Core Concepts & Applications. 2nd Asia-Pacific edition
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1 Core Concepts & Applications 2nd Asia-Pacific edition
2 About the authors Professor Greg Elliott is Professor of Marketing and Head of the Department of Business at Macquarie University. Prior to taking up this appointment, Greg was Professor of Management and Discipline Convenor (Marketing and Strategy) at Macquarie Graduate School of Management. Greg has held academic positions at a number of other Australian and overseas universities, and prior to his academic career he worked in banking for more than 10 years. Greg has published articles in Australian, European, North American and Asian journals in a number of fields^ including marketing theory, market research, international marketing, financial services marketing, futures research and management education. He currently teaches marketing management, strategic marketing and services marketing. He also has extensive experience in management education and training in Australia and Asia for major international and local companies. Associate Professor Sharyn Rundle-Thiele is Associate Professor in the Department of Management and Marketing at the University of Southern Queensland. Sharyn is an experienced marketing researcher, lecturer and manager. She has direct marketing experience in several industries in Australia where she has been involved in marketing planning and/or market research consulting. These industries include most notably food manufacturing and marketing, as well as telecommunications, electricity, engineering and professional services. Sharyn has consulted for both private organisations such as Herron Todd White and government organisations such as Sydney Ports Corporation. Dr David Waller is a Senior Lecturer in Marketing at the University of Technology, Sydney. After having worked in the banking and film industries, David has taught marketing and advertising subjects at a number of universities in Australia, including the University of Newcastle, the University of New South Wales and Charles Start University, Riverina. He has undertaken research in a wide range of areas relating to advertising and marketing communication, and has authored/coauthored a number of articles that have appeared in various local and overseas academic journals. David's workbooks on marketing plans and promotional plans are used by marketing and advertising students at tertiary institutions in a number of countries. Dr Angela Paladino is a Lecturer in the Department of Management and Marketing at the University of Melbourne where she teaches introductory marketing subjects at the undergraduate and postgraduate level. Angela has a PhD in strategic marketing and management from the University of Melbourne and received the Chancellor's Medal for Excellence in a PhD thesis. She has also received recognition for Teaching Excellence in the Faculty of Economics and Commerce. Her articles have appeared in publications by the American Marketing Association, the Academy of Marketing Science, the European Marketing Academy, the Australia and New Zealand Marketing Academy and the Strategic Management Society, as well as in the Journal of Customer Behaviour. Angela actively researches in consumer behaviour, environmental marketing, and strategic marketing and management.
3 Contents Real-world examples at a glance Accompanying resources xvi Preface xvii Acknowledgements xix How to use this book xxi xiv PART 1 Marketing and its environment l Marketing's role in business and society 2 Piecing it all together 4 Marketing defined 5 international marketing Gourmet Garden: An award-winning performance 6 counterpoint Marketing mix frameworks 7 Understanding the marketing concept 12 marketing in action See what your customers see 12 Managing customer relationships 15 Value-driven marketing 16 Marketing management 18 The importance of marketing in our global economy 19 Chapter review 24 Key concepts 25 Discussion questions 25 Marketing applications 25 Case study: Vodafone: connecting with customers 26 Planning marketing strategies 28 [yellow tail] seized a window of opportunity 30 Understanding the strategic planning process 31 Assessing organisational resources and opportunities 33 Establishing an organisational mission and goals 34 Developing corporate, business-unit and marketing strategies 36 ma rketi ng i n action Gaining efficiency through the Web: the Adelaide Fringe 3 7 ethics Corporate social responsibility (CSR) versus satisfaction in banking 42 Creating the marketing plan 45 Implementing marketing strategies 46 Approaches to marketing strategy 47 Chapter review 49 Key concepts 50
4 Discussion questions 50 Marketing applications 50 Case study: If you build it The marketing environment, social responsibility and ethics 54 Brumby's adapts to the marketing environment 56 The marketing environment 57 ma rketi ng i n action Environmental forces affecting the logistics industry 67 Social responsibility and ethics in marketing 70 ethics Is sharing digital music and movie files ethical? 73 counterpoint te marketing responsible for affluenza? 77 Chapter review 80 Key concepts 80 C Discussion questions 80 Marketing applications 81 Case study: Childhood obesity: is it marketing's fault? 81 Market research and information systems 84 Research helps to rejuvenate the Listerine brand 86 The importance of market research 87 marketing in action Real men don't use skincare products or do they? 88 The market research process 89 marketing in action ACNielsen a global company 93 marketing in action AUSTAR: Controlling chum 103 Issues in market research 104 international marketing The keys to researching overseas markets 106 Chapter review 107 Key concepts 107 Discussion questions 108 Marketing applications 108 Case study: Cycling towards a better understanding 108 PART 2 Target market selection and buyer behaviour ill Target markets: segmentation and evaluation 112 Bursting with goodness (and sales) 114 What is a market? 115 The target market selection process 116 Market segmentation 116 marketing in action The changing face of New Zealand 121 marketing in action The Fred Hollows Foundation 122 marketing in action Market segmentation at Esanda Fleet Partners 126
