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Ninth Edition •

Real People, Real Choices Michael R. Solomon I Greg W. Marshall I Elnora W. Stuart

@ Pearson

•

Real People, Real Choices

Ninth Edition

Note from the uploader:

This book is too expensive for most people and it is too new (As 1/21/18) to be found anywhere. If you want to find books like this in the future you can follow these instructions.

Stuff you need: Amazon account, Kindle for PC, money that you will get refunded, greenshot screenshot manager.

1) Find the ebook version on amazon 2) Rent to Kindle PC 3) Install greenshot and capture the portion of the screen which the book is in.

a. Make sure to select a key combination that is easy to press so that you can just hit next page followed by the screenshot command. Example: I use ctrl + space to activate taking a screenshot of the page portion

4) Ideally, export to a .tiff file (Change greenshot settings) 5) Combine files using a pdf program. I use acrobat but that’s a pirated program so idk what else

out there a. If you don’t have a program, after step 4, install something like winrar or 7 zip (free) to

keep all the files neatly in one place. 6) MOST IMPORTANT: Refund Amazon purchase

a. This should all be done within 12 hours of buying the ebook from amazon b. Don’t abuse the refund thing too much because they might catch up to you and ban

your account or something idk.

I’m a broke college kid and I’m just trying to help the rest of you broke fools out.

Enjoy the book. I might do this more often cuz I ain’t trying to drop gs I can’t afford to be droppin right now.

-The Nigga Anish Fly Woopin in the Bity

This page intentionally left blank

•

Real People, Real Choices

Ninth Edition

Michael R. SOLOMON SAINT JOSEPH'S UNIVERSITY

Greg W. MARSHALL ROLLINS COLLEGE

Elnora W. STUART UNIVERSITY OF SOUTH CAROLINA UPSTATE

Vice President, Business Publishing: Donna Battista Director of Portfolio Management: Stephanie WaU Portfolio Manager: Emily Tamburri Editorial Assistant Eric Santucci Vice Pres ident, Product Marketing: Roxanne

McCarley Director of Strategic Marketing: Brad Parkins Strategic Marketing Manager: Deborah Strickland Product Marketer: Becky Brown Field Marketing Manager: Lenny Ann Kucenski Product Marketing Assis tant Jessica Quazza Vice President, Production and Digital Studio, Arts

and Business: Etain O'Oea Director of Production, Business: Je.ff Holcomb Managing Producer, Business: Ashley Santora Content Producer: Oaudia Fernandes

Operations Specialist: Carol Melville Creative Diredor: Blair Bro\vn Manager, Leaming Tools: Brian Surette Content Developer, Learning Tools:

Sarah Peterson Managing Producer, Digital Studio, Arts

and Business: Diane Lombardo Digital Studio Producer: Monique Lawrence Digital Studio Producer: Alana Coles Full-Service Project Management and Composition:

lntegra Software Services Pvt. Ltd. Interior and Cover Des igner: lntegra Software

Services Pvt. Ltd. Cover Art: zentilia/ShutterStock Printer/Binder: RR Donnelley /Crawfordsville Cover Printer: Phoenix Color/Hagerstown

Copyright © 2018, 2016, 2012 by Pearson Education, Inc. or its affilia tes . AU Rights Reserved. Manufactured in the United States of America. Th.is publication is protected by copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form o r by any means, electronic, mechanical, photocopying, recording, or otherwise. For information regarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights and Permissions department, please visit www. pearsoned.com/ permissions/.

Acknowledgments of third-party content appear on the appropriate page within the text.

PEARSON and ALWAYS LEARN[NG are exclusive trademarks owned by Pearson Education, Inc. or i ts affiliates in the U.S. and/ or other countries.

Unless othenvise incticated herein, any third-party trademarks, logos, or icons that may appear in this work are the property of their respective owners, and any references to third-party trademarks, logos, icons, or other trade dress are for demonstrative or descriptive purposes only. Such references are not intended to imply any sponsorship, endorsement, a uthorization, or promotion of Pearson's products by the ovmers of such marks, or any relationship between the owner and Pearson Education, lnc., or i ts affiliates, authors., licensees., or distributors.

Library of Congress Cataloging-in-Publication D ata

Names: Solomon, Michael R., author. ) Marshall, Greg W., author. S tuart,

Elnora W., author. Title: Marketing: real people, real choices / Michael R. Solomon, Greg W.

Marshall, Elnora W. Stuart. Description: Ninth edition. ) Hoboken, NJ : Pearson, (2018] Identifiers: LCCN 2016034398 I ISBN 9780134292663 I lSBN 0134292669 Subjects: LCSH: Marketing- Vocational guidance. Classification: LCC HF5415.35 .S65 2018 I DOC 658.8-

10 9 8 7 6 5 4 3 2 1

@Pearson ISBN 10: 0-13-429266-9 ISBN 13: 978-0-13-429266-3

To Gail, Amanda, Zachary, Alex, Orly, Rose, Evey, and Arya- my favorite market segment

- M.S.

To Patti and Justin

- G.M.

To Sonny, Patrick, Gabriela, Allyson, and Marge

- E.S.

~ Brief Contents Preface xiii

PART 1 Understand the Value Proposition 2

CHAPTER 1

CHAPTER 2

CHAPTER 3

CHAPTER 3

Welcome to the World of Marketing: Create and Deliver Value 2

Global, Ethical, and Sustainable Marketing 30

Strategic Market Planning 66

Supplement: Build a Marketing Plan 90

PART 2 Determine the Value Propositions Different Customers Want 92

CHAPTER 4

CHAPTER 5

CHAPTER 6

CHAPTER 7

Market Research 92

Marketing Analytics: Welcome to the Era of Big Data! 124

Understand Consumer and Business Markets 158

Segmentation, Target Marketing, and Positioning 202

PART 3 Develop the Value Proposition for the Customer 232

CHAPTER 8

CHAPTER 9

Product I: Innovation and New Product Development 232

Product II: Product Strategy, Branding, and Product Management 262

CHAPTER 10 Price: What Is the Value Proposition Worth? 290

CHAPTER 1 O Supplement: Marketing Math 330

PART 4 Deliver and Communicate the Value Proposition 340

CHAPTER 11 Deliver the Goods: Determine the Distribution Strategy 340

CHAPTER 12 Deliver the Customer Experience: Goods and Services via Bricks and Clicks 374

CHAPTER 13 Promotion I: Advertising and Sales Promotion 410

CHAPTER 14 Promotion II: Social Media Marketing, DirecVDatabase Marketing, Personal Selling, and Public Relations 458

Appendix A Marketing Plan: The S&S Smoothie Company 492

Appendix B Your Future in a Marketing Career 505

Notes 516

Glossary 535

Name Index 553

Subject Index 559

~ Brief Contents Preface xiii

PART 1 Understand the Value Proposition 2

CHAPTER 1

CHAPTER2

CHAPTER3

CHAPTER3

Welcome to the World of Marketing: Create and Deliver Value 2

Global, Ethical, and Sustainable Marketing 30

Strategic Market Planning 66

Supplement: Build a Marketing Plan 90

PART 2 Determine the Value Propositions Different Customers Want 92

CHAPTER4

CHAPTERS

CHAPTER&

CHAPTER 7

Market Research 92

Marketing Analytics: Welcome to the Era of Big Data! 124

Understand Consumer and Business Markets 158

Segmentation, Target Marketing, and Positioning 202

PART 3 Develop the Value Proposition for the Customer 232

CHAPTER&

CHAPTER9

CHAPTER 10

CHAPTER 10

Product I: Innovation and New Product Development 232

Product II: Product Strategy, Branding, and Product Management 262

Price: What Is the Value Proposition Worth? 290

Supplement: Marketing Math 330

PART 4 Deliver and Communicate the Value Proposition 340

CHAPTER 11

CHAPTER 12

CHAPTER 13

CHAPTER 14

Deliver the Goods: Determine the Distribution Strategy 340

Deliver the Customer Experience: Goods and Services via Bricks and Clicks 37 4

Promot ion I: Advertising and Sales Promotion 410

Promotion II: Social Media Marketing, DirecVDatabase Marketing, Personal Selling, and Public Relations 458

