Marketing strategy text and cases 7e by ferrell

Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 96519_cvr_ptg01_hires.indd 17/05/16 5:43 PM Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 96519_cvr_ptg01_hires.indd 17/05/16 5:43 PM Marketing Strategy TEXT AND CASES SEVENTH EDITION O.C Ferrell Belmont University Michael D Hartline Florida State University Australia • Brazil • Mexico • Singapore • United Kingdom • United States Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 Marketing Strategy: Text and Cases, Seventh Edition O.C Ferrell and Michael D Hartline Senior Vice President, General Manager, Social Sciences, Humanities, and Business: Erin Joyner Product Director: Jason Fremder Senior Product Manager: Mike Roche Product Assistant: Brian Pierce Marketing Manager: Katie Jergens Marketing Coordinator: Casey Binder © 2017, 2014 Cengage Learning ALL RIGHTS RESERVED No part of this work covered by the copyright herein may be reproduced or distributed in any form or by any means, except as permitted by U.S copyright law, without the prior written permission of the copyright owner For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Further permissions questions can be emailed to permissionrequest@cengage.com Content Project Manager: Darrell E Frye Manufacturing Planner: Ron Montgomery Unless otherwise noted all items © Cengage Learning Production Service: MPS Limited Library of Congress Control Number: 2016942345 Senior Art Director: Bethany Casey Cover Image: Black_Diamond/Shutterstock.com; vs148/Shutterstock.com; scyther5/Shutterstock.com; Pulvas/Shutterstock.com Intellectual Property Analyst: Diane Garrity Project Manager: Sarah Shainwald ISBN: 978-1-337-29651-9 Cengage Learning 20 Channel Center Street Boston, MA 02210 USA Cengage Learning is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world Find your local representative at www.cengage.com Cengage Learning products are represented in Canada by Nelson Education, Ltd To learn more about Cengage Learning Solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com Printed in the United States of America Print Number: 01 Print Year: 2016 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 To my wife, Linda O.C Ferrell To my girls, Marsha, Meghan, Madison, and Mallory Michael D Hartline Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 Brief Contents Preface xiii About the Authors xvii 10 MARKETING IN TODAY’S ECONOMY STRATEGIC MARKETING PLANNING 27 COLLECTING AND ANALYZING MARKETING INFORMATION 56 DEVELOPING COMPETITIVE ADVANTAGE AND STRATEGIC FOCUS 89 CUSTOMERS, SEGMENTATION, AND TARGET MARKETING 119 THE MARKETING PROGRAM 153 BRANDING AND POSITIONING 203 ETHICS AND SOCIAL RESPONSIBILITY IN MARKETING STRATEGY 230 MARKETING IMPLEMENTATION AND CONTROL 260 DEVELOPING AND MAINTAINING LONG-TERM CUSTOMER RELATIONSHIPS 289 CASES CASE USA TODAY: INNOVATION IN AN EVOLVING INDUSTRY CASE CONSUMERS TAKE A SHINE TO APPLE, INC 318 331 CASE MONSANTO BALANCES THE INTERESTS OF MULTIPLE STAKEHOLDERS 342 CASE NEW BELGIUM BREWING (A): SOCIAL RESPONSIBILITY AS COMPETITIVE ADVANTAGE 355 CASE NEW BELGIUM BREWING (B): DEVELOPING A BRAND PERSONALITY CASE MATTEL CONFRONTS ITS MARKETING CHALLENGES 364 373 CASE MISTINE: DIRECT SELLING IN THE THAI COSMETICS MARKET CASE BP STRUGGLES TO REPAIR ITS TARNISHED REPUTATION 384 396 CASE CHEVROLET: A CENTURY OF PRODUCT INNOVATION 407 CASE 10 WYNDHAM WORLDWIDE ADOPTS A STAKEHOLDER ORIENTATION MARKETING STRATEGY 422 CASE 11 NASCAR: CAN’T KEEP A GOOD BRAND DOWN 431 iv Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 Brief Contents CASE 12 INDYCAR: SEEKING A RETURN TO MOTORSPORTS’ FAST LANE 443 CASE 13 ZAPPOS: DELIVERING HAPPINESS 454 CASE 14 NETFLIX FIGHTS TO STAY AHEAD OF A RAPIDLY CHANGING MARKET 465 CASE 15 GILLETTE: WHY INNOVATION MAY NOT BE ENOUGH 475 CASE 16 IKEA SLOWLY EXPANDS ITS U.S MARKET PRESENCE 487 CASE 17 UBER: THE OPPORTUNITIES AND CHALLENGES OF MARKET DISRUPTION CASE 18 SCENTSY, INC.: A SUCCESSFUL DIRECT SELLING BUSINESS MODEL 496 507 CASE 19 SIGMA MARKETING: STRATEGIC MARKETING ADAPTATION 515 CASE 20 BELLE MEADE PLANTATION: A SOCIAL ENTREPRENEURSHIP MARKETING STRATEGY 525 CASE 21 COCA-COLA: INTEGRATED MARKETING COMMUNICATIONS 534 Index 544 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 v Contents Preface xiii About the Authors xvii MARKETING IN TODAY’S ECONOMY THE CHALLENGES AND OPPORTUNITIES OF MARKETING IN TODAY’S ECONOMY Power Shift to Customers Massive Increase in Product Selection Audience and Media Fragmentation Changing Value Propositions Shifting Demand Patterns Privacy, Security, and Ethical Concerns Unclear Legal Jurisdiction BASIC MARKETING CONCEPTS What Is a Market? What Is Exchange? What Is a Product? 10 MAJOR MARKETING ACTIVITIES AND DECISIONS 13 Strategic Planning 15 Research and Analysis 15 Developing Competitive Advantage 16 Marketing Strategy Decisions 16 Social Responsibility and Ethics 19 Implementation and Control 20 Developing and Maintaining Customer Relationships 20 vi Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 Contents TAKING ON THE CHALLENGES OF MARKETING STRATEGY 21 LESSONS FROM CHAPTER 23 NOTES 24 STRATEGIC MARKETING PLANNING 27 THE STRATEGIC PLANNING PROCESS 29 Organizational Mission versus Organizational Vision 30 Corporate or Business-Unit Strategy 34 Functional Goals and Objectives 35 Functional Strategy 36 Implementation 36 Evaluation and Control 36 THE MARKETING PLAN 37 Marketing Plan Structure 37 Using the Marketing Plan Structure 43 Purposes and Significance of the Marketing Plan 44 Organizational Aspects of the Marketing Plan 45 MAINTAINING CUSTOMER FOCUS AND BALANCE IN STRATEGIC PLANNING 46 Customer-Focused Planning 46 Balanced Strategic Planning 49 LESSONS FROM CHAPTER 51 NOTES 53 COLLECTING AND ANALYZING MARKETING INFORMATION 56 CONDUCTING A SITUATION ANALYSIS 58 Analysis Alone Is Not a Solution 58 Data Are Not the Same as Information 59 The Benefits of Analysis Must Outweigh the Costs 59 Conducting a Situation Analysis Is a Challenging Exercise 59 THE INTERNAL ENVIRONMENT 61 Review of Current Objectives, Strategy, and Performance 61 Availability of Resources 62 Organizational Culture and Structure 63 THE CUSTOMER ENVIRONMENT 63 Who Are Our Current and Potential Customers? 65 What Do Customers Do with Our Products? 65 Where Do Customers Purchase Our Products? 66 When Do Customers Purchase Our Products? 66 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 vii viii Contents Why (and How) Do Customers Select Our Products? 68 Why Do Potential Customers Not Purchase Our Products? 