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Chapter 1 Get to Know Marketing1

Chapter Objectives1

1.1 Defining Marketing1

1.2 Core Terms3

1.2.1 Needs,Wants and Demands3

1.2.2 Products4

1.2.3 Value,Cost and Satisfaction4

1.2.4 Exchange,Transactions and Relationships5

1.2.5 Markets and Marketers6

1.2.6 Marketing Mix7

1.3 Marketing Philosophies11

1.3.1 Production Concept11

1.3.2 Product Concept11

1.3.3 Selling Concept12

1.3.4 Marketing Concept12

1.3.5 Societal Marketing Concept14

1.4 Marketing Process15

1.4.1 Analyzing Marketing Opportunities15

1.4.2 Selecting the Target Market16

1.4.3 Developing the Marketing Mix16

1.4.4 Managing the Marketing Effort16

1.5 Scope,Functions and Utilities of Marketing19

1.6 Marketing in Today's Economic Environment20

1.6.1 Competition20

1.6.2 Internet/Word of Mouth21

1.6.3 Consumer Decision Making21

1.6.4 Niche Markets Rising Up21

Chapter Questions22

Multiple Choice Questions22

Glossary24

Chapter 2 Buyer and Buyer Behaviour26

Chapter Objectives26

2.1 What Is a Buyer?26

2.2 Customer Satisfaction27

2.3 Consumer Buying Behaviour28

Hierarchy of Needs28

2.4 Factors Influencing Consumer Buying Behavior30

2.4.1 Cultural Factors30

2.4.2 Social Factors32

2.4.3 Personal Factors33

2.4.4 Psychological Factors36

2.4.5 Situational Factors38

2.5 Consumer Buying Decision Process40

2.5.1 Problem Recognition40

2.5.2 Information Search41

2.5.3 Alternative Evaluation41

2.5.4 Purchase Decision42

2.5.5 Postpurchase Behavior42

2.5.6 Buying Process in Reality43

2.5.7 Consumer Involvement and Types of Buying Decision43

2.5.8 Family Decision Making45

2.6 Industrial Buying Behavior48

2.6.1 Industrial Buying Tasks48

2.6.2 Industrial Buyer Decision Process49

2.6.3 Main Influences on Business Buyers50

2.6.4 Decision-Making Unit51

2.7 Customer Relationship and CRM52

Chapter Questions55

Multiple Choice Questions55

Glossary56

Chapter 3 Marketing Environment59

Chapter Objectives59

3.1 What Is Marketing Environment?59

3.2 The Internal Environment60

3.3 The Micro Environment61

3.4 The Macro Environment63

3.4.1 Political Environment63

3.4.2 Economic Environment64

3.4.3 Social Environment65

3.4.4 Technological Environment65

3.4.5 Other Factors to Include66

3.5 Situational Analysis68

3.5.1 Gap Analysis68

3.5.2 SWOT Analysis69

3.5.3 Competitive Analysis71

3.5.4 Responding to External Environment71

3.6 Environment Scanning ＆ Future Trends72

3.6.1 Environment Scanning72

3.6.2 Technological Advancement74

3.6.3 Anticipated New Trends74

Chapter Questions75

Multiple Choice Questions76

Glossary77

Chapter 4 Segmentation,Targeting and Positioning79

Chapter Objectives79

4.1 What Is a Market?80

4.1.1 An Expansive Definition80

4.1.2 Types of Markets81

4.2 Market Segmentation82

4.2.1 Why Segmenting?82

4.2.2 Segmenting Variables83

4.2.3 Segmentation Requirements85

4.2.4 Segmenting Industrial Market86

4.3 Targeting87

4.3.1 Target Market88

4.3.2 Evaluating Market Segments88

4.3.3 The Psychology of Target Marketing89

4.3.4 Strategies for Reaching Target Markets90

4.4 Positioning92

4.4.1 Consumer's Perceptual Map92

4.4.2 Positioning Strategies94

4.4.3 Positioning Process96

4.4.4 Repositioning97

Chapter Questions98

Multiple Choice Questions99

Glossary101

Chapter 5 Marketing Research103

Chapter Objectives103

5.1 Marketing Research Basics104