5 ( ] Market targeting 126 Market positioning 132 Chapter review 137 Key concepts 138 Discussion questions 138, Marketing applications 138 Case study: Jetstar: up, up and away 139 Appendix: developing sales forecasts Consumer buying behaviour 144 I am (still) woman 146 Level of involvement and consumer problem-solving processes 147 The consumer buying decision process 149 Situational influences on the buying decision process 152 delivering customer value Banks turn on the charm 153 Psychological influences on the buying decision process 154 tech know WhoseSpace? 158 Social influences on the buying decision process 159 marketing in action Chapter review 165 Key concepts 166 Discussion questions 166 Marketing applications 166 Case study.-end of the love-in 167 Kelly Ryan, Manager Marketing, Fulfilment and Events, Western Bulldogs 163 Business markets and buying behaviour 170 When your competitors become your suppliers 172 Business markets 173 marketing in action Reseller markets for a tourism product: Tony Coates, Director of Sales, Story Bridge Adventure Climb 175 Dimensions of marketing to business customers 177 tech know E-procurement and supply chain strategies 179 Business buying decisions 182 Similarities with consumer markets 186 Industrial classification systems 187 Chapter review 189 Key concepts 190 Discussion questions 190 Marketing applications 190 Case study: When your customer becomes your competitor
6 PART 3 Product decisions 193 Product, branding and packaging concepts 194 Twenty20 vision 196 What is a product? 197 tech know Technology brings eye-catching colours to packaging 199 Classifying products 199 Product line and product mix 203 Product life cycles and marketing strategies 205 ethics The mobile tweens 209 Product adoption process 210 Branding 211 ethics Nike: rebuilding trust 216 Packaging 219 Labelling 222 Chapter review 224 Key concepts 225 Discussion questions 225 Marketing applications 226 Case study: Kylie Minogue: a true performer 226 Developing and managing goods and services 228 Vittoria Coffee 230 Managing existing products 231 Developing new products 233 marketing in action Baretto 241 Product differentiation through quality, design and support services 242 ethics Lying to customers 244 Product positioning and re-positioning 245 Product deletion 246 marketing in action Simone Zimmermann, Managing Director, Zimmermann 247 Managing services as products 248 delivering customer value Aussie Home Loans:'We'll save you' 253 tech know Apple's '/Products 257 Not-for-profit marketing 263 ethics beyondblue 266 Organising to develop and manage products 266 Chapter review 268 Key concepts 269 Discussion questions 269 Marketing applications 270 Case study: Opal BP turning words into action 271
7 PART 4 Pricing decisions 273 Pricing fundamentals 274 Widescreen TV sales anything but flat! 276 The role of price 277 Price and non-price competition 277 delivering customer value How important is price for Dell? 279 Analysis of demand 280 Demand, cost and profit relationships 282 Factors affecting pricing decisions 286 international marketing Pricing issues for Giordano 291 Pricing for business markets 293 Chapter review 296 Key concepts 297 Discussion questions 297 Marketing applications 297 Case study: Winners and losers 298 Pricing management 300 What price nostalgia? 302 Stage 1: The development of pricing objectives 303 Stage 2: Assessment of the target market's evaluation of price 305 Stage 3: Evaluation of competitors' prices 306 Stage 4: Selection of a basis for pricing 306 tech know When Internet efficiency meets local market sensitivity 308 Stage 5: Selection of a pricing strategy 309 marketing in action Bundling knows no boundaries 313 Stage 6: Determination of a specific price 318 Chapter review 319 Key concepts 320 Discussion questions 320 Marketing applications 320 Case study: When pricing is a 'life or death' issue 321 PART 5 Place (distribution) decisions 323 Marketing channels and supply-chain management 324 Toll 326 Marketing channels and supply-chain management 327 Physical distribution in supply-chain management 339 delivering customer value Getting the product to the customer 346 international marketing RedPrairie: providing global supply-chain solutions 349 Wholesaling 349
8 Chapter review 356 Key concepts 357 Discussion questions 358 Marketing applications 358 Case study: TNT Fashion Express 359 Retailing and e-distribution 360 Mid Valley Megamall 362 Retailing 363 international marketing Pumpkin Patch growing around the world 368 Non-store retailing 374 delivering customer value SEEK to find a new way 377 e-distribution 378 eth ics Spam, spam, spam Franchising 380 Major types of retail franchises 380 Chapter review 382 Key concepts 383 Discussion questions 383 Marketing applications 383 Case study: New Zealand Natural: a local global franchise 384 PART 6 Promotion decisions 387 Integrated marketing communications 388 Increasing the demand for lamb 390 What are integrated marketing communications? 391 The role of promotion 392 Promotion and the communication process 393 Objectives of promotion 395 marketing in action Big audience for the Big Ad 396 The promotion mix 399 ethics Advertising to children: should it be regulated? 401 Selecting promotion mix elements 403 marketing in action Erica Clydsdale, Regional Marketing Manager, McDonald's 404 Promotion and the Internet 406 Criticisms and defences of promotion 408 Chapter review 410 Key concepts 411 Discussion questions 411 Marketing applications 412 Case study: Big Brother: starring 3 mobile 412
9 The promotion mix 414 Microsoft Vista Wow 416 The nature and types of advertising 417 Developing an advertising campaign 418 marketing in action Tony Lee, Marketing Manager, Cadbury NewZealand 426 Public relations 427 What is personal selling? 431 ethics Responsible selling improves customer relationships 433 What is sales promotion? 435 delivering customer value Qantas frequent flyers 438 Chapter review 442 Key concepts 443 Discussion questions 443 Marketing applications 444 Case study: Beer, Blondes, Bondi and Paris Hilton 444 PART 7 Implementation 447 Marketing implementation and control 448 Winners are grinners! 450 The marketing process 451 Marketing 451 Implementing the marketing concept 455 Implementing marketing strategies 460 marketing in action Telstra: making life easier? 464 Controlling marketing activities 465 marketing in action Measuring and proving your worth a major issue for marketing executives 467 Chapter review 470 Key concepts 471 Discussion questions 471 Marketing applications 471 Case study: The Caller Tone challenge 472 Appendix 1 Marketing plan: Swords Wines Pty Ltd 475 Appendix 2 Marketing plan worksheets 490 Glossary 511 Answers to Are you on Target? questions 523 Notes 535 Index 548 i
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