Essentials of Marketing

by LAMB/HAIR/MCDANIEL

• ISBN13: 9780324282924
• ISBN10: 0324282923
• Edition: 4th
• Format: Paperback
• Copyright: 2004-01-09
• Publisher: South-Western College Pub

Summary

Essentials of Marketing, 4e, continues the tradition of providing comprehensive, up-to-the minute coverage of key marketing topics in a brief text. Key principles are illustrated by hundreds of fresh, new examples, while the latest concepts and theories are covered in detail with numerous illustrations. Organized around the marketing mix, this thoroughly revised text features a comprehensive and companion Web site.

Table of Contents

Preface	xvii
PART 1 The World of Marketing	1	(108)
Cross-Functional Connections: Cross-Funtional Business Systems: Putting the Customer at the Center	2	(2)
An Overview of Marketing	4	(24)
What Is Marketing?	6	(1)
The Concept of Exchange	6	(1)
Marketing Management Philosophies	6	(3)
Production Orientation	6	(1)
Sales Orientation	7	(1)
Market Orientation	8	(1)
Societal Marketing Orientation	9	(1)
Implementation of the Marketing Concept	9	(4)
Customer Value and Customer Satisfaction	9	(2)
Building Relationships	11	(2)
The Marketing Process	13	(1)
Environmental Scanning	14	(1)
Organization Mission	14	(1)
Marketing Opportunity Analysis	14	(1)
Marketing Strategy	14	(3)
Target Market Strategy	15	(1)
Marketing Objectives	15	(1)
Marketing Mix	16	(1)
Implementation	17	(1)
Evaluation	17	(1)
Why Study Marketing?	17	(2)
Marketing Plays an Important Role in Society	18	(1)
Marketing Is Important to Business	18	(1)
Marketing Offers Outstanding Career Opportunities	19	(1)
Marketing Affects Your Life Every Day	19	(1)
Looking Ahead	19	(1)
Connect It	20	(1)
Use It	21	(1)
Review It	21	(2)
Define It	23	(1)
Apply It	23	(1)
Think About It	23	(1)
Try It Entrepreneurship Case: A Noode for a New Generation	24	(1)
Watch It	25	(1)
Flip It	26	(1)
Click It	26	(2)
Ethics, Social Responsibility, and the Marketing Environment	28	(36)
Ethical Behavior in Business	30	(1)
Morality and Business Ethics	30	(1)
Ethical Decision Making	31	(2)
Ethical Guidelines	31	(2)
Corporate Social Responsibility	33	(1)
The External Marketing Environment	34	(1)
Understanding the External Environment	35	(1)
Environmental Management	35	(1)
Social Factors	36	(3)
American Values	36	(1)
The Growth of Component Lifestyles	37	(1)
The Changing Role of Families and Working Women	38	(1)
Demographic Factors	39	(5)
Generation Y	41	(1)
Generation X	41	(1)
Balry Boomers: America's Mass Market	42	(1)
Older Consumers: Not Just Grand-parents	43	(1)
Growing Ethnic Markets	44	(3)
Ethnic and Cultural Diversity	44	(3)
Economic Factors	47	(2)
Rising Incomes	47	(1)
Inflation	48	(1)
Recession	48	(1)
Technological and Resource Factors	49	(1)
Political and Legal Factors	50	(4)
Federal Legislation	51	(1)
State Laws	52	(1)
Regulatory Agencies	52	(2)
Competitive Factors	54	(1)
Competition for Market Share and Profits	54	(1)
Global Competition	55	(1)
Connect It	55	(1)
Use It	56	(1)
Review It	56	(3)
Define It	59	(1)
Apply It	59	(1)
Think About It	60	(1)
Try It Entrepreneurship Case: Identix: Shedding Light on Modern Security	60	(1)
Watch It	61	(1)
Flip It	61	(1)
Click It	62	(2)
Developing a Global Vision	64	(45)
Rewards of Global Marketing	66	(3)
Importance of Global Marketing to the United States	67	(1)
The Fear of Trade and Globalization	67	(1)
