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Ebook Ebook PDF Marketing The Core 8Th Edition by Roger Kerin 2 All Chapter PDF Docx Kindle
Ebook Ebook PDF Marketing The Core 8Th Edition by Roger Kerin 2 All Chapter PDF Docx Kindle
MARKETING
THE CORE
Roger A. Kerin
Steven W. Hartley
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 more than 5,000 multiple-choice and essay
questions, the Marketing: The Core Test Bank reflects more than two decades of
innovations. The Test Bank also includes “visual test questions” in each chapter to
reward students who made an effort to understand key graphs, tables, and images
in the chapter.
vii
Students—study more efficiently, retain more
and achieve better outcomes. Instructors—focus
on what you love—teaching.
For Instructors
You’re in the driver’s seat.
Want to build your own course? No problem. Prefer to use our turnkey,
prebuilt course? Easy. Want to make changes throughout the semester?
65%
Less Time
Sure. And you’ll save time with Connect’s auto-grading too.
Grading
No surprises.
The Connect Calendar and Reports tools
keep you on track with the work you need 13 14
to get done and your assignment scores.
Life gets busy; Connect tools help you
keep learning through it all. Chapter 12 Quiz Chapter 11 Quiz
Chapter 13 Evidence of Evolution Chapter 11 DNA Technology
Chapter 7 Quiz
Chapter 7 DNA Structure and Gene...
and 7 more...
Principles of Marketing
The chart below shows a few of the key assignable marketing assets with McGraw-Hill Connect aligned with
Bloom’s Taxonomy. Take your students higher by assigning a variety of applications, moving them from simple
memorization to concept application.
Create
Evaluate
Analyze
Apply
Understand
Thinking Skills
Lower Order
Remember
SmartBook
• Adaptively aids students to study more efficiently
by highlighting where in the chapter to focus,
asking review questions and pointing them to
resources until they understand.
iSeeit! Videos
• Short, contemporary videos provide engaging,
animated introductions to key course concepts.
Available at the chapter level. Perfect for
launching lectures and assigning pre- or
post-lecture.
Marketing Analytics
• These newest auto-graded, data analytics
activities challenge students to make decisions
using metrics commonly seen across Marketing
professions. The goal of this activity is to give
students practice analyzing and using marketing
data to make decisions.
Mini Simulation
• Marketing Mini Sims help students apply and
understand the interconnections of elements in
the marketing mix by having them take on the
role of Marketing Manager for a backpack
manufacturing company.
• Mini Sims can be assigned by topic or in its entirety.
NEW AND REVISED CONTENT
Chapter 1: Update of Chobani’s Success Story, New Z, and New Discussion of Gender-Neutral Marketing
Showstopper Analysis, and New Material on Ritz- Actions. The discussion of new trends, such as the
Carlton and Patagonia. Chobani’s continued success growing popularity of brand advocates, the increasing
at creating customer value is discussed and updated. application of virtual reality and augmented reality,
The company’s guiding mission, “Better food for more and the surging scrutiny regarding the collection and
people,” new products such as Drink Chobani, Chobani use of consumer data, has been updated. Generation
Flip, Smooth Yogurt, and Chobani Savor, and advertis- Z, the post-millennial generation, has been added to
ing campaigns such as “Love This Life” are presented. the discussion of generational cohorts. The Making
Discussion of Elon Musk and his success with entrepre- Responsible Decisions box includes new examples
neurial endeavors such as Zip2, PayPal, SpaceX, and such as P&G’s recyclable shampoo bottles, Unilever’s
Tesla has been added to the Marketing and Your Career “brands with purpose,” and Apple’s “greenest building
section. New-product examples such as smart glasses on the planet.” New gender-neutral marketing actions
and the YoYo car subscription service have been added have been added to the Culture section. A discussion
to the discussion of potential “showstoppers” for new- of new trends in technology, such as the growth of au-
product launches. Discussion of the Ritz-Carlton’s use tomation (e.g., autonomous cars, drones, and robots),
of relationship marketing concepts and Patagonia’s digital assistants (e.g., Amazon’s Alexa), and wearable
Common Threads Initiative have also been added. technology, has also been added. In addition, the
chapter ends with a completely new video case about
Toyota, its transition to a “mobility” company, and its
Chapter 2: New IBM Video Case, Updated Chapter marketing activities related to the hydrogen fuel-cell
Opening Example, Addition of a New Example of vehicle, the Mirai.
Social Entrepreneurship, and New Discussion of
Uber’s Changing Business Definition. The Chapter 2
opening example discusses Ben & Jerry’s mission to Chapter 4: New Section on Consumer Touchpoints
make fantastic, sustainable, world-changing ice cream. and Consumer Journey Maps, and New Figure to Il-
Free Cone Day has been added to the discussion of cre- lustrate a Consumer Journey Map. A new section de-
ative marketing strategies used by the company to help scribes consumer touchpoints, the product, service, or
accomplish its mission. The social entrepreneur venture brand points of contact with a consumer, and consumer
NexGenVest has been added to the 30 Under 30 Forbes journey maps, the visual representation of all touch-
Social Entrepreneurs discussion in the Making Responsi- points where a consumer comes into contact with a
ble Decisions box. In addition, the discussion of business company’s products, services, or brands. The new
definitions and business models now describes how Figure 4–4 illustrates consumer touchpoints and a con-
Uber has changed its definition from a cab service, to a sumer journey map for electronic devices sold by Apple
ride-sharing service, to a delivery service. The applica- in stores. The Marketing Matters box has been updated
tion of the Boston Consulting Group business portfolio to reflect the latest procedures for BzzAgents.
model to Apple’s product line has been updated to in-
clude changes related to the Apple Watch, the iPhone,
and the iPad/iPad mini tablet devices. The end-of-chap- Chapter 5: New Examples Including Lockheed Mar-
ter video case is completely new, and features the recent tin and BMW, and Updated Marketing Matters Box
IBM campaign and strategy: “Let’s Put Smart to Work.” Regarding eBay Business Supply. The description of
government markets has been updated to include the
Orion Multi-Purpose Crew Vehicle being developed
Chapter 3: New Toyota Video Case, Update of New by Lockheed Martin. In addition, the Buyer–Seller
Trends in Marketing, New Discussion on Generation Relationship section now includes GT Advanced
xii
Technology’s $578 million contract with Apple to pro- example has been updated to describe how Zappos
duce iPhone camera lenses and screens as an exam- uses behavioral segmentation to deliver “happiness”
ple of a long-term agreement. BMW’s purchase of a to its customers. The Multiple Products and Multiple
Cloud-based data management system from IBM has Market Segments section includes a new discussion of
been added as an example of a new buy. In addition, Ford’s shift in strategy to reduce its product line and
the Marketing Matters box has been updated to re- provide higher quality at lower prices. In addition, in
flect eBay’s trading platform, eBay Business Supply, the Patronage of Fast-Food Restaurants section, the
which generates $4 billion in sales annually. patronage and user/nonuser data have been updated;
also, the Future Strategies for Your Wendy’s Restau-
rant section has been updated.
Chapter 6: Updated Chapter Opening Example
Regarding Amazon in India, and Addition of UK
Withdrawal from the EU. The chapter opening ex- Chapter 9: New Discussion of the Apple-Enabled
ample is completely updated to describe the opportu- iCar and New Marketing Matters Box Coverage of
nities and challenges Amazon faces as it invests Feature Fatigue. The chapter opening example has
billions of dollars in India. The Economic Integration been updated to include a discussion of Apple’s next
among Countries section has been revised to reflect innovation—the Apple-enabled iCar. The concept of
increasing economic protectionism, including the feature bloat and fatigue is now introduced and illus-
withdrawal of the United Kingdom from the European trated in the Marketing Matters box. Keurig Kold and
Union, and discussions regarding possible changes in the HP Tablet are introduced as examples in the
the North American Free Trade Agreement. In addi- Marketing Reasons for New-Product Failures section.
tion, Listerine has been added as a new example of An example of the success of Aaron Krause’s Scrub
product adaptation in the Product and Promotion Daddy, originally pitched on Shark Tank, has been
Strategies section. added to the section on inventors as a source of
innovation.
xiii
and 8-Plus Pricing. The updated chapter opening ex- an expanded discussion about the differences between
ample describes VIZIO’s approach to pricing the 50 mil- collaborative filtering and personalization and includes
lion HDTVs it has sold since its founding. Microsoft’s Sunglass Hut as an example of a company using person-
approach to pricing its Xbox One X videogame console alization techniques. The use of chatbots has been added
is now included in the Skimming Pricing section. In ad- to the Communication section. A new section titled How
dition, examples of penetration pricing, odd-even pric- Consumers Shop and Buy Online has been added and
ing, standard markup pricing, and cost-plus pricing covers social commerce—the use of social networks for
have been updated to reflect the current marketplace. browsing and buying. In addition, the Implementing
Multichannel Marketing section has been rewritten with
new coverage of cross-channel consumer behavior,
Chapter 12: New Chapter Opening Example about mutually reinforcing channels, and monitoring and mea-
Multichannel Marketing at Eddie Bauer, Updated suring channel performance. New Figure 14–5 illustrates
Marketing Matters Box about IBM’s Watson, and a multichannel marketing consumer journey map. This
Updated Making Responsible Decisions Box. A new chapter was previously located later in the sequence of
chapter opening example describes Eddie Bauer’s chapters and has been moved to follow coverage of mar-
“brick, click, and flip” multichannel marketing strategy. keting channels and supply chains (now Chapter 12) and
The Marketing Matters box has been updated to retailing and wholesaling (now Chapter 13).
reflect IBM’s use of artificial intelligence to manage its
supply chain. In addition, the discussion of recycling
e-waste in the Making Responsible Decisions box has Chapter 15: Updated Chapter Opening Example,
been updated. New Advertisements, New Example of an IMC
Program for a Movie, and New Discussion of the
Media Agency of the Year. The chapter opening ex-
Chapter 13: Updated Chapter Opening Example ample has been completely updated to reflect Taco
about Smart Stores, Updated Making Responsible Bell’s recent IMC activities. The company’s Love &
Decisions Box, and New Discussion about YouTube Tacos Contest; new restaurant in Las Vegas; Happily
Programming, Robocalls, and EDLP 2.0. Chapter 13 Ever After sweepstakes; superbowl ads; collabora-
opens with a description of the potential impact of tions with Sony, the NBA, and Airbnb; and social media
smart stores on the customer journey. The Internet of tactics such as Taco Tales and Clip Show posts are all
Things, biometric scanners, virtual reality, 3D modeling discussed. New advertisements include examples
tools, and wearable technology are discussed. The from The North Face, Sony, and Humira. The IMC pro-
Making Responsible Decisions box now includes infor- gram used to promote the movie Star Wars: The Last
mation about California’s “zero-waste” laws. New infor- Jedi has been added to the Scheduling the Promotion
mation, such as banks’ attempts to change ATMs into section. In addition, the work of Advertising Age’s
smart self-service devices, has been added to the Self- Media Agency of the Year, PHD Media, is discussed.
Service section. In addition, YouTube’s live program-
ming, the FTC’s discussion regarding robocalls, and
Walmart’s development of EDLP 2.0 are discussed. Chapter 16: Updated Chapter Opening Example
about Virtual Reality and Augmented Reality in Ad-
vertising, New Advertisements and Sales Promo-
Chapter 14: Expanded Discussion about Personaliza- tion Examples, and New Discussion of the
tion; New Section Titled How Consumers Shop and Advertising Agency of the Year. The growing impact
Buy Online, including Coverage of Social Commerce; of virtual reality (VR) and augmented reality (AR) on
Broadened Implementing Multichannel Marketing advertising is discussed in the chapter opening exam-
Section; and New Figure Illustrating a Multichannel ple. New examples of VR and AR campaigns include
Consumer Journey Map. The Interactivity, Individuality, McDonald’s Happy Goggles and Lowe’s Holoroom.
and Customer Relationships in Marketspace section has Coverage includes new advertising examples from
xiv
Mercedes-Benz, Progressive, Duracell, Milk Life, Ama- enough retweets to win free chicken nuggets for a
zon, AG, and Sonos and new sales promotion exam- year. The Marketing Matters box has been updated to
ples from Nabisco and Ben & Jerry’s. The Identifying describe how vloggers are becoming the online ver-
the Target Audience section now includes Mountain sion of traditional celebrities and the Pepsi MAX
Dew and Lululemon campaigns as examples, and the “Friend Finder” YouTube video is included as an ex-
Message Content section includes a discussion of ample of Pepsi’s use of social media. The revised sec-
the increasing use of gender—neutral advertising. The tion titled Social Media Marketing Programs and
chapter also includes new discussion of Advertising Customer Engagement introduces new key terms
Age’s Agency of the Year—Anomaly. In addition, the and definitions for social media marketing programs
results of a recent Association of National Advertisers and customer engagement. The chapter ends with a
survey about the most common forms of compensa- new video case about Body Glove and the role social
tion for ad agencies are discussed. media play in the company’s marketing plan.
Chapter 17: New Body Glove Video Case, New Dis- Chapter 18: New Material on Upselling and Cross-
cussion on Internet-Connected Cars, New Section Selling, Updated Marketing Matters Box, and New
on Influencer Marketing, New Material on Live Discussion of Customer Relationship Marketing
Streaming at Facebook, and Updated Marketing Systems and Technology, including Sales Force Au-
Matters Box on Vloggers. Chapter 17 opens with a tomation, Marketing Automation, and Customer
discussion of the new level of mobile marketing en- Service and Support Automation. The Consultative
abled by Internet-connected cars. The discussion ad- Selling section now includes discussion of upselling
dresses three channels that can reach cars—social and cross-selling. The Marketing Matters box has been
media, e-mail, and messaging apps. In addition, a new updated to include the most recent emotional intelli-
section titled Emergence of Influencer Marketing ad- gence test and the current link. In addition, the discus-
dresses the growth of social media influencers such as sion of CRM systems and technology includes new
Kendall Jenner who has close to 100 million Instagram material on the consolidation of customer and sales
followers. New discussions about Facebook’s privacy information, how marketing automation emphasizes
protection, its new dating feature, and Facebook Live sophisticated analytical techniques to track the behav-
have been added to the section on Mobile Marketing ior of anyone showing an interest in a product or
at Facebook. The overview of Twitter now includes an service, and how customer service and support auto-
example of teenager Carter Wilkerson obtaining mation provides services such as “live chat.”
xv
INSTRUCTOR RESOURCES
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 com-
pany. 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.
xvi
Acknowledgments
Reviewers who were vital in the changes that were made to the 8th and previous editions
and its supplements include:
xvii
Donald F. Mulvihill George Young Jane Cromartie
Donald Fuller Gerald O. Cavallo Jane Lang
Donald G. Norris Gerard Athaide Jane McKay-Nesbitt
Donald Hoffer Gerald Waddle Janet Ciccarelli
Donald Larson Glen Brodowsky Janet Murray
Donald R. Jackson Glen Gelderloos Janice Karlen
Donald V. Harper Godwin Ariguzo Janice Taylor
Donna Wertalik Gonca Soysal Janice Williams
Doris M. Shaw Gordon Mosley Jarrett Hudnal
Dotty Harpool Greg Kitzmiller Jason Little
Douglas Kornemann Guy Lochiatto Jay Lambe
Duncan G. LaBay Harlan Wallingford Jean Murray
Eberhard Scheuling Harold Lucius Jean Romeo
Ed Gonsalves Harold S. Sekiguchi Jeanne Munger
Ed Laube Havva Jale Meric Jeff Blodgett
Ed McLaughlin Heidi Rottier Jeff Finley
Eddie V. Easley Heikki Rinne Jeffrey W. von Freymann
Edna Ragins Helen Koons Jefrey R. Woodall
Edwin Nelson Herbert A. Miller Jennie Mitchell
Elaine Notarantonio Herbert Katzenstein Jennifer Nelson
Eldon L. Little Howard Combs Jerry Peerbolte
Elena Martinez Hsin-Min Tong Jerry W. Wilson
Elizabeth R. Flynn Hugh Daubek Jianfeng Jiang
Ellen Benowitz Imran Khan Jim McHugh
Eric Ecklund Irene Dickey Jo Ann McManamy
Eric Newman Irene Lange Joan Williams
Eric Shaw Ismet Anitsal Joanne Orabone
Erin Baca Blaugrund J. Ford Laumer Jobie Devinney-Walsh
Erin Cavusgil Jacqueline Karen Joe Cronin
Erin Wilkinson Jacqueline Williams Joe Kim
Ernan Haruvy James A. Henley Jr. Joe M. Garza
Eugene Flynn James A. Muncy Joe Puzi
Farrokh Moshiri James C. Johnson Joe Ricks
Fekri Meziou James Cross Joe Stasio
Frances Depaul James Garry Smith John Benavidez
Francis DeFea James Gaubert John Brandon
Francisco Coronel James Ginther John C. Keyt
Frank A. Chiaverini James Gould John Coppett
Fred Honerkamp James H. Barnes John Cox
Fred Hurvitz James H. Donnelly John Finlayson
Fred Morgan James L. Grimm John Fitzpatrick
Fred Trawick James Lollar John Gaskins
Frederick J. Beier James Marco John H. Cunningham
Gail M. Zank James McAlexander John Kuzma
Gary Carson James Meszaros John Penrose
Gary F. McKinnon James Munch John Striebich
Gary Law James Olver Jonathan Hibbard
Gary Poorman James P. Rakowski Joseph Belonax
Gary Tucker James V. Spiers Joseph Defilippe
George Kelley James Wilkins Joseph Myslivec
George Miaoulis James Zemanek Joseph Wisenblit
xviii
Juan (Gloria) Meng Kunal Sethi Mary Schramm
Judy Bulin Lan Wu Mary Tripp
Judy Foxman Larry Borgen Matt Meuter
Judy Wagner Larry Carter Max White
Julie Haworth Larry Feick Mayukh Dass
Julie Sneath Larry Goldstein Melissa Clark
Jun Ma Larry Marks Melissa Moore
June E. Parr Larry Rottmeyer Michael Callow
Karen Becker-Olsen Laura Dwyer Michael Drafke
Karen Berger Lauren Wright Michael Fowler
Karen Flaherty Lawrence Duke Michael Mayo
Karen Gore Lawrence Marks Michael Peters
Karen LeMasters Lee Meadow Michael Pontikos
Kasia Firlej Leon Zurawicki Michael R. Luthy
Katalin Eibel-Spanyi Leonard Lindenmuth Michael Swenson
Kathleen Krentler Leslie A. Goldgehn Michelle Kunz
Kathleen Stuenkel Leta Beard Michelle Wetherbee
Kathleen Williamson Linda Anglin Mike Hagan
Kathryn Schifferle Linda M. Delene Mike Hyman
Kathy Meyer Linda Morable Mike Luckett
Katie Kemp Linda Munilla Milton Pressley
Kay Chomic Linda N. LaMarca Miriam B. Stamps
Kaylene Williams Linda Rochford Nadia J. Abgrab
Keith B. Murray Lindell Phillip Chew Nancy Bloom
Keith Jones Lisa M. Sciulli Nancy Boykin
Keith Murray Lisa Siegal Nancy Grassilli
Kellie Emrich Lisa Simon Nanda Kumar
Ken Crocker Lisa Troy Nathan Himelstein
Ken Fairweather Lisa Zingaro Neel Das
Ken Herbst Lori Feldman Nikolai Ostapenko
Ken Murdock Lowell E. Crow Norman Smothers
Ken Shaw Lynn Harris Notis Pagiavlas
Kenneth Goodenday Lynn Loudenback Ottilia Voegtli
Kenneth Jameson Marc Goldberg Pamela Grimm
Kenneth Maricle Maria McConnell Pamela Hulen
Kerri Acheson Maria Randazzo-Nardin Parimal Bhagat
Kevin Feldt Maria Sanella Pat Spirou
Kevin W. Bittle Marilyn Lavin Patricia Baconride
Kim Montney Mark Collins Patricia Bernson
Kim Richmond Mark Weber Patricia Manninen
Kim Sebastiano Mark Young Paul Dion
Kim Wong Martin Bressler Paul Dowling
Kimberly D. Smith Martin Decatur Paul Jackson
Kimberly Grantham Martin St. John Paul Londrigan
Kin Thompson Marton L. Macchiete Paul Myer
Kirti Celly Martyn Kingston Peter J. McClure
Koren Borges Marva Hunt Philip Kearney
Kristen Regine Mary Ann McGrath Philip Parron
Kristine Hovsepian Mary Beth DeConinck Philip Shum
Kristy McManus Mary Conran Phyllis Fein
Kumar Sarangee Mary Joyce Phyllis McGinnis
xix
Poh-Lin Yeoh Ruth Ann Smith Teri Root
Pola B. Gupta Ruth Rosales Terrance Kevin McNamara
Priscilla G. Aaltonen Ruth Taylor Terry Kroeten
Priscilla LaBarbera S. Choi Chan Theodore Mitchell
Priyali Rajagopal S. Tamer Cavusgil Theresa Flaherty
Rae Caloura Sally Sledge Thom J. Belich
Rajesh Iyer Samuel E. McNeely Thomas Brashear
Rajiv Kashyap Sanal Mazvancheryl Thomas L. Trittipo
Ram Kesaran Sandipan Sen Thomas M. Bertsch
Randall E. Wade Sandra Robertson Thomas Passero
Randy Stuart Sandra Smith Tim Aurand
Ravi Shanmugam Sandra Young Tim Landry
Raymond Marzilli Sang Choe Timothy Donahue
Reid Claxton Sanjay S. Mehta Timothy Reisenwitz
Renee Foster Santhi Harvey Tina L. Williams
Renee Pfeifer-Luckett Scott Cragin Tino DeMarco
Rex Moody Scott Swan Tom Castle
Rhonda Mack Scott Thorne Tom Deckelman
Rhonda Taylor Shabnam Zanjani Tom Marshall
Richard C. Leventhal Sheila Wexler Tom Rossi
Richard D. Parker Sherry Cook Tom Stevenson
Richard Hansen Siva Balasubramanian Tom Thompson
Richard Hargrove Soon Hong Min Tracy Fulce
Richard J. Lutz Srdan Zdravkovic Vahwere Kavota
Richard Lapidus Stacia Gray Van R. Wood
Richard M. Hill Stan Garfunkel Vicki Rostedt
Richard Penn Stan Scott Victoria Miller
Rick Sweeney Starr F. Schlobohm Vincent P. Taiani
Rita Dynan Stephen Calcich Vladimir Pashkevich
Robert C. Harris Stephen Garrott Vonda Powell
Robert Jones Stephen Pirog Walter Kendall
Robert Lawson Stephen W. Miller Wendy Achey
Robert Luke Steve Hertzenberg Wendy Wood
Robert Morris Steve Taylor Wesley Johnston
Robert S. Welsh Steven Engel William B. Dodds
Robert Swerdlow Steven Moff William Brown
Robert W. Ruekert Sudhir Karunakaran William D. Ash
Robert Williams Sue Lewis William Foxx
Robert Witherspoon Sue McGorry William G. Browne
Roberta Schultz Sue Umashankar William G. Mitchell
Roger McIntyre Suman Basuroy William J. Carner
Roger W. Egerton Sundaram Dorai William Motz
Ron Dougherty Sunder Narayanan William Pertula
Ron Hasty Susan Godar William R. Wynd
Ron Larson Susan Peterson William Rodgers
Ron Weston Susan Sieloff William S. Piper
Ronald A. Feinberg Susan Stanix Wilton Lelund
Ronald Michaels Susie Pryor Yi He
Rosemary Ramsey Suzanne Murray Yue Pan
Roy Adler Sylvia Keyes Yunchuan Liu
Roy Klages Tamara Masters
xx
Thanks are due to many people, including current and past students, marketing educa-
tors around the globe, university staff, business journal and periodical authors, company
representatives, and marketing professionals of every kind. Their assistance has been
essential in our efforts to continue to provide the most comprehensive, up-to-date, and
integrated teaching and learning package available. We have been fortunate to have so
many people be part of our team! In particular, however, we continue to benefit from the
insights and guidance of our long-time friend, colleague, and coauthor, William Rudelius.
His contributions to the textbook are truly timeless.
Nancy Harrower of Concordia University, St. Paul, led our efforts on the Instructor’s Man-
ual, the PowerPoint slides, the In-Class Activities, and the new Digital In-Class Activities.
In addition, she provides the content for our blog (kerinmarketing.com). Tia Quinlan-
Wilder of the University of Denver was responsible for the Test Bank and Quizzes and the
LearnSmart component of our interactive learning package. Erin Steffes of Towson
University was responsible for the Connect application exercises and the new Marketing
Analytics exercises. All of these professors are exceptional educators and we are very
fortunate that they are part of our team. Michael Vessey, our long-time collaborator who
recently passed away, also provided assistance in the preparation of materials that are
still in use.
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
Cities; Nancy Nentl of Metropolitan State University; Leslie Kendrick of Johns Hopkins
University; 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
Productions, Martin Walter of White Room Digital, Scott Bolin of Bolin Marketing, and
Andrew Schones of Pure Imagination produced the videos.
Those who provided the resources for use in the Marketing: The Core, 8th edition text-
book, 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; 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 Reh-
borg of Schwan’s Consumer Brands (Tony’s Pizza); Jennifer Olson of Experian Simmons;
xxi
Kitty Munger and Mary Wykoff of Wendy’s; Mark Heller of RetailSails; Nicky Hutcheon of
ZenithOptimedia; 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 Data and Marketing Association; and Elizabeth Clendenin of
Unilever (Caress).
We also want to thank the following people who generously provided assistance with our
Marketing: The Core, 8th 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, formerly 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 Worldwide (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); and 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 Gabriela Barcenas
for their many contributions.
Checking countless details related to layout, graphics, and photos, and managing last-
minute text changes is essential for a sound and accurate textbook. This also involves
coordinating activities of authors, designers, editors, compositors, and production spe-
cialists. Christine Vaughan, our lead content project manager, of McGraw-Hill Education’s
production staff provided the necessary oversight and attention to detail while retaining
an extraordinary level of professionalism, often under tight deadlines. We are very fortu-
nate that Christine was part of our team. 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
included Susan Gouijnstook, Meredith Fossel, Nicole Young, Kelly Pekelder, Danielle
Clement, Susan Culbertson, Matt Diamond, Carrie Burger, and many others. In addition,
we relied on David Tietz for constant attention regarding the photo elements of the text,
and Claire Hunter for management of the details of the online authoring system. Handling
the countless details of our text, supplement, and support technologies has become an
incredibly complex 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 26
Appendix A Building an Effective Marketing Plan 56
3 Understanding the Marketing Environment, Ethical Behavior,
and Social Responsibility 72
Glossary 531
Name Index 539
Company/Product Index 549
Subject Index 558
xxiii
DETAILED CONTENTS
Part 1 Initiating the Marketing Process
1 CREATING CUSTOMER RELATIONSHIPS AND
VALUE THROUGH MARKETING 2
Creating Customer Value: The Chobani Way! 2
Creating an Exceptional Product 2
Connecting with Customers 2
Chobani Today 3
Chobani, Marketing, and You 4
sion for
ndareff/Invi What Is Marketing? 4
©Diane Bo ges
P Im a
Chobani/A 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 8
Satisfying Consumer Needs 10
The Marketing Program: How Customer Relationships Are Built 11
Relationship Marketing: Easy to Understand, Hard to Do 11
The Marketing Program and Market Segments 12
3M’s Strategy and Marketing Program to Help Students
Study 13
How Marketing Became So Important 15
Evolution of the Market Orientation 15
Focusing on Customer Relationship Management 15
Ethics and Social Responsibility in Marketing: Balancing the
Interests of Different Groups 16
The Breadth and Depth of Marketing 17
Learning Objectives Review 18
Learning Review Answers 19
Focusing on Key Terms 19
Applying Marketing Knowledge 20
Building Your Marketing Plan 20
Video Case 1: Chobani®: Making Greek
Yogurt a Household Name 20
Chapter Notes 24
xxiv
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24. Ditto, ibid. pp. 201, 202.
25. Carlyle to his brother John, quoted in Mr. Froude’s Article.
26. Reminiscences, ii. 16, 11.
27. Quoted at p. 57 of Mr. William Howie Wylie’s excellent volume entitled
Carlyle: The Man and His Books.
28. Mr. Ireland’s copies of Letters, in Conway, p. 171.
29. Ibid. p. 180.
30. Quoted in Mr. Froude’s Article.
31. Quoted ibid.
32. The best account I ever had of Carlyle’s father was from an intelligent
elderly gentleman who, having retired from business, amused himself one session,
somewhere about or after 1857, by attending my class of English Literature in
University College, London. He was from Dumfriesshire originally, and had known
all the Carlyle family. He spoke more of Carlyle’s father than of Carlyle himself;
and his first words to me about him were these:—“He was a most extraordinary
man, Carlyle’s father: he said a thing, and it ran through the country.”——Carlyle
often talked to me of his father, and always in the tone of the memoir in his
Reminiscences, though I did not then know that he had any such memoir in
writing. “He was a far cleverer man, my father, than I am or ever shall be,” was one
of his phrases. He dwelt on what he thought a peculiar use by his father of the
Scottish word gar, meaning “to compel,” as when he was reluctant to do a thing
that must be done, and ended by saying he must “just gar himsel’ do it.” The
expression was not new to me, for it is to be heard farther north than Annandale;
but it seemed characteristic.—Of the strong and picturesque rhetoric of Carlyle’s
father I remember two examples, told me, I think, by Mrs. Carlyle. Once, when he
was going somewhere in a cart with his daughters on a rainy day, he was annoyed
by the drip-dripping into his neck from the whalebone point of one of the
umbrellas. “I would rather sit a’ nicht in my sark,” he said, “under a waterspout on
the tap of ——” [some mountain in the neighbourhood, the name of which I forget].
Once, when his son, of whom he had become proud, was at home in a vacation,
and a pious old neighbour-woman who had come in was exciting herself in a
theological controversy with the Divinity student on some point or other, he broke
out, “Thou auld crack-brained enthusiastic, dost thou think to argue wi’ our Tom?”
33. The substance of the paper must have been retained in Carlyle’s memory,
for he described to me once with extraordinary vividness his first sight of the Vale
of Yarrow as he struck it in one of his walks to Annandale. It was a beautiful day,
and he had come upon a height looking down upon the stony stream and its classic
valley. As he stood and gazed, with something in his mind of Wordsworth’s
salutation, “And this is Yarrow!”, up from the valley there came a peculiar,
repeated, rhythmical sound, as of clink—clink—clink, for which he could not
account. All was solitary and quiet otherwise, but still the clink—clink—clink rose
to his ear. At last, some way off, he saw a man with a cart standing in the bed of the
stream, and lifting stone after stone from it, which he threw into the cart. He could
then watch the gesture of each cast of a stone in among the rest, and note the
interval before the clink reached him.—The Yarrow songs were familiar to Carlyle;
and among the many scraps of old verse which he was fond of quoting or humming
to himself in his later years I observed this in particular:—
34. See the article Some Fifty Years Ago in Fraser’s Magazine for June 1879,
by Mr. Allingham, then Editor of the Magazine.
35. Dr. Hill Burton’s Reminiscences of Professor Wilson, published in Wilson’s
Life by Mrs. Gordon, ii. 25.
36. Peter Nimmo: A Rhapsody is duly registered among Carlyle’s anonymous
contributions to Fraser’s Magazine in Mr. Richard Herne Shepherd’s Bibliography
of Carlyle (1881). Should any one entertain doubts, even after such excellent
authority, a glance at the prose preface to the thing, signed O. Y. (“Oliver Yorke”),
in Fraser for February 1831, will remove them. After specifying Edinburgh
University as Peter’s local habitat, and estimating the enormously diffused
celebrity he has attained by his long persistence there, the preface proceeds: “The
world itself is interested in these matters: singular men are at all times worthy of
being described and sung; nay, strictly considered, there is nothing else worthy....
The Napoleon, the Nimmo, are mystic windows through which we glance deeper
into the hidden ways of Nature, and discern under a clearer figure the working of
that inscrutable Spirit of the Time, and Spirit of Time itself, who is by some
thought to be the Devil.” There may remain some little question as to the date of
the Rhapsody. That it was written by Carlyle in Annandale seems proved by the
phrase “in heaths and splashy weather” in the prologue. The date may have been
any time before 1831; but before 1821 seems the most likely.
37. Quoted by Mr. Froude in his Nineteenth Century article.
38. Mr. Ireland’s copies of early Carlyle Letters, in Mr. Conway’s Memoir, p.
185.
39. Ibid.
40. Mr. Ireland’s copies of Carlyle’s Letters, in Conway, pp. 192, 193.
41. Reminiscences, i. 208, 209.
42. Carlyle’s habit of smoking had begun in his boyhood, probably at
Ecclefechan before he came to Edinburgh University. His father, he told me, was a
moderate smoker, confining himself to about an ounce of tobacco a week, and so
thoughtfully as always to have a pipe ready for a friend out of that allowance.
Carlyle’s allowance, in his mature life, though he was very regular in his times and
seasons, must have been at least six times as much. Once, when the canister of
“free-smoking York River” on his mantelpiece was nearly empty, he told me not to
mind that, as he had “about half-a-stone more of the same upstairs.”—“Another
tobacco anecdote of Carlyle, which I had from the late G. H. Lewes, may be worth a
place here. One afternoon, when his own stock of “free-smoking York River” had
come to an end, and when he had set out to walk with a friend (Lewes himself, if I
recollect rightly), he stopped at a small tobacco-shop in Chelsea, facing the
Thames, and went in to procure some temporary supply. The friend went in with
him, and heard his dialogue with the shopkeeper. York River, having been asked
for, was duly produced; but, as it was not of the right sort, Carlyle, while making a
small purchase, informed the shopkeeper most particularly what the right sort was,
what was its name, and at what wholesale place in the city it might be ordered. “O,
we find that this suits our customers very well,” said the man. “That may be, Sir,”
said Carlyle; “but you will find it best in the long run always to deal in the
veracities.” The man’s impression must have been that the veracities were some
peculiar curly species of tobacco, hitherto unknown to him.
43. There does not seem to have been much direct intercourse between Wilson
and Carlyle after the meeting mentioned, though there were cordial exchanges of
regards between them, and some incidental compliments to Carlyle in Blackwood.
44. As the dates in this sentence will suggest, the last few paragraphs,
narrating the story of Goethe’s frustrated attempt to bring Scott and Carlyle
together, did not appear in the paper as originally published in Macmillan, but are
an insertion into the present reprint made possible by the information furnished
by the two recent publications named. I did, indeed, give an outline sketch of some
such affair as it had hung in my memory from talk either with Carlyle himself or
with his brother Dr. John Carlyle. But the sketch was hazy, and I now find that it
was inaccurate in some points.—Scott and Carlyle, I may here add, were once
together in the same room in Edinburgh in a semi-private way. The fact has been
communicated to me by Mr. David Douglas, the editor of Scott’s Journal, who had
it from Dr. David Aitken, already mentioned in this paper as an intimate friend of
Carlyle’s in the Comely Bank days. The scene of the meeting was the shop of Mr.
Tait, the publisher, then in an upper floor in Hanover Street. Carlyle and Mr.
Aitken, who had been walking in Princes Street, turned aside for a call at Mr.
