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2 02 0 E D I T I O N | P R I D E & F E R R E L L
MARKETING
WILLIAM M. PRIDE
Texas A & M University
O.C. FERRELL
Auburn University
Australia • Brazil • Mexico • Singapore • United Kingdom • United States
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Printed in the United States of America

Print Number: 01 Print Year: 2019
To Nancy, Allen, Carmen, Gracie, Mike, Ashley,
Charlie, J.R., and Anderson Pride
To James Collins Ferrell and

George Collins Ferrell
Brief Contents
PART 1: Marketing Strategy and Customer Relationships 1

1. An Overview of Strategic Marketing 2
2. Planning, Implementing, and Evaluating Marketing Strategies 28
PART 2: Environmental Forces and Social and Ethical Responsibilities 57

3. The Marketing Environment 58
4. Social Responsibility and Ethics in Marketing 90
PART 3: Marketing Research and Target Market Analysis 121

5. Marketing Research and Information Systems 122
6. Target Markets: Segmentation and Evaluation 154
PART 4: Buying Behavior, Global Marketing, and Digital Marketing 183

7. Consumer Buying Behavior 184
8. Business Markets and Buying Behavior 214
9. Reaching Global Markets 240
10. Digital Marketing and Social Networking 274
PART 5: Product Decisions 305

11. Product Concepts, Branding, and Packaging 306
12. Developing and Managing Products 340
13. Services Marketing 366
PART 6: Distribution Decisions 393

14. Marketing Channels and Supply Chain Management 394
15. Retailing, Direct Marketing, and Wholesaling 432
PART 7: Promotion Decisions 465

16. Integrated Marketing Communications 466
17. Advertising and Public Relations 494
18. Personal Selling and Sales Promotion 524
PART 8: Pricing Decisions 559

19. Pricing Concepts 560
20. Setting Prices 588
Glossary 614
Endnotes 627
Feature Notes 670
Name Index 677
Organization Index 678
Subject Index 681
AVAILABLE ONLY ONLINE:

Appendix A: Financial Analysis in Marketing A-1
Appendix B: Sample Marketing Plan B-1
Appendix C: Careers in Marketing C-1
Contents
vi Preface
PART 1 Marketing Strategy and Customer Relationships 1
Chapter 1: An Overview of Strategic Marketing 2 Developing Your Marketing Plan 25

Video Case 1.1 Apple Inc.: The Future of Retailing, Education,
Marketing Insights: Amazon Sells Everything from A to Z 3 and Entertainment 25
1-1 Defining Marketing 4 Case 1.2 TOMS: Purchase One and Give One 26
1-1a Marketing Focuses on Customers 5
1-2 Marketing Deals with Products, Distribution, Chapter 2: Planning, Implementing, and
Promotion, and Price 6
1-2a The Product Variable 7
Evaluating Marketing Strategies 28
Marketing Insights: Tesla’s Electric-Driven Strategy 29
1-2b The Distribution Variable 8
1-2c The Promotion Variable 9 2-1 The Strategic Planning Process 30
1-2d The Price Variable 9 2-2 Establishing Mission, Goals, and Strategies 31
2-2a Developing Organizational Mission and Goals 31
1-3 Marketing Creates Value 9
2-2b Developing Corporate and Business-Unit
1-3a Marketing Builds Relationships with Customers
Strategies 32
and Other Stakeholders 11
Creative Marketing: Tiffany Rings Up More through Mobile
1-4 Marketing Occurs in a Dynamic Environment 12 Marketing 32
1-5 Understanding the Marketing Concept 13 2-3 Assessing Organizational Resources and
Disruptive Marketing: Zappos’ Customer Service Strategy Opportunities 37
Is a Perfect Fit 15 Disruptive Marketing: Amazon’s Alexa Brings More Retailing
1-5a Evolution of the Marketing Concept 15 Disruptions 38
1-5b Implementing the Marketing Concept 16 2-3a SWOT Analysis 38
1-6 Customer Relationship Management 17 2-3b First-Mover and Late-Mover Advantage 39
1-6a Relationship Marketing 17 2-4 Developing Marketing Objectives and Marketing
1-6b Customer Lifetime Value 18 Strategies 40
1-7 The Importance of Marketing 2-4a Selecting the Target Market 41
in Our Global Economy 19 2-4b Creating the Marketing Mixes 42
1-7a Marketing Costs Consume a Sizable Portion 2-5 Managing Marketing Implementation 43
of Buyers’ Dollars 19 2-5a Organizing the Marketing Unit 43
1-7b Marketing Is Used in Nonprofit Organizations 19 2-5b Coordinating and Communicating 44
1-7c Marketing Is Important to Businesses 2-5c Establishing a Timetable for Implementation 45
and the Economy 20 2-6 Evaluating Marketing Strategies 45
1-7d Marketing Fuels Our Global Economy 20 2-6a Establishing Performance Standards 45
1-7e Marketing Knowledge Enhances Consumer 2-6b Analyzing Actual Performance 45
Awareness 20 2-6c Comparing Actual Performance with Performance
1-7f Marketing Connects People through Technology 21 Standards and Making Changes If Needed 48
1-7g Socially Responsible Marketing: Promoting 2-7 Creating the Marketing Plan 48
the Welfare of Customers and Stakeholders 21 Summary 50
1-7h Marketing Offers Many Exciting Career Prospects 22 Important Terms 51
Entrepreneurship in Marketing: Blue Bottle Coffee: Not Your Discussion and Review Questions 52
Typical Daily Grind 22 Developing Your Marketing Plan 52
Summary 23 Video Case 2.1 Inside Tesla’s Strategy for Growth 52
Important Terms 24 Case 2.2 Crayola’s Colorful Marketing Strategy for the Digital Age 53
Discussion and Review Questions 24 Strategic Case 1 Amazonization of Whole Foods 55
vi
Contents vii
PART 2 Environmental Forces and Social and Ethical Responsibilities 57
Chapter 3: The Marketing Environment 58 Developing Your Marketing Plan 86

Video Case 3.1 Apple vs. Samsung: Gloves Are Off 86
Marketing Insights: Chipotle Defends “Food with Integrity” Promise 59 Case 3.2 Dollar General Uses Buying Power to
3-1 Examining and Responding to the Marketing Target Markets 87
Environment 60
3-1a Environmental Scanning and Analysis 60 Chapter 4: Social Responsibility and Ethics
Integrity in Marketing: Chick-fil-A Rules the Roost 61 in Marketing 90
3-1b Responding to Environmental Forces 61
Marketing Insights: Volkswagen Defeated by its Own Device 91
3-2 Competitive Forces 63
4-1 The Nature of Social Responsibility 92
3-2a Types of Competitors 63
4-1a The Dimensions of Social Responsibility 93
3-2b Types of Competitive Structures 64
4-1b Social Responsibility Issues 96
3-2c Monitoring Competition 65
Entrepreneurship in Marketing: No Harm, No Foul:
3-3 Economic Forces 66 Harmless Harvest Connects with Stakeholders 99
3-3a Economic Conditions 66 4-2 Marketing Ethics 100
3-3b Buying Power 67 4-2a Ethical Issues in Marketing 101
3-3c Willingness to Spend 68 4-2b Ethical Dimensions of Managing Supply Chain
3-4 Political Forces 69 Relationships 103
3-5 Legal and Regulatory Forces 70 4-3 The Nature of Marketing Ethics 104
3-5a Procompetitive Legislation 70 4-3a Individual Factors 105
3-5b Consumer Protection Legislation 73 4-3b Organizational Relationships 105
3-5c Encouraging Compliance with Laws and Regulations 73 4-3c Opportunity 106
3-5d Regulatory Agencies 74 Integrity in Marketing: A Real Pain: McKesson Corporation 107
3-5e Self-Regulatory Forces 76 4-4 Improving Marketing Ethics 107
3-6 Technological Forces 77 4-5 Incorporating Social Responsibility and Ethics
3-6a Impact of Technology 78 into Strategic Planning 111
3-6b Adoption and Use of Technology 80 4-5a Social Responsibility and Ethics Improve Marketing
3-7 Sociocultural Forces 80 Performance 112
3-7a Demographic and Diversity Characteristics 80 Summary 114
Disruptive Marketing: De Vegetarische Slager Disrupts the Important Terms 115
Global Meat Market 81 Discussion and Review Questions 115
3-7b Cultural Values 82 Developing Your Marketing Plan 116
3-7c Consumerism 83 Video Case 4.1 Cruising to Success: The Tale of New Belgium
Summary 84 Brewing 116
Important Terms 85 Case 4.2 Sseko Helps Women Get a Step Ahead 117
Discussion and Review Questions 85 Strategic Case 2 Not So Well: The Case of Wells Fargo 118
PART 3 Marketing Research and Target Market Analysis 121
Chapter 5: Marketing Research and I nformation 5-3c Collecting Data 130

5-3d Interpreting Research Findings 139
Systems 122 5-3e Reporting Research Findings 140
Marketing Insights: Food for Thought: General Mills Embraces 5-4 Using Technology to Improve Marketing Information
Marketing Research 123 Gathering and Analysis 141
5-1 The Importance of Marketing Research 124 5-4a Marketing Information Systems 141
5-2 Types of Research 125 5-4b Databases 142
5-2a Exploratory Research 126 5-4c Big Data 143
5-2b Conclusive Research 127 5-4d Marketing Analytics 144
5-3 The Marketing Research Process 128 Disruptive Marketing: Making Meaning Out of Big Data: Marketing
5-3a Locating and Defining Problems or Research Analytics 146
Issues 128 5-4e Marketing Decision Support
5-3b Designing the Research Project 129 Systems 146
viii Contents
5-5 Issues in Marketing Research 146 6-4a Variables for Segmenting Consumer Markets 162
5-5a The Importance of Ethical Marketing Research 146 6-4b Variables for Segmenting Business Markets 168
5-5b International Issues in Marketing Research 147 Entrepreneurship in Marketing: Halo Top Ice Cream Tops Pint
Creative Marketing: Marketing Research Reveals Marketing Sales Charts 168
Opportunities in the Baby Boomer Generation 148 6-5 Step 3: Develop Market Segment Profiles 170
Summary 149 Integrity in Marketing: Flowers for Dreams Blossoms by Giving
Important Terms 150 Back 170
Discussion and Review Questions 151 6-6 Step 4: Evaluate Relevant Market Segments 171
Developing Your Marketing Plan 151 6-6a Sales Estimates 171
Video Case 5.1 Picture Perfect: How Instagram Uses Big Data 151 6-6b Competitive Assessment 171
Case 5.2 No Mystery Here: Why Market Force Is a Leading Market 6-6c Cost Estimates 172
Research Firm 152
6-7 Step 5: Select Specific Target Markets 172
6-8 Developing Sales Forecasts 173
Chapter 6: Target Markets: Segmentation 6-8a Executive Judgment 173
and Evaluation 154 6-8b Surveys 173
Marketing Insights: L’Oréal Targets More Than Just Pretty Faces 155 6-8c Time Series Analysis 174
6-1 What Are Markets? 156 6-8d Regression Analysis 175
6-2 Target Market Selection Process 157 6-8e Market Tests 175
6-3 Step 1: Identify the Appropriate Targeting Strategy 158 6-8f Using Multiple Forecasting Methods 176
Summary 176
6-3a Undifferentiated Targeting Strategy 158
Important Terms 177
6-3b Concentrated Targeting Strategy through Market Discussion and Review Questions 178
Segmentation 158 Developing Your Marketing Plan 178
6-3c Differentiated Targeting Strategy through Market Video Case 6.1 How Nike Uses Targeting in the High-Stakes Race
Segmentation 161 for Sales 178
6-4 Step 2: Determine which Case 6.2 Looking for a BFF? Umpqua Bank Can Help! 180
Segmentation Variables to Use 161 Strategic Case 3 Uber Attempts to Make a Right Turn 181
PART 4 Buying Behavior, Global Marketing, and Digital Marketing 183
Chapter 7: Consumer Buying Behavior 184 7-5 Social Influences on the Buying Decision Process 200
7-5a Roles 201
Marketing Insights: Dunkin’ Donuts Brews Up New Strategy to
Reflect Changes in Consumer Lifestyles and Preferences 185 7-5b Family Influences 201
7-1 Consumer Buying Decision Process 186 7-5c Reference Groups 202
7-1a Problem Recognition 187 7-5d Digital Influences 203
7-1b Information Search 187 7-5e Opinion Leaders 203
Creative Marketing: Picture This: Target and Pinterest Team
7-1c Evaluation of Alternatives 188
Up for Visual Search 204
7-1d Purchase 189
7-5f Social Classes 204
7-1e Postpurchase Evaluation 189
7-5g Culture and Subcultures 205
7-2 Types of Consumer Decision Making and Level
7-6 Consumer Misbehavior 208
of Involvement 190 Summary 209
7-2a Types of Consumer Decision Making 190 Important Terms 210
7-2b Consumer Level of Involvement 191 Discussion and Review Questions 210
7-3 Situational Influences on the Buying Decision Developing Your Marketing Plan 211
Process 192 Video Case 7.1 How Ford Drives Future Innovation 211
7-4 Psychological Influences on the Buying Decision Case 7.2 Campbell’s Soup Company Cooks Up
Process 194 New Marketing 212
7-4a Perception 194
Integrity in Marketing: Unilever Grows “Sustainable Living” Brands 195
7-4b Motivation 196 Chapter 8: Business Markets and Buying
7-4c Learning 197 Behavior 214
7-4d Attitudes 198 Marketing Insights: Google Targets AI at Business Customers 215
7-4e Personality and Self-Concept 199 8-1 Business Markets 216
7-4f Lifestyles 200 8-1a Producer Markets 216
Contents ix
8-1b Reseller Markets 217 9-4b Trading Companies 260

8-1c Government Markets 218 9-4c Licensing and Franchising 261
8-1d Institutional Markets 219 9-4d Contract Manufacturing 261
8-2 Using the North American Industry Classification 9-4e Joint Ventures 262
System to Identify and Assess Business 9-4f Direct Ownership 263
Customers 219 9-5 Global Organizational Structures 264
8-3 Dimensions of Marketing to Business Customers 220 9-5a Export Departments 264
8-3a Characteristics of Transactions with Business 9-5b International Divisions 265
Customers 221 9-5c Internationally Integrated Structures 266
Disruptive Marketing: Will Blockchain Disrupt the 9-6 Customization Versus Globalization of International
Shipping Industry? 222 Marketing Mixes 267
8-3b Attributes of Business Customers 222 Creative Marketing: Airbnb: Flying High Globally 269
8-3c Primary Concerns of Business Customers 223 Summary 269
8-3d Methods of Business Buying 224 Important Terms 270
8-3e Types of Business Purchases 225 Discussion and Review Questions 270
8-3f Demand for Business Products 226 Developing Your Marketing Plan 271
8-4 Business Buying Decisions 227 Video Case 9.1 Alibaba and Global E-Commerce: Should Amazon
Be Afraid? 271
8-4a The Buying Center 228
Case 9.2 Netflix Stream Becomes a Global River 272
8-4b Stages of the Business Buying Decision Process 229
8-4c Influences on the Business Buying Decision Chapter 10: Digital Marketing and Social
Process 230
Entrepreneurship in Marketing: Meet Brittni Brown of the Bee Networking 274
Agency 231 Marketing Insights: Best Buy Uses Digital Marketing to Live
8-5 Reliance on the Internet and Other Technology 232 Up to Its Name 275
Summary 234 10-1 Defining Digital Marketing 276
Important Terms 235 10-2 Growth and Benefits of Digital Marketing 277
Discussion and Review Questions 235 10-3 Types of Consumer-Generated Marketing
Developing your Marketing Plan 236 and Digital Media 278
Video Case 8.1 Will Apple Pay Pay Off for Retailers? 236 10-3a Social Media Marketing 279
Case 8.2 Salesforce.com Uses Dreamforce to Reach Business
10-3b Blogs and Wikis 282
Customers 237
Integrity in Marketing: Social Media Advertisers Fight
Fake News 283
Chapter 9: Reaching Global Markets 240 10-3c Media-Sharing Sites 284
Marketing Insights: Emirates Airline Soars Beyond the 10-3d Mobile Marketing 286
Turbulence 241 10-3e Applications and Widgets 288
9-1 The Nature of Global Marketing Strategy 242 10-4 Monitoring Digital Media Behaviors
9-2 Environmental Forces in Global Markets 243 of Consumers 289
9-2a Sociocultural Forces 243 10-4a Online Monitoring and Analytics 289
Integrity in Marketing: Going Green: China Addresses Greenhouse 10-5 E-Marketing Strategy 291
Gas Emissions 244 10-5a Product Considerations 292
9-2b Economic Forces 245 10-5b Distribution Considerations 292
9-2c Political, Legal, and Regulatory Forces 247 10-5c Promotion Considerations 293
9-2d Ethical and Social Responsibility Forces 250 Creative Marketing: Beauty Subscription Service ipsy Is
9-2e Competitive Forces 252 Sitting Pretty 294
9-2f Technological Forces 252 10-5d Pricing Considerations 294
9-3 Regional Trade Alliances, Markets, and 10-6 Ethical and Legal Issues 295
Agreements 253 10-6a Privacy 295
9-3a The North American Free Trade Agreement 10-6b Online Fraud 296
(NAFTA) 253 10-6c Intellectual Property 297
9-3b The European Union (EU) 254 Summary 298
Important Terms 299
9-3c The Southern Common Market (MERCOSUR) 256
Discussion and Review Questions 300
9-3d The Asia-Pacific Economic Cooperation (APEC) 256
Developing Your Marketing Plan 300
9-3e Association of Southeast Asian Nations (ASEAN) 257 Video Case 10.1 Zappos Runs with Social Media 300
9-3f The World Trade Organization (WTO) 258 Case 10.2 Dollar Shave Club Faces Sharp Competition 301
9-4 Modes of Entry into International Markets 258 Strategic Case 4 Need a Place to Stay? InterContinental Hotels
9-4a Importing and Exporting 259 Group Has One Just for You 302
x Contents
PART 5 Product Decisions 305
Chapter 11: Product Concepts, Branding, 12-2 Developing New Products 344
12-2a Idea Generation 346
and Packaging 306 12-2b Screening 347
Marketing Insights: Basics, Essentials, and Elements Are All Parts 12-2c Concept Testing 347
of Amazon’s Private Brands 307
12-2d Business Analysis 347
11-1 What Is a Product? 308 Creative Marketing: Consumers Help Crowdsource Beauty
11-2 Classifying Products 309 at Volition 348
11-2a Consumer Products 309 12-2e Product Development 348
11-2b Business Products 312 12-2f Test Marketing 350
11-3 Product Line and Product Mix 314 12-2g Commercialization 351
11-4 Product Life Cycles and Marketing Strategies 315 12-3 Product Differentiation Through Quality, Design,
11-4a Introduction 315 and Support Services 353
11-4b Growth 316 12-3a Product Quality 353
11-4c Maturity 317 12-3b Product Design and Features 354
11-4d Decline 318 12-3c Product Support Services 354
11-5 Product Adoption Process 319 12-4 Product Positioning and Repositioning 355
11-6 Branding 320 12-4a Perceptual Mapping 355
11-6a Value of Branding 320 12-4b Bases for Positioning 356
11-6b Brand Equity 321 12-4c Repositioning 357
11-6c Types of Brands 323 Integrity in Marketing: Inside the Positioning of Starbucks
11-6d Selecting a Brand Name 324 Coffee 357
11-6e Protecting a Brand 324 12-5 Product Deletion 358
Creative Marketing: What Does Coach, Kate Spade, and Stuart 12-6 Organizing to Develop and Manage Products 359
Weitzman Have in Common? Tapestry! 325 Summary 360
11-6f Branding Strategies 326 Important Terms 361
11-6g Brand Extensions 326 Discussion and Review Questions 361
11-6h Co-Branding 328 Developing Your Marketing Plan 361
11-6i Brand Licensing 328 Video Case 12.1 Cutting Edge Quality: Cutco “Knives
Integrity in Marketing: John Deere Brand Drives Eco Rigs Toys 328 for Life” 362
11-7 Packaging 329 Case 12.2 Quesalupa! Crunchy and All that Cheese
11-7a Packaging Functions 329 from Taco Bell 363
11-7b Major Packaging Considerations 329
11-7c Packaging and Marketing Strategy 331 Chapter 13: Services Marketing 366
11-8 Labeling 333
Summary 334 Marketing Insights: Spotify Spots Product Opportunities Beyond
Important Terms 335 Streaming Services 367
Discussion and Review Questions 336 13-1 The Growth and Importance of Services 368
Developing Your Marketing Plan 336 13-2 Characteristics of Services 369
Video case 11.1 Impossible Foods Cooks Up Meatless Burgers 13-2a Intangibility 369
in Silicon Valley 337 13-2b Inseparability of Production and Consumption 370
Case 11.2 Hilton Worldwide Expands to New Brands 13-2c Perishability 371
and New Markets 338 13-2d Heterogeneity 371
13-2e Client-Based Relationships 372
13-2f Customer Contact 372
Chapter 12: Developing and Managing Disruptive Marketing: Can’t Get It Together? IKEA’s
Products 340 TaskRabbit Can 373
Marketing Insights: Coca-Cola: A “Total Beverage Company” 341 13-3 Developing and Managing Marketing Mixes for
12-1 Managing Existing Products 342 Services 373
12-1a Line Extensions 342 13-3a Development of Services 373
12-1b Product Modifications 343 13-3b Distribution of Services 375
Contents xi
13-3c Promotion of Services 376 13-5c Developing Nonprofit Marketing

