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7e
M A T H E C O RE G
R KE TIN
Roger A. Kerin
Steven W. Hartley
ENGAGEMENT
The members of this author team have benefited from extraordinary experiences
as instructors, researchers, and consultants, as well as the feedback of users of
previous editions of Marketing: The Core—now more than one million students!
The authors believe that success in marketing education in the future will require
the highest levels of engagement. They ensure engagement by facilitating interac-
tion between students and four learning partners—the instructor, other students,
businesses, and the publisher. Some examples of high-engagement elements of
Marketing: The Core include:
In-Class Activities and Digital In-Class Activities. These activities are designed
to engage students in discussions with the instructor and among themselves. They
involve surveys, online resources, out-of-class assignments, and personal observa-
tions. Each activity illustrates a concept from the textbook and can be done indi-
vidually or as a team. Examples include: Designing a Candy Bar, Marketing Yourself,
Pepsi vs. Coke Taste Test, and What Makes a Memorable TV Commercial? In addi-
tion, digital in-class activities have been added to selected chapters. These
activities focus on the use of web resources and the marketing data they can pro-
vide students.
Building Your Marketing Plan. The Building Your Marketing Plan guides at the
end of each chapter are based on the format of the Marketing Plan presented in
Appendix A. On the basis of self-study or as part of a course assignment, students
can use the activities to organize interactions with businesses to build a marketing
plan. Students and employers often suggest that a well-written plan in a student’s
portfolio is an asset in today’s competitive job market.
vii
LEADERSHIP
The popularity of Marketing: The Core in the United States and around the globe is
the result, in part, of the leadership role of the authors in developing and presenting
new marketing content and pedagogies. For example, Marketing: The Core was
the first text to integrate ethics, technology, and interactive marketing. It was also
the first text to develop custom-made videos to help illustrate marketing principles
and practices and bring them to life for students as they read the text. The authors
have also been leaders in developing new learning tools such as a three-step learn-
ing process that includes learning objectives, learning reviews, and learning objec-
tives reviews; and new testing materials that are based on Bloom’s learning
taxonomy. Other elements that show how Marketing: The Core is a leader in the
discipline include:
Chapter 16: Using Social Media and Mobile Marketing to Connect with Con-
sumers. Marketing: The Core features a dedicated chapter for social media and
mobile marketing. This new environment is rapidly changing and constantly growing.
The authors cover the building blocks of social media and mobile marketing and
provide thorough, relevant content and examples. The authors discuss major so-
cial media platforms such as Twitter, Facebook, LinkedIn, and YouTube. They explain
how managers and companies can use those outlets for marketing purposes. Also
discussed in Chapter 16 are methods of measuring a company’s success with social
media and mobile marketing. This chapter is one of many ways Marketing: The
Core is on the cutting edge of the field.
Applying Marketing Metrics. The Applying Marketing Metrics feature in the text
delivers two of the newest elements of the business and marketing environment
today—performance metrics and dashboards to visualize them. Some of the met-
rics included in the text are: Category Development Index (CDI), Brand Develop-
ment Index (BDI), Price Premium, Sales per Square Foot, Same-Store Sales
Growth, Promotion-to-Sales Ratio, and Cost per Thousand (CPM) Impressions.
The feature is designed to allow readers to learn, practice, and apply marketing
metrics.
Color-Coded Graphs and Tables. The use of color in the graphs and tables
enhances their readability and adds a visual level of learning to the textbook for
readers. In addition, these color highlights increase student comprehension by linking
the text discussion to colored elements in the graphs and tables.
New Video Cases. Each chapter ends with a case that is supported by a video to
illustrate the issues in the chapter. New cases such as Coppertone, Mall of America,
and GoPro, and recent cases such as Amazon, Taco Bell, and Chobani Greek
Yogurt provide current and relevant examples that are familiar to students.
viii
INNOVATION
In today’s fast-paced and demanding educational environment, innovation is es-
sential to effective learning. To maintain Marketing: The Core’s leadership position
in the marketplace, the author team consistently creates innovative pedagogical
tools that match contemporary students’ learning styles and interests. The authors
keep their fingers on the pulse of technology to bring real innovation to their text
and package. Innovations such as in-text links, a Twitter feed, hyperlinked Power-
Point slides, and an online blog augment the McGraw-Hill Education online innova-
tions such as Connect, LearnSmart, and SmartBook.
In-text Links. You can see Internet links in magazine ads; on television program-
ming; as part of catalogs, in-store displays, and product packaging; and throughout
Marketing: The Core! These links bring the text to life with ads and videos about
products and companies that are discussed in the text. These videos also keep the
text even more current. While each link in the text has a caption, the links are up-
dated to reflect new campaigns and market changes. In addition, the links allow
readers to stream the video cases at the end of each chapter. You can simply click
on the links in the digital book or use your smartphone or computer to follow the
links.
Innovative Test Bank. Containing almost 5,000 multiple-choice and essay ques-
tions, the Marketing: The Core Test Bank reflects more than two decades of innova-
tions. The Test Bank includes two Test Item Tables (located in the Instructor
Resources) for each chapter that organize all the chapter’s test items by Bloom’s
three levels of learning against both (1) the main sections in the chapter and (2) the
chapter’s learning objectives. In addition, a number of “visual test questions” for
each chapter reward students who have spent the effort to understand key graphs
and tables in the chapter.
ix
®
Required=Results
©Getty Images/iStockphoto
McGraw-Hill Connect®
Learn Without Limits
Connect is a teaching and learning platform
that is proven to deliver better results for
students and instructors.
Connect empowers students by continually
adapting to deliver precisely what they
need, when they need it, and how they need
it, so your class time is more engaging and
effective.
Analytics
Connect Insight®
Connect Insight is Connect’s new one-of-a-
kind visual analytics dashboard—now available
for both instructors and students—that
provides at-a-glance information regarding
student performance, which is immediately actionable.
By presenting assignment, assessment, and topical
performance results together with a time metric that
is easily visible for aggregate or individual results, Connect
Insight gives the user the ability to take a just-in-time approach Students can view
to teaching and learning, which was never before available. their results for any
Connect Insight presents data that empowers students and
helps instructors improve class performance in a way that is
Connect course.
efficient and effective.
