Ebook Contemporary marketing (15th edition): Part 2

(BQ) Part 2 book Contemporary marketing has contents: Marketing channels and supply chain management; retailers, wholesalers, and direct marketers; integrated marketing communications; advertising and public relations; personal selling and sales promotion,...and other contents.

www.downloadslide.com PART Distribution Decisions 411 Chapter 13 Marketing Channels and Supply Chain Management Chapter 14 © ISTOCKPHOTO.COM/JESUS JAUREGUI Retailers, Wholesalers, and Direct Marketers Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com 412 ch 13 Marketing Channels and Supply Chain Management Describe the types of marketing channels and the roles they play in marketing strategy Outline the major channel strategy decisions Describe the concepts of channel management, conflict, and cooperation Identify and describe the different vertical marketing systems Explain the roles of logistics and supply chain management in an overall distribution strategy Identify the major components of a physical distribution system Compare the major modes of transportation Discuss the role of transportation intermediaries, combined transportation modes, and warehousing in improving physical distribution Panama Canal Undergoes Extreme Makeover • • • The Panama Canal is one of the world’s most famous examples of engineering know-how Built in 1914, this 48-mile-long “ditch” dug by the U.S Army Corps of Engineers and thousands of laborers made it possible for ships to cross the Isthmus of Panama, a thin strip of land that separates the Atlantic and Pacific oceans Over its ten decades of operation, the canal has served as a critical artery for global trade In recent times, the canal welcomed 14,000 ships passing through each year, carrying about percent of the world’s ocean cargo—280 million tons Shipping companies once designed their ocean-going vessels to fit the Panama Canal’s locks—100 feet long and 110 feet wide—and these vessels, which came to be known as “Panamax” ships, still carry much of the world’s cargo During the 1970s, however, ships began to be built longer and wider These days, for example, some of the ships moving through the Panama Canal are three times longer than a football field Even for some vessels that regularly make the journey, passage through the canal’s narrow Miraflores Locks is a tense, nerve-wracking exercise, with barely a couple of feet to spare on either side Today, the newest breed of ship, known as “postPanamax,” cannot navigate the canal at all With the canal now too narrow for more than one-third of the world’s cargo ships, Panamanian government officials saw the writing on the wall: unless they took action to upgrade it, the canal would become obsolete As a result, voters in Panama approved a $5.25 billion expansion project The new locks will be 60 percent longer and 40 percent wider When it reopens in 2014, the remodeled canal will be able to handle more than double its current shipping capacity, including tankers that hold as much as million barrels of oil as well as container ships that carry up to 12,500 cargo containers The canal’s expansion will make it easier and less costly to ship goods from Asia to the Eastern Seaboard of the United States It will also provide China with better access to Latin America markets The 1999 transfer of the Panama Canal from the United States to Panama has proved to be a game-changer for the tiny tropical nation Whereas the U.S government had administered the canal as a federal agency— for example, maintaining a toll Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com 413 chapter Marketing: ng: Creating Satisfacti Satisfaction through h Customer Relationship evolution of a brand © AP IMAGES/JIM MONE schedule just high enough to cover operating costs—the Panama Canal Authority operates the canal like a commercial enterprise The canal authority introduced a tariff schedule scaled to different-sized cargoes and charges extra for certain services Under Panamanian management, shipping traffic in the canal increased significantly, from 200,000 ships in 1995 to more than 4.6 million in a recent year Today, the canal represents 14 percent of Panama’s gross domestic product The expansion plan, which is reportedly on time and on budget, is being financed chiefly through retained earnings from the canal; the rest is underwritten by global lenders The predicted surge in shipping from the expanded canal is likely to spill over to U.S ports, many of whom are currently taking steps to upgrade their own facilities The Panama Canal Authority predicts that the expanded canal will double the country’s economy, create jobs, and ease poverty.1 When it opened to transoceanic ships in 1914, the Panama Canal quickly became an icon, changing the face of trade between the East and West And a century later—when its current expansion project is complete—the Panama Canal will once again change the face of trade, not only in terms of the increased number of ships passing through but also in terms of its implications for other businesses and other major modes of transportation Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com evolution of a • In a typical day, the Panama Canal’s original locks used about billion gallons of water Although the locks in the expanded canal will hold 65 percent more water, the new design aims for sustainability Thus, the locks will ultimately use less water than the original locks and will recycle more than half the water used Do you think this green practice is important for the Panama Canal? How could the Panama Canal Authority use the practice to enhance the brand? • Can an expanded Panama Canal affect marketing strategy for businesses worldwide? How? chapter overview distribution Movement of goods and services from producers to customers marketing (distribution) channel System of marketing institutions that enhances the physical flow of goods and services, along with ownership title, from producer to consumer or business user logistics Process of coordinating the flow of information, goods, and services among members of the distribution channel supply chain management Control of the activities of purchasing, processing, and delivery through which raw materials are transformed into products and made available to final consumers physical distribution Broad range of activities aimed at efficient movement of finished goods from the end of the production line to the consumer Distribution—moving goods and services systems support customer service, enhancing from producers to customers—is the second customer relationships—an important goal of marketing mix variable and an important mar- any marketing strategy keting concern Firms depend on waterways A key aspect of logistics is physical distri- like the Panama Canal to be able to move bution, which covers a broad range of activities their goods from one destination to another aimed at efficient movement of finished goods A distribution strategy has two critical compo- from the end of the production line to the nents: (1) marketing channels and (2) logistics consumer Although some marketers use the and supply chain management terms transportation and physical distribution A marketing channel—also called a interchangeably, these terms not carry the distribution channel—is an organized sys- same meaning Physical distribution extends tem of marketing institutions and their inter- beyond transportation to include such impor- relationships that enhances the physical flow tant decision areas as customer service, inven- and ownership of goods and services from tory control, materials handling, protective producer to consumer or business user The packaging, order processing, and warehousing choice of marketing channels should support Well-planned marketing channels and the firm’s overall marketing strategy By con- effective logistics and supply-chain manage- trast, logistics refers to the process of coor- ment provide ultimate users with convenient dinating the flow of information, goods, and ways for obtaining the goods and services services among members of the marketing they desire This chapter discusses the activi- channel Supply chain management is the ties, decisions, and marketing intermediaries control of activities of purchasing, process- involved in managing marketing channels and ing, and delivery through which raw materi- logistics Chapter 14 looks at other players in als are transformed into products and made the marketing channel: retailers, direct mar- available to final consumers Efficient logistical keters, and wholesalers Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it chapter 13 www.downloadslide.com 415 Marketing Channels and Supply Chain Management The Role of Marketing Channels in Marketing Strategy Describe the types of marketing channels and the roles they play in marketing strategy briefly sp ea k in g H “ ow tomorrow moves” —CSX Corporation motto If you are interested in learning more about the Nintendo Wii, you may want to see the game console in person by visiting a local dealer © AP IMAGES/PAUL SAKUMA A firm’s distribution channels play a key role in its overall marketing strategy because these channels provide the means by which the firm makes the goods and services available to ultimate users Channels perform four important functions First, they facilitate the exchange process by reducing the number of marketplace contacts necessary to make a sale Suppose you’ve had a Nintendo DS handheld game player in the past and been satisfied with it, so when you see an ad for the Nintendo Wii, you are interested You visit the Nintendo Web site where you learn more about the Wii and its unique features You are particularly drawn to the games “NCAA Football All-Play” and “The Beatles: Rock Band.” But you want to see the game console in person, so you locate a dealer near enough for you to visit.2 The dealer forms part of the channel that brings you—a potential buyer—and Nintendo—the seller—together to complete the exchange process It’s important to keep in mind that all channel members benefit when they work together; when they begin to disagree or—worse yet—compete directly with each other, everyone loses Distributors adjust for discrepancies in the market’s assortment of goods and services via a process known as sorting, the second channel function A single producer tends to maximize the quantity it makes of a limited line of goods, while a single buyer needs a limited quantity of a wide selection of merchandise Sorting alleviates such discrepancies by channeling products to suit both the buyer’s and the producer’s needs The third function of marketing channels involves standardizing exchange transactions by setting expectations for products, and it involves the transfer process itself Channel members tend to standardize payment terms, delivery schedules, prices, and purchase lots, among other conditions Standardization helps make transactions efficient and fair The final marketing channel function is to facilitate searches by both buyers and sellers Buyers search for specific goods and services to fill