PRINCIPLES OF MARKETING EIGHTH EUROPE AN EDITION PHILIP KOTLER GARY ARMSTRONG LLOYD C HARRIS HONGWEI HE PRINCIPLES OF MARKETING A01 Principles of Marketing 69566.indd 16/10/2019 15:23 At Pearson, we have a simple mission: to help people make more of their lives through learning We combine innovative learning technology with trusted content and educational expertise to provide engaging and effective learning experiences that serve people wherever and whenever they are learning From classroom to boardroom, our curriculum materials, digital learning tools and testing programmes help to educate millions of people worldwide – more than any other private enterprise Every day our work helps learning flourish, and wherever learning flourishes, so people To learn more, please visit us at www.pearson.com/uk A01 Principles of Marketing 69566.indd 16/10/2019 15:23 PRINCIPLES OF MARKETING EIGHTH EUROPE AN EDITION Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney Dubai • Singapore • Hong Kong • Tokyo • Seoul • Taipei • New Delhi Cape Town • São Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan A01 Principles of Marketing 69566.indd PHILIP KOTLER GARY ARMSTRONG LLOYD C HARRIS HONGWEI HE 16/10/2019 15:23 PEARSON EDUCATION LIMITED KAO Two KAO Park Harlow CM17 9SR United Kingdom Tel: +44 (0)1279 623000 Web: www.pearson.com/uk Authorised adaptation from the United States edition, entitled Principles of Marketing, 17th Edition, ISBN 9780134492513 by Kotler, Philip T.; Armstrong, Gary, published by Pearson Education, Inc, Copyright © 2018 All rights reserved No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage retrieval system, without permission from Pearson Education, Inc Eighth adaptation edition published by PEARSON EDUCATION LTD, Copyright © 2020 First European edition published 1996 by Prentice Hall Europe (print) Second European edition published 1999 (print) Third European edition published 2001 by Pearson Education (print) Fourth European edition published 2005 (print) Fifth European edition published 2008 (print) Sixth European edition published 2013 (print and electronic) Seventh European edition published 2017 (print and electronic) Eight European edition published 2020 (print and electronic) © Prentice Hall Europe 1996, 1999 (print) © Pearson Education Limited 2001, 2005, 2008 (print) © Pearson Education Limited 2013, 2017, 2020 (print and electronic) The rights of Philip Kotler, Gary Armstrong, Lloyd C Harris and Hongwei He to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988 The print publication is protected by copyright Prior to any prohibited reproduction, storage in a retrieval system, distribution or transmission in any form or by any means, electronic, mechanical, recording or otherwise, permission should be obtained from the publisher or, where applicable, a licence permitting restricted copying in the United Kingdom should be obtained from the Copyright Licensing Agency Ltd, Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN The ePublication is protected by copyright and must not be copied, reproduced, transferred, distributed, leased, licensed or publicly performed or used in any way except as specifically permitted in writing by the publishers, as allowed under the terms and conditions under which it was purchased, or as strictly permitted by applicable copyright law Any unauthorised distribution or use of this text may be a direct infringement of the authors’ and the publisher’s rights and those responsible may be liable in law accordingly All trademarks used herein are the property of their respective owners The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners The screenshots in this book are reprinted by permission of Microsoft Corporation Pearson Education is not responsible for the content of third-party internet sites ISBN: 978-1-292-26956-6 (print) 978-1-292-26960-3 (PDF) 978-1-292-26961-0 (ePub) British Library Cataloguing-in-Publication Data A catalogue record for the print edition is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Kotler, Philip, author | Armstrong, Gary (Gary M.), author | Harris, Lloyd C., author Title: Principles of marketing / Philip Kotler, Gary Armstrong, Lloyd C Harris, Hongwei He Description: Eighth European Edition | Hoboken : Pearson, 2019 | Revised edition of Principles of marketing, [2017] | Includes bibliographical references and index Identifiers: LCCN 2019035568 | ISBN 9781292269566 (paperback) | ISBN 9781292269603 | ISBN 9781292269610 (epub) Subjects: LCSH: Marketing Classification: LCC HF5415 K636 2019b | DDC 658.8—dc23 LC record available at https://lccn.loc.gov/2019035568 10 23 22 21 20 19 Front cover image: stilllifephotographer/Stone/Getty Images Print edition typeset in 9/12 SST by SPi-Global Print edition printed and bound in Slovakia by Neografia NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION A01 Principles of Marketing 69566.indd 16/10/2019 15:23 Brief contents Preface About the authors Acknowledgements xvi xx xxii Part Defining marketing and the marketing process Marketing: creating customer value and engagement Company and marketing strategy: partnering to build customer engagement, value and relationships 38 Part Developing new products and managing the product life cycle 268 10 Pricing: understanding and capturing customer value 300 11 Pricing strategies: additional considerations 322 12 Marketing channels: delivering customer value 348 13 Retailing and wholesaling 384 14 Engaging consumers and communicating customer value: integrated marketing communications strategy 418 15 Advertising and public relations 446 16 Personal selling and sales promotion 480 17 Direct, online, social media and mobile marketing 514 Part Understanding the marketplace and consumers Extending marketing Analysing the marketing environment Managing marketing information to gain customer insights 106 Consumer markets and buyer behaviour 140 Business markets and business buyer behaviour 172 68 Part Designing a customer value-driven strategy and mix Customer-driven marketing strategy: creating value for target customers 196 Products, services and brands: building customer value 230 18 Creating competitive advantage 550 19 The global marketplace 576 20 Social responsibility and ethics 608 Appendix 1: Marketing plan Appendix 2: Marketing by numbers Glossary Index 637 648 666 678 v A01 Principles of Marketing 69566.indd 16/10/2019 15:23 Contents Preface About the authors Acknowledgements xvi xx xxii Part Defining marketing and the marketing process Marketing: creating customer value and engagement Chapter preview Learning outcomes What is marketing? Marketing defined The marketing process Understanding the marketplace and customer needs Customer needs, wants and demands Market offerings – products, services and experiences Customer value and satisfaction Exchanges and relationships Markets Designing a customer value-driven marketing strategy and plan Selecting customers to serve Choosing a value proposition Marketing management orientations Preparing an integrated marketing plan and programme Building customer relationships Customer relationship management Partner relationship management Capturing value from customers Creating customer loyalty and retention 2 6 7 9 10 10 10 11 14 14 14 19 20 20 Growing share of customer Building customer equity The changing marketing landscape The digital age: online, mobile and social media marketing Social media marketing Mobile marketing The changing economic environment The growth of not-for-profit marketing Rapid globalisation Sustainable marketing – the call for more environmental and social responsibility So, what is marketing? Pulling it all together Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: The ALS Ice Bucket Challenge Marketing ethics: is Big Brother watching? Marketing by numbers: what’s a customer worth? Video case: Eskimo Joe’s References Company case: Argos: creating customer value amid change and turbulence Company and marketing strategy: partnering to build customer engagement, value and relationships Chapter preview Learning outcomes Company-wide strategic planning: defining marketing’s role Defining a market-oriented mission Setting company objectives and goals Designing the business portfolio 20 21 23 23 24 24 25 26 27 27 28 30 31 32 32 32 32 32 32 33 33 33 35 38 38 38 41 41 42 43 vi A01 Principles of Marketing 69566.indd 16/10/2019 15:23 Contents Planning marketing: partnering to build customer relationships Partnering with other company departments Partnering with others in the marketing system Marketing strategy and the marketing mix Customer value-driven marketing strategy Developing an integrated marketing mix Managing the marketing effort Marketing analysis Marketing planning Marketing implementation Marketing department organisation Marketing control Measuring and managing marketing return on investment Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: Google’s (Alphabet’s) mission Marketing ethics: creating value or distracting consumers? Marketing by numbers: profitability Video case: Konica References Company case: LEGO: one more brick in the wall? 60 Publics Customers The macroenvironment The demographic environment Geographic shifts in population The economic environment The natural environment The technological environment The political and social environment The cultural environment Responding to the marketing environment Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: sharing economy Marketing ethics: how young