68 THE EXTERNAL ENVIRONMENT 69 Competition 71 Economic Growth and Stability 73 Political Trends 74 Legal and Regulatory Issues 74 Technological Advancements 75 Sociocultural Trends 76 COLLECTING MARKETING DATA AND INFORMATION 79 Secondary Information Sources 79 Primary Data Collection 82 Overcoming Problems in Data Collection 83 LESSONS FROM CHAPTER 84 NOTES 85 DEVELOPING COMPETITIVE ADVANTAGE AND STRATEGIC FOCUS 89 MAKING SWOT ANALYSIS PRODUCTIVE 91 Stay Focused 91 Search Extensively for Competitors 93 Collaborate with Other Functional Areas 93 Examine Issues from the Customers’ Perspective 93 Look for Causes, Not Characteristics 95 Separate Internal Issues from External Issues 96 SWOT-DRIVEN STRATEGIC PLANNING 97 Strengths and Weaknesses 97 Opportunities and Threats 97 The SWOT Matrix 99 DEVELOPING AND LEVERAGING COMPETITIVE ADVANTAGES 102 ESTABLISHING A STRATEGIC FOCUS 104 DEVELOPING MARKETING GOALS AND OBJECTIVES 109 Developing Marketing Goals 111 Developing Marketing Objectives 112 Moving beyond Goals and Objectives 115 LESSONS FROM CHAPTER 115 NOTES 117 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.freebookslides.com Case 21 • Coca-Cola: Integrated Marketing Communications considered all the publicly traded Olympic advertisers and partners’ stock prices for the weeks of the Olympic Games from 2000 to 2010 The study results indicated that the companies that advertised during the Olympic broadcasts outperformed the S&P 500 It also suggests that companies that partner with the Olympics, as well as advertise during the broadcast, outperform the S&P 500 by an even greater margin The results of the study support the notion that there are tangible benefits that arise from sponsoring the Olympic Games For these reasons, Coca-Cola signed an agreement with the Internal Olympic Committee in 2005 to continue its partnership and have Coca-Cola products be a part of the Olympics until 2020 CONCLUSION Coca-Cola integrates traditional and modern marketing strategies in the Olympics to promote its vast brand assortment and create global awareness Its many promotional campaigns during the Olympics have helped make it one of the most dominant and recognizable companies in the world The company effectively integrates a wide range of promotional media, including television advertising, product display advertising, and digital marketing, to bring its brand to the attention of Olympic viewers Maintaining and continuing to build one of the most recognized brands in the world requires constant adaptations and improvements Multinational corporations like Coca-Cola need to constantly evaluate how they can better integrate marketing platforms to ensure that consistent messages are reaching customers Coca-Cola should continue to monitor the environment to understand what issues are important to Olympic viewers By understanding the global market, Coca-Cola can develop effective campaigns and avoid issues like the digital marketing failure in the Sochi Olympics As Coca-Cola continues to sponsor the Olympics, its brand will become even more intertwined with the symbolic spirit behind the Games SOURCES “2013 World’s Most Admired Companies,” 2013, Fortune, http://archive.fortune.com/magazines/fortune/ most-admired/2013/list/ (accessed February 20, 2015); Ad Age Staff, “For top CMOs, TV remains surest bet for advertising,” Advertising Age, April 18, 2011, http://adage.com/article/special-report-tv-upfront/ top-cmos-tv-remains-surest-bet-advertising/227011/ (accessed February 20, 2015); Lisa Baertlein and Phil Wahba, “Coca-Cola takes $1.3 billion stake in Green Mountain,” Reuters, February 5, 2014, http://www reuters.com/article/2014/02/06/us-greenmountain-cocacola-idUSBREA1423020140206 (accessed February 20, 2015); Bloomberg Interview Video, “Bottom line,” Coca-Cola Journey, December 16, 2011, http:// 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history of the Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 541 www.freebookslides.com 542 Case 21 • Coca-Cola: Integrated Marketing Communications secret formula, http://assets.coca-colacompany.com/11/e3/dcfce4724abda9b66d010a449d55/History%20of %20the%20Secret%20Formula%20Timeline.pdf (accessed February 20, 2015); Coca-Cola Company, “Mission, vision & values,” Coca-Cola Journey, http://www.coca-colacompany.com/our-company/ mission-vision-values (accessed February 20, 2015); Coca-Cola Company, “Special Olympics take centre stage,” Coca-Cola Great Britain, 2010, http://www.coca-cola.co.uk/community/special-olympics/specialolympics-national-summer-games-billboards.html (accessed February 20, 2015); Coca-Cola Company, “Why does Coca-Cola sponsor the Olympic Games?” Coca-Cola Great Britain,http://www.coca-cola.co uk/faq/olympic-games/why-does-coca-cola-sponsor-the-olympic-games.html (accessed February 20, 2015); Content Marketing Institute, “What is content marketing?” http://contentmarketinginstitute.com/ what-is-content-marketing/ (accessed February 20, 2015); Coca-Cola Company, “What is happiness?” http://us.coca-cola.com/happiness/ (accessed February 20, 2015); Avi Dan, “How does Coca-Cola reinvent itself in a changed world?” Forbes, October 7, 2013, http://www.forbes.com/sites/avidan/2013/ 10/07/just-how-does-coca-cola-reinvent-itself-in-a-changed-world/ (accessed February 20, 2015); Mike Esterl, “Olympic sponsors go for the young,” Wall Street Journal, July 2, 2012, http://www.wsj.com/ articles/SB10001424052702303933404577502473609467112 (accessed February 20, 2015); Dana Flavelle, “Olympic sponsors strike gold,” Toronto Star, February 25, 2010, http://www.thestar.com/business/2010/ 02/25/olympic_sponsors_strike_gold.html (accessed February 20, 2015); Dan Hanover, “Coke moves to the Olympic beat,” Event Marketer, August 7, 2012, 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communications in a digital era: The role of traditional and new media in a multichannel environment,” ProQuest Dissertations and Theses, 2012, http://search.proquest.com/docview/1112071177?accountid=12846 (accessed February 20, 2015); Laura Lake, “Integrated Marketing Communications (IMC),” About.com, 2015, http://marketing about.com/od/marketingglossary/g/imcdef.htm (accessed February 20, 2015); Johnny K Lee, “Marketing and promotion of the Olympic games,” U.S Sports Academy, March 4, 2008, http://thesportjournal.org/ article/marketing-and-promotion-of-the-olympic-games/ (accessed February 20, 2015); Fang Liu and Willem Smit, “Social media strategy: Learning from the online Cola war,” European Business Review, May 20, 2012, http://www.europeanbusinessreview.com/?p=3541 (accessed February 20, 2015); Shahnaz Mahmud, “Coke