13-3d Pricing of Services 378 Strategies 385
13-4 Service Quality 379 Summary 387
13-4a Customer Evaluation of Service Quality 379 Important Terms 388
13-4b Delivering Exceptional Service Quality 381 Discussion and Review Questions 388
13-4c Analysis of Customer Expectations 381 Developing Your Marketing Plan 389
13-5 Nonprofit Marketing 383 Video Case 13.1 Mike Boyle’s Services Are Not for Everyone 389
13-5a How Is Nonprofit Marketing Different? 384 Case 13.2 FedEx Courts Customers with Convenience, Not Just
13-5b Nonprofit Marketing Objectives 384 Speed 390
Integrity in Marketing: Nonprofits Help Nonprofits Plan Marketing 385 Strategic Case 5 Nike Runs the Innovation Race Every Day 391
PART 6 Distribution Decisions 393
Chapter 14: Marketing Channels and Supply Video Case 14.1 The Cocoa Exchange’s Sweet Spot in the
Supply Chain 428
Chain Management 394 Case 14.2 ADM: The Link from Farm to Table 430
Marketing Insights: Championship Gear Is a Supply Chain
Touchdown 395 Chapter 15: Retailing, Direct Marketing,
14-1 Foundations of the Supply Chain 396 and Wholesaling 432
14-2 The Role of Marketing Channels in Supply Marketing Insights: Like Treasure Hunts? TJX Is Looking for
Chains 399 You 433
14-2a The Significance of Marketing Channels 400 15-1 Retailing 434
14-2b Types of Marketing Channels 402 15-2 Online Retailing 435
Entrepreneurship in Marketing: Haney’s Appledale Farm Taps Entrepreneurship in Marketing: Maiden Home Furniture
into Experiential Logistics 405 Focuses on Quality, Customer Education, and Transparency 436
14-2c Selecting Marketing Channels 407 15-3 Brick-and-Mortar Retailers 436
Integrity in Marketing: REI: A Consumer-Owned Retailer 409 15-3a General-Merchandise Retailers 437
14-3 Intensity of Market Coverage 409 15-3b Specialty Retailers 440
14-3a Intensive Distribution 409 15-4 Strategic Issues in Retailing 442
14-3b Selective Distribution 410 15-4a Location of Retail Stores 442
14-3c Exclusive Distribution 410 Creative Marketing: Pop-Up Stores: Now You See Them,
Now You Don’t 443
14-4 Strategic Issues in Marketing Channels 411
15-4b Franchising 445
14-4a Competitive Priorities in Marketing Channels 411
15-4c Retail Technologies 447
14-4b Channel Leadership, Cooperation, and
15-4d Retail Positioning 447
Conflict 412 15-4e Store Image 448
14-4c Channel Integration 415 15-4f Category Management 449
14-5 Logistics in Supply Chain Management 416 15-5 Direct Marketing, Direct Selling, and Vending 449
14-5a Order Processing 418 15-5a Direct Marketing 449
14-5b Inventory Management 418 15-5b Direct Selling 451
14-5c Materials Handling 419 15-5c Vending 452
14-5d Warehousing 420 15-6 Wholesaling 452
14-5e Transportation 421 15-6a Services Provided by Wholesalers 453
14-6 Legal Issues in Channel Management 424 15-6b Types of Wholesalers 454
14-6a Restricted Sales Territories 424 Summary 458
Important Terms 460
14-6b Tying Agreements 425
14-6c Exclusive Dealing 425 Developing Your Marketing Plan 460
14-6d Refusal to Deal 425 Video Case 15.1 Rebecca Minkoff’s Cutting-Edge Retail
Summary 425 Technology 461
Important Terms 427 Case 15.2 Lowe’s Taps Technology for Retailing Edge 462
Discussion and Review Questions 427 Strategic Case 6 Gelson’s Markets—Where Superior Quality
Developing Your Marketing Plan 428 Meets Convenience 463
xii Contents
PART 7 Promotion Decisions 465
Chapter 16: Integrated Marketing Chapter 17: Advertising and Public

Communications 466 Relations 494
Marketing Insights: Toyota Camry Finds the Key to Integrated Marketing Insights: Spokescharacters Give Brands Big
Marketing 467 Personality 495
16-1 The Nature of Integrated Marketing 17-1 The Nature and Types of Advertising 496
Communications 468 17-2 Developing an Advertising Campaign 499
16-2 Promotion and the Communication Process 469 17-2a Identifying and Analyzing the Target Audience 499
16-3 The Role and Objectives of Promotion 471 17-2b Defining the Advertising Objectives 500
16-3a Create Awareness 472 Disruptive Marketing: The Search Is On: Google AdWords
16-3b Stimulate Demand 473 Dominates Search Advertising 501
Integrity in Marketing: The Rainforest Alliance Leaps Forward 17-2c Creating the Advertising Platform 501
with Integrated Marketing 474 17-2d Determining the Advertising Appropriation 502
16-3c Encourage Product Trial 474 17-2e Developing the Media Plan 503
16-3d Identify Prospects 474 17-2f Creating the Advertising Message 506
16-3e Retain Loyal Customers 475 17-2g Copy 509
16-3f Facilitate Reseller Support 475 17-2h Artwork 509
16-3g Combat Competitive Promotional Efforts 475 17-2i Executing the Campaign 510
16-3h Reduce Sales Fluctuations 476 17-2j Evaluating Advertising Effectiveness 510
16-4 The Promotion Mix 476 17-3 Who Develops the Advertising Campaign? 512
16-4a Advertising 476 17-4 Public Relations 513
Entrepreneuriship in Marketing: Louisville Slugger Hits the Ball 17-5 Public Relations Tools 514
Out of the Park 478 Integrity in Marketing: Patagonia Unzips Its Advertising Strategy:
16-4b Personal Selling 478 Don’t Buy This Jacket 514
16-4c Public Relations 479 17-6 Evaluating Public Relations Effectiveness 516
16-4d Sales Promotion 480 17-6a Dealing with Unfavorable Public Relations 516
16-5 Selecting Promotion Mix Factors 481 Summary 517
Important Terms 519
16-5a Promotional Resources, Objectives,
and Policies 481
16-5b Characteristics of the Target Market 482 Video Case 17.1 Scripps Networks Interactive: An Expert at
16-5c Characteristics of the Product 482 Connecting Advertisers with Programming 520
16-5d Costs and Availability of Promotional Methods 483 Case 17.2 The Rise of Native Advertising 521
16-5e Push and Pull Channel Policies 484
16-6 The Impact of Word-of-Mouth Communications Chapter 18: Personal Selling and Sales
on Promotion 485
16-7 Product Placement as Promotion 486
Promotion 524
Marketing Insights: Digital Discounting: The Demise of the Paper
16-8 Criticisms and Defenses of Promotion 487
Coupon 525
16-8a Is Promotion Deceptive? 487
18-1 The Nature and Goals of Personal Selling 526
16-8b Does Promotion Increase Prices? 487
18-2 Steps of the Personal Selling Process 528
16-8c Does Promotion Create Needs? 487
18-2a Prospecting 528
16-8d Does Promotion Encourage Materialism? 488
18-2b Preapproach 528
16-8e Does Promotion Help Customers without Costing
18-2c Approach 529
Too Much? 488 18-2d Making the Presentation 529
16-8f Should Potentially Harmful Products 18-2e Overcoming Objections 530
Be Promoted? 488 18-2f Closing the Sale 530
Summary 489
18-2g Following up 530
Important Terms 490
18-3 Types of Salespeople 531
Developing Your Marketing Plan 491 18-3a Sales Structure 531
Video Case 16.1 Napoletana: Taking a Bite at 18-3b Support Personnel 531
WOM Promotion 491 18-4 Team Selling and Relationship Selling 532
Case 16.2 Picture Perfect: The Success of Product 18-4a Team Selling 532
Placement 492 18-4b Relationship Selling 533
Contents xiii
Integrity in Marketing: Eaton Sales Support Soars Like Entrepreneurship in Marketing: Tastefully Simple Takes a Bite Out
an Eagle 533 of Family Meal Planning 547
18-5 Sales Force Management 534 18-7g Free Samples 548
18-5a Establishing Sales Force Objectives 535 18-7h Premiums 548
18-5b Determining Sales Force Size 535 18-7i Consumer Contests 548
18-5c Recruiting and Selecting Salespeople 535 18-7j Consumer Games 548
18-5d Training Sales Personnel 536 18-7k Sweepstakes 549
18-5e Compensating Salespeople 538 18-8 Trade Sales Promotion Methods 549
18-5f Motivating Salespeople 540 18-8a Trade Allowances 549
18-5g Managing Sales Territories 541 18-8b Cooperative Advertising and Dealer Listings 550
18-5h Controlling and Evaluating Sales Force 18-8c Free Merchandise and Gifts 550
Performance 542 18-8d Premium Money 550
18-6 Sales Promotion 542 18-8e Sales Contests 551
18-7 Consumer Sales Promotion Methods 543 Summary 551
18-7a Coupons 543 Important Terms 552
18-7b Cents-Off Offers 545
18-7c Money Refunds 546 Video Case 18.1 Nederlander Gives Audiences a Reason for a
18-7d Rebates 546 Standing Ovation 553
18-7e Shopper, Loyalty, and Frequent-User Incentives 547 Case 18.2 Salesforce.com Sold on Stakeholder Satisfaction 554
18-7f Point-of-Purchase Materials and Demonstrations 547 Strategic Case 7 Patagonia Climbs into the World of IMC 555
PART 8 Pricing Decisions 559
Chapter 19: Pricing Concepts 560 19-6 Pricing for Business Markets 580
19-6a Price Discounting 580
Marketing Insights: Can’t Spend Enough on a Car? 561
19-6b Geographic Pricing 581
19-1 The Importance of Price in Marketing 562
19-6c Transfer Pricing 582
19-2 Price and Nonprice Competition 563 Summary 582
19-2a Price Competition 563 Important Terms 584
19-2b Nonprice Competition 564 Discussion and Review Questions 584
19-3 Demand Curves and Price Elasticity 564 Developing Your Marketing Plan 584
19-3a The Demand Curve 565 Video Case 19.1 Louis Vuitton Bags the Value
19-3b Demand Fluctuations 566 Shopper 585
19-3c Assessing Price Elasticity of Demand 566 Case 19.2 CVS: Continuous Value Strategy 586
19-4 Demand, Cost, and Profit Relationships 567
19-4a Marginal Analysis 567 Chapter 20: Setting Prices 588
19-4b Breakeven Analysis 571 Marketing Insights: Aldi Spotlights Low Grocery Prices 589
19-5 Factors that Affect Pricing Decisions 572 20-1 Development of Pricing Objectives 590
19-5a Organizational and Marketing 20-1a Survival 591
Objectives 572 20-1b Profit 591
19-5b Types of Pricing Objectives 572 20-1c Return on Investment 591
19-5c Costs 573 20-1d Market Share 591
19-5d Marketing-Mix Variables 573 20-1e Cash Flow 592
19-5e Channel Member Expectations 574 20-1f Status Quo 592
19-5f Customers’ Interpretation and Response 574 20-1g Product Quality 592
Entrepreneurship in Marketing: Up, Up, and Away for Smart 20-2 Assessment of the Target Market’s Evaluation
and Strong Luggage 575 of Price 592
Disruptive Marketing: Rent, Return, Repeat, or 20-3 Evaluation of Competitors’ Prices 593
Try and Buy? 577 20-4 Selection of a Basis for Pricing 594
19-5g Competition 577 20-4a Cost-Based Pricing 594
19-5h Legal and Regulatory Issues 578 20-4b Demand-Based Pricing 595
xiv Contents
Creative Marketing: The Ups and Downs of Dynamic Case 20.2 Norwegian Air Shuttle Continues to Climb with
Toll Pricing 596 Low Costs and Low Prices 610
20-4c Competition-Based Pricing 597 Strategic Case 8 To Rent or to Own? That Is the Question 611
20-5 Selection of a Pricing Strategy 597
20-5a Differential Pricing 597
20-5b New-Product Pricing 599 AVAILABLE ONLY ONLINE:
Disruptive Marketing: Flash Sales: You’ve Got to Be Fast! 599 Appendix A: Financial Analysis in Marketing A-1
20-5c Product-Line Pricing 600 Appendix B: Sample Marketing Plan B-1
20-5d Psychological Pricing 603 Appendix C: Careers in Marketing C-1
20-5e Professional Pricing 605
20-5f Promotional Pricing 605
Glossary 614
20-6 Determination of a Specific Price 606
Summary 607 Endnotes 627
Important Terms 608 Feature Notes 670
Discussion and Review Questions 608 Name Index 677
Developing Your Marketing Plan 609 Organization Index 678
Video Case 20.1 Warby Parker Puts Affordable Eyewear in Focus 609 Subject Index 681
Preface
MARKETING: A KEY TO SUCCESS

This edition of Marketing has been revised to capture changes that will determine the future
of marketing. Marketing knowledge is important to every student’s success, regardless of their
career path. There is significant evidence that marketing is becoming a more important func-
tion in organizations, and students will need to be prepared to understand opportunities and
challenges from a marketing perspective. This new edition provides the concepts, frameworks,
and engagement in decision-making experiences that will prepare students for their careers.
It is not enough to learn terminology and memorize concepts. What we teach students today
could be obsolete in five or ten years. We need to prepare them to engage in critical thinking
and engage in continuous self-development.
Active learning requires a holistic understanding with examples, exercises, and cases facil-
itated by MindTap, our online teaching experience. MindTap provides relevant assignments
that guide students to analyze, apply, and improve thinking, allowing them to measure skills
and outcomes with ease. This means that students using this book should develop respect for
the importance of marketing and understand that the learning of marketing requires in-depth
knowledge and the mastering of essential concepts. We have made the learning experience
as fresh as possible with available research, new examples and boxes, as well as illustrations.
We address how technology is changing the marketing environment. As students prepare
for the new digital world, they will also need to practice developing communication skills,
especially teamwork, that go beyond their personal interaction with digital devices. As internet
retailing and online business-to-business marketing advances, the importance of supply chain
management becomes important in connecting and integrating members of the distribution
system. Marketing analytics and artificial intelligence (AI) are defining how decisions are
made and implemented. For example, UPS is delivering packages with drones, and driverless
cars may be widespread by 2021. All of these advances related to technology are changing
marketing activities, strategies, and business models. We address all of these developments to
prepare students for the future.
We also provide numerous ancillary materials to aid in student comprehension of market-
ing concepts as well as to increase instructor resources for teaching this important material.
The MindTap materials include building a marketing plan, concept check quizzes on the
reading, self-assessments, homework assignments, PowerPoint presentations practice exam
preparation tests, videos of real companies, branching activities, flashcards, and more! Addi-
tionally, on the instructor companion site, YouTube videos are available for each chapter
with worksheets to engage students in applying concepts. Our marketing video case series
enables students to learn about how real-world companies address marketing challenges.
Our Marketing Plan activities and video program provide students with practical knowledge
of the challenges and the planning process of launching a new product. Together these revi-
sions and additional materials will assist students in gaining a full understanding of pertinent
marketing practices.
Online social networking has become an increasingly powerful tool for marketers. Most
discussions about marketing today bring up issues such as how digital media can lower costs,
improve communications, provide better customer support, and achieve improved marketing
research. All elements of the marketing mix should be considered when using digital media
xv
xvi Preface
and social networking. We discuss how digital media and social networking tools can cre-
ate effective digital 293 marketing strategies that can enhance marketing efforts. In addition, the
entire book integrates important digital marketing concepts and examples where appropriate.
ution costs and real estate costs associated with large
online competition as well as a trend toward We have paid careful attention to enhancing all key concepts in marketing and have built
offer a seamless experience on mobile, desktop, or this revision to be current and to reflect important changes in marketing. Our book is a market
many retailers aim to offer consistent product assort-
leader because students find it readable and relevant. Our text reflects the real world of market-
re, browse an in-store digital catalog, and then use ing and provides the most comprehensive coverage possible of important marketing topics.
seamless shopping experience a way to differentiate Specific details of this extensive revision are available in the transition guide in the
76
Instructor’s Manual. We have also made efforts to improve all teaching ancillaries and stu-
dent learning tools. PowerPoint presentations continue to be a very popular teaching device,
and a special effort has been made to upgrade the PowerPoint program to enhance classroom
derations
teaching.
omni-channel The Instructor’s Manual continues to be a valuable tool, updated with engaging
Various
marketing channels, including
in-class activities
mobile, desktop, or traditional
and projects. The authors and publisher have worked together to provide
retailaspaces,
CHAPTER comprehensive
providing
4: Socialseamless teaching
Responsibility package
and Ethics in Marketingand ancillaries that are unsurpassed in the marketplace. 105
s. ColourPop is an example of a digital marketing customer experiences
The authors have maintained a hands-on approach to teaching this
4-3a Individual Factors material and revising the text and its ancillaries. This results in an inte-
. The com-
When people need to resolve ethical grated teaching
conflicts in theirpackage andoften
daily lives, they approach
base theirthat is accurate, sound, and suc-
decisions
on their own values and principles of right or wrong. People learn values and principles through
a number of cessful in reaching students. The outcome
socialization by family members, social groups, religion, and formal education. Because of
of this involvement fosters
on Twitter, different levels of personal ethics in any organization, there will be significant ethical diversity and in student learning
trust and confidence in the teaching package
As a result, among employees. Most firmsoutcomes. do not attempt Student
to changefeedback regarding
an individual’s personalthis
ethicstextbook
but is highly favorable.
n the beauty try to hire employees with good character. Therefore, shared ethical values and compliance
adver-
standards are required to prevent deviation from desired ethical conduct. In the workplace,
however, research has established that an organization’s culture often has more influence on
WHAT’S NEW TO THIS EDITION?
th its holi-
marketing decisions than an individual’s own values.43
4-3b Organizational Relationships

