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Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

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Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

O.C. Ferrell Belmont University

Michael D. Hartline Florida State University

Marketing Strategy TEXT AND CASES

SEVENTH EDITION

Australia • Brazil • Mexico • Singapore • United Kingdom • United States

Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

Marketing Strategy: Text and Cases, Seventh Edition O.C. Ferrell and Michael D. Hartline

Senior Vice President, General Manager, Social Sciences, Humanities, and Business: Erin Joyner

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Library of Congress Control Number: 2016942345

ISBN: 978-1-337-29651-9

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Printed in the United States of America Print Number: 01 Print Year: 2016

Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

To my wife, Linda

O.C. Ferrell

To my girls, Marsha, Meghan, Madison, and Mallory

Michael D. Hartline

Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

Brief Contents Preface xiii

About the Authors xvii

1 MARKETING IN TODAY’S ECONOMY 1 2 STRATEGIC MARKETING PLANNING 27 3 COLLECTING AND ANALYZING MARKETING INFORMATION 56 4 DEVELOPING COMPETITIVE ADVANTAGE AND STRATEGIC FOCUS 89 5 CUSTOMERS, SEGMENTATION, AND TARGET MARKETING 119 6 THE MARKETING PROGRAM 153 7 BRANDING AND POSITIONING 203 8 ETHICS AND SOCIAL RESPONSIBILITY IN MARKETING STRATEGY 230 9 MARKETING IMPLEMENTATION AND CONTROL 260 10 DEVELOPING AND MAINTAINING LONG-TERM CUSTOMER RELATIONSHIPS 289

CASES CASE 1 USA TODAY : INNOVATION IN AN EVOLVING INDUSTRY 318

CASE 2 CONSUMERS TAKE A SHINE TO APPLE, INC. 331

CASE 3 MONSANTO BALANCES THE INTERESTS OF MULTIPLE STAKEHOLDERS 342

CASE 4 NEW BELGIUM BREWING (A): SOCIAL RESPONSIBILITY AS COMPETITIVE ADVANTAGE 355

CASE 5 NEW BELGIUM BREWING (B): DEVELOPING A BRAND PERSONALITY 364

CASE 6 MATTEL CONFRONTS ITS MARKETING CHALLENGES 373

CASE 7 MISTINE: DIRECT SELLING IN THE THAI COSMETICS MARKET 384

CASE 8 BP STRUGGLES TO REPAIR ITS TARNISHED REPUTATION 396

CASE 9 CHEVROLET: A CENTURY OF PRODUCT INNOVATION 407

CASE 10 WYNDHAM WORLDWIDE ADOPTS A STAKEHOLDER ORIENTATION MARKETING STRATEGY 422

CASE 11 NASCAR: CAN’T KEEP A GOOD BRAND DOWN 431

iv

Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

CASE 12 INDYCAR: SEEKING A RETURN TO MOTORSPORTS’ FAST LANE 443

CASE 13 ZAPPOS: DELIVERING HAPPINESS 454

CASE 14 NETFLIX FIGHTS TO STAY AHEAD OF A RAPIDLY CHANGING MARKET 465

CASE 15 GILLETTE: WHY INNOVATION MAY NOT BE ENOUGH 475

CASE 16 IKEA SLOWLY EXPANDS ITS U.S. MARKET PRESENCE 487

CASE 17 UBER: THE OPPORTUNITIES AND CHALLENGES OF MARKET DISRUPTION 496

CASE 18 SCENTSY, INC.: A SUCCESSFUL DIRECT SELLING BUSINESS MODEL 507

CASE 19 SIGMA MARKETING: STRATEGIC MARKETING ADAPTATION 515

CASE 20 BELLE MEADE PLANTATION: A SOCIAL ENTREPRENEURSHIP MARKETING STRATEGY 525

CASE 21 COCA-COLA: INTEGRATED MARKETING COMMUNICATIONS 534

Index 544

Brief Contents v

Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

Contents Preface xiii

About the Authors xvii

1 MARKETING IN TODAY’S ECONOMY 1 THE CHALLENGES AND OPPORTUNITIES OF MARKETING IN TODAY’S ECONOMY 2

Power Shift to Customers 3

Massive Increase in Product Selection 4

Audience and Media Fragmentation 4

Changing Value Propositions 4

Shifting Demand Patterns 5

Privacy, Security, and Ethical Concerns 5

Unclear Legal Jurisdiction 6

BASIC MARKETING CONCEPTS 7

What Is a Market? 8

What Is Exchange? 9

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