their needs, while sellers attempt to learn what buyers want Channels bring buyers and sellers together to complete the exchange process Hundreds of distribution channels exist today, and no single channel best serves the needs of every company Instead of searching for the best channel for all products, a marketing manager must analyze alternative channels in light of consumer needs to determine the most appropriate channel or channels for the firm’s goods and services Marketers must remain flexible because channels may change over time Today’s ideal channel may prove inappropriate in a few years, or the way a company uses that channel may have to change Two decades ago, Michael Dell came up with a revolutionary way to sell computers: by telephone, directly to consumers Later, Dell added Internet sales to its operations Next, the firm added another channel for making its computers available to consumers: Best Buy, one of the nation’s largest electronics retailers Selected models of Dell’s PCs became available at Best Buy stores around the United States Today, Dell is exploiting another channel to sell computers: reaching its consumers through Twitter By continuing to identify new channels for distribution, Dell stays engaged with current and prospective customers.3 Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com part Distribution Decisions © 2010 DELL INC ALL RIGHTS RESERVED 416 Marketers must remain flexible because channels change over time Dell products, originally available only through direct-to-customer selling, are now sold at Best Buy, and Dell is exploring another channel to sell computers: reaching its consumers through Twitter The following sections examine the diverse types of channels available to marketers and the decisions marketers must make to develop an effective distribution strategy that supports their firm’s marketing objectives Types of Marketing Channels marketing intermediary (or middleman) Wholesaler or retailer that operates between producers and consumers or business users wholesaler Channel intermediary that takes title to the goods it handles and then distributes these goods to retailers, other distributors, or business or B2B customers direct channel Marketing channel that moves goods directly from a producer to the business purchaser or ultimate user direct selling Strategy designed to establish direct sales contact between producer and final user The first step in selecting a marketing channel is determining which type of channel will best meet both the seller’s objectives and the distribution needs of customers Figure 13.1 depicts the major channels available to marketers of consumer and business goods and services Most channel options involve at least one marketing intermediary A marketing intermediary (or middleman) is an organization that operates between producers and consumers or business users Retailers and wholesalers are both marketing intermediaries A retail store owned and operated by someone other than the manufacturer of the products it sells is one type of marketing intermediary A wholesaler is an intermediary that takes title to the goods it handles and then distributes these goods to retailers, other distributors, or sometimes end consumers Although some analysts believed that the Internet would ultimately render many intermediaries obsolete, that hasn’t happened Instead, it has enabled many such businesses to enhance customer service To manage their large corporate accounts, airlines typically use the services of intermediaries, such as global distribution systems, online travel agents, or travel management companies, paying them a regular fee for service But with the high cost of fuel, airlines are looking for ways to trim their costs American Airlines is aiming to cut out the middleman by promoting its Direct Connect program, enabling customers to access the airline’s Web site and book their own flights without having to use an intermediary.4 A short marketing channel involves few intermediaries By contrast, a long marketing channel involves several intermediaries working in succession to move goods from producers to consumers Business products usually move through short channels due to geographic concentrations and comparatively fewer business purchasers Service firms market primarily through short channels because they sell intangible products and need to maintain personal relationships within their channels Haircuts, manicures, and dental cleanings all operate through short channels Not-forprofit organizations also tend to work with short, simple, and direct channels Any marketing intermediaries in such channels usually act as agents, such as independent ticket agencies or fundraising specialists Direct Selling The simplest and shortest marketing channel is a direct channel A direct channel carries goods directly from a producer to the business purchaser or ultimate user This channel forms part of direct selling, a marketing strategy in which a producer establishes direct sales contact with its product’s final users Direct selling is an important option for goods requiring extensive demonstrations Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it chapter 13 www.downloadslide.com 417 Marketing Channels and Supply Chain Management Consumer Goods figure 13.1 Alternative Marketing Channels Retailer Wholesaler Retailer Consumer Producer Business Goods Agent/ Broker Wholesaler Retailer Agent/ Broker Wholesaler Producer Services Service Provider Agent/ Broker Agent/ Broker Business User Wholesaler Consumer or Business User in persuading customers to buy The “Career Readiness” feature contains suggestions for making successful sales calls Direct selling plays a significant role in business-to-business marketing Most major installations, accessory equipment, and even component parts and raw materials are sold through direct contacts between producing firms and final buyers Many people in business enjoy successful sales careers According to the Occupational Outlook Handbook published by the U.S Department of Labor, about million people are employed as sales representatives in manufacturing and wholesaling industries.5 Direct selling is also important in consumer-goods markets Direct sellers such as Avon, Pampered Chef, and Tastefully Simple sidestep competition in store aisles by developing networks of independent representatives who sell their products directly to consumers Many of these companies practice a direct selling strategy called the party plan, originally popularized by Tupperware Jewelry boutique company Stella & Dot is one such business Launched by entrepreneur Jessica Herrin, Stella & Dot jewelry is sold at home-based parties, or “trunk shows,” by independent sales representatives The jewelry, which appeals to women of all ages, is accessible and affordable—and is often worn by TV celebrities Stella & Dot recently topped $30 million in sales.6 The Internet provides another direct selling channel for both B2B and B2C purchases Consumers who want to sport designer handbags, but don’t want to pay full price for them, can rent Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com 418 part Distribution Decisions A natomy of a Successful Sales Call w hen you make a sales call to a prospective or current customer, you represent the face and voice of your firm The way people perceive you is the way they perceive your company, so you want to make a good first impression as well as a positive lasting impression Most likely, you will receive training—either by your supervisor or someone else in your company—in the fine art of a successful sales call Here are a few additional tips to help you: • Do your homework Be sure you know the correct spelling and pronunciation of the company you are visiting—and the person you are scheduled to meet Familiarize yourself with the company’s goods or services and past history with your company • Assess the company’s potential needs Don’t launch into a “data dump” about your products before learning what the customer needs If you have familiarized yourself with the customer’s business, you should be able to ask a few intelligent questions and really listen to the answers Then, you can offer a few ideas of solutions • Dress appropriately and arrive on time Wear the proper business attire for your industry, whether it’s a business suit or business casual clothing Cover any tattoos or body piercings and wear conservative jewelry In other words, play it safe Always arrive a few minutes before the scheduled time Doing so shows respect for your customer’s time and indicates you are serious about doing business • Be conservative in your behavior Always stand to greet your customer Smile, shake hands, and follow the customer to wherever the meeting will take place Address him or her with the title “Mr.” or “Ms.,” and not assume the person wishes to be called by first name until you are invited to so • Turn off your cell phone If possible, turn off your cell phone before entering the building for your meeting At least, turn it off when you enter the meeting Never take a call during a meeting, and only make one if it will help the progress of the meeting For example, a customer might have a question only your supervisor can answer A successful sales call requires your total attention on the customer • Follow up the meeting with a thank-you After the sales call, be sure to follow up with a phone call, e-mail, or note to thank the person—regardless of the outcome Even if the call did not produce a sale or other immediate results, it could possibly have laid the groundwork for a future relationship Sources: Dan Seidman, “Practice What You Preach in Sales,” Monster Career Advice, career-advice.monster.com, accessed April 18, 2010; Robert Estupinian, “Three Successful Sales Call Strategies for Entrepreneurs,” Bay Area Mastermind, April 1, 2010, http://www.bayareamastermind.com; Geoffrey James, Sales Calls: Four Key Rules to Make Them More Effective,” BNet.com, March 25, 2010, http://blogs.bnet.com them from Avelle, an e-commerce business For those who like to change purses often but can’t or won’t pay the hundreds or thousands of dollars for Chanel’s, Prada’s, or Gucci’s latest, Avelle may be a real bargain By paying an optional monthly membership fee of $5 to $10, customers receive discounts and special deals In addition to designer handbags, shoppers can find sunglasses and jewelry to complete their look.7 Direct mail can also be an important part of direct selling—or it can encourage a potential customer to contact an intermediary such as a retailer Either way, it is a vital communication piece for many marketers Channels Using Marketing Intermediaries Although direct channels allow simple and straightforward marketing, they are not practical in every case Some products serve markets in different areas of the country or world, or have large numbers Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it chapter 13 www.downloadslide.com 419 Marketing Channels and Supply Chain Management of potential end users Other categories of goods rely heavily on repeat purchases The producers of