Appendix A

Appendix B

Notes 516

Glossary 535

Name Index 553

Marketing Plan: The S&S Smoothie Company 492

Your Future [n a Marketing Career 505

Subject Index 559

vi

~Contents Preface xiii

PART 1 Understand the Value Proposition 2

CHAPTER 1: Welcome to the World of Marl

Real People, Real Choices: Here's my problem .. . 3

MARKETING: WHAT IS IT? 4

"Marketing ls the Activi~ institutions, a nd Processes . .. " 4

" ... rorCreating. Communicating. Delivering,

a nd Exchanging: The Marketing Mix . . . " 5 ... .. Offerings ... ": Whal Can We Market? 7

" . .. VaJuc for Customers .. . ' ' 9 WHEN DID MARKETING BEGIN? THE EVOWTION OFACONCEPT 11

The Production Era 12

The Sales Era 12 The Rclationship Era 12 The Triple-Bottom-Line Orientation 13

What's Next in the Evolution or Marketing? 14 RIPPED FROM THE HEADLINES: Ethical/Sustainable

Decisions in the Real World 15

THE VAWE OF MARKETING AND THE MARKETING OFVAWE 16

Value (mm the Customer's Perspective 16

Value from the Se:Uer's Perspective 16

Value from Society's Perspective 22

MARKETING AS A PROCESS 24

Objective Summary • Key Terms • Apply 25

Chapter Questions and Activities 27

Marketing in Action Case: Real Choices at Coca-Cola 28

CHAPTER 2: Global , Ethical, and Sustainable Marketing ........................ 30

Real People, Real Choices: Here's my problem.. . 31

TAKE A BOW: MARKETING ON THE GLOBAL STAGE 32

World Trade 33

Should We Go Global? 34 Consider Your Competitive Advantage 34

UNDERSTAND INTERNATIONAL, REGIONAL, AND COUNTRY GLOBAL TRADE CONTROLS 35

Initiatives in lntemationaJ Cooperation and Regulation 35

Protected Trade: Quotas, Embargoes, and Tariffs 36

Economic Communities 36 ANALVZE THE EXTERNAL MARKETING ENVIRONMENT 37

The: Economic Environment 37

The Corn_pctitivc Environment 41 The Technological Environment 43 The Political an d Legal Environment 43

Thi! Sociocultural Environment 46 HOW "GLOBAL" SHOULD A GLOBAL MARKETING STRATEGY BE? 48

Company-Levcl Decisions: The Market Entry Strategy 49 Marketing Mix Stratc,gics 50

ETHICS IS JOB ONE IN MARKETING PLANNING 53

Ethical l'hilosoprues 53 Codes or Business Ethics 54 Is Marketing Unethical? 55

When Is a Bribe Not a Bribe? Ethical Issues for Global Business 56

SUSTAINABILITY: MARKETERS DO WELL BY DOING GOOD 57

Sustainability Is a Sensible Business Decision 57 Developing a Sustainable Marketing Mix 57

RIPPED FROM THE HEADLINES: Ethical/Sustainable Decisions in the Real World 58

Sustainable Customer Behavior 59

Objective Summary • Key Terms • Apply 60

Chapter Questions and Activities 62

Marketing in Action Case: Real Choices at Ford 64

CHAPTER 3: Strategic Market Planning .............. ...................................... 66

Real People, Real Choices: Here's my

problem ... 67

BUSINESS PLANNING: COMPOSE THE BIG PICTURE 68

The Three Levels of Business Planning 69 STRATEGIC PLANNING: FRAME THE PICTURE 71

Step 1: Deline the Mission 71 Step 2: Evaluate the Internal and External Environment 71

Step 3: Set Organi2ational or SBU Objectives 72 Step 4: Establish the Business Portfolio 73 Step 5: Develop Growth Strategics 75

RIPPED FROM THE HEADLINES: Ethical/Sustainable

Decisions in the Real World 77 MARKET PLANNING: DEVELOP AND EXECUTE MARKETING STRATEGY 77

Step!: Perform a Situation Analysis 78 Step 2: Set Marketing Objectives 78

vi i

vi ii I CONTENTS

Step 3: Devclop Marketing Strategies: Target Markets .lnd the Marketing Mix 78

Step 4: Implement and Control the Marketing Plan 80

Action Plans 81 Operational Planning: Day-to-Day Execution

of Marketing Plans 84

Make Your Life l!asier! Use the Market Planning Template 84 Objective Summary • Key Terms • Appty 85

Chapter Questions and Activities 86

Marketing in Action Case: Real Choices at Amazon 88

Supplement: Build a Marketing Plan 90

PART 2 Determine the Value Propositions Different Customers Want 92

CHAPTER 4 : Market Research ..... .... 92 Real People, Real Choices: Here's my problem .. . 93

KNOWLEDGE IS POWER 94 The Marketing Information System 95

CUSTOMER INSIGHTS AND MARKETING 100

STEPS IN THE MARKET RESEARCH PROCESS 100 Step I: Define the Research Problem 101 Step 2: Determine the Research Design 102

RIPPED FROM THE HEADLINES: Ethical/Sustainable Decisions in the Real World 1 OS

Step 3: Choose the Method to Collect Primary Data 106

Step 4: Oc>sign the Sample 114 Step 5: Collect the Data 116 Step 6: Analyze and Interpret the Data 117

Step 7: Prepare the Research Report 117 Objective Summary• Key Terms • Apply 118

Chapter Questions and Activities 119

Marketing in Action Case: Real Choices at GetFeedback 122

A CHAPTER 5: Marketing Analytics: Welcome lo the Era of Big Data! .............. 124

Real People, Real Choices: Here's my problem... 125

CUSTOMER RELATIONSHIP MANAGEMENT (CRM): A KEY DECISION TOOL FOR MARKETERS 126

Customer-Re-lated Metrics 129 SIG DATA: TERABYTES RULE 131

Big Data Creation, Sources, and Usage 133 Data Mining 136

Primary Data 'lypes for Data M;ning 137 RIPPED FROM THE HEADLINES: Ethical/Sustainable Decisions in the Real World 137

Data Mining: Applications /or Marketers 139

Data Scientists: Transforming Big Data into Wuuung Information 140

MARKETING ANALYTICS 141

Coru,cct Digital Marketing Channels to Marketing Analytics 141

Make Marketing Accountable: Detennine the Value of

Digital Marketing Investments acnlSS Channels 146 Marketing Accountability within Nondigital Marketing

Channels 148

Predictive Analytics 149 METRICS FOR MARKETING CONTROL 150

Margin on Sales 152

Churn Rate 152 Objective Summary • Key Terms • Apply 153

Chapter Questions and Activities 1S4

Marketing in Action Case: Real Choices at Novartis 156

A ~~i!!~ M~ ~e~~·d·""'.~." d .. ~~~'.".~e;58

Real People, Real Choices: Here's my problem. . . 159

THE CONSUMER DECISION·MAKJNG PROCESS 160 Not All Decisions Are the Same 161 Step I: Problem Recognition 162

