An Introduction Eleventh Edition

Transcription

1 An Introduction Eleventh Edition GARY ARMSTRONG University of NorthXarolina Global Edition r err PHILIP KOTLER Northwestern University Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

2 Contents Preface 21 Acknowledgments 26 % IT1 DEFINING MARKETING AND THE MARKETING PROCESS 30 Marketing: Creating and Capturing Customer Value 30 CHAPTER ROAD MAP 30 Objective Outline 30 Previewing the Concepts 30 First Stop: FlyDubai 31 What Is Marketing? 33 Marketing Defined 33 The Marketing Process 33 Understanding the Marketplace and Customer Needs 34 Customer Needs, Wants, and Demands 34 Market Offerings Products, Services, and Experiences 34 Customer Value and Satisfaction 35 Exchanges and Relationships 35 Markets 36 Designing a Customer-Driven Marketing Strategy 37 Selecting Customers to Serve 37 Choosing a Value Proposition 37 Marketing Management ^ Orientations 37,, Preparing an Integrated Marketing Plan and Program 40 Building Customer Relationships 41 Customer Relationship Management 41 Marketing at Work 1.1: Customer Relationship Management at AWT, Abu Dhabi, United Arab Emirates (UAE) 43 The Changing Nature of Customer Relationships 45 Partner Relationship Management 48 Capturing Value from Customers 48 Creating Customer Loyalty and Retention 48 Growing Share of Customer 49 Building Customer Equity 50 The Changing Marketing Landscape 51 The Changing Economic Environment 52 Marketing at Work 1.2: An Era of Austerity The Thrifty Route in Fashion 53 The Digital Age 54 The Growth of Not-for-Profit Marketing 55 Rapid Globalization 56 Sustainable Marketing The Call for More Social Responsibility 56 So, What Is Marketing? Pulling It All Together 57 REST STOP: REVIEWING THE CONCEPTS 59 CHAPTER REVIEW AND KEY TERMS Objectives Review 59 Key Terms 60 DISCUSSION AND CRITICAL THINKING Discussion Questions 61 Critical Thinking Exercises 61 MINICASES AND APPLICATIONS Marketing Technology 61 Marketing Ethics 62 Marketing by the Numbers 62 Video Case 62 Company Cases 63 11

3 12 Contents / Company and Marketing Strategy: Partnering to Build Customer Relationships 64 CHAPTER ROAD MAP 64 " Objective Outline 64 Previewing the Concepts 64 First Stop: McDonald's 65 \ ^ Company-Wide Strategic Planning: Defining Marketing's Role 66 Defining a Market-Oriented Mission 67 Setting Company Objectives and Goals 68 Designing the Business Portfolio 69 Analyzing the Current Business Portfolio 69 Marketing at Work 2.1: Singapore Airlines: Going the Extra Mile in Strategic Planning 70 Developing Strategies for Growth and Downsizing 73 Planning Marketing: Partnering to Build Customer Relationships 74 Partnering with Other Company Departments 75 Partnering with Others in the Marketing System 76 Marketing Strategy and the Marketing Mix 76 Customer-Driven Marketing Strategy 77 Marketing at Work 2.2: Nicher Allegiant Air: "Going Where They Ain't" 79 / Developing an Integrated Marketing Mix 80 Managing the Marketing Effort 82 Marketing Analysis 82 Marketing Planning 83 Marketing Implementation 83 Marketing Department Organization 84 Marketing Control 85 Measuring and Managing Return on Marketing Investment 86 * REST STOP: REVIEWING THE CONCEPTS 88 CHAPTER REVIEW AND KEY TERMS Objectives Review 88 Key Terms 89 DISCUSSION AND CRITICAL THINKING Discussion Questions 89 Critical Thinking Exercises 89 MINICASES AND APPLICATIONS Marketing Technology 90 Marketing Ethics 90 Marketing by the Numbers 90 Video Case 91 Company Cases 91 PMTT 2 > UNDERSTANDING THE MARKETPLACE AND CONSUMERS 92 3) Analyzing the Marketing Environment 92 CHAPTER ROAD MAP 92 Objective Outline 92 Previewing the Concepts 92 First Stop: YouTube 93 The Microenvironment 95 The Company 95 Suppliers 95 Marketing Intermediaries 96 Competitors 96 Publics 97 Customers 97 The Macroenvironment 98 The Demographic Environment 98 The Economic Environment 104 The Natural "Environment 105 The Technological Environment 107 The Political and Social Environment 108 The Cultural Environment 111 Marketing at Work 3.1: Spearheading Environmental Responsibility: "Masdar" 112 Responding to the Marketing Environment 116 Marketing at Work 3.2: When the Dialog Gets Nasty: Turning Negatives into Positives 117

