Marketing management strategies ferrell hartline pdf

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Marketing Strategy

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Marketing Strategy Text and Cases

SIXTH EDITION

O . C . F E RRE L L The University of New Mexico

M ICHAE L D . HART L I N E The Florida State University

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Marketing Strategy: Text and Cases, Sixth Edition

O.C. Ferrell and Michael D. Hartline

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To my wife, Linda O.C. Ferrell

To Huck and ReRe Michael D. Hartline

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Brief Contents

PART 1 Setting the Stage for Marketing Strategy

CHAPTER 1 Marketing in Today’s Economy 1

CHAPTER 2 Strategic Marketing Planning 27

PART 2 Discovering Market Opportunities

CHAPTER 3 Collecting and Analyzing Marketing Information 53

CHAPTER 4 Developing Competitive Advantage and Strategic Focus 85

PART 3 Developing Marketing Strategy

CHAPTER 5 Customers, Segmentation, and Target Marketing 115

CHAPTER 6 The Marketing Program 149

CHAPTER 7 Branding and Positioning 199

PART 4 Putting Strategy into Action

CHAPTER 8 Ethics and Social Responsibility in Marketing Strategy 227

CHAPTER 9 Marketing Implementation and Control 255

CHAPTER 10 Developing and Maintaining Long-Term Customer Relationships 283

PART 5 Cases

CASE 1 USA Today: Innovation in an Evolving Industry 313

CASE 2 Apple’s Winning Marketing Strategy 327

CASE 3 Monsanto Balances the Interests of Multiple Stakeholders 339

CASE 4 New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing 351

CASE 5 New Belgium Brewing (B): Developing a Brand Personality 361

CASE 6 Mattel Confronts Its Marketing Challenges 371

CASE 7 Mistine: Direct Selling in the Thai Cosmetics Market 381

CASE 8 BP Struggles to Repair Its Tarnished Reputation 393

CASE 9 Chevrolet: 100 Years of Product Innovation 405

v i i

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CASE 10 Wyndham Worldwide Adopts a Stakeholder Orientation Marketing Strategy 419

CASE 11 NASCAR: Can’t Keep a Good Brand Down 429

CASE 12 IndyCar: Seeking a Return to Motorsports’ Fast Lane 441

CASE 13 Zappos: Delivering Happiness 451

CASE 14 Sigma Marketing: Strategic Marketing Adaptation 461

CASE 15 Netflix Fights to Stay Ahead of a Rapidly Changing Market 471

CASE 16 Gillette: Why Innovation May Not Be Enough 481

CASE 17 IKEA Slowly Expands Its U.S. Market Presence 493

CASE 18 Sushilicious: Standing Out In A Crowded Field 501

CASE 19 Trouble Brews at Starbucks 517

CASE 20 Groupon 533

Appendix Marketing Plan Worksheets 547

Brands and Companies Index 557 Name Index 571 Subject Index 575

viii Brief Contents

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Contents

PART 1 Setting the Stage for Marketing Strategy

CHA P T E R 1

Marketing in Today’s Economy 1

Introduction 1

Beyond the Pages 1.1 Thriving in Commodity Hell 2

The Challenges and Opportunities of Marketing in Today’s Economy 3

Basic Marketing Concepts 7 What Is a Market? 8 What Is Exchange? 9 What Is a Product? 11

Major Marketing Activities and Decisions 14 Strategic Planning 14

Beyond the Pages 1.2 Innovative Marketing Strategies for a Tough Economy 15 Research and Analysis 16 Developing Competitive Advantage 16 Marketing Strategy Decisions 17

Beyond the Pages 1.3 Targeting Consumers via Online Social Networking 18

Social Responsibility and Ethics 20 Implementation and Control 20 Developing and Maintaining Customer Relationships 21

Taking On the Challenges of Marketing Strategy 22

Lessons from Chapter 1 24

Questions for Discussion 25

Exercises 25

CHA P T E R 2

Strategic Marketing Planning 27

Introduction 27

Beyond the Pages 2.1 Redbox’s Success Story 28

The Strategic Planning Process 29 Organizational Mission versus Organizational Vision 30 Corporate or Business-Unit Strategy 34 Functional Goals and Objectives 35 Functional Strategy 35 Implementation 36 Evaluation and Control 36