Step 2: Wormation Search 163 Stc.p 3: Evaluatioi, of Alternatives 164 Step 4: Product Choia, 164

Step 5: Postpurchasc Evaluation 165

INTERNAL INFWENCES ON CONSUMERS' DECISIONS 166

Pc.rception 166

Motivation 168

Leaming 170

RIPPED FROM THE HEADLINES: Ethicai/Sustainable Decisions in the Real World 170

Attitudes 171

Personality and the Scl/: Are You What You Buy? 172 Age 172 Lifestyle 173

SITUATIONAL AND SOCIAL INFLUENCES ON CONSUMERS' DECISIONS 174

Situational ln/lucnccs 174

Social lrulucnces on Consumers' IA>cislons 175 BUSINESS MARKETS: 8UYING AND SELLING WHEN THE CUSTOMER IS ANOTHER ORGANIZATION 179

Type, of Business-to-Business Customers 180 Factors That Make a Difference in Business Markets 182 B2B Dcm.lnd 184

BUSINESS BUYING SITUATIONS AND THE BUSINESS BUYING DECISION PROCESS 186

The Buyclass framework 186

Professional Buyers and Buying Centers 187

The Business Buying Decision Process 189 828 £.Commerce and Social Media 192

Objective Summary• Key Terms• Apply 195

Chapter Questions and Activities 197

Marketing in Action Case: Real Choices at Airbus 200

CHAPTER 7: Segmentation, Target Marketing, and Positioning ..................... 202

Real People, Real Choices: Here's my problem. . . 203

TARGET MARKETING: SELECT AND ENTER A MARKET 204

STEP 1: SEGMENTATION 205 Segment Consumer Markets 205

Segment 828 Markets 216 STEP 2: TARGETING 217

PhasesofTargeling 217 STEP 3: POSITIONING 221

RIPPED FROM THE HEADLINES: Ethical/Sustainable Decisions in the Real Wor1d 221

Steps in Positioning 222 Bring a Product to Life: Brand Personality 224

Objective Summary • Key Terms • Apply 226 Chapter Questions and Activities 227

Marketing in Action Case: Real Choices at Sprig 230

PART 3 Develop the Value Proposition for the Customer 232

CHAPTER 8: Product I: Innovation and New Product Development.. .................... 232

Real People, Real Choices: Here's my problem . . . 233

BUILD A BETTER MOUSETRAP-AND ADD VALUE 234

Layers of the Product Conc,,pt 215 HOW MARKETERS CLASSIFY PRODUCTS 237

How Long Do Products Last? 237 How Do Consumers Buy Products? 238 How Do Businc-sscs Buy Products? 240

"NEW AND IMPROVED!" THE PROCESS OF INNOVATION 241

'Types of Innovations 242 NEW PRODUCT DEVELOPMENT 244

Phase 1: Idea Generation (Ideation) 244 Phase 2: Product Concept Development and

Screening 245

Phase 3: Marketing Strategy Development 245

Phase 4: Business Analysis 246 Phase 5: Technical Development 246

CONTENTS J ix

RIPPED FROM THE HEADLINES: Ethical/Sustainable

Decisions in the Real World 246

Phase 6: Market Test 247 Phase 7: Commercialization 248

ADOPTION AND DIFFUSION OF NEW PRODUCTS 249

Stages in Consumers' Adoption of a New Product 249

Adopter Categories 252 Product Factors That Affect the Rate of Adoption 254

Objective Summary • Key Terms • Apply 256

Chapter Ques1ions and Activities 258

Marketing in Action Case: Real Choices at Facebook 260

CHAPTER 9: Product 11: Product Strategy, Branding, and Product Management •...... ..................................... 262

Real People, Real Choices: Here's my problem... 263

PRODUCT PLANNING: DEVELOP PRODUCT OBJECTIVES AND PRODUCT STRATEGY 264

Getting Product Objectives Right 2&1 Objectives and Strategics for lndividua)

Products 265

Objectives and Strategies for Multiple Products 266 Product M;x Strategics 268 Quality as a Product Obj<>etivc: TQM

and Beyond 268 RIPPED FROM THE HEADLINES: Ethical/Sustainable

Decisions in the Real World 269

MARKETING THROUGHOUT THE PRODUCT LIFE CYCLE 271

Introduction Stage 271

Growth Stage 273 Maturity Stage 273 Decline Stage 274

BRANDING AND PACKAGING: CREATE PRODUCT IDENTITY 274

What's in a Name (or a Symbol)? 274

Why Brands Matter 275 Branding Strategics 277 Packages and Label<: Branding's Little Helpers 280

ORGANIZE FOR EFFECTIVE PRODUCT MANAGEMENT 284

Manage Existing Products 284

Organize for New Product Development 2S5 Objective Summary • Key Terms • Apply 285

Chapter Questions and Activities 287

Marketing in Action Case: Real Choices at Blue Diamond 289

X I CONTENTS

CHAPTER 10: Price: What Is the Value Proposition Worth? ................................... 290

Real People, Real Choices: Here's my problem. . . 291

&.loU..- .-.1 "YES, BUT WHAT DOES IT COST?" 292 What ls Price? 292

COSTS, DEMAND, REVENUE, AND THE PRICING ENVIRONMENT 296

Step 2: Estimate Demand 296 Step 3: Determine Costs 300 Step 4: Examine the Pricing Environment 305

IDENTIFY STRATEGIES AND TACTICS TO PRICE THE PRODUCT 308

Step 5: Choose a Pricing Strategy 308

Pricing Strategies Based on Cost 308 Step 6: Develop Pricing Tactics 312

PRICING AND ELECTRONIC COMMERCE 315

Dynamic Pricing Strategies 316 rntcmet Price Discrimination 316 Online Auctions 316

Frecmium f'ricing Strategies 317 Pricing Advantages for Online Shoppers 317

PSYCHOLOGICAL, LEGAL, AND ETHICAL ASPECTS OF PRICING 317

Psychological Issues in Setting Prices 318 Psychological !'ricing Strategics 319

Legal and Ethical Considerations in 82C Pricing 320

Legal Issues in B2B Pricing 321

RIPPED FROM THE HEADLINES: Ethical/Sustainable Decisions in the Real World 323

Objective Summary • Key Terms • Apply 323

Chapter Questions and Activities 325

Marketing in Action Case: Real Choices at Disney 328

Supplement: Marketing Math 330

PART 4 Deliver and Communicate the Value Proposition 340

CHAPTER 11: Deliver the Goods: Determine the Distribution Strategy ............... 340

Real People, Real Choices: Here's my problem. . . 341

TYPES OF DISTRIBUTION CHANNELS AND WHOLESALE INTERMEDIARIES 342

Functions of Distribution Channels 342 The: Evolution of Distribution Functions 344 Types of Distribution Charu,cls 348

Distribution Channels and the Marketing Mb< 352 Ethics in the Dis tribution Channcl 353

DEVELOP A CHANNEL STRATEGY 354

Step 1: Develop Distribution

Objectives 354 Step 2: Evaluate Internal and External Environmental

Influences 354

Step 3: Choose a Distribution Strategy 355 Step 4: Develop Distribution Tactics 359