is too young? Marketing by numbers: tiny markets References Company case: Fitbit: riding the fitness wave to glory 102 60 61 62 62 Managing marketing information to gain customer insights 106 47 47 48 49 49 51 53 53 54 54 56 56 57 58 59 60 60 60 60 63 Part Understanding the marketplace and consumers Analysing the marketing environment 68 Chapter preview Learning outcomes The microenvironment The company Suppliers Marketing intermediaries Competitors 68 68 71 71 71 72 73 Chapter preview Learning outcomes Marketing information and customer insights Marketing information and today’s ‘big data’ Managing marketing information Assessing marketing information needs Developing marketing information Internal data Competitive marketing intelligence Marketing research Defining the problem and research objectives Developing the research plan Gathering secondary data Primary data collection Implementing the research plan Interpreting and reporting the findings 74 74 75 75 81 85 87 90 91 93 96 97 97 98 98 98 98 98 98 99 99 106 106 109 109 110 110 111 111 112 113 114 114 115 116 124 125 vii A01 Principles of Marketing 69566.indd 16/10/2019 15:23 www.freebookslides.com Contents Analysing and using marketing information Customer relationship management (CRM) Big data and marketing analytics Distributing and using marketing information Other marketing information considerations Marketing research in small businesses and non-profit organisations International marketing research Public policy and ethics in marketing research Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: the trail you leave behind Marketing ethics: metadata Marketing by numbers: the value of information Video case: Nielsen References Company case: Holland & Barrett: choosing the good life! by Dr Eleri Rosier, Cardiff University 125 125 126 127 128 128 129 130 132 133 133 133 134 134 134 134 134 135 135 137 Consumer markets and buyer behaviour 140 Chapter preview Learning outcomes Model of consumer behaviour Characteristics affecting consumer behaviour Cultural factors Social factors Personal factors Psychological factors Types of buying decision behaviour Complex buying behaviour Dissonance-reducing buying behaviour Habitual buying behaviour Variety-seeking buying behaviour The buyer decision process Need recognition Information search Evaluation of alternatives Purchase decision Post-purchase behaviour 140 140 143 144 144 148 151 154 157 157 158 158 159 159 160 160 161 161 161 The buyer decision process for new products Stages in the adoption process Individual differences in innovativeness Influence of product characteristics on rate of adoption Learning outcomes review Navigating the key terms Discussion and critical thinking Discussion the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: digital influencer credibility Marketing ethics: ultimate water Marketing by numbers: evaluating alternatives Video case: IMG Worldwide References Company case: Porsche: guarding the old while bringing in the new Business markets and business buyer behaviour Chapter preview Learning outcomes Business markets Market structure and demand Nature of the buying unit Types of decisions and the decision process Business buyer behaviour Major types of buying situations Participants in the business buying process Major influences on business buyers The business buying process Engaging business buyers with digital and social marketing E-procurement and online purchasing Business-to-business digital and social media marketing Institutional and government markets Institutional markets Government markets Learning outcomes review Navigating the key terms 162 162 163 163 164 165 165 165 166 166 166 166 167 167 167 169 172 172 172 175 175 176 176 177 177 178 179 181 183 183 184 185 185 186 187 188 viii A01 Principles of Marketing 69566.indd 16/10/2019 15:23 Contents Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: e-procurement and mobile procurement Marketing ethics: commercial bribery Marketing by numbers: salespeople Video case: Eaton References Company case: Procter & Gamble: treating business customers as strategic partners 188 188 189 189 189 189 190 190 190 191 Part Designing a customer value-driven strategy and mix Customer-driven marketing strategy: 196 creating value for target customers Chapter preview Learning outcomes Customer-driven marketing strategy Market segmentation Segmenting consumer markets Segmenting business markets Segmenting international markets Requirements for effective segmentation Market targeting Evaluating market segments Selecting target market segments Differentiation and positioning Positioning maps Choosing a differentiation and positioning strategy Communicating and delivering the chosen position Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: get your Groupon Marketing ethics: unrealistic bodies Marketing by numbers: USAA 196 196 199 200 200 205 206 207 207 207 208 215 215 216 221 222 223 223 223 223 224 224 224 224 References Company case: Volvo cars 225 226 Products, services and brands: building customer value 230 Chapter preview Learning outcomes What is a product? Products, services and experiences Levels of product and services Product and service classifications Product and service decisions Individual product and service decisions Product line decisions Product mix decisions Services marketing The nature and characteristics of a service Marketing strategies for service firms Branding strategy: building strong brands Brand equity and brand value Building strong brands Managing brands Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: feeding pets from your smartphone Marketing ethics: geographical indication Marketing by numbers: Pop-Tarts Gone Nutty! References Company case: Telenor Health and Tonic digital health services by Ilma Nur Chowdhury, Alliance Manchester Business School, The University of Manchester 230 230 233 233 234 235 238 238 244 245 246 246 247 251 251 252 259 259 260 261 261 261 261 261 261 262 262 264 Developing new products and managing the product life cycle 268 Chapter preview Learning outcomes New product development strategy 268 268 271 ix A01 Principles of Marketing 69566.indd 16/10/2019 15:23 www.freebookslides.com Glossary Social class—Relatively permanent and ordered divisions in a society whose members share similar values, interests and behaviours Social marketing—The use of traditional business marketing concepts and tools to encourage behaviours that will create individual and societal well-being Social media—Independent and commercial online social networks where people congregate to socialise and share messages, opinions, pictures, videos and other content Social selling—Using online, mobile and social media to engage customers, build stronger customer relationships and augment sales performance Societal marketing—A principle of sustainable marketing that holds a company should make marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-run interests and society’s long-run interests Societal marketing concept—The idea that a company’s marketing decisions should consider consumers’ wants, the company’s requirements, and the long-term interests of consumers and society Spam—Unsolicited, unwanted commercial e-mail messages Speciality product—A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort Speciality store—A retail store that carries a narrow product line with a deep assortment within that line Standardised global marketing—A global marketing strategy that basically uses the same marketing strategy and mix in all of the company’s international markets Store brand (or private brand)—A brand created and owned by a reseller of a product or service Straight product extension—Marketing a product in a foreign market without making any changes to the product Straight rebuy—A business buying situation in which the buyer routinely reorders something without any modifications Strategic group—A group of firms in an industry following the same or a similar strategy SWOT analysis—An overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O) and threats (T) Strategic planning—The process of developing and maintaining a strategic fit between the organisation’s goals and capabilities and its changing marketing opportunities Systems selling (or solutions selling)—Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation Strengths—Strengths are internal capabilities that can help a company reach its objectives Target costing—Pricing that starts with an ideal selling price, then targets costs that will ensure that the price is met Style—A basic and distinctive mode of expression Target market—A set of buyers who share common needs or characteristics that a company decides to serve Subculture—A group of people with shared value systems based on common life experiences and situations Supermarket—A large, low-cost, low-margin, high-volume, self-service store that carries a wide variety of grocery and household products Superstore—A store much larger than a regular supermarket that offers a large assortment of routinely purchased food products, non-food items and services S u p p l i e r d e v e l o p m e n t— Sy s te m atic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others Supplier search—The stage of the business buying process in which the buyer tries to find the best vendors Team selling—Using teams of people from sales, marketing, engineering, finance, technical support and even upper management to service large, complex accounts Team-based new