5.1.1 What Is Marketing Research?104

5.1.2 General Procedure of Marketing Research107

5.1.3 Types of Data111

5.1.4 Marketing Information Systems112

5.2 Focusing on Research Design115

5.2.1 Exploratory Studies116

5.2.2 Descriptive Studies117

5.2.3 Casual Studies118

5.2.4 Choosing a Research Design118

5.3 Sampling119

5.3.1 Sample Plan119

5.3.2 Sampling Frame120

5.3.3 Sampling Methods121

5.3.4 Sample Size122

5.3.5 Sampling and Non-sampling Error123

5.4 Surveys and Interviews124

5.4.1 Survey Types125

5.4.2 Questionnaire Design128

5.4.3 Interview Technique129

5.5 Observation and Experiment130

5.5.1 Observation130

5.5.2 Experiment131

5.5.3 Test Marketing132

5.6 Presenting Findings134

5.7 International Marketing Research135

5.7.1 Cultural Differences136

5.7.2 Language Issues136

5.7.3 Ways Out136

5.7.4 More to Confront137

Chapter Questions137

Multiple Choice Questions138

Glossary139

Chapter 6 Product,Branding and Packaging142

Chapter Objectives142

6.1 Product143

6.1.1 Product or Offering?143

6.1.2 Levels of Product144

6.1.3 Classification of Goods146

6.1.4 Individual Product Decisions149

6.1.5 Product Line Decisions150

6.1.6 Product Mix Decisions152

6.1.7 Adjustments to Products153

6.1.8 Product Life Cycle154

6.1.9 New Product Development(NPD)160

6.2 Branding169

6.2.1 What Is a Brand?169

6.2.2 Purpose of Branding170

6.2.3 Brand Loyalty171

6.2.4 Brand Equity172

6.2.5 Brand Positioning173

6.2.6 Naming a Brand174

6.2.7 Brand Sponsorship175

6.2.8 Brand Development177

6.3 Packaging178

6.3.1 Defining Packaging178

6.3.2 Classification of Packaging180

6.3.3 Packaging Considerations181

6.3.4 Labeling181

6.3.5 Problems with Packaging182

6.4 Global Considerations in Branding and Packaging183

6.4.1 Language184

6.4.2 Colors184

6.4.3 Customs and Taboos184

6.4.4 Aesthetics184

6.4.5 Placement184

Chapter Questions185

Multiple Choice Questions185

Glossary188

Chapter 7 Pricing192

Chapter Objectives192

7.1 Price192

7.1.1 What Is a Price?192

7.1.2 Value and Relative Value193

7.1.3 Price as a Variable of Marketing Mix194

7.1.4 How to Set a Price?195

7.2 Pricing Objectives197

7.2.1 Profit-Based Sales Targets199

7.2.2 Return on Investment200

7.2.3 Market Share201

7.2.4 Cash Flow202

7.2.5 Status Quo202

7.2.6 Quality Leadership203

7.3 Demand Analysis203

7.3.1 Demand and Demand Curve203

7.3.2 How Do Supply and Demand Influence Price?205

7.3.3 Elasticity of Demand205

7.4 Estimating Costs207

7.5 General Pricing Strategies208

7.5.1 Cost-Based Pricing208

7.5.2 Demand-Based Pricing209

7.5.3 Competitor-Based Pricing211

7.5.4 Markup Pricing212

7.6 Specific Pricing Strategies214

7.6.1 New Product Pricing214

7.6.2 Psychological Pricing215

7.6.3 Everyday Low Pricing216

7.6.4 High/Low Pricing216

7.6.5 Other Pricing Strategies217

7.7 Pricing Tactics218

7.7.1 Discounting218

7.7.2 Geographic Pricing219

7.7.3 Promotional Pricing220

7.7.4 Product-mix Pricing221

7.7.5 Discriminatory pricing222

7.8 Legal Concerns of Pricing223

7.8.1 Unfair Trade Practices223

7.8.2 Illegal Price Advertising224

7.8.3 Predatory Pricing225

7.8.4 Price Discrimination226

7.8.5 Price Fixing227

Chapter Questions228

Multiple Choice Questions228

Glossary231

Chapter 8 Distribution Channels235

Chapter Objectives235

8.1 Channel and Channel Selecting235

8.1.1 Channel as a Variable of Marketing Mix235

8.1.2 Cost of Utilizing Channels237