Although people can and do make Ourethical
goal is to provide
choices pertaining the to most
marketing up-to-date
decisions, no content—concepts,
one examples,
aign hashtag,
content that operates in a vacuum.44 Ethical cases,
choices exercises,
in marketing and aredata—possible.
most often made jointly, Therefore,
in work in this revision there are
company’s groups and committees, or insignificant
conversationschanges and discussions that make with coworkers.
learningMarketing more engaging and interesting
rketers who employees resolve ethical issues based not only on what they learned from their own back-
ties have the grounds but also on what they learn from others in the organization. The outcomethe
to the students. The following highlight types of changes that were
of this
learning process depends on the made in this
strength of each revision.
individual’s personal values, opportunity
for unethical behavior, and exposure to others who behave ethically or unethically. Superiors,
ays to enjoy peers, and subordinates in the•organization
Foundational influencecontent.
the ethical Each chapter has
decision-making been updated with the latest
process.
While individuals may have goodknowledge ethics, they often face new related
available and complex decisions in the concepts, and academic
to frameworks,
business environment. Although people outside the organization, such as family members and
friends, also influence decision makers, research. Theseculture
organizational additions have operate
and structure been seamlessly
through integrated into the
text, logos, organizational relationships to influence text. ethical
Manydecisions.examples are new and a review of footnotes at the ends
er type
advertising
Organizational (corporate) culture of ,chapters
is a set of values, beliefs, goals,
will reveal where norms,new andcontent
rituals that has been added.
members of an organization share. These values also help shape employees’ satisfaction with
SOURCE: ATHLETA
their employer, which may affect • the

Opening
quality of the vignettes:
service theyMarketingprovide to customers.Insights. A firm’sAll oforganizational
the chapter-opening (corporate)
High-impact culture may be expressed formallyvignettes through codes areofnew conduct, memos, manuals,
or updated. They dress codes, to
are written introduce
culture the theme
A set of values, beliefs,
erac- Promotion Considerations and ceremonies, but it is also conveyed informally through work habits, extracurricular activi- goals, norms, and rituals that
ties, and
Athleta uses Instagram to spread its #gratefulfor campaign stories.
which
of each chapter by focusing
An organization’s culture gives its members meaning and suggests rules for
encourages
on actual entrepreneurial companies
members of an organization
and
how to behave and deal with problems
Athleta fans to share stories of positivity and gratitude. howwithintheythe deal with real-world situations.
organization. share
With regard to organizational
structure, most experts agree that
the chief executive officer or vice
president of marketing sets the
How Do Employees Spend Time on
• Boxed features. Each chapter includes
ethical tone fortwothenew boxed
entire mar- Their Personal Mobile Devices at Work?
features that highlight disruptive marketing,Lower-level
keting organization. creative
marketing, integrity in marketing, managersorobtain their cues from
entrepreneurship
top managers, but they too impose Personal Email 30% 28%
in marketing. Three of these some themes
of their are newvalues
personal to this
on
edition. the company. Top-performing sales Social Networks 28% 62%
representatives may influence the
• New Snapshot features. The Snapshot features
conduct of other salespersons as are Sports Sites 9% 1%
new and engage students bythey highlighting interesting,
serve as role models for suc-
cess. This interaction
Mobile Games 6% 2%
up-to-date statistics that link marketing theorybetween
to the
corporate culture and executive Online Shopping Sites 5% 4%
real world. leadership helps determine the
• New research. Throughout the text we have updated firm’s ethical value system. Entertainment Sites 3% 1%
Coworkers’ influence on
content with the most recentanresearch that supports
individual’s ethical choices the
frameworks and best practices for marketing.
depends on the person’s exposure
to unethical behavior. Especially
SNAPSHOT According to Employees According to Managers
• New illustrations and examples. in gray areas,New advertise-

the more a person Source: “Working Hard or Hardly Working? Employees Waste More Than One Day a Week on Non-Work Activities,” Robert Half, July 19, 2017, http://
rh-us.mediaroom.com/2017-07-19-WORKING-HARD-OR-HARDLY-WORKING-Employees-Waste-More-Than-One-Day-a-Week-on-Non-Work-
ments from well-known isfirms exposedare employed
to unethical to Activities (accessed January 27, 2018).
activity by
Preface xvii
illustrate chapter topics. Experiences of real-world companies are used to exemplify

marketing concepts and strategies throughout the text. Most examples are new or
updated to include digital marketing concepts as well as several new sustainable mar-
keting illustrations.
• End-of-chapter cases. Each chapter contains two cases, including a video case, profiling
firms to illustrate concrete application of marketing strategies and concepts. Many of our
video cases are new to this edition and are supported by current and engaging videos.
• YouTube videos. Each chapter has a YouTube video related to a concept. Student work-
sheets are available for application. These are all available on the instructor companion site.
FEATURES OF THE BOOK

As with previous editions, this edition of the text provides a comprehensive and practical intro-
duction to marketing that is both easy to teach and to learn. Marketing continues to be one of
the most widely adopted introductory textbooks in the world. We appreciate the confidence
that adopters have placed in our textbook and continue to work hard to make sure that, as in
previous editions, this edition keeps pace with changes. The entire text is structured to excite
students about the subject and to help them learn completely and efficiently.
• An organizational model at the beginning of each part provides a “road map” of the text
and a visual tool for understanding the connections among various components.
• Objectives at the start of each chapter present concrete expectations about what students
are to learn as they read the chapter.
• Every chapter begins with an opening vignette. This feature provides an example of the
real world of marketing that relates to the topics covered in the chapter. After reading the
vignette, the student should be motivated to want to learn more about concepts and strate-
gies that relate to the varying topics. Students will have an opportunity to learn more about
organizations such as Chipotle, L’Oréal, Dunkin’ Donuts, Alibaba, and Spotify.
and marketing. Corporate strategy is the broadest of the three levels and should be developed
with the organization’s overall mission in mind. Business-unit strategy should be consistent
with the corporate strategy while also serving the unit’s needs. Marketing strategy utilizes the
marketing mix to develop a message that is consistent with the business-unit and corporate
strategies.
xviii Preface
514 Creative Marketing PART 7: Promotion Decisions • B o x e d f e a t u r e s — C re a t i v e

M arketing and Disruptive
Learning Objective 17-5
tiffany rings Up More through Mobile Marketing
Describe the different tools 17-5 PUBLIC RELATIONS TOOLS M arketing—capture dynamic
Building on a distinctive brand image forged over
of public relations. more than 180Companies
years, Tiffany & Co.
use is polishing
a variety
firm’s website or checking its popular accounts
on Pinterest,
of public relations Facebook,
tools to convey Google+,
messages YouTube,
and create images. Public
changes in marketing. These
its marketing strategy
relationsforprofessionals
fine-jewelry buyers.
the next generation
The firm,
prepare
known worldwide
of writtenTwitter, or Instagram.
materials All are media
and use digital awash into Tiffany
deliver brochures, changes are influencing marketing
newsletters, company magazines, news Blue, which
releases, is also
blogs, the colorsocial
managed of its media
official sites,
Snapchat
and annual
for diamond rings and other luxury jewelry items, icon.
reports that reach and influence their various stakeholders. Sometimes, organizations use less strategies and customer behavior.
began with a single store in New York City. Today, When the firm first developed its mobile mar-
conventional tools in their public relations campaigns. AT&T’s “It Can Wait” campaign spreads
Tiffany operates more than 300 full-service stores
awareness about the dangers of textingwere
keting strategy, Lacaze says company marketers
and driving. Not only did it hold a pledge drive, but it
Strong feedback from adopters
in dozens of countries and rings up $4 billion in “scared of showing expensive products on
annual sales. also partnered with advertising agency aBBDO to develop
tiny screen,” fearingathedocumentary
impact would andbe held
lost. 400 local indicated the need for coverage in
Although events to showand individuals the impact However,
their texting canquickly
have on their driving. AT&T intro-
50
the technology
duced theover
designs have changed DriveMode
the product
appTiffany’s
the decades, to silence incoming
Tiffany
text messages
phone users
discovered
whilethey
don’t just look, driving
that smart-
at 15click
actually mphto or faster. these areas.
The campaign has resulted
timeless brand has retained its strong upscale in more than 5 million
see more. As app
146
downloads and 14 million
a result, the firm now posts extra- pledges.51 PART 3: Marketing Research and Target Market Analysis
Public relations
appeal. Now the company personnel
is extending also create
its signa- corporate
large photos identity
and videosmaterials—such as logos, business
on its mobile-optimized
ture Tiffany Blue color
cards, beyond packaging
stationery, signs, andtopromotional
its website to showcase
materials—that make detail.
firmsIt also offers an recognizable.
immediately
• The Creative Marketing feature explores
entire digital presence,
Speechesincluding
ing. The goal, at
according
are another
to or
mobile market-
public engagement-ring
relations tool.
DisRuPTive MARkeTing
marketing executive
Because what finder app, featuring
a company a virtual
executive says publicly
meetings to the media can affect “try
the on” function to help
organization’s mobile
image, the users
speech envision
must convey the
unique marketing approaches at Tiffany’s,
Catherine Lacaze, is tomessage
desired “remind you that Event sponsorship,
clearly. themselves wearing
ina which a specialpays
a company piecefor
of part
Tiffanyor all of a spe-
you’re in the Tiffany world,” whether browsing the jewelry. Making Meaning Out of big Data: Marketing analytics
Airbnb, ipsy, and Volition.
cial event, like a benefit concert or a tennis tournament, is another public relations tool. One
example is Pizza Hut’s sponsorship of ESPN’s College GameDay.TheSponsoring special events 52
168 field of marketing research is changing. Where PART 3: is important
Marketing in identifying
Research marketing
and Target channels
Market Analysisthat
• The Disruptive Marketing
can be an effective means of increasing company or brand recognition
boxes cover it was with
investment. Event sponsorship can gain companies considerable amounts
once relatively
dominated minimal
of free media
today’s marketers
by focus groups and surveys,
cover- turning to mar
are increasingly
increase ROI.
It is not enough simply to record big data. The hard
Behavioristic aVariables
such marketing phenomena as Block-
age. An organization tries to ensure that its product and the sponsored event target
keting analytics to glean similar
customer insights. Big data part is determining which small bits of information
audience and that the two are easily associated in customers’ minds. Manycan
andFirms
marketingcompanies
analytics
divide as
arewell
a market being used to disrupt
according among massive
to consumer behavior towarddata files will reveal
a product, whichsignificant
commonly customer
chain, apparel rental, and flash assist
as individuals sales. Fea-
in their charitable giving. Bill Daniels, the industries
founder
involves across
of the board.
Cablevision
an aspect A reportuse.
who
of product found that largea market
Therefore, insights.
mayHowever, interpreting
be separated big data correctly can
into users—classified
businesstoconsumer
passed away in 2000, set up a fund supported with more than a billion as dollars to provide firms are planningnonusers.
finan- to increaseTo satisfy
help marketers recognize
group,trends
such they never would
users,have
tured companies include IKEA, Amazon,
cial support for many causes, including business ethics. their
heavy, moderate,
spendingmay
marketers on marketing
or light—and
analytics byproduct
create a distinctive almost and pricerealized
a specific
existedspecial
or initiate otherwise.
as heavy
For instance,
promotion andone analytics
distribu-
100 percent in a threeyear period. Eightythree firm helped a mobile phone manufacturer determine
Google, and Zappos.
10590_ch02_hr_028-056.indd 32 tion activities. Per capita consumption data help determine different levels of usage by product
percent of business leaders pursue big data proj
9/27/18 12:19 PM
that the major reason consumers bought its phone
category. To satisfy customers who use a product in a certain way, some feature—packaging,
ects in the belief that it will provide their firms was not because of the camera, which is what the firm
size,
with texture, oradvantage.
a competitive color—may Thebe designedofpreciselythought,
advantages to makebutthe product
because of aeasier
certainto use,
app safer,
built or
into the
more convenient. • In the Integrity in Marketing
INTEGRITY IN MARKETING
marketing analytics are not limited to businessto phone. There is no doubt that marketing analytics has
Benefit segmentation is the division
consumer firms; approximately 79 percent of busi of a market according to benefits that consumers want
begun to revolutionize marketers’ understanding of
fromthat
nesses thesell
product. Although
to other businesses most boxed features, topics such as eth-
types
believe of market segmentation
analytics customer trendsassume a relationship
and preferences. a between
Patagonia Unzips Its Advertising Strategy: Don’t Buy This Jacket the variable and customers’ needs, benefit segmentation differs in that the benefits customers
seek are their product needs. Consider that ics, a customersustainability,
who purchases over-the-counterprivacy, cold and
relief medication may be specifically interested in two benefits: stopping a runny nose and
One of apparel store Patagonia’s most popular adver- developed a film showing fans wearing old Patagonia social responsibility
relieving chest congestion. Thus, individuals are segmented directly according to their needs.
are consid-
tisements features its popular R2 coat with the headline: clothing held together by duct tape, demonstrat-
“Don’t Buy This Jacket.” In the copy, the advertisement
By determining the desired benefits, marketers
ing the value of less consumption. Patagonia also ered. Featured
can divide companies
people into groups by the benefits
they seek. The effectiveness of such segmentation depends on three conditions: (1) the benefits
include
explains that although the R2 uses recycled materials, it announced it would donatesought
100 percent
must5-4e Marketing
of proceeds
be identifiable, (2) usingDecision
these benefits,Support
Chick-fil-A,
marketers mustSystems
Flowers
be able to dividefor Dreams,
people
is still harmful to the environment. Patagonia advocates from sales generated on theinto
dayrecognizable
after Thanksgiving
segments,to and (3) one or more of the resulting segments must be accessible
in decision makingUnilever, Starbucks, REI,
decisions. and
A marketing decision support system (MDSS) is customized computer software that aids mar-
for decreased consumption where consumers purchase environmental causes. to the firm’sketing
marketing efforts.
managers by helping them anticipate the effects of certain
less (also termed green demarketing). Because Patagonia clothingMarketers
lasts a MDSS
long time,
Patagonia was founded upon environmental its marketing indirectly promotes its the
ever, use own
can issegment
products
same
linked toconsumer
variables
computational andto segment
modeling
markets
the availability
Patagonia.
using
of big
business and
capabilities
datamany characteristics.
and marketing
characteristics. We will
has a broad range
They
analytics. An do
learn about
and advanced
not, offers
MDSS how- great
business
marketing analyt-
principles with a three-part mission: sell quality prod- as a solution to the constant need to
market replace
segmentationworn-
ics, allowing managers
in the to explore a wide range of alternatives. For instance, an MDSS can
next section.
ucts, cause no unnecessary harm, and find business out apparel. The company even urges consumers
determine how to sales and profits might be affected by higher or lower interest rates or how sales
solutions to environmental issues. Because excessive return worn-out merchandise so Patagonia forecasts,
can advertising expenditures, production levels, and the like might affect overall profits.
consumption generates waste, encouraging consum-benefitrecycle it into something else.
segmentation The
This Variables
6-4b approach reason,for
For thisreso- MDSS Segmenting Business
software is often a major component ofMarkets
a company’s marketing infor-
ers to purchase less demonstrates Patagonia’s envi- divisionnates with according
consumers as sustainable mation system. Some decision support systems incorporate artificial intelligence and other
consumption
of a market Like consumer markets, business markets are frequently segmented for marketing purposes.
ronmental commitment. Patagonia wants consumersto benefits becomes an important advanced computer technologies.
that consumers want sociocultural
Marketersvalue.
segment business markets according to geographic location, type of organization,
to purchase apparel only as needed. from thePatagonia’s
product revenue has increased
customerbysize,
moreandthanproduct use.
Patagonia has incorporated public relations $250 million since it first launched its infamous
activities into its campaign as well. For instance, it campaign.Identify
b ethical and 5-5 IssUes In markeTIng research
• The Entrepreneurship in Market-
ENTREPRENEURSHIP IN MARKETING
international issues in
Marketers should identify concerns that influence the integrity of research. Ethical issues are
ing feature focuses on the role of marketing research. a constant risk in gathering and maintaining the quality of information. International issues
relate to environmental differences, such as culture, legal requirements, level of technology,
entrepreneurship and the need for Halo Top Ice Cream Tops
andPint Salesdevelopment.
economic Charts
creativity in developing successful How does an entrepreneur with no food or marketing
the
prominently labeled with the calorie count for prod-
5-5abrand
experience create an ice cream thatImportance
holds its uct of ethicalUnder
differentiation. Marketing research
the lid, the foil seal encour-
marketing strategies by featuring marketing decision support
own with industry giants like
system (MDSS) Customized
Häagen-Dazs
Marketing and Ben
managers ages buyersare
and other professionals to go ahead
relying moreandand
indulge: “Stop
more on when you
marketing research,
& Jerry’s? Smart target marketing. Justin Woolvertonsystems,hit the bottom. ” And, tototempt
makevariety-seeking Millen-
successful entrepreneurial com- computer
marketing
software
was managers
that aids
a sweets-loving
in decision
marketing
lawyer itwhen
information
he started
is essential thattesting
and new technologies
nial palates,
professional standards be Halo Top comes
established
better decisions.
in buzz-worthy
by which
Therefore,
flavors
to judge the reliability of
panies such as Blue Bottle Coffee,
10590_ch17_hr_494-523.indd 514 marketing research.
recipes for a lower-calorie, higher-protein
making Such
ice cream.
After months of experimentation, he settled on a rec-
standards
9/5/18 AM are
8:19like necessary
cinnamon roll,because
rainbowofswirl,
the ethical and legaland
and pancakes
waffles, as well as perennial favorites like vanilla bean.
issues that
Harmless Harvest, Halo Top Ice ipe sweetened with stevia to slash the calorie count As Halo Top appeared on store shelves,
without sacrificing flavor—a key benefit desired by Woolverton revved up outreach to his target market
Cream, Haney’s Appledale Farm, health-conscious Millennials. In fact, a pint of via Facebook and Instagram. Fans quickly added their
Louisville Slugger, and Tastefully Halo Top has fewer calories and more protein than
a pint of traditional ice cream.
comments and images, building word-of-mouth
authenticity for the young brand, and sending its total
Simple. Packaging reflects another of Woolverton’s follower count over the one-million mark. Before Halo
insights. Consumers in his target market want to Top reached its fifth birthday, its pint sales had out-
10590_ch05_hr_121-153.indd 146 9/8/18 4:56 PM
spoon their way through the whole pint in one sitting, stripped the pint sales of the best-established brand
without guilt. As a result, Halo Top is sold only in pints, names in the ice-cream industry for the first time.a
• Key term definitions appear in the margins to help students build their marketing vocabulary.
• Figures, tables, photographs, advertisements, and Snapshot features increase comprehen-
sion and stimulate interest.
• A complete chapter summary reviews the major topics discussed, and the list of important
terms provides another end-of-chapter study aid to expand students’ marketing vocabulary.
10590_ch06_hr_154-182.indd 168 9/8/18 9:16 AM
• Discussion and review questions at the end of each chapter encourage further study and
exploration of chapter content.
• The Developing Your Marketing Plan feature allows students to explore each chapter topic
in relation to developing and implementing a marketing plan.
Preface xix
• Two cases at the end of each chapter help students understand the application of chapter
concepts. One of the end-of-chapter cases is related to a video segment. Some examples
of companies highlighted in the cases are Crayola, Salesforce.com, Netflix, Instagram,
Rebecca Minkoff, and Louis Vuitton.
• A strategic case at the end of each part helps students integrate the diverse concepts that
have been discussed within the related chapters. Examples include Whole Foods, Uber,
Nike, and Gelson’s Market.
• Online appendices discuss marketing career opportunities, explore financial analysis in
marketing, and present a sample marketing plan. All of these appendices appear online on
the instructor and student companion sites and in MindTap.
• A comprehensive glossary defines more than 600 important marketing terms.
TEXT ORGANIZATION
We have organized the eight parts of Marketing to give students a theoretical and practical
understanding of marketing decision making.
Part 1 Marketing Strategy and Customer Relationships