Benefits of Globalization	68	(1)
The Globalization Track Record	69	(1)
The Impact of Terrorism on Global Trade	69	(1)
Multinational Firms	69	(3)
Multinational Advantage	71	(1)
Global Marketing Standardization	71	(1)
External Environment Facing Global Marketers	72	(10)
Culture	72	(2)
Economic and Technological Development	74	(1)
Political Structure and Actions	75	(6)
Demographic Makeup	81	(1)
Natural Resources	82	(1)
Global Marketing by the Individual Firm	82	(6)
Export	83	(1)
Licensing	84	(2)
Contract Manufacturing	86	(1)
Joint Venture	86	(1)
Direct Investment	87	(1)
The Global Marketing Mix	88	(7)
Product and Promotion	88	(4)
Pricing	92	(2)
Distribution	94	(1)
The Impact of the Internet	95	(1)
Connect It	96	(1)
Use It	96	(1)
Review It	97	(2)
Define It	99	(1)
Apply It	99	(1)
Think About It	100	(1)
Try It Entrepreneurship Case: Israel: A Ray of Light in the Global Optics Industry	100	(1)
Watch It	101	(1)
Flip It	101	(1)
Click It	102	(2)
Closing	104	(1)
Marketing Miscues: Kmart's Blue Lights Are in the Red	104	(1)
Critical Thinking Case: Hewlett-Packard's Cooltown Puts Everyone and Everything on the Web	105	(1)
Marketing Planning Activities	106	(2)
Cross-Functional Connections Solutions	108	(1)
PART 2 Analyzing Marketing Opportunities	109	(150)
Cross-Functional Connections: Information Integration to Satisfy Customer Wants and Needs	110	(2)
Consumer Decision Making	112	(44)
The Importance of Understanding Consumer Behavior	114	(1)
The Consumer Decision-Making Process	114	(6)
Need Recognition	114	(2)
Information Search	116	(2)
Evaluation of Alternatives and Purchase	118	(1)
Postpurchase Behavior	119	(1)
Types of Consumer Buying Decisions and Consumer Involvement	120	(3)
Factors Determining the Level of Consumer Involvement	121	(1)
Marketing Implications of Involvement	122	(1)
Factors Influencing Consumer Buying Decisions	123	(1)
Cultural Influences on Consumer Buying Decisions	123	(8)
Culture and Values	123	(4)
Understanding Culture Differences	127	(1)
Subculture	128	(1)
Social Class	129	(2)
Social Influences on Consumer Buying Decisions	131	(6)
Reference Groups	132	(1)
Opinion Leaders	133	(3)
Family	136	(1)
Individual Influences on Consumer Buying Decisions	137	(3)
Gender	137	(1)
Age and Family Life-Cycle Stage	138	(1)
Personality, Self-Concept, and Lifestyle	139	(1)
Psychological Influences on Consumer Buying Decisions	140	(8)
Perception	141	(2)
Motivation	143	(2)
Learning	145	(1)
Beliefs and Attitudes	146	(2)
Connect It	148	(1)
Use It	148	(1)
Review It	149	(2)
Define It	151	(1)
Apply It	152	(1)
Think About It	152	(1)
Try It Entrepreneurship Case: Bucking the Trend: Is ``Family'' the Next Theme Restaurant?	152	(2)
Watch It	154	(1)
Flip It	154	(1)
Click It	154	(2)
Business Marketing	156	(28)
What Is Business Marketing?	158	(1)
Business Marketing on the Internet	158	(3)
Two Success Stories	158	(1)
Potential Unrealized	159	(1)
Benefits of Business Marketing on the Internet	159	(2)
Relationship Marketing and Strategic Alliances	161	(1)
Strategic Alliances	161	(1)
Relationships in Other Cultures	162	(1)
Major Categories of Business Customers	162	(3)
Producers	162	(1)
Resellers	163	(1)
Governments	164	(1)
Institutions	164	(1)
The North American Industry Classification System	165	(1)
Business versus Consumer Markets	165	(6)
Demand	167	(2)
Purchase Volume	169	(1)
Number of Customers	169	(1)
Location of Buyers	169	(1)