The Marketing Plan 36 Marketing Plan Structure 37

Beyond the Pages 2.2 Sell Below Cost, They Will Come 41

Using the Marketing Plan Structure 42

i x

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Purposes and Significance of the Marketing Plan 44 Organizational Aspects of the Marketing Plan 44

Maintaining Customer Focus and Balance in Strategic Planning 45 Customer-Focused Planning 46

Beyond the Pages 2.3 Amazon Is on Fire 47

Balanced Strategic Planning 48

Lessons from Chapter 2 50

Questions for Discussion 51

Exercises 51

PART 2 Discovering Market Opportunities

CHA P T E R 3

Collecting and Analyzing Marketing Information 53

Introduction 53

Beyond the Pages 3.1 Baby Boomers Deserve Careful Analysis 54

Conducting a Situation Analysis 55 Analysis Alone Is Not a Solution 55 Data Is Not the Same as Information 56 The Benefits of Analysis Must Outweigh the Costs 56 Conducting a Situation Analysis Is a Challenging Exercise 56

The Internal Environment 58 Review of Current Objectives, Strategy, and Performance 59 Availability of Resources 59 Organizational Culture and Structure 60

The Customer Environment 60 Who Are Our Current and Potential Customers? 62 What Do Customers Do with Our Products? 62 Where Do Customers Purchase Our Products? 63 When Do Customers Purchase Our Products? 63

Beyond the Pages 3.2 The Ongoing Challenge of E-Waste 64

Why (and How) Do Customers Select Our Products? 65 Why Do Potential Customers Not Purchase Our Products? 65

The External Environment 66 Competition 66 Economic Growth and Stability 70 Political Trends 71 Legal and Regulatory Issues 71 Technological Advancements 72 Sociocultural Trends 73

Collecting Marketing Data and Information 76 Secondary Information Sources 76

Beyond the Pages 3.3 A Corporate Affairs Primer 77

Primary Data Collection 80 Overcoming Problems in Data Collection 81

Lessons from Chapter 3 82

Questions for Discussion 82

Exercises 83

x Contents

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CHA P T E R 4

Developing Competitive Advantage and Strategic Focus 85

Introduction 85

Beyond the Pages 4.1 Innovation: A Major Key to Success 86

Making SWOT Analysis Productive 87 Stay Focused 88 Search Extensively for Competitors 89 Collaborate with Other Functional Areas 89 Examine Issues from the Customers’ Perspective 90 Look for Causes, Not Characteristics 92 Separate Internal Issues from External Issues 92

SWOT-Driven Strategic Planning 93 Strengths and Weaknesses 93 Opportunities and Threats 95 The SWOT Matrix 96

Developing and Leveraging Competitive Advantages 98

Establishing a Strategic Focus 100

Beyond the Pages 4.2 Successful Product Leadership at 3M 101

Developing Marketing Goals and Objectives 105

Beyond the Pages 4.3 A Closer Look at Blue Ocean Strategy 106

Developing Marketing Goals 107 Developing Marketing Objectives 108 Moving Beyond Goals and Objectives 111

Lessons from Chapter 4 111

Questions for Discussion 112

Exercises 112

PART 3 Developing Marketing Strategy

CHA P T E R 5

Customers, Segmentation, and Target Marketing 115

Introduction 115

Beyond the Pages 5.1 Data Mining Allows Companies to Know Our Secrets 116

Buyer Behavior in Consumer Markets 117 The Consumer Buying Process 117 Factors That Affect the Consumer Buying Process 123

Buyer Behavior in Business Markets 125 Unique Characteristics of Business Markets 126 The Business Buying Process 128

Market Segmentation 129 Traditional Market Segmentation Approaches 129

Beyond the Pages 5.2 The Challenges and Opportunities of Population Diversity 130 Individualized Segmentation Approaches 132 Criteria for Successful Segmentation 134

Beyond the Pages 5.3 Shifting Strategies in the Cereal Market 135

Identifying Market Segments 135 Segmenting Consumer Markets 136 Segmenting Business Markets 141

Contents xi

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Target Marketing Strategies 142