Mobile
Connect’s new, intuitive mobile interface gives students
and instructors flexible and convenient, anytime–anywhere
access to all components of the Connect platform.
Adaptive
THE ADAPTIVE
READING EXPERIENCE
DESIGNED TO TRANSFORM
THE WAY STUDENTS READ
SmartBook®
Proven to help students improve grades and
study more efficiently, SmartBook contains the
same content within the print book, but actively
tailors that content to the needs of the individual.
SmartBook’s adaptive technology provides precise,
personalized instruction on what the student
should do next, guiding the student to master
and remember key concepts, targeting gaps in
knowledge and offering customized feedback,
and driving the student toward comprehension
and retention of the subject matter. Available on
tablets, SmartBook puts learning at the student’s
fingertips—anywhere, anytime.
www.mheducation.com
INSTRUCTOR RESOURCES
Video cases
Test Bank Instructor’s Manual
A unique series of 18
We offer almost 5,000 test The IM includes lecture
marketing video cases
questions categorized by notes, video case
includes new videos
topic learning objectives, teaching notes, and
featuring Coppertone, GoPro,
and level of learning. in-class activities.
and Mall of America.
Practice Marketing
Practice Marketing is a 3D, online, single- or multiplayer game that helps students
apply the four Ps by taking on the role of Marketing Manager for a backpack company.
By playing the game individually and/or in teams, students come to understand
how their decisions and elements of the marketing mix affect one another. Practice
Marketing is easy to use, fully mobile, and provides an interactive alternative to
marketing plan projects. Log in to mhpractice.com with your Connect credentials
to access a demo, or contact your local McGraw-Hill representative for more
details.
xii
NEW AND REVISED CONTENT
Chapter 1: New Discussion of Marketing at Chobani, Chapter 4: New Video Case on Coppertone, New
New Showstopper Analysis, and New Material on the Evaluative Criteria Data, and New Emphasis on Stu-
Internet of Everything. Chapter 1 begins with an up- dent Trial of VALS. The Alternative Evaluation discus-
date of Chobani’s savvy use of marketing to create a sion has been updated to show new data for Apple,
new food category. Examples include Chobani’s use of HTC, Motorola Droid, and Samsung Galaxy phones.
a YouTube channel, its introduction of yogurt cafés, The Consumer Lifestyle section now includes addi-
and its development of new products such as Chobani tional discussion to increase student use of the VALS
Meze™ Dips, Drink Chobani, and new Chobani Flip fla- survey and self-assessment of their personal VALS pro-
vors. New product examples such as Apple Newton, file. In addition, a new end-of-chapter video case about
StuffDOT, and Pepsi True have been added to the dis- consumer behavior related to Coppertone products
cussion of potential “showstoppers” for new-product has been added.
launches. Discussion of “the Internet of Everything”
and how data analytics is used to form relationships
with customers has also been added. Chapter 5: New Chapter Organization and New Buying
Function Section. The first section of the chapter has
been reorganized to reflect the important distinction be-
Chapter 2: Updated Chapter Opening Example, New tween organizational buyers and organizational markets.
Coverage of Social Entrepreneurship and Marketing In addition, a new section that details the expanded role
Analytics, and the Addition of Apple Watch to the BCG of the buying function in organizations has been added.
Analysis. The Chapter 2 opening example discusses
how marketing strategies contribute to the social
aspects of Ben & Jerry’s mission. Social entrepreneur- Chapter 6: New Chapter Opening Example and New
ship and Forbes magazine’s 30 Under 30 Social Entre- Examples Related to World Trade, Countertrade,
preneurs are now discussed in the Making Responsible Exchange Rates, and Market Entry Strategies. A new
Decisions box. In addition a new section discusses chapter opening example discusses Amazon’s efforts to
tracking strategic performance with marketing analytics. expand into India and the challenges it faces. The rela-
The application of the Boston Consulting Group busi- tive influence of the United States, China, and Germany
ness portfolio model to Apple’s product line has been in world trade has been updated. In addition, the coun-
updated to include changes such as the introduction of tertrade discussion now includes an example of PepsiCo
the Apple Watch. agreeing to purchase tomatoes in India for its Pizza Hut
division. Other new examples include Procter & Gamble’s
losses due to exchange rate fluctuations and the signifi-
Chapter 3: New Discussion of Changes at Facebook, cant cost of Target’s entry and exit from Canada.
Update of New Trends in Marketing, and a New Section
on Technology and Data Analytics. Recent changes at
Facebook are discussed, including its purchase of Chapter 7: Updated Chapter Opening Example, New
Oculus, the use of drones to transmit Internet signals, Primary and Secondary Data Coverage, and New Section
and the creation of Creative Labs, which is charged on Big Data and Data Analytics. The chapter opening
with trying to predict the future. In addition, discussion example has been updated with new research methods
of new trends such as millennials’ growing interest in such as “social listening,” which uses Twitter, YouTube,
being a “force for good” has been added. A new section Tumblr, and other social media to monitor movie cam-
about data analytics reports that 50 percent of all man- paigns. An update of secondary data sources is in-
agers thought that improving information and analytics cluded in the Marketing Matters box and a new
was a top priority. discussion of the difficulties of obtaining an accurate
xiii
assessment of television viewing behavior has been Centurion cards have been added. In addition, the text
added. In addition, new examples of Procter & Gamble discusses how Kylie and Kendall Jenner have filed to
and IKEA using observational research techniques, an have their first names trademarked.
online version of the Wendy’s survey, and a new sec-
tion Big Data and Data Analytics have been added.
New topics such as data visualization, the intelligent Chapter 11: New Chapter Opening Example about the
enterprise, and cloud computing are introduced. Pricing of E-Books, New Marketing Matters Box about
Spirit Airlines, New Making Responsible Decisions
Box about “Surge Pricing,” New Discussion of Dynamic
Chapter 8: Update of Zappos Segmentation Approach Pricing. The new chapter opening example begins with
and New Segmentation Examples. The discussion of a discussion of the pricing practices related to printed
Zappos.com’s successful segmentation strategy has books and e-books, including the use of odd prices
been updated. In addition, examples of segmentation for such as $19.99. A new Marketing Matters box describes
book series, movies, and theme parks have been added. how Spirit Airlines offers fares that are 40 percent lower
Walmart’s new strategy to compete for the discount chain than other airlines and how customers assess the value
(e.g., Dollar General) segment with Walmart Neighbor- of Spirit’s offerings. The section on dynamic pricing
hood Market stores is also discussed and the Wendy’s includes the concept of “surge” pricing, when a com-
product-market grid and discussion have been updated pany raises the price of its product if there is a spike in
to reflect new products and digital marketing activities. demand. In addition, a new Making Responsible Deci-
sions box asks students to evaluate the economic and
ethical perspectives of surge pricing.
