Principles of marketing 7e kotler adam volkow

principles of marketing 7e Armstrong Adam Denize Volkov Kotler Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e email principles of marketing 7e Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e Dedication From Gary Armstrong To my family – Kathy, KC, Keri, Mandy and Matt From Stewart Adam To my family – Maureen, Vanessa, Melissa, Michael, and my daughter-in-law, Yolanda From Sara Denize To my husband Leo, my children Pieter, Wendy and Julie, and all the wonderful little people in my life, Adele, Remy, James, Alicia, Jaz and Luca – with love From Michael Volkov To my family who are my inspiration, my guiding lights and loves – my wife Arabella, my girls Emma, Sarah and Cordelia, and my parents Lola and Boris Thank you all for everything! From Philip Kotler To my wife Nancy, my daughters Amy, Melissa and Jessica, and my sons-in-law, Joel, Steve and Dan – with love Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e email principles of marketing 7e Armstrong Adam Denize Volkov Kotler Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018 Pearson Australia 707 Collins Street Melbourne, VIC 3008 www.pearson.com.au Authorised adaptation from the United States edition, entitled MARKETING: AN INTRODUCTION, 13th edition, ISBN: 013414953X by ARMSTRONG, GARY; KOTLER, PHILIP, published by Pearson Education, Inc, Copyright 2017 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 Seventh adaptation edition published by Pearson Australia Group Pty Ltd., Copyright © 2018 The Copyright Act 1968 of Australia allows a maximum of one chapter or 10% of this book, whichever is the greater, to be copied by any educational institution for its educational purposes provided that that educational institution (or the body that administers it) has given a remuneration notice to Copyright Agency Limited (CAL) under the Act For details of the CAL licence for educational institutions contact: Copyright Agency Limited, telephone: (02) 9394 7600, email: info@copyright.com.au All rights reserved Except under the conditions described in the Copyright Act 1968 of Australia and subsequent amendments, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner Senior Portfolio Manager: Elise Stone Development Editor: Anna Carter Project Manager: Anubhuti Harsh Production Manager: Abhishek Agarwal, iEnergizer/Aptara®, Ltd Product Manager: Erin Nixon Content Developer: Katherine Horsey Rights and Permissions Editor: Lisa Woodland Lead Editor/Copy Editor: Helen Eastwood Proofreader: iEnergizer/Aptara®, Ltd Indexer: iEnergizer/Aptara®, Ltd Cover and internal design by Pier Vido Design Concept map illustrations: Bruce Rankin Cover illustration © Diana Johanna Velasquez/123RF Typeset by iEnergizer/Aptara®, Ltd Printed in Malaysia 21 20 19 18 17 National Library of Australia Cataloguing-in-Publication entry Creator: Armstrong, Gary (Gary M.), author Title: Principles of marketing / Gary Armstrong, Stewart Adam, Sara Denize, Michael Volkov, Philip Kotler Edition: 7th edition ISBN: 9781488611841 (paperback) ISBN: 9781488611865 (eBook) Notes: Includes index Subjects: Marketing—Textbooks Marketing—Management—Textbooks Customer relations—Management— Textbook Other Creators/Contributors: Adam, Stewart, author Denize, Sara M (Sara Marion), author Volkov, Michael, author Kotler, Philip, author Every effort has been made to trace and acknowledge copyright However, should any infringement have occurred, the publishers tender their apologies and invite copyright owners to contact them Pearson Australia Group Pty Ltd ABN 40 004 245 943 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e email v Brief contents Prefacexiv About the authors xxii Part Defining marketing and the marketing process 1 Marketing: Creating and capturing customer value 2 Company and marketing strategy: Partnering to build customer engagement, value and relationships Part Understanding the marketplace and consumers 3 The marketplace and customers: Analysing the environment 4 Marketing analytics: Gaining customer insights 5 Buyer behaviour: Understanding consumer and business buyers Part Designing a customer-driven strategy and mix 6 Customer-driven marketing strategy: Creating value for target customers 7 Products, services and brands: Offering customer value 8 New products: Developing and managing innovation 9 Pricing: Capturing customer value 10 Placement: Customer value fulfilment 11 Communicating customer value: Advertising and public relations 12 Personal selling and sales promotion: Creating value in relationships 13 Direct and digital marketing: Interactivity and fulfilment Part Extending marketing 14 Sustainable marketing: Social responsibility, ethics and legal compliance 36 65 66 96 130 167 168 198 230 256 290 340 374 404 439 440 Appendix 1  Case studies 471 Appendix 2  The marketing plan: An introduction 484 Appendix 3  Marketing analytics spotlights 492 Appendix 4  Careers in marketing 516 Glossary522 Index534 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e vi Contents Prefacexiv A valuable learning package xix Resources for educators and students xxi About the authors xxii The development story xxv Part Defining marketing and the marketing process Chapter Marketing: Creating and capturing customer value Learning Objectives Concept map What is marketing? 2 Marketing defined 4 The marketing process Understanding the marketplace and customer needs Customer needs, wants and demands 5 Market offerings: Goods, services and experiences6 Customer value and satisfaction Exchanges, transactions and relationships8 Markets8 Designing a customer-driven marketing strategy Selecting customers to serve 9 Choosing a value proposition 10 Marketing management orientations 11 Preparing an integrated marketing plan and program 13 Engaging customers and managing customer relationships Customer relationship management 15 15 Engaging customers 16 Consumer-generated marketing 17 Partner relationship management 18 Capturing value from customers Creating customer loyalty and retention 18 18 Growing share of customer 19 Building customer equity 20 Building the right relationship with the right customers 20 The changing marketing landscape  The digital age: Online, mobile and social media marketing 21 The challenging world economy 23 Measuring marketing’s contribution to organisational performance 24 Marketing in Action 1.1 Are marketers really that ‘lousy at selling marketing’? The growth of not-for-profit marketing 25 26 21 Rapid globalisation 26 Sustainable marketing: The call for more environmental and social responsibility 28 So, what is marketing? Pulling it all together 28 Student Learning Centre • Reviewing the learning objectives • Discussion questions • Critical thinking exercises • Navigating the key terms • Mini cases 1.1 Digital technologies in marketing 1.2 Customer-driven marketing strategy 1.3 Marketing analytics at work 1.4 Ethical reflection • References 31 32 32 32 33 33 33 34 34 34 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e email Contents Part Understanding the Chapter Company and marketing strategy: Partnering to build customer engagement, value and relationships Learning Objectives Concept map 36 36 37 Company-wide strategic planning: Defining marketing’s role Defining a market-oriented mission 38 38 Setting company objectives and goals marketplace and consumers 65 39 Chapter The marketplace and customers: Analysing the environment Learning Objectives Concept map 66 66 67 The marketing environment 68 The company’s microenvironment The company 68 68 Marketing in Action 2.1 Strategic planning involves having the right people 40 Marketing intermediaries Designing the business portfolio Analysing the current business portfolio 41 42 Competitors70 Developing strategies for growth and downsizing44 Customers71 Suppliers69 Planning marketing: Partnering to build customer relationships 45 Partnering with other company departments 45 Partnering with others in the marketing system46 Marketing strategy and the marketing mix  Customer value-driven marketing strategy 47 48 Developing an integrated marketing mix 50 Managing the marketing effort  Marketing analysis 51 51 Marketing planning 53 Marketing implementation 54 Marketing department organisation 54 Marketing control 55 Measuring and managing return on marketing investment  56 Student Learning Centre • Reviewing the learning objectives • Discussion questions • Critical thinking exercises • Navigating the key terms • Mini cases 2.1 Marketing strategy 2.2 Customer focus 2.3 Marketing analytics at work 2.4 Ethical reflection • References 59 59 60 60 60 60 61 61 62 62 69 Publics70 The company’s macroenvironment Demographic environment  72 72 Economic environment 79 Natural environment 80 Technological environment 83 Political and social environment 83 Marketing in Action 3.1 The quite real virtual experience Cultural environment 84 87 Responding to the marketing environment 90 Student Learning Centre • Reviewing the learning objectives • Discussion questions • Critical thinking exercises • Navigating the key terms • Mini cases 3.1 Microeconomic environment 3.2 Technological environment 3.3 Marketing analytics at work 3.4 Ethical reflection • References 91 91 92 92 92 92 93 93 94 94 Chapter Marketing analytics: Gaining customer insights Learning Objectives Concept map 96 96 97 Marketing information and customer insights 98 Marketing information and today’s ‘big data’ 98 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e vii viii Contents Marketing analytics 99 Model of consumer behaviour 132 Managing marketing information 99 Characteristics affecting consumer behaviour  133 Marketing in Action 4.1 Netflix streams success with big data and marketing analytics 100 Assessing marketing information needs 102 Developing marketing information Internal data 103 103 Competitive marketing intelligence 104 Marketing research 105 Defining the problem and research objectives106 Developing the research plan 106 Primary data collection 109 Implementing the research plan 118 Interpreting and reporting the findings 118 Analysing and using marketing information 119 Customer relationship management 119 Distributing and using marketing information120 Other marketing information considerations121 Marketing research in small businesses and not-for-profit organisations 121 International marketing research 121 Public policy and ethics in marketing research123 Student Learning Centre • Reviewing the learning objectives • Discussion questions • Critical thinking exercises • Navigating the key terms • Mini cases 4.1 Gathering data 4.2 Customer insights 4.3 Marketing analytics at work  4.4 Ethical reflection • References 125 126 126 126 126 126 127 127 128 128 Chapter Buyer behaviour: Understanding consumer and business buyers Learning Objectives Concept map 130 130 131 Consumer markets and consumer buyer behaviour  132 Marketing in Action 5.1 Consumer behaviour: A whole life story 139 The buyer decision process Stages in the buyer decision process 145 145 The buyer decision process for new products Stages in the adoption process 148 148 Individual differences in innovativeness149 Influence of product characteristics on rate of adoption Business markets and business buyer behaviour Business markets  149 150 151 Business buyer behaviour  153 The business buying process  156 E-procurement: Buying on the internet  159 Business-to-business digital and social media marketing 160 Student Learning Centre • Reviewing the learning objectives • Discussion questions • Critical thinking exercises • Navigating the key terms • Mini cases 5.1  Consumer behaviour  5.2  Business buyer behaviour 5.3  Marketing analytics at work 5.4  Ethical reflection • References 161 161 162 162 163 163 163 163 164 164 Part Designing a customer- driven strategy and mix 167 Chapter Customer-driven marketing strategy: Creating value for target customers Learning Objectives Concept map 168 168 169 Customer-driven marketing strategy  170 Market segmentation Segmenting consumer markets 171 171 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e email Contents Marketing in Action 6.1 ALDI: Offering a ‘same-for-less’ value proposition Segmenting business markets 174 178 Segmenting international markets 179 Requirements for effective segmentation 179 Market targeting  Evaluating market segments 180 180 Selecting target market segments 181 Socially responsible target marketing 185 Differentiation and positioning  Positioning maps 186 186 Choosing a differentiation and positioning strategy 187 Communicating and delivering the chosen position 192 Student Learning Centre • Reviewing the learning objectives • Discussion questions • Critical thinking exercises • Navigating the key terms • Mini cases 6.1  Target marketing  6.2  Differentiation 6.3  Marketing analytics at work 6.4  Ethical reflection • References What is a product?  Products, services and experiences 193 193 194 194 194 194 195 196 196 197 Branding strategy: Building strong brands  218 Brand equity 218 Building strong brands 220 Managing brands 224 Student Learning Centre • Reviewing the learning objectives • Discussion questions • Critical thinking exercises • Navigating the key terms • Mini cases 7.1  Industrial products 7.2  Packaging 7.3  Marketing analytics at work 7.4   Ethical reflection • References 225 226 226 226 227 227 227 227 228 228 Chapter New products: Developing and managing innovation Learning Objectives Concept map 230 230 231 New-product development strategy 232 The new-product development process  Idea generation 232 232 235 198 198 199 Marketing strategy development 236 Business analysis 237 Product development 237 200 200 Test marketing 238 202 Services marketing  Nature and characteristics of a service 216 Concept development and testing Product and service classifications Product mix decisions 215 Managing service differentiation 234 201 Marketing in Action 7.1 Headspace and the unsought product Product line decisions The service–profit chain Idea screening Levels of products and services Product and service decisions Individual product and service decisions 214     Chapter Products, services and brands: Offering customer value Learning Objectives Concept map Marketing strategies for service firms 205 205 206 211 212 213 213 Commercialisation238 Managing new-product development  239 Customer-centred new-product development239 Team-based new-product development 240 Systematic new-product development 240 Product life-cycle strategies  241 Marketing in Action 8.1 Mattel: Managing the fun and games Introduction stage 242 244 Growth stage Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e 245 ix 536 www.freebookslides.com Index butterflies 20–1 buyer(s) business, see business buyer behaviour; business buyer decisions consumer, see consumer buyer behaviour; consumer buyer decision process omni-channel 314 relative power of  181 buying centre 154–5 buzz marketing  136 by-product pricing  270, 271 CableChick.com.au 277 Cadbury  27, 188 Café Bean  163 call objectives  390 call plan  385 call reports  387 Camp Quality  216–17 Campbells Cash & Carry  318 capital items  203 captive-product pricing  270 careers, in marketing  516–21 curriculum vitae (CV)  518 interviews 519 job descriptions  517 self-assessment and counselling  516–17 Carlzon, Jan  25 Carrefour  250, 319 case studies  471–83, see also Mini cases Patagonia 472–4 Realestate.com.au 478–80 supermarket wars  475–7 Tasmanian Walking Company  481–3 cash-and-carry wholesalers  328 cash cows  42 cash discount  272 cash rebates  275 cash refunds  395 cash-van operators  328 category killer 315 Caterpillar 263–4 causal research 106 cause-related marketing  86–7 central business district (CBD) 324 cents-off deals  395 chain ratio method  504 chain stores 320 Chambers of Commerce  92 channel conflict 304 horizontal 304–5 vertical 305 channel differentiation  188 channel levels 302 pricing across  283–4 pricing within  282–3 checkout scanners  118 chief marketing officer (CMO)  54 chief privacy officer (CPO)  124 children influence on family buying decisions  137 socially responsible targeting of  185, 196 China  278–9, 365, 452, 459 Chouinard, Yvon  473 Circuit Layouts Act 1989  465 Cisco Systems  160 citizen-action publics  70 Clark, Eugene  462 Cleanest Line Common Thread initiative, Patagonia 474 climate change  28 closed-end questions  117 closing, sales presentation 391 Cloud-based app  386, 391 club marketing programs  16 cluster (area) sample  117 co-branding 222–3 Coca-Cola  351, 465 advertising  352, 364 brand value  219 branding 208 branding approaches for China  249 customer insights  99 domain name  412 logo 188 manufacturer-sponsored wholesaler franchise networks  307 market segmentation  179 marketing support  70 niche products  182–3 positioning 186 rebranding for international markets  248 website  412, 507 Coca-Cola Amatil (CCA)  307 codes of practice ethics and professional conduct  459 marketing research  124 responsible advertising  185 Code of Advertising and Marketing to Children (AANA) 185 Code of Ethics (AANA)  185 cognitive component, of attitude  144 cognitive dissonance 147 Coles Group  320 Coles magazine  346 Coles Supermarkets  158, 317, 448 administered vertical marketing network 308 brand extensions  223 brand value  219 content marketing  348 distribution centres  297 EDI links with suppliers  300 FlyBuys  120, 394 interactive marketing  216 internal marketing  216 Lever-Rexona direct link with  294 market segmentation  172, 174 in price wars  475–6 supply chain  294 value chain  46 Colgate ideas marketing  204 target marketing  185 combination stores 316 commercial data  108 commercial online databases  104, 108 commercialisation 238–9 commercials, see advertising commission merchants  329 Commonwealth Bank brand value  219 differentiation 188 logo 188 communication effects of advertising  363 communications, history  435 comparative advertising  352, 365 compensation, salesforce  384 competence, as personality trait  140 Competition and Consumer Act 2010  444 and Australian Consumer Law (Schedule 2)  85 enforcement of  85 pricing regulations  282–3, 449 scope of  462–5 competition-based pricing 263–4 competition law  462 competitive advantage 187 and customer insights  98 identifying 187–8 innovation for  476–7 selecting 189–90 competitive marketing intelligence  99, 104–5 competitive markets, and pricing  266 competitive-parity method (budgeting) 353–4 competitors  70, 181 measuring marketing performance relative to  501–3 monitoring relationships  462 price change reactions  280–1 product life-cycle stages  245, 247 as source of new-product ideas  233 complaints handling 462 measuring 501 complex salesforce structure  379 compliance management system  461 computer-assisted telephone interviewing (CATI) 113 ComScore 436 conative component, of attitude  144 concentrated (niche) marketing  182–3 concept testing 235–6 confidential information 465 conformance quality, product  207 congestion tolls  447 Connexity Hitwise  428 consumer(s), see also customer(s) affluent 73 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e email www.freebookslides.com                                                                                                         customer-centred new-product development 239 customer-centred performance measurement 56, 57 customer databases 422–5, see also data mining evaluation 429–30 fields 422, 423 identifying prospects 424 loyalty programs 424 privacy concerns 423 reactivating customer purchases 424 targeting customers for particular offers 424 customer-driven marketing 13 strategy 9–13, 33, 48–50, 170, 170 customer-engagement marketing 16–17 customer equity 20 and brand equity 219 determines marketing ROI 56, 58 customer evangelists 136 customer insights 98, 99, 120, 127 customer lifetime value 19, 56, 429 customer loyalty 18–19, 394, 454 market segmentation by 177–8 measuring 498–9 and service−profit chain 215 customer-managed relationships 8, 17 customer management organisation 55 customer-perceived value 15, 259, 273 customer profitability 20–1, 499 customer relationship(s) 4, 393 after-sale support services 211 building 20–1, 377, 379, 382–3, 392, 454 four Cs 51 groups 20–1 interactive 136–7 levels and tools 16 marketing concept 12–13 partnering to build 45–6 partnerships to produce value for customers 68–9 planning 484 and profit 20–1, 297 with salesforce 377, 379, 382–3, 393 customer relationship management (CRM) 15–16, 18, 119 and database marketing 429 and direct and digital marketing 429 long-term view 20 marketing information, analysing and using 119–20 customer retention 18–19 customer salesforce structure 379 customer satisfaction 4, 7, 15–16, 147–8 measuring 494–5, 501–2 pan-company marketing 25 relative to competitors 501–2 and service−profit chain 215 Customer Satisfaction Index (CSI), Transport for NSW 34 customer-segment pricing 272                                                                                                             corporate and/or brand website 411 corporate chains 320 corporate identity materials 367 corporate image