MarketingSouthern Methodist University

University of Denver

University of Minnesota

MeGrawHill

McGraw-HillIrwin

DETAILED CONTENTS

Parti Initiating the Marketing Process

1 CREATING CUSTOMER RELATIONSHIPS AND VALUETHROUGH MARKETING 3

Discovering How College Students Study Helps Launch a NewProduct at 3M 3

Discovering Student Study Needs 3Satisfying Student Study Needs 3

What Is Marketing? 4Marketing and Your Career 4Marketing: Delivering Benefits to the Organization, ItsStakeholders, and Society 5The Diverse Factors Influencing Marketing Activities 5What Is Needed for Marketing to Occur 6

Marketing Matters: When Your College Instructor SaysYou "Didn't Do Very Well," ... There's Still Hope! AndMaybe a Fortune! 6

How Marketing Discovers and Satisfies Consumer Needs 8Discovering Consumer Needs 8The Challenge: Meeting Consumer Needs with NewProducts 8Satisfying Consumer Needs 10

The Marketing Program: How Customer Relationships AreBuilt 11

Customer Value and Customer Relationships 11Relationship Marketing and the Marketing Program 12The Marketing Program 133M's Strategy and Marketing Program to Help StudentsStudy 13

How Marketing Became So Important 15Evolution of the Market Orientation 15Ethics and Social Responsibility: Balancing the Interests ofDifferent Groups 17The Breadth and Depth of Marketing 18

Learning Objectives Review 20

Focusing on Key Terms 21

Applying Marketing Knowledge 21

Building Your Marketing Plan 21

Video Case 1: 3M's Post-it® Flag Highlighter: Extending theConcept! 22

2 DEVELOPING SUCCESSFUL MARKETING ANDORGANIZATIONAL STRATEGIES 25

Want to Be an Entrepreneur? Get an "A" in a CorrespondenceCourse in Ice Cream Making! 25

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Today's Organizations 26Kinds of Organizations 26What Is Strategy? 26Structure of Today's Organizations 26

Making Responsible Decisions: Using SocialEntrepreneurship to Help People 27

Strategy in Visionary Organizations 28Organizational Foundation: Why Does It Exist?Organizational Direction: What Will It Do? 30

28

Marketing Matters: The Netflix Launch and Its ContinuallyChanging Business Model! 31

Organizational Strategies: How Will It Do It? 31Tracking Strategic Performance with MarketingDashboards 32

Using Marketing Dashboards: How Well Is Ben &Jerry's Doing? 33

Setting Strategic Directions 34A Look Around: Where Are We Now? 34Growth Strategies: Where Do We Want to Go? 35

The Strategic Marketing Process 38The Planning Phase of the Strategic Marketing Process 38The Implementation Phase of the Strategic MarketingProcess 41The Evaluation Phase of the Strategic Marketing Process 42

Learning Objectives Review 44Focusing on Key Terms 45Applying Marketing Knowledge 45Building Your Marketing Plan 45

Video Case 2 IBM: Using Strategy to Build a "Smarter Planet" ^46

APPENDIX A Building an Effective Marketing Plan 48

3 SCANNING THE MARKETING ENVIRONMENT 63

What Is the World's Third Largest Nation? The Social NationCreated by Facebook! 63

Facebook and the Influence of Environmental Forces- 63Where Social Networking and Facebook Are Headed 63

Environmental Scanning 64Tracking Environmental Trends 64An Environmental Scan of Today's Marketplace 65

Social Forces 66Demographics 66

Making Responsible Decisions: Millennials Are Goingto Change the World—through EnvironmentalSustainability! 69

Culture 71Economic Forces 73

Macroeconomic Conditions 73Consumer Income 74

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Going Online: There Are 65 Types of Neighborhoods—Which Type Is Yours? 75

Technological Forces 76Technology of Tomorrow 76Technology's Impact on Customer Value 77Electronic Business Technologies 78

Competitive Forces 78Alternative Forms of Competition 78Components of Competition 79Small Businesses as Competitors 79

Regulatory Forces 80Protecting Competition 80Product-Related Legislation 80Pricing-Related Legislation 82Distribution-Related Legislation 82Advertising- and Promotion-Related Legislation 82