Distribution Structure	169	(1)
Nature of Buying	170	(1)
Nature of Buying Influence	170	(1)
Type of Negotiations	170	(1)
Use of Reciprocity	170	(1)
Use of Leasing	170	(1)
Primary Promotional Method	170	(1)
Types of Business Products	171	(2)
Major Equipment	171	(1)
Accessory Equipment	171	(1)
Raw Materials	171	(1)
Component Parts	171	(1)
Processed Materials	172	(1)
Supplies	172	(1)
Business Services	172	(1)
Business Buying Behavior	173	(4)
Buying Centers	173	(1)
Evaluative Criteria	174	(1)
Buying Situations	175	(1)
Business Ethics	176	(1)
Customer Service	176	(1)
Connect It	177	(1)
Use It	178	(1)
Review It	178	(2)
Define It	180	(1)
Apply It	180	(1)
Think About It	181	(1)
Try It Entrepreneurship Case: W.W. Grainger: Moving Maintenance to the Internet Space	181	(1)
Watch It	182	(1)
Flip It	183	(1)
Click It	183	(1)
Segmenting and Targeting Markets	184	(32)
Market Segmentation	186	(1)
The Importance of Market Segmentation	186	(1)
Crtieria for Successful Segmentation	187	(1)
Bases for Segmenting Consumer Markets	188	(9)
Geographic Segmentation	188	(2)
Demographic Segmentation	190	(3)
Psychographic Segmentation	193	(2)
Benefit Segmentation	195	(1)
Usage-Rate Segmentation	196	(1)
Bases for Segmenting Business Markets	197	(2)
Company Characteristics	198	(1)
Buying Processes	198	(1)
Customer Relationship	198	(1)
Steps in Segmenting a Market	199	(1)
Strategies for Selecting Target Markets	200	(3)
Undifferentiated Targeting	201	(1)
Concentrated Targeting	202	(1)
Multisegment Targeting	203	(1)
Positioning	203	(4)
Perceptual Mapping	205	(1)
Positioning Bases	205	(1)
Repositioning	206	(1)
Global Issues in Market Segmentation and Targeting	207	(1)
Connect It	207	(1)
Use It	208	(1)
Review It	208	(2)
Define It	210	(1)
Apply It	210	(1)
Think About It	211	(1)
Try It Entrepreneurship Case: Segmenting the On-Line Market: The Case of eBay	211	(2)
Watch It	213	(1)
Flip It	213	(1)
Click It	213	(3)
Decision Support Systems and Marketing Reseach	216	(43)
Marketing Decision Support Systems	218	(1)
The Role of Marketing Research	219	(2)
Management Uses of Marketing Research	219	(2)
Steps in a Marketing Research Project	221	(20)
Secondary Data	223	(1)
The New Age of Secondary Information: The Internet	224	(1)
Planning the Research Design and Gathering Primary Data	225	(12)
Specifying the Sampling Procedures	237	(2)
Collecting the Data	239	(1)
Analyzing the Data	239	(1)
Preparing and Presenting the Report	240	(1)
The Profound Impact of the Internet on Marketing Research	241	(3)
Advantages of Internet Surveys	241	(2)
Other Uses of the Internet by Marketing Researchers	243	(1)
Scanner-Based Research	244	(1)
When Should Marketing Research Be Conducted?	244	(1)
Competitive Intelligence	245	(1)
Advantages of Competitive Intelligence	245	(1)
Sources of Competitive Intelligence	246	(1)
Connect It	246	(1)
Use It	247	(1)
Review It	247	(2)
Define It	249	(1)
Apply It	250	(1)
Think About It	250	(1)
Try It Entrepreneurship Case: Cool and How to Find It: Look-Look	251	(1)
Watch It	252	(1)
Flip It	252	(1)
Click It	253	(1)
Closing	254	(1)
Marketing Miscues: Metricom's Ricochet Fails to Rebound	254	(1)
Critical Thinking Case: Square Two: On Par with Female Golfers' Needs	255	(1)
Marketing Planning Activities	256	(1)
Cross-Functional Connections Solutions	257	(2)
Product and Distribution Decisions	259	(140)
Cross-Functional Connections: Cross-Functional Collaboration in Speeding Products to Market	260	(2)
Product and Services Concepts	262	(26)
What Is a Product?	264	(1)
Types of Consumer Products	264	(2)
Convenience Products	264	(1)
Shopping Products	265	(1)
Specialty Products	265	(1)
Unsought Products	266	(1)
The Importance of Services	266	(1)
How Services Differ from Goods	267	(1)
Services Are Intangible Performances	267	(1)
Services Are Produced and Consumed Simultaneously	268	(1)
Services Have Greater Variability	268	(1)
Services Are Perishable	268	(1)
Product Items, Lines and Mixes	268	(4)
Adjustments to Product Items, Lines, and Mixes	270	(1)
Product Modification	270	(1)
Repositioning	271	(1)
Product Line Extensions	271	(1)
Product Line Contraction	271	(1)
Branding	272	(7)
Benefits of Branding	273	(2)
Branding Strategies	275	(1)
Generic Products versus Branded Products	275	(1)
Manufacturers' Brands versus Private Brands	276	(1)
Individual Brands versus Family Brands	276	(1)
Cobranding	277	(1)
Trademarks	278	(1)
Packaging	279	(2)
Packaging Functions	279	(2)
Labeling	281	(1)
Universal Product Codes	281	(1)
Product Warranties	281	(1)
Connect It	282	(1)
Use It	282	(1)
Review It	282	(2)
Define It	284	(1)
Apply It	284	(1)
Think About It	285	(1)
Try It Entrepreneurship Case: Maps A La Carte	285	(1)
Watch It	286	(1)
Flip It	286	(1)
Click It	287	(1)
Developing and Managing Products	288	(25)
The Importance of New Products	290	(1)
Categories of New Products	290	(1)
The New-Product Development Process	291	(9)
New-Product Strategy	292	(1)
Idea Generation	293	(2)
Idea Screening	295	(1)
Business Analysis	295	(1)
Development	296	(1)
Test Marketing	297	(2)
Commercialization	299	(1)
The Spread of New Products	300	(2)
Diffusion of Innovation	300	(1)
Product Characteristics and the Rate of Adoption	301	(1)
Marketing Implications of the Adoption Process	302	(1)
Product Life Cycles	302	(5)
Introductory Stage	303	(1)
Growth Stage	304	(1)
Maturity Stage	304	(1)
Decline Stage	305	(1)
Implications for Marketing Management	305	(2)
Connect It	307	(1)
Use It	307	(1)
Review It	307	(2)
Define It	309	(1)
Apply It	309	(1)
Think About It	309	(1)
Try It Entrepreneurship Case: Valvoline: Coming to a Pep Rally Near You	310	(1)
Watch It	311	(1)
Flip It	311	(1)
Click It	311	(2)
Marketing Channels and Supply Chain Management	313	(39)
Marketing Channels	314	(1)
Providing Specialization and Division of Labor	314	(1)
Overcoming Discrepancies	314	(1)
Providing Contact Efficiency	315	(1)
Channel Intermediaries and Their Functions	315	(3)
Channel Functions Performed by Intermediaries	316	(2)
Channel Structures	318	(4)
Channels for Consumer Products	319	(1)
Channels for Business-to-Business and Industrial Products	320	(1)
Alternative Channel Arrangements	321	(1)
Supply Chain Management	322	(2)
Benefits of Supply Chain Management	323	(1)
Making Channel Strategy Decisions	324	(4)
Factors Affecting Channel Choice	325	(1)
Levels of Distribution Intensity	326	(2)
Managing Channel Relationships	328	(2)
Channel Power, Control, and Leadership	328	(1)
Channel Conflict	328	(1)
Channel Partnering	329	(1)
Managing the Logistical Components of the Supply Chain	330	(7)
Sourcing and Procurement	331	(1)
Production Scheduling	332	(1)
Order Processing	333	(1)
Inventory Control	334	(1)
Warehousing and Materials-Handling	334	(2)
Transportation	336	(1)
Trends in Supply Chain Management	337	(2)
