Https myteam tupperware eu fr

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:

Chapter I

accountability return on marketing

investment (ROM!)

mobile marketing

usc.r•gcncratcd content corporate citizenship screen addicts growth hackers haul videos

competitive advantagt? consumer addiction Web 1.0 Web3.0 Web4.0

screen addicts

Cloud positioning

Chapter2 Arab Spring Cn.--cohousc Effect global warming World Bank International Monetary Fund (IMF)

foreign exchange rate (forex rate) balance of payments BRICS countries

drones unmanned aerial vehicles (UAVs)

Chapter3 market planning activity mettics

outcome metrics leading indicators

Chapter4 market research online

community (MROC)

mechanical observation eye tracking technology

intcmal validity external validity

Chapters mar .. tech marketing automation channel partner model

emotion analysis

digital matketing channels A/8 test landing page chum rate margin on sales

Chapter6 evoked set consideration set determinant attributes compensatory decision rules multitasking

rich media sadvertising conscientious con.$umerlsm

Chapter ? gcne:ratfonaJ marketing digital natives buying P0\ .. 1er organizational demographics

positioning statement bra.nd anthropomorphism

Chapters tech.i\ica} SUCCt.'.'SS

commercial success beta test bleeding edge technology

Chapter 9 brand dilution sustainable packaging

copycat packaging

ChapterlO vcrtica.1 integration shopping for control

keystoning high/low pricing promo pricing

price segmentation f'<"'k load pricing surge pricing

bottom of the pyramid pricing decoy pricing prestige ot premium pricing

Chapter11 direct channel

product diversion dive:rter grey market level loading subscrip tion boxes

Chapter12 experiential mcn:handising destination retailer

omnichanncl marketing organiud retail crin,c (ORC)

beacon marketing

digital walJcts fair trade goods bifurcated retailing

services

Chapter13 comparative advertising brand storytclling

slice of life advertising lifestyle advertising ad fraud

ad blocking mobile hijacking search engines

s..>arch marketing srorch engine marketing (SEM) sponsored search ads

text message advertising monetize

in•app advertising

QR code advertising

Chapter14 partner rclationship

management (PRM) telecommute virtual office

key account cross-functional team multilevel selling

direct selling video news release (VNR) sock p uppeting

paid influencer programs

Features of the Ninth Edition of Real People, Real Choices Meet Real Marketers Many of the Rt.v.il People, Real O,oices vignt."ttes arc new to this edition, featuring; a variety of decision makers., from CEOs to brand managctS. Here is just a sample of the marketers

WC feature:

• Michael Baumwoll, Twitter

• Keith Sutter, Johnson & Johnson

• Dondccna Jlradley, Weight Watchers

• 8..'Cky Frankiewicz, Quaker Foods

• Neal Goldman, Under Armour

• Jennifer Sey, Levi Strauss

• Stephanie Nashawaty, Oracle

• Stan Clark, Eskimo Joe's

PREFACE I xv

XVI I PREFACE

Ethics and Sustainability in Marketing

Because the role of ethics and sustainability in business and in 1narketing is so important, we focus on these topics not just in a single <:hapter but in ewry cltaptRr of the book. These

Ripped from tlte Headlines boxes feature real-life examples of e thical and sustainable decl· sions marketers are faced with on a day .. to-,day basis.

Easy-to-Follow Marketing Plan Template

Marketing: Real People, Real Cltoias, ninth edition, includes a handy supplement at the end of Chapter 3 that is a tc'tnplate of a marketing plan you can use as a road map as you make

your way through the book. The template provides a framework that is keyed to the major topics in the book, which will enable you to organize marketing concepts by chapter and create a solid marketing plan of your own.

Marketing Plan Appendix Appendix A, Marketing Plan: 11,e S&S Smoothie Company, provides a basic marketing

plan for this interesting, if fictitious, firm. The extended example gives s tudents the founda· tion they need to craft a complete marketing plan for a class project. ln addition, the plan includes hclpful "how to" guidcl..incs that answer many of the questions that students ask

while developing their own plans.

Career Appendix Appendix B, Your Future in a Markctu,g Career, provides guidance for students on how to plan for a succe;sful and rewarding career in the 6eld. Success is framed as de,•cl0ping a unique brand for yourself that mec'IS the nec--ds of the job market. Career guidance recommcn•

dations follow the s teps in a marketing plan with suggestions at each s tep for critical thinking and specific actions.

End-of-Chapter Study Map

Each chapter has an integrative study map for students that includes an Objective Summa• ry, Key Terms, and studeot assessment opportunities of several types: Concepts: Test Your Knowledge; Activities: Apply What You've Learned; Apply Marketing Metrics (more on this one follows); Choices: What Do You Think?, and Mini project: L.rom by Doing. 8y completing these assessments, students and instructors achieve maximum assuranw of lea.ming.