8.1.3 Characteristics of a Channel237

8.1.4 How to Decide on Channels?238

8.2 Channel Partners239

8.2.1 Wholesalers239

8.2.2 Retailers241

8.2.3 Functions Performed by Channel Partners242

8.3 Channel Structure244

8.3.1 Business-to-Consumer Channels244

8.3.2 Business-to-Business Channels245

8.3.3 Multiple Channels246

8.3.4 Alternative Arrangements for Other Markets248

8.4 Marketing Channel Decisions249

8.4.1 Channel Objectives250

8.4.2 Channel Selection Factors251

8.4.3 Distribution Intensity252

8.5 Marketing Channel Relationships254

8.5.1 Competitive Priorities in Marketing Channels254

8.5.2 Channel Power and Channel Conflict254

8.5.3 Channel Partnering256

8.5.4 Channel Integration257

8.6 Retailing257

8.6.1 Retailing and Its Importance257

8.6.2 Retail Marketing Strategy258

8.6.3 Ongoing Trends in Retailing259

8.6.4 Future of Retailing260

8.7 Supply Chains and Logistics261

8.7.1 Supply Chains261

8.7.2 Distribution and Logistics262

8.7.3 Warehousing263

8.7.4 Transportation264

Chapter Questions266

Multiple Choice Questions266

Glossary268

Chapter 9 Promotion and IMC271

Chapter Objectives271

9.1 Understanding Promotion272

9.1.1 What Is Promotion?272

9.1.2 Promotion Objectives273

9.2 Promotional Mix274

9.2.1 Advertising275

9.2.2 Personal Selling276

9.2.3 Sales Promotion277

9.2.4 Public Relations278

9.2.5 Direct Marketing280

9.3 Consideration of a Promotional Mix281

9.3.1 Target Market Characteristics281

9.3.2 Characteristics of the Product281

9.3.3 Type of Buying Decisions282

9.3.4 Funds Available Relative to Costs283

9.3.5 Push and Pull Strategies283

9.4 Integrated Marketing Communications(IMC)284

9.4.1 Why IMC?284

9.4.2 The Communication Process286

9.4.3 Consumer Perception of Communication287

9.4.4 AIDA Model288

9.5 Roadmap of IMC289

9.5.1 Setting Objectives290

9.5.2 Determining a Budget291

9.5.3 Measuring Success291

9.5.4 Internet and Word of Mouth292

Chapter Questions293

Multiple Choice Questions294

Glossary297

Chapter 10 Advertising ＆ Public Relations298

Chapter Objectives298

10.1 Advertising as a Mass Communication298

10.1.1 Defining Advertising298

10.1.2 Corporate Advertising or Product Advertising299

10.2 Advertising Campaign301

10.2.1 Define Campaign Objectives302

10.2.2 Determine a Budget304

10.2.3 Create a Media Plan305

10.2.4 Focus of Advertisements310

10.2.5 Measure Impact with Metrics313

10.3 Public Relations315

10.3.1 Public Relation Tools315

10.3.2 Handling Unfavorable Publicity317

10.3.3 Measuring Effectiveness of Public Relations Efforts318

Chapter Questions319

Multiple Choice Questions319

Glossary321

Chapter 11 Personal Selling ＆ Sales Promotion324

Chapter Objectives324

11.1 What Is Personal Selling?324

11.1.1 Personal Selling Objectives325

11.1.2 Value of Personal Selling326

11.2 Personal Selling Process327

11.2.1 Steps in Personal Selling328

11.2.2 Implementing the Personal Selling Process330

11.2.3 CRM and Personal Selling331

11.3 Selling Roles332

11.3.1 Proactive Representative332

11.3.2 Passive Representative333

11.3.3 Consultant334

11.3.4 Support Personnel335

11.4 Types of Selling337

11.4.1 Team Selling337

11.4.2 Relationship Selling337

11.5 Managing Sales Force338

11.5.1 Creating Sales Force Structure,Territories ＆ Goals338

11.5.2 Recruiting and Selecting Salespeople340

11.5.3 Sales Training341

11.5.4 Motivating ＆ Compensating Salespeople343

11.5.5 Measuring Sales Force Performance345

11.6 Sales Promotion346

11.6.1 Objectives of a Sales Promotion346

11.6.2 Sales Promotions and Customer Needs346

11.7 Consumer Sales Promotion Methods347

11.7.1 Coupons347

11.7.2 Rebates349

11.7.3 Premiums350

11.7.4 Loyalty Marketing351

11.7.5 Contests ＆ Sweepstakes352

11.7.6 Sampling354

11.7.7 Point-of-Purchase Promotions355

11.7.8 Online Sales Promotion356

11.8 Trade Sales Promotion357

11.8.1 Trade Allowances357

11.8.2 Training Programs358

Chapter Questions358

Multiple Choice Questions359

Glossary362

Chapter 12 Strategic Marketing Planning364

Chapter Obiectives364

12.1 Strategic Planning364

12.1.1 What Is Strategic Planning?364

12.1.2 Value of Strategic Planning365

12.1.3 Levels of Strategic Planning365

12.2 Steps of Planning368

12.2.1 Setting Corporate Mission and Objectives368

12.2.2 Arialyzing the Current Situation370

12.2.3 Creating Marketing Strategy374

12.2.4 Marketing Plan380

12.3 Implementation of Marketing Planing382

12.3.1 Institutionalization of Strategy383

12.3.2 Setting Proper Organizational Climate383

12.3.3 Developing Appropriate Organization Structure383

12.3.4 Periodic Review of Strategy384

12.4 Marketing Control384

12.5 Meeting the Competition:Analysis and Strategies385

12.5.1 Market Structure385

12.5.2 Primary Competitive Positions387

12.5.3 Competitor Analysis387

12.5.4 Competitive Strategies389

12.5.5 Balancing Customer and Competitor Orientations391

Chapter Questions392

Multiple Choice Questions392

Glossary394

Chapter 13 Global Marketing397

Chapter Objectives397

13.1 Introduction to Global Marketing397

13.1.1 Trade and Globalization397

13.1.2 Go Global or Not?399

13.1.3 Tapping into Global Markets401

13.1.4 Standardization or Adaptation?403

13.2 The Global Marketing Environment404

13.2.1 Social and Cultural Environment404

13.2.2 Measuring the Economic Environment406

13.2.3 Political and Regulatory Environment408

13.2.4 Demographics of New Markets409

13.2.5 Other Factors410

13.3 Global Marketing Mix412

13.3.1 Product in the Light of Promotion413

13.3.2 Changes in Promotion414

13.3.3 Changes in Distribution414

13.3.4 Changes in Pricing415

13.3.5 Global Marketing in E-era416

13.4 Organizational Structure of Global Marketing418

13.4.1 Operational Underpinnings418

13.4.2 Centralized or Decentralized?418

13.4.3 Structure Alternatives419

Chapter Questions419

Multiple Choice Questions420

Glossary422

Chapter 14 Digital Marketing and Social Media424

Chapter Objectives424

14.1 Understanding Digital Marketing424

14.1.1 What Is Digital Marketing?424

14.1.2 Digital Marketing Methods425

14.2 The Rise of Social Media426

14.2.1 What Is Social Media?426

14.2.2 Types of Social Media429

14.3 Online Consumer Behavior430

14.3.1 Consumers with WWW430

14.3.2 Online Behavioral Trends432

14.3.3 Behavioral Targeting433

14.4 Research Using Digital Media434

14.4.1 Application of Digital Media in Research434

14.4.2 Collecting and Analyzing Online Consumer Data435

14.4.3 Consumer Privacy Issues435

14.5 Adapting to New Media Landscape437

14.5.1 Internet Advertising437

14.5.2 Social Media Marketing Communications439

14.5.3 Marketing Mix in Social Media441

14.5.4 Mobile Marketing442

Chapter Questions444

Multiple Choice Questions444

References446

Source of Figures449

Source of Tables454