TITLE : BASIC MARKETING. 8TH ED

Contents
 
 
Part I
 
Introduction to Marketing and Its Environment,...........2
 
1  Marketing's role in societ,......................... 4
 
Marketing-What's It All About?.......................... 5
How Marketing Relates to Manufacturing,................. 7
Marketing and You,........................... 9
How Should We Define Marketing?............. 10
Micro-Marketing Defined,.................... 11
The Focus of This Text-Management-Oriented
  Micro-Marketing,.......................... 12
Macro-Marketing Defined,.................... 13
Every Society Needs an Economic System,..... 14
How Economic Decisions Are Made,............ 15
All Economies Need Macro-Marketing Systems,..18
The Role of Marketing in Economic Development,......21
Can Mass Production Satisfy a Society's
  Consumption Needs?............................... 22
Who Performs Marketing Functions?.................. 26
How Well Does Our Macro-Marketing System
  Work?............................................ 27
 
 
2  Marketing's role within the firm,.............. 32
 
Marketing's Role Has Changed a Lot over the
Years,............................................. 34
What Does the Marketing Concept Mean?.............. 35
Adoption of the Marketing Concept Has Not Been
  Easy or Universal,............................... 38
The Management Job in Marketing,................... 41
What Is Marketing Strategy Planning?............... 43
Selecting a Market-Oriented Strategy Is Target
  Marketing,....................................... 45
Developing Marketing Mixes for Target Markets,......46
Differentiating between Strategic Decisions and
  Operational Decisions,........................... 52
The Marketing Plan Is a Guide to Implementation
  and Control,..................................... 52
The Importance of Marketing Strategy Planning,..... 55
Strategy Planning Doesn't Take Place in a
  Vacuum,.......................................... 58
Market-Oriented Strategy Planning Helps Non-
  Marketing People, Too,........................... 58
 
Appendix A  Economics fundamentals,............... 62
Products and Markets as Seen by Customers
  and Potential Customers,......................... 63
Markets as Seen by Suppliers,...................... 69
Demand and Supply Interact to Determine the
  Size of the Market and Price Level,.............. 71
Demand and Supply Help Understand the Nature
  of Competition,.................................. 73
 
 
3  Finding attractive marketing
    opportunities,................................. 74
 
What Are Attractive Opportunities?................. 76
Search for Opportunities Can Begin by Naming
  Present Markets,................................. 78
Market Segmentation Leads to Three Approaches
  to Target Marketing,............................. 86
Types of Opportunities to Pursue,.................. 90
Company Resources May Limit Search for
  Opportunities,................................... 93
Objectives May Limit the Search for
  Opportunities,................................... 94
Objectives Should Set Firm's Course,............... 95
How to Evaluate Opportunities,..................... 98
Planning Grids Help Evaluate Different Kinds of
  Opportunities,.................................. 101
Multi-Product Firms Have a Difficult Strategy
  Planning Job,................................... 103
 
 
4  Uncontrollable environments affecting
    marketing management,...................108
 
Cultural and Social Environment,........... 110
Economic Environment,...................... 114
Technological Environment,................. 115
The Competitive Environment,............... 117
Political Environment,..................... 123
Legal Environment,......................... 126
 
 
Part 11 |
 
Selecting Target Markets,................. l34
 
5  Getting information for marketing
    decisions,............................ 136
 
What Is Marketing Research?................ 138
The Scientific Method and Marketing Research,...... 140
Five-Step Approach to Marketing Research,.......... 141
Detinition ot the Problem-Step One,................ 142
Situation Analysis-Step Two,....................... 144
Getting Problem-Specific Data-Step Three,.......... 147
Interpretation of Data-Step Four,.................. 155
Problem Solution-Step Five,........................ 159
How Much Research Should Be Done?.................. 160
Some Firms Are Building Marketing Information
  Systems,......................................... 160
 
6  Demographic dimensions of the U.S.
    consumer market,........................... 166
 
Population-People with Money Make Markets,.......... 169
Income-People with Money Make Markets,.............. 179
Consumer Spending Patterns Are Related to
  Population and Income,............................ 184
Expenditure Patterns Vary with Other Measurable
  Factors,.......................................... 186
 
