Principles of Marketing (with FREE Marketing Updates access code card)

by Kotler, Philip; Armstrong, Gary

• ISBN13: 9780131088306
• ISBN10: 0131088300
• Edition: 10th
• Format: Package
• Copyright: 2004-01-01
• Publisher: Pearson College Div

Summary

For the Principles of Marketing course. Ranked the #1 selling introductory marketing text, Kotler and Armstrong's Principles of Marketing provides an authoritative and practical introduction to marketing. The Tenth Edition is organized around a managing customer relationships framework that is introduced in the first two chapters, and then built upon throughout the book. Real world applications appear in every chapter and every vignette is new or has been updated. The text is complemented by an extensive ancillary package, from all new videos on VHS, online, and DVD to a new Presentation Manager CD-ROM for instructors.

Table of Contents

About the Authors	v
Preface	xv
Part I UNDERSTANDING MARKETING AND THE MARKETING PROCESS	2	(102)
Marketing: Managing Profitable Customer Relationships	3	(36)
What Is Marketing?	5	(6)
Marketing Defined	5	(1)
Needs, Wants, and Demands	6	(1)
Marketing Offers---Products, Services, and Experiences	6	(3)
Value and Satisfaction	9	(1)
Exchange, Transactions, and Relationships	9	(1)
Markets	10	(1)
Marketing	10	(1)
Marketing Management	11	(4)
Customer and Demand Management	11	(1)
Marketing Management Orientations	12	(3)
Customer Relationship Management	15	(7)
Attracting, Retaining, and Growing Customers	17	(3)
Building Customer Relationships and Customer Equity	20	(2)
Marketing Challenges in the New, ``Connected'' Millennium	22	(11)
Technologies for Connecting	23	(2)
Connecting with Customers	25	(2)
Connecting with Marketing Partners	27	(1)
Connecting with the World Around Us	28	(4)
The New, Connected World of Marketing	32	(1)
Looking Back: Reviewing the Concepts	33	(1)
Reviewing the Key Terms	34	(1)
Discussing the Concepts	34	(1)
Applying the Concepts	34	(1)
Digital Connections	35	(1)
Video Short: SatMetrix: Helping to Build Customer Relationships	35	(1)
Company Case: Botox: Almost Trouble-Free New Faces	36	(3)
Company and Marketing Strategy: Partnering to Build Customer Relationships	39	(30)
Strategic Planning	41	(10)
Defining a Market-Oriented Mission	41	(4)
Setting Company Objectives and Goals	45	(1)
Designing the Business Portfolio	45	(5)
Strategic Planning and Small Businesses	50	(1)
Planning Marketing: Partnering to Build Customer Relationships	51	(2)
Partnering with Others in the Company	52	(1)
Partnering with Others in the Marketing System	53	(1)
The Marketing Process	53	(6)
Relationships with Consumers	54	(2)
Marketing Strategies for Competitive Advantage	56	(1)
Developing the Marketing Mix	56	(3)
Managing the Marketing Effort	59	(4)
Marketing Analysis	59	(1)
Marketing Planning	59	(1)
Marketing Implementation	59	(2)
Marketing Department Organization	61	(1)
Marketing Control	62	(1)
The Marketing Environment	62	(1)
Looking Back: Reviewing the Concepts	63	(1)
Reviewing the Key Terms	64	(1)
Discussing the Concepts	65	(1)
Applying the Concepts	65	(1)
Digital Connections	65	(1)
Video Short: NerveWire: Strategic Planning for E-Commerce	66	(1)
Company Case: Trap-Ease America: the Big Cheese of Mousetraps	66	(3)
Marketing in the Digital Age: Making New Customer Connections	69	(35)
Major Forces Shaping the Internet Age	71	(2)
Digitalization and Connectivity	71	(1)
The Internet Explosion	71	(1)
New Types of Intermediaries	72	(1)
Customization and Customerization	72	(1)