advertising 203, 204 corporate marketing ethics policies 457 corporate social responsibility (CSR) 473–4 corporate vertical marketing network (VMN) 305, 335–6 corruption 458–9 cost-based pricing 259, 261–3, 508 cost-plus pricing/markup pricing 262, 444, 508 Costco 318, 320, 322, 326, 443 costing, target 265 costs fixed (overhead) 261, 262, 507 relevant 508 supply chain 294 sustainability 469 total 261, 507–8 variable 261, 262 coupons 394–5, see also discounts cradle-to-cradle practices 451–2 creative concept 357 cross-docking 294 cross-market segmentation 179 cross-referencing of data 431 crowdsourcing 234 Crumpler, after-sale service 211 cues 143 cultural environment 87–90 cultural groups 134–5 cultural pollution 448 cultural shifts 87, 134 cultural values brand positioning 220 core 87 secondary 87–90 culture 133–4 factors, in international market segmentation 179 influence on consumer behaviour 133, 133–5 and international marketing research 122 customer(s), see also consumer(s) as actors in microenvironment 68 consumers vs 478 details, security of 34 engaging 16–17 marketing’s impact on 443–6 needs/wants/demands 5–6, 12, see also wants; needs new 10, 497–8 price change reactions 280 product life-cycle stages 247 repeat 10, 18–19 rights 450 selection 9–10 share of customer 19–20 short-run wants vs long-run welfare 13 as source of new-product ideas 233–4                                                                                                             customers vs 478 disadvantaged, poor service to 446 mature 134–5, 139 Consumer Affairs Victoria, ‘Stevie’s Scam School’ campaign 155 consumer attitudes awareness 492–3 brand/product knowledge 497 perceived differentiation 495–6 satisfaction 494–5 consumer buyer behaviour 132 consumer product and 202 conversion 499–500 factors influencing 133, 133–45 measuring 497–500 model of 132, 133 consumer buyer decision process 145, 145 evaluation of alternatives 146–7 information search 146 need recognition 145–6 for new products 148–50 post-purchase behaviour 147–8 purchase decision 147 roles in 148 consumer confidence 23, 326 Consumer Credit Code 464 consumer expressions 360 consumer-generated advertising messages 359–60 consumer-generated marketing 17–18 consumer impressions 360 consumer information 146, 342, 408, 450 consumer market 71, 132 segmenting, see market segmentation consumer-oriented marketing 454 consumer products 202–3 consumer promotions 393, 394–6 consumer protection 85, 444, 446, 450, 462, see also product safety consumer spending 23 consumerism 449–50, 468 content analysis 113 content marketing 345, 346–7 contests (promotions) 396, see also sales contests contextual advertising 416 continuity (ads) 363 continuous inventory replenishment 300 contract and consumer law 462 contractual vertical marketing network (VMN) 305, 306–8 control theory 492 convenience products 202 convenience sample 117, 121 convenience stores (C-stores) 315, 318 conventional marketing channels 305, 306 cookies 428 copyright 465 core beliefs 87 core customer value 201 Index Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e 537 538 www.freebookslides.com Index customer service  296 customer-solution approach  390 customer-to-company interaction 421 customer-to-customer interaction 420 customer value  core 201 customer-perceived value 15, 259, 273 four Cs  51 in marketing process  4–5, marketing strategy based on  48–50 outcomes of  4–5, 18–21, 460 partnerships to produce  45–6, 68–9 product differentiation  187–8 and sustainable marketing  460 value-chain activities  45–6 customer value-based pricing  259–61, 259 customer value delivery network  312 customer-value marketing 454 Dahl, Gary  243 dashboards 56, 57, 506 data, see also marketing information primary 107, 109–18 secondary 107–9 social 127 data mining  119, 422, 424–5 data warehouses  119 database marketer  498–9 databases, see also customer databases internal  103–4, 108 online, as secondary data source  108 David Jones department stores  316, 322, 408 DBICorp (DBIC)  128 DealsDirect.com.au 326 deceptive practices  444–5 deceptive pricing  283 decline stage, product life cycle  241, 246 declining demand  10 Defence Health  196 deficient products  455 Dell derived demand  151 dynamic pricing  277 individual marketing  184 tracking of public forums  123 Deloitte Access Economics  108 demand 6 derived 151–2 elastic 267 estimation, of new products  503–4 fluctuating 152 inelastic  152, 267 market and  265–7 and price  263, 266–7 demand curve 266, 266–7 demand management  9–10 demarketing 7, 10 demographic environment, marketing  72 better-educated, white-collar, professional population 78 changing age structure  72–6 changing family  76–7 diversity 78–9 generational marketing  76 geographic shifts in population  77–8 demographic markets  44 demographic segmentation  139, 171, 172–3 demographic trends  93 demography 72 Denmark 452 department stores  315, 316–17 derived demand 151–2 descriptive research 106 design 465 design for environment (DFE)  451, 452 Destination NSW’s Vivid Sydney  204, 205 Deutsche Bank  249 Deutsche Post  421 development, public relations functions  366 Dick Smith  61–2 Dick Smith Holdings (DSH)  287 differentiated (segmented) marketing 182 differentiation 49–50, 170 brands 218 channel 188 customer-perceived, measuring  495–6 image  188, 216–17 people 188 and prices  266 promotion and  189–90 retailers 322 services  188, 216–18 strategy, selection of  187–92 wholesalers 330 digital age  21–3 and customer engagement  16–17 digital and social media marketing 22 business-to-business 160 digital marketing 411–18, see also direct and digital marketing forms of  411, 411 digital marketing metrics  505–7 digital retailers  316 digital technology  343, 355 marketing communications  427–8 direct and digital marketing 406–8, 436, see also customer databases; mobile marketing; online marketing benefit to buyers and sellers  408 characteristics 349 customer database use in 422–5 digital marketing channel performance  428 digital marketing communication performance 427–8 evaluation  426–30, 436 and fulfilment  406, 406 integrated approach  425, 425 irritation, unfairness, deception and fraud 430–1 in promotion mix  342 public policy issues in  430–2 direct factory outlets (DFO) 320 direct marketing channel 302 disabilities, consumers with  79 disadvantaged consumers, poor service to  446 discount stores  315, 319–20 discounts  260, 267, 272, 275, 396 disintermediation 309, 336–7 Disney brand experiences  224 ethnographic research  110 experience 200 distinctive appeals  357–8 distinctive packaging  209, 210 distribution consumer product type  202 cost of  297, 443 exclusive 313 intensive 313 measuring performance  500–1 physical 292, 302 selective 313 distribution centres 297 distribution channels, see marketing channels distributors, as source of new-product ideas 233 diversification 45 diversity 516 population  78–9, 134 Do Not Call Register Act 2006  34, 463–4 domain name  412 Dove, brand personality  140 downsizing 44–5 drive (motive) 141, 143 drop shippers  328 Drucker, Peter  4, 21, 426 DStore.com.au 316 Dulux paint  308 Dunlop 151 dwell-time  479, 507 dynamic pricing 277–8 e-procurement 159–60 early adopters  149, 149 early majority  149, 149 Earth Summits  28 eBay  277, 278, 420 market-oriented business definitions  39 PayPal  118, 412, 421 economic environment, marketing 79–80 and business buyers  156 changes in income  80 factors in international market segmentation 179 Global Financial Crisis (GFC)  23–4, 267 impact on pricing strategies  267–8 influence of personal economic situation on buying behaviour  138 spending patterns, changes in  80 education levels  78 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e email www.freebookslides.com           Ford, Henry 13 Ford Motor Company franchises and dealers 301 marketing mix 50, 51 forecasting 504–5 Foxtel 295, 302, 308 France 452 Franchise Entertainment Group (FEG) 336 franchise organisation 307, 321 legal issues 464 Franchising Code of Conduct 464 franchisor 307 free goods 396 freight-absorption pricing 277 frequency marketing programs 16 Freud, Sigmund 141 fulfilment, direct and digital marketing and 406, 406 fulfilment response 421, 427, 428 full demand 10 full-service retailers 315–16 full-service wholesalers 328, 329 Fun Over 50 73 functional discount 272 functional organisation 54, 55                                                                                       Gallup Management Consulting Group 382 games (promotions) 396 gay and lesbian consumers 78 gender segmentation 173 General Electric (GE) branding approaches for China 249 product salesforce structure 379 General Motors branding approaches for China 249 franchises and dealers 301 General Motors Holden 27 general public 71 Generation X 73–4, 135 Generation Y 74–5 Generation Z 75–6 generational marketing 76 geographic organisation 54, 55 geographic segmentation 171–2, 179 geographic shifts in population 77–8 geographical pricing 276–7 Germany 452 Gillette, observational research 109 GlaxoSmithKline 444 Global Financial Crisis (GFC) 23–4 global marketing, see international marketing global marketing research 121–3 global warming 28 globalisation 26–7 Gloria Jean’s Coffees extranet 159 lifestyle segmentation 176 Gnip, social data 127 goals, setting 39, 41 good-value pricing 260                                                                                           Facebook brand’s promotions on 22, 418 Coles on 216 and consumer behaviour 163 evaluation as marketing tool 436 global profit of 407 market-oriented business definitions 39 native advertising 357 Optus and 363 Sea Life Sydney Aquarium’s announcement on 359 teenagers’ posts on 468 workplace service 419 fads 243, 243 Fairfax Media 478, 479 false wants 447 family 76–7, 137 Farm Pride 363 Farmers Union Iced Coffee 227 fashion 243, 243 fast-food industry Hungry Jack’s 260 McDonald’s, see McDonald’s fast-moving consumer goods (FMCG) 25, 39, 294, 315, 423, 500 FastAsk 34 Federal Chamber of Automotive Industries 108 Ferrari, niche market 49 field salesforce 380–1 financial intermediaries 69, 70 financial publics 70 fine-line specialty store 316 finished-goods inventory 293 First Peoples 134 Fisher-Price, observational research 109 fishyback transportation mode 299 fixed costs (overhead) 261, 262, 507 fixed-price policy 277 Flight Centre website 417 fluctuating demand 152 FlyBuys 120, 394 FOB-origin pricing 276 focus group interviewing 112 online 114 use of hypnosis 112 follow-up, sales presentations 391 Food and Beverages Code (AANA) 185 Food Standards Australia New Zealand (FSANZ) 85 Food Standards Australia New Zealand Act 1991 210                   experiential retailing 322 experimental research 111 exploratory research 106 extended marketing mix 13–14, 14, 50–1, 330–1 external stimuli 145 extranets 120, 159, 422                                                                                                           Elders, systems selling 154 electronic commerce 463 electronic data interchange (EDI) 293, 295, 300 electronic funds transfer (EFT) 293 email 417–18 unwanted 431–2 Engel’s laws 80 environment marketing, see marketing environment natural, see natural environment Environmental Claims Code (AANA) 185 Environmental Protection Authority (EPA) 82 environmentalism 450–2 Equal Opportunity Act 465 ESPN.com 419 estoppel 462 ethical marketing 458–9 Ethical reflections ads that upset 372 are there spam/do not call/privacy issues? 