Principles of marketing

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Front Cover Half Title Page Title Page Copyright Page Brief contents Contents Preface About the authors Acknowledgements Part 1 Defining marketing and the marketing process 1 Marketing: creating customer value and engagement Chapter preview Learning outcomes What is marketing? Marketing defined The marketing process Understanding the marketplace and customer needs Customer needs, wants and demands Market offerings – products, services and experiences Customer value and satisfaction Exchanges and relationships Markets Designing a customer value-driven marketing strategy and plan Selecting customers to serve Choosing a value proposition Marketing management orientations Preparing an integrated marketing plan and programme Building customer relationships Customer relationship management Partner relationship management Capturing value from customers Creating customer loyalty and retention Growing share of customer Building customer equity The changing marketing landscape The digital age: online, mobile and social media marketing Social media marketing Mobile marketing The changing economic environment The growth of not-for-profit marketing Rapid globalisation Sustainable marketing – the call for more environmental and social responsibility So, what is marketing? Pulling it all together Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: The ALS Ice Bucket Challenge Marketing ethics: is Big Brother watching? Marketing by numbers: what's a customer worth? Video case: Eskimo Joe's References Company case: Argos: creating customer value amid change and turbulence 2 Company and marketing strategy: partnering to build customer engagement, value and relationships Chapter preview Learning outcomes Company-wide strategic planning: defining marketing's role Defining a market-oriented mission Setting company objectives and goals Designing the business portfolio Planning marketing: partnering to build customer relationships Partnering with other company departments Partnering with others in the marketing system Marketing strategy and the marketing mix Customer value-driven marketing strategy Developing an integrated marketing mix Managing the marketing effort Marketing analysis Marketing planning Marketing implementation Marketing department organisation Marketing control Measuring and managing marketing return on investment Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: Google's (Alphabet's) mission Marketing ethics: creating value ordistracting consumers? Marketing by numbers: profitability Video case: Konica References Company case: LEGO: one more brick in the wall? Part 2 Understanding the marketplace and consumers 3 Analysing the marketing environment Chapter preview Learning outcomes The microenvironment The company Suppliers Marketing intermediaries Competitors Publics Customers The macroenvironment The demographic environment Geographic shifts in population The economic environment The natural environment The technological environment The political and social environment The cultural environment Responding to the marketing environment Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: sharing economy Marketing ethics: how young is too young? Marketing by numbers: tiny markets References Company case: Fitbit: riding the fitness wave to glory 4 Managing marketing information to gain customerinsights Chapter preview Learning outcomes Marketing information and customer insights Marketing information and today's 'big data' Managing marketing information Assessing marketing information needs Developing marketing information Internal data Competitive marketing intelligence Marketing research Defining the problem and research objectives Developing the research plan Gathering secondary data Primary data collection Implementing the research plan Interpreting and reporting the findings Analysing and using marketing information Customer relationship management (CRM) Big data and marketing analytics Distributing and using marketing information Other marketing information considerations Marketing research in small businesses and non-profit organisations International marketing research Public policy and ethics in marketing research Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: the trail you leave behind Marketing ethics: metadata Marketing by numbers: the value of information Video case: Nielsen References Company case: Holland & Barrett: choosing the good life! by Dr Eleri Rosier, Cardiff University 5 Consumer markets and buyer behaviour Chapter preview Learning outcomes Model of consumer behaviour Characteristics affecting consumer behaviour Cultural factors Social factors Personal factors Psychological factors Types of buying decision behaviour Complex buying behaviour Dissonance-reducing buying behaviour Habitual buying behaviour Variety-seeking buying behaviour The buyer decision process Need recognition Information search Evaluation of alternatives Purchase decision Post-purchase behaviour The buyer decision process for new products Stages in the adoption process Individual differences in innovativeness Influence of product characteristics on rate of adoption Learning outcomes review Navigating the key terms Discussion and critical thinking Discussion the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: digital influencer credibility Marketing ethics: ultimate water Marketing by numbers: evaluating alternatives Video case: IMG Worldwide References Company case: Porsche: guarding the old while bringing in the new 6 Business markets and business buyer behaviour Chapter preview Learning outcomes Business markets Market structure and demand Nature of the buying unit Types of decisions and the decision process Business buyer behaviour Major types of buying situations Participants in the business buying process Major influences on business buyers The business buying process Engaging business buyers with digital and social marketing E-procurement and online purchasing Business-to-business digital and social media marketing Institutional and government markets Institutional markets Government markets Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: e-procurement and mobile procurement Marketing ethics: commercial bribery Marketing by numbers: salespeople Video case: Eaton References Company case: Procter & Gamble: treating business customers as strategic partners Part 3 Designing a customer value-driven strategy and mix 7 Customer-driven marketing strategy: creating value for target customers Chapter preview Learning outcomes Customer-driven marketing strategy Market segmentation Segmenting consumer markets Segmenting business markets Segmenting international markets Requirements for effective segmentation Market targeting Evaluating market segments Selecting target market segments Differentiation and positioning Positioning maps Choosing a differentiation and positioning strategy Communicating and delivering the chosen position Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: get your Groupon Marketing ethics: unrealistic bodies Marketing by numbers: USAA References Company case: Volvo cars 8 Products, services and brands: building customer value Chapter preview Learning outcomes What is a product? Products, services and experiences Levels of product and services Product and service classifications Product and service decisions Individual product and service decisions Product line decisions Product mix decisions Services marketing The nature and characteristics of a service Marketing strategies for service firms Branding strategy: building strong brands Brand equity and brand value Building strong brands Managing brands Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: feeding pets from your smartphone Marketing ethics: geographical indication Marketing by numbers: Pop-Tarts Gone Nutty! References Company case: Telenor Health and Tonic digital health services by Ilma Nur Chowdhury, Alliance Manchester Business School, The University of Manchester 9 Developing new products and managing the product life cycle Chapter preview Learning outcomes New product development strategy The new product development process Idea generation Idea screening Concept development and testing Marketing strategy development Business analysis Product development Test marketing Commercialisation Managing new product development Customer-centred new product development Team-based new product development Systematic new product development Product life-cycle strategies Introduction stage Growth stage Maturity stage Decline stage Additional product and service considerations Product decisions and social responsibility International product and services marketing Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: telemedicine Marketing ethics: put on your thinking caps! Marketing by numbers: dental house-calls References Company case: Dyson: reinventing continuously, by Yansong Hu, Warwick Business School 10 Pricing: understanding and capturing customer value Chapter preview Learning outcomes What is a price? Major pricing strategies Customer value-based pricing Cost-based pricing Competition-based pricing Other internal and external considerations affecting price decisions Overall marketing strategy, objectives and mix Organisational considerations The market and demand The economy Other external factors Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: online price tracking Marketing ethics: the cost of a life Marketing by numbers: reseller margins References Company case: Cath Kidston: nostalgic fantasy that creates value for consumers 11 Pricing strategies: additional considerations Chapter preview Learning outcomes New product pricing strategies Market-skimming pricing Market-penetration pricing Product mix pricing strategies Product line pricing Optional-product pricing Captive-product pricing By-product pricing Product bundle pricing Price adjustment strategies Discount and allowance pricing Segmented pricing Psychological pricing Promotional pricing Geographical pricing Dynamic and online pricing International pricing Price changes Initiating price changes Responding to price changes Public policy and pricing Pricing within channel levels Pricing across channel levels Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: extreme couponing Marketing ethics: airfare pricing Marketing by numbers: Louis Vuitton price increase References Company case: Dacia: the birth of a nifty little Carpathian warrior, by Dr Cristina Sambrook, Birmingham Business School 12 Marketing channels: delivering customer value Chapter preview Learning outcomes Supply chains and the value delivery network The nature and importance of marketing channels How channel members add value Number of channel levels Channel behaviour and organisation Channel behaviour Vertical marketing systems Horizontal marketing systems Multi-channel distribution systems Changing channel organisation Channel design decisions Analysing consumer needs Setting channel objectives Identifying major alternatives Evaluating the major alternatives Designing international distribution channels Channel management decisions Selecting channel members Managing and motivating channel members Evaluating channel members Public policy and distribution decisions Marketing logistics and supply chain management Nature and importance of marketing logistics Sustainable supply chains Goals of the logistics system Major logistics functions Integrated logistics management Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: self-publishing Marketing ethics: supplier safety Marketing by numbers: Tyson expanding distribution Video case: Progressive References Company case: Thorntons: a journey to revitalise its brand 13 Retailing and wholesaling Chapter preview Learning outcomes Retailing Connecting brands with consumers Types of retailers Retailer marketing decisions Retailing trends and developments Wholesaling Types of wholesalers Wholesaler marketing decisions Trends in wholesaling Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: skipping the checkout line Marketing ethics: marketplace fairness Marketing by numbers: stockturn rate References Company case: Lush: striving for the ultimate customer experience 14 Engaging consumers and communicating customer value: integrated marketing communications strategy Chapter preview Learning outcomes The promotion mix Integrated marketing communications The new marketing communications model The need for integrated marketing communications A view of the communication process Steps in developing effective marketing communication Identifying the target audience Determining the communication objectives Designing a message Message content Choosing the communication channels and media Selecting the message source Collecting feedback Setting the total promotion budget and mix Setting the total promotion budget Shaping the overall promotion mix Integrating the promotion mix Socially responsible marketing communication Advertising and sales promotion Personal selling Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: #withoutshoes Marketing ethics: an ethical promotion? Marketing by numbers: advertising-to-sales ratios Video case: OXO References Company case: Marie Curie: understanding service user experiences, by Philippa Hunter-Jones, Lynn Sudbury-Riley and Ahmed Al-Abdin, University of Liverpool Management School, UK 15 Advertising and public relations Chapter preview Learning outcomes Advertising Setting advertising objectives Setting the advertising budget Developing advertising strategy Evaluating advertising effectiveness and the return on advertising investment Other advertising considerations Public relations The role and impact of PR Major public relations tools Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: Facebook audience network Marketing ethics: native advertising Marketing by numbers: C3, CPM and CPP References Company case: ASICS Advertising and PR in the era of social media, by Caterina Presi, Leeds University Business School 16 Personal selling and sales promotion Chapter preview Learning outcomes Personal selling The nature of personal selling The role of the sales force Managing the sales force Designing the sales force strategy and structure Recruiting and selecting salespeople Training salespeople Compensating salespeople Supervising and motivating salespeople Evaluating salespeople and sales force performance Social selling: online, mobile and social media tools The personal selling process Steps in the selling process Personal selling and managing customer relationships Sales promotion The rapid growth of sales promotion Sales promotion objectives Major sales promotion tools Developing the sales promotion programme Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: snap it and redeem it! Marketing ethics: walking the customer Marketing by numbers: sales force analysis Video case: First Flavor References Company case: SunGard: building sustained growth by selling the SunGard way 17 Direct, online, social media and mobile marketing Chapter preview Learning outcomes Direct and digital marketing The new direct marketing model Rapid growth of direct and digital marketing Benefits of direct and digital marketing to buyers and sellers Forms of direct and digital marketing Marketing, the internet and the digital age Online marketing Social media marketing Mobile marketing Traditional direct marketing forms Direct-mail marketing Catalogue marketing Telemarketing Direct-response television marketing Kiosk marketing Public policy issues in direct and digital marketing Irritation, unfairness, deception and fraud Consumer privacy A need for action Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: 'Buy' buttons Marketing ethics: #Fail Marketing by numbers: field sales versus telemarketing Video case: Nutrisystem References Company case: The ASOS experience, by Ewelina Lacka, University of Edinburgh Business School Part 4 Extending marketing 18 Creating competitive advantage Chapter preview Learning outcomes Competitor analysis Identifying competitors Assessing competitors Selecting competitors to attack and avoid Designing a competitive intelligence system Competitive strategies Approaches to marketing strategy Basic competitive strategies Competitive positions Market leader strategies Market challenger strategies Market follower strategies Market nicher strategies Balancing customer and competitor orientations Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: social logins Marketing ethics: creating competitive advantage... to what end? Marketing by numbers: market share Video case: Umpqua Bank References Company case: YouTube: Google's quest for video dominance 19 The global marketplace Chapter preview Learning outcomes Global marketing today Elements of the global marketing environment The international trade system Economic environment Political-legal environment Deciding whether to go global Deciding which markets to enter Deciding how to enter the market Exporting Joint venturing Direct investment Deciding on the global marketing programme Product Promotion Price Distribution channels Deciding on the global marketing organisation Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: China's great firewall Marketing ethics: global safety standards Marketing by numbers: Netflix's global expansion Video case: Monster References Company case: Chang beer: Thainess in a bottle, by Angela Carroll, Leeds Business School 20 Social responsibility and ethics Chapter preview Learning outcomes Sustainable marketing Social criticisms of marketing Marketing's impact on individual consumers Marketing's impact on society as a whole Marketing's impact on other businesses Consumer actions to promote sustainable marketing Consumerism Environmentalism Public actions to regulate marketing Business actions toward sustainable marketing Sustainable marketing principles Marketing ethics The sustainable company Learning outcomes review Navigating the key terms Discussion and critical thinking Discussing the concepts Critical-thinking exercises Mini-cases and applications Online, mobile and social media marketing: teenagers and social media Marketing ethics: milking the international market Marketing by numbers: the cost of sustainability Video case: Honest Tea References Company case: Innocent Drinks: golden wind egg or red herring? by Guido Berens, Rotterdam School of Management Appendix 1: Marketing plan Appendix 2: Marketing by numbers Glossary Index Back Cover