Marketing 12e by kerin

MARKETING 12/e Roger A Kerin Southern Methodist University Steven W Hartley University of Denver William Rudelius University of Minnesota MARKETING, TWELFTH EDITION Published by McGraw-Hill Education, Penn Plaza, New York, NY 10121 Copyright © 2015 by McGraw-Hill Education All rights reserved Printed in the United States of America Previous editions © 2013, 2011, and 2009 No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning Some ancillaries, including electronic and print components, may not be available to customers outside the United States This book is printed on acid-free paper DOW/DOW ISBN MHID 978-0-07-786103-2 0-07-786103-5 Senior Vice President, Products & Markets: Kurt L Strand Vice President, Content Production & Technology Services: Kimberly Meriwether David Managing Director: Paul Ducham Executive Brand Manager: Sankha Basu Executive Director of Development: Ann Torbert Development Editor: Sean M Pankuch Development Editor: Gina Huck Siegert Marketing Manager: Donielle Xu Director, Content Production: Terri Schiesl Content Project Manager: Christine A Vaughan Senior Buyer: Carol A Bielski Design: Matthew Baldwin Cover Image: © Getty Images/Mike Theiss Content Licensing Specialist: Joanne Mennemeier Typeface: 10.5/12 Times Roman Compositor: Aptara®, Inc Printer: R R Donnelley All credits appearing on page or at the end of the book are considered to be an extension of the copyright page Library of Congress Cataloging-in-Publication Data Kerin, Roger A Marketing/Roger A Kerin, Southern Methodist University, Steven W Hartley, University of Denver, William Rudelius, University of Minnesota.—Twelfth edition pages cm Includes index ISBN-13: 978-0-07-786103-2 (alk paper) ISBN-10: 0-07-786103-5 (alk paper) Marketing I Hartley, Steven William II Rudelius, William III Title HF5415.M29474 2015 658.8—dc23 2013039848 The Internet addresses listed in the text were accurate at the time of publication The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites www.mhhe.com THORS A MESSAGE FROM THE AU world of marketing! You y to learn about the exciting rne jou r you in p ste t nex discipline Changes in Welcome to the e to become involved in the tim ic am dyn re mo a sen cho related to social media could not have recovery, new technologies mic no eco an at s ort eff , related to privacy and consumers’ values and increasing regulation , on titi pe com l ba glo cs, nges every day In addiand data analyti rketing environment that cha ma a to ng uti trib all rket and governance e-commerce are and democracy and other ma ism ital cap en twe be ips nsh ok that helps you navition, the relatio thrilled to provide a textbo are We idly rap g lvin evo nths, and possibly your perspectives are g during the next several mo tin rke ma ng dyi stu of s ge gate the challen e focused on three imporentire career! tional learning resources hav ep exc h wit you e vid pro to ip, and Innovation We Our efforts nts: Engagement, Leadersh me ple sup its and t tex the ctors and can contribute tant elements of ential to students and instru ess is nts me ele se the of h gration of the many combelieve that eac ise while facilitating the inte ert exp ting rke ma of nt me to the develop ers, and instructors have plexities of marketing thousands of students, manag h wit s nce erie exp r Ou nt and universities around Engageme ects of education in colleges asp ant ort imp into ts igh ins rent materials are essential to given us many volvement, real-life, and cur h-in hig , ive act le, mp exa ucation must embrace a the globe For n, we believe that higher ed itio add In g rnin lea and ng integrate all elements effective teachi tions hold your attention and rac inte ich wh in nt” me age dents and four learning new “age of eng age interaction between stu our enc nts me ple sup and t her In-class activities, an inof study Our tex , businesses, and the publis nts de stu er oth r, cto tru ins s, and an online learning partners—the -your-marketing-plan” guide ng ildi “bu g, blo and e pag agement in the learning teractive web r efforts to encourage eng ou of les mp exa few a t center are jus in 10 languages, we have process and 18 international editions ns itio ed U.S 12 h oug Thr sentation of new ideas, Leadership in the development and pre role ip rsh de lea a ing tak to ont of coverage of ethics, been committed rketing We are at the forefr ma in es ctic pra and es, ori and metrics, and new reprinciples, the dia, marketing dashboards me ial soc y, log hno tec ty, bili variety of companies, insocial responsi ctives from an extraordinary spe Per line cip dis ting rke create learning resources search in the ma integrated in our package to are ies ntr cou and cs, blo g dustries, tradin leaders in marketing in our text and its supplethat help students become our efforts to use innovation in nt ge dili en be e hav We le, we have included QR Innovation of today’s students For examp les sty g rnin lea ny ma the ess to online materials; ments to serve each chapter to allow easy acc of ns rgi ma the in es cod ) uipment, Secret Deodorant, (quick response Greek Yogurt, X-1 audio eq ani ob Ch ut abo s eo vid service, and made them we added new m, and StuffDOT social loyalty bal lip ex rm Ca b, clu cer soc of text, PowerPoint, and the LA Galaxy increased the visual impact we and s; link ing am stre h available throug visual learning styles plements create a unique testing materials to facilitate ects of Marketing and its sup asp er oth ny ma and se the e share our interests, inWe believ to have this opportunity to ited exc y ver are we and e, studies Welcome to the learning packag e you enjoy your marketing hop We you h wit s nce erie sights, and exp Roger A Kerin 12th edition of Marketing! Steven W Hartley William Rudelius iii PREFACE Marketing utilizes a unique, innovative, and effective pedagogical approach developed by the authors through the integration of their combined classroom, college, and university experiences The elements of this approach have been the foundation for each edition of Marketing and serve as the core of the text and its supplements as they evolve and adapt to changes in student learning styles, the growth of the marketing discipline, and the development of new instructional technologies The distinctive features of the approach are illustrated below: Rigorous Framework A pedagogy based on the use of learning objectives, learning reviews, learning objectives reviews, and supportive student supplements High-Engagement Style Easy-to-read, highinvolvement, interactive writing style that engages students through active learning techniques Marketing, 12/e Traditional and Contemporary Coverage Comprehensive and integrated coverage of traditional and contemporary marketing concepts Pedagogical Approach Integrated Technology The use of powerful technical resources and learning solutions, such as Connect, LearnSmart, SmartBook; www.kerin.tv, www.kerinmarketing.com, and QR codes Personalized Marketing A vivid and accurate description of businesses, marketing professionals, and entrepreneurs—through cases, exercises, and testimonials—that allows students to personalize marketing and identify possible career interests Marketing Decision Making The use of extended examples, cases, and videos involving people making marketing decisions The goal of the 12th edition of Marketing is to create an exceptional experience for today’s students and instructors of marketing The development of Marketing was based on a rigorous process of assessment, and the outcome of the process is a text and package of learning tools that are based on engagement, leadership, and innovation in marketing education iv ENGAGEMENT The members of this author team have benefited from extraordinary experiences as instructors, researchers, and consultants, as well as the feedback of users of previous editions of Marketing—now more than one million students! The authors believe that success in marketing education in the future will require the highest levels of engagement They ensure engagement by facilitating interaction between students and four learning partners— the instructor, other students, businesses, and the publisher Some examples of high-engagement elements of Marketing include: In-Class Activities These activities are designed to engage students in discussions with the instructor and among themselves They involve surveys, online resources, out-ofclass assignments, and personal observations Each activity illustrates a concept from the textbook and can be done individually or as a team Examples include: Designing a Candy Bar, Marketing Yourself, Pepsi vs Coke Taste Test, and What Makes a Memorable TV Commercial? Interactive Web Page and Blog (www.kerinmarketing com) Students can access recent articles about marketing and post comments for other students The site also provides access to the videos and a Marketing Twitter feed! BUILDING YOUR MARKETING PLAN If your iinstructor t t assigns i a marketing k ti plan l ffor your class, l don’t make a face and complain about the work—for two special reasons First, you will get insights into trying to actually “do marketing” that often go beyond what you can get by simply reading the textbook Second, thousands of graduating students every year get their first job by showing prospective employers a “portfolio” of samples of their written work from college—often a marketing plan if they have one This can work for you This “Building Your Marketing Plan” section at the end of each chapter suggests ways to improve and focus your marketing plan You will use the sample marketing plan in Appendix A (following Chapter 2) as a guide, and this section after each chapter will help you apply those Appendix A ideas to your own marketing plan The first step in writing a good marketing plan is to have a business or product that enthuses you and for which you can get detailed information, so you can avoid Building Your Marketing Plan The Building Your Marketing Plan guides at the end of each chapter are based on the format of the Marketing Plan presented in Appendix A On the basis of self-study or as part of a course assignment, students can use the activities to organize interactions with businesses to build a marketing plan Students and employers often suggest that a well-written plan in a student’s portfolio is an asset in today’s competitive job market Online Learning Center (www.kerin.tv) The Online Learning Center provides a connection between students and the text publisher, McGraw-Hill Education The Learning Center provides Marketing Dashboard practice activities, QR code links, video case transcripts, links to stream the video cases, and PowerPoint presentations and quizzes for each chapter The center also offers “Help” and “Feedback” functions v LEADERSHIP The popularity of Marketing in the United States and around the globe is the result, in part, of the leadership role of the authors in developing and presenting new marketing content and pedagogies For example, Marketing was the first text to integrate ethics, technology, and interactive marketing It was also the first text to develop custom-made videos to help illustrate marketing principles and practices and bring them to life for students as they read the text The authors have also been leaders in developing new learning tools such as a three-step learning process that includes learning objectives, learning reviews, and learning objectives reviews; and new testing materials that are based on Bloom’s learning taxonomy and include questions with figures and images from the text Other elements that show how Marketing is a leader in the discipline include: 19 Using Social Media to Connect with Consumers L    O How to Connect with Today’s College Student? Use Facebook and Twitter! After reading this chapter you should be able to: Like Kimmy Summers at the University of North Carolina (wearing cap in the photo), thousands of “brand ambassadors” at U.S colleges and universities face a special challenge right before freshman week.1 Define social media LO 19-1 and describe how they differ from traditional advertising media LO 19-2 LO 19-3 LO 19-4 LO 19-5 Identify the four major social networks and how brand managers integrate them into marketing actions Describe the differing roles of those receiving messages through traditional versus social media and how brand managers select a social network Explain how social media can produce sales revenues for a brand and compare the performance measures linked to costs versus revenues Describe how the convergence of the real and digital worlds affects the future of social media Finding Volunteers for Freshman Move-In Day The challenge: How can she recruit student volunteers to help incoming freshmen during campus move-in day? Use the campus newspaper? The answer is a no-brainer for most upperclassmen working as brand ambassadors for firms like American Eagle Outfitters (AE), Target, and Apple: Use Facebook and Twitter! Here’s a somewhat generic marketing plan they use for freshman week, with AE as an example: • Use the college Facebook Page and Twitter messages to recruit about 40 volunteers to assist freshmen on move-in day • Tell incoming freshmen about the volunteers on the college Facebook Page with teasers like: “Need help moving in? No worries AE will be there.” • Have these volunteers help freshmen move into their college dorms • Give each freshman who was helped a coupon for a free pair of AE flip-flops The volunteers often get a free American Eagle T-shirt (photo) College Students and Social Media “College students are wary of old-school marketing,” says Paul Himmelfarb, managing director of Youth Marketing Connection, which links marketers with college students “You have to take a brand and incorporate it into the college lifestyle by peer-to-peer marketing.”2 In the past decade, college students have more than doubled their use of the Internet and social media to collect information and buy products College marketers increasingly use social media to reach students because they work better than traditional print and TV ads.3 More than 10,000 student brand ambassadors on the 4,000 U.S college campuses use social media to connect with other students This chapter defines social media, describes four widely used social networks, explains how organizations use them in developing marketing strategies, and considers where social media are headed in the future Chapter 19: Using Social Media to Connect with Consumers Marketing features a dedicated chapter for social media marketing This new environment is rapidly changing and constantly growing The authors cover the building blocks of social media marketing and provide thorough, relevant content and examples The authors discuss major social media platforms like Twitter, Facebook, LinkedIn, and YouTube They explain how managers and companies can use those outlets for marketing purposes Also discussed in Chapter 19 are methods of measuring a company’s success with social media marketing This chapter is one of many ways Marketing is on the cutting edge of the field Marketing Dashboards and Marketing Metrics The Using Marketing Dashboards feature in the text delivers two of the newest elements of the business and marketing environment today—performance metrics and dashboards to visualize them Some of the metrics included in the text are: Category Development Index (CDI), Brand Development Index (BDI), Load Factor (a capacity management metric), Price Premium, Sales per Square Foot, Same-Store Sales Growth, Promotion-to-Sales Ratio, and Cost per Thousand (CPM) impressions The Dashboard feature is designed to allow readers to learn, practice, and apply the concepts Color-Coded Graphs and Tables The use of color in the graphs and tables enhances their readability and adds a visual level of learning to the textbook for readers In addition, these color highlights increase student comprehension by linking the text discussion to colored elements in the graphs and tables New Video Cases Each chapter ends with a case that is supported by a video to illustrate the issues in the chapter New cases such as Chobani Greek Yogurt, X-1 Audio, Secret Deodorant, LA Galaxy, Carmex lip balm, and StuffDOT, and recent cases such as IBM, Groupon, Trek Bicycles, Google, and Mountain Dew provide current and relevant examples that are familiar to students vi VIDEO CASE Chobani®: Making Greek Yogurt a Household Name “Everybody should be able to enjoy a pure, simple cup of yogurt And that’s what Chobani is,” says Hamdi Ulukaya, founder and chief executive officer of Chobani, Inc., in summarizing his vision for the company As the winner of the 2013 Ernst & Young World Entrepreneur of the Year award, his words and success story carry great credibility QR 1-6 Chobani Video Case strained version that produces a thick content, and with little or no fat Wit mer Kraft employees and yogurt m (at left in photo), Ulukaya worked 18 recipe for Chobani Greek Yogurt The very first cup for sale of Ulu appeared on shelves of a small gr New York, in 2007 The new-produ the classic “4Ps” elements of ma product, price, place, and promotion INNOVATION In today’s fast-paced and demanding educational environment, innovation is essential to effective learning To maintain Marketing’s leadership position in the marketplace, the author team consistently creates innovative pedagogical tools that match contemporary students’ learning styles and interests The authors keep their fingers on the pulse of technology to bring real innovation to their text and package Innovations such as QR codes, a Twitter feed, hyperlinked PowerPoint slides, and an online blog augment the McGraw-Hill Education online innovations such as Connect, LearnSmart, and SmartBook QR Codes You can see QR codes in magazine ads; on television programming; as part of catalogs, in-store displays, and product packaging; and throughout Marketing, 12/e! These codes bring the text to life with ads and videos about products and companies that are discussed in the text These videos also keep the text even more current While each code in the text has a caption (as shown to the right), the links are updated to reflect new campaigns and market changes In addition, the QR codes provide links to stream the video cases at the end of each chapter You can use your smartphone to download any QR code reader to use the QR codes found throughout the book If you don’t have access to a smartphone, go to www.kerin.tv to find the links through your computer QR 1-2 Terrafugia Transition Video Twitter Feed and Online Blog Visit www.kerinmarketing.com to participate in Marketing’s online blog discussion and to see Twitter feed updates You can also subscribe to the Twitter feed to receive the Marketing Question of the Day and respond with the #QotD hashtag Connect, LearnSmart, and SmartBook Integration These McGraw-Hill Education products provide a comprehensive package of online resources to enable students to learn faster, study more efficiently, and increase knowledge retention The products represent the gold standard in online, interactive, and adaptive learning tools and have received accolades from industry experts for their Library and Study Center elements, filtering and reporting functions, and immediate student feedback capabilities In addition, the authors have developed book-specific interactive assignments, including (a) auto-graded applications based on the marketing plan exercises, and (b) activities based on the Marketing Dashboards and marketing metrics presented in the text Innovative Test Bank Containing almost 7,000 multiple-choice and essay questions, the Marketing, 12/e Test Bank reflects more than two decades of innovations The Test Bank includes two Test Item Tables for each chapter that organize all the chapter’s test items by Bloom’s three levels of learning against both (1) the main sections in the chapter, and (2) the chapter’s learning objectives In addition, a number of “visual test questions” for each chapter reward students who have spent the effort to understand key graphs, tables, and images in the chapter vii New and Revised Content C Chapter 1: New Chapter Opening E Example and New Case on Chobani Greek Yogurt Chapter begins by G describing Chobani’s development d of its Greek Yogurt as a new food o ccategory and its use of word-ofmouth th advertising, d ti i sponsorship of the Olympics, and Facebook as marketing activities to help it grow to a brand with more than $1 billion in sales New examples from Domino’s, Target, and US Bank have been added, and the discussion of the customer relationship era has been expanded The chapter ends with a new case and supporting video about Chobani Chapter 2: New Coverage of B-Corp Certification and Business Definition, and New Application of BCG Model to Apple Products The Chapter opening example now includes discussion of Ben & Jerry’s “B-Corp” certification, which reflects its efforts to solve social and environmental problems A new Marketing M k ti Matters box discusses how the developers of the Angry Birds video game now define their business The chapter also includes an in-depth application of the Boston Consulting Group’s business portfolio analysis model to selected Apple products (including the iPod, iMac, iPhone, and iPad) and a planning gap analysis for Apple’s goals and results C Chapter 3: Update of Environmental Scan for Facebook and Discusta ssion of New Trends in Marketing Facebook’s management mantra, F “Move fast and break things,” is “ discussed in the context of a rapidly d cchanging marketing environment In addition, discussio addition discussion of new trends such as consumers constantly switching media, robots becoming viable technologies, and peer-to-peer websites generating growth in microbusinesses has been added Coverage of changes in the regulatory environment, such as proposed legislation related to the labeling of genetically modified food, has also been included viii C Chapter 4: New Discussion of Anheuser-Busch’s Practices Related A to Ethics and Social Responsibility Chapter now includes a discussion C of the Anheuser-Bu Anheuser-Busch “Our World: Our Responsibility” campaign designed to help Anheuser-Busch become the “Best Beer Company in a Better World.” Other new examples include green marketing and cause marketing activities by Levi Strauss and Procter & Gamble Chapter 5: Update of Evaluative Criteria Example and Addition of Brand Community Discussion The discussion of alternative evaluation and evaluative criteria has been updated with recent smartphone ratings and Apple iPhone-versusMotorola Dröid comparisons In addition, the Reference Group Influence section now includes a new discussion i off associative, aspiration, and dissociative groups and the definition and description of a brand community C Chapter 6: Updated Coverage of Buyer–Seller Relationships and B Supply Partnerships An updated S discussion describes the supply d partnership between Harley-Davidson p and Milsco Manufacturing, a coma pany that has designed and manup ffactured d H Harley-Davidson l motorcycle seats for 80  years The chapter also includes new examples related to Siemens, AT&T, IBM, and Macy’s Chapter 7: New Material on Dell’s Retail Stores in India and China’s Growth in World Trade The chapteropening example has been updated to describe Dell’s retail growth strategy in India, which includes shop-in-a-shop h i h stores and Dell-exclusive stores In addition, the discussion on world trade flows describes how China will become the country with the largest amount of world trade by 2015 C Chapter 8: Updated Test Screenin ing Examples, New In-Depth E Example Using LEGO, and New C Coverage of the Impact of Social M Media and the Use of Cross Tabula lations The discussion of movie stud dios using marketing research is u updated with movies such as The H Hobbit, The Surrogate, and The Hunger Games sequels (Catching Fire and Mockingjay) The discussions related to Step and Step of the Marketing Research Approach are completely updated with LEGO’s research as an example In addition, the discussion of the use of social media in marketing research has been expanded to include Frito-Lay’s use of Facebook as a substitute for focus groups Finally, an extensive discussion of the use of cross tabulations has been added Chapter 9: Updated Zappos, Wendy’s, and Apple Examples The chapter-opening example has been updated to reflect Zappos’s expansion to products other than shoes In addition, the Wendy’s example now includes discussion of Wendy’s new upscale menu, and the Apple ons of the Apple examples include updated discussions product-market grid C Chapter 10: Expanded Discussions o of Disruptive Innovation, Idea Gene eration, Crowdfunding, and Develo opment; a New Marketing Matters B Box; and New X-1 Audio Video C Case Chapter 10 has added new e examples of disruptive innovation, a d discussion about using internal training to generate generat new-product ideas, a description of crowdsourcing sites where inventors can obtain early-stage funding, and a detailed discussion of Google’s driverless car in the development stage of the new-product process A new Marketing Matters box describes the source of the idea for Netflix and how its business model keeps changing A new case, X-1 Audio, gives a detailed description of the development of new waterproof audio equipment for athletes of any kind! Chapter 11: Updated Examples, New Counterfeit Product and Brand Name Discussions, and New Secret Deodorant Video Chapter 11 includes new examples about General Motors, Motors Microsoft, LEGO, Unilever, Android, Caress, ConAgra Foods, and Pepsi-Cola In addition, an expanded discussion describes the most counterfeited branded products and adds to the list of criteria to use when selecting a good brand name The chapter ends with a new video case about Secret deodorant Chapter 12: New Chapter-Opening C Example about the Sharing EconE omy, Updated Concepts, and New o LA Galaxy Video Case The “sharing L economy” being pioneered by sere vvice companies such as Airbnb, Sideccar, Parking Panda, DogVacay, SnapGoods, and TaskRabbit is introS duced in the chapter-opening example d d and d discussed di New concepts such as co-creation of services, innovation of core and supplementary services, and service blueprints are now included in Chapter 12 The chapter ends with a new video case that describes the sports marketing activities of the LA Galaxy soccer team Chapters 13 and 14: New Marketing Matters Boxes, Updated Discussions of Price Elasticity, Break-Even Analysis, and Dynamic Pricing, and New Video Case on Carmex lip balm A new Marketing Matters box describing the Dollar Shave Club illustrates how price transparency has led to new online businesses that use price and convenience to attract customers Another new Marketing Matters box explains how some retailers are using price-match guarantees to stop “showrooming”—the practice of shopping in a store and then buying online New and expanded discussions include the factors that determine price elasticity, a “color-coded” explanation of break-even analysis and a break-even chart, and updated use of dynamic pricing and fixed-pricing terminology A new case discusses pricing practices for Carmex lip balm ix ker61035_sndx_716-740.indd Page 727 11/26/13 5:18 PM f-w-166 /204/MH02017/ker61035_disk1of1/0077861035/ker61035_pagefiles www.freebookslides.com 727 SUBJECT INDEX definition, 400 at Procter & Gamble, 400 in supply chain, 404–405 total logistics cost concept, 404 Logo/Logotype, 283 of service organizations, 311 StuffDOT, 527 Long-range marketing plans, 589 Loss-leader pricing, 360 by Carmex, 375 Lost-horse forecast, 215 Louvre, Paris, 17, 18 Low-involvement purchases, 116 Low-learning products, 277 Loyalty programs advantages and disadvantages, 490 credit card reward programs, 492 customization, 493 interchangeable programs, 493 in mobile marketing, 523 objectives, 490 M Machine vision system purchase, 150–152 Macroeconomic conditions consumer income, 76–78 consumer spending, 75–76 indicators, 75 inflation, 75 recessions, 75 Madrid Protocol, 83–84 Magazines advantages and disadvantages, 480 cost disadvantage, 481 failures since 2000, 482 infrequency, 481 narrowly defined segments, 481 specialized medium, 481 Magnusson-Moss Warranty/FTC Improvement Act of 1975, 293 Mail surveys, 203 Maintained markup, 426 Major League Soccer, 319 Make-buy decision, 151 Makers, 125 Malaysia, advertising regulation, 180 Malcolm Baldrige National Quality Award, 551 Male shoppers, 73–74, 111, 433–434 Mall intercept interviews, 206 Managing for long-run profit, 330 Manufacturers cash discounts, 367 cooperative advertising, 495 dealing with corporate chains, 414 price policy, 364 pull strategy, 453 push strategy, 452–453 sustainable procurement, 147 target pricing, 354–355 trade discounts, 366–367 trade promotions, 494–495 case allowance, 495 finance allowance, 495 merchandise allowance, 495 training distributors’ salesforce, 495 Manufacturer’s agents, 435 Manufacturer’s branch office, 435 Manufacturer-sponsored retail franchise systems, 394 Manufacturer-sponsored wholesale franchise systems, 394 Manufacturer’s representative, 435 Manufacturer’s sales office, 435 Manufacturer’s suggested retail price, 370 Maps, 33 Marginal analysis, 342 advantages and difficulty, 365 Marginal cost, 341, 364 Marginal revenue, 337–338, 364, 449 Marginal revenue curve, 449 Markdown, 381–382 timing of, 426 Market, for Mall of America, 438 for preteens and teenagers, 130 Market and product synergies, 261 Market attractiveness, too little, 255 Market-based groupings, 601 Market decline, 583 Market-dominated information sources, 112 Market growth rate, 36 Marketing, 5; see also Ethical marketing behavior; Services marketing; Strategic marketing process breadth and depth of beneficiaries of, 18–19 organizational buyers, 18 organizations that market, 17–18 products and services, 18 types of utility created, 19 ultimate consumers, 18 and career, 4–5 challenge of two markets, 560 by charities, 18 costs of, as pricing constraint, 332 discovering consumer needs, environmental forces, 10–11 ethical/legal framework, 92–93 ethics in, 17 evolution of market orientation customer relationship era, 15 and customer relationship management, 15–17 marketing concept era, 15 production era, 15 sales era, 15 execution, 585 finding what works, 584–585 four P’s of, 10 impact of technological advance, 79–80 influence on buying, meeting needs with new products, 8–9 nature of markets, necessary conditions for ability to satisfy needs, communication in, something to exchange, unsatisfied needs, by nonprofit organizations, 305–306 opportunities in European Union, 168 and organizational structure, 585 organizing for brand manager, 601 category manager, 601 chief marketing officer, 600 functional groupings, 600 geographical groupings, 600–601 line positions, 600 market-based groupings, 601 product line groupings, 600 product manager, 601 staff positions, 600 performance-oriented culture, 585 personal selling in, 533 price in, 328–330 reasons for new-product failures, 245–255 resource allocation for, 585–588 satisfying consumer needs, 10 social responsibility, 17, 104–105 societal marketing concept, 17 strategy, 585 by StuffDOT, 529 Marketing actions based on SWOT analysis, 40 elements influencing, evaluation of results, 214–215 implementation, 214 movie industry, 194 price transparency, 326 to reach target markets, 236–239 recommendations, 214 from segmentation, 224 Marketing channel relationships legal aspects, 398–399 antitrust laws, 399 dual distribution as anticompetitive, 399 exclusive dealing, 399 full-line forcing, 399 refusal to deal, 399 resale restrictions, 399 and rule of reason, 399 tying arrangements, 399 vertical integration, 399 potential for disagreements, 396 securing cooperation, 398 sources of conflict, 397–398 Marketing channels, 386 at Amazon, 408–409 for business products and services, 389–390 Callaway Golf, 384–385 for consumer products and services, 388–389 direct channels, 391 dual distribution, 391–392 factors affecting choice and management buyer requirements, 395–396 profitability, 396 target market coverage, 394–395 functions, 386–387 Internet, 390–391 and logistics, 400–401 multichannel marketing, 391 with promotional websites, 576 strategic channel alliances, 392 supply chain management, 401 and supply chains, 400–401 terms and description of, 386 vertical marketing systems, 392–394 Marketing concept, 15 Marketing dashboards, 32 Apple Stores, 429 Ben & Jerry’s, 34 Carmex, 207 data visualization bullet graphs, 33 maps, 33 spark lines, 33 Hawaiian Punch, 280 to improve new-product performance, 255–256 integrated marketing communications expenditures, 456 JetBlue Airways, 316 for marketing evaluation, 604–606 marketing metrics, 32–33 reaching customers, 479 Red Bull pricing policy, 361 salesperson performance, 442 website analysis, 566 Marketing decisions, 6–7 and environmental forces, 11 effect of price elasticity, 340–341 Marketing department, key role of, 28 tasks for, 10 Marketing drivers, 208 Marketing evaluation process acting on deviations from goals, 602–603 results exceed goals, 602 results fall short, 602 at General Mills, 609 identifying deviations from goals, 601 marketing dashboards for, 604–606 marketing metrics for, 604–606 marketing ROI, 603–604 return on investment, 603 Marketing finance general operating ratios, 379–380 operating statement cost of goods sold, 376–379 profit element, 379 sales elements, 376 ker61035_sndx_716-740.indd Page 728 11/26/13 5:18 PM f-w-166 /204/MH02017/ker61035_disk1of1/0077861035/ker61035_pagefiles www.freebookslides.com 728 Marketing finance—Cont Paradise Kitchens five-year projections, 62 past sales revenues, 61–62 ratios for evaluating and setting price markdown, 381–382 markup, 380–381 return on investment, 383 stockturn rate, 382–383 Marketing goals, 41 Marketing implementation at General Mills, 608–609 improving action item list, 699 avoiding paralysis by analysis, 596–597 communicate goals, 597 open communication, 597 program champion, 597 reward success, 597–598 time-based agenda, 598–599 increasing emphasis on, 596 versus planning, 596 Marketing information, 387 primary data, 200–212 secondary data, 198–200 Marketing input data, 198 Marketing metrics, 32–33 financial measures, 430 input metrics, 588–589 for marketing evaluation, 604–606 output metrics, 588–589 related to customers, 430 related to stores and products, 430 Marketing mix, 10 activities, 42 and competitor’s price, 333–334 controllable factors, 10 poor execution of, 255 promotional elements, 441 uncontrollable factors, 10–11 variables in introduction stage, 272 Marketing objectives, Paradise Kitchens, 58–59 Marketing organization design, 43 Marketing outcome data, 198 Marketing plan, 32 annual, 589 versus business plan, 50–51 defining tasks, responsibilities, and deadlines, 43–44 elements of, 51 guidelines clear and specific plans, 593 complete and feasible plans, 593 consensus building, 593 controllable and flexible plans, 593 facts and valid assumptions, 593 measurable and achievable goals, 593 right person for implementation, 593 IBM, 49 industry type, 50 kind and complexity of, 50 long-range, 589 Medtronic, 42 most-asked questions about, 51 Paradise Kitchens company analysis, 57 competitor analysis, 56–57 core competencies, 54 customer analysis, 57–58 distribution strategy, 61 evaluation, 63 financial data and projections, 61–62 goals, 54 implementation plan, 63 industry analysis, 56 interpreting, 52 marketing objectives, 58–59 market-product focus, 58–59 mission, 53 organizational structure, 62–63 points of difference, 59 SUBJECT INDEX price strategy, 60 product objectives, 58–59 product positioning, 59 product strategy, 60 promotion strategy, 60–61 sustainable competitive advantage, 54 SWOT analysis, 55–56 target markets, 59 problems with lost sight of customer needs, 593 no sense of ownership by line operators, 594 poor assumptions about environmental forces, 593 too much time and effort, 594 target audience and purpose, 50 writing style suggestions, 51–52 Marketing planning at General Mills, 608 versus implementation, 596 marketing metrics, 588–589 value-based planning, 594 value-driven strategies, 594 Marketing planning framework generic business strategies, 589–590 synergy analysis, 591–592 Marketing program, 12 action item list, 599 avoiding paralysis by analysis, 596–597 communicate goals, 597 customer relationships, 11–12 customer value, 11–12 devising, 42 execution of, 44 four P’s of marketing, 10 Los Angeles Galaxy game experience, 320 messages to segments, 320–321 personal selling, 321 pricing, 321 types of fans, 320 market segments, 12 open communication, 597 Paradise Kitchens distribution strategy, 61 price strategy, 58 product strategy, 58 promotion strategy, 58–59 program champion, 597 relationship marketing, 12 reward success, 597–598 at 3M Corporation, 13–14 time-based agenda, 598–599 worldwide choosing a strategy, 184 distribution strategy, 186–187 pricing strategies, 187 product strategy, 185–186 promotion strategy, 185–186 Marketing research, 194 for advertising, 444 on African Americans, 132 Carmex use of Facebook, 219–221 causal, 196 challenges in doing, 194 collect relevant data develop findings, 212–214 primary data sources, 200–212 secondary data sources, 198–200 decision-making process, 219–221 descriptive, 196 exploratory, 196 marketing actions from, 214–215 measures of success, 196 by movie industry film titles, 192 risk of blockbuster films, 192–193 test screenings, 193–194 tracking studies, 194 online database sources, 200 problem definition identify marketing actions, 196 setting objectives, 195–196 research plan determine data collection, 197 identify needed data, 197 specify constraints, 196 sales forecasting techniques, 215–216 sampling, 197 statistical inference, 197 Marketing research findings data analysis, 212 presentation of, 213–214 Marketing ROI, 603 Marketing strategies, 44 aligned with supply chain, 402–403 for attitude change, 124 Ben & Jerry’s, 24 Chobani, Inc., 2–4 generational marketing, 70 IBM, 48–49 and level of consumer involvement, 116–117 Mary Kay India, 189–191 and salesforce organization, 547 stimulus discrimination, 122 at 3M Corporation, 13–14 and types of competitive market, 334 Vizio, Inc., 350–351 Marketing tactics, 44 Market modification, 281 finding new customers, 281 increasing product use, 281 new use situation, 281 Market orientation, 15 and customer relationship management, 15–17 evolution of customer relationship era, 15 marketing concept era, 15 production era, 15 sales era, 15 Market penetration, 38–39 Marketplace changing attitudes and roles of men and women, 73–74 environmental scan of, 67–68 versus marketspace, 560 in online retailing, 423 Market-product concentration, 591, 592 Market-product focus based on market segmentation, 40–41 goal setting, 41 Paradise Kitchens, 58–59 Market-product grid, 225 at Apple Inc., 240 for segmentation, 235–236 for synergy analysis, 591–592 Market-product synergies, 239–240 Market protocol, incomplete, 254 Market research companies, 199 Market segmentation, 40–41, 224 awareness of competition, 238 consumer markets, 229–233 grouping potential buyers, 228–229 linking needs to actions, 224 marketing actions, 224 marketing actions to reach target markets, 236–239 market-product grid, 225, 235 market-product synergies, 239–240 market size estimation, 235 organizational markets, 233 perceptual maps product positioning, 241 product repositioning, 242 positioning statement, 241 by Prince Sports, Inc., 243–245 and product differentiation, 224 product grouping, 234–235 product positioning differentiation, 241 head-to-head, 240 reasons for, 225 target market selection, 236 ker61035_sndx_716-740.indd Page 729 11/26/13 5:18 PM f-w-166 /204/MH02017/ker61035_disk1of1/0077861035/ker61035_pagefiles www.freebookslides.com 729 SUBJECT INDEX variables for consumer markets behavioral segmentation, 229 demographic segmentation, 229 geographic segmentation, 229 psychographic segmentation, 229 variables for organizational markets behavioral, 233 demographic, 233 geographic, 233 Market segmentation strategy changes at Apple Inc., 239 mass customization, 226–227 multiple products and multiple segments, 226 one product and multiple segments, 226 synergies vs cannibalization, 227 at Wendy’s between-meal snacks, 237 day commuters, 237 night commuters, 237 Zappos.com, 222, 224–225 Market segments, 12 advertising to reach, 237 blurring lines between, 227 components, 224 fast-food restaurants, 231–232 global strategies to find, 594 grouping buyers into consumer markets, 229–233 criteria, 228–229 organizational markets, 233 for magazines, 482 and mass customization, 226–227 multibranding for, 288–289 multiple products and multiple segments, 226 one product and multiple segments, 226 and product features at Prince Sports, 245 for StuffDOT, 528 in synergy analysis, 591–592 at 3M Corporation, 14 Washburn Guitar, 348 Market share, 31 in maturity stage, 275 as pricing objective, 31 relative, 36 in retail life cycle, 431–432 Market size criterion for target market selection, 236 estimation for segmentation, 235–236 Marketspace, 80 creating customer value, 560–561 creating online customer experience, 563–565 commerce, 565 communication, 565 community, 565 connection, 564–565 content, 564 context, 564 customization, 564 interactivity, individuality, and customer relationships, 562–563 versus marketplace, 560 Market specialization, 591, 592 Market synergies, 240 Market testing, 262 controlled test market, 263 simulated test market, 263 standard test market, 262–263 test-market cities, 262 when not feasible, 263 Markup, 426 concession stands at theaters, 356 definition, 380 percentage on costs, 380–381 percentage on selling price, 380 staple or discretionary items, 355 Massachusetts Institute of Technology, 195 Mass selling, 444 Matching competitors budgeting, 455 Maturity stage product life cycle, 275 retail life cycle, 431–432 Maximizing current profit, 330 Measures of success, 196 Mechanical data collection, 200–201 Media richness, 505–506 meet-the-competition defense, 371 Men car buyers, 111 changing attitudes and roles, 73–74 as mission shoppers, 433–434 Merchandise allowance, 495 Merchandise line, 414 breadth of, 418–419 depth of, 417–418 Merchandise offerings category management, 429–430 marketing metrics, 430 Merchandise wholesalers cash and carry wholesalers, 434 desk jobbers, 434–435 drop shippers, 434–345 full-service, 434 general merchandise wholesalers, 434 limited-service, 434 rack jobbers, 434 specialty merchandise wholesalers, 434 truck jobbers, 435 Merchant wholesalers, 434 Message, 442 Message content fear appeals, 475 humorous appeals, 475–476 informational elements, 474–475 persuasive elements, 474–475 sex appeals, 475 Message creation advertising agencies, 476 celebrity endorsements, 476 costs, 477 Methods, 197 Metropolitan divisions, 71 Metropolitan statistical areas, 71 Mexico exports to United States, 163 imports from United States, 163 and North American Free Trade Agreement, 169 trade dispute with U.S., 187 Microfinance, 179 Micropolitan statistical areas, 71 Millennials, 70–71 Minority, as obsolete term, 69 Minority Business Enterprise Program, AT&T, 145 Minority-owned vendors, 144 Mission, 29 of IBM, 48–49 Paradise Kitchens, 53 Missionary salespeople, 537 Mission shoppers, 433–434 Mission statement Ben & Jerry’s, 24 examples, 29–30 Mixed branding, 290 Mobile apps, 522 Mobile direct marketing, 460 Mobile marketing, 449 buyer control, 524 empowering users, 524 future of, 524 location-based promotions, 523 loyalty programs, 523 near field communication, 524 price-comparison searches, 523 privacy issue, 524–525 sensor control, 524 Mobile phone sales, 553 Modified rebuy, 148–149 Mona Lisa, 18 Monopolistic competition, 333, 334 definition, 80 Monopoly, 81, 333, 334 Moral idealism, 100 Motivation, 118 based on needs, 118–119 in VALS system achievement-motivated groups, 125 high- and low-resource groups, 125 ideals-motivated groups, 125 self-expression-motivated groups, 125 Movement along a demand curve, 337 Movie industry, marketing research by, 192–194 Movie theaters, standard markup pricing, 356 Multibranding, 288 advertising and promotion costs, 289 fighting brands, 289 Multichannel marketing, 391 channel conflict, 575 implementing with promotional websites, 575–576 with transactional websites, 575 Pizza Hut, 578–581 Multichannel Merchant, 421 Multichannel retailers, 432 benefits, 433 cannibalization problem, 433 influence effect, 433 omnichannel retailing, 433 Multicultural marketing, 72 Multidomestic marketing strategy, 170 Multimedia approaches to promotion, 497 Multinational firms, 170 Multiple-zone pricing, 369 Multiproduct branding, 288 brand extension, 288 co-branding, 288 product line extension, 288 subbranding, 288 Mystery shopper, 201 N NAICS; see North American Industry Classification System National advertising campaign, 482 National Aeronautics and Space Administration, 141, 356 National Bureau of Economic Research, on new car sales, 363 National Cable and Telecommunication Association, 479 National Do Not Call Registry, 85, 96, 424, 462, 540 National Highway Traffic Safety Administration, 102 National Retail Federation, 426 National television ratings, 200–201 National Weather Service, 484 NationofResponsibleDrinkers.com, 90 Necessities, price inelastic, 340 Needs; see also Consumer needs ability to satisfy, of buyers in segments, 228 from drives, 122 hierarchy of, 118–119 perceiving, 112 unsatisfied, versus wants, 10 Need-satisfaction presentation, 542 adaptive selling, 542 consultative selling, 542 Negative deviation, 46 Netizens, 566 Net sales, 376 Networked global marketspace, 172–173 benefits to industries, 173 buyers’ access to, 173 Network technologies, 80 Neuromarketing data collection, 202 New buy, 148–149 New car sales discrimination in, 363 trade-in allowances, 368 New market, reaching, 282 ker61035_sndx_716-740.indd Page 730 11/26/13 5:18 PM f-w-166 /204/MH02017/ker61035_disk1of1/0077861035/ker61035_pagefiles www.freebookslides.com 730 New-product concept, 197 New-product failures, 253–255 bad timing, 254 examples, 8–9 incomplete protocol, 254 insignificant points of difference, 254 no economical access to buyers, 254 not satisfying customer needs, 254 organizational inertia in, 255 poor execution of marketing mix, 255 poor quality, 254 preventing, too little market attractiveness, 255 New-product launch, Chobani, Inc., 2–4, 21–23 New-product pipeline, 589 New-product process, 256–257 at Apple Inc., 246–248 business analysis, 261 Chobani, Inc., 21–23 commercialization, 263–264 crowdfunding for, 259–260 development, 261–262 early-stage financing, 259–260 at General Mills, 582–584 idea generation, 257–259 market testing, 262–263 screening and evaluation, 260 speed as factor in success fast prototyping, 265 parallel development, 265 time to market, 264 Stage-Gate evaluation process, 255–257 strategy development, 257 at X-1, 267–269 New products marketing dashboard to improve performance, 255–256 meeting consumer needs with, perspectives on newness compared to existing products, 251 consumers, 252 legal terms, 252 organizations, 253 precise protocol, 253 skimming pricing, 352–353 from technological advance, 79 New-product strategy development, 257 News conference, 496 Newspapers advantages and disadvantages, 480 decline in circulation, 482 online, 482 News releases, 496 Newsweek, 415 New York Times, 226, 564 Noise, 444 Noncumulative quantity discounts, 366 Nondurable goods, 248 Nonmonetary costs of services, 312 Nonmonetary rewards, 551 Nonprofit organizations, 26 examples, 305–306 goals of, 31 marketing by, 17–18 publicity by, 313 revenues, 305 services from, 304–306 social marketing campaigns, 306 Nonstore retailing automatic vending, 419–420 catalogs, 420–421 direct mail, 420–421 direct selling, 424 online retailing, 422–423 telemarketing, 423–424 television home shopping, 421 Norms, 94–95 North American Free Trade Agreement, 142 description, 169 North American Industry Classification System, 141–142, 199 demographic segmentation based on, 233 SUBJECT INDEX Nostalgia, 331–332 Not-invented-here problem, 255 Nutritional Labeling and Education Act, 83 O Objections, handling accept, 543 acknowledge and convert, 542 agree and neutralize, 542 denial, 543 ignore, 543 postpone, 542 Objective and task budgeting, 456 Objectives, 31 of advertising, 473 in marketing research, 195–196 in organizational buying, 144 of sales plan, 545 Observational data, 198, 200 mechanical collection, 200–201 neuromarketing collection, 202 personal collection, 201–202 Odd-even pricing, 354 at Walgreens, 375 Off-peak pricing, 261, 312 Off-price retailing, 427, 431 versus discount stores, 427 outlet stores, 427 in recessionary climate, 427 single-price stores, 427 warehouse clubs, 427 Older married couples, 129–130 Older unmarried individuals, 130 Oligopoly, 333, 334 definition, 80 Walmart, 335 Omnichannel retailers, 433 One-price policy, 361–362 Online advertising, 500–501; see also Internet advertising click fraud, 485 Online auctions, 154–155 Online behavioral advertising, 462 Online buying in organizational markets e-marketplaces, 153–154 forms, 153 online auctions, 154–155 reasons for prominence, 153 Online consumer behavior labels for consumers, 566 lifestyle segmentation, 567–568 profiling, 567 purchases, 568–569 reasons for shopping, 567–572 choice, 570 communication, 570–572 control, 573 convenience, 570 cost, 572–573 customization, 570 favorite websites, 573 timing, 573 Online consumer experience, website capabilities, 563–565 Online consumers, 567 behavioral targeting, 573 characteristics, 567 cross-channel shoppers, 574 eight-second rule, 570 growth in sales to, 560 lifestyle segmentation brand loyalists, 567–568 click-and-mortar segment, 567 e-bivalent newbies, 568 hooked, online, and single, 568 hunters and gatherers, 567 time-sensitive materialists, 568 privacy and security, 574 terms for, 566 types of, 567 Online databases CNBC, 200 data mining, 209–210 Fox Business, 200 Google, Inc., 200 sensitivity analysis, 209 STAT-USA, 200 USA.gov, 200 Wall Street Journal, 200 Online forums, 128 Online marketing/retailing at Amazon, 408–409 catalogs for, 420–421 checkout failures, 423 comparison engines, 423 different approaches, 423 eight-second rule, 396 flash sales, 422 percentage of retail sales, 422 for services, 312 showrooming, 422 social shopping options aggregators, 422 intermediaries, 422 marketplaces, 422 use by traditional retailers, 422 website characteristics, 563–565 Zappos.com, 222–223, 224–225 Online newspapers, 482 Online rating services, 484 Online retailers choiceboards, 562 main online categories, 569 opt-in, 563 personalization by, 562–563 rules for permission marketing, 563 self-regulation, 574 Seven Cycles, Inc., 558–559 Online shopping choice, 570 communication, 570–572 control, 573 convenience, 570 cost, 572 Online surveys drawbacks, 204 methods, 203–204 Online tracking, 85 Online TV, 469 Open dating, 291 Open-ended questions, 205 Open innovation, 258 Operating expense per seat in airlines, 316 Operating ratios, 379–380 Operating statement costs of goods sold, 376–379 profit element, 379 sales elements allowances, 376 gross sales, 376 net sales, 376 returns, 376 Opinion leaders, 126 characteristics, 126 percent of U.S adults, 126–127 Opportunities, exploiting, 40 Opt-in requirement, 462, 563 Opt-out, 563 Orange Bowl, 270 Order clerks, 536 Order cycle time, 404 Order getters, 536 hours of work, 537 outbound telemarketing, 537 presentation stage, 541–542 qualifications, 549 skills needed for, 536–537 Order takers, 535 inside, 536 outside, 535–536 ker61035_sndx_716-740.indd Page 731 11/26/13 5:18 PM f-w-166 /204/MH02017/ker61035_disk1of1/0077861035/ker61035_pagefiles www.freebookslides.com 731 SUBJECT INDEX Organizational buyers, 18, 140 global, 141 government agencies, 141 industrial, 140 resellers, 140 Organizational buying; see also Business products and services business marketing, 140 business products, 248, 249–250 characteristics buyer–seller relationships, 145–147 buying centers, 147–149 buying criteria, 144–145 reciprocity, 146 supply partnerships, 146–147 competitive bids, 144 consultative selling, 542 cost-plus pricing, 356 derived demand in, 143 JCPMedia, 138–139 lessons for marketers, 152 measurement of markets, 141–142 nature and size of markets, 140–141 number of potential buyers, 144 objectives, 144 online buying e-marketplaces, 153–154 online auctions, 154–155 prominence of, 153 organizational buyers, 140 purchase decision process, 149–152 alternative evaluation, 151 information search, 151 postpurchase behavior, 152 problem recognition, 151 purchase decision, 152 size of order or purchase, 144 stages, 150 Trek Bicycle Corporation, 157–159 by Walmart, 102 Organizational buying behavior, 149 key characteristics and dimensions of, 143 purchase decision process alternative evaluation, 151 information search, 151 postpurchase behavior, 152 problem recognition, 151 purchase decision, 152 stages in buying process, 150 Organizational buying criteria, 144–145 ISO 9000 standards, 145 most common, 145 supplier development, 145 Organizational chart, 43 Organizational culture, 30 Google, Inc., 500 performance-oriented, 585 Organizational direction business model, 30–31 goals and objectives, 31 nature of the business, 30–31 Organizational foundation, 28–30 core values, 29 mission, 29–30 organizational culture, 30 Organizational inertia in new-product failure groupthink, 255 not-invented-here problem, 255 Organizational markets global, 141 government markets, 141 industrial, 140 reseller markets, 141 segmentation behavioral, 233 demographic by NAICS code, 233 demographic by number of employees, 233 geographic, 233 Organizational objectives, criterion for target market selection, 236 Organizational strategies variation by level, 32 variation by product, 32 Organizational structure, 26–28 corporate level, 27–28 delayering strategy, 596 diagram, 27 functional level, 28 Paradise Kitchens, 62–63 strategic business unit level, 28 Organizational synergy, 227 Organizations; see also Companies benefit of markets for, 18 board of directors, 27 creating industries, 26 cross-functional teams, 28 definition, 26 departments of, effect on marketing, fast, flexible, and flat, 585 for-profit, 26 government agencies, 26 kinds and complexity of, 50 marketing by, 17–18 newness from perspective of brand extension, 253 product line extension, 253 radical innovation, 253 nonprofit, 26 for-profit vs nonprofit, 304–306 visionary, 29 Original equipment manufacturers, 150–151 Original markup, 426 Orion lunar spacecraft, 141 Outbound telemarketing, 537 Outdoor advertising advantages and disadvantages, 480 billboards, 484 conditional content ads, 484 digital billboards, 484 expenditures on, 484 transit advertising, 484 Outdoor Advertising Association of America, 484 Outlet stores, 427 Output metrics, 588–589 Output-related measures, 551 Output-related objectives, 545 Outside order takers, 535–536 P Packaging, 291 challenges for companies connecting with customers, 292 cost reduction, 293 environmental issues, 292 health, safety, and security, 292 consumer protection from, 291 costs to companies, 290 creating customer value, 291 customer value and competitive advantage from communication benefits, 290 functional benefits, 290–291 perceptual benefits, 291–292 downsizing, 283 to extend shelf life, 292 Gatorade, 271 Paid search, 483 business expenditures, 460 response rate, 460 Palo Alto Research Center, 257 Pampers Village, 565 Panels, 208 Parallel development, 265 Parallel importing, 187 Paralysis by analysis, 596–597 Partners, global strategies to find, 594 Partnership selling, 534 Payoffs, 174 Peer-to-peer sharing of services, 298–299 Penetration pricing, 272, 353 conditions for effectiveness, 353 following skimming pricing, 353 at Walgreens, 375 People-based services, 304, 313–314 Per capita income China, 190 developing countries, 178 European Union, 178 India, 190 worldwide range, 68 Perceived risk, 121 Percentage of sales budgeting, 455 Perception, 120 of risk, 121–122 selective, 120–121 subliminal, 121 of value, 114 Perceptual benefits of packaging and labeling, 291–292 Perceptual map, 241 for product positioning, 241 for product repositioning, 242 steps in creating, 241 Performance measures new-product pipeline, 589 Paradise Kitchens, 63 revenue growth, 589 for social media cost per action, 517 cost per click, 517 cost per thousand, 517 linked to inputs or costs, 516–517 linked to outputs or revenues, 517–518 Performance-oriented culture, 585 Performance tracking with marketing dashboards, 32–34 Permanence, social vs traditional media, 506 Permission marketing, 563 Per se illegal concept, 84, 369–370 Personal data collection ethnographic research, 202 mystery shopper, 201 Personal influence opinion leaders, 126–127 word of mouth, 127–128 Personal interview survey, 203 Personality, 119 key traits, 119 self-concept, 119 Personalization, 562 by online retailers, 562–563 permission marketing, 563 Personal moral philosophy, 99–100 moral idealism, 100 utilitarianism, 100 Personal needs, 119 Personal predictive capabilities, 78 Personal selling, 445, 532 advantages, 445–446 conference selling, 537 costs, 445 cross-functional team selling, 538 customer sales support, 537 customized interaction, 444 in design of promotion, 457 disadvantages, 446 feedback, 446 by Los Angeles Galaxy, 321 in marketing, 533 missionary salespeople, 537 number of people employed in, 532–533 order getters, 536–537 order takers, 535–536 in postpurchase stage, 452 and product characteristics, 451 in purchase stage, 451 and push strategy, 452 sales engineers, 537 sales professional, 530–531 seminar selling, 537 of services, 313 strengths and weaknesses, 445 target audience, 448 team selling, 537 wasted coverage reduced, 445–446 at Xerox, 556 ker61035_sndx_716-740.indd Page 732 11/26/13 5:18 PM f-w-166 /204/MH02017/ker61035_disk1of1/0077861035/ker61035_pagefiles www.freebookslides.com 732 Personal selling process, 538 approach, 541 closing stage, 543–544 follow-up stage, 544 handling objections, 542–543 preapproach, 541 presentation stage formula selling format, 541–542 need-satisfaction format, 452 stimulus-response format, 541 prospecting, 538–540 Personal sources of information, 112 Persuasive advertising, 470 Pharmaceutical industry, missionary salespeople, 537 Pharmacy Times Magazine, 374 Physical environment in services marketing, 314 Physical surroundings, 117 Physiological needs, 119 Pioneering advertisements institutional, 471 for products, 470 Place, for services, 312 Place-based media, 485 Place strategy, 42 Place utility, 19 benefit of intermediaries, 387 from marketspace, 561 from retailing, 412 Planning gap, 45 Point-of-purchase displays, 493 advantages and disadvantages, 490 objectives, 490 Points of difference, 41 insignificant, 254 Paradise Kitchens, 59 Political-regulatory climate political stability, 180 trade regulations, 180–181 Polling, 220–221 Population bottom of the pyramid, 177 China, 190 India, 190 statistical areas of U.S., 71 United States, 68–69 world, 68 Population explosion, 68 Population Reference Bureau, 68 Population shifts, 70–71 Pop-up blockers, 204 Portfolio tests, 486 Positioning statement, 241 Positive deviation, 46 Positive reinforcement, 122–123 Possession utility, 19 benefit of intermediaries, 387 from marketspace, 561 from retailing, 412 Postage fees, and direct marketing, 461 Postpurchase behavior by consumers cognitive dissonance, 115 satisfaction or dissatisfaction, 114 in organizational buying, 150, 152 Posttests, 488 for advertising aided recall, 488 attitude tests, 488 inquiry tests, 488 results, 489 sales tests, 488 Starch test, 488 unaided recall, 488 of promotion program, 459 Power center, 428 Preapproach stage information gathering, 540–541 in international selling, 540 objectives, 539 Precycling, 80 Predatory pricing, 372 SUBJECT INDEX Premiums, 491 advantages and disadvantages, 490 objectives, 490 Pre- or postsale services, buyer requirement, 396 Presentation stage formula selling format, 541–542 need-satisfaction format, 542 objectives, 539 stimulus-response format, 541 Prestige pricing, 353 demand curve, 353 examples, 353–354 status-conscious consumers, 353 at Walgreens, 375 Pretests, 486 for advertising, 486–487 jury tests, 487 portfolio tests, 487 theater tests, 487 of promotion program, 459 Price(s), 324 of cigarettes in New York City, 341 for collectibles, 331–332 costs of changing, 332 in decline stage, 275 decoding buy one, get one free, 328 flash sales, 328 final price calculation, 325–326 in global marketplace, 326 impact of tariffs, 166–167 as indicator of quality, 426 as indicator of value, 326–327 influence on demand, 337 markdown, 381–382 in marketing mix, 328–330 markup, 380–381 off-peak pricing, 312 online retailing, 572–573 role in organizations, 324 of services, 312 terminology for, 312 terms for, 324 time period for, 332 Price changes effect of Internet, 334 and elastic demand, 340 and inelastic demand, 340 Price comparisons from Internet, 334 in mobile marketing, 523 Price cuts conditions for, 364 in maturity stage, 450 Price differentials, 363 legal types, 370–371 in Robinson-Patman Act, 370–371 Price discounting, 84 Price discrimination, 370 cost justification defense, 370 in dynamic pricing policy, 362 meet-the-competition defense, 371 off-peak pricing, 261 rule of reason in, 371 Price elasticity of demand, 340 effect on marketing decisions, 340–341 effect on public policy, 340–341 elastic demand, 340 formula, 340 inelastic demand, 340 and total revenue, 340 Price equation, 324–325 calculating final price, 325–326 Price fixing, 84, 93, 369 horizontal, 370 and manufacturer’s suggested retail price, 370 per se illegal, 369–370 resale price maintenance, 370 and rule of reason, 370 vertical, 370 Price increase, effect on disposable income, 76 Price level, marginal analysis, 342 Price lining, 354 demand curve, 354 price points, 354 Price-matching strategy, 335 Price points, 354 Price policy balancing incremental costs and revenue, 364–365 company effects, 363 competitive effects, 364 customer effects, 364 dynamic pricing policy, 362–363 fixed-price policy, 361–362 product-line pricing, 363 Price premium, 360 Price transparency, 326 Dollar Shave Club, 327 Price-value position, 351 Price war, 364 Pricing constraints, 331 competitors’ prices, 333–335 cost of changing prices, 332 costs of production and marketing, 332 demand, 331 legal and ethical issues, 335 newness of product, 331–332 single product vs product line, 332 type of competitive market, 332–333, 334 Pricing decisions and average revenue, 337–338 buy one, get one free, 328 at Carma Laboratories, Inc., 374–375 cost concepts relevant to, 341–342 financial element or ratios for, 380 influence of total revenue and total cost, 328 issues involved in, 324 legal and regulatory aspects deceptive pricing, 371 geographical pricing, 371 predatory pricing, 372 price discrimination, 370–371 price fixing, 369–370 and marginal revenue, 337–338 selecting approximate price level, 352–360 setting list or quoted price, 360–365 special adjustments to list price, 365–369 steps in demand estimation, 336–337 determining cost, profit, and volume relationships, 341–345 identifying objectives, 330–331 identifying pricing constraints, 331–335 revenue estimation, 337–341 StubHub.com, 322–324 and total revenue, 337–338 and type of competitive market, 333, 334 value pricing, 327–328 Washburn Guitar, 348–349 Pricing objectives, 330 and financial condition of company, 330 market share, 331 profit, 330 sales, 330 social responsibility, 331 survival, 331 unit volume, 331 Pricing questions, 328 Pricing-related legislation price discounting, 84 price fixing, 84 promotional allowances, 84 Pricing strategies, 42 aggressive, 274 Chobani, Inc., 22 competition-oriented approaches, 359–360 competitive price matching, 335 cost-oriented approaches, 355–357 demand-oriented approaches, 352–355 dynamic pricing, 334–335, 572–573 by global companies challenges, 187 ker61035_sndx_716-740.indd Page 733 11/26/13 5:18 PM f-w-166 /204/MH02017/ker61035_disk1of1/0077861035/ker61035_pagefiles www.freebookslides.com 733 SUBJECT INDEX and dumping, 187 and gray market, 187 legal and regulatory aspects deceptive pricing, 371 geographic pricing, 371 predatory pricing, 372 price discrimination, 370–371 price fixing, 369–370 by Los Angeles Galaxy, 321 Paradise Kitchens, 60 penetration, 272 product-line pricing, 363 profit-oriented approaches, 357–359 in retailing, 426–427 showrooming, 335 skimming strategy, 272 Walmart, 335 Primary data, 198 advantages and disadvantages, 210 analysis using cross tabulations, 210–212 data mining, 209–210 experiments, 208 information technology for, 208–209 data warehouses, 209 product and brand drivers, 209 sensitivity analysis, 209 observational mechanical collection, 200–201 neuromarketing collection, 202 personal collection, 201–202 panels, 208 questionnaire data depth interviews, 203 focus groups, 203 fuzzy front end method, 203 individual interviews, 202 mall intercept interviews, 206 online surveys, 203–204 personal interview surveys, 203 social media sources, 206–208 Primary demand, 272 Privacy in direct marketing, 462 for online consumers, 574 and online tracking, 85 social vs traditional media, 506 Privacy rights, 95–96 Privacy settings, 510 Private branding, 289 Private exchanges, 154 PRIZM consumer segmentation, 230, 239 Problem identification in marketing research identify marketing actions, 195 setting objectives, 194–195 Problem recognition by consumers, 112 in organizational buying, 150, 151 Problem-solving by consumers extended, 116 limited, 116 routine, 116 Process of services marketing, 314–315 Procurement, sustainable, 147 Producers, cannibalization, 227 Product(s), 18, 248; see also New products attributes, 124 benchmark items, 426 bought by preteens and teenagers, 130 built-to-order, 227 business products, 248, 249–250 component of services industry, 311 consumer products, 248, 249 degree of learning required by consumers, 252 demand factors consumer tastes, 336 income, 337 price and availability of similar products, 337 downsizing packages, 283 ecologically safe, 83 and exclusive dealing, 399 fad, 277 fashion, 277 feature bloat, 251 full-line forcing, 399 grouped for market segments, 234–235 high-involvement, 117 high-learning, 277 increasing the use of, 281 low-learning, 277 main online categories, 569 mass customization, 226–227 recycling, 79–80 resale restrictions, 399 shelf life, 292 signpost items, 426 sold by automatic vending, 419–420 stock keeping units, 250 strategies for risk-perception reduction, 122 strategy varying by, 32 tying arrangements, 399 types of innovation, 252 warranties, 293 Product adaptation by global companies, 185 Product adapters, categories of, 278, 279 Product advertisements, 470 comparative, 470 competitive, 470 pioneering, 470 reinforcement, 471 reminder, 470–471 Product benefits and brand name, 286 Product bundling, 281 Product characteristics ancillary services, 451 complexity, 450 risk for buyers, 451 Product class, 250, 278 Product counterfeiting sales lost to, 284 Stop Counterfeiting in Manufactured Goods Act, 284 Product deletion, 275–276 Product development, 270–272 at 3M Corporation, 102 Product differentiation, 224 in auto industry, 226 broadened in growth stage, 274 Gatorade, 271–272 in maturity stage, 275 Product-distribution franchises, 415–416 Product drivers, 209 Product extension, by global companies, 185 Product features, segmentation by, 230 Product form, 250, 278 Product goals, 41 Product image, and brand name, 286 Product invention, by global companies, 185 Production, mass customization, 226–227 Production era, 15 Product item, 250 Product liability claims, 293 Product life cycle, 272 categories of purchasers, 278–279 decline stage drop in sales, 276 harvesting strategy, 276 product deletion, 276–277 diagram, 273 factors affecting consumer acceptance, 278–279 of fax machine, 273–276 growth stage aggressive pricing, 274 broadened distribution, 274 number of competitors, 274 product proliferation, 274 repeat purchasers, 274 selective demand, 274 introduction stage advertising and promotion, 272 creating selective demand, 272 fax machines, 273 penetration pricing, 272 reasons for consumer resistance, 278 skimming strategy, 272 stimulating primary demand, 272 trials, 272 length of, 276 managing market modification, 281 product/brand manager role, 279–280 product modification, 281 product repositioning, 281–283 marketing objectives, 273 maturity stage holding market share, 275 slowing sales and revenue, 275 newness of product, 331–332 and nostalgia, 331–332 and product class, 277–278 and product form, 277–278 in promotional mix decline stage, 450 growth stage, 449–450 introduction stage, 449 maturity stage, 450 shape of fad products, 277 fashion products, 277 generalized life cycle, 276 high-learning products, 277 low-learning products, 277 for video games, 522–523 Product line, 250 at Amazon, 408–409 Carmex, 219 target discounts, 367 Washburn Guitar, 348 Product line extension, 253 Chobani, Inc., 4, 23 multiproduct branding, 288 at 3M Corporation, 14 Zappos.com, 222 Product line groupings, 600 Product-line pricing, 363 Product line vs single product as pricing constraint, 332 Product management, Procter & Gamble, 295–297 Product manager, 601 Product managers; see also Brand managers origin of, 279–280 Product mix, 250 Product modification, 281 Product newness, 331–332 Product objectives, Paradise Kitchens, 58–59 Product placement, 493 advantages and disadvantages, 490 annual value, 494 Federal Communications Commission on, 494 in movies and television, 493–494 objectives, 490 reverse, 494 Product positioning, 41, 240 differentiation, 241 head-to-head, 240 Paradise Kitchens, 59 using perceptual maps, 241 Product protocol, incomplete, 254 Product rating organizations, 112, 113 Product-related legislation Child Protection Act, 83 Consumer Product Safety Act, 83 copyright law, 82 Digital Millennium Copyright Act, 82–83 Fair Packaging and Labeling Act, 83 Federal Dilution Act, 84 Infant Formula Act, 83 Lanham Act, 83 Nutritional Labeling and Education Act, 83 Trademark Law Revision Act, 83 Product repositioning, 240 catching rising trend, 282 changing value offered trading down, 283 trading up, 282 definition, 281 ker61035_sndx_716-740.indd Page 734 11/26/13 5:18 PM f-w-166 /204/MH02017/ker61035_disk1of1/0077861035/ker61035_pagefiles www.freebookslides.com 734 Product repositioning—Cont reaching new markets, 282 reacting to competition’s position, 282 using perceptual maps, 242 Product safety, 95 Product sales organization, 547 Product specialization, 591, 592 Product strategy, 42 Chobani, Inc., 22 for global companies dual-adaptation strategy, 186 product adaptation, 185 product extension, 185 product invention, 185 Paradise Kitchens, 60 Product synergies, 240 Professional innovation laboratories, new-product ideas from, 259 Profit, 26 in break-even analysis, 344 managing for long-run, 330 maximizing, 330 organizational goal, 31 potential in global strategies, 181 return on assets, 330 return on investment, 330 target return, 330 Profitability in channel selection, 396 Profit and loss statement, 376 Profit before taxes, 379 Profit equation, 328 Profit margin, cause of channel conflict, 398 Profit-oriented pricing approaches target profit pricing, 357–358 target return-on-investment pricing, 358–359 target return-on-sales pricing, 358 Profit potential, 228 Profit responsibility, 101 Program champion, 597 Program meetings, 43 Programme for the Endorsement of Forest Certification, 139 Project Shakti, India, 179 Promotion by Carmex, 375 design of, 457 elements of advertising, 444–445, 470–489 direct marketing, 447–448 personal selling, 445–446 publicity, 446–447 public relations, 446–447, 496 sales promotion, 447, 489–495 flash sales, 328 in marketing mix, 441 means to increase value of, 496–497 building long-term relationships, 497 self-regulation, 497 Mountain Dew, 465–467 of services, 312–313 Promotional allowances, 84, 368 in Robinson-Patman Act, 371 Promotional mix, 441 buying decision stages, 451–452 channel strategies pull strategy, 452 push strategy, 452–453 product characteristics, 450–451 product life cycle, 449–450 target audience, 448 Promotional Products Association International, 491 Promotional websites, 575–576 Promotion budget all-you-can-afford budgeting, 455–456 competitive parity budgeting, 455 objective and task budgeting, 456 percentage of sales budgeting, 455 Promotion costs, with multibranding, 289 Promotion expenditures, top ten companies, 455 Promotion objectives, 454 SUBJECT INDEX Promotion program designing the promotion, 457 executing and assessing costs, 458 facilitation of design and use, 458 integrated marketing communications audit, 458 number of agencies, 458 posttest procedures, 459 pretesting, 459 test-result database, 459 total communications solutions, 458 four W’s of, 453 identifying target audience, 454 scheduling, 457–458 selecting promotional tools, 456–457 setting budget, 455–456 specifying objectives, 454 Promotion-related legislation; see Advertising-related legislation Promotion strategy, 42 Chobani, Inc., 22–23 by global companies communication adaptation, 186 dual adaptation, 186 identical message, 185 in introduction stage, 272 Paradise Kitchens, 60–61 cents-off coupons, 61 in-store demonstrations, 61 recipes, 61 Prince Sports, Inc., 244–245 Promotion tools, 456–457 Property damage claims, 95 Prospecting stage cold canvassing, 539–540 leads, 538–539 objectives, 539 qualified prospect, 538 Prospects, 538–539 Protectionism, 166 arguments for, 166 decline of, 166–167 effect on world trade, 166 examples, 167 quotas, 167 tariffs, 166–167 and World Trade Organization, 167 Protocol, 253 incomplete, 254 Psychographics definition, 124 VALS system, 124–125 Psychographic segmentation, consumer markets, 229, 230 Psychological barriers, 278 Publicity, 446 credibility, 446 forms of, 446 indirectly paid dimension, 446 lack of user’s control over, 447 online discussions, 447 for services, 313 Publicity tools, 496 to create visibility, 496 news conferences, 496 news releases, 496 public service announcements, 496 Public policy decisions, effect of price elasticity, 340–341 Public relations, 446 costs, 445 in design of promotion, 457 for mass selling, 444 to minimize negative impact of problems, 496 publicity, 446–447 publicity tools, 496 strengths and weaknesses, 445 tools for, 446 Public service announcements, 313, 496 Public sources of information, 112 Pull strategy, 453 Pulse (burst) schedule, 486 Purchase decision by consumers, 114 evaluative criteria, 113 online consumers, 568–569 in organizational buying, 150, 152 when to buy, 114 from whom to buy, 114 Purchase decision process, 112 by consumers aided by Groupon, 135–137 alternative evaluation, 113–114 information search, 112–113 level of involvement, 115–116 lifestyle motivations, 124–125 male car buyers, 111 postpurchase behavior, 114–115 problem recognition, 112 purchase decision, 114 situational influences, 117 summary of influences on, 118 women car buyers, 110 in organizational buying alternative evaluation, 150, 151 information search, 150, 151 JCPMedia, 138–139 postpurchase behavior, 150, 152 problem recognition, 150, 151 purchase decision, 150, 152 for services, 307–308 Purchase discounts, 378 Purchase frequency, 486 Purchase order, 144 Purchase task, 117 Purchasing power of global consumers, 178, 179 Pure competition, 333, 334 definition, 80 Pure monopoly, 333, 334 definition, 81 government regulation, 81 Push strategy, 452–453 Q Qualified prospect, 538 Quality ISO 14000 standards, 102 organizational goal, 31 poor, 255 price as indicator of, 426 Quality-conscious consumers, 353 Quantitative assessment of salesforce, 551 Quantity, marginal analysis, 342 Quantity discounts, 84, 366 cumulative, 366 noncumulative, 366 Question formats closed-end questions, 205 dichotomous questions, 205 fixed alternative questions Likert scale, 206 semantic differential scale, 205–206 open-ended questions, 205 Question marks, 36–37 Questionnaire data, 198, 202 dichotomous questions, 205 fixed alternative questions, 205–206 idea evaluation methods conventional questionnaires, 203 mail surveys, 203 mall intercept interviews, 206 online surveys, 203–204 personal interview survey, 203 telephone interviews, 203 idea generation methods depth interviews, 203 focus groups, 203 fuzzy front end method, 203 individual interviews, 202 ker61035_sndx_716-740.indd Page 735 11/26/13 5:18 PM f-w-166 /204/MH02017/ker61035_disk1of1/0077861035/ker61035_pagefiles www.freebookslides.com 735 SUBJECT INDEX polling, 220–221 precision in questions closed-end questions, 205 Likert scale, 206 open-ended questions, 205 semantic differential scale, 205–206 Quick response codes, 441 Quick response delivery system, 404 Quotas, 167 in China, 167 in United States, 167 R Racial diversity; see Ethnic diversity Rack jobbers, 434 Radical innovation, 253 Radio advantages and disadvantages, 480 disadvantages for advertising, 481 number of stations, 480 reach of, 481 segmented medium, 480–481 Radio frequency identification tags, 210, 415 Railroads, myopic focus, 30 Rates, 312 Rating, 478 Ratios for evaluating and setting price markdown, 381–382 markup, 380–381 return on investment, 383 stockturn rate, 382–383 Reach, 478 and cost per thousand, 479 of newspapers, 482 of radio, 481 social vs traditional media, 506 of television, 478 Reader’s Digest, 125 Real world–digital world convergence, 521, 522 Rebates, 493 advantages and disadvantages, 490 objectives, 490 Receivers, 442 Recessions, 75 Reciprocity, 146 Recycling, 406 e-waste, 405 products, 79–80 Red tape, 178 Reference groups, 128 Refusal to deal, 399 Region, segmentation by, 229 Regional rollout, 264 Regional shopping centers, 428 Regular distribution, 262 Regulation, 82 Regulatory forces; see also Legal and regulatory aspects advertising-related legislation, 84–85 antitrust legislation, 369–372 deceptive pricing, 371 distribution-related legislation, 84 geographical pricing, 371 influencing Facebook, 64 predatory pricing, 372 price discrimination, 370–371 price fixing, 369–370 pricing-related legislation, 84 product-related legislation, 82–84 promotion-related legislation, 85 for protecting competition, 82 self-regulation, 85–86 trends identified in environmental scan, 67 Reinforcement, 122 Reinforcement advertising, 471 Related and supporting industries, 164 Relationship customers, 311 Relationship marketing, 12 for services, 310–311 Relationship selling, 534 Relative market share, 36 Reliability of services, 308 Reminder advertisements institutional, 471 for products, 470–471 Rent, 324 Replenishment, dependability in, 405 Replenishment time, 404 Requirement contracts, 84 Resale price maintenance, 370 Resale restrictions, 399 Research and development at Apple Inc., 240 and economic espionage, 165 Research and development laboratories, new-product ideas from, 259 Research and development–manufacturing synergies, 592 Research plan determining data collection, 197 identify needed data, 197 specify constraints, 196 Reseller branding, 289 Reseller market, 140 Resource allocation essence of, 589 in strategic marketing process, 587–588 using sales response function example, 586–587 maximizing incremental revenue, 585–586 share points, 587 Resource allocation decisions, 589 Resources, obtaining, 43 Response, 122, 444 Response Magazine, 480 Responsibilities, 43–44 Responsiveness of services, 308 Retail communication atmosphere, 428–429 functional mix of elements, 428 for position and image, 428 shopper marketing, 428–429 Retailers cash discounts for, 367 cooperative advertising, 495 for Dell Inc in India, 160–161 enhancing customer experience, 410 number of, 140 preference for exclusive distribution, 395 relative sales by type, 413 standard markup pricing, 355 supply partnerships, 146–147 sustainable procurement, 147 use of augmented reality, 410–411 Retailer-sponsored cooperatives, 393, 415 Retailing, 412; see also Nonstore retailing changing nature of retail life cycle, 431–432 wheel of retailing, 430–431 distribution density exclusive distribution, 395 intensive distribution, 395 selective distribution, 395 effect of Walmart on, 333 environmental responsibility, 415 flash sales, 422 global economic impact, 413–414 golf equipment, 384–385 growth of online sales, 560 at Mall of America, 437–439 manufacturer-sponsored retail franchise systems, 394 price setting cost of goods sold, 376–379 markdown, 381–382 markup, 380–381 retailer-sponsored cooperatives, 393 service-sponsored retail franchise systems, 394 showrooming, 422 social responsibility, 415 trends in managing customer experience, 433–434 multichannel retailing, 432–433 utilities offered by, 412–413 by warehouse clubs, 585 and wholesaling, 434–435 Retailing mix, 426 communication, 428–429 merchandise category management, 429–430 marketing metrics, 430 pricing, 426–427 store location, 427–428 Retailing strategy retailing mix communication, 428–429 merchandise, 429–430 pricing, 426–427 store location, 427–428 retail positioning matrix breadth of product line, 424–425 examples, 425–426 value added, 425 Retail life cycle, 431 accelerated development, 431, 432 decline stage, 432 early growth, 431, 432 maturity stage, 431–432 Retail outlets cookie cutter stores, 426 forms of ownership contractual systems, 415–416 corporate chains, 414–415 independent retailers, 414 level of service full-service, 417 limited-service, 417 self-service, 416–417 merchandise line breadth of, 418–419 depth of, 417–418 positioning, 424–426 store location, 427–428 Retail pizza business, 578–579 Retail positioning matrix, 424 Retail positioning mix breadth of product line, 424–425 examples, 424–426 value added, 425 Retail pricing discounts, 426 everyday fair pricing, 426 everyday low pricing, 426 and fraudulent returns, 427 and gross margin, 426 maintained markup, 426 markdown, 426 markup, 426 off-price retailing, 427 original markup, 426 shrinkage problem, 426–427 Return on investment, 228, 316, 603 calculating, 383 Return on investment target, 358–359 Returns, 376 fraudulent, 427 Revenue from direct marketing, 460 incremental, 364–365, 585–586 marginal analysis, 342 Revenue growth, 589 Reverse auction, 154–155 Reverse logistics, 406 and green marketing, 405 Reverse product placement, 494 Rich media, 483 Rich site summary, 441, 461, 483 Right to be heard, 96 Right to be informed, 95–96 Right to choose, 96 Right to safety, 95 Rising trend, 282 Risk barriers, 278 ker61035_sndx_716-740.indd Page 736 11/26/13 5:18 PM f-w-166 /204/MH02017/ker61035_disk1of1/0077861035/ker61035_pagefiles www.freebookslides.com 736 SUBJECT INDEX Risks in brand extension, 289 perceived, 121–122 in product line extension, 289 in product purchase, 451 Risk taking, 387 Robinson-Patman Act of 1936, 82 on basing-point pricing, 371 on price differentials, 370–371 on promotional allowances, 371 Routine problem solving, 116 RSS; see Rich site summary Rule of reason in antitrust law, 370 in marketing channel regulation, 399 in price discrimination, 371 Running time, 598 Russia countertrade in, 162 State Heritage Museum, 18 S Safe delivery, 405 Safety, issue in packaging, 292 Safety needs, 119 Sales Callaway Golf, 384 in decline stage, 275 80/20 rule, 231 flash sales, 328 of franchises, 416 in growth stage, 274 impact of coupons, 490 lost from economic espionage, 165 lost to product counterfeiting, 284 in maturity stage, 275 as pricing objective, 330 production by social media, 516 by Vizio, Inc., 350 Sales clerks, 536 Sales engineers, 537 Sales era, 15 Salesforce channel functions, 389 Mary Kay India, 191 organization of customer sales organization, 546–547 determining size of, 547–548 geographical sales organization, 546, 547 key account management, 547 and marketing strategy, 547 preliminary decisions on, 545–546 product sales organization, 547 trained by manufacturers, 495 at Xerox, 556 Salesforce automation, 552–554, 553 communication, 553–554 forms of, 553 technology, 553 Salesforce communication, 553–554 Salesforce compensation combination plan, 550–551 straight commission, 550–551 straight salary, 550–551 at Xerox, 557 Salesforce evaluation behavioral, 551–552 marketing dashboard, 442 quantitative assessments input-related measures, 551 output-related measures, 551 Salesforce management, 531 Salesforce motivation nonmonetary rewards, 551 research results, 550 at Xerox, 557 Salesforce recruitment and selection emotional intelligence, 549–550 job analysis, 549 job description, 549 at Xerox, 557 Salesforce survey forecast, 216 Salesforce technology, 553 Salesforce training, 550 at Xerox, 557 Sales forecast, 215 lost-horse forecast, 215 salesforce survey forecast, 216 survey of buyers’ intentions forecast, 216 Sales forecasting techniques judgments of decision maker, 215 statistical methods linear trend extrapolation, 216 trend extrapolation, 216 surveys of knowledgeable groups, 216 Sales management, 532 Sales management process, 544–554 customer relationship management, 552–554 salesforce automation, 552–554 salesforce evaluation behavioral evaluation, 551–552 quantitative assessments, 551 sales plan formulation account management policies, 548 salesforce organization, 545–548 setting objectives, 545 sales plan implementation, 548–551 motivation and compensation, 550–551 recruitment and selection, 549 training, 550 at Xerox, 556–557 Sales organization, competitive position, 549 Salespeople creating customer value, 533–534 genetic disposition, 535 Sales performance by strategic business units, 33 Sales per square foot, 430 Apple Stores, 429 Sales plan, 545 Sales plan formulation developing account management policies, 548 organization of salesforce, 545–548 setting objectives, 545 Sales professional, 530–531 Sales promotion, 447 advertising support, 447 annual expenditures on, 489 consumer-oriented, 489–494 costs, 445 in design of promotion, 457 examples, 447 for mass selling, 444 in maturity stage, 450 in prepurchase stage, 451 in purchase stage, 451 and push strategy, 452 of services, 313 short-term nature, 447 strengths and weaknesses, 445 trade-oriented, 494–495 Sales quota, 551 Sales representative, 424 Sales response function, 585 annual marketing effort, 586 Sales tests, 488 Same-store sales growth, 430 Apple Stores, 429 Samples, 492 advantages and disadvantages, 490 objectives, 490 Sampling, 197 Satellite museums, 17, 18 Satellite radio, 481 Satellite TV, 468 Savings rate decline, 78 Scheduling of advertising and buyer turnover, 486 continuous schedule, 486 and forgetting rate, 486 and purchase frequency, 486 flighting schedule, 486 marketing program, 598–599 pulse schedule, 486 Scheduling techniques, 44 Scrambled merchandising, 418 convenience for customers, 419 hypermarkets, 418 intertype competition, 419 supercenters, 418 Screening and evaluation, 260 concept tests, 260 external approach, 260 internal approach, 260 Seals of approval, 122 Search property of services, 307–308 Seasonal discounts, 366 Seasonality in promotion scheduling, 458 Secondary data, 198 advantages and disadvantages, 199 external online databases, 200 syndicated panel data, 199 tracking services, 199 U.S Census Bureau, 199 internal marketing input data, 198 marketing outcome data, 198 Secret Sales Pitch (Bullock), 120 Securities and Exchange Commission, 64 Security issue in packaging, 292 for online consumers, 574 Selective comprehension, 120–121 Selective demand, 272 Selective distribution, 395 Selective exposure, 120 Selective perception, 120–121 Selective retention, 121 Selective specialization, 591, 592 Self-actualization need, 119 Self-concept, 119 Self-disclosure, 505–506 Self-expression motivated groups, 125 Self-image, actual vs ideal, 119 Self-liquidating premiums, 491 Self-regulation, 85–86 online retailers, 574 of promotion, 497 Self-service outlets, 416–417 Self-service technologies, 302 Seller/retailer-driven pricing actions, 334–335 Sellers and marketing, power of, 81 value of direct marketing direct orders, 461 lead generation, 461 traffic generation, 461 Selling, 387, 532 international, 540 technology in, 553 Selling agents, 435 Selling expenses, 379 Semantic differential scale, 205–206 Seminar selling, 537 Semiotics, 175 Sender, field of experience, 443 Sensitivity analysis, 209 Sensitivity communication technique, 497 Sentiment, 208 Service blueprint, 309 Service companies, 140 Service continuum, 303 core offerings, 303–304 supplemental services, 304 Service delivery and consumption, changes in, 316 Service failures media monitoring, 310 recovery effort, 309 ker61035_sndx_716-740.indd Page 737 11/26/13 5:18 PM f-w-166 /204/MH02017/ker61035_disk1of1/0077861035/ker61035_pagefiles www.freebookslides.com 737 SUBJECT INDEX Services, 248, 300 assessing quality of assurance, 308 empathy, 308 gap analysis, 308–309 reliability, 308 responsiveness, 308 tangibility, 308 business analysis, 261 classification of, 250 classifying equipment-based, 304 government-sponsored, 307 people-based, 304 for-profit vs nonprofit organizations, 304–306 concierge services, 300–301 credence property, 307 customer contact audit, 309–310 customer experience management, 260 experience property, 307 four I’s of, 301–303 future of changes in delivery and consumption, 316 sustainability, 317 technological factor, 315–316 idle production capacity, 303 improving delivery, 262 in industrial markets, 140 Luggage Club, 301 market testing not feasible for, 263 new-product strategy development, 257 off-peak pricing, 261 percentage of GDP, 300 precise protocol, 253 purchase process, 307–308 relationship marketing, 310–311 search property, 307–308 technology-mediated personalization, 315–316 Ubitus GameCloud, 301 Virgin Galactic, 301 Services marketing, 18 capacity management, 315 cost-plus pricing, 356 customer experience management, 314 internal marketing, 313–314 by Los Angeles Galaxy, 319–321 seven P’s of, 311–315 Service-sponsored retail franchise systems, 394 Service sweethearting, 316 Seven P’s of services marketing, 311 people, 313–314 physical environment, 314 place, 312 price, 312 process, 314–315 product, 311 promotion, 312–313 Sex appeals, 475 Share of market budgeting, 455 Share of voice, 208 Share points, 587 Sharing economy, 298–299 Shelf life, 292 Sherman Antitrust Act of 1890, 82, 84, 93, 369–370, 371, 372, 399 Shift in demand curve, 337 Shopper marketing, 428 Shopping “bots,” 422, 423 Shopping products, 249 Showrooming, 335, 422, 572 Shrinkage, 426–427 Signpost items, 426 Simulated test market, 263 Single-line stores, 417 Single parents, 129 Single-price retailers, 427 Single product vs product line, as pricing constraint, 332 Single-zone pricing, 368 Situational influences, 117 antecedent state, 117 physical surroundings, 117 on purchase decision, 117 purchase task, 117 social surroundings, 117 temporal effects, 117 Situation analysis, 39 Paradise Kitchens company analysis, 57 competitor analysis, 56–57 customer analysis, 57–58 industry analysis, 56 SWOT analysis, 55–56 Size of order or purchase, 144 Skimming pricing, 352 conditions for effectiveness, 352–353 and experience curve pricing, 356–357 for new products, 352 preceded by penetration pricing, 353 Skimming strategy, 272 Skunk Works, 585, 596–597 Slotting fee, 264 Small businesses as competitors, 81 jobs created by, 81 Smaller firms, new-product ideas from, 259 Smartphones, 521 and Facebook, 510 for mobile marketing, 524–525 product ratings, 113 Smart systems definition, 521 for mobile marketing, 523–525 Soccer, 321 Social audit, 103 Social authority, social vs traditional media, 506 Social class, 130–131 companies’ use of, 131 determinants, 131 Social class influences, 130–131 Social entrepreneurs, 26, 27 Social forces, 68 culture, 74–75 demographics, 68–73 influencing Facebook, 64 trends identified in environmental scan, 67 Social marketing, by nonprofit organizations, 306 Social media, 504 blogs, 504 Carmex and LeBron Jones, 519–520 classifying media richness, 505–506 self-disclosure, 505–506 compared to traditional media credibility and social authority, 506 exposure and access, 506 one-way communication, 514 permanence, 506 privacy, 506 reach, 506 time to delivery, 506 training, 506 comparing social networks Facebook, 507–510 LinkedIn, 411–512 Twitter, 511 YouTube, 512–514 connecting with college students, 502–503 consumer-generated media, 504 convergence of real and digital worlds apps, 522–523 databases and algorithms, 522 smartphones, 521 for data mining, 210 for direct-mail and catalog retailing, 421 essential aspects for promotion, 440–441 Greenpeace vs Nestlé, 518–519 lessons for brand managers, 519, 520 for marketing research, 206–208, 219–221 metrics conversation velocity, 208 sentiment, 208 share of voice, 208 mobile marketing, 523–525 monitoring of service failures, 310 Mountain Dew promotion, 465–467 origin of, 504 performance measures linked to inputs or costs, 516–517 linked to outputs or revenues, 517–518 to reach college students, 449 sales production role, 516 social network selection, 515 specialized focus, 518 and strategic marketing process, 514–515 StuffDOT, Inc., use of, 527–529 for Taco Bell campaign, 440–441 use by Chobani, Inc., 4, 22 used by nonprofit organizations, 306 user-generated content, 504 and Web 2.0, 504 Social Media Digital Operations Center, 306 Social mission, Ben & Jerry’s, 24–25 Social needs, 119 Social networks definition, 504 Facebook, 507–510 favorites of college students, 513 launch of StuffDOT using Facebook, 508–510 LinkedIn, 511–512 selecting audience data available, 515 number of users in 2013, 515 recent growth, 515 Twitter, 510 YouTube, 512–514 Social responsibility, 100 at Anheuser-Busch, 90–92 concepts of profit responsibility, 101 societal responsibility, 102–103 stakeholder responsibility, 101–102 and consumer ethics, 104–105 in marketing, 17 organizational goal, 31 as pricing objective, 31 social audit, 103 sustainable development, 103–104 Social shopping options, 422, 423 Social surroundings, 117 Societal culture, 94–95 Societal marketing concept, 17 Societal responsibility cause marketing, 102–103 green marketing, 102 triple-bottom line, 102 Society, benefit of markets for, 19 Sociocultural influences culture, 131 family, 128–130 personal, 126–128 reference groups, 128 social class, 130–131 subcultures, 131–133 Source, 442 Spam, 571 Spam blockers, 204 Spark lines, 33 Special fees, 324–325 Specialization in magazines, 481–482 Specialty discount outlets, 418 Specialty merchandise wholesalers, 434 Specialty outlets, 417–418 Specialty products, 249 Specialty-toy retailers, survival problems, 331 Speed, factor in new-product success, 264–265 Sports marketing, by Los Angeles Galaxy, 319–321 Spreadsheet, for operating statements, 359 Staff positions, 600 Stakeholder responsibility, 101–102 Stakeholders definition, 29 and organizational culture, 30 types of, 101 ker61035_sndx_716-740.indd Page 738 11/26/13 5:18 PM f-w-166 /204/MH02017/ker61035_disk1of1/0077861035/ker61035_pagefiles www.freebookslides.com 738 Standard Industrial Classification system, 142 Standard markup pricing, 355 in movie theaters, 356 pricing, 375 in supermarkets, 355 Standard of living, increasing worldwide, 68 Standard test market, 262–263 Starch test, 488 Stars, 36–37, 45 Start-ups aided by price transparency, 326 Airbnb.com, 298–299 StubHub.com, 322–324 Vizio, Inc., 350–351 Statement of Ethics, American Marketing Association, 98–99 Statistical areas combined, 71 divisions, 71 metropolitan, 71 micropolitan, 71 Statistical forecasting linear trend extrapolation, 216 trend extrapolation, 216 Statistical inference, 197 STAT-USA, 200 Status-conscious consumers, 353 Stereotypes, country-product pairing, 292 Stimulus discrimination, 122 Stimulus generalization, 122 Stimulus-response presentation, 541 Stock keeping units, 250 Stockturn rate, 382–383 Stop Counterfeiting in Manufactured Goods Act of 2006, 284 Store atmosphere/ambience, 428–429 Store location, 427–428 central business district, 428 community centers, 428 power centers, 428 regional shopping centers, 428 strip malls, 428 Storing, 387 Straight commission compensation, 550–551 Straight rebuy, 148–149 Straight salary compensation, 550–551 Strategic alliances, 169 General Mills and Nestlé, 169, 392 Strategic business unit level, 28 Strategic business units business portfolio analysis Apple Inc., 37–38 growth-share matrix, 36–37 market growth rate, 36 relative market share, 36 definition, 28 organization chart, 600 sales performance by, 33 Strategic channel alliances definition, 392 General Mills-Nestlé, 392 Strategic direction current status analysis, 34–35 competencies, 35 customers, 35 growth strategies business portfolio analysis, 35–38 diversification analysis, 38–39 Strategic marketing process, 39 evaluation phase, 44–46 acting on deviations, 45–46 acting on deviations from goals, 602–603 comparing results with plan, 45 identifying deviations from goals, 601 marketing dashboards for, 604–606 marketing metrics for, 604–606 marketing ROI, 603–604 return on investment, 603 SUBJECT INDEX implementation phase, 42–44 action item list, 599 avoiding paralysis by analysis, 596–597 chief marketing officer, 600 communicate goals, 597 defining tasks, responsibilities, and deadlines, 43–44 designing marketing organization, 43 executing marketing program, 44 functional groupings, 600 geographical groupings, 600–601 line positions, 600 market-based groupings, 601 obtaining resources, 43 open communication, 597 organizing for, 599–601 planning activities, 596 problem identification, 596 product groupings, 600 product managers, 601 program champion, 597 reward success, 597–598 staff positions, 600 time-based agenda, 598–599 phases, 587 planning phase balancing value and values, 594 disruptive innovations and long-range plans, 595 generic business strategies, 589–590 global strategies to find synergies, 594 goal setting, 40–41 guidelines, 593 marketing metrics, 588–589 marketing program, 42 market-product focus, 40–41 problems, 593–594 SWOT analysis, 39–40 synergy analysis, 591–592 value-based planning, 594 value-driven strategies, 594 variety of plans, 589 resource allocation, 587–588 and social media, 514–515 Strategic partnerships, Toyota, 108–109 Strategy, 26; see also Marketing strategies clearly defined and focused, 585 of IBM, 48–49 varying by product, 32 Strengths, building on, 40 Strict liability, 293 Strip mall, 428 Strivers, 125 Subbranding, 288 Subcultures, 131 African Americans, 132 Asian Americans, 132–133 Hispanics, 131–132 spending by, 131 Subliminal messages, 120, 121 Subliminal perception, 120, 121 Subsidiaries, 170 Substitutes, 81 Success, rewarding, 597–598 Successful Business Plan (Abrams), 51 Sugar import quotas, 167 Suggestive selling, 542 Super Bowl classic ads, 474 cost of commercials 1990–2013, 473 effectiveness of ads, 474 Super Bowl Ad Meter, 491 Super Bowl commercials, 127 Supermarkets failure fees, 264 hi-lo prices, 369 organized into product groups, 234 slotting fees, 264 standard markup pricing, 355 target return on sales pricing, 358 Supplemental services, 304 Supplier development, 145 Supplier diversity, 145 Suppliers effects of environmental scanning, 66 environmental responsibilities, 415 minority-owned, 144 new-product ideas from, 258 for Trek Bicycle Corporation, 159 women-owned, 144 Supplies, 250 Supply chain, 400 aligned with marketing strategy at Dell Inc., 403 harmonize supply chain with marketing, 403 understand customers, 402 understand supply chain, 402 at Walmart, 403 in auto industry, 400–401 efficient, 403 integrated, 402 logistics management in customer service concept, 404–405 total logistics cost concept, 404 Mary Kay India, 191 responsive, 403 and reverse logistics, 406 Supply chain management at Amazon, 409 definition, 400 information technology in, 400 and logistics management, 401 and marketing strategy, 402–403 reducing order cycle time, 404 for small retailers, 418 Supply chain managers, 401 Supply partnerships, 146 Milsco Manufacturing, 146 for retailers, 146–147 for sustainable procurement, 147 Support products, 248 Surcharges, 324–325 Survey of buyers’ intentions forecast, 216 Survey Research Center, University of Michigan, 76 Surveys of knowledgeable groups buyers’ intentions forecast, 216 salesforce survey forecast, 216 Survival, as pricing objective, 31 Survivors, 125 Sustainability and future of services, 317 Sustainable competitive advantage, Paradise Kitchens, 54 Sustainable development, 103 Sustainable Forestry Initiative, 139 Sustainable procurement, 147 Sweden, advertising regulation, 180 Sweepstakes advantages and disadvantages, 490 legislation on, 492 objectives, 490 types of, 491 SWOT analysis, 39 basis of, 40 Ben & Jerry’s, 41 marketing actions from, 40 in new-product process, 257 Paradise Kitchens, 55–56 Syndicated panel data, 199 Synergies versus cannibalization, 227 marketing global strategies to find, 594 research and development–manufacturing, 592 Synergy analysis, 591 full coverage, 591, 592 market-product concentration, 591, 592 market specialization, 591, 592 product specialization, 591, 592 selective specialization, 591, 592 steps, 591–592 ker61035_sndx_716-740.indd Page 739 11/26/13 5:18 PM f-w-166 /204/MH02017/ker61035_disk1of1/0077861035/ker61035_pagefiles www.freebookslides.com 739 SUBJECT INDEX T Tangibility of services, 308 Target audience for advertising program, 472 for promotional programs, 448 identifying, 454 for marketing plan, 50 for online TV, 469 Target market, 10 advertising to reach, 237 criteria for selection compatibility with organizational objectives, 236 competitive position, 236 cost of reaching segments, 236 expected growth, 236 market size, 236 marketing actions to reach, 236–239 Paradise Kitchens, 59 selection of, 41 of strategic business units, 28 for StuffDOT, 528 Target market coverage density requirements, 394 exclusive distribution, 395 intensive distribution, 395 selective distribution, 395 Target pricing, 354–355 Target profit pricing, 357–358 by Carmex, 375 shortcoming, 358 Target return for profit, 330 Target return-on-investment pricing, 358 Target return-on-sales pricing, 358 Target time, 598 Tariffs, 166 effect on consumer prices, 166–167 Tasks, defining, 43–44 Team selling, 537 cross-functional, 538 Teaser advertising campaigns, 127 Technological advances in automatic vending, 420 impact on marketing, 79–80 influencing Facebook, 64 Technological forces electronic commerce, 80 impact on customer value, 79–80 technology of tomorrow, 78–79 trends identified in environmental scan, 67 Technological innovation, 30 Technology, 78 automation, 345 break-even analysis for, 343–345 changes in TV advertising, 468 in communication, 553–554 for delivery of services, 312 disruptive innovations, 595 electronic commerce, 80 in future of service sector, 315–316 impact of new, 345 impact on customer value, 79–80 Prince Sports, Inc., 244 rapid growth of marketspace, 80 self-service, 302 in selling, 553 Technology-mediated personalization, 315–316 Technology of tomorrow, 78–79 connectivity, 78 green technologies, 78 intelligent data collection, 78 3D technologies, 78 Teenagers, global, 171 Telemarketing, 423 annual sales, 423 business expenditures, 460 inbound, 536 National Do Not Call Registry, 96, 424, 462, 540 outbound, 537 regulation of, 85 response rate, 460 Telephone Consumer Protection Act of 1991, 85, 539 Telephone interviews, 203 Television changes in viewing habits, 478 cost disadvantage, 479 largest advertising medium, 468 national ratings, 200–201 reach, 478 tagging by cable channels, 479 technology changes, 468 wasted coverage, 479 Television advertising/commercials ad skipping, 201 advantages and disadvantages, 480 classic Super Bowl ads, 474 cost of, 477 costs, 479 effectiveness of Super Bowl ads, 474 infomercials, 480 Super Bowl, 127 wasted coverage, 479 Television home shopping celebrity endorsements, 421 largest programs, 421 multiplatform, 421 Temporal effects, 117 Test market controlled, 263 simulated, 263 standard, 262–263 Test-market cities, 262 Test-result database, 459 Test screenings, 193–194 Textile quotas, 167 Theater tests, 486 Thinkers, 125 Third-party logistics providers, 406 Threats, disaster-laden, 40 3D technologies, 78 3D television, 478 Tiffany/Walmart strategy, 227 Time, 125, 508 Time-based agenda, 598 Time-sensitive materialists, 568 Time to delivery, social vs traditional media, 506 Time to market, 264 Time utility, 19 benefit of intermediaries, 387 from marketspace, 561 from retailing, 412 TiVo, 201 Tobacco production, China, 93 Top management, 27 ethical behavior, 98–99 Total cost, 341 in pricing decisions, 328 Total logistics cost, 404 Total revenue, 337–338 and price elasticity, 340 in pricing decisions, 328 Total revenue curve and demand curve, 338–339 diagram, 449 Tracking services, 199 Tracking studies, 194 Trade deficit, 163 Trade discounts, 366–367 Trade feedback effect, 162 Trade-in allowances, 368 Trade magazines, 448 Trademark Law Revision Act, 83 Trademark protection Federal Dilution Act, 84 Lanham Act, 83, 284 Madrid Protocol, 83–84 Trademark Law Revision Act, 83 United States Supreme Court on, 84 Trademarks, 284 licensing, 286 and product counterfeits, 284 Trade name, 283–284 Trade-oriented sales promotions, 494 allowances and discounts, 494–495 cooperative advertising, 495 training distributors’ salesforce, 495 Trade regulations country variations, 180 in free trade agreements, 181 Trade shows, 540 Trading down, 283 Trading up, 282 Traditional auction, 154 Traditional family, 129 Traffic generation, 461 Training salesforce, 550, 557 social vs traditional media, 506 Transactional functions of intermediaries, 386–387 buying, 387 risk sharing, 387 selling, 387 Transactional websites, 575 Transit advertising, 484 Transnational firms, 170 Transparency International, 97 Transportation infrastructure, 177 Transporting, 387 Trend extrapolation, 216 Trend spotting, 219–220 Trial, 272, 454 Trial close, 544 Triple-bottom line, 102 Truck jobbers, 435 Tuition, 312, 324 Twitter, 510 brand exposure, 507 in brand manager strategy, 511 customer communication, 507 number of users April 2013, 515 overview, 511 traffic to website, 507 user characteristics, 507 Tying arrangements, 399 Tying contracts, 84 U Ultimate consumers, 18 Unaided recall, 488 Uncontrollable factors, 10–11 Unethical behavior auto dealers, 90 bribes and kickbacks, 97 in cola war, 96 by consumers, 104–105 copyright infringements, 93, 95 economic espionage, 96–97 health care services, 90 perceived in business culture, 95 theft of intellectual property, 95 tobacco import restrictions, China, 90 Uniform delivered pricing, 368 basing-point pricing, 369 FOB buyer’s location, 368 FOB with freight-allowed pricing, 369 multiple-zone pricing, 369 single-zone pricing, 368 United Kingdom Direct Marketing Association, 462 law on product placement, 494 United Nations, 68, 142 United States baby bust period, 69 changing attitudes and roles for men and women, 73–74 changing values, 74–75 ker61035_sndx_716-740.indd Page 740 11/26/13 5:18 PM f-w-166 /204/MH02017/ker61035_disk1of1/0077861035/ker61035_pagefiles www.freebookslides.com 740 SUBJECT INDEX United States—Cont consumer income, 76–78 echo-boom, 70 exports, 162–163 franchise sales, 416 generational cohorts, 69–70 households, 70 Index of Consumer Sentiment 1960–2012, 76 leader in GDP, 162 macroeconomic conditions, 75–76 major trading partners, 163 and North American Free Trade Agreement, 169 population shifts, 70–71 population statistics, 68–69 racial and ethnic diversity, 71–73 revenues of nonprofit organizations, 305 savings rate decline, 78 statistical areas, 71 sugar import quotas, 167 supercenters, 418 textile quotas, 167 top five franchises, 416 trade deficit, 163 trade dispute with Mexico, 187 United States Army, 119, 471, 472 United States Census Bureau, 26, 68, 69, 70, 71, 76 American Community Survey, 199 Census 2010, 199 Economic Census, 199 United States Green Retail Association, 415 United States National Parks, 109 United States Navy, 597 United States Patent and Trademark Office, 284, 287 United States Supreme Court on health service fees, 93 on trademarks, 84 Unit variable cost, 341 Unit volume, as pricing objective, 31 Universities, new-product ideas from, 259 University of Florida, 270 Unreasonable restraint of trade, 370 Unskilled labor, 304 Unsought products, 249 Urgency close, 544 Usage barriers, 278 Usage instructions, 122 Usage rate, 230 segmentation by, 230 segmentation of organizational markets, 233 USA.gov, 200 User-generated content, 504 Users, in buying centers, 148 Utilitarianism, 100 Utility, 19 V VALS system and motivation, 124–125 on purchase decision, 125 purpose, 124 Value, 326–327 assessing, 113–114 buying, 114 perception of, 114 price as indicator of, 326–327 realizing, 114–115 seeking, 112–113 and vision, 350–351 Value added by multichannel marketing, 391 in retail positioning matrix, 425–426 Value analysis, 151 Value barriers, 278 Value-based planning, 594 Value consciousness, 75 Value-driven strategies, 594 Value pricing, 327, 369 Values, 173 in attitude formation, 123 changing over time consumption orientation, 75 environmental issues, 74 sustainability, 74 cultural, 173–174 societal, 95 at Toyota, 107 Variable costs, 341 in break-even analysis, 344 for manufacturers, 342 Variety, buyer requirement, 396 V-commerce, 419 Vendor-managed inventory, 405 Vendors; see Suppliers Vertical channel conflict from disintermediation, 397–398 from distribution of profit margins, 398 inattention to products, 398 Vertical integration, legality of, 399 Vertical marketing systems, 392 administered systems, 394 contractual systems, 393–394 corporate systems, 392–393 Vertical price fixing, 370 Video games, 522–523 Viral marketing, 572 Visibility, publicity to create, 496 Vision, 29 at IBM, 48–49 at StuffDOT, 527 and value, 350–351 W Wall Street Journal, 328 Walmart/Aldi strategy, 227 Wants vs needs, 10 Warehouse clubs, 417, 431, 585 description, 427 Warranty, 122, 293 Wasted coverage, 479 Water recycling, 92 Weakness, correcting, 40 Web communities, 571 Website communications, 580 Websites blogs, 571 collecting personal information, 95–96 commerce, 565 communication, 565 community, 565 connection, 564–565 content, 564, 580 context, 564 cookies, 573 customization, 564, 580 marketing dashboard for stickiness, 566 multilingual, 558 promotional, 575–576 transactional, 575 Website traffic sources, 33 Website visits by state, 33 Web 2.0, 504 Wheel of retailing, 430 discount stores, 431 fast-food industry, 430–431 Whistle-blowers, 99 Wholesalers number of, 140 price policy, 364 risk sharing by, 387 sustainable procurement, 147 Wholesaler-sponsored voluntary chains, 393, 415 Wholesaling agents, 435 brokers, 435 food brokers, 435 manufacturer’s branch office, 435 manufacturer’s sales office, 435 merchandise wholesalers, 434–435 Wiki, 504 Women African American consumers, 132 as car buyers, 110 changing attitudes and roles, 73–74 of Generation Y, 73–74 new car prices, 363 Women-owned vendors, 144 Women’s Business Enterprise Program, AT&T, 145 Word-of-mouth advertising, 127 buzz, 127, 511, 572 and BzzAgent, 127 Chobani, Inc., 2–3, 22 negative information, 128 occurrences, 127 online forums, 128 teaser advertising campaigns, 127 Working conditions, offshore manufacturing, 104 Workload method, 547–548 World population current and projected, 68 global income levels, 68 per capita income, 68 shifting age structure, 68 standard of living, 68 World trade, 141 balance of trade, 163 barter transactions, 324 competitive advantage of nations, 163–165 countertrade, 162 currency exchange rates, 179–180 dark side of competitive advantage, 165 decline of protectionism, 166–167 dollar value of, 162 dollar volume for services, 300 dumping, 187 and economic integration, 167–169 exporting, 181–182 flows of, 162–163 global competition in, 169–172 global perspective, 162 leading exporters, 162 leading importers, 162 and political stability, 180 stimulated by income growth, 179 trade feedback effect, 162 trade regulations, 180–181 United States perspective, 162–163 and World Trade Organization, 167 World Trade Organization, 167, 300 World Wide Web, 504 Y Year-to-date targets, 33 Yellow Pages, 473 advantages and disadvantages, 480 environmental impact, 482–483 proliferation of directories, 482 reach of, 482 Yield, revenue in airline industry, 316 Yield management pricing, 355 form of dynamic pricing, 362 Young married couples, 129 Young singles, 129 YouTube, 512 audience size, 512 brand exposure, 507 in brand manager strategy, 512–514 customer communication, 507 number of users April 2013, 515 overview, 512 traffic to website, 507 user characteristics, 507 Z Zero TV households, 478 www.freebookslides.com ... teach you marketing concepts, often by having you aactually “do marketing? ??? ?by putting you in the shoes of a marketing manager facing actual marketing decisions The book also shows marketing? ??s... the Strategic Marketing Process 588 The Use of Marketing Metrics in Marketing Planning 588 The Variety of Marketing Plans 589 Marketing Planning Frameworks: The Search for Growth 589 Marketing Matters:... Converting Marketing Research Results into Actions 194 The Role of Marketing Research 194 What Is Marketing Research? 194 The Challenges in Doing Good Marketing Research 194 Five-Step Marketing