Advanced Computer Technology	337	(1)
Outsourcing Logistics Functions	338	(1)
Electronic Distribution	339	(1)
Channels and Distribution Decisions for Global Markets	339	(3)
Developing Global Marketing Channels	339	(3)
Global Logistics and Supply Chain Management	342	(1)
Channels and Distribution Decisions for Services	342	(2)
Connect It	344	(1)
Use It	344	(1)
Review It	345	(3)
Define It	348	(1)
Apply It	348	(1)
Think About It	349	(1)
Try It Entrepreneurship Case: CarsDirect.com: Driving Car Buyers to the Internet	349	(1)
Watch It	350	(1)
Flip It	351	(1)
Click It	351	(1)
Retailing	352	(47)
The Role of Retailing	354	(1)
Classification of Retail Operations	354	(3)
Ownership	354	(1)
Level of Service	354	(1)
Product Assortment	355	(1)
Price	356	(1)
Major Types of Retail Operations	357	(8)
Department Stores	357	(1)
Specialty Stores	358	(1)
Supermarkets	358	(2)
Drugstores	360	(1)
Convenience Stores	360	(1)
Discount Stores	360	(4)
Restaurants	364	(1)
Nonstore Retailing	365	(5)
Automatic Vending	365	(1)
Direct Retailing	365	(1)
Direct Marketing	366	(2)
Electronic Retailing	368	(2)
Franchising	370	(2)
Retail Marketing Strategy	372	(10)
Defining a Target Market	372	(1)
Choosing the Retailing Mix	373	(9)
Global Retailing	382	(2)
Trends in Retailing	384	(2)
Entertainment	384	(1)
Convenience and Efficiency	384	(1)
Customer Management	385	(1)
Connect It	386	(1)
Use It	386	(1)
Review It	387	(2)
Define It	389	(1)
Apply It	389	(1)
Think About It	390	(1)
Try It Entrepreneurship Case: Delia's Retails to Teens	390	(1)
Watch It	391	(1)
Flip It	392	(1)
Click It	392	(2)
Closing	394	(1)
Marketing Miscues: Jeremy's Microbatch Ice Cream Gets Licked in Distribution	394	(1)
Critical Thinking Case: The Segway Human Transporter	395	(1)
Marketing Planning Activities	396	(2)
Cross-Functional Connections Solutions	398	(1)
PART 4 Promotion and Pricing Decisions	399	(129)
Cross-Functional Connections: Understanding Markeing Communications' Contribution to Firm Value	400	(2)
Marketing Communications and Personal Selling	402	(44)
The Role of Promotion in the Marketing Mix	404	(1)
The Promotional Mix	405	(3)
Personal Selling	405	(1)
Advertising	405	(1)
Public Relations	406	(1)
Sales Promotion	407	(1)
Integrated Marketing Communications	408	(1)
Marketing Communication	409	(5)
The Communication Process	410	(3)
The Communication Process and the Promotional Mix	413	(1)
The Goals and Tasks of Promotion	414	(2)
Informing	415	(1)
Persuading	415	(1)
Reminding	416	(1)
Promotional Goals and the AIDA Concept	416	(2)
AIDA and the Promotional Mix	417	(1)
Factors Affecting the Promotional Mix	418	(4)
Nature of the Product	418	(1)
Stage in the Product Life Cycle	419	(1)
Target Market Characteristics	420	(1)
Type of Buying Decision	420	(1)
Available Funds	421	(1)
Push and Pull Strategies	421	(1)
Personal Selling	422	(3)
Relationship Selling	423	(2)
Steps in the Selling Process	425	(7)
Generating Leads	426	(1)
Qualifying Leads	427	(1)
Approaching the Customer and Probing Needs	428	(2)
Developing and Proposing Solutions	430	(1)
Handling Objections	430	(1)
Closing the Sale	431	(1)
Following Up	431	(1)
Sales Management	432	(5)
Defining Sales Goals and the Sales Process	432	(1)
Determining the Sales Force Structure	433	(1)
Recruiting and Training the Sales Force	433	(1)
Compensating and Motivating the Sales Force	434	(2)
Evaluating the Sales Force	436	(1)