LOGISTICS AND THE SUPPLY CHAIN 360

The Lowdown on Logistics 361 Place: Pulling Jt All Together through the Supply

Chain 365 RIPPED FROM THE HEADLINES: Ethical/Sustainable

Decisions in the Real World 367

Objective Summary • Key Terms • Apply 36B

Chapter Questions and Activities 369

Marketing in Action Case: Real Choices at Target 372

STYLE 376

CHAPTER 12: Deliver the Customer Experience: Goods and Services via Bricks and Clicks ..................................... 374

Real People, Real Choices: Here's my problem.. . 375

RETAILING, TWENTY-FIRST-CENTURY

Retailing: A M;xed (Shopping) Bag 376 The Evolution o.f Retailing 377 The Evolution Continues: What's Nin Store" for the

Future? 378 Ethical Problems in Retailing 382

RIPPED FROM THE HEADLINES: Ethical/Sustainable

Decisions in the Real Wor1d 382

TYPES OF BRICK-AND-MORTAR RETAILERS 383

Oassily Retailers by What They Sell 383

Oassily Retailers by Level o! Service 384 Major Types o! Retailers 385

E-COMMERCE AND OTHER TYPES OF NONSTORE RETAILERS 390

B2C E.Commcrce 390 Direct Selling 394

Automatic Vending 395 RETAILING WHAT ISN'T THERE: SERVICES AND OTHER INTANGIBLES 395

Marketing What Isn' t There 395 Physical Elements of the Service Encounter: Scrviccscapes

a nd Other Tangibles 398

How We Provide Quality Service 398 Strategic Issues When We Deliver Service Quality 399 Marketing People, Places, and Ideas 400

Th~ Future of Services 402 Objective Summary • Key Terms • Apply 404

Chapter Questions and Activities 405

Marketing in Action Case: Real Choices at Alibaba 408

CHAPTER 13: Promotion I: Advertisir19 and Sales Promotion ............................... .. 410

AeaJ People, Aeal Choices: Here's my problem ... 411

COMMUNICATION MOOELS IN A DIGITAL WORLD THAT IS "ALWAYS ON" 412

The Communication Modcl 414

The Trarutional Promotion Mix 416 Mass Communication: The One-to-Many Model 416 Personal Colnmunication: The One.to.One ModeJ 418

OVERVIEW OF PROMOTION PLANNING 418

Step 1: Identify the Target Audiencc(s) 418 Step 2: Establish the Communication Objectives 418

Step 3: Ot!tcrminc and Allocat~ the Marketing Communication Budget 421

Step 4: Design the Promotion Mix 422

Step 5: Evaluate the Effectiveness of the Communic.ation Program 423

Multichannel Promotion Strategics 423

ADVERTISING 424 Types of Advertising 425 Who Creates Advertising? 426

Use.r.Ccne.rated Advertising Content 427 Ethical Issues in Advertising 428 Develop the Advertising Campaign 429

Where to Say It: Trarutional Mass Media 436 Where to Say It: Branded Entertainment 439 Where to Say JI: Support Media 439

Where to Say It: Digital Media 440

RIPPED FROM THE HEADLINES: Ethical/Sustainable Decisions in the Real World 442

When and How Often to Say It: Media Scheduling 443 SALES PROMOTION 445

Sales J'''romotion Dit12etcd toward Consumers 445 Trade Sales Promotion: Targeting the BZB Customer 448

Objective Summary • Key Terms • Apply 450

Chapter Questions and Activities 453

Marketing in Action Case: Real Choices at Domino's 456

CHAPTER 14: Promotion 11: Social

Social Media 461 Social Networks 461

CONTENTS J xi

Mobile Apps and Location-Bast.'Cl Social Networks 464

The Internet of Thin&$ 465 DIRECT MARKETING 465

Mail Order 466

Direct Mail 466 Telemarketing 466 Din.>ct-R,,sponse Ad"ertising 467

M.Commcrre 467 PERSONAL SELLING: ADDING THE PERSONAL TOUCH TO THE PROMOTION MIX 468

The Role of Personal Selling in the Marketing Mix 468 Tcclmology and Personal Sclling 470 Types of Sales Jobs 472

Two Approaches to Personal Selling 473 The Creative Selling Process 474

PUBLIC RELATIONS 477

Plan a PR Camp.,ign 478 RIPPED FROM THE HEADLINES: Ethical/Sustainable Decisions in the Real World 480

PR Tactics 480 Buzz Marketing 483 Evaluation of a PR Campaign 485

Objective Summary • Key Terms • Apply 487

Chapter Questions and Activities 488

Marketing in Action Case: Real Choices at Burger King 491

Appendix A Marketing Plan: The S&S Smoothie Company ............................................................................. 492

Appendix B Your Future in a Marketing Career ......... 505

NOTES 516

GLOSSARY 535

NAME INDEX 553

SUBJECT INDEX 559

This page inte11tio11al/y lefi bla11k

~Preface WHAT'S NEW IN THE NINTH EDITION? What's new in the ninth edition is what's new in marketing. To put it simply. we foe.I a newcomer to marketing today needs to g;rapple with three core issues: Value, analytics and

metrics, and ethical and sustainable marketing;. Herc's just a sample of what we changed in this edition:

• Today's marketer needs to be .. a numbers person." lncreasingly,. the field is data driven,

and sophisticated analytics are revolutionizing the options organizations have at their fingertips to create, deliver, and m

and metrics, and in this edition we've continued to expand that coverage significantly to show how marketers use the exciting new toots they have available to understand and ha.mess ,..Big Data" as they strive to identify and meet customer needs. To reinforce

this focus throughout the book, each chapter provides a Melr-ics Moment box that de .. scribes some important ways to measure key marketing concepts and each chapter also includes an Apply Marketiug Metrics ~erci.se at the end.

• ln U,e cighth edition, we wen~ proud to be the first marketing principles textbook to devote an entire chapter (Chapter 5) to the =crgmg and ,•ital topic of Big Data and ma.rketing anal),tics. Now in the ninth edition we've greatly expanded that chaptct's

coverage to include nwnerous new key tlmnS, many more applic.ation examples to connect concepts to practice, and several nc-w tables and figures to further iUustrate this fascinating chapter material.

• The ninth edition shines an even larg~ spotlight on the importance oJ e thical and

sustainable marketing. The topic is so important to today's students that our cover• age of ethical issues begins right up front in Chapter 2. As soon as the s tudent basically understands what marketing is, he or she begins to learn how it should be. And ead\

chapter provides a boxed feature called Ripped from the Headlines: Ethical/Sustainable Decisions in the Real World. Here we describe a questionable marketing practice and then ask students for th.cir opinion on lhe subject All 14 of these boxes arc new for the ninth edition, induding attention to such firms as Coca..Cola, ChipotJc, Volkswagen, Kimberly Oark, and Allstar (the "Snuggie").

• Each chapter continues to fcature a Marketing in Action mini.case at the end, and 13

of these are brand new for the ninth edition. Among the exciting firms with interesting problems and opportunities featured in these cases arc Getfeedback, Airbus, Sprig, Faccl>ook, Disney, Target, and Alit>aba.

• The dOOS-ion•focUSL>d Real People vignettes that frame each chapter arc one of the sig• nature features of our book. We continue this tradjtion in the ninth edition with seven

new vignettes (50 percent of the total). These new vignettes include executives from Twitter, Campbell Soup, Weight Watchers, Levi Strauss, Quaker, BOP International,

and Pitch (the advertising agency for Burger King).

