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PART 1 Understanding Marketing Management 2

CHAPTER 1 Defining Marketing for the 21st Century 2

The Importance of Marketing 3

The Scope of Marketing 5

Core Marketing Concepts 9

The New Marketing Realities 12

MARKETING INSIGHT Marketing in an Age of Turbulence 16

Company Orientation toward the Marketplace 17

MARKETING MEMO Marketing Right and Wrong 19

Updating the Four Ps 25

Marketing Management Tasks 26

MARKETING MEMO Marketers’ Frequently Asked Questions 26

Summary 28

Applications 28

CHAPTER 2 Developing Marketing Strategies and Plans 32

Marketing and Customer Value 33

Corporate and Division Strategic Planning 37

MARKETING INSIGHT Creating Innovative Marketing 46

Business Unit Strategic Planning 47

MARKETING MEMO Checklist for Performing Strengths/Weaknesses Analysis 52

Product Planning： The Nature and Contents of a Marketing Plan 54

MARKETING MEMO Marketing Plan Criteria 55

Summary 56

Applications 56

PART 2 Capturing Marketing Insights 66

CHAPTER 3 Collecting Information and Forecasting Demand 66

Components of a Modern Marketing Information System 67

Internal Records 70

Marketing Intelligence 71

Analyzing the Macroenvironment 74

MARKETING INSIGHT Finding Gold at the Bottom of the Pyramid 76

MARKETING INSIGHT The Green Marketing Revolution 82

Forecasting and Demand Measurement 85

Summary 92

Applications 92

CHAPTER 4 Conducting Marketing Research 96

The Marketing Research System 97

The Marketing Research Process 99

MARKETING MEMO Conducting Informative Focus Groups 102

MARKETING MEMO Questionnaire Dos and Don’ts 104

MARKETING INSIGHT Getting into the Heads of Consumers 106

MARKETING INSIGHT Understanding Brain Science 108

MARKETING INSIGHT Bringing Marketing Research to Life with Personas 112

Measuring Marketing Productivity 114

MARKETING INSIGHT Marketing Dashboards to Improve Effectiveness and Efficiency 117

Summary 118

Applications 119

PART 3 Connecting with Customers 122

CHAPTER 5 Creating Long-term Loyalty Relationships 122

Building Customer Value， Satisfaction， and Loyalty 123

MARKETING INSIGHT Net Promoter and Customer Satisfaction 129

Maximizing Customer Lifetime Value 132

MARKETING MEMO Marketing and Total Quality 132

Cultivating Customer Relationships 134

MARKETING MEMO Calculating Customer Lifetime Value 134

Customer Databases and Database Marketing 143

MARKETING INSIGHT The Behavioral Targeting Controversy 146

Summary 147

Applications 147

CHAPTER 6 Analyzing Consumer Markets 150

What Influences Consumer Behavior？ 151

MARKETING MEMO The Average U.S. Consumer Quiz 155

Key Psychological Processes 160

MARKETING INSIGHT Made to Stick 165

The Buying Decision Process： The Five-Stage Model 166

Behavioral Decision Theory and Behavioral Economics 174

MARKETING INSIGHT Predictably Irrational 176

Summary 177

Applications 178

CHAPTER 7 Analyzing Business Markets 182

What Is Organizational Buying？ 183

Participants in the Business Buying Process 188

MARKETING INSIGHT Big Sales to Small Businesses 191

The Purchasing/Procurement Process 193

Stages in the Buying Process 195

MARKETING MEMO Developing Compelling Customer Value Propositions 199

Managing Business-to-Business Customer Relationships 201

MARKETING INSIGHT Establishing Corporate Trust， Credibility， and Reputation 203

Institutional and Government Markets 205

Summary 207

Applications 208

CHAPTER 8 Identifying Market Segments and Targets 212

Bases for Segmenting Consumer Markets 214

MARKETING INSIGHT Trading Up， Down， and Over 218

Bases for Segmenting Business Markets 230

Market Targeting 231

MARKETING INSIGHT Chasing the Long Tail 235

Summary 236

Applications 237

PART 4 Building Strong Brands 240

CHAPTER 9 Creating Brand Equity 240

What Is Brand Equity？ 241

MARKETING INSIGHT Brand Bubble Trouble 248

Building Brand Equity 249

Measuring Brand Equity 255

MARKETING INSIGHT The Brand Value Chain 255

MARKETING INSIGHT What Is a Brand Worth？ 257

Managing Brand Equity 258

Devising a Branding Strategy 260

Customer Equity 267

MARKETING MEMO Twenty-First-Century Branding 267

Summary 268

Applications 269

CHAPTER 10 Crafting the Brand Positioning 274

Developing and Establishing a Brand Positioning 275

MARKETING INSIGHT High Growth Through Value Innovation 278

MARKETING MEMO Constructing a Brand Positioning Bull’s-eye 287

Differentiation Strategies 289

Positioning and Branding a Small Business 293

Summary 294

Applications 294

CHAPTER 11 Competitive Dynamics 298

Competitive Strategies for Market Leaders 299

MARKETING INSIGHT When Your Competitor Delivers More for Less 300

Other Competitive Strategies 305

MARKETING MEMO Niche Specialist Roles 309

Product Life-Cycle Marketing Strategies 310

MARKETING INSIGHT Managing a Brand Crisis 316

Marketing in an Economic Downturn 318

Summary 320

Applications 321

PART 5 Shaping the Market Offerings 324

CHAPTER 12 Setting Product Strategy 324

Product Characteristics and Classifications 325

Product and Services Differentiation 328

Design 332

Product and Brand Relationships 333

MARKETING INSIGHT Marketing Luxury Brands 334

MARKETING INSIGHT When Less Is More 339

MARKETING MEMO Product-Bundle Pricing Considerations 344

Packaging， Labeling， Warranties， and Guarantees 346

Summary 349

Applications 350

CHAPTER 13 Designing and Managing Services 354

The Nature of Services 355

The New Services Realities 361

Achieving Excellence in Services Marketing 365

MARKETING INSIGHT Improving Company Call Centers 369

Managing Service Quality 370

MARKETING MEMO Recommendations for Improving Service Quality 372

Managing Product-Support Services 375

MARKETING MEMO Assessing E-Service Quality 376

Summary 378

Applications 378

CHAPTER 14 Developing Pricing Strategies and Programs 382

Understanding Pricing 383

MARKETING INSIGHT Giving It All Away 384

Setting the Price 389

MARKETING INSIGHT Stealth Price Increases 403

Adapting the Price 403

Initiating and Responding to Price Changes 407

Summary 410

Applications 410

PART 6 Delivering Value 414

CHAPTER 15 Designing and Managing Integrated Marketing Channels 414

Marketing Channels and Value Networks 415

The Role of Marketing Channels 418

Channel-Design Decisions 422

Channel-Management Decisions 427

Channel Integration and Systems 431

MARKETING INSIGHT Channel Stewards Take Charge 432

Conflict， Cooperation， and Competition 435

E-Commerce Marketing Practices 438

M-Commerce Marketing Practices 441

Summary 442

Applications 442

CHAPTER 16 Managing Retailing， Wholesaling， and Logistics 446

Retailing 447

MARKETING MEMO Helping Stores to Sell 458

Private Labels 459

MARKETING INSIGHT Manufacturer’s Response to the Private Label Threat 461

Wholesaling 461

Market Logistics 464

Summary 469

Applications 470

PART 7 Communicating Value 474

CHAPTER 17 Designing and Managing Integrated Marketing Communications 474

The Role of Marketing Communications 476

MARKETING INSIGHT Don’t Touch That Remote 476

Developing Effective Communications 482

MARKETING INSIGHT Celebrity Endorsements as a Strategy 486

Deciding on the Marketing Communications Mix 490

Managing the Integrated Marketing Communications Process 494

MARKETING MEMO How Integrated Is Your IMC Program？ 496

Summary 497

Applications 497

CHAPTER 18 Managing Mass Communications：Advertising， Sales Promotions，Events and Experiences， and Public Relations 502

Developing and Managing an Advertising Program 504

MARKETING MEMO Print Ad Evaluation Criteria 509

Deciding on Media and Measuring Effectiveness 510

MARKETING INSIGHT Playing Games with Brands 516

Sales Promotion 519

Events and Experiences 524

MARKETING MEMO Measuring High Performance Sponsorship Programs 526

Public Relations 527

Summary 530

Applications 530

CHAPTER 19 Managing Personal Communications：Direct and Interactive Marketing， Word of Mouth， and Personal Selling 534

Direct Marketing 535

Interactive Marketing 540

MARKETING MEMO How to Maximize the Marketing Value of E-mails 543

MARKETING MEMO Segmenting Tech Users 545

Word of Mouth 546

MARKETING MEMO How to Start a Buzz Fire 552

Designing the Sales Force 553

MARKETING INSIGHT Major Account Management 555

Managing the Sales Force 556

Principles of Personal Selling 560

Summary 562

Applications 563

PART 8 Creating Successful Long-term Growth 566

CHAPTER 20 Introducing New Market Offerings 566

New-Product Options 567

Challenges in New-Product Development 568

Organizational Arrangements 570

Managing the Development Process：Ideas 573

MARKETING MEMO Ten Ways to Find GreatNew-Product Ideas 574

MARKETING INSIGHT P＆G’s New Connect +Develop Approach to Innovation 574

MARKETING MEMO Seven Ways to Draw New Ideas from Your Customers 576

MARKETING MEMO How to Run a Successful Brainstorming Session 577

Managing the Development Process： Concept to Strategy 579

Managing the Development Process：Development to Commercialization 585

The Consumer-Adoption Process 589

Summary 590

Applications 591

CHAPTER 21 Tapping into Global Markets 594

Competing on a Global Basis 595

Deciding Whether to Go Abroad 597

Deciding Which Markets to Enter 597

MARKETING INSIGHT Spotlight on Key Developing Markets 600

Deciding How to Enter the Market 603

Deciding on the Marketing Program 606

MARKETING MEMO The Ten Commandments of Global Branding 608

Country-of-Origin Effects 614

Deciding on the Marketing Organization 616

Summary 617

Applications 617

CHAPTER 22 Managing a Holistic Marketing Organization for the Long Run 620

Trends in Marketing Practices 621

Internal Marketing 623

MARKETING MEMO Characteristics of Company Departments That Are Truly Customer Driven 624

MARKETING INSIGHT The Marketing CEO 628

Socially Responsible Marketing 629

MARKETING INSIGHT The Rise of Organic 633

MARKETING MEMO Making a Difference： Top 10 Tips for Cause Branding 637

Marketing Implementation and Control 640

The Future of Marketing 643

MARKETING MEMO Major Marketing Weaknesses 647

Summary 648

Applications 648

Appendix Tools for Marketing Control 652