Lessons from Chapter 5 143

Questions for Discussion 146

Exercises 146

CHA P T E R 6

The Marketing Program 149

Introduction 149

Beyond the Pages 6.1 Can Good Marketing Save Barnes & Noble? 150

Product Strategy 151 Strategic Issues in the Product Portfolio 151 The Challenges of Service Products 154 Developing New Products 156

Pricing Strategy 158 Key Issues in Pricing Strategy 159

Beyond the Pages 6.2 Pricing Around the World 160

Pricing Service Products 165 Base Pricing Strategies 166 Adjusting the Base Price 167

Supply Chain Strategy 169 Strategic Supply Chain Issues 170 Trends in Supply Chain Strategy 175

Beyond the Pages 6.3 Walmart’s Supply Chain Advantages 176

Integrated Marketing Communications 179

Beyond the Pages 6.4 Fragmentation Forever Changes Media Advertising 180

Strategic Issues in Integrated Marketing Communications 181 Advertising 182 Public Relations 184 Personal Selling and Sales Management 186 Sales Promotion 188

Lessons from Chapter 6 192

Questions for Discussion 195

Exercises 195

CHA P T E R 7

Branding and Positioning 199

Introduction 199

Beyond the Pages 7.1 Steinway: More Than a Piano 200

Strategic Issues in Branding 202 Basic Branding Decisions 204 Strategic Brand Alliances 206 Brand Value 206 Packaging and Labeling 209

Beyond the Pages 7.2 Tropicana’s Packaging Debacle 210

Differentiation and Positioning 210 Bases for Differentiation 212 Positioning Strategies 214

xii Contents

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Mananging Brands over Time 215 Development Stage 217 Introduction Stage 218 Growth Stage 219 Maturity Stage 220

Beyond the Pages 7.3 Nintendo’s Rebranding Strategy 222

Decline Stage 223

Lessons from Chapter 7 224

Questions for Discussion 225

Exercises 225

PART 4 Putting Strategy into Action

CHA P T E R 8

Ethics and Social Responsibility in Marketing Strategy 227

Introduction 227

Beyond the Pages 8.1 Salesforce.com Adopts a Stakeholder Orientation 228

Ethics and Social Responsibility in Marketing Strategy 229 Dimensions of Social Responsibility 229 Sustainability 232 Marketing Ethics and Strategy 233

Beyond the Pages 8.2 Finding the Real Green Products 234

The Challenges of Being Ethical and Socially Responsible 236

Ethical Issues in the Marketing Program 237 Product-Related Ethical Issues 238 Pricing-Related Ethical Issues 239 Supply Chain-Related Ethical Issues 240 Promotion-Related Ethical Issues 241

Managing and Controlling Ethical Issues 242 Regulating Marketing Ethics 242 Codes of Conduct 243

Beyond the Pages 8.3 The Consumer Financial Protection Bureau Aims to Build Trust in the Banking System 244

Ethical Leadership 245

Relationship to Marketing and Financial Performance 246 Stakeholder Orientation 247 Marketing Financial Performance 247

Incorporating Ethics and Social Responsibility into Strategic Planning 249

Lessons from Chapter 8 250

Questions for Discussion 251

Exercises 251

CHA P T E R 9

Marketing Implementation and Control 255

Introduction 255

Beyond the Pages 9.1 Green Mountain Coffee Gets It Done 256

Strategic Issues in Marketing Implementation 257 The Link Between Planning and Implementation 257 The Elements of Marketing Implementation 259

Contents xiii

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Approaches to Marketing Implementation 263 Implementation by Command 263 Implementation Through Change 263

Beyond the Pages 9.2 The New Rules of CEO Leadership 264

Implementation Through Consensus 265 Implementation as Organizational Culture 266

Internal Marketing and Marketing Implementation 268 The Internal Marketing Approach 268 The Internal Marketing Process 269

Evaluating and Controlling Marketing Activities 270 Formal Marketing Controls 271 Informal Marketing Controls 275 Scheduling Marketing Activities 276

Beyond the Pages 9.3 Managing Risk Through Culture 277

Lessons from Chapter 9 279

Questions for Discussion 280

Exercises 280

CHA P T E R 1 0

Developing and Maintaining Long-Term Customer Relationships 283

Introduction 283

Beyond the Pages 10.1 1-800-Flowers.com Focuses on Customers 284

Managing Customer Relationships 284 Developing Relationships in Consumer Markets 286 Developing Relationships in Business Markets 288

Quality and Value: The Keys to Developing Customer Relationships 290 Understanding the Role of Quality 290 Delivering Superior Quality 293

Beyond the Pages 10.2 Customer Service versus Efficiency 294

Understanding the Role of Value 295 Competing on Value 298

Customer Satisfaction: The Key to Customer Retention 299 Understanding Customer Expectations 299

Beyond the Pages 10.3 Satisfied, But Not Loyal 302

Satisfaction versus Quality versus Value 303 Customer Satisfaction and Customer Retention 304 Customer Satisfaction Measurement 306

Lessons from Chapter 10 308

Questions for Discussion 310

Exercises 310

PART 5 Cases

CASE 1 USA Today: Innovation in an Evolving Industry 313

CASE 2 Apple’s Winning Marketing Strategy 327

CASE 3 Monsanto Balances the Interests of Multiple Stakeholders 339

xiv Contents

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CASE 4 New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing 351

CASE 5 New Belgium Brewing (B): Developing a Brand Personality 361

CASE 6 Mattel Confronts Its Marketing Challenges 371

CASE 7 Mistine: Direct Selling in the Thai Cosmetics Market 381

CASE 8 BP Struggles to Repair Its Tarnished Reputation 393

CASE 9 Chevrolet: 100 Years of Product Innovation 405

CASE 10 Wyndham Worldwide Adopts a Stakeholder Orientation Marketing Strategy 419

CASE 11 NASCAR: Can’t Keep a Good Brand Down 429

CASE 12 IndyCar: Seeking a Return to Motorsports’ Fast Lane 441

CASE 13 Zappos: Delivering Happiness 451

CASE 14 Sigma Marketing: Strategic Marketing Adaptation 461

CASE 15 Netflix Fights to Stay Ahead of a Rapidly Changing Market 471

CASE 16 Gillette: Why Innovation May Not Be Enough 481

CASE 17 IKEA Slowly Expands Its U.S. Market Presence 493

CASE 18 Sushilicious: Standing Out In A Crowded Field 501

CASE 19 Trouble Brews at Starbucks 517

CASE 20 Groupon 533

Appendix Marketing Plan Worksheets 547

Brands and Companies Index 557 Name Index 571 Subject Index 575

Contents xv

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Preface

Welcome to one of the most interesting, challenging, and important topics in your busi- ness education. What makes marketing strategy so interesting, challenging, and impor- tant you ask? To begin, marketing strategy is interesting because (1) it is inherently people-driven and (2) it is never stagnant. A distinct blend of both art and science, mar- keting strategy is about people (inside an organization) finding ways to deliver excep- tional value by fulfilling the needs and wants of other people (customers, shareholders, business partners, society at large), as well as the needs of the organization itself. Market- ing strategy draws from psychology, sociology, and economics to better understand the basic needs and motivations of these people—whether they are the organization’s custo- mers (typically considered the most critical), its employees, or its stakeholders. In short, marketing strategy is about people serving people.

For this reason, marketing strategy is interesting because it is never stagnant. The simple fact is that people change. A strategy that works today might not work tomorrow. Products that are popular today are forgotten next week. These truisms are important because truly understanding marketing strategy means accepting the fact that there are few concrete rules for developing and implementing marketing activities. Given the con- stant state of change in the marketing environment, it is virtually impossible to say that given “this customer need” and “these competitors” and “this level of government regu- lation” that Product A, Price B, Promotion C, and Distribution D will produce the best results. Marketing simply doesn’t work that way. The lack of concrete rules and the ever changing economic, sociocultural, competitive, technological, and political/legal land- scapes make marketing strategy a terribly fascinating subject.

Now that you know why marketing strategy is so interesting, it should be easy to see why it is also challenging. A perfect marketing strategy that is executed flawlessly can still fail. Sometimes, organizations are lucky and have success despite having a terrible strategy and/or execution. The nature of marketing can make marketing planning quite frustrating.