Measuring the Value of Marketing through Marketing Metrics Just how do marketers add value to a company, and how can they quantify that value?

More and more., businesses demand accountability,. and marketers respond as they develop a variety of ·'scorecards'' that show how specific marketing activities directly affect their company's return on invesunent (ROI). And on the job, ~,. decisions that marketers make

increasingly are informed by a mix of data-based facts coupled with good old markctu,g instinct. Each chapter provides a Metrics Momt'tll box that describes some important ways to measure key marketing concepts, including a short Apply lite Mttric exercise that asks the student to actually work with some of these measures. And every end-o(--chapter includes an Apply Marketing Metrics exercise th.at provides additional opportunities for students to practice measures that marketers use to hclp Ult.."tn make good decisions. Pricing excrciSL:.s included at the md of the Marketing Math Supplement following Chapter 10 provide the opportunity for students to work real-Life pricing problems.

New and Updated End-of-Chapter Cases in This Edition

Each d,apt~ concludes with an exciting Marketing in Action mini

Instructor Resources At the Pt>arson's Higher Ed catalog, https:/ /www.pearsonhigherod.com/sign•in.htrnl, in·

structors can easily register to gain access to a variety of instructor resources available v.rith the book in downloadable formal. If assistance is needed, Pearson's dedicated technical support team is ready to help with the media supplements that accompany th(' book. Visit

https:/ /supporl.pearson.com/getsupport for answers to fr<>quently asked questions and toll-free user support phone numbers.

The following supplements are available with the ninth edition:

• Instructor's Resource Manual

• Test Bank

• TestCcn"' Computerized Test Bank

• l'owerPoint J''rcse:ntation

This title is available as an eBook and can be purchased at most cBook rctaiJc-rs.

PREFACE I xvii

This page inte11tio11al/y lefi bla11k

A About the

rtathor~ C

Michael R. Solomon

I

MICHAEL R. SOLOMON, Ph.D., joined the Haub School of Business at Saint Joseph's University in

rhiladdphia as Professor of Marketing in 2006. From 2007 to

2013, he also held an appointment as Profussor of Consumer Bchaviout at the University of Manchester in the UnitOO King• dam. From 1995 to 2cn;, he was the Human Sciences Professor

of Consumer Behavior a l Aubum University. Before joining Aubum in 1995, he was chairman of the Ot."P"artment of Market• ing in the School of Business at Rutgers Universit}~ New Bruns,. wick, New Jersey. Professor Solomon's primary research intcras:ts indude consumer behavior and Lifestyle issues; branding strat• cgy; the symbolic asJX'ClS of product<; the psychology of fashion, dcco·ration,. and image; services marketing; and the development of visually oriented onlinc research methodologies. He currcn~y sits on the editorial boards of the founral of Consumer Bellaviour, the Journal far tlie Admncmrmt of Mnrkdurg £d11cntion, the Jo11r- 1tnl of Marketing Theory and Practice, and Critical Studies i11 Fashion and Benuty. In addition to other books, he is also the author of Prentice Hall's text Consumer Behavior: Buyiug. Having, and IJe... ing, which is \'o'idcly used in universities throughout the world. Professor Solomon frequently appears on television and radio shows, such as n,e Today Slunu, Good Moruing Americ.n, Channel One, the Wall Stn...t Jourml Radio Network, and National Public Radio to comment on consumer behavior and marketing issues.

Greg W. Marshall

GREG W. MARSHALL, Ph.D., is the Charles Har- wood rrofessor of Marketing and Strategy in th<, Crummcr Graduate School of Business at Rollins

College in Winter Park, Florida. For three years, he also served as vice president for strategic marketing for Rollins. Before join• ing Rollins, he was on the faculty of Oklahoma State University,

the University of South t-1orida, and Texas Christian University. He also holds a visiting professorship in the Marketing Croup at Aston BLL

Marshall earned a BS8A in marketing and an MBA from the Uni- versity of Tulsa and a Ph.D. in marketing from Oklahoma State

Univcrsi ty. His research interests include sales management, mar• keting management decision making, and inb'aorganization.al re,. lationships. He is editor-in-chic/ of the Jourru,t of Mnrlceti11g Theory and Practice and former editor of the Jounra/ of Personal Se11i11g & S../es Mn11ngem,,,u and currcn~y serves on the editorial boards of the Jorrnra/ of tire Acade111y of Mnrkdittg Science, the Jounral cf Busi- 1rc_,ss /u.'Se(Jrdr, and Industrial M.arkt'ting Mnuage,ni,it . I>rofcssor Marshall is a member of the board of directors of the A,n.,rican Marketing Association, past president of the American Market- ing A5SOCiation Academic Division, a distinguished fellow and past president of the Academy of Marketing Scien

