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A STUDENTS GUIDE TO
MARKETING: THE CORE, 2/e
Marketing: The Core, Chapter-Opening Vignettes
2/e offers an array of Chapter-opening vignettes introduce you to the chapter concepts ahead, using a recognizable
pedagogical features to and interesting company example. For instance, in Chapter 1, the authors use 3Ms Post-it Note
help you learn and apply
technology to grab your interest while introducing the concepts of marketing. The chapter-opening
the concepts.
discussion is then integrated into parts of the narrative and exhibits throughout the chapter.
CHAPTER
1 RELATIONSHIPS AND
VALUE THROUGH
MARKETING
CREATING
CUSTOMER
s
Listen carefully to the needs
ea
Product t-id Highlighter to help college Pen to help office workers and wants of potential
Dynamic Graphics
gh
Bri
strategy students in their studying in their day-to-day work customer segments to use 3M
activities technology to introduce a
useful, innovative product
Run limited promotion with Run limited promotion Increase awareness of potential
college newspapers and them to stock the product segments who have never
quarter-back just at least
for 15 10 inches on
friday
Promotion
min. on fri night
night. yeah!
NEW PRODUCT
Try New
Flag-it
Bright-ideas
Bright-ideas
Flag-it
strategy
Flag-it
Football time is
The new highlighter
for today's busy
here
flagger,
students
again. Booster buttons Football time is here
again. Booster buttons
Bright-ideas
then rely on student and then rely on word-of- heard of this new, innovative
word-of-mouth messages mouth messages to 3M product
can be bought fri.
can be bought fri.
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The global teenager market consists of 500 million 13- to apparel, Levis blue jeans, Nike athletic shoes, Swatch
19-year-olds in Europe, North and South America, and in- watches, and Procter & Gamble Clearasil facial medicine.
Marketing NewsNet dustrialized nations of Asia and the Pacific Rim who have Teenagers around the world appreciate fashion and mu-
experienced intense expo- sic, and desire novelty and
This boxed feature provides sure to television (MTV trendier designs and im-
broadcasts in 166 coun- ages. They also acknowl-
exciting, current examples of tries), movies, travel, the edge an Americanization of
marketing applications in Internet, and global adver- fashion and culture based
tising by companies such on another study of 6,500
action, organized around the as Benetton, Sony, Nike, teens in 26 countries.
and Coca-Cola. The simi- When asked what country
following themes: technology larities among teens across had the most influence on
and e-commerce, customer these countries are greater their attitudes and pur-
than their differences. For chase behavior, 54 percent
value, global, and cross example, a global study of of teens from the United
middle-class teenagers States, 87 percent of those
functional. rooms in 25 industrialized from Latin America, 80 per-
countries indicated it was cent of the Europeans, and
Concept Checks
ETHICS AND SOCIAL Who Decides What Is Found at the end of each
RESPONSIBILITY ALERT Appropriate Advertising? ETHICS
major chapter section, these
The controversy created by Janet Jacksons halftime per- and Abercrombie & Fitch is dropping its suggestive quar- checkpoints offer critical
formance in Super Bowl XXXVIII has sparked a complicated terly catalog.
debate about what is appropriate content for media and ad- For each group, the difficulty is in trying to match content thinking and memory recall
vertising and who should decide what is appropriate. The with consumer preferences, because preferences vary from
Federal Communications Commission is legally responsible segment to segment. The FCC, Congress, and large and
questions, helping you reflect
for policing the airwaves. Congress can also influence the small companies have all received complaints about adver- on the text and test your
industry with laws such as the recently proposed Clean Air- tising content from conservative segments of the popula-
waves Act. Large media and retailing companies are also tion. At the same time, a recent survey reported that comprehension of the
weighing in: Wal-Mart banned some magazines such as 74 percent of consumers ages 1220 think that many people
Maxim and Stuff from its stores, and six Clear Channel radio have overreacted to the issue. Some experts are anticipat-
material before reading on.
stations dropped Howard Stern from their programming. ing that the result will be a continuum of media and content
during special periods of increased demand (such as holidays or new car introductions).
1. You see the same ad in Time and Fortune magazines and on billboards and TV.
Concept Check Is this an example of reach or frequency?
2. Why has the Internet become a popular advertising medium?
3. Describe three approaches to scheduling advertising.
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Cultural Diversity
Marketers must be sensitive to the cultures of different societies if they are to develop
successful exchange relationships with global consumers. A necessary step in this
cross-cultural analysis process is cross-cultural analysis, which involves the study of similarities and
Study of similarities and differences among consumers in two or more nations or societies.10 A thorough cross-
differences among consumers cultural analysis involves an understanding of and an appreciation for the values, cus-
in two or more nations or toms, symbols, and language of other societies.
societies
Values A societys values represent socially preferable modes of conduct or
values
Socially preferable modes of
states of existence that tend to persist over time. Understanding and working with these
conduct or states of existence aspects of a society are important factors in global marketing. For example,
that tend to persist over time McDonalds does not sell hamburgers in its restaurants in India because the cow
is considered sacred by almost 85 percent of the population. Instead, McDonalds
sells the McMaharajah: two all-mutton patties, special sauce, lettuce, cheese,
pickles, onions on a sesame-seed bun.