4 Contents 13 REST STOP: REVIEWING THE CONCEPTS 118 CHAPTER REVIEW AND KEY TERMS Objectives Review 118 Key Terms 119 DISCUSSION AND CRITICAL THINKING Discussion Questions 120 Critical Thinking Exercises 120 MINICASES AND APPLICATIONS Marketing Technology 120 Marketing Ethics 121 Marketing by the Numbers 121 Video Case 12P* Company Cases 121 A Managing Marketing Information to Gain \ Customer Insights 122 CHAPTER ROAD MAP 122 Objective Outline 122 Previewing the Concepts 122 First Stop: Protrac 123 Marketing Information and Customer Insights 124 Assessing Marketing Information Needs 125 Developing Marketing Information 126 Internal Data 126 Competitive Marketing Intelligence 127 Marketing Research 128 Defining the Problem and Research Objectives 129 Developing the Research Plan 129 Gathering Secondary Data 130 Primary Data Collection 131 Marketing at Work 4.1: Ethnographic Research: Watching What Consumers Really Do 132 Marketing at Work 4.2: Listening Online: The Web Knows What You Want 139 Implementing the Research Plan 142 Interpreting and Reporting the Findings 142 : Analyzing and Using Marketing Information 143 Customer Relationship Management 143 Distributing and Using Marketing Information 144 Other Marketing Information Considerations 145 Marketing Research in Small Businesses and Nonprofit Organizations 145 International Marketing Research 146 Public Policy and Ethics in Marketing Research 148 REST STOP: REVIEWING THE CONCEPTS 150 CHAPTER REVIEW AND KEY TERMS Objectives Review 150 Key Terms 151 DISCUSSION AND CRITICAL THINKING Discussion Questions 151 Critical Thinking Exercises 151 MINICASES AND APPLICATIONS Marketing Technology 152 Marketing Ethics 152 Marketing by the Numbers 153 Video Case 153 Company Cases 153 R Understanding Consumer and Business Buyer Behavior 154 CHAPTER ROAD MAP 154 Objective Outline 154 Previewing the Concepts 154 First Stop: Apple 155 Consumer Markets and Consumer Buyer Behavior 156 Model of Consumer Behavior 156 Characteristics Affecting Consumer Behavior 157 Marketing at Work 5.1: CSL 1010: Moving Forward with New Consumers 162 The Buyer Decision Process 170 Need Recognition 170 Information Search 170 Evaluation of Alternatives 171 Purchase Decision 172 Postpurchase Behavior 172 The Buyer Decision Process for New Products 173 Stages in the Adoption Process 173 Individual Differences in Innovativeness 174 Influence of Product Characteristics on Rate of Adoption 174

