Principles of marketing

Principles of Marketing This page intentionally left blank Principles of Marketing 17e Philip Kotler Northwestern University Gary Armstrong University of North Carolina with Marc Oliver Opresnik St Gallen Management Institute Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong Tokyo • Seoul • Taipei • New Delhi • Cape Town • Sao Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan Dedication To Kathy, Betty, Mandy, Matt, KC, Keri, Delaney, Molly, Macy, and Ben; and Nancy, Amy, Melissa, and Jessica This page intentionally left blank about the authors As a team, Philip Kotler and Gary Armstrong provide a blend of skills uniquely suited to writing an introductory marketing text Professor Kotler is one of the world’s leading authorities on marketing Professor Armstrong is an award-winning teacher of undergraduate business students Together, they make the complex world of marketing practical, approachable, and enjoyable Philip Kotler is S.C Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management, Northwestern University He received his master’s degree at the University of Chicago and his Ph.D at M.I.T., both in economics Dr Kotler is the author of Marketing Management (Pearson), now in its fifteenth edition and the most widely used marketing textbook in graduate schools of business worldwide He has authored more than 50 other successful books and has published more than 150 articles in leading journals He is the only three-time winner of the coveted Alpha Kappa Psi award for the best annual article in the Journal of Marketing Professor Kotler was named the first recipient of four major awards: the Distinguished Marketing Educator of the Year Award and the William L Wilkie “Marketing for a Better World” Award, both given by the American Marketing Association; the Philip Kotler Award for Excellence in Health Care Marketing presented by the Academy for Health Care Services Marketing; and the Sheth Foundation Medal for Exceptional Contribution to Marketing Scholarship and Practice He is a charter member of the Marketing Hall of Fame, was voted the first Leader in Marketing Thought by the American Marketing Association, and was named the Founder of Modern Marketing Management in the Handbook of Management Thinking His numerous other major honors include the Sales and Marketing Executives International Marketing Educator of the Year Award; the European Association of Marketing Consultants and Trainers Marketing Excellence Award; the Charles Coolidge Parlin Marketing Research Award; and the Paul D Converse Award, given by the American Marketing Association to honor “outstanding contributions to science in marketing.” A recent Forbes survey ranks Professor Kotler in the top 10 of the world’s most influential business thinkers And in a recent Financial Times poll of 1,000 senior executives across the world, Professor Kotler was ranked as the fourth “most influential business writer/guru” of the twentyfirst century Dr Kotler has served as chairman of the College on Marketing of the Institute of Management Sciences, a director of the American Marketing Association, and a trustee of the Marketing Science Institute He has consulted with many major U.S and international companies in the areas of marketing strategy and planning, marketing organization, and international marketing He has traveled and lectured extensively throughout Europe, Asia, and South America, advising companies and governments about global marketing practices and opportunities Gary Armstrong is Crist W Blackwell Distinguished Professor Emeritus of Undergraduate Education in the KenanFlagler Business School at the University of North Carolina at Chapel Hill He holds undergraduate and master’s degrees in business from Wayne State University in Detroit, and he received his Ph.D in marketing from Northwestern University Dr Armstrong has contributed numerous articles to leading business journals As a consultant and researcher, he has worked with many companies on marketing research, sales management, and marketing strategy But Professor Armstrong’s first love has always been teaching His long-held Blackwell Distinguished Professorship is the only permanent endowed professorship for distinguished undergraduate teaching at the University of North Carolina at Chapel Hill He has been very active in the teaching and administration of Kenan-Flagler’s undergraduate program His administrative posts have included Chair of Marketing, Associate Director of the Undergraduate Business Program, Director of the Business Honors Program, and many others Through the years, he has worked closely with business student groups and has received several UNC campuswide and Business School teaching awards He is the only repeat recipient of the school’s highly regarded Award for Excellence in Undergraduate Teaching, which he received three times Most recently, Professor Armstrong received the UNC Board of Governors Award for Excellence in Teaching, the highest teaching honor bestowed by the sixteen-campus University of North Carolina system Marc Oliver Opresnik is Professor of Marketing and Management and Member of the Board of Directors at SGMI St Gallen Management Institute, a leading international business school In addition, he is Professor of Business Administration at Luebeck University of Applied Sciences as well as a visiting professor to international universities such as the European Business School in London and East China University of Science and Technology in Shanghai He has 10 years of experience working in senior management and marketing positions for Shell International Petroleum Co Ltd and is the author of numerous articles and books Along with Kevin Keller and Phil Kotler, he is co-author of the German edition of Marketing Management In addition, he is a co-editor and member of the editorial board of several international journals such as Transnational Marketing, Journal of World Marketing Summit Group, and International Journal of New Technologies in Science and Engineering He was also appointed Chief Research Officer at Kotler Impact Inc., Philip Kotler’s international company His responsibilities include the global development, planning, implementation, and management of university courses and executive training as well as global research initiatives and cooperations As president of his consulting firm Opresnik Management Consulting, Professor Opresnik works as a coach, keynote speaker, and consultant for numerous institutions, governments, and international corporations, including Google, Coca-Cola, McDonald’s, Dräger, RWE, SAP, Porsche, Audi, Volkswagen, Shell International Petroleum Co Ltd., Procter & Gamble, Unilever, L’Oréal, Bayer, BASF, and Adidas More than 100,000 people have benefited professionally and personally from his work as a coach in seminars on marketing, sales, and negotiation and as a speaker at conferences all over the world, including locations like St Gallen, Davos, St Moritz, Berlin, Houston, Moscow, London, Paris, Dubai, and Tokyo This page intentionally left blank Brief Contents Preface 17 Acknowledgments 23 Part 1 Part Part 10 11 12 13 14 15 16 17 Part 18 19 20 Appendix Appendix Appendix Defining Marketing and the Marketing Process 26 Marketing: Creating Customer Value and Engagement 26 Company and Marketing Strategy: Partnering to Build Customer Engagement, Value, and Relationships 62 Understanding the Marketplace and Consumer Value 90 Analyzing the Marketing Environment 90 Managing Marketing Information to Gain Customer Insights 122 Consumer Markets and Buyer Behavior 156 Business Markets and Business Buyer Behavior 186 Designing a Customer Value–Driven Strategy and Mix 210 Customer Value–Driven Marketing Strategy: Creating Value for Target Customers 210 Products, Services, and Brands: Building Customer Value 242 Developing New Products and Managing the Product Life Cycle 278 Pricing: Understanding and Capturing Customer Value 306 Pricing Strategies: Additional Considerations 330 Marketing Channels: Delivering Customer Value 356 Retailing and Wholesaling 390 Engaging Consumers and Communicating Customer Value: Integrated Marketing Communication Strategy 422 Advertising and Public Relations 450 Personal Selling and Sales Promotion 478 Direct, Online, Social Media, and Mobile Marketing 510 Extending Marketing 540 Creating Competitive Advantage 540 The Global Marketplace 566 Sustainable Marketing: Social Responsibility and Ethics 596 Marketing Plan 627 Marketing by the Numbers 637 Careers in Marketing 655 Glossary 667 References 675 Index 705 This page intentionally left blank Index PLC concept and, 265, 291–292 positioning, 35 retailing and, 392–393 superfans, 218–219 unit pricing, 608 Brand sponsorship, 265, 267–270 co-branding, 269–270 licensing, 268–269 national v store, 267–268 Brand story (Converse), 463–464 Brand strategies brand equity/value, 264–265 building strong brands, 265–267 Brand value, 264–265 Break-even pricing, 315–316 Bribery, ethics and, 619 Brokers, 413, 414 B-to-B digital marketing, 198–201 Budget advertising, 456–462, 464–468 in marketing plan, 80, 81 promotion budgets, 437–439 See also Advertising budget; Promotion budget Business legislation regulating, 110 marketing channels of, 361 sustainable marketing and, 613–615 Business analysis, new product development and, 285 Business buyer process, 188 Business buyer decision process general need description, 196 order-routine specification, 197 performance review, 197 problem recognition, 195–196 product specification, 196 proposal solicitation, 196 stages of, 195 supplier search, 196 supplier selection, 197 Business buying behavior B-to-B brands, 186–187 buying situations, 191–192 decision process, 195–197 See also Decision process, business buyer digital and social media marketing, 197–201 e-procurement/online purchasing, 197–198 influences on, 192–193, 195 institutional/government markets and, 199–203 model of, 191 process of, 192 Business markets, 96, 188–189 buying unit, 