Essentials of Marketing

by LAMB/HAIR/MCDANIEL

• ISBN13: 9780324316643
• ISBN10: 032431664X
• Edition: 5th
• Format: Paperback
• Copyright: 2005-10-07
• Publisher: South-Western College Pub

Summary

ESSENTIALS OF MARKETING, 5th continues the tradition of providing comprehensive, up-to-the minute coverage of key marketing topics in a brief text. ESSENTIALS OF MARKETING, 5th is ideal for those who wish to incorporate outside projects or readings into their course. 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 supplement package.

Table of Contents

PART 1 The World of Marketing	1	(114)
An Overview of Marketing	2	(44)
What Is Marketing?	4	(1)
The Concept of Exchange	4	(1)
Marketing Management Philosophies	5	(2)
Production Orientation	5	(1)
Sales Orientation	5	(1)
Market Orientation	6	(1)
Societal Marketing Orientation	7	(1)
Implementation of the Marketing Concept	7	(5)
Customer Value and Customer Satisfaction	8	(2)
Building Relationships	10	(2)
The Marketing Process	12	(1)
Environmental Scanning	13	(1)
Organization Mission	13	(1)
Marketing Opportunity Analysis	13	(1)
Marketing Strategy	13	(3)
Target Market Strategy	13	(1)
Marketing Objectives	13	(1)
Marketing Mix	14	(1)
Implementation	15	(1)
Evaluation	15	(1)
Corporate Social Responsibility	16	(2)
Ethical Behavior in Business	18	(4)
Morality and Business Ethics	19	(1)
Ethical Decision Making	19	(1)
Ethical Guidelines	20	(2)
Why Study Marketing?
Marketing Plays an Important Role in Society	22	(1)
Marketing Is Important to Businesses	22	(1)
Marketing Offers Outstanding Career Opportunities	22	(1)
Marketing Affects Your Life Every Day	23	(1)
Looking Ahead	23	(1)
Use It Now	24	(1)
Review and Applications	25	(2)
Terms	27	(1)
Exercises	27	(2)
Entrepreneurship Case: Cirque de Soleil: The Fire Within	29	(2)
Rockstar Games: Caught in Their Own Vice	30	(1)
Watch It	31	(2)
Careers in Marketing Appendix	33	(9)
Marketing Plan Appendix	42	(4)
The Marketing Environment	46	(30)
The External Marketing Environment	48	(2)
Understanding the External Environment	48	(1)
Environmental Management	49	(1)
Social Factors	50	(2)
American Values	50	(1)
The Growth of Component Lifestyles	51	(1)
The Changing Roles of Families and Working Women	51	(1)
Demographic Factors	52	(4)
Generation Y	53	(1)
Generation X	54	(1)
Baby Boomers---America's Mass Market	54	(1)
Older Consumers: Not Just Grandparents	55	(1)
Americans on the Move	55	(1)
Growing Ethnic Markets	56	(3)
Marketig to Hispanic Americans	56	(1)
Marketing to African Americans	56	(1)
Marketing to Asian Americans	57	(1)
Ethnic and Cultural Diversity	58	(1)
Economic Factors	59	(3)
Rising Incomes	59	(1)
Purchasing Power	60	(1)
Inflation	61	(1)
Recession	61	(1)
Technological Factors	62	(1)
Political and Legal Factors	63	(3)
Federal Legislation	63	(2)
State Laws	65	(1)
Regulatory Agencies	65	(1)
Competitive Factors	66	(2)
Competition for Market Share and Profits	66	(1)
Global Competition	67	(1)
The Impact of Terrorism on Business	67	(1)
Use It Now	68	(1)
Review and Applications	69	(2)
Terms	71	(1)
Exercises	71	(1)
Entrepreneurship Case: Ballet: Dancing on a Tightrope	72	(2)
Watch It	74	(2)
Developing a Global Vision	76	(39)
Rewards of Global Marketing	78	(3)
Importance of Global Marketing to the United States	79	(1)
The Fear of Trade and Globalization	79	(1)
Benefits of Globalization	80	(1)
The Impact of Terrorism on Global Trade	81	(1)
Multinational Firms	81	(3)
Global Marketing Standardization	83	(1)
External Environment Facing Global Marketers	84	(8)
Culture	84	(2)
Economic and Technological Development	86	(1)
Political Structure and Actions	86	(5)
Demographic Makeup	91	(1)