these goods may find more efficient, less expensive, and less time-consuming alternatives to direct channels by using marketing intermediaries This section considers five channels that involve marketing intermediaries PRODUCER TO WHOLESALER TO RETAILER TO CONSUMER The traditional channel for consumer goods proceeds from producer to wholesaler to retailer to user This method carries goods between thousands of small producers with limited lines and local retailers A firm with limited financial resources will rely on the services of a wholesaler that serves as an immediate source of funds and then markets to hundreds of retailers On the other hand, a small retailer can draw on a wholesaler’s specialized distribution skills In addition, many manufacturers hire their own field representatives to service retail accounts with marketing information Wholesalers may then handle the actual sales transactions PRODUCER TO WHOLESALER TO BUSINESS USER Similar characteristics in the organizational market often attract marketing intermediaries to operate between producers and business purchasers The term industrial distributor commonly refers to intermediaries in the business market that take title to the goods PRODUCER TO AGENT TO WHOLESALER TO RETAILER TO CONSUMER In markets served by many small companies, a unique intermediary—the agent—performs the basic function of bringing buyer and seller together An agent may or may not take possession of the goods but never takes title The agent merely represents a producer by seeking a market for its products or a wholesaler, which does take title to the goods, by locating a supply source PRODUCER TO AGENT TO WHOLESALER TO BUSINESS USER Like agents, brokers are independent intermediaries who may or may not take possession of goods but never take title to these goods Agents and brokers also serve the business market when small producers attempt to market their offerings through large wholesalers Such an intermediary, often called a manufacturers’ representative, provides an independent sales force to contact wholesale buyers A kitchen equipment manufacturer may have its own manufacturer’s representatives to market its goods, for example PRODUCER TO AGENT TO BUSINESS USER For products sold in small units, only merchant wholesalers can economically cover the markets A merchant wholesaler is an independently owned wholesaler that takes title to the goods By maintaining regional inventories, this wholesaler achieves transportation economies, stockpiling goods and making small shipments over short distances For a product with large unit sales, however, and for which transportation accounts for a small percentage of the total cost, the produceragent-business user channel is usually employed The agent in effect becomes the producer’s sales force, but bulk shipments of the product reduce the intermediary’s inventory management function Dual Distribution Dual distribution refers to the movement of products through more than one channel to reach the firm’s target market Nordstrom, for instance, has a three-pronged distribution manufacturers’ representative Agent wholesaling intermediary that represents manufacturers of related but noncompeting products and receives a commission on each sale dual distribution Network that moves products to a firm’s target market through more than one marketing channel Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com 420 © TIM BOYLE/GETTY IMAGES Staples collects empty ink and toner cartridges at its stores, so customers can recycle them instead of throwing catridges away part Distribution Decisions system, selling through stores, catalogs, and the Internet Marketers usually adopt a dual distribution strategy either to maximize their firm’s coverage in the marketplace or to increase the cost-effectiveness of the firm’s marketing effort Nintendo and Netflix recently partnered to offer entertainment through more than one channel Traditionally, customers order their favorite movies online and have the DVDs delivered to their mailboxes Under the new agreement, Netflix subscribers with at least an $8.99 monthly subscription can stream movies and TV programs and view them on their Wii console at no extra cost.8 Reverse Channels reverse channel Channel designed to return goods to their producers While the traditional concept of marketing channels involves the movement of goods and services from producer to consumer or business user, marketers should not ignore reverse channels—channels designed to return goods to their producers Reverse channels have gained increased importance with rising prices for raw materials, increasing availability of recycling facilities, and passage of additional antipollution and conservation laws Purchase a new set of tires, and you’ll find a recycling charge for disposing of the old tires The intent is to halt the growing litter problem of illegal tire dumps Automotive and marine batteries contain potentially toxic materials, including 25 pounds of lead, plastic, and sulfuric acid Yet, 99 percent of the elements in a spent battery can be reclaimed, recycled, and reused in new batteries Thirtynine states now require consumers to turn in their old batteries when they purchase new ones To help in this effort, the American Automobile Association (AAA) holds an annual AAA Great Battery Roundup in the United States and Canada, during which consumers can drop off their dead batteries.9 Some reverse channels move through the facilities of traditional marketing intermediaries In states that require bottle deposits, retailers and local bottlers perform these functions in the softdrink industry For other products, manufacturers establish redemption centers, develop systems for rechanneling products for recycling, and create specialized organizations to handle disposal and recycling Staples collects empty ink and toner cartridges at its stores, rewarding customers who recycle rather than dispose of the items Nike’s Reuse-A-Shoe program collects people’s cast-off athletic shoes and recycles virtually the entire shoe These recycling efforts are likely to help build customer loyalty and enhance the brands’ reputations.10 Reverse channels also handle product recalls and repairs An appliance manufacturer might send recall notices to the buyers of a washing machine An auto manufacturer might send notices to car owners advising them of a potential problem and offering to repair the problem at no cost through local dealerships assessment check Distinguish between a marketing channel and logistics What are the different types of marketing channels? What four functions marketing channels perform? Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com I-18 growth stage, 364–365 GRP See gross rating point guanxi, 215 guerrilla marketing, 502–503, 511, 519 Gulf oil spill, 71 H hackers, 114 hand shaking, 211 hard sell, 581 headlines, 537 health, 140, 144, 147–149 Helms-Burton Act (1996), 213 Helping Families Save Their Homes Act, 72 high involvement purchase decisions, 156, 161 Hispanic Americans, 48, 82, 141–142, 277, 287–288, 532 holdbacks, 647 home shopping channels, 508 homeshoring, 347 hot spots, 67–68 house brands, 364 household types, 290 humor, 211, 536–537 hyperinflation, 622 hypermarkets, 464 hypothesis, 245–246 I identity theft, 87 Identity Theft Enforcement and Restitution Act, 71, 72 ID theft, 71 illustrations, 537 image, 19 IMC See integrated marketing communications IMF See International Monetary Fund importing, 8, 204, 206, 214 global marketing, 220–221 tariffs, 215 import quotas, 214 impulse goods/services, 349 IMS See Internet Protocol Multimedia Subsystem inbound telemarketing, 571 income, 77–78, 146 income/expenditure patterns, 291 incremental-cost pricing, 624 independent retailers, 461 indirect competition, 67–68 indirect evaluation, 516 individual brands, 381–382 individualism, 140 industrial distributor, 354, 469 Industrial Revolution, 310 industry deregulation, 71 inelastic demand, 182, 622 inflation, 77, 622 influencer, 40, 191 infomercials, 474, 508 information investigation, 245 information technology (IT), 5, 22, 184 informative advertising, 529 infrastructure, 210 ingenuity, 17 innovators, 293 inquiry tests, 554 inside selling, 572 installations, 353–354, 510 instant messaging, 104, 118, 287, 321 See also e-mail institutional advertising, 529 institutions, 173, 194 integrated marketing, 105–106 integrated marketing communications (IMC), 50, 488 components, 489 databases in, 491 overview, 489–490 teamwork, 490–491 integrity, 498 intensive distribution, 423 interactive advertising, 534, 538 interactive marketing, 21, 81 in e-marketing, 105–106 relationship marketing and, 21–22 interactive media, 545, 554 interactive television, 320 interdependent partnership, 316 interest groups, 74–75 intermodal coordination, 439 intermodal operations, 435 internal customers, 312 internal data, 245 internal marketing, 312–313 internal partnerships, 325 international business markets, 180–181 international marketing, 66, 194 See also global marketing international marketing research, 259 International Monetary Fund (IMF), 213 International Organization for Standardization (ISO), 213 International Trade Commission (ITC), 215 Internet, 9, 13, 38, 54–55, 80–81, 93, 145, 146, 171, 213, 300, 326, 415, 490, 519, 631 See also blogs; cookies; e-business; e-marketing; online marketing; Web sites advertising, 500, 538 aggregators, 250 as attractive option, 108 auction houses, 471 availability, 67–68 B2B marketing connection, 173 children and, 71, 72 competition, 462 crime, 116 development, 80, 103 direct marketing, 474 direct-response retailing, 474 direct selling and, 417–418 distribution and, 49 financial services industry, 207 for-profit organizations and, 102 forums, 118 functions, 117 government spending, 178, 193 Hispanic Americans on, 142 improving technology, 178 as interactive media, 545 music downloads, 64 nature of, 206 privacy, 86, 114 subject index reducing marketing barriers, 43–44 regulating, 75 retailers, 439 revolution, 102, 475 search, 328 search engines, 336–337 “stickiness,” 257 supplier networks, 187 technology, 211 trademarks and, 387 user characteristics, 113 worldwide use, 103–104 Internet communications See also blogs marketing and, 117–121 online communities, 118–119 podcasts, 119–120 promotions, 120–121 social networking, 118–119 Internet Protocol Multimedia Subsystem (IMS), 80–81 Internet service providers (ISPs), 66, 116, 123 internships, A-4–A-6 interpersonal determinants, in consumer behavior, 139–148 interpersonal influences, 186 interpretative research, 254, 260 interstitials, 538 intimates, 294 intranets, 108 introductory stage, 363–364 inventory adjustments, 182–183 inventory control systems, 49, 440 ISO See International Organization for Standardization ISO 9001:2000, 358 ISPs See Internet service providers IT See information technology ITC See International Trade Commission J jargon, 386, 493 JavaScript, 538 JIT See just-in-time JITII, 182 job interview, A-12 jobs, 79, A-12 See also employment; marketing careers; marketing positions joint demand, 182 joint ventures, 222 junk fax law, 