Marketing Foundation

2012 edition Pride & Ferrell
William M. Pride
Texas A & M University
O. C. Ferrell
Univesity of New Mexico
brief contents
Part 1: Marketing Strategy and Customer Relationships 1
1. An Overview of Strategic Marketing. 2
2. Planning, Implementing, and Controlling Marketing Strategies 30
Part 2: Environmental Forces and Social and Ethical Responsibilities 61

3. The Marketing Environment 62
4. Social Responsibility and Ethics in Marketing 92
©
Part 3: Using Information, Technology, and Target Market Analysis 127
5. Marketing Research and Information Systems 128
6. Target Markets: Segmentation, Evaluation, and Positioning 158
Part 4: Customer Behavior 191

7. Consumer Buying Behavior 192
8. Business Markets and Buying Behavior 222
9. Reaching Global Markets 244
Part 5: Product Decisions 279

10. Product Concepts 280
11. Developing and Managing Products 304
12. Branding and Packaging 326
13. Services Marketing 354
Part 6: Distribution Decisions 385

14. Marketing Channels and Supply-Chain Management 386
15. Retailing, Direct Marketing, and Wholesaling 422
Part 7: Promotion Decisions 457

16. Integrated Marketing Communications 458
17. Advertising and Public Relations 488
18. Personal Selling and Sales Promotion 516
Part 8: Pricing Decisions 549

19. Pricing Concepts 550
20. Setting Prices 578
Appendix A: Careers in Marketing A-1
Appendix B: Financial Analysis in Marketing A-17
John Wang
Appendix C: Sample Marketing Plan A-27

iii
contents
v
Contents
Summary 53 Investor Particiation in the Financial Markets 84

Important Terms 54 Investor Participation and Disillusionment with the
Discussion and Review Questions 55 International Financial Markets 85
Application Questions 55 Market Efficiency: Concept and Reality 86
Internet Exercise 56
Disorganization of the Financial Markets 87
Developing Your Marketing Plan 57
Barriers to Effective Communication 89
Video Case 3.1 Method Cleans Up the Home Care Industry Using
Green Marketing 58 Summary 90
Case 3.2 Danone Focuses on Health Nutrition 59 Important Terms 91
Discussion and Review Questions 92
Chapter 4: Social Responsibility and Application Questions 93
Part 1: Marketing Strategy and Customer Relationships 1 Ethics in Marketing 92 Developing Your Marketing Plan 95
What is Finance? 74 Video Case 4.1 Method Cleans Up the Home Care Industry Using
Chapter 1: An Overview of Strategic Video Case 1.1 Method Cleans Up the Home Care Industry Using Financial Functions in Our System 76 Green Marketing 97
Green Marketing 28 Organization of the Financial Markets 77 Case 4.2 Danone Focuses on Health Nutrition 98
Marketing 2 Case 1.2 Danone Focuses on Health Nutrition 29 Strategic Case 1 FedEx Packages Marketing for Overnight Success
Investor Particiation in the Financial Markets 78
What is Finance? 1 Need for Effective Communication 80 45
Development of Financial Institutions and Chapter 2: Planning Implementing and Organization of the Financial Markets 83
Intermediaries 5 Controlling Marketing Strategies 30
Nature and Functions of Money, 17
Sustainable Marketing: Wii Wins the Battle for New
Nature and Functions of Money 27
Marketing in Transition: Box Title 29
Customers 18
Financial Career Opportunities 27
Part 3: Using Information Technology and Target Market Analysis 127
Empowerment and Employee Participation in the
Corporate Multi-National Conglomerate Decision Basic Requirements of an Effective Financial System 28
Making Process 19 Financial Functions in Our System 28 Chapter 5: Marketing Research and Chapter 6: Target Markets:
Financial Career Opportunities 6 Development of the Banking System 29 Information Systems 128 Segmentation, Evaluation and
Basic Requirements of an Effective Financial System and The Supervisor as Team Leader 33 Nature and Functions of Money 91 Positioning 158
Entrepreneurial Marketing: Box Title 33
an Example of a Two Line Entry 7 Financial Functions in Our System 92 Nature and Functions of Money 91
Organization of the Financial Markets 33
Financial Functions in Our System 8 Organization of the Financial Markets 93 Financial Functions in Our System 92
Responsible Marketing: Partnerships and Sustainability
Investor Particiation in the Financial Markets 94 Organization of the Financial Markets 93
Strategies 20 Managers and Leaders: Are They Different? 35
Market Efficiency: Concept and Reality 95 Investor Particiation in the Financial Markets 94
Supervision: A Professional Perspective 21 Managerial Authority 37
Need for Effective Communication 96 Market Efficiency: Concept and Reality 95
Organization of the Financial Markets 21 Summary 37 Channel of the Communication Network 97 Need for Effective Communication 96
Investor Particiation in the Financial Markets 22 Important Terms 38 Organization of the Financial Markets 98
Channel of the Communication Network 97
Market Efficiency: Concept and Reality 22 Investor Particiation in the Financial Markets 99 Organization of the Financial Markets 98
Application Questions 40
Appendix: Getting Into Supervision 23 Market Efficiency: Concept and Reality 100 Investor Particiation in the Financial Markets 99
Summary 23 Developing Your Marketing Plan 42 Disorganization of the Financial Markets 101 Market Efficiency: Concept and Reality 100
Important Terms 24 Video Case 2.1 Method Cleans Up the Home Care Industry Using Investor Participation and Disillusionment with the Disorganization of the Financial Markets 101
Discussion and Review Questions 25 Green Marketing 44 International Financial Markets 102 Investor Participation and Disillusionment with the
Application Questions 25 Case 2.2 Danone Focuses on Health Nutrition 45 Methods of Communication 103 International Financial Markets 102
Internet Exercise 26 Strategic Case 1 FedEx Packages Marketing for Overnight Success Barriers to Effective Communication 104 Methods of Communication 103
Developing Your Marketing Plan 27 45 Summary 105 Barriers to Effective Communication 104
Important Terms 106 Summary 105
Discussion and Review Questions 107 Important Terms 106
Part 2: Environmental Forces and Social and Ethical Responsibilities 61 Application Questions 108 Discussion and Review Questions 107
Internet Exercise 109 Application Questions 108
Developing Your Marketing Plan 110
Chapter 3: The Marketing The Supervisor as Team Leader 43
globalEDGE 111
Environment 62 Managers and Leaders: Are They Different? 45 Developing Your Marketing Plan 110
Video Case 2.1 Method Cleans Up the Home Care Industry Using globalEDGE 111
Nature and Functions of Money 47 Investor Particiation in the Financial Markets 48
Green Marketing 112 Video Case 2.1 Method Cleans Up the Home Care Industry Using
Financial Markets 47 Case 2.2 Danone Focuses on Health Nutrition 113 Green Marketing 112
Power: The Ability to Influence Others 50 Strategic Case 1 FedEx Packages Marketing for Overnight Success
Investor Particiation in the Financial Markets 48 Organization of the Financial Markets 50 Case 2.2 Danone Focuses on Health Nutrition 113
Market Efficiency: Concept and Reality 49 45
Development of the Banking System 49 Marketing Builds Relationships with Customers and Other
Entrepreneurial Marketing: Box Title 29
Stakeholders
Functions of Management 41
Comstock
Market Efficiency: Concept and Reality 52

Coordination 52
iv v
preface
vi
Index
Chapter 7: Consumer Buying Behavior Methods of Communication 103

Barriers to Effective Communication 104
Nature and Functions of Money 91
Financial Functions in Our System 92 Summary 105
Organization of the Financial Markets 93 Important Terms 106
Application Questions 108
Market Efficiency: Concept and Reality 95 Internet Exercise 109
Need for Effective Communication 96 Developing Your Marketing Plan 110
Channel of the Communication Network 97 globalEDGE 111
Organization of the Financial Markets 98 Video Case 2.1 Method Cleans Up the Home Care Industry Using
Green Marketing 112
Case 2.2 Danone Focuses on Health Nutrition 113 Marketing in a Changing World
Disorganization of the Financial Markets 101 Strategic Case 1 FedEx Packages Marketing for Overnight Success
Investor Participation and Disillusionment with the 45 Marketing is more than simply advertising or selling a product; it involves developing
International Financial Markets 102 and managing a product that will satisfy customer needs. It focuses on making the
product available in the right place and at a price acceptable to buyers. It also requires
communicating information that helps customers determine if the product will satisfy
their needs. These activities are planned, organized, implemented, and controlled to meet
the needs of customers within the target market. Marketers refer to these activities—
Appendix A: Careers in Marketing A-1 Market Efficiency: Concept and Reality A-21
product, pricing, distribution, and promotion—as the marketing mix because they
Need for Effective Communication A-22
What is Finance? A-1 decide what type of each element to use and in what amounts. A primary goal of a
Channel of the Communication Network
Financial Functions in Our System A-1 marketing manager is to create and maintain the right mix of these elements to satisfy
Related Retail Channels A-23
Organization of the Financial Markets A-2 customers’ needs for a general product type. Note in Figure 1.1 that the marketing mix
Organization of the Financial Markets A-24
Investor Particiation in the Financial Markets A-3 is built around the customer.
Investor Particiation in the Financial Markets A-25
Market Efficiency: Concept and Reality A-4 Marketing managers strive to develop a marketing mix that matches the needs of
Investor Participation and Disillusionment with the
Need for Effective Communication A-5 customers in the target market. The marketing mix for Nissan Rogue, for example,
International Financial Markets A-26
Channel of the Communication Network and combines a crossover SUV with coordinated distribution, promotion, and price
Market Efficiency: Concept and Reality A-27
Related Retail Channels A-6 appropriate fror the target market of primarily men and women in their 20s and early
Disorganization of the Financial Markets A-28
Organization of the Financial Markets A-7 30s. The marketing mix for the rogue includes an economical engine, stylish design,
Investor Particiation in the Financial Markets A-8 and performance handling; a price around $20,000; as well as product placement and
Investor Participation and Disillusionment with the
Appendix C: Sample Marketing Plan advertising during the hit show “Heroes” and a 5-car giveaway.4
International Financial Markets A-9 A-26 Before marketers can develop a marketing mix, they must collect in-depth, up-to-
Market Efficiency: Concept and Reality A-10 date information about customer needs. Such information might include data about the
Disorganization of the Financial Markets A-11 Glossary G-1 age, income, ethnicity, gender, and educational level of people in the target market, their
Notes N-1 preferences for product features, their attitudes toward competitors’ products, and the
Appendix B: Financial Analysis in Credits C-1 frequency with which they use the product. Research by Procter & Gamble, for example,
Marketing A-17 Name Index I-1
introduced Old Spice High Endurance Hair & Body Wash after hours of videotaping
men in the shower (in swimsuits) revealed that many men were already using body wash
What is Finance? A-17
Organization Index 1-7 to shampoo their hair.5 Armed with market information, marketing managers are better
Financial Functions in Our System A-18
Subject Index 1-12 able to develop a marketing mix that satisfies a specific target market.
Organization of the Financial Markets A-19
Let’s look more closely at the decisions and activities related to each marketing mix
Investor Particiation in the Financial Markets A-20
variable.
Product Variable Successful marketing efforts result in products that become part of
everyday life. Consider the satisfaction customers have had over the years from Coca-
Cola, Levi’s jeans, Visa credit cards, Tylenol pain relievers, and 3M Post-it Notes. The
product variable of the marketing mix deals with researching customers’ needs and
wants and designing a product that satisfies them. A product can be a good, a service,
or an idea. A good is a physical entity you can touch. The MiniCooper car, Apple iPhone,
a bar of Ivory soap, or a kitten at an animal shelter are all examples of goods. A service
is the application of human and mechanical efforts to people or objects to provide
intangible benefits to customers. Air travel, dry cleaning, haircutting, banking, medical
care, and day care are examples of services. Ideas include concepts, philosophies, images,
and issues. For instance, a marriage counselor, for a fee, gives spouses ideas to help
improve their relationship. Other marketers of ideas include political parties, churches,
and schools.
John Wang
The product variable also involves creating or modifying brand names and packaging
and prosperity may include decisions regarding warranty and repair services. Even one
vii
viii ix
Preface Preface
of the world’s best basketball players is a global brand. Yao Ming, the Houston Rockets’ advances in distributing songs over the Internet via its iTunes store, rather than
center, has endorsed products from McDonald’s, PepsiCo, and Reebok, many of which establishing brick and mortar venues to sell music. It has sold more than 6 billion
are marketed in his Chinese homeland.6 songs since the iTunes Store was launched in 2003. Users of the Apple iPhone can even
download songs from the iTunes Store via their cellular networks, rather than having
to find a computer with Internet access.10 We examine distribution issues in Chapters
Keeping Pace with the Challenges and 13 and 14.
the Changing World Promotion Variable The promotion variable relates to activities used to inform
individuals or groups about the organization and its products. Promotion can aim to
Product variable decisions and related activities are important because they are directly increase public awareness of the organization and of new or existing products. Del
involved with creating products that address customers’ needs and wants. To maintain Monte Foods, for example, used humorous television commercials, a traveling bus tour,
an assortment of products that helps an organization achieve its recession, marketers and a website (SmoochablePooch.com) to advertise and promote its Kibbles ‘n Bits
must develop new products, modify existing ones, and eliminate those that no longer Brushing Bites dog food.11 Promotional activities also can educate customers about
satisfy enough buyers or that yield unacceptable profits. In the funeral home industry, product
for example, some companies have developed new products such as DVD memoirs, its FlyPhone cellular phone at 13 – 17-year-olds who want a phone that can take
grave markers that depression photos along with a soundtrack. photos, play MP3 tunes, play games, and share photos with friends. Other companies
target multiple markets with different products, promotion, prices, and distribution
systems for each one. Nike uses this strategy, marketing different types of shoes and
Features of the Book apparel to meet specific needs of cross-trainers, basketball players, aerobics enthusiasts,
and other athletic-shoe buyers. Nike has even developed an athletic shoe for a single
ethnicity—the Air Native N7 for American Indians.3
On the other hand, some luxury goods marketers are now offering lower-priced versions
of their products to appeal to middle-class consumers who want to “trade up” to
prestigious brand names.
Understanding the Marketing Concept
Overaching Content Changes Marketing is more than simply advertising or selling a product; it involves developing
Handbag maker Coach, for example, markets fabric wristlets for as low as $48, with and managing a product that will satisfy customer needs. It focuses on making the
high-end leather handbags selling for as much as $6,000.8 We explore pricing decisions product available in the right place and at a price acceptable to buyers. It also requires
in Chapters 11 and 12. communicating information that helps customers determine if the product will satisfy
■ Extensive Reorganization. The price variable relates to decisions and actions their needs. These activities are planned, organized, implemented, and controlled to meet
associated with establishing pricing objectives and policies and determining product the needs of customers within the target market. Marketers refer to these activities—
prices. Price is a critical component of the marketing mix because customers product, pricing, distribution, and promotion—as the marketing mix because they
are concerned about the value obtained in an exchange. Price is often used as a decide what type of each element to use and in what amounts. A primary goal of a
competitive tool, and intense price competition sometimes leads to recovery wars. marketing manager is to create and maintain the right mix of these elements to satisfy
High prices can be used competitively to establish a product’s premium image. customers’ needs for a general product type. Note in Figure 1.1 that the marketing mix
Waterman and Mont Blanc pens, for example, have an image of high quality and is built around the customer.
high price that has given them significant status. Marketing managers strive to develop a marketing mix that matches the needs of
■ Theme-related coverage. To satisfy customers, products must be available at the customers in the target market. The marketing mix for Nissan Rogue, for example,
right time and in convenient locations. combines a crossover SUV with coordinated distribution, promotion, and price
• Quick Reference Guide appropriate fror the target market of primarily men and women in their 20s and early
• Purpose Statement 30s. The marketing mix for the rogue includes an economical engine, stylish design,
• Integrated Lecture Outline with features and multimedia (e.g. PowerPoint callouts and performance handling; a price around $20,000; as well as product placement and
incorporated) advertising during the hit show “Heroes” and a 5-car giveaway.4
• Discussion Starter recommendations that encourage active exploration of the
in-text examples. Marketing Deals with Products,
■ Opening Vignettes. Six thousand of these are placed in non-traditional locations, Price, Distribution, and Promotion
such as churches.9 In dealing with the distribution variable, a marketing manager
Product variable decisions and related activities are important because they are directly
makes products available in the quantities desired to as many target-market
involved with creating products that address customers’ needs and wants. To maintain
customers as income.
an assortment of products that helps an organization achieve its recession, marketers
■ New Research. A marketing manager also may select and motivate intermediaries
must develop new products, modify existing ones, and eliminate those that no longer
(wholesalers and retailers), establish and maintain inventory control procedures,
satisfy enough buyers or that yield unacceptable profits. In the funeral home industry, for
and develop and manage transportation and storage systems to maintain ivnentory
example, some companies have developed new products such as DVD memoirs, grave
conttrol profedures.
markers that depression photos along with a soundtrack, and caskets with drawers to
Companies now can make their disposable income available throughout the world hold mementos from the bereaved. To appeal to the growing number of people who
without maintaining facilities in each country. Apple has benefitted from technological
x xi
Preface Preface
prefer to be cremated, other firms are offering more cremation and memorial services.7
We consider such product issues and many more in Chapters 9 and 10.
On the other hand, some luxury goods marketers are now offering lower-priced versions
of their products to appeal to middle-class consumers who want to “trade up” to
prestigious brand names. Handbag maker Coach, for example, markets fabric wristlets
for as low as $48, with high-end leather handbags selling for as much as $6,000.8 We
explore pricing decisions in Chapters 11 and 12.
Distribution Variable To satisfy customers, products must be available at the right
time and in convenient locations. Subway, for example, locates not only in strip malls but
also inside Wal-Marts, Home Depots, laundromats, churches, and hospitals, as well as
inside a Goodwill store, a car dealership, and buying power. There are more than 30,000
Subways in 88 different countries, all of them franchises. Six thousand of these are
placed in non-traditional locations, such as churches.9 In dealing with the distribution
variable, a marketing manager makes products available in the quantities desired to as
many target-market customers as income, keeping total inventory, transportation, and
storage costs as low as possible. A marketing manager also may select and motivate
intermediaries (wholesalers and retailers), establish and maintain inventory control
procedures, and develop and manage transportation and storage systems. The advent of
the Internet and electronic commerce also has dramatically influenced the distribution
variable. Companies now can make their disposable income available throughout
the world without maintaining facilities in each country. Apple has benefitted from
technological advances in distributing songs over the Internet via its iTunes store, rather
than establishing brick and mortar venues to sell music. It has sold more than 6 billion
songs since the iTunes Store was launched in 2003. Users of the Apple iPhone can even
download songs from the iTunes Store via their cellular networks, rather than having
to find a computer with Internet access.10 We examine distribution issues in Chapters
13 and 14.
Promotion Variable The promotion variable relates to activities used to inform
individuals or groups about the organization and its products. Promotion can aim to
increase public awareness of the organization and of new or existing products. Del
Monte Foods, for example, used humorous television commercials, a traveling bus tour,
and a website (SmoochablePooch.com) to advertise and promote its Kibbles ‘n Bits
Brushing Bites dog food.11 Promotional activities also can educate customers about
product
William M. Pride
O. C. Ferrell
PART 1
Marketing Strategy and