Chapter 9: New Video Case on GoPro, Update of Ap-
ple’s New-Product Development Successes and Fail-
ures including the iCar, and Greater Emphasis on Open Chapter 12: New Disintermediation and Reverse Logis-
Innovation. The chapter opening example has been up- tics Examples. A description of a disagreement between
dated to include a history of Apple’s notable innovation Amazon and Hachette Book Group about how e-book
successes and failures, the introduction of the Apple revenue should be divided between the two companies
Watch, and a description of Apple’s development of the has been added to the disintermediation section.
Apple iCar scheduled for introduction in 2019 or 2020. Hewlett-Packard’s success in recycling of ink cartridges
The concept of open innovation has been added and ap- through its distribution system is expanded upon.
proaches to implementing open innovation are discussed
in the description of the new-product development pro-
cess. A new Marketing Matters box discusses the intro- Chapter 13: New Chapter Opening Example about
duction of Google Glass in 2012 and its withdrawal from Wearable Technology, Updated Making Responsible
the market in 2015. Other new examples include P&G’s Decisions Box, New Section on Data Analytics, and
Swiffer WetJet, the Chevy Bolt, and Burger King’s French New Mall of America Video Case. Chapter 13 opens
fries. A new end-of-chapter case describes the new prod- with a description of the potential impact of wearable
uct development process at GoPro, Inc. technology on consumers and retailers. Products such
as smartwatches, mobile apps, near field communica-
tion, and Apple Pay, and their use at retailers such as
Chapter 10: New Material on Brand Repositioning at Target, Kohl’s, and Marsh Supermarkets are discussed.
Gatorade and New Trademark Coverage. The Chapter The Making Responsible Decisions box now includes
10 discussion of Gatorade now includes its efforts to information about Newsweek’s annual “green rank-
reposition the brand and to develop different lines of ings” and encourages students to review the rankings
Gatorade products for different types of athletes. New of their favorite retailers. In addition, a new section de-
examples about Apple’s iPhone, Gillette’s Body line of scribing data analytics as the “new science of retailing”
shaving products for “manscaping,” and American has been added. Finally, the end-of-chapter video case
Express Green, Gold, Platinum, Optima Blue, and on Mall of America is completely new!
xiv
Chapter 14: Updated Discussion of Marketing to advertising revenue, and likely future developments.
College Students, New Advertisements, and New New discussion also includes the next-generation
Example of an IMC Program for a Movie. The Mar- Web, Web 3.0. A new section on mobile marketing
keting Matters box has been updated to include the has been added to the discussion of Facebook. Chap-
most recent suggestions for successful use of mobile ter 16 also includes a new Marketing Matters box
marketing to reach college students. New advertise- about the importance of video in a mobile marketing
ments include examples from The North Face, Klondike, campaign.
M&M’s, and Fantastic Beasts and Where to Find
Them. The IMC program used to promote the movie
Fantastic Beasts and Where to Find Them has been Chapter 17: Update of the Chapter Opening Example,
added to the Scheduling section. New Discussion of the Importance of Personal Selling
to Entrepreneurs, and a New Making Responsible De-
cisions Box. The chapter opening example about GE’s
Chapter 15: New Chapter Opening Example about Lindsey Smith has been updated to include a descrip-
Virtual Reality, New Advertisements and Sales Pro- tion of her new responsibilities and job title. A new dis-
motion Examples, and New Discussion of the Adver- cussion about the three reasons personal selling is
tising Agency of the Year. The impact of virtual reality critical to successful entrepreneurial efforts has been
is the new topic of the chapter opening example. Cur- added. In addition, a new photo example of team sell-
rent VR campaigns by Mountain Dew, Game of ing, and a new Making Responsible Decisions box
Thrones, and Marriott hotels, and future campaigns by about the ethics of asking customers about competi-
Fox Sports and NASCAR are discussed. New advertis- tors have been added.
ing examples from Levi’s, Samsung, Milk Life, and
Bebe, and new sales promotion examples from Plenti
and The Tonight Show have been added. In addition, Chapter 18: Expanded Discussion about Marketing in
the chapter includes new discussion of Advertising Two Environments, New Marketing Matters Box, and
Age’s Agency of the Year—R/GA. New Discussion about the Cross-Channel Consumer.
The Marketing in Two Environments section now dis-
cusses how some retailers provide showrooms for con-
Chapter 16: New Chapter Opening Example, New Dis- sumers that purchase online, while some luxury fashion
cussion of Web 3.0, New Section on Mobile Marketing retailers don’t have an online presence. A new Market-
at Facebook, and New Marketing Matters Box on Mo- ing Matters box discusses Internet shopping addiction.
bile Marketing. Chapter 16 opens with a discussion of In addition, the Who Is the Cross-Channel Consumer?
the “ultimate marketing machine”—a smartphone. The section now discusses the prominence of consumer
discussion includes a summary of usage rates, current showrooming and webrooming behaviors.
xv
Acknowledgments
To ensure continuous improvement of our textbook and supplements we have utilized an
extensive review and development process for each of our past editions. Building on that
history, the Marketing: The Core, 7th edition development process included several phases
of evaluation and a variety of stakeholder audiences (e.g., students, instructors, etc.).