product development— New product development in which various company departments work closely together, overlapping the steps in the product development process to save time and increase effectiveness Technological environment—Forces that create new technologies, creating new product and market opportunities Telemarketing—Using the telephone to sell directly to customers Telephone marketing—Using the telephone to sell directly to customers Supplier selection—The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers Territorial sales force structure—A sales force organisation that assigns each salesperson to an exclusive geographic territory in which that salesperson sells the company’s full line Supply chain management—Managing upstream and downstream value-added flows of materials, final goods and related information among suppliers, the company, resellers and final consumers Test marketing—The stage of new product development in which the product and its proposed marketing programme are tested in realistic market settings Survey research—Gathering primary data by asking people questions about their knowledge, attitudes, preferences and buying behaviour Third-party logistics (3PL) provider—An independent logistics provider that performs any or all of the functions required to get a client’s product to market Sustainable marketing—Socially and environmentally responsible marketing that meets the present needs of consumers and businesses while also preserving or enhancing the ability of future generations to meet their needs Threats—Threats are current or emerging external elements that could potentially challenge a company’s performance Total costs—The sum of the fixed and variable costs for any given level of production 676 Z03 Principles of Marketing 69566.indd 676 03/10/2019 19:27 www.freebookslides.com Glossary Total market demand—The total volume that would be bought by a defined consumer group, in a defined geographic area, in a defined time period, in a defined marketing environment, under a defined level and mix of industry marketing effort Total market strategy—Integrating themes and cross-cultural perspectives within a brand’s mainstream marketing, appealing to consumer similarities across subcultural segments, rather than differences Trade promotions—Sales promotion tools used to persuade resellers to carry a brand, give it shelf space and promote it in advertising Undifferentiated (mass) marketing—A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer Uniform-delivered pricing—A geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location Unit contribution—The amount that each unit contributes to covering fixed costs – the difference between price and variable costs Unsought product—A consumer product that the consumer either does not know about or knows about but does not normally consider buying Users—Members of the buying organisation who will actually use the purchased good or service Value chain—The series of internal departments that carry out value-creating activities to design, produce, market, deliver and support a firm’s products Value delivery network—A network composed of the company, suppliers, distributors and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value Value proposition—The full positioning of a brand – the full mix of benefits on which it is positioned Va l u e - a d d ed p r i c i n g — A t ta c h i n g value-added features and services to differentiate a company’s offers and charging higher prices Value-based pricing—Offering just the right combination of quality and good service at a fair price Variable costs—Costs that vary directly with the level of production Variety-seeking buying behaviour—Consumer buying behaviour characterised by low consumer involvement but significant perceived brand differences Vertical marketing system (VMS)—A channel structure in which producers, wholesalers and retailers act as a unified system One channel member owns the others, has contracts with them, or has so much power that they all cooperate Viral marketing—The digital version of word-of-mouth marketing: videos, ads and other marketing content that is so infectious that customers will seek it out or pass it along to friends Wants—The form human needs take as they are shaped by culture and individual personality Warehouse club—An off-price retailer that sells a limited selection of brand-name grocery items, appliances, clothing and other goods at deep discounts to members who pay annual membership fees Weaknesses—Weaknesses are internal elements that may interfere with a company’s ability to achieve its objectives Wheel-of-retailing concept—A concept that states that new types of retailers usually begin as low- margin, low-price, low-status operations but later evolve into higher-priced, higher-service operations, eventually becoming like the conventional retailers they replaced Whole-channel view—Designing international channels that take into account the entire global supply chain and marketing channel, forging an effective global value delivery network Wholesaler—A firm engaged primarily in wholesaling activities Wholesaling—All the activities involved in selling goods and services to those buying for resale or business use Word-of-mouth influence—The impact of the personal words and recommendations of trusted friends, family, associates and other consumers on buying behaviour Workload method—An approach to determining sales force size based on the workload required and the time available for selling Zone pricing—A geographical pricing strategy in which the company sets up two or more zones All customers within a zone pay the same total price; the more distant the zone, the higher the price 677 Z03 Principles of Marketing 69566.indd 677 03/10/2019 19:27 www.freebookslides.com Index 3M 13, 272, 287 7-Eleven 594 Abercrombie & Fitch 141, 154, 563 Academy of Marketing 132 Accenture 181 acceptability 53 accessibility 53 Accessorize 395 accessory equipment 236 accounting software 279, 326 ACORN and market segmentation 205 acquisition 619 action programmes 666 actual products 234–235 see also product Acxiom 152 adapted global marketing 593, 666 Adidas 84, 120 Own the Game 153 sustainability 622 Take It 524 value delivery network 351–352 waste reduction 622 and women 202 administered VMSs 358, 666 adoption process 162–164, 666 advertainment 456–467 advertising 421, 434, 450–479, 666 agencies 468, 666 budget 454–455, 666 media 463–467, 666 objectives 450–454, 666 option icon 539 professionals view of mature consumers 146 spending 422 strategy 455, 666 Advertising Standards Authority 111 Aesclyptos 450 affordability 53 affordable method 432, 666 Africa 76, 583–584 AG, neuromarketing 124 age and buying 152 and life-cycle segmentation 201, 666 structure of the world population 75–79 agent 666 AGIT Global 325 AIDA framework 428 AIO dimensions 153 Air France 17 Airbus 483 airfreight 373 airtruck 373 Alcatel 178 Aldi 10, 16 cost and quality 220–221 economic downturn 85 market share 202 marketers role 47 positioning 395 Alexa 69 Alliance Boots 405 see also Boots allowances 329, 666 Allpe, disabled consumers 84 Allstate 84 Allure (women’s magazine) 120 Alpha Romeo 51–52 AlphaGo 69 ALS Foundation 424–425 alternative evaluation 161, 666 Amazon 16, 515–516 competitive intelligence 112 delivery 625–626 direct channels 217 Echo 69 free book shipping 340 fulfilment centres 371 green retailing 404 Kindle 220, 311–312, 339, 361 online only 352 packaging 241–242 purchases database 131 share of customer 20–21 video 361 American brands globally 586–588 see also USA American Marketing Association 132 Android Friends Furever 524 market share 619 see also Google Anthropologie 533 antitrust concerns 619–620 Anytime Fitness 396 AOL, and EASA 111 Apple 561 co-branding 257 commercialisation 278 comparative advertising 452–454 international pricing 334 iPad 163 iPhone 146, 153, 163 iPod 163 loyalty 204–205 music 352 patriotism 95 premium pricing 323–324 retail stores 233–234 approach 666 Argos 35–37 Art of Shaving 256 artificial intelligence 69–70 Asda/Walmart bloggers 149 franchises 359 Retail Link system 110 why pay more 219 see also Walmart ASICS 477–479 ASOS 24, 547–548 atmospheres 430–431 AT&T The Innovation Pipeline (TIP) 272 retail technology 403 attitudes 157, 666 of others 161 attraction 17 Audi Commander 428–429 digital showroom 396 audience 427 augmented reality 351 Aura (Telefónica) 70 Australia, tourism 237 Averdiek, James Avon 363 awareness 53 Azure 552 B-to-B digital and social media marketing 184–185, 667 baby boomers 76–77, 666 see also generation X; generation Z; millennials bait-and-switch advertising 437 Bangladesh, Danone 314 Banks, Azealia 24 banks, global services 291 Barbie 285 barnacles 22–23 Barnes & Noble 361–362 barter 584 base-point pricing 666 battle of the brands 255 Baumgartner, Felix 232 beacon technology 403 Beckham, David 217 beer 605–606 678 Z04 Principles of Marketing 69566.indd 678 03/10/2019 19:29 www.freebookslides.com Index behavioural segmentation 203, 666 behavioural targeting 121–122, 666 beliefs 157, 666 Bell, Joshua 240 Ben & Jerry’s 28, 501 benchmarking 555, 666 benefit segmentation 204, 666 Bennett, Omar 211 Bermuda Tourism Authority 150 Best Buy 333 Bezos, Jeff 327 Bharti Airtel 174 Bibbentuckers dry cleaning 128 Bickley, Matt 142 big data 109, 666 biofuels 89–90 Birdpost 24 Birdpost.com 527 Bizrate, online surveys 131 blanket contracts 183 Blockbuster 360–361 blogs 524, 666 blue collar workers 151 blue-ocean strategy 