 
7  Behavioral dimensions of the consumer
    market,......................................... 194
 
The Behavioral Sciences Help Understand Buying
  Process,.......................................... 196
Intra-Personal Variables Focus on the Individual,....198
Inter-Personal Variables Affect the Individual's
  Buying Behavior,.................................. 209
Consumers Use Problem-Solving Processes,............ 214
Several Processes Are Related and Relevant to
  Strategy Planning,................................ 219
 
 
8  Industrial and intermediate customers
    and their buying behavior,...................... 224
 
Intermediate Customers Are Different,............... 226
Manufacturers Are Important Customers,.............. 227
Industrial Buyers Are Problem Solvers,.............. 230
Basic Methods and Practices in Industrial Buying,... 235
Retailers and Wholesalers Are Problem Solvers,
Too,................................................ 240
The Government Market,.............................. 243
 
 
9  Segmenting markets and forecasting their
    potential,...................................... 248
 
Market Segmentation Requires Judgment,.............. 250
There May Be Both Qualifying and Determining
  Dimensions,....................................... 254
What Dimensions Are Used to Segment Markets?........ 257
A Seven-Step Approach to Segmenting
  Consumer Product-Markets,......................... 260
Seven-Step Approach Applies in Industrial
  Markets, Too,..................................... 265
More Sophisticated Techniques May Help in
  Segmenting,....................................... 266
Segmenting Should Not Be Carried to Extremes,........268
Forecasting Target Market Potential and Sales,.......268
Two Approaches to Forecasting,...................... 269
Three Levels of Forecast Are Useful,................ 270
Forecasting Company and Product Sales by
  Extending Past Behavior,.......................... 271
Predicting Future Behavior Calls for More
  Judgment and Some Opinions,....................... 275
Accuracy of Forecasts,.............................. 280
Developing a Marketing Mix,......................... 284
 
 
10  Elements of product planning,.................. 286
 
What Is a Product?.................................. 288
Product Assortments and Product Lines Must Be
  Developed, Too,................................... 290
Goods Classes Help Plan Marketing Strategies,........291
  Consumer Goods Classes,........................... 291
Convenience Goods-Purchased Quickly with
  Little Effort,.................................... 292
Shopping Goods-Are Compared,........................ 293
Specialty Goods-No Substitutes, Please!............. 294
Unsought Goods-Need Promotion,...................... 295
One Product May Be Seen as Several Consumer
  Goods,............................................ 295
Industrial Goods Are Different,..................... 296
Industrial Goods Classes,........................... 297
Installations-Major Capital Items,.................. 297
Accessory Equipment-Important but Short-Lived
  Capital Items,.................................... 300
Raw Materials-Farm Products and Natural
  Products Are Expense Items,....................... 301
Farm Products Vary in Quality and Quantity,......... 301
Natural Products-Quantities Are Adjustable,......... 302
Component Parts and Materials-Important
  Expense Items,.................................... 303
Supplies-Everybody Wants These Expense
  Items, but How Much?.............................. 304
Services-You Expense Them,.......................... 306
Goods Classes and Marketing Mixes Are Related........306
Branding Is a Strategy Decision, Too,............... 306
Branding-Why It Developed,.......................... 308
How Branding Helps Customers,....................... 309
How Branding Helps Branders,........................ 310
Conditions Favorable to Branding,................... 310
Achieving Brand Familiarity Is Not Easy,............ 311
Protecting Brand Names and Trademarks,.............. 312
What Kind of Brand to Use?.......................... 313
Who Should Do the Branding?......................... 314
Manufacturer Brands Compete with Dealer
  Brands,........................................... 317
The Strategic Importance of Packaging,.............. 318
What Makes a Good Packaging Design?................. 319
What Is Socially Responsible Packaging?............. 320
Warranties Are Important, Too,...................... 322
 
 
11  Product management and new-product
     development,................................... 328
 
Management of Products over Their Life Cycles,...... 330
Product Life Cycles Vary in Length,................. 332
Product Life Cycles Should Be Related to
  Specific Markets,................................. 335
Planning for Different Stages of the Product Life
  Cycle,............................................ 337
New-Product Planning,............................... 341
An Organized New-Product Development Process
  Is Critical,...................................... 343
Keeping Score on Products,.......................... 351
New-Product Development: A Total Company
  Effort,........................................... 355
Need for Product Managers,.......................... 356
 
 
12  Place and development of channel
     systems, .....................................360
 
"Ideal" Place Objectives Suggested by Goods
  Classes,....................................... 363
Discrepancies Require Channel Specialists,....... 363
Direct Channel Systems May Be Best,
  Sometimes,..................................... 368
Indirect Channels May Be Best, Sometimes,........ 370
The Best Channel System Should Achieve Ideal
  Market Exposure,............................... 372
Channel Systems Can Be Complex,.................. 376
How to Recruit Middlemen,........................ 377
Channels Need to Be Managed,..................... 379
 
 
13  Retailing,......................... 386
 
Planning a Retailer's Strategy,......... 388
Types of Retailers and the Nature of Their
  Offerings,............................ 392
Conventional Retailers-Avoid Price Competition,...... 392
Expand Assortment and Service-To Compete at
  a High Price,......................... 394
Evolution of New Mass-Merchandising Retailers,........396
Some Retailers Focus on Added Convenience,............399
Retailer Types Are Explained by Consumer
  Needs Filled, ......................................402
Why Retailers Evolve and Change...................... 403
Retailer Size and Profits,........................... 406
Location of Retail Facilities,....................... 410
What Does the Future Look Like?...................... 411
 
 
14  Wholesaling,........................ 416
 
What Is a Wholesaler?............................ 418
Possible Wholesaling Functions,.................. 420
Kinds and Costs of Available Wholesalers,........ 421
Merchant Wholesalers Are the Most Numerous,.......423
Agent Middlemen Are Strong on Selling,........... 427
Manufacturers' Sales Branches Provide
  Wholesaling Functions, Too,.................... 430
Other Specialized Middlemen-Facilitators-Fill
  Unique Roles,.................................. 432
Wholesalers Tend to Concentrate Together,........ 433
Comeback and Future of Wholesalers,.............. 434
 
15  Physical distribution,...................... 438
 
The Transporting Function,....................... 441
The Five Modes of Transportation,................ 442
Which Transporting Alternative Is Best,.......... 443
Should You Do It Yourself?....................... 450
The Transporting Rate Structure,................. 450
Marketing Manager May Affect Rates,.............. 451
Freight Forwarders Are Transporting Wholesalers,....452
The Storing Function,.............................. 452
Specialized Storing Facilities Can Be Very
  Helpful,......................................... 454
The Distribution Center-A Different Kind of
  Warehouse,....................................... 456
Physical Distribution Concept Focuses on the
  Whole Distribution System,....................... 457
Evaluate Alternative PD Systems with Total Cost
  Approach,........................................ 458
Physical Distribution Planning as Part of a
  Company's Strategy Planning,..................... 460
Future Physical Distribution Problems and
  Opportunities,................................... 461
 
 
16  Promotion-introduction,....................... 466
 
Several Promotion Methods Are Available,........... 468
Which Methods to Use Depends on Promotion
  Objectives,...................................... 470
Promotion Requires Effective Communication,.........472
Adoption Processes Can Guide Promotion
  Planning,........................................ 475
Good Communication Varies Promotion Blends
  Along Adoption Curve,............................ 477
Promotion Is More Effective If It Reaches Opinion
  Leaders,......................................... 479
May Need a Different Blend for Each Market
  Segment,......................................... 481
Successful Promotion May Be an Economical Blend,... 481
Factors Affecting the Selection of a Promotion
  Blend,........................................... 484
How Typical Promotion Budgets Are Blended,......... 490
Someone Must Plan and Manage the Promotion
  Blend,........................................... 491
Sales Promotion: Do Something Different to
  Stimulate Change,................................ 492
 
 
17  Personal selling, 498
 
The Importance and Role of Personal Selling,........501
Three Basic Sales Tasks Are Needed,................ 503
Order Getters Develop New Business,................ 504
Order Takers-Keep the Business Coming,............. 506
Supporting Sales Force-Informs and Promotes
  in the Channel,.................................. 508
Most Selling Requires a Blend of All Three
  Tasks,........................................... 509
The Right Structure Helps Assign Responsibility,....509
Sound Selection and Training to Build a Sales
  Force,........................................... 511
Compensating and Motivating Salespeople,........... 513
Personal Selling Techniques-Prospecting and
  Presenting,...................................... 517
 
 
18  Mass selling,................................ 526
 
The Importance of Advertising,.................... 528
Advertising Objectives Are Set by Marketing
  Strategy,....................................... 530
Objectives Determine the Kinds of Advertising
  Needed,......................................... 531
Cooperative Advertising May Buy More,............. 535
Choosing the l'Best" Medium-How to Deliver
  the Message,.................................... 536
Planning the "Best" Message-What Is to Be
  Communicated,................................... 541
Advertising Manager Directs Mass Selling,......... 545
Advertising Agencies Often Do the Work,........... 545
Measuring Advertising Effectiveness Is Not Easy,...547
How to Avoid Deceptive Advertising,............... 548
 
 
19  Pricing objectives and policies,............. 552
 
Price Has Many Dimensions,........................ 553
Pricing Objectives Should Guide Pricing,.......... 555
Profit-Oriented Objectives,....................... 556
Sales-Oriented Objectives,........................ 557
Status Quo Pricing Objectives,.................... 559
Most Firms Set Specific Pricing Policies-To
  Reach Objectives,............................... 559
Price Flexibility Policies,....................... 560
Price Level Policies-Over the Product Life
  Cycle,.......................................... 561
Most Price Structures Are Built around List
  Prices,......................................... 565
Discount Policies-Reductions from List Prices,.... 565
Allowance Policies-Off List Prices,............... 569
Some Customers Get Extra Somethings,.............. 569
List Price May Depend on Geographic Pricing
  Policies,....................................... 570
Legality of Pricing Policies,..................... 572
 
 
Appendix B  Marketing arithmetic,................ 580
 
The Operating Statement,...........................581
Detailed Analysis of Sections of the Operating
  Statement,...................................... 584
Computing the Stockturn Rate,..................... 587
Operating Ratios Help Analyze the Business,....... 588
Markups,.......................................... 589
Markdown Ratios Help Control Retail Operations,... 590
Return on Investment (ROI) Reflects Asset Use,.... 591
 
 
20  Price setting in the real world,............. 594
 
Pricing by Wholesalers and Retailers,............. 595
Pricing by Producers,............................. 599
Average-Cost Pricing Is Common and
  Dangerous,...................................... 599
Marketing Manager Must Consider Various Kinds
  of Costs,....................................... 600
Some Firms Add a Target Return to Cost,........... 605
Break-Even Analysis Can Evaluate Possible
  Prices,......................................... 606
Traditional Demand and Supply Analysis Shows
  How to Maximize Profits,........................ 608
Marginal Analysis Applies in Oligopoly, Too,...... 616
Some Price Setters Do Estimate Demand,............ 618
Pricing a Full Line,.............................. 623
Bid Pricing Depends Heavily on Costs,............. 624
Planning, Implementing, and Controlling Marketing
  Activities,..................................... 628
 
 
21  Planning and implementing marketing
     programs,.................................... 630
 
Marketing Planning Is More than Assembling the
  Four Ps,........................................ 631
Blending the Four Ps Takes Understanding of a
  Target Market,.................................. 633
Response Functions May Help Plan Better
  Strategies,..................................... 635
Typical Marketing Mixes Related to Goods
  Classes,........................................ 640
Typical Mixes for Consumer Goods,................. 642
Typical Mixes for Industrial Goods,............... 645
Special Factors May Affect the Typical Marketing
  Mix,............................................ 648
Planning Must Use the Product Life Cycle,......... 651
Forms for Each Strategy Can Make Planning
  Easier,......................................... 652
Companies Plan and Implement Marketing
  Programs,....................................... 653
Allocating Budgets for a Marketing Program,....... 656
Program Implementation Must Be Planned,........... 657
 
 
22  Controlling marketing plans and programs,.... 662
 
Sales Analysis Shows What's Happening,............ 664
Performance Analysis Looks for Differences,....... 665
Performance Indices Simplify Human Analysis,.......667
A Series of Performance Analyses May Find the
  Real Problem,................................... 668
Marketing Cost Analysis-Controlling Costs, Too,....672
Should All Costs Be Allocated?.................... 677
Planning and Control Combined..................... 681
The Marketing Audit,.............................. 683
 
 
23  Marketing strategy planning for
     international markets!....................... 688
 
The Importance of International Markets to the
  United States,.................................. 690
Degrees of Involvement in International
  Marketing,...................................... 690
Multinational Corporations Evolve to Meet
  International Challenge,........................ 693
Identifying Different Kinds of International
  Opportunities,.................................. 696
International Marketing Requires Even More
  Segmenting,..................................... 698
Regional Groupings May Mean More Than
  National Boundaries,............................ 699
Stages of Economic Development Help Define
  Markets,........................................ 701
How These Stages Can Be Useful in Finding
  Market Opportunities,........................... 704
Other Market Dimensions May Suggest
  Opportunities, Too,............................. 705
Careful Market Analysis Is Vital,................. 710
Organizing for International Marketing,........... 711
 
PART V
 
Marketing Reappraised,............................ 714
 
24  Marketing in a consumer-oriented society:
     Appraisal and challenges,.................... 716
 
Marketing Must Be Evaluated at Two Levels,........ 718
How Should Marketing Be Evaluated?................ 718
Can Consumer Satisfaction Be Measured?............ 719
Micro-Marketing Often Does Cost Too Much,......... 721
Macro-Marketing Does Not Cost Too Much,........... 724
Challenges Facing Marketers,...................... 731
 
Appendix C  Career plamling in marketing,.........740
 
There's a Place in Marketing for You,............. 741
Marketing Jobs Can Pay Well,...................... 741
Develop Your Own Personal Marketing Strategy,......743
Conduct Your Own Personal Analysis,............... 743
Environment Analysis,............................. 750
Develop Objectives,............................... 752
Developing Your Marketing Plan,................... 753
Implementing Your Marketing Plan,................. 754
 
 
CASES
 
Guide to the use of these cases,.................. 757
 
1. Foodco, Inc.,.................................. 758
2. Borman Cleaning Company,....................... 759
3. Apex Chemical Company,......................... 760
4. Uncle Lyle's, Inc.,............................ 762
5. Indian Steel Company,.......................... 763
6. The Lido,...................................... 765
7. Nite-Time Motel,............................... 766
8. Iceland,....................................... 767
9. Barnes Florist Shop,........................... 768
10. Revon Company,................................ 770
11. Pang Corporation,............................. 771
12. Mason Sports Shop,............................ 771
13. Visual Services, Inc.,........................ 773
14. Miller Company,............................... 774
15. Cooper Lumber Company,........................ 775
16. Meir Company,................................. 776
17. Dewitt National Bank,......................... 777
18. Gray Sports Company,.......................... 778
19. Cabco Inc.,................................... 779
20. York Furniture Company,....................... 781
21. Newman Dance Studio,.......................... 782
22. Acme Wire, Inc.,.............................. 784
23. Speedy Photo Company,......................... 784
24. The Westco Machinery Company,................. 786
25. Mountain View Company,........................ 788
26. Custom Manufacturing Company,................. 789
27. Perry Manufacturing Company,.................. 791
28. Servo, Inc.,.................................. 792
29. Tower Manufacturing Company,.................. 793
30. Multi Foods Limited,.......................... 794
31. Visiting Nurses Association (VNA),.............796
32. Sunshine Realty,.............................. 798
33. Mayfair Detergent Company,.................... 799
34. Cook & Morrison, CPAs,........................ 802
35. Diamond Jim's Pizza Company,.................. 803
 
 Glossary,......................... 807
 
 Illustration credits,............. 825
 
 Author Index,..................... 829
 
 Subject Index,.................... 835