designs Olympic push,” AdWeek, July 21, 2008, http://www.adweek.com/news/ advertising-branding/coke-designs-olympics-push-96391 (accessed February 20, 2015); Allen Marber, Paul M Wellen, Michael Wurtz, and Xiaoke Yi (2012), “Marketing warfare: A case study from the 2008 Beijing Olympics,” International Journal of Business & Public Administration, 9(2), 11-18; Millward Brown, “BrandZ top 100 most valuable global brands ranking,” 2014, https://www.millwardbrown.com/ brandz/2014/Top100/Docs/2014_BrandZ_Top100_Chart.pdf (accessed February 20, 2015); Modern Marketing Partners, “Integrated marketing communications: A modern take on IMC,” Mach 2, 2012, http://www.modernmarketingpartners.com/blog/modern-integrated-marketing-communications# Uu5gm7StwXU (accessed February 20, 2015); Morningstar, Inc., “The Coca-Cola company,” Financial data provided by Morningstar; David Moth, “Coca-Cola reveals lessons learned from its London Olympics marketing,” Econsultancy, February 6, 2013, https://econsultancy.com/blog/62023-coca-colareveals-lessons-learned-from-its-london-olympics-marketing/ (accessed February 20, 2015); “Move to the Beat of London 2012 Commercial,” YouTube, July 27, 2012, https://www.youtube.com/watch? v=_bgVbBvp4X8 (accessed February 20, 2015); James Michael Nichols, “Coca-Cola apologizes for ‘Share a Coke’ promotion deemed homophobic,” Huffington Post, January 28, 2014, http://www huffingtonpost.com/2014/01/28/coca-cola-apologizes-share-a-coke_n_4682878.html (accessed February 20, 2015); Laura O’Reilly, “Coca-Cola extends Olympic legacy push,” Marketing Week, March 25, 2013, http://www.marketingweek.com/2013/03/25/coca-cola-extends-olympic-legacy-push/ (accessed February 20, 2015); Russell Parsons, “Coke to communicate ‘more pointed’ diversity messages,” Marketing Week, November 19, 2013, http://www.marketingweek.com/2013/11/19/coke-to-communicate-more-pointeddiversity-messages/ (accessed February 20, 2015); Pew Research Center, “Mobile technology fact sheet,” January 2014, http://www.pewinternet.org/fact-sheets/mobile-technology-fact-sheet/ (accessed February 20, 2015); Chris Pleasance, “Coca-Cola axed from gay magazine awards’ shortlist over sponsorship of Sochi Olympics despite Russian homosexual propaganda law,” Daily Mail, January 27, 2014, http://www.dailymail.co.uk/news/article-2546608/Sochi-Olympic-sponsors-Coca-Cola-embarrassedwebsite-glitch-users-banned-writing-gay-cans-wake-Russian-homosexual-propaganda-law.html (accessed February 20, 2015); PR Newswire, “Coca-Cola supports unique tribute to special Olympic athletes and their dads,” June 15, 2012, http://www.prnewswire.com/news-releases/coca-cola-supports-unique-tributeto-special-olympic-athletes-and-their-dads-159252215.html (accessed February 20, 2015); José Roitberg, “2008 Coca-Cola 355ml can Beijing Olympics Torch Relay,” Flickr, May 18, 2010, http://www.flickr.com/ Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.freebookslides.com Case 21 • Coca-Cola: Integrated Marketing Communications photos/roitberg/4619617658/ (accessed February 20, 2015); Sheila Shayon, “Coca-Cola continues to open happiness, from Coke machine to truck to table,” Brand Channel, September 19, 2012, http:// www.brandchannel.com/home/post/2012/09/19/Coca-Cola-Open-Happiness-091912.aspx (accessed February 20, 2015); Michelangelo Signorile, “Olympic sponsors were warned about Sochi; Now McDonald’s and Coca-Cola are having a PR nightmare,” Huffington Post, January 28, 2014, http://www huffingtonpost.com/michelangelo-signorile/olympic-sponsors-were-war_b_4679919.html (accessed February 20, 2015); Craig Simons and Joe Guy Collier, “Coke pours a lot into China games; Great Wall of advertising,” Sponsorship.com, July 20, 2008, http://www.sponsorship.com/About-IEG/IEG-In-TheNews/Coke-Pours-A-Lot-into-China-Games;-Great-Wall-of-A.aspx (accessed February 20, 2015); Jacquelyn Smith, “London 2012 Olympic sponsorship roundup,” Forbes, July 18, 2012, http://www forbes.com/sites/jacquelynsmith/2012/07/18/london-2012-olympic-sponsorship-round-up/ (accessed February 20, 2015); J Walker Smith (2005), “New marketing the traditional way,” Marketing Management, 14(2), 56; Greg Sterling, “Pew: 50 Percent in US now own tablet or E-Reader,” Marketing Land, January 16, 2014, http://marketingland.com/pew-50-percent-in-us-now-own-tablet-or-e-reader70765 (accessed February 20, 2015); Andrew Sung, “Coca-Cola launches move to the BeatTM London 2012 Olympic Games campaign with unveiling of Beat Wall,” Coca-Cola Journey, February 16, 2012, http://www.coca-colacompany.com/press-center/press-releases/coca-cola-launches-move-to-the-beatlondon-2012-olympic-games-campaign-with-unveiling-of-beat-wall (accessed February 20, 2015); Courtney Thompson, “Coca-Cola aims for China domination with towering Coke bottle,” Biz Bash, January 24, 2008, http://www.bizbash.com/coca-cola_aims_for_china_domination_with_towering_ digital_bottle/new-york/story/9717/ (accessed February 20, 2015); Allen Tomlinson (2005), “The commercialization of the Olympics: Cities, corporations and the Olympic commodity,” in Kevin Young and Kevin B Wamsley (Eds.), Research of the sociology of sport, Vol 3, Global Olympics (pp 179-200), San Diego: Elsevier; Lesa, Ukman, “Getting Olympic sponsorship right: Coca-Cola’s winning formula,” Sponsorship.com, August 2012, http://www.sponsorship.com/About-IEG/Sponsorship-Blogs/LesaUkman/August-2012/Getting-Olympic-Sponsorship-Right–Coca-Cola-s-Win.aspx (accessed February 20, 2015); Rama Yelkur, Chuck Tomkovick, and Julia Pennington (2012), “The alchemy of Olympics advertising & sponsorship,” Journal of Management Policy and Practice, 13(2), 34-45 QUESTIONS Why is Olympic sponsorship such a crucial part of Coca-Cola’s marketing strategy? Describe how Coca-Cola uses various marketing tools to develop consistent and impactful messages during the Olympics What the marketing issues that Coca-Cola encountered during the 2014 Sochi Olympics imply about careful planning of promotional campaigns? Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 543 www.freebookslides.com Index A academic journals, 82 accessory equipment, 156 achievers, 143 action, 183 advantages, 216 advertising of brand/branding, 367–368 Coca-Cola, 537–539 cooperative, 195 defined, 185 direct response, 181 direct-to-consumer, 69 integrated marketing communications and, 185–187 Internet, 185 media, 184 advocacy, 292 aggressiveness, 107 AIDA model, 183 alliances, 209 allowances, 172 trade, 194–195 alternatives, evaluation of, 125 Amazon, Zappos merger with, 461 American Customer Satisfaction Index, 22 American Girl, 374–375 Amway (Thailand) Co., Ltd., 388 Apple, 331–341 App Store, 334 corporate culture of, 336–337 future of, 340–341 history of, 332 impact on marketing, 340 iPad, 333–334 iPhone, 333 iPod, 333 iTunes, 333 Mac computers, 333 marketing challenges, 337–340 marketing strategies, 335–336 products of, 332–335 assessment, as competitive analysis stage, 72 assortment, 157 attainability, marketing goals/ objectives, 111, 112–113 attention, 183 audience, media fragmentation and, Average Order Value (AOV), 313 Avon, 387–388 awareness, 292 B baby boomers, 57 backstage technology, 75 balanced performance scorecard, 49–50 balanced strategic planning, 49–50 Barbie, 374–375 barter, 172 base prices/pricing, 170–172 behavioral segmentation, 139, 140 believers, 143 Belle Meade Plantation, 525–532 challenges for, 526–527, 531–532 history of, 525–526 promotions of, 530–531 success of, 529–530 winery at, 528–529 Beyond Petroleum (BP), 396–404 branding of, 399–400 code of conduct of, 400 ethical conduct of, 398 history of, 397–398 marketing strategy of, 404 social conduct of, 398 sustainability, 399–400 bids, 132 biotechnology herbicides, 346–347 Monsanto, 343–344 pesticides, 346–347 blue ocean strategy, 110 book sources, 81–82 BP oil spill, 400–401 initial explosion, 401 recovery following, 403–404 repercussions of, 402 risks, failure to manage, 401–402 brand associations, 210 brand/branding advantages of, 207–208 alliances, 209 attributes of, 205 of BP, 399–400 of Chevrolet, 413–414 corporate, 206 decisions for, 206–209 decline stage of, 224, 226 defined, 203 development stage of, 220 equity, 435–436 family, 209 growth stage of, 221–222 individual, 209 insistence of, 210 introduction stage of, 221 labeling and, 212 loyalty to, 210, 435–436 management of, 218–226 manufacturer vs privatelabel, 208 marketing strategy decisions on, 19 maturity stage of, 223–224 of NASCAR, 433–434 of New Belgium Brewing, 366–369 packaging and, 212 positioning and, 203–226 preference, 210 recognition of, 210 strategic issues in, 206–212 technical aspects of, 203–206 values, 209–212 Wyndham Worldwide, 424 brand competitors, 71 brand equity, 210 brand licensing, 209 brand mark, 203 544 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.freebookslides.com Index brand name, 203 breakeven pricing, 164 bribery, 245–246 bulk breaking, as marketing channel function, 175 business buying process, 132–133 bids, 132 order processing, 132 problem recognition, 132 product development, 132 for vendor, 132 business markets/marketing, business buying process in, 132 buyer behavior in, 129–133 characteristics of, 130–132 developing relationships in, 294–296 fundamental changes to, 2–7 segmentation of, 144–145 business model customer-focused, 455–457 of Netflix, 468–469 of Scentsy, Inc., 509 of Zappos, 455–457 business partners, with Mattel, 376–377 business products defined, 155 types of, 156 business sales promotions, 194–195 business services, 156 business-unit strategy, 34–35 buyer behavior in business markets, 129–133 in consumer markets, 121–129 buying center, 130–131 C Cabbage Patch Kids, 375–376 capabilities, 72, 97 cash flow, 166, 223 catalog marketing, 181 cause-related marketing, 234 cereal market, 140 CFPB See Consumer Financial Protection Bureau (CFPB) characteristics, as competitive analysis stage, 72 Chevrolet, 407–417 branding strategy of, 413–414 Camaro, 410 challenges of, 415–416 Corvette, 409–410 Cruze, 411 Ford, rivalry with, 414 history of, 407–408 Impala, 410 international marketing of, 415 product mix of, 408–413 product recalls, 416–417 recovery of, 415–416 Silverado, 411 SUVs/Crossover vehicles, 412 Volt, 412–413 Children’s Online Privacy Protection Act (COPPA), client-based relationships, 159 cobranding/co-branding, 209, 433–434 Coca-Cola, 534–541 corporate history of, 535 corporate strategy of, 536 digital marketing campaigns, 539–540 integrated marketing through olympic partnership, 536–537 music and radio advertising, 539 overview of company, 535 product display advertising, 538–539 products of, 535–536 sponsorship with other organizations, 540 television commercial advertising, 537–538 codes of conduct, 248–249 of BP, 400 coercive power, 177 cognitive dissonance, 127 collaboration, 93, 173 commercial markets, 130 commercial sources, 82 commoditization, commodity hell, communication about risk, 282 corporate, 80 during exchange, 10 communications social, 313 community, 173 customer relationship management within, 292 extended enterprise in, 173 stakeholders, relationship with, 426–427 comparison shopping, 207 competition with Apple, 337 in external environment, 71–73 with IKEA, 494 with Netflix, 469–471 SWOT analysis and, 93 in today’s society, with USA Today, 326–327 competitive advantage defined, 16, 35, 102 developing/leveraging, 102–104 in marketing, 16 sources of, 103–104 strategic focus and, 89–115 strategies, core competencies for, 106 competitive intelligence, 15 competitive matching, 166, 170 competitors, types of, 71 complementary products, 167 component parts, 156 comprehensiveness, marketing goals, 111–112 connectivity, 173 consistency,marketinggoals,111 consumer buyer process, 121–129 alternatives, evaluation of, 125 factors affecting, 127–129 information search, 124–125 need, recognition of, 123–124 postpurchase evaluation, 127 purchasing decisions, 126 stages of, 122 Consumer Financial Protection Bureau (CFPB), 247 consumer markets buyer behavior in, 121–129 customer relationships in, 292–294 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 545 www.freebookslides.com 546 Index consumer market segmentation, 139–144 behavioral segmentation, 139, 140 demographic segmentation, 140–142 geographic segmentation, 144 psychographic segmentation, 142–144 consumer products defined, 155 types of, 156 consumers See also customers needs and wants of, 124 sales promotions for, 192–194 consumer sales promotion, 192–194 contact efficiency, 174 contests, consumers, 193–194 continuity, marketing objectives, 113 control cultural, 281 marketing implementation and, 20, 260–284 of marketing plan/planning, 36–37, 43 controls input, 276 output, 278–279 process, 276, 277–278 social, 281 convenience products, 156 cooperative advertising, 195 COPPA See Children’s Online Privacy Protection Act (COPPA) core product, 296–297, 301, 302 corporate affairs, 80–81 corporate branding, 206 corporate codes of ethics, 249 corporate communication, 80 corporate culture of Apple, 336–337 of IKEA, 491 of Zappos, 457–459 corporate philanthropy, 80, 234–235 corporate social responsibility, 231 of Monsanto, 349 of Zappos, 459 corporate