• We emphasize active learning and decision making because we kn.ow that is what l?m•

ployers sc>ck in today's graduates. We further sharpen our focus on employability in the ninth edition with the debut of a new supplemental fcatute, found in MyMarkct·· ingLab, called "Rising Stars in Marketing.• Here we present video clips contributed by

xiii

XIV I PREFACE

roo,nt suc=sful graduates of marketing programs around the country. E!ach pc,son shares advice about jol,.,secking and offers "do's and do.n'ts'., to current readers. These clips are indexed by job type, so students have the option of exploring career wisdom from those who have followed the same path thei• hope to take.

• Last but-certainly not least, as always we pride ourselves on the currency of ourcontc.,,t Today's student descr1cs to know what is going on in the marketing world today-and also tomorrow to the extent we can pn.>dict il Herc is a sampling of new Key Terms we introduce in the ninth edition:Ninth Edition •

Real People, Real Choices Michael R. Solomon I Greg W. Marshall I Elnora W. Stuart

@ Pearson

•

Real People, Real Choices

Ninth Edition

Note from the uploader:

This book is too expensive for most people and it is too new (As 1/21/18) to be found anywhere. If you want to find books like this in the future you can follow these instructions.

Stuff you need: Amazon account, Kindle for PC, money that you will get refunded, greenshot screenshot manager.

1) Find the ebook version on amazon 2) Rent to Kindle PC 3) Install greenshot and capture the portion of the screen which the book is in.

a. Make sure to select a key combination that is easy to press so that you can just hit next page followed by the screenshot command. Example: I use ctrl + space to activate taking a screenshot of the page portion

4) Ideally, export to a .tiff file (Change greenshot settings) 5) Combine files using a pdf program. I use acrobat but that’s a pirated program so idk what else

out there a. If you don’t have a program, after step 4, install something like winrar or 7 zip (free) to

keep all the files neatly in one place. 6) MOST IMPORTANT: Refund Amazon purchase

a. This should all be done within 12 hours of buying the ebook from amazon b. Don’t abuse the refund thing too much because they might catch up to you and ban

your account or something idk.

I’m a broke college kid and I’m just trying to help the rest of you broke fools out.

Enjoy the book. I might do this more often cuz I ain’t trying to drop gs I can’t afford to be droppin right now.

-The Nigga Anish Fly Woopin in the Bity

This page intentionally left blank

•

Real People, Real Choices

Ninth Edition

Michael R. SOLOMON SAINT JOSEPH'S UNIVERSITY

Greg W. MARSHALL ROLLINS COLLEGE

Elnora W. STUART UNIVERSITY OF SOUTH CAROLINA UPSTATE

Vice President, Business Publishing: Donna Battista Director of Portfolio Management: Stephanie WaU Portfolio Manager: Emily Tamburri Editorial Assistant Eric Santucci Vice Pres ident, Product Marketing: Roxanne

McCarley Director of Strategic Marketing: Brad Parkins Strategic Marketing Manager: Deborah Strickland Product Marketer: Becky Brown Field Marketing Manager: Lenny Ann Kucenski Product Marketing Assis tant Jessica Quazza Vice President, Production and Digital Studio, Arts

and Business: Etain O'Oea Director of Production, Business: Je.ff Holcomb Managing Producer, Business: Ashley Santora Content Producer: Oaudia Fernandes

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Library of Congress Cataloging-in-Publication D ata

Names: Solomon, Michael R., author. ) Marshall, Greg W., author. S tuart,

Elnora W., author. Title: Marketing: real people, real choices / Michael R. Solomon, Greg W.

Marshall, Elnora W. Stuart. Description: Ninth edition. ) Hoboken, NJ : Pearson, (2018] Identifiers: LCCN 2016034398 I ISBN 9780134292663 I lSBN 0134292669 Subjects: LCSH: Marketing- Vocational guidance. Classification: LCC HF5415.35 .S65 2018 I DOC 658.8-

10 9 8 7 6 5 4 3 2 1

@Pearson ISBN 10: 0-13-429266-9 ISBN 13: 978-0-13-429266-3

To Gail, Amanda, Zachary, Alex, Orly, Rose, Evey, and Arya- my favorite market segment

- M.S.

To Patti and Justin

- G.M.

To Sonny, Patrick, Gabriela, Allyson, and Marge

- E.S.

~ Brief Contents Preface xiii

PART 1 Understand the Value Proposition 2

CHAPTER 1

CHAPTER 2

CHAPTER 3

CHAPTER 3

Welcome to the World of Marketing: Create and Deliver Value 2

Global, Ethical, and Sustainable Marketing 30

Strategic Market Planning 66

Supplement: Build a Marketing Plan 90

PART 2 Determine the Value Propositions Different Customers Want 92

CHAPTER 4

CHAPTER 5

CHAPTER 6

CHAPTER 7

Market Research 92

Marketing Analytics: Welcome to the Era of Big Data! 124

Understand Consumer and Business Markets 158

Segmentation, Target Marketing, and Positioning 202

PART 3 Develop the Value Proposition for the Customer 232

CHAPTER 8

CHAPTER 9

Product I: Innovation and New Product Development 232

Product II: Product Strategy, Branding, and Product Management 262

CHAPTER 10 Price: What Is the Value Proposition Worth? 290

CHAPTER 1 O Supplement: Marketing Math 330

PART 4 Deliver and Communicate the Value Proposition 340

CHAPTER 11 Deliver the Goods: Determine the Distribution Strategy 340

CHAPTER 12 Deliver the Customer Experience: Goods and Services via Bricks and Clicks 374

CHAPTER 13 Promotion I: Advertising and Sales Promotion 410

CHAPTER 14 Promotion II: Social Media Marketing, DirecVDatabase Marketing, Personal Selling, and Public Relations 458

Appendix A Marketing Plan: The S&S Smoothie Company 492

Appendix B Your Future in a Marketing Career 505

Notes 516

Glossary 535

Name Index 553

Subject Index 559

~ Brief Contents Preface xiii

PART 1 Understand the Value Proposition 2

CHAPTER 1

CHAPTER2

CHAPTER3

CHAPTER3

Welcome to the World of Marketing: Create and Deliver Value 2

Global, Ethical, and Sustainable Marketing 30

Strategic Market Planning 66

Supplement: Build a Marketing Plan 90

PART 2 Determine the Value Propositions Different Customers Want 92

CHAPTER4

CHAPTERS

CHAPTER&

CHAPTER 7

Market Research 92

Marketing Analytics: Welcome to the Era of Big Data! 124

Understand Consumer and Business Markets 158

Segmentation, Target Marketing, and Positioning 202

PART 3 Develop the Value Proposition for the Customer 232

CHAPTER&

CHAPTER9

CHAPTER 10

CHAPTER 10

Product I: Innovation and New Product Development 232

Product II: Product Strategy, Branding, and Product Management 262

Price: What Is the Value Proposition Worth? 290

Supplement: Marketing Math 330

PART 4 Deliver and Communicate the Value Proposition 340

CHAPTER 11

CHAPTER 12

CHAPTER 13

CHAPTER 14

Deliver the Goods: Determine the Distribution Strategy 340

Deliver the Customer Experience: Goods and Services via Bricks and Clicks 37 4

Promot ion I: Advertising and Sales Promotion 410

Promotion II: Social Media Marketing, DirecVDatabase Marketing, Personal Selling, and Public Relations 458