Marketing Matters: Online Tracking: The FTC EncouragesSelf-Regulation 83

Control through Self-Regulation 83

Learning Objectives Review 84Focusing on Key Terms 85Applying Marketing Knowledge 85Building Your Marketing Plan 85

Video Case 3: Geek Squad: A New Business for a NewEnvironment 85

ETHICAL AND SOCIAL RESPONSIBILITY INMARKETING 89

There Is More to Anheuser-Busch than Meets the Palate 89 'Nature and Significance of Marketing Ethics 90

Ethical/Legal Framework in Marketing 90Current Perceptions of Ethical Behavior 91

Understanding Ethical Marketing Behavior 91Societal Culture and Norms 91Business Culture and Industry Practices 92

Making Responsible Decisions: Corporate ConsciWnce inthe Cola War 94

Corporate Culture and Expectations 95

Going Online: The Bribe Payers Index 95

Your Personal Moral Philosophy and Ethical Behavior 96Understanding Social Responsibility In Marketing 98

Three Concepts of Social Responsibility 98The Social Audit and Sustainable Development: Doing Well byDoing Good 101

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Marketing Matters: Will Consumers Switch Brands for aCause? Yes, If... 101

Turning the Table: Consumer Ethics and Social

Responsibility 102

Learning Objectives Review 103Focusing on Key Terms 104Applying Marketing Knowledge 104Building Your Marketing Plan 104

Video Case 4: Toyota: Building Cleaner, Greener Cars 705

Part 2 Understanding Buyers and Markets

5 UNDERSTANDING CONSUMER BEHAVIOR 109

Enlightened Carmakers Know What Custom(h)ers Value 109Consumer Purchase Decision Process and Experience 110

Problem Recognition: Perceiving a Need 110

Information Search: Seeking Value 110

Alternative Evaluation: Assessing Value 111

Purchase Decision: Buying Value 112

Postpurchase Behavior: Value in Consumption or Use 112

Marketing Matters: The Value of a Satisfied Customer tothe Company 113

Consumer Involvement and Problem-Solving Variations 113

Situational Influences 115

Psychological Influences on Consumer Behavior 116Motivation and Personality 116

Making Responsible Decisions: The Ethics of SubliminalMessages 118

Perception 118

Learning 120

Values, Beliefs, and Attitudes 121

Going Online: Identifying Your VALS Profile: WhatMotivates You? 122

Consumer Lifestyle 122

Sociocultural Influences on Consumer Behavior 124Personal Influence 124

Marketing Matters: BzzAgent—The Buzz Experience 125

Reference Groups 126

Family Influence 126

Social Class 128

Culture and Subculture 129

Learning Objectives Review 131

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Focusing on Key Terms 132Applying Marketing Knowledge 132Building Your Marketing Plan 133

Video Case 5: Groupon: Helping Consumers with PurchaseDecisions 7 33

UNDERSTANDING ORGANIZATIONS ASCUSTOMERS 137

Buying Publication Paper Is a Serious Marketing ResponsibilityatJCPenney 137The Nature and Size of Organizational Markets 138

Industrial Markets 138Reseller Markets 138Government Markets 139Global Organizational Markets 139

Measuring Domestic and Global Industrial, Reseller, andGovernment Markets 139Characteristics of Organizational Buying 141

Demand Characteristics 141Size of the Order or Purchase 142Number of Potential Buyers 142Organizational Buying Objectives 142

Going Online: Supplier Diversity Is a Strategic Initiative atAT&T 143

Organizational Buying Criteria 143

Marketing Matters: Harley-Davidson's SupplierCollaboration Creates Customer Value ... and a GreatRide 144

Buyer-Seller Relationships and Supply Partnerships 144

Making Responsible Decisions: Sustainable Procurementfor Sustainable Growth 145

The Buying Center: A Cross-Functional Group 145Charting the Organizational Buying Process 148

Stages in the Organizational Buying Process 148Buying a Machine Vision System 148

Online Buying in Organizational Markets 151Prominence of Online Buying in Organizational Markets 151E-Marketplaces: Virtual Organizational Markets 151

Marketing Matters: eBay Means Business forEntrepreneurs 152

Online Auctions in Organizational Markets 153

Learning Objectives Review 154Focusing on Key Terms 154

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Applying Marketing Knowledge 155Building Your Marketing Plan 155