Marketing Strategy in the New Digital Age	73	(3)
E-Business, E-Commerce, and E-Marketing in the New Digital Age	74	(1)
Benefits to Buyers	74	(1)
Benefits to Sellers	75	(1)
E-Commerce Domains	76	(6)
B2C (Business to Consumer)	76	(3)
B2B (Business to Business)	79	(2)
C2C (Consumer to Consumer)	81	(1)
C2B (Consumer to Business)	82	(1)
Conducting E-Commerce	82	(12)
Click-Only Versus Click-and-Mortar E-Marketers	82	(4)
Setting Up an E-Marketing Presence	86	(8)
The Promise and Challenges of E-Commerce	94	(4)
The Continuing Promise of E-Commerce	96	(1)
The Web's Darker Side	96	(2)
Looking Back: Reviewing the Concepts	98	(1)
Reviewing the Key Terms	99	(1)
Discussing the Concepts	99	(1)
Applying the Concepts	100	(1)
Digital Connections	100	(1)
Video Short: FindWhat.Com: Searching for Success	101	(1)
Company Case: EBay: Connecting in China	101	(2)
Case Pilot: Understanding Marketing and Marketing Processes	103	(1)
Part II DEVELOPING MARKETING OPPORTUNITIES AND STRATEGIES	104	(170)
The Marketing Environment	105	(36)
The Company's Microenvironment	107	(4)
The Company	108	(1)
Suppliers	108	(1)
Marketing Intermediaries	108	(1)
Customers	109	(1)
Competitors	109	(1)
Publics	110	(1)
The Company's Macroenvironment	111	(21)
Demographic Environment	111	(9)
Economic Environment	120	(3)
Natural Environment	123	(1)
Technological Environment	124	(1)
Political Environment	125	(2)
Cultural Environment	127	(5)
Responding to the Marketing Environment	132	(2)
Looking Back: Reviewing the Concepts	134	(1)
Reviewing the Key Terms	135	(1)
Discussing the Concepts	135	(1)
Applying the Concepts	135	(1)
Digital Connections	136	(1)
Video Short: Strike Holdings: Rediscovering the Past	137	(1)
Company Case: The Prius: Leading a Wave of Hybrids	137	(4)
Managing Marketing Information	141	(36)
Assessing Marketing Information Needs	143	(1)
Developing Marketing Information	144	(17)
Internal Data	144	(1)
Marketing Intelligence	145	(2)
Marketing Research	147	(14)
Analyzing Marketing Information	161	(2)
Customer Relationship Management (CRM)	161	(2)
Distributing and Using Marketing Information	163	(1)
Other Marketing Information Considerations	164	(5)
Marketing Research in Small Businesses and Not-for-Profit Organizations	164	(2)
International Marketing Research	166	(1)
Public Policy and Ethics in Marketing Research	167	(2)
Looking Back: Reviewing the Concepts	169	(1)
Reviewing the Key Terms	170	(1)
Discussing the Concepts	171	(1)
Applying the Concepts	171	(1)
Digital Connections	172	(1)
Video Short: Unica: Building Better Customer Relationships	172	(1)
Company Case: Enterprise Rent-A-Car: Measuring Service Quality	173	(4)
Consumer Markets and Consumer Buyer Behavior	177	(36)
Model of Consumer Behavior	178	(1)
Characteristics Affecting Consumer Behavior	179	(18)
Cultural Factors	179	(4)
Social Factors	183	(3)
Personal Factors	186	(5)
Psychological Factors	191	(6)
Types of Buying-Decision Behavior	197	(1)
Complex Buying Behavior	197	(1)
Dissonance-Reducing Buying Behavior	197	(1)
Habitual Buying Behavior	198	(1)
Variety-Seeking Buying Behavior	198	(1)
The Buyer Decision Process	198	(3)
Need Recognition	199	(1)
Information Search	199	(1)
Evaluation of Alternatives	200	(1)
Purchase Decision	200	(1)
Postpurchase Behavior	201	(1)
The Buyer Decision Process for New Products	201	(5)
Stages in the Adoption Process	203	(1)
Individual Differences in Innovativeness	203	(1)
Influence of Product Characteristics on Rate of Adoption	204	(1)
Consumer Behavior Across International Borders	205	(1)
Looking Back: Reviewing the Concepts	206	(1)
Reviewing the Key Terms	207	(1)
Discussing the Concepts	207	(1)
Applying the Concepts	207	(1)
Digital Connections	208	(1)
Video Short: Zoots: Dry Cleaning--Your Way	209	(1)
Company Case: The Whirlpool Duet: A Soap Opera For Kids?	209	(4)
Business Markets and Business Buyer Behavior	213	(24)
Business Markets	214	(3)
Characteristics of Business Markets	214	(3)
A Model of Business Buyer Behavior	217	(1)
Business Buyer Behavior	217	(11)
Major Types of Buying Situations	219	(1)
Participants in the Business Buying Process	220	(1)
Major Influences on Business Buyers	221	(3)
The Business Buying Process	224	(3)
Business Buying on the Internet	227	(1)
Institutional and Government Markets	228	(3)
Institutional Markets	228	(1)
Government Markets	229	(2)
Looking Back: Reviewing the Concepts	231	(1)
Reviewing the Key Terms	232	(1)
Discussing the Concepts	232	(1)
Applying the Concepts	232	(1)
Digital Connections	233	(1)
Video Short: Whereoware: Connecting Sellers to Business Buyers	233	(1)
Company Case: Emerson Process Management: Accelerating on the Internet	234	(3)
Segmentation, Targeting, and Positioning: Building the Right Relationships with the Right Customers	237	(37)
Market Segmentation	239	(12)
Segmenting Consumer Markets	239	(9)
Segmenting Business Markets	248	(1)
Segmenting International Markets	248	(2)
Requirements for Effective Segmentation	250	(1)
Target Marketing	251	(8)
Evaluating Market Segments	251	(1)
Selecting Target Market Segments	251	(6)
Socially Responsible Target Marketing	257	(2)
Positioning for Competitive Advantage	259	(9)
Choosing a Positioning Strategy	259	(8)
Communicating and Delivering the Chosen Position	267	(1)
Looking Back: Reviewing the Concepts	268	(1)
Reviewing the Key Terms	269	(1)
Discussing the Concepts	269	(1)
Applying the Concepts	269	(1)
Digital Connections	270	(1)
Video Short: SmarterKids.Com: Smarter Targeting	270	(1)
Company Case: GM: Downsizing the Hummer	271	(2)
Case Pilot: Developing Marketing Opportunities and Strategies	273	(1)
Part III DEVELOPING THE MARKETING MIX	274	(290)
Product, Services, and Branding Strategies	275	(38)
What Is a Product?	276	(7)
Products, Services, and Experiences	277	(2)
Levels of Product and Services	279	(1)
Product and Service Classifications	280	(3)
Product and Service Decisions	283	(8)
Individual Product and Service Decisions	283	(6)
Product Line Decisions	289	(1)
Product Mix Decisions	290	(1)
Branding Strategy: Building Strong Brands	291	(7)
Brand Equity	291	(1)
Building Strong Brands	292	(5)
Managing Brands	297	(1)
Services Marketing	298	(6)
The Nature and Characteristics of a Service	299	(1)
Marketing Strategies for Service Firms	299	(5)
Additional Product Considerations	304	(2)
Product Decisions and Social Responsibility	304	(1)
International Product and Services Marketing	304	(2)
Looking Back: Reviewing the Concepts	306	(1)
Reviewing the Key Terms	307	(1)
Discussing the Concepts	307	(1)
Applying the Concepts	308	(1)
Digital Connections	308	(1)
Video Short: Siegelgale: Great Brands on a Compelling Promise	309	(1)
Company Case: Starbucks: Brewing a Worldwide Experience	310	(3)
New-Product Development and Product Life-Cycle Strategies	313	(30)
New-Product Development Strategy	315	(13)
Idea Generation	315	(5)
Idea Screening	320	(1)
Concept Development and Testing	320	(2)
Marketing Strategy Development	322	(1)
Business Analysis	323	(1)
Product Development	323	(1)
Test Marketing	324	(3)
Commercialization	327	(1)
Organizing for New-Product Development	327	(1)
Product Life-Cycle Strategies	328	(9)
Introduction Stage	332	(1)
Growth Stage	332	(1)
Maturity Stage	333	(2)
Decline Stage	335	(2)
Looking Back: Reviewing the Concepts	337	(1)
Reviewing the Key Terms	338	(1)
Discussing the Concepts	338	(1)
Applying the Concepts	339	(1)
Digital Connections	339	(1)
Video Short: Sensable Technologies: Designing Products Digitally	340	(1)
Company Case: Red Bull: Waking A New Market	340	(3)
Pricing Considerations and Approaches	343	(26)
What Is a Price?	345	(2)
Factors to Consider When Setting Prices	347	(10)
Internal Factors Affecting Pricing Decisions	347	(5)
External Factors Affecting Pricing Decisions	352	(5)
General Pricing Approaches	357	(6)
Cost-Based Pricing	357	(2)
Value-Based Pricing	359	(2)
Competition-Based Pricing	361	(2)
Looking Back: Reviewing the Concepts	363	(1)
Reviewing the Key Terms	364	(1)
Discussing the Concepts	364	(1)
Applying the Concepts	364	(1)
Digital Connections	365	(1)
Video Short: Metreo: Automating Pricing?	365	(1)
Company Case: DVDs: Lieberfarbian Economics?	366	(3)
Pricing Strategies	369	(28)
New-Product Pricing Strategies	370	(2)
Market-Skimming Pricing	371	(1)
Market-Penetration Pricing	371	(1)
Product Mix Pricing Strategies	372	(3)
Product Line Pricing	372	(1)
Optional-Product Pricing	372	(1)
Captive-Product Pricing	373	(1)
By-Product Pricing	374	(1)
Product Bundle Pricing	375	(1)
Price Adjustment Strategies	375	(8)
Discount and Allowance Pricing	375	(1)
Segmented Pricing	376	(1)
Psychological Pricing	377	(1)
Promotional Pricing	378	(1)
Geographical Pricing	379	(3)
International Pricing	382	(1)
Price Changes	383	(3)
Initiating Price Changes	383	(2)
Responding to Price Changes	385	(1)
Public Policy and Pricing	386	(5)
Pricing Within Channel Levels	387	(3)
Pricing Across Channel Levels	390	(1)
Looking Back: Reviewing the Concepts	391	(1)
Reviewing the Key Terms	392	(1)
Discussing the Concepts	392	(1)
Applying the Concepts	393	(1)
Digital Connections	393	(1)
Video Short: Site 59: Adding Value for Customers Through Pricing	394	(1)
Company Case: Southeast Bank: Free Checking?	394	(3)
Marketing Channels and Supply Chain Management	397	(38)
Supply Chains and the Value Delivery Network	399	(1)
The Nature and Importance of Marketing Channels	400	(3)
How Channel Members Add Value	401	(1)
Number of Channel Levels	402	(1)
Channel Behavior and Organization	403	(6)
Channel Behavior	403	(2)
Vertical Marketing Systems	405	(2)
Horizontal Marketing Systems	407	(1)
Multichannel Distribution Systems	408	(1)
Changing Channel Organization	408	(1)
Channel Design Decisions	409	(6)
Analyzing Consumer Needs	409	(2)
Setting Channel Objectives	411	(1)
Identifying Major Alternatives	412	(2)
Evaluating the Major Alternatives	414	(1)
Designing International Distribution Channels	414	(1)
Channel Management Decisions	415	(3)
Selecting Channel Members	415	(1)
Managing and Motivating Channel Members	416	(2)
Evaluating Channel Members	418	(1)
Public Policy and Distribution Decisions	418	(1)
Marketing Logistics and Supply Chain Management	419	(9)
The Nature and Importance of Marketing Logistics	419	(1)
Goals of the Logistics System	420	(1)
Major Logistics Functions	420	(3)
Integrated Logistics Management	423	(5)
Looking Back: Reviewing the Concepts	428	(1)
Reviewing the Key Terms	429	(1)
Discussing the Concepts	429	(1)
Applying the Concepts	429	(1)
Digital Connections	430	(1)
Video Short: Celarix: Web-Based Logistics Management	431	(1)
Company Case: Staples, Inc.: Revising the Strategy	431	(4)
Retailing and Wholesaling	435	(30)
Retailing	436	(17)
Types of Retailers	436	(5)
Retailer Marketing Decisions	441	(6)
The Future of Retailing	447	(6)
Wholesaling	453	(6)
Types of Wholesalers	455	(2)
Wholesaler Marketing Decisions	457	(1)
Trends in Wholesaling	458	(1)
Looking Back: Reviewing the Concepts	459	(1)
Reviewing the Key Terms	460	(1)
Discussing the Concepts	460	(1)
Applying the Concepts	461	(1)
Digital Connections	461	(1)
Video Short: Accordia: Balancing Traditional and Online Retailing	462	(1)
Company Case: Delia's: Searching for the Right Way to Connect with Teens	462	(3)
Integrated Marketing Communication Strategy	465	(28)
The Marketing Communications Mix	467	(1)
Integrated Marketing Communications	467	(4)
The Changing Communications Environment	467	(1)
The Need for Integrated Marketing Communications	468	(3)
A View of the Communication Process	471	(1)
Steps in Developing Effective Communication	472	(8)
Identifying the Target Audience	472	(1)
Determining the Communication Objectives	472	(1)
Designing a Message	473	(3)
Choosing Media	476	(3)
Selecting the Message Source	479	(1)
Collecting Feedback	479	(1)
Setting the Total Promotion Budget and Mix	480	(6)
Setting the Total Promotion Budget	480	(1)
Setting the Overall Promotion Mix	481	(4)
Integrating the Promotion Mix	485	(1)
Socially Responsible Marketing Communication	486	(1)
Advertising and Sales Promotion	486	(1)
Personal Selling	486	(1)
Looking Back: Reviewing the Concepts	487	(1)
Reviewing the Key Terms	488	(1)
Discussing the Concepts	488	(1)
Applying the Concepts	489	(1)
Digital Connections	489	(1)
Video Short: Schwartz Communications: Spreading the Word Through Public Relations	490	(1)
Company Case: Procter & Gamble: Feeling the Heat	490	(3)
Advertising, Sales Promotion, and Public Relations	493	(32)
Advertising	494	(15)
Setting Advertising Objectives	494	(2)
Setting the Advertising Budget	496	(1)
Developing Advertising Strategy	497	(9)
Evaluating Advertising	506	(1)
Other Advertising Considerations	507	(2)
Sales Promotion	509	(6)
Rapid Growth of Sales Promotion	510	(1)
Sales Promotion Objectives	510	(1)
Major Sales Promotion Tools	510	(4)
Developing the Sales Promotion Program	514	(1)
Public Relations	515	(4)
The Role and Impact of Public Relations	515	(2)
Major Public Relations Tools	517	(2)
Looking Back: Reviewing the Concepts	519	(1)
Reviewing the Key Terms	519	(1)
Discussing the Concepts	519	(1)
Applying the Concepts	520	(1)
Digital Connections	521	(1)
Video Short: Potty Perfection: Creating a Customer Experience	521	(1)
Company Case: Pepsi: Promoting Nothing	522	(3)
Personal Selling and Direct Marketing	525	(39)
Personal Selling	526	(2)
The Nature of Personal Selling	526	(1)
The Role of the Sales Force	527	(1)
Managing the Sales Force	528	(12)
Designing Sales Force Strategy and Structure	528	(5)
Recruiting and Selecting Salespeople	533	(1)
Training Salespeople	534	(3)
Compensating Salespeople	537	(1)
Supervising Salespeople	537	(2)
Evaluating Salespeople	539	(1)
The Personal Selling Process	540	(3)
Steps in the Selling Process	540	(3)
Personal Selling and Customer Relationship Management	543	(1)
Direct Marketing	543	(14)
The New Direct-Marketing Model	543	(1)
Benefits and Growth of Direct Marketing	544	(1)
Customer Databases and Direct Marketing	544	(4)
Forms of Direct Marketing	548	(6)
Integrated Direct Marketing	554	(1)
Public Policy and Ethical Issues in Direct Marketing	555	(2)
Looking Back: Reviewing the Concepts	557	(1)
Reviewing the Key Terms	558	(1)
Discussing the Concepts	559	(1)
Applying the Concepts	559	(1)
Digital Connections	560	(1)
Video Short: MarketSoft: Turning Prospects into Customers	560	(1)
Company Case: Jefferson-Pilot Financial: Growing the Sales Force	561	(2)
Case Pilot: Developing the Marketing Mix	563	(1)
Part IV MANAGING MARKETING	564
Creating Competitive Advantage	565	(28)
Competitor Analysis	567	(6)
Identifying Competitors	567	(1)
Assessing Competitors	568	(3)
Selecting Competitors to Attack and Avoid	571	(1)
Designing a Competitive Intelligence System	572	(1)
Competitive Strategies	573	(12)
Approaches to Marketing Strategy	573	(1)
Basic Competitive Strategies	574	(3)
Competitive Positions	577	(1)
Market Leader Strategies	577	(3)
Market Challenger Strategies	580	(1)
Market Follower Strategies	581	(1)
Market Nicher Strategies	582	(3)
Balancing Customer and Competitor Orientations	585	(1)
Looking Back: Reviewing the Concepts	586	(1)
Reviewing the Key Terms	587	(1)
Discussing the Concepts	587	(1)
Applying the Concepts	587	(1)
Digital Connections	588	(1)
Video Short: Telephia: Keeping an Eye on the Competition	588	(1)
Company Case: Enterprise Rent-A-Car: Selling the Dream	589	(4)
The Global Marketplace	593	(34)
Global Marketing into the Twenty-First Century	595	(1)
Looking at the Global Marketing Environment	596	(10)
The International Trade System	598	(2)
Economic Environment	600	(1)
Political-Legal Environment	601	(1)
Cultural Environment	602	(4)
Deciding Whether to Go International	606	(1)
Deciding Which Markets to Enter	606	(3)
Deciding How to Enter the Market	609	(3)
Exporting	609	(1)
Joint Venturing	610	(2)
Direct Investment	612	(1)
Deciding on the Global Marketing Program	612	(8)
Product	613	(2)
Promotion	615	(2)
Price	617	(1)
Distribution Channels	618	(2)
Deciding on the Global Marketing Organization	620	(1)
Looking Back: Reviewing the Concepts	620	(1)
Reviewing the Key Terms	621	(1)
Discussing the Concepts	621	(1)
Applying the Concepts	622	(1)
Digital Connections	622	(1)
Video Short: Idiom: Translating Culture in Cyberspace	623	(1)
Company Case: Wal-Mart: The Global Retailer	623	(4)
Marketing and Society: Social Responsibility and Marketing Ethics	627
Social Criticisms of Marketing	629	(11)
Marketing's Impact on Individual Consumers	629	(7)
Marketing's Impact on Society as a Whole	636	(3)
Marketing's Impact on Other Businesses	639	(1)
Citizen and Public Actions to Regulate Marketing	640	(7)
Consumerism	640	(2)
Environmentalism	642	(5)
Public Actions to Regulate Marketing	647	(1)
Business Actions Toward Socially Responsible Marketing	647	(9)
Enlightened Marketing	647	(5)
Marketing Ethics	652	(4)
Looking Back: Reviewing the Concepts	656	(1)
Reviewing the Key Terms	657	(1)
Discussing the Concepts	657	(1)
Applying the Concepts	657	(1)
Digital Connections	658	(1)
Video Short: Two Hands: Doing Well by Doing Good	658	(1)
Company Case: Vitango: Fighting Malnutrition	659	(2)
Case Pilot: Managing Marketing	661
APPENDIX 1: Measuring and Forecasting Demand	1	(8)
Measuring Current Market Demand	1	(4)
Estimating Total Market Demand	1	(2)
Estimating Area Market Demand	3	(1)
Estimating Actual Sales and Market Shares	4	(1)
Forecasting Future Demand	5	(2)
Survey of Buyers' Intentions	5	(1)
Composite of Sales Force Opinions	6	(1)
Expert Opinion	6	(1)
Test Marketing	6	(1)
Past-Sales Analysis	7	(1)
Leading Indicators	7	(1)
Key Terms	7	(2)
APPENDIX 2: Marketing Arithmetic	9
Operating Statement	9	(2)
Analytic Ratios	11	(1)
Markups and Markdowns	12	(2)
Key Terms	14
References	1	(1)
Credits	1	(1)
Glossary	1	(1)
Index	1