Appendix A

Appendix B

Notes 516

Glossary 535

Name Index 553

Marketing Plan: The S&S Smoothie Company 492

Your Future [n a Marketing Career 505

Subject Index 559

vi

~Contents Preface xiii

PART 1 Understand the Value Proposition 2

CHAPTER 1: Welcome to the World of Marl

Real People, Real Choices: Here's my problem .. . 3

MARKETING: WHAT IS IT? 4

"Marketing ls the Activi~ institutions, a nd Processes . .. " 4

" ... rorCreating. Communicating. Delivering,

a nd Exchanging: The Marketing Mix . . . " 5 ... .. Offerings ... ": Whal Can We Market? 7

" . .. VaJuc for Customers .. . ' ' 9 WHEN DID MARKETING BEGIN? THE EVOWTION OFACONCEPT 11

The Production Era 12

The Sales Era 12 The Rclationship Era 12 The Triple-Bottom-Line Orientation 13

What's Next in the Evolution or Marketing? 14 RIPPED FROM THE HEADLINES: Ethical/Sustainable

Decisions in the Real World 15

THE VAWE OF MARKETING AND THE MARKETING OFVAWE 16

Value (mm the Customer's Perspective 16

Value from the Se:Uer's Perspective 16

Value from Society's Perspective 22

MARKETING AS A PROCESS 24

Objective Summary • Key Terms • Apply 25

Chapter Questions and Activities 27

Marketing in Action Case: Real Choices at Coca-Cola 28

CHAPTER 2: Global , Ethical, and Sustainable Marketing ........................ 30

Real People, Real Choices: Here's my problem.. . 31

TAKE A BOW: MARKETING ON THE GLOBAL STAGE 32

World Trade 33

Should We Go Global? 34 Consider Your Competitive Advantage 34

UNDERSTAND INTERNATIONAL, REGIONAL, AND COUNTRY GLOBAL TRADE CONTROLS 35

Initiatives in lntemationaJ Cooperation and Regulation 35

Protected Trade: Quotas, Embargoes, and Tariffs 36

Economic Communities 36 ANALVZE THE EXTERNAL MARKETING ENVIRONMENT 37

The: Economic Environment 37

The Corn_pctitivc Environment 41 The Technological Environment 43 The Political an d Legal Environment 43

Thi! Sociocultural Environment 46 HOW "GLOBAL" SHOULD A GLOBAL MARKETING STRATEGY BE? 48

Company-Levcl Decisions: The Market Entry Strategy 49 Marketing Mix Stratc,gics 50

ETHICS IS JOB ONE IN MARKETING PLANNING 53

Ethical l'hilosoprues 53 Codes or Business Ethics 54 Is Marketing Unethical? 55

When Is a Bribe Not a Bribe? Ethical Issues for Global Business 56

SUSTAINABILITY: MARKETERS DO WELL BY DOING GOOD 57

Sustainability Is a Sensible Business Decision 57 Developing a Sustainable Marketing Mix 57

RIPPED FROM THE HEADLINES: Ethical/Sustainable Decisions in the Real World 58

Sustainable Customer Behavior 59

Objective Summary • Key Terms • Apply 60

Chapter Questions and Activities 62

Marketing in Action Case: Real Choices at Ford 64

CHAPTER 3: Strategic Market Planning .............. ...................................... 66

Real People, Real Choices: Here's my

problem ... 67

BUSINESS PLANNING: COMPOSE THE BIG PICTURE 68

The Three Levels of Business Planning 69 STRATEGIC PLANNING: FRAME THE PICTURE 71

Step 1: Deline the Mission 71 Step 2: Evaluate the Internal and External Environment 71

Step 3: Set Organi2ational or SBU Objectives 72 Step 4: Establish the Business Portfolio 73 Step 5: Develop Growth Strategics 75

RIPPED FROM THE HEADLINES: Ethical/Sustainable

Decisions in the Real World 77 MARKET PLANNING: DEVELOP AND EXECUTE MARKETING STRATEGY 77

Step!: Perform a Situation Analysis 78 Step 2: Set Marketing Objectives 78

vi i

vi ii I CONTENTS

Step 3: Devclop Marketing Strategies: Target Markets .lnd the Marketing Mix 78

Step 4: Implement and Control the Marketing Plan 80

Action Plans 81 Operational Planning: Day-to-Day Execution

of Marketing Plans 84

Make Your Life l!asier! Use the Market Planning Template 84 Objective Summary • Key Terms • Appty 85

Chapter Questions and Activities 86

Marketing in Action Case: Real Choices at Amazon 88

Supplement: Build a Marketing Plan 90

PART 2 Determine the Value Propositions Different Customers Want 92

CHAPTER 4 : Market Research ..... .... 92 Real People, Real Choices: Here's my problem .. . 93

KNOWLEDGE IS POWER 94 The Marketing Information System 95

CUSTOMER INSIGHTS AND MARKETING 100

STEPS IN THE MARKET RESEARCH PROCESS 100 Step I: Define the Research Problem 101 Step 2: Determine the Research Design 102

RIPPED FROM THE HEADLINES: Ethical/Sustainable Decisions in the Real World 1 OS

Step 3: Choose the Method to Collect Primary Data 106

Step 4: Oc>sign the Sample 114 Step 5: Collect the Data 116 Step 6: Analyze and Interpret the Data 117

Step 7: Prepare the Research Report 117 Objective Summary• Key Terms • Apply 118

Chapter Questions and Activities 119

Marketing in Action Case: Real Choices at GetFeedback 122

A CHAPTER 5: Marketing Analytics: Welcome lo the Era of Big Data! .............. 124

Real People, Real Choices: Here's my problem... 125

CUSTOMER RELATIONSHIP MANAGEMENT (CRM): A KEY DECISION TOOL FOR MARKETERS 126

Customer-Re-lated Metrics 129 SIG DATA: TERABYTES RULE 131

Big Data Creation, Sources, and Usage 133 Data Mining 136

Primary Data 'lypes for Data M;ning 137 RIPPED FROM THE HEADLINES: Ethical/Sustainable Decisions in the Real World 137

Data Mining: Applications /or Marketers 139

Data Scientists: Transforming Big Data into Wuuung Information 140

MARKETING ANALYTICS 141

Coru,cct Digital Marketing Channels to Marketing Analytics 141

Make Marketing Accountable: Detennine the Value of

Digital Marketing Investments acnlSS Channels 146 Marketing Accountability within Nondigital Marketing

Channels 148

Predictive Analytics 149 METRICS FOR MARKETING CONTROL 150

Margin on Sales 152

Churn Rate 152 Objective Summary • Key Terms • Apply 153

Chapter Questions and Activities 1S4

Marketing in Action Case: Real Choices at Novartis 156

A ~~i!!~ M~ ~e~~·d·""'.~." d .. ~~~'.".~e;58

Real People, Real Choices: Here's my problem. . . 159

THE CONSUMER DECISION·MAKJNG PROCESS 160 Not All Decisions Are the Same 161 Step I: Problem Recognition 162

Step 2: Wormation Search 163 Stc.p 3: Evaluatioi, of Alternatives 164 Step 4: Product Choia, 164

Step 5: Postpurchasc Evaluation 165

INTERNAL INFWENCES ON CONSUMERS' DECISIONS 166

Pc.rception 166

Motivation 168

Leaming 170

RIPPED FROM THE HEADLINES: Ethicai/Sustainable Decisions in the Real World 170

Attitudes 171

Personality and the Scl/: Are You What You Buy? 172 Age 172 Lifestyle 173

SITUATIONAL AND SOCIAL INFLUENCES ON CONSUMERS' DECISIONS 174

Situational ln/lucnccs 174

Social lrulucnces on Consumers' IA>cislons 175 BUSINESS MARKETS: 8UYING AND SELLING WHEN THE CUSTOMER IS ANOTHER ORGANIZATION 179