5 14 Contents Business Markets and Business Buyer Behavior 175 Business Markets 176 Business Buyer Behavior 177 \ Marketing at Work 5.2: Dow Performance Plastics: "If You Win, We Win" 178 REST STOP: REVIEWING THE CONCEPTS 185 CHAPTER REVIEW AND KEY TERMS Objectives Review 185 Key Terms 187, DISCUSSION AND CRITICAL THINKING Discussion Questions 187 Critical Thinking \ Exercises 187 MINICASES AND APPLICATIONS Marketing Technology 188 Marketing Ethics 188 Marketing by the Numbers 188 Video Case 189 Company Cases 189* DESIGNING A CUSTOMER-DRIVEN STRATEGY AND MIX 190 J\ Customer-Driven Marketing Strategy: Creating Value for Target Customers 190 CHAPTER ROAD MAP 190 Objective Outline 190 Previewing the Concepts 190 First Stop: Air Arabia 191 Market Segmentation 193 Segmenting Consumer Markets 193 Marketing at Work 6.1: Mobinil: Targeting the Mobile Telecommunications Market 196 Segmenting Business Markets 200 Segmenting International Markets 201 Requirements for Effective Segmentation 202 Market Targeting 202 Evaluating Market Segments 202 Selecting Target Market Segments 203 Marketing at Work 6.2: Location-Based Micromarketing Equals Macro Opportunities 206 Differentiation and Positioning 210 Positioning Maps 211 Choosing a Differentiation and Positioning Strategy 211 Communicating and Delivering the Chosen Position 216 REST STOP: REVIEWING THE CONCEPTS 217 CHAPTER REVIEW AND KEY TERMS Objectives Review 217 Key Terms 218 DISCUSSION AND CRITICAL THINKING Discussion Questions 219 Critical Thinking Exercises 219 MINICASES AND APPLICATIONS Marketing Technology 219 Marketing Ethics 220 Marketing by the Numbers 220 Video Case 220 Company Cases 221 I # Products, Services, and Brands: Building Customer Value 222 CHAPTER ROAD MAP 222 Objective Outline 222 Previewing the Concepts 222 First Stop: Emirates Airlines 223 What Is a Product? 224 Products, Services, and Experiences 225 Levels of Product and Services 225 Product and Service Classifications 226 : Product and Service Decisions 229 Individual Product and Service Decisions 229 Product Line Decisions 234 Product Mix Decisions 235

6 Contents 15 Services Marketing 236 The Nature and Characteristics of a Service 236 Marketing Strategies for Service Firms 238 Marketing at Work 7.1: Zappos.com: Taking Care of Those Who Take Care of Customers 239 Branding Strategy: Building Strong Brands ^243 Brand Equity 243 Building Strong Brands 244 ~ Marketing at Work 7.2: Thrifty Times Are Good Times for Store Brands. But What's ^National Brand to Do? 247 Managing Brands 251 REST STOP: REVIEWING THE CONCEPTS 252 CHAPTER REVIEW AND KEY TERMS Objectives Review 252 Key Terms 253 DISCUSSION AND CRITICAL THINKING Discussion Questions 253 Critical Thinking Exercises 253 MINICASES AND APPLICATIONS Marketing Technology 254 Marketing Ethics 254 Marketing by the Numbers 254 Video Case 255 Company Cases 255 M Developing New Products and Managing the Product Life Cycle 256 CHAPTER ROAD MAP 256 Objective Outline 256 Previewing the Concepts 256 First Stop: Google 257 New-Product Development Strategy 258 The New-Product Development Process 259 Idea Generation 259 Idea Screening 262 Concept Development and Testing 262 Marketing Strategy Development 263 Business Analysis 264 Product Development 264 Test Marketing 265 Commercialization 266 Managing New-Product Development 266 Customer-Centered New-Product Development 266 Team-Based New-Product Development 267 Systematic New-Product Development 267 Marketing at Work 8.1: LEGO Group: Building Customer Relationships, Brick by Brick 268 New-Product Development in Turbulent Times 269 Product Life-Cycle Strategies 270 Introduction Stage 272 Growth Stage 272 Maturity Stage 273 Marketing at Work 8.2: Swatch: New Times for Swiss Watchmaking 274 Decline Stage 275 Additional Product and Service Considerations 276 Product Decisions and Social Responsibility 276 International Product and Services Marketing 277 REST STOP: REVIEWING THE CONCEPTS 278 CHAPTER REVIEW AND KEY TERMS Objectives Review 278 Key Terms 279 DISCUSSION AND CRITICAL THINKING Discussion Questions 280 Critical Thinking Exercises 280 MINICASES AND APPLICATIONS Marketing Technology 280 Marketing Ethics 280 Marketing by the Numbers 281 Video Case 281 Company Cases 281 Pricing: Understanding and Capturing Customer Value 282 CHAPTER ROAD MAP 282 Objective Outline 282 Previewing the Concepts 282 First Stop: STC vs. Mobily vs. Zain 283