558 Bluewater 399 Blumenthal, Neil 93 B&M 398 BMW 11, 51 Car Club 17 franchise system 358 market share 21 neuromarketing 124 product lines 245 Boden 533 Boeing 187, 483 Bonobos 532 Book Stacks Unlimited 565 Boots Advantage Card 500 no cigarettes 366 see also Alliance Boots Borders 361 Bosch fighter brand 338 mission 41–42 monitoring online activity 110 Bose 217, 306 Boston Consulting Group (BCG) 44–46 bottom of the pyramid see poor people brand 240, 666 development 257–259 equity 251–252, 666 extensions 257–258, 666 integrations 457–459 management 259 personality 154 registration 254 value 252, 666 brand buzz 17 brand community website 521, 666 brand strategy 251–259 BrandAsset Valuator 252 Brazil 85, 129 break-even analysis 666 break-even price 666 break-even pricing 309, 666 break-even volume 309–310 Breare, Robert 400 Breitling 364 Brexit 582 bribery 438, 628–629 BRIC countries 85 British Airways 56 British Gas 19 British Petroleum Company (BP) 357 British Telecom (BT) 72 broker 667 Brompton bicycles 283 budgets 432–433, 667 Burberry 83, 90 Burger King 51 branding 217 franchise system 358 Peace Day 471 Burk, Ian 116 business analysis 277, 667 business buyer behaviour 175, 667 business buying process 175–185, 667 problem recognition 181 general need description 181–182 product specification 182 supplier search 182 proposal solicitation 182 supplier selection 182 order-routine specification 182–183 performance review 183 participants 178–179 business markets 75, 175–177 segmentation 205–206 structure and demand 175–176 business portfolio 43, 667 business promotions 504, 667 business services 236 business-to-business (B-to-B) marketers 175 business-to-business (B-to-B) online marketing 667 business-to-consumer (B-to-C) online marketing 667 butanol 327–328 butterflies 22 buyer behaviour bargaining power 208 see also business buyer behaviour; consumer buyer behaviour buyer decision process 159–161 buyer-readiness stages 427, 667 buyers 178, 667 buyers’ rights 620 buying centre 178–179, 667 buying decision behaviour 157–159 buying situations 177–178 buzz marketing 148, 430, 667 by-product pricing 327–328, 667 Byerly, Robert 128 Cablecom, churn rate 127 CACI, ACORN 205 Cadbury Dairy Milk 459–460 Easter 203 India 107 price increases 336 Cadillac 21, 216 CafeMom 24, 527 Cairo 84 Campaign for Real Ale, bloggers 149 Cancer Research UK 469–470 cannibalisation 667 capital items 236 captive-product pricing 327, 667 car ownership 617–618 card charges 340–341 Carhartt, product development 277 caring capitalism 28, 92 Carrefour 86, 291, 561–562 Cartier 87 cash cows 44 catalogue marketing 532, 667 category killer 390, 667 Caterpillar 367 Cath Kidson 319–321 causal research 114, 667 cause-related marketing 92–93 cautionary tales advertising professionals view of mature consumers 146 aluminium pods 198–199 Apple 95 bad word of mouth 162 British Gas 19 captive product pricing 327 co-branding 257 Coca Cola 218 comparative advertising 452 concept testing 275 deceptive pricing 340 Dell 364 digital data 111 e-procurement and erosion of relationships 184 Evian 258 fighter brands 338 Gap 394 garden gnomes 460 GM 290 Heinz 258 Hooters Air 258 John Deere 360 local marketing 212 logos 243 market penetration pricing 326 marketing strategy 213–214 Mattel 285 McDonald’s 19, 257, 356 message source 431 misuse of research 131–132 more-for-more positioning 219 new products 271 offending ads 585 organisational loyalty 94 price fixing 339 679 Z04 Principles of Marketing 69566.indd 679 03/10/2019 19:29 www.freebookslides.com Index cautionary tales (continued) product liability 290 promotional pricing 331 runners 477–479 Sea World 528 segmented pricing 329 service quality 251 Starbucks 19 supply chain weaknesses 369 technology 91 Tiffany 336 Toyota 290 Unilever 258 Wall Street bankers 94 Central American Free Trade Agreement (CAFTA-DR) 582 Centre for a New American Dream 617 chain ratio method 667 chain stores 667 Chang beer 605–607 channels 352–382, 598–599 behaviour 355–356 conflicts 355, 667 differentiation 217 levels 667 member evaluation 367 charactistics of a salesperson 488–489 chatbots 70 chief marketing officers 56 Chief Privacy Officers 131 children, purchasing power 151 China 76 distribution systems 365 GDP per capita 85 as global giant 85–86 IKEA 578 import duties 334 urbanisation 84 Chipotle 621 Christian Dior 83 Christmas 447–449 Cirque du Soleil 558 Cisco Systems 274 citizen-action publics 74 Clayton Act (USA) 368 click-and-mortar companies 667 click-only companies 667 closing 667 clutter 455–456 co-branding 256–257, 667 Coach, emerging markets 87 Coca-Cola 51 Africa 583–584 branding 217 clean technologies 622–623 concentrated marketing 210–211 customer stories 464 food service solutions group 73 franchise system 358 global sales 587 international segmentation 207 My Coke Rewards 523 offending ad in Russia 585 patriotism 95 Taste the Feeling code of ethics 629 cognitive dissonance 162, 667 Colgate 245 commercial online databases 667 commercial sources 160 commercialisation 278, 667 communicability 164 communication adaptation 596–597, 667 channels 430–431 effects 467 objectives 427–428 process 425–426 see also integrated marketing communications (IMC) company trading sites 183 comparative advertising 451 Comparethemarket.com 361 compatibility 164 competition based pricing 310–311, 667 competitive advantage 216–221, 553–569, 667 competitive intelligence system 558–559 competitive marketing intelligence 112–113, 667 competitive marketing strategies 667 competitive-parity method 433, 667 competitive review 667 competitive strategies 559–568 competitor analysis 553–559, 667 competitor-centred company 568, 667 competitor myopia 553 competitors 73 market development 557 reactions to price changes 336–338 complex buying behaviour 157–158, 667 complex sales force structure 486 complexity 164 concentrated marketing 209–211 concentrated (niche) marketing 667 concept development 275 concept testing 275–276, 668 conformance quality 238 conscious consumption 89 consumer privacy 130–131, 536 protection 620–621 responsibilities 621 consumer buyer behaviour 140–170, 668 consumer expressions 464 consumer-generated content 461–463 consumer-generated marketing 18–19, 668 consumer market 143, 668 consumer-oriented marketing 625, 668 consumer products 235, 668 consumer promotions 500–503, 668 consumer spending 399 changes in 86 consumer-to-business (C-to-B) online marketing 668 consumer-to-consumer (C-to-C) online marketing 668 consumerism 620–621, 668 content curation 70 content marketing 668 contests 502 contract manufacturing 591, 668 contractual VMS 357–358, 668 contribution margin 668 convenience products 235, 668 convenience stores 389, 668 conventional distribution channel 356, 668 Converse 462–463 Cook, Tim 112, 351 core beliefs 93 core customer value 234–235 Corning 175–176 corporate chains 392, 668 corporate image marketing 236–237 corporate VMS 356–357, 668 corporate (brand) website 668 cost-based pricing 306, 668 cost-plus pricing (or mark-up pricing) 308–309, 668 Costa Coffee 24, 211, 358 Costco 86, 220, 391–392 Council of American Survey Research Organizations (CASRO) 132 Coupland, Arthur Douglas 77 Craigslist 557 Crayola 149, 287, 554 creative concept 459, 668 Crest 237 cross-market segmentation see intermarket segmentation crowdsourcing 273–274, 668 cues 156 cultural environment 93–96, 584–587, 668 cultural pollution 618 culture 144–171, 668 Cushelle 159 customer-centred company 569, 668 customer-centred new product development 279, 669 customer database 668 customer-driven marketing 12, 196–228 see also segmentation customer-driving marketing 12–13 customer engagement 2–37 customer-engagement marketing 17–18, 669 customer equity 21–23, 252, 668 customer evangelists 15 customer insights 109–110, 668 customer intimacy 561 customer lifetime value 20, 668 customer loyalty and retention 20 customer-managed relationships 9, 17, 669 customer-perceived value 15, 669 customer-related purpose 489 customer relationship management (CRM) 14–19, 125–126, 668 and partner relationship management 47–49 customer sales force structure 486, 668 customer satisfaction 8, 15–16, 162, 668 customer-segment pricing 329 customer selection 10 customer service, target levels 371 customer targeting 10–11 customer value analysis 556–557, 668 680 Z04 Principles of Marketing 69566.indd 680 03/10/2019 19:29 www.freebookslides.com Index customer value-based pricing 304–305, 668 customer value, creating 2–37 customer-value marketing 625, 668, 669 customers 7, 74–75 CVS Health 470–471 Cyber Security Breaches Survey 536 Dacia 345–347 Danone 314 Davison, Neil 72 De Beers 25 death by discount 399 deceptive practices 613–614 deceptive pricing 340 deciders 179, 669 decline stage 669 deep learning 69 deficient products 626, 669 Del Monte 51 Delhi 84 Dell 187, 363–364 demand chain 351 demand curve 314, 669 demands 7, 669 demographic segmentation 201–203, 669 demography 75–81, 669 Denmark, video games 245 Department for Business, Energy and Industrial Strategy 128 department stores 389, 669 dependency ratios 76 derived demand 175, 669 descriptive research 114, 669 Desi Mint 108 design 239–240 design for environment (DFE) 622 desirable products 626, 669 Deutsche Bank 291 Deutsche Telecom 131 developing economies 85 Dhaka 84 Diageo 327, 422 differentiated (segmented) marketing 209, 669 differentiation 216–222, 252, 560, 669 Digital Advertising Alliance 539 digital and social media marketing 23–24, 519, 669 see also social media Dior, and men 287 