A P. ion,9e. Gary Armstrong. Philip Kotler. University of North Carolina. Northwestern University. Pearson Education International

Transcription

1 A P ion,9e Gary Armstrong University of North Carolina Philip Kotler Northwestern University Pearson Education International

2 Preface 21 Acknowledgments 28 PART 1 DEFINING MARKETING AND THE MARKETING PROCESS 34 1 Marketing: Creating and Capturing Customer Value 35 What Is Marketing? 37 Marketing Defined 37 The Marketing Process 38 Understanding the Marketplace and Customer Needs 38 Customer Needs, Wants, and Demands 38 Market Offerings Products, Services, and Experiences 39 Customer Value and Satisfaction 40 Exchanges and Relationships 40 Markets 40 Designing a Customer-Driven Marketing Strategy 41 Selecting Customers to Serve 41 Choosing a Value Proposition 41 Marketing Management Orientations 42 > Preparing an Integrated Marketing Plan and Program 45 Building Customer Relationships 45 Customer Relationship Management Marketing at Work Bike Friday: Creating Customer Evangelists 47 The Changing Nature of Customer Relationships Marketing at Work Consumer-Generated Marketing: Ad Agency of the Year? YOU! 52 Partner Relationship Management 52 Capturing Value from Customers 54 Creating Customer Loyalty and Retention 54 Growing Share of Customer 55 Building Customer Equity 55 The Changing Marketing Landscape 57 The Digital Age 58 Rapid Globalization 59 The Call for More Ethics and Social Responsibility 60 The Growth of Not-for-Profit Marketing 60 So, What Is Marketing? Pulling It All Together 61 REST STOP: Reviewing the Concepts 63, Navigating the Key Terms 64, Travel Log 64, Under the Hood: Focus on Technology 64, Focus on Ethics 65, Video Case 65 2 Company and Marketing Strategy: Partnering to Build Customer Relationships 67 Companywide Strategic Planning: Defining Marketing's Role 69 Defining a Market-Oriented Mission 69 Setting Company Objectives and Goals 71 Designing the Business Portfolio Marketing at Work Starbucks Coffee: Where Growth Is Really Perking 74 Planning Marketing: Partnering to Build Customer Relationships 76 Partnering with Other Company Departments 77 Partnering with Others in the Marketing System 78 11

3 12 Contents Marketing Strategy and the Marketing Mix 79 Customer-Driven Marketing Strategy Marketing at Work Niching: Health Insurance for Our Furry or Feathery Friends 82 Developing an Integrated Marketing Mix 83 Managing the Marketing Effort 84 Marketing Analysis 84 Marketing Planning 85 Marketing Implementation 86 Marketing Department Organization 87 Marketing Control 88 Measuring and Managing Return on Marketing Investment 89 REST STOP: Reviewing the Concepts 90, Navigating the Key Terms 92, Travel Log 92, Under the Hood: Focus on Technology 92, Focus on Ethics 93, Video Case 93 PART 2 UNDERSTANDING THE MARKETPLACE AND CONSUMERS 94 3 Analyzing the Marketing Environment 95 The Company's Microenvironment 97 The Company 97 Suppliers 98 Marketing Intermediaries 98 Customers 99 Competitors 99 Publics 99 The Company's Macroenvironment 100 Demographic Environment Marketing at Work Ameriprise Financial: Still a Boomer Market 103 Economic Environment 110* Natural Environment 111* Technological Environment 113* Political Environment 114 Cultural Environment 117 Responding to the Marketing Environment Marketing at Work YourCompanySucks.com 122 REST STOP: Reviewing the Concepts 123, Reviewing the Key Terms 124, Travel Log 124, Under the Hood: Focus on Technology, 125 Focus on Ethics 125, Video Case Managing Marketing Information to Gain Customer Insights 127 Marketing Information and Customer Insights 128 Assessing Marketing Information Needs 130 Developing Marketing Information 131 Internal Data 131 "Marketing Intelligence 132 Marketing Research 133 Defining the Problem and Research Objectives 134 Developing the Research Plan 134* Gathering Secondary Data 135 Primary Data Collection 137 Implementing the Research Plan 145* Interpreting and Reporting the Findings 145 Analyzing and Using Marketing Information 146 Customer Relationship Management (CRM) 146 Distributing and Using Marketing Information Marketing at Work Harrah's Hits the CRM Jackpot 148 Other Marketing Information Considerations 150 Marketing Research in Small Businesses and Nonprofit Organizations 150 International Marketing Research 152 Public Policy and Ethics in Marketing Research Marketing at Work Tracking Consumers on the Web: Smart Targeting or a Little Creepy? 154

4 Contents 13 REST STOP: Reviewing the Concepts 157, Navigating the Key Terms 158, Travel Log 158, Underthe Hood: Focus on Technology 159, Focus on Ethics 159, Video Case Understanding Consumer and Business Buyer Behavior i6i Consumer Markets and Consumer Buyer Behavior 162 Model of Consumer Behavior 163 Characteristics Affecting Consumer Behavior Marketing at Work Tremor and Vocalpoint: What's the Latest Buzz? 168 The Buyer Decision Process 177 The Buyer Decision Process for New Products 180 Business Markets and Business Buyer Behavior 182 Business Markets Marketing at Work Ikea: Working with Suppliers to Keep Customers Clamoring for More 184 Business Buyer Behavior 185 REST STOP: Reviewing the Concepts 193, Navigating the Key Terms 194, Travel Log 194, Underthe Hood: Focus on Technology 195, Focus on Ethics i95,videocase 195 PART 3 DESIGNING A CUSTOMER-DRIVEN MARKETING STRATEGY AND MARKETING MIX Customer-Driven Marketing Strategy: Creating Value for Target Customers 197 Market Segmentation 199 Segmenting Consumer Markets 200 Segmenting Business Markets 206 Segmenting International Markets 206 Requirements for Effective Segmentation 207 Market Targeting 208 Evaluating Market Segments 208 Selecting Target Market Segments Marketing at Work P&G: Competing with Itself and Winning 211 Socially Responsible Target Marketing 215 Differentiation and Positioning 217 Positioning Maps 217 Choosing a Differentiation and Positioning Strategy Marketing at Work Staples: Positioning Made Easy 219 Communicating and Delivering the Chosen Position 224 REST STOP:-Reviewing the Concepts 225, Navigating the Key Terms 226, Travel Log 226, Underthe Hood: Focus on Technology 227, Focus on Ethics 227, Video Case Products, Services, and Brands: Building Customer Value 229 What Is a Product? 230 Products, Services, and Experiences 231'Levels of Product and Services 232* Product and Service Classifications 232 Product and Service Decisions 236 Individual Product and Service Decisions 236 Product Line Decisions 240 Product Mix Decisions 241 Branding Strategy: Building Strong Brands 242 Brand Equity Marketing at Work Breakaway Brands: Connecting with Customers 244 Building Strong Brands 244 Managing Brands 251

5 14 Contents Services Marketing 251 Nature and Characteristics of a Service 251 Marketing Strategies for Service Firms Marketing at Work Service Recovery: Doing Things Right When Service Goes Wrong 256 REST STOP: Reviewing the Concepts 258, Navigating the Key Terms 259, Travel Log 259, Under the Hood: Focus on Technology 260, Focus on Ethics 260, Video Case New-Product Development and Product Life-Cycle Strategies 263 New-Product Development Strategy 265 The New-Product Development Process 266 Idea Generation 266 Idea Screening 268 Concept Development and Testing 269 Marketing Strategy Development 270'Business Analysis 271 Product Development 271 Test Marketing 272 Commercialization 273 Managing New-Product Development 274 Customer-Centered New-Product Development 274 Team-Based New-Product Development 275 Systematic New-Product Development Marketing at Work Electrolux: Cleaning Up with Customer-Centered,Team-Based New-Product Development 276 Product Life-Cycle Strategies 278 Introduction Stage 280 Growth Stage 280 Maturity Stage 280 Decline Stage 282 Additional Product and Service Considerations 283 Product Decisions and Social Responsibility 283 International Product and Service Marketing 284 REST STOP: Reviewing the Concepts 285, Navigating the Key Terms 286, Travel Log 286, Underthe Hood: Focus on Technology 287, Focus on Ethics 287, Video Case Pricing: Understanding and Capturing Customer Value 289 What Is a Price? 291 Factors to Consider When Setting Prices 291 Value-Based Pricing 292 Company and Product Costs 294 Other Internal and External Considerations Affecting Price Decisions Marketing at Work Pricing High and Proud of It 298 New-Product Pricing Strategies 302 Market-Skimming Pricing 302 Market-Penetration Pricing 303 Product Mix Pricing Strategies 303 Product Line Pricing 303 Optional-Product Pricing 304 Captive-Product Pricing 304 By-Product Pricing 305 Product Bundle Pricing 306 Price-Adjustment Strategies 306 Discount and Allowance Pricing 306 Segmented Pricing 307 Psychological Pricing 308 Promotional Pricing 309 Geographical Pricing 310 Dynamic Pricing 311 International Pricing 312 Price Changes 313 Initiating Price Changes 313 Responding to Price Changes 314 Public Policy and Pricing Marketing at Work GlaxoSmithKline: Pricing for More than Sales and Profits 316 Pricing Within Channel Levels 316 Pricing Across Channel Levels 318

6 Contents 15 REST STOP: Reviewing the Concepts 319, Navigating the Key Terms 320, Travel Log 320, Underthe Hood: Focus on Technology 321, Focus on Ethics 32i,VideoCase Marketing Channels: Delivering Customer Value 323 Supply Chains and the Value Delivery Network 325 The Nature and Importance of Marketing Channels 326 How Channel Members Add Value 326 Number of Channel Levels 327 Channel Behavior and Organization 328 r Channel Behavior 328 Vertical Marketing Systems Marketing at Work Goodyear Rolls, but No Longer over Its Dealers 330 Horizontal Marketing Systems 333 Multichannel Distribution Systems 333 Changing ChanneLOrganization Marketing at Work Netflix: Disintermediator or Disintermediated? 336 Channel Design Decisions 336 Analyzing Consumer Needs 337 Setting Channel Objectives 338 Identifying Major Alternatives 338 Evaluating the Major Alternatives 339 Designing International Distribution Channels 340 Channel Management Decisions 340 Selecting Channel Members 340 Managing and Motivating Channel Members 341 Evaluating Channel Members 342 Public Policy and Distribution Decisions 342 Marketing Logistics and Supply Chain Management 343 Nature and Importance of Marketing Logistics 343 Goals of the Logistics System 344 Major Logistics Functions 344 Integrated Logistics Management 347 REST STOP: Reviewing the Concepts 349, Navigating the Key Terms 350, Travel Log 350, Underthe Hood: Focus on Technology 351, Focus on Ethics 351, Video Case Retailing and Wholesaling 353 Retailing 355 Types of Retailers Marketing at Work Wal-Mart: Almost Unimaginably Big 359 Retailer Marketing Decisions Marketing at Work Orchestrating the Retail Experience 366 The Future of Retailing 368 Wholesaling 372 Types of Wholesalers 373 Wholesaler Marketing Decisions 373 Trends in Wholesaling 375 REST STOP: Reviewing the Concepts 377, Navigating the Key Terms 377, Travel Log 378, Underthe Hood: Focus on Technology 378, Focus on Ethics 378, Video Case Communicating Customer Value: Advertising and Public Relations 38i The Promotion Mix 383 Integrated Marketing Communications 383 The New Marketing Communications Landscape 384 The Shifting Marketing Communications Model 384 The Need for Integrated Marketing Communications 385 Shaping the Overall Promotion Mix 387 The Nature of Each Promotion Tool 387 Promotion Mix Strategies 388

7 16 Contents Advertising 389 Setting Advertising Objectives 390 Setting the Advertising Budget 391 Developing Advertising Strategy Marketing at Work Madison &Vine: The New Intersection of Advertising and Entertainment 396 Evaluating Advertising Effectiveness and Return on Advertising Investment 403 Other Advertising Considerations Marketing at Work The Super Bowl: The Mother of All Advertising Events. But Is It Worth It? 404 r Public Relations 407 The Role and Impact of Public Relations 408 Major Public Relations Tools 409 REST STOP: Reviewing the Concepts 410, Navigating the Key Terms 411, Travel Log 412, Underthe Hood: Focus on Technology 412, Focus on Ethics 412, Video Case Communicating Customer Value: Personal Selling and Sales Promotion 415 Personal Selling 417 The Nature of Personal Selling 417 The Role of the Sales Force 418 Managing the Sales Force 419 * Designing Sales Force Strategy and Structure Marketing at Work Hewlett-Packard Overhauls Its Vast Corporate Sales Force 422 Recruiting and Selecting Salespeople 424 Training Salespeople 425 Compensating Salespeople 426 Supervising and Motivating Salespeople Marketing at Work Point, Click, and Sell: Welcome to the Web-Based Sales Force 429 Evaluating Salespeople and Sales Force Performance 430 The Personal Selling Process 431 Steps in the Selling Process 431 Personal Selling and Managing Customer Relationships 434 Sales Promotion 434 Rapid Growth of Sales Promotion 434 Sales Promotion Objectives 435 Major Sales Promotion Tools 436 Developing the Sales Promotion Program 439 REST STOP: Reviewing the Concepts 440, Navigating the Key Terms 441, Travel Log 441, Underthe Hood: Focus on Technology 441, Focus on Ethics 442, Video Case Direct and Online Marketing: Building Direct Customer Relationships 445 The New Direct Marketing Model 447 Growth and Benefits of Direct Marketing 448 Benefits to Buyers 448 Benefits to Sellers 449 Customer Databases and Direct Marketing 450 Forms of Direct Marketing 451 Direct-Mail Marketing 451 Catalog Marketing 452 Telephone Marketing Marketing at Work Catalogs, Catalogs Everywhere! 454 Direct-Response Television Marketing 455 Kiosk Marketing 457 New Digital Direct Marketing Technologies 457 Online Marketing 460 Marketing and the Internet 460 Online Marketing Domains 461 Setting Up an Online Marketing Presence Marketing at Work P&G: Learning About the Hot New World of Online Social Networks 471 The Promise and Challenges of Online Marketing 472

8 Contents 17 Public Policy Issues in Direct Marketing 472 Irritation, Unfairness, Deception, and Fraud 473 Invasion of Privacy 474 A Need for Action 474 REST STOP: Reviewing The Concepts 475, Navigating the Key Terms 477, Travel Log 477r0rTderthe Hood: Focus on Technology 477, Focus on Ethics 478, Video Case 478 PART 4 EXTENDING MARKETING The Global Marketplace 48i r Global Marketing Today 483 Looking at the Global Marketing Environment 484 The International Trade System 484 Economic Environment 487 Political-Legal Environment 488 Cultural Environment 489 Deciding Whether to Go Global 492 Deciding Which Markets to Enter 492 Deciding How to Enter the Market 493 Exporting 494 Joint Venturing 494 Direct Investment 496 Deciding on the Global Marketing Program 496 ( Product Marketing at Work LG Electronics: Thinking Locally, Succeeding Globally 498 Promotion 498 Price Marketing at Work Watch Your Language! 501 Distribution Channels 502 Deciding on the Global Marketing Organization 503 REST STOP: Reviewing the Concepts 503, Navigating the Key Terms 504, Travel Log 504, Underthe Hood: Focus on Technology 505, Focus on Ethics 505, Video Case Marketing Ethics and Social Responsibility 507 Social Criticisms of Marketing 509 Marketing's Impact on Individual Consumers Marketing at Work The National Obesity Debate: Who's to Blame? 513 Marketing's Impact on Society as a Whole 516 Marketing's Impact on Other Businesses 518 Citizen and Public Actions to Regulate Marketing 519 Consumerism 519<>Environmentalism 520 Public Actions to Regulate Marketing 523 Business Actions Toward Socially Responsible Marketing 524 Enlightened Marketing Real Marketing Dove on a Mission: "Normal Is the New Beautiful" 526 Marketing Ethics 529 REST STOP: Reviewing the Concepts 532, Navigating the Key Terms 533, Travel Log 533, Under the Hood: Focus on Technology 533, Focus on Ethics 534, Video Case 534 Appendix 1 Company Cases 535 Appendix 2 Marketing Plan 575 Appendix 3 Marketing by the Numbers 585 Appendix 4 Careers in Marketing 603 Glossary 611 References 619 Credits 643 Index 645