256 jury of executive opinion, 264 just-in-time (JIT), 182 K keyword ads, 538, 545 kiosks, 6, 105, 498, 509, 545, 576, 611 kirana-style markets, 48 knowledge, 383 knuckle cracking, 211 Korean War, 287 L labeling, labels, 389–390 Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it subject index laggards, 395 language, 146, 210, 212, 223, 387, 493–494 See also body copy; buzzwords; Extensible Markup Language; jargon Lanham Act (1946), 385 laptop computers, 32, 60 lateral partnerships, 325 laws See also government regulation; specific laws alcohol sales, 73, 88 antitrust, 213 automobile emissions, 73 competition regulated, 72 competitive environment maintained, 72 consumers protected, 72 deregulation, 73 enforcing, 73 Engel’s laws, 291 in global marketing, 212–213 international, 212 junk fax, 256 marketing affected, 72 Praedo’s law, 296 LCL See less-than-carload lead, 65 leader pricing, 652–653 Leadership in Energy and Environmental Design (LEED), 133 learning, 154–155 LEED See Leadership in Energy and Environmental Design less-than-carload (LCL), 438 less-than-truckload (LTL), 438 letter writing, 79 leverage, 45 life-cycle, life expectancy, 82 lifestyles, 292, 458 lifetime value of a customer, 330–331 limited-function wholesalers, 469 limited line retailers, 462 limited line store, 462 limited problem solving, 161 limited-service research supplier, 243 line extension, 362, 390 list price, 645 lobbying, 75 location location-based advertising, 315 in planned shopping centers, 457–458 plant, in automobile industry, 177 retailers by, 465 retailing strategy, 457–458 store, 349 location-based advertising, 315 logistics, 414, 441, 475 See also physical distribution cost control, 432 ERP, 432 reverse, 116 RFID, 430–431 supply chain management and, 429–432 third-party, 432 logos, 19, 34, 88 long-distance telephone services, 612 long-term evolution (LTE), 68 loss leaders, 652 low involvement purchase decisions, 156 www.downloadslide.com loyalty brand, 152, 296–297, 379–380 customer, 4, 85, 112, 113, 144, 170, 238 ladder, 20–21 LTE See long-term evolution LTL See less-than-truckload luxury goods, 146, 223–224, 262, 291, 380 luxury retailers, 67 luxury shopping, 100–101 M mad cow disease, 214 magazines, 543–544 mail-order, 49 mail-order wholesaler, 470 mail surveys, 255–256 maintenance, repair, operating supplies (MRO), 355 makers, 293 mall intercept, 255 malls, 125, 255 cybermalls, 110, 390 surveys, 238 manufacturers, 24, 380 manufacturers’ brands, 380 See also national brands manufacturers’ representative, 419, 471 manufacturing, 67, 79 See also remanufacturing MAP See minimum-advertised pricing mapping, 252–253 marginal analysis, 514, 611 marginal costs, 621 markdown, 457, A-37–A-38 market(s), 249, 276 See also target markets factors, in marketing channels, 421, 423 foreign business, 173–174 geographic market concentration, 177–178 international business, 180–181 kirana-style, 48 nature, in promotional mix, 510 orientation, 11 segments, 69 share, 45 supermarkets, 151 types, 277 market development strategy, 393 marketing, See also B2B marketing; direct marketing; e-marketing; global marketing; online marketing; relationship marketing affiliate, 174 affinity, 319 ambush, 505 B2B marketing compared to, 171 buzz, 22, 321, 502 cause, 16, 18–19 to children, 88 to college students, 88 comarketing, 326 concentrated (or niche), 299–300 costs, 23–24, 28 database, 319–320 defined, differentiated, 299 ecology and, 90–91 event, 16, 19 financial analysis, A-33–A-38 I-19 frequency, 319 functions, 23–24 global marketplace, 7–9 grassroots, 320–321 green, 91–92 guerrilla, 502–503, 511, 519 integrated, 105–106 interactive, 21–22, 81, 105–106 internal, 312–313 Internet communications and, 117–121 Internet reducing barriers, 43–44 mass, 299 messages, 517–519 mobile, 21 network, 570 neuromarketing, 152 nontraditional, 16–20 in not-for-profit organizations, 14–15 one-to-one, 22 organization, 16, 20 origins, 5–6 person, 16–17 personalized, 105–106, 112 place, 16–18 relationship-based, 20–23 right-time, 105–106 search, 121 selling and, 11 social responsibility, 25–26, 89–92 sports, 18 success, 26–27, 48–49, 68–69, 111–112, 144–145, 178–179, 208–209, 252–253, 294–295, 328–329, 366–367, 392–393, 592–593, 614–615, 654–655 transaction-based, 20–23 undifferentiated, 299 viral, 321, 502 marketing careers, A-1–A-18 See also career readiness; marketing positions marketing channels, 49, 414 alternative, 417 channel conflict, 426–427 communications, 506 cooperation, 427 direct selling, 416–418 distribution intensity, 422–424 dual distribution, 419–420 exchange process, 415 intermediaries, 418–419 management/leadership, 425–427 market factors, 421, 423 in marketing strategy, 415–416 organizational/competitive factors, 421–423 performing functions, 424–425 product factors, 421, 423 reverse, 420 searches, 415 selection, 421–422 sorting, 415 standardizing, 415 strategies, 421–425 types, 416–421 VMS, 427–429 marketing communications, 488 See also integrated marketing communications business importance, 518 Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com I-20 marketing communications (continued ) economic importance, 518 integration, 519 social importance, 517–518 value, 517 marketing concept, 10, 11, 12 marketing cost analysis, 245 marketing decision support systems (MDSSs), 261 marketing environment competitive environment, 66–70 economic environment, 76–79 environmental management, 65–66 environmental scanning, 65 marketing mix, 65 in marketing strategy, 50–52 political-legal environment, 70–75 shaping, 64 social-cultural environment, 52, 82–84 strategic alliances, 66 technological environment, 79–80 technology and, 51 marketing ethics, 84 creating program, 85 defined, 84 distribution, 87 ethics officers, 85 marketing research, 86–87 pricing, 88–89 product strategy, 87 promotions, 86–87 questions/issues in, 84 standards, 85 “stick-and-carrot approach,” 85 workplace test, 86 marketing history converting wants to needs, 13 historical eras, 9–13 marketing era, 10–12 production era, 9–10 relationship era, 10, 12 sales era, 10 marketing information systems (MISs), 261 marketing intermediary (or middleman), 416 marketing mix, 48, 344, 488, A-24–A-25 accessory equipment and, 354 distribution strategy, 49 global marketing, 223–226 in marketing environment, 65 in marketing strategy, 48–50 pricing objectives and, 609–616 pricing strategy, 50 product strategy, 48–49 promotion strategy, 49–50 marketing myopia, 13–14 marketing plan, A-19 marketing planning, 38 See also marketing strategy assessing organization resources, 42 BCG matrix, 53–54 creating marketing plan, A-19–A-32 defined, 38 defining mission, 41 determining objectives, 41 evaluating environmental risks/ opportunities, 42 formulating strategy, 42 implementing strategy, 42 methods, 52–54 monitoring strategy, 42 overview, 36–37 portfolio analysis, 53 process steps, 41 tactics, 37–41 tools/techniques, 42–47 trends, 39 marketing positions, A-13–A-18 marketing public relations (MPR), 549 marketing research, 240 answers from, 238–240 computer technology, 261–262 customer satisfaction, 243 data collection, 246 data interpretation/presentation, 246–247 defined, 240 defining problem, 244–245 development, 240–242 ethics, 86–87 exploratory research, 245 hypothesis, 245–246 international, 259 interpretative, 260 marketing ethics, 86–87 methods, 247–258 process, 244–247 research design, 246 who conducts, 242–243 marketing rules, marketing strategy, 42, 138, 140 See also advertising strategy; B2B marketing strategy; marketing planning backfiring, 42 business practices and, 139 defined, 42 elements, 47–52 first mover strategy, 45 formulating, A-22 marketing channels in, 415–416 marketing environment, 50–52 marketing mix, 48–50 Porter’s Five Forces, 43–44 second mover strategy, 45 selecting/executing, 300–302 strategic window, 46–47 SWOT analysis, 45–46, 60 target market, 47–48 marketing Web site, 107 market-minus pricing, 643 market penetration strategy, 392 market-plus pricing, 641 market potential forecast, 298 market price, 645 market segmentation, 277 climate, 281 demographic segmentation, 282–292 effective, 278 geographic segmentation, 279–282 GISs, 281–282 market potential forecast, 298 multiple variables, 281 practice, 277 probable market share, 298 process, 297–298 subject index product-related segmentation, 296–297 psychographic segmentation, 292–295 regional preferences, 281 relevant profile development, 297–298 selecting segments, 298 strategies, 298–300 understanding, 279 market-share objective, 612 market structures, 619–620 markup, 457, A-37–A-38 Maslow’s hierarchy of needs, 149–150 mass marketing, 299 mass media, 500 mass merchandisers, 463 mass-production line, materials handling system, 440–441 mathematics, maturity stage, 365 MDSSs See marketing decision support systems meals ready to eat (MRE), 171 media See also radio; television advertising selection, 539–546 broadcast, 539 comparing alternatives, 540 direct mail, 473, 503, 544, 608 interactive, 545 magazines, 543–544 newspapers, 4, 543 outdoor, 544–545 radio, 541–543 technologies, 21 media research, 552 media scheduling, 546 meeting competition method, 514 merchandise delivery, 116 merchandise marts, 469 merchandisers, 186–187 merchandising automatic, 474–475 quick-response, 327 retailing strategy, 454–455 scrambled, 465 merchant wholesalers, 469, 470 message, 491–492 message boards, 317 message research, 552 metropolitan statistical area (MSA), 280 micromarketing, 300 micropolitan statistical area, 280 microwave ovens, 80 middle-class consumers, 146 middleman, 416 Millennial Generation, 287 Miller-Tydings Resale Price Maintenance Act (1937), 609 minimum-advertised pricing (MAP), 647 minorities, 74, 141 See also specific minorities MISs See marketing information systems mission, 41, 55 missionary selling, 577 mobile advertising, 545 mobile marketing, 21, 111 modified breakeven analysis, 627–628 modified rebuy, 189–190 “mom” blogs, 541 monopolistic competition, 619 Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it subject index monopoly, 66, 619 See also antitrust antimonopoly period, 71 oligopoly, 67 operating as, 67 temporary, 66 motivation, 585 motives, 148 Motor Carrier Act and Staggers Rail Act, 73 movies, 152 MPR See marketing public relations MRE See meals ready to eat MRO See maintenance, repair, operating supplies MRO items, 355 MSA See metropolitan statistical area multidomestic marketing strategy, 224 multinational corporations, 222–223 multinational economic integration, 215–219 multiple sourcing, 186 mutual-benefit organizations, 20 mystery shoppers, 238, 243, 317 N NAFTA See North American Free Trade Agreement NAICS See North American Industry Classification System narrowcasting, 540 national account selling, 327 national accounts organization, 584 national brands, 380 National Environmental Policy Act, 72 Native Americans, 141, 288–289 Native Hawaiians, 141 nearshoring, 184 needs, 148 converting to wants, 13 esteem, 150 immediate, 159 Maslow’s hierarchy, 149–150 physiological, 149 safety, 149 self-actualization, 150 social/belongingness, 149–150 negotiated prices, 655–657 neighborhood