Video Case 6: Trek: Building Better Bikes throughOrganizational Buying 155

7 UNDERSTANDING AND REACHING GLOBALCONSUMERS AND MARKETS 159

How Dell, Inc., Built a Billion Dollar Business in India 159Dynamics of World Trade 160

World Trade Flows 160Competitive Advantage of Nations 161

Marketing in a Borderless Economic World 164Decline of Economic Protectionism 164

Making Responsible Decisions: Global Ethics and GlobalEconomics—The Case of Protectionism 165

Rise of Economic Integration 166A New Reality: Global Competition among Global Companiesfor Global Consumers 167

Marketing Matters: The Global Teenager—A Marketof 2 Billion Voracious Consumers with $250 Billion toSpend 170

Emergence of a Networked Global Marketspace 170A Global Environmental Scan 171

Cultural Diversity 171Economic Considerations 175Political-Regulatory Climate 178

Going Online: Checking a Country's Political RiskRating 179

Comparing Global Market-Entry StrategiesExporting 180Licensing 180

179

Marketing Matters: Creative Cosmetics and CreativeExport Marketing in Japan 181

Joint Venture 182Direct Investment 183

Crafting a Worldwide Marketing ProgramProduct and Promotion Strategies 183Distribution Strategy 185Pricing Strategy 186

Learning Objectives Review 186Focusing on Key Terms 187Applying Marketing Knowledge 187Building Your Marketing Plan 187

183

Video Case 7: CNS Breathe Right Strips: Going Global 188

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Part 3 Targeting Marketing Opportunities

8 MARKETING RESEARCH: FROM CUSTOMERINSIGHTS TO ACTIONS 191

How Test Screenings and Tracking Studies Reduce MovieRisks 191

What's in a Movie Name? 191The Risks of Today's (and Tomorrow's) BlockbusterMovies 191Converting Marketing Research Results into Actions 192

The Role of Marketing Research 192What Is Marketing Research? 192The Challenges in Doing Good Marketing Research 192Five-Step Marketing Research Approach 193

Step 1: Define the Problem 193Set the Research Objectives 193Identify Possible Marketing Actions 194

Step 2: Develop the Research Plan 194Specify Constraints 195Identify Data Needed for Marketing Actions 195Determine How to Collect Data 195

Step 3: Collect Relevant Information 196Secondary Data: Internal 196Secondary Data: External 197Advantages and Disadvantages of Secondary Data 197

Marketing Matters: Online Databases and InternetResources Useful to Marketers 198

Primary Data: Watching People 198Primary Data: Asking People 200

Marketing Matters: Buyology: How "Neuromarketing" IsTrying to Understand Consumers 201

Primary Data: Other Sources 205

Using Marketing Dashboards: Are the Carmex SocialMedia Programs Working Well? 206

Advantages and Disadvantages of Primary Data 208

Making Responsible Decisions: No More Personal Secrets:The Downside of Data Mining 209

Step 4: Develop Findings 209Analyze the Data 209Present the Findings 210

Step 5: Take Marketing Actions 211Make Action Recommendations 211Implement the Action Recommendations 212Evaluate the Results 212

Sales Forecasting Techniques 212Judgments of the Decision Maker 212Surveys of Knowledgeable Groups 213Statistical Methods 213

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Learning Objectives Review 214Focusing on Key Terms 215Applying Marketing Knowledge 215Building Your Marketing Plan 215

Video Case 8: Carmex®: Leveraging Facebook for MarketingResearch 216

9 MARKET SEGMENTATION, TARGETING, ANDPOSITIONING 219

Zappos.corn's "Wow" = Segments + Service 219A Clear Market Segmentation Strategy 219Delivering WOW Customer Service 219

Why Segment Markets? 220What Market Segmentation Means 220When and How to Segment Markets 221

Steps in Segmenting and Targeting Markets 224Step 1: Group Potential Buyers into Segments 224

Marketing Matters: To Which "Flock" Do YouBelong? 226

Step 2: Group Products to Be Sold into Categories 230Step 3: Develop a Market-Product Grid and Estimate the Size ofMarkets 231Step 4: Select Target Markets 232Step 5: Take Marketing Actions to Reach Target Markets 233