437 brainstimulator 253 Champagne from Australia? 228 ethics of multichannel marketing 338 Greenwashing Index 94 let’s get rid of telemarketers 402–3 making the figures tell a story 62 might SMS promotions break the law? 128 old technology for developing markets 164 psychology of mobile payments 288 rent to buy 469 security of customer details 34 targeting very young consumers 196 ethics 28, 85–6, 185, see also social responsibility; sustainable marketing codes of practice 459 marketing dilemmas 457–60, 468–9 marketing intelligence 105 in marketing research 123–4 of multichannel marketing 338 Ethisphere 468–9 ethnic diversity 78–9, 134 ethnographic research 110 Etsy, niche marketing on web 183 Europe 23, 27, 124, 174, 395 European Society for Opinion and Marketing Research (ESOMAR) 432 event marketing 396 everyday low pricing (EDLP) 260 evidence management 213 exchange excitement, as personality trait 140 exclusive distribution 313 execution styles 358–9 executive information system (EIS) 108 Exostar 159 expense reports 387 Experian Australia 108 experiences 7, 200–1, see also brand experiences Index Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e 539 540 www.freebookslides.com Index Goodman Fielder, business portfolio  42 goods 7 private 447 public 447 Google  413, 415, 416 Accelerated Mobile Pages (AMP)  507 Adword and Adsense  414, 428, 505 brand value  219 Conversion University  414 global revenues  417 marketing research  105 mission statement  60 ‘more for more’ positioning  191 Nexus One phone, multichannel services marketing 310 Pixel XL, customer-perceived quality  493–4 search metrics  414, 415 shopper marketing  314 googling 412 GoPro, ad videos  359–60 government agencies increased interest in marketing  26 marketing channels  304 social marketing  26 government markets  71 government publications  108 government publics  70 Grand Marnier  265 Great Barrier Reef  28 Greenwashing Index  94 Grifco 227 grocery industry, supply chain  293, 293–4 gross rating points (GRPs)  436, 502 group interviewing, in marketing research  112 Groupon 395 groups, influence on consumer behaviour 135–8 growth-share matrix (BCG) 42–3, 43 growth stage, product life cycle  241, 245 growth strategies  44–5 guessability, domain  412 handling objections 391 Harley-Davidson  16, 173 brand value  219 harvesting, product  246 Harvey, Gerry  61 Hay, Donna  204 Headspace, and unsought product  206–7 Heart Foundation’s Mums United campaign 74 Heineken, branding approaches for China 249 HelloFresh 76 Hewlett-Packard (HP) derived demand  151 variable costs  261 hierarchical databases  422 hierarchy of needs (Maslow)  141, 142 high-pressure selling  445 high–low pricing  260 horizontal channel conflict  304–5 horizontal marketing networks 308 households, changing composition  76–7 HuggaMug Café  163 Hungry Jack’s  260 hybrid goods and services  28 hypermarkets 319 hypnosis, use in focus groups  112 Ibis Budget  194–5 IBM logo 188 recycling of electronic equipment  452 salesforce 377 ICC/ESOMAR International Code of Marketing and Social Research Practice 124 idea generation 232 crowdsourcing 234 external sources  233–4 internal sources  233 idea screening 234–5 ideas marketing  204 IGA supermarket  307, 317, 331, 476 IHearYou system  252–3 IKEA 315 brand personality  140 market segmentation  179 supplier development  153 image advertising  203, 204 image differentiation  188, 216–17 immersion groups  112 Immersive Web  507 in-the-head metric  498 income distribution  80, 81 income segmentation 173 incomes, impact of Global Financial Crisis  173 India  365, 395, 452 Indigenous people  134 individual interviewing, in market research 112 individual (one-to-one) marketing 184, 195 individualism 88 Indonesia 459 industrial distributors  328 industrial products 203, 227 inelastic demand  152 influentials 136 infomercials 445 information, see consumer information; marketing information information management, supply chain  300 information technology, and supply chain management  292–3, 298–9 informative advertising  351–2 innovation 503–5, see also new-product development; new products innovation management system  240 innovative marketing 454 innovators 149, 149 inside salesforce 380–1 Instagram  22, 75 institutional theory  492 integrated marketing communication (IMC)  25, 340, 342–8, 345, 345, 371 Intel 151–2 intellectual property (IP)  464–6 laws 465 intelligence gathering  104–5 intensive distribution 313 interactive marketing 216 interactivity customer relationships  136–7 modes of  420–1 intermarket segmentation 179 intermediaries, marketing 69–70 number of  313 types of  312 internal databases 103–4, 108 internal marketing  18, 25, 50, 215–16 internal publics  71 internal stimuli  145 International Chamber of Commerce, International Code of Marketing and Social Research Practice  124 international issues, in environmentalism  452 international marketing  516 products and services  248–50 international marketing research  121–3 international markets  71 segmenting 179 international pricing  278–9 internet 21, 411, 478, see also social media; websites access by vulnerable or unauthorised groups 431 advertising 361 as digital products carrier  299 Gen Xers’ usage of  73–4 Gen Zers’ usage of  75 job hunting on  517 marketing research  113–15 Millennials’ usage of  74–5 as PR channel  367 price comparison sites  278 targeting abuse  185 internet fraud 431 Internet of Things (IoT) phenomenon  60 interpersonal factors in business buying behaviour 156 interpretive consumer research  141 Interpublic Group of Companies  250 interviewing, in marketing research focus group  112 group 112 individual 112 international marketing research  122 personal 112 telephone 111 intranets 120, 422 introduction stage, product life cycle  241, 244 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e email www.freebookslides.com                                                                                                                                                     Maccas, mission statement 61 macroenvironment 72–90 cultural environment 87–90 demographic environment 72–9 economic environment 79–80 major forces and 72 political and social environment 83, 85–7 technological environment 83 Macy’s, mass customisation 194–5 magazines advertising 361 and marketing to Gen Zers 75 print vs digital editions 33 mail questionnaires, in marketing research 111, 122 make-and-sell view of business 292 Malaysia 316 manufacturer-sponsored retailer franchise networks 307 manufacturer-sponsored wholesaler franchise networks 307 manufacturers, direct link with retailers 294, 302–3 manufacturers’ agents 329 manufacturers’ sales branches and offices 329 Maoˉ ri 134 Marcarlo, Rose 473 market development 44 market growth 42–3 market management organisation 55 market offerings 6–7, 200 market orientation 492 business definitions 39 mission statement 38–9 market penetration 44 market-penetration pricing 269 market pioneer 244 Market Research Society of New Zealand (MRSNZ) 86 market rollout 239 market salesforce structure 379 market segment 49 market segmentation 48–9, 170 behavioural 171, 176–8 business markets 178–9 demographic 139, 171, 172–3 effective 179–80 geographic 172, 179 international markets 179 multiple bases 178 psychographic 171, 176 retailers 322 wholesalers 330 market share 42–3                                                       labelling 210, 450 laggards 149, 149 Landor, ethnographic research 110 late majority 149, 149 latent demand 10 Latitude Group 418 Latona, Ken 481 leading adopters 136 learning 143 leasing 152 legal compliance program 460 coverage of 462–6 legal education 461–2 putting in place 460–1 legal education 461–2 legal issues class actions 463 facing marketing management 453 international market segmentation 179                                                             Kaggle 234 Kelleher, Herb 12 Kellogg’s 227–8 Kellyville Pets 216 Kent Relocation Services 215 Kenwood, product-line pricing 270 KFC, multichannel distribution networks 308 kickbacks 458 Kimberley-Clark, ethnographic research 110 Kmart 317 channel conflict 305 direct marketing channel 302–3 partnership within firm 68 positioning 49 vendor-managed inventory (VMI) 300 Kraft Foods 27 marketing analytics 99 new brands 224 Kroc, Ray 61 loyalty, customer, see customer loyalty loyalty status, market segmentation by 177–8 LUSH Australia, sustainable business practices 82 Lutz, Bob 40 luxury goods and services 173, 186, 267, 279                             Japan 78, 248–9, 395, 452 JB Hi-Fi 326 Jim’s Mowing 307 Jobs, Steve 33 John Deere, mass customisation 184 Johnson & Johnson, seasonal advertising 363 judgment sample 117 just-in-time (JIT) systems 298 legislation 85, 444 consumer privacy 86 lobbyists’ influence 90 pricing 282 public actions 453 LEGO Group 242, 356 new-product ideas 233–4 Lenovo, derived demand 151 Leonard, Stew 19 lesbian, gay, bisexual, transgender and intersex people (LGBTI) 78–9 ‘less for much less’ positioning 190, 191, 195–6 Lever-Rexona customer relationships 16 direct link with Coles Supermarkets 294 LexisNexis, competitive marketing intelligence 105 Lexus 112 differentiation 188 estimation of customer lifetime value 19 ‘more for the same’ positioning 191 partnership within firm 68 positioning 186 LG endorsement ad 359 marketing research 105 licensing 222 Lidl 476 life-cycle stage influence on buying behaviour 138, 139 market segmentation by 139, 172–3 life events, influence on consumption patterns 139 life quality 450 lifestyle influence on buying behaviour 138, 140 market segmentation by 176 limited-line store 316 limited-service retailers 315 