Finally, the importance of marketing strategy is undeniable. No other business func- tion focuses on developing relationships with customers—the lifeblood of all organiza- tions (even non-profits). This statement does not diminish the importance of other business functions, as they all are necessary for an organization to be successful. In fact, coordination with other functions is critical to marketing success. However, without cus- tomers, and marketing programs in place to cultivate customer relationships, no organi- zation can survive.

Our Focus Given this marketing landscape, Marketing Strategy: Text and Cases, 6th Edition provides a practical, straightforward approach to analyzing, planning, and implementing market- ing strategies. Our focus is based on the creative process involved in applying the knowl- edge and concepts of marketing to the development and implementation of marketing strategy. Our goal is to encourage students of marketing to think and act like a marketer. By discussing the key concepts and tools of marketing strategy, our emphasis on critical thinking, both analytical and creative, allows students to understand the essence of how marketing decisions fit together to create a coherent strategy.

xv i i

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Our approach in Marketing Strategy: Text and Cases, 6th Edition is also grounded in the development and execution of the marketing plan. Throughout the text, we provide a comprehensive planning framework based on conducting sound background research, developing market capabilities and competitive advantages, designing integrated market- ing programs, and managing customer relationships for the long term. We also empha- size the need for integrity in the strategic planning process, as well as the design of marketing programs that are both ethical and socially responsible. We also stress the in- tegration and coordination of marketing decisions with other functional business deci- sions as the key to achieving an organization’s overall mission and vision. Throughout the text, we offer examples of successful planning and implementation to illustrate how firms face the challenges of marketing strategy in today’s economy.

Purpose We view strategic marketing planning not only as a process for achieving organizational goals, but also as a means of building long-term relationships with customers. Creating a customer orientation takes imagination, vision, and courage, especially in today’s rapidly changing economic and technological environments. To help meet these challenges, our text approaches marketing strategy from both “traditional” and “cutting-edge” practices. We cover topics such as segmentation, creating a competitive advantage, marketing pro- gram development, and the implementation process with a solid grounding in traditional marketing, but also with an eye toward emerging practices. Lessons learned from the rise, fall, and reemergence of the dotcom sector, recent corporate scandals, and the most recent economic recession illustrate the importance of balancing the traditional and emerging practices of marketing strategy. Our text never loses sight of this balance.

Although our approach allows for the use of sophisticated research and decision- making processes, we have employed a practical perspective that permits marketing man- agers in any size organization to develop and implement a marketing plan. We have avoided esoteric, abstract, and highly academic material that does not relate to typical marketing strategy decisions in most organizations. The marketing plan framework that we utilize throughout the text has been used by a number of organizations to successfully plan their marketing strategies. Many companies report great success in using our approach partially due to the ease of communicating the plan to all functional areas of the business.

Target Audience Our text is relevant for a number of educational environments, including undergraduate, graduate, and corporate training courses. At the undergraduate level, our text is appro- priate for the capstone course or any upper-level integrating course such as “Marketing Management,” “Marketing Strategy,” or “Marketing Policy.” At this level, the text pro- vides an excellent framework to use with our included text-based cases, live-client cases, or a computer simulation. At the graduate level, our text is appropriate for courses ad- dressing strategic marketing planning, competitive marketing strategies, or as a supple- ment for any simulation-based course. A growing segment of the market, corporate training, can utilize our text when educating business professionals interested in develop- ing marketing plans of their own, or interpreting and implementing the plans of others.

Each of the twenty cases included in our text describes the strategic situations of real-world, identifiable organizations. Because these cases feature real situations, instruc- tors have the option of using the case material as published, or they may give students the opportunity to update the cases by conducting research to find the latest informa- tion. Many additional resources for students and instructors can be found at our text’s companion website, www.cengagebrain.com.

xviii Preface

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Key Features of the 6th Edition The key features of Marketing Strategy: Text and Cases, 6th Edition include:

• Revised and expanded coverage throughout the text of recent events in marketing practice by well-known global companies.

• A focus on the integration of the traditional marketing mix elements (product, price, distribution, and promotion) into a consistent marketing program. Consequently, the four separate marketing mix chapters have been condensed into a single chapter.

• A new chapter on Branding and Positioning (Chapter 7) that adds increased empha- sis on using every element of the marketing program to achieve branding and posi- tioning success.