shopping center, 457 networking, 12 network marketing, 570 neuromarketing, 152 newsgroups, 118 newsletters, 50 newspapers, 4, 543 new-task buying, 190 9–11 Generation, 287 noise, 492–494 nonbusiness enterprises, 518 noncumulative quantity discount, 647 nonmarketing public relations, 549 nonpersonal selling, 500 advertising, 500 direct marketing, 501–502 ethics in, 555–556 guerrilla marketing, 502–503 product placement, 500–501 publicity, 502 public relations, 502 www.downloadslide.com sales promotion, 501 television and, 526 nonprobability sample, 251 nonpurchases, 493 nonstore retailing, 472–475 nontraditional marketing categories, 16 cause marketing, 16, 18–19 event marketing, 16, 19 organization marketing, 16, 20 person marketing, 16–17 place marketing, 16–18 “No Phone Zone” campaign, 147 North American Free Trade Agreement (NAFTA), 8, 72, 176, 217 North American Industry Classification System (NAICS), 176, 178, 180 not-for-profit organizations, 47, 150, 173, 180, 194, 277, 325 broadening scope, 28 budgets, 15 clients/sponsors, 15–16 for-profit organizations vs., 15–16 marketing, 14–15 marketing characteristics, 15–16 objectives/goals, 15 partnerships, 14–15 pricing objectives, 616 promotional items, 15 strategic alliances and, 23 technology development, 80 Nutrition Labeling and Education Act (1990), 390 O obesity, 83, 87 objections, 581 observation, 253, 396 Occupational Outlook Handbook, 417 odd pricing, 650–651 off-price retailers, 464 offset agreements, 221 offshoring, 183, 347 in B2B marketing, 183–185 problems, 184 rise of, 183–184 oil industry, 206 gasoline prices, 618 oil prices, 8, 654 OPEC, 226 pipelines, 436–437 turmoil affecting, 79 oligopoly, 67, 619 Omnibus Trade and Competitiveness Act, 213–214 one-to-one marketing, 22 online buyers/sellers, 112–113 online catalog, 110 online classified ads, 110–111 online communities, 118–119 online companies, 574 online marketing, 100, 103, 105, 115 See also e-marketing online negotiated prices, 656–657 online payment safety, 113–114 I-21 online photos, 112 online pricing bundle, 660 characteristics, 659–660 global considerations, 658–660 traditional strategies, 658–659 online promotion, 516 online shopping, 71, 111 online surveys, 256–258 OPEC See Organization of Petroleum Exporting Countries opening price point, 644 opinion leaders, 146–147 See also trendsetters order processing, 49, 576 organic foods, 69 organizational model of buying process 1: anticipate problem/need/opportunity/ solution, 187 2: determine characteristics/quantity of good/service, 187 3: describe characteristics/quantity of goods/ service, 187 4: search/qualify sources, 188 5: acquire/analyze proposals, 188 6: evaluate proposals/select suppliers, 188 7: select order routine, 188–189 8: feedback/evaluation, 188–189 organization marketing, 16, 20 Organization of Petroleum Exporting Countries (OPEC), 226 Orthodox Jews, 141 outbound telemarketing, 571 outdoor advertising, 544–545 out-of-home advertising, 544 outsourcing, 184, 210, 215 See also nearshoring; offshoring in B2B marketing, 183–185 problems, 184 overstocks, 441 over-the-counter selling, 568–569 ownership utility, P Pacific Islanders, 141 packaging, cost-effective, 389 CPG, 389 damage, spoilage, pilferage protection, 388–389 design, 49 Fair Packaging and Labeling Act (1966), 389–390, 400 labels, 389–390 pharmaceutical industry, 388–389 Poison Prevention Packaging Act (1970), 400 in product identification, 385–388 protective, in physical distribution, 440–441 partnerships, 324, 332 buyer, 325 choosing partners, 325 interdependent, 316 internal, 325 lateral, 325 not-for-profit organizations, 14–15 Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com I-22 partnerships (continued ) product development, 23 relationship marketing and, 22–23, 316 seller, 325 types, 325 party plan, 417 patents, 49, 66 pawn shops, 47 payback, 330–331 payment fraud, 116 pay-per-click, 132 PDA See personal digital assistant peddlers, 567 penetration pricing strategy, 642–644 See also market-minus pricing people of mixed race, 289 percentage-of-sales method, 514 perceptions, 150 in consumer behavior, 150–152 individual factors, 150 perceptual screens, 151–152 stimulus factors, 150 subliminal, 152 perceptual screens, 151–152 personal care industry, 529 personal digital assistant (PDA), 70 personal interviews, 254–255 personalized marketing, 105–106, 112 personal selling, 500, 566 AIDA concept, 491, 578 consultative selling, 574 ethical issues, 588 evolution of, 567–568 field selling, 569–571 inside selling, 572 integration among channels, 572–573 over-the-counter selling, 568–569 in promotional mix, 500, 567 relationship selling, 573–574 sales channels, 568–572 sales force, 582–587, 594 sales process, 578–582 sales tasks, 576–578 team selling, 574–575 telemarketing, 571 trends, 572–576 person marketing, 16–17 persuasive advertising, 530 PERT See program evaluation and review technique pets, 80 phantom freight, 649 pharmaceutical industry, 206, 388–389, 529 philanthropy, 25–26 phishing, 71, 116 phosphates, 81 physical distribution, 414 customer service standards, 433 elements, 432–433 freight forwarders/supplemental carriers, 438 intermodal coordination, 439 inventory control systems, 440 materials handling system, 440–441 protective packaging, 440–441 suboptimization, 433 transportation in, 434–438 warehousing, 49, 261, 439–440, 464, 475 physiological needs, 149 piggyback, 439 PIMS See Profit Impact of Market Strategies PIMS studies, 612 pipelines, 436–437 place marketing, 16, 17–18 place utility, planning, 37, 328 See also marketing planning; strategic planning advertising, 535 classifications, 39–40 ERP, 432 “influencers,” 40 input, 40 levels, 40–41 precall, 579 tactical, 39–40 PLU See price look-up PMSA See primary metropolitan statistical area podcasts, 104, 119, 120, 173 point-of-purchase (POP) advertising, 593 Poison Prevention Packaging Act (1970), 400 political advertising, 561–562 political-legal environment, 70 controlling, 75 government regulation, 71–73 interest groups, 74–75 in marketing environment, 70–75 regulatory agencies, 73–74 regulatory forces, 74–75 self-regulation, 74–75 political risk assessment (PRA), 212 politics, 79 pollution, 4, 91 polyvinyl chloride (PVC), 27 POP adverting See point-of-purchase advertising population, 48, 161, 251 China, 210, 280 geographic segmentation, 279–280 India, 210, 280 Mexico, 280 shifts, 141 United States, 48, 161, 277, 280, 287–288 pop-unders, 538 pop-up ad, 120 Pop Up Design Clinic, 591 pop-up messages, 116 Porter’s Five Forces, 43–44 portfolio analysis, 53 positioning, 301 See also product positioning positioning map, 301 possibility of trial use, 396 postage-stamp pricing, 649 postpurchase evaluation, 160 posttesting, 553 power center, 458 PRA See political risk assessment Praedo’s law, 296 precall planning, 579 predatory practices, 71 predictive dialers, 571 premiums, 591 preroll video ad, 121 prescription drugs, 348, 380 presentation, 579–580 prestige objectives, 614–615 pretesting, 552–553 subject index price, 606, 609 See also costs communicating increase, 650 customary, 616–617 determination in economic theory, 619–627 determination in practice, 624–627 determination methods, 616–619 discrimination, 608 fast-food, 653 gasoline, 618 list, 645–648 marginal costs, 621 market, 645 negotiated, 655–657 off-price retailers, 464 oil, 8, 654 online negotiated, 656–657 opening price point, 644 price-quality relationships, 654–655 reductions, 642 regulatory, 607 relationship marketing price level, 314 transfer, 657–658 price flexibility, 651 price look-up (PLU), 385 price quotations allowances, 647 basing-point pricing, 649 cash discounts, 645–646 FOB pricing, 648 geographic considerations, 648–649 leader pricing, 652–653 list price, 645–648 loss leaders, 652 price flexibility, 651 price-quality relationships, 654–655 product-line pricing, 651–652 promotional pricing, 652 quantity discounts, 646–647 rebates, 331, 647–648 trade discounts, 646 uniform-delivered pricing, 648–649 zone pricing, 649 pricing, 7, 65, 69, 661 See also online pricing alternative procedures, 624–625 basing-point, 649 breakeven analysis, 625–627 bundle, 660 competitive, in B2C e-marketing, 111 concepts, 631 congestion, 616–617 decisions, 640 EDLP, 643–644 ethics, 88–89 fixing, 85 full-cost, 624 global issues, 629–631 global marketing strategy, 226 housing, 618 increase, 67 incremental-cost, 624 law and, 607–609 leader, 652–653 luxury, 145 MAP, 647 marketing ethics, 88–89 market-minus, 643 market-plus, 641 Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it subject index modified breakeven analysis, 627–628 objectives, marketing mix and, 609–616 objectives, not-for-profit organizations, 616 odd, 650–651 postage-stamp, 649 prestige objectives, 614–615 product-line, 651–652 profitability objectives, 610–611 promotional, 652 in promotional mix, 511 psychological, 650–651 retailing strategy, 456–457 strategy, in marketing mix, 50 uniform-delivered, 648–649 unit, 651 value, 613–614 volume objectives, 612–614 Web sites, 123 yield management, 628–629 zone, 649 pricing policies, 649–651 pricing strategies competitive, 644–645 penetration, 642–644 skimming, 641–642 primary data, 246 collection methods, 252–254 controlled experiment, 258 observation method, 252 primary demand, 495–496 primary metropolitan statistical area (PMSA), 281 print media, 509 privacy, 252 Children’s Online Privacy Protection Act, 71, 72 e-business, 114–115 government regulation, 71–72 Internet, 86, 114 settings, 157 private brands, 380 See also private labels private carriers, 435 private data, 248–250 private exchanges, 108 private labels, 380 probability sample, 251 probable market share, 298 problem/opportunity recognition, 158 product(s), 7, 65, 345 See also business products; consumer products; goods advertising, 529–530 alternative, 159, 160 attributes, 67 banned television advertising, 541 business (B2B), 348 consumer (B2C), 348 defined, 48–49, 344–345 differentiation, 497 eco-friendly, 656 factors, in marketing channels, 421, 423 functional, 76 generic, 145, 380 green, 60, 380 invention, 225 lines, 53 nature, in promotional mix, 510 new, 10–11, 13, 238 new, on Web sites, 103 obsolete, with technology, 79–80 www.downloadslide.com placement, 500–501 recalls, 65 single-product firms, 422 substitute, 67 sustainable, 26–27 types of consumer, 348–351 product advertising, 529–530 product deletion, 344, 368–369 product development, 49, 392, 393 adopter categories, 395 adoption process, 394–395 commercialization, 400 development, 399 idea generation, 399 new-product committees, 397 new product departments, 397 organizing for, 396–398 partnerships, 23 process, 398–400 product managers, 397 screening, 399 strategies, 392–395 test marketing, 400 venture teams, 397–398 product differentiation, 497 product diversification strategy, 394 product identification, 384–385 brand extensions, 390–391 brand licensing, 391 brand marks, 385–386 brand names, 385–388 packaging, 385–390 trademarks, 386–388 production orientation, product liability, 400–402 product lifecycle, 49, 344, 362 advertising and, 530 decline stage, 365–366 