strategy, 34–35 corporate sustainability, 80 cost-plus pricing, 164 cost structure of firm, 164, 226 countertrade, 172 coupons, 192 cultural control, 281 cultural values, 78 customer focus competitive advantage and, 109–115 SWOT analysis and, 91–92 customer-focused business model, 455–457 customer-focused mission statements, 33–34 customer-focused planning, 46–47 customer relationship management (CRM), 291–292 customer relationships See also customer satisfaction in consumer markets, 292–296 developing/maintaining, 289–313 introduction to, 289 managing, 290–296 in marketing, 20–21 quality of, 296–304 value of, 296–304 customers, 291 attrition rate, 313 conversion rate, 313 current, 65 delight, 127, 305 dissatisfaction of, 305 environment for, 63–69 expectations of, 298–299, 304–307 intimacy, 104, 106 potential, 65 power shift to, privacy of, 337 recovery rate, 313 repeat, 292 retention of, 304–313 retention rate, 313 stakeholders, relationship with, 425 stealing, 223–224 strengths of, 95 of USA Today, 325 weaknesses of, 95 customer satisfaction, 304–313 customer expectations and, 304–307 customer retention and, 304–313 guarantees, 311 measurement of, 312–313 customer service efficiency vs., 300–301 at Zappos, 456–457 customer support services, 216–217 D data mining, 120 data vs information, 59 decisions/decision-making process for branding, 206–209 complexity of, 127–128 marketing and, 13–21 in marketing program, 18–19 decline stage, products, 224, 226 defensive, 107–108 demands, demographic segmentation, 140–142 derived demand, 66 desirable exchange, 10 desire, 183 development stage, products, 220 differential advantage, 35 differentiated marketing, 135–136 differentiation, 213–218, 434–435 bases for, 215–217 defined, 213 digital marketing campaigns, Coca-Cola, 539–540 direct mail, 194 direct marketing, 181 direct observation, 82–83 direct selling, 181 direct-to-consumer (DTC) advertising, 69 discounts/discounting, 171, 172 superficial, 244 trade, 172 dissatisfaction, 127 distribution of Apple, 335–336 exclusive, 176, 177 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.freebookslides.com Index intensive, 176, 177 internal, 275 of Mistine, 386 selective, 176, 177 supply chain management and, 18 of Uber Technologies, Inc., 498 of USA Today, 322 diversification/diversity, 107 in NASCAR, 438–439 population, 134 divesting option, 224, 226 do-it-yourself approach, 492 E economic growth, in external environment, 73–74 economic mission statement, 34 economic responsibilities, 232–233 economic stability, in external environment, 73–74 Edgar Database, 81 efficiency customer service vs., 300–301 elected officials, 74 employee relations, 188–189 employees, 291 commitment of, 267–268 compensation for, 267 evaluation of, 267 motivation of, 267–268 satisfaction of, 267–268 selection of, 267 self-control, 279 stakeholders, relationship with, 425–426 training of, 267 environment for customers, 63–69 external (see external environment) internal, 61–63 stakeholders, relationship with, 427–428 environmental scanning, 15 ethical climate, 250 ethical issues, in marketing program, 241–246 defined, 241 managing/controlling, 246–250 pricing-related, 243–244 product-related, 241–243 promotion-related, 245–246 supply chain-related, 244–245 ethical leadership, 249–250 ethics of BP, 398 business practices and, 377 challenges of, 239–241 marketing, 19 of marketing strategies (see of marketing strategies) Mattel’s commitment to, 376–378 social responsibility and, 19–20, 231–241 strategic planning and, 251–252 sustainability and, 235–236 training on, 248 Wyndham Worldwide, 428–429 event sponsorship, 188 evoked set, 125 evolution, 263 e-waste, 67 exchange communication during, 10 defined, 9–10 desirable, 10 rejection of, 10 two-party, 9–10 value of, 10 exclusive distribution, 176, 177 executive summary, 39 expectations of customers, 298–299, 304–307 experiencers, 143 experiential attributes, 298 experiential quality, 301, 302 experiments, 83 extended enterprise, 173 external environment, 69–79 competition in, 71–73 economic growth in, 73–74 economic stability in, 73–74 framework for analyzing, 70–71 legal and regulatory issues in, 74–75 political trends in, 74 sociocultural trends in, 76–79 technological advancements in, 75–76 external stakeholders, 291 F family branding, 209 feature articles, 188 Federal Trade Commission, 81 FedWorld, 81 financial performance, marketing and, 250–251 financial resources, 95 Fisher-Price, 375 5W Model, for customer analysis, 63–64 focus groups, 83 Ford, rivalry with Chevrolet, 414 formal marketing controls, 276–279 Formula 1, 445 form utility, 12 fragmentation, 184 free merchandise, 195 frontstage technology, 75 functional strategies, 36 G general business publications, 82 generalizations, 295 generic competitors, 71 geographic pricing, 172 geographic segmentation, 144 Giffarine Skyline Unity Co., Ltd., 388 Gillette, 475–484 future of, 484 history of innovation at, 475–480 marketing strategies of, 480–484 razors of, 477–478 government markets, 130 government relations, 80 government sources, 81 Great Recession, 4–5 green products, 237 greenwashing, 236 growth stage, products, 221–222 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 547 www.freebookslides.com 548 Index H hard costs, 131 harvesting approach, 224 herbicides, 346–347 heterogeneity, of service, 159 home shopping networks, 181 Hot Wheels, 375 human resources, 96, 267–268 I identification, as competitive analysis stage, 72 IKEA, 487–494 added amenities of, 491–492 brand image, 492 competitors, 494 concept of, 488 corporate culture of, 491 do-it-yourself approach, 492 low-cost structure of, 491 marketing of, 489–490 market opportunities of, 493 market threats, 494 production, 488–489 strengths of, 491–492 sustainability of, 492 U.S expansion, 490–491 weaknesses of, 492–493 IMC See integrated marketing communications (IMC) implementation as organizational culture, 271–272 implementation by command, 268, 270 implementation through change, 270–271 implementation through consensus, 271 in-depth information, 119 individual branding, 209 individual influences, 128 IndyCar, 443–450 marketing strategy of, 449–450 motorsports market and, 445 reunification of, 445–447 U.S open-wheel racing and, 443–445 informal marketing controls, 279, 281 information See also marketing information data vs., 59 in-depth, 119 power, 177 searching for, 124–125 secondary sources of, 79–82 informational resources, 96 information power, 177 initial purchase, 292 innovation, 90 at Gillette, 475–480 of marketing strategies, 14 innovators, 143 input controls, 