P R I N C P L E S O F Markrting

8/10/2019 P R I N C P L E S O F Markrting

1/6

P R I N C P L E S

O F

Vlarketinq

Global Edition

PHILIP KOTLER

Northwestern University

GARY ARMSTRONG

University of North Carolina

Up per Saddle River Boston Co lum bus San Francisco N ew York

Indianapolis London Toronto Sydney Singapore Tokyo Montreal

Dubai M adrid Ho ng Kong Mexico City Munich Paris A msterdam Cape Town


2/6

\ r ; ^ ^

rH

Contents

Marketing: Creating and Capturing

Customer Value 26

I What

Is

Marketing? 28

.i Marketing Defined 29 | The Marketing Process29

Understanding the M arketplace and Customer

Needs30

Customer Needs, Wants, and Dem ands 30 j Market Offerings

Produ cts, Services, and Experiences

30 |

Custom er Value and

Satisfaction 31 | Exchanges and Relationships 31 | Markets31

DesigningaCustomer-Driven Marketing Strategy 32

Selecting Customers to Serve 32 j Choosing a Value

Proposition 33 | Marketing Management Orientations33

PreparinganIntegrated Marketing Plan and

Program36

Building Customer Relationships

36

Customer R elationship M anagement 37 | The Changing

NatureofCustomer Relationships 40 | Partner Relationship

Management 43 /

Capturing Value from Customers45

Creating Customer Loyalty and Retention 45 Growing Share

of Customer 46 | Building Custom er Equity47

The Chang ing M arketing Landscape49

The Digital Age 49 | Rapid Glob alization 50 j The Callfor

More EthicsandSocial R esponsibility 51 j The Growthof

Not-for-Prof it Marketin g 52 " '

So,What

is

Marketing? Pulling It

All

Together 53

Reviewing O bjectives and Key Terms 54 | Key Terms 56 |

Discussing

ApplyingtheConcepts 56 | Focuson

Technology 56 | FocusonEthics 57 | Marketing bythe

Numbers57

V i d e o C a s e

Harley-Davidson

57

C o m p a n y C a s e

Build-A-Bear: Build-A-Memory58

Marketing Strategy a nd the M arketing

Mix 72

Customer-Driven M arketing Strategy 72 j Developingan

Integrated Marketing Mix76

Ma naging the Marketing Effort77

Marketing Analysis

77

j Marketing Planning 78 | Marketing

Implementation

79

j Marketing Department Organization80

Marketing Control81

Measuring and Managing Return on Marketing

Investment81

Reviewing ObjectivesandKey Terms 83 | Key Terms 84 |

Discussing


Technology 85 | FocusonEthics 85 | Marketingby the

Numbers85

V i d e o C a s e Live Nation- 86


Bahrain Bay: Building Custom er R elationsfor

the Future86

0 3

Chapter

3

Analyzing the Marketing

Environment 88

The Com pany s Microenvironment90

The Company 91 | Suppliers 91 | Marketing

Intermediaries 91 | Competitors 92 j Publics 93

Customers

93

The Com pany s Macroenvironment94

Demographic Environment 94 | Economic Environm ent103

Natural Environment 105 j Technological Environment 106 |

Political and Social Environment 108 | Cultural Environment111

Respondingtothe Marke ting Environment115

Reviewing Objectives

and

Key Terms

117 |

Key Terms

118 |

Discussing


Technology 119 | FocusonEthics 119 | Marketingby the

Numbers119

V i d e o C a s e

TOMS Shoes119


Prius: Leading a WaveofHybrids120

Chapter

2

Company and Marketing Strategy:

Partnering to Build Customer

Relationships 60

Com panywide Strategic Planning: Defining

Marketing s Role

62

Defining a Market-Oriented Mission 63 | Setting Com pany

Objectives and Goals 64 j Designing the Business Portfolio 65

Planning Marketing: Partnering

to

Build Customer

Relationships70

Partnering with Other Company Departments70

with Othersinthe Marketing System71

Partnering

Chapter4

Managing Marketing Information

to Gain Customer Insights 122

Marketing Information and Customer Insights 123

Assessing Marketing Information Needs126

Developing Marketing Information

126

Internal Data 126 j Marketing Intelligence127

Marketing Research 129

Defining the Problem an d Research Objectives

129 [

Developin

the Research Plan 130 | Gathering Secondary Data 131 ;

Primary Data Collection 133 j Implementing the Research

Plan 143 j Interpreting and Reporting the Findings143


3/6

12 Contents

Chapter 5

Analyzing and Using Marketing Information 144

Customer Relationship Management (CRM) 144 | Distributing

and Using Marketing Information

146

Other Marketing Information Considerations 146

Mark eting Research in Small Businesses and Nonprofit

Organizations 146 j International Marketing Research148

Public Policy and Ethics in Marketing Research

149

Reviewing Objectives and Key Terms

153 |

Key Terms

154

Discussing

Applying the Concepts

154 |

Focus

on

Technology

154 |

Focus on Ethics

155 |

Marketing by the

Numbers

155

Video Case

ZIBA 155


Enterprise Rent-A-Car: Measuring Service

Quality

156

Consumer Markets and Consumer

Buyer Behavior158

Model of Consumer Behavior 160

Characteristics Affecting Consumer Behavior 161

Cultural Factors

161 |

Social Factors

164

Personal

Factors

170 |

Psychological Factors

172

Types of Buying Decision Behavior 176

Complex Buying Behavior

176 |

Dissonance-Reducing Buying

Behavior

176 |

Habitual Buying Behavior

176 |

Variety-Seeking Buying Behavior177

The Buyer Decision Process 177

Need Recognition 178 | information Search 178 j Evaluation

of Alternatives

178 |

Purchase Decision

179 |

Postpurchase

Behavior

179

The Buyer Decision Process for New Products 181

Stagesinthe Ado ption P rocess 182 j Individual Differences

in Innovativeness

182 j

Influence

of

Product Characteristics

on RateofAdoption 183 | Reviewing Objectives and Key

Terms

183 |

Key Terms

184 |

Discussing

Applying

the

Concepts

185 |

Focus on Technology

185 |

Focus

on

Ethics

186 |

Marketing by the Num bers

186

V i d e o C a s e

Wild Planet

186


Arabic Blackberry: A dapting

to the

Language

of

the Market

187

Chapter 6

Business Markets and Business

Buyer Behavior 190

Business Markets192

Market Structure and Demand 193 j Natureofthe Buying

Unit

194 |

Types

of

Decisions and the Decision Process

194

Business Buyer Behavior 196

Major Types

of

Buying Situations

197 j

Participants

in

the

Business Buying Process 198 | Major Influences on Business

Buyers

199 |

The Business Buying Process

200 |

E-Procurem ent: Buying on the Internet

204

Institutional and Government Markets 205

Institutional Markets

205 |

Government Markets

206 j

Review ing O bjectives and Key Terms

208 |

Key Terms

209 |

Discussing


209 |

Focus

on

Technology

210 |

Focus on Ethics

210 |

Marketing by

the

Numbers210

Video Case Eaton 211


Boeing: Selling a D ream(liner)

211

Chapter 7

Customer-Driven Marketing

Strategy: Creating Value

for Target Customers214

Market Segmentation 216

Segmenting Consum er M arkets

216 |

Segmenting Business

Markets

222 j

Segmenting International Markets

223 |

RequirementsforEffective Segmentation224

Market Targeting 225

Evaluating Market Segments

225 ;

Selecting Target Market

Segments 225 j Socially Responsible Target Marketing232

Differentiation and Positioning 233

Positioning Maps

233 |

Cho osing a Differentiation

and

Positioning Strategy

234 j

Communicating and Delivering

the Chosen Position

241 |

Reviewing Objectives and Key

Terms 241 | Key Terms 242 | Discussing Applyingthe

Concepts

242 |

Focus on Technology

243 |

Focus

on

Ethics

243 |

Marketing

by

the Nu mbers

243 |

V i d e o C a s e

Meredith

244


Sport England: Segm enting the British Sports

Market244

Chapter 8

Products, Services, and Brands:

Building Customer Value246

What Is a Product? 248

Produ cts, Services, and Experiences 248 | LevelsofProduct

and Services

249 |

Produ ct and Service Classifications

250

Product and Service Decisions 253

Individual Product and Service Decisions

253 |

Produ ct Line

Decisions

258 |

Produ ct Mix Decisions

258

Branding Strategy: Building Strong Brands 259

Brand Equity

260 j

Building Strong Brands

262 |

Managing

Brands268

Services Marketing 268

Nature and Characteristicsofa Service 268 j Marketing

Strategies

for

Service F irms

270

Reviewing Objectives and

Key Terms 275 | Key Terms 276 | Discussing Applying

the Concepts

276 |

Focus on Technology

277 |

Focus

on

Ethics 277 | Marketing by the Num bers 277

V i d e o C a s e

Swiss Army Brands

278

C o m p a n y C a s e Britvic: CreatingaBrand Flavor278

New-Product Development and

Produc t Life-Cycle Strategies280

New-Product Development Strategy 282

The New-Product Development Process 283

Idea Generation

283 |

Idea Screening

286 |

Concept

Development and Testing

286 j

Marketing Strategy

Chapter 9

Development

287 |

Business Analysis

288

Development 288 j Test Marketing289

Commercialization

292

Product


4/6

Contents 1

Managing New-Product Development292

Customer-Centered New-Product Development293

Team-Based New-Product Development 293 j Systematic

New-Product Development295

Product Life-Cycle Strategies 296

Introduction Stage 300 ; Growth Stage 300 | Maturity

Stage 301 | Decline Stage302

Additional Product and Service Considerations 304

Product Decisions and Social Responsibility

304 |

International

Product and Services Marketing 304 | Reviewing Objectives

and Key Terms 306 | Key Terms 307 | Discussing &

Applying the Concepts 307 | FocusonTechnology 308

FocusonEthics 308 | Marketing by the Num bers 308

V i d e o C a s e Electrolux309


Nintendo: Reviving a C ompany, Transforming

a Market309

hapter

10

Pricing: Understanding and

Capturing Customer Value 312

What Is

a

Price?

314

FactorstoConsider When Setting Prices 315

Customer Perceptions

of

Value

315 ;