Natural Resources	92	(1)
Global Marketing by the Individual Firm	92	(6)
Exporting	93	(2)
Licensing	95	(1)
Contract Manufacturing	96	(1)
Joint Venture	96	(1)
Direct Investment	97	(1)
The Global Marketing Mix	98	(7)
Product and Promotion	98	(3)
Place (Distribution)	101	(1)
Pricing	102	(3)
The Impact of the Internet	105	(1)
Use It Now	106	(1)
Review and Applications	107	(1)
Terms	108	(1)
Exercises	109	(1)
Entrepreneurship Case: MTV: Rocking the World One Nation At a Time	110	(1)
Watch It	111	(1)
Part 1 Closing	112	(3)
Marketing Miscues: Scholastic Stumbles, Even with Market Access	112	(1)
Critical Thinking Case: Vivendi Universal Games: Theft of Source Code for Half-Life 2	113	(2)
PART 2 Analyzing Marketing Opportunities	115	(144)
Consumer Decision Making	116	(42)
The Importance of Understanding Consumer Behavior	118	(1)
The Consumer Decision-Making Process	118	(6)
Need Recognition	118	(2)
Information Search	120	(2)
Evaluation of Alternatives and Purchase	122	(1)
Postpurchase Behavior	123	(1)
Types of Consumer Buying Decisions and Consumer Involvement	124	(3)
Factors Determining the Level of Consumer Involvement	125	(1)
Marketing Implications of Involvement	126	(1)
Factors Influences on Consumer Buying Decisions	127	(1)
Cultural Influences on Consumer Buying Decisions	128	(7)
Culture and Values	128	(3)
Understanding Culture Differences	131	(1)
Subculture	132	(1)
Social Class	133	(2)
Social Influences on Consumer Buying Decisions	135	(5)
Reference Groups	135	(2)
Opinion Leaders	137	(1)
Family	138	(2)
Individual Influences on Consumer Buying Decisions	140	(3)
Gender	140	(1)
Age and Family Life-Cycle Stage	141	(1)
Personality, Self-Concept, and Lifestyle	142	(1)
Psychological Influences on Consumer Buying Decisions	143	(8)
Perception	144	(2)
Motivation	146	(2)
Learning	148	(1)
Beliefs and Attitudes	149	(2)
Use It Now	151	(1)
Review and Applications	152	(2)
Terms	154	(1)
Exercises	154	(1)
Entrepreneurship Case: Bucking the Trend: Is ``Family'' the Next Theme Restaurant?	155	(1)
Watch It	156	(2)
Business Marketing	158	(26)
What Is Business Marketing?	160	(1)
Business Marketing on the Internet	160	(3)
Three Illustrations	161	(1)
Potential Unrealized	162	(1)
Relationship Marketing and Strategic Alliances	163	(3)
Strategic Alliances	163	(1)
Relationships on Other Cultures	164	(2)
Major Categories of Business Customers	166	(2)
Producers	166	(1)
Resellers	166	(1)
Governments	166	(1)
Institutions	167	(1)
The North American Industry Classification System	168	(1)
Business versus Consumer Markets	169	(3)
Demand	169	(1)
Purchase Volume	170	(1)
Number of Customers	170	(1)
Location of Buyers	171	(1)
Distribution Structure	171	(1)
Nature of Buying	171	(1)
Nature of Buying Influence	171	(1)
Type of Negotiations	171	(1)
Use of Reciprocity	172	(1)
Use of Leasing	172	(1)
Primary Promotional Method	172	(1)
Types of Business Products	172	(3)
Major Equipment	172	(1)
Accessory Equipment	173	(1)
Raw Materials	173	(1)
Component Parts	173	(1)
Processed Materials	174	(1)
Supplies	174	(1)
Business Services	174	(1)
Business Buying Behavior	175	(4)
Buying Centers	175	(1)
Evaluative Criteria	176	(1)
Buying Situations	177	(1)
Business Ethics	178	(1)
Customer Service	178	(1)
Use It Now	179	(1)
Review and Applications	179	(2)
Terms	181	(1)
Exercises	181	(1)
Entrepreneurship Case: The Segway Company: Reinventing the Wheel	182	(1)
Watch It	183	(1)
Segmenting and Targeting Markets	184	(36)
Market Segmentation	186	(1)
The Importance of Market Segmentation	187	(1)
Criteria for Successful Segmentation	187	(1)
Bases for Segmenting Consumer Markets	188	(10)
Geographic Segmentation	188	(1)