Elnora W. Stuart

ELNORA W. STUART, Ph.D., is professor of marketing and associate dean of the George Dean Johnson, Jr. College of Business and

Economics at the University of South Carolina Upstate. Prior to joil\ing USC Upstate in 2008, she was professor of market- ing and the BP Egypt Oil rrofcssor of Management Studies at the American University in Cairo and professor of marketing at Winthrop University in Rock Hill, South Carolina, and on the faculty of the University of South Carolil\a. She has also been a regular visiting professor at lnsHtuto de Empresa in Madrid, Spain. She earned a B.A. in theater and speech from the Uni- versity of North Carolina a t Greensboro and both an M.A. in jouma.lism and mass communication and a Ph.D. in marketing from the U11iversity of South Carolina. Ptofossor Shtart's re• search has been published in major academic journals, includ• ing the Jottrrtnl of Co11s11mer Res,arc/1, the Joumal of Adt1'1'1isi11g, the Jounrat of Business Rese,m:/J, and the Jourual of Public Policy and Markett'ng. For over 25 years, she has served as a consulta.nt- for numerous businesses and not•for-profit organizations in the United States and in Egypt.

xix

This page inte11tio11al/y lefi bla11k

~ Acknowledgments \Ne (t!ature many ta!tmted marketers and successful companjcs in this book. tn devcJoping it, we also were fortunate to work with a team of exceptionally talented and creative people at Pearson. Emily Tamburri, Portfolio Manager, was instrumental in helping us solidify the vision for the ninth edjtion, and her assistance with decisions about 001,tent, organization, featu.res, and supplements was

invaluable. Kudos to Claudia Fernandes for managing the project with great efficiency and patience. Bt.>cky Brown deserv,es thanks for marketing the book sucn,ssfullr And we'd like to add our special thanks to Stephanie Wall, Director of Portfolio Management, for working with the author t~m over the long term to ensure that our book continues its tradition as a creative and innovative leader

in the principles of marketing space. A special note of appreciation goes to Phillip Wiseman of the Crummer Graduate School of Business at Rollins College for his

substantial contributions to Chapter 5-Markeling Analytics: Welcome to the Era of Big Data!--as well as his able assistance in bring ..

ing in fresh new ideas and a "m.iUenniaJ's pers_pt..."Clive'' to other aspects of the ninth edition. Phillip's ha.rd work and commitment to exccllence are most appreciated and he was a vaJued member of the ninth ed..ition team. And thank you to Leroy Robinson of the University of How;ton-Clear Lake, who so ably devcJoped the Marketing in Action cases for this edition.

No book is complete without a solid supplements package. We extend our thanks to our dedicated supplement authors who de- voted their time and shared their teaching ideas.

Final)~ our utmost thanks and appreciation go to our families for thcir continued support and encouragement. Without them, this project would not be po,;siblc.

Many proplc worked to make this ninth edition a reality. Guidance and recommendations by the foUowing professors and focus group participants helped us update and improve the chapters and the supplements:

REVIEWERS/FOCUS GROUP PARTICIPANTS Pia A. Albinsson, Appalachian State University Norma Anderson, Ivy Tech Community College Eileen Archibald, Phoenix CoUegc Michele Arpin, Chattanooga State Community College KeUy Atkins, East Tennessee State University Jacqueline Babb, Oakton Community College Dana Bailey, Ea.st Tennessee State University Koren Borges., University of North Florida Susan Callender, Hudson VaUey Community College Ricky Caraballo, Miami Dade College Jerome Christia, Coastal Carolina University Christy Cole, Cull Coast State College Debbie Coleman, Miamj University Amy Danley., Wtlmington University Abid Din, Ivy Tech Community College Jeff Fanter, Ivy Tech Community College Monica Fine, Coastal Carolina University Thomas F. Frizzcll, Sc, Massasoit Community College Gerald Yong Gao, University of Missouri-St. Louis Roland Gau, University of Texas-El Paso Tulay Girard, Penn State Altoona Charles S. Culas, Wright State University Bonnie Guy, Appalachian State University Mary Haines, Ohio University Jennifer S. Hampton, Ivy Tech Community College Eric Harvey, Ball State Univ<>rsity Karen Hawkin.<, Miami Dade College Carol Heeter, Ivy Tech Community College Donald Hoffer, Miami University Eva Hyatt., Appalachian State University Fernando R. Jimenez, University of Texas-El Paso Sungwoo Jung, Colwnbus Sta te University Alex Kim, Long Island University- Post