Marketing Matters: Apple's Segmentation Strategy—Camp Runamok No Longer 235

Market-Product Synergies: A Balancing Act 236Positioning the Product 236

Two Approaches to Product Positioning 236Writing a Positioning Statement 237Product Positioning Using Perceptual Maps 237A Perceptual Map to Reposition Chocolate Milk for Adults 238

Learning Objectives Review 238-Focusing on Key Terms 239Applying Marketing Knowledge 239Building Your Marketing Plan 239

Video Case 9: Prince Sports, Inc.: Tennis Racquets for EverySegment 239

Part 4 Satisfying Marketing Opportunities

10 DEVELOPING NEW PRODUCTS AND SERVICES 243

Apple's New-Product Innovation Machine 243Apple's Innovation Machine 243iCloud: Where the Digital Lifestyle Is Heading

What Are Products and Services? 244A Look at Goods, Services, and Ideas 244

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Classifying Products 244Product Items, Product Lines, and Product Mixes 246How Marketing Dashboards Can Improve New-ProductPerformance 246

Using Marketing Dashboards: Which States AreUnderperforming? 247

New Products and Why They Succeed or FailWhat Is a New Product? 247

247

Marketing Matters: Feature Bloat: Geek Squad to theRescue! 248

Marketing Matters: When a National Brand Doesn't Workin an Unfamiliar Market 250

Why Products and Services Succeed or Fail 251The New-Product Process 253

Stage 1: New-Product Strategy Development 254Stage 2: Idea Generation 254Stage 3: Screening and Evaluation 256Stage 4: Business Analysis 257Stage 5: Development 257

Marketing Matters: Marissa Mayer: The Talent behindGoogle's Familiar White Home Page 258

Stage 6: Market Testing 258Stage 7: Commercialization 259

Learning Objectives Review 260Focusing on Key Terms 261Applying Marketing Knowledge 261Building Your Marketing Plan 262

Video Case 10: Activeion Cleaning Solutions: Marketing aHigh-Tech Cleaning Gadget 262

11 MANAGING SUCCESSFUL PRODUCTS, SERVICES,AND BRANDS 265

Gatorade: Bringing Science to Sweat 265Charting the Product Life Cycle 266

Introduction Stage 266Growth Stage 268Maturity Stage 269

Marketing Matters: Will E-mail Spell Extinction for FaxMachines? 270

Decline Stage 270Four Aspects of the Product Life Cycle

Managing the Product Life Cycle 274Role of a Product Manager 274Modifying the Product 274Modifying the Market 274

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Using Marketing Dashboards: Knowing Your CDI andBDI 275

Repositioning the Product 276

Making Responsible Decisions: Consumer Economics ofDownsizing—Get Less, Pay More 277

Branding and Brand Management 278Brand Personality and Brand Equity 278

Picking a Good Brand Name 280

Going Online: Have an Idea for a Brand or Trade Name?Check It Out 281

Branding Strategies 281Packaging and Labeling Products 284

Creating Customer Value and Competitive Advantage through

Packaging and Labeling 284

Marketing Matters:Creating Customer Value throughPackaging—Pez Heads Dispense More than Candy 285

Packaging and Labeling Challenges and Responses 286

Product Warranty 288

Learning Objectives Review 288Focusing on Key Terms 289Applying Marketing Knowledge 289Building Your Marketing Plan 289

Video Case 11: Mary Kay, Inc.: Building a Brand in India 290

12 SERVICES MARKETING 295

Services: Consumers Want Authentic Experiences 295The Uniqueness of Services 296

The Four I's of Services 297

The Service Continuum 299

Classifying Services 300

Marketing Matters: Social Marketing Is a Must forNonprofits 302

How Consumers Purchase Services 303

The Purchase Process 303

Assessing Service Quality 304

Customer Contact and Relationship Marketing 304

Going Online: How Can You Learn about Service Failures?Media Monitoring! 305

Managing the Marketing of ServicesProduct (Service) 306Price 307Place (Distribution) 307

Promotion 308

People 309

Physical Environment 309

Process 309

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Services in the Future 310

Using Marketing Dashboards: Are JetBlue FlightsProfitably Loaded? 311

Learning Objectives Review 312Focusing on Key Terms 312Applying Marketing Knowledge 313Building Your Marketing Plan 313