Demographic Segmentation	189	(6)
Psychographic Segmentation	195	(1)
Benefit Segmentation	196	(1)
Usage-Rate Segmentation	197	(1)
Bases for Segmenting Business Markets	198	(1)
Company Characteristics	198	(1)
Buying Processes	198	(1)
Customer Relationship	199	(1)
Steps in Segmenting a Market	199	(1)
Strategies for Selecting Target Markets	200	(4)
Undifferentiated Targeting	201	(1)
Concentrated Targeting	202	(1)
Multisegment Targeting	203	(1)
One-to-One Marketing	204	(1)
Forces Influencing One-to-One Marketing	205	(2)
Increasing Diversity	205	(1)
More Demanding, Time-Poor Consumers	205	(1)
Decreasing Brand Loyalty	206	(1)
Emergence of New Media Alternatives	206	(1)
Demand for Accountability	206	(1)
How Have These Trends Influenced One-to-One Marketing	207	(1)
Privacy Concerns with One-to-One Marketing	207	(2)
Positioning	209	(4)
Perceptual Mapping	210	(1)
Positioning Bases	210	(2)
Repositioning	212	(1)
Use It Now	213	(1)
Review and Applications	213	(2)
Terms	215	(1)
Exercises	216	(1)
Entrepreneurship Case: Viva Las Vegas	217	(1)
Watch It	218	(2)
Decision Support Systems and Marketing Research	220	(39)
Marketing Decision Support Systems	222	(1)
The Role of Marketing Research	223	(3)
Management Uses of Marketing Research	223	(3)
Steps in a Marketing Research Project	226	(16)
Secondary Data	227	(1)
The New Age of Secondary Information: The Internet	228	(2)
Planning the Research Design and Gathering Primary Data	230	(7)
Specifying the Sampling Procedures	237	(2)
Collecting the Data	239	(1)
Analyzing the Data	239	(2)
Preparing and Presenting the Report	241	(1)
Following Up	241	(1)
The Profound Impact of the Internet on Marketing	242	(5)
Advantages of Internet Surveys	242	(1)
Uses of the Internet by Marketing Researchers	243	(4)
Scanner-Based Research	247	(1)
When Should Marketing Research Be Conducted?	248	(1)
Competitive Intelligence	248	(2)
Sources of Competitive Intelligence	249	(1)
Use It Now	250	(1)
Review and Applications	250	(2)
Terms	252	(1)
Exercises	252	(1)
Entrepreneurship Case: Cool and How to Find It: Look-Look	253	(2)
Watch It	255	(1)
Part 2 Closing	256	(3)
Marketing Miscues: Remembering the Alamo may be Painful for Disney	256	(1)
Critical Thinking Case: Tall Magazine Debuts to the Vertically-Gifted Crowd	257	(2)
PART 3 Product and Distribution Decisions	259	(128)
Product and Services Concepts	260	(26)
What Is a Product?	262	(1)
Types of Consumer Products	262	(2)
Convenience Products	262	(1)
Shopping Products	263	(1)
Specialty Products	264	(1)
Unsought Products	264	(1)
The Importance of Services	264	(1)
How Services Differ from Goods	265	(2)
Intangibility	265	(1)
Inseparability	266	(1)
Heterogeneity	266	(1)
Perishability	267	(1)
Product Items, Lines, and Mixes	267	(9)
Adjustments to Product Items, Lines, and Mixes	268	(3)
Benefits of Branding	271	(1)
Branding Strategies	272	(3)
Trademarks	275	(1)
Packaging	276	(3)
Packaging Functions	276	(2)
Labeling	278	(1)
Universal Product Codes	279	(1)
Product Warranties	279	(1)
Use It Now	280	(1)
Review and Applications	280	(2)
Terms	282	(1)
Exercises	282	(1)
Entrepreneurship Case: Finally a Garage Band that Really Rocks	283	(1)
Watch It	284	(2)
Developing and Managing Products	286	(24)
The Importance of New Products	288	(1)
Categories of New Products	288	(1)
The New-Product Development Process	289	(9)
New-Product Strategy	289	(1)
Idea Generation	290	(1)
Idea Screening	291	(1)
Business Analysis	292	(1)
Development	293	(1)
Test Marketing	294	(2)
Commercialization	296	(2)
The Spread of New Products	298	(2)
Diffusion of Innovation	298	(1)
Product Characteristics and the Rate of Adoption	299	(1)
