Macy’s use of, 106, 305–306 target marketing with, 346 Target’s use of, 105 use in banks, 369 use in sales, 383–384 Customer retention, 38, 44, 375 Customer reviews, 15, 238–239 Customer satisfaction defined, as key to marketing orientation, 17–19, 20–22 as main product attribute, 200 measuring, 509–511 surveys for, 188 tying quality efforts to, 248, 250–251 Customer service analytics in, 372, 375 careers in, 568–569 case studies, 633–634, 646–647 defined, 38 digital and self-service, 377 direct distribution advantages, 260 as driver of satisfaction, 61 information technology for, 378–379 as logistics goal, 285–287 as personal communication, 337 personal selling and, 363–364 proactive, 372 role in sales promotion, 371–372 setting levels for logistics decisions, 285–287 Customer service level, 285–287 Customer service reps (CSRs), 61, 370–372 Customer trust, 425–426 Customer type, 92 Customer value; see also Customer satisfaction; Value defined, 20 improving, 21 marketing concept and, 20–22 Customer-initiated interactive communication, 347–350 Customer-initiated promotion, 346–350 Customers communication process initiation by, 346–350 impact of, on firms, 15 online search behavior, 348 potential, informing through promotion, 341 product ideas from, 240–241 as receiver, 347 retaining, 44, 375 as target of marketing mix, 36 Customers’ perceptions, 106–110 Cyberbrokers, 330 inventory carrying costs, 289 logistics costs, amount of, 284–285 of missed opportunities, 512 of poor quality, 146, 147 of quality efforts, 248–249 revenues versus, 44 storage and handling, 298–300 total cost approach, 289 total inventory cost, 299 transportation regulations, 297–298 of transporting function, 293–294 Counterfeit goods, 67, 210 Coupons, 50, 208, 338, 451, 463, 468–469, 624 Craigslist, 404 Cranes, 290–291 Crayola crayons, 357 Credibility, of promotions, 344 Credit, from intermediaries, 262–263 Credit CARD Act of 2009, 467 Credit cards, 466 Credit insurance, 375 Credit management, careers in, 570 Credit sales, 466 Crest toothpaste, 247 Crest Whitening Strips, 228 Criminal penalties, 71 CRM; see Customer relationship management (CRM) Cross-tabulation, 190 Crowdsourcing, 241 Cruise lines, 497 Cuba, 14 Cues, 122 Cultural environment, 83 Cultures; see also International marketing consumer behavior and, 131–133 culture, defined, 131 different, in international markets, 133 impact on interview responses, 185–186 impact on learning, 123 limitations on ad messages, 394 message interpretation may vary, 345 social and cultural environment and, 73–79 Cumulative quantity discounts, 465 Currency Calculator, 464 Custom components, 221 Customer acquisition, 44, 421 Customer advocacy, 437–439 Customer advocates, 372 Customer analysis, 519 Customer analysts, 566–567 Customer behavior, between-country differences, 87 Customer call centers, 374 Customer complaints; see Complaints Customer databases, 104–105; see also Customer relationship management (CRM); Databases Customer enhancement, 44 Customer equity, 43–44 Customer experience, 430 Customer lifetime value, 43–44, 53 Customer loyalty, 43–44, 49, 363, 459 Customer loyalty cards, 104 Customer needs; see also Consumer behavior awareness, 138 basic role in buying behavior, 117–119 brands and, 205–206 competing to satisfy, 20–21 defined, 92 in generic versus product-markets, 93 importance to retail planning, 310 as marketing’s starting point, 7–8, 17–18 meeting, with product type, 92 naming markets for, 91 in organizational markets, 145–150 psychological influences, 119–127 seeking in the planning process, 48 segmentation by, 95 as source of new product ideas, 240–241 specific, focusing on, 36 www.downloadslide.com Differentiation—Cont elements of, 109–110 examples, 49 as marketing mix focus, 48–49, 105–106 in marketing plans, 519 in monopolistic competition, 63 with new products, 228 Digital advertising, 399; see also E-commerce; Internet Americans’ time spent with digital media, 402–403 ethical issues, 406–407 examples, advantages, and disadvantages, 404 tracking customers via, 404 types of, 404–405 Digital cameras, 397 “Digital natives,” 79 Digital products, distribution of, 265 Digital video recorders (DVRs), 426 Direct channels, 259–263 Direct competitive advertising, 397 Direct distribution indirect distribution versus, 259–263 over the web, 499 Direct investment, 278 Direct mail, 305, 346 Direct market environment competitors, 63–65 elements of, 58 firm’s objectives, 59–61 firm’s resources, 61–63 Direct marketing, 262 Direct selling channel, 255 Direct store delivery, 301 Directories, 400, 404, 405 Direct-response advertising, 255 Direct-response feedback, 344 Direct-response promotion, 345–346, 404 Direct-to-customer sales, 260–261, 262 Dirt Detect Series (vacuum cleaner), 228 Disaggregation, 93 Disaster relief, 291 Discontinuous innovation, 238 Discount houses, 313–314 Discounting products, 417 Discounts, 445, 454, 464–467, 549, 654 Discrepancy of assortment, 10, 264, 265–266 Discrepancy of quantity, 10, 264, 265 Discretionary income, 119 Display ads, 426 Disposable diapers markets for, 35–36 Pampers in British market, 344 sales promotion problem, 414 Dissonance, 137 Distribution, 654; see also Channels of distribution; Logistics case study, 634–635 channel complexity, 273–275 channel specialists, 264–266 direct versus indirect, 259–263 objectives, 257–259 relationships within channels, 266–269 target marketing decisions, 37 vertical marketing systems, 269–270 Distribution centers, 300–301 Distributors, 262 Diversification defined, 50 McDonald’s example, 50–51 Diversity, 131 Division of labor, 10 Divorce, 129 Do Not Call Registry, 374 Don’t-rock-the-pricing-boat objectives, 457 Door-to-door selling, 315–316 Dove soap, 107 Down-sloping demand curve, 533 Downy, 247 740 Driverless cars, 67 Drives, individual, 119, 120 Drone aircraft, 57, 296 Drop-shippers, 328 Drug companies, pricing of, 473 Dryel, 398 DSS; see Decision support system (DSS) Dumbing down, 87 Dumping, 475 DVD players, product life cycle of, 232 Dynamic pricing, 459 Dynamically continuous innovations, 238 E Early adopters, 355 Early majority, 355 Earned media about, 427–428 benefits and challenges of, 427 careers in, 569–570 from customer advocacy, 437–439 customer trust and, 425 defined, 424 falsifying, ethics of, 439 from public relations and the press, 435–437 Earnings, marketing’s focus on, 43 Earthquakes, 291 Easter candy, 217 Eastern Europe, 16, 184, 457 Eastgate Center, 243 Eastman Tritan copolyester, 151 E-book readers, 58 E-books, 249, 432 Eco Option products, 155 “Ecomagination” (General Electric), 79–82 E-commerce; see also Auction sites; Websites advantages and disadvantages, 12–13, 316–319 Amazon.com innovations, 57–58 automatic rebuys via, 152, 164 B2B (business-to-business) market, 152 defined, 12 Dell, Inc., model, 255–256 distribution advantages, 259, 260 growth of, 12, 316 impact on wholesalers, 325, 330 international variations, 323 role in JIT systems, 290 in sales relationships, 377 third-world artisans, 14 use by small service companies, 162 Zappos’ model, 311 Economic buyers, 117 Economic environment, 66 Economic needs, 117–119 Economic systems, 13–16 Economic turndown, 507 Economic-buyer theory, 117 Economics, fundamentals of (Appendix A), 532–544 Economies of scale branding and, 207 competitive advantage from, 51–52 defined, 10 difficult with services, 202 maintaining, 481–482 in promotion, 357 and small retailers, 309 transporting function and, 293 Ecoworx carpet tiles, 276 Editorial coverage, 436 Edsel, 514 Educational web pages, 431 Egypt, 74, 295 80/20 rule, 272 Ekocenter, 283 El Mercado de Frieda, 325 Elastic demand, 535 Elastic supply, 539 Electric bus, 155 Electric cars, 45 Electronic data interchange (EDI), 292, 301 Electronic scanners, 163–164, 186–187 Ellen Show, The, 443 E-mail benefits of, to buyers and sellers, 346 building relationships with, 435 for direct-response promotion, 346 newsletters via, 431, 435 Emergency products, 216, 217 Emerging markets, 3–4, 52 Emotion, 429 Empowerment, 250 Empty nesters, 129 Encoding (communication), 345 End-of-aisle displays, 394 Endomondo, 198 Endorsement, 3, 197–198, 436 England; see United Kingdom Environmental issues case study, 645–646 Coca-Cola initiatives, 283–284 in distribution channels, 276 growing importance of, 124–125 needs in, 525 objectives based on, 19 in packaging, 68 in product-market screening, 79–80, 81 in purchasing, 155 in transportation, 297–298 Environmental Protection Agency/SmartWay program, 298 Environmental responsibility, 19 Environmental sensitivity, 83 Equilibrium, 539 Equilibrium point, 539 Equity, brand, 209 ESPN Deportes, 132 Estimate, from a sample, 190 Ethics advertising agencies, 410 American Marketing Association Statement of Ethics, 26 among workers and employees, 528 bait pricing, 498–499 behavioral targeting software, 39 of bid pricing, 503 black hat SEO techniques, 429 in competitor analysis, 64–65 in a consumer-oriented world, 507–508 of counterfeiting products, 210 of credit card companies, 466–467 customer relationship management (CRM) and, 105 in digital advertising, 406–407 in distribution arrangements, 273, 274–275 false impressions in promotion, 125 of falsifying earned media, 439 of influencing beliefs, 125 in market segmentation selections, 103 in marketing communications, 349–350 marketing concept and, 25–26 in marketing to foreign governments, 165 minimal standards of, 526 native advertising, 409 needs created by marketing, 123 in new-product planning, 239 in organizational purchasing, 148 overview of, 25–26 in packaging, 214 in personal selling, 386–387 in the physical distribution area, 293 in pricing, 474 product obsolescence, 512 promotion and, 349–350 spying on competitors, 65 unfair advertising, 411–412 in use of marketing research, 191–192 in use of technology, 68 www.downloadslide.com Factor, 556–558 Factor method, 556–558 Fad, 233 Failed products, 239–240 Fair trade, 322 Fairness, 26; see also Ethics False beliefs, 125 Family brand, 210 Family influences, on consumer behavior, 128–129 Family life cycles, 128 Fanta, 283 Farm products, 220 Farmville, 33 Fashion, 