7 16 Contents What Is a Price? 285 Major Pricing Strategies 285 Customer Value-Based Pricing 286 Cost-Based Pricing 288 Marketing at Work 9.1: Panera Bread Company: It's Not about LoW'Prices 289 Competition-Based Pricing 291 ~* X v Other Internal and External Considerations Affecting Price Decisions 292 V Overall Marketing Strategy, Objectives, and Mix 292 Organizational Considerations 293 The Market and Demand 294 The Economy 295 Other External Factors 296 Marketing at Work 9.2: Whole Foods Market: Price and Value in a Tighter Economy 297 New-Product Pricing Strategies 298 Market-Skimming Pricing 298 Market-Penetration Pricing 299 Product Mix Pricing Strategies 299 Product Line Pricing 300 Optional Product Pricing 300 Captive Product Pricing 301 By-Product Pricing 301 Product Bundle Pricing 302 Price Adjustment Strategies 302 Discount and Allowance Pricing 302 Segmented Pricing 303 Psychological Pricing 303 Promotional Pricing 304 Geographical Pricing 305 Dynamic Pricing 306 International Pricing 307 Price Changes 308 Initiating Price Changes 308 Responding to Price Changes 309 Public Policy and Pricing 311 Pricing within Channel Levels 312 Pricing across Channel Levels 312 REST STOP: REVIEWING THE CONCEPTS 313 CHAPTER REVIEW AND KEY TERMS Objectives Review 313 Key Terms 315 DISCUSSION AND CRITICAL THINKING Discussion Questions 315 Critical Thinking Exercises 315 MINICASES AND APPLICATIONS Marketing Technology 316 Marketing Ethics 316 Marketing by the Numbers 316 Video Case 317 Company Cases 317 Marketing Channels: Delivering Customer Value 318 CHAPTER ROAD MAP 318 Objective Outline 318 Previewing the Concepts 318 First Stop: Enterprise 319 Supply Chains and the Value Delivery Network 320 The Nature and Importance of Marketing Channels 321 How Channel Members Add Value 322 Number of Channel Levels 323 Channel Behavior and Organization 324 Channel Behavior 324 Vertical Marketing Systems 325 Horizontal Marketing Systems 327 Multichannel Distribution Systems 328 Changing Channel Organization 329 Marketing at Work 10.1: Netflix: Disintermediate or Be Disintermediated 330 Channel Design Decisions 331 Analyzing Consumer Needs 332 Setting Channel Objectives 332 Identifying Major Alternatives 333 Evaluating the Major Alternatives 334 Designing International Distribution Channels 334 Channel Management Decisions 335 Selecting Channel Members 335 Managing and Motivating Channel Members 336 Evaluating Channel Members 337