276 installations, 156 institutional markets, 130 intangibility, marketing goals, 112 intangibility, of service, 159 integrated marketing communications (IMC), 19, 182–195 advertising and, 185–187 personal selling and, 189–191 public relations and, 187–189 sales management and, 189–191 sales promotion and, 191–195 strategic issues in, 183, 185 intellectual property, 338 intellectual resources, 95 intended marketing strategy, 262 intensive distribution, 176, 177 interdependency, 262–263 interest, 183 internal analysis, 15 internal data sources, 79 internal distribution, 275 internal environment, 61–63 internal prices, 275 internal products, 274 internal promotion, 275 international marketing, with Chevrolet, 415 Internet advertising, 185 introduction stage, products, 221 investor relations, 80 L labeling, 212 leadership, 102, 104, 105, 106, 268 ethical, 249–250 Leadership in Energy and Environmental Design (LEED), 236 legal business practices, 377 legal issues in external environment, 74–75 Monsanto, 348–349 legal jurisdiction, 6–7 legal resources, 96 legal responsibilities, 232–233 legitimate power, 177 life cycle costs, 303 lifetime value (LTV), 313 local touch, 368–369 loyalty brand, 210, 435–436 products, 208 loyalty programs, 192–193 M maintenance products, 156 makers, 143 manufacturer brands, 208 market deterioration of, 226 specialization in, 146 market concentration, 135–136 marketing of Apple, 335–336 challenges of, 2–7 concepts of, 7–13 decision-making and, 13–21 defined, and financial performance, 250–251 as function of business, fundamental changes to, 2–7 goals of (see marketing goals) IKEA, 489–490 introduction to, objectives of, 40, 41 opportunities in, 2–7 standard of living, link to, stimuli in, 124 strategic planning and, 15 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.freebookslides.com Index strategies (see marketing strategies) structure of, 265–266 in today’s economy, 1–23 traditional view of, 230 in Uber Technologies, Inc., 497 of USA Today, 320–322 marketing activities and decisions, 13–21 evaluating and controlling, 275–284 planning of, 13 scheduling, 281, 283, 284 strategic, 13 marketing audit, 278–281 marketing challenges of Apple, 337–340 marketing channels functions of, 174–176 structure of, 176–177 supply chain management and, 172–173 marketing ethics, 19 regulating, 246, 248 and strategy, 237–239 marketing goals, attainability, 111 comprehensiveness, 111–112 consistency, 111 developing, 109–115 intangibility, 112 marketing plan/planning and, 40, 41 marketing implementation See also marketing activities approaches to, 268–272, 273 by command, 268, 270 control and, 20, 260–284 defined, 260 elements of, 264–268 of functional strategies, 36 internal marketing and, 272, 273–275 marketing plan/planning and, 36, 42–43, 262–264 as organizational culture, 271–272 strategic issues in, 262–268 through change, 270–271 through consensus, 271 marketing information, 56–84 collection of, 79–84 customer environment, 63–69 external environment (see external environment) internal environment, 61–63 introduction to, 56 situational analysis, 58–60 marketing mix, marketing objectives assignment of responsibility, 114 continuity, 113 developing, 112–114 marketing plan/planning and, 40, 41 time frame, 113–114 marketing plan/planning, 27–50 business-unit strategy for, 34–35 comprehension of, 38 consistency of, 39 control of, 36–37, 43 corporate strategy for, 34–35 customer-focused, 46–47 defined, 15 evaluation of, 36–37, 43 executive summary and, 39 flexibility of, 39 functional goals of, 35–36 functional strategy of, 36 implementation of, 42–43 introduction to, 27 logical manner of, 39 marketing goals and, 40, 41 marketing implementation and, 36, 42–43, 262–264 marketing objectives and, 40, 41 marketing strategy for, 42 objective goals of, 35–36 organizational aspects of, 45–46 of organizational mission, 30–34 of organizational vision, 30–34 process for, 27, 29–37 purpose of, 44–45 requirements for, 27 significance of, 44–45 situation analysis of, 39–40 structure of, 37–44 SWOT analysis of, 40 tactical, 15 marketing program, 153–195 decision-making and, 18–19 defined, 153 ethical issues in, 241–246 integrated marketing communications in, 182–195 introduction to, 153 pricing strategy in, 162–172 product strategy in, 155–162 supply chain strategy in, 172–182 marketing strategies, 230–252 BP, 404 challenges of, 21–23 decisions about, 16–19 development of, ethics and, 231–241 Gillette, 480–484 implementation of, 1, 20 of IndyCar, 449–450 innovative, 14 intended, 262 introduction to, 230–231 for marketing plan/ planning, 42 marketing strategies and, 231–241 market specialization as, 146 mass market targeting as, 146 of Netflix, 471 of New Belgium Brewing, 365 people-driven, 21–22 planning of, product specialization as, 146 realized, 262 selective targeting as, 146 Sigma Marketing, 517–523 single segment targeting as, 145–146 social responsibility in, 231–241 traditional ideas about, markets defined, 8–9 demand within, 166 four P’s of, market segmentation, 133–138 consumer (see consumer market segmentation) Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 549 www.freebookslides.com 550 Index market segmentation (Continued ) criteria for successful, 138 defined, 17, 133 identification of, 139–145 individualized approaches to, 136–138 potential of, 226 target marketing and, 17, 18 traditional approaches to, 133–136 market share, 166, 223 marketspace, mass customization, 137 mass fragmentation, mass marketing, 134–135 mass market targeting, 146 Mattel, 373–381 ethical responsibilities of, 376–378 future of, 380–381 Global Manufacturing Principles, 378 product recalls faced by, 378–379 products, 374–376 social responsibility of, 376–378 vs MGA Entertainment, Inc., 380 Mattel Children’s Foundation, 377–378 maturity stage, products, 223–224 media advertising, 184 media fragmentation, media to advertise, New Belgium Brewing products, 369–370 media usage, changes in, metamarket, metamediary, MGA Entertainment, Inc., Mattel vs., 380 mission/mission statement customer-focused, 33–34 defined, 30 elements of, 30, 32 width and stability, 32–33 Mistine, 384–393 competitors of, 387–388 direct selling operations, 388–393 future of, 392–393 marketing program for, 384–387 product, 385 monetary costs, 302–303 Monsanto, 342–352 and biotechnology, 343–344 corporate responsibility at, 349 environmental effects of, 345–346 ethical issues, 347–348 future of, 351–352 history of, 342–343 legal issues, 348–349 philanthropy, 351 and safety implications of GM food, 344–345 sustainability of, 349, 350–351 