Reviewers who were vital in the changes that were made to this and previous editions
and its supplements include:
xvi
Sanal Mazvancheryl Clay Rasmussen Judy Wagner
American University Texas A&M University System– East Carolina University
Diane T. McCrohan Tarleton State University Erin Wilkinson
Johnson & Wales University Chris Ratcliffe Johnson & Wales University
Sue McGorry Bryant University Jacqueline Williams
DeSales University Deana Ray North Carolina A&T
Mary Ann McGrath Forsyth Technical Community College State University
Loyola University–Chicago Kristen Regine Sharna Williams
Terrance Kevin McNamara Johnson & Wales University Forsyth Technical
Suffolk County Community College Ruth Rosales Community College
Sanjay S. Mehta Miami University Tina L. Williams
Sam Houston State University Abhik Roy East Carolina University
Juan (Gloria) Meng Quinnipiac University John Withey
Minnesota State University–Mankato Mark Ryan Saint Edwards University
Kathy Meyer Hawkeye Community College Van Wood
Dallas Baptist University Kumar Sarangee Virginia Commonwealth
Santa Clara University University
Victoria Miller
Mary Schramm Jefrey R. Woodall
Morgan State University
Quinnipiac University York College of Pennsylvania
Robert Morris
Darrell Scott George Young
Florida State College at Jacksonville
Idaho State University Liberty University
Carol M. Motley
Sandipan Sen William Zahn
University of Alabama at Birmingham
Southeast Missouri State University Saint Edwards University
Jean Murray
Kunal Sethi Shabnam Zanjani
Bryant University
University of Minnesota–Duluth Northeastern Illinois University
Keith B. Murray
Abhay Shah Srdan Zdravkovic
Bryant University
Colorado State University–Pueblo Bryant University
John Ney
Ravi Shanmugam Nadia J. Abgrab
Idaho State University
Santa Clara University Kerri Acheson
Elaine Notarantonio
Lisa Siegal Wendy Achey
Bryant University
Texas A&M University–San Antonio Roy Adler
Joanne Orabone
Sally Sledge Praveen Aggarwal
Community College of Rhode Island
Norfolk State University Christie Amato
Nikolai Ostapenko
James Garry Smith Linda Anglin
University of the District of Columbia
Tarleton State University Chris Anicich
Richard D. Parker
Kimberly Smith Ismet Anitsal
High Point University
County College of Morris Godwin Ariguzo
Jerry Peerbolte
Julie Sneath William D. Ash
University of Arkansas–Fort Smith
University of South Alabama Corinne Asher
Deepa Pillai
Sandra K. Speck Gerard Athaide
Northeastern Illinois University
Idaho State University April Atwood
Michael Pontikos
Janice Taylor Tim Aurand
Youngstown State University
Miami University Andy Aylesworth
Milton Pressley
Mary Tripp Patricia Baconride
University of New Orleans
Wisconsin Indianhead Ainsworth Bailey
Tony Ramey
Technical College Siva Balasubramanian
Ivy Tech Community College of
Indiana–Fort Wayne Lisa Troy A. Diane Barlar
Bruce Ramsey Texas A&M University James H. Barnes
Franklin University Ann Veeck Suman Basuroy
Maria Randazzo-Nardin Western Michigan University Connie Bateman
State University of New York– Jeffrey W. von Freymann Leta Beard
Farmingdale College Wingate University Karen Becker-Olsen
xvii
Cathleen Behan Kay Chomic Michael Drafke
Frederick J. Beier Janet Ciccarelli Darrin C. Duber-Smith
Thom J. Belich Melissa Clark Lawrence Duke
Joseph Belonax Reid Claxton Bob Dwyer
John Benavidez Alfred Cole Laura Dwyer
Ellen Benowitz Debbie Coleman Rita Dynan
Karen Berger Howard Combs Eddie V. Easley
Jill Bernaciak Clare Comm Eric Ecklund
Thomas M. Bertsch Clark Compton Alexander Edsel
Parimal Bhagat Mary Conran Roger W. Egerton
Carol Bienstock Cristanna Cook Steven Engel
Abhi Biswas Sherry Cook Kellie Emrich
Kevin W. Bittle John Coppelt David Erickson
Brian Bittner John Cox Barbara Evans
Chris Black Scott Cragin Ken Fairweather
Christopher P. Blocker Donna Crane Bagher Fardanesh
Jeff Blodgett Ken Crocker Larry Feick
Nancy Bloom Jane Cromartie Phyllis Fein
Charles Bodkin Joe Cronin Lori Feldman
Larry Borgen Linda Crosby Kevin Feldt
Koren Borges James Cross John Finlayson
Nancy Boykin Lowell E. Crow Kasia Firlej
John Brandon Brent Cunningham Karen Flaherty
Thomas Brashear John H. Cunningham Theresa Flaherty
Martin Bressler Bill Curtis Elizabeth R. Flynn
Elten Briggs Bob Dahlstrom Leisa Flynn
Glen Brodowsky Richard M. Dailey Charles Ford
Bruce Brown Dan Darrow Renee Foster
William Brown Neel Das Michael Fowler
William G. Browne Mayukh Dass Judy Foxman
Kendrick W. Brunson Hugh Daubek Tracy Fulce
Judy Bulin Clay Daughtrey Donald Fuller
David J. Burns Martin Decatur Bashar Gammoh
Alan Bush Francis DeFea Stan Garfunkel
John Buzza Joseph DeFilippe Stephen Garrott
Stephen Calcich Beth Deinert Roland Gau
Nate Calloway Linda M. Delene James Gaubert
Catherine Campbell Tino DeMarco Glen Gelderloos
William J. Carner Frances Depaul Susan Geringer
Gary Carson Jobie Devinney-Walsh David Gerth
Tom Castle Alan Dick James Ginther
Gerald O. Cavallo Irene Dickey Susan Godar
Carmina Cavazos Paul Dion Dan Goebel
Erin Cavusgil William B. Dodds Marc Goldberg
S. Tamer Cavusgil James H. Donnelly Leslie A. Goldgehn
Kirti Celly Casey Donoho Larry Goldstein
Bruce Chadbourne Shanmugasundaram Doraiswamy Kenneth Goodenday
S. Choi Chan Michael Dore Karen Gore
Donald Chang Ron Dougherty Robert Gorman
Joel Chilsen Diane Dowdell Darrell Goudge
Sang Choe Paul Dowling James Gould
xviii
Kimberly Grantham Herbert Katzenstein James Lollar