8 Contents 17 Public Policy and Distribution Decisions 337 Marketing Logistics and Supply Chain Management 338 Nature and Importance of Marketing Logistics 338 Goals of the Logistics System 339 Major Logistics Functions 339 Integrated Logistics Management 342 Marketing at Work 10.2: UPS: "We Love Logistics" Put UPS to Work for You and You'll Love Logistics Too 344 \ REST STOP: REVIEWING THE CONCEPTS 346 CHAPTER REVIEW AND KEY TERMS Objectives Review 346 Key Terms 347 DISCUSSION AND CRITICAL THINKING Discussion Questions 347 Critical Thinking Exercises 348 MINICASES AND APPLICATIONS Marketing Technology 348 Marketing Ethics 348 Marketing by the Numbers 348 Video Case 349 Company Cases 349 Retailing and Wholesaling 350 CHAPTER ROAD MAP 350 Objective Outline 350 Previewing the Concepts 350 First Stop: Ramez Super Discount Store 351 Retailing 352 Types of Retailers 353 Marketing at Work 11.1: Grocery Price Wars: Malaysian Style 357 Retailer Marketing Decisions 361 Marketing at Work 11.2: Trader Joe's Unique Positioning Twist: Cheap Gourmet 363 Retailing Trends and Developments 367 Wholesaling 372 Types of Wholesalers,373 Wholesaler Marketing Decisions 375 Segmentation, Targeting, Differentiation, and Positioning Decisions 375 Trends in Wholesaling 377 REST STOP: REVIEWING THE CONCEPTS 378 CHAPTER REVIEW AND KEY TERMS Objectives Review 378 Key Terms 379 DISCUSSION AND CRITICAL THINKING Discussion Questions 379 Critical Thinking Exercises 380 MINICASES AND APPLICATIONS Marketing Technology 380 Marketing Ethics 380 Marketing by the Numbers 381 Video Case 381 Company Cases 381 Communicating Customer Value: Advertising and Public Relations 382 CHAPTER ROAD MAP 382 Objective Outline 382 Previewing the Concepts 382 First Stop: Microsoft vs. Apple 383 The Promotion Mix 385 Integrated Marketing Communications 385 The New Marketing Communications Model 385 The Need for Integrated Marketing Communications 387 Marketing at Work 12.1: The Edinburgh Inspiring Capital Brand 388 Shaping the Overall Promotion Mix 390 The Nature of Each Promotion Tool 390 Promotion Mix Strategies 392 Advertising 393 Setting Advertising Objectives 394 Setting the Advertising Budget 395 Developing Advertising Strategy 397

9 18 Contents Marketing at Work 12.2: Consumer-Generated Advertising: When Done Well, It Can Be Really Good 402 Evaluating Advertising Effectiveness and the Return on Advertising Investment 407 Other Advertising Considerations 408 Public Relations 410 * The Role and Impact of PR 411 Major Public Relations Tools 412 \ REST STOP: REVIEWING THE CONCEPTS 413 Vv CHAPTER REVIEW AND KEY TERMS Objectives Review 413 Key Terms 414 DISCUSSION AND CRITICAL THINKING Discussion Questions 415 Critical Thinking Exercises 415 MINICASES AND APPLICATIONS Marketing Technology 415 Marketing Ethics 416 Marketing by the Numbers 416 Video Case 416 Company Cases 417 ^J Personal Selling and Sales Promotion 418 CHAPTER ROAD MAP 418 Objective Outline 418 Previewing the Concepts 418 First Stop: Nokia 419 Personal Selling 420 The Nature of Personal Selling 421 The Role of the Sales Force 421 Managing the Sales Force 423 Designing the Sales Force Strategy and Structure 423 Recruiting and Selecting Salespeople 426 Training Salespeople 427 Compensating Salespeople 428 Supervising and Motivating Salespeople 428 Marketing at Work 13.1: B-to-B Salespeople: Who Needs Them Anymore? 430 ^ Evaluating Salespeople and Sales Force Performance 433 The Personal Selling Process 433 Steps in the Selling Process 433 Personal Selling and Managing Customer Relationships 436 Sales Promotion 437 The Rapid Growth of Sales Promotion 437 Sales Promotion Objectives 438 Major Sales Promotion Tools 439 Marketing at Work 13.2: Mobile Coupons: Reaching Customers Where They Are Now 440 Developing the Sales Promotion Program 443 REST STOP: REVIEWING THE CONCEPTS 444 CHAPTER REVIEW AND KEY TERMS Objectives Review 444 Key Terms 445 DISCUSSION AND CRITICAL THINKING Discussion Questions 445 Critical Thinking Exercises 445 MINICASES AND APPLICATIONS Marketing Technology 446 Marketing Ethics 446 Marketing by the Numbers 446 Video Case 447 Company Cases 447 A Direct and Online Marketing: Building Direct Customer Relationships 448 CHAPTER ROAD MAP 448 Objective Outline 448 Previewing the Concepts 448 First Stop: Facebook 449 The New Direct Marketing Model 451