189 decision types, 189–190 segmenting, 219–220 structure/demand, 189 Business norms, culture and, 576 Business portfolio, 66–67 Business promotions, 497, 502 Business services, 248 Business-to-business brands and (IMB), 186–187 See also Business buying behavior competitor market shares and, 546 digital/social media marketing, 198–201, 491–492 e-procurements, 198 sales, 484 telemarketing and, 530 Butterflies, customers, 46 Buyer behavior See Consumer buyer behavior Buyer decision process, 175 alternatives, evaluation of, 177 information search, 176–177 need recognition, 176 postpurchase behavior, 177–178 purchase decision, 177 Buyer-readiness stages, communication and, 432 Buyers, 192 direct and digital marketing and, 514 influences on business, 193 power of, 222 price changes and, 344–345 Buyer’s rights, 607 Buying center, 192 Buying decision behavior complex, 174 dissonance-reducing, 174 four types, 174 habitual, 174–175 new products, 178–180 variety-seeking, 175 Buzz marketing, 163, 435–436 By-product pricing, 335 C Call objectives, 494 Call plan, 488 Call reports, 489 CAN-SPAM Act (2003), 110, 533 Capital items, 248 Captive-product pricing, 334–335 Caring capitalism, 111 Cash cows, 67, 69 Cash discount, 335 Cash rebates, 338 Cash refunds, 499 Catalog marketing, 514, 529, 567 Category killers, 395 Causal research, 131 Cause-related marketing, 111 Central American Free Trade Agreement (CAFTA-DR), 572 Cents-off deals, 499 Channels of distribution See Distribution channels Charity, cause-related marketing and, 111 Chief marketing officer (CMO), 82 Chief privacy officer (CPO), 148 Children child-proof packaging and, 252 influence on buying decisions, 166 online privacy and, 533–534 protecting online, 532 social media and, 622 target marketing and, 227, 239 Children’s Online Privacy Protection Act (2000), 110, 533 Children’s Television Act (1990), 110 Citizen-action publics, 95 Clayton Act (1914), 110, 348, 375, 376 Closing, selling process, 495 Cloud-based computing model, 478–479 Cluster (area) sample, 139 721 Co-branding, 269–270 Codes of ethics, 619 Cognitive dissonance, 178 Cold calling, 493 Color, message appeal and, 435 Commercialization, new product development and, 287 Commercial noise, 605–606 Commission-based compensation, 487–488 Communicability, adoption rate, 180 Communication adapting for global market and, 587–588 channels, 435–436 effects, of advertising and, 468 marketing See Marketing communications process, 430–432 promotion mix and, 424–425 objectives, 432–433 skills, selling process and, 494–495 tools, 485, 514 Community shopping center, 404 Company buying sites, 198 Company-wide strategic planning, 64–66 Comparative advertising, 454–456 Compensation, of salespeople, 487–488 Competition-based pricing, 317 Competition review, in marketing plan, 81 Competitive advantage, 542 ethics and, 562 identify, 230–231 promoting differences, 231–232 Competitive analysis competitor objectives, 545 competitor reactions, 546–547 competitor strategies, 545–546 good or bad competitors, 547–548 identifying competitors, 542–545 industry/market points of view, 543 intelligence system, 548 steps in analyzing, 543 strengths/weaknesses, 546, 547 uncontested market space, 548–549 Competitive marketing intelligence, 127–130 Competitive marketing strategy, 542 challenger strategies, 555, 557–558 competitive positions, 553–554 customer/competitor orientations, 559–560 customer intimacy, 551, 553 differentiation, 551 evolving company orientations, 560 focus, 551 market follower strategies, 555, 558 market leader strategies, 554–557, 555 market niche strategies, 555, 558–559 Microsoft and, 540–542 operational excellence, 551 overall cost leadership, 550–551 product leadership, 551, 553 types of marketing, 549–550 value disciplines, 551, 553 Competitive-parity method, promotion budget, 438 Competitor-centered company, 560 Competitors idea generation and, 282 marketing strategy of, 227 microenvironment and, 94 price changes and, 345–346 722 Index Complex buying behavior, 174 Concentrated marketing, 223–224 Concept development, 284 Concept testing, 284 Conformance quality, 249–250 Consumer buyer behavior African Americans, 160–161 age/life stage, 167 Asian Americans, 161 beliefs/attitudes, 173 complex buying behavior, 174 cultural and, 159 decision process, 175 See also Buyer decision process dissonance-reducing, 174 economic situation, 168 family, 164–166 groups and social networks, 162–164 Hispanic Americans, 160 learning, 173 Lenovo, 156–157 lifestyle and, 168 model of, 158–159 motivation, 169, 171–172 occupation, 167 perception, 172 personality/self-concept, 168–169 roles/status, 166 social class, 162 subcultures and, 160–161 total market strategy, 161–162 variety-seeking, 175 Consumer expectations, 177–178 Consumer expressions, advertising and, 465 Consumer-generated content, 462–464 Consumer-generated marketing, 42–43 Consumer impressions, advertising and, 465 Consumer insights team, 125 Consumerism, sustainable marketing and, 607–608 Consumer market, 96, 158, 213 See also Market segmentation Consumer-oriented marketing, 613 Consumer perception dimensions, 264–265 Consumer products See also Product entries convenience, 246, 247 defined, 246 safety, 110, 298, 602 shopping, 246, 247 specialty, 247 type of, 247 unsought, 247 Consumer Product Safety Act (1972), 110, 298 Consumer promotions, 496–500 brand engagement and, 497 tools for, 498–500 Consumer protection consumer rights, 607–608 legislation and, 109, 110 Consumer rights, 607–608 Consumers AIO dimensions of, 168 long-run welfare of, 37 marketing channels and, 361 marketing impact on, 600–604 online privacy, advertising and, 532–533 rights/responsibilities, 607–608 spending cutbacks, 405–406 Contact methods, data collection focus group interviewing, 135–136 mail/telephone/personal interviewing, 134–135 online behavioral/social tracking/ targeting, 137–138 online marketing research, 136–137 Content, consumer-generated, 462–464 Content sites, 515 Content strategy, 460 Contests, consumer promotions, 499 Contextual advertising, 518 Continuous inventory replenishment systems, 381 Contract logistics, 383 Contract manufacturing, 581 Contractual VMS, 364 Controlled test markets, 287 Controls, in marketing plan, 81 Convenience products, 246 Convenience sample, 139 Convenience stores, 394, 395, 584–585 Conventional distribution channels, 363 Conventions, business promotions, 502 Core beliefs, 112 Core customer value, 245, 246 Corporate chains, 397 Corporate giving, 111 Corporate identity materials, 472 Corporate image marketing, 248 Corporate marketing ethics policies, 617 Corporate VMS, 363–364 Cost-based pricing break-even analysis/target return pricing, 315–316 cost-plus pricing, 315 cost per unit, production levels and, 314 production experience and, 314–315 types of costs, 313 value-based pricing v., 310 Cost per point, 475 Cost per thousand (CPM), 475 Cost-plus pricing, 315 Costs media, 467 marketing, 600–601 salespeople training and, 487 social media marketing and, 523 of sustainability, 622–623 types of, 313 Coupons, 498–499, 505 Cradle-to-cradle practices, 609 Creative concept, 460 Creative selling, 481 CRM See Customer relationship management Cross-company logistics teams, 382 Cross-functional teamwork, 381–383 Cross-market segmentation, 220–221 Crowdsourcing, 282–283 Cues, minor stimuli, 173 Cultural environment of international trade, 575–578 of marketing strategy, 111–114 values, persistence of, 112 Cultural pollution, 605–606 See also Social criticisms of marketing Culture beauty and, 593–595 business norms and, 576 consumer buyer behavior and, 159 disposable clothing, 603 global marketing and, 578 international marketing research and, 146 manners, international marketing and, 194–195 segmenting international markets and, 220–221 sustainability and, 623 violation of norms, 575–576 Customer benefits, 460 Customer Business Development (CBD) teams, 483 Customer-centered company, 560 Customer-centered new product development, 287–288 Customer-driven companies, 36 Customer-driven marketing strategy, designing, 212 Customer engagement brands and, 272 digital/social media and, 41–42 direct/digital marketing and, 512 mobile marketing and, 526–527 social selling and, 490 Customer-engagement marketing, 41–42 Customer equity brand value and, 265 building, 45–46 Customer experiences, with product / services, 245 Customer insights data and, 127 Ferrero, 122–123 marketing and, 124 using/gaining, 125–126 Customer intimacy, 551 Customer lifetime value, 44 Customer loyalty, 44 Customer-managed relationships See also Customer engagement digital/social media and, 41–42 Customer management, 34 Customer management organization, 82 Customer-perceived value, 38 Customer relationship levels/tools, 40–41 managing, selling process and, 495–496 planning marketing and, 72–73 Customer relationship management (CRM), 38–39, 72, 373, 375 data analysis and, 141 salesforce, 478–479 Customer value argos and society, 60 catalog retailing, 59 digital retailing, 59–60 market offerings, 59 offers, 60 same-day delivery, 59 Customers idea generation and, 282 marketing microenvironment and, 96 redlining, 603–604 retailing, brands and, 392–393 sales force/company links and, 481–482 targeting select, 34 types of, 46 walking the customer, ethics and, 506 Index Customer sales force structure, 483 Customer satisfaction, 39–40 Customer-segment pricing, 336 Customer service Nordstrom, 553 Customer-size group nicher, 559 Customer-solution approach, 494–495 Customer value channel management and, 374–375 driven marketing strategy, 34–38 See also Marketing management marketing process and, 54 pricing based on, 309–311 satisfaction and, 31 See also Value-driven marketing Customer value analysis, 547 Customer value-based pricing, 309–310 Customer value delivery network, 369 Customer value marketing, 613 D Data internal databases, 127 misuse of research, 148–149 primary, 132–140 See also Primary data privacy and, 109, 110, 111 secondary, 132 See also Big