Nancy Grassilli Philip Kearney Paul Londrigan
Stacia Gray George Kelley Lynn Loudenback
Barnett Greenberg Katie Kemp Ann Lucht
James L. Grimm Ram Kesaran Harold Lucius
Pamela Grimm Joe Kim Mike Luckett
Pola B. Gupta Brian Kinard Robert Luke
Mike Hagan Martyn Kingston Michael R. Luthy
Amy Handlin Roy Klages Richard J. Lutz
Richard Hansen Chiranjeev Kohli Jun Ma
Donald V. Harper John Kohn Marton L. Macchiete
Dotty Harpool Christopher Kondo Rhonda Mack
Lynn Harris Douglas Kornemann Cesar Maloles
Robert C. Harris Kathleen Krentler Patricia Manninen
Ernan Haruvy Terry Kroeten James Marco
Santhi Harvey David Kuhlmeier Kenneth Maricle
Ron Hasty Anand Kuman Larry Marks
Julie Haworth Nanda Kumar Tom Marshall
Bryan Hayes Michelle Kunz Elena Martinez
Yi He Ann T. Kuzma James Maskulka
James A. Henley, Jr. John Kuzma Carolyn Massiah
Ken Herbst Priscilla LaBarbera Tamara Masters
Jonathan Hibbard Duncan G. LaBay Charla Mathwick
Richard M. Hill Christine Lai Michael Mayo
Adrienne Hinds Jay Lambe James McAlexander
Nathan Himelstein Tim Landry Peter J. McClure
Donald Hoffer Irene Lange Maria McConnell
Al Holden Jane Lang Phyllis McGinnis
Fred Honerkamp Richard Lapidus Jim McHugh
Donna M. Hope Donald Larson Roger McIntyre
Kristine Hovsepian Ron Larson Jane McKay-Nesbitt
Jarrett Hudnal Ed Laube Gary F. McKinnon
Fred Hurvitz J. Ford Laumer Ed McLaughlin
Mike Hyman Debra Laverie Jo Ann McManamy
Rajesh Iyer Marilyn Lavin Kristy McManus
Donald R. Jackson Gary Law Bob McMillen
Paul Jackson Robert Lawson Samuel E. McNeely
Kenneth Jameson Cecil Leaonard Lee Meadow
David Jamison Wilton Lelund Sanjay S. Mehta
Deb Jansky Karen LeMasters Havva Jale Meric
Jianfeng Jiang Richard C. Leventhal Matt Meuter
Cydney Johnson Cindy Leverenz James Meszaros
James C. Johnson Leonard Lindenmuth Fekri Meziou
Wesley Johnston Natasha Lindsey George Miaoulis
Keith Jones Jay Lipe Ronald Michaels
Robert Jones Ann Little Herbert A. Miller
Mary Joyce Eldon L. Little Stephen W. Miller
Jacqueline Karen Jason Little Soon Hong Min
Janice Karlen Yong Liu Jennie Mitchell
Sudhir Karunakaran Yunchuan Liu Theodore Mitchell
Rajiv Kashyap Ritu Lohtia Steven Moff
xix
Kim Montney Renee Pfeifer-Luckett Doris M. Shaw
Rex Moody Chuck Pickett Eric Shaw
Melissa Moore Bruce Pilling Ken Shaw
Linda Morable William S. Piper Dan Sherrel
Fred Morgan Stephen Pirog Philip Shum
Robert Morris Robert Pitts Susan Sieloff
Farrokh Moshiri Gary Poorman Lisa Simon
Gordon Mosley Vonda Powell Rob Simon
William Motz Carmen Powers Bob E. Smiley
Rene Mueller Susie Pryor Allen Smith
Donald F. Mulvihill Joe Puzi David Smith
James Munch Abe Qastin Kimberly Smith
James Muncy Edna Ragins Ruth Ann Smith
Jeanne Munger Priyali Rajagopal Sandra Smith
Linda Munilla Daniel Rajaratnam Norman Smothers
Bill Murphy James P. Rakowski Julie Sneath
Brian Murray Rosemary Ramsey Gonca Soysal
Janet Murray Kristen Regine James V. Spiers
Keith Murray Timothy Reisenwitz Pat Spirou
Suzanne Murray Alicia Revely Craig Stacey
Paul Myer Barbar Ribbens Martin St. John
Joseph Myslivec William Rice Miriam B. Stamps
Sunder Narayanan Cathie Rich-Duval Cheryl Stansfield
Edwin Nelson Kim Richmond Joe Stasio
Jennifer Nelson Joe Ricks Angela Stanton
Nancy Nentl Heikki Rinne Susan Stanix
Bob Newberry Sandra Robertson Tom Stevenson
Eric Newman Bruce Robertson John Striebich
Donald G. Norris Linda Rochford Andrei Strijnev
Carl Obermiller William Rodgers Randy Stuart
Dave Olson Christopher Roe Kathleen Stuenkel
Lois Olson Jean Romeo Scott Swan
James Olver Teri Root Ric Sweeney
Ben Oumlil Dennis Rosen Michael Swenson
Notis Pagiavlas Tom Rossi Robert Swerdlow
Allan Palmer Vicki Rostedt Vincent P. Taiani
Yue Pan Heidi Rottier Clint Tankersley
Anil Pandya Larry Rottmeyer Ruth Taylor
Dennis Pappas Robert Rouwenhorst Steve Taylor
June E. Parr Robert W. Ruekert Andrew Thacker
Philip Parron Maria Sanella Tom Thompson
Vladimir Pashkevich Charles Schewe Scott Thorne
Thomas Passero Kathryn Schifferle Hsin-Min Tong
David Terry Paul Starr F. Schlobohm Dan Toy
Richard Penn Lisa M. Sciulli Fred Trawick
John Penrose Mary Schramm Thomas L. Trittipo
William Pertula Roberta Schultz Gary Tucker
Michael Peters Stan Scott Sue Umashankar
Bill Peterson Kim Sebastiano Ann Veeck
Susan Peterson Eberhard Seheuling Bronis Verhage
Linda Pettijohn Harold S. Sekiguchi Ottilia Voegtli
xx
Jeff von Freymann Alan Whitebread Letty Workman
Gerald Waddle James Wilkins Lauren Wright
Randall E. Wade Erin Wilkinson Lan Wu
Judy Wagner Janice Williams William R. Wynd
Blaise Waguespack, Jr. Joan Williams Donna Yancey
Harlan Wallingford Kaylene Williams Poh-Lin Yeoh
Joann Wayman Robert Williams Mark Young
Mark Weber Kathleen Williamson Sandra Young
Don Weinrauch Jerry W. Wilson Gail M. Zank
Robert S. Welsh Joseph Wisenblit Srdan Zdravkovic
Ron Weston Robert Witherspoon James Zemanek
Michelle Wetherbee Kim Wong Christopher Ziemnowicz
Sheila Wexler Van R. Wood Lisa Zingaro
Max White Wendy Wood Leon Zurawicki
Thanks are due to many people, including students, instructors, university staff, librarians
and researchers, business periodical authors and editors, company representatives, and
marketing professionals of every kind. Their assistance has been essential in our efforts
to continue to provide the most comprehensive and up-to-date teaching and learning
package available. We have been fortunate to have so many people be part of our team!
Nancy Harrower of Concordia University, St. Paul led our efforts on the Instructor’s Manual,
the PowerPoint slides, and the In-Class Activities. In addition, she provides the content for
our blog (kerinmarketing.com). Tia Quinlan-Wilder of the University of Denver was respon-
sible for the Test Bank and Quizzes and for the LearnSmart component of our interactive
learning package. Erin Steffes of Towson University was responsible for the Connect inter-
actives. All of these professors are exceptional educators and we are very fortunate that
they are part of our team.
Thanks are also due to many other colleagues who contributed to the text, cases, and
supplements. They include: Richard Lutz of the University of Florida; Linda Rochford of
the University of Minnesota–Duluth; Kevin Upton of the University of Minnesota–Twin Cit-
ies; Nancy Nentl of Metropolitan State University; Leslie Kendrick of Johns Hopkins Uni-
versity; Lau Geok Theng of the National University of Singapore; and Leigh McAlister of
the University of Texas at Austin. Rick Armstrong of Armstrong Photography, Dan Hundley
and George Heck of Token Media, Nick Kaufman and Michelle Morgan of NKP Media,
Bruce McLean of World Class Communication Technologies, Paul Fagan of Fagan Pro-
ductions, Martin Walter of White Room Digital, Scott Bolin of Bolin Marketing, and Andrew
Schones of Pure Imagination produced the videos.
xxi
Nick Naumann of Altus Marketing and Business Development; and Nelson Ng from Dundas
Data Visualization, Inc.
Those who provided the resources for use in both the Marketing, 7th edition textbook,
Instructor’s Manual, and/or PowerPoint presentations include: Todd Walker and Jean
Golden of Million Dollar Idea; Karen Cohick of Susan G. Komen for the Cure; Liz Stewart
of Ben & Jerry’s; John Formella and Patricia Lipari of Kodak; Apple, Inc.; Erica Schiebel of
3M; Joe Diliberti of Consumer Reports; Patricia Breman of Strategic Business Insights
(VALS); Brian Nielsen of the Nielsen Company; David Walonick of StatPac; Mark Rehborg
of Schwan’s Consumer Brands (Tony’s Pizza); Jennifer Olson of Experian Simmons; Kitty
Munger and Mary Wykoff of Wendy’s; Mark Heller of RetailSails; Nicky Hutcheon of Zenith
Optimedia; Amy Thompson and Jennifer Allison of Dell, Inc.; Adriana Carlton of Walmart
and Rick Hill of Bernstein-Rein Advertising (Walmart); Janine Bolin of Saks, Inc.; Dr. Yory
Wurmser of the Direct Marketing Association; Elizabeth Clendenin of Unilever (Caress);
Jennifer Katz, Kelsey Fisher, Jenny Caffoe, Lexi Diederich, and Malyn Mueller of StuffDOT,
Inc.; and Eric Fleming of Segway.
We also want to thank the following people who generously provided assistance with our
Marketing, 7th edition In-Class Activities (ICAs) and associated PowerPoint presentations:
Mitch Forster and Carla Silveira of Ghirardelli Chocolate Company; Karolyn Warfel and
Betsy Boyer of Woodstream Corp. (Victor Pest); Leonard Fuld of Fuld & Co.; Maggie Jantzen
of Starbucks Coffee Company; Michelle Green and Victoria Glazier of the U.S. Census
Bureau; Lisa Castaldo of Pepsi; Muffie Taggert of General Mills; Robert M. McMath, for-
merly of NewProductWorks; Greg Rodriguez; Jeremy Tucker, Julia Wells, and Lisa Cone
of Frito-Lay (Doritos); Susan Carroll and Bob Robinson of Apple, Inc.; Willard Oberton of
Fastenal Company; Scott Wosniak and Jennifer Arnold of Toro; Kim Eskro of Fallon World-
wide (Gold’n Plump); Robin Grayson of TBWA/Chiat/Day (Apple); Katie Kramer of Valassis
Communications, Inc. (Nutella/Advil); Triestina Greco of Nutella/Ferrero; Tim Stauber of
Wyeth Consumer Healthcare (Advil); Yvonne Pendleton and Lucille Storms of Mary Kay.
Staff support from the Southern Methodist University and the University of Denver was
essential. We gratefully acknowledge the help of Jeanne Milazzo and Karen Gross for
their many contributions.
Checking countless details related to layout, graphics, clear writing, and last-minute
changes to ensure timely examples is essential for a sound and accurate textbook. This
also involves coordinating activities of authors, designers, editors, compositors, and pro-
duction specialists. Christine Vaughan, our lead content project manager, and Kelly
Pekelder, our product developer, both of McGraw-Hill Education, provided the necessary
oversight and hand-holding for us, while retaining a refreshing sense of humor, often
under tight deadlines. Thank you again!
Finally, we acknowledge the professional efforts of the McGraw-Hill Education staff. Com-
pletion of our book and its many supplements required the attention and commitment of
many editorial, production, marketing, and research personnel. Our McGraw-Hill team in-
cluded Susan Gouijnstook, Meredith Fossel, Meghan Campbell, Elizabeth Schonagen,
Kelly Delso, Kerry Shanahan, Terri Schiesl, Mary Conzachi, Danielle Clement, Matt Dia-
mond, DeAnna Dausener, Lori Hancock, and many others. In addition, we relied on David
Tietz for constant attention regarding photo elements of the text. Handling the countless
details of our text, supplement, and support technologies has become an incredibly com-
plex challenge. We thank all these people for their efforts!