direct and digital marketing 421, 435–436, 516–529, 669 direct investment 592–593, 669 Direct Line 361, 363 direct mail marketing 531–532 direct-mail marketing 669 direct marketing channel 354, 669 direct-response television (DRTV) 534, 669 disabled consumers 84 disadvantaged customers 616 discount 669 discount stores 390, 669 discounts 328–329 discrimination, and government buying 186 disintermediation 360, 669 Disney 45, 90–91 bloggers 149 on brands 259 Frozen line of toys 285 licensing 256 patriotism 95 people differentiation 217 disparagements 438 dissonance-reducing buying behaviour 158, 669 distribution centres 371, 669 distribution channels see channels distribution, wholesalers 409 diversification 83–84, 669 divisibility 164 d.light Solar 595 dogs 44 Doritos 18–19, 461 Dove 154 downsizing 669 draff 327 drive 156 dry cleaning 128 DuckDuckGo 50 Duracell 258 DVD.com 361 dynamic pricing 332–333, 669 Dyson 5, 240, 364 history of innovation 296–298 product development 271–272 e-procurement 183–184, 669 early adopters 163 EASA (European Advertising Standards Alliance) 111 easyJet 210, 220 eBay, mission 42 economic communities 581–582, 669 economic environment 85–87, 152–153, 180, 669 and pricing 315 Ede and Ravenscroft 151–152 Edison 28 educated and jobless young 81 EE, Robin Tablet 201 effective marketing communication 425–432 Efficiency and Reform Group 187 Elaichi Mint 108 electric vehicles 89, 90, 163–164, 275–276, 277 electronic data interchange (EDI) 373 elite 147 Elliott, James 211 email marketing 523, 669 emergent service workers 147 emerging economies 583 emotional appeals 428 empathy 482 EmSense 124 engine downsizing 90 English language speakers 586 Enterprise Rent-A-Car 210, 352 entrepreneurial marketing 559 environmental sustainability 88, 621–624, 669 environmentalism 621–624, 669 ESOMAR 131 ESPN,com 521–522 eSports 145 established middle class 147 Estée Lauder 273, 360 esteem 252 ethics 92, 113, 608–636 ethnographic research 116–117, 670 Etsy 527–528 Europages 113 Europe consumer market 143 internet access 129 singletons 80 European Economic Commission and governments’ bias 186 European Federation of Associations of Market Research Organisations 131 European Marketing Association 132 European Patent Office 112–113 European small business support 128 European Society for Opinion and Market Research 132 European Union (EU) 581–582 data protection 131 Distance Selling Directive 437 food labelling 243 General Data Protection Regulation (GDPR) 538 and government spending 186 payment fees 340–341 privacy and electronic communications 538 right to be forgotten 538 Unfair Commercial Practices Directives 437 event marketing 502–503, 670 events 431 Evernote 221 everyday low pricing (EDLP) 305, 397 exchange 9, 670 exchange controls 581 exclusive distribution 364, 670 exclusivity 368 execution styles 460–461, 670 executive summary 670 executives clothing 151 Experian Simmons 115 experience curve 307–308, 670 experiences 233 experiential retailing 395 experiential sources 160 experimental research 670 exploratory research 114, 670 export department 599 exporting 590, 670 external stimuli 160 eyewear distribution 357 Facebook 11, 18, 24 Europe 20 Pegasus personal data 538 681 Z04 Principles of Marketing 69566.indd 681 03/10/2019 19:29 www.freebookslides.com Index factory outlet 391, 670 fads 283, 670 Fáilte Ireland 7–8 Fairtrade 95 Fallet, Jean-Michel 178 family buyers 150–151 family structures 79–81 FarmersOnly.com 527, 567–568 fashion 283, 312, 670 and the environment 349 Father’s Day 203 features 239 FedEx 87, 561 feedback 431–432 Ferrari 8, 50, 258 Ferrero SpA 107–108 Nutella 284 FexEx 352 fighter brand 338 financial intermediaries 73 financial publics 74 Financial Times, and EASA 111 Finland, video games 245 Firefly Drinks 157 Fisher-Price 116, 523 fishyback 373 Fitbit 102–104, 204 Five Guys burgers 239 fixed costs (overhead) 306, 670 Flipkart 588 flows 355 FOB-origin pricing 332, 670 focus 560 focus groups 118–119, 120, 670 FocusVision 120 follow up 670 Foodwatch 634–636 Ford, Henry 12 Ford, innovation centre 272 formulated marketing 559–560 Forte Village, Sardinia 151 Fortnite Battle Royal 145 Foto-Quelle 358 four As 52 four Ps 14, 49, 51–52 Four Seasons, employees 248 Foursquare 211 Fradin, Russell 510 France GDP per capita 85 McDonald’s 290 France Telecom 338 franchises 357, 393, 670 Free, Charlotte 24 freight-absorption pricing 332, 670 frequency 463 Freud, Sigmund 155 full-line forcing368 368 full-service retailers 389 functional organisation 56 Gadget Shop 395 gamers 145 games 502 Gap Inc 50, 395 gatekeepers 179, 670 gay and lesbian see LGBT gender-based pricing 329 gender segmentation 202, 670 General Agreement on Tariffs and Trade (GATT) 581 General Data Protection Regulation (GDPR) 538 General Electric (GE) 43 company trading site 183 government marketing department 187 market share 565 personal selling 483 product mix 245 sales force structure 486 social media 185 General Motors (GM) divestments 46 globalisation 596 product liability 290 general need description 670 general public 74 Generation X 77, 670 Generation Y see millennials Generation Z 78–79, 670 generational marketing 79 geographic segmentation 200–201, 670 geographical organisation 56 geographical pricing 331–332, 670 Germany, GDP per capita 85 Gillette 95, 256 Glasses Direct 559 GlaxoSmithKline 72 global advertising 468–469 global expansion 404–405 global firm 580, 670 global marketing 576–607 global marketing organisation 599 globalisation 27, 586 Go (game) 69 Gocompare.com 250, 361 Golden Wind Egg award 634–636 good life 25 good-value pricing 305, 670 Goodreads 527 Goodyea 187 Google Assistant 69 code of conduct 629 Duplex 69–70 and EASA 111 innovation 272, 280–281 logo 242–243 market share 619–620 personal data 538 Play 361 Time Off 560 Waze 530 see also Android Google+ 24 GoPro 231–232, 463 Gore-Tex 175 Gorilla Glass 175–176 GoToMeeting.com 487 Goulding, Ellie 24 government advertising 450 intervention and the natural environment 88 markets 74, 186–187, 670 government publics 74 Goyens, Monique 341 Grammasters 430 Grand Marnier 312 great recession 25, 86, 94, 305 green retailing 403–404 greening 622 Greggs 501 Groceries Code Adjudicator’s annual supplier survey 72 grocery markets 86, 556 gross domestic product (GDP) per capita 85 gross margin percentage 670 groups 148, 670 growth-share matrix 44, 670 growth stage 670 Grupo Ferrovial 28 Gü Chocolate Puds The Guardian, and EASA 111 Guinness 149 Gumtree 557 Gupta, Vivek 174 Guthy-Renker 534 Häagen-Dazs 16 habitual buying behaviour 158–159, 670 Haier 11 handling objections 670 handshakes 585 Harlequins 24 Harley-Davidson 95, 149, 286–287 Harrods 87 Harry Potter 587 Harvey Nichols 87, 397 Hasbro 284, 285 Hastings, Reed 361 Heart On Fire diamonds 219 Heineken 205 Hennes & Mauritz 153 Hershey, India 107 Hewlett-Packard 149, 568 Heybat, Sertaỗ Higg Index 370 high-low pricing 305 High & Mighty 395 high-pressure selling 614 High Street TV 534 H&M branding 217 international segmentation 207 muslim shoppers 83 online social networks 149 Hobbycraft 395 Holiday Inn 220 Holland & Barrett 137–139 Home Depot 520 682 Z04 Principles of Marketing 69566.indd 682 03/10/2019 19:29 www.freebookslides.com Index Honda Acura 311 Jazz 312 neuromarketing 124 Hoover 113 horizontal marketing system 358–359, 670 hospitals 185–186 Hot Wheels 285 Hotpoint 364 Hotter 77 households, changing nature of 80 H&R Block 393 Huawei 324 human needs Husqvarna 435 hybrid vehicles 89 hydrogen fuel cells 90 Hyundai Assurance Plan 163 neuromarketing 124 website 521 I have already died 424–425 IBM 173–174 branding 217 Chief Privacy Officer 131 customer interaction‘ 560 Global Asset Recovery Services 622 ICC/ESOMAR International Code on Market and Social Research 131 idea generation 271–275, 670 idea screening 274, 670 IKEA 18, 27 Big Sleepover 395 catalogue app 532 garden gnomes 460 global environment 577–578 green retailing 403–404 India 92 mission 42 online social networks 149 and partnering 48 sense-of-mission marketing 626 suppliers 176–177 total market strategy 147 image differentiation 217 immersion groups 119 Imperial Leather 336 import duties, India 108 income distribution 583 income segmentation 86–87, 202, 670 independent off-price retailer 391, 671 India 76 chocolate 107 distribution system 365, 588 GDP per capita 85 import barriers 581, 584 languages 129 indirect marketing channel 355, 671 Inditex 153, 349 individual marketing 212–213, 671 industrial economies 85, 583 industrial espionage 438 industrial products 236, 671 industrial structure 583 Infiniti 11 influencers 149, 671 business buying 178, 179–180 information search 160, 671 informative advertising 451 InfoScan 115 inland waterways 372 Innocent Drinks 634–635 innovation management systems 280 innovations 164, 564 Samsung 269–270 innovative marketing 625, 671 innovators 163 inside sales force 487, 671 Instagram 18 installations 236 institutional market 185–186, 671 integrated logistics management 373–375, 671 integrated marketing communications (IMC) 418–512, 671 see also promotion integrated marketing programme 14 integrated social media marketing 528–529 intensive distribution 364, 671 interactive marketing 249, 671 interactive TV 534 interdepartmental relations 47–48 intermarket segmentation 207, 671 intermodal transportation 671 internal databases 111–112, 671 internal marketing 248–249, 671 internal publics 74 internal stimuli 160 international advertising 468–469 international divisions 599 international marketing 