data; Marketing research Databases, 125 internal, 127 marketing, privacy and, 533 Deceptive marketing practices, 601 Deceptive packaging, 601 Deceptive pricing, 348, 350, 601 Deceptive promotion, 601 Deciders, 192 Decision process, business buyer See Business buyer decision process Decline stage, product life cycle, 296, 297 Deficient products, 615 Demand customer, 30 market leader strategies for, 554–555 price elasticity and, 322–323 pricing and, 321–323 Demand chain, 358–359 See also Supply chain Demand curve, 322 Demand management, 34 Demographics, 96–97 advertising and, 465 age/structure of population, changing, 97 baby boomers, 97 cutthroat prices, 274–275 diversity and, 102–103 education, 102 family, changing American, 100–101 generational marketing, 100 Generation X, 97–98 Generation Z, 99–100 global market, 580 Millennials (Generation Y), 98–99 online marketing, privacy and, 533 population shifts, 101–102 retailing trends/developments and, 405 Demographic segmentation, 213, 214–215 Demography, 96 Demonstration, 494–495 Department stores, 393, 394 Derived demand, 189 Descriptive research, 131 Design marketing channel See Marketing channel design product, 250 Design for environment (DFE), 609 Desirable products, 615 Development, public relations and, 471 Differences, promoting, 231–232 Differentiate brands, 35 Differentiated marketing, 222–223 Differentiation competitive marketing strategy, 551 consumer perception dimensions, 264–265 market, 75, 77, 212–213 market targeting and, 228–236 people, 230–231 positioning strategy, 230–231 retailer, 400–401 service, 262–263 Digital advertising, 513 Digital and social media marketing, 515 Digital catalogs, 529 Digital competitors, 548 Digital coupons, 498–499 Digital e-learning, 487 Digital game-based sales training tool, 487 Digital marketing See also Direct and digital marketing blogs/online forums, 520–521 email, 518–519 logos and, 254–255 online advertising, 517–518 online marketing, 516–517 use of, 515–516 videos, online, 519–520 Digital marketing intelligence, 127–130 Digital media advertising and, 466 business buyers, engaging with, 197–199 cultural views of others and, 112–113 customer engagement and, 41–42 demographic environment and, 97–100 social media marketing and, 46–47 Digital photography, 544–545 Digital promotions, 404, 497 Digital sales tools, 490, 492–493 Digital shopping, 407 Digital technology advertising and, 458 direct/digital marketing and, 512 loyalty programs and, 40–41 marketing communications and, 425–426 Direct and digital marketing Amazon.com, 510–511 benefits of, 514 defined, 425, 512 forms of, 514–515 growth of, 513 in promotion mix, 440 model for, 512–513 policy issues in, 531–534 Direct exporting, 581 Direct mail, advertising and, 466 Direct-mail marketing, 514, 528 Direct marketing (traditional forms) catalog, 529 direct-mail, 528 723 direct-response television (DRTV) marketing, 530–531 kiosk, 531 telemarketing, 529–530 Direct marketing channel, 361 Direct response television (DRTV) marketing, 514, 530–531 Direct retailing, 407 Direct-to-consumer platform, 537–538 Disabled Americans, 103, 110 Discount, trade promotions, 500 Discount and allowance pricing, 335–336 Discounts, 338 Discount store, 394, 395–396 Disintermediation, channel organization and, 366–368 Dissonance-reducing buying behavior, 174 Distribution See also Distribution channels; Marketing channel exclusive/selective, 371, 375 high cost of, 600 intensive, 370–371 international, 371–372 supply chain management and, 376–383 wholesalers and, 415 Distribution centers, 379 Distribution channels, 358 behavior, 362–363, 365–368, 366 conflict in, 362–363 design See Marketing channel design differentiation, 230 global delivery network, 589 global market and, 589–590 horizontal marketing systems, 365 levels, 349–351 members, 372–375 multichannel systems, 365–366 objectives, 369–370 organization, 366–368 vertical marketing systems (VMS), 363–365 See also Marketing channels; Supply chain entries Distribution review, in marketing plan, 81 Distributors channel transactions and, 360 idea generation and, 282 See also Transportation Diversification, 71 Diversity, demographic environment and, 102–103 Divisibility, rate of adoption and, 180 Dogs, BCG growth-share matrix, 67, 69 Doha Round, 571 Do-Not-Call Implementation Act (2003), 110, 530, 533 Downsizing, strategies for, 72 Drive, internal stimulus, 173 Duties on imports, 343, 570 Dynamic pricing, online, 340–342 E Early adopters, adoption process and, 179 Early mainstream adopters, 179 Earned media, 465 Economic communities, 571–572 724 Index Economic environment channel design and, 371 consumer buyer behavior and, 168 defined, 103–104 international trade and, 572–573 marketing and, 50–51 pricing strategies and, 323 segmenting international markets and, 220 Education, demographic environment and, 102 Electronic data interchange (EDI), 381 Email marketing, 518–519 Emerging economies, international trade and, 572 Emoji, 523 Emotional appeal, 266, 434 Empathy, selling and, 479 Employees, service profit chain and, 259 Endorsement, message execution and, 461 End user nicher, 559 Engagement media, advertising and, 465 mobile marketing, 526–527 sales force and, 481–482 social media marketing and, 523–524 Engaging customers advertising and, 422–423 advertising media and, 464–465 brands and, 272 digital/social media and, 41–42, 197–199 marketing and, 28 real-time marketing, 48–49 See also Customer engagement Entertainment, merging with advertising, 458–460 Entrepreneurial marketing, 550 Environment green retailing and, 410–411 green supply chains, 377 packaging and, 252 sustainable marketing and, 599 sustainable supply chain, 377–378 See also Packaging Environmental influences, on business buyers, 193 Environmentalism, 608–612 See also Sustainable marketing Environmental responsibility, 53 Environmental sustainability, 104–105, 608–612 E-procurement, 197–198 Equipment, as capital item, 248 Esteem, brand, 264–265 E-tailers, 515, 538–539 Ethics marketing research and, 147–148 misuse of data and, 148–149 personal selling and, 442, 443 pharmaceutical pricing and, 347–348 socially responsible behavior and, 109, 111 sustainable marketing and, 599, 617–620 See also Marketing ethics Ethnographic research, 133–134 Evaluation, adoption process and, 179 Event marketing, 500–502 Event sponsorship, 500 Everyday low pricing (EDLP), 311, 403 Exchange controls, international trade and, 570 Exchanges, relationships and, 33 Exclusive dealing, 375 Exclusive distribution, 371, 375 Exclusive territorial agreements, 376 Execution styles, of advertising messages, 461–462 Executive summary, in marketing plan, 81 Expectations, consumer, 177–178 Expense reports, 489 Experience curve, production, cost and, 314–315 Experiential retailing, 402 Experiential sources of information, buying decisions and, 176 Experimental research, primary data, 133, 134 Exploratory research, 131 Export department, 590 Exporting, 580–581 External stimuli, 176 Extranet, 144, 198 F Face-to-face selling, 514 Factory outlets, 394, 396 Fads, 292 Fair Packaging and Labeling Act (1866), 110, 253 Fair trade, 620 Family, changing American, 100–101 Fantasy messages, 461 Fashion, 292 Fashion bloggers, 520–521 Features, product, 250 Federal Cigarette Labeling and Advertising Act (1967), 110 Federal Food, Drug, and Cosmetic Act, 298 Federal Food and Drug Act (1906), 110 Federal Trade Commission Act (1914), 110, 253 Feedback, collecting, 437 Field sales force, 484 Field sales v telemarketing, 537 Financial intermediaries, 94 Financial publics, 95 Financial Reform Law (2010), 110 Fishyback transportation, 381 Fixed costs, 313 Fixed fee, 335 Fixed price policy, 340 Flash sales, 338, 406 Flows, in distribution channels, 361 FOB See Free on board FOB-origin pricing, 339 Focus group interviewing, 135–136 Follow-up, selling process, 495 Food deserts, redlining and, 603–604 Food markets, 113–114 Formulated marketing, 550 Four Ps/As of marketing, 77–79 Franchise organization, 364 as retailer, 397, 399 vertical channel conflict and, 362 Fraud, in advertising, 532 Free goods, trade promotions, 500 Free on board (FOB), 339 Free trade zones, 571–572 Freight-absorption pricing, 339 Frequency, advertising decisions, 464 Frequency marketing programs, 497 Freshness, labeling, 608 Frontal attack, market challenger, 557–558 Full-service retailers, 393 Full-service wholesalers, 413, 414 Full-time forcing, 376 Functional discount, 335 Functional organization, 82 G Games, consumer promotions, 499 Gatekeepers, 192 Gender segmentation, 213–215 Gender-specific packaging, price and, 337 General Agreement on Tariffs and Trade (GATT), 571 General need description, in business buying decision process, 196 General public, marketing environment and, 95 Generational marketing, 100 Generation X, 97–98, 467 Generation Y (Millennials), 98–99 Generation Z, 99–100, 522 Geographical organizations, 590 Geographical pricing, 339 Geographic market nichers, 559 Geographic market segmentation, 213–214, 220 Geographic organization, 82 Geographic shift, in population, 101–102 Glad-handing, 494 Global advertisers, 469–470 Global branding, 583 Global expansion e-tailers, 539 Global firm, 569 Globalization See also International entries backlash against American, 577 international marketing manners, 194–195 international marketing research and, 145–147 marketing and, 52 retailers and, 411 segmenting international markets, 220–221 services/products and, 298–299 sustained growth and, 507 Global marketing convenience stores and, 584–585 decisions, 578 defined, 568–570 international marketing decisions, 570 international trade system, 570–572 marketing objectives, 578–580 market potential, indicators of, 580 organization, 590 package delivery and, 579 standardized/adapted, 583, 585 Global marketplace direct investment, 582 distribution channels, 589–590 entry strategies, 580 exporting, 580–581 joint venturing, 581–582 price and, 588–589 product adaptation, strategies for, 585–586 Index promotion, 