limited-service wholesalers 328, 329 line extensions 223 LinkedIn 419 internal idea sources 233 Lion Pty Limited 227 lists 422, 429 Lite n’ Easy 245 lobbying 90, 366 local marketing 183–4 local publics 70 location-based marketing 423, 435 location-based pricing 272–3 logistics, see marketing logistics; placement logistics; services marketing logistics; supply chain; supply chain management Logitech, niche market 49 logos 188, 209 L’Oréal, direct marketing 348 loss-leader pricing 275 lovemarks 220                       intrusion, marketing by 17 Intuit, customer-centred new-product development 239 inventory finished-goods 293 turnover 337 inventory management 298–9 vendor-managed inventory (VMI) 300 investor relations 366 IP Australia AusPat database 104 iPod, Nike+iPod kit 222 irregular demand 10 Index Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e 541 542 www.freebookslides.com Index market-skimming pricing (price skimming) 269 market targeting 49, 170, 180, 194–5 evaluating segments  180–1 retailers 322 selecting segments 181, 181–5 strategies  181 strategy, selection of  184–5 target markets  9, 12, 181 wholesalers 330 market variability  185 marketing  4, see also direct and digital marketing; international marketing; online marketing; sustainable marketing careers in  516–21 cause-related 86–7 changing landscape  21–8 concentrated (niche)  182–3 consumer-generated 17–18 consumer-oriented 454 core concepts  5, customer-engagement 16–17 customer-value 454 ethics  457–60, 468–9 generational 76 goal of  impact on individual customers  443–6 on other businesses  448–9 on society  446–8 individual (one-to-one) 184, 195 integrated plan and program  13–14 interactive 216 internal  18, 25, 50, 215–16 jobs 520–1 legal compliance in  460–6 measuring contribution to organisational performance 24–6 micromarketing 183–4 mobile  23, 127, 408 morally difficult situations in  458 not-for-profit 26 online interaction in  419–20 planning 45–6 process, see marketing process public-sector 26 real-time 22 and sales, coordinating  377–8 search engine  413–15 sense-of-mission 454–5 social 204 social media  22–3 societal 13, 442, 442, 455, 455 tactics, financial analysis of  513–15 Marketing 3.0  13 marketing analytics 99, 100–1 overview 492 Marketing analytics at work advertising-to-sales ratios  372 costs of sustainability  469 Defence Health  196 dental house calls  253 Dick Smith’s demise: poor strategy?  61–2 evaluating direct and digital marketing  436 exploring demographic trends  93 just one more cereal  227–8 sales conversions  402 Transport for NSW: customer satisfaction index 34 value of information  127–8 weighted average and breakeven analysis 287–8 weighted averages, breakeven point and inventory turnover  337 where are the customers?  163–4 marketing analytics spotlights accounting for marketing  507–15 consumer attitudes  492–7 customer behaviour  497–500 digital marketing metrics  505–7 innovation 503–5 overview of measures  492 perceived quality and relevance  493–4 relative to competitor  501–3 trade customer  500–1 marketing budget  54 marketing channel design 312 channel alternatives, identification of  312–13 channel objectives, setting  312 consumer needs and  312 management decisions and  311–13 marketing channels  292, 293, 295, 300 behaviour 304–5 conflict 304–5 design, management decisions and, see marketing channel design flow 303 levels, number of 302–3, 303 members, functions of  302 organisation 305–11 in service sector  304 value adding 301, 301–2 marketing communication integrated, see integrated marketing communication (IMC) legal issues  463–4 new model  342–5 marketing communications mix 342 marketing concept 12–13, 442 selling concept vs 12, 12 marketing control  52, 55 marketing dashboards  56, 57 marketing department organisation  54–5 marketing environment  68, see also macroenvironment; microenvironment influence on business buyer behaviour  156 internal 68–9 proactive responses  90 reactive responses  90 marketing implementation  52, 54 Marketing in Action ALDI’s ‘same for less’ value proposition 174–5 BMW’s strategic planning  40–1 consumer behaviour  139 content marketing, not advertising  346–7 Headspace and the unsought product  206–7 Mattel: managing the fun and games  242–3 measuring effectiveness  25–6 multichannel services marketing  310–11 Netflix streaming  100–1 Peoples Coffee: making a difference, one cup at a time  456–7 pricing cues are customer clues  274–5 search engine marketing  413–15 selling the benefits of marketing  25–6 social selling  388–9 virtual reality  84 marketing information  98, see also consumer information; data; marketing research and big data  98 and customer relationship management 119–20 distribution and use  120 managing  99, 101–2 sources 103–5 marketing information system (MIS)  101–2, 102 assessing needs  102–3 marketing intermediaries 69–70 marketing logistics (physical distribution) 292 marketing management  9, 51, 52 control  52, 55 implementation  52, 54 legal issues facing  453, 453 marketing department organisation  54–5 orientations 11–13 planning  52 responses to marketing environment  90 SWOT analysis  51–3, 52 marketing metrics  25–6 marketing mix  4, 13, 47, 50–1 extended 14, 14, 50–1, 330–1 four Cs  51 integrated  47, 50–1 managing  48 modifying 246 tools 14 marketing myopia  7, 11 marketing plans  45–6, 52, 53–4 contents of  53 purpose and content of  484 sample plan  485–91, 490 marketing process  4–5, expanded model  28–30, 29 marketing research 105, see also marketing information Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e email www.freebookslides.com                                                                                                         customer-driven marketing strategy 33 customer focus 61 differentiation 195–6 digital technologies in marketing 33 direct and digital marketing 436 ethical reflection, see Ethical reflection gathering data 126–7 industrial products 227 innovation 252–3 integrated marketing communication 371 location-based marketing 435 marketing analytics at work, see Marketing analytics at work marketing strategy 60 microeconomic environment 92 multichannel distribution networks 336–7 new-product development 253 online price tracking 287 packaging 227 public relations 371 rebates under microscope 287 sales promotion 401–2 supervising salespeople 401 target marketing 194–5 technological environment 93 Mini Ray 74–5 mission statement, market orientation 38–9 mobile couponing 395 Mobile Dental Services 253 mobile marketing 23, 127, 408 mobile media 343, 361 mobile payments, psychology of 288 mobile phones 435, 436 apps for digital editions of newspapers and magazines 33 GPS feature 423 ‘more for more’ positioning 190–1 promotions 418 Samsung Galaxy S7 Edge 201 modified rebuy 153–4 monopolistic competition, and pricing 266 monopoly, and pricing 266 ‘more-for-less’ positioning 191–2 ‘more-for-more’ positioning 190–1 ‘more for the same’ positioning 191 Moschis, George 139 motivation 140–1 salesforce 385, 386–7 motive (drive) 141, 143 MTV brand personality 140 global networks 27 multibranding 223 multichannel distribution networks 308, 309, 336–7 multichannel marketing, ethics 338 multimodal transportation 299–300 Myer department store 322, 408                                                                                                               Boston Consulting Group 42–4 problems with 43–4 Mattel, product life-cycle management 242–3 mature consumers 134–5, 139 maturity stage, product life cycle 241, 245–6 Mayo Hardware, social selling 386 McCann Worldgroup, global operations 250 McDonald’s 18 advertising to people with disabilities 79 experimental research 111 franchises 321 global 27 golden arches 217 good-value pricing 260 international advertising 364–5 international pricing 278 marketing strategy 61 mission 61 mission statement 39 multichannel distribution networks 308 positioning 49 premiums 395 trademark 464 unsustainable strategy 442 value delivery network 46 media multitaskers 362 media publics 70 Melbourne Metro, advertisement 355–6 membership groups 135 men buying role 137 as househusbands 76 Mercedes good-value pricing 260 positioning 186 Toyota’s competitive strategy 191 merchant wholesalers 327, 329 Metcash 331 Campbells Cash & Carry 318 distribution centres 297 wholesaler-sponsored voluntary chains 307 Mexico 459 microenvironment actors in 68 company groups 68–9 competitors 70 customers 71 marketing intermediaries 69–70 publics 70–1 suppliers 69 micromarketing 183–4 Microsoft 189, 354 horizontal internet search alliance 308 Mighty Emus 34 Millennials 74–5 Mini cases business buyer behaviour 163 consumer behaviour 163 consumerism 468 corporate VMN 335–6                                                                                                                     codes of practice 124 contact methods 111–16 ethics in 123–4 instruments 117–18 international 121–3 misuse of findings 124 netnographic research 115–16 not-for-profit organisations 121 objectives 106 online 108, 113–15 plan 106–9 implementation of 118 planning role 484 primary data collection 107, 109–18, 122 privacy concerns 123–4 problem definition 106 process 106 public policy 123–4 reporting on findings 118 search engines 109 secondary data collection 107–9, 121 small businesses 121 marketing return on sales and investment 513 marketing ROI 56–8, 57, 58 marketing services agencies 70 marketing strategy 47, 53–4, see also differentiation; market segmentation; market targeting; positioning changing 342 customer-driven 170, 170 customer value-driven 48–50 Goodman Fielder 42 managing 48 in marketing plan 489 new products 236–7 and price setting 264–5 statement 236–7 marketing system, elements 8, marketing website 412 markets 8–9 customer, types of 71 and demand 265–7 demographic 44 modifying 245 pricing in different markets 266 markets-of-one marketing 184 markup pricing 262, 444, 508 Mars, pet database 424 Maslow’s hierarchy of needs 141, 142 mass customisation (individual marketing) 184 mass marketing 181, 343, 406 mass media 343, 361, 499 advertising 345 mass merchants 315, 319 mass mingling 88 MasterCard 99 MasterCard advertisement 444 materialism 139, 447 materials and parts 203 matrix approaches to strategic planning Index Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e 543 544 www.freebookslides.com Index Nando’s market research plan  107 secondary data  108, 109 NASA market-oriented business definitions  39 and social media marketing  23 National Australia Bank  219 native advertising  356–7 natural environment  72, 80, see also social responsibility impact of supply chain  295 plastic bottles  452 sustainability, see sustainability, environmental trends  80, 81–2 views on  89 needs  5, 12, 98 general description  157 marketing information, assessing  102–3 Maslow’s hierarchy of needs  141, 142 recognition, in buyer decision process  145–6 value-based pricing  259 negative demand  10 Negroponte, Nicholas  435 Nestlé  150, 248 net marketing contribution (NMC)  513 Netflix  309, 336 big data  100–1 demand estimation  503 marketing analytics  99, 100–1 netnographic research 115–16 network-centric measures, online marketing 428 network databases  422 NeuroFocus 118 neuromarketing 118 new clean technology  452 new-product development 232 business analysis 237 commercialisation 238–9 concept development  235 customer-centred 239 idea generation 232–4 idea screening 234–5 managing 239–40 marketing strategy development 236–7 process 232, 232–9 product development 237 strategy 232 systematic 240 team-based 240 telemedicine 253 test marketing 238 new products 148, 232 buyer decision process  148–50, 149 demand estimation  503–4 failure rate of  447 number of  503 pricing strategies  268–9 new-task situation 154 news (PR)  367 News Corporation  27, 308 newspapers advertising 361 classified advertising section of  479 print vs digital editions  33 Niantic 367 niche marketing  49, 182–3 Nielsen  122, 427, 436 commercial data  108 distribution level monitoring  500 Homescan 126 multivariable segmentation  178 Nielsen Media Index  109 Nielsen Media Research  117–18 Panorama service  109 Television Audience Measurement (Nielsen TAM)  126 NightOwl, niche marketing  182 Nike consumer loyalty  268 and environmental impact measurement 295 environmental sustainability  451 experience 200 global networks  27 individual marketing  184 innovative marketing  454 logo 188 marketing research  105 niche market  49 Nike+iPod kit  222 product line decisions  211 rebranding for international markets  248 salesforce 377 television ad  353 NineMSN.com.au 316 Nintendo 288 Nissan new brands  224 positioning 186 non-probability samples  117 not-for-profit marketing 26 not-for-profit organisations  516 market-oriented approach  25 marketing research  121 Notgoodenough.org 421 NRMA Insurance, evidence management  213 Nudge Accounting  69 Nuromol ads  359 Nutella, slice of life advertising  358 nutritional labelling  210, 450 OAK brand  359 objective-and-task method (budgeting) 354 objectives, setting  39, 41 observational research 109–10, 121 obsolescence, planned  446 occasion segmentation 176–7 occupation, influence on buying behaviour  138 off-price retailers  315, 320 Officeworks 77–8 Old Spice brand site  412 oligopolistic competition, and pricing  266 omni-channel buyers  314 omni-channel retailing 314, 325, 421 one-to-one (individual) marketing  184, 195 online advertising  416, 416–17 online behavioural targeting  115– 16 online focus groups 114 online forums  146 online marketing  309, 311, see also direct and digital marketing; social media marketing; websites evaluation 427–9 online marketing research  108, 113–15 online pricing  277–8 online security  431 online sellers  381 online social networks  8, 136–7, see also social media open dating  210 open-end questions  117 operating control  55 opinion leaders 136 optional-product pricing  270 Optus 363 brand value  219 direct marketing channel  302 logos 210 product-bundle pricing  271 order-routine specification  158 organisation marketing  203–4 organisational climate  386 organisational factors in business buying behaviour 156 original equipment manufacturer (OEM)  163 ORIX Australia  152 outdoor advertising  361 outside salesforce/field salesforce 380–1 outsourcing 463 overfull demand  10 overhead 261, 262, 507 overpackaging 209 OzTAM 126–7 packaging 209–10, 227, 248 deceptive 444 environmental issues  451 Page, Larry  413 page impressions  427, 507 paid, owned, earned and shared (POES)  346 Palace Cinemas, database  423 Pampers 220 pan-company marketing  25 partner relationship management (PRM) 18, 313 partners inside the organisation  18, 45–6, 68–9 partners outside the organisation  18, 46 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e email www.freebookslides.com                                                                                                         initiating 279–81 responses to 281, 281–2 price confusion 284 price discrimination 283 price elasticity of demand 267 price escalation 278 price fixing 282 price gouger 280 price-matching guarantees 275 price packs 395 price/pricing 258 breakeven pricing/target-return pricing 262, 262–3, 507–10 changes, see price changes competition-based pricing 263–4 consumer product type 202 cost-based pricing 259, 261–3 cost-plus pricing/markup pricing 262, 444, 508 cues 273, 274–5 deceptive 444 in different markets 266 economic factors 267–8 everyday low pricing (EDLP) 260 extended marketing mix 14, 50, 330–1 good-value pricing 260 high, marketing system and 443–4 high–low pricing 260 increases 280 market-penetration pricing 269 market-skimming pricing 269 marketing mix strategy 264–5 new-product 268–9 organisational considerations 265 price-adjustment strategies, see price-adjustment strategies price cutting 279 prices ending in ‘9’ 274 product life-cycle stages 245 product-mix strategies 270–1 public policy and 282–4, 283 resellers’ reactions 268 retail prices 323 return on investment (ROI) pricing/ target-return pricing 508 setting, considerations in 258 social concerns 268 strategies 258–64 total marketing strategy 264–5 unit pricing 210, 450 value-added pricing 260–1 value-based pricing 259–61, 259 price skimming 269 price wars 256 Coles and Woolworths 475–6 price–demand relationship 263, 266–7 pricing structure 268 primary data 107 collection 109–18 international marketing research 122 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e                                                                                                       pipelines, transportation mode 299 Pizza Hut, branding approaches for China 249 place marketing 204, 205 placement decisions retailers 323–5 wholesalers 331 placement logistics, extended marketing mix 14, 50, see also supply chain; supply chain management planned obsolescence 446 planning marketing, see marketing plans; marketing, planning strategic, see strategic planning pleasing products 455 P&O Cruises 176 Poh, Alicia 337 point-of-purchase (POP) promotions 395–6 Polarvision 189 political environment 83 factors in international market segmentation 179 legislation 85 political marketing 204 pollution 28, 82 cultural 448 prevention 451 Polman, Paul 450 population shifts 77–8 portfolio analysis 42–4 positioning 49–50, 70, 170, 186 brands 220 communicating and delivering position 192 maps 186, 187 overall strategy 190–2 product life-cycle stage 244 retailers 322 strategy, selection of 187–92 wholesalers 330 positioning statement 192 post-purchase behaviour 147–8 Powderfinger 136 pre-approach, selling process 389–90 predatory pricing 282 predictive analytics 113 premiums 395 press relations 366 price-adjustment strategies 271–9 discount and allowance pricing 272 dynamic and online pricing 277–8 geographical pricing 276–7 international pricing 278–9 promotional pricing 275–6 psychological pricing 273 segmented pricing 272–3 price changes 279–82 buyer reactions 280 competitor reactions 280–1                                                                                                     partnering 463 pass-it-on (viral) marketing 420 Patagonia annual catalogue 474 background 472 as benefit corporation 473 corporate social responsibility initiatives 473–4 marketing approach and value creation 472–3 mission statement 454, 473 strategic objectives 473 target audience 473 patents 465 patriotism 89 Patties (Four’N Twenty brand) 301 Peerless Paper Company 276 Penguin Books 428 people, in extended marketing mix 14, 50, 325, 331 people differentiation 188 Peoples Coffee 456–7 PepsiCo branding 208 niche products 181 positioning 186 percentage-of-sales method (budgeting) 353, 372 perception 142–3 performance measurement 24 customer-centred 56, 57 direct and digital marketing 426–30 performance quality, product 207 periodicals, secondary data source 108 person marketing 204 marketing channels 304 personal factors business buying behaviour 156 influence on consumer behaviour 138, 140 personal interviewing, in marketing research 111, 112, 122 personal selling 376–8, 482, see also salesforce; selling process characteristics 348–9 nature of 376–7 in promotion mix 342 personality influence on buying behaviour 140 market segmentation by 176 persuasive advertising 352 pet database 424 pharmaceutical industry 103, 298, 444 phishing 431 physical distribution 292, 302 physical distribution firms 70 physical evidence, extended marketing mix 14, 51, 325, 331 piggyback transportation mode 299 Pink Media Group 79 Pinterest 22, 98 Index 545 546 www.freebookslides.com Index privacy 437 direct and digital marketing issues  431–2 marketing research data  123–4 online issues  116, 123–4 privacy guidelines 423 private goods  447 private/store brands 221–2 probability samples  117 problem recognition  157 process, in extended marketing mix  14, 51, 331 Procter & Gamble  220 advertising spending  351 advertising tone  359 customer business development team  382 customer management  55 direct link with Walmart  294 low-price ‘fighter brand’  282 new brands  224 Old Spice brand site  412 product management  55 salesforce 377 shopper marketing  314 strategies in decline stage of product life cycle 246 producers’ cooperatives  328 product(s) 6–7, 200, see also experiences; goods; service(s) actual 201 attributes 220 augmented 201 classifications 202–5 consumer 202–3 customer knowledge about, measuring  497 design 208 extended marketing mix  14, 50 features 207–8 harvesting 246 industrial 203, 227 international marketing  248–50 levels 201, 201 modifying 246 quality 205, 207 societal classification of  455, 455 style 208 substitute 181 support services  211 product assortment, retailers  322 product-bundle pricing  270, 271 product class, life cycle  243 product concept 11, 235 concept development  235 concept testing 235–6 product decisions  205 individual 205, 205–11 line 211–12, 212 mix 212–13 and social responsibility  247–8 product development 45, 237 new, see new-product development as product life-cycle stage  241 product form, life cycle  243 product-form pricing  272 product idea  235 product image  235 product