• Five new cases written specifically for our text:

• Case 2, “Apple’s Winning Marketing Strategy,” focuses on Apple’s phenomenal rise to prominence through the use of masterful marketing, an entrepreneurial spirit, and “cool” branding.

• Case 9, “Chevrolet: 100 Years of Product Innovation,” looks at Chevrolet’s use of product innovation and branding to create practical, sporty, and affordable auto- motive products that compete with strong domestic and foreign manufacturers.

• Case 10, “Wyndham Worldwide Adopts a Stakeholder Orientation Marketing Strategy,” examines how Wyndham’s focus on stakeholder orientation has posi- tioned the company as a global brand that is synonymous with quality, ethical leadership, customer satisfaction, and sustainability.

• Case 13, “Zappos: Delivering Happiness,” explores the company’s unique busi- ness model and corporate culture, and how they influence its relationships with customers, employees, the environment, and its communities.

• Case 15, “Netflix Fights to Stay Ahead of a Rapidly Changing Market,” looks at how the dominant rent-by-mail and video streaming company bested its chief rival, Blockbuster, and how the company must prepare for an uncertain future as the DVD rental sector approaches the end of its life cycle.

• A complete revision of the twelve cases that have been carried over from the 5th edition of our text:

• Case 1, “USA Today: Innovation in an Evolving Industry,” explores how the na- tion’s largest daily newspaper has used continuous innovation to stay ahead of the technological and sociocultural shifts that threaten the very existence of the news- paper industry.

• Case 3, “Monsanto Balances the Interests of Multiple Stakeholders,” focuses on Monsanto’s shift from a chemical company to one focused on biotechnology, and the resulting stakeholder concerns about safety and the environment that come with such a change.

• Case 4, “New Belgium Brewing (A): Gaining Competitive Advantage Through Socially Responsible Marketing,” shows how a firm can use social responsibility and customer intimacy as key competitive advantages in the highly competitive craft beer market.

• Case 5, “New Belgium Brewing (B): Developing a Brand Personality,” explains how New Belgium expanded its branding and communication strategy after the development of its “Brand Manifesto.”

• Case 6, “Mattel Confronts Its Marketing Challenges,” looks at the threats that Mattel faces in its ongoing global operations, including changing customer pre- ferences, competition, product liability, and declining sales.

Preface xix

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• Case 7, “Mistine: Direct Selling in the Thai Cosmetics Market,” explores how Mistine’s value-based positioning moved the company to the top of the direct selling cosmetics market in Thailand.

• Case 8, “BP Struggles to Repair Its Tarnished Reputation” considers how BP’s growing reputation for sustainability was tarnished by the Gulf oil spill disaster.

• Case 11, “NASCAR: Can’t Keep a Good Brand Down,” looks at NASCAR’s marketing and branding successes and its newfound struggles to remain on top of the motorsports market and the #1 spectator sport in the U.S.

• Case 12, “IndyCar: Seeking a Return to Motorsports’ Fast Lane,” is an excellent companion to the NASCAR case. The case examines the reunification of U.S. open wheel racing and how the new IRL must reconnect with fans to improve its standing in the U.S. motorsports market.

• Case 14, “Sigma Marketing: Strategic Marketing Adaptation,” explores the in- novation and market adaptation of this small, family-owned business as it grew from a regional printing company to a global specialty advertising firm.

• Case 16, “Gillette: Why Innovation May Not Be Enough,” examines Gillette’s history of product and marketing innovation, and how past success may not be enough to maintain supremacy in the global razor market.

• Case 17, “IKEA Slowly Expands Its U.S. Market Presence,” discusses how IKEA’s strategy of operational excellence may stand in the way of further expansion into the U.S. furniture and home furnishings market.

• The inclusion of three new outside cases from the Ivey School of Business at the University of Western Ontario:

• Case 18, “Sushilicious: Standing Out in a Crowded Field,” examines the use of social media in the marketing campaign for a California sushi restaurant.

• Case 19, “Trouble Brews at Starbucks,” looks at how the company’s rapid expansion actually worked against its long-term brand positioning and equity.

• Case 20, “Groupon,” explores the rapid growth of the online coupon company, its business model, and whether its future growth could depend on finding a business partner to bring needed resources and capabilities to the table.

• Our complete case package provides up-to-date coverage of topics that are important and relevant to marketing practice in the 21st century. These topics include innova- tion, social responsibility, sustainability, global sourcing, technology, corporate affairs, and entrepreneurship.

• An updated set of Marketing Plan Worksheets, provided in the Appendix. The work- sheets reflect a concise approach to marketing plan development. However, the work- sheets are comprehensive in scope to help ensure that students and/or managers do not omit important issues in developing strategic marketing plans.

• A continued user-friendly writing style that covers essential points without heavy use of jargon. The text has also been reduced from 12 chapters to 10 chapters without a loss in coverage.

Instructor Resources The Instructor Resource materials for the 6th edition have been updated to match the new organization of the text. These materials are available via an Instructor’s Resource CD-ROM or online at the password-protected instructor’s resource website.

xx Preface

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These materials include:

• A revised PowerPoint® package, which incorporates lecture outlines and summary of key points, as well as select figures and tables from the text.

• An updated Instructor’s Manual, which includes the following:

• Chapter lecture outlines—These outlines for each chapter may be used to quickly review chapter content before class or to gain an overview of the entire text. The outlines can also be used by instructors to add their own personal notes and examples before class.

• Case teaching notes—Our teaching notes use a consistent format to help in- structors evaluate cases before use, or to assist instructors in leading case analy- sis and class discussion. Although there are many different approaches to using cases, our notes will help instructors identify key issues and alternatives as they relate to the content of the case and corresponding text chapters.

• An updated Test Bank. These examination materials include a variety of multiple choice, true/false, and discussion questions. The Test Bank questions vary in levels of difficulty, and meet a full range of tagging requirements, so that instructors can tailor their testing to meet their specific needs.

The updated instructor’s resource website supports the text and cases. In addition to the instructor resources already mentioned, instructors will find lecture outlines, case teaching notes, and sample syllabi for use in their classes.

Student Resources Our primary student resource is contained within the text. The Appendix includes a de- tailed set of marketing plan worksheets that assist students in developing marketing plans. The remaining student resources can be found online at our website:

• A downloadable Microsoft Word version of the Marketing Plan Worksheets found in the Appendix. The worksheets are designed so students can fill-in material and edit the worksheets outside of class.

• Example marketing plans to help illustrate the format and writing style used in cre- ating an actual marketing plan document.

• A downloadable Microsoft Word version of the Lessons from each chapter. This doc- ument provides a complete outline of each chapter so that students may add to and edit the lessons outside of class. Alternatively, the file can be used during class as a way to organize note taking.

• Online exercises for each chapter. These exercises allow students to practice the con- cepts learned in class.

• Online quizzes for each chapter. These quizzes help students prepare for course exams. • A tutorial on how to perform a case analysis. The tutorial provides a suggested way to

conduct cases analyses. Instructors may use this tutorial or provide one of their own.

Acknowledgements Throughout the development of this text, several extraordinary individuals provided their talent and expertise to make important contributions. A number of individuals have made many useful comments and recommendations as reviewers of this text. We appreciate the generous help of these reviewers:

Lynn Allendorf, University of Iowa

Dr. Fazal Ahmed, University of Pennsylvania

Preface xxi

Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

Julia Cronin-Gilmore, Bellevue University

A. Cemal Ekin, Providence College

Steven McClung, Mercer University

Joseph Ouellette, Bryant University

Jeffry Overby, Belmont University

Norman Alan Ross, Northern Arizona University

Kim Saxton, Indiana University

Herbert Sherman, Long Island University—Brooklyn Campus

George David Shows, Louisiana Tech University

Ziad Swaidan, University of Houston—Victoria

Uday Tate, Marshall University

Linda Wright, Longwood University

We also deeply appreciate the assistance of several individuals who played a major role in developing cases or other materials. Specifically, we thank the following individuals:

Timothy W. Aurand, Northern Illinois University

Harper Baird, University of New Mexico

Chandani Bhasin, University of New Mexico

Christin Copeland, Florida State University

Linda Ferrell, University of New Mexico

John Fraedrich, Southern Illinois University - Carbondale

Bernadette Gallegos, University of New Mexico

Jennifer Jackson, University of New Mexico

Kimberly Judson, Illinois State University

Cassondra Lopez, University of New Mexico

Kevin Mihaly, Florida State University

Kelsey Reddick, Florida State University

Don Roy, Middle Tennessee State University

Mike Sapit, Sigma Marketing

Jennifer Sawayda, University of New Mexico

Beau Shelton, University of New Mexico

Bryan Simpson, New Belgium Brewing Company

Debbie Thorne, Texas State University

Jacqueline Trent, University of New Mexico

Robyn Watson, Florida State University

Celeste Wood, Florida State University

xxii Preface

Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

We greatly appreciate the efforts of Jennifer Sawayda, University of New Mexico, for coordinating much of the new case development in this edition. The editorial, produc- tion, and marketing staff at Cengage cannot be thanked enough. With a deep since of appreciation, we thank Mike Roche and Sarah Blasco.

Finally, we express appreciation for the support and encouragement of our families, friends, and our colleagues at The University of New Mexico and The Florida State University.

Preface xxiii

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Copyright 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

About the Authors

O.C. Ferrell, Ph.D.

The University of New Mexico

O.C. Ferrell (Ph.D., Louisiana State University) is University Distinguished Professor of Marketing and Bill Daniels Professor of Business Ethics at the Anderson School of Management at the University of New Mexico. He served as the Bill Daniels Distinguished Professor of Business Ethics at the University of Wyoming and was Chair of the Marketing Department at Colorado State University. Prior to his arrival at CSU, Dr. Ferrell was the Distinguished Professor of Marketing and Business Ethics at the University of Memphis. He has also served as a professor at the University of Tampa, Texas A&M University, Illi- nois State University, and Southern Illinois University. His MBA and BA degrees are from Florida State University.

Dr. Ferrell is past president of the Academic Council of the American Market- ing Association and former chair of the American Marketing Association Ethics Committee. Under his leadership, the committee developed the AMA Code of Ethics and the AMA Code of Ethics for Marketing on the Internet. He is a Society for Marketing Advances Fellow and the Vice President of Publications for the Academy of Marketing Science. He is a former member of the Board of Governors as a Distinguished Fellow for the Academy of Marketing Science. In addition, he received the first Innovative Educator award from the Marketing Management Association.

Dr. Ferrell has taught a wide variety of courses, including marketing strategy, principles of marketing, marketing ethics, international marketing, as well as most undergraduate courses in marketing. Annually, Dr. Ferrell teaches a graduate course in competitive marketing strategies at Thammasat University in Bangkok, Thailand.

Dr. Ferrell is the co-author of 20 books and more than 100 articles. His research is published in the Journal of Marketing Research, the Journal of Marketing, the Journal of Business Ethics, the Journal of Business Research, the Journal of the Academy of Market- ing Science, as well as other journals. His Marketing: Concepts and Strategies text, co-authored with Bill Pride, is one of the most widely adopted principles of marketing texts in the world. Furthermore, his Business Ethics: Decision Making and Cases text is the leading business ethics text.

Dr. Ferrell has served as an expert witness in many high-profile civil litigation cases related to marketing ethics. More recently he has assisted international corporations and worked with state regulatory agencies in modifying marketing programs to maintain compliance with both ethical and legal requirements. Currently, he is working with the National Association of State Boards of Accountancy to develop an ethical leadership certification for students. He has appeared on the NBC Today show and he has been quoted in national papers such as USA Today.

Dr. Ferrell and his wife Linda (also a faculty member at the University of New Mexico) live in Albuquerque. He enjoys golf, skiing, reading, and travel.

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Michael D. Hartline, Ph.D.

The Florida State University

Michael D. Hartline (Ph.D., The University of Memphis) is Associate Dean for Strategic Initiatives and Charles A. Bruning Professor of Business Administration in the College of Business at Florida State University, where he is responsible for external relations, exec- utive education, and strategic programs. Prior to joining the FSU faculty in 2001, Dr. Hartline was on faculty at the University of Arkansas at Little Rock, Louisiana State University, and Samford University. His MBA and B.S. degrees are from Jacksonville State University in Alabama.