In Chapter 1, we define marketing and explore several key concepts: customers
and target markets, the marketing mix, relationship marketing, the marketing
concept, and value-driven marketing. In Chapter 2, we look at an overview of
strategic marketing topics, such as the strategic planning process; corporate,
business-unit, and marketing strategies; the implementation of marketing
strategies; performance evaluation of marketing strategies; and the components
of the marketing plan.
Part 2 Environmental Forces and Social and Ethical Responsibilities

We examine competitive, economic, political, legal and regulatory, technological,
and sociocultural forces that can have profound effects on marketing strategies
in Chapter 3. In Chapter 4, we explore social responsibility and ethical issues in
marketing decisions.
Part 3 Marketing Research and Target Market Analysis

In Chapter 5, we provide a foundation for analyzing buyers with a look at marketing
information systems and the basic steps in the marketing research process. We look at
elements that affect buying decisions to better analyze customers’ needs and evaluate
how specific marketing strategies can satisfy those needs. In Chapter 6, we deal
with how to select and analyze target markets—one of the major steps in marketing
strategy development.
Part 4 Buying Behavior, Global Marketing, and Digital Marketing

We examine consumer buying decision processes and factors that influence buying
decisions in Chapter 7. In Chapter 8, we explore business markets, business
customers, the buying center, and the business buying decision process. Chapter 9
focuses on the actions, involvement, and strategies of marketers that serve
international customers. In Chapter 10, we discuss digital marketing, social media,
and social networking.
Part 5 Product Decisions

In Chapter 11, we introduce basic concepts and relationships that must be
understood to make effective product decisions. Also, we discuss a number of
dimensions associated with branding and packaging. We analyze a variety of topics
regarding product management in Chapter 12, including line extensions and product
modification, new-product development, and product deletions. Chapter 13 discusses
services marketing.
xx Preface
Part 6 Distribution Decisions

In Chapter 14, we look at supply chain management, marketing channels, and the
decisions and activities associated with the physical distribution of products, such
as order processing, materials handling, warehousing, inventory management, and
transportation. Chapter 15 explores retailing and wholesaling, including types of
retailers and wholesalers, direct marketing and selling, and strategic retailing issues.
Part 7 Promotion Decisions

We discuss integrated marketing communications in Chapter 16. The communication
process and major promotional methods that can be included in promotion mixes are
described. In Chapter 17, we analyze the major steps in developing an advertising
campaign. We also define public relations and how it can be used. Chapter 18 deals
with personal selling and the role it can play in a firm’s promotional efforts. We also
explore the general characteristics of sales promotion and describe sales promotion
techniques.
Part 8 Pricing Decisions

In Chapter 19, we discuss the importance of price and look at some characteristics of
price and nonprice competition. We explore fundamental concepts such as demand,
elasticity, marginal analysis, and breakeven analysis. We then examine the major
factors that affect marketers’ pricing decisions. In Chapter 20, we look at the six
major stages of the process marketers use to establish prices.
A COMPREHENSIVE INSTRUCTIONAL
RESOURCE PACKAGE
For instructors, this edition of Marketing includes an exceptionally comprehensive package
of teaching materials.
Instructor’s Manual
The Instructor’s Manual has been revamped to meet the needs of an engaging classroom envi-
ronment. It has been updated with diverse and dynamic discussion starters, classroom activities,
and group exercises. It includes such tools as:
• Quick Reference Guide to see the available key terms, overview of the learning objectives,
and major topic in each chapter
• What’s New in Each Chapter?
• Purpose Statements
• Integrated Lecture Outlines
• Discussion Starter recommendations that encourage active exploration of the in-text
examples
• Class Exercises and Semester Project Activities
• Suggested Answers to end-of-chapter exercises, cases, and strategic cases
Test Bank
The test bank provides more than 4,000 test items, including true/false, multiple-choice, and
essay questions. In this edition, you will find several new questions for each learning objective.
Each objective test item is accompanied by the correct answer, appropriate Learning Objective,
level of difficulty, Bloom’s level of thinking, Program Interdisciplinary Learning Outcomes,
Preface xxi
and Marketing Disciplinary Learning Outcomes. Cengage Learning Testing powered by

ognero is a flexible, online system that allows you to:
C
• Author, edit, and manage test bank content from multiple Cengage Learning solutions
• Create multiple test versions in an instant
• Deliver tests from your LMS, your classroom, or wherever you want
American Marketing Association Professional

Certified Marketer®
The American Marketing Association has recently started offering marketing graduates the
opportunity of adding the AMA PCM® credentials to their undergraduate or MBA degree,
which can serve as a symbol of professional excellence that affirms mastery of marketing
knowledge and commitment to quality in the practice of marketing. Certification, which is
voluntary, requires passing a rigorous and comprehensive exam and then maintaining the cer-
tification through continuing education. Earning an AMA PCM certification demonstrates to
employers, peers, and clients that the holder:
• Has mastered essential marketing knowledge and practices
• Goes the extra mile to stay current in the marketing field
• Follows the highest professional standards
The AMA recommends Pride and Ferrell’s Marketing as a suggested resource for AMA
PCM students to utilize as they prepare for taking the AMA PCM certification exam, and the
text was used as a source to design the course and as a source for suitable examination ques-
tions. Now, more than ever, you need to stand out in the marketplace. AMA’s Professional
®
Certified Marketer (PCM ) program is the perfect way to showcase your expertise and set
yourself apart.
To learn more about the American Marketing Association and the AMA PCM exam, visit
https://www.ama.org/events-training/Certification/Pages/digital-marketing-certification.aspx.
PowerPoint Slides
PowerPoint continues to be a very popular teaching device, and a special effort has been made
to upgrade the PowerPoint program to enhance classroom teaching. Premium lecture slides,
containing such content as advertisements, and unique graphs and data, have been created to
provide instructors with up-to-date, unique content to increase student application and interest.
Marketing Video Case Series

This series contains videos specifically tied to the video cases found at the end of each chap-
ter. The videos include information about exciting companies such as Apple, Tesla, Ford,
Instagram, and Warby Parker. MindTap video exercises provide students with opportunities
to use the videos to test and expand their knowledge. Also included are YouTube videos that
have been selected by the authors specifically to be used in the classroom to engage students
and illustrate marketing concepts.
MindTap for Marketing

MindTap is a personalized teaching experience with relevant assignments that guide students to
analyze, apply, and improve thinking, allowing them to measure skills and outcomes with ease.
• Personalized Teaching: Becomes yours with a learning path that is built with key student
objectives. Control what students see and when they see it. Use it as-is or match to your
syllabus exactly—hide, rearrange, add, and create your own content.
xxii Preface
• Guide Students: A unique learning path of relevant readings, multimedia, and activities
that move students up the learning taxonomy from basic knowledge and comprehension
to analysis and application.
• Promote Better Outcomes: Empower instructors and motivate students with analytics and
reports that provide a snapshot of class progress, time in course, and engagement and
completion rates.
Author’s Website
The authors also maintain a website at http://prideferrell.net to provide additional video
resources that can be used as supplements and class exercises. The videos have been developed
as marketing labs with worksheets for students to use after observing the videos. Some of the
videos are accessible through links, and there is also information on where some of the videos
can be obtained. These videos are in addition to the new set of YouTube videos described earlier.
Building a Marketing Plan

The marketing plan has been expanded into eight parts that walk students through the steps of
building a marketing plan as they finish relevant content in the book. These flexible, modular
assignments allow you to assign a complete marketing plan in stages—or pick only specific
sections to assign. Featuring fill-in-the-blank response fields for quick review of student-
provided information and corresponding templates for students to complete and upload, these
assignments present a flexible, course-integrated way to give students experience thinking
through and building out a marketing plan.
In addition, there is a section entitled Developing Your Marketing Plan at the end of each
chapter. These application-focused sections contain exercises that help students to relate
chapter content to the development of marketing plans.
Preface xxiii
SUPPLEMENTS TO MEET STUDENT NEEDS

The MindTap has been updated with key features to help address your students’ needs and
engage them in the material. It is the digital learning solution that powers students from memo-
rization to mastery by challenging students to apply what they have learned, instead of just
recalling the information, with activities such as You Make the Decision and Video Quizzes. It
gives you complete control of your course—to provide engaging content, to challenge every
individual, and to build their confidence.
Other MindTap activities include:
• Self-Assessments
• Chapter Assignments
• Concept Checks
• Adaptive Test Prep (Test Your Knowledge)
• Flashcards
• PowerPoint slides
• And more!
YOUR COMMENTS AND SUGGESTIONS

ARE VALUED
As authors, our major focus has been on teaching and preparing learning materials for introduc-
tory marketing students. We have traveled extensively to work with students and to understand
the needs of professors of introductory marketing courses. We both teach this marketing course
on a regular basis and test the materials included in the book, test bank, and other ancillary
materials to make sure they are effective in the classroom.
Through the years, professors and students have sent us many helpful suggestions for
improving the text and ancillary components. We invite your comments, questions, and criti-
cisms. We want to do our best to provide materials that enhance the teaching and learning of
marketing concepts and strategies. Your suggestions will be sincerely appreciated. Please write
us, or e-mail us at w-pride@tamu.edu or ocferrell@gmail.com, or call 979-845-5857 (Bill
Pride).
Acknowledgments
Like most textbooks, this one reflects the ideas of many opportunity to present their ideas in this book. A number of
academicians and practitioners who have contributed to the individuals have made helpful comments and recommenda-
development of the marketing discipline. We appreciate the tions in their reviews of this or earlier editions.
Zafar U. Ahmed, Lebanese American University Lawrence Chase, Tompkins Cortland Community College
Thomas Ainscough, University of South Florida Larry Chonko, Baylor University
Sana Akili, U.S. Department of Commerce Ernest F. Cooke, Loyola College–Baltimore
Katrece Albert, Southern University Robert Copley, University of Louisville
Joe F. Alexander, Belmont University Robert Corey, West Virginia University
Mark I. Alpert, University of Texas at Austin Deborah L. Cowles, Virginia Commonwealth University
David M. Ambrose, University of Nebraska William L. Cron, Texas Christian University
David Andrus, Kansas State University Gary Cutler, Dyersburg State Community College
Linda K. Anglin, Minnesota State University Bernice N. Dandridge, Diablo Valley College
George Avellano, Central State University Sally Dibb, Open University
Emin Babakus, University of Memphis Katherine Dillon, Ocean County College
Siva Balasubramanian, Illinois Institute of Technology Ralph DiPietro, Montclair State University
Joseph Ballenger, Stephen F. Austin State University Paul Dishman, Utah Valley University
Frank Barber, Cuyahoga Community College Casey L. Donoho, Northern Arizona University
Joseph Barr, Framingham State College Todd Donovan, Colorado State University
Thomas E. Barry, Southern Methodist University Kent Drummond, University of Wyoming
Richard C. Becherer, University of Tennessee–Chattanooga Tinus Van Drunen, University Twente (Netherlands)
Walter H. Beck, Sr., Reinhardt College Robert F. Dwyer, University of Cincinnati
Russell Belk, York University Roland Eyears, Central Ohio Technical College
John Bennett, University of Missouri–Columbia Cheryl A. Fabrizi, Broome Community College, State
W. R. Berdine, California State Polytechnic Institute University of New York
Karen Berger, Pace University Kathleen Ferris-Costa, Bridgewater State University
Stewart W. Bither, Pennsylvania State University James Finch, University of Wisconsin–La Crosse
Roger Blackwell, Blackwell Business Advisors Renée Florsheim, Loyola Marymount University
Nancy Bloom, Nassau Community College Charles W. Ford, Arkansas State University
Paul N. Bloom, Duke University John Fraedrich, Southern Illinois University,
James P. Boespflug, Arapahoe Community College Carbondale
Joseph G. Bonnici, Central Connecticut State University Terry Gabel, Monmouth College
John Boos, Ohio Wesleyan University Robert Garrity, University of Hawaii
Peter Bortolotti, Johnson & Wales University Geoffrey L. Gordon, Northern Illinois University
Chris D. Bottomley, Ocean County College Sharon F. Gregg, Middle Tennessee University
Jenell Bramlage, University of Northwestern Ohio Charles Gross, University of New Hampshire
James Brock, Pacific Lutheran University John Hafer, University of Nebraska at Omaha
John R. Brooks, Jr., Houston Baptist University David Hansen, Texas Southern University
John Buckley, Orange County Community College Richard C. Hansen, Ferris State University
Pat J. Calabros, University of Texas–Arlington Nancy Hanson-Rasmussen, University of Wisconsin–Eau
Linda Calderone, State University of New York College of Claire
Technology at Farmingdale Robert R. Harmon, Portland State University
Joseph Cangelosi, University of Central Arkansas Michael Hartline, Florida State University
William J. Carner, University of Texas–Austin Salah S. Hassan, George Washington University
Nancy M. Carr, Community College of Philadelphia Manoj Hastak, American University
James C. Carroll, University of Central Arkansas Dean Headley, Wichita State University
Terry M. Chambers, Westminster College Esther Headley, Wichita State University
xxiv
Acknowledgments xxv
Debbora Heflin-Bullock, California State Polytechnic Jack McNiff, State University of New York College of Tech-
University–Pomona nology at Farmington
Tony Henthorne, University of Nevada, Las Vegas Lee Meadow, Eastern Illinois University
Charles L. Hilton, Eastern Kentucky University Jeffrey A. Meier, Fox Valley Technical College
Elizabeth C. Hirschman, Rutgers, State University James Meszaros, County College of Morris
of New Jersey Brian Meyer, Minnesota State University
Charlie Hofacker, Florida State University Martin Meyers, University of Wisconsin–Stevens Point
Deloris James, Howard University Stephen J. Miller, Oklahoma State University
Ron Johnson, Colorado Mountain College Carol Morris-Calder, Loyola Marymount University
Theodore F. Jula, Stonehill College David Murphy, Madisonville Community College
Peter F. Kaminski, Northern Illinois University Keith Murray, Bryant University
Jerome Katrichis, University of Hartford Sue Ellen Neeley, University of Houston–Clear Lake
Garland Keesling, Towson University Carolyn Y. Nicholson, Stetson University
James Kellaris, University of Cincinnati Francis L. Notturno, Sr., Owens Community College
Alvin Kelly, Florida A&M University Terrence V. O’Brien, Northern Illinois University
Sylvia Keyes, Bridgewater State College James R. Ogden, Kutztown University of Pennsylvania
William M. Kincaid, Jr., Oklahoma State University Shannon Ogden, Black River Technical College
Hal Koenig, Oregon State University Lois Bitner Olson, San Diego State University
Kathleen Krentler, San Diego State University Robert S. Owen, Texas A&M University—Texarkana
John Krupa, Jr., Johnson & Wales University David P. Paul, III, Monmouth University
Barbara Lafferty, University of South Florida Terry Paul, Ohio State University
Patricia Laidler, Massasoit Community College Teresa Pavia, University of Utah
Bernard LaLonde, Ohio State University John Perrachione, Truman State University
Richard A. Lancioni, Temple University Lana Podolak, Community College of Beaver County
Geoffrey P. Lantos, Stonehill College William Presutti, Duquesne University
Charles L. Lapp, University of Texas at Dallas Daniel Rajaratnam, University of Texas at Dallas
Virginia Larson, San Jose State University Mohammed Rawwas, University of Northern Iowa
John Lavin, Waukesha County Technical Institute James D. Reed, Louisiana State University–Shreveport
Marilyn Lavin, University of Wisconsin Whitewater John Reed, University of New Mexico
Hugh E. Law, East Tennessee State University William Rhey, Florida Southern College
Monle Lee, Indiana University–South Bend Glen Riecken, College of Charleston
Ron Lennon, University of South Ed Riordan, Wayne State University
Florida–Sarasota-Manatee Bruce Robertson, San Francisco State University
Richard C. Leventhal, Ashford University Robert A. Robicheaux, University of Alabama–Birmingham
Marilyn L. Liebrenz-Himes, George Washington Linda Rose, Westwood College Online
University Bert Rosenbloom, Drexel University
Terry Loe, Kennesaw State University Robert H. Ross, Wichita State University
Mary Logan, Global University Tom Rossi, Broome Community College
Paul Londrigan, Mott Community College Vicki Rostedt, The University of Akron
Anthony Lucas, Community College of Allegheny County Catherine Roster, University of New Mexico
George Lucas, U.S. Learning, Inc. Don Roy, Middle Tennessee State University
William Lundstrom, Cleveland State University Catherine Ruggieri, St. John’s University
Rhonda Mack, College of Charleston Rob Salamida, SUNY Broome Community College
Stan Madden, Baylor University Ronald Schill, Middlebury Institute of International Studies
Patricia M. Manninen, North Shore Community College at Monterey
Gerald L. Manning, Des Moines Area Community College Bodo Schlegelmilch, Vienna University of Economics and
Lalita A. Manrai, University of Delaware Business Administration
Franklyn Manu, Morgan State University Edward Schmitt, Villanova University
Allen S. Marber, University of Bridgeport Donald Sciglimpaglia, San Diego State University
Gayle J. Marco, Robert Morris College Stanley Scott, University of Alaska—Anchorage
Marilyn Martin Melchiorre, College of Idaho Beheruz N. Sethna, University of West Georgia
Carolyn A. Massiah, University of Central Florida Abhay Shah, Colorado State University—Pueblo
James McAlexander, Oregon State University Morris A. Shapero, Eckerd College
Donald McCartney, University of Wisconsin–Green Bay Mark Siders, Southern Oregon University
xxvi Acknowledgments
Carolyn F. Siegel, Eastern Kentucky University James Underwood, University of Louisiana–Lafayette