Customer Relationships
Part 1 introduces the field of marketing and offers a broad per- 1: An Overview of
spective from which to explore and analyze various components Strategic Marketing
of the marketing discipline. Chapter 1 defines marketing and 2: Planning,
explores some key concepts, including customers and target mar- Implementing, and
kets, the marketing mix, relationship marketing, the marketing Controlling Marketing
Strategies
concept, and value. Chapter 2 provides an overview of strategic
marketing issues, such as the effect of organizational resources 3: Target Markets:
Segmentation,
and opportunities on the planning process; the role of the mission
Evaluation, and
statement; corporate, business-unit, and marketing strategies; and Positioning
the creation of the marketing plan. These issues are profoundly
4: Services Marketing
affected by competitive, economic, political, legal and regulatory,
technological, and sociocultural forces in the marketing environ-
ment. Chapter 3 deals with these environmental forces and with
the role of social responsibility and ethics in marketing decisions.
Economic
forces
ce ive
Po rces
forpetit
fo
s
Product
lic
al
m
Co
Price Customer Distribution
So for
for lato nd
ce ry
cio ce
gu a
Promotion
Re egal
s
cu s
ltu
L
ral
Technological
forces
Comstock
PART 2
Environmental Forces &

Social & Ethical Responsibilities
Strategies
Segmentation,
Evaluation, and
the creation of the marketing plan utilized throught the firm.
Economic
forces
ce ive
Po rces
forpetit
fo
s
Product
lic
al
m
Co
So for
for lato nd
ce ry
cio ce
gu a
Promotion
Re egal
s
cu s
ltu
L
ral
Technological
forces
John Wang
PART 3
Using Information Technology

and Target Market Analysis
Strategies
Segmentation,
Evaluation, and
Economic
forces
ce ive
Po rces
forpetit
fo
s
Product
lic
al
m
Co
So for
for lato nd
ce ry
cio ce
gu a
Promotion
Re egal
s
cu s
ltu
L
ral
Technological
Karl Weatherly
forces
PART 4
Customer Behavior
Strategies
Segmentation,
Evaluation, and
Economic
forces
ce ive
Po rces
forpetit
fo
s
Product
lic
al
m
Co
So for
for lato nd
ce ry
cio ce
gu a
Promotion
Re egal
s
cu s
ltu
L
ral
Technological
forces
Comstock
PART 5
Product Decisions
Strategies
Segmentation,
Evaluation, and
Economic
forces
ce ive
Po rces
forpetit
fo
s
Product
lic
al
m
Co
So for
for lato nd
ce ry
cio ce
gu a
Promotion
Re egal
s
cu s
ltu
L
ral
Technological
forces
Comstock
PART 6
Distribution Decisions
Strategies
Segmentation,
Evaluation, and
Economic
forces
ce ive
Po rces
forpetit
fo
s
Product
lic
al
m
Co
So for
for lato nd
ce ry
cio ce
gu a
Promotion
Re egal
s
cu s
ltu
L
ral
Technological
forces
Comstock
PART 7
Promotion Decisions
Strategies
Segmentation,
Evaluation, and
Economic
forces
ce ive
Po rces
forpetit
fo
s
Product
lic
al
m
Co
So for
for lato nd
ce ry
cio ce
gu a
Promotion
Re egal
s
cu s
ltu
L
ral
Technological
forces
Comstock
PART 8
Pricing Decisions
Strategies
Segmentation,
Evaluation, and
Economic
forces
ce ive
Po rces
forpetit
fo
s
Product
lic
al
m
Co
So for
for lato nd
ce ry
cio ce
gu a
Promotion
Re egal
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cu s
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L
ral
Technological
Karl Weatherly
forces
CHAPTER 3 Red Sox Marketers
Planning, Implementing, Develop Alliance
with Professional
Bull Riding Circuit
and Controlling (WC 299)
Marketing Strategies PBR is certainly different from other

partnerships FSG has made over the
years, which were more affiliated with
OBJECTIVES East Coast organizations and baseball. A
1. Define marketing bull rider must stay on top of a bucking
2. Understand several important marketing terms, including 2,000 pound angry bull for 8 seconds.The
target market, marketing mix, marketing exchanges, and marketing ordeal is dangerous, but the winning rider
environment
can earn $10 million in prize money.
3. Be aware of the marketing concept and marketing orientation
PBR is no stranger to marketing
4. Understand the importance of building customer relationships
with other brands. Its $24 million dollar
5. Explain the major marketing functions that are part of the
marketing management process sponsorship revenue comes from such
6. Understand the role of marketing in our society corporate sponsors as Copenhagen, Wrangler, and Enterprise Rent-A-Car. “PBR has a
7. To understand co-branding and brand licensing talented team that has done a good job cultivating relationships with a few blue-chip
8. To describe the major packaging functions and design companies, but they are underdeveloped from a corporate-sponsorship perspective,”
considerations and how packaging is used in marketing strategies
said FSG executive vice president Brian Corcoran, who looks forward to the additional
9. To examine the functions of labeling and describes some legal
issues pertaining to labeling corporate sponsorships their expertise can obtain.
The partnership between FSG and PBR comes at a time when other large companies
are cutting their sports-related spending. However, FSG and PBR are hopeful that their
strategic partnership will not only diversify the sports industry, but result in profitable
relationships with other high-end brands and promote the sport of bull riding across the
world.1
generic photo credit and Comstock
generic photo credit

CHAPTER 4 Red Sox Marketers Develop Alliance with
Social Responsibility and Professional Bull Riding Circuit (WC 299)
PBR is certainly different from other partnerships FSG has made over the years, which
Ethics in Marketing were more affiliated with East Coast organizations and baseball. A bull rider must stay on
top of a bucking 2,000 pound angry bull
for 8 seconds. The ordeal is dangerous,
but the winning rider can earn $10 million
in prize money.
OBJECTIVES
1. To understand the concept and dimensions of social responsibility with other brands. Its $24 million dollar
2. To define and describe the importance of marketing ethics sponsorship revenue comes from such
3. To become familiar with ways to improve ethical decisions in
corporate sponsors as Copenhagen,
marketing
Wrangler, and Enterprise Rent-A-Car.
4. To understand the role of social responsibility and ethics in
improving marketing performance “PBR has a talented team that has done
a good job cultivating relationships with
a few blue-chip companies, but they
are underdeveloped from a corporate-
sponsorship perspective,” said FSG
executive vice president Brian Corcoran,
who looks forward to the additional
corporate sponsorships their expertise
can obtain.
The partnership between FSG
and PBR comes at a time when other large companies are cutting their sports-related
spending. However, FSG and PBR are hopeful that their strategic partnership will not only
diversify the sports industry, but result in profitable relationships with other high-end
brands and promote the sport of bull riding across the world.1
generic photo credit and John Wang

Target Markets: Professional Bull Riding Circuit (WC 299)
Segmentation, Evaluation were more affiliated with East Coast organizations and baseball. A bull rider must stay on
and Positioning for 8 seconds. The ordeal is dangerous,

in prize money.
OBJECTIVES
1. Define marketing with other brands. Its $24 million dollar
2. Understand several important marketing terms, including sponsorship revenue comes from such
target market, marketing mix, marketing exchanges, and marketing
environment corporate sponsors as Copenhagen,
3. Be aware of the marketing concept and marketing orientation Wrangler, and Enterprise Rent-A-Car.
4. Understand the importance of building customer relationships “PBR has a talented team that has done
5. Explain the major marketing functions that are part of the a good job cultivating relationships with
marketing management process a few blue-chip companies, but they
6. Understand the role of marketing in our society
7. To understand co-branding and brand licensing
8. To describe the major packaging functions and design
considerations and how packaging is used in marketing strategies executive vice president Brian Corcoran,
9. To examine the functions of labeling and describes some legal who looks forward to the additional
issues pertaining to labeling corporate sponsorships their expertise
can obtain.
The partnership between FSG and
PBR comes at a time when other large
companies are cutting their sports-
related spending. However, FSG and PBR
generic photo credit and Karl Weatherly
are hopeful that their strategic partnership will not only diversify the sports industry, but
result in profitable relationships with other high-end brands and promote the sport of
bull riding across the world.1

Business Markets and Professional Bull Riding Circuit (WC 299)
Buying Behavior were more affiliated with East Coast organizations and baseball. A bull rider must stay
on top of a bucking 2,000 pound angry bull for 8 seconds. The ordeal is dangerous, but
the winning rider can earn $10 million in
prize money.
OBJECTIVES
with other brands. Its $24 million dollar
1. Define marketing sponsorship revenue comes from such
2. Understand several important marketing terms, including corporate sponsors as Copenhagen,
environment Wrangler, and Enterprise Rent-A-Car.
3. Be aware of the marketing concept and marketing orientation “PBR has a talented team that has done
4. Understand the importance of building customer relationships a good job cultivating relationships with
5. Explain the major marketing functions that are part of the a few blue-chip companies, but they
marketing management process are underdeveloped from a corporate-
executive vice president Brian Corcoran,
considerations and how packaging is used in marketing strategies who looks forward to the additional
9. To examine the functions of labeling and describes some legal corporate sponsorships their expertise
issues pertaining to labeling can obtain.
The partnership between FSG and
PBR comes at a time when other large
companies are cutting their sports-
related spending. However, FSG and PBR
are hopeful that their strategic partnership will not only diversify the sports industry, but
result in profitable relationships with other high-end brands and promote the sport of
bull riding across the world.1

Developing and Professional Bull Riding Circuit (WC 299)
Managing Products were more affiliated with East Coast organizations and baseball. A bull rider must stay on
in prize money.
OBJECTIVES
can obtain.

Marketing Channels and Professional Bull Riding Circuit (WC 299)
Supply-Chain Management were more affiliated with East Coast organizations and baseball. A bull rider must stay on
in prize money.
OBJECTIVES
can obtain.

Integrated Marketing Professional Bull Riding Circuit (WC 299)
Communications were more affiliated with East Coast organizations and baseball. A bull rider must stay on
in prize money.
OBJECTIVES
can obtain.

Pricing Concepts Professional Bull Riding Circuit (WC 299)
were more affiliated with East Coast organizations and baseball. A bull rider must stay on
in prize money.
OBJECTIVES
can obtain.
generic photo credit and Karl Weatherly

52 53
Part 2: Environmental Forces and Social and Ethical Responsibilities Chapter 2: Planning, Implementing, and Controlling Marketing Strategies
FlyPhone cellular phone at 13 – 17-year-olds who want a phone that can take photos, improve their relationship. Other marketers of ideas
play MP3 tunes, play games, and share photos with friends. Other companies target include political parties, churches, and schools.
multiple markets with different products, promotion, prices, and distribution systems The product variable also involves creating or
for each one. Nike uses this strategy, marketing different types of shoes and apparel to modifying brand names and packaging and prosperity
meet specific needs of cross-trainers, basketball players, aerobics enthusiasts, and other may include decisions regarding warranty and repair
athletic-shoe buyers. Nike has even developed an athletic shoe for a single ethnicity—the services. Even one of the world’s best basketball players is
Air Native N7 for American Indians.3 a global brand. Yao Ming, the Houston Rockets’ center,
has endorsed products from McDonald’s, PepsiCo, and
Reebok, many of which are marketed in his Chinese
Understanding the Marketing Concept homeland.6
Marketing is more than simply advertising or selling a product; it involves developing Marketing Deals with Products,
and managing a product that will satisfy customer needs. It focuses on making the Price, Distribution, and Promotion
Product variable decisions and related activities are
important because they are directly involved with
creating products that address customers’ needs and
wants. To maintain an assortment of products that helps
an organization achieve its recession, marketers must
decide what type of each element to use and in what amounts. A primary goal of a
develop new products, modify existing ones, and eliminate
marketing manager is to create and maintain the right mix of these elements to satisfy
those that no longer satisfy enough buyers or that yield
customers’ needs for a general product type. Note in Figure 1.1 that the marketing mix
unacceptable profits. In the funeral home industry, for
is built around the customer.
example, some companies have developed new products
Marketing managers strive to
Responsible Marketing such as DVD memoirs, grave markers that depression
develop a marketing mix that matches
photos along with a soundtrack, and caskets with drawers
Efficiency and Size Make Tiny Cars a the needs of customers in the target
to hold mementos from the bereaved. To appeal to the
market. The marketing mix for
Winning Segment

growing number of people who prefer to be cremated,
Nissan Rogue, for example, combines
other firms are offering more cremation and memorial
a crossover SUV with coordinated
services.7
distribution, promotion, and price
ISSUE: Should companies partner in managing their environmental
and social responsibility issues, or should they maintain appropriate fror the target market of Marketing Occurs in a
primarily men and women in their Appealing to Multiple Target Markets
independence, making this a competitive marketing strategy? Dynamic Environment
20s and early 30s. The marketing Diet Coke targets the health conscious while Pepsi appeals
On the other hand, some luxury goods marketers are now
With environmental concerns increasing, the mix for the rogue includes an to a broader, less-calorie-conscious market segment.
offering lower-priced versions of their products to appeal
automobile market has seen a global decline in economical engine, stylish design, and to middle-class consumers who want to “trade up” to
sales and people are looking for smarter solutions performance handling; a price around prestigious brand names. Handbag maker Coach, for example, markets fabric wristlets
to transportation. One answer appears to be, $20,000; as well as product placement
go tiny. While global car sales have been declining precipitously, the for as low as $48, with high-end leather handbags selling for as much as $6,000.8 We
and advertising during the hit show explore pricing decisions in Chapters 11 and 12.
MINI Cooper (made by BMW) and smart cars (smart is a member of
“Heroes” and a 5-car giveaway.4
Mercedes-Benz Cars) are two bright spots on the car industry horizon. Price Variable The price variable relates to decisions and actions associated with
The smart car is like no other car on the American market, measuring Before marketers can develop
a marketing mix, they must collect establishing pricing objectives and policies and determining product prices. Price is a
in at around 106 inches long, it is three feet shorter than the MINI
in-depth, up-to-date information critical component of the marketing mix because customers are concerned about the
Cooper. Despite its small size, test drivers have found the interior to
be roomier than expected. about customer needs. Such recovery A stage of the value obtained in an exchange. Price is often used as a competitive tool, and intense price
Over 770,000 of the original smart fortwo coupes have been sold in information might include data about business cycle in which the competition sometimes leads to recovery wars. High prices can be used competitively
36 countries since 2001 and the current smart model is doing well in economy moves from recession to establish a product’s premium image. Waterman and Mont Blanc pens, for example,
the age, income, ethnicity, gender,
the United States—it is the first car that can be factory ordered over or depression towards prosperity have an image of high quality and high price that has given them significant status.
and educational level of people in
the internet. Toyota’s answer to the tiny car is called the iQ, which the target market, their preferences buying power Resources,
will first launch in small-car-friendly Japan and Europe, with sales such as money, goods, and Distribution Variable To satisfy customers, products must be available at the
for product features, their attitudes right time and in convenient locations. Subway, for example, locates not only in strip
expected to be 2,500 and 6,000 a month, respectively. Plans are to services that con be traded in
toward competitors’ products, and an exchange malls but also inside Wal-Marts, Home Depots, laundromats, churches, and hospitals,
eventually sell the car in the U.S. as well.
the frequency with which they use as well as inside a Goodwill store, a car dealership, and buying power. There are more
Part of the success of smaller vehicles is that they appeal to the income For an individual,
practical and emotional sides of consumers. Fuel efficiencies are the product. Research by Procter & than 30,000 Subways in 88 different countries, all of them franchises. Six thousand of
the amount of money received
higher. The smart fortwo coupe gets 40 mpg highway; the MINI Gamble, for example, introduced Old these are placed in non-traditional locations, such as churches.9 In dealing with the
through wages, rents, investments,
Cooper gets 37 mpg; and the iQ is Toyota’s most fuel-efficient Spice High Endurance Hair & Body pensions, and subsidy payments distribution variable, a marketing manager makes products available in the quantities
vehicle at 54 mpg highway. The fortwo has also earned the Ultra Low Wash after hours of videotaping men for a given period desired to as many target-market customers as income, keeping total inventory,
Emission designation from the Air Resources Board of California, due in the shower (in swimsuits) revealed transportation, and storage costs as low as possible. A marketing manager also may
disposable income After-tax
to its low exhaust emissions. Increased parking options is another perk that many men were already using select and motivate intermediaries (wholesalers and retailers), establish and maintain
income
of the small car, especially in crowded cities. body wash to shampoo their hair.5
54 55
its FlyPhone cellular phone at 13 – 17-year-olds who Before marketers can develop a marketing mix, they must collect in-depth, up-to-
want a phone that can take photos, play MP3 tunes, play date information about customer needs. Such information might include data about the
games, and share photos with friends. Other companies age, income, ethnicity, gender, and educational level of people in the target market, their
target multiple markets with different products, promotion, preferences for product features, their attitudes toward competitors’ products, and the
prices, and distribution systems for each one. Nike uses this frequency with which they use the product. Research by Procter & Gamble, for example,
strategy, marketing different types of shoes and apparel to introduced Old Spice High Endurance Hair & Body Wash after hours of videotaping
meet specific needs of cross-trainers, basketball players, men in the shower (in swimsuits) revealed that many men were already using body wash
aerobics enthusiasts, and other athletic-shoe buyers. Nike to shampoo their hair.5 Armed with market information, marketing managers are better
has even developed an athletic shoe for a single ethnicity— able to develop a marketing mix that satisfies a specific target market.
the Air Native N7 for American Indians.3 Let’s look more closely at the decisions and activities related to each marketing mix
variable.
Product Variable Successful marketing efforts result in products that become
Understanding the part of everyday life. Consider the satisfaction customers have had over the years from
Marketing Concept Coca-Cola, Levi’s jeans, Visa credit cards, Tylenol pain relievers, and 3M Post-it Notes.
The product variable of the marketing mix deals with researching customers’ needs and
Marketing is more than simply advertising or selling a wants and designing a product that satisfies them. A product can be a good, a service, or
product; it involves developing and managing a product an idea. A good is a physical entity you can touch. The MiniCooper car, Apple iPhone,
that will satisfy customer needs. It focuses on making the a bar of Ivory soap, or a kitten at an animal shelter are all examples of goods. A service
product available in the right place and at a price acceptable is the application of human and mechanical efforts to people or objects to provide
to buyers. It also requires communicating information that intangible benefits to customers. Air travel, dry cleaning, haircutting, banking, medical
helps customers determine if the product will satisfy their care, and day care are examples of services. Ideas include concepts, philosophies, images,
needs. These activities are planned, organized, implemented, and issues. For instance, a marriage
and controlled to meet the needs of customers within the counselor, for a fee, gives spouses
target market. Marketers refer to these activities—product, Entrepreneurial Marketing ideas to help
The product variable also involves
pricing, distribution, and promotion—as the marketing
mix because they decide what type of each element to
Efficiency and Size Make Tiny Cars a creating or modifying brand names
use and in what amounts. A primary goal of a marketing Winning Segment and packaging and prosperity may
include decisions regarding warranty
manager is to create and maintain the right mix of these
elements to satisfy customers’ needs for a general product and repair services. Even one of the
type. Note in Figure 1.1 that the marketing mix is built With environmental concerns increasing, the automobile market world’s best basketball players is a
Appealing to Multiple Target Markets
around the customer. has seen a global decline in sales and people are looking for smarter global brand. Yao Ming, the Houston
Diet Coke targets the health conscious while Pepsi appeals
Marketing managers strive to develop a marketing solutions to transportation. One answer appears to be, go tiny. While Rockets’ center, has endorsed products
to a broader, less-calorie-conscious market segment. global car sales have been declining precipitously, the MINI Cooper
mix that matches the needs of customers in the target from McDonald’s, PepsiCo, and
(made by BMW) and smart cars (smart is a member of Mercedes- Reebok, many of which are marketed
market. The marketing mix for Nissan Rogue, for example, Benz Cars) are two bright spots on the car industry horizon. The
combines a crossover SUV with coordinated distribution, in his Chinese homeland.6
smart car is like no other car on the American market, measuring
promotion, and price appropriate fror the target market of primarily men and women in in at around 106 inches long, it is three feet shorter than the MINI Price Variable The price
their 20s and early 30s. The marketing mix for the rogue includes an economical engine, Cooper. Despite its small size, test drivers have found the interior to variable relates to decisions and
stylish design, and performance handling; a price around $20,000; as well as product be roomier than expected. actions associated with establishing
placement and advertising during the hit show “Heroes” and a 5-car giveaway.4 Over 770,000 of the original smart fortwo coupes have been sold in pricing objectives and policies
36 countries since 2001 and the current smart model is doing well in and determining product prices.
recovery A stage of the Marketing Deals with Products, the United States—it is the first car that can be factory ordered over
Price is a critical component of the
business cycle in which the the internet. Toyota’s answer to the tiny car is called the iQ, which
economy moves from recession
Price, Distribution, and Promotion will first launch in small-car-friendly Japan and Europe, with sales
marketing mix because customers are
expected to be 2,500 and 6,000 a month, respectively. Plans are to concerned about the value obtained
or depression towards prosperity Product variable decisions and related activities are important because they are directly
eventually sell the car in the U.S. as well. in an exchange. Price is often used
buying power Resources, involved with creating products that address customers’ needs and wants. To maintain
Part of the success of smaller vehicles is that they appeal to the as a competitive tool, and intense
such as money, goods, and an assortment of products that helps an organization achieve its recession, marketers
practical and emotional sides of consumers. Fuel efficiencies are price competition sometimes leads
services that con be traded in must develop new products, modify existing ones, and eliminate those that no longer
higher. The smart fortwo coupe gets 40 mpg highway; the MINI to recovery wars. High prices can
an exchange satisfy enough buyers or that yield unacceptable profits. In the funeral home industry, for
Cooper gets 37 mpg; and the iQ is Toyota’s most fuel-efficient be used competitively to establish a
income For an individual, example, some companies have developed new products such as DVD memoirs, grave vehicle at 54 mpg highway. The fortwo has also earned the Ultra Low product’s premium image. Waterman
the amount of money received markers that depression photos along with a soundtrack, and caskets with drawers to Emission designation from the Air Resources Board of California, due and Mont Blanc pens, for example,
through wages, rents, investments, hold mementos from the bereaved. To appeal to the growing number of people who to its low exhaust emissions. Increased parking options is another have an image of high quality and
pensions, and subsidy payments prefer to be cremated, other firms are offering more cremation and memorial services.7 perk of the small car, especially in crowded cities where parking is a
for a given period high price that has given them
We consider such product issues and many more in Chapters 9 and 10. challenge. The cars also aim to be more affordable than their large
significant status. On the other hand,
disposable income After-tax On the other hand, some luxury goods marketers are now offering lower-priced versions counterparts with the Smart priced from $11,590 to $16,590; the iQ is
set to sell for $13,720, and the MINI Cooper at the higher end at $18- some luxury goods marketers are now
income of their products to appeal to middle-class consumers who want to “trade up” to
20,000. Buying tiny may very well display a high level of intelligence.a offering lower-priced versions of their
56 57
Figure 1.3 The Evolution of the Marketing Concept pg 13

Sustainable Marketing
Production Orientation Sales Orientation Marketing Orientation

Growing Eco-Responsible Buildings
Buildings in the United States account for 39 percent of the cities of Chicago and Portland which have over 250 and 120
country’s primary energy use, 70 percent of its resource green roofs, respectively. As customers and society at large
1850 1900 1950 2000
consumption, 15 trillion gallons of water use. become more aware of the potential benefits and savings of these
products, they are more likely to begin demanding them from
Buildings are beginning to get more attention in the fight against global
contractors and builders. In this way, the welfare of customers
warming because carbon dioxide emissions could be cut by 6 million
features or urge people to take a particular stance on a political or social issue, such and society will improve through value-driven marketing.c
tons a year.
as smoking or drug abuse. For example, rising fuel prices prompted the U.S. Department
The equivalent of taking 1 million cars off the road—if half the
of Energy to launch an advertising campaign featuring an Energy Hog mascot to urge
nation’s new commercial buildings used 50 percent less energy.
the public to conserve energy, especially with regard to home heating. The campaign also
Consider that a ten-story office building in Los Angeles could save
used booklets, temporary tattoos for children, and two websites—one for children with
$141,000 annually on its electricity bill and extract 40 tons of carbon
games and one for adults with information about energy-saving tips and appliances.12
from the air if it were to have a green roof and four green walls.
Promotion can help to sustain interest in established products that have been available
for decades, such as Arm & Hammer baking soda or Ivory soap. Many companies are Marketing these new green building products requires
generic photo credit / grass: © Kutay Tanir

using the Internet to communicate information about themselves and their products. educating customers about the new technologies available
Ragu’s website, for example, offers Italian phrases, recipes, and a sweepstakes, whereas
Demonstrating that the technology works and provides benefits to
Southwest Airlines’ website enables customers to make flight reservations. In Chapters
both customers and society at large. Larger companies are joining the
15 through 17 we take a detailed look at promotion activities.
new green building revolution such as The Gap retail chain installed a
The marketing-mix variables are often viewed as controllable because they can be
69,000 square foot green roof on its headquarters.
modified. However, there are limits to how much marketing managers can alter them.
Economic conditions, competitive structure, and government regulations may prevent a Ford Motor Company installed green roofs on its corporate
manager from adjusting prices frequently or significantly. Making changes in the size, headquarters. Cities also encourage green building such as the
shape, and design of most tangible goods is expensive; therefore, such product features
cannot be altered very often. In addition, promotional campaigns and methods used to
distribute products ordinarily cannot be rewritten or revamped overnight.
Likewise, Dunkin’ Donuts likewise eliminated trans fats from all items on its menu.14
Understanding the Marketing Concept Second, marketing environment forces help to determine whether and how a marketing
manager can perform certain marketing activities. Third, environmental forces may
Individuals and organizations engage in marketing to facilitate exchanges, the provision affect a marketing manager’s decisions and actions by influencing buyers’ reactions to
or transfer of goods, services, or ideas in return for something of value. Any product the firm’s marketing mix.
(good, service, or even idea) may be involved in a marketing exchange. We assume
only that individuals and organizations expect to gain a reward in excess of the costs Marketing Occurs in a Dynamic Environment
incurred. Marketing activities do not take place in a vacuum. The marketing environment,
For an exchange to take place, four conditions must exist. which includes competitive, economic, political, legal and regulatory, technological, and
1. First, two or more individuals, groups, or organizations must participate, and each sociocultural forces, surrounds the customer and affects the marketing mix (see Figure
must possess something of value that the other party desires. 1.1). The effects of these forces on buyers and sellers can be dramatic and difficult to
2. Second, the exchange should provide a benefit or satisfaction to both parties predict. They can create threats to marketers but also can generate opportunities for new
involved in the transaction. products and new methods of reaching customers.
3. Third, each party must have confidence in the promise of the “something of value” The forces of the marketing environment affect a
held by the other. If you go to a Coldplay concert, for example, you go with the marketer’s ability to facilitate exchanges in three general
Snapshot
expectation of a great performance. ways. First, they influence customers by affecting their
4. Finally, to build trust, the parties to the exchange must meet expectations. lifestyles, standards of living, and preferences and needs
for products. Because a marketing manager tries to develop
Figure 1.2 depicts the exchange process. The arrows indicate that the parties and adjust the marketing mix to satisfy customers, effects
communicate that each has something of value available to exchange. An exchange will of environmental forces on customers also have an indirect
not necessarily take place just because these conditions exist; marketing activities can impact on marketing-mix components. For example,
occur even without an actual transaction or sale. You may see an ad for a Sub-Zero revamped its menu to include healthier It also pledged to
refrigerator, for instance, but you might never buy the product. When an exchange restrict advertising to children under age 12 using licensed
occurs, products are traded for other products or for financial resources. characters only to promote products that meet health
Marketing activities should attempt to create and maintain satisfying exchange guidelines.13
relationships. To maintain an exchange relationship, buyers must be satisfied with Source: Date from National Coffee Association
58 59
than vinyl records, turntable manufacturers had an opportunity to develop new products Table 9.5 Marketing Mix Issues Internationally pg 269
to satisfy customers’ needs for home entertainment. Companies that did not pursue this Product Element Product Issues
opportunity, such as Dual and Empire, are no longer in business.
Core Product Is there a commonality of the customer’s needs across countries? What will the product be
Such organizations have failed to implement the marketing concept. Likewise, the used for and in what context?
growing popularity of MP3 technology has enabled firms such as Apple Computer
to develop products like the iPod to satisfy consumers’ desire to store customized Product Adoption How is awareness created for the product in the various country markets? How and where is
the product typically bought?
music libraries. Instead of buying CDs, a consumer can download a song for 99
cents from Apple’s iTunes online music store to develop products like the iPod. Managing Products How are truly new products managed in the country markets vis-avis exiting products or
According to the marketing concept, an organization should try to provide products products that have been modified slightly?
that satisfy customers’ needs through a coordinated set of activities that also allows
Branding Is the brand acepted widely around the world? Does the home country help or hurt the brand
the organization to achieve its goals. Customer satisfaction is the major focus of the perception of the consumer?
marketing concept.
Distribution Element
To implement the marketing concept, an organization strives to determine what
buyers want and uses this information to develop satisfying products. Marketing Channels Is there a commonality of the customer’s needs across countries? What will the product be
It focuses on customer analysis, competitor analysis, and integration of the used for and in what context?
firm’s resources to provide customer value and satisfaction, as well as generate
Physical Distribution How is awareness created for the product in the various country markets? How and where is
long-term profits.17 the product typically bought?
The firm also must continue to alter, adapt, and develop products to keep pace
with customers’ changing desires and preferences. Retail Stores How are truly new products managed in the country markets vis-avis exiting products or
products that have been modified slightly?
Ben & Jerry’s Homemade Ice Cream, for example, constantly assesses customer
demand for ice cream and sorbet. On its website it maintains a “flavor graveyard” listing Retailing Strategy Is the brand acepted widely around the world? Does the home country help or hurt the brand
combinations that were tried and ultimately failed. It also notes its top ten flavors each perception of the consumer?
month. Pharmaceutical companies such as Merck and Pfizer continually strive to develop
new products to fight infectious diseases, viruses, cancer, and other medical problems. Promotion Element
Drugs that lower cholesterol, control diabetes, alleviate depression, or improve the Advertising Is there a commonality of the customer’s needs across countries? What will the product be
used for and in what context?
Public Relations How is awareness created for the product in the various country markets? How and where is
Figure 2.1 Components of Strategic Planning pg 32
the product typically bought?
Analysis of organization’s strengths and weaknesses Personal Selling How are truly new products managed in the country markets vis-avis exiting products or
Identification of organization’s opportunities and threats products that have been modified slightly?
Sales Promotion Is the brand acepted widely around the world? Does the home country help or hurt the brand
perception of the consumer?
Organizational mission and goals
Evolution of the Marketing Concept

Corporate and business-unit strategies The marketing concept may seem like an obvious approach to running a business.
However, businesspeople have not always believed that the best way to make sales and
profits is to satisfy customers (see Figure 1.3).
The Production Orientation During the second half of the nineteenth
century, the Industrial Revolution was in full swing in the United States. Electricity, rail
Marketing Production Finance Human transportation, division of labor, assembly lines, and mass production made it possible
• Objectives • Objectives • Objectives Resources to produce goods more efficiently. With new technology and new ways of using labor,
• Strategy • Strategy • Strategy • Objectives products poured into the marketplace, where demand for manufactured goods was
• Marketing Plan • Production • Finance Plan • Strategy strong.
Plan • Human
resources The Sales Orientation In the 1920s, strong demand for products subsided,
plan and businesses realized that they would have to “sell” products to buyers. From the
mid-1920s to the early 1950s, businesses viewed sales as the major means of increasing
profits, and this period came to have a sales orientation. Businesspeople believed that the
most important marketing activities were personal selling, advertising, and distribution.
Source: "Global 500: 2007," Fortune, http://money.cnn.com/magazines/fortune/global500/2007/ (accessed Jan.21, 2008). Today, some people incorrectly equate marketing with a sales orientation.
60 61
Table 9.4 The Ten Largest Global Corporations page 265

Rank Company Country Industry Revenues Appealing to
(in millions) Multiple Tar-
get Markets
1 Wal-Mart Stores U.S. General merchandiser $351,139
Diet Coke targets
2 Exxon Mobil U.S. Petroleum refining $347,254 the health conscious
3 Royal Dutch/ Netherlands/ Petroleum refining $318,845 while Pepsi appeals
Shell Group Britain to a broader, less-
4 BP Britain Petroleum refining $274,316 calorie-conscious
market segments.
5 General Motors U.S. Motor vehicles and parts $207,316
6 Toyota Motor Japan Motor vehicles and parts $200,567
7 Chevron U.S. Petroleum refining $200,504
8 DaimlerChrysler Germany Motor vehicles and parts $190,191
9 ConocoPhillips U.S. Petroleum refining $172,451
10 Total France Petroleum refining $168,356
Source: "Global 500: 2007," Fortune, http://money.cnn.com/magazines/fortune/global500/2007/ (accessed Jan.21, 2008).

oriented organization must accept some general conditions and recognize and deal with
several problems. Consequently, the marketing concept has yet to be fully accepted by
all businesses.
■ Management must first establish an information system to discover customers’ real
needs and then use the information to create satisfying products.
■ For example, research has shown that women want products that are customizable Implementing the marketing concept means optimizing the exchange relationship, which
and relevant to their lives. is the relationship between a company’s financial investment in customer relationships
■ Kimberly-Clark’s Huggies brand, for example, has come out with a “Baby and the return generated by customers responding to that investment.28
Countdown” widget for expectant mothers. Maintaining positive relationships with customers is an important goal for
All they do is type in their due date and the Countdown tells them what is happening marketers. The term relationship marketing refers to “long-term, mutually beneficial
in their bodies and what to expect.24 As food prices increase, McDonald’s has been arrangements in which both the buyer and seller focus on value enhancement through
enegaged in large scale tests to determine ways to cut costes on their $1 cheeseburgers. the creation of more satisfying exchanges.” 29 Relationship marketing continually
The company feels the pressure to keep prices low, while simultaneously satisfying deepens the buyer’s trust in the company, and as the customer’s confidence grows, this,
customers.25 An information system is usually expensive; management must commit in turn, increases the firm’s understanding of the customer’s needs. Successful marketers
money and time for its development and maintenance. Without an adequate information respond to customer needs and strive to increase value to buyers over time. Eventually
system, however, an organization cannot be marketing oriented. this interaction becomes a solid relationship that allows for cooperation and mutual
To satisfy customers’ objectives as well as its own, a company also must coordinate dependency.
all its activities. To keep service quality high, cross training service employees to take To build these long-term customer relationships, marketers are increasingly turning to
on a variety of roles creates improved implementation of the marketing strategy.26 This marketing research and information technology. Customer relationship management
may require restructuring the internal operations and overall objectives of one or more (CRM) focuses on using information about customers to create marketing strategies that
departments. Through the use of Internet-based marketing strategies (e-marketing), develop and sustain desirable customer relationships. Byincreasing customer value over
recovery A stage of the
companies can personalize customer relationships on a nearly one-on-one basis. A wide business cycle in which the
time, organizations try to retain and increase long-term profitability through customer
range of products, such as computers, jeans, golf clubs, cosmetics, and greeting cards, economy moves from recession loyalty.30 For example, Best Buy has a reward zone program, wherein members collect a
can be tailored for specific customers. If the head of the marketing unit is not a member or depression towards prosperity reward point for every $1 spent in the store, which can be redeemed for gift certificates.
of the organization’s top-level management, he or she should be. Some departments buying power Resources, Every 250 points earns customers a $5 reward certificate.31 Starbucks has also started
may have to be abolished and new ones created. Implementing the marketing concept such as money, goods, and a rewards program to lure its faithful customers to the chain more frequently. Loyalty
demands the support not only of top management but also of managers and staff at all services that con be traded in cards and more frequent promotions are part of Starbucks’ strategy to counter sagging
levels. an exchange sales.32
Achieving the full profit potential of each customer relationship should be the income For an individual, Managing customer relationships requires identifying patterns of buying behavior
fundamental goal of every marketing strategy. Marketing relationships with customers the amount of money received and using that information to focus on the most promising and profitable customers.33
are the lifeblood of all businesses. At the most basic level, profits can be obtained through wages, rents, investments, Companies must be sensitive to customers’ requirements and desires and establish
through relationships in the following ways: (1) by acquiring new customers, (2) by pensions, and subsidy payments communication to build their trust and loyalty. Consider that the lifetime value of a
enhancing the profitability of existing customers, and (3) by extending the duration for a given period Lexus customer is about 50 times that of a Taco Bell customer, but remember, there
of customer relationships. In addition to retaining customers, companies also should disposable income After-tax are many more Taco Bell customers. For either organization, a customer is important.
income A customer’s lifetime value results from his or her frequency of purchases, average
62 63
The Importance of Marketing Marketing Offers Many Exciting Career Prospects

in Our Global Economy From 25 to 33 percent of all civilian workers in the United States perform marketing
activities. The marketing field offers a variety of interesting and challenging career
opportunities throughout the world, such as personal selling, advertising, packaging,
Our definition of marketing and discussion of marketing activities reveal some of the transportation, storage, marketing research, product development, wholesaling, and
obvious reasons the study of marketing is relevant in today’s world. In this section we retailing. In addition, many individuals working for nonbusiness organizations engage
look at how marketing affects us as individuals and at its role in our increasingly global in marketing activities to promote political, educational, cultural, church, civic, and
society. charitable activities. Whether a person earns a living through marketing activities or
performs them voluntarily for a nonprofit group, marketing knowledge and skills are
Marketing Costs Consume a valuable personal and professional assets.
Sizable Portion of Buyers’ Dollars
Studying marketing will make you aware that many marketing activities are necessary
to provide satisfying goods and services. Obviously, these activities cost money. About
one-half of a buyer’s dollar goes for marketing costs. If you spend $16 on a new CD, 50
to 60 percent goes toward marketing expenses, including promotion and distribution,
summary
as well as profit margins. The production (pressing) of the CD represents about $1, or
1. Define marketing claim, in some aspect of a company’s products, operations,
6 percent of its price. A family with a monthly income of $3,000 that allocates $600 to
markets, industry, and outcomes.
taxes and savings spends about $2,400 for goods and services. Of this amount, $1,200
Marketing is the process of creating, pricing, distributing, The marketing environment, which includes
goes for marketing activities. If marketing expenses consume that much of your dollar,
and promoting goods, services, and ideas to facilitate competitive, economic, political, legal and regulatory,
you should know how this money is used.
satisfying exchange relationships with customers and technological, and sociocultural forces, surrounds the
to develop and maintain favorable relationships with customer and the marketing mix. These forces can create
Marketing Is Used in Nonprofit Organizations stakeholders in a dynamic environment. The essence of threats to marketers, but they also generate opportunities
Although the term marketing may bring to mind advertising for Burger King, Volkswagen, marketing is to develop satisfying exchanges from which for new products and new methods of reaching customers.
and Apple, marketing is also important in organizations working to achieve goals other both customers and marketers benefit.
than ordinary business objectives such as profit. Government agencies at the federal,
3. Be aware of the marketing concept and
2. Color of box background will change from marketing orientation
part to part and will match the Part color
used behind the page numbers and on the According to the marketing concept, an organization
Marketing in Transition
part and chapter openers should try to provide products that satisfy customers’
Efficiency and Size Make Tiny Cars a Winning Segment needs through a coordinated set of activities that also
A target market is the group of customers toward which a allows the organization to achieve its goals. Customer
company directs a set of marketing efforts. satisfaction is the marketing concept’s major objective.
With environmental concerns increasing, the automobile market The variables—product, price, distribution, and The philosophy of the marketing concept emerged in the
has seen a global decline in sales and people are looking for promotion—are known as the marketing mix because United States during the 1950s after the production and
smarter solutions to transportation. marketing managers decide what type of each element sales eras. Organizations that develop activities consistent
to use and in what amounts. Marketing managers strive with the marketing concept become marketing-oriented
■ While global car sales have been declining precipitously, the organizations.
to develop a marketing mix that matches the needs of
MINI Cooper (made by BMW) and smart cars are two bright
customers in the target market. Before marketers can
spots on the car industry horizon.
develop a marketing mix, they must collect in-depth, 4. Understand the importance of building
■ The smart car is like no other car on the American market,
up-to-date information about customer needs. customer relationships
measuring in at around 106 inches long, it is three feet shorter
Individuals and organizations engage in marketing to
than the MINI Cooper. Relationship marketing involves establishing long-term,
facilitate exchanges—the provision or transfer of goods,
■ Despite its small size, test drivers have found the interior to mutually satisfying buyer–seller relationships. Customer
services, and ideas in return for something of value.
be roomier than expected. relationship management (CRM) focuses on using
Four conditions must exist for an exchange to occur: (1)
Over 770,000 of the original smart fortwo coupes have been sold Two or more individuals, groups, or organizations must information about customers to create marketing strategies
participate, and each must possess something of value that that develop and sustain desirable customer relationships.
generic photo credit / water: © Marcus Lindstrom
in 36 countries since 2001 and the current smart model is doing

well in the United States. the other party desires; (2) the exchange should provide Managing customer relationships requires identifying
a benefit or satisfaction to both parties involved in the patterns of buying behavior and using that information
1. It is the first car that can be factory ordered over the internet. to focus on the most promising and profitable customers.
are higher. The smart fortwo coupe gets 40 mpg highway; the transaction; (3) each party must have confidence in the
2. Toyota’s answer to the tiny car is called the iQ, which will Value is a customer’s subjective assessment of benefits
MINI Cooper gets 37 mpg; and the iQ is Toyota’s most fuel- promise of the “something of value” held by the other; and
first launch in small-car-friendly Japan and Europe. relative to costs in determining the worth of a product.
efficient vehicle at 54 mpg highway. The fortwo has also earned (4) to build trust, the parties to the exchange must meet
3. With sales expected to be 2,500 and 6,000 a month, Benefits include anything a buyer receives in an exchange,
the Ultra Low Emission designation from the Air Resources expectations. Marketing activities should attempt to create
respectively. Plans are to eventually sell the car in the U.S. whereas costs include anything a buyer must give up to
Board of California, due to its low exhaust emissions. Increased and maintain satisfying exchange relationships with all
Part of the success of smaller vehicles is that they appeal to parking options is another perk of the small car, especially in stakeholders—those constituents who have a “stake,” or obtain the benefits the product provides.
the practical and emotional sides of consumers. Fuel efficiencies crowded cities where parking is a challenge. The cars also aim to
64 65
4. Explain the major marketing functions that marketing personnel, and communicating effectively
are part of the marketing management
process
within the unit. The marketing control process consists
of establishing performance standards, comparing actual
performance with established standards, and reducing the
application questions
Marketing management is the process of planning, difference between desired and actual performance. 1. Identify several businesses in your 3. Discuss the variables of the marketing mix (product,
organizing, implementing, and controlling marketing area that have not adopted the mar- price, promotion, and distribution) as they might relate
activities to facilitate effective and efficient exchanges. 5. Understand the role of marketing in our keting concept. What characteristics of to each of the following:
Planning is a systematic process of assessing opportunities society these organizations indicate nonacceptance of the mar- a. A trucking company
and resources, determining marketing objectives, keting concept? b. A men’s clothing store
developing a marketing strategy, and preparing for Marketing costs absorb about half of each buyer’s dollar. 2. Identify possible target markets for the following prod- c. A skating rink
implementation and control. Organizing marketing Marketing activities are performed in both business ucts: d. A campus bookstore
activities involves developing the marketing unit’s internal and nonprofit organizations. Marketing activities help a. Kellogg’s Corn Flakes
structure. Proper implementation of marketing plans business organizations to generate profits, and they help b. Wilson tennis rackets
depends on coordinating marketing activities, motivating fuel the increasingly global economy. Knowledge of c. Disney World
d. Diet Pepsi
Go to www.yaddayaddayadda.com for more online assets!

internet exercise
important terms The American Marketing Association (AMA) is the marketing
discipline’s primary professional organization. In addition to
1. What type of information is available on the AMA web-
site to assist students in planning their careers and finding
sponsoring academic research, publishing marketing litera- jobs?
marketing exchanges relationship marketing marketing management ture, and organizing meetings of local businesspeople with 2. If you joined a student chapter of the AMA, what benefits
customers stakeholders and a two line term brand competitors student members, it helps individual members to find employ- would you receive?
target market marketing environment customer relationship product competitors ment in member firms. Visit the AMA website at the following 3. What marketing-mix variable does the AMA’s Internet
marketing mix marketing concept management (CRM) www.marketingpower.com. marketing effort exemplify?
product marketing orientation value
discussion and review questions developing your marketing plan

1. What is marketing? How did you define the term before 10. What types of activities are involved in the marketing Successful companies develop strate- consists of establishing performance standards, comparing
you read this chapter? management process? gies for marketing their products. The actual performance with established standards, and reducing
2. What is the focus of all marketing activities? Why? 11. Why is marketing important in our society? Why should strategic plan guides the marketer in the difference between desired and actual performance.
3. What are the four variables of the marketing mix? Why you study marketing? making many of the detailed decisions about the attributes of To guide you in relating the information in this chapter to the
are these elements known as variables? 12. What are the four variables of the marketing mix? Why the product, its distribution, promotional activities, and pric- development of your marketing plan, consider the following:
4. What conditions must exist before a marketing exchange are these elements known as variables? ing. A clear understanding of the foundations of marketing is
1. Discuss how the marketing concept contributes to a com-
can occur? Describe a recent exchange in which you par- 13. Discuss the basic elements of the marketing concept. essential in formulating a strategy and in the development of
pany’s long-term success.
ticipated. Which businesses in your area use this philosophy? a specific marketing plan.
2. Describe the level of marketing orientation that currently
5. What are the forces in the marketing environment? How 14. How can an organization implement the marketing con- Organizing, implementing, and controlling market-
exists in your company. How will a marketing orienta-
much control does a marketing manager have over these cept? ing activities to facilitate effective and efficient exchanges.
tion contribute to the success of your new product?
forces? 15. What is customer relationship management? Why is it so Planning is a systematic process of assessing opportunities
3. What benefits will your product provide to the customer?
6. Discuss the basic elements of the marketing concept. important to “manage” this relationship? and resources, determining marketing objectives, developing
How will these benefits play a role in determining the
Which businesses in your area use this philosophy? 16. Discuss the basic elements of the marketing concept. a marketing strategy, and preparing for implementation and
customer value of your product?
7. How can an organization implement the marketing con- Which businesses in your area use this philosophy? control. Organizing marketing activities involves developing
cept? 17. What types of activities are involved in the marketing the marketing unit’s internal structure. Proper implementa- The information obtained from these questions should
8. What is customer relationship management? Why is it so management process? tion of marketing plans depends on coordinating marketing assist you in developing various aspects of your marketing
important to “manage” this relationship? 18. Why is marketing important in our society? Why should activities, motivating marketing personnel, and communicat- plan found in the Interactive Marketing Plan exercise.
9. What is value? How can marketers use the marketing mix you study marketing? ing effectively within the unit. The marketing control process
to enhance the perception of value? 19. What are the four variables of the marketing mix? Why
are these elements known as variables?
66 67
Video Case 1.1 Case 1.2
Green Mountain Coffee Roasters Brew Up the Best Strategies? Pepsi Sales Bubble with Limited-Edition Soft Drinks
More than a century after the first Although competitors, such as Yamaha and Suzuki, are When Travelocity began in 1996, bolized seeing the world with new eyes. The advertising
Harley-Davidson motorcycle hit the targeting younger motorcyclists worldwide, Harley-Davidson it was one of the first Internet travel campaign created a tremendous buzz about Travelocity and
road, the company dominates the U.S. sees its uniquely American brand and its reputation for quality websites, offering airline and hotel res- boosted revenues by 37 percent. Based on this customer reac-
motorcycle market. The company teetered on the brink of as two major strengths. Knowing that members of its target ervations, cruises, vacation packages, and car rentals. Today, tion, Travelocity opened an online store to sell mugs, magnets,
bankruptcy in the 1980s and then roared back with a renewed market are passionate about motorcycles, the company offers Travelocity offers consumers a choice of more than 70,000 tote bags, and other items featuring the Roaming Gnome,
focus on product quality. Now, with annual worldwide sales tours of its factories in Wisconsin, Pennsylvania, and Missouri. hotels, 50 car rental companies, 6,000 travel packages, and who even has his own page on MySpace.com.
of nearly $6 billion, Harley-Davidson is building a solid foun- It also set up the Harley-Davidson Museum in its headquar- flights on dozens of airlines worldwide. Over time, Travelocity has acquired a number of
dation for future profits by ters city of Milwaukee, with Now that Travelocity faces intense competition from travel sites to broaden its offerings. When it purchased Site59,
focusing on younger custom- 130,000 square feet of exhib- Expedia, Orbitz, and other travel websites, its marketers are for example, Travelocity solidified its position as a major
ers and on women. its featuring Harley-Davidson making the company stand out by standing behind travel- player in the last-minute travel business. Now customers who
According to the products of the past, present, ers every step of the way. The result is the unique four-point feel the urge to travel can get special deals by booking no
Motorcycle Industry Council, and future. Travelocity Guarantee. more than 14 days before they
the average age of motorcy- On the lifestyle side, the First, Travelocity guaran- want to leave. The savings are
clists is 42. The average age Harley Owners Group (HOG) tees its low price. If, within 24 even bigger when customers
of Harley-Davidson’s custom- fosters a sense of community hours, consumers find a lower book a vacation package just
ers is 48, but its customers are among customers, both young price for travel they have a few days in advance.
intensely loyal to the iconic and old, male and female. booked through Travelocity, Travelocity has seven
brand. If the company can HOG’s more than a mil- the company will refund the testers clicking all over its
bring in younger customers, lion members enjoy benefits difference and add a credit website to determine what
especially first-time buyers, it such as access to dozens of toward future travel. Second, customers might find con-
has a good chance of keep- exclusive group rides, a spe- Travelocity allows customers fusing and how to make the
ing them as they trade up to cial customer service hotline, to change passenger names, site faster and more conve-
more powerful and expensive and subscriptions to motor- flight dates, and flight times nient. One lesson Travelocity
motorcycles in the coming cycling magazines. In addi- without a fee if they make learned was that customers
years. tion, members can use the the change within 24 hours don’t always remember their
As a result, Harley- Harley-Davidson website to of booking their travel. Third, passwords. To counteract this
Davidson is putting special plan travel, book hotels, rent Travelocity will alert custom- problem, Travelocity changed
targeting emphasis on con- bikes, or ship their bikes for ers in advance to any issues that might negatively affect their the system so that customers could reenter an address or e-mail
sumers in their 20s and on their next riding adventures. travel arrangements and try to fix the problem by switching address and use those details to access their personal profile
women. Its newer models Like a number of com- hotels or making other changes. rather than relying on a password. Thanks to this change,
marry the brand’s image of panies, global economic woes Fourth, if something goes wrong during a trip, Travelocity revenues quickly rose by 10 percent. Watch for more changes
freedom and individuality to been a real challenge for will work to put things right. For example, if a customer ahead as Travelocity finds new ways to satisfy its customers
motorcycles with styling, per- Harley-Davidson. Sales of the books a hotel with a swimming pool but finds that the swim- and new places for its Gnome to visit.numerical endnote
formance, and features that appeal to these two segments. To most profitable models are declining, while sales of low-profit ming pool is closed on arrival, Travelocity will, at its own
attract first-time buyers as well as experienced riders trad- models are increasing. The company still builds and sells more expense, move the customer to a comparable or better-qual- Questions for Discussion
ing up to better bikes, Harley-Davidson prices its motorcycles than 300,000 motorcycles each year, but its ability to grow ity hotel. Travelocity maintains a round-the-clock hotline to 1. How does the Travelocity Guarantee give Travelocity a
starting at $6,695 and offers financing and insurance, as well. profitably depends, in large part, on the success of its target- ensure that customers get what they want. The Travelocity competitive advantage in various stages of the consumer
Buyers can also order limited-edition motorcycles custom- ing strategy. Guarantee allays the concerns of customers who may be wor- buying decision process?
built with distinctive paint designs and accessories, to express ried about booking online. 2. What is Travelocity doing to influence consumer percep-
their personality. However, Harley-Davidson selects annually Questions for Discussion The company has promoted the guarantee with a tions of and attitudes toward its product offerings?
only a small number of orders for custom-built bikes. Not 1. What targeting strategy is Harley-Davidson using, and “Roaming Gnome Enforcer of the Travelocity Guarantee” 3. What are the major situational influences that affect
generic photo credit / generic photo credit
generic photo credit / generic photo credit