Type, of Business-to-Business Customers 180 Factors That Make a Difference in Business Markets 182 B2B Dcm.lnd 184

BUSINESS BUYING SITUATIONS AND THE BUSINESS BUYING DECISION PROCESS 186

The Buyclass framework 186

Professional Buyers and Buying Centers 187

The Business Buying Decision Process 189 828 £.Commerce and Social Media 192

Objective Summary• Key Terms• Apply 195

Chapter Questions and Activities 197

Marketing in Action Case: Real Choices at Airbus 200

CHAPTER 7: Segmentation, Target Marketing, and Positioning ..................... 202

Real People, Real Choices: Here's my problem. . . 203

TARGET MARKETING: SELECT AND ENTER A MARKET 204

STEP 1: SEGMENTATION 205 Segment Consumer Markets 205

Segment 828 Markets 216 STEP 2: TARGETING 217

PhasesofTargeling 217 STEP 3: POSITIONING 221

RIPPED FROM THE HEADLINES: Ethical/Sustainable Decisions in the Real Wor1d 221

Steps in Positioning 222 Bring a Product to Life: Brand Personality 224

Objective Summary • Key Terms • Apply 226 Chapter Questions and Activities 227

Marketing in Action Case: Real Choices at Sprig 230

PART 3 Develop the Value Proposition for the Customer 232

CHAPTER 8: Product I: Innovation and New Product Development.. .................... 232

Real People, Real Choices: Here's my problem . . . 233

BUILD A BETTER MOUSETRAP-AND ADD VALUE 234

Layers of the Product Conc,,pt 215 HOW MARKETERS CLASSIFY PRODUCTS 237

How Long Do Products Last? 237 How Do Consumers Buy Products? 238 How Do Businc-sscs Buy Products? 240

"NEW AND IMPROVED!" THE PROCESS OF INNOVATION 241

'Types of Innovations 242 NEW PRODUCT DEVELOPMENT 244

Phase 1: Idea Generation (Ideation) 244 Phase 2: Product Concept Development and

Screening 245

Phase 3: Marketing Strategy Development 245

Phase 4: Business Analysis 246 Phase 5: Technical Development 246

CONTENTS J ix

RIPPED FROM THE HEADLINES: Ethical/Sustainable

Decisions in the Real World 246

Phase 6: Market Test 247 Phase 7: Commercialization 248

ADOPTION AND DIFFUSION OF NEW PRODUCTS 249

Stages in Consumers' Adoption of a New Product 249

Adopter Categories 252 Product Factors That Affect the Rate of Adoption 254

Objective Summary • Key Terms • Apply 256

Chapter Ques1ions and Activities 258

Marketing in Action Case: Real Choices at Facebook 260

CHAPTER 9: Product 11: Product Strategy, Branding, and Product Management •...... ..................................... 262

Real People, Real Choices: Here's my problem... 263

PRODUCT PLANNING: DEVELOP PRODUCT OBJECTIVES AND PRODUCT STRATEGY 264

Getting Product Objectives Right 2&1 Objectives and Strategics for lndividua)

Products 265

Objectives and Strategies for Multiple Products 266 Product M;x Strategics 268 Quality as a Product Obj<>etivc: TQM

and Beyond 268 RIPPED FROM THE HEADLINES: Ethical/Sustainable

Decisions in the Real World 269

MARKETING THROUGHOUT THE PRODUCT LIFE CYCLE 271

Introduction Stage 271

Growth Stage 273 Maturity Stage 273 Decline Stage 274

BRANDING AND PACKAGING: CREATE PRODUCT IDENTITY 274

What's in a Name (or a Symbol)? 274

Why Brands Matter 275 Branding Strategics 277 Packages and Label<: Branding's Little Helpers 280

ORGANIZE FOR EFFECTIVE PRODUCT MANAGEMENT 284

Manage Existing Products 284

Organize for New Product Development 2S5 Objective Summary • Key Terms • Apply 285

Chapter Questions and Activities 287

Marketing in Action Case: Real Choices at Blue Diamond 289

X I CONTENTS

CHAPTER 10: Price: What Is the Value Proposition Worth? ................................... 290

Real People, Real Choices: Here's my problem. . . 291

&.loU..- .-.1 "YES, BUT WHAT DOES IT COST?" 292 What ls Price? 292

COSTS, DEMAND, REVENUE, AND THE PRICING ENVIRONMENT 296

Step 2: Estimate Demand 296 Step 3: Determine Costs 300 Step 4: Examine the Pricing Environment 305

IDENTIFY STRATEGIES AND TACTICS TO PRICE THE PRODUCT 308

Step 5: Choose a Pricing Strategy 308

Pricing Strategies Based on Cost 308 Step 6: Develop Pricing Tactics 312

PRICING AND ELECTRONIC COMMERCE 315

Dynamic Pricing Strategies 316 rntcmet Price Discrimination 316 Online Auctions 316

Frecmium f'ricing Strategies 317 Pricing Advantages for Online Shoppers 317

PSYCHOLOGICAL, LEGAL, AND ETHICAL ASPECTS OF PRICING 317

Psychological Issues in Setting Prices 318 Psychological !'ricing Strategics 319

Legal and Ethical Considerations in 82C Pricing 320

Legal Issues in B2B Pricing 321

RIPPED FROM THE HEADLINES: Ethical/Sustainable Decisions in the Real World 323

Objective Summary • Key Terms • Apply 323

Chapter Questions and Activities 325

Marketing in Action Case: Real Choices at Disney 328

Supplement: Marketing Math 330

PART 4 Deliver and Communicate the Value Proposition 340

CHAPTER 11: Deliver the Goods: Determine the Distribution Strategy ............... 340

Real People, Real Choices: Here's my problem. . . 341

TYPES OF DISTRIBUTION CHANNELS AND WHOLESALE INTERMEDIARIES 342

Functions of Distribution Channels 342 The: Evolution of Distribution Functions 344 Types of Distribution Charu,cls 348

Distribution Channels and the Marketing Mb< 352 Ethics in the Dis tribution Channcl 353

DEVELOP A CHANNEL STRATEGY 354

Step 1: Develop Distribution

Objectives 354 Step 2: Evaluate Internal and External Environmental

Influences 354

Step 3: Choose a Distribution Strategy 355 Step 4: Develop Distribution Tactics 359

LOGISTICS AND THE SUPPLY CHAIN 360

The Lowdown on Logistics 361 Place: Pulling Jt All Together through the Supply

Chain 365 RIPPED FROM THE HEADLINES: Ethical/Sustainable

Decisions in the Real World 367

Objective Summary • Key Terms • Apply 36B

Chapter Questions and Activities 369

Marketing in Action Case: Real Choices at Target 372

STYLE 376

CHAPTER 12: Deliver the Customer Experience: Goods and Services via Bricks and Clicks ..................................... 374

Real People, Real Choices: Here's my problem.. . 375

RETAILING, TWENTY-FIRST-CENTURY

Retailing: A M;xed (Shopping) Bag 376 The Evolution o.f Retailing 377 The Evolution Continues: What's Nin Store" for the