129–130, 206–207, 290–291 international pricing 334–335 Internet 373, 671 internet fraud 536 Internet of Things (IOT) 23, 270, 281 interpersonal influences on business buyers 180 interpretive consumer research 155 intranets 127 Intrapreneurial marketing 560 introduction stage 671 intrusion 17 Intuit 279 inventory explosion 369 inventory management 371–372 inventory turnover rate (or stockturn rate) 671 Ireland 237 Italy 153 Jack Wills 141–142, 154 Japan 76, 83 JCB 310–311 Jean Louis David 358 Jeep 95 Jessops 359 John Deere 360 John Lewis 16 and baby boomers 77 Christmas advertising 447–449 total market strategy 147 Johnson & Johnson 626 joint ownership 592, 671 joint venturing 591–592, 671 Jones, Martyn 72 Jordans 237 junk mail 532 see also spam just-in-time logistics 372 Karachi 82 Kearl, Jeff 209 Kellogg’s 258, 427–428 KFC Asia 365 globalisation 587 line extensions 257 no chicken 457 Kimberly-Clark 336 Kinder Joy 107, 108 Kindle 220, 327, 515 see also Amazon Kinshasa 82, 84 kiosk marketing 534–535 kirana stores 108, 365 KLM Airways 17 knowledge 252 Kodak 256, 553–554 Kohl 333 Kohler 42–43 Kolibree 70 Kompass 113 Kowalski, Michael 28 Kraft marketing analytics 126 monitoring online activity 110 Velveeta cheese 315 Krispy Creme doughnuts 358 Kroes, Neelie 122 Kyrgyz Republic, internet access 129 La Perla 10 labelling 242–243 lagging adopters 163 Lagos 82, 84 Lambourghini 235–236 Land Rover 154 Landor 117 Lands’ End 532 language traps 596 LastSelfie (WWF) 26 law see public policy; socially resposible target marketing learning 156–157, 671 learning curve see experience curve legislation regulating business 91–92 LEGO 18, 63–65, 284 Friends 80–81, 563 IDEAS website 273, 521 Lenovo 11, 335 less-for-much less positioning 220–221 683 Z04 Principles of Marketing 69566.indd 683 03/10/2019 19:29 www.freebookslides.com Index Levi Strauss 95 LexisNexis 113, 115 Lexus 20, 119 LG Electronics, cameras 150 LGBT marketing opportunities 82–83 licensing 255–256, 591, 671 Lidl 85, 202 life stage, and buying 152 lifestyle 153–154, 671 lifestyle centres 398 limited service retailers 389 limited-time offers 331 Linaker, Gary 423 Lindt, India 107 line extension 257, 671 LinkedIn 18, 272–273 Liverpool Football Club 12 living standards 81 Lloyds Bank 84, 272 lobby groups 88 local marketing 211–212, 671 local publics 74 location-based pricing 329 Lockheed Martin 187 logistics information management 373 logistics manager 369 logistics partnerships 374 logos 242–243 London 86, 618 long-run cost curve 307 Longyearbyen 149 L’Oréal 48, 70, 72, 366–367, 594, 599 lost generation 81 Lou Gehrig’s disease 424–425 lovemarks 253 low-cost producers 306 loyalty cards 200–201 loyalty segmentation 204–205 Luggage Mule 249–250 Lush 13, 415–417 Luxottica 357 luxury shame 86 luxury SUVs 215–216 LVMH, and emerging markets 87 Lyft, dynamic pricing 333 Lynx, and women 286–287 macroenvironment 71, 75–85, 671 Macy’s 520 Mad Science Group 393 Madison & Vine 456, 671 Maersk 185 MagicBand (Disney) 90 Makino 495 male unemployment 80 management contracting 591–592, 671 managing the marketing effort 53–55 manufactured materials and parts 236 Marie Curie 442–445 Mario Kart 145 mark-up 672 mark-up chain 672 market-centred company 569, 672 market challengers 562, 565, 671 market development 671 market followers 562, 566–567, 671 market leaders 562, 563–565, 671 market nichers 562, 567–568, 671 market offerings 7, 233, 671 market penetration pricing 325–326, 672 market pioneers 286 market potential 671.590 market segment 50, 672 evaluation 207–208 market segmentation 10, 50, 199, 200–207, 672 market share 672 expanding 565 protection 564 market-skimming pricing 325 market targeting 50–51, 199, 207–214, 672 market variability 213 marketing 672 analytics 126–127, 672 control 56, 672 dashboards 57 defined 2, 5–6, 28–30 department 56 environment 70, 672 ethics 627–629 implementation 54–55, 672 intermediaries 72–73, 353, 672 participants and prices 612–613 Marketing 3.0 13 marketing channel design 362–365, 672 analyse customer needs 362–363 set channel objectives 363 identify major alternatives 363–364 international channel decisions 365 select, motivate and evaluate channel members 366–368 marketing channels 348–417, 352, 672 marketing concept 11–13, 12–13, 610–611, 672 marketing information 106–139 see also marketing research marketing information system (MIS) 110–111, 672 marketing logistics 368–375, 672 marketing management 10, 11–14, 672 marketing mix 49, 51–52, 672 marketing myopia 8, 672 marketing organisation 672 marketing plans 54, 55 marketing process 6–10 marketing research 113–132, 672 defining the problem 114 developing the research plan 114 secondary data collection 115 primary data collection 116–124 observational research 116–117 survey research 117 experimental research 117–118 contact methods 118–122 mail, telephone and personal interviewing 118 focus groups 118–119 online market research 119–120 online behavioural and social tracking and targeting 121–122 sampling plan 122 research instruments 122–124 questionnaires 123 mechanical instruments 123–124 implementing the research plan 124–125 interpreting and reporting the findings 125 big data and marketing analytics 126–127 distributing and using marketing information 127–128 analysing and using marketing information 125–128 customer relationship management 125–126 distribution and use 127–128 codes of ethics 132 international 129–130 intrusion on privacy 130–131127–128 misuse 131–132 non-profit organisations 128–129 small businesses 128–129 Marketing Research Association 132 marketing return on investment (marketing ROI) 57–58, 672 marketing return on sales (marketing ROS) 672 marketing service agencies 73 marketing strategy 49–53, 672 service firms 247–251 marketing strategy development 276, 672 marketing system 9–10 and disadvantaged consumers 616 marketing websites 521, 672 MarketReach study (Royal Mail) 532–533 markets 9–10 Marks & Spencer 28 and baby boomers 77 and inflation 153 muslim shoppers 83 Saudi Arabia 585–586 shwopping 617 total market strategy 147 Marriott 78, 110, 211 Mars, India 107 Maslow, Abraham 155–156 mass customisation 212 mass mingling 94 Mastercard 110 Matalan, target customers 87 materials and parts 236 Mattel 284–285 mature consumers 146–147 maturity stage 672 Maybelline 593–594 Mazda 464 McCafe 216 McDonald’s 27, 393 Asia 365 bloggers 149 consumer-generated marketing 19 684 Z04 Principles of Marketing 69566.indd 684 03/10/2019 19:29 www.freebookslides.com Index disabled consumers 84 food making processes 96 franchisees 356, 364 Happy Meals 213 international products 290 product adaptation 595 sustainable marketing 5, 611 total market strategy 147 in Walmart stores 358 White Castle 566 McPherson, Jon 116 media advertising media engagement levels 464 media multitaskers 466 media planners 466 media publics 74 media types 464–467 mega-retailers 401 membership groups 148 Mercedes-Benz 55, 148, 305 merchant wholesaler 672 Merry Maids 393 message content 428–429 message execution 460–461 message source 431 message strategy 459 Method products 627 MetLife 125–126 Metro Bank 86, 217 Michelin, mission 42 microenvironment 71–75, 672 micromarketing 211–213, 672 Microsoft 125 Chief Privacy Officer 131 commercialisation 278 comparative advertising 452–454 and EASA 111 hardware 552 post-PC era 551 software 551–552 Surface tablet 217 middle-of-the-roaders 560 migration China’s periphery 82 Europe 81, 82 mega-cities 82 remittances 82 Russia and Caucusus 82 Spain 82–83 Sub-Saharan Africa 82 travel opportunities UAE/Middle East 82 within UK 81 US/Mexico border 82 Mildon, Jed 231 Millennials 77–78 Mills Wade, Angela 111 MINI 154 minors, access to social media 536 mission statement 41–42, 673 mobile marketing 24–25, 529–531, 673 mobile phones 153, 283 modified rebuy 177, 673 modifying the market 286, 287 modifying the product 287 mom bloggers 150 money-off deals 502 MONITOR service 115 monopolistic competition 313 moral appeals 429 moral challenges 627–629 more-for-less positioning 221 more-for-more positioning 219 more-for-the-same positioning 219 Morrison’s 72, 219 Mothercare 248–249 Mother’s Day 203 motive (drive) 155, 673 Moto G smartphone 597 motor industry, UK 72 mousetrap 11 Moxy Hotels 78 Mr Handyman 393 multi-brands 258 multi-channel distribution system 359–360, 673 multi-channel marketing 673 multimodal transport 373, 673 multinationals 579 multiple segmentation bases 205 Mumbai 84 mumsnet 24 Murray-Wells, Jamie 559 music 360, 554 muslim shoppers 83 National Health Service 185 native advertising 458–459, 673 natural environment 87–90, 673 natural language processing (NLP) 69 NatWest 74, 244 need recognition 160, 673 needs 673 Nest 257–258 Nestlé 27 Brazil 365 GPS-tracked cash giveaway 501 India 107 mission 42 monitoring online activity 110 portfolio 197–199 Professional 186 net marketing contribution (NMC) 673 net profit percentage 673 Netflix 126, 360–361 NeuroFocus 124 neuromarketing 123–124 new affluent workers 147 new brands 258–259 New Caution 86 new product 162, 673 development 271–281, 673 managing 278–281 process 271–278 pricing strategies 325–326 New Scientist 124 new task 177, 673 news and PR 471 niching 210 Nickelodeon 256 Nielsen Media Research 115, 123–124 Nike 51 brand equity 251–252 co-branding 257 disabled consumers 84 greening of supply chains 370 mass customisation 213 offending ad in China 585 and price 315 Nikon 150 Nissan Leaf 89 Nokia 153, 552 non-personal communication channels 430–431, 673 non-tariff barriers 581 nonprice positions 312 nonprobability samples 122, 123 Nordstrom 561 North American Free Trade Agreement (NAFTA) 582 North Face 79, 277, 623–624 Norway, video games 245 not-for-profit organisations 26–27 Nutella 149, 284 objective-and-task method 433, 673 observational research 673 obsolescence 615–616 occasion segmentation 203, 673 occupation 151–152 Oculus 145 off-price retailer 390, 673 Office 365, 552 Oksman, David 18 older consumers/workers 81 O’Leary, Michael 301–302 oligopolistic competition 313 Olympus 150 omni-channel retailing 350–351, 387, 401–402, 520, 673 online advertising 522, 673 online B-B purchasing see e-procurement online dating 567–568 online discussions, monitoring 110, 112 online focus groups 120, 673 online listening 122 online marketing 119–120, 520–522, 673 online selling 400, 487 online shopping, Generation Z 78–79 online social networks 149, 673 online videos 524 operating control 56 operating expense percentage 673 operating ratios 673 operational excellence 561 opinion leaders 148, 430, 673 opportunities 53–54, 673 optional product pricing 326, 673 Oracle 125 order-routine specification 673 Oreo 468 organisation marketing 236 685 Z04 Principles of Marketing 69566.indd 685 03/10/2019 19:29 www.freebookslides.com Index organisational climate 492 organisational factors 180 Otis Elevator 580 outside sales force 487, 673 overall cost leadership 560 packaging 241–242, 673 pain points 174 palliative care 442–445 Pampers 149 paralympic athletes 84 parental control software 145 partner relationship management (PRM) 19–20, 47–49, 366, 367, 673 Patagonia 89, 533 ambassadors 205 bloggers 149 Patek Phillipe 304 patriotism 95 pay-per click advertising 522–523 payment fees 340–341 PayPal 124 Pegasus Airlines 3–5 people’s views 93–96 PEPPOL 187 PepsiCo 51 comparative advertising 451–452 Mountain Dew 517 multi-brands 258 Quaker brand 287–288 percentage-of-sales method 432–433, 673 perception 156, 673 performance review 673 permission-based email marketing 523 person marketing 237 personal communiation channels 430, 673 personal data 537–539 personal selling 421, 434, 482–485, 674 personal sources 160 personality 154, 674 persuasive advertising 451 Pet Rocks 283 Pets at Home 249 P&G 191–193 brand maintenance 255 brand reinvogoration 288 customers divestments 46, 246 fighter brands 338 gender segmentation 202 great recession 315 laundry war 564–565 price increases 336 product supply managers 374 Professional Division 186 target marketing 209 pharmaceuticals 405 Philips 51, 110, 149 phishing 536 physical distribution see logistics; marketing logistics physical distribution firms 73 piggyback 373 Pinterest 18, 24, 41, 109 pipelines 373 Pizza Hut 151 place 14, 51–52 decision 398–399 marketing 237 placecasting 530 platinum pound 202 PlayStation 145 pleasing products 626, 674 point-of-purchase promotions 502 Pokemon Go 145 Policicchio, Jeff 498 political-legal environment 91–92, 584, 674 pollution 87 Polman, Paul 609, 621 poor people 86–87 China vs India 86–87 disadvantaged 616 international pricing 334–335 marketing targets 583 pop-up stores 400 population 75 Porsche 169–171 Porter, Michael 560 portfolio analysis 43–46, 674 positioning 674 maps 215–216 statement 221–222, 674 post-purchase behaviour 158, 161–162, 674 pot ale 327 potential rebounders 152 Poundland 85 power centre 398 powerful suppliers 208 PR see public relations (PR) pre-approach 674 precariat 147 predatory practices 339, 619 preference services 539 premiums 502 presentation 674 price 14, 51, 397, 674 adjustment strategies 328–335 changes 335–338 comparison apps 333 definition 303 discrimination 340 elasticity 314–315, 674 escalation 597 fixing 339 and globalisation 597–598 gougers 335–336 skimming 325 wholesalers 409 Price, Mark 386 prices, and marketing 612–613 pricing 300–347 Primark and economic downturn 85 and inflation 153 muslim shoppers 83 target customers 87 primary data 115, 129–130, 674 prisons 185 privacy issues 79, 130–131 private and public goods 617–618 pro forma (or projected) profit-and-loss statement (or income statement or operating statement) 674 proactive companies 96 probability samples 122, 123 problem recognition 674 Proctor & Gamble see P&G product 14, 51, 233–266, 674 adaptation 594–595, 674 assortment 395 bundle pricing 328, 674 concept 11, 275–276, 674 development 277, 674 differentiation 51 invention 595, 674 leadership 561 position 51, 215, 674 quality 238, 674 review 674 sales force structure 486, 674 specification 674 stewardship 290 support services 243–244 product form pricing 329 product life cycle (PLC) 282–289, 674 introduction 285–286 growth 286 maturity 286–288 decline 288–289 strategies 282–289 product line 244–245, 674 pricing 326, 674 product/market expansion grid 45–46, 674 product mix 245–246, 674 pricing strategies 326 production concept 11, 674 promotion 14, 52, 397, 495–597 wholesalers 409 promotion mix (or marketing communications mix) 421, 432–436, 433, 674 promotional allowances 329 promotional pricing 331, 674 promotional products 502 proposal solicitation 674 Proquest 115 prospecting 675 Proximus 10 psychographic segmentation 203, 675 psychological factors 154–157 psychological pricing 330, 675 public 675 public policy 91 direct and digital marketing 535–539 and distribution decisions 368 and pricing 338–341 public relations (PR) 421, 435, 469–472, 675 public service activities 472 public sources 160 Publicis Amsterdam 424–425 publics 74 PuddleWatch 419–421 pull strategy 435, 675 686 Z04 Principles of Marketing 69566.indd 686 03/10/2019 19:29 www.freebookslides.com Index purchase decision 161, 675 pure competition 313 pure monopoly 313 pure services 233 pure tangible goods 233 push strategy 435, 675 QR (Quick Response) codes 530 qualitative Internet-based research 120 qualitative value 464 quantitative Internet-based research 119 question marks 44 Quick 425–426 quotas 581 RocketLeague 145 Rockwell Automation 498–499 roles and status 151 Rolex 39–40, 238, 459 Rolls-Royce aerospace 486, 561 Rolls-Royce cars 72, 212, 238 Rometty, Ginni 173 Rossignol 326 Royal Caribbean 203 Royal Dutch Shell 42 Royal Mail 554 runners 477–479 Russia 85, 129, 584 Ryanair 220, 301–302 radio-frequency identification (RFID) 90, 372 railways 372 Ramada 220 Rank Group 116 rational appeals 428 Ravelry.com 24 raw materials 87, 236 reach 463 Real Madrid C.F 149 real-time marketing 24, 518 rebates 502 recruitment 488 Red Bull 10, 114–115, 149, 503, 566 Reeves, Rosser 217 reference groups 148 reference prices 330, 675 Regent Seven Seas Cruise Line 203 relative advantage 164 relevance 252 relevant costs 675 reminder advertising 451, 454 Renault 15 request for quotation (RFQ) see proposal solicitation resellers 73, 75 retail price maintenance 340 retail technology 402 retail trends 399–405 retailers 384–405, 675 differentiation 393–405 life cycles 400 product line 389–390 service 388–389 types 387–393 retailing 387–405, 675 return on advertising investment 467, 523, 675 return-on-quality 238 reverse auctions 183 Revlon, mission 42 Revson, Charles 234 Reyner, Max 142 Riboud, Rick 314 rich media ads 522 right to be forgotten 538 Rippon, Richard 419 Ritz-Carlton hotels 15–16, 42, 562 robotic warehouse 350–351, 371 Sabanci, Ali SABMiller 566 safety 614–615 Saga 201 Sage 326 Sainsbury’s 72, 359 sales contests 492, 504 meetings 492 and profit effects 467 promotion 421, 434, 499–505, 675 quota 675 reports 492 sales 2.0 675 salesforce compensation 490–491 evaluation 492 management 485–492, 675 motivation 492 size 486–487 structure 486 supervision 491–492 training 489–490 Salesforce (software company) 70, 125, 481–482 salesperson 675 salutary products 626, 675 same-for-less positioning 219–220 samples 122, 500–501, 675 Samsung 27 competitor intelligence 112 disabled consumers 84 product innovation 269–270 SleepSense 270 Santander 19 SAP 493–494, 537 SAS 125 scanner fraud 340 scheduling 466–467 Scotland 237 Sea World 528 secondary beliefs 93 secondary data 115, 129–130, 675 security 536 segmentation effectiveness 207 segmented pricing 329, 675 selective attention 156 selective distortion 156, 364 selective distribution 675 selective retention 156 self-concept 154 self-expression 93–94 self-service retailers 388–389 sellers’ rights 620 selling concept 11–12, 675 selling process 675 prospecting 496 pre-approach 496 approach 496–497 presentation 497 handling objections 497 closing 497–498 follow-up 498 sense-of-mission marketing 626, 675 Sephora’s Beauty Talk 521 service 675 differentiation 249 inseparability 246–247, 675 intangibility 246–247, 675 mix 395 perishability 247, 675 productivity 250–251 products 52 profit chain 247–248, 675 quality 250 recovery 250 variability 247, 675 service retailers 390, 675 services marketing 246–247 seven-day-cooling-off rule 437 Shanghai 84 share of customer 20, 675 shared value 13 Shaw, Robert 142 Sheilas’ Wheels 202 Shell 131 Shelter Pet Project 123–124 Shopkick 211–212 shopper marketing 387, 675 shopping centre 398–399, 675 shopping products 235, 675 short-run cost curve 307 showrooming 333, 401, 675 shwopping 617 Siemens 131 simulated test markets 278 Singapore 584, 618 Singapore Airways 16, 217 singletons 80 Siri 69 skis 326 Smart car 10–11 Smartwater 241 Smirnoff 153 Snap Surveys 119 Snapchat 18, 526 Snickers 336, 468–469 Snoozebox 400 Soccer Shots 393 social class 147–148, 676 social environment 92–93 social factors 148–151 social marketing 237–238, 676 687 Z04 Principles of Marketing 69566.indd 687 03/10/2019 19:29 www.freebookslides.com Index social media 676 command centres 121 marketing 24, 525–529 retailing 401 see also Facebook; Twitter social responsibility 289–290, 608–636 social selling 493–495, 676 social targeting 122 socially resposible target marketing 213–214, 436–438 societal marketing 13, 611, 626, 676 software, supply chain management 374 solar panels 581 Solitair 146–147 SoLoMo marketing 211 solus singletons 80 solution selling 178 Somalia 129 Sonos 239–240 Sony 75, 563 Southwest Airlines 3, 220, 250 Spain, clothing market 153 spam 523, 676 see also junk mail SPAMMY awards 523 Spar 392 special events, and PR 471–472 speciality products 235, 676 speciality store 389, 676 Specsavers 461 speed 23 Sperry 94 Spire Healthcare 185 spirituality 95–96 SpongeBob SquarePants 256 sponsored content 458–459 squirrels 564 Stance Socks 209 standardised global marketing 593, 676 Staples 184, 404, 520 Star Alliance 359 Starbucks 18 brand extensions 258 business customer segments 206 consumer-generated marketing 19 and independents 557 mission 42 mobile payments app 278 pumpkin spice latte 203 social media 529 target market 216 VIA line 278 stars 44 starting out singletons 80 Statoil 28 Steelcase 206 Steinway 306 Stella Artois 312 Stewart, John 251 stimulus-response model of buyer behaviour 143 Stitch Fix 210 storage warehouses 371 store brand (or private brand) 254–255, 676 straight product extension 676 straight rebuy 177, 676 strangers 22 strategic business units (SBUs) 43–44 strategic control 56 strategic group 555, 676 strategic planning 41–46, 45, 676 see also marketing strategy strengths 53, 676 struggling singletons 80 style 239–240, 283, 676 Subaru 51 subcultures 144–145, 676 subliminal advertising 156 subsistence economies 85, 583 suddenly singletons 80 SunGard 510–511 Supercell 434 Supercuts 393 supermarkets 389, 676 superstores 390, 676 Supervalu 410 suppliers 71–72 development 176, 676 search 676 selection 676 supplies 236 supply chain 351–352 supply chain management (SCM) 20, 178, 374, 676 see also logistics supply chain weaknesses 369 surfboards 325 survey research 676 SurveyMonkey 119 sustainability, Nestlé 198–199 sustainable companies 630 sustainable marketing 13, 27–28, 609–612, 620–624, 625–627, 676 sustainable supply chains 370 Sweden, video games 245 sweepstakes 502 SWOT analysis 53–54, 676 Sysco 410 systematic new product development 280 systems selling 178, 676 T-Mobile 18, 77 Taco Bell 530 target audience 427 target costing 312, 676 target market 208–214, 676 target return pricing 309 targeting strategy 213, 422–423 tariff disputes, EU and China 581 team-based new product development 279–280, 676 team selling 488, 676 technical middle class 147 technological environment 90–91, 676 Tecnocasa 358 telecommuting 84–85 Telefónica 70 telegrams 554 The Telegraph, and EASA 111 telemarketing 487, 533–534, 676 Telenor Health 264–266 territorial sales force structure 486, 676 Tesco 72, 73 Clubcard 200 discounts 204 and franchises 359 global expansion 291 growth strategies 86 and Krispy Creme doughnuts 358 online grocery 520 positioning 395 store brands 255 Tesco Metro 200 Tesla 362 test marketing 277–278, 676 Tetra GMBH 50 Thailand 584, 605–607 third-party logistics 374–375, 676 Thorntons 380–381 threats 54, 676 Three, Smarty 204 Tic Tac 107, 108 Tiffany & Co 28, 336 time-based pricing 329 Timex 366, 459 TK Maxx 391–392, 397 TOMS shoes 461–462, 527, 626 Tonic digital health services 264–266 Toshiba, and UPS 375 total costs 306, 676 total market demand 677 total market strategy 147, 677 Total Quality Management (TQM) 238 touchpoints 125 touchy-feely see interpretive consumer research Tourism Australia 237 Tourism Ireland 237 Toyota 27 brands 259 disabled consumers 84 Land Cruiser 216 Prius 313 product liability 290 target marketing 209 trade-in allowances 329 trade promotions 503–504, 677 trade shows 504 traditional working class 147 Trafford Centre 399 trainship 373 trajectory touchpoint technique 443 Trans-Pacific Partnership (TPP) 582 Transatlantic Trade and Investment Partnership (TTIP) 582 translation 129 transport 372–373 travel, baby boomers 76 Travelodge 220 Treacy, Michael 561 Triumph motorcycles 153 688 Z04 Principles of Marketing 69566.indd 688 03/10/2019 19:29 www.freebookslides.com Index trnd 430 trucks 372 true friends 22 TRUSTe 131, 539 Turkey 3–5 Twitter 4, 18, 24 tying agreements 368 Uber 333 undifferentiated (mass) marketing 677 unexpected situational factors 161 unfair business practices 91 uniform-delivered pricing 332, 677 Unilever 25, 56 Axe products 436 Bertolli frozen meals 315 bloggers 149 and business buyers 174 comparative advertising 452 digital first 422 emerging economies 335 innovation 274 laundry war 564–565 man maintenance 202 neuromarketing 124 product mix 245 sustainable marketing 609–610 Union of South American Nations (UNASUR) 582 unique selling proposition (USP) 217 unit contribution 677 United Kingdom (UK) diversification 83 GDP per capita 85 Government advertising 27 stagnation 86 United States 76 diversification 83 GDP per capita 85 IKEA 577 singletons 80 see also American United Technologies Corporation 580 unsought products 236, 677 UPS 87, 178 branding 217 logistics 375 urbanisation 84–85 usage rate segmentation 204 user status segmentation 204 users 677 USG Corporation 179–180 Valenciaga 422–423 value 20–23, 25 value-added pricing 306, 677 value analysis 182 value-based pricing 304–305, 677 value chain 677 value delivery network 351–352, 677 value innovation 558 value marketing 86 value proposition 10, 218–222, 677 values-led business 92 Van Cleef & Arpels variable costs 306, 677 variety-seeking buying behaviour 677 veganism 203 Vegemite 568 vendor-managed inventory (VMI) 183, 373 Venezuela 584 Versace 87 vertical conflict 356 vertical marketing system (VMS)356–358, 677 VF Corporation 57, 568 Victorinox 258 video convergence 424 video games 145 Vietnam 584 viral marketing 524, 677 Virgin Atlantic 16, 41 virtual reality 145, 403 Visit Scotland 237 Vivago OY 45–46 VKontacte 23 Vodaphone 72, 79 Volkswagen 87, 613–614 Volvo cars 226–228, 362, 521 warehousing 371 water shortages 87 WaterAid 26 Watson (IBM) 70 WD-40 564 weak businesses 46 weaknesses 53, 677 WebEx 85, 487 webrooming 401 websites 4, 84 Weight Watchers 287 Western Europe 76 Western Union 359 wheel-of-retailing concept 677 Whirlpool 253 Whitbread 25 White Castle 566 whole-channel view 598, 677 Whole Foods Market 255 wholesaling 405–410, 677 Wiersema, Fred 561 Wildlife Trusts 237 Williams-Sonoma 330, 520 Windows 10, 551–552 wine 581 winning strategies 73 women, as marketing opportunity 80 Woodman, Nick 231, 232 word-of-mouth influence 148, 430, 677 working women 80–81 workload method 677 World Trade Organisation 581 World Wildlife Fund (WWF) 26 Wrigley 313 Wyatt, Freddie 141 Waitrose 219, 363, 385–386, 395 Walkers 423 Wall Street bankers 94 Wallace, George 142, 154 Walmart 25 and discount pioneers 566 everyday low pricing (EDLP) 305 growth strategies 86 India 581 McDonald’s franchises 358 size 579 sustainability 88–89 see also Asda/Walmart wants 7, 617, 677 Warby Parker 92 warehouse clubs 391, 677 Xerox 75, 187 Xiaomi 153, 324, 335 Yahoo 111 Yamaha 306 Yammer 552 Yell 111 Yelp 160 youronlinechoices.eu 111 youth market 81 YouTube 11, 18, 24, 573–575 Zappos 216, 375 Zara 349–351, 520 Zilinskas, Matt 325 zone pricing 332, 677 689 Z04 Principles of Marketing 69566.indd 689 03/10/2019 19:29 www.freebookslides.com PRINCIPLES OF MARKETING EIGHTH EUROPE AN EDITION PHILIP KOTLER • GARY ARMSTRONG • LLOYD C HARRIS • HONGWEI HE In a fast-changing, increasingly digital and social marketplace, it’s more vital than ever for marketers to develop meaningful connections with their customers Principles of Marketing, European Edition helps students master today’s key marketing challenge: to create vibrant, interactive communities of consumers who make products and brands an integral part of their daily lives To help students understand how to create value and build customer relationships, the authors present fundamental marketing information within an innovative customer-value framework Thoroughly revised to reflect the major trends impacting contemporary marketing, the 8th Edition is packed with examples illustrating how companies use new digital technologies to maximise customer engagement and shape brand conversations, experiences, and communities Philip Kotler is S C Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management, Northwestern University Gary Armstrong is Crist W Blackwell Distinguished Professor Emeritus of Undergraduate Education in the Kenan-Flagler Business School, University of North Carolina Lloyd C Harris is Professor of Marketing and Head of the Department of Marketing at Birmingham Business School, University of Birmingham Hongwei He is Chair Professor of Marketing at Alliance Manchester Business School, The University of Manchester Cover image © stilllifephotographer/Stone/Getty Images www.pearson-books.com ... the marketing system Marketing strategy and the marketing mix Customer value-driven marketing strategy Developing an integrated marketing mix Managing the marketing effort Marketing analysis Marketing. .. Benefits of direct and digital marketing to buyers and sellers Forms of direct and digital marketing Marketing, the internet and the digital age Online marketing Social media marketing Mobile marketing. .. business writer/ guru’ of the twenty-first century Dr Kotler has served as chairman of the College on Marketing of the Institute of Management Sciences, a director of the American Marketing Association