Video Case 12: Philadelphia Phillies, Inc.: Sports Marketing101 313

13 BUILDING THE PRICE FOUNDATION 317

The Result of an "Unthrilled Mother": The Launch of Stubhub.com! 317

Plan for the Start-Up 317How StubHub's Pricing Works Now 317

Nature and Importance of Price 318What Is a Price? 318

Marketing Matters: How Flattening the World AffectsPrices, Revenues, and Costs: Infosys Technologies, Ltd.,IKEA ... and You! 320

Price and the Global Marketplace 320Price as an Indicator of Value 320

Marketing Matters: American Eagle "Buy One, Get OneFree" Hoodies: A Good Deal? 322

Price in the Marketing Mix 322Step 1: Identify Pricing Objectives and Constraints

Identifying Pricing Objectives 323Identifying Pricing Constraints 324

323

Marketing Matters: The Revolutionary Impact of Walmart'sEvery Day Low Prices (EDLP) Strategy 327

Step 2: Estimate Demand and Revenue 328Fundamentals of Estimating Demand 328Fundamentals of Estimating Revenue 330

Step 3: Determine Cost, Volume, and Profit Relationships 333The Importance of Controlling Costs 333Marginal Analysis and Profit Maximization 334Break-Even Analysis 334

Learning Objectives Review 338Focusing on Key Terms 339Applying Marketing Knowledge 339Building Your Marketing Plan 340

Video Case 13: Washburn Guitars: Using Break-Even Points toMake Pricing Decisions 340

14 ARRIVING AT THE FINAL PRICE 343

Vizio, Inc.—Where Vision Meets Value™ in HDTVStep 4: Select an Approximate Price Level 344

Demand-Oriented Pricing Approaches 344

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Marketing Matters: Energizer's Lesson in PricePerception—Value Lies in the Eye of the Beholder 346

Cost-Oriented Pricing Approaches 347Profit-Oriented Pricing Approaches 349Competition-Oriented Pricing Approaches 351

Step 5: Set the List or Quoted Price 352

Using Marketing Dashboards: Are Red Bull Prices Above,At, or Below Market? 353

Choosing a Price Policy 353Company, Customer, and Competitive Effects on Pricing 354

Making Responsible Decisions: Flexible Pricing—Is ThereDiscrimination in Bargaining for a New Car? 355

Balancing Incremental Costs and Revenues 356Step 6: Make Special Adjustments to the List Or QuotedPrice 357

Discounts 358Allowances 359Geographical Adjustments 360

Marketing Matters: Everyday Low Prices at theSupermarket = Everyday Low Profits—Creating CustomerValue at a Cost 361

Legal and Regulatory Aspects of Pricing 361

Going Online: And You Thought That "Free" Is SimplyDefined 364

Learning Objectives Review 364Focusing on Key Terms 365Applying Marketing Knowledge 365Building Your Marketing Plan 365

Video Case 14: 3M Greptile Grip Golf Glove: Pricing anInnovative Product 366

APPENDIX B Financial Aspects of Marketing 368

15 MANAGING MARKETING CHANNELS AND SUPPLYCHAINS 377

Callaway Golf: Designing and Delivering the Goods~for GreatGolf 377Nature and Importance of Marketing Channels 378

What Is a Marketing Channel of Distribution? 378Value Is Created by Intermediaries 378

Channel Structure and Organization 380Marketing Channels for Consumer Products and Services 380Marketing Channels for Business Products and Services 381Electronic Marketing Channels 382Direct and Multichannel Marketing 382Dual Distribution and Strategic Channel Alliances 383

Marketing Matters: Nestle and General Mills—CerealPartners Worldwide 384

Vertical Marketing Systems 384

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Marketing Channel Choice and Management 386Factors Affecting Channel Choice and Management 386

Going Online: Visit an Apple Store to See What All theExcitement Is About 387

Managing Channel Relationships: Conflict andCooperation 388

Using Marketing Dashboards: Channel Sales and Profit atCharlesburg Furniture 389

Logistics and Supply Chain Management 392Supply Chains versus Marketing Channels 392Sourcing, Assembling, and Delivering a New Car: TheAutomotive Supply Chain 392

Marketing Matters: IBM's Integrated Supply Chain—Delivering a Total Solution for Its Customers 394

Supply Chain Management and Marketing Strategy 394Two Concepts of Logistics Management in a SupplyChain 396

Total Logistics Cost Concept 396Customer Service Concept 396

Making Responsible Decisions: Reverse Logistics andGreen Marketing Go Together at Hewlett-Packard:Recycling e-Waste 397

Closing the Loop: Reverse Logistics 398

Learning Objectives Review 398Focusing on Key Terms 399Applying Marketing Knowledge 399Building Your Marketing Plan 399

Video Case 15 Amazon: Delivering the Goods . . . Millions of

Times a Day 400

16 RETAILING AND WHOLESALING 403

Retailers Love It When the Mayor Visits! 403The Value of Retailing 404

Consumer Utilities Offered by Retailing 404The Global Economic Impact of Retailing 405

Classifying Retail Outlets 406Form of Ownership 406

Making Responsible Decisions: Green Isn't Just a Color toRetailers. It's a Value! 407

Level of Service 408Type of Merchandise Line 409

Nonstore Retailing 411Automatic Vending 411Direct Mail and Catalogs 412Television Home Shopping 413Online Retailing 413

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Going Online: For Some Consumers, Shopping Is aGame! 414

Telemarketing 415Direct Selling 415

Retailing Strategy 416Positioning a Retail Store 416Retailing Mix 417

Using Marketing Dashboards: Why Apple Stores May Bethe Best in the United States 421

The Changing Nature of Retailing 422The Wheel of Retailing 422The Retail Life Cycle 423

Future Changes in Retailing 424Multichannel Retailing 424Managing the Customer Experience 424

Marketing Matters: The Multichannel MarketingMultiplier 425

Wholesaling 425Merchant Wholesalers 425Agents and Brokers 426Manufacturer's Branches and Offices 426

Learning Objectives Review 427Focusing on Key Terms 427Applying Marketing Knowledge 427Building Your Marketing Plan 428

Video Case 16: Mall of America®: Shopping and a Whole LotMore 428

17 INTEGRATED MARKETING COMMUNICATIONS ANDDIRECT MARKETING 431

Get Engaged. . . in the Twitterverse! 431The Communication Process 432

Encoding and Decoding 433Feedback 434Noise 434

The Promotional Elements 434Advertising 434Personal Selling 435Public Relations 436Sales Promotion 437Direct Marketing 437

Integrated Marketing Communications—Developing thePromotional Mix 438

The Target Audience 438

Marketing Matters: How Can You Reach Generation Y?With Mobile Marketing! 439

The Product Life Cycle 439Product Characteristics 440

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Stages of the Buying Decision 441Channel Strategies 442

Developing an IMC Program 443Identifying the Target Audience 444Specifying Promotion Objectives 444Setting the Promotion Budget 445

Using Marketing Dashboards: How Much Should YouSpend on IMC? 446

Selecting the Right Promotional Tools 447Designing the Promotion 447Scheduling the Promotion 447

Executing and Assessing the Promotion Program 448Direct Marketing 449

The Growth of Direct Marketing 449The Value of Direct Marketing 450Technological, Global, and Ethical Issues in DirectMarketing 451

Making Responsible Decisions: What Information ShouldBe Private? 452

Learning Objectives Review 452Focusing on Key Terms 453Applying Marketing Knowledge 453Building Your Marketing Plan 453

Video Case 17 Mountain Dew: Using IMC and Social Mediato Create and Promote a New Flavor 454

18 ADVERTISING, SALES PROMOTION, AND PUBLICRELATIONS 457

Where Can You Watch TV? Where Can't You? 457Types of Advertisements 458

Product Advertisements 458Institutional Advertisements 459

Developing the Advertising Program 460• - Identifying the Target Audience 460

Specifying Advertising Objectives 460Setting the Advertising Budget 461

Going Online: See Your Favorite Super Bowl Ads Again,and Again! 462

Designing the Advertisement 462Selecting the Right Media 465

Using Marketing Dashboards: What Is the Best Way toReach 1,000 Customers? 467

Different Media Alternatives 467

Making Responsible Decisions: Who Is Responsible forClick Fraud? 473

Scheduling the Advertising 474

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Executing the Advertising Program 475Pretesting the Advertising 475 .Carrying Out the Advertising Program 475

Assessing the Advertising Program 476Posttesting the Advertising 476Making Needed Changes 477

Sales Promotion 477Consumer-Oriented Sales Promotions 477Trade-Oriented Sales Promotions 482

Public Relations 484Publicity Tools 484

Increasing the Value of Promotion 484Building Long-Term Relationships 485Self-Regulation 485

Learning Objectives Review 486Focusing on Key Terms 486Applying Marketing Knowledge 486Building Your Marketing Plan 487

Video Case 18: Google, Inc.: The Right Ads at the RightTime 487

19 USING SOCIAL MEDIA TO CONNECT WITHCONSUMERS 491

Connecting with Today's College Students Using Facebook andTwitter 491

Freshman Move-In Day at West Virginia University 491The New Age of Social Media 491

Understanding Social Media 492What Are Social Media? 492Comparing Social and Traditional Media 494

A Look at Four Important Social Networks 495Facebook 495Twitter 498Linkedln 499YouTube 500

Marketing Matters: What Are Some of Your OtherFavorite Social Networks? 501

Integrating Social Media Into Today's MarketingStrategies 502

Social Media and the Strategic Marketing Process 502Selecting the Social Network 502How Social Media Produce Sales 504Measuring the Results of Social Media Programs 505Greenpeace vs. Nestle's Kit Kat: A NightmarishMeltdown 507

The Future: Social Media + Smartphones + Exotic Apps 508The Convergence of the Real and Digital Worlds 508How This Convergence Links Social Media to MarketingActions 509

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Marketing Matters: The Coolest, Wildest, Weirdest, and... Best... Mobile Apps 509

Where to Now? 510The Global Reach of Social Media 511

Learning Objectives Review 512Focusing on Key Terms 513Applying Marketing Knowledge 513Building Your Marketing Plan 513

Video Case 19: AOI Marketing: Using Facebook to Launch

Bitter Girls 514

20 PERSONAL SELLING AND SALESMANAGEMENT 517

Meet Today's Sales Professional 517Scope and Significance of Personal Selling and SalesManagement 518

Nature of Personal Selling and Sales Management 518Selling Happens Almost Everywhere 518Personal Selling in Marketing 519Creating Customer Solutions and Value through Salespeople:Relationship and Partnership Selling 519

The Many Forms of Personal Selling 520Order-Taking Salespeople 520Order-Getting Salespeople 521Customer Sales Support Personnel 522

Marketing Matters: Creating and Sustaining CustomerValue through Cross-Functional Team Selling 523

The Personal Selling Process: Building Relationships 524Prospecting: Identifying and Qualifying ProspectiveCustomers 524Preapproach: Preparing for the Sales Call 525Approach: Making the First Impression 526Presentation: Tailoring a Solution for a Customer's Needs 526

Marketing Matters: Imagine This ... Putting the Customerinto Customer Solutions! 528

Close: Asking for the Customer's Order or Business 529Follow-Up: Solidifying the Relationship 529

The Sales Management Process 530Sales Plan Formulation: Setting Direction 530

Making Responsible Decisions: The Ethics of AskingCustomers about Competitors 531

Sales Plan Implementation: Putting the Plan into Action 534

Going Online: What Is Your Emotional Intelligence? 536

Salesforce Evaluation: Measuring Results 537

Using Marketing Dashboards: Tracking SalespersonPerformance at Moore Chemical & Sanitation Supply,Inc. 538

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Salesforce Automation and Customer RelationshipManagement 538

Learning Objectives Review 540Focusing on Key Terms 541Applying Marketing Knowledge 541Building Your Marketing Plan 541

Video Case 20: Xerox: Building Customer Relationshipsthrough Personal Selling 542

Part 5 Managing the Marketing Process

21 IMPLEMENTING INTERACTIVE AND MULTICHANNELMARKETING 545

Seven Cycles. One Bike. Yours. 545Creating Customer Value, Relationships, and Experiences inMarketspace 546

Customer Value Creation in Marketspace 546Interactivity, Individuality, and Customer Relationships inMarketspace 547Creating an Online Customer Experience 549