586–588 whole-channel concept for, 589 Global product and communication strategies, 585 Global standardization IKEA, 566–568 marketing and, 583, 585 Global value delivery network, 589 Goals, company, 66 Good-value pricing, 311 Government legislation regulating business, 110 markets, 96, 201–202 pricing, external influence on, 323 regulation, sustained growth and, 507 resource management and, 105 Government publics, 95 Great Firewall of China, 592 Great Recession (2008–2009) advertising budgets and, 457 consumer confidence, 113 consumer spending and, 50–51, 103–104, 405, 605 good-value pricing, 311 pricing decisions and, 323 Greening activities, internal/external, 609 See also Sustainable marketing Green retailing, 410–411 Green supply chains, 377 Gross domestic product (GDP), 568 Group interviewing, data collection, 135–136 Groups, consumer buyer behavior and, 162–164 Growth strategies for, 70–72 sustained, selling and, 506–508 Growth-share matrix, BCG, 67 See also Boston Consulting Group Growth stage, of PLC, 297 Guiding philosophy, 72 H Habitual buying behavior, 174–175 Hackathons, 281 Handling objections, selling process, 495 Hard-sell technique, 494, 506 #Hashtags, social media BallBusterChallenge, 547 consumer-generated marketing and, 42–43 fail, marketing disasters, 537 HappiMess, Delta, 500 llasting, 605 MayhemSale, 477 MyWestElm, 462 ShareaCoke, 465 tweetacoffee, 524–525 tweetfromtheseat, 459 withoutshoes, 523 Headline, advertising message, 462 “Hello Tomorrow” campaign, 27 High-low pricing, 311, 403 High-pressure selling, 602 Hispanic American consumers, 102–103, 160 HITECH Act, 301 Horizontal conflict, channel behavior, 362 Horizontal marketing systems, 365 How-to videos, 519 Humor, advertising and, 475 I Idea generation crowdsourcing, 282–283 external sources, 282 internal sources, 281–282 Idea marketing, 248–249 Idea screening, 283 Identification, product, 252–253 Identity theft, 532 Image differentiation, 231, 263 Images consumer-generated, 462 message execution and, 461 Immersion groups, data collection, 135 Import duties, 343 Inbound telephone marketing, 530 Income distribution international trade and, 572–573 tiered market and, 104 Income segmentation, 213, 215 Independent off-price retailers, 394, 396 Indirect exporting, 580 Indirect marketing channel, 361 Individual marketing, 226 Industrial economies, 572 Industrial products, 247–248 Industrial structure, 572 Inelastic demand, 322 Influencers, 192 Influential adopters, 163 Infomercials, 530, 532, 602 Information flow, 361 Information search, buyer decision process and, 176–177 Informative advertising, 453 Ingredient labeling, 608 Innovation continuous, 556 individual differences in, 179 new product, 278–279 systematic new product development and, 289 Innovative marketing, 614 Innovators, 179 Inside sales force, 484–485 Installations, 248 Institutional markets, 199, 201 Integrated logistics management cross-functional teamwork inside company, 381–382 partnerships, building logistics, 382 third-party logistics providers (3PL), 382–383 Integrated marketing communications (IMC), 427, 429–430, 450 blend of mix/promotion tools, 429 communications model, new marketing, 425–427 need for, 427, 429–430 Integrated marketing (Volvo), 447–449 Integrated promotion mix, 441 Intelligence, marketing, 127–130 Intelligence system, design competitive, 548 Intensive distribution, 370–371 Interactive marketing, 260–262, 523 Interactive TV (iTV), 530–531 Interest, adoption process and, 178 Intermarket segmentation, 220–221 725 Intermediaries, marketing, 370–371 See also Marketing channels Internal databases, 127 Internal marketing, 260 Internal publics, 95 Internal stimuli, 176 International See also Global entries International advertising, 469–470 International expansion, of major retailers, 411 International marketing See also Global entries ethics and, 622 major decisions in, 570 manners, culture and, 194–195 objectives/policies, 578–580 product and services, 298–299 research, 145–147 targeting the poor, 574–575 whole-channel concept for, 589 International markets, 96, 220–221 International pricing, 342–343 International trade system cultural environment, 575–578 economic environment, 572–573 political/legal environment, 573, 575 regional free trade zones, 571–572 tariffs/duties and, 570–571 World Trade Organization (WTO) and, 571 Internet See also Blogs; Digital entries; Social media; Technology; Websites behavioral targeting/tracking, 137–138 marketing and, 515–521 See also Digital marketing marketing research on, 136–137 online marketing and, 46–47 online privacy and, 532–533 transportation logistics and, 380 Internet fraud, advertising and, 532 Internet of Things (IoT), 47, 279, 515, 541, 563 Interpretive consumer research, 171 Interviews, data collection and, 135 Intranet, 144 Intrapreneurial marketing, 550 Intrapreneurial programs, 281 Intrapreneurship, 550 Introduction stage, of PLC, 297 Intrusion, marketing by, 41 Inventory management, logistics and, 381 Investor relations, 471 J Joint venturing, in global marketplace, 581–582 Judgment sample, 139 Junk mail, 531–532 Just-in-time logistics systems, 379 K Kiosk marketing, 514, 531 Knowledge, brand, 264–265 L Labeling logos and, 252–253 truth in, 608 Labeling laws, 109, 110 Lagging adopters, 179 726 Index Language catalog marketing and, 567 global marketing and, 578, 590 international marketing, culture and, 576–577 international marketing research and, 146 online focus groups and, 137 promotion, global market and, 587 words, in advertising messages, 461–462 Lanham Trademark Act (1946), 110 Last mile (telecommunications), 385 Late mainstream adopters, 179 Law advertising, 110 global marketing and, 578 international market segmentation, 220 marketing regulation and, 612–613 Leading adopters, 163 Learning, consumer buying behavior and, 173 Learning curve, production, cost and, 314–315 Legal environment, international trade and, 573, 575, 580 Legislation, regulating business, 110 Less for much less positioning strategy, 233–235 LGBT consumers, 103 Liability, product, 298 Licensing brand names and, 268–269 joint venturing, in global marketplace, 581 partnerships, 545 Life stage, consumer buyer behavior and, 167 Life-stage segmentation, 167 Lifestyle consumer buyer behavior and, 168 market segmentation and, 215 message execution, 461 Lifestyle centers, shopping and, 404 Limited-service retailers, 393 Limited-service wholesalers, 413, 414 Limited-time offers, 338 Line extensions, branding and, 270 Line filling, 256 Line stretching, 256 Lobbying, 471 Lobbyists, 114–115 Local adaptation, global standardization and, 566–568 Local marketing, 224–225 Local publics, marketing environment and, 95 Locate-compare-select process, 393 Location-based pricing, 336 Location decisions, retailers and, 404–405 Logistics, marketing, supply chain management and, 376–383 Logos, 252–255 Long-run average cost (LRAC), 314 Long-run welfare, of consumer, 37 Low-interest financing, 338 Low-price fighter brand, 346 Loyalty creating customer retention and, 44 customer types and, 46 Lenova, 156–157 salesperson-owned, 481–482 segmentation and, 217 segmenting business markets and, 220–221 Loyalty programs JetBlue Air, 40–41 promotions and, 497–498 M Macroenvironment, marketing, 92, 96 Madison & Vine, 458, 460 Magazines, advertising and, 466, 467, 588 Magnuson-Moss Warranty Act (1975), 110 Mail questionnaires, 134–135 Maintenance, repair, and operating (MRO) products, 412 Make-and-sell, 358 Managed marketplace, e-tailers, 538 Management, of new product development customer-centered, 287–288 systematic, 289 team-based, 288–289 Management contracting, 581–582 Manfluencers, 238 Manufactured materials, 247 Manufacturers, trade promotions and, 500 Manufacturers’ agents, 413–414 Manufacturers’ and retailers branches and offices, 414 Manufacturer-sponsored franchise system, 364 Manufacturer-sponsored wholesaler franchise system, 364 Market defined, 33 demand, pricing and, 321–323 Market-centered companies, 560 Market challengers, 554, 557–558 Market description, in marketing plan, 81 Market development, 71 Market dominance (Google), 563–565 Market followers, 554, 558 Market growth rate, 67 Marketing consumer-oriented, 613 defined, 28–29 doing good with, 443–444 four Ps/As of, 77–79 innovative, 614 microenvironment See Microenvironment, marketing online/mobile/social media See Online marketing planned, 72–73, 80 purpose of, 616–617 sales and, coordination of, 482 sense-of-mission, 614–615 shopper, 393 social criticisms of, 600–604 test, 286–287 wholesalers and, 414 See also Real Marketing Marketing 3.24, 37 Marketing analysis (SWOT), 79–80 Marketing analytics, big data and, 141, 143 Marketing budget, 80 Marketing by numbers Advertising-to-Sales Ratios, 447 Apple vs Microsoft, 87 attracting alternative markets, 593 be on the first page, 58 Cost of Sustainability, 622–623 demographic trends, 119 Dental House Calls, 302 Dubai city guide, 475 Evaluating Alternatives, 183 Field Sales versus Telemarketing, 537 inventory management, 419 Louis Vuitton Price Increase, 352–353 Market Share, 562–363 NAICS, 206 Pop-Tarts Gone Nutty!, 275 Pricey Sheets, 326 Sales Force Analysis, 506 small-scale samples, 151–152 Tyson Expanding Distribution, 386 USAA, 239 Marketing channel design consumer needs, analyzing, 369 defined, 368–369 evaluation of major alternatives, 371 intermediaries, types/numbers of, 370–371 international, 371–372 objectives, setting channel, 369–370 responsibilities, of channel members, 371 Marketing channel management evaluate channel members, 375 motivate/manage channel members, 373–375 public policy, distribution decisions and, 375–376 selecting channel members, 372–373 Marketing channels, 358 consumer and business, 361 distribution reduces transaction numbers, 360 importance of, 359 number of channel levels, 361 value, channel members add, 360–361 See also Distribution; Supply chain entries Marketing communications channels/media, 435–436 communication objectives, 432–433 communication process, 430–432 feedback, 437 integrated, 425–429 message, 433–437 mix, 424–425 socially responsible, 441–444 target audience, 432 Marketing concept, 36, 598–599 Marketing control, 82–83 Marketing dashboards, 83 Marketing differentiation, 75, 77 Marketing effort department organization, 82 implementation, 80–82 marketing analysis, 79–80 marketing control, 82–83 planning, 80 Marketing environment cultural, 111–114 defined, 92 demographic, 96–97 economic, 103–104 Kellogg, 90–91 macro/micro, 92–96 natural, 104–106 political/social, 108–111 responding to, 114–115 Index technological, 106, 108 See also entries for individual subjects Marketing ethics Chinese Pharmaceutical Market, 593 Cost of a Life, 326 Creating Competitive Advantage…to What End?, 562 cutthroat prices, 274–275 ethical sourcing, 386 exaggeration and high pressure, 58 #Fail, 537 footloose and tax-free, 419 innocent, 205–206 insurance renewal notice, 118–119 Less Bang for Your Buck, 352 lie to me, 474–475 Lily for Target, 419 make yourself feel good, 183 metadata, 151 Milking the International Market, 622 morally difficult situations, in marketing, 618t predicting the future, 87 sustainable tourist, 301–302 sustainability and, 619–620 Targeting to Teens, 239 Walking the Customer, 506 Western stereotypes, 447 See also Ethics entries Marketing implementation, 80–82 Marketing information analyzing, 140–144 assessing needs, 126 big data and, 125 competitive marketing intelligence, 127–130 customer insights, gaining, 122–123, 125–126 distributing/using, 144 internal data and, 127 managing, 124 MIS, 126 in small business/nonprofits, 144–145 Marketing information system (MIS), 125–126 Marketing intermediaries, 94, 370–371 Marketing logistics goals of logistics system, 378 importance to supply chain management, 376–377 information management and, 381 integrated management of, 381–383 inventory management, 379–380 sustainable supply chain and, 377–378 transportation, 380–381 warehousing, 378–379 Marketing management integrated program, 38 marketing concept, 36 product concept, 35 production concept, 35 selling concept, 36 societal marketing concept, 37 targeting customers, 34 value proposition, choosing, 35 See also Advertising Marketing mix developing integrated, 77–79 pricing decisions and, 318, 321 wholesalers and, 415–416 Marketing myopia, 31 Marketing plan, 81 Marketing planning, 80 Marketing process, 29–30 defined, 53–55 model of, 54 Marketing research, 130–140 about, 130 contact methods, 134–138 develop plan for, 131–132 findings, interpret/report, 140 international, 145–147 mechanical instruments for, 139–140 misuse of data, 148–149 primary data, 132–140 privacy issues and, 147–148 process, 130 questionnaires, 139 research plan, implementing, 140 sample types, 139 sampling plan, 138 secondary data, gathering, 132 small businesses/nonprofits, 144–145 types of, 131 Marketing return on investment (marketing ROI), 83–84 Marketing services agencies, 94 Marketing strategy, 80 choosing a, 227 communications model, new, 425 competitive See Competitive marketing strategies culture and, 575–576 customer value, 74–77 designing customer-driven, 212 development, new product, 284–285 “Glocal” marketing success, 210–211 managing marketing mix and, 74 of competitors, 227 pricing decisions and, 318, 321 retailer, 400 Starbucks, 62–63 wholesaler, 415 Marketing strategy development, 284 Marketing system, 34 Marketing websites, 516–517 Market leader, 554 Market leader strategies, 554–557 Market management organization, 82 Market nichers, 554, 558–559 Market offerings, 31, 244 Market-oriented mission, 64–66 Market penetration, 71 Market-penetration pricing, 333 Market positioning, 75, 77 Market sales force structure, 483 Market segment, 75 Market segmentation, 34, 74–75, 212 age and life-cycle, 214 behavioral, 216–217 benefits sought, 216 brand superfans, 218–219 business markets, 219–220 demographic, 214 gender, 214–215 geographic, 213–214 income, 215 international markets, 220–221 loyalty status, 217 727 multiple segmentation bases, using, 217, 219 occasions, 216 requirements for effective, 221 usage rate, 216–217 user status, 216 Market share expanding, 556–557 protecting, 556 Market-skimming pricing, 332–333 Market targeting, 75, 212 See also Targeted marketing differentiation/positioning and, 221–222, 228–236 See also Differentiation; Positioning entries market-targeting strategies, 222–228 See also Target segments socially responsible, 227–228 to teens, ethics and, 239 Market variability, 227 Markup pricing, 315 Maslow’s Hierarchy of Needs, 171 Mass marketing, 222 Mass media, 427 Materialism, 604–605 See also Social criticisms of marketing Materials and parts, product, 247 Maturity stage, of PLC, 295–297 McDomination, 577 Media See also Advertising media; Social media choosing, 435–436 costs of, 467 types of, 465–467, 466 Media engagement, 465 Media impact, of advertising, 464 Media multitaskers, advertising and, 466–467 Media planners, 467 Media publics, marketing environment and, 95 Media timing, advertising and, 467–468 Media vehicles, selecting, advertising and, 467 Megaretailers, rise of, 406–407 Membership groups, consumer buyer behavior and, 162 Membership perks, 498 Membership warehouses, 394, 396–399 Merchandising, warehouse retailers and (Costco), 398–399 Merchant wholesalers, 412, 413 Message, design communication, 433–435 Message content, 433–434 Message execution, 461–462 Message format, 434–435 Message source, selecting, 436–437 Message strategy, 460 Message structure, 434 Microenvironment, marketing company, 93 competitors, 94 customers and, 96 defined, 92–93 marketing intermediaries and, 94 publics and, 95–96 suppliers and, 93–94 Micro-localizing, 225 Micromarketing, local/individual, 224–226 728 Index Middle-of-the-roaders, competitive marketing strategy and, 551 Millennials (Generation Y), 98–99, 377, 467, 522 Mission statement, 64–66 Mobile advertising, mobile marketing, 525–527 Mobile display ads, 531–532 Mobile marketing, 46–47, 513 See also Online marketing coupons, 498–499 defined, 525, 527 smartphones and, 50 Mobile media, advertising and, 466 Mobile payment Apple Pay, 387–388 Starbucks app, 286–287 Mobile retailing, 407 Mobile selling, tools for, 490, 492–493 Modified rebuy, 191 Mommy bloggers, 165–166 Monetary regulations, international trade and, 573, 575 Monetization, social media marketing and, 522–523 Monopolistic competition, 321 Mood, message execution and, 461 Moral appeals, 434 Moral duties, ethics and, 617–620 See also Marketing ethics More for less, positioning strategy, 233, 235 More-for-more positioning strategy, 232–233 More for the same, positioning strategy, 233 Motivation consumer buying behavior and, 169, 171–172 of salespeople, 489 MRO Maintenance, repair, and operating Multibrands, 271 Multichannel distribution systems, 365–366 Multimodal transportation, 380–381 Multitasking, advertising and, 466–467 Musical, message execution, 461 N Name brand, choosing, 265–267 National brands v store brands, 267–268 National Environmental Safety Act (1969), 110 National Traffic and Safety Act (1958), 110 Native advertising, 459–460 Native Hawaiians, diversity, demographics and, 102–103 Natural environment, 104–106 Natural food markets, 113–114 Natural resources, 104–105 Nature, cultural views of, 113–114 Need recognition, buyer decision process, 176 Needs (customer) analyzing, marketing channel design and, 369 marketing and, 29, 30 Maslow’s Hierarchy of, 171 Neighborhood shopping centers, 404 Neuromarketing, 139, 140 New brands, 271–272 New product development business analysis and, 285 commercialization, 287 concept development/testing, 283–284 idea generation, 281–283 idea screening, 283 major stages in, 281 managing, 287–289 marketing strategy development, 284–285 product development, 286 screening framework (R-W-W), 283 test marketing, 286–287 New product pricing strategies market-penetration pricing, 333 market-skimming pricing, 332–333 product price bundling, 335 New products adoption process, 178–179 development strategy, 280–281 innovation and, Samsung, 278–279 New retail forms, 406 News, as PR tool, 472 Newspapers, advertising and, 466, 588 New task, 191 Niche marketing, 223–224, 558–559 Nonpersonal communication channels, 436 Nonprobability samples, 139 Nonprofits marketing information and, 144–145 telemarketing and, 530 Nontariff trade barriers, 570 North American Free Trade Agreement (NAFTA), 572 Not-for-profit marketing, 51–52 Nutritional labeling, 608 Nutrition Labeling and Education Act (1990), 110, 253 O Objective-and-task method, budgeting, 438–439 Objectives determine competitors’, 545 goals and, setting company, 66 marketing plan, 81 Observational research, 133–134 Obsolescence, planned, 602–603 Occasions segmentation, 216 Occupation, as consumer buyer behavior, 167 Offer perceived value of, 346 service, 262 Off-invoice trade promotions, 500 Off-list trade promotions, 500 Off-price retailers, 394, 396 Oligopolistic markets, 321, 322 Omni-channel buyers, 392 Omni-channel retailing, 393, 407–409, 516 Online advertising, 457, 517–518 Online and digital security, 532 Online behavior, 137–138 Online catalogs, 529 Online display ads, 517–518 Online dynamic pricing, 340–342 Online focus groups, 137 Online marketing, 46–47, 514, 516–517 See also Mobile marketing ALS Ice Bucket Challenge, 57 blogvertorials, 182–183 China’s Great Firewall, 592 Fabletics Changing Channels, 385 Facebook Audience Network, 474 Feeding Pets from your Smartphone, 274 Get Your Groupon, 238 Google’s (Alphabet’s) Mission, 86 i’ll eat my hat, 562 Krazy Coupon Lady, 352 Online snooping, 151 on the move, 536–537 sharing economy, 118 Skip the Checkout Line, 418–419 Snap It and Redeem It, 505 sold out, 325–326 spot the difference, 446–447 Teens and Social Media, 622 Telemedicine, 301 Online marketing research, 136–137 Online pricing, 306–307 Online purchasing, business, 197–198 Online retailing, 407 Online sales training, 487 Online selling, 484, 490, 492–493 Online social networks, consumer buyer behavior and, 163 Online videos, 519–520 Operating control, 83 Opinion leaders consumer buyer behavior and, 163 marketing and, 435–436 Opt-in model, telemarketing, 530 Optional-product pricing, 334 Order getters, 481 Order-routine specification, in business buying, 197 Order taker, 481 Organization for advertising, 469 channel behavior and See Channel behavior, organization and functional, 82 global marketing and, 590 of marketing department, 82 Organizational climate, salesforce motivation and, 489 Organizational influences, on business buyers, 193 Organization marketing, 248 Organizations cultural views of, 113 franchise See Franchise organization geographical organizations, 82, 590 institutional/government buying decisions, 199–202 pricing and, 321 retail, 397, 399 Orientations, evolving company, 560 Outbound logistics, 376 Outbound telephone marketing, 530 Outdoor advertising, 466 Outside sales force, 484–485 Outsourced logistics, 383 Overall cost leadership, 550–551 Overhead, 313 Owned media, 465 P Pacific Islanders, diversity, demographics and, 102–103 Package delivery, global markets and, 579 Packaging Index biodegradable/recyclable, 609, 616 deceptive, 601 gender-specific, pricing and, 337 green retailing and, 410–411 importance of, 251–252 sustainable marketing and, 599 Paid media, 465 Partner relationship management, 43, 72 Partnership, sustainability and, 624 Partnership relationship management (PRM) systems, 373, 375 Partnerships, building logistics, 382 Parts, as industrial product, 247 Patent laws, 297 Patriotism, 113 Payment apps, mobile, 286–287, 387–388 cash transactions, international trade and, 575 global markets and, 579 Payment flow, 361 People, sustainability and, 624 People differentiation, 230–231 Perceived obsolescence, 602–603 Percentage-of-sales method, promotion budget, 438 Perception, consumer buying behavior and, 172 Perceptual positioning maps, 229 Performance quality, 249, 250 Perishability, of services, 258–259 Permission-based email marketing, 519 Personal communication channels, 435 Personal interviews, data collection and, 135 Personality, buyer behavior and, 168–169 Personality symbol messages, 461 Personal marketing, social media and, 523 Personal selling, 425, 439–440, 442–443 customer relations, 495–496 defined, 480 nature of, 480–481 salesforce, role of and, 481–482 Personal selling process approach, 494 closing, 495 follow-up, 495 handling objections, 495 preapproach, 494 presentation/demonstration, 494–495 prospecting/qualifying, 493–494 Personal sources, buyer decision information, 176 Person marketing, 248 Persuasive advertising, 453–454 Pharmaceutical pricing, ethics, public policy and, 347–348 Phishing, 532 Physical distribution firms, 94 supply chain management and, 376–383 Physical needs, 30 Piggyback transportation, 381 Pipelines, transportation logistics, 380 Place, marketing mix and, 78, 79 Place marketing, 248 Planet, sustainability and, 624 Planned obsolescence, 602–603 Planning marketing, 72–73, 80 PLC See Product life cycle Pleasing products, 615 Point-of-purchase (POP) promotions, 499 Polar vortex, 104 Political environment international trade and, 573, 575 legislation regulating business, 108–110 segmenting international markets and, 220 socially responsible behavior, 109, 111 Political factors, in global market, 580 Pollution, 104–105 Pollution prevention, 609 See also Sustainable marketing Population age structure of, changing, 97 geographic shifts in, 101–102 See also Demographic environment Pop-under ads, 531–532 Pop-up ads, 531–532 Pop-up stores, 406 Portals, 515 Portfolio analysis, 67 brand, managing complex, 68–69 designing business, 66–67 product, 256–257 Positioning, 75, 213 brands, 35, 75, 77 market targeting and, 228–236 retailer, 400–401 wholesalers and, 414 Positioning maps, 229 Positioning statement, 235 Positioning strategies communicating/delivering chosen position, 235–236 developing positioning statement, 235 less for much less, 233 more for less, 233, 235 more for more, 232–233 more for same, 233 same for less, 233 Positive incentives, salesforce motivation ad, 489 Postpurchase behavior, 177–178 Postpurchase dissonance, 174 Poverty, international marketing and, 574–575 Power centers (shopping), 404 Power of buyers, 222 PR See Public relations Preapproach, selling process, 494 Predatory pricing, 348, 349 Predatory strategy practices (Google), 606–607 Premium pricing, 330–331, 353–354 Premiums, consumer promotions, 499 Presentation, selling process and, 494–495 Press agency, 471 Price deceptive, 601 defined, 308–309 gender-specific packaging and, 337 global market and, 588–589 high, marketing cause of, 600–601 imports, duties and, 343 international, 342–343 marketing mix and, 78, 79 setting, 309 729 showrooming and, 342 unfair marketing and, 606 value-based v cost-based, 310 wholesalers and, 415 See also Pricing and other Price entries Price adjustment strategies buyer reaction to, 344–345 competitors’ price change, 345–346 discount and allowance, 335–336 dynamic and online pricing, 340–342 geographical pricing, 339 increasing price, 344 international pricing, 342–343 promotional pricing, 338–339 psychological pricing, 337–338 segmented pricing, 336–337 Price bundling, 335 Price changes competitor response to, 345–346 price cuts, initiating, 344 Price confusion, 350 Price cuts, 344 Price-demand relationship, 322 Price discrimination, 348, 349 Price elasticity, demand and, 322–323 Price escalation, 588 Price-fixing, 348, 349 Price increases, 344 Price-off, trade promotions, 500 Price packs, consumer promotions, 499 Price skimming, 332–333 Price-value equation, 319–320, 323 Pricing competition-based, 317 decisions, market strategy, objectives, and mix, 318, 321 legislation and, 348 market/demand and, 321–323 online supremacy and, 306–307 organizations and, 321 predatory, 348, 349 premium, 330–331, 353–354 price-value equation, 319–320 public policy and, 346–350 within/across channel levels, 349–350 See also Price Pricing strategies cost-based, 313–316 customer-value-based, 309–310 economic conditions and, 323 external factors, 323 good-value, 311 new product, 332–333 premium prices, 330–331 product mix, 333–335 value-added, 311, 313 Primary data, 132–134 Principles, marketing ethics and, 614, 617–620 Privacy consumer, online advertising and, 532–533 marketing research and, 147–148 online and digital security, 532 online tracking/targeting and, 137–138 target marketing and, 227–228 socially responsible behavior and, 109, 111 See also Children entries Privacy Promise, 534 Private brands v national, 267–268 730 Index Private goods, 605 See also Social criticisms of marketing PRM See Partnership relationship management (PRM) systems Probability samples, 139 Product consumer, 246 defined, 244 individual product decisions, 249 industrial, 247–248 levels of services and, 245–246 marketing mix and, 77–78 new See New product entries organizations/persons/places/ideas as, 248–249 purpose and, 623–624 services, experiences and, 244–245 three levels of, 245 types of consumer, 247 wholesalers and, 415 Product adaptation, global market and, 586 Product and service attributes branding, 250–251 features, 250 labeling/logos and, 252–253 packaging, 251–252 quality, 249–250 style/design and, 250 support services, 253, 255 Product and service decisions, 249–256 Product assortment, retailer, 401–403 Product attributes, 266 Product class, 291 Product concept, 35, 283–284 Product decisions, social responsibility and, 297–298 Product development, 71, 286 See also New product development Product differentiation, 230 Product form, 291 Product form pricing, 336 Product image, 284 Product invention, global market and, 586 Production cost as function of, 314–315 cost per unit and, 314 Production concept, 35 Productivity, managing service, 263–264 Product leadership, 551, 553 Product life cycle (PLC) decline stage, 296 growth stage, 294 introduction stage, 294 managing L’Oréal’s, 293–294 maturity stage, 295–296 sales/profits over life, 289 styles, fashions and fads, 292 summary of characteristics/objectives/ strategies, 297 Product line decisions, 256 pricing strategies, 333–335 in retailers, 393–395 stretching, 256 Product management organization, 82 Product/market expansion grid, 70–72 Product mix decisions, 256–257 Product mix length, 257 Product mix pricing strategies, 333, 334 Product-oriented definition, 65 Product placement advertising, branded entertainment, 459–460 Product portfolio, 256–257 Product position, 228 Product price bundling, 335 Product publicity, 471 Product review, in marketing plan, 81 Products See also Consumer products deficient, 615 desirable, 615 failure rate of new, 605 international marketing of, 298–299 as market offering, 31 physical flow of, 361 pleasing, 615 retailer assortment, 401–403 salutary, 615 societal classification of, 615 sustainability and, 624 Product safety, 252, 602 See also Safety Product sales force structure, 483 Product specification, in business buying decision process, 196 Product stewardship, sustainable marketing and, 609 Product value analysis, in business buying decision process, 196 Profit, balancing with purpose (CVS Health), 616–617 Profit and sales effects, advertising and, 468 Promoter girls, 590 Promotion adapting for global marketplace, 586–588 cost of, 600–601 deceptive, 601 labeling/logos and, 252–253 marketing mix and, 78, 79 retailers and, 403–404 Promotional allowances, 336 Promotional pricing, 338–339 Promotional products, consumer promotions, 499 Promotion budget affordable method, 437–438 competitive-parity method, 438 objective-and-task method of, 438–439 percentage-of-sales method, 438 Promotion clutter, 497 Promotion flow, 361 Promotion mix, 424–425 advertising, 439 digital and direct marketing, 440 integrating, 441 personal selling, 439–440 public relations, 440 sales promotion, 440 strategies, 440–441 Promotion strategy, 441 Proposal solicitation, in business buying decision process, 196 Prospecting, selling process and, 493–494 Provider–customer interaction, 259 Psychographic profiles, 533 Psychographic segmentation, 213, 215 Psychological factors of consumer buyer behavior beliefs/attitudes, 173 learning, 173 motivation, 169, 171–172 perception, 172 Psychological pricing, 337–338 Public actions, to regulate marketing, 612–613 Public affairs, 471 Public goods, 605 See also Social criticisms of marketing Public policy business regulation and, 110 pricing and, 347–350, 348 Public relations (PR), 425, 440 disasters, social media marketing and, 43, 115–116 role/impact of, 471–472 tools for, 470–471 Public service activities, PR and, 472 Public sources, of information, buying decisions and, 176 Puffery, 601 Pull strategy, of promotion, 440–441 Purchase decision, 177 Pure competition, 321 Pure monopoly, 322 Pure services, 244 Pure tangible good, 244 Purpose, product, 247, 623–624 Purpose-driven marketing, 37 Push girls, 590 Push money, trade promotions, 500 Push strategy, of promotion, 440–441 Q Qualifying, selling process and, 493–494 Qualitative internet-based research, 137 Qualitative value, of advertising message, 464 Qualities, desirable, 267 Quality internal service, 259 service, managing, 263 Quality level, 249 Quality-price nichers, 559 Quantitative research, 136 Quantity discounts, 335 Question marks, BCG growth-share matrix, 67, 69 Questionnaires, marketing research and, 139 Quotas, trade and, 570 Quota sample, 139 R Race, demographic environment and, 102–103 Radio, advertising and, 466 Radio-frequency identification (RFID), 106, 377, 379–380, 409 Railroads, transportation, marketing logistics and, 380 Rational appeals, 433–434 Raw materials, 104, 247, 411, 597 Reach, determining advertising, 464 Real-time marketing, engaging customers in moment, 48–49, 467–468, 514 Rebates, consumer promotions, 499 Recruiting/selecting salespeople, 485–486 Recycling, 105, 609 Coca-Cola and, 611 green retailing and, 410–411 packaging and, 252 Redlining, food deserts and, 603–604 Index Reference groups, consumer buyer behavior and, 162 Reference prices, 337–338 Regional free trade zones, 571–572 Regional shopping center, 404 Regional shopping mall, 404 Registered trademark symbol, name brands and, 267 Regulation of marketing, 612–613 Relationships building, 41–42, 46, 481 See also Customer engagement exchanges and, 33 Relative advantage, rate of adoption and, 180 Relative market share, 69 Relative price retailers, 394–397 Relevance, brand, 264–265 Religion beliefs, buying behavior and, 173 culture and, 114 Reminder advertising, 453, 454 Renewable resources, 105 Resale price maintenance, 348, 349 Research approaches, observational primary data collection, 133–134 better products from, 302–304 development and See New product entries survey primary data collection, 133, 134, 136–137 Research and development (R&D), 546, 569 Reseller markets, 96, 323 Resellers channel organization and, 368 as market intermediary, 94 value-added, 370 Resource management, government and, 105 Retail convergence, 406 Retailer, world’s largest (UNIQLO), 390–391 Retailer cooperative, 397 Retailer marketing decisions location, 404–405 marketing strategies, 400 pricing, 403 product assortment/services, 401–403 promotion, 403–404 segmentation/targeting/differentiation/ positioning, 400–401 Retailers, types of discount stores, 394–396 major store retailers, 394 major types of retail organizations, 397 organizations, 397, 399 product line, 393–395 service, amount of, 393 Retailing, brands/customers connecting, 392–393 Retailing trends consumer spending cutbacks, 405–406 direct /online/mobile/social media retailing, growth of, 407 global expansion, 411 green retailing, 410–411 megaretailers, rise of, 406–407 new retail forms/shortening retail life cycle/retail convergence, 406 omni-channel retailing, need for, 407–409 technology and, 409–410 Retail life cycles, shortening, 406 Retail organizations, 397, 399 Retail price maintenance, 348, 349 Return on advertising investment, 468 Return on investment (ROI) marketing, 83–84 Return-on-quality, 249 Return on sales investment, 489 Reverse auctions, 198 Reverse logistics, 376 Risk functions, of wholesalers, 412 Robinson-Patman Act (1936), 110, 348, 349, 442 S Safety product, 110, 298, 602 social media, teens and, 622 See also Privacy entries See also Product safety Sales, salesforce and, 478–479 Sales and profit effects, advertising and, 468 Sales assistants, 484 Sales contest, business promotions, 502 Sales force, role of customer/company linking, 481–482 marketing/sales and, coordinating, 482 Sales force analysis, 506 Sales force automation systems, 489 Sales force management defined, 482 major steps in, 482 outside/inside sales, 484–485 size, of sales force, 483–484 structure of, design, 483 team selling, 485 Sales force performance, evaluating, 489 Sales force promotions, 497 Salespeople business-to-business, 491–492 compensating, 487–488 evaluating, 489 motivation of, 489 recruiting/selecting, 485–486 supervising, 488–489 training, 486–487 Salesperson, 481 Salesperson-owned loyalty, 481–482 Sales promotion, 425, 440, 442 growth of, rapid, 496–497 objectives, 497–498 program, developing, 502–503 retailers and, 403–404 Sales promotion tools business promotions, 502 consumer promotions, 498–500 trade promotions, 500 Sales quotas, 489 Sales reports, 489 Salutary products, 615 Same for less, positioning strategy, 233 Samples, consumer promotions, 498 Sample types, 139 Sampling plan, 138 Satisfaction, customer, 31 SBU See Strategic business units Scanner fraud, price and, 350 Scientific evidence, message execution and, 461 Search engines, 515 731 Search-related ads, 518 Seasonal discount, 335 Secondary beliefs, 112 Secondary data, 132 Segmentation retailer, 400–401 wholesalers and, 414 Segmented marketing, 222–223 Segmented pricing, 336–337 Selective attention, 172 Selective distortion, 172 Selective distribution, 371 Selective retention, 172 Self-concept, consumer buyer behavior and, 168–169 Self-image, consumer buyer behavior and, 169 Self-regulatory principles, online/mobile marketing and, 533 Self-service retailers, 393 Self-view marketing segments, 112 Seller’s rights, 607 Selling, high-pressure, 602 Selling concept, 36 Selling process, steps in, 493 See also Personal selling process Sense-and-respond, demand chain, 359 See also Supply chain entries Sense-of-missing marketing, 614–615 Sequential product development, 288 Serial replacers, 603 Served market, 556–557 Service decisions, individual product and, 249–256 See also Product and service attributes; Product and service decisions Service delivery, 263, 579 Service differentiation, 262–263 Service firms, marketing strategies for, 259 Service-firm-sponsored retailer franchise system, 364 Service intangibility, 258–259 Service nichers, 559 Service perishability, 258, 259 Service profit chain, 259–262 Service quality, managing, 263 Service recovery, 263 Service retailers, 394, 395 Services Airbnb, 275–277 defined, 244 four characteristics of, 258 inseparability of, 258, 259 international marketing of, 298–299 levels of product and, 245–246 as market offering, 31 retailer level of, 401–403 retailers and, 393 supplies and, 248 support, 253, 255 wholesalers and, 415 Services differentiation, 230 Services marketing differentiation, 262–263 nature/characteristics of, 258–259 productivity, managing, 263–264 quality, managing, 263 service profit chain, 259–262 strategies for, 259 three types of, 260 732 Index Services mix, retailer, 402 Services productivity, managing, 263–264 Service variability, 258, 259 Sexual orientation, diversity, demographics and, 103 Shared media, 465 Shared projects, logistics, 382 Shared value, 37 Share of customer, growing, 44–45 Sharing, social media marketing and, 523–524 Sherman Antitrust Act (1890), 110, 348 Shipping, Marketing logistics and, 380–381 Shop-in-shop concepts, 393 Shopper marketing, 393 Shopping, omni-channel retailing and, 408–409 Shopping center, 404 Shopping experience, theme park, 420–421 Shopping products, 246 Short-run average cost curve (SRAC), 314 Short-run wants, 37 Showrooming pricing and, 342 webrooming, 407 Simple random sample, 139 Simulated test markets, 287 Slice of life, message execution, 461 Slight-of-mouth message, 419 Small business, marketing information and, 144–145 Smartphones, mobile marketing and, 50 See also Mobile entries Smart shelves, 380 Smart tags, 379 Social class, consumer buyer behavior and, 162 Social concerns, pricing and, 323 Social criticisms of marketing businesses, marketing impact on other, 606–607 cultural pollution, 605–606 customers, poor service to disadvantaged, 603–604 deceptive practices, 601 false wants, materialism and, 604–605 high-pressure selling, 602 high prices, 600–601 planned obsolescence, 602–603 products, shoddy/harmful/unsafe, 602 social goods, too few, 605 Social environment, marketing and cause-related marketing, 111 socially responsible behavior, ethics and, 109, 111 Social goods, 605 See also Social criticisms of marketing Social idea marketing, 249 Socially responsible See also Social responsibility advertising/sales promotions and, 441–444 target marketing, 227–228 Socially responsible behavior, 109, 111 Social marketing, 249 Social media ad campaigns and, 457 advertising and, 466 Audience Network, 474 business buyers, engaging with, 197–199 buzz marketing and, 435–436 consumer-generated marketing and, 42–43 crowdsourcing, idea generation and, 282–283 customer engagement and, 41–42 customer insights and, 124 demographic environment and, 97–100 digital marketing intelligence and, 128–129 marketing/public relations disasters and, 43, 115–116, 537 mommy bloggers, influence of, 165–166 privacy, marketing research and, 148 promotion, retailers and, 403–404 PR tool, 472 real-time advertising and, 467–468 retailing, growth of, 407 sales and, 485 selling, tools for, 490, 492–493 socially responsible target marketing and, 227–228 teens, safety and, 622 views of others, 112–113 Social media marketing, 47, 514 advantages/challenges, 523–524 