233 Fatwallet.com, 467 Febreze, 123 Febreze Destinations Collections, 132 Febreze Sport, 98 FedBizOpps.gov website, 165 Federal antimonopoly laws, and the Four Ps, 71–73 Federal Aviation Administration (FAA), 296 Federal Communications Commission (FCC), 497 Federal Fair Packaging and Labeling Act (1966), 214 Federal government, marketing to, 164–165 Federal Trade Commission Act (1914), 71, 475 Federal Trade Commission (FTC) on bait pricing, 498–499 ban on phony prices, 475 comparative ads approved, 398 native advertising review, 409 new product definition, 238 warranty guidelines, 214–215 Feedback, 160, 344, 345 Financial analysis, 43 Financial strength, 62 Financing function, 11 Fines, 71 Finland, 74 Fitness apps, 198 Fixed costs, 664 Fixed-cost (FC) contribution per unit, 491–492 G Gain detergent, 42, 247 Gambling, 394 Game Neverending, 235 Gamers, 48, 136 Games, 33, 121, 136, 235 Garbage disposals, 236 Gas-electric hybrid trucks, 283 Gatekeepers, 149 GDP (Gross domestic product), 74, 75 General merchandise wholesalers, 327 General Services Administration (GSA), 165 General stores, 311 General-line wholesalers, 327 Generation X, 78 Generation Y, 78–79 Generation Z, 79, 444 Generic market customer needs and, 93 defined, 90 product-market definitions and, 92 Generic products, 210–211 Geographic area industry concentration by, 160, 162 naming markets for, 92 sales force specialization by, 374–375 segmentation by, 100, 101 German parents, 87 Germany, 75, 160, 297, 463 adapting flavors for, 248 advertising expenditures, 394 Amazon in, 57 consumer protection rules of, 70 delivery drones, 296 demographics, 74 online shopping, 323 “Get the Glass” game, 121 Gift-buying, 134 Gillette razors, 247 Gleevec (cancer drug), 473 Global economy; see International marketing Global warming, 45, 297, 525 globalEDGE website, 76 Globe 21st Century, 609 Gmail, 244 GNI (Gross national income), 74, 75 GNI per capita, 75 Golden Arch hotels, 50–51 “Golden Rule,” 524 Golf courses, 203 Golf products, in distribution, 264 Golf-course management, 144 Goods, products as, 202–204; see also Products Goodwill, eroding of, 248 Google Analytics, 176 Google News, 436 Google Search Education Online, 179 Google Shopping, 317 Google+, 244 Government data, 180 Governments advertising regulation, 394, 411–412 data from, 180 dealing with foreign governments, 165 product ban dilemma, 24 purchasing functions, 164–165 role of, in command (planned) economy, 14 role of, in market economies, 15 transportation regulations, 294 U.S support of companies’ environmental initiatives, 298 Grading, of raw materials, 221 Grease money, 165 Great Britain, 283; see also United Kingdom Great Depression (U.S.), 335 Green choices; see also Environmental issues in business purchasing, 155 Coca-Cola initiatives, 283 growing interest in, 124–125 Method Products, 451–452 in packaging, 63, 213 reverse channels for, 276 Green corporate citizens, 276 Green packaging, 213 Green Works cleaners, 62–63, 94 GreenXchange, Greeting cards, 89–90 Grocery shopping, mobile, 318 Grocery stores, 498 Gross domestic product (GDP), 74, 75 Gross margin, 484 Gross margin (gross profit), 548 Gross national income (GNI), 74, 75 Gross sales, 547 741 Subject Index F Fixed-cost contribution per unit, 664 Fixed-response questionnaires, 182 Flexibility as company strength, 62 in pricing, 456, 459–460 Flexible-price policy, 458–460 Floor cleaning products, 133 F.O.B., 470–471 F.O.B shipping point, 470–471, 649 Focus group, 181–182 Focus group interview, 181 Follower, 233 Food and Drug Administration (FDA), 72, 242, 617 Food courts, 613 Food wrapping film, 242 Football clothing, 197 Forecasting approaches to, 555 of company and product sales, 556–558 of future behavior, 558 judgment needed in, 556 marketing mix and, 558 past behavior and, 555, 556–558 of target market potential and sales, 554–556 types of, 555 Foreign Corrupt Practices Act (1977), 165 Foresight, 411 Fortune magazine, 283 Four Ps antimonopoly laws and, 71–73 as determination of marketing manager, 517–518 in firm’s objectives, 46, 61 integrating in plans, 517–518 overview of, 36–40 Frame of reference, 345 France, 57, 463 car-sharing laws, 72 Coca-Cola in, 283 demographics, 72 online shoppers, 323 soda tax, 24 Sodebo marketing example, Franchise operations case study, 629 as distribution model, 271, 273 how they work, 308–309 Subway example, 391–392 Franchisors, 273 “Free” strategy, 499 Free trade agreements, 69–70 Free trials, 496 Freedom of choice, 14, 528–529 “Freemium,” 499 Freight-absorption pricing, 471, 649 Frontline Plus, 465 Frozen, 392 Fukushima earthquake, 291 Full warranties, 215 Full-line pricing, 501–502 Full-service ad agencies, 410 Functional discount, 467 Ethiopia, 74, 75 Ethnic groups; see also specific ethnic groups buying habits, 131 growth of consumers in, 132 stereotyping, 131 store buying specialists and, 163 Ethnographic research, 185–186 Europe, 31, 285, 323, 473 European Community’s Waste Electrical and Electronics Equipment (WEEE) Directive, 276 European markets, 70 European Union (EU), 70, 180, 509 Euros, 70 Eurostat, 180 Evaluation, 138, 243–244 Everyday low pricing, 467 Evolution locomotives, 298 Exaggerated claims, 349 Exchange rates, 463–464 Exclusive distribution, 271–273 Expectations, 125 Expedia.com, 265 Expense item, 219 Expenses, 548 Experimental method, 187 Export agents, 329–330 Export brokers, 330 Export rules, 15 Exporting, 277, 659–660 Exposure of products, 271–273 Extensive problem solving, 136 External market environment, 519; see also Market environment “Eyeballs” searching, 499 Eyewear marketing, 60, 134, 317–318, 346 www.downloadslide.com Groupon, 468 Growth identifying opportunities, 81–82 population, 74, 75, 77–79 as product life cycle stage, 229, 230 through international marketing, 52 Growth options, examining, 624–625 G-Star Raw clothing, 305 Guarantees, 70, 215 Guatemala, 218 H Habits, 123 Hacking, 65, 241 Haiti, 74 Hallmark Idea Exchange, 184–185 Hand-washing saves lives education program, 343 Harley Owner’s Group (HOG), 435 Harry Potter LEGO kits, 87 Hash tags, 343 HD-DVD, 462 Head & Shoulders shampoo, 247 Health care costs, 228, 474 Health Care Reform Act (2010), 618 Heat-Gear, 197 “Help a Child Reach 5” campaign, 343 Herbal Essences, 34 Hero2 cameras, 90 Heterogeneous market segments, 95 Heterogeneous shopping products, 216, 217, 218, 258, 271, 368 Heterogeneous supply and demand, 9, 10, 15 Hierarchies of needs, 120 Hierarchy of objectives, 60–61 Hijacking, of customers, 405 Hindsight, 411 Hispanic market, 132, 163, 325 Hobbit LEGO kits, 87 Holding interest, 408 Home mortgage crisis, 66 Home page, 432 Home robots, 227–228 Homogeneous market segments, 95 Homogeneous shopping products, 216, 217, 258, 314, 541 Horizontal arrangements, 273 Horizontal conflicts, 267 Hospital for Sick Children (SickKids; Toronto), 249 Household cleaning-product market, 451 Housing boom, mid-2000s, 24 Housing market downturn, 66 HP Discovery Workshops and Cloud Roadmap services, 353 HPShopping.com, 377 Huggies, 34 Huggies Pure & Natural, 436 Hulu, 265 Humor, 429, 445 Hump day camel commercial, 334 Hurricane Katrina, 291 Hurricanes, 291 Hydraulic fracking, 23 Hypermarkets, 314 Hypothesis, 176, 182 I IBOT (wheelchair), 618, 619 Idea evaluation, 243–244 Idea generation, 240–242 Idea screening, 242 Ideal market exposure, 271–273 If-then thinking, 493 Illegal behavior, 528 Illiteracy, 75–76 Imitation, 147 Immigrant populations, 371 Immigration, 132 Implementation of advertising, 396 742 defined, 41 as marketing management task, 32, 33 of marketing plans, 40–43 of personal career plan, 573 Import agents, 329–330 Import brokers, 330 Import rules, 15 Impulse buying, 133 Impulse products, 216, 217 Inbound Marketing: Get Found Using Google, Social Media, and Blogs (Halligan and Shah), 421 Inbound promotion, 421 Incentives, 382, 496 Income required for profit, 75 social class and, 129–130 spending and, 119 as target market requirement, 75 U.S distribution, 119 India, 262 Amazon in, 57 cell phone use in, 76 demographics of, 74 entrepreneurs in, farmers and John Deere relationship, 143 “Made in America” popularity, 323 menu adaption in (McDonald’s), 83 rural markets, 9, 238 smartphone ownership, 256 social structure in, 130 transportation systems, 297 U.S outsourcing of customer service to, 159 Indirect channels, 262–263 Indirect competitive advertising, 397 Indirect versus direct distribution, 259–263 Individual brands, 210; see also Brands Individual product, 201 Individual sellers, 219 Indonesia, 323 Industrial buyers, 145 Industrial Revolution, 16 Industry attractiveness, 81, 82 Industry codes, 160–162 Industry demand, 219 Industry sales forecast, 555 Inelastic demand, 535 Inelastic supply, 539 Inflation, 66 Influence peddling, 165 Influencers, 149 Infographics, 431, 434 Informal focus groups, 181, 243, 245 Information, 174 Information, separation of, 10 Information sharing, 157–158 Information technology (IT); see also Customer relationship management (CRM); E-commerce; Marketing information systems (MIS) as aid to personal selling, 378–379 cost-cutting and, 287 for disaster relief, 291 electronic data interchange (EDI), 292, 301 general impact on marketing, 66–69 improved service levels and, 287 for inventory management, 301 MIS developments, 171–176 segmentation techniques, 104–106 worldwide access to, 76–77 Information-gathering methods, 181–189 Informing objective, of promotion, 341, 342 In-home shopping, 315–316 Inland waterways, 295 Innovation, 3, 4, 147; see also Breakthrough opportunity culture of, 246 defined, for mature product-markets, 236 in new-product development, 228–229, 238 organizational cultures fostering, 246 Innovators, 354–355 Inside Out, 392 Inside sales force, 374 Insider knowledge, 445 Instagram, 443 Installations, 219–220 Installment plan, 466 Institutional advertising, 396, 398–399 In-store experience, 321 Insurance companies, 241, 498 Intangible products, 265 Integrated marketing communications, 335–336, 340 “Intel inside,” 495 Intensive distribution, 271–273 Intentions to buy, 124 Interest in adoption process, 138 in AIDA model, 342, 408 Interest rates, 66 