Online Consumer Behavior and Marketing Practice inMarketspace 551

Who Is the Online Consumer? 551

Using Marketing Dashboards: Sizing Up Site Stickiness atSewell Automobile Companies 552

Going Online: Are You a Roving Node or a DriftingSurfer? 553

Marketing Matters: Meet Today's Internet Mom 554

What Online Consumers Buy 554Why Consumers Shop arid Buy Online 555

Making Responsible Decisions: Who Is Responsible forInternet Privacy and Security? 559

When and Where Online Consumers Shop and Buy 560Cross-Channel Shoppers and Multichannel Marketing- 560

Who Is the Cross-Channel Shopper? 560Implementing Multichannel Marketing 560

Learning Objectives Review 562Focusing on Key Terms 563Applying Marketing Knowledge 563Building Your Marketing Plan 564

Video Case 21: Pizza Hut and imc2: Becoming a MultichannelMarketer 564

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22 PULLING IT ALL TOGETHER: THE STRATEGICMARKETING PROCESS 569

Reaching Today's On-the-Go Consumer by Breaking the Rulesat "Big G" 569

Cereal Industry Facts of Life 569Creative Initiatives Outside Cereals 570

Marketing Basics: Doing What Works and AllocatingResources 570

Finding and Using What Really Works 571Allocating Marketing Resources Using Sales ResponseFunctions 572

The Planning Phase of the Strategic Marketing Process 575The Vital Importance of Metrics in Marketing Planning 575The Variety of Marketing Plans 576Marketing Planning Frameworks: The Search for Growth 576

Marketing Matters: A Test of Your Skills: Where Are theSynergies? 578

Some Marketing Planning and Strategy Lessons 580The Implementation Phase of the Strategic MarketingProcess 582

Is Planning or Implementation the Problem? 582

Marketing Matters: It Came Out of the Blue: ChobaniGreek Yogurt! 583

Increasing Emphasis on Marketing Implementation 584Improving Implementation of Marketing Programs 584Organizing for Marketing 586

The Evaluation Phase of the Strategic Marketing Process 588The Marketing Evaluation Process 588Evaluation Involves Marketing ROI, Metrics, andDashboards 589Evaluation Using Marketing Metrics and Marketing Dashboardsat General Mills 590

Learning Objectives Review 592Focusing on Key Terms 593Applying Marketing Knowledge 593Building Your Marketing Plan 593

Video Case 22: General Mills Warm Delights: Indulgent,Delicious, and Gooey! 593

APPENDIX C Planning a Career in Marketing 596

APPENDIX D Alternate Cases 614Case D-1 Nike MaxSight Contact Lenses: Seeing a Need 614Case D-2 Daktronics, Inc.: Global Displays in 68 Billion Colors 615Case D-3 Jamba Juice: Scanning the Marketing Environment 617Case D-4 BP's Deepwater Horizon: Ethics and EnvironmentalEffects 619

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Case D-5 The Jamisons Buy an Espresso Machine 621Case D-6 Motetronix Technology: Marketing Smart Dust 622Case D-7 Callaway Golf: The Global Challenge 623

Case D-8 HOM Furniture: Where Keen Observation Pays 626Case D-9 Lawn Mowers: Segmentation Challenges 627Case D-10 Medtronic in China: Where "Simpler" Serves PatientsBetter 628Case D-11 Pampered Pooches Travel in Style 630Case D-12 DigitalThink: Marketing E-Learning Services 631Case D-13 Health Cruises, Inc.: Estimating Cost, Volume, and ProfitRelationships 633Case D-14 Glitzz: Devising a Pricing Strategy 634Case D-15 Shiseido: Channeling Cosmetics in China 635Case D-16 Dell Inc.: A Foundation Built on Supply ChainManagement 638Case D-17 Trader Joe's: Upscale Value 639Case D-18 Banyan Tree Holdings: Creating a Brand with IMC 640Case D-19 Target Corporation: Award-Winning Advertising 644Case D-20 Morgantown Furniture: Making Promotion Trade-Offs 645Case D-21 Crate and Barrel: Multichannel Marketing 647Case D-22 Naked® Juice: Strategy for Growth 647

Glossary 649Learning Review Answers 660Chapter Notes 671Credits 707Name Index 709Company/Product Index 717Subject Index 724