Lyndon Simkin, University of Reading Barbara Unger, Western Washington University
Roberta Slater, Cedar Crest College Dale Varble, Indiana State University
Paul J. Solomon, University of South Florida Bronis Verhage, Georgia State University
Sheldon Somerstein, City University of New York R. “Vish” Viswanathan Iyer, University of Northern
Eric R. Spangenberg, University of Mississippi Colorado
Rosann L. Spiro, Indiana University Kirk Wakefield, Baylor University
William Staples, University of Houston–Clear Lake Harlan Wallingford, Pace University
Carmen Sunda, University of New Orleans Jacquelyn Warwick, Andrews University
Crina Tarasi, Central Michigan University James F. Wenthe, Georgia College
Ruth Taylor, Texas State University Sumner M. White, Massachusetts Bay Community
Steven A. Taylor, Illinois State University College
Ira Teich, Lander College for Men Janice Williams, University of Central Oklahoma
Debbie Thorne, Texas State University Alan R. Wiman, Rider College
Sharynn Tomlin, Angelo State University John Withey, St. Edwards University
We would like to thank Charlie Hofacker and Michael We express appreciation for the support and encourage-
Hartline, both of Florida State University, for many helpful ment given to us by our colleagues at Texas A&M University
suggestions and insights in developing the chapter on digi- and Auburn University. We are also grateful for the comments
tal marketing and social networking. Michael Hartline also and suggestions we received from our own students, student
assisted in the development of the marketing plan outline and focus groups, and student correspondents who provided feed-
provided suggestions throughout the text. back through the website.
We thank Gwyn Walters and Kelsey Reddick for their A number of talented professionals at Cengage Learn-
research and editorial assistance in the revision of the chap- ing and SPi Global have contributed to the development of
ters. We appreciate the efforts of Marian Wood and Jennifer this book. We are especially grateful to Heather Mooney,
Sawayda for developing and revising a number of boxed Allie Janneck, Stephanie Hall, Bethany Bourgeois, Megan
features and cases. We also thank Dianne Kroncke, Shelby Guiliani, and Lucia Hermo del Teso. Their inspiration,
Wyatt, Lauren Grantham, and Mark Zekoff for their research patience, support, and friendship are invaluable.
and assistance. We deeply appreciate the assistance of Alexa
Garcia, Siarra Waddy, Brenda Aram, Jaime Mitash, Clarissa William M. Pride
Means, Amy Handlin, and Susan Leshnower for providing O. C. Ferrell
editorial technical assistance and support.
About the Authors
William M. Pride and University Distinguished Professor of Marketing at

Texas A&M University the Anderson School of Management at University of New
Mexico. He has also been on the faculties of the University of
Wyoming, Colorado State University, University of Memphis,
William M. Pride is Professor of Marketing, Mays Business Texas A&M University, Illinois State University, and Southern
School, at Texas A&M University. He received his PhD from Illinois University. He received his PhD in marketing from
Louisiana State University. In addition to this text, he is the Louisiana State University.
coauthor of Cengage Learning’s Business text, a market leader. He is past president of the Academic Council of the
Dr. Pride teaches Principles of Marketing at both undergraduate American Marketing Association, and he chaired the
and graduate levels and constantly solicits student feedback American Marketing Association Ethics Committee. Under
important to revising a Principles of Marketing text. his leadership, the committee developed the AMA Code
Dr. Pride’s research interests are in advertising, promotion, of Ethics and the AMA Code of Ethics for Marketing on
and distribution channels. His research articles have appeared the Internet. In addition, he is a former member of the
in major journals in the fields of marketing, such as the Academy of Marketing Science Board of Governors and
Journal of Marketing, the Journal of Marketing Research, the is a Society of Marketing Advances and Southwestern
Journal of the Academy of Marketing Science, and the Journal Marketing Association Fellow and an Academy of
of Advertising. Marketing Science Distinguished Fellow. He was the
Dr. Pride is a member of the American Marketing vice president of publications and is president for the
Association, Academy of Marketing Science, Society for Academy of Marketing Science. He was the first recipient
Marketing Advances, and the Marketing Management of the Marketing Education Innovation Award from the
Association. He has received the Marketing Fellow Award Marketing Management Association. He received a Lifetime
from the Society for Marketing Advances and the Marketing Achievement Award from the Macromarketing Society and
Innovation Award from the Marketing Management a special award for service to doctoral students from the
Association. Both of these are lifetime achievement awards. Southeast Doctoral Consortium. He received the Harold
Berkman Lifetime Service Award from the Academy of
Marketing Science and, more recently, the Cutco/Vector
O.C. Ferrell Distinguished Marketing Educator Award.
Auburn University Dr. Ferrell is the co-author of 20 books and more than
100 published articles and papers. His articles have been
published in the Journal of Marketing Research, the Journal
O. C. Ferrell is The James T. Pursell Sr. Eminent Scholar in of Marketing, the Journal of Business Ethics, the Journal of
Ethics and Director of the Center for Ethical Organizational Business Research, the Journal of the Academy of Marketing
Cultures, Auburn University. He served as the Distinguished Science, AMS Review, and the Journal of Public Policy &
Professor of Leadership and Ethics at Belmont University Marketing, as well as other journals.
xxvii
PART
1 Marketing Strategy and Customer

Relationships
1 An Overview of Strategic Marketing

2 Planning, Implementing, and Evaluating
Marketing Strategies
PART 1 introduces the field of marketing and offers a broad

perspective from which to explore and analyze various
components of the marketing discipline.
CHAPTER 1 defines marketing and explores some key concepts,
including customers and target markets, the marketing mix, rela-
tionship marketing, the marketing concept, and value.
CHAPTER 2 provides an overview of strategic marketing issues,
such as the effect of organizational resources and opportunities
on the planning process; the role of the mission statement;
corporate, business-unit, and marketing strategies; and the
creation of the marketing plan.
PEOPLEIMAGES/GETTY IMAGES
MONKEY BUSINESS IMAGES/SHUTTERSTOCK.COM
CHAPTER
1 An Overview of Strategic
Marketing
LEARNING OBJECTIVES
1-1 Define marketing. 1-5 Summarize the marketing concept.
1-2
Explain the different variables of the 1-6 Identify the importance of building customer
marketing mix. relationships.
1-3 Describe how marketing creates value. 1-7 Explain why marketing is important to our global
1-4 Briefly explore the marketing environment. economy.
M A R K E T I N G
INSIGH TS
JERAMEY LENDE/SHUTTERSTOCK.COM
Amazon Sells Everything from A to Z
Jeff Bezos came up with the idea for an online book- believes it can create even more value for more cus-
store after hearing about the rapid growth of web tomers. For instance, Amazon offers a reduced Prime
usage. Before Google or eBay came on the scene, membership to consumers with an Electronic Benefit
Bezos quit his job in finance and founded Amazon in Transfer (EBT) card to attract low-income customers.
1994. When books proved to be a successful product, With its vast network of partnerships and cost efficien-
he asked some of his customers what else he should cies, Amazon often uses price as a competitive tool.
sell on the site. The response was overwhelming. The company has also set its sights on Generation Z
Bezos realized Amazon met a customer need that was with a feature that allows users to create supervised
greater than books: convenience. accounts for their teenagers so they can make parent-
Today, Amazon sells everything from toys and approved purchases.
clothing to ebooks and groceries. Amazon’s market In another move to become an indispensable part
orientation has led to its growth beyond retail to of every household, Amazon has continued to evolve
content as consumer behavior on the web continues the Amazon Echo, a voice-controlled digital assistant.
to evolve. The site is now the source of original, Through the Echo, users can check the weather, get
award-winning shows such as Transparent as part of news alerts, play games, control connected smart
its Amazon Prime offering. Bezos attributes Amazon’s home devices, and more. Prime users, roughly two-
success to its focus on the customer instead of the thirds of U.S. households, can also order prime-eligible
competition. For example, in order to maintain and items. Additionally, Amazon is transforming grocery
build an exchange relationship with its customers, shopping with its recent purchase of Whole Foods.
Amazon offers an A-to-z Guarantee that protects The company plans to integrate various aspects of
against damaged goods and late deliveries. Whole Foods, Prime Now two-hour delivery, and
Amazon provides products that satisfy customer AmazonFresh grocery delivery to explore new ways
needs; and, despite its immense success, the company to meet customer needs.1
4 PART 1: Marketing Strategy and Customer Relationships
Like all organizations, Amazon strives to provide products that customers want, communicate
useful information about them to excite interest, make them available when and where cus-
tomers want to buy them, and price them appropriately. Even if an organization does all these
things well, however, competition from marketers of similar products, economic conditions,
and other factors can affect the company’s success. Such factors influence the decisions that
all organizations must make in strategic marketing.
This chapter introduces the strategic marketing concepts and decisions covered throughout
the text. First, we develop a definition of marketing and explore each element of the definition
in detail. Next, we explore the importance of value-driven marketing. We also introduce the
marketing concept and consider several issues associated with its implementation. Addition-
ally, we take a look at the management of customer relationships and relationship marketing.
Finally, we examine the importance of marketing in a global society.

Define marketing. 1-1 DEFINING MARKETING
marketing The process of creat-
If you ask several people what marketing is, you are likely to hear a variety of descriptions.
ing, distributing, promoting, and
pricing goods, services, and ideas
Although many people think marketing is advertising or selling, marketing is much more
to facilitate satisfying exchange complex than most people realize. In this book, we define marketing as the process of
relationships with customers and creating, distributing, promoting, and pricing goods, services, and ideas to facilitate sat-
to develop and maintain favorable isfying exchange relationships with customers and to develop and maintain favorable
relationships with stakeholders in relationships with stakeholders in a dynamic environment. Our definition is consistent with
a dynamic environment that of the American Marketing Association (AMA), which defines marketing as “the
activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and soci-
ety at large.”2
The essence of marketing is to develop satisfying
exchanges from which both customers and marketers
benefit. The customer expects to gain a reward or benefit
greater than the costs incurred in a marketing transaction.
The marketer expects to gain something of value in return,
generally the price charged for the product. Through
buyer–seller interaction, a customer develops expectations
about the seller’s future behavior. To fulfill these expecta-
tions, the marketer must deliver on promises made. Over
time, this interaction results in relationships between the
two parties. Fast-food restaurants such as Wendy’s and
Chick-fil-A depend on repeat purchases from satisfied
customers—many often live or work a few miles from
these restaurants—whereas customer expectations revolve
around tasty food, value, and dependable service.
The marketing-mix variables—which include prod-
uct, distribution, promotion, and price—are often viewed
as controllable because they can be modified. However,
there are limits to how much marketing managers can alter
them. Competitive forces, economic conditions, political
forces, laws and regulations, technology, and sociocul-
SOURCE: LIFEPROOF.COM
tural forces shape the decision-making environment for

controllable variables. While some products are tangible
goods, services are also products and represent a signifi-
cant part of the economy. Entire industries such as health
Appealing to Target Markets care, entertainment, sports, hospitality, and tourism pro-
LifeProof appeals to consumers with an active lifestyle. vide services.
CHAPTER 1: An Overview of Strategic Marketing 5
1-1a Marketing Focuses on Customers

As the purchasers of the products that organizations develop, distribute, promote, and
price, customers are the focal point of all marketing activities (see Figure 1.1). Organiza-
tions have to define their products not as what the companies make or produce but as what
they do to satisfy customers. As the advertisement indicates, LifeProof phone cases
are designed for consumers that want a durable case for an active lifestyle. The case
provides an advantage to consumers that want a dropproof, dirtproof, and snowproof
phone case.
Organizations generally focus their marketing efforts on a specific group of customers,
called a target market. Marketing managers may define a target market as a vast number
of people or a relatively small group. For instance, marketers are increasingly interested
in Hispanic consumers as they constitute a population of more than 59 million and buying
power of more than $1.5 trillion.3 Within the last decade, Hispanics made up more than
half of the population gains in the United States. As a result, marketers are developing new
ways to reach this demographic. For instance, online retail giant Amazon includes Spanish
language options to its site. 4 Some companies target multiple markets with different
products, distribution systems, promotions, and prices for each one while others focus on customers The purchasers of
a smaller niche market. Comcast, for example, offers solutions for consumers as well as organizations’ products; the focal
small businesses and larger enterprises. While consumer-oriented products and ser- point of all marketing activities
vices make up the majority of its business, business services is their fastest growing seg- target market A specific group
ment.5 Home Depot, on the other hand, targets a number of markets with thousands of of customers on whom an orga-
items. It provides home improvement products for both household consumers and nization focuses its marketing
contractors. efforts
Figure 1.1 Components of Strategic Marketing

Explain the different variables 1-2 MARKETING DEALS WITH PRODUCTS,
of the marketing mix. DISTRIBUTION, PROMOTION, AND PRICE
Marketing is more than simply advertising or selling a product; it involves developing and
managing a product that will satisfy customer needs. It focuses on communicating
availability in the right place and at the right price. It also requires promotion, communicat-
ing information that helps customers learn about the product and determine if the product
will satisfy their needs. These activities are planned, organized, implemented, and controlled
to meet the needs of customers within the target market. Marketers refer to these activities—
product, distribution, promotion, and pricing—as the marketing mix because they decide
what type of each variable to use and how to coordinate the variables. Marketing cre-
marketing mix Four marketing
activities—product, distribution,
ates value through the marketing mix. A primary goal of a marketing manager is to create
promotion, and pricing—that and maintain the right mix of these variables to satisfy customers’ needs for a general
a firm can control to meet the product type. Amazon is well-known for its implementation of the marketing mix. It
needs of customers within its routinely engages in research and development to create new products such as its
target market digital assistant, Echo. It promotes its products through advertising, social media, and
media events. Best Buy and other retailers pro-
vide these products at a premium price to convey
their quality and effectiveness. Note in Figure 1.1
that the marketing mix is built around the
customer.
Marketing managers strive to develop a
marketing mix that matches the needs of customers
in the target market. Clothing retailer lululemon
athletica, for example, targets shoppers with an
active lifestyle with yoga, running, and fitness
clothing and accessories. The company distributes
these products through stores in shopping malls at
premium prices and supports them with promotional
activities such as advertising and social media.
Additionally, marketing managers must constantly
monitor the competition and adapt their products,
distribution, promotion, and pricing to foster long-
term success.
Before marketers can develop an appropriate
marketing mix, they must collect in-depth, up-to-
date information about customer needs. Such infor-
mation might include data about the age, income,
ethnicity, gender, and educational level of people in
the target market, their preferences for product fea-
tures, their attitudes toward competitors’ products,
and the frequency with which they use the product.
SAP operates in the digital marketplace and moni-
tors every consumer’s needs, preferences, and reac-
tions to adjust its marketing mix. Armed with market
information, marketing managers are better able to
SOURCE: SAP
develop a marketing mix that satisfies a specific tar-

get market.
Promotional Activities Let’s look more closely at the decisions
This SAP advertisement informs the audience of the ways in which its service can and activities related to each marketing-mix
help businesses learn about consumers. variable.
1-2a The Product Variable

Successful marketing efforts result in products that become part of everyday life. Consider the
satisfaction customers have had over the years from Pepsi, Mastercard credit cards, Folgers
coffee, and professional sports such as baseball, basketball, hockey, and football. The product
variable of the marketing mix deals with researching customers’ needs and wants and designing
a product that satisfies them. A product could be considered a bundle of satisfaction that pro-
vides value to the consumer. A product can be a good, a service, or an idea. A good is a physical
entity you can touch. Marc Jacobs sunglasses, Subaru hatchbacks, and Beats by Dre head-
phones are all examples of products. In the advertisement on the left, Breyers highlights its
creamy Gelato Indulgences as an alternative to ice cream. Breyers Gelato Indulgences is an
example of a tangible good that consumers can enjoy. Consumers can select from multiple
flavors with sauces and gourmet toppings. In contrast, the advertisement on the right promotes
the BigCommerce e-commerce software and shopping cart platform to business owners as a
way to sell products online. The platform includes beautiful, responsive themes to help
e-commerce retailers grow their businesses. This software is an example of an intangible prod-
uct. A service is the application of human and mechanical efforts to people or objects to provide
intangible benefits to customers. Air travel, education, insurance, banking, health care, and day
care are examples of services. Ideas include concepts, philosophies, images, and issues. For
instance, a marriage counselor, for a fee, gives spouses ideas to help improve their relationship. product A good, a service, or
Other marketers of ideas include political parties, churches, and animal protection groups. an idea
SOURCE: BREYERS GELATO
SOURCE: BIGCOMMERCE
Types of Products
Breyers Gelato Indulgences are tangible goods that consumers enjoy for pleasure. Online software, such as the BigCommerce e-commerce
software and shopping cart platform, represents intangible products that provide business owners a way to retail products online.
The product variable also involves creating or modifying brand names and packaging and
may include decisions regarding warranty and repair services. For example, Icelandic Provi-
sions introduced paper-wrapped cups for its skyr, a yogurt-like dairy product, because they
can be recycled easier than printed shrink-sleeved cups.6 The company adapted its product’s
packaging to provide a healthier and “greener” offering.
Product variable decisions and related activities are important because they directly relate to
customers’ needs and wants. Apple continues to upgrade its iPhone using different model identi-
fiers such as 7, 8, and X to signal new modifications. To maintain an assortment of products that
helps an organization achieve its goals, marketers must develop new products, modify existing
ones, and eliminate those that no longer satisfy enough buyers or that yield unacceptable profits.
1-2b The Distribution Variable

To satisfy customers, products must be available at the right time and in appropriate locations.
Subway, for example, locates its restaurants not only in strip malls but also inside Walmarts,
Home Depots, laundromats, churches, and hospitals, as well as inside Goodwill stores, car
dealerships, and appliance stores. There are more than 44,800 Subways in 112 different coun-
tries, surpassing McDonald’s as the world’s largest chain.7
In dealing with the distribution variable, a marketing manager makes products available
in the quantities desired to as many target-market customers as possible, keeping total inven-
tory, transportation, and storage costs as efficient as possible. A marketing manager also may
select and motivate intermediaries (wholesalers and retailers), establish and maintain inventory
control procedures, and develop and manage transportation and storage systems.
Supply chain management (SCM) involves maintaining a flow of products through physi-
cal distribution activities. This includes acquiring resources, inventory, and the interlinked
networks that make products available to customers through purchasing, logistics, and opera-
tions. SCM has become very important to the success of online marketers. Consider Amazon’s
distribution system that is now integrating its own warehousing and transportation to deliver
products—sometimes the same day they are ordered. Companies now can make their products
available throughout the world without maintaining facilities in each country. For instance,
Pandora, Spotify, and Apple Music have benefited from the ability to stream music over the
internet. Customers can listen to music for free with commercial interruptions, or they can pay
to upgrade to listen without commercials. Pandora has 73.3 million active users, while Spotify
has 140 million, and Apple Music has 1 million.8
MRMOHOCK/SHUTTERSTOCK.COM
Distribution
Apple Music uses digital
distribution to allow consumers
to stream ad-free music online
or off.
1-2c The Promotion Variable

The promotion variable relates to activities used to inform and persuade to create a desired
response. Promotion can increase public awareness of the organization and of new or existing
products. It can help create a direct response by including a link to access a website or order
a product. Consider Geico’s television and radio advertising that encourages people to spend
15 minutes “to save 15% or more on car insurance.” Geico’s tagline is meant to elicit a direct
response from consumers, encouraging them to take 15 minutes to make a sales call to a Geico
representative.
Promotional activities can inform customers about product features. It is a mistake to think
promotion just involves advertising. Personal selling is needed for almost every type of prod-
uct and provides the revenue that the firm must have to be successful. Sales promotions such
as coupons and other incentives such as online discount codes keep sales dynamic. Publicity
that provides information, often in the mass media, is another form of promotion that firms try
to manage. The promotion mix focuses integrated marketing communication to inform and
persuade consumers to purchase a product.9
Promotion can also help to sustain interest in established products that have been avail-
able for decades, such as M&M’S or Tide detergent. Many companies are using the internet
to communicate information about themselves and their products. L’Oréal operates Makeup.
com, a beauty website that discusses beauty trends and shares makeup tutorials using products
from L’Oréal brands like Urban Decay, Maybelline, and NYX.10
1-2d The Price Variable

The price variable relates to decisions and actions associated with pricing objectives and
policies and actual product prices. Price is a critical component of the marketing mix because
customers are concerned about the value obtained in an exchange. Price is often used as a
competitive tool, and intense price competition sometimes leads to price wars. Higher prices
can be used competitively to establish a product’s premium image. Rolex, for example, has
an image of high quality and high price that has given it significant status. Other companies
are skilled at providing products at prices lower than others, for example, global discount
supermarket chain Aldi. Amazon and Walmart use a vast network of partnerships and cost
efficiencies to provide products at low prices. Many retailers, such as Macy’s and Nordstrom,
have had to close stores because of the inability to provide lower prices.
The marketing-mix variables are often viewed as controllable because they can be modi-
fied. However, there are limits to how much marketing managers can alter them. Economic
conditions, competitive structure, and government regulations may prevent a manager from
adjusting prices frequently or significantly. Making changes in the size, shape, and design
of most tangible goods is expensive; therefore, such product features cannot be altered very
often. In addition, promotional campaigns and methods used to distribute products ordinar-
ily cannot be rewritten or revamped overnight. But dramatic changes in price can be made
any time. This makes price the most flexible variable in the marketing mix.

1-3 MARKETING CREATES VALUE Describe how marketing
creates value.
Value is an important element of managing long-term customer relationships and implementing
the marketing concept. We view value as a customer’s subjective assessment of benefits relative
to costs in determining the worth of a product (customer value = customer benefits 2 customer
costs). Consumers develop a concept of value through the integration of their perceptions of
product quality and financial sacrifice.11 From a company’s perspective, there is a trade-off
between increasing the value offered to a customer and maximizing the profits from a
transaction.12 value A customer’s subjective
Customer benefits include anything a buyer receives in an exchange. Hotels and motels, for assessment of benefits relative to
example, basically provide a room with a bed and bathroom, but each firm provides a different costs in determining the worth of
level of service, amenities, and atmosphere to satisfy its guests. Motel 6 offers the minimum a product
NORTHFOTO/SHUTTERSTOCK.COM
Value-Driven Marketing
Nordstrom creates value for
customers with its liberal return
policies and strong customer
service.
services necessary to maintain a quality, efficient, low-price overnight accommodation. In

contrast, The Ritz-Carlton provides every imaginable service a guest might desire. The hotel
even allows its staff members to spend up to $2,000 to settle customer complaints.13 Customers
judge which type of accommodation offers the best value according to the benefits they desire
and their willingness and ability to pay for the costs associated with the benefits.
Customer costs include anything a buyer must give up to obtain the benefits the product
provides. The most obvious cost is the monetary price of the product, but nonmonetary costs
can be equally important in a customer’s determination of value. Two nonmonetary costs are
the time and effort customers expend to find and purchase desired products. To reduce time
and effort, a company can increase product availability, thereby making it more convenient
for buyers to purchase the firm’s products. Another nonmonetary cost is risk, which can be
reduced by offering good basic warranties or extended warranties for an additional charge.14
Another risk-reduction strategy is the offer of a 100 percent satisfaction guarantee. This strat-
egy is increasingly popular in today’s internet shopping environment. Bath & Body Works,
for example, uses such a guarantee to reduce the risk involved in ordering merchandise from
its stores and website.
The processes which people use to determine the value of a product may differ widely. All
of us tend to get a feel for the worth of products based on our own expectations and previous
experience. We can, for example, compare the value of tires, batteries, and computers directly
with the value of competing products. We evaluate movies, sporting events, and performances
by entertainers on the more subjective basis of personal preferences and emotions. For most
purchases, we do not consciously try to calculate the associated benefits and costs. It becomes
an instinctive feeling that General Mills’ Cheerios is a good value or that McDonald’s is a good
place to take children for a quick lunch. The purchase of an automobile or a mountain bike
may have emotional components, but more conscious decision making also may figure in the
process of determining value.
In developing marketing activities, it is important to recognize that customers receive ben-
efits based on their experiences. For example, many computer buyers consider services such
as fast delivery, ease of installation, technical advice, and training assistance to be important
elements of the product. Each marketing activity has its own benefits and costs and must be
adapted for its contribution to value.15 For example, hotels and restaurants are based on expe-
rience and atmosphere. Hilton hotels maintain a high standard of service from the minute a
consumer walks in the lobby. Customers also derive benefits from the act of shopping and
selecting products. These benefits can be affected by the atmosphere or environment of a store,
such as Red Lobster’s nautical/seafood theme. Even the ease of navigating a website can have
a tremendous impact on perceived value.
The marketing mix can be used to enhance perceptions of value. A product that dem-
onstrates value usually has a feature or an enhancement that provides benefits. Promotional
activities can also help to create image and prestige characteristics that customers consider in
their assessment of a product’s value. In some cases, value may be perceived simply as the
lowest price. Many customers may not care about the quality of the paper towels they buy; they
simply want the cheapest ones for use in cleaning up spills because they plan to throw them in
the trash anyway. On the other hand, more people are looking for the fastest, most convenient
way to achieve a goal and therefore become insensitive to pricing. For example, many busy cus-
tomers are buying more prepared meals in supermarkets to take home and serve quickly, even
though these meals cost considerably more than meals prepared from scratch. In such cases
the products with the greatest convenience may be perceived as having the greatest value. The
availability or distribution of products also can enhance their value. Taco Bell wants to have
its Mexican-inspired fast-food products available at any time and any place people are think-
ing about consuming food. It therefore has introduced Taco Bell products into supermarkets,
vending machines, college campuses, and other convenient locations. Thus, the development
of an effective marketing strategy requires understanding the needs and desires of customers
and designing a marketing mix to satisfy them and provide the value they want.
1-3a Marketing Builds Relationships with Customers

and Other Stakeholders
Marketing also creates value through the building of stakeholder relationships. Individuals and
organizations engage in marketing to facilitate exchanges, the provision or transfer of goods,
services, or ideas in return for something of value. Any product (good, service, or even idea)
may be involved in a marketing exchange. We assume only that individuals and organizations
expect to gain a reward in excess of the costs incurred. exchanges The provision or
For an exchange to take place, four conditions must exist. First, two or more individuals, transfer of goods, services, or
groups, or organizations must participate, and each must possess something of value that ideas in return for something of
the other party desires. Second, the exchange should provide a benefit or satisfaction to both value
MARKUS MAINKA/SHUTTERSTOCK.COM
Satisfying Stakeholder
Needs
Southwest Airlines continues to
excel at offering services that
satisfy customers, generate jobs,
and create shareholder wealth.
Figure 1.2 Exchange between Buyer and Seller
Something of value
Money, credit, labor, goods
Buyer Seller
Something of value
Goods, services, ideas
parties involved in the transaction. Third, each party must have confidence in the promise of
the “something of value” held by the other. If you go to a Taylor Swift concert, for example,
you go with the expectation of a great performance. Finally, to build trust, the parties to the
exchange must meet expectations.
Figure 1.2 depicts the exchange process. The arrows indicate that the parties communicate
that each has something of value available to exchange. An exchange will not necessarily
take place just because these conditions exist; marketing activities can occur even without an
actual transaction or sale. You may see an ad for a Samsung refrigerator, for instance, but you
might never buy the luxury appliance. When an exchange occurs, products are traded for other
products or for financial resources.
Marketing activities should attempt to create and maintain satisfying exchange relation-
ships. To maintain an exchange relationship, buyers must be satisfied with the good, service, or
idea obtained, and sellers must be satisfied with the financial reward or something else of value
received. The customer relationship often endures over an extended time period, and repeat
purchases are critical for the firm. A dissatisfied customer who lacks trust in the relationship
often searches for alternative organizations or products.
Marketers are concerned with building and maintaining relationships not only with custom-
ers but also with relevant stakeholders. Stakeholders include those constituents who have a
“stake,” or claim, in some aspect of a company’s products, operations, markets, industry, and
stakeholders Constituents who
outcomes; these include customers, employees, investors and shareholders, suppliers, govern-
have a “stake,” or claim, in some
ments, communities, competitors, and many others. While engaging in marketing activities,
aspect of a company’s products,
operations, markets, industry, the firm should be proactive and responsive to stakeholder concerns. This engagement has been
and outcomes found to increase financial performance.16 Therefore, developing and maintaining favorable
relations with stakeholders is crucial to the long-term growth of an organization and its prod-
marketing environment The
competitive, economic, political, ucts. For example, well-satisfied employees directly improve customer satisfaction, and
legal and regulatory, technologi- dependable suppliers are necessary to make quality products. Communities can be positive
cal, and sociocultural forces that contributors to a firm’s reputation, and in turn these communities provide opportunities for a
surround the customer and affect firm to make social and economic contributions. Customers and competitors are often consid-
the marketing mix ered to be core stakeholders in developing a marketing strategy.17

Briefly explore the 1-4 MARKETING OCCURS IN A DYNAMIC
marketing environment. ENVIRONMENT
Marketing activities do not take place in a vacuum. The marketing environment, which
includes competitive, economic, political, legal and regulatory, technological, and sociocultural
forces, surrounds the customer and affects the marketing mix (see Figure 1.1). The effects of
these forces on buyers and sellers can be dramatic and difficult to predict. Their impact on value
can be extensive as market changes can easily influence how stakeholders perceive certain
products. They can create threats to marketers but also can generate opportunities for new
products and new methods of reaching customers.
The forces of the marketing environment affect a marketer’s ability to facilitate value-
driven marketing exchanges in three general ways. First, they influence customers by affect-
ing their lifestyles, standards of living, and preferences and needs for products. Because a
marketing manager tries to develop and adjust the marketing mix to satisfy customers, effects
of environmental forces on customers also have an indirect impact on marketing-mix com-
ponents. Second, marketing environment forces can determine whether and how a marketing
manager can perform certain marketing activities. Third, environmental forces may shape
a marketing manager’s decisions and actions by influencing buyers’ reactions to the firm’s
marketing mix.
Marketing environment forces can fluctuate quickly and dramatically, which is one
reason why marketing is so interesting and challenging. Because these forces are closely
interrelated, changes in one may cause changes in others. For example, evidence linking
children’s consumption of soft drinks and fast foods to health issues has exposed market-
ers of such products to negative publicity and generated calls for legislation regulating the
sale of soft drinks in public schools. Some companies have responded to these concerns
by voluntarily reformulating products to make them healthier or even introducing new
products. For example, Pepsi reformulated its Diet Pepsi product by replacing the sweet-
ener aspartame with sucralose and acesulfame potassium. Although the Food and Drug
Administration (FDA) has ruled aspartame as safe, many consumers view aspartame as
having health risks. Despite Pepsi’s attempt to appeal to changing consumer preferences,
the initial reactions of Diet Pepsi loyalists after the company reformulated the product
were often negative. Pepsi reintroduced an aspartame-sweetened version, now called Diet
Pepsi Classic, after the backlash.18 Changes in the marketing environment produce uncer-
tainty for marketers and at times hurt marketing efforts, but they also create opportunities.
For example, when oil and gasoline prices increase, consumers shift to potential alterna-
tive sources of transportation including bikes, buses, light rail, trains, carpooling, more
energy-efficient vehicle purchases, or telecommuting when possible. When those prices
decrease, consumers purchase more SUVs, drive more, and may have more money for
other purchases.
Marketers who are alert to changes in environmental forces not only can adjust to and
influence these changes but can also capitalize on the opportunities such changes provide.
Marketing-mix variables—product, distribution, promotion, and price—are factors over which
an organization has control; the forces of the environment, however, are subject to far less con-
trol. Even though marketers know that they cannot predict changes in the marketing environ-
ment with certainty, they must nevertheless plan for them. Because these environmental forces
have such a profound effect on marketing activities, we explore each of them in considerable
depth in Chapter 3.

1-5 UNDERSTANDING THE MARKETING Summarize the marketing
CONCEPT concept.
Firms frequently fail to attract customers with what they have to offer because they define their
business as “making a product” rather than as “helping potential customers satisfy their needs
and wants.” Drones provide an example of a product that is satisfying many needs and wants
from being a toy or recreational product to commercial applications. The marketing concept is
marketing concept A mana-
based on the philosophy that consumers purchase the satisfaction and value they derive from
gerial philosophy that an orga-
a product not the product itself. Companies that do not pursue such opportunities struggle to nization should try to satisfy
compete. customers’ needs through a
According to the marketing concept, an organization should try to provide products that coordinated set of activities that
satisfy customers’ needs through a coordinated set of activities that also allows the organization also allows the organization to
to achieve its goals. Customer satisfaction is the major focus of the marketing concept. achieve its goals
To implement the marketing concept, an organiza-

tion strives to determine what buyers want and uses
this information to develop satisfying products. It
focuses on customer analysis, competitor analysis,
and integration of the firm’s resources to provide
customer value and satisfaction, as well as to gener-
ate long-term profits.19 For example, Kellogg’s
knows its customers want a fast breakfast. As the
advertisement suggests, Kellogg’s Nutri-Grain Soft
Baked Breakfast Bars are ideal for a wholesome
breakfast that won’t slow customers down. The
breakfast bars, made with whole grains and real
fruit, satisfy consumers’ desires for a quick and
healthy breakfast option.
Howard Schultz, founder and former CEO of
Starbucks, demonstrated the company’s grasp on the
marketing concept by explaining that Starbucks is
not a coffee business that serves people, but rather
a “people business serving coffee.” Starbucks’ lead-
ership sees the company as being “in the business
of humanity,” emphasizing the fact that Starbucks
is not only concerned about customers but society
as well.20 Thus, the marketing concept emphasizes
that marketing begins and ends with customers.
Research has found a positive association between
customer satisfaction and shareholder value, and
high levels of customer satisfaction also tend to
SOURCE: KELLOGG’S
attract and retain high-quality employees and

managers.21
The marketing concept is not a second defini-
The Marketing Concept tion of marketing. It is a management philosophy
Kellogg’s introduced the Nutri-Grain Soft Baked Breakfast Bars to satisfy guiding an organization’s overall activities. This
consumers’ desires for a quick and easy breakfast. philosophy affects all organizational activities, not
just marketing. Production, finance, accounting,
human resources, and marketing departments must work together. For example, at Procter &
Gamble the marketing function coordinates research and development, distribution, and
resource deployment to focus on providing consumer products for households.
The marketing concept is a strategic concept to achieve objectives. A firm that adopts
the marketing concept must satisfy not only its customers’ objectives but also its own,
or it will not stay in business long. The overall objectives of a business usually relate to
profits, market share, sales, or probably a combination of all three. The marketing concept
stresses that an organization can best achieve these objectives by being customer-oriented.
Thus, implementing the marketing concept should benefit the organization as well as its
customers.
It is important for marketers to consider not only their current buyers’ needs but also
the long-term needs of society. Striving to satisfy customers’ desires by sacrificing society’s
long-term welfare is unacceptable. For instance, there is significant demand for large SUVs
and trucks. However, environmentalists and federal regulators are challenging automakers to
produce more fuel-efficient vehicles with increased miles-per-gallon standards. The question
that remains is whether Americans are willing to give up their spacious SUVs for the good
of the environment. Automakers are addressing environmental concerns with smaller, more
fuel-efficient SUVs. Demand for these SUVs shows that these vehicles are not going away
anytime soon. So, implementing the marketing concept and meeting the needs of society is a
balancing act.
DISRUPTIVE MARKETING
Zappos’ Customer Service Strategy Is a Perfect Fit
In 2000, Tony Hsieh became the CEO of Zappos, the many retailers do not. It also allows customers to
online shoe retailer, at age 26. Hsieh saw an opportu- feel confident when shopping with the company as
nity to create value for customers by using the com- they are able to return unwanted products easily. The
pany’s resources to provide a stellar customer service company has disrupted the way consumers purchase
experience to shoppers. Although the company ini- shoes from department stores and specialty shoe
tially struggled to make a profit, things took a positive stores.
turn in 2007 after the company reached annual sales Zappos’ customer relationship management
of $840 million, and in 2009 Amazon acquired the strategy focuses on building customer relationships
company for $1.2 billion. through human interaction. For example, if a cus-
Zappos strives to make the shopping experi- tomer experiences a problem with an order or has a
ence easy and enjoyable. It provides a 100 percent question about a product, Zappos responds honestly,
satisfaction guaranteed return policy to build and authentically, and in a timely manner. The company
maintain strong customer relationships. Recogniz- recently used several of its customer success stories
ing the hesitancy of many shoppers to purchase in a series of ads that highlight Zappos’ ability to sat-
shoes online, Zappos encourages customers to isfy its customers. With this type of customer service,
order several styles and return items if needed. This the company builds satisfying, long-term customer
strategy may seem expensive but tends to work in relationships and increases customer lifetime value as
Zappos’ favor and satisfies a customer’s needs that happy customers make repeat purchases.a
1-5a Evolution of the Marketing Concept

The marketing concept may seem like an obvious approach to running a business. Yet,
while satisfied consumers are necessary for business success, historically not all firms were
successful in implementing this concept. The evolution of marketing has gone through
three time periods, including production, sales, and market orientation. While this is an
oversimplification, these frameworks help to understand marketing over time. There have
always been companies that embraced the marketing concept and focused on the interests
of consumers.
The Production Orientation

During the second half of the 19th century, the Industrial Revolution was in full swing in
the United States. Electricity, rail transportation, division of labor, assembly lines, and mass
production made it possible to produce goods more efficiently. With new technology and new
ways of using labor, products poured into the marketplace, where demand for manufactured
goods was strong. Although mass markets were evolving, firms were developing the ability to
produce more products, and competition was becoming more intense.
The Sales Orientation

While sales have always been needed to make a profit, during the first half of the 20th cen-
tury competition increased and businesses realized that they would have to focus more on
selling products to many buyers. Businesses viewed sales as the major means of increasing
profits, and this period came to have a sales orientation. Businesspeople believed that the most
important marketing activities were personal selling, advertising, and distribution. Today,
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Suppressing Mormonism.
Polygamy, justly denounced as “the true relic of barbarism” while

slavery existed, has ever since the settlement of the Mormons in
Utah, been one of the vexed questions in American politics. Laws
passed for its suppression have proved, thus far, unavailing; troops
could not crush it out, or did not at a time when battles were fought
and won; United States Courts were powerless where juries could not
be found to convict. Latterly a new and promising effort has been
made for its suppression. This was begun in the Senate in the session
of 1882. On the 16th of February a vote was taken by sections on
Senator Edmunds’ bill, which like the law of 1862 is penal in its
provisions, but directly aimed against the crime of polygamy.
President Arthur signed the Edmunds anti-polygamy bill on the
23d of March, 1882.
Delegate Cannon of Utah, was on the floor of the Senate
electioneering against the bill, and he pled with some success, for
several Democratic Senators made speeches against it. The
Republicans were unanimously for the bill, and the Democrats were
not solidly against it, though the general tenor of the debate on this
side was against it.
Senator Vest (Democrat) of Missouri, said that never in the
darkest days of the rule of the Tudors and Stuarts had any measure
been advocated which came so near a bill of attainder as this one. It
was monstrous to contend that the people of the United States were
at the mercy of Congress without any appeal. If this bill passed it
would establish a precedent that would come home to plague us for
all time to come. The pressure against polygamy to-day might exist
to-morrow against any church, institution or class in this broad land,
and when the crested waves of prejudice and passion mounted high
they would be told that the Congress of the United States had
trampled upon the Constitution. In conclusion, he said: “I am
prepared for the abuse and calumny that will follow any man who
dares to criticise any bill against polygamy, and yet, if my official life
had to terminate to-morrow, I would not give my vote for the
unconstitutional principles contained in this bill.” Other speeches
were made by Messrs. Morgan, Brown, Jones, of Florida, Saulsbury,
Call, Pendleton, Sherman, and Lamar, and the debate was closed by
Mr. Edmunds in an eloquent fifteen-minutes’ speech, in which he
carefully reviewed and controverted the objections urged against the
bill of the committee.
He showed great anxiety to have the measure disposed of at once
and met a request from the Democratic side for a postponement till
other features should be embodied in the bills with the remark that
this was the policy that had hitherto proven a hindrance to
legislation on this subject and that he was tired of it. In the bill as
amended the following section provoked more opposition than any
other, although the Senators refrained from making any particular
mention of it: “That if any male person in a Territory or other place
over which the United States have exclusive jurisdiction hereafter
cohabits with more than one woman he shall be deemed guilty of a
misdemeanor, and on conviction thereof he shall be punished by a
fine of not more than $300 or by imprisonment for not more than six
months, or by both said punishments in the discretion of the court.”
The bill passed viva voce vote after a re-arrangement of its sections,
one of the changes being that not more than three of the
commissioners shall be members of the same party. The fact that the
yeas and nays were not called, shows that there is no general desire
on either side to make the bill a partisan measure.
The Edmunds Bill passed the House March 14, 1882, without
material amendment, the Republican majority, refusing to allow the
time asked by the Democrats for discussion. The vote was 193 for to
only 45 against, all of the negative votes being Democratic save one,
that of Jones, Greenbacker from Texas.
The only question was whether the bill, as passed by the Senate,
would accomplish that object, and whether certain provisions of this
bill did not provide a remedy which was worse than the disease.
Many Democrats thought that the precedent of interfering with the
right of suffrage at the polls, when the voter had not been tried and
convicted of any crime, was so dangerous that they could not bring
themselves to vote for the measure. Among these democrats were
Belmont and Hewitt, of New York, and a number of others equally
prominent. But they all professed their readiness to vote for any
measure which would affect the abolition of polygamy without
impairing the fundamental rights of citizens in other parts of the
country.
THE TEXT OF THE BILL.
Be it enacted, &c., That section 5,352 of the Revised Statutes of the

United States be, and the same is hereby amended so as to read as
follows, namely:
“Every person who has a husband or wife living who, in a Territory
or other place over which the United States have exclusive
jurisdiction, hereafter marries another, whether married or single,
and any man who hereafter simultaneously, or on the same day,
marries more than one woman; in a Territory or other place over
which the United States has exclusive jurisdiction, is guilty of
polygamy, and shall be punished by a fine of not more than $500
and by imprisonment for a term of not more than five years; but this
section shall not extend to any person by reason of any former
marriage whose husband or wife by such marriage shall have been
absent for five successive years, and is not known to such person to
be living, and is believed by such person to be dead, nor to any
person by reason of any former marriage which shall have been
dissolved by a valid decree of a competent court, nor to any person
by reason of any former marriage which shall have been pronounced
void by a valid decree of a competent court, on the ground of nullity
of the marriage contract.”
Sec. 2. That the foregoing provisions shall not affect the
prosecution or punishment of any offence already committed against
the section amended by the first section of this act.
Sec. 3. That if any male person, in a Territory or other place over
which the United States have exclusive jurisdiction, hereafter
cohabits with more than one woman, he shall be deemed guilty of a
misdemeanor, and on conviction thereof shall be punished by a fine
of not more than $300, or by imprisonment for not more than six
months, or by both said punishments in the discretion of the court.
Sec. 4. That counts for any or all of the offences named in sections
1 and 3 of this act may be joined in the same information or
indictment.
Sec. 5. That in any prosecution for bigamy, polygamy or unlawful
cohabitation under any statute of the United States, it shall be
sufficient cause of challenge to any person drawn or summoned as a
juryman or talesman, first, that he is or has been living in the
practice of bigamy, polygamy, or unlawful cohabitation with more
than one woman, or that he is or has been guilty of an offence
punishable by either of the foregoing sections or by section 5352 of
the Revised Statutes of the United States or the act of July 1, 1862,
entitled “An act to punish and prevent the practice of polygamy in
the Territories of the United States and other places, and
disapproving and annulling certain acts of the Legislative Assembly
of the Territory of Utah;” or, second, that he believes it right for a
man to have more than one living and undivorced wife at the same
time, or to live in the practice of cohabiting with more than one
woman, and any person appearing or offered as a juror or talesman
and challenged on either of the foregoing grounds may be questioned
on his oath as to the existence of any such cause of challenge, and
other evidence may be introduced bearing upon the question raised
by such challenge, and this question shall be tried by the court. But
as to the first ground of challenge before mentioned the person
challenged shall be bound to answer if he shall say upon his oath that
he declines on the ground that his answer may tend to criminate
himself, and if he shall answer to said first ground his answer shall
not be given in evidence in any criminal prosecution against him for
any offense named in sections 1 or 3 of this act, but if he declines to
answer on any ground he shall be rejected as incompetent.
Sec. 6. That the President is hereby authorized to grant amnesty to
such classes of offenders guilty before the passage of this act of
bigamy, polygamy, or unlawful cohabitation before the passage of
this act, on such conditions and under such limitations as he shall
think proper; but no such amnesty shall have effect unless the
conditions thereof shall be complied with.
Sec. 7. That the issue of bigamous or polygamous marriages
known as Mormon marriages, in cases in which such marriages have
been solemnized according to the ceremonies of the Mormon sect, in
any Territory of the United States, and such issue shall have been
born before the 1st day of January, A. D. 1883, are hereby
legitimated.
Sec. 8. That no polygamist, bigamist, or any person cohabiting
with more than one woman, and no woman cohabiting with any of
the persons described as aforesaid in this section, in any Territory or
other place over which the United States have exclusive jurisdiction,
shall be entitled to vote at any election held in any such Territory or
other place, or be eligible for election or appointment to or be
entitled to hold any office or place of public trust, honor or
emolument in, under, or for such Territory or place, or under the
United States.
Sec. 9. That all the registration and election offices of every
description in the Territory of Utah are hereby declared vacant, and
each and every duty relating to the registration of voters, the conduct
of elections, the receiving or rejection of votes, and the canvassing
and returning of the same, and the issuing of certificates or other
evidence of election in said Territory, shall, until other provision be
made by the Legislative Assembly of said Territory as is hereinafter
by this section provided, be performed under the existing laws of the
United States and of said Territory by proper persons, who shall be
appointed to execute such offices and perform such duties by a board
of five persons, to be appointed by the President, by and with the
advice and consent of the Senate, and not more than three of whom
shall be members of one political party, and a majority of whom shall
constitute a quorum. The members of said board so appointed by the
President shall each receive a salary at the rate of $3,000 per annum,
and shall continue in office until the Legislative Assembly of said
Territory shall make provision for filling said offices as herein
authorized. The secretary of the Territory shall be the secretary of
said board, and keep a journal of its proceedings, and attest the
action of said board under this section. The canvass and return of all
the votes at elections in said Territory for members of the Legislative
Assembly thereof shall also be returned to said board, which shall
canvass all such returns and issue certificates of election to those
persons who, being eligible for such election, shall appear to have
been lawfully elected, which certificate shall be the only evidence of
the right of such persons to sit in such Assembly: Provided, That said
board of five persons shall not exclude any person otherwise eligible
to vote from the polls on account of any opinion such person may
entertain on the subject of bigamy or polygamy, nor shall they refuse
to count any such vote on account of the opinion of the person
casting it on the subject of bigamy or polygamy; but each house of
such Assembly, after its organization, shall have power to decide
upon the elections and qualifications of its members. And at or after
the first meeting of said Legislative Assembly whose members shall
have been elected and returned according to the provisions of this
act, said Legislative Assembly may make such laws, conformable to
the organic act of said Territory and not inconsistent with other laws
of the United States, as it shall deem proper concerning the filling of
the offices in said Territory declared vacant by this act.
John R. McBride writing in the February number (1882) of The
International Review, gives an interesting and correct view of the
obstacles which the Mormons have erected against the enforcement
of United States laws in the Territory. It requires acquaintance with
these facts to fully comprehend the difficulties in the way of what
seems to most minds a very plain and easy task. Mr. McBride says:
Their first care on arriving in Utah was to erect a “free and
Independent State,” called the “State of Deseret.” It included in its
nominal limits, not only all of Utah as it now is, but one-half of
California, all of Nevada, part of Colorado, and a large portion of four
other Territories now organized. Brigham Young was elected
Governor, and its departments, legislative and judicial, were fully
organized and put into operation. Its legislative acts were styled
“ordinances,” and when Congress, disregarding the State
organization, instituted a Territorial Government for Utah, the
legislative body chosen by the Mormons adopted the ordinances of
the “State of Deseret.” Many of these are yet on the statute book of
Utah. They show conclusively the domination of the ecclesiastical
idea, and how utterly insignificant in comparison was the power of
the civil authority. They incorporated the Mormon Church into a
body politic and corporate, and by the third section of the act gave it
supreme authority over its members in everything temporal and
spiritual, and assigned as a reason for so doing that it was because
the powers confirmed were in “support of morality and virtue, and
were founded on the revelations of the Lord.” Under this power to
make laws and punish and forgive offenses, to hear and determine
between brethren, the civil law was superseded. The decrees of the
courts of this church, certified under seal, have been examined by the
writer, and he found them exercising a jurisdiction without limit
except that of appeal to the President of the church. That the
assassinations of apostates, the massacres of the Morrisites at Morris
Fort and of the Arkansas emigrants at Mountain Meadows, were all
in pursuance of church decrees, more or less formal, no one
acquainted with the system doubts. This act of incorporation was
passed February 8, 1851, and is found in the latest compilation of
Utah statutes. It is proper also to observe that, for many years after
the erection of the Territorial Government by Congress, the “State of
Deseret” organization was maintained by the Mormons, and collision
was only prevented because Brigham was Governor of both, and
found it unnecessary for his purpose to antagonize either. His church
organization made both a shadow, while that was the substance of all
authority. One of the earliest of their legislative acts was to organise a
Surveyor-General’s Department,[41] and title to land was declared to
be in the persons who held a certificate from that office.[42] Having
instituted their own system of government and taken possession of
the land, and assumed to distribute that in a system of their own, the
next step was to vest certain leading men with the control of the
timbers and waters of the country. By a series of acts granting lands,
waters and timber to individuals, the twelve apostles became the
practical proprietors of the better and more desirable portions of the
country. By an ordinance dated October 4, 1851, there was granted to
Brigham Young the “sole control of City Creek and Cañon for the
sum of five hundred dollars.” By an ordinance dated January 9, 1850,
the “waters of North Mill Creek and the waters of the Cañon next
north” were granted to Heber C. Kimball. On the same day was
granted to George A. Smith the “sole control of the cañons and
timber of the east side of the ‘West Mountains’.” On the 18th of
January, 1851, the North Cottonwood Cañon was granted exclusively
to Williard Richards. On the 15th of January, 1851, the waters of the
“main channel” of Mill Creek were donated to Brigham Young. On
the 9th of December, 1850, there was granted to Ezra T. Benson the
exclusive control of the waters of Twin Springs and Rock Springs, in
Tooelle Valley; and on the 14th of January, 1851, to the same person
was granted the control of all the cañons of the “West Mountain” and
the timber therein. By the ordinance of September 14, 1850, a
“general conference of the Church of Latter Day Saints” was
authorized to elect thirteen men to become a corporation, to be
called the Emigration Company; and to this company, elected
exclusively by the church, was secured and appropriated the two
islands in Salt Lake known as Antelope and Stansberry Islands, to be
under the exclusive control of President Brigham Young. These
examples are given to show that the right of the United States to the
lands of Utah met no recognition by these people. They appropriated
them, not only in a way to make the people slaves, but indicated their
claim of sovereignty as superior to any. Young, Smith, Benson and
Kimball were apostles. Richards was Brigham Young’s counselor. By
an act of December 28, 1855, there was granted to the “University of
the State of Deseret” a tract of land amounting to about five hundred
acres, inside the city limits of Salt Lake City, without any reservation
to the occupants whatever; and everywhere was the authority of the
United States over the country and its soil and people utterly
ignored.
Not satisfied with making the grants referred to, the Legislative
Assembly entered upon a system of municipal incorporations, by
which the fertile lands of the Territory were withdrawn from the
operation of the preëmptive laws of Congress; and thus while they
occupied these without title, non-Mormons were unable to make
settlement on them, and they were thus engrossed to Mormon use.
From a report made by the Commissioner of the General Land Office
to the United States Senate,[43] it appears that the municipal
corporations covered over 400,000 acres of the public lands, and
over 600 square miles of territory. These lands[44] are not subject to
either the Homestead or Preëmption laws, and thus the non-
Mormon settler was prevented from attempting, except in rare
instances, to secure any lands in Utah. The spirit which prompted
this course is well illustrated by an instance which was the subject of
an investigation in the Land Department, and the proofs are found in
the document just referred to. George Q. Cannon, the late Mormon
delegate in Congress, was called to exercise his duties as an apostle to
the Tooelle “Stake” at the city of Grantville. In a discourse on
Sunday, the 20th day of July, 1875, Mr. Cannon said:[45] “God has
given us (meaning the Mormon people) this land, and, if any
outsider shall come in to take land which we claim, a piece six feet by
two is all they are entitled to, and that will last them to all eternity.”
By measures and threats like these have the Mormons unlawfully
controlled the agricultural lands of the Territory and excluded
therefrom the dissenting settler. The attempt of the United States to
establish a Surveyor-General’s office in Utah in 1855, and to survey
the lands in view of disposing of them according to law, was met by
such opposition that Mr. Burr, the Surveyor-General, was compelled
to fly for life. The monuments of surveys made by his order were
destroyed, and the records were supposed to have met a like fate, but
were afterwards restored by Brigham Young to the Government. The
report of his experience by Mr. Burr was instrumental in causing
troops to be sent in 1857 to assert the authority of the Government.
When this army, consisting of regular troops, was on the way to
Utah, Brigham Young, as Governor, issued a proclamation, dated
September 15, 1857, declaring martial law and ordering the people of
the Territory to hold themselves in readiness to march to repel the
invaders, and on the 29th of September following addressed the
commander of United States forces an order forbidding him to enter
the Territory, and directing him to retire from it by the same route he
had come. Further evidence of the Mormon claim that they were
independent is perhaps unnecessary. The treasonable character of
the local organization is manifest. It is this organization that
controls, not only the people who belong to it, but the 30,000 non-
Mormons who now reside in Utah.
Every member of the territorial Legislature is a Mormon. Every
county officer is a Mormon. Every territorial officer is a Mormon,
except such as are appointive. The schools provided by law and
supported by taxation are Mormon. The teachers are Mormon, and
the sectarian catechism affirming the revelations of Joseph Smith is
regularly taught therein. The municipal corporations are under the
control of Mormons. In the hands of this bigoted class all the
material interests of the Territory are left, subject only to such checks
as a Federal Governor and a Federal judiciary can impose. From
beyond the sea they import some thousands of ignorant converts
annually, and, while the non-Mormons are increasing, they are
overwhelmed by the muddy tide of fanaticism shipped in upon them.
The suffrage has been bestowed upon all classes by a statute so
general that the ballot-box is filled with a mass of votes which repels
the free citizen from the exercise of that right. If a Gentile is chosen
to the Legislature (two or three such instances have occurred), he is
not admitted to the seat, although the act of Congress (June 23,
1874) requires the Territory to pay all the expenses of the
enforcement of the laws of the Territory, and of the care of persons
convicted of offenses against the laws of the Territory. Provision is
made for jurors’ fees in criminal cases only, and none is made for the
care of criminals.[46] While Congress pays the legislative expenses,
amounting to $20,000 per session, the Legislature defiantly refuses
to comply with the laws which its members are sworn to support.
And the same body, though failing to protect the marriage bond by
any law whatever requiring any solemnities for entering it, provided
a divorce act which practically allowed marriages to be annulled at
will.[47] Neither seduction, adultery nor incest find penalty or
recognition in its legal code. The purity of home is destroyed by the
beastly practice of plural marriage, and the brows of innocent
children are branded with the stain of bastardy to gratify the lust
which cares naught for its victims. Twenty-eight of the thirty-six
members of the present Legislature of Utah are reported as having
from two to seven wives each. While the Government of the United
States is paying these men their mileage and per diem as law-makers
in Utah, those guilty of the same offense outside of Utah are leading
the lives of felons in convict cells. For eight years a Mormon delegate
has sat in the capitol at Washington having four living wives in his
harem in Utah, and at the same time, under the shadow of that
capitol, lingers in a felon’s prison a man who had been guilty of
marrying a woman while another wife was still living.
For thirty years have the Mormons been trusted to correct these
evils and put themselves in harmony with the balance of civilized
mankind. This they have refused to do. Planting themselves in the
heart of the continent, they have persistently defied the laws of the
land, the laws of modern society, and the teachings of a common
humanity. They degrade woman to the office of a breeding animal,
and, after depriving her of all property rights in her husband’s estate,
[48]
all control of her children,[49] they, with ostentation, bestow upon
her the ballot in a way that makes it a nullity if contested, and
compels her to use it to perpetuate her own degradation if she avails
herself of it.
No power has been given to the Mormon Hierarchy that has not
been abused. The right of representation in the legislative councils
has been violated in the apportionment of members so as to
disfranchise the non-Mormon class.[50] The system of revenue and
taxation was for twenty-five years a system of confiscation and
extortion.[51] The courts were so organized and controlled that they
were but the organs of the church oppressions and ministers of its
vengeance.[52] The legal profession was abolished by a statute that
prohibited a lawyer from recovering on any contract for service, and
allowed every person to appear as an attorney in any court.[53] The
attorney was compelled to present “all the facts in the case,” whether
for or against his client, and a refusal to disclose the confidential
communications of the latter subjected the attorney to fine and
imprisonment.[54] No law book except the statutes of Utah and of the
United States, “when applicable,” was permitted to be read in any
court by an attorney, and the citation of a decision of the Supreme
Court of the United States, or even a quotation from the Bible, in the
trial of any cause, subjected a lawyer to fine and imprisonment.[55]
The practitioners of medicine were equally assailed by legislation.
The use of the most important remedies known to modern medical
science, including all anæsthetics, was prohibited except under
conditions which made their use impossible, “and if death followed”
the administration of these remedies, the person administering them
was declared guilty of manslaughter or murder.[56] The Legislative
Assembly is but an organized conspiracy against the national law,
and an obstacle in the way of the advancement of its own people. For
sixteen years it refused to lay its enactments before Congress, and
they were only obtained by a joint resolution demanding them. Once
in armed rebellion against the authority of the nation, the Mormons
have always secretly struggled for, as they have openly prophesied,
its entire overthrow. Standing thus in the pathway of the material
growth and development of the Territory, a disgrace to the balance of
the country, with no redeeming virtue to plead for further
indulgence, this travesty of a local government demands radical and
speedy reform.
The South American Question.
If it was not shrewdly surmised before it is now known that had

President Garfield lived he intended to make his administration
brilliant at home and abroad—a view confirmed by the policy
conceived by Secretary Blaine and sanctioned, it must be presumed,
by President Garfield. This policy looked to closer commercial and
political relations with all of the Republics on this Hemisphere, as
developed in the following quotations from a correspondence, the
publication of which lacks completeness because of delays in
transmitting all of it to Congress.
Ex-Secretary Blaine on the 3d of January sent the following letter
to President Arthur:
“The suggestion of a congress of all the American nations to assemble in the city
of Washington for the purpose of agreeing on such a basis of arbitration for
international troubles as would remove all possibility of war in the Western
hemisphere was warmly approved by your predecessor. The assassination of July 2
prevented his issuing the invitations to the American States. After your accession
to the Presidency I acquainted you with the project and submitted to you a draft
for such an invitation. You received the suggestion with the most appreciative
consideration, and after carefully examining the form of the invitation directed
that it be sent. It was accordingly dispatched in November to the independent
governments of America North and South, including all, from the Empire of Brazil
to the smallest republic. In a communication addressed by the present Secretary of
State on January 9, to Mr. Trescot and recently sent to the Senate I was greatly
surprised to find a proposition looking to the annulment of these invitations, and I
was still more surprised when I read the reasons assigned. If I correctly apprehend
the meaning of his words it is that we might offend some European powers if we
should hold in the United States a congress of the “selected nationalities” of
America.
“This is certainly a new position for the United States to assume, and one which I
earnestly beg you will not permit this government to occupy. The European powers
assemble in congress whenever an object seems to them of sufficient importance to
justify it. I have never heard of their consulting the government of the United
States in regard to the propriety of their so assembling, nor have I ever known of
their inviting an American representative to be present. Nor would there, in my
judgment, be any good reason for their so doing. Two Presidents of the United
States in the year 1881 adjudged it to be expedient that the American powers
should meet in congress for the sole purpose of agreeing upon some basis for
arbitration of differences that may arise between them and for the prevention, as
far as possible, of war in the future. If that movement is now to be arrested for fear
that it may give offense in Europe, the voluntary humiliation of this government
could not be more complete, unless we should press the European governments for
the privilege of holding the congress. I cannot conceive how the United States
could be placed in a less enviable position than would be secured by sending in
November a cordial invitation to all the American governments to meet in
Washington for the sole purpose of concerting measures of peace and in January
recalling the invitation for fear that it might create “jealousy and ill will” on the
part of monarchical governments in Europe. It would be difficult to devise a more
effective mode for making enemies of the American Government and it would
certainly not add to our prestige in the European world. Nor can I see, Mr.
President, how European governments should feel “jealousy and ill will” towards
the United States because of an effort on our own part to assure lasting peace
between the nations of America, unless, indeed, it be to the interest of European
power that American nations should at intervals fall into war and bring reproach
on republican government. But from that very circumstance I see an additional
and powerful motive for the American Governments to be at peace among
themselves.
“The United States is indeed at peace with all the world, as Mr. Frelinghuysen
well says, but there are and have been serious troubles between other American
nations. Peru, Chili and Bolivia have been for more than two years engaged in a
desperate conflict. It was the fortunate intervention of the United States last spring
that averted war between Chili and the Argentine Republic. Guatemala is at this
moment asking the United States to interpose its good offices with Mexico to keep
off war. These important facts were all communicated in your late message to
Congress. It is the existence or the menace of these wars that influenced President
Garfield, and as I supposed influenced yourself, to desire a friendly conference of
all the nations of America to devise methods of permanent peace and consequent
prosperity for all. Shall the United States now turn back, hold aloof and refuse to
exert its great moral power for the advantage of its weaker neighbors?
If you have not formally and finally recalled the invitations to the Peace
Congress, Mr. President, I beg you to consider well the effect of so doing. The
invitation was not mine. It was yours. I performed only the part of the Secretary—
to advise and to draft. You spoke in the name of the United States to each of the
independent nations of America. To revoke that invitation for any cause would be
embarrassing; to revoke it for the avowed fear of “jealousy and ill will” on the part
of European powers would appeal as little to American pride as to American
hospitality. Those you have invited may decline, and having now cause to doubt
their welcome will, perhaps, do so. This would break up the congress, but it would
not touch our dignity.
“Beyond the philanthropic and Christian ends to be obtained by an American
conference devoted to peace and good will among men, we might well hope for
material advantages, as the result of a better understanding and closer friendship
with the nation of America. At present the condition of trade between the United
States and its American neighbors is unsatisfactory to us, and even deplorable.
According to the official statistics of our own Treasury Department, the balance
against us in that trade last year was $120,000,000—a sum greater than the yearly
product of all the gold and silver mines in the United States. This vast balance was
paid by us in foreign exchange, and a very large proportion of it went to England,
where shipments of cotton, provisions and breadstuffs supplied the money. If
anything should change or check the balance in our favor in European trade our
commercial exchanges with Spanish America would drain us of our reserve of gold
at a rate exceeding $100,000,000 per annum, and would probably precipitate a
suspension of specie payment in this country. Such a result at home might be
worse than a little jealousy and ill-will abroad. I do not say, Mr. President, that the
holding of a peace congress will necessarily change the currents of trade, but it will
bring us into kindly relations with all the American nations; it will promote the
reign of peace and law and order; it will increase production and consumption and
will stimulate the demand for articles which American manufacturers can furnish
with profit. It will at all events be a friendly and auspicious beginning in the
direction of American influence and American trade in a large field which we have
hitherto greatly neglected and which has been practically monopolized by our
commercial rivals in Europe.
As Mr. Frelinghuysen’s dispatch, foreshadowing the abandonment of the peace
congress, has been made public, I deem it a matter of propriety and justice to give
this letter to the press.
Jas. G. Blaine.
The above well presents the Blaine view of the proposition to have
a Congress of the Republics of America at Washington, and under
the patronage of this government, with a view to settle all difficulties
by arbitration, to promote trade, and it is presumed to form alliances
ready to suit a new and advanced application of the Monroe doctrine.
The following is the letter proposing a conference of North and
South American Republics sent to the U. S. Ministers in Central and
South America:
Sir: The attitude of the United States with respect to the question of general
peace on the American Continent is well known through its persistent efforts for
years past to avert the evils of warfare, or, these efforts failing, to bring positive
conflicts to an end through pacific counsels or the advocacy of impartial
arbitration. This attitude has been consistently maintained, and always with such
fairness as to leave no room for imputing to our Government any motive except the
humane and disinterested one of saving the kindred States of the American
Continent from the burdens of war. The position of the United States, as the
leading power of the new world, might well give to its Government a claim to
authoritative utterance for the purpose of quieting discord among its neighbors,
with all of whom the most friendly relations exist. Nevertheless the good offices of
this Government are not, and have not at any time, been tendered with a show of
dictation or compulsion, but only as exhibiting the solicitous good will of a
common friend.
THE CENTRAL AND SOUTH AMERICAN STATES.
For some years past a growing disposition has been manifested by certain States
of Central and South America to refer disputes affecting grave questions of
international relationship and boundaries to arbitration rather than to the sword.
It has been on several occasions a source of profound satisfaction to the
Government of the United States to see that this country is in a large measure
looked to by all the American powers as their friend and mediator. The just and
impartial counsel of the President in such cases, has never been withheld, and his
efforts have been rewarded by the prevention of sanguinary strife or angry
contentions between peoples whom we regard as brethren. The existence of this
growing tendency convinces the President that the time is ripe for a proposal that
shall enlist the good will and active co-operation of all the States of the Western
Hemisphere both North and South, in the interest of humanity and for the
common weal of nations.
He conceives that none of the Governments of America can be less alive than our
own to the dangers and horrors of a state of war, and especially of war between
kinsmen. He is sure that none of the chiefs of Government on the Continent can be
less sensitive than he is to the sacred duty of making every endeavor to do away
with the chances of fratricidal strife, and he looks with hopeful confidence to such
active assistance from them as will serve to show the broadness of our common
humanity, the strength of the ties which bind us all together as a great and
harmonious system of American Commonwealths.
A GENERAL CONGRESS PROPOSED.
Impressed by these views, the President extends to all the independent countries
of North and South America an earnest invitation to participate in a general
Congress, to be held in the city of Washington, on the 22d of November, 1882, for
the purpose of considering and discussing the methods of preventing war between
the nations of America. He desires that the attention of the Congress shall be
strictly confined to this one great object; and its sole aim shall be to seek a way of
permanently averting the horrors of a cruel and bloody contest between countries
oftenest of one blood and speech, or the even worse calamity of internal
commotion and civil strife; that it shall regard the burdensome and far-reaching
consequences of such a struggle, the legacies of exhausted finances, of oppressive
debt, of onerous taxation, of ruined cities, of paralyzed industries, of devastated
fields, of ruthless conscriptions, of the slaughter of men, of the grief of the widow
and orphan, of embittered resentments that long survive those who provoked them
and heavily afflict the innocent generations that come after.
THE MISSION OF THE CONGRESS.
The President is especially desirous to have it understood that in putting forth

this invitation the United States does not assume the position of counseling or
attempting, through the voice of the Congress, to counsel any determinate solution
of existing questions which may now divide any of the countries. Such questions
cannot properly come before the Congress. Its mission is higher. It is to provide for
the interests of all in the future, not to settle the individual differences of the
present. For this reason especially the President has indicated a day for the
assembling of the Congress so far in the future as to leave good ground for the hope
that by the time named the present situation on the South Pacific coast will be
happily terminated, and that those engaged in the contest may take peaceable part
in the discussion and solution of the general question affecting in an equal degree
the well-being of all.
It seems also desirable to disclaim in advance any purpose on the part of the
United States to prejudge the issues to be presented to the Congress. It is far from
the intent of this Government to appear before the Congress as in any sense the
protector of its neighbors or the predestined and necessary arbitrator of their
disputes. The United States will enter into the deliberations of the Congress on the
same footing as other powers represented, and with the loyal determination to
approach any proposed solution, not merely in its own interest, or with a view to
asserting its own power, but as a single member among many co-ordinate and co-
equal States. So far as the influence of this Government may be potential, it will be
exerted in the direction of conciliating whatever conflicting interests of blood, or
government, or historical tradition that may necessarily come together in response
to a call embracing such vast and diverse elements.
INSTRUCTIONS TO THE MINISTERS.
You will present these views to the Minister of Foreign Affairs of Costa Rica,
enlarging, if need be, in such terms as will readily occur to you upon the great
mission which it is within the power of the proposed Congress to accomplish in the
interest of humanity, and the firm purpose of the United States of America to
maintain a position of the most absolute and impartial friendship toward all. You
will, therefore, in the name of the President of the United States, tender to his
Excellency, the President of ——, a formal invitation to send two commissioners to
the Congress, provided with such powers and instructions on behalf of their
Government as will enable them to consider the questions brought before that
body within the limit of submission contemplated by this invitation.
The United States, as well as the other powers, will in like manner be
represented by two commissioners, so that equality and impartiality will be amply
secured in the proceedings of the Congress.
In delivering this invitation through the Minister of Foreign Affairs, you will
read this despatch to him and leave with him a copy, intimating that an answer is
desired by this Government as promptly as the just consideration of so important a
proposition will permit.
I am, sir, your obedient servant,
James G. Blaine.
Minister Logan’s Reply.
The following is an abstract of the reply of Minister Logan to the

above.
“From a full review of the situation, as heretofore detailed to you, I
am not clear as to being able to obtain the genuine co-operation of all
the States of Central America in the proposed congress.—Each, I
have no doubt, will ultimately agree to send the specified number of
commissioners and assume, outwardly, an appearance of sincere co-
operation, but, as you will perceive from your knowledge of the
posture of affairs, all hope of effecting a union of these States except
upon a basis the leaders will never permit—that of a free choice of
the whole people—will be at an end. The obligation to keep the peace,
imposed by the congress, will bind the United States as well as all
others, and thus prevent any efforts to bring about the desired union
other than those based upon a simple tender of good offices—this
means until the years shall bring about a radical change—must be as
inefficient in the future as in the past. The situation, as it appears to
me, is a difficult one. As a means of restraining the aggressive
tendency of Mexico in the direction of Central America, the congress
would be attended by the happiest results, should a full agreement be
reached. But as the Central American States are now in a chaotic
condition, politically considered, with their future status wholly
undefined, and as a final settlement can only be reached, as it now
appears, through the operation of military forces, the hope of a
Federal union in Central America would be crushed, at least in the
immediate present. Wiser heads than my own may devise a method
to harmonize these difficulties when the congress is actually in
session, but it must be constantly remembered that so far as the
Central American commissioners are concerned they will represent
the interests and positive mandates of their respective government
chiefs in the strictest and most absolute sense. While all will
probably send commissioners, through motives of expediency, they
may possibly be instructed to secretly defeat the ends of the
convention. I make these suggestions that you may have the whole
field under view.
“I may mention in this connection that I have received information
that up to the tenth of the present month only two members of the
proposed convention at Panama had arrived and that it was
considered as having failed.”
Contemporaneous with these movements or suggestions was
another on the part of Mr. Blaine to secure from England a
modification or abrogation of the Clayton-Bulwer treaty, with the
object of giving to the United States, rather to the Republics of North
and South America, full supervision of the Isthmus and Panama
Canal when constructed. This branch of the correspondence was sent
to the Senate on the 17th of February. Lord Granville, in his despatch
of January 7th to Minister West in reference to the Clayton-Bulwer
Treaty controversy, denies any analogy between the cases of the
Panama and Suez Canals. He cordially concurs in Mr. Blaine’s
statement in regard to the unexampled development of the Pacific
Coast, but denies that it was unexpected.
He says the declaration of President Monroe anterior to the treaty
show that he and his Cabinet had a clear prevision of the great future
of that region. The development of the interests of the British
possessions also continued, though possibly less rapidly. The
Government are of the opinion that the canal, as a water way
between the two great oceans and Europe and Eastern Asia, is a work
which concerns not only the American Continent, but the whole
civilized world. With all deference to the considerations which
prompted Mr. Blaine he cannot believe that his proposals will be
even beneficial in themselves. He can conceive a no more melancholy
spectacle than competition between nations in the construction of
fortifications to command the canal. He cannot believe that any
South American States would like to admit a foreign power to erect
fortifications on its territory, when the claim to do so is accompanied
by the declaration that the canal is to be regarded as a part of the
American coast line. It is difficult to believe, he says, that the
territory between it and the United States could retain its present
independence. Lord Granville believes that an invitation to all the
maritime states to participate in an agreement based on the
stipulations of the Convention of 1850, would make the Convention
adequate for the purposes for which it was designed. Her Majesty’s
Government would gladly see the United States take the initiative
towards such a convention, and will be prepared to endorse and
support such action in any way, provided it does not conflict with the
Clayton-Bulwer treaty.
Lord Granville, in a subsequent despatch, draws attention to the
fact that Mr. Blaine, in using the argument that the treaty has been a
source of continual difficulties, omits to state that the questions in
dispute which related to points occupied by the British in Central
America were removed in 1860 by the voluntary action of Great
Britain in certain treaties concluded with Honduras and Nicaragua,
the settlement being recognized as perfectly satisfactory by President
Buchanan. Lord Granville says, further, that during this controversy
America disclaimed any desire to have the exclusive control of the
canal.
The Earl contends that in cases where the details of an
international agreement have given rise to difficulties and
discussions to such an extent as to cause the contracting parties at
one time to contemplate its abrogation or modification as one of
several possible alternatives, and where it has yet been found
preferable to arrive at a solution as to those details rather than to
sacrifice the general bases of the engagement, it must surely be
allowed that such a fact, far from being an argument against that
engagement, is an argument distinctly in its favor. It is equally plain
that either of the contracting parties which had abandoned its own
contention for the purpose of preserving the agreement in its entirety
would have reason to complain if the differences which had been
settled by its concessions were afterwards urged as a reason for
essentially modifying those other provisions which it had made this
sacrifice to maintain. In order to strengthen these arguments, the
Earl reviews the correspondence, quotes the historical points made
by Mr. Blaine and in many instances introduces additional data as
contradicting the inferences drawn by Mr. Blaine and supporting his
own position.
The point on which Mr. Blaine laid particular stress in his
despatch to Earl Granville, is the objection made by the government
of the United States to any concerted action of the European powers

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PART 1: Marketing Strategy and Customer Relationships 1

PART 2: Environmental Forces and Social and Ethical Responsibilities 57

PART 3: Marketing Research and Target Market Analysis 121

PART 4: Buying Behavior, Global Marketing, and Digital Marketing 183

PART 5: Product Decisions 305

PART 6: Distribution Decisions 393

PART 7: Promotion Decisions 465

PART 8: Pricing Decisions 559

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PART 1 Marketing Strategy and Customer Relationships 1

Chapter 1: An Overview of Strategic Marketing 2 Developing Your Marketing Plan 25

PART 2 Environmental Forces and Social and Ethical Responsibilities 57

Chapter 3: The Marketing Environment 58 Developing Your Marketing Plan 86

PART 3 Marketing Research and Target Market Analysis 121

Chapter 5: Marketing Research and I­ nformation 5-3c Collecting Data 130

PART 4 Buying Behavior, Global Marketing, and Digital Marketing 183

8-1b Reseller Markets 217 9-4b Trading Companies 260

PART 5 Product Decisions 305

13-3c Promotion of Services 376 13-5c Developing Nonprofit Marketing

PART 6 Distribution Decisions 393

PART 7 Promotion Decisions 465

Chapter 16: Integrated Marketing Chapter 17: Advertising and Public

PART 8 Pricing Decisions 559

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Part 1 Marketing Strategy and Customer Relationships

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Part 4 Buying Behavior, Global Marketing, and Digital Marketing

Part 5 Product Decisions

Part 6 Distribution Decisions

Part 7 Promotion Decisions

Part 8 Pricing Decisions

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1 Marketing Strategy and Customer

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Chapter 5: Marketing Research and I nformation 5-3c Collecting Data 130

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1-3a Marketing Builds Relationships with Customers