Marketing Implications of the Adoption Process	300	(1)
Product Life Cycles	300	(5)
Introductory Stage	301	(1)
Growth Stage	302	(1)
Maturity Stage	302	(1)
Decline Stage	303	(1)
Implications for Marketing Management	304	(1)
Use It Now	305	(1)
Review and Applications	305	(1)
Terms	306	(1)
Exercises	306	(1)
Entrepreneurship Case: Valvoline: Coming to a Pep Rally Near You	307	(1)
Watch It	308	(2)
Marketing Channels and Supply Chain Management	310	(38)
Marketing Channels	312	(3)
Providing Specialization and Division of Labor	312	(1)
Overcoming Discrepancies	312	(1)
Providing Contact Efficiency	313	(2)
Channel Intermediaries and Their Functions	315	(2)
Channel Functions Performed by Intermediaries	316	(1)
Channel Structures	317	(5)
Channels for Consumer Products	318	(1)
Channels for Business and Industrial Products	319	(1)
Alternative Channel Arrangements	320	(2)
Supply Chain Management	322	(2)
Benefits of Supply Chain Management	324	(1)
Making Channel Strategy Decision	324	(3)
Factors Affecting Channel Choice	324	(2)
Levels of Distribution Intensity	326	(1)
Managing Channel Relationships	327	(3)
Channel Power, Control, and Leadership	328	(1)
Channel Conflict	328	(1)
Channel Partnering	329	(1)
Managing the Logistical Components of the Supply Chain	330	(6)
Sourcing and Procurement	331	(1)
Production Scheduling	331	(1)
Order Processing	332	(1)
Inventory Control	333	(1)
Warehousing and Materials-Handling	334	(1)
Transportation	335	(1)
Trends in Supply Chain Management	336	(2)
Advanced Computer Technology	336	(1)
Outsourcing Logistics Functions	337	(1)
Electronic Distribution	338	(1)
Channels and Distribution Decisions for Services	338	(2)
Use It Now	340	(1)
Review and Applications	340	(3)
Terms	343	(1)
Exercises	344	(1)
Entrepreneurship Case: Carsdirect.com: Driving Car Buyers to the Internet	345	(1)
Watch It	346	(2)
Retailing	348	(39)
The Role of Retailing	350	(1)
Classification of Retail Operations	351	(1)
Ownership	351	(1)
Level of Service	351	(1)
Product Assortment	351	(1)
Price	352	(1)
Major Types of Retail Operations	352	(7)
Department Stores	352	(1)
Specialty Stores	353	(1)
Supermarkets	353	(1)
Drugstores	354	(1)
Convenience Stores	355	(1)
Discount Stores	355	(3)
Restaurants	358	(1)
Nonstore Retailing	359	(6)
Automatic Vending	359	(1)
Direct Retailing	360	(1)
Direct Marketing	361	(1)
Electronic Retailing	362	(3)
Franchising	365	(2)
Retail Marketing Strategy	367	(8)
Defining a Target Market	367	(1)
Choosing the Retailing Mix	368	(7)
New Developments in Retailing	375	(2)
Interactivity	375	(1)
M-Commerce	376	(1)
Use It Now	377	(1)
Review and Applications	377	(2)
Terms	379	(1)
Exercises	379	(2)
Entrepreneurship Case: Best Buy Gives a Whole New Meaning to ``Thousands of Possibilities. Get Yours.''	381	(1)
Watch It	382	(4)
Part 3 Closing	386	(1)
Marketing Miscues: Comic Book Distribution Methods Define (and Shrink) Audience	384	(3)
Critical Thinking Case: Twister Moves-The Cool Hip Dance Version of the Classic Game of Twister	387	(1)
PART 4 Promotion and Pricing Decisions	387	(115)
Marketing Communications and Advertising	388	(44)
Promotional Elements and the Marketing Mix	390	(4)
Advertising	390	(1)
Public Relations	391	(1)
Sales Promotion	392	(1)
Personal Selling	393	(1)
Marketing Communication	394	(4)
The Communication Process	394	(3)
The Communication Process and the Promotional Mix	397	(1)
Promotional Goals, Tasks, and the AIDA Concept	398	(4)
Informing	398	(1)
Persuading	398	(1)
Reminding	399	(1)
The AIDA Concept	399	(1)
AIDA and the Promotional Mix	400	(2)
Factors Affecting the Promotional Mix
Nature of the Product	402	(1)
Stage in the Product Life Cycle	403	(1)
Target Market Characteristics	403	(1)
Type of Buying Decision	403	(1)
Available Funds	404	(1)
Push and Pull Strategies	404	(1)
Integrated Marketing Communications	405	(1)
The Effects of Advertising	406	(2)
Advertising and Market Share	407	(1)
The Effects of Advertising on Consumers	408	(1)
Major Types of Advertising	408	(3)
Institutional Advertising	408	(1)
Product Advertising	409	(2)
Creative Decisions in Advertising	411	(4)
Identifying Product Benefits	411	(1)
Developing and Evaluating Advertising Appeals	412	(1)
Executing the Message	413	(2)
Postcampaign Evaluation	415	(1)
Media Decisions in Advertising	415	(8)
Media Types	416	(4)
Media Selection Considerations	420	(2)
Media Scheduling	422	(1)
Use It Now	423	(1)
Review and Applications	424	(3)
Terms	427	(1)
Exercises	427	(1)
Entrepreneurship Case: The Move from TV to TiVo	428	(2)
Watch It	430	(2)
Public Relations, Sales Promotion, and Personal Selling	432	(32)
Public Relations	434	(3)
Major Public Relations Tools	434	(3)
Managing Unfavorable Publicity	437	(1)
Sales Promotion	437	(2)
The Objectives of Sales Promotion	438	(1)
Tools for Consumer Sales Promotion	439	(6)
Coupons and Rebates	439	(2)
Premiums	441	(1)
Loyalty Marketing Programs	441	(1)
Contests and Sweepstakes	442	(1)
Sampling	442	(1)
Point-of-Purchase Promotion	443	(1)
Online Sales Promotion	444	(1)
Tools for Trade Sales Promotion	445	(1)
Personal Selling	446	(1)
Relationship Selling	447	(2)
Steps in the Selling Process	449	(9)
Generating Leads	450	(1)
Qualifying Leads	451	(1)
Approaching the Customer and Probing Needs	452	(2)
Developing and Proposing Solutions	454	(1)
Handling Objections	455	(1)
Closing the Sale	455	(1)
Following Up	456	(2)
Use It Now	458	(1)
Review and Applications	458	(2)
Terms	460	(1)
Exercises	460	(2)
Entrepreneurship Case: Varsity Group: The Campus Bookstore Alternative	462	(1)
Watch It	463	(1)
Pricing Concepts	464	(38)
The Importance of Price	466	(1)
What Is Price?	466	(1)
The Importance of Price to Marketing Managers	466	(1)
Pricing Objectives	467	(3)
Profit-Oriented Pricing Objectives	467	(2)
Sales-Oriented Pricing Objectives	469	(1)
Status Quo Pricing Objectives	469	(1)
The Demand Determinant of Price	470	(1)
The Nature of Demand	470	(1)
Elasticity of Demand	470	(1)
The Power of Yield Management Systems	471	(1)
The Cost Determinant of Price	472	(2)
Markup Pricing	473	(1)
Break-Even Pricing	473	(1)
Other Determinants of Price	474	(6)
Stages in the Product Life Cycle	475	(1)
The Competition	475	(1)
Distribution Strategy	475	(1)
The Impact of the Internet and Extranets	476	(2)
Promotion Strategy	478	(1)
Demands of Large Customers	479	(1)
The Relationship of Price to Quality	479	(1)
How to Set a Price on a Product	480	(4)
Establish Pricing Goals	480	(1)
Estimate Demand, Costs, and Profits	480	(1)
Choose a Price Strategy	480	(4)
The Legality and Ethics of Price Strategy	484	(2)
Unfair Trade Practices	484	(1)
Price Fixing	484	(1)
Price Discrimination	484	(1)
Predatory Pricing	485	(1)
Tactics for Fine-Tuning the Base Price	486	(6)
Discounts, Allowances, Rebates, and Value-Based Pricing	486	(1)
Geographic Pricing	487	(1)
Other Pricing Tactics	488	(3)
Consumer Penalties	491	(1)
Use It Now	492	(1)
Review and Applications	492	(3)
Terms	495	(1)
Exercises	495	(1)
Entrepreneurship Case: HDNet Aims to Redefine Television	496	(1)
Watch It	497	(3)
Part 4 Closing	500	(2)
Marketing Miscues: Will Knott's Berry Farm Attract Visitors, Start a Price War, or Decrease Revenue?	500	(1)
Critical Thinking Case: Adidas Takes Human Billboards to New Heights	501	(1)
Glossary	502	(10)
Endnotes	512	(12)
Index	524