Future? 378 Ethical Problems in Retailing 382

RIPPED FROM THE HEADLINES: Ethical/Sustainable

Decisions in the Real Wor1d 382

TYPES OF BRICK-AND-MORTAR RETAILERS 383

Oassily Retailers by What They Sell 383

Oassily Retailers by Level o! Service 384 Major Types o! Retailers 385

E-COMMERCE AND OTHER TYPES OF NONSTORE RETAILERS 390

B2C E.Commcrce 390 Direct Selling 394

Automatic Vending 395 RETAILING WHAT ISN'T THERE: SERVICES AND OTHER INTANGIBLES 395

Marketing What Isn' t There 395 Physical Elements of the Service Encounter: Scrviccscapes

a nd Other Tangibles 398

How We Provide Quality Service 398 Strategic Issues When We Deliver Service Quality 399 Marketing People, Places, and Ideas 400

Th~ Future of Services 402 Objective Summary • Key Terms • Apply 404

Chapter Questions and Activities 405

Marketing in Action Case: Real Choices at Alibaba 408

CHAPTER 13: Promotion I: Advertisir19 and Sales Promotion ............................... .. 410

AeaJ People, Aeal Choices: Here's my problem ... 411

COMMUNICATION MOOELS IN A DIGITAL WORLD THAT IS "ALWAYS ON" 412

The Communication Modcl 414

The Trarutional Promotion Mix 416 Mass Communication: The One-to-Many Model 416 Personal Colnmunication: The One.to.One ModeJ 418

OVERVIEW OF PROMOTION PLANNING 418

Step 1: Identify the Target Audiencc(s) 418 Step 2: Establish the Communication Objectives 418

Step 3: Ot!tcrminc and Allocat~ the Marketing Communication Budget 421

Step 4: Design the Promotion Mix 422

Step 5: Evaluate the Effectiveness of the Communic.ation Program 423

Multichannel Promotion Strategics 423

ADVERTISING 424 Types of Advertising 425 Who Creates Advertising? 426

Use.r.Ccne.rated Advertising Content 427 Ethical Issues in Advertising 428 Develop the Advertising Campaign 429

Where to Say It: Trarutional Mass Media 436 Where to Say It: Branded Entertainment 439 Where to Say JI: Support Media 439

Where to Say It: Digital Media 440

RIPPED FROM THE HEADLINES: Ethical/Sustainable Decisions in the Real World 442

When and How Often to Say It: Media Scheduling 443 SALES PROMOTION 445

Sales J'''romotion Dit12etcd toward Consumers 445 Trade Sales Promotion: Targeting the BZB Customer 448

Objective Summary • Key Terms • Apply 450

Chapter Questions and Activities 453

Marketing in Action Case: Real Choices at Domino's 456

CHAPTER 14: Promotion 11: Social

Social Media 461 Social Networks 461

CONTENTS J xi

Mobile Apps and Location-Bast.'Cl Social Networks 464

The Internet of Thin&$ 465 DIRECT MARKETING 465

Mail Order 466

Direct Mail 466 Telemarketing 466 Din.>ct-R,,sponse Ad"ertising 467

M.Commcrre 467 PERSONAL SELLING: ADDING THE PERSONAL TOUCH TO THE PROMOTION MIX 468

The Role of Personal Selling in the Marketing Mix 468 Tcclmology and Personal Sclling 470 Types of Sales Jobs 472

Two Approaches to Personal Selling 473 The Creative Selling Process 474

PUBLIC RELATIONS 477

Plan a PR Camp.,ign 478 RIPPED FROM THE HEADLINES: Ethical/Sustainable Decisions in the Real World 480

PR Tactics 480 Buzz Marketing 483 Evaluation of a PR Campaign 485

Objective Summary • Key Terms • Apply 487

Chapter Questions and Activities 488

Marketing in Action Case: Real Choices at Burger King 491

Appendix A Marketing Plan: The S&S Smoothie Company ............................................................................. 492

Appendix B Your Future in a Marketing Career ......... 505

NOTES 516

GLOSSARY 535

NAME INDEX 553

SUBJECT INDEX 559

This page inte11tio11al/y lefi bla11k

~Preface WHAT'S NEW IN THE NINTH EDITION? What's new in the ninth edition is what's new in marketing. To put it simply. we foe.I a newcomer to marketing today needs to g;rapple with three core issues: Value, analytics and

metrics, and ethical and sustainable marketing;. Herc's just a sample of what we changed in this edition:

• Today's marketer needs to be .. a numbers person." lncreasingly,. the field is data driven,

and sophisticated analytics are revolutionizing the options organizations have at their fingertips to create, deliver, and m

and metrics, and in this edition we've continued to expand that coverage significantly to show how marketers use the exciting new toots they have available to understand and ha.mess ,..Big Data" as they strive to identify and meet customer needs. To reinforce

this focus throughout the book, each chapter provides a Melr-ics Moment box that de .. scribes some important ways to measure key marketing concepts and each chapter also includes an Apply Marketiug Metrics ~erci.se at the end.

• ln U,e cighth edition, we wen~ proud to be the first marketing principles textbook to devote an entire chapter (Chapter 5) to the =crgmg and ,•ital topic of Big Data and ma.rketing anal),tics. Now in the ninth edition we've greatly expanded that chaptct's

coverage to include nwnerous new key tlmnS, many more applic.ation examples to connect concepts to practice, and several nc-w tables and figures to further iUustrate this fascinating chapter material.

• The ninth edition shines an even larg~ spotlight on the importance oJ e thical and

sustainable marketing. The topic is so important to today's students that our cover• age of ethical issues begins right up front in Chapter 2. As soon as the s tudent basically understands what marketing is, he or she begins to learn how it should be. And ead\

chapter provides a boxed feature called Ripped from the Headlines: Ethical/Sustainable Decisions in the Real World. Here we describe a questionable marketing practice and then ask students for th.cir opinion on lhe subject All 14 of these boxes arc new for the ninth edition, induding attention to such firms as Coca..Cola, ChipotJc, Volkswagen, Kimberly Oark, and Allstar (the "Snuggie").

• Each chapter continues to fcature a Marketing in Action mini.case at the end, and 13

of these are brand new for the ninth edition. Among the exciting firms with interesting problems and opportunities featured in these cases arc Getfeedback, Airbus, Sprig, Faccl>ook, Disney, Target, and Alit>aba.

• The dOOS-ion•focUSL>d Real People vignettes that frame each chapter arc one of the sig• nature features of our book. We continue this tradjtion in the ninth edition with seven

new vignettes (50 percent of the total). These new vignettes include executives from Twitter, Campbell Soup, Weight Watchers, Levi Strauss, Quaker, BOP International,

and Pitch (the advertising agency for Burger King).

• We emphasize active learning and decision making because we kn.ow that is what l?m•

ployers sc>ck in today's graduates. We further sharpen our focus on employability in the ninth edition with the debut of a new supplemental fcatute, found in MyMarkct·· ingLab, called "Rising Stars in Marketing.• Here we present video clips contributed by

xiii

XIV I PREFACE

roo,nt suc=sful graduates of marketing programs around the country. E!ach pc,son shares advice about jol,.,secking and offers "do's and do.n'ts'., to current readers. These clips are indexed by job type, so students have the option of exploring career wisdom from those who have followed the same path thei• hope to take.

• Last but-certainly not least, as always we pride ourselves on the currency of ourcontc.,,t Today's student descr1cs to know what is going on in the marketing world today-and also tomorrow to the extent we can pn.>dict il Herc is a sampling of new Key Terms we introduce in the ninth edition: