Download as pdf or txt
Download as pdf or txt
You are on page 1of 69

Marketing Concepts & Strategies 8th

Edition Lyndon Simkin


Visit to download the full and correct content document:
https://ebookmass.com/product/marketing-concepts-strategies-8th-edition-lyndon-sim
kin/
More products digital (pdf, epub, mobi) instant
download maybe you interests ...

Marketing. 8th Edition Dhruv Grewal

https://ebookmass.com/product/marketing-8th-edition-dhruv-grewal/

Grundlagen des Marketing 8th Edition Philip Kotler

https://ebookmass.com/product/grundlagen-des-marketing-8th-
edition-philip-kotler/

Digital Marketing 8th Edition Dave Chaffey

https://ebookmass.com/product/digital-marketing-8th-edition-dave-
chaffey/

Fundamental Managerial Accounting Concepts 8th Edition

https://ebookmass.com/product/fundamental-managerial-accounting-
concepts-8th-edition/
Foundations Of Marketing 8th Ed. 8th Edition William M.
Pride

https://ebookmass.com/product/foundations-of-marketing-8th-
ed-8th-edition-william-m-pride/

Marketing Strategy 8th Edition O. C. Ferrell

https://ebookmass.com/product/marketing-strategy-8th-edition-o-c-
ferrell/

Crisis Intervention Strategies 8th Edition, (Ebook PDF)

https://ebookmass.com/product/crisis-intervention-strategies-8th-
edition-ebook-pdf/

Integrated Advertising, Promotion, and Marketing


Communications (8th Edition)

https://ebookmass.com/product/integrated-advertising-promotion-
and-marketing-communications-8th-edition/

Global Marketing [Print Replica] 8th Edition Svend


Hollensen

https://ebookmass.com/product/global-marketing-print-replica-8th-
edition-svend-hollensen/
Marketing
CONCEPTS AND
STRATEGIES
8th Edition

Sally Dibb
Centre for Business in Society, Coventry University

Lyndon Simkin
Centre for Business in Society, Coventry University

William M. Pride
Mays Business School, Texas A&M University

O.C. Ferrell
Raymond J Harbert College of Business, Auburn University

Australia • Brazil • Mexico • Singapore • United Kingdom • United States

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
This is an electronic version of the print textbook. Due to electronic rights restrictions,
some third party content may be suppressed. Editorial review has deemed that any suppressed
content does not materially affect the overall learning experience. The publisher reserves the right
to remove content from this title at any time if subsequent rights restrictions require it. For
valuable information on pricing, previous editions, changes to current editions, and alternate
formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for
materials in your areas of interest.

Important Notice: Media content referenced within the product description or the product
text may not be available in the eBook version.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Marketing: Concepts and ­Strategies, © 2019, Cengage Learning EMEA
8th Edition
Sally Dibb, Lyndon Simkin, William WCN: 02-300
M. Pride and O.C. Ferrell
ALL RIGHTS RESERVED. No part of this work covered by the copy-
Publisher: Annabel Ainscow right herein may be reproduced or distributed in any form or by any
means, except as permitted by U.S. copyright law, without the prior
List Manager: Virginia Thorp
written permission of the copyright owner.
Marketing Manager: Anna Reading

Senior Content Project Manager:


­Phillipa Davidson-Blake For product information and technology assistance, contact us at
Manufacturing Manager: Eyvett Davis emea.info@cengage.com

Typesetter: SPi Global


For permission to use material from this text or product and for
Cover Design: Cyan Design permission queries, email emea.permissions@cengage.com

Cover Image: ©Pokki77/Shutterstock Inc

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British Library.

ISBN: 978-1-4737-6027-1

Cengage Learning, EMEA


Cheriton House, North Way
Andover, Hampshire, SP10 5BE
United Kingdom

Cengage Learning is a leading provider of customized learning solu-


tions with employees residing in nearly 40 different countries and
sales in more than 125 countries around the world. Find your local
representative at: www.cengage.co.uk.

Cengage Learning products are represented in Canada by


Nelson Education, Ltd.

For your course and learning solutions, visit www.cengage.co.uk.

Purchase any of our products at your local college store or at our


preferred online store www.cengagebrain.com.

Printed in China by RR Donnelly


Print Number: 01 Print Year: 2019

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
For Rosa, Sam, Mae, Abby, James and Becky

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Brief contents
Part One: Marketing defined and 14 Marketing channels 403
marketing in context 1 15 Channel players and ­physical
1 The marketing concept 4 distribution 430
2 Marketing strategy and understanding 16 An Overview of marketing
competitors 38 communications 466
3 The marketing environment 73 17 Advertising, public ­relations and
sponsorship 494
4 Marketing in international markets and
globalization 108 18 Sales management, sales promotion, direct
mail, direct marketing and the web 529
19 Digital marketing 567
Part Two: Understanding and
20 Pricing 585
targeting customers 139
21 Modifying the marketing mix for business
5 Consumer buying behaviour 142
markets, services and in international
6 Business markets and business buying marketing 619
behaviour 173
7 Segmenting markets 204
Part Four: Marketing
8 Targeting and positioning 233 Management 655
9 Marketing research 259
22 Marketing planning and forecasting sales
potential 657
Part Three: Marketing 23 Implementing strategies, internal
programmes – products and marketing relationships and measuring
services, brands, place and performance 686
­channels, promotion and 24 Responsible marketing 724
marketing communications, digital
and pricing 295
10 Product decisions 299 Notes 755
Glossary 776
11 Branding and packaging 318
Index 801
12 Developing products and managing product
portfolios 348
13 The marketing of services 376

iv

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Contents
NOTE Each chapter contains a summary, key links to other parts of the book, a list of important terms,
discussion and review questions, recommended readings, a web task, group tasks and an
applied mini-case.

Preface x Marketing tools and techniques Practitioners’


Acknowledgements xi use of SWOT Analysis 52
About the authors xii Target market strategy and brand
Credits xiv positioning 54
Competitive advantage 55
Competitive positions and differential
Part One advantage 56
Marketing tools and techniques Practitioners’
Marketing defined and marketing use of competitor intelligence: the Dibb/
in context 1 Simkin competitive positions proforma 62
Marketing objectives 65
Marketing mix decisions 65
1 The marketing concept 4 Implementation and performance
Your meals on wheels 5 monitoring 66
Marketing explained and defined 6 Case study St Andrew’s Healthcare: a charity’s
The definitions of marketing explored 11 marketing strategy 71
The marketing process 14
The importance of marketing 15 3 The marketing environment 73
Topical insight Ireland: marketing
a country 17 Regulatory influence: the EU single
The marketing concept and its evolution 18 market 74
Topical insight An alternative view of the Examining and responding to the marketing
scope for marketing: social marketing 22 environment 75
The essentials of marketing 23 Marketing tools and techniques Practitioners’
The organization of this book 31 assessment of the macro marketing
Case study Sweden’s IKEA marches on 36 environment 76
Political forces 79
Legal forces 80
2 Marketing strategy and Regulatory forces 81
understanding competitors 38 Societal forces 83
Technological forces 85
Driverless vehicles are coming this way 39
Topical insight Brands and consumers
Marketing strategy defined 40
embrace Fairtrade 86
Organizational mission, goals and corporate
Economic and competitive forces 90
strategy 45
The micro marketing environment 96
Organizational opportunities and
The marketing environment and strategic
resources 47
opportunities 99
Strategic objectives and strategic focus 50
Case study The world of rice: ­external
challenges for Tilda’s marketers 106

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
vi  Contents

4 Marketing in international 6 Business markets and business


markets and globalization 108 buying behaviour 173
Global growth by acting locally 109 Shaping tomorrow with you 174
Involvement in international marketing 110 Types of business market 175
International marketing intelligence 113 Dimensions of business buying 177
Environmental forces in international markets 114 Business buying decisions 184
Building customer relationships A cross- Marketing tools and techniques Practitioners’
cultural ­comparison of colour and use of the buying behaviour theory: the
international branding 115 Dibb/Simkin buying proforma 186
Regional trade alliances and markets 120 Selection and analysis of business
Alternative market entry strategies 123 markets 192
Topical insight Much more than Topical insight Insurance brokers reflect
­understanding customers’ behaviours and influences on clients’ decision-making 193
culture 126 Marketing’s variations in business
Customization versus the globalization of markets 197
­international marketing strategies 127 Case study Nynas: in the black and
Case study Carrefour’s ‘G4’ and ­international leading 202
growth strategy 132
Part one postscript 134 7 Segmenting markets 204
Strategic case Understanding and ­managing
fast-­changing markets: creating a marketing Rice . . . not all grains seem the same 205
strategy 135 What are markets? 206
What is market segmentation? 207
Segmenting, targeting and positioning 210
Part Two Segmentation variables 211
Topical insight Targeting fashion 214
Understanding and targeting Building customer relationships Profiling and
targeting customers with ACORN 220
customers 139 Segmentation effectiveness 225
Customer relationship management (crm) and
5 Consumer buying behaviour 142 retention 226
Raleigh cycles to stay in touch with Case Study Marriott: getting down to business
consumers 143 with business travellers 231
Types of consumer buying behaviour 143
Topical insight Point-of-sale moves into the 8 Targeting and positioning 233
changing room 145
Targeting strategies for business
The consumer buying decision process 145
schools 234
Personal factors influencing the buying decision
Segmentation targeting strategies 235
process 150
Target market attractiveness and opportunity
Psychological factors influencing the buying
selection 240
decision process 152
Building customer relationships Innocent
Social factors influencing the buying decision
goes mumsy 241
process 159
Evaluating markets and forecasting sales 246
The impact of new thinking and new
Marketing programmes 247
technologies 163
Positioning 247
Building customer relationships Teenage
Marketing tools and techniques Practitioners’
trends, Twilight and the power of reference
use of brand positioning theory 250
groups 165
Case study Iams understands people who
Understanding consumer behaviour 166
love pets 257
Case study Crayola: colouring in the 21st
century 171

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Contents     
vii

9 Marketing research 259 11 Branding and packaging 318

Mobile devices generate rich consumer Polos: are you a sucker? Or are you a
insights 260 cruncher? 319
The importance of marketing research 261 Branding 320
Marketing tools and techniques Citizen Brand personality, values and attributes 325
summits give ­people a voice 263 Marketing tools and techniques Practitioners’
The marketing research process 264 use of the brand development theory: the
Step 1: locating and defining problems or brand personality grid 326
research issues 265 Marketing tools and techniques Who thought
Step 2: designing the research 265 of that name?! 331
Step 3: collecting data 267 Packaging and labelling 336
Marketing tools and techniques The Case study Rebranding Macmillan 346
intrigues of ­‘mystery shopper’ research
programmes 278 12 Developing products and
Step 4: analyzing and interpreting research
findings 280
managing product portfolios 348
Step 5: reporting research findings 281 Virgin Money: a haven on the high street 349
Using technology to improve marketing Organizing to manage products 350
information gathering and analysis 281 New product development 351
The importance of ethical marketing Product adoption process 356
research 284 Product life cycle management 358
Case study Focus group interviewing: in-depth Topical insight Telebanking, tv banking,
views from group discussions 289 ebanking, texting and now banking apps:
Part two postscript 291 what next? 360
Strategic case Youngsters spend more time Tools for managing product portfolios 363
online than viewing television 293 Marketing tools and techniques Practitioners’
use of the directional policy matrix (dpm) 367
Case study Sellotape or adhesive tape?
Part Three Increasing market ­penetration – a classic
tale 374
Marketing programmes –
products and services, brands, 13 The marketing of services 376

place and ­channels, promotion Marketing a solution to today’s stresses 377


The nature and importance of services 378
and marketing communications, Classification of services 382
digital and pricing 295 Developing marketing strategies for services 383
Service quality 386
Building customer relationships Providing pet
10 Product decisions 299
services for nations of dog lovers 387
Innocent product development 300 Building customer relationships People’s
What is a product? 301 performance is inconsistent . . . Good
Product life cycles 307 lecture? 389
Topical insight Great things can happen when Non-profit marketing 391
you sacrifice a cigarette 309 Case study Marketing for charities 401
Why some products fail and others
succeed 310 14 Marketing channels 403
Building customer relationships Upgrading
service for competitive advantage 312 BA’s focus on e-channels and digital 404
Case study Heineken’s portfolio of The nature of marketing channels and supply
brands 316 chain management 405

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
viii  Contents

Functions of marketing channels 407 17 Advertising, public ­relations


Building customer relationships Tesco’s
and sponsorship 494
multi-channel approach to market
leadership 410 Cancer—advertising helps fight the early
Types of channel 411 signs of cancer 495
Channel integration 414 The nature of advertising 496
Different levels of market coverage 416 Innovation and change First ambient and now
Choosing distribution channels 418 ‘live’ advertising 496
Building customer relationships The uses of advertising 498
A mutli-channel strategy for retailer John Developing an advertising campaign 503
Lewis 419 Who develops the advertising campaign? 514
Behaviour of channel members 421 Publicity and public relations 515
Legal issues in channel management 424 Innovation and change Blogs and tweets
Case study first direct’s innovative banking in PR 519
channels 428 Sponsorship 522
Case study Textbook pr and a classic tale:
public relations and the Perrier crisis 527
15 Channel players and ­physical
distribution 430
18 Sales management, sales
Multi-channel changes the rules 431
promotion, direct mail, direct
The nature and importance of wholesaling 432
The activities of wholesalers 432 marketing and the web 529
Classifying wholesalers 434 Sampling nappies: parents’ early exposure to
Building customer relationships Coca- Pampers 530
Cola seeks more control over distribution The nature of personal selling and sales
channels 441 management 531
Facilitating agencies 441 Building customer relationships face-to-face
Retailing 444 Not everything is possible digitally 533
Innovation and change Retail technology Elements of the personal selling process 534
innovations changing customer Innovation and change eCommerce sales
experiences 448 promotion 536
Physical distribution 450 Types of sales people 537
Case study Today’s cash and carry mega- Management of the salesforce 537
depots depend on effective stockholding Key account management 544
and physical distribution 465 Sales promotion 544
Sales promotion methods 546
16 An overview of marketing Direct mail 552
The internet and digital marketing 555
communications 466
Digital marketing, mobile and social media 557
Making children safer 467 Direct marketing 558
The role of promotion 468 Case study A marketing classic – promoting
The communication process 470 free flights and how Hoover came
Promotion and the product adoption unstuck 565
process 473
Aims of promotion 475
19 Digital marketing 567
The promotional mix 477
Topical insight A web presence: now routine Following the shopper across channels 568
behaviour 478 Digital marketing 569
Topical insight Facebook can be a ­marketer’s Topical insight Changing behaviours in a
best friend and her worst enemy 483 connected world 570
Case study Häagen-Dazs: everyday made Changing consumer behaviour 570
extraordinary 493 Applying digital marketing 571

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Contents     
ix

Social media strategy 574 Market and sales potential and sales
Mobile marketing 576 forecasting 669
Innovation and change Big data insights 577 Topical insight Harley rides into India 673
Big data and analytics 578 The marketing audit 676
Managing multiple channels 580 Case study Dell has to plan for a new
Case study Digital and university choices 584 future 684
20 Pricing 585
What price for a great day out? 586 23 Implementing strategies,
The characteristics and role of price 587 internal marketing relationships
Price and non-price competition 588
and measuring performance 686
Factors affecting pricing decisions 590
Pricing for business markets 596 ‘I’m lovin’ it’: McDonald’s keeps tight
Marketing tools and techniques Business-to- control 687
business pricing using evc analysis 599 Organizing marketing activities 688
Stages for establishing prices 600 Marketing implementation 695
Topical insight The rise of the price Marketing tools and techniques Practitioners’
­comparison website 609 ­implementation ­management of marketing
Case study Order just about anything from planning: the Dibb/Simkin checklists 700
Amazon at a reasonable price 617 Concepts related to marketing
implementation 702
Controlling marketing activities 707
21 Modifying the marketing mix for
Marketing tools and techniques The Dibb/
business markets, services and
Simkin implementation audit as applied to a
in international marketing 619 b2b company 710
Global brands 620
Methods of evaluating performance 712
Characteristics of business marketing
Case study Timex stands the test of time 722
mixes 620
Amending the marketing mix for services 629
Marketing tools and techniques Delivering 24 Responsible marketing 724
executive training and change management Responsible marketing approaches
consultancy 631 challenge the rise in fast fashion  725
Topical insight Targeting self-centred Social responsibility 726
teenagers 635 Topical insight Tax shaming damages
Strategic adaptation of marketing mixes for reputation 727
international markets 638 Marketing ethics 733
Case study Tata’s Nano evolving to an electric Topical insight Charity gap uses behaviour
vehicle (ev)? 648 change to promote sustainable living 735
Part three postscript 650 Incorporating social responsibility and ethics
Strategic case How to launch a vision? 653 into marketing decisions 742
Social marketing 744
Current hot topics in the marketing
Part Four discipline 746
Case study Recession piles on the
Marketing Management 655 pressure 750
Part four postscript 752
22 Marketing planning and Strategic case Ethical concerns, cultural
forecasting sales potential 657 clashes and regulatory pressures: what next
for Coca-Cola? 753
Planning for growth 658
Marketing planning 659
Notes 755
Marketing tools and techniques Jcb’s
Glossary 776
adoption of marketing planning 668
Index 801

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Preface

T
he traditional view of marketing is of a team of managers inside an organization responsible
for surveying customers, communicating the brand, managing advertising and developing
campaigns. Perhaps this rather constrained remit was true many decades ago and cer-
tainly there are still organizations yet to recognize its full potential, but the reality is that marketing
is responsible for so much more:
●● Understanding markets, developing market insights and being the ‘eyes and ears’ for an
organization, in terms of identifying threats and new business opportunities, tracking competi-
tion and staying on top of changing customer expectations.
●● Shaping an organization’s strategy in terms of the selection of which opportunities to pursue,
product portfolios to sustain, target market decisions and competitive positioning.
●● Managing brands and creating compelling value propositions intended to excite customers,
attract new ones, retain those already buying from the organization and to make life awkward
for competitors.
●● Managing customers’ experience in order to maximise revenue, retain lucrative customers and
combat competitors’ actions.
Campaigns, advertising, brand strategy and marketing research are indeed part of the remit for
Marketing, but there is so much more required for marketers to understand as they add value to
their organizations.
The associated set of necessary capabilities is extensive, including market insight and analyt-
ics, strategic thinking and planning, creativity and programme development, project execution and
performance evaluation. All occurring in hugely dynamic environments, in which market conditions
are always evolving, strategies must be re-thought so as to remain pertinent, and marketing pro-
grammes kept fresh and relevant to these challenges. Here lies the excitement for most market-
ers, who relish this challenging and ever-changing life.
Marketing: Concepts and Strategies explores the scope and activities of marketing, providing
the frameworks and toolkit required for marketers to deliver benefits for their organizations.
Whether for products or services; in consumer, business-to-business or public sector mar-
kets; for profit or non-profit making, the marketing function is a major part of an organization’s
overall resourcing and is responsible for a huge array of outputs. There is much more involved
than merely surveying, developing a brand strapline and creating a new advertising campaign, as
depicted in TV’s 1960s-set Mad Men.
Marketing affects everyone. We are all consumers. Most businesses depend on marketing to
provide an understanding of the marketplace, to identify opportunities, and to ensure that their prod-
ucts and services satisfy the needs of customers and that they are competing effectively. There is
little doubt that marketing is an important part of today’s society and commerce. Marketing matters!
Therefore, it is important that marketers are well trained and are equipped with the skills required.
The first edition of Marketing: Concepts and Strategies appeared in 1991, just after Sally and
Lyndon joined the fast-growing Warwick Business School and were introduced to American co-
authors Bill Pride and ‘OC’ Ferrell. Since then, this text has become the leader in its market.
Whether for undergraduates seeking a comprehensive introduction to marketing, MBAs requiring
a grounding in marketing analysis or marketing management, or students in colleges wishing to
pass degrees and CIM diplomas, Marketing: Concepts and Strategies is used by lecturers and
teaching staff to provide an accessible, topical and enlightening insight into the world of marketing.
Marketing: Concepts and Strategies is also recommended by the Chartered Institute of Marketing.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Preface  xi

This edition has been totally revised to reflect the current core themes of marketing in terms of
academic content, but also – given the authors’ wide-ranging consultancy and research experi-
ence outside of the lecture theatre – from a practitioner’s perspective. In particular, the world for
marketers has gone digital, consumers communicate readily with each other via social media;
there are new regulations impacting how marketers operate, especially regarding data compliance
and privacy; marketing has become more aligned to ethical, responsible and sustainability issues;
and Marketing as an academic discipline has become more critical and reflective – all of which are
developments underpinning this new edition. These developments have steered this re-write of
Marketing: Concepts and Strategies.
As ever, Marketing: Concepts and Strategies is supported by comprehensive indexing, a
full glossary of important terms appearing in the margins of the relevant chapters and cross-­
referenced in the subject index, questions for discussion, web exercises and classroom tasks and
full listing of the key terms and jargon detailed chapter-by-chapter.

The Running Order of Marketing: Concepts and


Strategies, 8th Edition
PART ONE Marketing defined and marketing in context – An introduction to the nature and
scope of marketing and the marketing process, marketing strategy and competi-
tive forces, the composition of the marketing environment and the importance of
global marketing.
PART TWO Understanding and targeting customers – Consumer and business-to-business
buying behaviour, target market strategy and brand positioning, customer value
propositions, customer relationship management and marketing research.
PART THREE Marketing programmes – Products and services, brands, place and channels, pro-
motion and marketing communications, digital marketing and pricing in consumer,
business and non-profit markets.
PART FOUR Marketing management – Marketing planning and sales forecasting; implement-
ing strategies, internal marketing relationships and measuring performance; ethics,
and social responsibility in modern marketing, and social marketing applications.

Acknowledgements

T
his text would not have happened without the support and encouragement of ­American
co-authors Bill Pride and O.C. Ferrell; the team at Cengage Learning; the comments
and enthusiasm from fellow marketing lecturers at Warwick Business School, the Open
­University, Oxford Brookes, Henley Business School and Coventry University (notably the ­Centre
for Business in Society and the School of Marketing and Management); colleagues in the A
­ cademy
of Marketing; and, above all, the feedback from our students past and present.

Sally Dibb and Lyndon Simkin


Kenilworth, 2019

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
About the authors
Sally Dibb and Lyndon Simkin each spent around 20 years at the leading UK university
management centre, Warwick Business School, teaching undergraduates, MBAs and executives
the basics of marketing, advanced strategic marketing, marketing management, buyer behaviour,
marketing communications and marketing research. Sally then moved to head up Marketing and
Research at the innovative Open University Business School as Professor of Marketing, where she
also established and co-directed the Institute for Social Marketing. Recently Sally joined the impact-
focused Centre for Business in Society at Coventry University as Professor of Marketing and Soci-
ety, leading the examination of the fast-changing role of data in society. Lyndon left Warwick to join
Oxford Brookes Business School as Professor of Strategic Marketing and Research Lead, before
joining Henley Business School. He is now at Coventry University as Executive Director of the Centre
for Business in Society and Professor of Strategic Marketing in the Faculty of Business and Law.
Sally and Lyndon’s research focuses on market segmentation, marketing planning, strategic busi-
ness planning, social marketing applications, marketing strategy operationalization and teaching meth-
ods, in which areas they have published extensively in the academic journals in the UK and USA. They
co-chair the Academy of Marketing’s SIG in Market Segmentation and have been Associate Editors
of the Journal of Marketing Management. Sally is a trustee of the research charity Alcohol Research
UK and is a member of the REF2021 panel evaluating the research quality of UK universities.
In addition to being joint authors of Marketing: Concepts and Strategies, they produced the
innovative The Marketing Casebook: Cases and Concepts (Thomson), mixing real-world cases
with overviews of theory, and The Market Segmentation Workbook and The Marketing Planning
Workbook (both published by Thomson), aimed at assisting marketing practitioners to reassess
their target markets and understand the complexities of marketing planning. These workbooks
were based on their consultancy experiences with organizations as diverse as ABB, Accenture,
AstraZeneca, GalaCoral, Calor, EDF Energy, Eon, Ernst & Young, Fujitsu, Geocell, GfK, IKEA, JCB,
Lockheed Martin, McDonald’s, Nynas, QinetiQ, Raytheon, Royal SunAlliance, Tilda and Willis. Both
Workbooks have been translated and published in China and Russia. Sally and Lyndon published
the revision aid, Marketing Briefs (Elsevier Butterworth – Heinemann). While primarily targeted at
students preparing for examinations in marketing, Marketing Briefs was also ideal for providing time-
pressured managers with concise and topical insights into the core concepts and tools of strategic
marketing. The acclaimed Market Segmentation Success: Making It Happen! was published by
Routledge in America. Cengage published the very popular Marketing Planning title, aimed at prac-
ticing marketers. Marketing Essentials was the little sister to Marketing: Concepts and Strategies,
targeting college courses introducing the subject of marketing. Sally and Lyndon have both also
contributed chapters to many books of collected readings. Lyndon recently co-edited The Dark
Side of CRM for Routledge and Sally has co-authored The Private Security State? for CBS Press.

Bill Pride and O.C. Ferrell first teamed up to produce Marketing for Houghton Mifflin in
1977. Since then, the American sister of Marketing: Concepts and Strategies, now in its nine-
teenth edition, has been used by over two million students and has become one of the principal
marketing texts in the USA. OC is the James T Pursell, Sr. Eminent Scholar in Ethics and Direc-
tor of the Center for Ethical Organizational Cultures at Auburn University. He is the President
of the Academy of Marketing Science and a former President of the Academic Council for the
prestigious American Marketing Association (AMA). OC is the author of many texts, including
­Marketing Strategy (Cengage), Business Ethics: Ethical Decision Making and Cases (Cengage)
and ­Business: A Changing World (Irwin/McGraw-Hill). Bill Pride is Professor of Marketing at Texas
A&M University, where he specializes in marketing communications, strategic marketing planning
and business marketing education. Like OC, he has published a large number of journal papers
and is widely recognized in the marketing field. Bill is also co-author of Business (Cengage).
xii

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Fit your coursework
into your hectic life.
Make the most of your time by learning
your way. Access the resources you need
to succeed wherever, whenever.

Study with interactive tools and resources designed to


help you master key concepts and prepare
you for class.

Review your current course grade and


compare your progress with your peers.

Get the free MindTap Mobile App and


learn wherever you are.

Break Limitations. Create your


own potential, and be unstoppable
with MindTap.

cengage.co.uk/education/Mindtap

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Credits
Chapter 1: 5 – ©Deliveroo; 16 - ©Macmillan Cancer Chapter 12: 349 – ©Andrew Aitchison/Alamy Stock Photo;
­Support; 29 – ©Lordprice Collection/Alamy Stock Photo; 37 351 – ©Sipsmith; 361 – ©ka2shka/Thinkstock/iStock; 369
– ©Tooykrub/Shutterstock – ©Iain Sharp/Alamy Stock Photo; 375 – ©TungCheung/
Shutterstock
Chapter 2: 39 – ©metamorworks/Thinkstock/iStock; 44 –
©Eric Farrelly/Alamy Stock Photo; 71 – ©KatarzynaBialasiewicz/ Chapter 13: 377 – ©Edward Simons/Alamy Stock Photo;
Thinkstock/iStock 381 – ©Capital Hair; 397 – ©National Farmers Union of Eng-
land and Wales (NFU); 402 – ©Rawpixel.com/Shutterstock
Chapter 3: 74 – ©Jorisvo/Thinkstock/iStock; 78 – ©Inno-
cent Drinks; 85 – ©Costa Coffee; 107 – ©Tilda Chapter 14: 404 – ©Suwanmanee99/Thinkstock/iStock;
417 – ©© Lou Linwei/Alamy; 420 – ©Dunelm; 429 – ©David
Chapter 4: 109 – ©Suntory Group; 114 – ©Michele and
J. Green/Alamy Stock Photo
Tom Grimm/Alamy Stock Photo; 117 – ©Premier Inn;
133 – ©Lou Linwei/Alamy Stock Photo; 136 – ©JIRAROJ Chapter 15: 431 – ©cybrain/Thinkstock; 443 – ©ilfede/
PRADITCHAROENKUL/Thinkstock/iStock Thinkstock; 465 – ©Lightworks Medi/Alamy Stock Photo

Chapter 5: 143 – ©Raleigh and Leisure Outlet; 147 – ©Bana- Chapter 16: 468 – ©NSPCC; 472 – ©Nestlé, Cheerios; 493
naStock/Thinkstock; 152 – ©LuckyBusiness/Thinkstock/ – ©Helen/Alamy Stock Photo
iStock; 153 – ©M.C. Escher’s “Fish and Birds” © 2018 The
Chapter 17: 495 – ©Lee Thomas/Alamy Live News;
M.C. Escher Company-The Netherlands. All rights reserved.
501 – ©Tesco; 510 – ©Jeff Morgan 07/Alamy Stock Photo;
www.mcescher.com; 155 – ©Rawpixel/Thinkstock/iStock;
512 – ©O2; 528 – ©Jupiterimages/Thinkstock/Stockbyte
158 – ©Kate Plumb, Abbot Mead Vickers. BBDO; 172 –
©Ryan McVay/Thinkstock Chapter 18: 530 – ©ysuel/Thinkstock/iStock; 539 – ©T­oyota;
549 – ©Vouchercloud.com; 554 – ©gaunion/Thinkstock/
Chapter 6: 174 – ©Fujitsu; 178 – ©Dun & Bradstreet; 180
iStock; 566 – ©Choreograph/Thinkstock/iStock
– ©Accenture; 191 – ©Jeffrey Blackler/Alamy Stock Photo;
196 – ©Digital Vision/Thinkstock; 203 – ©picturesbyrob/ Chapter 19: 568 – ©incamerastock/Alamy Stock Photo;
Alamy Stock Photo 572 – ©Webtouch Solutions Ltd; 576 – ©Viktor_Gladkov/
Thinkstock/iStock
Chapter 7: 205 – ©Arndt_Vladimir/Thinkstock/iStock; 209
– ©Harley-Davidson; 215 – ©Keith Homan/Alamy Stock Chapter 20: 586 – ©German-skydiver/Thinkstock/iStock;
Photo; 232 – ©Martin Thomas Photography/Alamy Stock 588 – ©zhudifeng/Thinkstock/iStock; 589 – © Consumer
Photo Trends/Alamy; 618 – ©Tinatin1/Thinkstock/iStock
Chapter 8: 234 – ©jorgeantonio/Thinkstock/iStock; 237 – Chapter 21: 620 – ©Kumar Sriskandan/Alamy Stock Photo;
©Maurice Savage/Alamy Stock Photo; 252 – ©Tommytang/ 621 – ©Antony Nettle/Alamy Stock Photo; 626 – ©National
Shutterstock; 253 – ©martinrlee/Thinkstock/iStock; 253 – Farmers Union of England and Wales (NFU); 640 – ©Nestlé;
©wastesoul/Thinkstock/iStock; 257 – ©IAMS 648 – ©naveen0301/Thinkstock/iStock; 653 – ©Olivier Le
Moal/Thinkstock/iStock
Chapter 9: 260 – ©pandpstock001/Thinkstock/iStock; 262
-©grinvalds/Thinkstock/iStock; 265 – ©Ipsos MORI; 268 – Chapter 22: 658 – ©B Christopher/Alamy Stock Photo;
©Aquila Insight; 275 – ©Marmaduke St. John/Alamy Stock 660 – ©PwC; 681 – ©Supriya07/Shutterstock; 685 – ©Ken
Photo; 283 – ©CACI; 290 – ©monkeybusinessimages/ Wolter/Alamy Stock Photo
Thinkstock/iStock; 293 – ©junpinzon/Shutterstock
Chapter 23: 687 – ©Neil Farrin/Getty Images; 695 –
Chapter 10: 300 – ©Innocent Drinks; 302 – ©­bowdenimages/ ©­
alex-mit/Thinkstock/iStock; 702 – ©­
Samsung; 723 –
Thinkstock/iStock; 306 – ©Tilda; 317 – ©hans engbers/ ©Anthony Pleva/Alamy Stock Photo
Alamy Stock Photo
Chapter 24: 725 – ©Chad Baker/Jason Reed/Ryan McVay/
Chapter 11: 319 – ©Photofusion/REX; 328 – ©Allan Ivy/ Thinkstock/Photodisc; 731 – ©­ Jupiterimages/Thinkstock/
Alamy Stock Photo; 332 – ©Whitbread PLC; 333 – ©The Creatas; 731 -©ec.europa.eu/environment/ecolabel; 742 –
Kraft Heinz Company; 338 – ©Andrey Burstein/­Shutterstock; ©Justin Kase z12z/Alamy Stock Photo; 745 – ©Change4Life
340 – ©Tetra Pak (UK); 347 – ©Keith Larby/Alamy Stock (C4L); 751 – ©Hoaru/Thinkstock/iStock; 754 – ©Ryan
Photo McVay/Thinkstock/Photodisc

xiv

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Part One
Marketing defined and
marketing in context
Legal
forces

Customer
value
proposition
Political Product/ Target Regulatory
forces brand Product/ market forces
positioning people/service/ strategy
engagement

Buyer/
Place/
Price/ consumer
distribution/
value satisfaction
channel

Differential Promotion/
Techno- marketing communications Marketing Societal/
advantage/ opportunity
logical green
competitive definition
forces forces
edge
Desired
customer
experience

Economic and
competitive forces

M
arketing focuses on looking after customers. through the creation, distribution, promotion and
This involves a set of processes for creat- ­pricing of goods, services and ideas.
ing, communicating and delivering value The simple premise of marketing is that to be
to customers; for managing customer relationships; ­successful, any organization must understand its
and for providing strategic direction to an organiza- customers’ requirements and satisfy them in a
tion based on market insights and understanding of manner that gives the organization an edge over
customers. Marketing consists of individual and orga- its competitors, and by staying abreast of changing
nizational activities that facilitate and expedite satisfy- market dynamics it will continue to offer compelling
ing exchange relationships in a dynamic environment propositions to these targeted customers relevant
1

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
2  Part One Marketing defined and marketing in context

to their evolving needs and markets to prioritize, marketing should create target
marketing mix
The tactical ‘toolkit’­expectations. This involves customer engagement strategies, establish the ‘wow’
of the marketing pro- offering the ‘right’ marketing factor and ensure that there is a robust basis for com-
gramme; product, place/mix of ­product, people, ser- peting. Marketing programmes should be developed
distribution, promotion,
vice, pricing, promotion and which are appropriate for the successful execution
price and people vari-
distribution channel. Mar- of this strategy. Therefore marketing as a process
ables that an organiza-
keting depends, therefore,
tion can control in order involves marketing analysis, marketing strategy and
to appeal to the targeton the constant updating marketing management, as explored in Marketing:
market and facilitate of ideas and market knowl- Concepts and Strategies.
satisfying exchange. edge. Customers are often The term ‘customer’ should be treated loosely.
surprisingly fickle and modify While in commercial settings, it means consumers
their needs and wants; rivals in consumer markets or business customers in busi-
alter their strategies; and forces in the marketplace ness marketing, it is just as important to understand
regularly change, creating new threats and opportu- and satisfy those audiences served or represented
nities. As will be explained, while marketing focuses in the public and voluntary sectors. Such organiza-
on understanding customers and delivering ongoing tions benefit from adopting the marketing concept
satisfaction, there is much more to marketing than and ­process . . . they also must strive to stay ahead
serving customers through marketing programmes. of changing environmental conditions, maximize use
Marketing’s core focus is indeed the understanding of their resources to deliver their aims, compete for
and ongoing satisfaction of targeted customers, but attention, and seek to understand and satisfy their
marketers must provide much more for their organi- audiences and stakeholders. Marketing is relevant
zations. Effective marketing should analyze markets and prevalent outside commercial brands. For exam-
in order to be able to maintain customer interest and ple, Social Marketing is one of the biggest growth
satisfaction, combat competitors, identify new oppor- areas for the discipline, creating behavioural change
tunities and recognize threats. Marketers should be in the pursuit of social goals and objectives, often for
the ‘eyes and ears’ for their organizations regarding improved well-being and the greater good of society,
market dynamics. Having determined which opportu- with, for example, interventions to reduce smoking,
nities to pursue and having agreed the mix of target increase fitness or prevent bullying.

Part One of Marketing: Concepts and Strategies introduces the nature and scope of
­marketing and the marketing process, marketing strategy and competitive forces. The aim of
Part One is to define marketing and enable readers to appreciate its context.

Chapter 1, ‘The marketing concept’, defines marketing; establishes its importance to organi-
zations and to consumers; and outlines the major components of marketing strategy – notably
marketing opportunity analysis, target market selection, competitive advantage and the develop-
ment of marketing programmes designed to implement the marketing strategy. The discussion
also examines the concept of marketing orientation within an organization. The chapter establishes
the ethos of Marketing: Concepts and Strategies, describes the structure of the text and presents
an overview of the marketing process. Important concepts presented in Chapters 1 and 2 are
deliberately repeated throughout this text. It is important for the reader to understand and accept
them before progressing to the following chapters.

Chapter 2, ‘Marketing strategy and understanding competitors’, presents an overview of


marketing strategy and the strategizing process. This chapter aims to highlight which strategic
marketing considerations help to ensure that a product or service is marketed for the benefit
of the organization as well as its targeted customers. The product or service should be mar-
keted differently enough from competitors’ marketing programmes to provide the organization’s

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Part One Marketing defined and marketing in context   3

product or service with a perceived advantage over these competitors. The chapter first explores
what is marketing strategy and the importance of organizational mission, goals and corporate
strategy. The discussion next turns to assessing organizational opportunities, capabilities and
SWOT (strengths, weaknesses, opportunities and threats) issues, as well as identifying strategic
objectives. The chapter addresses the all-important role of identifying market segments, targeting
and brand positioning in marketing strategy: the development of clear target market priorities. It
then focuses on competitive strategies for marketing: the role of competition, its ramifications for
strategy, competitive positions and warfare strategies. The link between marketing objectives and
marketing mix programmes is examined, along with implementation and performance monitoring.

Chapter 3, ‘The marketing environment’, explores the importance to marketers – and


­organizations – of staying informed by developments and changes around them. These forces of
what is known as the ‘macro marketing environment’ include economic, political, legal, regula-
tory, societal and technological developments, which inevitably impact on markets, organizations
operating in a particular sector, consumers and individual brands. They present opportunities (if
observed and addressed) and threats (if unnoticed or ignored) to marketers. An organization’s
overall strategy must be informed by these forces of the marketing environment. The chapter also
explores the concept of environmental scanning and the notion of strategic windows of oppor-
tunity. The ‘micro marketing environment’ consists of competitive forces and rivalry, which tend
to have more specific impact on a particular organization or brand. These external competitive
forces are also explored in this chapter. Without an appreciation of these forces and how they will
impact, it is not possible for the Marketing team to be the eyes and ears for its company, identifying
threats and emerging opportunities.

Chapter 4, ‘Marketing in international markets’, reflects the fact that many organizations and
brands trade across national boundaries, requiring additional market insights and some flexibility
in terms of marketing strategies and marketing programmes. The marketing environment forces,
customer issues, competitor activities and an organization’s capabilities differ from country to
country and region to region. How marketers should address non-domestic markets is examined
in this chapter, including available market entry strategies.

By the conclusion of Part One of Marketing: Concepts and Strategies, readers should understand
what is meant by the terms marketing, marketing orientation, marketing strategy and the marketing
process, the forces of the macro and micro marketing environment, environmental scanning and
strategic windows of opportunity, as well as international marketing. The essential themes in Part
One are developed further as the text continues.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 1
The marketing concept
Satisfying and retaining customers better than rivals

INTRODUCTION
Objectives Marketing’s primary aim is the identification of target markets
and the satisfaction of these customers, now and in the future.
To define marketing.
In most organizations, marketing fulfils an analytical function,
To appreciate the context of mar- provides strategic direction and executes a set of tactical activ-
keting and marketing orientation. ities designed to attract and retain the targeted customers to the
organization’s products or services. Marketers should strive to
To explain the marketing process.
be the ‘radar’ or ‘eyes and ears’ for their organizations in terms
To understand the importance of of assessing opportunities, identifying threats and preparing
marketing. their colleagues for the evolving challenges in the marketplace.
There is much more to marketing than creating an advertise-
To gain insight into the basic ele-
ment, producing an eye-catching price promotion, jazzing up a
ments of the marketing concept
website or developing a brand.
and its implementation.
Organizations with a marketing orientation have more than
To understand how the marketing just a few staff engaged in marketing activities and analyt-
concept has evolved and some of ics. Such organizations have a sound awareness of custom-
the current ‘hot’ themes. ers’ needs and buying behaviour, competitors’ offerings and
strategies, and of market trends. They take steps to ensure
To appreciate the major compo-
they know how these market conditions will evolve. In addi-
nents of a marketing strategy and
tion, they orientate their operational practices and coordinate
the marketing mix.
the inter-functional thinking of their organization around these
To gain a sense of general strategic market conditions. Leadership teams have a desire for market
marketing issues, such as market insights and to align their thinking around developments in their
opportunity analysis, target mar- markets.
ket selection and marketing mix Effective marketing involves an analytical process com-
development. bining marketing analysis, strategizing and the creation of
marketing programmes designed to implement a designated
To grasp the ethos and structure of
marketing strategy. Marketing opportunity analysis is a pivotal
this book.
part of marketing, involving the determination of emerging
and existing market opportunities and the choice of which to
address. At the heart of a marketing strategy is the formation
of a target market strategy and a basis for competing in order
to focus on the opportunities prioritized by the organization.
Most members of the general public think of ‘advertising’,
‘social media use’, ‘marketing research’ or ‘sales persuasion’
when the term ‘marketing’ is mentioned. These brief introduc-
tory comments explain that there is, in fact, much more to mar-
keting. This first chapter of Marketing: Concepts and Strategies
is designed to define marketing and explain its role.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 1 The marketing concept   5