liability  463 product life cycle  184–5, 241, 241, 243–7 and promotional strategy  350 sales and profits  245, 246, 247 product line 211 filling 211 length 211 retailers classified by  316–19 stretching 211, 212 product-line pricing  270 product management organisation  54–5 product/market expansion grid 44, 44 product mix/portfolio 212–13 product-mix pricing strategies  270–1 product-oriented business definitions vs market-oriented business definitions 39 product position 186, see also positioning product publicity  366 product quality 205, 207, 445–6, 463 product safety  85, 247–8, 445–6, 450 Product Safety Australia  248 product salesforce structure 379 product specifications  157 product stewardship  451, 452 product value analysis 157 product variability  184 production concept 11 profit breakeven point, determination of  509–10 and customer relationships  20–1, 297 and marketing budget  510–12 and price increases  280 product life-cycle stages  245, 246, 247 Progressive, customer segments  178–9 promotion consumer product type  202 costs, and product prices  443–4 deceptive 444 and differentiation  189–90 extended marketing mix  14, 50, 331 misuse of research findings  124 product life-cycle stages  244 retailers 323 SMS 128 promotion clutter  393 promotion mix 342, 347–8 shaping, characteristics in  348–9 strategies 349–50, 350 promotional allowances  272 promotional pricing 275–6 promotional products  395 proposal solicitation  158 prospecting, selling process 389 provider–customer interaction  214 psychographic segmentation  171, 176 psychological factors, influencing consumer behaviour 140–5 psychological pricing  272, 273 psychology of mobile payments  288 public affairs  366 public goods  447 public policy issues in direct and digital marketing  430–2 marketing research  123–4 pricing 282–4, 283 public relations (PR) 366, 371 characteristics 349 functions 366 in promotion mix  342 role and impact  366–7 tools 367–8 public-sector marketing  26 public service activities  367 publicity 366 publics 70–1 puffery 444 pull strategy 349, 350 pulsing (ads)  363 purchase decision  147 purchasing agents  329 purchasing offices  329 pure competition, and pricing  266 purpose-driven marketing  13 push money  396–7 push strategy 349, 350 Qantas cause-related marketing  86–7 dropping traditional intermediaries  309 marketing management of  25 order placed by  376 virtual destinations tour  84 QBE 358 QRT (quick retail technology)  295 qualitative research 106, 114 quality customer-perceived 493–4 product 205, 207, 445–6 service 217 quality of life  450 Qualtrics 114 Quandt, Herbert  40 quantitative research 106, 113 quantity discount  272 question marks  42 questionnaires  111, 117, 122 Quickflix 336 QuickParts 127–8 quota sample  117 R-W-W (real, win, worth it) new-product screening framework  235 rack jobbers  328 radio advertising  361 radio-frequency identification (RFID)  83, 293, 298–9 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e email www.freebookslides.com                                                                                                                                                                                                                             safety of products 85, 247–8, 445–6, 450 Sale of Goods Act 444 sale signs 274 sales conversions 402 forecasting 293 and gross margins 510 marketing and, coordinating 377–8 product life-cycle stages 246 sales and profit effects, advertising 363 sales assistants 381 sales branches and offices 329 sales contests 387, 397 sales meetings 387 sales presentations 390–1 closing 391 follow-up 391 handling objections 391 listening 390 technology 390 sales promotions 392, 401–2 characteristics 349 objectives 393–4 program, development of 397–8 in promotion mix 342 rapid growth 393 tools 394–7 sales quotas 387 sales reports 387 sales training 383–4 salesforce, see also personal selling; selling process compensating 384 and customer relationships 377, 382–3, 392 evaluating 387 inside 380–1 management 378, 378 motivation 385, 386–7 outside 380–1 qualities disliked and valued 390 recruiting and selecting 382–3 role 377–8 ‘salesman’ stereotypes 376 size 380, 380 structure 378–9 supervision 384–6, 401 team selling 381–2 time allocation 385, 385–6 training 383–4 salesforce automation systems 386 salesforce promotions 393 salesperson 376 salutary products 455 Samantha Wills 238 ‘same for less’ positioning 191 ‘same for less’ value proposition 174–5 sample (market research) 116 international market research 122 samples (consumer promotions) 394 sampling plan, market research 116–18 Samsung Galaxy Pocket Neo 269 Galaxy S7 Edge 201 marketing research 105 Open Innovation Program 234 product line stretching 211–12 sales promotion 392 Sass & Bide 44–5 SBI 139 scanner fraud 283 Schwarzenegger, Arnold 479 Scienceworks museum 172 sea carriers 298, 299 Sea Life Sydney Aquarium 359 search engine marketing 415–16 measuring performance 505–6 search-engine optimised websites 411–12 search engines 109, see also Google marketing 413–15 optimisation 412, 415 optimising rankings 413–14 search-related ads 416 seasonal discount 272 secondary data 107 collection 107–9 evaluation 109 international marketing research 121 sources of 108 security, see also privacy e-procurement 160                                                             types 314–15 amount of service 315–16 organisational approach 320–1 prices 319–20 product line 316–18 value-driven 256 retailing 314 return on advertising investment 363–4 return on investment (ROI) pricing/targetreturn pricing 508 return on marketing investment 56–8, 57, 58 return on sales investment 387 reverse auctions 159 Revlon, market-oriented business definitions 39 Revson, Charles 201 RFM 429–30 Rio Tinto, brand value 219 Rip Curl 343 Ritz-Carlton, customer satisfaction 16 Robert Timms 241 Rolex, advertising appeals 357–8 rollout, of new products 239 Rolls-Royce, product quality 207 Roy Morgan 139, 178, 427–8 Single Source 108, 127 ruggedness, as personality trait 140 Ruslan Kogan 62 Russia 452, 459 Ryanair, good-value pricing 260 Ryobi, marketing implementation at 54                                                             railroads 299 random samples 117 Raw Food Store 89 raw materials 80, 81–2, 203, 293 REA Group 478–80 real-time marketing 22 real-time pricing 277 Realestate.com.au 478–80 advertising 479 benefits to agents 478 challenges 478 entertainment and information 479 features 479 mobile app 480 product design 479 revenues 479–80 success factors 479 reality TV shows 356 rebates 395 recycling 450, 452 Red Bull 246 Reddit 22 Reeves, Rosser 189 reference groups 135, 136 reference prices 273 referrals 389 reinforcement 143 relational databases 422 relationships with competitors 462 customer, see customer relationships customer-managed 8, 17 partner 18, 45–6, 68–9, 313 price–demand 263, 266–7 relevant costs 508 reminder advertising 352–3 rent-to-buy plans 469 repertoire markets 498, 506 repositioning 241 resale price maintenance 283 research, see marketing research research and development (R&D) 41, 232, 233 product development 237 resellers 69, 71, 102, 120, 151, 219, 221, 309 reactions to prices 268 retail price maintenance 283 retailer cooperative(s) 307, 320 retailers 18, 314, see also Coles Supermarkets; Woolworths connecting brands with consumers 314 differentiation 216 direct link with manufacturers 294, 302–3 global operations 250 as intermediaries 301, 303 local marketing 183 market targeting 173 marketing decisions 321–6, 322 store brands 221–2 top 25 Australian retailers 317 trends and developments 325–6 Index Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e 547 548 www.freebookslides.com Index segmentation, see market segmentation segmented pricing 272–3 selective attention  142 selective distortion  142–3 selective distribution 313 selective perception  142 selective retention  143 self-concept, influence on buying behaviour 140 self-service retailers 315 self-views 87–8 sellers’ rights  449 selling agents  329 selling concept 11–12 marketing concept vs 12, 12 selling process 387 approach 390 pre-approach 389–90 presentation 390–1 prospecting 389 qualifying leads  389 steps  389 sense-and-respond view of market  292 sense-of-mission marketing 454–5 sequential product development 240 service(s) 7, 200 attributes  205, 207–8 business services  203 characteristics 213–14, 214 classifications 202–5 extended marketing mix  50–1 levels 201, 201 marketing channels  304 quality  205, 207 service business  319 service decisions  205–13 service differentiation  188, 216–18 service-firm-sponsored retailer franchise networks 307 service inseparability 214 service intangibility 213 service perishability 214 service productivity  217–18 service–profit chain 215–16 service quality  217 service recovery  217 service value analysis 157 service variability 214 services marketing  213–18 multichannel 310–11 strategies 214–15 types of 215 services marketing logistics 294, 294, 295 services mix, retailers  322 share of customer 19–20 share of voice  25, 502–3 Shell 318 shipping 299–300 Shoebridge, Neil  25 Shoes of Prey  88 shopper marketing 314 shopping behaviours, changes in  476 shopping centres 324 shopping products  202 showrooming 325 Sigma 298 signpost pricing  275 sincerity, as personality trait  140 Singapore 316 Singapore Airlines, differentiation  188 single-line store  316 small and medium enterprises (SMEs)  371, 388, 401–2 direct and digital marketing  408 marketing research  121 Small Business Development Corporation 121 smartphones, see mobile phones SMS promotion  128 SMTV 503–4 Snickers, standardised worldwide advertising 365 social class 135 social costs  447 social criticisms of marketing  443–9 social data  127 social factors, influencing consumer behaviour 135–8 social ideas  204 social marketing 204, 205 social media, see also Facebook; Twitter; YouTube buzz marketing  136 cost of  361 and customer engagement  16–17 influence on consumer behaviour  135–7 person marketing  304 as PR channel  367–8 social interaction  136 as source of user-generated content  146 teenagers and  468 Web 2.0 and  507 social media marketing  22–3, 127, 418–19, 160 social orientations  89 social responsibility  28, 86, see also ethical marketing; ethics; natural environment; sustainable marketing market targeting  185 product decisions and  247–8 sense-of-mission marketing  454–5 social roles, influence on buying behaviour 137–8 social selling 386, 388–9 social tracking  115–16 societal marketing 455, 455 societal marketing concept 13, 442, 442 SOHO (small office/home office) market  77 Solo, positioning  186 solutions selling 154 Sonos, product design  208 Sony 22 branding approaches for China 249 captive-product pricing  271 customer loyalty  177–8 product mix  212–13 website 412 SonyStyle.com.au 412 sophistication, as personality trait  140 Soup (word-of-mouth agency)  136 South-East Asia, cultural and economic differences 179 spam  418, 437 Spam Act 2003  34, 418, 432, 463 Spear’s Specialty Shoes  138 special-event pricing  275 special events (PR)  367 specialty products  202–3 specialty stores  315, 316 Stag umbrellas  261 standardisation  248, 365 standards 463, see also Australian Standard Starbucks estimation of customer lifetime value  19 lifestyle segmentation  176 local marketing  183 and mobile marketing  23 stars, as SBU type  42 status influence on buying behaviour  137–8 market segmentation by  177 Steel Blue  147 Steinway piano  261 stereotypes  172, 376 STIHL, selective distribution  313 stimulus object  143 stimulus-response model of buyer behaviour  132, 143 store atmosphere  322, 325 store/private brands 221–2 straight rebuy 153 strangers 20 strategic business units (SBUs) 39, 41, 42–3 strategic control  55 strategic planning 38–41, see also marketing plans; marketing strategy business portfolio design 41–5 growth and downsizing strategies  44–5 market-oriented mission 38–9 matrix approaches  42–4 purpose of  42 steps in  38 strategic planning concept  442, 442 streaming media  414 strip shopping centres 324 style 243, 243 subliminal advertising  143 subscription markets  498 substitute products  181 supermarkets 315, 317–18, see also ALDI; Coles Supermarkets; Woolworths superstores 315, 319 supervision, salesforce  384–6, 401 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e email www.freebookslides.com                                                                                             value(s) brand 219 customer, see customer value cultural, see cultural values qualitative 360 value-added pricing 260–1 value adding 41 value analysis, product or service 157 value chain 45, 46 value delivery network 46, 292 value marketing 79–80 value proposition 10–11, 24, 186, 190, 190–2 ALDI’s ‘same-for-less’ 174–5                                                                         Uber 74, 93 UltraKleen Pty Ltd 337 unconscionability 462 undifferentiated marketing 181 uniform-delivered pricing 276 Unilever customer insights 99 customer (or relationship) manager 379 Dove brand 356 environmental sustainability 451 pricing strategy 279 pull strategy 349 unique selling proposition (USP) 189 unit pricing 210, 450 United Kingdom 319, 320 National Environment Research Council 360 United Nations Conference on Human Environment 28 United Nations Global Compact, principles of 456 United States 320, 349, 351, 395, 431, 452 Unsolicited Electronic Messages Act 2007 418, 432 unsought products 203, 206–7 unwholesome demand 10 United States Council for Marketing and Opinion Research 124 usage rate, market segmentation by 177 user-generated content 146 user status, market segmentation by 177                                           target audience rating points (TARPS) 427, 502 target costing 265 target markets, see market targeting target-return pricing 262, 262–3, 507–10 Tasmanian Walking Company (TWC) 481–3 Taxi Council of Victoria 137 team-based new-product development 240 team selling 381–2 technical sales support people 380–1 technological environment 83 technology 516 in extended marketing mix 14 new clean 452 teenagers, and social media 468 tricomponent attitude model 144, 144 Tripadvisor.com 418, 419 truck wholesalers 328 trucks, transportation mode 299 true friends 21 Twitter Coles on 216 fire hose 127 McDonald’s campaign 18 native advertising 357 Powderfinger band on 136 Taxi Council of Victoria on 137 teenagers’ posts on 468 1300Insurance.com.au on 407 two-part pricing 271                           telecommunications, media and technology (TMT) 27 telemarketing 381, 402–3 mobile marketing 23, 127, 408 Telemarketing and Research Industry Standard 2007 464 telemedicine 253 telephone interviewing, in marketing research 111–12, 122 television advertising 343 advantages and limitations 361 annoyance 448 audience engagement 355, 360 digital satellite broadcasting 26 reality shows 356 vehicles 362 Telstra Corporation 417 brand value 219 horizontal marketing networks 308 online marketing research 113 positioning 49 product-bundle pricing 271 tendering 463 territorial salesforce structure 379 test marketing 238 theme parks 319 3M 245–6 Thunderpants 89 Tiffany’s 210 time-and-duty analysis 385 time-based pricing 273 Timex, advertising appeals 357 Torn, Spike 128 total costs 261, 507–8 total market demand 503 total quality management (TQM) 207 touch point 119 Tourism New Zealand 204 Toyota and Australia Football League sponsorship 396 branding 209 ‘more for the same’ positioning 191 niche market 49 positioning 186 value delivery network 46–7 trade, environmental issues 452 trade agreements 463 trade customer performance measurement 500–1 trade discount 272 trade-in allowances 272 trade promotions 393, 396–7 trade shows 397 trademarks 464, 465 trading exchanges 159 traffic congestion 447 trainship transportation mode 299 transaction transportation 299–300 Trendwatching.com 87                                                                                     supplier development 152–3 monitoring relationships 462 performance review 158 power of 181 as source of new-product ideas 233 vendor-managed inventory 158 suppliers 69 search 158 selection 158 supplies, industrial 203 supply chain 18, 292–5 cost 294 for experiential product 295 functions 297–300 goals 295–7 information management 300 for legal service 294 for typical grocery product 293, 293–4 supply chain management (SCM) 18, 292, 292, 313 smart technology 292–3, 298–9 supply chain trade-offs 296, 296–7 survey research 110–11 internet-based 113 small businesses and not-for-profit organisations 121 SurveyMonkey 114 sustainability, environmental 72, 82, 450, 451, 451, 483, see also natural environment company vision 452 and supply chains 295 sustainability vision 452 Sustainable Apparel Coalition 473 sustainable company 460 sustainable marketing 13, 28, 442, 442–3, 460, see also social responsibility business actions towards 453–7 consumer actions to promote 449–53 principles 453–5 Suzuki, positioning 186 sweepstakes 396 SWOT analysis 51–3, 52, 487–8 Symbion 298 systematic new-product development 240 systems selling 154 Index Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e 549 550 www.freebookslides.com Index value selling  392 variable costs 261, 262, 507 VECCI (Victorian Employers’ Chamber of Commerce and Industry)  121 vendor-managed inventory (VMI)  158, 300 vertical channel conflict  305 vertical marketing network (VMN)  305, 306 administered 305, 308 contractual 305, 306–8 corporate 305, 335–6 video convergence  347 Video-over-IP (VoIP) phone services  27 Village Roadshow, market-oriented business definitions 39 viral marketing 420 Virgin Atlantic, market-oriented business definitions 39 Virtual Experience Laboratory (RMIT University, Melbourne)  84 virtual instructor-led training (VILT)  384 virtual reality  84 VISA, international advertising  364–5 Vodafone, direct marketing channel  302, 303 Volkswagen  248, 359 voluntary chain 320 Volvo online marketing  311 positioning 186 use of hypnosis in focus groups  112 Vouchr 395 Wagering Advertising & Marketing Communication Code (AANA)  185 Walmart  317, 319 everyday low pricing  260 global operations  250 Procter & Gamble direct link with  294 Walt Disney Company  43–4 Wanamaker, John  354 Wandell, Keith  173 wants  5, 12 false 447 short-run vs long-run welfare  13 warehouse clubs 320 warehousing 297–8 Water Corporation, company trading site  159 Web 2.0  507 Web 1.0 and 1.5  506–7 web-centric measures, online marketing  427 web communities of interest 418, see also social media web wholesalers  328 webrooming 325 website design attracting visitors  412 seven Cs  412 websites company buying sites  159 competitive market intelligence from  104 marketing 412 measuring marketing performance  505–7 search-engine optimised  411–12 types 411–12 Weight Watchers, television ad  353 Wesfarmers 175 Wesfarmers, market-oriented business definitions 39 Western Sydney University ad  358 Westfield shopping centres  324 Westin Stamford Hotel, Singapore  189 Westpac, brand value  219 Whirlpool.net.au 115 white-collar jobs  78 WhiteSwan 337 Wholeberry Folk  145 wholesale clubs 320 wholesale merchants  328 wholesaler-sponsored voluntary chains  307 wholesalers 327 functions 327 marketing decisions  330, 330–2 trends and developments  331–2 types 327–9 wholesaling 327 Wirra Wirra, sustainable marketing  442–3 WishList.com.au 316 women buying role  137 social role  137 in workforce  76, 77, 137 Woolworths  16, 61, 317, 318 administered vertical marketing network 308 Big W  302, 317 brand extensions  223 brand value  219 ‘Campaign for Wool’  366 combination stores  316 Dick Smith Electronics chain  326 distribution centres  297 market segmentation  172, 174 Masters Home Improvement Stores  319 merging advertising and entertainment  357 in price wars  475–6 supply chain  294 word of mouth  25, 420 workload approach, and salesforce size  380, 380 World, The 173 World Trade Organization (WTO)  463 World Vision, mission statement  39 World Wide Web (web) 411, see also internet Worn Wear initiative, Patagonia  473 WPP 364 wrap rage  209 written materials (PR)  367 Xiaomi 279 Yahoo! horizontal internet search alliance 308 product and price comparisons  278 Yakult, niche market  49 Yarra Valley Water  136, 137 Yellow Pages  371 Young & Rubicam’s Brand Asset Valuator 218–19 Young at Heart Holidays  135 YourTown 407 YouTube  49, 136, 349, 419 Y&R 364 Zara, corporate vertical marketing network  305, 335–6 zone pricing  276–7 zoomers 73 Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong/Principles of Marketing 7e ... 2018—9781488611841—Armstrong /Principles of Marketing 7e xiii Preface Welcome to your Principles of Marketing package The seventh edition of Principles of Marketing makes the road to learning and teaching marketing. .. Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong /Principles of Marketing 7e email principles of marketing 7e Armstrong Adam Denize Volkov Kotler...email principles of marketing 7e Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2018—9781488611841—Armstrong /Principles of Marketing 7e Dedication From