10 Growth and Benefits of Direct Marketing 451 Benefits to Buyers 451 Marketing at Work 14.1: Amazon.com: The Model for Direct Marketing in the Digital Age 452 Benefits to Sellers 453 Contents 19 Customer Databases and Direct Marketing 454 * ^ Forms of Direct Marketing 455 v Direct-Mail Marketing 456 Catalog Marketing 457 Telemarketing 458 Direct-Response Television Marketing 458 Kiosk Marketing 460 '* Online Marketing 460 Marketing and the Internet 461 Online Marketing Domains 461 Setting Up an Online Marketing Presence 464 Marketing at Work 14.2: Mobile Marketing: Customers Come Calling 470 Public Policy Issues in Direct Marketing 471 Irritation, Unfairness, Deception, and Fraud 472 Consumer Privacy 472 A Need for Action 473 REST STOP: REVIEWING THE CONCEPTS 474 CHAPTER REVIEW AND KEY TERMS Objectives Review 474 Key Terms 475 DISCUSSION AND CRITICAL THINKING Discussion Questions 476 Critical Thinking Exercises 476 MINICASES AND APPLICATIONS Marketing Technology 476 Marketing Ethics 477 Marketing by the Numbers 477 Video Case 477 Company Cases 477 EXTENDING MARKETING 478 The Global Marketplace 478 CHAPTER ROAD MAP 478 Objective Outline 478 Previewing the Concepts 478 First Stop: Google in China 479 Global Marketing Today 480 Looking at the Global Marketing Environment 482 The International Trade System 482 Economic Environment 484 Political-Legal Environment 485 Cultural Environment 486 Deciding Whether to Go Global 489 Deciding Which Markets to Enter 489 Marketing at Work 15.1: Coca-Cola in Africa: "Everything Is Right There to Have It Happen" 490 Deciding How to Enter the Market 491 Exporting 492 Joint Venturing 493 Direct Investment 494 Deciding on the Global Marketing Program 495 Product 496 Promotion 497 Marketing at Work 15.2: Global Marketing: Watch Your Language! 498 Price 499 Distribution Channels 499 Deciding on the Global Marketing Organization 500

11 20 Contents REST STOP: REVIEWING THE CONCEPTS 502 CHAPTER REVIEW AND KEY TERMS 502 Objectives Review 502 Key Terms 503 DISCUSSION AND CRITICAL THINKING Discussion Questions 503 Critical Thinking Exercises 503 MINICASES AND APPLICATIONS Marketing Technology 503 Marketing Ethics 504 Marketing by the Numbers 50,4 Video Case 504 Company Cases 505 (n) Sustainable Marketing: Social Responsibility and Ethics 506 CHAPTER ROAD MAP 506 Objective Outline 506 Previewing the Concepts 506 First Stop: Siemens in the Middle East 507 Sustainable Marketing 508 Social Criticisms of Marketing 510 Marketing's Impact on Individual Consumers 510 Marketing's Impact on Society as a Whole 514 Marketing's Impact on Other Businesses 516 Consumer Actions to Promote Sustainable Marketing 517 Consumerism 517 Environmentalism 518 Marketing at Work 16.1: Walmart: The World's Super Eco-Nanny 522 Public Actions to Regulate Marketing 523 Business Actions toward Sustainable Marketing 523 Sustainable Marketing Principles 523 Marketing at Work 16.2: Socially Responsible Marketing: Making the World a Better Place 526 Marketing Ethics 528 The Sustainable Company 531 REST STOP: REVIEWING THE CONCEPTS 531 * CHAPTER REVIEW AND KEY TERMS Objectives Review 531 Key Terms 532 DISCUSSION AND CRITICAL THINKING Discussion Questions 532 Critical Thinking Exercises 533 MINICASES AND APPLICATIONS Marketing Technology 533 Marketing Ethics 533 Marketing by the Numbers 534 Video Case 534 Company Cases 534 APPENDIX 1 Company Cases A1 APPENDIX 2 Marketing Plan A33 APPENDIX 3 Marketing by the Numbers A45 Glossary G1 References R1 Index 11