extending, 366–368 fads, 366 finding new uses, 367 growth stage, 364–365 increasing use frequency, 366–367 increasing users, 367 introductory stage, 363–364 making physical changes, 368 maturity stage, 365 in promotional mix, 510–511 stages, 363–366 product-line pricing, 651–652 product lines, 359, 651–652 growing, 360 market position, 360 resources and, 360 retailers, 462–464 product managers, 397 product mix, 344, 360, 369 decisions, 361–362 depth, 361 length, 361 width, 361 product-oriented management, 13 product placement, 500–501 product positioning, 392 product-related segmentation, 296 benefits sought, 296 brand loyalty, 152, 296–297, 379–380 I-23 multiple bases, 297 usage, 296 product strategy alternative, 225 ethics, 87 international, 224–225 in marketing mix, 48–49 quality as, 356–359 profitability objectives, 610–611 profit center, 657–658 Profit Impact of Market Strategies (PIMS), 612 profit maximization, 611 program evaluation and review technique (PERT), 398 promotion, 7, 65, 69, 314, 488 See also cross-promotion; sales promotion; trade promotions accentuating value, 498 category, 497 communication process and, 492 consumer sales, 590–592 cross-, 551 defined, 49 demand increasing, 496–497 effectiveness, 515–516 ethics, 86–87 global marketing strategy, 224–225 increasing demand, 496–497 industry, 557 Internet communications, 120–121 measuring effectiveness, 552–554 nonpersonal selling, 501 not-for-profit organizations, 15 objectives, 495 online, 516 pricing, 652 product differentiation, 497 providing information, 495–496 retailing strategy, 458–459 stabilizing sales, 498–499 strategy, in marketing mix, 49–50 promotional allowance, 647 promotional items, 15 promotional mix, 499 advantages/disadvantages, 503–504 elements, 499–504 factors influencing, 512 funding, 512 nature of market, 510 nature of product, 510 nonpersonal selling, 500–503 optimal, 509–510 personal selling, 500, 567 pricing, 511 product lifecycle, 510–511 promotional pricing, 652 promotion strategy alternative, 225 budgeting, 513–515 international, 224–225 marketing mix, 49–50 pulling, 512–513 pushing, 512–513 retailing, 458–459 timing, 513 proprietary B2B transactions, 104, 108–109 prospecting, 578–579 Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com I-24 prosperity, 76 protective packaging, 440–441 protective tariffs, 213 PSAs See public service announcements psychographic segmentation, 292 advantages, 295 global, 294–295 VALS™, 293–294 psychological pricing, 650–651 psychology, 5, 138 Public Health Cigarette Smoking Act, 72 publicity, 502, 549 See also advertising nonpersonal selling, 502 public relations and, 549–551 public relations, 502, 548–549 ethics in, 556 marketing, 549 measuring effectiveness, 554 nonmarketing, 549 nonpersonal selling, 502 publicity and, 549–551 public service announcements (PSAs), 517 puffery, 555–556 pulling strategy, 512–513 purchase categories segmentation, 177 purchase decision/act, 159–160 purchase decision process, 178–179 purchase volume, 19 pure competition, 619 “pure-play” dot-com retailers, 116–117 pushing strategy, 512–513 push money, 594 PVC See polyvinyl chloride Q qualifying, 579 qualitative forecasting, 263–264, 266 quality, 243, 498 price-quality relationships, 654–655 as product strategy, 356–359 service, 358–359 TQM, 357 worldwide programs, 357–358 quantitative forecasting, 258, 263–266 quantity discounts, 646 cumulative, 647 noncumulative, 647 price quotations, 646–647 question marks, 54 quick-response merchandising, 327 quota sample, 251 R rack jobber, 469 radio, 541–543 radio-frequency identification (RFID), 80, 250, 320, 327, 390, 430, 440 logistics, 430–431 railroads, 73, 435 random-digit-dialing, 571 raw materials, 355 R&D See research and development (R&D) reach, 546 readership tests, 553 Read ID Act, 72 rebates, 331, 647–648 recalls, 65, 73, 83, 553 recession, 76–77, 144, 179, 456 reciprocal tax treaties, 212 reciprocity, 190 recovery, 76 recycling, 27, 32, 78, 91, 374 reference groups, 145–146 refunds, 590–591 regional shopping center, 458 regulatory agencies, 73–74 regulatory cost recovery fees, 607 reinforcement, 154–155 rejection, 394 related party trade, 204 relationship marketing, 12, 39, 194, 310, 567 airlines, 308–310 beginning early, 21 continuum, 314–316 elements, 312 emphasis, 311–312 evaluating, 330–332 focus, 332 interactive marketing and, 21–22 interdependent partnership level, 316 internal marketing, 312–313 IT and, 22 levels, 314–316 loyalty ladder and, 20–21 partnerships and, 22–23, 316 price level, 314 social interactions level, 314–315 social marketing and, 21–22 strategic alliances and, 22–23 transaction-based marketing shift, 20–23, 310–314 relationship selling, 573–574 relative advantage, 396 relevance, 383 relevant profile development, 297–298 reliability, 359 remanufacturing, 194 reminder advertising, 530 repeat buying, 475 repositioning, 302 research, 69, 250 See also marketing research brands, 238 computer, 80, 261–262 consumer behavior, 136–138 employee, 238 exploratory, 245 full-service research suppliers, 243 international marketing, 259 interpretative, 254, 260 limited-service research supplier, 243 media, 552 message, 552 research, 246 technology, 80 research and development (R&D), 642 research design, 246 resellers, 173 resource-producing industries, 172 Responsibility and Disclosure (CARD) Act, 72 responsiveness, 359 restrained spending, 144–145 résumés, A-4, A-6–A-10 subject index retail advertising, 534 retail cooperative, 428 retailer convergence, 465 retailers big-box, 468 brick-and-click, 474 categorizing, 460 chain stores, 461 convenience, 461 by form of ownership, 461 general merchandise, 463–464 independent, 461 Internet, 439 limited line, 462 by location, 465 luxury retailers, 67 off-price, 464 by product lines, 462–464 “pure-play” dot-com, 116–117 retailer convergence, 465 retailer-owned cooperatives/buying offices, 472 scrambled merchandising, 465 by shopping effort, 461 showroom/warehouse retailers, 464 specialty, 461 types, 460 retailing, 450 direct-response, 473–474 nonstore, 472–475 promotion strategy, 458–459 wheel of, 451 retailing strategy atmospherics, 460 components, 452 customer service, 455–456 fundamental steps, 451 location/distribution, 457–458 merchandising strategy, 454–455 pricing, 456–457 promotional, 458–459 return on investment (ROI), 21, 258, 612 revenue, 213 cost/revenue curves, 620–621 elasticity and, 623 revenue tariffs, 213 reverse channels, 420 reverse logistics, 116 RFID See radio-frequency identification right-time marketing, 105–106 risk taking, 23–24 rivalry, 44 Robinson-Patman Act, 71, 72, 608, 609, 651 See also Anti-A&P Act robotics, 80 ROI See return on investment routinized response behavior, 160–161 RSS, 102 rule of three, 51 S safety needs, 149 salary, 586 sales analysis, 245 sales attire, 575 sales branches, 468–469 sales calls, 418 Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it subject index sales force, 594 compensation, 586 evaluation/control, 586–587 motivation, 585 organization, 584–585 recruitment/selection, 582–583 supervision, 585 training programs, 583–584 sales force composite, 264 sales forecasting, 263 benefits/limitations, 263 in marketing plan, 262–263 qualitative forecasting, 263, 266 quantitative forecasting, 263, 266 software, 263 sales incentives, 577 sales managers, 581–582, 585, 587 sales offices, 469 sales orientation, 10 salespeople, 594 buyers’ expectations, 574 children, 569–570 distinguishing themselves, 573 selling goodwill, 577 sales pitch, 489 sales process approach, 579 closing, 581 demonstration, 580–581 follow-up, 581–582 objections, 581 in personal selling, 578–582 presentation, 579–580 prospecting, 578–579 qualifying, 579 sales promotion, 501, 566, 588, 594 consumer-oriented, 590–592 incentives to buy, 589 spending for, 589 trade, 592–594 sales quota, 586 sales tasks creative selling, 577 missionary selling, 577 order processing, 576 in personal selling, 576–578 sampling, 251, 591 satellite television, 74, 82, 539 scanning technology, 250 scoreboards, 546 scrambled merchandising, 465 screening, 399 sculptural physics, 399 search marketing, 121 secondary data, 246 caveat emptor, 251 collection, 247–251 government data, 247 online sources, 250–251 private data, 248–250 2010 U.S Census, 247–248 second mover strategy, 45 Secure Sockets Layer (SSL), 114 selective demand, 497 selective distribution, 423 self-concept, 155–156 www.downloadslide.com self-regulation, 74–75 seller partnerships, 325 seller’s market, 10 selling agents, 471 selling up, 459 sender, 491 seniors, 48, 74, 161, 285–286 service encounter, 358 service quality, 358–359 services, 187, 344, 345, 498 See also customer service; Internet service providers agents, 470–472 ASPs, 320 brokers, 110, 470–472 classifying, 348–356 defined, 345–346 emergency, 349 exporting, 206–207 financial services industry, 207 full-service research suppliers, 243 goods vs., 345–346 impulse, 349 limited-service research supplier, 243 merchant wholesalers, 470 quality of, 358–359 service sector role, 346–348 syndicated, 242–243 Web services, 108, 327 wholesaling, for customers/producersuppliers, 466 wholesaling intermediaries, 466 wireless, 13 service sector, 346–348 sex-based advertising appeals, 537 shaping, 155 shelf space, 454–455 Sherman Antitrust Act, 71, 72, 424 shopbots (bots), 111, 631, 660, 661 shoppers, 123, 136, 137 See also consumers shopping See also online shopping blogs, 102 comparisons, 111 cybershopping, 111 electronic shopping bag, 110 electronic shopping cart, 110 luxury, 100–101 shopping centers See also malls community, 457–458 lifestyle center, 458 locations in planned, 457–458 neighborhood, 457 power center, 458 regional, 458 shopping products, 350, 352 shortages, 78–79 showroom/warehouse retailers, 464 SIC See Standard Industrial Classification signature, 537 simple random sample, 251 single-product firms, 422 skimming pricing strategy, 641–642 See also market-plus pricing SKU See stock-keeping unit slogans, 384 slotting allowances, 349–350, 455 See also slotting fees I-25 slotting fees, 349–350 smart phones, 27, 51, 54, 110–111, 140, 223, 252, 315, 328–329 reaching children, 146 SMPRs See Social Media Press Releases snail mail, 117 social/belongingness needs, 149–150 social causes, 19 social classes, 146 social-cultural environment, 52, 82, 210 consumerism, 82–84 in marketing environment, 82–84 social influences Asch phenomenon, 144–145 in consumer behavior, 143–147 opinion leaders, 146–147 reference groups, 145–146 social marketing, 21–22 social media, 21, 36, 151, 175, 287 Social Media Press Releases (SMPRs), 36 social networking, 19, 36, 82, 101–102, 250, 256 advertising, 538 African Americans, 142 Internet communications, 118–119 reaching children, 146 social classes, 146 social responsibility, 25, 89, 93 defined, 89 ecology, 90–91 environmental issues, 90 ethics and, 24–26 global effect, 90 long-term effects, 90 in marketing, 25–26, 89–92 pyramid, 90 socioeconomic segmentation, 282 See also demographic segmentation sociology, 5, 138 soft currencies, 210 soft drink advertising, 87 solar panels, 80 sole sourcing, 182 sorting, 23–24, 415 spam, 71, 118 