Germans have not responded to the promotion of credit cards such as Visa or
MasterCard, nor to the idea of borrowing to purchase goods and services. Indeed,
the German word for debt, schuld, is the same as the German word for guilt.
customs Customs Customs are what is considered normal and expected about the way
Norms and expectations about people do things in a specific country. Clearly, customs can vary significantly from
the way people do things in a country to country. Some customs may seem unusual to Americans. Consider, for ex-
specific country ample, that in France men wear twice the number of cosmetics that women do and that
Japanese women give Japanese men chocolates on Valentines Day.
The custom of giving token business gifts is popular in many countries where they
are expected and accepted. However, bribes, kickbacks, and payoffs offered to entice
someone to commit an illegal or improper act on behalf of the giver for economic gain
is considered corrupt in most cultures. The widespread use of bribery in global mar-
Helpful Margin Definitions
Brief definitions of the key terms contained in the
text are placed in the margin for quick reference
Going Online Exercises
and review.
These end-of chapter exercises ask you to go online and think critically
about a specific companys use of the Internethelping you apply your
knowledge of key chapter concepts, terms, and topics, as well as
evaluate the success or failure of the companys efforts.
GOING ONLINE Consumers Can Now Shop with Their Bot www.mhhe.com/Kerin
For many consumers, comparison shopping is not ap- the best price for one of the following products:
pealing because of the inconvenience of traveling to mul- 1 Wilson tennis racket
tiple locations. Even on the Internet, finding and 2 Sony TV
searching multiple websites can be tedious. One solution 3 Guess jeans
is a form of software called an intelligent agent, or bot How did the two bots differ? What range of prices did
(derived from robot), which automatically searches for you obtain? What shipping and handling charges would
the best price. Try each of the following shopping bots apply to each purchase? Why are different recommenda-
www.mysimon.com and www.shopping.comto find tion made by the agents?
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groups throughout the world. The approach is reflected are combining digital audio, video, and data technologies
in the companys business strategy: into third generation (3G) communication devices that
reach consumers globally. The convergence of the mo-
We intend to exploit our leadership role by continuing to
target and enter segments of the communications market
bile phone (audio), digital camera (video), personal digi-
that we believe will experience rapid growth or grow faster tal assistant (PDA), Internet and e-mail services (data),
than the industry as a whole and that cater to the diverse and other multimedia technologies will usher in the
needs, lifestyles, and preferences of our customers. fourth generation (4G) of global communication devices.
The annual global demand for mobile phones has in-
In fact, Nowak believes that to be successful in the mo- creased significantly over the yearsfrom more than 400
bile phone business of today and tomorrow, Nokia has to
fully understand the fundamental nature and rationale of
million units in 2000 to about 650 million units shipped in Video Case Studies
2004. In 2008, mobile phone shipments could exceed 950
segmentation. million units. Marketers of 1G and 2G This end-of-chapter feature
mobile phones used a geographic seg-
THE COMPANY mentation strategy as wireless commu- provides an up-close look
nication networks were developed. Most
Nokia started in 1865, when a mining started with the United States and then at a company example
engineer built a wood-pulp mill in proceeded to Europe and Asia. However,
southern Finland to manufacture paper. each market grew at different rates.
reinforcing the chapter
Over the next century, the company In 2004, Asia was the largest mobile content, while bringing the
diversified into industries ranging from phone market with 240 million, or 37
paper to chemicals and rubber. In the percent of all handsets sold that year. material to life. Nokia, 3M,
1960s, Nokia ventured into telecom- Europe was second with 240 million
munications by developing a digital shipments (19 percent), followed by and the Philadelphia Phillies
telephone exchange switch. In the
1980s, Nokia developed its first trans-
North America at 110 million shipments are just a few of the exciting
232
(17 percent).
Satisfying Marketing Opportunities PART FOUR
video cases now available
merchandisers for a suggested retail price of $11.95 to sporting good superstores. However, mass merchandisers with Marketing: The
$15.95. And now its also being stocked by golf retail- have recently increased their shares due to the typically
ers across the country like Golfsmith, Austads, Golf lower prices offered by these retailers. FootJoy and Core, 2/e.