Inter-European commerce, 70 Intermediaries, 144 branding by, 211–212 in channels of distribution, 266–269 defined, 11–12 eliminating, 266 exclusive and selective, 273 in indirect channels, 262 Internet-based, 12–13 lack of access to, 261 markup by, 484 in model of market-driven macro-marketing system, 15 for MRO supplies, 221 overview of role, 11–12, 259–261, 262–263 trade promotion aimed at, 417 value of, in distribution, 259 Intermediate buyers, 145 Internal marketing, 351 International marketing adapting products for, 248 advertising, publicity, and sales promotion, 393–394 agent wholesalers in, 329 Amazon’s sales in, 57 assessing political environments, 69–70 branding challenges in, 208–209 careers in, 570 case study, 659–660 by Coca-Cola, 283–284 competition and, 521 counterfeiting in, 210 cultural variations in, 133 of Dell computers, 255 demographics for selected countries, 74 direct selling in, 262 economic conditions and, 66 effects of, on marketing strategy planning, 522 entering, 277–278 evaluating opportunities in, 82–83 exchange rates, 463–464 firms “shopping” for ideas in, 242 to foreign governments, 165 implementation approaches, 277–278 import/export agents/brokers in, 329–330 in-home shopping, 315–316 marketing research in, 192–193 medical mobility device in, 618–619 message interpretation may vary, 345 online global marketplace, 317 online shopping behavior in, 323 opportunities to consider, 51–53 research methods, 192–193 retailing systems, 322–323 risks in, 53 segmentation challenges, 102–103 www.downloadslide.com Jail sentences, 71 Japan, 57, 291, 296, 323, 463 adapting flavors for, 248 advertising expenditures, 394 advertising regulation, 411 cable-television shopping, 316 demographics, 74 disposable diaper market, 64 distribution of Coca-Cola in, 283 Fair Trade Committee, 411 food quality and safety, 523 institutional advertising in, 398 menu adaption in (McDonald’s), 83 population trends, 75 price fixing in, 475 taste preferences, 123, 248 Japanese parents, 87 Jif peanut butter, 199 Job description, 379 Joint venture, 278 Judgment, 171 K KachiWachi, 377 Keds shoes, 305 Kenya, 74, 283 Kickback payments, 148, 438 Kids Sunblock Lotion and Baby Sprays, 102 Kindle e-book readers, 58, 265 Kindle Fire, 58 Kit Kat chocolate bar, 248 Knowledge, from data, 174 Korea, 103 L Labeling, 214 Laggards, 355 Lake Cunningham Regional Skate Park, 164 Lamb Weston, 82 Landing pages, 431, 432–433 Lanham Act (1946), 209 “Last miles” shipments, 295 Late majority, 355 Latin America, 52, 66, 184, 283, 285, 296, 323, 464, 466 Laundry detergents, 42, 231, 259 Law of diminishing demand, 533 Laws about “new” products, 238–239 Americans with Disabilities Act (ADA; 1990), 618 antimonopoly laws, 71–74, 476 antitrust laws, 526 Consumer Product Safety Act (1972), 242 copyright law, 239 Credit CARD Act (2009), 467 for distribution arrangements, 273 Federal Fair Packaging and Labeling Act (1966), 214 Federal Trade Commission Act (1914), 475 Health Care Reform Act (2010), 618 Lanham Act (1946), 209 Magnuson-Moss Act (1975), 214 Medical Devices Act (1976), 617 Nutrition Labeling and Education Act (1990), 214 Robinson-Patman Act (1936), 476 Sherman Act (1890), 475 “take-back” (recycling), 276 top managers and, 526 Wheeler-Lea Amendment (1938), 475 Layaway, 137 Leader pricing, 498 Learning, 122 Leases, 466 LEED-certified homes, 663–664 Legal environment; see also Laws credit cards and, 466–467 impact of marketing strategies, 70–73 in medical mobility services, 617–619 packaging regulations, 214 pricing policies and, 474–476 LEGO Fusion, 87 LEGO Mindstorm robots, 87 LEGO Movie, The, 86, 88 LEGO promotion, 401–402 Legoland theme parks, 87 Less-developed countries distribution of Coca-Cola in, 283 population growth, 75 product counterfeiting in, 210 product life cycles in, 232 retailing systems, 322–323 transportation costs, 297 Less-than-carload (LCL) shipments, 295 “Let the buyer beware,” 72 Lever 2000 soap, 108 Liability, product, 242 Libya, 74 Licensed brand, 210 Licensing, 277 Life cycles, of retailers, 320 Lifebuoy soap, 109, 343 Lifestyle analysis, 126 Lifetime value of customers, 43–44 “Like grade and quality,” 476 Limited problem solving, 136 Limited warranties, 215 Limited-function merchant wholesalers, 326 Limited-function wholesalers, 327 Limited-line stores, 312 Line-forcing policy, 623 LinkedIn, 444 List price, 454, 464, 467–468, 468, 470–471 Listerine mouthwash, 344 Listerine PocketPak, 123–124, 206 Literacy, 74–76, 646 Living Social, 468 Local marketing, research firms (international markets), 193 Local ordinances, 72–73 Location data, 106 Logistics; see also Distribution basic considerations in, 284–285 careers in, 568 conceptual approaches, 288–289 coordinating activities among firms, 289–293 customer service perspectives of, 285–287 defined, 284 disaster relief, 291 distribution centers, 300–301 effects of, on marketing strategy planning, 522 electronic data interchange (EDI), 292 ethical issues, 293 storing function, 298–300 transporting function, 293–298 Long Term Relationship (hair care), 34 Looj, 227 L’Oréal, 495–496 “Lost Dog” Budweiser ad, 343 Louisville Eclipse baseball club, 343 Low-cost marketing research, 189 “Lowe’s Fix in Six,” 343 Low-involvement purchases, 136 Loyalty programs, 170, 205, 401 M M&Ms, 415 Macro-marketing; see also Marketing costs of, 513–515 defined, 9, 508 effectiveness of, 10 role of, “Madden NFL,” 136 Magazines, 399, 400, 401, 402, 425 Magnuson-Moss Act (1975), 71, 214 Mail surveys, 183 Mail-order catalog, 305 Maintenance, repair, and operating (MRO) supplies, 220, 258 Maintenance supplies, 220, 221 Major accounts sales force, 373–374 Mall intercept interview, 184 Malling of America, The (Kowinski), 611 Malls, 305, 611–613 Management of Cirque du Soleil, 31–32 in marketing, 32–33 use of operating statements, 547 Management contracting, 278 Manufacturer brands, 211, 212 Manufacturers; see also Production branding by, 211 as business customers, 160–162 suggested retail list price, 475–476 Manufacturers’ agent, 329 Manufacturers’ sales branches, 326 743 Subject Index J Jury of executive opinion, 558 Just-in-time (JIT) delivery, 158, 255, 290, 299 shipment modes and carriers, 296–297 shipping systems for, 295 social networks in, 444 trademark protection, 210 International markets, U.S firms marketing to, 165 Internet; see also Blogs; E-commerce; Websites as advertising medium, 402 benefits for advertisers, 403 career planning resources on, 563 digital advertising, 399 informed choices for consumers via, 523–524 marketing research via, 179–180, 184–185 mass-merchandising via, 313 nature of retailing and, 68 product assortment on, 318 for rapid and low-cost customer service, 377 researching new purchases on, 153–154 sharing opinions via, 137 as source of MRO supplies, 221–222 use of, in selected countries, 74 worldwide access to, 76–77 Internet of Things, 205 Internet retailing, 305, 316–319 Internet-based intermediaries, 12–13 Interpreting research results, 189–192 Interviews, in marketing research, 182–183 Intranet, defined, 174 Introduction stage features of, 230 planning for, 234–235 promotion in, 355 Introductory price dealing, 463 Introductory price discounts, 496 Introductory promotion, 245 Intuition, 176 Inventories just-in-time delivery, 158, 255 maintenance by suppliers, 261 storing function, 298–300 total inventory cost, 299 Inventory, defined, 298 Inventory carrying costs, 289 Inventory costs, 287 Inventory management, 301 Inventory replenishment system, 163–164 Invoice, 465 iPad, 115, 210, 233, 274 iPhone, 115, 233, 249, 318, 499 iPod, 115, 215, 233, 429 Iran, 14, 74 “Iris” (Cirque du Soliel), 31 ISO 9000, 152 Israel, 74 Italy, 57, 74, 133, 323 iTunes, 115, 463 www.downloadslide.com MapMyFitness, 198 Marginal analysis, 492–494, 665 Marilyn Monroe clothing, 305 Marital status, 128 Markdown, 553 Markdown ratios, 553 Market, defined, 89 Market analyst, 566–567 Market development, defined, 50 Market environment, 53; see also International marketing company resources and opportunities, 61–63 competitors and the competitive environment, 63–65 cultural and social environment, 73–79 economic environment, 66 forces shaping, 58, 59 legal environment, 70–73 planning grids and evaluation of opportunity portfolio, 81–82 political environment, 69–70 screening criteria to narrow down strategies, 79–81 setting whole company objectives, 59–61 technological environment, 66–69 Market exposure, 257, 258, 271–273 Market grid diagrams, 94 Market growth stage elements of, 230 in promotion, 356 Market information function, 11 Market introduction stage elements of, 230 in promotion, 355 Market maturity stage car batteries in, 357 elements of, 230–231 managing, 236 milk industry, 232 promotion in, 356 Market niche, 309 Market penetration, defined, 49–50 Market potential, 554–556 Market research online community (MROC), 184 Market segmentation defined, 93 dimensions used to segment markets, 99–103 two-step process, 93 Market segments, 94, 95–97; see also Market segmentation; Segmentation; Target marketing Market share objectives, 456–457 Market size, estimating, 108 Market testing, 245, 558 Market-directed economy, 14–16, 63 Marketers, challenges facing, 521–528 Marketing acceptance of, 24 advertising versus, arithmetic for (Appendix B), 545–559 career opportunities in, 565–571 career planning in (Appendix C), 560–573 criticisms of, 27 defining, 6–8 evaluation of, 508–509 everyday, importance of, 4, 5–6 evolution of, 16–17 hit-or-miss, 45 major tasks in, as reflection of personal values, 514 role of, in economic systems, 13–16 technology as challenge, 68 universal functions of, 11 Marketing automation software, 446–447 Marketing company era, 16–17 Marketing concept consumers’ freedom of choice and, 528–529 customer value and, 20–22 defined, 17 elements of, 17–19 744 marketing ethics and, 25–26 for nonprofit organizations, 22–23 production orientation versus, 19 social responsibility and, 23–25 Marketing dashboard, 174; see also Decision support system (DSS) Marketing department era, 16 Marketing ethics, 25–26; see also Ethics Marketing exchange, Marketing information systems (MIS) accessing information in, 174 decision support systems (DSS) and, 174–176 defined, 170 elements of, 173 imminent changes to, 171–176 major functions, 172–176 marketing dashboard and, 174 marketing model, 175–176 marketing strategy planning decisions and, 171 resistance to, 176 secondary data from, 179 Marketing management process defined, 32 process overview, 32–33 three jobs of, 32–33 Marketing managers advertising objectives set by, 395–396 career paths and compensation ranges, 566 coupons, deals, and rebates as aid to, 469 evaluating new opportunities, 31–32 pricing objectives set by, 452 priority setting for objectives, 341 special sales and, 467 wide-ranging responsibilities, 339 Marketing mix advertising success and, 410–411 business product classes and, 220 changes in, over product life cycle, 234 consumer product classes and, 216 customer as target of, 36 defined, 34 developing for target markets, 36–40, 310–311 differentiation and, 48, 109–110 “Four Ps” of, 36–39 life cycle changes, 230 producer control, 259 publicity via, 424 retailer decisions, 310–311 target marketing and, 35 typical, 34 Marketing model, 175–176 Marketing objectives, 59–61; see also Objectives Marketing orientation, 17 Marketing plan defined, 40 as guide to implementation and control, 40–43 Hillside Veterinary Clinic example (Appendix D), 574–601 implementation of, 40–43, 518 major functions, 40–43 personal, in career planning, 572–573 reasons for decisions, 518 sections of, 519–520 timing in, 518 Marketing program, 42–43 Marketing research audience profiles from, 399 case studies, 626–627, 651–652 defined, 170 effects of, on marketing strategy planning, 522 international, 192–193 in new-product development, 232, 240, 244 opportunities in, 567 options for obtaining, 170–171 scientific method and, 176 secondary data, 179 strategic policies and, 170 testing ads, 411 Marketing research process cooperation in, 177 data gathering methods, 181–189 data interpretation, 189–192 defined, 177 monitoring what others are saying, 180 in overseas markets, 192–193, 348 problem definition in, 177–178 problem solving in, 192 scientific method and, 176 situation analysis, 178–181 steps in, 177 Marketing strategy defined, 33–34 elements of, 34 personal, 561–562 Marketing strategy planning; see also Product life cycles Big Brothers Big Sisters of America example, 614–616 business product classes, 218–222 case studies, 632–633, 638–640 consumer product classes, 216–218 demographics important to, 73 differentiation and positioning, 106–110 environmental overview, 58–59 focus as result of, 516–517 Four Ps, 517–518 importance of, 43–44 logic, creativity, and, 515–518 MIS inputs to, 171 narrowing-down process, 88–91 new-product development and, 229 positioning statement for direction, 109–110 product class in, 215 for product lines, 201 product management and, 229 resources that guide, 62–63 screening criteria, 78–81 segmentation process steps, 99–103 selecting opportunities, 46–53 sophisticated segmentation techniques, 104–106 target markets and mixes and, 34–40 tools for, 81–82 understanding markets, 88–91 value pricing in, 474 written plans, 40 Markets, understanding, 88–91; see also Segmentation; Target marketing Markup, 483–486, 552–553 Markup chain, 484, 485 Markup conversion, 552–553 Markup percent, 665 Marriage, 128, 129 Maslow’s Hierarchy of Needs, 120 Mass market, 34–35 Mass marketers, 34 Mass marketing, 34 Mass production, 10 Mass sellers, 344 Mass selling, 392 defined, 38, 338 effects of, on marketing strategy planning, 522 Mass-merchandisers, 314, 485 Mass-merchandising concept, 313–315 Materialism, 514 Materials, component, 220, 221 Maturity stage features of, 230–231 planning for, 236–237 promotion in, 356 MaxSnax, 245 Media, defined, 424 Median age (U.S.), 77–79 Median family incomes (U.S.), 119 Medical Devices Act of 1976, 617 Medical research, 67 Mega-agency (advertising), 410 Meow Mix Tender Centers, 228 www.downloadslide.com N O Oakley sunglasses, 271 Obesity, 507–508 Objectives for advertising, 395–399 case study, 640–641 as guide to marketing strategy, 59–61 hierarchy of, 60–61 for market research, 177 of nonprofits, 23 of owned media, 431 personal, developing, 571–572 place decisions based on, 257–259 of pricing, 455–458 for promotion, 341–344 to set firm’s course, 59–61 Observation, data gathering from, 181, 185, 186 Odd-even pricing, 500 OEM (original equipment market), 221 Olay, 42 Oligopoly, 63, 474, 540, 542–543 Omnichannel strategy, 306, 319 Onboarding, 421, 422 1-Click checkout technology (Amazon), 57 One Source service (John Deere), 144 One-price policy, 458 Ongoing sales promotion, 417, 421, 422 Online advertising, 404 Online auctions; see Auction sites; E-commerce Online bookstores, 233 Online communities, 154, 182, 184, 197 Online experiments, 187–188 Online focus groups, 182 Online games, 121 Online monitoring, of one’s own business, 180 Online multiplayer games, 33 Online retailers, 309, 316–319 Online review, 137 Online selling; see E-commerce; Websites Online seminars (webinars), 421 Online shopping, 57 Online shopping behavior, across nations, 323 Online surveys, 183 OnStartups (blog), 421 Open community, 435 Open-ended questions, 181 Operating ratios, 551 Operating statement, 545–549, 550 Operating supplies, 220, 221–222 Operational decisions, 41–42 Operational linkages, 158 Operational market segments, 95, 96 Opinion leader, 130, 131, 355, 437 Opportunities Amazon example, 57–58 attractive, defined, 33, 44–46 breakthrough opportunities, 31, 45, 57, 64 from innovation, 228–229 international, 51–53 in international markets, evaluating, 82–83 limited by company resources, 61–63 planning grids to evaluate, 81–82 selecting, in marketing strategy planning, 45–53 selecting in strategy planning, 81–82 S.W.O.T analysis and, 46, 47, 242 types to pursue, 49–51 from understanding markets, 88–91 Option evaluation, 624–625 Orange juice packaging, 206 Order getters, 367–368 Order takers, 368–369 Order-getting, 367–368 Order-taking, 368–369 Oregon State University, 243 Oreo cookies, 356 Organizational buying buyer-seller relationship, 150, 156–160 decision-making process, 150, 152–155 defining the problem, 150, 151–152 745 Subject Index Nabisco Belvita Breakfast Biscuits, 228 NAFTA; see North American Free Trade Agreement NAICS; see North American Industry Classification System (NAICS) Naming markets, 91–93 Narrowing down for selection strategy, 46, 48–49, 79–81, 88–91, 93 NASCAR races, 50 National Basketball Association (NBA), 197 National brands, 211, 451 National Geographic magazine, 443 National income forecast, 555 Nationalism, 69 Native advertising, 409 Natural products, 220 Nature, product ideas from, 243 NBCNews.com, 403 Needs; see also Customer needs changing, 514 culturally learned, 123 types of, 120–121 unmet, 515 wants versus, 119 Negative image, 207 Negative information, 523 Negative publicity, 137 Negative reviews, 439 Negotiated contract buying, 159 Negotiated price, 504 Net, 465 Net profit, 548 Net sales, 548 Netherlands, 122 New business, strategy planning for, 625–626 New product, defined, 237 New unsought products, 216, 218, 272 New York City, soft drink ban, 24 New Zealand, 325, 411 New-product concept, life cycle of, 230 New-product development; see Product development New-product introduction; see Introduction stage New-product planning, 237–239 Newsletters, 435 Newspapers, 31, 275, 399, 402, 425, 426 New-task buying, 152, 153 Niche, 309 Nigeria, 74, 75, 230 Nike Flyknit, Nine-box planning grid, 81–82 No Mess Pens (WD-40), 188–189 Noise (communication), 344–345, 347 Nonadopters, 355 Noncumulative quantity discounts, 465 Non-directive interviews, 181 Nonprice competition, 457 Nonprofit organizations challenges of, 23 competition and, 23 as customers, 144 marketing by, marketing concept applied to, 22–23 measures of success, 18 prices set to increase market share, 456 pricing objectives, 455 profit measurement by, 23 “selling” unsought products, 218 supporter satisfaction, 511 Nonrecognition of brands, 207 North America, 31 North American Free Trade Agreement (NAFTA), 70 North American Industry Classification System (NAICS), 160–162 North Korea, 14 Norway, 74 Notebook computers, 48 Novida, 230 Nutrition labeling, 214, 528 Nutrition Labeling and Education Act (1990), 214 Merchandisers, 370 Merchant wholesalers, 326, 327 Message channel, 345, 347 “Me-too” products, 80, 106, 231, 412 Mexico, 57, 70, 74, 165, 296, 500 “Michael Jackson ONE” (Cirque du Soleil), 31 “Michael Jackson THE IMMORTAL World Tour” (Cirque du Soleil), 31 Michigan State University, 76 Microchips, 232 Microcomputer sales, 255–256 Microfinancing, 646 Micro-macro dilemma, 23 Micro-marketing, costs of, 511–513 defined, 508 measures of effectiveness, 510–511 Milk promotion, 121, 232 Milk sales, 211, 232 Mill supply houses, 327 Millennials, 78, 305, 306, 444 Mindstorm robots, 87 Mini Cooper, 397 Minimum prices, 72–73, 474–475 Minute Maid Squeeze-Fresh, 245 Mission statement, 59–60 Missionary salespeople, 369–370, 385 Mobile advertising, 400, 402–407, 426; see also E-commerce; Internet Mobile grocery shopping, 318 Mobile Personality Profiler, 104 Mobile phones; see Smartphones Modified rebuy, 152 Mom Blog Society, 436 “Mommy bloggers,” 436 Money-back guarantees, 323 Mongolia, 406 Monopolistic competition about, 543 defined, 543 demand curve, 230 dimensions of, 540 elements of, 63 pricing in, 472 Monopoly, 540 Monopoly markets, 63 Moral standards; see Ethics Mortgage market crisis, 24, 66 Mortgage scandal, 24 MostChoice.com, 406 Motel guest product-markets, 105–106 Mothers Against Drunk Driving, 399 Motivation, in sales, 380–382 Motrin tablets, 356 Mountain Dew, 110, 212 Movie distribution, 265 Movie tickets, 203 MP3 players, 115 MRO; see Maintenance, repair, and operating (MRO) supplies MRO supplies; see Maintenance, repair, and operating (MRO) supplies Muck Rack (website), 432 Multichannel distribution, 273–274 Multi-channel shoppers, 306, 318, 319 Multicultural markets, 131; see also Cultures; International marketing Multiple buying influence, 149 Multiple target market approach, 96 Music, digital, 265 Music industry, 175 Mussels, 243 My Choice (UPS), 201 My Macy’s program, 305–306 MyCVSsmartphone app, 309–311 MyFitnessPal, 198 www.downloadslide.com Organizational cultures, 246 Organizational customers buyer-seller relationship, 150, 156–160 buyer-seller relationships, 143–144 decision-making process, 150, 152–155 defining the problem, 150, 151–152 distinctive traits, 145–150 government purchasing, 164–165 information sources used by, 153 kinds of buying processes, 152–153 manufacturers as customers, 160–162 model of business and organizational buying, 150–160 retailer and wholesaler purchasing, 163–164 service producers as customers, 162 types of, 144–145 understanding, for marketing planning strategy, 145 Original equipment markets (OEM), 221 Outbound promotion, 421 Outdoor advertising, 400, 426 Outsourcing of professional services, 222 specific adaptations and, 159 “OVO” (Cirque du Soleil), 31 Owned media about, 427 benefits and challenges of, 427 branded websites as, 425, 426 careers in, 569–570 case study, 641–643 creating, that customers can use, 430–435 defined, 424 GEICO example, 335-336 how customers find it, 431 promotional objectives, 431 types of, 431 Ozone layer, 525 P Packaging, 36 benefits to consumers and marketers, 212 branding and, 213 defined, 212 and generation of trash, 213 green packaging, 213 Method Products, 451–452 socially responsible, 68, 213 sustainable packaging, 213 Packaging specialists, 567 PackBot, 227 Paid media about, 426–427 benefits and challenges of, 427 defined, 424 Pain Squad Mobile App, 249 Pakistan, 74 Pampers, 34, 64, 344, 414 Pass-along, 429, 430, 431 Patent, 239 Patent law, 239 Pay-for-results ads, 400 Payment methods, for salespeople, 381–382 Payment terms, 465 Pay-per-click advertising, 403 Peer-to-peer network (car-sharing), 127 Penetration pricing policy, 462 “People against dirty” campaign, 451 People meter, 186 “People-oriented” jobs, 563–564 Pepsi Soccer Carnival, in China, 340 Pepto-Bismol, 131 Perception, role in behavior, 121 Perceptual mapping, 107 Performance clothing market, 197–198 Performance measurement, 250 Perishability of services, 203 Perishable items, 295 Personal analysis, in career planning, 562–565 746 Personal computer sales, 255–256 Personal interview surveys, 184 Personal marketing plan, 572–573 Personal needs, 120–121 Personal objectives, developing, 571–572 Personal selling; see also Salespeople advantage, 344 basic sales tasks, 367–371 in business markets, 352 careers in, 568 case study, 636–637 as communication process, 38, 344–350 compensation and motivation, 380–382 customer service and, 363–364, 371–372 defined, 38, 337 effects of, on marketing strategy planning, 522 elements of, 37–38 ethical issues, 386–387 to final consumers, 352 importance of, 365–367 information technology for, 378–379 key steps in process, 383 as largest operating expense, 365 organizational structures for, 372–378 prospecting and presenting, 383–387 selecting and training representatives, 379–380 structure, 372–378 tasks, 365 techniques, 383–387 Personalization, 106; see also Customer relationship management (CRM) Personalized shopping experience, 318 Persuasive promotion, 231, 341, 342 Pert Plus shampoo, 483 Pet food distribution, 186, 258 Phase-out strategy, 237 Philadelphia Cream Cheese, 236–237 Phony list prices, 475 Photo sharing services, 444 Photoshop, 496 Physical distribution, 37 Physical distribution (PD); see also Distribution; Logistics coordinating activities among firms, 289–293 coordination of elements, 292 customer service, 285–287 defined, 284 ethical issues, 293 factors affecting service levels, 288 focus on whole distribution system, 288–289 total cost approach, 289 trade-offs of costs, service, and sales, 286–287 Physical handling, 300 Physiological needs, 120, 121 Picasa (Google), 499 Pinterest, 443–444 Pioneer, 233, 235 Pioneer advertising, 397 Pipelines, 295, 296 Pirated goods, 210 Pivot, 235 Place; see also Channels of distribution; Distribution; Logistics defined, 256 in marketing plans, 520 marketing strategy planning decisions for, 256–257 operational decisions and, 42 in Potbelly Sandwich Works’ core strategy, 610 potential target market dimensions and, 99 in retailer marketing strategy, 310 strategic policies and, 42 system not automatic, 258 in target marketing/marketing mix, 37, 39 Toddler University example, 40 Place decisions, 257–259 Plain-language contracts, 528 Planetfeedback.com, 510 Planned economies, 13–14 Planned obsolescence, 239 Planning; see Marketing plan; Marketing strategy planning Planning grids, 81–82 Plant-based plastics, 68 PlantBottle packaging, 68 Plastic bottles, 68 PMs, 468 Podcasts, 421 Poland, 348 Political environments, 69–70 Population for selected countries, 74 trends, 75 trends in U.S consumer market, 77 of United States, 76 Population (marketing research), 190 Population growth, 74, 75, 77–79 Pop-up ads, 404–405 Pop-up blocker software, 405 Positioning defined, 106 focusing marketing strategy with, 89 LEGO example, 87–88 in marketing plans, 519 price sensitivity and, 495–496 Positioning analysis, 108–109 Positioning statement, 109–110 Positive reinforcement, 123 Post-purchase regret, 137 Powerade, 484 PowerPoint, 204 Practical value, 429 Preferences, 124, 208 Premium pet food, 258 Prepared sales presentation, 385 Press kits, 436 Prestige pricing, 501 Pretesting, of advertising, 411 Price Check app (Amazon), 57 Price discrimination, 476 Price equation, 454 Price fixing, 475 Price flexibility policies, 476 Price lining, 500 Price points, 624 Price sensitivity, 494–496 Price setting average-cost approach, 486–488 basic approaches to, 482 bidding, 503–504 break-even analysis and, 491–492 costs, types of, 488–491 demand-oriented approaches, 494–501 for full product lines, 501–502 with marginal analysis, 492–494 markup approach, 483–486 negotiating, 504 Samsung example, 481–482 as strategy decision, 482 Price wars, 58, 481 Price-cuts, 50 Price-cutting, 460 Price-oriented bargain hunters, 323 Price-oriented shopper, 318 Prices; see also Price setting; Pricing policies administered, 458 allowance policies/off list prices, 467–468 customer perceptions of quality and, 474 defined, 452, 454 dimensions of, 458 discount policies, 464–467 effects of, on marketing strategy planning, 522 flexibility in, 456 impact of cuts on promotion, 357 linked to product life cycles, 460–464 in marketing plans, 520 www.downloadslide.com in retailer marketing strategy, 310 strategic policies and, 42 target marketing and, 36 in target marketing/marketing mix, 36, 37, 39 Toddler University example, 40 virtual products, 265 warranty policies, 214–215 Professional services, 220, 222, 258; see also Services Profit, defined, 18 of nonprofit organizations, 23 in triple bottom line, 19 Profit margins, case study, 649–650 Profit maximization, 493–494 Profit maximization objective, 456 Profit range, 493 Profitability of ideas, 240 Profit-making firms, role of marketing in, Profit-oriented objectives, 455–456 Profits; see also Prices average-cost pricing and, 486–488 in break-even analysis, 491–492 case study, 631–632 competition attracted by, 513 as customer equity, 43–44 defined, 492, 493 evaluating new product ideas for, 243–244 flexible-price policies and, 458–460 gross, 548 impact of price cuts on, 460 increasing by selective distribution, 272 in market maturity stage, 236–237 measurement for nonprofits, 23 pricing objectives based on, 455–456 relation to sales, 230 in retailing, 320 social responsibilities versus, 24–25 strategy screening criteria based on, 80 as success measure, 18 of supermarkets, 313 Program management approach, 644 Promotion; see also Advertising; Sales promotion adoption processes and, 353–355 blended plans, 350–353, 355–357 blends, 339–341 budgeting for, 357–358 to business customers, 352 case studies, 640–645, 656–658 communication process in, 344–350 criticisms of, 349–350 customer service in, 371–372 customer trust and, 425 customized, 305–306 defined, 336 ethical issues, 349–350 by fast food restaurants, 391–392 to final consumers, 352 inbound, 421 integrated plans, 350–353 introductory, 245 market penetration, 49–50 in marketing plans, 520 during maturity stage, 231 methods, 337–338 objectives, 341–344 operational decisions and, 42 outbound, 421 planning, integrating, and managing, 339–341 in Potbelly Sandwich Works’ core strategy, 610 product life cycle adaptations, 355–357 in retailer marketing strategy, 310 strategic policies and, 42 in target marketing/marketing mix, 37, 38, 39 timing and relevance, 348–349 Toddler University example, 40 by trademarks and symbols, 206 747 Subject Index defined, 50 market strategies based on, 50 new ideas from nature, 243 new-product planning, 237–239 process steps, 240–245 product failure and, 239–240 Roomba example, 227-228 success factors, 246 Product liability, 242 Product life cycles defined, 229 impact on promotion, 355–357 management, 229–232 market specific, 232 new product management, 227–228 of a new-product concept, 230 not for individual products, 231 pricing policies and, 460–464 stages of, 229–232 strategy planning for different stages of, 234–237 varying lengths, 232–233 Product line, 201 Product line length, 201 Product managers, 247–248, 567 Product obsolescence, 512 Product planner, 567 Product quality, 200; see Quality Product safety, 242 Product space, 107, 108 Product type, naming markets for, 92 Product web pages, 433 Product-bundle pricing, 502 Product-consumer separation, 10–11 Production; see also Manufacturers defined, in planned economy, 13–14 specialization, 10–11 Production era, 16 Production orientation defined, 17 marketing concept versus, 19 Product-market; see also Product life cycles basic features, 90 boundaries, 92 defined, 91 generic definitions and, 92 naming, 91–92 screening criteria for selecting, 79–81 segmentation dimensions, 99–103 segmentation overview, 93–99 segmentation process steps, 99–103 shared channel focus on, 266 Product-market commitment, 266 Products; see also Product development; Product life cycles basic attributes of, 199–201 basic differences between, 202–204 branding, 204–212 business product classes, 218–222 consumer product classes, 216–218 of convenience (food) stores, 315 defective, 248 defined, 200 effects of, on marketing strategy planning, 522 goods and services, differences between, 202–204 impact of innovation, 228–229 inspecting online, 317–318 Internet of Things and, 205 in marketing plans, 519–520 operational decisions and, 42 packaging strategies, 212–214 in Potbelly Sandwich Works’ core strategy, 610 potential target market dimensions and, 99 product classes for marketing strategies, 215 product decisions for marketing strategy planning, 199 mass-merchandising approaches, 313 as measure of value, 14 objectives and policies, Method Products example, 451–452 objectives for, 455–458 online and physical store comparison, 316–317 operational decisions and, 42 in planned economy, 13–14 in Potbelly Sandwich Works’ core strategy, 611 with pure competition, 63 relation to value, 20 in retailer marketing strategy, 310 strategic policies and, 42 strategy dimensions, 452–455 in target marketing/marketing mix, 37, 38, 39 Toddler University example, 40 Pricing careers in, 570 case study, 627–628 Pricing policies allowances/off list prices, 467–468 case studies, 647–648, 663–664 customer value and, 471–474 discounts, 464–467 flexible, 458–460 geographic, 470–471 introductory, 461 legal issues, 474–476 over the product’s life cycle, 460–464 penetration pricing, 462 on price levels, 460–464 rationale for, 458 Primary data, 179, 189 Primary data gathering, 189 Primary demand, 355 Prime contractors, 164 Print advertising, 399 “Print Lizard” website, 181 Prius, 609–610 Privacy consumer tracking and, 68-69, 350, 404 cookies and, 404, 406–407 mobile advertising and, 406–407 protection of, 525–526 Private brands, 211 Private label, 211 Private research firms, 188 Private Selection (Kroger), 211–212 Private warehouses, 300 Prize money allowances, 468 Proactive customer service, 372 Problem customers, 371 Problem definition, 177–178 Problem recognition, 134 Problem solving for consumer needs, 134–138 customer service role, 371–372 defining the problem, 150, 151–152, 177–178 levels of, 135–136 in marketing research, 192 online customer resources, 377 personal selling as, 368 by salespeople, 385 Problem-solving continuum, 136 Procurement department, 148 Procurement website, 154 Producer-led channels of distribution, 268–269 Producers of goods and services, 144 minimum retail prices set by, 475–476 order getters of, 367–368 order takers of, 368–369 personal selling for, 367–368, 368–369 Product advertising, 396 Product assortment, 201 Product champion, 247–248 Product dependability; see Quality Product development company support of, 246–247 www.downloadslide.com Promotion blend, 424 Promotion budget, 357–358 Proposals, 154 Prospecting, 383 Protective packaging, 212 Prototypes, 244–245 PRWeb, 436 PS3 third-generation game console, 462 PSSP hierarchy of needs, 121 Psychographics, 126, 169 Psychological influences, on consumer behavior, 119–127 Psychological pricing, 499 Public interest groups, 15 Public relations (PR), 436–437 careers in, 569 defined, 339 press kits and, 436–437 Public utilities, 456 Public warehouses, 300 Publicity, 31 advertising versus, 424 careers in, 569 defined, 38, 338, 423 ethics, 349–350 HubSpot example, 421–422 integrating, into promotion blend, 424 international dimension, 393–394 negative, 137 Publishers, 249 Puffery, 412 Pulling, 351, 352 Purchase discount, 549 Purchase situations, effects on consumer behavior, 133–134 Purchasing agent, 567 Purchasing functions decision-making process, 152–155 of governments, 164–165 of manufacturers, 160–162 organizational decision-making systems, 152–155 relationships between buyers and sellers, 156–160 of retailers and wholesalers, 163–164 of service providers, 162 Purchasing managers, 148, 157 Purchasing specifications, 151 Pure competition, 63, 540, 541 Pure Food and Drug Act (1906), 72 Pure market economy, 14 “Pure services,” 13 Pure subsistence economy, PureBond plywood, 243 Purex Complete, 398 Push money, 476 Push money allowances, 468 Pushing, 350, 351, 352 Q Q-Tips, 204 Qualifying dimensions (segmentation), 99, 101 Qualitative criteria, product-market screening, 79, 80 Qualitative marketing research, 181, 182 Quality certification, 152 of components, 221 consistency of, 203 defined, 200 differentiation by, 217 importance to organizational customers, 146, 147 managing, 248–251 marketing with warranties, 214–215 poor, cost of, 146, 147 price and customer perceptions, 474 of products, 200–201 relative quality, 200 748 of services, 202, 203 total quality management (TQM), 248–249 training for, 250 Quality certification, 152 Quality of life, 514 Quantitative criteria, product-market screening, 79, 80 Quantitative marketing research, 182 Quantity, discrepancy of, 264, 265 Quantity discounts, 464–465 Questioning, 181, 185 Questionnaires, 182–184, 191 Quiet Steel, 367 Quirky marketing, 610–611 Quotas, 13, 382 R R&D (Research and development), 246–247 Rack jobbers, 328 Radio, 426 Radio advertising, 400 Radio frequency identification (RFID), 300 Rail shipments, 286, 294–295, 297–298 Random selection, 190 Rapid prototyping, 244–245 Ratings, 438–439 Rationality, buying and, 136–137 Ratios markdown, 553 operating, 551 Raw materials, 220 Rebates, 468–469 Rebuys, 152, 164 Receiver (communication), 344 Recessions, 66 Recognition of brands, 207, 208, 209 Recommendation, of product or brand, 430 Record labels, 175 Recycling, 276 Red Mango, 358 Redistribution centers, 301 Reference group, 130 Reference price, 497–498 Referral programs, 438 Refrigeration market, in rural India, 238 Regaining lost business (case study), 660–663 Regional malls, 305 Registration (trademark), 209 Regrouping activities, 264, 265 Regularly unsought products, 216, 218 Regulations; see also Governments; Laws advertising, 411–412 impact on marketing strategies, 70–73 for social benefits, 24–25 Reinforcement, 123 Relationship, marketing as, Relationship-building in sales, 376–377 social media used for, 336 Relationships building and maintaining with value, 21–22, 43–44, 62–63 building with e-mail, 435 buyer-seller, 143–144, 156–160 cooperative, 157 customer lifetime value and, 43–44 within distribution channels, 266–269 between firms and suppliers, 156–160 as goal of marketing, importance to organizational customers, 149–150 nurturing, by order takers, 368–369 as sales role, 367–369 strengthening, 50 via social media, 445 Relationship-specific adaptations, 159 Relative quality, 200 Relevant target market, 472 Reliability, 146 Reminder advertising, 398 Reminding objective, of promotion, 342 Repair supplies, 220, 258 Repeat buying, 465 Repositioning, 109, 481 Representative samples, 182, 183, 190, 191 Reputation.com, 349 Requisition, 150 Research (marketing); see Marketing research; Marketing research process Research and development (R&D), 246–247 Research firms, 188 Research proposal, 181 ResellerRatings, 317 Response, 122 Response rate, for survey, 183 Responses in learning process, 122 Retailer life cycles, 320 Retailer-led channel of distribution, 269 Retailers assortment expansion, 312–313 avoiding price competition, 311–312 benefits of, 12 branding by, 211–212 Census Bureau data, 261 competitive pressure of, 321 convenience and, 315–316 conventional, 311–312 corporate chains, 308 customers’ wants as guide for, 155 evolution and changing of, 319–322 high-price competition, 312–313 international variations, 322–323 Macy’s evolution, 305–306 marketing mix issues, 310–311 mass-merchandising, 313–315 multichannel shopping problems, 319 nature of offerings, 312 numbers of, in the United States, 308 online strategies, 316–319 order getters of, 368 order takers of, 369 as organizational customers, 163–164 personal selling for, 368, 369 purchasing functions, 163–164 sales volume, 308 specialization, 309 store strategies, 310–313 strategy planning, 307, 309–311 technology-driven, 321 types of, 312 in typical channel of distribution, 307 Retailing careers in, 568 consumer spending, 308 defined, 308 Internet and, 316–319 nature of, 307 through cooperatives and franchisors, 308–309 wheel of retailing theory, 320 Retargeting, 404 Retention, 44, 122, 375 Return, 547–548 Return on investment (ROI) as reflection of asset use, 553–554 as screening criterion, 79, 243–244 Reverse channels of distribution, 275–277 Reverse engineering, 242 Reviews from customers, 15, 438–439 “Ride,” 175 Ridesharing, 127 “Rifle approach” (target market), 34 Rio (MP3 player), 115 Risk reduction, with multiple suppliers, 159 Risk taking, 11 Risks in international marketing, 53, 82–83 Risperdal (drug), 148 Rival firms, 64 Robinson-Patman Act (1936), 71, 476 www.downloadslide.com S Service provider, training of, 250 Service quality; see Quality Service retailing, 308 Service wholesalers, 327 Services; see also Products accumulating, 265 added to products for differentiation, 203–204 brand rejection costs, 207 as business product class, 220, 222 direct channels for, 261 as organizational buyer, 162 perishability of, 203 products as, 202–204 quality, 249–250 quality of, 202, 203 seasonal discounts and, 465 “7 under 6” promotion, 391 787 Dreamliner, 299 “Sex sells,” 525 Shakti Ammas, Shaktimaan, Shared activities, 158 Shared information, in business markets, 157–158 Shelf space, 313 Sherman Act (1890), 71, 475 Shipping by sea, 296 Shipping costs, 294 Shipping methods, 294–298 Shoe polish marketing, 178, 237 Shoe retailers, 39–40, 98, 103 “Shoe rides,” 40 Shopping habits, technology’s impact on, 68 Shopping products, 216, 217 Shortages, 286 “Shotgun approach” (mass marketing), 34 Showrooming, 319 Silicon Valley, 160 Silly Bandz, 233 Simple trade era, 16 Simply for Sports, 197 Simply Lemonade, 123 Singapore, 74 Single parents, 129 Single target market approach, 96 Single-line mass-merchandisers, 314–315 Single-line stores, 312 Single-line wholesalers, 327 Singles markets, 129 SitORSquat app, 435 Situation analysis, 178–181, 519 Skeleton statement, 547 Skimming price policy, 461 Skittles, 180 Slingshot water purification unit, 283 Slogans, 396 Slotting allowances, 467–468 Smart TVs, 482 “Smartclean technology,” 452 Smartphones as advertising gamechanger, 406 credit cards accepted on, 233 Internet of Things and, 205 mobile advertising and, 404 price checking with, 495 Shazam app, 175 tracking of user by companies, 173 SmartWay program (EPA), 298 Snickers candy bars, 187 Soap submarkets, 107–109 Social and cultural environment, 73–79 Social class, 129–130 Social currency, 429 Social influences, on consumer behavior, 128–131 Social media careers in, 569–570 content types and examples, 445 defined, 439 digital advertising, 399 many-to-many communication, 440 749 Subject Index Safety consumer choice versus, 24 laws, 70–73 needs, 120, 121 of products, 242 screening for, 242 Salary, 381, 650–651 Sale price, 467 Sales; see also Personal selling growth factors, 230 in operating statement, 546 personal, 38 relation to profits, 230, 231 software for, 151 Sales contests, 338 Sales decline, 231 Sales decline stage, 237, 357 Sales era, 16 Sales force, size of, 375–376 Sales forecast, 554–556 Sales managers, 339, 382 Sales presentation, 384–385 Sales promotion; see also Advertising; Promotion activities, 413 careers in, 569 defined, 38, 338, 412 for different targets, 415–417 effects of, on marketing strategy planning, 522 international dimension, 393–394 management challenges in, 414–415 objectives, 412–413 overview, 412–414 spending on, 413–414 targeting for direct response, 345–346 types of, 415–417 uneven results, 392 Sales promotion managers, 339 Sales quota, 382 Sales territory, 374 Sales-oriented objectives, 456–457 Salespeople; see also Personal selling adjusting to cultural influences, 364–365 basic sales tasks, 367–371 case studies, 627–628, 637–638, 648–649 communication with wholesalers and retailers, 350 compensation and motivation, 380–382 as customer helpers, 365–366 forecasting by, 558 input on purchasing specifications, 148 main responsibilities of, 365–366, 367–372 in organizational markets, 148, 150 price adjustments by, 460 price versus, case study, 648–649 as representative of whole company, 366 selecting and training, 379–380 as strategy planners, 367 in telephone selling, 374 types of, 369–371 Samarin brand, 345 Sample (population), 190 Samples (product), 131, 133 Sarbanes-Oxley Act (2002), 165 Satisfaction guarantees, 215 Saudi Arabia, 74, 153 Scanners, 163–164, 186–187, 411, 459 Scientific method, 176 Scooba, 227 Scrambled merchandising, 320 Screening, of new ideas, 242–243 Screening criteria product-market, for small retail and wholesale distributors, 80 ROI as, 243 for strategy selection, 47, 79–81 Search engine ads, 405 Search engine optimization (SEO), 428, 429, 436 Search engines, 13 ethical issues, 406–407 in marketing information systems, 179–180 in marketing research, 179–180 publicity via, 405 to research new purchases, 153–154 shortcomings, 179 Search.twitter.com, 180 Seasonal discounts, 465 “Second Mile” business philosophy, 607 Second thoughts, about a purchase, 137 Secondary data defined, 179 in international markets, 193 time and money costs, 189 Second-mover advantage, 233 Securock roofing material, 346 Segmentation as aggregating process, 94 case study, 628 dimensions of, 99–103 focusing marketing strategy with, 89 LEGO example, 87–88 in planning process, 93–99 with pricing strategies, 469 purpose of, 48 sophisticated techniques, 104–106 in strategy planning, 48 Segmenters, 95, 97–98 Segmenting, 94, 108–109 Segmenting dimensions for business/organizational markets, 101 relevant, finding, 101 Segments of one, 106 Segway Human Transporter (HT), 619–621 Selection, of salespeople, 379–380 Selective demand, 356, 397 Selective distribution, 271–273 Selective exposure, 121 Selective perception, 122 Selective retention, 122 Self-driving car, 238 Self-serve, 305 Sellers, marketing mix of, 147 Selling, marketing versus, Selling agents, 330 Selling formula approach, 386 Selling function, 11; see also Personal selling; Sales Selling price, 484 Senior citizens as powerful demographic force, 77–78 remote consultation for, 228 research about, 186 Sensodyne toothpaste, 96 Sentiment analysis, 180 SEO (search engine optimization), 428, 429, 436 Separation, 265 Separation in time, 10 Separation in values, 10 Separation of information, 10 Separation of ownership, 10 Sequential price reductions, 497 Service firms, 261 Service guarantees, 215 Service mark, 204 Service merchant wholesalers, 326 “Robohand,” 67 Robots, 227–228 Robots (online software), 406 ROI; see Return on investment (ROI) “Roller Skating Babies” video, 430 Rollout, of new products, 245 Romania, 74 Roomba vacuum cleaner, 227–228 Routinized response behavior, 136 Ruhr Valley, 160 Rules of the game, 15 Russia, 74, 75 www.downloadslide.com Social media—Cont monitoring product use via, 180 needs created by, 134–135 objectives, 445 paid, owned, and earned media on, 439 proactive customer service via, 372 promotion on, 197, 358 publicity via, 405 as relationship builder, 336 as social influence, 130–131 traditional media versus, 439–440 Vine, 343 Social media manager, 339 Social media platforms Facebook, 441–442 Instagram, 441, 443 international, 444 LinkedIn, 441, 444 other social networks, 444 Pinterest, 441, 443–444 Twitter, 441, 442–443 Social needs, 120, 121 Social network advertising, 404 Social networking, 154, 407 Social responsibility, 524; see also Ethics; Green choices as basic marketing challenge, 23–25 of consumers, 526–528 defined, 23 Nike’s and outsourcing of manufacturing, objectives based on, 19 for outsourced manufacturing, for outsourced manufacturing (ethical dilemma), 293 Socialmention.com, 180 Sofia the First, 244 Soft drink ban dilemma, 24 Software; see also Customer relationship management (CRM) analytic, for transportation and environment, 298 customer relationship management (CRM), 378–379 Easy Analytic Software, Inc (EASI), 103 to manage social media, 446 marketing automation software, 446–447 for MIS systems, 174 online media and, 446–447 pop-up-blocker, 405 product bundles in, 502 robots (online software), 406 sales support, 151, 378–379 statistical packages, 189 Website analysis software, 186 Solar power, 466 Solutions selling, 368 Somalia, 74 Sorting, of products for distribution, 265, 266 Source (communication), 344 Sourcemap online site, 291 South America, 11, 31, 143, 211, 323 South Korea, 322 Southeast Asia, 457 Sovaldi (drug), 473 Spain, 57, 74, 158, 260, 371 Spam messages, 407, 435 Spatial separation, 10, 11 Special K Red Berries, 473 Special promotion allowances, 476 Specialists in distribution channels, 262–263, 264–266 as collaborators, 12 Specialization, 10 of ad agencies, 410 in distribution channels, 266–267 evolution of, 16 in production, 10–11 of salespeople, 374–375 Specialized advertising media, 402, 405 Specialized services, 220 750 Specialized storing facilities, 299–300 Specialty products, 216, 218, 258, 271 Specialty shop, 312–313 Specialty wholesalers, 327 Specifications, of organizational customers, 151, 152 Spiffs, 468 Splenda, 124 Sponsored links, 153–154, 335 Sponsored messages, 391, 407 Sponsored search ads, 405 Sponsorships, 426 Sports teams, ticket pricing by, 459 Spying on competitors, 65 Standardization and grading, 11 Standardized components, 221, 654 Staples (products), 216, 218, 258 Star Wars, 131 Star Wars LEGO kits, 87 State laws, 72–73 Statistical Abstract of the United States, 180 Statistical packages, 189 Statistics Canada, 180 Status quo pricing objectives, 457 STEPPS (Social currency, Triggers, Emotion, Public, Practical value, Stories), 429 Stereotyping, 129, 131 Stocking allowances, 467–468 Stock-keeping unit (SKU), 201 Stockturn rate, 485, 486, 549–551 Stoney Ginger Beer, 283 “Stoplight” evaluation method (General Electric), 82 Stories, 429 Storing, defined, 298 Storing function, 11, 13, 298–300; see also Inventories Straight commission, 381 Straight rebuy, 152, 164 Straight salary, 381 Strategic (management) planning, 33 Strategic planning grids, 81–82 Strategy adaptation, 69 Strategy planning; see Marketing strategy planning Streaming service, 127, 175, 232, 426 Strengths; see also Competitive advantage building on (LEGO), 87 finding within firms, 61–62 Strengths, weaknesses, opportunities, threats (S.W.O.T.) analysis, 46, 47, 242 Strong brands, 356 Suave shampoo, 213 Subcultures, 131 Submarkets, 94–98, 107, 108; see also Segmentation; Target market Subprime mortgage crisis, 66 Subscription data services, 188 Subsistence economies, Substantial market segments, 95 Substitutes competitor analysis and, 64 defined, 536–537 in generic markets, 90 positioning against, 110 price sensitivity and, 494–495 in various competitive environments, 63 Suma system, 291 Sunkist Fruit Gems, 210 Sunkist Lemon Bar mix, 210 Sunkist orange soda, 210 Super Bowl ads, 343 Supercenters, 305, 314 Superiority claims, 398 Supermarkets, 313, 320, 321 Supplemental warranty, 215 Supplier performance, 159–160 Suppliers government approved, 164 markets as seen by, 537–539 proposals from, 154 relationships with, 156–160; see also Intermediaries; Wholesalers Supplies maintenance, repair, and operating (MRO), 221 Supply, heterogeneous, 9, 10, 15 Supply and demand competition and, 540–543 heterogeneous, 9, 10, 15 size of market and price level and, 539–540 Supply chain defined, 290 in distribution, 290–291 Supply curve, 538–539 Supporting sales force, 369–371 Supporting salespeople, 369 Suburban regional shopping malls, 611–613 Surroundings influence, on purchase situation, 133 Survey Monkey, 183 Survey research, 182–184, 191, 558 Sustainability, 3, 45; see also Environmental issues; Green choices Coca-Cola’s commitment to, 283 defined, 79 in packaging, 68, 213 in product design, 213 product-market screening for, 79–80 in purchasing choices, 155 reverse channels for, 276 Sustainable competitive advantage, 63–64 Sustainable packaging, 213 “Swagger Wagon” campaign (Toyota), 78 Sweden, 345 Swiffer, 133 Switching costs, 496 Switzerland, 50–51, 74, 276, 411 S.W.O.T analysis, 46, 47, 242 Symptoms, problems versus, 177–178 Syndicated research, 188 Syria, 406 Systems view of macro-marketing, T Tablet computers, 318 Taiwan, 210, 345 Take-back laws, 276 Tangible products, 202 Target market advertising media selection, 401 Under Armour example, 197–198 defined, 34 of Dell computers, 255 dimensions for segmenting, 99–103 forecasting of potential and sales, 554–556 market-oriented strategy as, 34–40 needs of, 39 relevant, 472 for Subway, 391–392 Target marketing; see also Segmentation defined, 34 elements of, 36–40 impact of culture on, 131–133 lifestyle analysis, 126 by Macy’s, 305–306 in retailing, 311, 315, 318–319 Target markets developing marketing mix for, 36–40 in marketing plans, 519 matching advertising media to, 399 promotion communicated to, 336–337 sales force responsibilities and, 373 shared channel focus on, 266 U.S demographic trends, 77–79 Target return objective, 455 Targeting, sophisticated techniques, 104–106 Task method, of budgeting, 357–358 Tax treatment, impact on business product markets, 219 Team selling, 373 www.downloadslide.com U Ultra Slim Fast, 125 Unfair advertising, 411–412 Unfair trade practice acts, 474–475 Uniform delivered pricing, 470 Unique selling proposition, 408 Unit pricing, 528 “United Breaks Guitars,” 15 United Kingdom, 262, 463 advertising expenditures, 394 Amazon in, 57 BzzAgent in, 437 demographics of, 74 evolution of marketing in, 16 institutional advertising in, 398 Lands’ End in, 70 mass-merchandising in, 313 online shopping behavior in, 323 United Nations, 75 United Nations Statistical Yearbook, 180 United States, 75, 296 advertising employment, 394 advertising expenditures, 394 advertising regulation, 412 amount spent on logistics-related costs, 285 brand name success in, 211 BzzAgent in, 437 cable-television shopping, 316 copyright law, 239 demographics of, 74 evolution of marketing in, 16 income distribution, 119 inflation in, 66 mass-merchandising in, 313 milk in market maturity stage, 232 NAFTA and, 70 need to sell overseas, 52–53 online sales, 316 population trends, 75 salesforce in, 365 service firms in, 162 slowed population growth, 52 smartphone ownership, 406 trash generated in, 213 United States demographic trends, 77–79 Universal functions of marketing, 11 Universal Product Code (UPC), 300 Unplanned purchases, 216 Unsought products, 216, 218, 258, 620 Urbanization, 75 Urgency of needs, 133, 536 U.S Army, 401 USA Today Super Bowl Admeter, 343 USA.gov website, 165 User-generated content, 425 Users, buying influence, 148, 149 V Vacuum cleaner, robotic, 227 Validity, of research results, 191 Value customer lifetime, 43–44 importance to market orientation, 20–22 price as measure of, 14 pricing policies and, 471–474 societal and ethical dimensions, 474 as a subjective appraisal, 474 of transporting function, 293–298 wholesaler-added, 325–327 Value chain, 255 Value in use pricing, 496, 497 Value pricers, 472 Value pricing, 471, 474 Variable costs, 664 Velcro, 243 Vending machines, 315, 320 Vendor analysis, 154–155 Vendors, relationships with, 156–160 Venezuela, 53 Veracruze (SUV), 109, 126 Vertical arrangements, 273 Vertical conflicts, 267 Vertical integration, 270, 617–618 Vertical marketing systems, 269–270 Vicks’ cold remedy products, 370 Video entertainment, distribution of, 265 Video game market, 33 Video observation, 185–186 Video sharing services, 444 Videoconferencing, 378–379 Videos, publicity, 338, 413, 417 Vietnam demographics of, 74 Ford Motor Company’s determining dimensions in, 100 growing market in, 73 Vietnam War, 617 ViewSonic, 275 Vine social media, 343 Viral publicity, 338, 404, 429, 430 Viral videos, 338 Virtual products, 265 Virtual stores, 322 Virtual trade show, 417 751 Subject Index Total expenditures, 495 Total fixed cost, 488 Total inventory cost, 299 Total profits, 80; see also Profits Total quality management (TQM), 248–249, 617–618 Total revenue, 535 Total variable cost, 488 Touch O’Technology faucets, 51 Touchpoints, 250 Tourism districts, 607 Toxic waste, 525 Toyota Sienna minivan, 78 Tracking, of consumers, 350 Trade (functional) discount, 467 Trade agreements, 69–70 Trade magazines, 351, 352, 425, 436 Trade promotion, 416–417 Trade shows, 338, 413, 416–417 Trade-in allowances, 463, 468 Trademark, 204, 205, 206, 209, 210 Trade-offs, in physical distribution, 286–287 Traditional channel systems, 266 Training to improve quality, 250 of salespeople, 379–380 Trains, 286 Translations, 345 Transportation analytics, 298 Transporting, defined, 293 Transporting function, 11, 293–298 Trend extension, 555 Trial, 138 Tribes (Dunkin’ Donuts), 169 Triggers, 429 TripAdvisor, 439 Triple bottom line, 19 Tritan copolyester, 151 Trivia Crack, 33 Truck manufacturers, 298 Truck shipments, 295 Truck wholesalers, 328 Trust, 126, 153, 206, 344, 425–426 TRUSTe seal of approval, 317 Truth, 524–525 Truth-in-lending, 528 Tsunamis, 291 Turf battles, 18 Turkey, 74 Tweets, 338 2/10, net 30, 465–466 Tylenol tablets, 356 Teamwork, importance to marketing orientation, 18, 644 Technical specialists, 370 Technological environment; see also Information technology (IT); Marketing information systems (MIS) assessing in strategy planning, 66–69 impact on product life cycles, 232 MIS developments, 171–176 Technology; see also Information technology (IT); Marketing information systems (MIS) challenges of, 68 defined, 66 and distribution center efficiency, 301 electronic data interchange (EDI), 292 to enhance shopping experience, 322 ethical dilemmas, 68 impact on shopping habits, 68 international cell phone use, 76–77 for inventory management, 301 opportunities and threats to, 67, 68 in retail evolution, 320 in retailing, 321 as substitute or complement for personal selling, 376–377 use by wholesalers, 325 Teddy Grahams, 236 TEDx Youth Conference, 444 Teenagers, 129, 305–306 Tek Gear, 197 Telemarketers, 385 Telephone sales force, 374 Telephone surveys, 184 Television advertising, 401 Television advertising, 392, 394, 396, 398, 399, 400, 403, 412 Television in-home shopping, 316 Television program distribution, 265 Television sets, innovations in, 482 Temporary price cuts, 463 Tencent (Chinese social media site), 340 Termite mounds, 243 Territories (sales), 374 Test marketing, 188, 245 Testimonial, 436 Testing ads, 411 Testing hypotheses, 176 Text messaging promotions, 407 Thailand, 75, 159, 209, 283 Thermometer marketing, 406 Thesgora village, 343 “Thing-oriented” jobs, 563–564 ThinkPad (IBM), 255–256 Third World countries; see Less-developed countries Thought leaders, 432 3D printing technology, 67, 244 3D TVs, 482 Ticket pricing, 459 Tide detergent, 42, 98, 212, 247, 259, 451 Tide Free & Gentle, 98 Tide-to-Go, 118 Tiguan (Volkswagen), 403 Time influences, on purchase situation, 133 Time schedule, in marketing plan, 518 Timeliness of promotion, 348–349 Time-pressed optimizers, 323 TiVo, 408, 468 Toll-free telephone lines, 373, 502 Tomagatchi, 233 Tom’s Children’s toothpaste, 96 Tone soap, 107 Toothpaste market, 96, 104 Top management product development support, 246–247 responsibility for objectives, 59–61 Tostitos, 286 Total cost, 488 Total cost approach, 289 Total cost of distribution, 296 www.downloadslide.com Virus, 241 Visual images, 434 Vitaminwater, 261 Voluntary chains, 325 Volunteers, 23 W Walkman players, 115 Walmart To-Go, 289 Wants changing, 514 needs versus, 119 Warehouse club, 314 Warehouse grocery stores, 314 Warehouse types, 299–301 Warehousing, 300 Warranties, 36, 214–215, 528 Water purification unit (Slingshot), 283 Water transportation, 295, 296 WD-40, 188–189 “Wearable electronics,” 116 Web advertising, 391, 395, 400, 403, 404, 406, 408, 409, 410, 411 Webcam interviews, 182 Webinars, 421 Webrooming, 319 Website analysis software, 186 Websites; see also E-commerce; Search engines analytics software, 176 for automatic rebuys, 152 branded, 425, 426 Cirque du Soleil, 31–32 confusing, 347 customer reviews, 15 customer-attracting, 348 data gathering from, 179–180 752 direct distribution via, 499 distribution advantages, 256, 260, 263 focus groups on, 182, 183 information sharing via, 157–158 procurement, 154 publicity via, 338, 408 researching new purchases on, 153–154 use by small service companies, 162 visitor data for, 176, 186, 188 WeChat, Wheel of retailing theory, 320 Wheelchairs, 617–619 Wheeler-Lea Amendment (1938), 71, 475 White papers, 154, 421, 431, 432 Wholesale clubs, 314 Wholesale trade by type of operation, 326 Wholesaler-led channel of distribution, 269 Wholesalers, 62, 263 adaptation of marketing strategies, 325 added value, 325–327 benefits of, 12 Census Bureau data, 261 chain discounts for, 467 customers’ wants as guide for, 155 defined, 324 lack of access to, 261 order getters of, 368 order takers of, 369 as organizational customers, 163–164 personal selling for, 368, 369 promotion to, 350, 352 purchasing functions, 163–164 recruiting sales reps, 379–382 sales promotion to, 338 selling price, 484 strategy planning for, 307 trends for, 324–325 types of, 326–330 in typical channel of distribution, 307 Wholesaling careers in, 568 decline of, 324–325 defined, 324 “Will It Blend” videos, 429 Wisdom, 174 Wishbone salad dressing, 213 Women, changing roles in cultures, 75 Word-of-mouth communication, 31, 208, 248, 338, 355, 425, 437, 438, 628 Working capital, 263, 465 World of Warcraft, 33 World Wide Web; see Internet; Websites World Wildlife Fund, 22, 125 Wrigley’s chewing gum, 271 Y Yellow Pages advertising, 376 Yoga (laptop), 256 Young couples, 129 Z Zaltrap (cancer drug), 473 Zappos Couture, 311 Zappos Now, 311 Zappos Running, 311 Zimbabwe, 243 Zipcar, 124, 127 Zonal merchandising, 613 Zone pricing, 470 Zout, 398 “Zumanity” (Cirque du Soleil), 31 ... 328 general stores, 311 wheel of retailing theory, 320 rack jobbers, 328 single-line stores, 3 12 scrambled merchandising, 320 catalog wholesalers, 328 limited-line stores, 3 12 wholesaling, 324 ... www.downloadslide.com CHAPTER 12 317 Left: © 20 02 20 15 by Wayfair LLC, Copley Place, Floor 7, Boston, MA 021 16.; Right: © 20 12 Zibbet Pty Ltd model and find multiple sites offering the same thing Sites... wholesaling, 324 agent wholesalers, 329 specialty shop, 3 12 wholesalers, 324 manufacturers’ agent, 329 department stores, 313 manufacturers’ sales branches, 326 export agents, 329 mass-merchandising concept,