The Impact of Technology on Personal Selling	436	(1)
Connect It	437	(1)
Use It	437	(1)
Review It	437	(4)
Define It	441	(1)
Apply It	441	(1)
Think About It	441	(1)
Try It Entrepreneurship Case: Varsity Group: The Campus Bookstore Alternative	442	(1)
Watch It	443	(1)
Flip It	444	(1)
Click It	444	(2)
Advertising and Public Relations	446	(42)
The Effects of Advertising	448	(2)
Advertising and Market Share	449	(1)
The Effects of Advertising on Consumers	449	(1)
Major Types of Advertising	450	(2)
Institutional Advertising	450	(1)
Product Advertising	450	(2)
Creative Decisions in Advertising	452	(15)
Identifying Product Benefits	453	(1)
Developing and Evaluating Advertising Appeals	453	(1)
Executing the Message	454	(2)
Postcampaign Evaluation	456	(1)
Media Decisions in Advertising	457	(1)
Media Types	458	(5)
Media Selection Considerations	463	(3)
Media Scheduling	466	(1)
Public Relations	467	(5)
Major Public Relations Tools	468	(3)
Managing Unfavorable Publicity	471	(1)
Sales Promotion	472	(8)
The Objectives of Sales Promotion	472	(1)
Tools for Consumer Sales Promotion	473	(6)
Tools for Trade Sales promotion	479	(1)
Connect It	480	(1)
Use It	480	(1)
Review It	481	(3)
Define It	484	(1)
Apply It	484	(1)
Think About It	485	(1)
Try It Entrepreneurship Case: The Move from TV to TiVo	485	(2)
Watch It	487	(1)
Flip It	487	(1)
Click It	487	(1)
Internet Marketing	488	(2)
The full chapter can be found on-line at http://lamb.swlearning.com.
Pricing Concepts	490	(38)
The Importance of Price	492	(1)
What Is Price	492	(1)
The Importance of Price to Marketing Managers	492	(1)
Pricing Objectives	493	(2)
Profit-Oriented Pricing Objectives	493	(1)
Sales-Oriented Pricing Objectives	494	(1)
Status Quo Pricing Objectives	495	(1)
The Demand Determinant of Price	495	(2)
The Nature of Demand	495	(1)
Elasticity of Demand	496	(1)
The Power of Yield Management Systems	496	(1)
The Cost Determinant of Price	497	(2)
Markup Pricing	497	(1)
Break-Even Pricing	498	(1)
Other Determinants of Price	499	(5)
Stages in the Product Life Cycle	499	(1)
The Competition	500	(1)
Distribution Strategy	500	(1)
The Impact of the Internet and Extranets	500	(3)
Promotion Strategy	503	(1)
Demands of Large Customers	503	(1)
The Relationship of Price to Quality	503	(1)
How to Set a Price on a Product	504	(3)
Establish Pricing Goals	504	(1)
Estimate Demand, Costs, and Profits	505	(1)
Choose a Price Strategy	505	(2)
The Legality and Ethics of Price Strategy	507	(2)
Unfair Trade Practices	508	(1)
Price Fixing	508	(1)
Price Discrimination	508	(1)
Predatory Pricing	509	(1)
Tactics for Fine-Tuning the Base Price	509	(5)
Discounts, Allowances, Rebates, and Value-Based Pricing	509	(1)
Geographic Pricing	510	(1)
Special Pricing Tactics	511	(2)
Consumer Penalties	513	(1)
Connect It	514	(1)
Use It	514	(1)
Review It	515	(3)
Define It	518	(1)
Apply It	519	(1)
Think About It	519	(1)
Try It Entrepreneurship Case: Setting the Price Right for a Special ISP	519	(1)
Watch It	520	(1)
Flip It	521	(1)
Click It	521	(1)
Closing	522	(1)
Marketing Miscues: Duracell's Duck is Turned Off	522	(1)
Critical Thinking: Apple Bites into On-Line Music Sales	523	(1)
Marketing Planning Activities	523	(4)
Cross-Functional Connections Solutions	527	(1)
Careers Appendix	528	(2)
Glossary	530	(12)
Endnotes	542	(12)
Bibliographies	554	(2)
Subject/Company Index	556	(13)
Internet Index	569