Galaxy, and Target. The golf glove is available in both Titleist, both owned by Acushnet, are the top two golf
mens and womens left hand versions and in small, glove market share leaders. Nike, which recently entered
medium, medium/large, large, and extra-large hand the golf equipment market with Tiger Woods as its
sizes. A right hand version for both genders appeared spokesperson, has a measurable share of the golf glove
in 2005. 3M projected first year sales of $1 million in market. These golf glove marketers focus on technology
the United States. and comfort to create points of difference from its
competitors, such as the recently introduced FootJoy
F3 glove ($16), the Titleist Players-Tech glove ($22),
THE GOLF MARKET and the Custom Crested Tech Xtreme
Several socioeconomic and demo- glove ($22).
graphic trends impact the golf glove
market favorably. First, the huge 3MS NEW PRODUCT
baby boomer population (those
born between 1946 and 1964) has
PROCESS
matured, reaching its prime earning Since about half of 3Ms products
potential. This allows for greater are less than five years old, the
discretionary spending on leisure process used by 3M to develop new
activities, such as golf. According product innovations is critical to its
to the National Golf Foundation success and continued growth. Every
as shown in Figure 11 1.
(NGF), most spending on golf innovation must meet 3Ms new
equipment (clubs, bags, balls, product criteria: (1) be a patentable
shoes, gloves, etc.) is by consumers or trademarked technology; (2) offer
50 d ld t d b b i l ii
VIDEO CASE 11 Philadelphia Phillies, Inc.: Sports Marketing 101
Bring everyone in closer. Have fans feel Im not alone ballplayers. You printed ticketshoping and praying a
here; lots of others are in the seats. This is a happening! winning team would bring in fans and sell those tickets.
chuckles David Montgomery, president and chief execu- And your advertising consisted of printing the teams
tive officer of the Philadelphia Phillies, Inc. home schedule in the local paper.
He continues, Old Veterans Stadium had too big an
inventory of seats for baseball. The new facility and the THE PHILLIES TODAY: APPEALS,
fact that its a game played in summer out in the open air
really takes you to a much broader audience. Our chal-
SEGMENTS, AND ACTIVITIES
lenge is to appeal to all the segments in that audience. Marketing a major-league baseball team is far different
What Montgomery is referring to is the Phillies new today.
world-class Citizens Bank Park baseball stadium that How do you market a product that is all over the
opened in 2004. It is a baseball-only ballpark, seating board? asks David Buck, the Phillies vice president of
43,500 fans, where every seat is angled marketing. He first gives a general an-
toward home plate to give fans the best swer to his question: The ballpark expe-
view of the action. This contrasts the rience is the key. As long as you project
62,000-seat Veterans Stadium that both an image of a fun ballpark experience in
the Phillies and the Philadelphia Eagles everything you do, youre going to be in
football team shared from 1971 to 2003 good shape. Our best advertising is
where sightlines were always a compro- word-of-mouth from happy fans.
mise for the two sports. Next come the specifics. Marketing
The new fan-friendly Phillies stadium the appeal of a fun ballpark experience
is just one element in todays complex to all segments of fans is critical because
strategy to market the Philadelphia the Phillies cant promise a winning
Phillies effectively to many different baseball team. Every team, even the
segments of fansa far different chal- New York Yankees, has its ups and
lenge than in the past. A century ago downs. The Phillies are no different.
major-league baseball was pretty sim- Reaching the different segments of
ple. You built a stadium. You hired the fans is a special challenge because each
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Color-coding Legend
The Table of Contents Blue boxes explain significance Red boxes give writing style,
provides quick access to of Marketing Plan elements format, and layout guidelines
the topics in the plan,
usually organized by
section and subsection
headings.
1. Executive Summary
Effective Marketing Plan
and brevity. For space rea-
sons, it is not shown here,
but the Building Your Mar-
2. Company Description Following Chapter 2, this sample marketing
keting Plan exercise at the
end of Chapter 2 asks the
Paradise Kitchens, Inc., was started by cofounders Randall F. Peters and Leah
E. Peters to develop and market Howlin Coyote Chili, a unique line of single serve
plan of Howlin Coyote Chili provides you
reader to write an Execu-
tive Summary for this plan.
and microwaveable Southwestern/Mexican style frozen chili products. The Howlin
Coyote line of chili was first introduced into the MinneapolisSt. Paul market and with an effective reference early on in
expanded to Denver two years later and Phoenix two years after that.
Paradise Kitchens believes its high-quality, high-price strategy has proven success-
The Strategic Focus and
ful. This marketing plan outlines how the Company will extend its geographic cover-
Plan sets the strategic
age from 3 markets to 20 markets by the year 2010.
direction for the entire
organization, a direction
with which proposed ac- 3. Strategic Focus and Plan
tions of the marketing plan
This section covers three aspects of corporate strategy that influence the marketing
must be consistent. This
plan: (1) the mission/vision, (2) goals, and (3) core competence/sustainable competi-
section is not included in
tive advantage of Paradise Kitchens.
all marketing plans. See
Chapter 2.
Mission/Vision
The mission and vision of Paradise Kitchens is to market lines of high-quality
Southwestern/Mexican food products at premium prices that satisfy consumers in this
The qualitative Mission/
fast-growing food segment while providing challenging career opportunities for
Vision statement focuses
employees and above-average returns to stockholders.
the activities of Paradise
Kitchens for the stake-
holder groups to be
served. See Chapter 2.
If your instructor assigns a marketing plan for your glittering generalities. We offer these additional bits of ad-
class, dont make a face and complain about the work vice in selecting a topic:
for two special reasons. First, you will get insights into
Do pick a topic that has personal interest for you
trying to actually do marketing that often go beyond
Building Your Marketing Plan what you can get by simply reading the textbook. Sec-
ond, thousands of graduating students every year get
a family business, a business or product you or a
friend might want to launch, or a student organiza-
tion needing marketing help.
their first job by showing prospective employers a port-
Each chapter ends with an activity that folio of samples of their written work from college
Do not pick a topic that is so large it cant be cov-
ered adequately or so abstract it will lack specifics.
often a marketing plan if they have one. This can work
allows you to build a marketing plan, for you. 1 Now to get you started on your marketing plan, list
This Building Your Marketing Plan section at the four or five possible topics and compare these with the
step-by-step. end of each chapter gives you suggestions to improve criteria your instructor suggests and those shown above.
and focus your marketing plan. You will use the sample Think hard, because your decision will be with you all
marketing plan in Appendix A as a guide, and this sec- term long and may influence the quality of the resulting
tion after each chapter will help you apply those Appen- marketing plan you show to a prospective employer.
dix A ideas to your own marketing plan. 2 When you have selected your marketing plan topic,
The first step in writing a good marketing plan is to whether the plan is for an actual business, a possible
have a business or product that enthuses you and for business, or a student organization, write the company
which you can get detailed information, so you can avoid description in your plan, as shown in Appendix A.
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APPENDIX
B
GETTING A JOB: THE PROCESS
PLANNING A CAREER
IN MARKETING
FIGURE B1
Marketing occupations Several other jobs related to product management deal with physical distribution
issues such as storing the manufactured product (inventory), moving the product from
the firm to the customers (transportation), and engaging in many other aspects of
the manufacture and sale of goods Prospects for these jobs are likely to increase as
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AN INSTRUCTORS GUIDE
TO SUPPLEMENTS
With this greatly enhanced package, you and your students are covered from the basic
supplements to the latest in educational technologies. Check it out for yourself.
ASSESSMENT TOOLS
3,000 question test bank. The test bank contains 3,000 questions categorized by
topic and level of learning (definitional, conceptual, or application), and correlated to
the Learning Objectives and Chapter in Review within each chapter of the text. The
instructor-friendly format allows easy selection of questions from any part of the
text, boxed materials, and cases.
EZTest software. This supplement contains all of the multiple-choice questions and
the short essay questions from the test bank, and questions from the web quizzes. The
EZTest program allows you to select any of the questions, make changes if desired, or
add new questionsand quickly print out a finished set customized to your course.
Web quizzes. These quizzes are available to help prepare students for taking tests and
can be found at www.mhhe.com/kerin. Fifty percent of the questions in each web quiz
are also in the test bank to reward students who utilize this study aid.
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ONLINE TECHNOLOGY
Online Learning Center
This robust book-specific website includes resources for both instructors
and students. Through the Instructor Edition link we offer downloadable
supplement materials and continuous updates. Through the Student Edition
link students have a 247 study center to keep them up-to-date, to provide
examples for application, and to prepare for a test. The Online Learning
Center also provides a link to PageOut.
PageOut
This unique point-and-click course website tool enables you to create
a high-quality course website without knowing HTML coding. With
PageOut you can post your syllabus online, assign McGraw-Hill On-
line Learning Center or e-Book content, add links to important off-site
resources, and maintain student results in the online gradebook.
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PowerWeb
Daily news feed. Headlines with annotations from the leading
periodicals and news sourcessearchable by topic.
Weekly case updates. Each week a new short case dealing with a
company in the headlines is presented.
Readings in Marketing. A collection of important articles selected
by a team of marketing professors provides deeper topical study.
PowerSearch current journals and periodicals. Search engine
powered by Northern Lights.
Career resources
Web research
Study tips
WebCT/Blackboard/eCollege/TopClass
You can use Marketing: The Core, 2/e online material with any online platform
including Blackboard, WebCT, and eCollegeto expand the reach of your course and
open up distance learning options.
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