motorsports market, 445 multisegment approach, 135 mutual dependence, 131–132 N NAFTA See North American Free Trade Agreement (NAFTA) NASCAR (National Association for Stock Car Auto Racing), 431–439 branding strategy of, 433–434 challenges of, 436–439 corporate sponsors of, 432 history of, 431–432 motorsports market for, 445 National Quality Research Center at the University of Michigan, 22 near field communication (NFC), 76 needs, recognition of, 123–124 Netflix, 465–472 business model of, 468–469 competitors with, 469–471 distribution centers, 467 future of, 472 history of, 465–466 marketing strategy of, 471 strategy of, 466 New Belgium Brewing, 355–362 brand/branding of, 366–369 history of, 355–357 marketing strategies of, 365 media to advertise, 369–370 social responsibility of, 357–362 sustainability of, 370–371 news releases, 188 New York Times, 326 NFC See near field communication (NFC) niche marketing, 136 nonmonetary costs, 302–303 nontraditional channels, 181–182 North American Free Trade Agreement (NAFTA), 75 O odd pricing, 171 on-demand information, 323–324 on-demand news, 323–324 one-time purchases, 189 one-to-one marketing, 136–137 online social networking, 17 operating products, 156 operational excellence, 102 opinion leaders, 128 order processing, 132 organizational characteristics, 145 organizational culture, 63 organizational mission, 30–34 organizational resources, 96 availability of, 62 organizational structures, traditional vs marketoriented, 49 organizational vision, 30–34 organizations, types of, 144 output controls, 278–279 outsourcing, 180–181 P packaging, 212 patents, 347–348 people, 267–268 people-driven marketing strategies, 21–22 perceived differential advantages, 222 perceived necessities, 167 perceived value, 164–165 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.freebookslides.com Index perceptual map, 214, 215 periodical sources, 81–82 perishability, of service, 159 permission marketing, 137–138 personal characteristics, 145 personal selling, 189–191 pesticides, 346–347 philanthropy corporate, 80, 234–235 Monsanto, 351 strategic, 234 physical distribution, 173 place utility, 12 point-of-purchase (POP) promotion, 193 policy analysis, 80 political trends, in external environment, 74 population diversity, 134 portfolio, products, 155–158 positioning branding and, 203–226 defined, 213 differentiation and, 213–218 strategies for, 217–218 possession utility, 12 postpurchase doubt, 127 power shift to customer, predatory pricing, 243–244 premiums, 193 press conferences, 188 press releases, 188 prestige, 166 prestige pricing, 170 price discrimination, 243 price elasticity, 166–168 price fixing, 243 price lining, 171 prices/pricing of Apple, 335 around world, 163 base, 170–172 breakeven, 164 bundling, 171 cost-plus, 164 decisions about, 18 differences, 167 and ethical issues, 243–244 geographic, 172 Gillette strategy, 481–484 internal, 275 of Mistine, 385–386 non-price strategies, 170–171 objectives, 165–166 odd, 171 penetration, 170 predatory, 243–244 prestige, 170 reference, 171 revenue and, 165 service products, 168–169 skimming, 170 strategy (see pricing strategy) structure of, 226 transfer, 172 of Uber Technologies, Inc., 498–499 value-based, 170 pricing strategy, 162–172 base, 170–172 key issues in, 162–168 for service products, 168–169 primary data collection, 82–84 privacy, 5–6 private-label brands, 208 problem recognition, 132 process controls, 276, 277–278 process materials, 156 product competitors, 71 product descriptors, 215–216 product leadership, 102, 104, 105, 106 product line, 157 product mission statement, 33 product mix, 157 of Chevrolet, 408–413 product-related ethical issues, 241–243 products acceptance, 208 classifications of, 11–12 of Coca-Cola, 535–536 complementary, 167 convenience, 156 core, 296–297, 301, 302 decline stage of, 224, 226 defined, 10–13 development stage of, 220 differentiation, 168 digital, 11 and ethical issues, 241–243 events as, 11 experiences as, 11 features of, 215–216 financial property as, 11 four P’s of, 16 goods as, 11 green, 237 growth stage of, 221–222 ideas as, 11 identification of, 207 IKEA, 488–489 information as, 11 internal, 274 introduction stage of, 221 life cycle of, 219–220 loyalty, 208 maintenance, 156 market position of, 226 Mattel, 374–376 maturity stage of, 223–224 Mistine, 385 new, strategy for development, 160–162 operating, 156 organizations as, 11–12 people as, 11 perceived benefits, 167 places as, 11 portfolio for, 155–158 positioning of, 19 purchase of, 66, 68–69 real property as, 11 repair, 156 selection of, 4, 68 services as, 11 shopping, 156 specialization as, 146 specialty, 156 specifications for, 132 strategy (see product strategy) substitute, 166 supplemental, 297–298, 301, 302 Uber Technologies, Inc., 497–498 unsought, 156 usage of, 65–66 USA Today, 321 utilities of, 12–13 product strategy, 155–162 for new products development, 160–162 for product portfolio, 155–158 for service products, 158–160 profit-oriented objectives, 166 promotion of Apple, 335 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 551 www.freebookslides.com 552 Index promotion (Continued ) of Belle Meade Plantation, 530–531 ethical issues related to, 245–246 internal, 275 of Mistine, 386–387 of Uber Technologies, Inc., 499 of USA Today, 321–322 proposals, 132 psychographic segmentation, 142–144 psychological characteristics, 145 psychological utility, 12–13 public relations, 187–189 pull strategy, 185 purchasing decisions, 126 push strategy, 185 Q quality defined, 296 delivering superior, 298–299 role of, 296–298 R radio frequency identification (RFID), 76, 178–179 raw materials, 156 reality, 217 realized marketing strategy, 262 real necessities, 167 rebates, 192 rebranding, 225–226 reciprocity, 131 recruitment, of salespeople, 190 Redbox, 469–470 reference groups, 128 reference pricing, 171 referent power, 177 referrals, 313 regulatory issues, in external environment, 74–75 relational resources, 96 relationship capital, 291 relationship marketing, 20–21 relationships client-based, 159 intensity of, 145 repair products, 156 repeat customer, 292 reputational resources, 96 research and analysis, 15–16 reseller markets, 130 resources, 266 response, as competitive analysis stage, 72 revenue, prices and, 165 reward power, 177 RFID See radio frequency identification (RFID) risks, 207, 282 S sales force, 190, 191 sales incentives, 195 sales management, 189–191 strategic implementation of, 190 sales promotions business/trade, 194–195 consumer, 192–194 defined, 191 integrated marketing communications and, 191–195 