Marketing Principles

587 Pages·2012·19.21 MB·English

Marketing Principles
v. 2.0
This is the bookMarketing Principles(v. 2.0).
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Table of Contents
About the Authors................................................................................................................. 1
Acknowledgments................................................................................................................. 3
Preface..................................................................................................................................... 5
Chapter 1: What Is Marketing?.......................................................................................... 7
Defining Marketing........................................................................................................................................8
Who Does Marketing?..................................................................................................................................17
Why Study Marketing?................................................................................................................................21
Themes and Organization of This Book.....................................................................................................26
Discussion Questions and Activities...........................................................................................................33
Chapter 2: Strategic Planning.......................................................................................... 36
The Value Proposition.................................................................................................................................37
Components of the Strategic Planning Process........................................................................................40
Developing Organizational Objectives and Formulating Strategies.......................................................52
Where Strategic Planning Occurs within Firms.......................................................................................58
Strategic Portfolio Planning Approaches..................................................................................................62
Discussion Questions and Activities...........................................................................................................67
Chapter 3: Consumer Behavior: How People Make Buying Decisions..................... 69
Factors That Influence Consumers’ Buying Behavior..............................................................................72
Low-Involvement Versus High-Involvement Buying Decisions and the Consumer’s Decision-Making
Process..........................................................................................................................................................95
Discussion Questions and Activities.........................................................................................................105
Chapter 4: Business Buying Behavior........................................................................... 107
The Characteristics of Business-to-Business (B2B) Markets.................................................................108
Types of B2B Buyers...................................................................................................................................113
Buying Centers...........................................................................................................................................120
Stages in the B2B Buying Process and B2B Buying Situations..............................................................126
International B2B Markets and E-commerce..........................................................................................133
Ethics in B2B Markets................................................................................................................................140
Discussion Questions and Activities.........................................................................................................144
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Chapter 5: Market Segmenting, Targeting, and Positioning................................... 147
Targeted Marketing versus Mass Marketing..........................................................................................148
How Markets Are Segmented...................................................................................................................156
Selecting Target Markets and Target-Market Strategies......................................................................177
Positioning and Repositioning Offerings.................................................................................................184
Discussion Questions and Activities.........................................................................................................188
Chapter 6: Creating Offerings ........................................................................................ 190
What Composes an Offering?....................................................................................................................191
Types of Consumer Offerings....................................................................................................................202
Types of Business-to-Business (B2B) Offerings.......................................................................................207
Branding, Labeling, and Packaging..........................................................................................................212
Managing the Offering..............................................................................................................................218
Discussion Questions and Activities.........................................................................................................221
Chapter 7: Developing and Managing Offerings ........................................................ 223
The New Offering Development Process.................................................................................................225
Managing New Products: The Product Life Cycle...................................................................................235
Discussion Questions and Activities.........................................................................................................249
Chapter 8: Using Marketing Channels to Create Value for Customers................. 252
Marketing Channels and Channel Partners............................................................................................253
Typical Marketing Channels.....................................................................................................................263
Functions Performed by Channel Partners.............................................................................................274
Marketing Channel Strategies..................................................................................................................279
Channel Dynamics......................................................................................................................................285
Discussion Questions and Activities.........................................................................................................293
Chapter 9: Using Supply Chains to Create Value for Customers ............................ 295
Sourcing and Procurement.......................................................................................................................298
Demand Planning and Inventory Control...............................................................................................306
Warehousing and Transportation............................................................................................................315
Track and Trace Systems and Reverse Logistics.....................................................................................323
Discussion Questions and Activities.........................................................................................................327
Chapter 10: Gathering and Using Information: Marketing Research and Market
Intelligence......................................................................................................................... 328
Marketing Information Systems..............................................................................................................331
Steps in the Marketing Research Process................................................................................................344
Discussion Questions and Activities.........................................................................................................372
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Chapter 11: Integrated Marketing Communications and the Changing Media
Landscape........................................................................................................................... 376
Integrated Marketing Communications (IMC)........................................................................................377
The Promotion (Communication) Mix.....................................................................................................383
Factors Influencing the Promotion Mix, Communication Process, and Message Problems..............387
Advertising and Direct Marketing...........................................................................................................393
Message Strategies.....................................................................................................................................397
The Promotion Budget..............................................................................................................................404
Sales Promotions........................................................................................................................................407
Discussion Questions and Activities.........................................................................................................416
Chapter 12: Public Relations, Social Media, and Sponsorships.............................. 418
Public Relations Activities and Tools.......................................................................................................420
Social Media................................................................................................................................................429
Discussion Questions and Activities.........................................................................................................432
Chapter 13: Professional Selling.................................................................................... 433
The Role Professional Salespeople Play...................................................................................................434
Customer Relationships and Selling Strategies......................................................................................444
Sales Metrics (Measures)...........................................................................................................................453
Ethics in Sales and Sales Management....................................................................................................461
Integrating Sales and Marketing..............................................................................................................467
Outsourcing the Sales Function................................................................................................................475
Discussion Questions and Activities.........................................................................................................479
Chapter 14: Customer Satisfaction, Loyalty, and Empowerment........................... 482
Customer Communities.............................................................................................................................483
Loyalty Management.................................................................................................................................491
Customer Satisfaction................................................................................................................................501
Ethics, Laws, and Customer Empowerment............................................................................................510
Discussion Questions and Activities.........................................................................................................518
Chapter 15: Price, the Only Revenue Generator......................................................... 521
The Pricing Framework and a Firm’s Pricing Objectives.......................................................................522
Factors That Affect Pricing Decisions......................................................................................................527
Pricing Strategies.......................................................................................................................................534
Discussion Questions and Activities.........................................................................................................544
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Chapter 16: The Marketing Plan.................................................................................... 545
Marketing Planning Roles.........................................................................................................................547
Functions of the Marketing Plan..............................................................................................................549
Forecasting.................................................................................................................................................564
Ongoing Marketing Planning and Evaluation.........................................................................................574
Discussion Questions and Activities.........................................................................................................581
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About the Authors
Jeff Tanner
John F. (Jeff) Tanner, Jr., is professor of marketing at the
Hankamer School of Business, Baylor University. He is
an internationally recognized expert in sales and sales
management. He is the author or coauthor of twelve
books, including two best-selling textbooks with
McGraw-Hill—Selling: Building PartnershipsandBusiness
Marketing: Connecting Strategy, Relationships and Learning.