Roger A. Kerin
Steven W. Hartley
xxii
BRIEF CONTENTS
Part 1 Initiating the Marketing Process
1 Creating Customer Relationships and Value through Marketing 2
2 Developing Successful Organizational and Marketing Strategies 24
Appendix A Building an Effective Marketing Plan 52
3 Understanding the Marketing Environment, Ethical Behavior, and Social
Responsibility 68
xxiii
DETAILED CONTENTS
Part 1 Initiating the Marketing Process
1 CREATING CUSTOMER RELATIONSHIPS AND VALUE
THROUGH MARKETING 2
At Chobani, Marketing Is “Nothing But Good”! 2
Understanding Consumers’ Food Values 2
Reaching Customers 2
bani LLC Chobani Today 3
Source: Cho
Chobani, Marketing, and You 4
What Is Marketing? 4
Marketing and Your Career 4
Marketing: Delivering Value to Customers 5
The Diverse Elements Influencing Marketing
Actions 5
What Is Needed for Marketing to Occur 6
How Marketing Discovers and Satisfies Consumer
Needs 7
Discovering Consumer Needs 7
The Challenge: Meeting Consumer Needs with New
Products 7
Satisfying Consumer Needs 9
The Marketing Program: How Customer Relationships
Are Built 10
Relationship Marketing: Easy to Understand, Hard to Do 10
The Marketing Program and Market Segments 12
3M’s Strategy and Marketing Program to Help
Students Study 12
How Marketing Became So Important 14
Evolution of the Market Orientation 14
Focusing on Customer Relationship Management 14
Ethics and Social Responsibility in Marketing: Balancing the
Interests of Different Groups 15
The Breadth and Depth of Marketing 16
Learning Objectives Review 18
Learning Review Answers 18
Focusing on Key Terms 18
Applying Marketing Knowledge 19
Building Your Marketing Plan 19
Video Case 1: Chobani®: Making Greek Yogurt
a Household Name 19
xxiv
Another random document with
no related content on Scribd:
Though he was a man of birth and education, he had bound
himself to a woman who possessed neither, and who was
equally deficient in the amiability and goodness of disposition
which might have done much to make amends for a lack of
the rest.
Mrs. Evans was equally vulgar and purse-proud. She did not
hesitate to put her husband in mind of his indebtedness to her
wealth, or even to hint that she might have bestowed it and
herself better than upon him.
Joyce, though the only daughter of Mr. Evans' only sister, was
not likely to be welcomed by a lady who owned that there was
"nothing she detested like poor relations."
Mrs. Evans said this to her husband, and his reply did not
improve her temper.
"True; poor Mirlees paid with his life for his meddling. But
after all, it is by these poor, foolish, unbusiness-like men that
the clever ones make their money."
Mrs. Evans was like many others who, when wishing to justify
what conscience tells them is wrong, fly to the Bible to see if
they can find a text to justify the course they are taking.
When Mr. Evans named these facts, his wife interrupted him
by asking—
"Where was the use of saving and pinching if the man must
throw it all away at last?"
Mrs. Evans said "I," but the look at her husband meant "you,"
and was intended to remind him of his indebtedness.
On this occasion, Mr. Evans felt the need for diplomacy. Joyce
Mirlees must come to The Chase with the consent of its
mistress; so he was fain to assent to his wife's praise of her
father's business qualities, to pass over her taunts without
notice; and thus he gained his end—after a fashion. Joyce was
to come until work of some kind could be found for her under
another roof.
The Misses Evans expressed their opinion that Joyce would be
fit for nothing.
"She will not suit for a governess," said Augusta, who was a
brilliant pianist. "Music is an essential, and Joyce can neither
play nor sing fit to be heard."
Such were the people to whom and the home to which Joyce
Mirlees came after her father's death.
The girl knew enough of her aunt and cousins to prevent her
from expecting much tenderness or sympathy; but she was
pained, and her uncle annoyed, to find that they were all out
when she arrived at The Chase, though Mrs. Evans knew well
at what time to expect the travellers.
Sarah always protested that she was turned out of her old
home. "I'd rather have served Mr. Mirlees and my darling for
nothing. But they turned me out, 'for my good,' they said."
"I see now what I could never understand before. I could not
believe I was sent here for my good; but I believe it now,
darling. I was sent before, in a little way, like Joseph was, to
do good to them that sold him for a slave. And I can be of use
to you, though I'm only a servant."
To Joyce, the clasp of those loving arms was indescribably
comforting, and she found that Sarah was the only person on
whom she could rely for open, hearty sympathy.
The orphan girl was soon weary of her position, and, writhing
under the slights she had received, would have been thankful
to earn her bread by any honest means rather than continue
to receive what was so grudgingly bestowed. She wished to
please Mrs. Evans and to gain the affection of her cousins, but
every effort seemed vain. Had there been young children in
the house, her time would have been occupied, but there were
none. Her cousins desired no such companion as herself; and,
as Mr. Evans' niece, she could not very well be entirely
ignored. But there was a tacit understanding between mother
and daughters that Joyce should be "kept in her place," whilst
Joyce herself, with a sore heart and memories of a happy, if
comparatively humble, home, vainly wished that she had any
definite place to fill and work to do.
CHAPTER II.
"I HAVE not a friend here but you, Sarah. I must leave this
miserable place," said Joyce, between her sobs.
"If you were a married man with a wife and daughters, you
would not find it easy to run away from your home ties,
though they may feel a little tight sometimes. And what could
you do, dearie, if you left The Chase?"
The girl glanced down at her poor, coarse black gown and
burst into tears. It had been bought only as a makeshift, in
the small country town near her old home, and her uncle had
said, "Your aunt will see that you are properly provided as
soon as we reach The Chase. She would not care for Welton
dressmaking or materials."
But this first purchase proved the only one. When Mr. Evans
said that Joyce would need other and better dresses, he was
answered promptly enough.
The girl uttered the last word somewhat scornfully, but Sarah,
with her usual good sense, replied—
"Of course you will. What mother would trust her most
precious jewels to a stranger without knowing anything about
her? The nurse comes next to the mother herself with young
children, and she cannot be too particular about the character
of one."