span of control, 585 special rates, 434 specialty advertising, 592 specialty products, 350–352 specialty retailers, 461 specialty stores, 462 spiffs, 594 split runs, 554 sponsorship, 504–505 sports marketing, 18 sports sponsorships, 19 spreadsheet analysis, A-22 spyware, 114 SSL See Secure Sockets Layer Standard Industrial Classification (SIC), 176 standardizing/grading, 23–24 staples, 349–350 start-up companies, 80 “staycations,” 36 step-out, 642 “stick-and-carrot approach,” 85 stock-keeping unit (SKU), 455 store location, 349 Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com I-26 straight rebuy, 189 strategic alliances, 23, 66, 119, 329–339 in marketing environment, 66 not-for-profit organizations and, 23 relationship marketing and, 22–23 vertical alliances, 23 strategic business units (SBUs), 53–54 strategic planning, 39–40, A-19 strategic window, 46–47 strategy See also advertising strategy; global marketing strategy; marketing strategy; pricing strategies; product strategy; promotion strategy; retailing strategy advertising, 531–534 B2B marketing, 192–195 competitive, 68–69 competitive pricing, 644–645 distribution, 49, 225, 457–458 distribution, in marketing mix, 49 first mover, 45 market development, 393 marketing channels, 421–425 in marketing mix, 50 marketing planning, 37–42 market penetration, 392 market segmentation, 298–300 multidomestic marketing, 224 origin, 39 penetration pricing, 642–644 product, 87 product development, 392–395 product diversification, 394 pulling, 512–513 pushing, 512–513 second mover, 45 skimming pricing, 641–642 stratified sample, 251 “street fashion,” 155 strengths, weaknesses, opportunities, and threats (SWOT), 45 stress, 159 See also anxiety strivers, 293–294 subcontracting, 221 subcultures, 141 African Americans as, 141–142 Asian Americans as, 141–143 Hispanic Americans as, 141–142 subliminal perceptions, 152 suboptimization, 433 subsidies, 214–215 substitute products, 67 suggestions selling, 459 supercenters, 464 supermarkets, 151 superstores, 125 supplemental carriers, 438 suppliers, 188, 466–467 supplies, 79, 355 supply, 619 supply chain management, 414, 429, 429–432, 441 supply chains, 2, 62, 328–329 See also value chain supply networks, 475 support teams, 327 surfer, 102 survey of buyer intentions, 264 Survey of Current Business, 248 Survey of Media Markets, 249 surveys, 243, 248–250, 264 fax, 256 focus groups, 238, 255 mail, 255–256 malls, 238 online, 256–258 personal interviews, 254–255 telephone interviews, 254 survivors, 293 sustainability, 50, 68–69, 91–92 sustainability index, 2–4 sustainable products, 26–28 sweatshops, 62–64 sweepstakes, 591 SWOT See strengths, weaknesses, opportunities, and threats SWOT analysis, 46, 60, A-24 syndicated services, 242–243 systems integration, 186 T tactical planning, 39–40 tag lines, 160, 167 tangibles, 359 target markets, 19, 49, 65, 276, A-24–A-25 career readiness, 283 marketing strategy, 47–48 target-return objective, 611 target returns, 626 tariffs, 213, 607 See also General Agreement on Tariffs and Trade; North American Free Trade Agreement defined, 213 import, 215 protective, 213–214 revenue, 213 task-objective method, 515 taxes, 212, 658 teams, 327 team selling, 574–575 teamwork, 490–491 technological environment, 79, 211–212 applying technology, 80–81 in marketing environment, 79–80 technology, 49–50, 64, 93, 227, 576, 661 advances, 55 applying in technological environment, 80–81 computer, in marketing research, 261–262 government sources, 80 green, 80 Internet, 178, 211 leveraging, 332 marketing environment and, 51 media, 21 not-for-profit organizations developing, 80 obsolete products and, 79–80 research, 80 revolution, social concerns addressed, 80 teenagers, 274–276 in age segmentation, 284 auto purchasing, 148 in family purchases, 148 social networking, 146 subject index telecommunications, 4, 9, 73, 74, 212, 490 Telecommunications Act, 73, 74 teleconferencing, 76 telemarketing, 71, 73, 507–508, 571 Telemarketing Sales Rule Amendments, 73 Telephone Consumer Protection Act of 1991, 571 telephone interviews, 254 television, 27, 146, 253, 490, 493 advertising, 151, 539–541 banned products, 541 cable, 74, 82, 539–541, 660 commercials, 151, 495 interactive, 320 nonpersonal selling and, 526 satellite, 74, 82, 539 temporary monopoly, 66 terrorist attacks, 76 test marketing, 258, 265, 400 texting, 287, 386 thinkers, 293 third generation (3G), 214 third party (contract) logistics firms (3PL firms), 432 3-D players, 393, 427 3G See third generation 3G networks, 3PL firms See third party (contract) logistics firms thrift stores, 47 ticket scalping, 608 TIGER See Topographically Integrated Geographic Encoding and Referencing system time-based competition, 69–70 time utility, TL See truckload tobacco industry, 72, 74, 85 See also cigarette industry Topographically Integrated Geographic Encoding and Referencing system (TIGER), 248 total quality management (TQM), 357 tourism, 17–18, 67, 207 toy fairs, 592–593 toys, TQM See total quality management trade, agreements, associations, 178 controlling, 215 countertrade, 226 deficit, 347 gap, 79 regulation, 212 Trade Act (1998), 213 trade allowances, 592–593 trade barriers embargo, 214 exchange control, 215 global marketing, 213–215 import quotas, 214 subsidies, 214–215 trade discounts, 646 trade dress, 387 trade fairs, 469 trade-in, 647 trade industries, 173, 195 trademarks, 49, 386 Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it subject index CTM, 218 global, 387–388 Internet and, 387 for product identification, 386–388 protecting, 386–387 trade dress, 387 trade promotions, 501, 592 dealer incentives/contests/training programs, 591, 594 management, 515 POP advertising, 593 trade allowances, 592–593 trade shows, 180, 579, 593–594 trade shows, 180, 579, 593–594 training programs, 583–584, 594 transaction-based marketing, 20, 310 closing deals, 20 goals, 311 relationship marketing shift, 20–23, 310–314 transaction economies, 467 transfer price, 657–658 transparency, 62 transportation, 23–24, 49 air freight, 437–438 carriers, 73, 434–435 comparing modes, 438 major modes, 435–438 motor carriers, 435–436 in physical distribution, 434–438 pipelines, 436–437 railroads, 73, 435 water carriers, 436 trend analysis, 265 trendsetters, 146, 156 trial, 394 truck jobber, 470 truckload (TL), 438 truck wholesaler, 470 See also truck jobber trunk shows, 417 truth in advertising, 87 t-shirts, 545 2010 U.S Census, 247–249 tying agreement, 424 U unaided recall tests, 553 undifferentiated marketing, 299 See also mass marketing unemployment, 77 unfair trade laws, 608–609 uniform-delivered pricing, 648–649 unitized pallets, 441 unit pricing, 651 universal product code (UPC), 250, 390 unsought products, 348 UPC See universal product code upstream management, 430–431 users, 191 utility, 5, 66, 74 defined, form, 5–6 ownership, place, time, types, 5–6 www.downloadslide.com V vacationing, 67 VALS™, 293–294 value, 292, 498 value-added service, 430 value analysis, 190 value chain, 328, 429 value pricing, 613–614 variable costs, 620 variety stores, 463 vending machines, 421 vendor analysis, 190 vendor-managed inventory (VMI), 327–328, 440 vendors, 353 venture teams, 397–398 vertical alliances, 23 vertical marketing systems (VMS), 427–429 videoconferencing, 76 video game generation, 287 Vietnam War, 287 view-through, 554 viral marketing, 321, 502 virtual conferences, 38 virtual reality, 151 virtual sales support, 580 virtual sales team, 575 virtual storefronts, 104 vishing, 116 visual buzz, 22 VMI See vendor-managed inventory VMS See vertical marketing systems voice over Internet Protocol (VoIP), 4, 80–81, 102, 116 VoIP See voice over Internet Protocol volatile demand, 182 volume objectives, 612–614 volunteerism, 140 W WAP See Wireless Application Protocol warehouse clubs, 67, 144, 463 warehousing, 49, 261, 439–440, 464, 475 warranties, 49 Webcams, 545–546 Web contacts, 104 Web services, 108, 327 Web sites, 71, 82, 83, 87, 102 See also Internet assessing, 123–124 business models, 106 click-through rate, 124 conversion rate, 124 corporate, 107, 124 domain name, 122 effective Web presence, 121–123 engagement, 124 exclusives, 110 goals, 121 implementation/interest, 121–123 maintaining, 122–123 marketing, 107 navigation, 123 new product information, 103 I-27 pricing, 123 profitability, 123 revamping, 123 for shopping comparisons, 111 site design, 116–117 standards, 123 successful development, 121 Web-to-store shoppers, 123 Wheeler-Lea Act, 72 wheel of retailing, 451 “Who Dat?” slogan, 384 wholesalers, 24, 416, 465, 475 cash-and-carry, 469 limited-function, 469 mail-order, 470 merchant, 469–470 services, for customers/producersuppliers, 466 truck, 470 wholesaler-sponsored voluntary chain, 428 wholesaling intermediaries, 465 creating utility, 465–466 functions, 465–468 independent, 469–471 lowering costs, 467–468 services, 466 transaction economies through, 467 types, 468–469 widget, 121, 320 Wi-Fi See wireless fidelity wikis, 119 Wi-Max, 68 win-back, 238 wind energy, 69 Wireless Application Protocol (WAP), 459 wireless fidelity (Wi-Fi), 67–68, 80, 252, 431 women, 48, 161 auto purchasing, 148 in family purchases, 147–148 purchase influence, 278, 283 shoppers, 137 women’s movement, 287 wool, 366–367 word of mouth, 151 world’s economies, World Trade Organization (WTO), 8, 213, 214, 217, 230 World War II, 10, 287 Wow! factor, 591 WTO See World Trade Organization X XML See Extensible Markup Language Y yield management, 628–629 youth, 140 yo-yos, Z zapping, 535 Zip codes, 608 zone pricing, 649 Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com I-28 international index A Africa, 8, 104, 150, 204, 211, 294 Americas, 246 Andorra, 202 Argentina, 217 Asia, 8, 62–64, 101, 204, 208, 223–224, 246, 393 developing, 294 economy, 204 Internet use, 103–104, 211 outsourcing, 184 relationship marketing, 194 technology research, 80 workers, 79 Association of Southeast Asian Nations (ASEAN), 213 Australia, 141, 173, 232, 295, 367, 385 airline travel, 309 bottled water, 216 congestion pricing, 617 Internet use, 104, 211 language, 494 TV networks, 207 Austria, 212, 218, 269 B backshoring, 347 Bahamas, 306 Bahrain, 202 Belgium, 211, 218, 269 Brazil, 68, 141, 181, 217, 225, 599 Bulgaria, 212, 218 C Canada, 4, 9, 26, 27, 157, 172, 175–176, 208, 217, 222, 233, 291, 542, 630 airline travel, 309 battery roundup, 420 bottled water, 216 economy, 204 fire-safe cigarettes, 74 FTAA, 217 labels, 391 language, 494 NAFTA, 217 nearshoring, 184 plastic shopping bags, 82 sports marketing, 18 tariffs, 607 U.S trading partner, 205 wireless service, 612 Caribbean, 69, 104, 211, 306, 494 Central America, 184, 203, 206, 217 Central American Free Trade Agreement-DR (CAFTA-DR), 217 Chile, 216–217, 223 China aircraft manufacture, 67 auto market, 607 CAFTA, 213 cell phone satellites, 181 electric bicycle industry, 76 emerging markets, 612 exports to United States, fast-food, 207 GDP, 77, 79, 209–210 global sourcing, 181 gray market, 427 import quotas, 214 Internet use, 103, 213 investments, 222 millionaires, 292 offshoring destination, 183–184 oil/gas operations, 206 outsourcing, 215 pizza, 208 population, 210, 280 private jets, 599 sports marketing, 18 tourism, 207 trade controls, 215 U.S imports, 207 U.S trading partner, 205 China-ASEAN Free Trade Area (CAFTA), 213 Colombia, 217 common market, 215 Costa Rica, 202 countertrade, 226 Croatia, 218 Cuba, 214, 227 customs union, 215 Cyprus, 218 Czech Republic, 218 D Denmark, 207, 218 Dominican Republic, 217 dumping, 215 E Ecuador, 202, 217, 306 Egypt, 9, 181, 208 El Salvador, 202 Estonia, 218 euro, 8, 140, 210, 218 Europe, 8, 9, 33, 101, 223, 233, 246, 295, 382, 432, 500, 505, 538 auto industry, 225, 643 bananas, 214 cell phones, 560 economy, 204 electric bicycle industry, 76 generic products, 380 GMOs, 212 Internet use, 104, 211 intimates, 294 investors, 222 ISO standardization, 213 open skies agreement, 426 outsourcing, 184 product preferences, 140 recession, 79 technology research, 80 TV networks, 207 wireless service, 318 European Court of Justice, 212 European Union (EU), 79, 140, 192, 214, 358 airline travel, 309 bananas, 214 benefits, 219 euro, 210, 218 GMOs, 212 members, 218 exchange control, 215 exchange rate, 210 exporting, 8, 204–205, 213, 220 China to U.S., in global marketing, 220–221 service/retail, 206–207 F Finland, 9, 218, 269 France, 166, 218, 269, 291, 464 debate, 210 GMOs, 212 handshaking, 211 income data, 292 investments, 222 oil/gas operations, 206 U.S trading partner, 205 free trade area, 215 Free Trade Area of the Americas (FTAA), 217 friendship, commerce and navigation treaties (FCN), 212 G General Agreement on Tariffs and Trade (GATT), 213, 216–217, 230 Germany, 18, 141, 194, 218–219, 222, 225, 232, 269, 294–295, 481 census, 291 GMOs, 212 handshaking, 211 humor, 211 millionaires, 292 Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com international index private brands, 380 U.S trading partner, 205 global marketing, 5, 48 benefits, 207–209 contractual agreements, 221 developing global marketing strategy, 223–226 direct investment, 221–222 dumping, 215 economic environment, 209–210 employment and, 204 exporting, 220–221 globalization and, 219 laws in, 212–213 levels of involvement, 220 marketing mix, 223–226 from multinational corporations, 222–223 multinational economic integration, 215–219 new era, 227 political-legal environment, 212–213 role of, 205–209 service/retail exports, 206–207 social-cultural environment, 210 technological environment, 211–212 trade barriers, 213–215 world’s largest marketers, 206 global marketing strategy, 9, 220–226, 223 Great Britain, 292, 494, 542 Greece, 166, 218 Guatemala, 202, 217 Gulf of Aden, 437 H Haiti, 15 homeshoring, 347 Honduras, 202, 306 Hong Kong, 4, 205, 207, 211, 223–224, 427, 481, 542 Hungary, 79, 212, 218, 497 I importing, 8, 204, 206, 214–215, 220–221 import quotas, 214 India, 8, 101, 202, 206, 225–226, 230, 393, 481, 599 auto industry, 643 cell phone satellites, 181 electric bicycle industry, 76 fast-food, 207 franchises, 221 GDP, 77, 209–210 global sourcing, 181 Internet use, 103 investments, 222 kirana-style markets, 48 offshoring destination, 183 outsourcing, 210 pizza, 208 population, 210, 280 Western influences, 48 Indonesia, 202, 205, 224, 233, 280 International Monetary Fund (IMF), 213 International Organization for Standardization (ISO), 213, 358 Ireland, 208, 218, 292, 494 Italy, 101, 141, 218, 269, 599, 617 J Jamaica, 217 Japan, 9, 33, 141, 173, 206, 222, 225, 233, 382, 393, 481, 505, 613, 661 airline travel, 309 census, 291 consumer durable industry, 206 handshaking, 211 income data, 292 Internet use, 103 investors, 222 language, 494 millionaires, 292 population, 280 recession, 79 signs/gestures, 493 sports marketing, 18 technology research, 80 U.S trading partner, 205 Jordan, 181 K Korea, 232, 393, 613 Kuwait, 292 L Latin America, 202, 204, 260, 412 bananas, 214 consumers, 259 Internet use, 211 TV networks, 207 Latvia, 218 Lebanon, 481 Lithuania, 218 Luxembourg, 9, 218 M Macau, 69 Macedonia, 218 Malaysia, 181, 613 Malta, 218 Mediterranean, 493 Mexico, 4–5, 8, 51, 176, 202, 217, 225, 230, 243, 463 airline travel, 309 FTAA, 217 language, 494 NAFTA, 217 nearshoring, 184 outsourcing, 215 pizza, 208 population, 280 private jets, 599 tariffs, 214, 607 U.S trading partner, 205 Middle East, 8, 104, 204, 211, 246, 274, 294, 538 I-29 multidomestic marketing strategy, 224 multinational corporations, 222–223 N nearshoring, 184 Netherlands, 5, 206, 218, 222, 269, 302 New Zealand, 295, 366–367, 494, 613 Nicaragua, 202, 631 North America, 9, 131, 203, 359, 434 foreign trade, 204 Internet use, 104, 211 outsourcing, 184 North American Free Trade Agreement (NAFTA), 8, 72, 176, 217 North American Industry Classification System (NAICS), 176, 178, 180 Norway, 309 O Oceania, 211 offshoring, 183–185, 347 Oman, 295 Organization of Petroleum Exporting Countries (OPEC), 226 P Panama, 69, 412–414 Peru, 217 Philippines, 295, 393 Poland, 218 Portugal, 141, 218 Puerto Rico, 274, 306 R related party trade, 204 revenue tariffs, 213 Romania, 218, 494 Russia, 47, 79, 208–209, 217, 223, 274, 610 humor, 211 pizza, 208 private jets, 599 S Saudi Arabia, 205, 295, 441 Scandinavia, 18 Scotland, 109 Singapore, 211, 224, 292, 565, 617 Slovakia, 218 Slovenia, 218 soft currencies, 210 South Africa, 9, 494 South America, 206, 233, 306, 538 South Korea, 5, 205, 208, 214, 225–226, 658 Soviet Union, 226 Spain, 194, 202, 218, 292, 459, 463 subcontracting, 221 subsides, 214–215 Sweden, 210–211, 218, 617 Switzerland, 211, 233, 292, 309, 358 Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com I-30 T Taiwan, 393 tariffs, 213–215, 607 Thailand, 210, 224, 481 Trinidad and Tobago, 217, 245, 306 Tunisia, 493 Turkey, 218, 481 U United Arab Emirates, 292, 481 United Kingdom, 18, 27, 69, 101, 112, 173, 206, 218, 222, 225, 230, 232, 269, 385, 387, 469, 481, 658 congestion pricing, 617 investments, 222 investors, 222 oil/gas operations, 206 plastic shopping bags, 82 private brands, 380 Tesco towns, 630–631 TV networks, 207 U.S trading partner, 205 wireless service, 328 United Nations, 204 United States, 27, 33, 69, 101, 116, 140–141, 157, 166, 172, 175–176, 202, 204, 214, 217, 222, 230, 232, 244–245, 274, 306, 314, 358, 367, 379–380, 412, 435, 469, 486, 500, 612, 630 advertising, 500, 528–529 airline travel, 309 auto industry, 148, 167, 173, 225, 643 baseball teams, 504 battery roundup, 420 billboards, 544 blogs, 103, 119 bottled water, 216 CAFTA-DR, 217 cell phone market, 69, 70 China exports to, congestion pricing, 617 consumers, 144, 291 culture, 139, 142 defense programs, 195 department stores, 463 direct marketing, 505 discretionary income, 78 dumping, 215 e-business, 102 economy, 204, 221–222, 654 electricity industry, 74 ethnic populations, 287–288 exports, 205, 207 fire-safe cigarettes, 74 foreign markets attracted to, franchises, 428 FTAA, 217 GDP, 79, 209–210 geographic segmentation, 279–280 global market research, 259 GMOs, 212 goods/services, 347 government customer group, 192 gray market, 426–427 handshaking, 211 Hispanic consumers, 82, 142 humor, 211 import quotas, 214 inflation, 77 international marketers target, 226–227 Internet development, 80 Internet users, 103, 113 intimates, 294 investments, 222 labels, 390–391 legal environment, 70, 212–213 manufacturing concentration, 177 market dominance, 223 Mexico markets and, 51 millionaires, 292 mobile advertising, 545 NAFTA, 217 offshoring, 183 oil/gas operations, 206 open skies agreement, 426 PC sales, 614 pipelines, 436 international index plastic shopping bags, 82 population, 48, 161, 277, 280 private brands, 380 product recalls, 65 raw materials purchases, 206 recession, 79 retailing, 206 sales managers, 582 sales promotion, 588 search advertising, 523 service firms, 346 signs/gestures, 493 soda consumption, 45 spending, 78, 137 sports leagues, 219 sports marketing, 18 subcultures, 141 tariffs, 213–215, 607 technology research, 80 third-party logistics, 432 toy industry, trademark protection, 387 trading partners, 205 trucking, 434 2010 Census, 247–249 unemployment, 77 vacationers, 67 VoIP business, 80 volunteers, 14 wireless service, 318, 328, 612 Uruguay, 216–217 V Venezuela, 79, 205, 217 Vietnam, 8, 181, 214 W World Trade Organization (WTO), 8, 213, 214, 217, 230 Z Zimbabwe, 622 Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com SUSTAINABILITY GLOBALIZATION ENVIRONMENTAL CONCERNS ETHICS NEW TECHNOLOGIES EMERGING MARKETS Marketing continues to change at a record pace Only one text keeps you well ahead of the curve — edition after edition Boone & Kurtz’s Contemporary Marketing remains synonymous with innovation, equipping instructors and students with the very best teaching and learning solutions on the market Period In this edition, we are proud to present our continuing video case on Greensburg, Kansas Greensburg, Inc Continuing Case Video on DVD You’ve come to expect only the best from us in choosing our continuing video case concepts, and we not disappoint with our focus on a fresh, environmentally-minded topic Greensburg, Inc is a series of videos that describes the rebuilding of Greensburg, Kansas, into a model green community following a tornado that destroyed much of the town The rebuilding process has taken organization, coordination, determination, and a large amount of marketing Students will hear from the town leaders instrumental in the rebuilding process, as well as from everyday people involved in the tragedy and reconstruction efforts Students and instructors will see how the town is rebuilding from the ground up, brick by brick, focusing at each step on creating a sustainable community that can serve as an example to other communities—small and large—across the nation Find out more: To access additional course materials and companion resources, please visit www.cengagebrain.com At the CengageBrain.com home page, search for the ISBN of your title (from the back cover of your book) using the search box at the top of the page This will take you to the product page where free companion resources can be found Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it www.downloadslide.com M A K E T H E G R A D E W I T H C O U R S E M AT E ! The more you study, the better the results Cengage Learning’s Marketing CourseMate helps you make the most of your study time by accessing everything you need to succeed in one place features include: • An Interactive eBook with highlighting, note taking, and an interactive glossary • Interactive Learning Tools— read your textbook, take notes, review flashcards, watch videos, and take practice quizzes—online with CourseMate • It’s Affordable—about half the cost of a traditional printed textbook For more information about how CourseMate can help you make the grade, ask your instructor or visit CengageBrain.com Copyright 2010 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it ... www.downloadslide.com 415 Marketing Channels and Supply Chain Management The Role of Marketing Channels in Marketing Strategy Describe the types of marketing channels and the roles they play in marketing strategy... BusinessWeek, March 2, 20 09, 34 Copyright 20 10 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content... Copyright 20 10 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook