Si
Marketing Management Knowledge and Skills
Eleventh Edition
J. Paul Peter University of Wisconsin-Madison
James H. Donnelly, Jr. University of Kentucky
Me Graw Hill
McGraw-Hill Irwin
Contents Preparation of the Research Report 40 Limitations of the Research Process 40
SECTION 1 ESSENTIALS OF MARKETING MANAGEMENT 1
Marketing Information Systems Summary 43
PART A INTRODUCTION
Chapter 3 Consumer Behavior
3
Culture and Subculture 46 Social Class 47 Reference Groups and Families 48
Marketing Influences on Consumer Decision Making 48
6
Strategic Planning and Marketing Management The Strategic Planning Process 7 The Complete Strategic Plan 16
The Marketing Management Process
Product Influences 48 Price Influences 48 Promotion Influences 49 Place Influences 49
6
16
Situation Analysis 16 5 Marketing Planning 19 Implementation and Control of the Marketing Plan Marketing Information Systems and Marketing Research 21
20
The Strategic Plan, the Marketing Plan, and Other Functional Area Plans 21 Marketing's Role in Cross-Functional Strategic Planning 21
Summary 22 Appendix Portfolio Models
27
Situational Influences on Consumer Decision Making 51 Psychological Influences on Consumer Decision Making 51 Product Knowledge 51 Product Involvement 52
Consumer Decision Making
PARTB MARKETING INFORMATION, RESEARCH, AND UNDERSTANDING THE TARGET MARKET 31 Chapter 2 Marketing Research: Process and Systems for Decision Making 32
Purpose of the Research 33 Plan of the Research 34 Performance of the Research 39 Processing of Research Data 39 xii
52
Need Recognition 53 Alternative Search 54 Alternative Evaluation 55 Purchase Decision 55 Postpurchase Evaluation 56
Summary
The Role of Marketing Research 32 The Marketing Research Process 33
45
Social Influences on Consumer Decision Making 46
Chapter 1 Strategic Planning and the Marketing Management Process 4 The Marketing Concept 4 What Is Marketing? 5 What Is Strategic Planning?
42
58
Chapter 4 Business, Government, and Institutional Buying 60 Categories of Organizational Buyers
60
Producers 60 Intermediaries 61 Government Agencies 61 Other Institutions 61
The Organizational Buying Process 61 Purchase-Type Influences on Organizational Buying 62 Straight Rebuy 62 Modified Rebuy 62 New Task Purchase 62
Contents
Chapter 7 New Product Planning and Development 105
Structural Influences on Organizational Buying 63 Purchasing Roles 63 Organization-Specific Factors 64 Purchasing Policies and Procedures
65
Behavioral Influences on Organizational Buying 65
Stages in the Organizational Buying Process 68 Organizational Need 68 Vendor Analysis 68 Purchase Activities 69 Postpurchase Evaluation 70
Some Important New Product Decisions
72
Causes of New Product Failure
Delineate the Firm's Current Situation 72 Determine Consumer Needs and Wants 73 Divide Markets on Relevant Dimensions 73 A Priori versus Post Hoc Segmentation 74 Relevance of Segmentation Dimensions 74 Bases for Segmentation 75
Develop Product Positioning 79 Decide Segmentation Strategy 82 Design Marketing Mix Strategy 83 Summary 84
PARTC THE MARKETING MIX
Basic Issues in Product Management
86 86
Product Definition 86 Product Classification 87 Product Quality and Value 88 Product Mix and Product Line 89 Branding and Brand Equity 90 Packaging 96
The Product Audit
121
The Promotion Mix 121 Integrated Marketing Communications 122 Advertising: Planning and Strategy 124 Objectives^ ofAdvertising
Advertising Decisions
124
125
132
Push versus Pull Marketing 132 Trade Sales Promotions 133 Consumer Promotions 133 What Sales Promotion Can and Can't Do
99
101
Organizing for Product Management Summary 103
Chapter 8 Integrated Marketing Communications 120
Sales Promotion
100
Deletions 100 Product Improvement
118
The Expenditure Question 126 The Allocation Question 127
97
Product Adoption and Diffusion
Summary
Create Awareness 120 Build Positive Images 120 Identify Prospects 120 Build Channel Relationships Retain Customers 121
85
Product and Brand Strategy
116
Need for Research 117
Strategic Goals of Marketing Communication
Chapter 6
Product Life Cycle
114
Quality Level 114 Product Features 115 Product Design 116 Product Safety 116
70
Chapter 5 Market Segmentation
New Product Strategy 106 New Product Planning and Development Process 108 Idea Generation 108 Idea Screening 110 Project Planning 111 Product Development 112 Test Marketing 112 Commercialization 113 The Importance of Time 113
Personal Motivations 65 Role Perceptions 66
Summary
xiii
101
134
Public Relations 135 Direct Marketing 13 6 Summary 137 Appendix Major Federal Agencies Involved in Control of Advertising 139
120
v Contents
hapter 9 ersonal Selling, Relationship Building, nd Sales Management 140 nportance of Personal Selling 140 he Sales Process 141 Objectives of the Sales Force 141 The Sales Relationship-Building Process 142 People Who Support the Sales Force 147 lanaging the Sales and Relationship-Building rocess 148 The Sales Management Task 149 Controlling the Sales Force 150 Motivating and Compensating Performance 152 ummary 154
ihapter 10 Mstribution Strategy
156
he Need for Marketing Intermediaries 156 Classification of Marketing Intermediaries and unctions 156 Channels of Distribution 158 electing Channels of Distribution 15.9 Specific Considerations 159 Managing a Channel of Distribution 162 Relationship Marketing in Channels 162 Vertical Marketing Systems 162 Vholesaling 165 tore and Nonstore Retailing 166 Store Retailing 166 Nonstore Retailing 167 lummary 170
Ihapter11 'ricing Strategy
172
)emand Influences on Pricing Decisions 172 Demographic Factors 172 Psychological Factors 172 Price Elasticity 174 iupply Influences on Pricing Decisions 174 Pricing Objectives 174 Cost Considerations in Pricing 175 Product Considerations in Pricing 176 invironmental Influences on Pricing )ecisions 177 Competition 177 Government Regulations 178 \. General Pricing Model 178 Set Pricing Objectives 178 Evaluate Product-Price Relationships 179
Estimate Costs and Other Price Limitations 180 Analyze Profit Potential 181 Set Initial Price Structure 181 Change Price as Needed 181 Summary 181
PARTD MARKETING IN SPECIAL FIELDS 183 Chapter 12 The Marketing of Services
184
Important Characteristics of Services 186 Intangibility 186 Inseparability 187 Perishability and Fluctuating Demand 188 Client Relationship 188 Customer Effort 189 Uniformity 190 Providing Quality Services 190 Customer Satisfaction Measurement 192 The Importance of Internal Marketing 192 Overcoming the Obstacles in Service Marketing Limited View of Marketing 194 Limited Competition 194 Noncreative Management 195 No Obsolescence 195 The Service Challenge 196 Banking 196 Health Care 196 Insurance 197 Travel 197 Implications for Service Marketers 198 Summary 199
194
Chapter 13 Global Marketing 201 The Competitive Advantage of Nations 202 Organizing for Global Marketing 203 Problems with Entering Foreign Markets 203 Organizing the Multinational Company 206 Programming for Global Marketing 208 Global Marketing Research 208 Global Product Strategy 211 Global Distribution Strategy 211 Global Pricing Strategy 212 Global Advertising and Sales Promotion Strategy 212 Entry and Growth Strategies for Global Marketing 213 Summary 216
Contents
SECTION 2 ANALYZING MARKETING PROBLEMS AND CASES 217
Case 4 Ruth's Chris: The High Stakes of International Expansion 276
A Case Analysis Framework 218 1. Analyze and Record the Current Situation 219 2. Analyze and Record Problems and Their Core Elements 223 3. Formulate, Evaluate, and Record Alternative Courses ofAction 224 4. Select and Record the Chosen Alternative and Implementation Details 225
Allen H. Kupetz and lion Alon: The University of Western Ontario
Pitfalls to Avoid in Case Analysis 225 Communicating Case Analyses 228 The Written Report 228 The Oral Presentation 230
Conclusion
SECTION 3 FINANCIAL ANALYSIS FOR MARKETING DECISIONS 231 Financial Analysis 232
Conclusion
John E. Gamble: University of South Alabama
Case 6 Panera Bread Company
298
PRODUCT STRATEGY Case 7 Starbucks
315
316
Case 8 Your Home Is a Good Place, Inc. 321
SECTION 4 MARKETING MANAGEMENT CASES 241 CASE GROUP A MARKET OPPORTUNITY ANALYSIS 243
Casei McDonald's Corporation
CASE GROUP B
J. Paul Peter: University of Wisconsin-Madison
234
240
244
J. Paul Peter and Ashish Gokhale: University of Wisconsin-Madison
Case 2 Southwest Airlines 2011
Case 5 Coach Inc.: Is Its Advantage in Luxury Handbags Sustainable? 283
Arthur A. Thompson: University of Alabama
230
Break-Even Analysis 232 Net Present Value Analysis Ratio Analysis 236 .
xv
251
Andrew C. Inkpen: Thunderbird School of Global Management
Case 3
South Delaware Coors, Inc. 267 James E. Nelson and Eric J. Karson: University of Colorado
Kevin Coulson and Zane Swanson: University of Western Ontario
Case 9 easyCar.com
328
John J. Lawrence: University of Idaho Luis Solis: University of Idaho Instituto de Empresa
Case 10 The Lego Group: Building Strategy
337
Paul Bigus and Darren Meister: University of Western Ontario
Case 11
The Launch of the Sony PlayStation 3 348 David Wesley and Gloria Barczak: Northeastern University
CASE GROUP C PROMOTION STRATEGY 363
xvi Contents
Case 12 Mountain Dew: Selecting New Creative 364 Douglas B. Holt: Oxford University Case 13 Red Bull
CASE GROUP E PRICING STRATEGY
505
Case 20 Schwinn Bicycles 506
381
J. Paul Peter: University of Wisconsin-Madison
Richard R. Johnson, Jordan Mitchell, Paul W Farris, and Ervin Shames: University of Virginia
Case 21 Cowgirl Chocolates
509
Case 14 "Hips Feel Good"—Dove's Campaign for Real Beauty 395
John J. Lawrence, Linda J. Morris, and Joseph J. Geiger: University of Idaho
David Wesley: Northeastern University
Case 22 Clearwater Technologies
CASE GROUP D DISTRIBUTION STRATEGY
409
Case 15 IKEA's Global Strategy: Furnishing the World 410 f
522
Susan F. Sieloff and Raymond M. Kinnunen: Northeastern University CASE GROUP F SOCIAL AND ETHICAL ISSUES IN MARKETING MANAGEMENT 527
Paul Kolesa i
Case 16 Pets.com Inc.: Rise and Decline of a Pet Supply Retailer 418 Omar Merlo: University of Western Ontario Case 17 organicKidz: Marketing Strategy
433
Ken Mark and Matthew Thomson: University of Western Ontario
Case 23 E.&J.Gallo Winery
528
Marion Armstrong, Taylor Green, and A. J. Strickland III: University of Alabama Case 24 Abercrombie & Fitch: An Upscale Sporting Goods Retailer Becomes a Leader in Trendy Apparel 545 Janet Rovenpor: Manhattan College
Case 18 The Challenges Facing eBay in 2008: Time for a Change in Strategy? 439
SECTION 5 STRATEGIC MARKETING CASES
Louis Marino: University of Alabama Patrick Kreiser: Ohio University
Case 1 Yum! Brands, Pizza Hut, and KFC
Case 19 Wal-Mart Stores Inc. in 2008: Management's Initiatives to Transform the Company and Curtail Wal-Mart Bashing 465
Jeffrey A. Krug: Appalachian State University
Arthur A. Thompson: University of Alabama
Case 2 Apple Inc. in 2010
569
571
585
Lou Marino: The University of Alabama John E. Gamble: University of South Alabama
Contents
Case 3 EMR Innovations
598
Kay M. Palan: Iowa State University
xvii
Case 9 Research In Motion—Entering a New Era 702 Sofy Carayannopoulos: Wilfrid Laurier University
Case 4 Gap Inc. in 2010: Is the Turnaround Strategy Working? 609 Annette Lohman: California State University, Long Beach Case 5 Harley-Davidson, Inc.—Motorcycle Division 628 J. Paul Peter: University of Wisconsin-Madison Case 6 PepsiCo's Diversification Strategy in 2008 641 John E. Gamble: University of South Alabama Case 7 Expresso Espresso
658
Case 10 Dell Inc. in 2008: Can It Overtake Hewlett-Packard as the Worldwide Leader in Personal Computers? 725 Arthur A. Thompson: University of Alabama John E. Gamble: University of South Alabama
SECTION 6 DEVELOPING MARKETING PLANS A Marketing Plan Framework 760 Title Page 761 Executive Summary 761 Table of Contents 762 , Introduction 762 Situational Analysis 762 Marketing Planning 762 Implementation and Control of the Marketing Plan 764 Summary 766 Appendix—Financial Analysis 766 References 769
Calvin M. Bacon: University of South Alabama
Conclusion 769
Case 8 Respironics, Incorporated: Take a Deep Breath 680
Notes
771
Index
778
Janet L. Rovenpor: Manhattan College Armand Gilinsky: Sonoma State University
759