"I had given very little, Sarah. I had not much to give."
"Not in money, dearie. But gold and silver are not everything.
You had put in your little in that way, and a great deal that
was more precious still—time and work. You had walked many
a mile and pleaded for the poor with the rich, and induced
them to give what you could not. And who could withstand
you? Not those you had spent your life amongst."
"Yes, and it saved the mistress four weeks' board wages she
must have paid me if I had been at The Chase. I can see
round a corner, dearie, though you cannot always. Never
mind, it was a happy, blessed Christmas, and worth more than
a year's wages to be with my own precious nursling."
"No more did any of us. Well, your father acted for the best,
and you have happy years to look back on—years when you
made poor homes brighter, and cheered downcast souls with
words of love and hope. Now you must think of this. You are
not forgotten at Welton. Every one loves you there; but they
don't know how you are fixed. Depend on it they say, 'What a
good thing it was that Miss Joyce had a grand rich uncle to
take care of her when her father died!' They pray for you, and
look to see you again some day. Better still, God never
forgets. Think of this, my darling, you who cared for God's
poor to the very outside of your power. He will care for you
and repay you. As surely as the harvest follows seed-time, so
surely will you, in His good time, receive full measure back for
what you have meted out to others."
"Is she home, dearie? She was abroad somewhere when your
father was taken."
"Yes; but she returned. I heard from her ten days ago. I have
told her just enough to show her that The Chase will never be
a home for me. She urges me to go to her for a long visit, and
says, that being alone, my presence would cheer her greatly."
"But you can have anything, if you will let me get you thirty or
fifty pounds of my savings. You may take all I have, for that
matter, only you would not need that, I know."
Joyce threw her arms round Sarah's neck and kissed her
passionately.
"Bless you, and thank you a thousand times!" she cried. "But I
would not rob you of your hard earnings for the world. Do you
think when the relatives on whom I have a claim care nothing
about my clothes, I could bear to spend on myself what you
have earned by years of toil?"
"No matter. The one mourning suit will do for Sundays, and
light printed gowns will befit a nurse-girl. I have turned one
white muslin into aprons, which will do beautifully over my
two plain cashmere frocks. As to the outside mourning, what
does it mean in many cases? My aunt and cousins are wearing
what they call mourning for my father, gowns of costly
material laden with crape and jet. Did they put it on because
they cared for my father? No, Sarah; and they long to throw it
off as soon as they think society would see them do it without
remark. One day, when my aunt was specially kind, she said:
'These gowns will come in for you, Joyce, when my girls are
done with them.' I should not have minded wearing them, if
only my aunt had offered them in real kindliness. But my
mourning is no matter of outside show. Why should I care
about externals? My Father in heaven knows."
"But stay a while at Fernsclough, darling; Mrs. Caruth was
always fond of you."
"Oh, Miss Joyce. That I should live to hear you speak like
that!" said Sarah, in a tone of deep distress.
"I can only say, may God bless and guard you, my darling!
And mind, if you want me, I will come to you at any time,
night or day, for only a word."
CHAPTER III.
JOYCE had always plenty of time to herself, for when aunt and
cousins were out driving or visiting she had to choose
between solitary walks in the grounds or the society of Sarah
Keene and a seat beside her ironing table, her uncle being
often from home.
Mr. Evans did not say these words, but as he repeated them to
himself, a picture came to mind, and words from the most
touching of all parables spoke to his heart.
Joyce began a sentence but could not finish it, for her heart
was too full to permit her to continue without breaking down
utterly.
"Unless the connection had lived quite near them, and every
one knew of it. Was that what you were going to say?" asked
Mrs. Evans.
"But those are coloured. Respect for your relatives and for
society demands that you wear black during at least a year,
for your father. As to your cousins' dresses, they would not go
to Russell whilst nearly as good as new; but I presume your
pride will not let you be seen in them, though you have never
been used to anything so handsome before."
"The dresses are very good," said Joyce; "but you will not see,
and society does not know me. Has not my uncle told you that
I am going to leave The Chase?"
"Going to leave! And pray where are you going? It is just like
your uncle to know of your plans and say nothing, but I
consider it disgraceful of you to act in such an underhand way,
especially after having had such a home as this." And Mrs.
Evans waved her hand, as if to indicate that all around her
had been as much for Joyce's use and comfort as for her own.
"I do not want to seem ungrateful," replied the girl. "I have
been sheltered here, and I have had far more dainty food than
I needed, and been surrounded with many more beautiful
things than my eye was ever accustomed to before. Yet,
forgive me for saying it, I have not been happy. Nobody loves
me, nobody wants me here, and I am very lonely. Perhaps, if
my cousins and I had seen a good deal of each other when we
were children, it would have been different; but I was really
almost a stranger when I came. I hoped they would have liked
me, but being relatives always at a distance from each other
is not like growing up as playfellows and friends. I suppose
people cannot like each other just because they wish to do,
and Adelaide and Augusta have so many friends of their own
without me. So I thought it would be better for me to try and
obtain a situation—and work for my bread. I should like to feel
that I have a place to fill, and something to do; to know that I
am wanted, if only by little children. I have obtained a
situation to which I shall go in two days. My uncle knows
about it, but he only heard the particulars just before he was
called from home so suddenly yesterday, and I suppose he
had not time to tell you. He does not blame me for wishing to
be independent of help and owe my livelihood to my own
exertion. He has always been very good to me."
"I should have thought the fact of your being Mr. Evans' niece
would have been recommendation enough. Pray what kind of
situation have you engaged to fill? I must say, however, that
had you wished to be useful to those who have the first claim
upon you, I have just indicated a way in which you could be
so, and without leaving The Chase."
She was not wholly sorry in thinking of the decisive step Joyce
had taken. It would give her a good excuse for severing all
connection with so undesirable a relative. But there was one
drawback to her self-gratulation. If any of her fashionable
neighbours were to hear that Mr. Evans' niece had taken such
a situation, it would be too dreadful. They would not, perhaps,
draw so nice a distinction as she had done, and despite the
fact that the connection was only by marriage, Joyce might be
regarded as her relative also. There was no getting over the
fact that she was first cousin to Adelaide and Augusta.
"If that girl's surname had been the same as ours, I would
have taken steps to assume a different one, at whatever
cost."