samples, 192 Sarbanes-Oxley Act 2002, 74 satisfaction, 127 Scentsy, Inc., 507–513 background of, 507–508 business model of, 509 challenges for, 512–513 as independent consultants, 510–511 selling party plan strategy of, 509–510 Scentsy Family Foundation, 511–512 secondary information sources, 79–82 security, 5–6 selective distribution, 176, 177 selective targeting, 146 self-image, 208 separation, 263 shared goals and values, 264–265 shareholders, relationship with stakeholders, 426 shopping efficiency, 207 shopping products, 156 Sigma Marketing, 515–523 desk calendar of, 516–517 marketing strategies of, 517–523 total service package of, 519–520 single segment targeting, 145–146 situational analysis, 16, 29, 56 issues regarding, 57–60 of marketing plan/planning, 39–40 SWOT analysis and, 89, 91 situational influences, 128–129, 167–168 slotting allowances, 177 social communication, 313 social control, 281 social entrepreneurship, 235 social influences, 128 social mission statement, 34 social networking, 17 social responsibility challenges of, 239–241 defined, 232 dimensions of, 232–235 ethics and, 19–20 marketing strategies and, 231–241 of Mattel, 376–378 of New Belgium Brewing, 357–362 strategic planning and, 251–252 sustainability and, 235–236 sociocultural trends, in external environment, 76–79 soft costs, 131 sorting, as marketing channel function, 175 specialty products, 156 stakeholder orientation, 250–251 stakeholders marketing strategies and, 250–251 of Wyndham Worldwide, 424–428 standard of living, status quo, 166 strategic business unit (SBU), 35 strategic focus, 106, 107–109 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.freebookslides.com Index strategic philanthropy, 234 strategic planning marketing and, 15 opportunities for, 97–99 situation analysis of, 29 social responsibility and, 251–252 strengths of, 97 SWOT analysis and, 97–102 SWOT matrix and, 99–102 threats and, 97–99 weaknesses of, 97 strategy defined, 15 marketing ethics and, 237–239 strategy canvas, 108–109, 214–215 strengths, of strategic planning, 97 strivers, 143 subscription services, 81 substitute products, 166 superficial discounting, 244 supplemental products, 297–298, 301, 302 supply chain, 18 defined, 173 and ethical issues, 244–245 management of, 172–173, 338–339 power in, 177–178 supply chain partners, 291 supply chain strategy, 172–182 issues in, 173–178 trends in, 178–182 surveys, 83 survivors, 143 sustainability of Apple, 339–340 of BP, 399–400 corporate, 80 ethics and, 235–236 of Monsanto, 349, 350–351 of New Belgium Brewing, 370–371 sweepstakes, 193–194 SWOT analysis benefits of, 91 directives for, 92 effectiveness of, 89, 91 internal vs external issues, 96 issues, from customers’ perspective, 93–95 marketing plan/planning and, 40 potential issues to consider in, 98 productive, 91–96 situational analysis and, 89, 91 strategic planning and, 97–102 SWOT matrix, 99–102 quantitative assessment of, 101 and strategy canvas, 109 symbolic attributes, 298 T tactical planning, 15 target markets defined, 17 market segmentation and, 17, 18 strategies, 145–147 Tennessee, wine industry in, 527–528 thinkers, 143 time frame, marketing objectives, 113–114 time utility, 12 total budget competitors, 71 total expenditure, 166–167 total service package, of Sigma Marketing, 519–520 trade allowances, 194–195 trade associations, 82 trade discounts, 172 trade sales promotions, 194–195 training assistance with, 195 salespeople, 190 transactional costs, 302 transactional marketing, 20, 21 transfer pricing, 172 turnaround, 107 two-party exchange, 9–10 U Uber Technologies, Inc., 496–503 background of, 497 challenges for, 499–501 distribution of, 498 in France, 502 in Germany, 502–503 in India, 502 marketing program, 497 pricing strategy, 498–499 products, 497–498 promotion of, 499 unsought products, 156 U.S open-wheel racing, 443–445 U.S Small Business Administration, 81 USA Today competition with, 326–327 customers of, 325 growth of, 318–320 history of, 318–320 information provided by, 323–324 launching of, 319–320 marketing of, 320–322 news provided by, 323–324 online, 322–323 present and future of, 324–325 utility defined, 12 form, 12 place, 12 possession, 12 psychological, 12–13 time, 12 V VALS, psychographic segmentation tool, 142–144 value-based pricing (EDLP), 170 value proposition, 4–5 values brand, 209–212 competing on, 303–304 cultural, 78 defined, 164, 299 of exchange, 10 perceived, 164–165 role of, 299, 301–303 shared goals and, 264–265 variety, product mix, 157 vending, 181 vendors, 132 vision/vision statement, 30 volume-oriented objectives, 166 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 553 www.freebookslides.com 554 Index W Wall Street Journal, 326 wants, 123, 124 weaknesses, of strategic planning, 97 white papers, 188 work environment, of Zappos, 457–459 Wyndham Worldwide, 422–429 background on, 422–423 branding strategy of, 424 compliance programs of, 428–429 ethical programs of, 428–429 future of, 429 history of, 422–423 stakeholder orientation of, 424–428 Y yield management, 169 Z Zappos, 454–463 business model of, 455–457 corporate culture at, 457–459 corporate social responsibility of, 459 future of, 462–463 history of, 454–455 marketing challenges, 460 merger with Amazon, 461 operating philosophy of, 455 structure of, 459–460 zone of tolerance, 305–307 Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 www.freebookslides.com This is an electronic version of the print textbook Due to electronic rights restrictions, some third party content may be suppressed Editorial review has deemed that any suppressed content does not materially affect the overall learning experience The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN, author, title, or keyword for materials in your areas of interest Important notice: Media content referenced within the product description or the product text may not be available in the eBook version Copyright 2017 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part WCN 02-200-203 ... SEGMENTATION, AND TARGET MARKETING 119 THE MARKETING PROGRAM 153 BRANDING AND POSITIONING 203 ETHICS AND SOCIAL RESPONSIBILITY IN MARKETING STRATEGY 230 MARKETING IMPLEMENTATION AND CONTROL 260... FOCUS Given this marketing landscape, Marketing Strategy: Text and Cases, 7th Edition provides a practical, straightforward approach to analyzing, planning, and implementing marketing strategies... create a coherent strategy Our approach in Marketing Strategy: Text and Cases, 7th Edition is also grounded in the development and execution of the marketing plan Throughout the text, we provide