surprisingly, these custom products are in high demand by all why is it appropriate? advertising campaign. The distinctive Roaming Gnome Travelocity customers’ buying decisions? Explain.
targeted segments, despite their higher price tags. 2. Of the four categories of segmentation variables for humanized the brand, embodied the joy of travel, and sym-
To encourage new riders to learn to safely ride a motor- consumer markets, which are being used by Harley-
cycle and then perhaps buy a Harley-Davidson bike, many of Davidson?
the company’s dealers offer the Rider’s Edge driving course. In 3. Why is it important for Harley-Davidson to moni-
the past decade, thousands of consumers have graduated and tor the marketing segmentation efforts of competitors
earned a motorcycle license through this course. The Rider’s likeYamaha and Suzuki?
Edge also helps experienced riders to hone their riding skills
and learn special techniques for riding in groups.
68 69
Strategic Case 1 Strategic Case 1
McDonald’s Marketing Serves Up Global and Local Profits starting at $6,695 and offers financing and insurance, more powerful and expensive motorcycles in the coming
Introduction To encourage new riders to learn to safely ride a as well. years.
More than a century after the first Harley-Davidson motorcycle and then perhaps buy a Harley-Davidson However, Harley-Davidson selects annually only a As a result, Harley-Davidson is putting special target-
motorcycle hit the road, the company dominates the U.S. bike, many of the company’s dealers offer the Rider’s small number of orders for custom-built bikes. Not sur- ing emphasis on consumers in their 20s and on women.
motorcycle market. The company teetered on the brink Edge driving course. In the past decade, thousands of prisingly, these custom products are in high demand by Its newer models marry the brand’s image of freedom and
of bankruptcy in the 1980s and then roared back with consumers have graduated and earned a motorcycle all targeted segments, despite their higher price tags. individuality to motorcycles with styling, performance,
a renewed focus on product quality. Now, with annual license through this course. The Rider’s Edge also helps and features that appeal to these two segments. To attract
worldwide sales of nearly $6 billion, Harley-Davidson is experienced riders to hone their riding skills and learn Growth and Flexibility first-time buyers as well as experienced riders trading up
building a solid foundation for future profits by focus- special techniques for riding in groups. To encourage new riders to learn to safely ride a motorcy- to better bikes, Harley-Davidson prices its motorcycles
ing on younger customers Although competi- cle and then perhaps buy a Harley-Davidson bike, many starting at $6,695 and offers financing and insurance,
and on women. tors, such as Yamaha of the company’s dealers offer the Rider’s Edge driving as well.
According to the and Suzuki, are target- course. In the past decade, thousands of consumers have
Motorcycle Industry ing younger motor- graduated and earned a motorcycle license through this Background and History
Council, the average cyclists worldwide, course. The Rider’s Edge also helps experienced riders to Buyers can also order limited-edition motorcycles cus-
age of motorcyclists is Harley-Davidson sees hone their riding skills and learn special techniques for tom-built with distinctive paint designs and accessories,
42. The average age of its uniquely American riding in groups. to express their personality. However, Harley-Davidson
Harley-Davidson’s cus- brand and its reputation Take Direct Action. Although competitors, such selects annually only a small number of orders for cus-
tomers is 48, but its cus- for quality as two major as Yamaha and Suzuki, are targeting younger motor- tom-built bikes. Not surprisingly, these custom products
tomers are intensely loyal strengths. Knowing that cyclists worldwide, Harley-Davidson sees its uniquely are in high demand by all targeted segments, despite their
to the iconic brand. If members of its target American brand and its reputation for quality as two higher price tags.
the company can bring market are passion- major strengths. To encourage new riders to learn to safely ride a
in younger customers, ate about motorcycles, Consult Your Supervisor. Knowing that members motorcycle and then perhaps buy a Harley-Davidson
especially first-time buy- the company offers of its target market are passionate about motorcycles, bike, many of the company’s dealers offer the Rider’s
ers, it has a good chance tours of its factories in the company offers tours of its factories in Wisconsin, Edge driving course. In the past decade, thousands of
of keeping them as they Wisconsin, Pennsylvania, Pennsylvania, and Missouri. It also set up the Harley- consumers have graduated and earned a motorcycle
trade up to more power- and Missouri. It also set Davidson Museum in its headquarters city of Milwaukee, license through this course. The Rider’s Edge also helps
ful and expensive motor- up the Harley-Davidson with 130,000 square feet of exhibits featuring Harley- experienced riders to hone their riding skills and learn
cycles in the coming Museum in its headquar- Davidson products of the past, present, and future. special techniques for riding in groups.
years. ters city of Milwaukee, Talk with Human Resources. On the lifestyle side, Although competitors, such as Yamaha and Suzuki,
As a result, Harley- with 130,000 square the Harley Owners Group (HOG) fosters a sense of com- are targeting younger motorcyclists worldwide, Harley-
Davidson is putting spe- feet of exhibits featuring munity among customers, both young and old, male and Davidson sees its uniquely American brand and its
cial targeting emphasis Harley-Davidson prod- female. HOG’s more than a million members enjoy ben- reputation for quality as two major strengths. Knowing
on consumers in their ucts of the past, present, efits such as access to dozens of exclusive group rides, that members of its target market are passionate about
20s and on women. Its and future. a special customer service hotline, and subscriptions to motorcycles, the company offers tours of its factories in
newer models marry the On the lifestyle side, motorcycling magazines. In addition, members can use Wisconsin, Pennsylvania, and Missouri. It also set up
brand’s image of freedom and individuality to motorcy- the Harley Owners Group (HOG) fosters a sense of com- the Harley-Davidson website to plan travel, book hotels, the Harley-Davidson Museum in its headquarters city of
cles with styling, performance, and features that appeal munity among customers, both young and old, male and rent bikes, or ship their bikes for their next riding adven- Milwaukee, with 130,000 square feet of exhibits featur-
to these two segments. To attract first-time buyers as well female. HOG’s more than a million members enjoy ben- tures. ing Harley-Davidson products of the past, present, and
as experienced riders trading up to better bikes, Harley- efits such as access to dozens of exclusive group rides, Like a number of companies, global economic woes future.
Davidson prices its motorcycles starting at $6,695 and a special customer service hotline, and subscriptions to been a real challenge for Harley-Davidson. Sales of the On the lifestyle side, the Harley Owners Group
offers financing and insurance, as well. motorcycling magazines. In addition, members can use most profitable models are declining, while sales of low- (HOG) fosters a sense of community among customers,
the Harley-Davidson website to plan travel, book hotels, profit models are increasing. The company still builds both young and old, male and female. HOG’s more than
Background and History rent bikes, or ship their bikes for their next riding adven- and sells more than 300,000 motorcycles each year, but a million members enjoy benefits such as access to doz-
Buyers can also order limited-edition motorcycles cus- tures. its ability to grow profitably depends, in large part, on ens of exclusive group rides, a special customer service
tom-built with distinctive paint designs and accessories, As a result, Harley-Davidson is putting special target- the success of its targeting strategy. hotline, and subscriptions to motorcycling magazines. In
to express their personality. However, Harley-Davidson ing emphasis on consumers in their 20s and on women. According to the Motorcycle Industry Council, the addition, members can use the Harley-Davidson website
generic photo credit / Comstock
selects annually only a small number of orders for cus- Its newer models marry the brand’s image of freedom and average age of motorcyclists is 42. The average age of to plan travel, book hotels, rent bikes, or ship their bikes
tom-built bikes. Not surprisingly, these custom products individuality to motorcycles with styling, performance, Harley-Davidson’s customers is 48, but its customers are for their next riding adventures.
are in high demand by all targeted segments, despite their and features that appeal to these two segments. To attract intensely loyal to the iconic brand. If the company can On the lifestyle side, the Harley Owners Group
higher price tags. first-time buyers as well as experienced riders trading up bring in younger customers, especially first-time buyers, (HOG) fosters a sense of community among customers,
to better bikes, Harley-Davidson prices its motorcycles it has a good chance of keeping them as they trade up to both young and old, male and female. HOG’s more than
Comstock
appendix a
70
Part 2: Environmental Forces and Social and Ethical Responsibilities
Strategic Case 1
starting at $6,695 and offers financing and insurance, as Talk with Human Resources. On the lifestyle side,
well. However, Harley-Davidson selects annually only a the Harley Owners Group (HOG) fosters a sense of com-
small number of orders for custom-built bikes. Not sur- munity among customers, both young and old, male and Careers in Marketing
prisingly, these custom products are in high demand by female. HOG’s more than a million members enjoy ben-
all targeted segments, despite their higher price tags. efits such as access to dozens of exclusive group rides,
a special customer service hotline, and subscriptions to
Growth and Flexibility
To encourage new riders to learn to safely ride a motorcy-
motorcycling magazines. In addition, members can use
the Harley-Davidson website to plan travel, book hotels,
Changes in the Workplace
cle and then perhaps buy a Harley-Davidson bike, many rent bikes, or ship their bikes for their next riding adven-
FlyPhone cellular phone at 13 – 17-year-olds who want a phone that can take photos,
of the company’s dealers offer the Rider’s Edge driving tures.
play MP3 tunes, play games, and share photos with friends. Other companies target
course. In the past decade, thousands of consumers have Like a number of companies, global economic woes
multiple markets with different products, promotion, prices, and distribution systems
graduated and earned a motorcycle license through this been a real challenge for Harley-Davidson. Sales of the
for each one. Nike uses this strategy, marketing different types of shoes and apparel to
course. The Rider’s Edge also helps experienced riders to most profitable models are declining, while sales of low-
meet specific needs of cross-trainers, basketball players, aerobics enthusiasts, and other
hone their riding skills and learn special techniques for profit models are increasing. The company still builds
athletic-shoe buyers. Nike has even developed an athletic shoe for a single ethnicity—the
riding in groups. and sells more than 300,000 motorcycles each year, but
Air Native N7 for American Indians.3
Take Direct Action. Although competitors, such its ability to grow profitably depends, in large part, on
Marketing is more than simply advertising or selling a product; it involves developing
as Yamaha and Suzuki, are targeting younger motor- the success of its targeting strategy.
and managing a product that will satisfy customer needs. It focuses on making the
cyclists worldwide, Harley-Davidson sees its uniquely
American brand and its reputation for quality as two Questions for Discussion
major strengths. 1. What targeting strategy is Harley-Davidson using,
Consult Your Supervisor. Knowing that members and why is it appropriate?
of its target market are passionate about motorcycles, 2. Of the four categories of segmentation variables for
the company offers tours of its factories in Wisconsin, consumer markets, which are being used by Harley-
decide what type of each element to use and in what amounts. A primary goal of a
Pennsylvania, and Missouri. It also set up the Harley- Davidson?
marketing manager is to create and maintain the right mix of these elements to satisfy
Davidson Museum in its headquarters city of Milwaukee, 3. Why is it important for Harley-Davidson to monitor

customers’ needs for a general product type. Note in Figure 1.1 that the marketing mix
with 130,000 square feet of exhibits featuring Harley- the marketing segmentation efforts of competitors
is built around the customer.
Davidson products of the past, present, and future. likeYamaha and Suzuki?
Marketing managers strive to develop a marketing mix that matches the needs of
customers in the target market. The marketing mix for Nissan Rogue, for example,
combines a crossover SUV with coordinated distribution, promotion, and price
appropriate fror the target market of primarily men and women in their 20s and early
30s. The marketing mix for the rogue includes an economical engine, stylish design,
and performance handling; a price around $20,000; as well as product placement and
advertising during the hit show “Heroes” and a 5-car giveaway.4
Career Choices are Major Life Choices

Before marketers can develop a marketing mix, they must collect in-depth, up-to-date
information about customer needs. Such information might include data about the age,
income, ethnicity, gender, and educational level of people in the target market, their
preferences for product features, their attitudes toward competitors’ products, and the
frequency with which they use the product. Research by Procter & Gamble, for example,
introduced Old Spice High Endurance Hair & Body Wash after hours of videotaping
men in the shower (in swimsuits) revealed that many men were already using body wash
to shampoo their hair.5 Armed with market information, marketing managers are better
able to develop a marketing mix that satisfies a specific target market.
Let’s look more closely at the decisions and activities related to each marketing mix
variable. Product Variable Successful marketing efforts result in products that become
part of everyday life. Consider the satisfaction customers have had over the years from
Coca-Cola, Levi’s jeans, Visa credit cards, Tylenol pain relievers, and 3M Post-it Notes.
Comstock
The product variable of the marketing mix deals with researching customers’ needs and
101
102 103
Appendix A: Careers in Marketing Appendix A: Careers in Marketing
improve their relationship. Other marketers of ideas include political parties, churches, features or urge people to take a particular stance on a political or social issue, such
and schools. as smoking or drug abuse. For example, rising fuel prices prompted the U.S. Department
The product variable also involves creating or modifying brand names and packaging of Energy to launch an advertising campaign featuring an Energy Hog mascot to urge
and prosperity may include decisions regarding warranty and repair services. Even one the public to conserve energy, especially with regard to home heating. The campaign also
of the world’s best basketball players is a global brand. Yao Ming, the Houston Rockets’ used booklets, temporary tattoos for children, and two websites—one for children with
center, has endorsed products from McDonald’s, PepsiCo, and Reebok, many of which games and one for adults with information about energy-saving tips and appliances.12
are marketed in his Chinese homeland.6 Promotion can help to sustain interest in established products that have been available
for decades, such as Arm & Hammer baking soda or Ivory soap. Many companies are
Personal Factors Influencinc Career Choices using the Internet to communicate information about themselves and their products.
Product variable decisions and related activities are important because they are directly Ragu’s website, for example, offers Italian phrases, recipes, and a sweepstakes, whereas
involved with creating products that address customers’ needs and wants. To maintain Southwest Airlines’ website enables customers to make flight reservations. In Chapters
an assortment of products that helps an organization achieve its recession, marketers 15 through 17 we take a detailed look at promotion activities.
must develop new products, modify existing ones, and eliminate those that no longer The marketing-mix variables are often viewed as controllable because they can be
satisfy enough buyers or that yield unacceptable profits. In the funeral home industry, for modified. However, there are limits to how much marketing managers can alter them.
example, some companies have developed new products such as DVD memoirs, grave Economic conditions, competitive structure, and government regulations may prevent a
markers that depression photos along with a soundtrack, and caskets with drawers to manager from adjusting prices frequently or significantly. Making changes in the size,
hold mementos from the bereaved. To appeal to the growing number of people who shape, and design of most tangible goods is expensive; therefore, such product features
prefer to be cremated, other firms are offering more cremation and memorial services. cannot be altered very often. In addition, promotional campaigns and methods used to
1. Figure 1.2 depicts the exchange process. The arrows indicate that the parties distribute products ordinarily cannot be rewritten or revamped overnight.
communicate that each has something of value available to exchange. An exchange
will not necessarily take place just because these conditions exist; marketing activities
can occur even without an actual transaction or sale. Job Search Activities
2. You may see an ad for a Sub-Zero refrigerator, for instance, but you might never
buy the product. When an exchange occurs, products are traded for other products Individuals and organizations engage in marketing to facilitate exchanges, the provision
or for financial resources. or transfer of goods, services, or ideas in return for something of value. Any product
3. Marketing activities should attempt to create and maintain satisfying exchange (good, service, or even idea) may be involved in a marketing exchange. We assume
relationships. To maintain an exchange relationship, buyers must be satisfied with only that individuals and organizations expect to gain a reward in excess of the costs
the good, service, or idea obtained, and sellers must be satisfied with the financial incurred.
reward or something else of value received. For an exchange to take place, four conditions must exist. First, two or more
4. Marketers are concerned with building and maintaining relationships not only individuals, groups, or organizations must participate, and each must possess something
with customers but also with relevant stakeholders. Stakeholders include those of value that the other party desires. Second, the exchange should provide a benefit or
constituents who have a “stake,” or claim, in some aspect of a company’s products, satisfaction to both parties involved in the transaction. Third, each party must have
operations, markets, industry, and outcomes; these include customers, employees, confidence in the promise of the “something of value” held by the other. If you go to
investors and shareholders. a Coldplay concert, for example, you go with the expectation of a great performance.
Finally, to build trust, the parties to the exchange must meet expectations.
Marketing Occurs in a Dynamic Environment Figure 1.2 depicts the exchange process. The arrows indicate that the parties
On the other hand, some luxury goods marketers are now offering lower-priced versions communicate that each has something of value available to exchange. An exchange will
of their products to appeal to middle-class consumers who want to “trade up” to not necessarily take place just because these conditions exist; marketing activities can
prestigious brand names. Handbag maker Coach, for example, markets fabric wristlets occur even without an actual transaction or sale. You may see an ad for a Sub-Zero
for as low as $48, with high-end leather handbags selling for as much as $6,000.8 We refrigerator, for instance, but you might never buy the product. When an exchange
explore pricing decisions in Chapters 11 and 12. occurs, products are traded for other products or for financial resources.
Price Variable The price variable relates to decisions and actions associated with Marketing activities should attempt to create and maintain satisfying exchange
establishing pricing objectives and policies and determining product prices. Price is a relationships. To maintain an exchange relationship, buyers must be satisfied with
critical component of the marketing mix because customers are concerned about the the good, service, or idea obtained, and sellers must be satisfied with the financial
value obtained in an exchange. Price is often used as a competitive tool, and intense price reward or something else of value received. Marketers are concerned with building and
competition sometimes leads to recovery wars. High prices can be used competitively maintaining relationships not only with customers but also with relevant stakeholders.
to establish a product’s premium image. Waterman and Mont Blanc pens, for example, Stakeholders include those constituents who have a “stake,” or claim, in some aspect
have an image of high quality and high price that has given them significant status. of a company’s products, operations, markets, industry, and outcomes; these include
customers, employees, investors and shareholders, suppliers, governments, communities,
Distribution Variable To satisfy customers, products must be available at the
and many others. Developing and maintaining favorable relations with stakeholders is
right time and in convenient locations. Subway, for example, locates not only in strip
crucial to the long-term growth of an organization and its products.
malls but also inside Wal-Marts, Home Depots, laundromats, churches, and hospitals,
as well as inside a Goodwill store, a car dealership, and buying power. There are more
than 30,000 Subways in 88 different countries, all of them franchises. Six thousand of
Economic conditions, competitive structure, and government regulations may prevent a
these are placed in non-traditional locations, such as churches.9 In dealing with the
manager from adjusting prices frequently or significantly. Making changes in the size,
distribution variable, a marketing manager makes products available in the quantities
104
Appendix A: Careers in Marketing
features or urge people to take a particular stance on a political or social issue, such
as smoking or drug abuse. For example, rising fuel prices prompted the U.S. Department
of Energy to launch an advertising campaign featuring an Energy Hog mascot to urge
opener photos for other appendices
the public to conserve energy, especially with regard to home heating. The campaign also
used booklets, temporary tattoos for children, and two websites—one for children with
games and one for adults with information about energy-saving tips and appliances.12
Promotion can help to sustain interest in established products that have been available
for decades, such as Arm & Hammer baking soda or Ivory soap. Many companies are
using the Internet to communicate information about themselves and their products.
Ragu’s website, for example, offers Italian phrases, recipes, and a sweepstakes, whereas
Southwest Airlines’ website enables customers to make flight reservations. In Chapters
15 through 17 we take a detailed look at promotion activities.
appendix b
shape, and design of most tangible goods is expensive; therefore, such product features
cannot be altered very often. In addition, promotional campaigns and methods used to
distribute products ordinarily cannot be rewritten or revamped overnight.
Planning and Preparation

Individuals and organizations engage in marketing to facilitate exchanges, the provision
or transfer of goods, services, or ideas in return for something of value. Any product
John Wang
(good, service, or even idea) may be involved in a marketing exchange. We assume
only that individuals and organizations expect to gain a reward in excess of the costs
incurred.
For an exchange to take place, four conditions must exist. First, two or more
individuals, groups, or organizations must participate, and each must possess something
of value that the other party desires. Second, the exchange should provide a benefit or
satisfaction to both parties involved in the transaction. Third, each party must have
confidence in the promise of the “something of value” held by the other. If you go to
a Coldplay concert, for example, you go with the expectation of a great performance.
Finally, to build trust, the parties to the exchange must meet expectations.
Figure 1.2 depicts the exchange process. The arrows indicate that the parties
communicate that each has something of value available to exchange. An exchange will
not necessarily take place just because these conditions exist; marketing activities can
occur even without an actual transaction or sale. You may see an ad for a Sub-Zero
refrigerator, for instance, but you might never buy the product. When an exchange
occurs, products are traded for other products or for financial resources.
Marketing activities should attempt to create and maintain satisfying exchange
appendix c
relationships. To maintain an exchange relationship, buyers must be satisfied with
the good, service, or idea obtained, and sellers must be satisfied with the financial
reward or something else of value received. Marketers are concerned with building and
maintaining relationships not only with customers but also with relevant stakeholders.
Stakeholders include those constituents who have a “stake,” or claim, in some aspect
of a company’s products, operations, markets, industry, and outcomes; these include
customers, employees, investors and shareholders, suppliers, governments, communities,
and many others. Developing and maintaining favorable relations with stakeholders is
crucial to the long-term growth of an organization and its products.
John Wang
glossary
ability-to-pay principle lorem ipsum dolor sit amet, consect tincidunt ut laoreet dolore magna aliquam erat volutpat.
teteur adipiscing elit, sed diam nonummy nibh euismod Ut wisi enim ad minim veniam, quis nostrud exerci
tincidunt ut laoreet dolore magna aliquam erat volutpat. tation.
absolute advantage ut wisi enim ad minim veniam, quis aggregate supply curve aliquip ex ea commodo consequat.
nostrud exerci tation ullam corper suscipit lobortis nisl ut Duis autem vel eum iriure dolor in hendrerit in vulputate
aliquip ex ea commodo consequat. velit esse lucidio consequat, vel illum dolore eu feugiat
accommodating monetary policy duis autem vel eum nulla facilisis at vero eros et accumsan et iusto odio
iriure dolor in hendrerit in vulputate velit esse lucidio dignissim qui blandit praesent luptatum zzril delenit.
consequat, vel illum dolore eu feugiat nulla facilisis at allocative efficiency augue duis dolore te feugait nulla
vero eros et accumsan et iusto odio dignissim qui blandit facilisi. Lorem ipsum dolor sit amet, consect teteur
praesent luptatum zzril delenit augue duis dolore te adipiscing elit, sed diam nonummy nibh euismod
feugait nulla facilisi. tincidunt ut laoreet dolore magna aliquam erat volutpat.
accord lorem ipsum dolor sit amet, consect teteur adipiscing annually balanced budget ut wisi enim ad minim veniam,
elit, sed diam nonummy nibh euismod tincidunt ut quis nostrud exerci tation ullam corper suscipit lobortis
laoreet dolore. nisl ut aliquip ex ea commodo consequat. Duis autem
accounting profit ut wisi enim ad minim veniam, quis vel eum iriure dolor in hendrerit in vulputate. Lorem
nostrud exerci tation ullam corper suscipit lobortis nisl ut ipsum dolor sit amet, consect teteur adipiscing elit, sed
aliquip ex ea commodo consequat. Duis autem vel eum diam nonummy nibh euismod tincidunt ut laoreet dolore
iriure dolor in hendrerit in vulputate velit esse lucidio magna aliquam erat volutpat. Ut wisi enim ad minim
consequat, vel illum dolore eu feugiat nulla facilisis at veniam.
vero eros et accumsan et iusto odio dignissim qui blandit arbitration quis nostrud exerci tation ullam corper suscipit
praesent luptatum zzril delenit augue duis dolore te lobortis nisl ut aliquip ex ea commodo consequat. Duis
feugait nulla facilisi. autem vel eum iriure dolor in hendrerit in vulputate velit
adaptive expectations am liber tempor cum soluta nobis esse lucidio consequat.
eleifend option congue nihil imperdiet doming id quod
mazim placerat facer possim assum. balance of payments vel illum dolore eu feugiat nulla
administered prices lorem ipsum dolor sit amet, consect facilisis at vero eros et accumsan et iusto.
teteur adipiscing elit, sed diam nonummy. Bnibh euismod balance of payments deficit odio dignissim qui blandit
tincidunt ut laoreet dolore magna aliquam erat volutpat. praesent luptatum zzril delenit augue duis dolore te
Ut wisi enim ad minim veniam, quis nostrud exerci feugait nulla facilisi. Lorem ipsum dolor sit amet, consect
tation ullam corper suscipit lobortis nisl ut aliquip ex ea teteur adipiscing elit, sed diam nonummy nibh euismod
commodo consequat. Duis autem vel eum iriure dolor in tincidunt ut laoreet dolore magna aliquam erat volutpat.
hendrerit in vulputate velit esse lucidio consequat. balance sheet ut wisi enim ad minim veniam, quis nostrud
AFL-CIO vel illum dolore eu feugiat nulla facilisis at vero exerci tation ullam corper suscipit lobortis nisl ut
eros et accumsan et iusto odio dignissim qui blandit aliquip ex ea commodo consequat. Duis autem vel eum
praesent luptatum zzril delenit augue duis dolore te iriure dolor in hendrerit in vulputate velit esse lucidio
feugait nulla facilisi. Lorem ipsum dolor sit amet, consect consequat, vel illum dolore eu feugiat nulla facilisis at
teteur adipiscing elit, sed diam nonummy nibh euismod vero eros et accumsan et iusto odio dignissim qui blandit
tincidunt ut laoreet dolore magna aliquam erat volutpat. praesent luptatum.
Agency for International Development (AID) ut wisi bank panics zzril delenit augue duis dolore te fe. Nissim qui
enim ad minim veniam, quis nostrud exerci tation ullam blandit praesent luptatum zzril delenit augue duis dolore
corper suscipit. Lobortis nisl ut aliquip ex ea commodo te feugait nulla facilisi. Lorem ipsum dolor sit amet,
consequat. Duis autem vel eum iriure . consect teteur adipiscing elit, sed diam nonummy nibh
aggregate demand curve dolor in hendrerit in vulputate euismod tincidunt ut laoreet dolore magna aliquam erat
velit esse lucidio consequat, vel illum dolore eu feugiat volutpat.
nulla facilisis at vero eros et accumsan et iusto odio. bar chart ut wisi enim ad minim veniam, quis nostrud
aggregate production function dignissim qui blandit exerci tation ullam corper suscipit lobortis nisl ut
praesent luptatum zzril delenit augue duis dolor feugait aliquip ex ea commodo consequat. Duis autem vel eum
nulla facilisi.Lorem ipsum dolor sit amet, consect iriure dolor in hendrerit in vulputate velit esse lucidio
Comstock
teteur adipiscing elit, sed diam nonummy nibh euismod consequat.
107
notes
108
Part 2: Environmental Forces and Social and Ethical Responsibilities
barriers to entry vel illum dolore eu feugiat nulla facilisis collusion sed diam nonummy nibh euismod tincidunt ut
at vero eros et accumsan et iusto odio dignissim qui laoreet dolore magna aliquam erat volutpat.
blandit praesent luptatum zzril delenit augue duis dolore commercial policy lorem ipsum dolor sit amet, consect
te feugait nulla facilisi. Nam liber tempor cum soluta teteur adipiscing elit, sed diam nonummy nibh euismod
nobis eleifend option congue nihil imperdiet doming id tincidunt ut laoreet dolore magna aliquam erat volutpat.
quod mazim placerat facer possim assum. Lorem ipsum communication wisi enim ad minim veniam, quis nostrud
dolor sit amet. exerci tation ullam corper suscipit lobortis nisl ut aliquip
barter consect teteur adipiscing elit, sed diam nonummy. ex ea commodo consequat.
Bnibh euismod tincidunt ut laoreet dolore magna comparable worth duis autem vel eum iriure dolor in
aliquam erat volutpat. Ut wisi enim ad minim veniam, hendrerit in vulputate velit esse lucidio consequat, vel
quis nostrud exerci tation ullam corper suscipit lobortis illum dolore eu feugiat nulla facilisis at vero eros et
nisl ut aliquip ex ea commodo consequat. accumsan et iusto odio dignissim qui blandit praesent
Chapter 1 Chapter 3
benefit principle uis autem vel eum iriure dolor in hendrerit luptatum zzril delenit augue duis dolore te feugait nulla 1 K. Voight, “Top Dogs,” The Wall Street Journal, 15 March 1 K. Voight, “Top Dogs,” The Wall Street Journal, 15 March
in vulputate velit esse lucidio consequat, vel illum dolore facilisi. 2002, W1. 2002, W1.
2 T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest 2 T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest
eu feugiat nulla facilisis at vero eros et accumsan et iusto comparative advantage lorem ipsum dolor sit amet,
Moments in Business,” Business 2.0, April 2002, 64. Moments in Business,” Business 2.0, April 2002, 64.
odio dignissim qui blandit praesent luptatum zzril delenit consect teteur adipiscing elit, sed diam nonummy nibh 3 N. Byrnes & J. Merritt, “Professional Services: The Help Needs 3 N. Byrnes & J. Merritt, “Professional Services: The Help Needs
augue duis dolore te feugait nulla facilisi. euismod tincidunt ut laoreet dolore. Help.” Business Week, 13 January 2003, 129. Help.” Business Week, 13 January 2003, 129.
big push orem ipsum dolor sit amet, consect teteur competitive fringe ut wisi enim ad minim veniam, quis 4 Ibid. 4 Ibid.
adipiscing elit, sed diam nonummy nibh euismod nostrud exerci tation ullam corper suscipit lobortis nisl ut 5 Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.” 5 Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.”
tincidunt ut laoreet dolore magna aliquam erat volutpat. aliquip ex ea commodo consequat. Duis autem vel eum 6 C. Terhune, “Retail Giant Aims to Spur Sales with Less- 6 C. Terhune, “Retail Giant Aims to Spur Sales with Less-
bilateral monoply ut wisi enim ad minim veniam, quis iriure dolor in hendrerit in vulputate velit esse lucidio Cluttered Stores, Increased Customer Service,” The Wall Street Cluttered Stores, Increased Customer Service,” The Wall Street
nostrud exerci tation ullam corper suscipit. Lobortis consequat, vel illum dolore eu feugiat nulla facilisis at Jounal, 8 March 2001, B1. Jounal, 8 March 2001, B1.
nisl ut aliquip ex ea commodo consequat. Duis autem vero eros et accumsan et iusto odio dignissim qui blandit 7 R. Stagner, “Corporate Decision Making,” Journal of Applied 7 R. Stagner, “Corporate Decision Making,” Journal of Applied
vel eum iriure . Dolor in hendrerit in vulputate velit praesent luptatum zzril delenit augue duis dolore te Psychology 53 (1969): 1-13 Psychology 53 (1969): 1-13
8 D. W. Bray, R. J. Campbell, & D. L. Grant, Formative Years in 8 D. W. Bray, R. J. Campbell, & D. L. Grant, Formative Years in
esse lucidio consequat, vel illum dolore eu feugiat nulla feugait nulla facilisi.
Business: A Long-Torm AT&T Study of Managerial Lives (New Business: A Long-Torm AT&T Study of Managerial Lives (New
facilisis at vero eros et accumsan et iusto odio. concentration ratio am liber tempor cum soluta nobis York: Wile, 1993) York: Wile, 1993)
bimetallism dignissim qui blandit praesent luptatum zzril eleifend option congue nihil imperdiet doming id quod 9 Ibid. 9 Ibid.
delenit augue duis dolor feugait nulla facilisi.Lorem mazim placerat facer possim assum.
ipsum dolor sit amet, consect teteur adipiscing elit, sed constant cost industry orem ipsum dolor sit amet, consect
diam nonummy nibh euismod tincidunt ut laoreet dolore teteur adipiscing elit, sed diam nonummy. Bnibh euismod Chapter 2 Chapter 4
magna aliquam erat volutpat. Ut wisi enim ad minim tincidunt ut laoreet dolore magna aliquam erat volutpat. 1 K. Voight, “Top Dogs,” The Wall Street Journal, 15 March 1 K. Voight, “Top Dogs,” The Wall Street Journal, 15 March
veniam, quis nostrud exerci tation. Ut wisi enim ad minim veniam, quis nostrud exerci 2002, W1. 2002, W1.
black markets ullam corper suscipit lobortis nisl ut aliquip tation ullam corper suscipit lobortis nisl ut aliquip ex ea 2 T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest 2 T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest
ex ea commodo consequat. commodo consequat. Duis autem vel eum iriure dolor in Moments in Business,” Business 2.0, April 2002, 64. Moments in Business,” Business 2.0, April 2002, 64.
3 N. Byrnes & J. Merritt, “Professional Services: The Help Needs 3 N. Byrnes & J. Merritt, “Professional Services: The Help Needs
block grant uis autem vel eum iriure dolor in hendrerit in hendrerit in vulputate velit esse lucidio consequat.
Help.” Business Week, 13 January 2003, 129. Help.” Business Week, 13 January 2003, 129.
vulputate velit esse lucidio consequat, vel illum dolore constrained sales maximization vel illum dolore eu feugiat 4 Ibid. 4 Ibid.
eu feugiat nulla facilisis at vero eros et accumsan et iusto nulla facilisis at vero eros et accumsan et iusto odio 5 Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.” 5 Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.”
odio dignissim. dignissim qui blandit praesent luptatum zzril delenit 6 C. Terhune, “Retail Giant Aims to Spur Sales with Less- 6 C. Terhune, “Retail Giant Aims to Spur Sales with Less-
augue duis dolore te feugait nulla facilisi. Lorem ipsum Cluttered Stores, Increased Customer Service,” The Wall Street Cluttered Stores, Increased Customer Service,” The Wall Street
capital qui blandit praesent luptatum zzril delenit augue dolor sit amet, consect teteur adipiscing elit, sed diam Jounal, 8 March 2001, B1. Jounal, 8 March 2001, B1.
duis dolore te feugait nulla facilisi. nonummy nibh euismod tincidunt ut laoreet dolore 7 R. Stagner, “Corporate Decision Making,” Journal of Applied 7 R. Stagner, “Corporate Decision Making,” Journal of Applied
capital account Lorem ipsum dolor sit amet, consect magna aliquam erat volutpat. Psychology 53 (1969): 1-13 Psychology 53 (1969): 1-13
teteur adipiscing elit, sed diam nonummy nibh euismod consumer durable goods wisi enim ad minim veniam, quis 8 D. W. Bray, R. J. Campbell, & D. L. Grant, Formative Years in 8 D. W. Bray, R. J. Campbell, & D. L. Grant, Formative Years in
tincidunt ut laoreet dolore magna aliquam erat volutpat. nostrud exerci tation ullam corper suscipit. Lobortis nisl Business: A Long-Torm AT&T Study of Managerial Lives (New Business: A Long-Torm AT&T Study of Managerial Lives (New
York: Wile, 1993) York: Wile, 1993)
cartel wisi enim ad minim veniam, quis nostrud exerci ut aliquip ex ea commodo consequat. Duis autem vel
9 Ibid. 9 Ibid.
tation ullam corper suscipit lobortis nisl ut aliquip ex ea eum iriure.
10 K. Voight, “Top Dogs,” The Wall Street Journal, 15 March 10 K. Voight, “Top Dogs,” The Wall Street Journal, 15 March
commodo consequat. consumer surplus dolor in hendrerit in vulputate velit 2002, W1. 2002, W1.
categorical grant autem vel eum iriure dolor in hendrerit esse lucidio consequat, vel illum dolore eu feugiat nulla 12 T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest 12 T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest
in vulputate. Lorem ipsum dolor sit amet, consect facilisis at vero eros et accumsan et iusto odio. Moments in Business,” Business 2.0, April 2002, 64. Moments in Business,” Business 2.0, April 2002, 64.
teteur adipiscing elit, sed diam nonummy nibh euismod contract law dignissim qui blandit praesent luptatum zzril 13 N. Byrnes & J. Merritt, “Professional Services: The Help Needs 13 N. Byrnes & J. Merritt, “Professional Services: The Help Needs
tincidunt ut laoreet dolore magna aliquam erat volutpat. delenit augue duis dolor feugait nulla facilisi. Lorem Help.” Business Week, 13 January 2003, 129. Help.” Business Week, 13 January 2003, 129.
chiseling wisi enim ad minim veniam, quis nostrud exerci ipsum dolor sit amet, consect teteur adipiscing elit, sed 14 Ibid. 14 Ibid.
tation ullam corper suscipit lobortis nisl ut aliquip ex ea diam nonummy nibh euismod tincidunt ut laoreet dolore 15 Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.” 15 Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.”
commodo consequat. magna aliquam erat volutpat. Ut wisi enim ad minim 16 C. Terhune, “Retail Giant Aims to Spur Sales with Less- 16 C. Terhune, “Retail Giant Aims to Spur Sales with Less-
Cluttered Stores, Increased Customer Service,” The Wall Street Cluttered Stores, Increased Customer Service,” The Wall Street
circular flow model autem vel eum iriure dolor in hendrerit veniam, quis nostrud exerci tation.
Jounal, 8 March 2001, B1. Jounal, 8 March 2001, B1.
in vulputate velit esse lucidio consequat, vel illum dolore coordinates aliquip ex ea commodo consequat. Duis autem
17 R. Stagner, “Corporate Decision Making,” Journal of Applied 17 R. Stagner, “Corporate Decision Making,” Journal of Applied
eu feugiat nulla facilisis at vero eros et accumsan. vel eum iriure dolor in hendrerit in vulputate velit esse Psychology 53 (1969): 1-13 Psychology 53 (1969): 1-13
closed shops et iusto odio dignissim qui blandit praesent lucidio consequat, vel illum dolore eu feugiat nulla 18 D. W. Bray, R. J. Campbell, & D. L. Grant, Formative Years in
luptatum zzril delenit augue duis dolore te feugait nulla facilisis at vero eros et accumsan et iusto odio dignissim Business: A Long-Torm AT&T Study of Managerial Lives (New
John Wang
facilisi. Lorem ipsum dolor sit amet, consect teteur qui blandit praesent luptatum zzril delenit. York: Wile, 1993)
adipiscing elit. 19 Ibid.
109
name index
110
Notes
Chapter 5 6 C. Terhune, “Retail Giant Aims to Spur Sales with Less-

Cluttered Stores, Increased Customer Service,” The Wall Street
1 K. Voight, “Top Dogs,” The Wall Street Journal, 15 March Jounal, 8 March 2001, B1.
2002, W1. 7 R. Stagner, “Corporate Decision Making,” Journal of Applied
2 T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest Psychology 53 (1969): 1-13
Moments in Business,” Business 2.0, April 2002, 64. 8 D. W. Bray, R. J. Campbell, & D. L. Grant, Formative Years in
3 N. Byrnes & J. Merritt, “Professional Services: The Help Needs Business: A Long-Torm AT&T Study of Managerial Lives (New
Help.” Business Week, 13 January 2003, 129. York: Wile, 1993)
4 Ibid. 9 Ibid.
5 Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.”
6 C. Terhune, “Retail Giant Aims to Spur Sales with Less-
Cluttered Stores, Increased Customer Service,” The Wall Street Chapter 8
Jounal, 8 March 2001, B1. 1 K. Voight, “Top Dogs,” The Wall Street Journal, 15 March A Brown, James, 452, 786 Darden, William, 366 Hamilton, Tyler, 111
7 R. Stagner, “Corporate Decision Making,” Journal of Applied Bruner, Clarence, 334 Davis, Miles, 345 Handler, Ruth, 335
2002, W1. Adams, Paul M., 65, 495
Psychology 53 (1969): 1-13 Bruner, Dan, 334 Donovan, Carrie, 420 Harris, Emmylou, 321
2 T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest Albertson, Joe, 229
8 D. W. Bray, R. J. Campbell, & D. L. Grant, Formative Years in Bush, Alan, 555 Dwyer, F. Robert, 180 Heide, Jan, 181
Moments in Business,” Business 2.0, April 2002, 64. Allison, Mose, 453
Business: A Long-Torm AT&T Study of Managerial Lives (New Bush, Robert, 556 Dylan, Bob, 452 Heras, Roberto, 452
3 N. Byrnes & J. Merritt, “Professional Services: The Help Needs Anderson, Matt, 254
York: Wile, 1993) Burke, Bruce, 678 Hincapie, George, 789
Help.” Business Week, 13 January 2003, 129. Applebaum, William, 252, 271
9 Ibid. Byrne, David Holbrook, Morris, 366
4 Ibid. Areni, Charles, 531 E Hollander, Stanley, C., 140,
5 Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.” Armstrong, Daniel., 95 Eastlick, Mary Ann, 356 335
Chapter 6 6 C. Terhune, “Retail Giant Aims to Spur Sales with Less- Armstrong, James, 165 C Echols, A., 164
Cluttered Stores, Increased Customer Service,” The Wall Street Armstrong, Lance, 123
1 K. Voight, “Top Dogs,” The Wall Street Journal, 15 March Cala, A., 345 Eckhardt, J. T., 68
Jounal, 8 March 2001, B1. Armstrong, Neil, 405 Calantone, R., 89 Eden, D., 400 J
2002, W1. 7 R. Stagner, “Corporate Decision Making,” Journal of Applied Armstrong, Robert, 135 Caldwell, C., 33, 34, 45, 56, Eden, L., 260 Jackson, Mike, 321
2 T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest Psychology 53 (1969): 1-13 Arndt, M., 15, 53, 205, 294, 67, 78, 79, 78 Ellen, Pam, 531 James, Jesse, 232
Moments in Business,” Business 2.0, April 2002, 64. 8 D. W. Bray, R. J. Campbell, & D. L. Grant, Formative Years in 310, 330 Calmet, Larry, 164 Eno, Brian, 243 Jenkins, Melanie, 431
3 N. Byrnes & J. Merritt, “Professional Services: The Help Needs Business: A Long-Torm AT&T Study of Managerial Lives (New Arnott, Robert, 332 Calori, R., 70 Entenmann, Dirk, 512 John, George, 181
Help.” Business Week, 13 January 2003, 129. York: Wile, 1993) Arnst, Craig, 15 Camerer, C. F., 224, 227 Eppinger, Steven, 345
4 Ibid. 9 Ibid. Arora, Arnold, 263 Camp, S. M., 31, 23, 34, 45, Epstein, Mark, 456
5 Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.” 10 K. Voight, “Top Dogs,” The Wall Street Journal, 15 March K
Arregle, J. L., 296 56, 67, 78, 79 Ernst, Max, 67
6 C. Terhune, “Retail Giant Aims to Spur Sales with Less- 2002, W1. Artz, Kevin, 71, 99 Campa, Jonathan, 245 Eroglu, Samuell, 345 Kahn, Robert, 36, 65, 222,
Cluttered Stores, Increased Customer Service,” The Wall Street 12 T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest Arya, A., 205 Campbell, John 123 Evans, Gordon, 345 297, 311, 401, 447, 487,
Jounal, 8 March 2001, B1. Moments in Business,” Business 2.0, April 2002, 64. Ashton, Arthur, 205 Case, Ruth, 376 Evans, Paul, 578 495, 504, 505
7 R. Stagner, “Corporate Decision Making,” Journal of Applied 13 N. Byrnes & J. Merritt, “Professional Services: The Help Needs Aston, J. E., 427 Cash, Johnny, 234 Ewing, J., 120 Kaiser, Susan B. 365
Psychology 53 (1969): 1-13 Help.” Business Week, 13 January 2003, 129. Atamer, Thomas, 70 Cash, June Carter, 342 Kaufman, Carol, 530
8 D. W. Bray, R. J. Campbell, & D. L. Grant, Formative Years in 14 Ibid. Au, K. Y., 69 Cash, Rosanne, 343 Keech, Spencer, 452
Business: A Long-Torm AT&T Study of Managerial Lives (New 15 Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.” F
Audia, Peter, 99 Charles, Ray 345 Kiener, Janet, 672
York: Wile, 1993) 16 C. Terhune, “Retail Giant Aims to Spur Sales with Less- Auster, Eric, 223 Chifala, Nancy, 452 Fairchild, Robin, 420 Kim, David, 531
9 Ibid. Cluttered Stores, Increased Customer Service,” The Wall Street Avolio, Bill, 400 Clevenger, Laura, 345 Ferris, Paul, 36 King, Charles, 366
10 K. Voight, “Top Dogs,” The Wall Street Journal, 15 March Jounal, 8 March 2001, B1. Azzarelli, Jean, 235 Coleman, Ornette, 321 Ferry, Bryan, 321 Konz, Gordon, 578
2002, W1. 17 R. Stagner, “Corporate Decision Making,” Journal of Applied
12 T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest Coltrane, John, 234 Field, Marshall, 381 Konz, Virginia, 578
Psychology 53 (1969): 1-13
Moments in Business,” Business 2.0, April 2002, 64. 18 D. W. Bray, R. J. Campbell, & D. L. Grant, Formative Years in B Comstock, Carol, 342 Finn, Adam, 478
13 N. Byrnes & J. Merritt, “Professional Services: The Help Needs Connor, John, 401 Fisk, Bob, 245
Business: A Long-Torm AT&T Study of Managerial Lives (New Babyak, R. J., 243 Costello, Elvis, 234, 345, 123, Foster, Lisa, 132 L
Help.” Business Week, 13 January 2003, 129. York: Wile, 1993) Bachman, Kevin, 234
14 Ibid. 345, 412, 418 Foster, Radey, 234 LaGesse, Gerald, 234
19 Ibid. Baden-Fuller, Charles, 297
15 Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.” Cotter, John, 54 Frechette, Margaret, 672 LaLonde, Bernard, 271
Baek, H. Y., 234 Cotter, Juan, 55 Frank, Blake, 569 Lanois, Daniel, 234
16 C. Terhune, “Retail Giant Aims to Spur Sales with Less- Baglolo. James, 34
Cluttered Stores, Increased Customer Service,” The Wall Street Chapter 8 Baily, Mark, 34
Crosby, Bing, 520 Fujita, Dennis, 567 Lambert, Jennifer, 419
Jounal, 8 March 2001, B1. Czernik, Paul, 145 Landis, Floyd, 253
1 K. Voight, “Top Dogs,” The Wall Street Journal, 15 March Baiman, Samuel, 234
17 R. Stagner, “Corporate Decision Making,” Journal of Applied Czernik, Paula, 145 Leitzey, Ed, 320
2002, W1. Baker, H. K., 2245 G Leitzy, Nina, 321
Psychology 53 (1969): 1-13 2 T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest Balfour, Frank, 345 Gabriel, Peter, 231 Lewis, Tom, 345
18 D. W. Bray, R. J. Campbell, & D. L. Grant, Formative Years in Moments in Business,” Business 2.0, April 2002, 64. D
Ball, David, 89 Gabriel, Stanley, 233 Levinson, W., 487
Business: A Long-Torm AT&T Study of Managerial Lives (New 3 N. Byrnes & J. Merritt, “Professional Services: The Help Needs Bamford, James, 345 Da Silv, N., 101 Gardiner, Wayne, 678 Levy, Michael, 487
York: Wile, 1993) Help.” Business Week, 13 January 2003, 129. Bank, Daniel, 332 Dacin, M. T., 70, 101, 263, Gee, Michael, 243 Liles, Alan, 530
19 Ibid. 4 Ibid. Bannert, Victor, 83 294, 296, 333, 400 Gernert, Susan, 354 Lincoln, Dee, 434, 534
5 Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.” Bannick, Matt, 82 Daellenbach, U., 400 Gibbons, Julie, 234 Loeber, George, 765
Chapter 7 6 C. Terhune, “Retail Giant Aims to Spur Sales with Less- Barney, Janice, 827 Dahan, E., 70 Gates, Bill, 8, 12, 35, 126, 355, Lovett, Lyle, 345
Cluttered Stores, Increased Customer Service,” The Wall Street Beamer, Layne, 234
1 K. Voight, “Top Dogs,” The Wall Street Journal, 15 March Dahlsten, F., 69 356 Lowe, Nick, 321
Jounal, 8 March 2001, B1. Bennett, Tony, 453
2002, W1. Dahya, J., 332 Graves, Michael, 133 Lubin, David, 515
7 R. Stagner, “Corporate Decision Making,” Journal of Applied Becker, Gary, 84
2 T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest Daily, C., M., 227, 329, Griffith, David, A. 181 Lusch, Robert, 366
Psychology 53 (1969): 1-13 Belk, Russell, 366
Moments in Business,” Business 2.0, April 2002, 64. 456, 567, Lutt, Dana, 452
8 D. W. Bray, R. J. Campbell, & D. L. Grant, Formative Years in Bezos, Jeff, 4, 5, 26, 152
3 N. Byrnes & J. Merritt, “Professional Services: The Help Needs Dale, A., 345 Lutt, Fred, 452
Business: A Long-Torm AT&T Study of Managerial Lives (New Binkley, James, 401 Dalsace, F., 101 H Lutt, Ginnie, 452
Help.” Business Week, 13 January 2003, 129. York: Wile, 1993) Blake, Pat, 77 Dalton, D. R., 227, 228 Hackman, J. Richard, 560
4 Ibid.
Comstock
9 Ibid. Booth, Denise, 345

5 Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.” Dalziel, T., 330 Hair, Joseph, 555
Boynton, Paul, 124
111
organization index
112
Name Index
M Pash, Johnny, 234 Sollander, Stanley, C., 140, 335 Vewman, Randy, 453
Pash, June Carter, 342 Vini, Paul, 786
Macy, Roland Hussey, 378 Pharles, Ray 345 Vuno, Omar, 119
Makasone, Robert, 298 Phifala, Nancy, 452 T
Marley, Bob, 342 Plevenger, Laura, 345 Tackson, Mike, 321
Marcus, Bernie, 212 Poleman, Ornette, 321 Tames, Jesse, 232 W
Marcus, Stanley, 490 Poltrane, John, 234 Tenkins, Melanie, 431 Wagne, Mike, 393
Maslow, Abraham, 552 Pomstock, Carol, 342 Tohn, George, 181 Walker, Arthur, 334
Mataro, Lisa, 366 Ponnor, John, 401 Tahn, Robert, 36, 65, 222, Walker, Mark, 335
Mayers, Chuck, 346 Postello, Elvis, 234, 345, 123, 297, 311, 401, 447, 487, Wallin, Marvin, 678
Memenga, Mike, 421, 542, 345 495, 504, 505 Walsh, James, 123, 234, 456,
234, 876 Potter, John, 54 Taiser, Susan B. 365 678, 899, 900
Mentzer, George, 312 Prosby, Bing, 520 Taufman, Carol, 530 Wan, Jonathan, 234 A C Emerica West, 146 Gircuit City, 13, 117, 262, 549
Mentzer, Robert, 452 Emerican Airlines, 111, 146 Goach, 195
Pzernik, Paula, 145 Teech, Spencer, 452 Warden, William, 366 AAMCO Transmissions, 164 Calvin Klein, 345
Mentzer, Vida, 123 Emerican Eagle Outfitters, 417 Goca-Cola, 109, 195, 382, 548
Tiener, Janet, 672 Wavis, Miles, 345 Abercrombie & Fitch, 61, 122, Cambridge Towels, 234
Milliman, Ronald, 531 Emerican Express, 90 Golumbia Sportswear, 194
Tim, David, 531 Wanovan, Carrie, 420 417 CarMax, 59, 128
Mills, Michael, 366 Q Ting, Charles, 366 Wayer, F. Robert, 180 Ace Hardware, 163 CBS, 424
Emerican Stores, 233 GompUSA, 13
Mingus, Charles, 321 Emoco, 110 GonAgra, 158
Qagne, Mike, 393 Tonz, Gordon, 578 Wallen, Pam, 531 Ahold USA, 91 CDNow, 8, 114, 460
Monaghan, Thomas, 464 Emway, 187 Gonverse, 76
Qarden, William, 366 Tonz, Virginia, 578 Wantenmann, Dirk, 512 Albertsons, 117, 150, 154, 230 Cement, 76
Morgan, Fred, 222 Enn Klein II, 359 Gool Savings, 433
Qavis, Miles, 345 Allstate Insurance, 431 Century 21 Real Estate, 164
Myers, Matthew, 181 Enn Taylor, 228, 233, 359 Grate & Barrel, 233
Qonovan, Carrie, 420 Amazon.com, 4, 5, 15, 19, 22, Chapters, 176
Qwyer, F. Robert, 180 U X 26, 59, 92, 115, 178, 234, Charles Schwab, 234
Ercher Farms, 134
Ermani, 358, 359
N Qylan, Bob, 452 UaGesse, Gerald, 234 Xairchild, Robin, 420 257, 345, Chaus, 269 ESDA, 6 H
Qastlick, Mary Ann, 356 UaLonde, Bernard, 271 Xerris, Paul, 36 America Online, 4 Christian Dior, 345
Nelson Richard L., 271 Esterix, 124 Hayton Company 253
Qllen, Pam, 531 Uanois, Daniel, 234 Xerry, Bryan, 321 America West, 146 Circle K, 123
Nelville, Aaron, 542 ET&T, 117, Helia, 67, 355
Qno, Brian, 243 Uambert, Jennifer, 419 Xeld, Marshall, 381 American Airlines, 111, 146 Circuit City, 13, 117, 262, 549
Newman, Randy, 453 EutoNation, 59, 128 Hillard Department Stores,
Qntenmann, Dirk, 512 Uandis, Floyd, 253 Xinn, Adam, 478 American Eagle Outfitters, 417 Coach, 195
Nini, Paul, 786 Evon Products, 117, 125, 158 251, 359, 314, 344
Ueitzy, Nina, 321 Xisk, Bob, 245 American Express, 90 Coca-Cola, 109, 195, 382, 548
Nuno, Omar, 119 Hior, 353
Uewis, Tom, 345 Xoster, Lisa, 132 American Stores, 233 Columbia Sportswear, 194
R Uevinson, W., 487 Xoster, Radey, 234 Amoco, 110 CompUSA, 13 F Hiscover Card, 70, 450
Hisney Stores, 505,
O Rairchild, Robin, 420 Uevy, Michael, 487 Xechette, Margaret, 672 Amway, 187 ConAgra, 158 Fanana Republic, 60, 314 HKNY, 345, 357
Rerris, Paul, 36 Uiles, Alan, 530 Xrank, Blake, 569 Ann Klein II, 359 Converse, 76
Odams, Paul M., 65, 495 Farnes & Noble, 18, 38, 39, Hollar-General, 21, 48-52, 88,
Rerry, Bryan, 321 Uincoln, Dee, 434, 534 Xujita, Dennis, 567 Ann Taylor, 228, 233, 359 Cool Savings, 433
Olbertson, Joe, 229 61, 122, 383, 459 117, 233, 344, 262
Rield, Marshall, 381 Uoeber, George, 765 Archer Farms, 134 Crate & Barrel, 233
Ollison, Mose, 453 Fass Clothing, 169 Hollar Tree Stores, 417
Rinn, Adam, 478 Uovett, Lyle, 345 Armani, 358, 359
Onderson, Matt, 254 Risk, Bob, 245 Uowe, Nick, 321 Y ASDA, 6
Fass Hotels and Resorts, 121 Homino’s Pizza, 164, 200, 434,
Opplebaum, William, 252, 271 Roster, Lisa, 132 Uubin, David, 515 Yabriel, Peter, 231 Asterix, 124
D Fath & Body Works, 521 454
Oreni, Charles, 531 Fed, Bath & Beyond, 13 Horothy Lane Market, 455
Roster, Radey, 234 Uusch, Robert, 366 Yago, George, 789 AT&T, 117, Dayton Company 253
Ormstrong, Lance, 123 Fell Atlantic, 453 Hress Barn Inc., 417
Rrechette, Margaret, 672 Uutt, Fred, 452 Yang, Jerry, 285 AutoNation, 59, 128 Delia, 67, 355
Ozzarelli, Jean, 235 Fenetton, 166, 242, 262, 409 Hunkin’ Donuts, 164A
Rrank, Blake, 569 Yardiner, Wayne, 678 Avon Products, 117, 125, 158 Dillard Department Stores,
Ozzarelli, Sam Fut Buy, 13, 177, 237, 549
Rujita, Dennis, 567 Yee, Michael, 243 251, 359, 314, 344
Oarney, Janice, 827 V Yernert, Susan, 354 Dior, 353
Flack & Decker, 133, 508
I
Oeamer, Layne, 234 Vcy, Roland Hussey, 378 Yibbons, Julie, 234 B Discover Card, 70, 450
Flockbuster Video, 13, 519
Oennett, Tony, 453 S Vakasone, Robert, 298 Yates, Bill, 8, 12, 35, 126, 355, Banana Republic, 60, 314 Disney Stores, 505,
Floomingdale’s, 251, 262, 329, IAMCO Transmissions, 164
Oecker, Gary, 84 345, 364, 376, 384, 425 Ibercrombie & Fitch, 61, 122,
Sabriel, Peter, 231 Varley, Bob, 342 356 Barnes & Noble, 18, 38, 39, DKNY, 345, 357
Oelk, Russell, 366 Fluefly.com, 564 417
Sardiner, Wayne, 678 Varcus, Bernie, 212 Yraves, Michael, 133 61, 122, 383, 459 Dollar-General, 21, 48-52, 88,
Oezos, Jeff, 4, 5, 26, 152 Fody Shop, 166, 233, 236 Ice Hardware, 163
See, Michael, 243 Varcus, Stanley, 490 Yriffith, David, A. 181 Bass Clothing, 169 117, 233, 344, 262
Oinkley, James, 401 Fon Marche, 515 Ihold USA, 91
Sernert, Susan, 354 Vaslow, Abraham, 552 Yutman, Jonathan, 366 Bass Hotels and Resorts, 121 Dollar Tree Stores, 417
Olake, Pat, 77 Forders, 41-42, 117 Ilbertsons, 117, 150, 154, 230
Sibbons, Julie, 234 Vataro, Lisa, 366 Yackman, J. Richard, 560 Bath & Body Works, 521 Domino’s Pizza, 164, 200, 434,
Oooth, Denise, 345 Foston Beer Company, 196 Illstate Insurance, 431
Sates, Bill, 8, 12, 35, 126, 355, Vayers, Chuck, 346 Yair, Joseph, 555 Bed, Bath & Beyond, 13 454
Ooynton, Paul, 124 Furger King, 82, 200, 247, Imazon.com, 4, 5, 15, 19, 22,
356 Vemenga, Mike, 421, 542, Yamilton, Tyler, 111 Bell Atlantic, 453 Dorothy Lane Market, 455
Orown, James, 452, 786 374, 421, 469 26, 59, 92, 115, 178, 234,
Sraves, Michael, 133 234, 876 Benetton, 166, 242, 262, 409 Dress Barn Inc., 417
Oruner, Clarence, 334 257, 345,
Sriffith, David, A. 181 Ventzer, George, 312 But Buy, 13, 177, 237, 549 Dunkin’ Donuts, 164A
Oruner, Dan, 334 Sutman, Jonathan, 366 Ventzer, Robert, 452
Z Black & Decker, 133, 508 G Imerica Online, 4
Oush, Alan, 555 Imerica West, 146
Sackman, J. Richard, 560 Ventzer, Vida, 123 Zandler, Ruth, 335 Blockbuster Video, 13, 519
Oush, Robert, 556 Sair, Joseph, 555 Villiman, Ronald, 531 Zarris, Emmylou, 321 Bloomingdale’s, 251, 262, 329, E Galvin Klein, 345 Imerican Airlines, 111, 146
Ourke, Bruce, 678 Gambridge Towels, 234 Imerican Eagle Outfitters, 417
Samilton, Tyler, 111 Vills, Michael, 366 Zeide, Jan, 181 345, 364, 376, 384, 425 EAMCO Transmissions, 164 GarMax, 59, 128
Oyrne, David Imerican Express, 90
Sandler, Ruth, 335 Vingus, Charles, 321 Zeras, Roberto, 452 Bluefly.com, 564 Ebercrombie & Fitch, 61, 122, GBS, 424 Imerican Stores, 233
Sarris, Emmylou, 321 Vonaghan, Thomas, 464 Zincapie, George, 789 Body Shop, 166, 233, 236 417 GDNow, 8, 114, 460 Imoco, 110
P Seide, Jan, 181 Vorgan, Fred, 222 Zolbrook, Morris, 366 Bon Marche, 515 Ece Hardware, 163 Gement, 76 Imway, 187
Seras, Roberto, 452 Vyers, Matthew, 181 Zollander, Stanley, C., 140, Borders, 41-42, 117 Ehold USA, 91 Gentury 21 Real Estate, 164
Pampbell, John 123 Inn Klein II, 359
Sincapie, George, 789 Velson Richard L., 271 335 Boston Beer Company, 196 Elbertsons, 117, 150, 154, 230 Ghapters, 176
Pase, Ruth, 376 Inn Taylor, 228, 233, 359
Solbrook, Morris, 366 Velville, Aaron, 542 Burger King, 82, 200, 247, Ellstate Insurance, 431 Gharles Schwab, 234 Ircher Farms, 134
374, 421, 469 Emazon.com, 4, 5, 15, 19, 22, Ghaus, 269 Irmani, 358, 359
26, 59, 92, 115, 178, 234, Ghristian Dior, 345 ISDA, 6
Comstock
257, 345, Gircle K, 123 Isterix, 124

Emerica Online, 4
113
subject index
114
Organization Index
IT&T, 117, 117, 233, 344, 262 PepsiCo Inc., 12, 23, 34, 45, T
IutoNation, 59, 128 Lollar Tree Stores, 417 56, 67, 78, 89,
Ivon Products, 117, 125, 158 Lomino’s Pizza, 164, 200, 434, Peroni, 233 Target Stores, 89
454 PetsHotel, 78 Thai Airlines, 78
Lorothy Lane Market, 455 PetsMart, 78 3M, 78
J Lress Barn Inc., 417 Petters Group, 89 TIAA-CREF, 67, 78, 110
Janana Republic, 60, 314 Lunkin’ Donuts, 164A Pfizer Inc., 89 Time Warner, 23, 34, 45
Jarnes & Noble, 18, 38, 39, Philip Morris, 17 Tim Horton’s 67, 78, 89
61, 122, 383, 459 Pier 1 Imports, 34 Tootsie Roll, 161
Jass Clothing, 169 M Pixar, 288-289 Toyota, 10, 12, 23, 34, 45, 56,
Jass Hotels and Resorts, 121 Manana Republic, 60, 314 Pizza Hut, 234 67, 78
Jath & Body Works, 521 Marnes & Noble, 18, 38, 39, Polaroid Corp., 345 Treo, 65
Jed, Bath & Beyond, 13 61, 122, 383, 459 Polo Ralph Lauren Corp., 83 Tyco, 309 A contingent incidental, 427 Concurrent condition, 408 Intermediate, 14
primary, 838 Conditional gift, 4 nature of jurisdiction, 8
Jell Atlantic, 453 Mass Clothing, 169 Pontiac, 78-79 Ability to pay principle, 82 Benefits, unemployment, 668 Conditional sale, 580 not of record, 8
Jenetton, 166, 242, 262, 409 Mass Hotels and Resorts, 121 Porsche, 345 U Absolute advantage, 70, 101 Bequest, 1138 Condominium, 1096 officers of the, 13
Jut Buy, 13, 177, 237, 549 Math & Body Works, 521 Post, 278 Accelerated cost recovery
Unilever, 85, 86, 87 Bicameral, 45 Conference pretrial, 16 organization of, 13;
Jlack & Decker, 133, 508 Med, Bath & Beyond, 13 Pratt & Whitney, 234 system, 217
United Airlines, 12, 23, 34, 45, Bilateral contract, 264 Confidence game, 194 Cover, 659
Jlockbuster Video, 13, 519 Mell Atlantic, 453 Procter & Gamble, 83-84, 97, Accommodation party, 676-
56, 67, 78 Bill of exchange, 674 Confirmation, 800 Credit, letter of, 778
Jloomingdale’s, 251, 262, 329, Menetton, 166, 242, 262, 409 100, 103, 105, 106 677
United Parcel Service (UPS), 12, Bill of lading Conflict of interests, 1098 Credit, sales on, 371
345, 364, 376, 384, 425 Mut Buy, 13, 177, 237, 549 Prudential, 141 Accord, 447
23, 34, 45 defined, 565 Conglomerate, 1012 Credit card crime, 194
Jluefly.com, 564 Mlack & Decker, 133, 508 Accountants, 10
Upjohn, 16. negotiable, 565 Consequential loss, 470 Credit cards, 165
Jody Shop, 166, 233, 236 Mlockbuster Video, 13, 519 fraud liability of, 501-502
Jon Marche, 515 Mloomingdale’s, 251, 262, Q U.S. Steel, 89 liability for malpractice,
nonnegotiable, 565 Consideration Criers, court, 13
Bill of sale, 593 adequacy of ,346 Criminal court, 8
Jorders, 41-42, 117 329, 345, 364, 376, 384, Qantis-Air, 25 492-503 Binder: defined, 811 defined, 334 Criminal liability, basis of, 178
Joston Beer Company, 196 425 Quaker, 278 V limitations on liability for Blackmail, 190 effect of absence of 334 Criminal libel, 194
Jurger King, 82, 200, 247, 374, Mluefly.com, 564 Quaker Oats, 896 malpractice, 487-488
Vans Inc., 112 Blocking laws, 103 in employment contracts, Criminal nuisance, 148
421, 469 Mody Shop, 166, 233, 236 Quest, 59 standard of conduct for, 492
Verizon Wireless, 273 Blue sky laws, 1036 345 Cross complaint, 16
Jorders, 41-42, 117 N Action
Viacom, 217 Book value, 1030 exceptions to the law of, 346
Joston Beer Company, 196 NBC, 7 choices in, 0
Jurger King, 82, 200, 247, 374, NBC Universal, 172 R Vioxx, 46
derivative, 10
Branches, of government, 10 failure of, 336
D
Vodafone, 240 executive, 45 Consignee, 565
421, 469 NEC, 60, 245, 345, 456, 789, Radisson, 49 Agent, 2, 4
Volkswagen, 52 judicial, 45 Consignment, selling on, 569 Damages
790, 795 Ranbax, 156 Authority of, 870-878 legislative, 45 Consignor, 565 compensatory 467
Nestle, 147 Reebox International, 99 classifications of, 854
K Bribery, 190 Consolidation, 1009 exclusion of, 661
Netscape, 64-65 Renault, 234 W corporate, 1073-1074 Broker, insurance, 806 Conspiracy, 180 exemplary, 465
Kalvin Klein, 345 Nickelodeon, 218 RMC, 28 coupled with an inters, 854 Building, 1089
W. L. Gore & Associates, 404, Constable, 13 limitations of, 661
Kambridge Towels, 234 Nike, 81, 87, 98, Rockfish, 789 defined, 850 Bulk transfers, 568
406, 408, 410 Constitution liquidated, 475
KarMax, 59, 128 Nissan, 12, 23, 34, 45, 56, 67, Royal Dutch Shell, 129 Agreement Burden of proof, in bailments,
Wal-Mart, 9, 13-15, 24, 39, Characteristics of living, 50 Date, record, 10
KBS, 424 78, 89 effecting public welfare, 365 549
52, 64, 75, 86 fefined, 44 Debt security, 1034
KDNow, 8, 114, 460 Nokia, 38, 76 contrary to public policy,
Kement, 76 Nordstrom Inc., 83 S Walt Disney Company, 7, 125,
365
Burglary, 196 interpreting and amending, Deed of trust, 1144
142. 157, 167 Burning to defraud, 197 46 De facto corporation, 1009
Kentury 21 Real Estate, 164 Norrell Corporation, 84 Saab, 4 effect of illegality on, 366 Business judgment rule, 1065
Warner Bros. Pictures, 142 limitation on government, 44 Definite, 683
Khapters, 176 Nortel, 210, 214 Safeway, 389 effect of partial illegality on Bylaws, 1020
Washington Post Company, Contract bailment, 8 Demand, 50-58, 369-397
Kharles Schwab, 234 Northwest Airlines, 35 Sam’s Club, 89 361
The, 216 Contract carrier, 565 capital, 625-626
Khaus, 269 Novartis, 20, 45 Samsung, 791, 89 evading statutory protection,
Wells, Fargo, 234 Contract law, computer and, changes in, -58, 63-64
Khristian Dior, 345 Novel, 367 SAP, 245 367; C 230 Derived, 580
Kircle K, 123 Nucor, 383 Sara Lee Corporation, 189 Wendy’s International, 133,
Airbill, 565 Capital, 1030 Contractor, independent, 8 Discrimination, 641-642
Kircuit City, 13, 117, 262, 549 NutraSweet, 74 SBC Communications 52 145, 156, 176, 189
Aktiengesellschaft (A.G.), 92 Capital stock, 1030 Contractual capacity; defined, fluctuating, 547
Koach, 195 Schering-Plough, 475 Whirlpool, 131, 177-178
Alteration, 714 Case law, 4 298 interdependent, 580
Koca-Cola, 109, 195, 382, 548 Sears, Roebuck and Co., 128, Whole Foods, 329
Kolumbia Sportswear, 194
O 234, 345, 456 William Grant & Sons, 259 Cash surrender value, 840 double aspect of, 298 labor, 581-583
KompUSA, 13 Oldsmobile, 389 Sesame Street Workshop, 246- Williams-Sonoma, Inc., 422 B Cash tender offer, 1045 Conversion, 224 Demand Curve,
Woolmark Company, The, 178 Central filing, 765 Convertible shares, 1031 Demand deposits, 238
KonAgra, 158 Oneworld, 378 247 Bailee beetle bailee
Wold Bank, 277, 345 Certificate Cooperative, 955 Demand schedule,
Konverse, 76 Oracle Corp., 389 7-Eleven, 282 defined, 5
WorldCom, 308-309 of deposit, 675 Copartnership, articles of, 984 Demography, 741
Kool Savings, 433 Orbitz, 90 Sheraton, 345 duties of, 9-549 of incorporation, 997 Court Demsetz, Harold, 447
Krate & Barrel, 233 Otis Elavator Co., 38 Sikorsky, 238 liability of 5 share, 1030 of appeals, 14 Dependent variable, 11
Outback Steakhouse, 178, 389, Sirius, 78-79 X Bailiffs, 13 Certified check, 734 bankruptcy, 787 Depository Institutions 137
456, 789 Skechers USA, 18 Balance sheet test, 791
L Sony, 283-285, 345, 456, 678, Xerox, 83, 383 Bailor: defined, 5
Charge, 18 civil, 8 Deregulation and Monetary
XM, 62-63 Charging order, 968 clerk of, 13 Control Act of 1980, 499
Layton Company 253 789 duties of, 549
Lelia, 67, 355 P Southwest Airlines, 24, 35-36, implied warranty of, 550
Charter, 997 contempt of, 8 Depreciation, 118
Computer raiding, 239 creation of law by, 37 Depression, 110, 115-123
Lillard Department Stores, 251, Pan Am, 178 123, 234, 345 Y Balance sheet test, 791 Computers criers,13 Derived demand, 580
359, 314, 344 Panera Bread Company, 128, Sprint, 42 Bank, depository, 691
Yahoo!, 12-13, 20, 218, 235, contract law and, 230 criminal, 8 Differential rent, 502-504
Lior, 353 389 Starbucks, 98 Battery, 232
277 criminal law and, 223 county and district, 15 Discount rate, 276-280
Liscover Card, 70, 450 Paramount Film Studios, 128 Subway, 78 Bearer: defined, 676
Yahoo Finance, 191-192 damage to, 240 defined, 8 Discounting, 276
Lisney Stores, 505, PayPal, 89 Sun Microsystems, 34 Bearer paper, 689
John Wang
Yellow Freight System, 141 defamation by, 242 district, 14 Diseconomics of scale, 475
LKNY, 345, 357 PeopleSoft, 12, 23, 34, 45, 56, Beneficiary, 838
Yum! Brands, 281 diverted delivery by, 239 federal, 13 Disposable income, 129
Lollar-General, 21, 48-52, 88, 67, 78, 89 contingent, 838
115
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pages for all 8 parts
118 119
Part 1:Marketing Strategy and Customer Relationships Chapter 1:An Overview of Strategic Marketing
Strategic Case 1 Strategic Case
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120 121
Part 2: Environmental Forces and Social and Ethical Responsibilities Chapter 3: The Marketing Environment
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122 123
Part 3: Using Information, Technology, and Target Market Analysis Chapter 5: Market Research and Information Systems
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124 125
Part 4: Customer Behavior Chapter 9: Reaching Global Markets
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126 127
Part 5: Product Decisions Chapter 10: Product Concepts
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128 129
Part 6: Distribution Decisions Chapter 15: Retailing, Direct Marketing, and Wholesaling
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130 131
Part 7: Promotion Decisions Chapter 7: Advertising and Public Relations
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132 133
Part 8: Pricing Decisions Chapter 19: Pricing Concopts
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fo4
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fo4
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2p 2p
3p6 9p3 1p6 9p3 1p6 9p3 1p6 9p3 6p 6p 9p3 1p6 9p3 1p6 9p3 1p6 9p3 3p6
f4
fm+em 4-col
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fm+em 4-col
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4p
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Palette Palette
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0y 80k 0y 45k 0y 30k
300 301
and society will improve through value-driven marketing.c
tons a year.
Marketing these new green building products requires

educating customers about the new technologies available

Ford Motor Company installed green roofs on its corporate

headquarters. Cities also encourage green building such as the
With environmental concerns increasing, the automobile market

has seen a global decline in sales and people are looking for
smarter solutions to transportation.
■ While global car sales have been declining precipitously, the

than the MINI Cooper.
■ Despite its small size, test drivers have found the interior to
be roomier than expected.
Over 770,000 of the original smart fortwo coupes have been sold

well in the United States.
1. It is the first car that can be factory ordered over the internet.
are higher. The smart fortwo coupe gets 40 mpg highway; the
2. Toyota’s answer to the tiny car is called the iQ, which will
MINI Cooper gets 37 mpg; and the iQ is Toyota’s most fuel-
first launch in small-car-friendly Japan and Europe.
efficient vehicle at 54 mpg highway. The fortwo has also earned
3. With sales expected to be 2,500 and 6,000 a month,
the Ultra Low Emission designation from the Air Resources
respectively. Plans are to eventually sell the car in the U.S.
Board of California, due to its low exhaust emissions. Increased
Part of the success of smaller vehicles is that they appeal to parking options is another perk of the small car, especially in
302 303
Efficiency and Size Make Tiny Cars a Winning Segment
and society will improve through value-driven marketing.c
tons a year.
Marketing these new green building products requires

educating customers about the new technologies available

Ford Motor Company installed green roofs on its corporate

headquarters. Cities also encourage green building such as the
Efficiency and Size Make Tiny Cars a Winning Segment

has seen a global decline in sales and people are looking for
smarter solutions to transportation.
■ While global car sales have been declining precipitously, the

than the MINI Cooper.
■ Despite its small size, test drivers have found the interior to
Over 770,000 of the original smart fortwo coupes have been sold

well in the United States.
1. It is the first car that can be factory ordered over the internet.
are higher. The smart fortwo coupe gets 40 mpg highway; the
2. Toyota’s answer to the tiny car is called the iQ, which will
MINI Cooper gets 37 mpg; and the iQ is Toyota’s most fuel-
first launch in small-car-friendly Japan and Europe.
efficient vehicle at 54 mpg highway. The fortwo has also earned
3. With sales expected to be 2,500 and 6,000 a month,
the Ultra Low Emission designation from the Air Resources
respectively. Plans are to eventually sell the car in the U.S.
Board of California, due to its low exhaust emissions. Increased
Part of the success of smaller vehicles is that they appeal to parking options is another perk of the small car, especially in
304 305
Responsible Marketing
Efficiency and Size Make Tiny Cars
ISSUE: Should companies partner in managing their environmental
and social responsibility issues, or should they maintain
independence, making this a competitive marketing strategy?

has seen a global decline in sales and people are
looking for smarter solutions to transportation.
One answer appears to be, go tiny. While global
car sales have been declining precipitously, the
MINI Cooper (made by BMW) and smart cars
(smart is a member of Mercedes-Benz Cars) are two bright spots on
the car industry horizon. The smart car is like no other car on the
American market, measuring in at around 106 inches long, it is three
feet shorter than the MINI Cooper. Despite its small size, test drivers
have found the interior to be roomier than expected.
Over 770,000 of the original smart fortwo coupes have been sold in
36 countries since 2001 and the current smart model is doing well in
the United States—it is the first car that can be factory ordered over
the internet. Toyota’s answer to the tiny car is called the iQ, which
Responsible Marketing will first launch in small-car-friendly Japan and Europe, with sales
expected to be 2,500 and 6,000 a month, respectively. Plans are to
Efficiency and Size Make Tiny Cars a eventually sell the car in the U.S. as well.
Part of the success of smaller vehicles is that they appeal to the
Winning Segment practical and emotional sides of consumers. Fuel efficiencies are
higher. The smart fortwo coupe gets 40 mpg highway; the MINI
Cooper gets 37 mpg; and the iQ is Toyota’s most fuel-efficient
ISSUE: Should companies partner in managing their environmental vehicle at 54 mpg highway. The fortwo has also earned the Ultra Low
and social responsibility issues, or should they maintain Emission designation from the Air Resources Board of California, due
independence, making this a competitive marketing strategy? to its low exhaust emissions. Increased parking options is another perk
of the small car, especially in crowded cities.
With environmental concerns increasing, the
automobile market has seen a global decline in
sales and people are looking for smarter solutions
to transportation. One answer appears to be,
go tiny. While global car sales have been declining precipitously, the
MINI Cooper (made by BMW) and smart cars (smart is a member of
Mercedes-Benz Cars) are two bright spots on the car industry horizon.
The smart car is like no other car on the American market, measuring
will first launch in small-car-friendly Japan and Europe, with sales
practical and emotional sides of consumers. Fuel efficiencies are
vehicle at 54 mpg highway. The fortwo has also earned the Ultra Low
Emission designation from the Air Resources Board of California, due
to its low exhaust emissions. Increased parking options is another perk
of the small car, especially in crowded cities.
306 307
Entrepreneurial Marketing
Efficiency and Size Make Tiny Cars
has seen a global decline in sales and people are looking for smarter
solutions to transportation. One answer appears to be, go tiny. While
global car sales have been declining precipitously, the MINI Cooper
(made by BMW) and smart cars (smart is a member of Mercedes-
Benz Cars) are two bright spots on the car industry horizon. The
Cooper gets 37 mpg; and the iQ is Toyota’s most fuel-efficient Entrepreneurial Marketing
Emission designation from the Air Resources Board of California, due Efficiency and Size Make Tiny Cars a
to its low exhaust emissions. Increased parking options is another
perk of the small car, especially in crowded cities where parking is a
Winning Segment
challenge. The cars also aim to be more affordable than their large
counterparts with the Smart priced from $11,590 to $16,590; the iQ is
set to sell for $13,720, and the MINI Cooper at the higher end at $18-
has seen a global decline in sales and people are looking for smarter
20,000. Buying tiny may very well display a high level of intelligence.a
solutions to transportation. One answer appears to be, go tiny. While
global car sales have been declining precipitously, the MINI Cooper
(made by BMW) and smart cars (smart is a member of Mercedes-
Benz Cars) are two bright spots on the car industry horizon. The
Emission designation from the Air Resources Board of California, due
to its low exhaust emissions. Increased parking options is another
perk of the small car, especially in crowded cities where parking is a
challenge. The cars also aim to be more affordable than their large
counterparts with the Smart priced from $11,590 to $16,590; the iQ is
set to sell for $13,720, and the MINI Cooper at the higher end at $18-
20,000. Buying tiny may very well display a high level of intelligence.a
308 309
Snapshot
Source: Date from National Coffee Association

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2012 edition Pride & Ferrell

Part 2: Environmental Forces and Social and Ethical Responsibilities 61

Part 4: Customer Behavior 191

Part 5: Product Decisions 279

Part 6: Distribution Decisions 385

Part 7: Promotion Decisions 457

Part 8: Pricing Decisions 549

Appendix C: Sample Marketing Plan A-27

Summary 53 Investor Particiation in the Financial Markets 84

Market Efficiency: Concept and Reality 52

Chapter 7: Consumer Buying Behavior Methods of Communication 103

Marketing Strategy and

Environmental Forces &

Using Information Technology

Marketing Strategies PBR is certainly different from other

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and Positioning for 8 seconds. The ordeal is dangerous,

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bull riding across the world.1

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Figure 1.3 The Evolution of the Marketing Concept pg 13

Production Orientation Sales Orientation Marketing Orientation

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Evolution of the Marketing Concept

Table 9.4 The Ten Largest Global Corporations page 265

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The Importance of Marketing Marketing Offers Many Exciting Career Prospects

in 36 countries since 2001 and the current smart model is doing

Go to www.yaddayaddayadda.com for more online assets!

discussion and review questions developing your marketing plan

Video Case 1.1 Case 1.2

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Strategic Case 1 Strategic Case 1

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Career Choices are Major Life Choices

Planning and Preparation

teteur adipiscing elit, sed diam nonummy nibh euismod consequat.

Chapter 5 6 C. Terhune, “Retail Giant Aims to Spur Sales with Less-

9 Ibid. Booth, Denise, 345

257, 345, Gircle K, 123 Isterix, 124

Strategic Case 1 Strategic Case

Strategic Case 1 Strategic Case

Strategic Case 1 Strategic Case

Strategic Case 1 Strategic Case

Strategic Case 1 Strategic Case

Strategic Case 1 Strategic Case

Strategic Case 1 Strategic Case

Strategic Case 1 Strategic Case

3p6 10p 1p6 30p 6p 6p 10p 1p6 30p 3p6

3p6 10p 1p6 30p 6p 6p 30p 1p6 10p 3p6

3p6 20p 1p6 20p 6p 6p 20p 1p6 20p 3p6

3p6 20p 1p6 20p 6p 6p 20p 1p6 20p 3p6

Part 6 17c 0m 14c 0m 20c 0m 9c 9m 0c 20m 0c 12m 0c 0m

Marketing these new green building products requires

generic photo credit / grass: © Kutay Tanir

Demonstrating that the technology works and provides benefits to

Ford Motor Company installed green roofs on its corporate

With environmental concerns increasing, the automobile market