Company

and

Product

Costs 319 | Other InternalandExternal Considerations

Affecting Price Decisions 323 j Reviewing Objectivesand

Key Terms 330 | Key Terms 331 | Discussing

Applying

the Concepts 331 | FocusonTechnology 331 | Focuson

Ethics 331 | Marketingby theNumbers332

V i d e o C a s e IKEA332


easyjet: S taying Aheadinthe Pricing

Game 332

hapter

12

Marketing Channels: Delivering

Customer Value 360

Supply Chains an d the Value Delivery Network

361

The Nature and Impo rtanceofM arketing

Channels363

How Channel Members Add Value 363 j NumberofChannel

Levels365

Channel Behavior and Organization

366

Channel Behavior 366 | Vertical Mark eting Systems367 |

Horizontal M arketing Systems

369 |

Multichannel Distributio

Systems 370 I Changing Channel Organization371

Cha nnel Design Decisions372

Analyzing Consumer Needs

373 |

Setting Channe l Objectives

374 | Identifying Major Alternatives 374 | Evaluating the

Major Alternatives 375 | Designing International Distribution

Channels376

Channel Management Decisions376

Selecting Channel Members 376 | Managing and Motivating

Channel Members 377 [ Evaluating Channel Members378

Public Policy a nd Distribution Decisions379

Marketing Logistics and Supply Chain

Management

380

Nature and ImportanceofMarketing Logistics 380 j Goals of

the Logistics System 381 | Major Logistics Functions 382 |

Integrated Logistics Management385

and Key Terms387

Reviewing Objective

Discussingey Terms 388

Applying the Concepts 388 | FocusonTechnology 389 |

Focus

on

Ethics

389 [


389

V i d e o C a s e

Progressive

390


Zara: The Technology Giantofthe Fashion

World390

hapter11

Pric ing Strategies

334

New-Product Pricing Strategies336

Market-Skimming Pricing 336 j Market-Penetration

Pricing337

ProductMixPricing Strategies 337

Produ ct Line Pricing 337 | Optional-Product Pricing338 j

Captive-Product Pricing 338 | By-Product Pricing 339

Product Bundle Pricing339

Price-Adjustment Strategies339

Discount and A llowance Pricing 339 | Segmented Pricing340

Psychological Pricing 341 | Promotional Pricing344 |

Geographical Pricing 344 jDynamic Pricing346 |

International Pricing

347

Price Chan ges324

Initiating Price Changes 348 | Responding to Price

Changes350

Public PolicyandPricing 351

Pricing Within Channel Levels 352 j Pricing Across Channel

Levels

354 |


and

Key Terms

355 |

Key Terms 355 | Discussing

Applying the C oncepts 356 |

Focus on T echnology 356 | Focus on Ethics 356 | Marketing

by the Numbers357

V i d e o C a s e General Electric357


Payless ShoeSource: Paying Lessfor

Fashion

357

hapter

13

Retailing and Wholesaling 392

Retailing 394

Types

of

Retailers

394 j

Retailer Marketing Decisions

402 |

The FutureofRetailing408

Wholesaling 413

TypesofWholesalers 414 \ Wholesaler Marketing

Decisions 414 j TrendsinWholesaling 417 | Reviewing

ObjectivesandKey Terms 419 | Key Terms 419 |

Discussing Applying the Concepts 420 | Focuson

Technology 420 | Focus on Ethics 420 | Marketing bythe

Numbers 421

V i d e o C a s e

Wellbeing421


Whole Foods:

A

Whole-istic Strategy

421

hapter

14

Communicating Customer Value:

Integrated Marketing

Communications Strategy 424

The Promotion

Mix 426

Integrated Marketing Communications

427

The New Marketing Comm unications Landscape 427 ] The

Shifting Marketing Communications Model 428 | The Needf

ntegr ted

Marketing Communications

429

A Viewofthe Com m unicat io n Process 431


5/6

14 Contents

Steps in Developing Effective Marketing

Communication 433

Identifying the Target Audien ce 433 j Determining the

Communication Objectives

433 ]

Designing a Message

434 |

Choosing Media

436 |

Selecting the Message Source

438

Collecting Feedback438

Setting the Total Promotion Budget and Mix 439

Setting the Total Prom otion Budget

439 |

Shaping the Overall

Promotion Mix

440 j

Integrating the Promotion Mix

444

Socially Responsible Marketing

Communication 445

Advertising and Sales Promotion 445 ;Personal Selling446

Reviewing Objectives and Key Terms

446 |

Key Terms

447 |

Discussing


447 |

Focus

on

Technology

448 |

Focus on Ethics

448 |

Marketing by

the

Numbers 448

V i d e o C a s e

Crispin Porter

+

Bogusky

449

C o m p a n y C a s e Burger King: Promo ting a Food Fight449

Chapter 15

Advertising and Public

Relations452

Advertising 454

Setting A dvertising Objectives

455

Budget

456 |

Developing Adv ertising Strategy

457

Evaluating Advertising Effectiveness and Return on Advertising

Setting the Advertising

Investment

467

Other A dvertising C onsiderations468

Public Relations 472

The Role and Im pactofPublic R elations 472 | Major Public

Relations Tools

474 |


Terms

475 |

Key Terms

476 |

Discussing

Applying

the

Concepts 476 | Focus on Technology 477 | Focus on

Ethics

477 |


477

Video Case ETRADE 478

Company Case Coca-Cola: Another Advertising Hit 478

Chapter 16

Personal Selling and Sales

Promotion480

Personal Selling 482

The NatureofPersonal Selling 482 | The Roleofthe Sales

Force

483

Managing the Sales Force 485

Designing Sales Force Strategy and Structure 485 j Recruiting

and Selecting Salespeople 490 | Training Salespeo ple 491 j

Compensating Salespeople

492 j

Supervising and Motivating

Salespeople

493 |

Evaluating Salespeople and Sales Force

Performance

495

The Personal Selling Process 496

Steps in the Selling Process

496 j

Personal Selling and

Managing Customer Relationships

499

Sales Promotion 499

Rapid Growth

of

Sales Prom otion 501

|

Sales Promotion

Objectives

502 |

Major Sales Prom otion Tools

503 I

Developing the Sales Promotion Program

506 j

Reviewing

Objectives and Key Terms 507 | Key Terms 508

Chapter 17

Discussing


508 |

Focus

on

Technology 508 | Focus on Ethics 509 | Marketing by the

Numbers 509

V i d e o C a s e

The Principal Financial Group

509


Procter Gamble: Selling Through Customer

Business Development

510

Direct and On line Marketing:

Building Direct Customer

Relationships512

The New Direct Marketing Model 514

Growth and Benefits of Direct Marketing 515

Benefits to Buyers

516 |

Benefits to Sellers

516

Customer Databases and Direct Marketing 517

Forms of Direct Marketing 519

Direct-Mail M arketing

519 ]

Catalog Marketing

520

Telephone Marketing

521 i

Direct-Response Television

Marketing

523 j

Kiosk Marketing

525 |

New Digital Direct

Mark eting Technologies

525

Online Marketing 528

Marketing and the Internet

528- j

Online Marketing

Domains 529 | Setting Up an Online Marketing Presence532 |

The Promise and Challenges

of

Online Marketing

540

Public Policy Issues in Direct Marketing 541

Irritation, Unfairness, Deception, and Fraud 541 | Invasio n of

Privacy

542 jA

Need for Action

543 j


and Key Terms

544 |

Key Terms

545 |

Discussing

Applying

the Concepts 545 | Focus on Technology 545 | Focuson

Ethics

546 |


546

Video Case

Google 546

C o m p a n y C a s e Viagogo: Online Ticket Reselling Wars Beginin

Europe

547

Chapter 18

Creating Competitive

Advantage550

Com petitor Analysis552

Identifying Competitors

552 |

Assessing Com petitors

554

Selecting Competitors to Attack and Avoid

555 |

Designing a

Competitive Intelligence System558

Competitive Strategies 558

Approaches to Marketing Strategy

558 j

Basic Competitive

Strategies

560 |

Com petitive Positions

561 |

Market Leader

Strategies 563 | Market Challenger Strategies 566 | Market

Follower Strategies 567 | Mark et Nicher Strategies567

Balancing Customer and Competitor

Orientations 570

Reviewing Objectives and Key Terms 571 | Key Terms571

Discussing


571 |

Focus on

Technology

572 |

Focus on Ethics

572 |

Marketing by

the

Numbers

572

V i d e o C a s e

Umpqua Bank

573


Bose: Com peting by Being Truly Different 573


6/6

Chapter 19

The Global Ma rketplace 57 6

Global M arketing Today 578

Looking at the Global Marketing Environment 580

The Interna tional Trade System 580 j E conomic

Enviro nmen t 582 ; Political-Legal Enviro nme nt 583 j

Cultural Environment 584

Dec iding Whether to Go Global 587

Deciding Which Markets to Enter 588

Deciding How to Enter the Market 590

Exporting 590 j Joint Venturing 590 j Direct Investm ent 592

Dec iding on the Glo bal Marketing Program 592

Product 593 | Promotion 595 j Price 596 | Distribution

Channels 598

Deciding on the Globa l Marketing

Organization 599

Review ing Objectives and Key Terms 600 | Key Terms 601 |

Discussing

Applying the Concepts 601 | Focus on

Technology 602 | Focus on Ethics 602 | Ma rketing by the

Numbers 602

V i d e o C a s e Nivea 603

C o m p a n y C a s e Nokia: Envisioning a Connected World 603

Chapter 20

Sustainable M arketing: Social

Responsibility and Ethics 606

Sustainable Marketing 608

Contents 15

Social Criticisms of M arketing 610

Ma rketing's Impact on Individual Consum ers 610

Mark eting's Impact on Society as a Whole 615 | Mark eting's

Impact on Other Businesses 618

Consumer Actions to Promote Sustainable

Marketing 619

Consum erism 619 | Environmentalism 620 Public Actions

to Regulate Marketing 623

Business Actions

Toward

Sustainable Marketing 626

Sustainable Marketing Principles 626 | Marketing Ethics 629 j

The Sustainable Company 632

Terms 633 Key Terms 634


Discussing

Applying the

Conce pts 634 | Focus on Technology 634 | Focus on

Ethics 635 | M arketing by the Num bers 635

V i d e o C a s e Land Rover 635

C o m p a n y C a s e ExxonMobil: Social Responsibility in a

Commodity Market 636

Appendix

1:

Marketing Plan Al

Appendix 2: Marketing by the Numbers A l

Appendix

3:

Careers in Marketing A29

References Rl

Glossary Gl

Credits Cl

Index II

P R I N C P L E S O F Markrting

Documents

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