His books have been translated into several languages
and distributed in over thirty countries.
Dr. Tanner spent eight years in marketing and sales
Source: Photo by Lilly Tanner,
with Rockwell International and Xerox Corporation. In
used with permission.
1988, he earned his PhD from the University of Georgia
and joined the faculty at Baylor University, where he
currently serves as the research director of the Center
for Professional Selling.
In addition to writing and research, Dr. Tanner maintains an active consulting and
training practice. Recent clients include IBM, Hillcrest Medical System, and others.
He is the managing partner of Team Fulcrum, which conducts sales training and
marketing research, and he is a founder and research director of BPT Partners, the
premier training and education company focused on advancing the skills and
competency of professionals in the customer relationship management industry.
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About the Authors
Mary Anne Raymond
Mary Anne Raymond is a professor and chair of
marketing at Clemson University. Prior to joining the
faculty at Clemson, she served on the faculty at
American University in Washington, DC, and helped
coordinate the graduate marketing program at Johns
Hopkins University. Previously, she was an invited
Fulbright Professor of Marketing at Seoul National
University in Seoul, Korea.
Dr. Raymond received her PhD from the University of
Georgia. She has extensive industry experience doing
strategic planning and acquisition analysis, marketing
research, and investment analysis for Holiday Inns, Inc.; Freeport Sulphur; and
Howard, Weil, Labouisse, Friedrichs. Dr. Raymond also does consulting, seminars,
and marketing training for multinational companies, which have included
organizations such as Merit Communications in Seoul, Korea; the Conference Center
and Inn at Clemson University; and Sangyong Group.
Her research focuses on strategy in domestic and international markets, public
policy issues, and social marketing. Dr. Raymond has published over one hundred
papers appearing in journals such asInternational Marketing Review, theJournal of
Advertising Research, theJournal of Marketing Education, theJournal of Personal Selling
and Sales Management, and theJournal of Public Policy and Marketing, as well as
numerous other journals and international conference proceedings. Dr. Raymond
has also received numerous awards and recognition for her teaching and research.
She received the Professor of the Year Award from Clemson University Panhellenic
Association, the Undergraduate Teaching Excellence Award from the College of
Business and Behavioral Science at Clemson three times, the Eli Lilly Faculty
Excellence Awards for Outstanding Research and Outstanding Teaching, and the Eli
Lilly Partnership Awards, and recognition for Leadership in Student Development
from the Dow Chemical Company.
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Acknowledgments
The authors would like to thank the following reviewers for their feedback, which
helped shape the second edition:
• Stephen M. Berry, Anne Arundel Community College
• Bob Conrad, Ph.D., APR, Conrad Communications, LLC.
• Ted Lapekas, SUNY/Empire State College
• Donald G. Purdy, University at Albany
• Elizabeth F. Purinton, Marist College
• Kelly Sell, Bucks County Community College
• Richard L. Sharman, Lone Star College-Montgomery
• Gary Tucker, Northwestern Oklahoma State University
• Gregory R. Wood, Canisius College
• Anne Zahradnik, Marist College
The authors would like to thank Camille Schuster for her input, examples, and
feedback on the first edition chapters. The authors would also like to thank the
following colleagues who have reviewed the first edition text and provided
comprehensive feedback and suggestions for improving the material:
• Christie Amaot, University of North Carolina, Charlotte
• Andrew Baker, Georgia State University
• Jennifer Barr, The Richard Stockton College of New Jersey
• George Bernard, Seminole Community College
• Patrick Bishop, Ferris State University
• Donna Crane, Northern Kentucky University
• Lawrence Duke, Drexel University
• Mary Ann Edwards, College of Mount St. Joseph
• Paulette Faggiano, Southern New Hampshire University
• Bob Farris, Mt. San Antonio College
• Leisa Flynn, Florida State University
• Renee Foster, Delta State University
• Alfredo Gomez, Broward College
• Jianwei Hou, Minnesota State University, Mankato
• Craig Kelley, California State University, Sacramento
• Marilyn Liebrenz-Himes, George Washington University
• Alicia Lupinacci, Tarrant County College
• John Miller, Pima Community College, Downtown
• Melissa Moore, Mississippi State University
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Acknowledgments
• Kathy Rathbone, Tri-County Community College
• Michelle Reiss, Spalding University
• Tom Schmidt, Simpson College
• Richard Sharman, Lonestar College
• Karen Stewart, The Richard Stockton College of New Jersey
• Victoria Szerko, Dominican College
• Robert Winsor, Loyola Marymount University
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