Helen Koons, Miami University Trina Lynch-Jackson, Ivy Tech Community College Mark Mitchell, Coastal Carolina University Lakshmi Nagarajan-Iyer, Middlesex County College Denisse Olivas, University of Texas-El Paso Ttmucin Ozcan, Southern Illinois University- Edwardsville Courtney Pham, Missouri State University Lisa Pucurs, University of North Carolina- Wilmington Mohammed Raw,vas, University of Northern lowa Julie Rigrish, Ivy Tech Commw,ity College Kathryn Schiffcrle., California State University-Chico Sarah M. Shepler, Ivy Tech Community College Brent Smith, Saint Joseph's University Randy Stuart, Kennesaw State University Ronda Taylor, h,y Tech Community CoUege Russell C. Wahlers, Ball State University Jcfrey R. WoodaU, York College of Pennsylvania Doula Zaharopoulos, Phoenix College

EXECUTIVES In addJtion to our reviC'\-v-crs and focus group participa.nts, we want to extend our gratitude to the busy executives who gave generously of their time for the Real People, Real Choices features.

Executives Featured in Real People, Real Choices Vignettes Chapter 1: Michael BaumwolJ, Twitter

Chapter 2: Keith Sutter, Johnson & Johnson Chapter 3: Stephanie Nashawaty, Oracle Chapter 4: Cindy Bron, Campbcll Soup Company Chapter 5: Lisa Arthur, Teradata Corporation

Chapter 6: Dondccna Bradley, Weight Watchers xxi

xxii I ACKNOWLEDGMENTS

Chapter 7: Jennifer Sey, L

Chapter 10: Betsy Fleming, Converse College Chapter 11: Michael Fon:!, BOP International Chapter 12: Stan Clark, Eskimo Joe's

Chapter 13: Sara Bamossy, Pitch Chapter 14: Rohan Oeuskar, Stylitics, Inc.

REVIEWERS OF PREVIOUS EDITIONS 'The follmvi.ng individuaJs were of immense hclp in reviewing all or part ol previous editions of this book and the supplement package:

Camille Abbruscato, Stony Brook University Roy Adler, Peppen:line University Lydia Anderson, Fresno Oty College Christopher Anicich, California State University- Fullerton Carole S. Arnone, Frostburg State University Gerald Athaide, Loyola College Nathan Austin, Morgan Sl'ate University Xenia Balabkins, Middlesex County College Fn.--d Beasley, Northern Kentucky University Cary Benson, Southeast Community College Jas Bhangal, Chabot College Gregory Speoccr Black, Metropolitan State College of Denver Creta Blake, York College of Pennsylvania Silvia Borges, Miami Dade CC- Wolfson Campus Norm Sorin, California State Polytechnic Univctsity Deborah Boyce, State University of New York Institute

of Technology, Utica, New York Tom Boyd, Califomia State University- Fullerton Henry C. Boyd Ill, University of Maryland-College Park Rich Brown, Harding University Val Calvert, San Antonio College Charles R. Canedy, University of Hartford Richard Celsi, Cali/omia State Uni,•crsity- Long flt.'ach Swtt•Lim Chia, LaSalle University Ruth Clottey, Barry University Paul Cohen, Florida Atlantic University Brian Connett, California State University- Northridg;e Robert M. Cosen2a, University of Mississippi C. Brad Cox, Midlands Technical College Brent Cunningham, Jacksonville S ta te University Mayukh Dass, Texas Tech University Mark Davis, Harding University Mark O.Fanti, Providence College George D. Deitz, University of Memphis Patricia Doney, Florida Atlantic University Michael Dotson, Appalachian State University Laura Dwyer, Rochester Institute of Technology Rita Dynan, LaSalle University Jill S. Dybus, Oakton Community College Joyce Fairchild, Northem Virginia Community College Eli2abeth Ferrell, Southwcstem Oklahoma State University Angel M. Fonseca, MSCTE, Jackson College Jie C. Fowler, Valdosta State Unjvcr.sity Joanne Frazier, Montgomery College Jon Freiden, Florida State University Marlene Frisbee, AB-Tech College Patricia Calitz, Southeast Community College Debbie Gaspard, Southeast Community College

Mike Cates, South Hills School of Business and Technology Kenneth C. Cchrt, San Jose State University Michael C',oldberg, Berkeley College Karen Welte Core, Ivy Tech Community College Kimbetly Goudy, Central Ohio Technical College Kimbedy D. Grantham, University of Georgia Arlene Creon, lndia.n River State College David Hansen, Texas Southern University John Hardjimarcou, University of Texas-El Paso Jeffrey S. Harper, Texas Tech University Dana LE. HaJTison_, East Tennessee State University Mano; Hastak_, Amcric.a.n University Kelli S. Hatin, SUNY Adirondack John Heinemann, Keller Graduate School of Management Dorothy Hetmcr-Hinds, Trinity Valley Community