disasters and, 43, 115–116 mobile marketing, 525–527 monetization and, 522–523 using, 521, 523 See also Marketing, online, mobile, social media Social needs, 30 Social networks, consumer buyer behavior and, 162–164 See also Social media Social responsibility See also Socially responsible marketing and, 53 product decisions and, 297–298 sustainable marketing and, 596–600 Social selling defined, 481 online, mobile, social media tools for, 490, 492–493 Social targeting, 137–138 Social tracking, online, 137–138 Societal marketing concept, 37, 599, 615 Society See also Social entries cultural views of, 113 marketing impact on, 604–605 Sociocultural factors, of global market, 580 Software communications tools and, 485 for CRM, 141 enterprise, 492 financial management, 288 logistics information management and, 381 marketing information system (MIS), 125–126 PRM/CRM, 373, 375 solution/systems selling, 191–192 supply chain management and, 377, 382 Windows operating systems, 540–542 SOHO (small office/home office), 101 Solutions selling, 191, 479 Spam, 519, 531–532 Special events PR and, 472 pricing, 338 Specialty advertising items, 500 Specialty products, 246 Specialty stores, 393, 394 Spending, cutbacks in consumer, 405–406 Spirituality, culture and, 114 Sponsored content, advertising and, 459–460 Standardization, 298, 470, 566–568 See also Global standardization Standardized global marketing, 583, 585 Stars, BCG growth-share matrix, 67, 69 Stimulus object, 173 Store brands, national v., 267–268 Storytelling message design and, 434 sales and, 479 Straight product extension, global market and, 585–586 Straight rebuy, 191 Strangers, customers, 46 Strategic business units (SBUs), 67 four types of, 67, 69 Strategic control, 83 Strategic group, 545–546 Strategic planning, 64, 599 See also Companywide strategic planning Strategies, competitor, 545–546 Strategy-planning process, 549–550 Stratified random sample, 139 Strip malls, 404 Style, product, 250 Subcultures, consumer buyer behavior and, 160–161 Subliminal advertising, 172 Subsistence economies, international trade and, 572 Substitute products, 222 Supermarkets, 394–395 Superstores, 394, 395 Supplier development, 190 Suppliers idea generation and, 282 microenvironment and, 93–94 Supplier search, 196 Supplier selection, 197 Supplies and services, 248 Supply chain, 43 logistics, 376 sustainable, 377–378 value delivery network and, 358–359 Supply chain management, 43, 376–383 Survey research, 133, 134, 136–137, 255 Sustainability See also Sustainable marketing costs of, 622–623 environmentalism and, 608–612 four Ps of, 624 Sustainability vision, 611–612 Sustainable companies, ethics, marketing and, 620 Sustainable marketing, 37, 598–600 consumerism and, 607–608 environmentalism, 608–612 environmental/social responsibility and, 53 public actions to regulate, 612–613 Sustainable marketing principles consumer-oriented marketing, 613 Index customer value marketing, 613 innovative marketing, 614 purpose, balancing with profit, 616–617 sense-of-mission, 614–615 societal classification of products, 615 societal marketing, 615 Sustainable retailing, 410–411 Sustained growth, selling and, 506–508 Sweepstakes, consumer promotions, 499 SWOT marketing analysis, 79–80 Systematic new product development, 289 System selling, 191 T Target audience, 432 Target costing, 320 Targeted marketing, 75, 212 selecting customers, 34 social media and, 523 See also Market targeting Targeting online, 137–138 retailer, 400–401 wholesalers and, 414 Target market, 222 See also Target segments Target return pricing, 315–316 Target segments concentrated/niche, 223–224 micromarketing, local/individual, 224–226 undifferentiated marketing, 222 Tariffs, 570 Team-based new product management, 288–289 Team selling, 485 Technical sales-support people, 484 Technological environment, 106, 108 Technology apps See Apps big data and, 125, 141–143 cloud-based computing, 478–479 cultural views of others and, 112–113 data collection and, 135 demographic environment and, 97–100 digital See Digital technology digital marketing intelligence, 127–130 ethics, socially responsible behavior and, 109, 111 IBeacon, 505 inventory management and, 379–380 logistics information management and, 381 marketing and, 106, 108 marketing data, information management and, 141–144 mobile, 47 See also Digital marketing; Social media nature, mastery of through, 113 new, clean, sustainability and, 611–612 new product innovation and, 278–279 online marketing research, 136–137 planned obsolescence and, 602–603 retail, growing importance of, 409–410 sales force automation systems, 489 software See Software supply chain management and, 377 telecommuting and, 101–102 telemedicine industry and, 301 Telecommuting, technology and, 101–102 Telemarketers, 484, 514 Telemarketing, 529–530 Telemarketing v field sales, 537 Telemedicine industry, 301 Telephone Consumer Protection Act (1991), 110 Telephone interviewing, data collection and, 135 Television, advertising and, 466, 467 Territorial sales force structure, 483 Testimonial evidence, message execution and, 461 Test marketing, 286–287 Theme park shopping experience, 420–421 Third-party blogs, digital marketing, 520–521 Third-party logistics (3PL) providers, 382–383 Third-place concept, 585 Threats/opportunity analysis, in marketing plan, 81 Three-day cooling off rule, 442 Tiered market, income distribution and, 104 Time-and-duty analysis, 488 Time-based pricing, 336 Timing, media, advertising and, 467–468 Tone, for advertising messages, 461 Total costs, 313 Total market strategy, consumer buyer behavior, 161–162 Total quality management (TQM), 249 Touch point, 141 Trade, barriers to, 570 Trade discount, 335 Trade-in allowances, 336 Trade promotions, 496–497, 500 Trade shows, business promotions, 502 Trading exchanges, 198 Trainship, transportation, 381 Transaction-oriented selling process, 495 Transaction sites, 515 Transatlantic Trade and Investment Partnership (TTIP), 572 Trans-Pacific Partnership (TPP), 572 Transportation channels global market and, 589–590 marketing logistics and, 380–381 urban, 356–357 See also Distribution entries Trial, adoption process and, 179 Trucks, transportation, marketing logistics, 380 True friends, customers, 46 Truth in lending, 608 2015 Black Friday, 60 Two-part pricing, 335 Typing agreements, 376 U Undifferentiated marketing, 222, 227 Unexpected situational factors, purchase decisions and, 177 Unfairness, in advertising, 532 Uniform-delivered pricing, 339 Unique selling position, 231 Unit pricing, 608 Universe, cultural views of, 114 Unsought products, 246 Upstream supply side, 597 733 Urban transportation channels, 356–357 Uruguay Round, 571 Usage rate, segmentation and, 216 Users, 192 User status, segmentation and, 216 V Value brand, 265 channel partners, working to create customer with, 374–375 communicating customer, advertising, 422–423 cost v., 250 creating, 29–30 customer, 613 customer See Customer value customer perceived, 38 marketing channel members add, 360–361 perceived, 346 price-value and, 319–320 pricing based on v cost-based, 310 service, 260 shared, 37 sustainable, environment and, 609 Value-added pricing, 311 Value-added resellers, 370 Value-based pricing, 311, 313 Value chain, 72–73 Value delivery network, 72, 73, 358–359 Value differences, identify, 230–231 Value disciplines, 551, 553 Value-driven marketing brand strategy, 264–272 GoPro, 242–243 product line decisions, 256 product mix decisions, 256–257 services marketing, 258–264 Value for money, 323 Value marketing, 103–104 Value proposition choosing, 35 positioning strategy and, 232–235 Values See also Ethics; Marketing ethics cultural, 112–114 ethical, 619 Value selling, 496 Values-led business, 111 Variability, of services, 258–259 Variable costs, 313 Variable usage rate, 335 Variety-seeking buying behavior, 175 Vendor-managed inventory (VMI) systems, 381 Vertical conflict, channel behavior, 362 Vertical marketing systems (VMS) administered, 364–365 contractual, 364 corporate, 363–364 Video convergence, 427 Videos, consumer-generated, 462 Viral marketing, 519–520 Virtual instructor-led training (VILT), 487 Virtual meeting software, 485 Virtual reality, shopping and, 410 VMS Vertical marketing systems Voluntary chain, 397 734 Index W Wants customer, 30 false, 604–605 See also Social criticisms of marketing short-run, 37 Warehouse clubs, 394, 396–399 Warehousing, logistics and, 378–379 Warranty pricing and, 338 support services, 253, 255 Water carriers, transportation, marketing logistics, 380 Webinars, 492 Web logs digital marketing, 520–521 Webrooming, 407 Websites consumer-generated marketing and, 42–43 online marketing and, 516–517 See also Digital entries; Internet entries; Online entries; Social media Wheeler-Lea Act (1938), 110, 601 White Americans, diversity, demographics and, 102–103 Whole-channel concept, 589 Wholesale clubs, 394, 396–397 Wholesaling defined, 411–412 marketing decisions and, 414 marketing mix, 415–416 marketing strategies, 415 risk functions of, 412 trends in, 416 types of wholesalers, 413–414 Word-of-mouth influence communication channel, 435 consumer buyer behavior and, 163 Word-of-mouth marketing, 519 Words, advertising messages and, 461–462 Workload approach, to sales force size, 484 World product groups, global market and, 590 Written materials, PR and, 472 Y “Yell and sell” presentations, 602 Z Zone pricing, 339 This page intentionally left blank .. .Principles of Marketing This page intentionally left blank Principles of Marketing 17e Philip Kotler Northwestern University Gary Armstrong University of North Carolina with... blend of skills uniquely suited to writing an introductory marketing text Professor Kotler is one of the world’s leading authorities on marketing Professor Armstrong is an award-winning teacher of. .. in the Journal of Marketing Professor Kotler was named the first recipient of four major awards: the Distinguished Marketing Educator of the Year Award and the William L Wilkie Marketing for