Tait’s. While they were there and talking with Mr. Tait, Scott came in,—well known
to both by sight. “Mr. Tait, have you got a copy of Horace at hand? I want to make a
quotation,” were Scott’s words on entering. The book having been brought,—a
handsome quarto, Dr. Aitken remembered,—Scott sat down with it in his lap, and
began to turn over the leaves, Carlyle and Mr. Aitken standing a little way off
meanwhile, and Carlyle continuing his talk with Mr. Tait. Soon, as if attracted by
the voice or by something said, Scott began to look up, the volume still resting in
his lap. Several times he raised his eyes in the same fashion from the book to the
two strangers, or to the one who was talking. The expression, as Dr. Aitken
interpreted it in recollection, was as if he were saying to himself: “He is a
kenspeckle-looking chiel that; I wonder who he is.”—The date of this encounter I
do not know. If it was after the affair of the Goethe medals and the unanswered
letters (and that is not impossible if we suppose some occasion for a brief visit from
Craigenputtock to Edinburgh in 1829 or 1830), one can imagine with what
studious aloofness from his great senior Carlyle would comport himself in the
accidental interview.
45. From the Correspondence between Goethe and Carlyle, edited by Mr.
Charles Eliot Norton, we learn that Carlyle had, on the same day on which he wrote
this letter to Procter, written to Goethe soliciting a testimonial from him for the
same occasion. The testimonial was sent from Weimar, but not till the 14th of
March; and it came too late to be of use. A copy of the original German, with an
English translation, is printed in Mr. Norton’s volume. It is a document of five
pages, and perhaps the most unbusiness-like thing ever sent in the shape of a
testimonial on behalf of a candidate for a Scottish Professorship. It begins thus:
—“True conviction springs from the heart; the Soul, the real seat of the Conscience,
judges concerning what may be permitted and what may not be permitted far more
surely than the Understanding, which will see into and determine many things
without hitting the right mark. A well-disposed and self-observant man, wishing to
respect himself and to live at peace with hims}elf, and yet conscious of many an
imperfection perplexing his inner life, and grieved by many a fault compromising
him in the eyes of others, whereby he finds himself disturbed and opposed from
within and from without, will seek by all methods to free himself from such
impediments.” Then follow two paragraphs of continued remarks on the
intellectual or literary life in general; after which the testimonial becomes more
specific, thus:—“It may now without arrogance be asserted that German Literature
has effected much for humanity in this respect,—that a moral-psychological
tendency pervades it, introducing not ascetic timidity, but free culture in
accordance with nature, and a cheerful obedience to law; and therefore I have
observed with pleasure Mr. Carlyle’s admirably profound study of this Literature,
and I have noticed with sympathy how he has not only been able to discover the
beautiful and human, the good and great, in us, but has also contributed what was
his own, and has endowed us with the treasures of his genius. It must be granted
that he has a clear judgment as to our Æsthetic and Ethic writers, and, at the same
time, his own way of looking at them, which proves that he rests on an original
foundation and has the power to develop in himself the essentials of what is good
and beautiful. In this sense, I may well regard him as a man who would fill a Chair
of Moral Philosophy with single-heartedness, with purity, effect, and influence,
enlightening the youth entrusted to him as to their real duties, in accordance with
his disciplined thought, his natural gifts, and his acquired knowledge, aiming at
leading and urging their minds to moral activity, and thereby steadily guiding them
towards a religious completeness.”—When one imagines the probable effects on
the minds of the St. Andrews Principal and Professors of 1828 of such a testimonial
from the German sage, known to them so dimly, and perhaps in ways that made
them suspicious of him, one’s impression is that, if they had been thinking of
appointing Carlyle, the presentation of this testimonial would have been likely to
stop them. Never having been presented, it can have done no harm.
46. Review, in The Scots Observer (now The National Observer), 15th
December 1888, of “Letters from and to Charles Kirkpatrick Sharpe, Esq. Edited
by Alexander Allardyce. With a Memoir by the Rev. W. K. R. Bedford. In two
volumes. Edinburgh: William Blackwood and Sons.”
47. Lockhart, in his quotation from the Diary as here given, omitted a line or
two. The complete text may be now read in Mr. Douglas’s edition of the entire
Diary in 1890.
48. This is the “General Sharpe” from whom Carlyle’s father had a lease of his
farm of Mainhill from 1815 onwards, and from whom Carlyle himself rented the
house and grounds of Hoddam Hill for his one year’s experiment of farming-life in
1825–26. See the Reminiscences for the story of Carlyle’s quarrel, and then his
father’s also, with their landlord, caused mainly by his “arbitrary high-handed
temper, used to a rather prostrate style of obedience, and not finding it here.” Both
father and son gave up their leases in 1826, the father protesting “We can live
without Sharpe and the whole Sharpe creation,” and saying he would “rather go to
Jerusalem seeking farms, and die without finding one,” than remain under such a
landlord.
49. From The Scotsman of 18th November 1882; where it appeared as a
review of “The Book-Hunter, etc. By John Hill Burton, D.C.L., LL.D., Author of A
History of Scotland, The Scot Abroad, The Reign of Queen Anne, etc. A New
Edition: with a Memoir of the Author. William Blackwood & Sons, Edinburgh and
London.”
50. From Macmillan’s Magazine for February 1883. The main portion of the
paper was delivered as a lecture in the University of Edinburgh on Tuesday,
October 24, 1882; and there are reasons for retaining the familiarity of the lecture
form in the reprint.
51. From The Scotsman of 8th and 9th November 1889. This paper is
purposely placed last in the volume, as containing necessarily a recapitulation of
portions of the matter of some of the preceding.
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