Your meals
M arkets often face
disruption . . . a
new company, idea or way
on wheels
driver/rider smartphone
software.
How often have you
of providing customers with desired a restaurant’s
what they want. Such disruption dishes or varied menu from
generally creates casualties, as tra- which to select, but have not had
ditional providers struggle to compete or update their own the freedom, flexibility or time to go
thinking. Uber is one very popular example of such disruption, out of your home to enjoy the restaurant experience? Some
creating a new business model and providing a more flexi- restaurants and take-aways previously offered home delivery,
ble and cost-effective travel alternative for millions of users. but the majority did not. If you were not able to go to them
The technology companies such as Waymo and Tesla now to dine or to collect your own take-out meal, there was no
rivalling traditional automotive producers with driverless and other solution. Deliveroo offers a cost-effective solution to this
electric vehicles will prove to be similarly disruptive. However, dilemma, which appeals both to restaurants seeking to cater
disruptive or innovative business ideas are only successful if for such consumer demand, as well as consumers needing
they contain at their heart a business proposition which is someone to bring their meals home to them.
compellingly appealing to its targeted consumers. Uber has The company makes money by charging restaurants a
managed to achieve this desirability. So, too, has another new commission fee, as well as by charging customers a fee per
service . . . Deliveroo. order. Deliveroo, founded in London, now operates in two hun-
Deliveroo is a technology company focused on marketing, dred towns and cities in the UK, as well as in the Netherlands,
selling and delivering restaurant meals to the household or France, Germany, Belgium, Ireland, Spain, Italy, Australia, Hong
office. Deliveroo’s technology platform optimizes food order- Kong, Singapore and the United Arab Emirates. Orders are
ing and delivery by integrating web and mobile consumers placed through its app or website and then self-employed
with restaurant tablet-based point-of-sale order management bicycle or motorcycle couriers transport orders from restau-
terminals and its logistics optimization algorithm via delivery rants to customers. Over 15 000 food couriers now work part-
time or full-time for Deliveroo, many working around studying
or other commitments. There are well-known rivals also pro-
viding such services to hungry consumers and to restaurant
owners keen to serve non-dining-in customers. The most
well-known include Hungryhouse, Just Eat, UberEATS and
Grubhub.
Some fast food take-aways have dropped their own
delivery staff and instead now outsource to Deliveroo. For
many restaurants previously unable or unwilling to provide
delivery services for their meals, Deliveroo and similar rivals
have opened up a whole new market opportunity; one incur-
ring no direct set-up costs in terms of staff recruitment or
acquiring delivery vehicles. Even the fast food chains such as
McDonald’s, Burger King and KFC can now cost-effectively
offer delivery of their low-margin meals and still be profit-
able. The restaurant proprietors, their hungry customers and
the thousands of delivery riders now employed in providing
a service which a decade ago did not exist, are benefiting. At
the heart of the Deliveroo or Hungryhouse digital concept is
a proposition which resonates with a large number of hungry
consumers.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
6  Part One MARKETING DEFINED AND MARKETING IN CONTEXT

T
his chapter first overviews the concept of marketing orientation before developing a definition
of marketing. The focus then moves on to consider why people should study marketing and
why marketing is important. The chapter proceeds to explore the marketing concept and
examines several issues associated with successful implementation. It then explains the impor-
tance of an analytical process to effective marketing, from analysis to strategy formulation to the
creation of marketing programmes. Deliveroo has a marketing strategy targeting consumers and
restaurant operators which is based on an analysis of the restaurant, take-away and in-home dining
sectors. How the marketing concept has evolved and topical themes are highlighted. The chapter
concludes by discussing the organization and running order of this text book.
The concepts and strategies discussed throughout this text are applicable to consumer goods
and services, business-to-business products and services, public sector organizations, as well as
to not-for-profit and many social sector organizations. As explained in the Part Opener, the term
‘customer’ in the definitions of marketing should be treated somewhat loosely. While, in commercial
settings, it means consumers in consumer markets or business customers in business marketing,
the themes explored in Marketing: Concepts and Strategies extend beyond such parameters. The
understanding and satisfying of audiences served or represented is just as important in the public
and voluntary sectors. Such organizations benefit from adopting the marketing concept and process,
as they – as with commercial brands – also must strive to stay ahead of changing environmental
conditions, maximize use of their resources to deliver their aims, compete for attention, and seek to
understand and satisfy their audiences and stakeholders.
Like all the chapters in Marketing: Concepts and Strategies, this one contains detailed topical
illustrative examples in highlighted boxes, presents cases for discussion, suggests internet exercises
at its conclusion, lists at the end all the key terms presented in the chapter, provides discussion and
review questions to emphasize the key themes and offers suggested further reading choices. In
addition, as the principal definitions are introduced in the text, they are repeated in the margins for
ease of understanding, glossary-style. If you have not yet done so, before tackling the chapters you
should read the ‘Preface’ to this book in order to understand the perspective, structure and chapter
components of Marketing: Concepts and Strategies.

Marketing explained and defined


The traditional view of marketing is of a team of managers inside an organization responsible for
surveying customers, communicating the brand, managing advertising and developing campaigns.
Perhaps this rather constrained remit was true many decades ago and certainly there are still
organizations yet to recognize its full potential, but the reality is that marketing is responsible for
so much more:
●● Understanding markets, developing market insights and being the ‘eyes and ears’ for an orga-
nization, in terms of identifying threats and new business opportunities, tracking competition
and staying on top of changing customer expectations.
●● Shaping an organization’s strategy in terms of the selection of which opportunities to pursue,
product portfolios to sustain, target market decisions and competitive positioning.
●● Managing brands and creating compelling product propositions intended to excite customers,
attract new ones, retain those already buying from the organization and make life awkward for
competitors.
●● Managing customers’ experience in order to maximize revenue, retain lucrative customers and
combat competitors’ actions.
Campaigns, advertising, brand strategy and marketing research – as depicted in TV’s 1960s-set
Mad Men – are indeed part of the remit for marketing, but there is so much more required for
marketers to understand as they add value to their organizations.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 1 The marketing concept   7

The associated set of necessary capabilities is extensive, including market insight and analytics,
strategic thinking and planning, creativity and programme development, project execution and
performance evaluation. All occurring in hugely dynamic environments, in which market condi-
tions are always evolving, strategies must be re-thought so as to remain pertinent and marketing
programmes kept relevant to these challenges. Here lies the excitement for most marketers, who
relish this challenging and ever-changing life.

Marketing orientation
marketing orientation
An organization exhibiting a marketing orientation is said to have a sound under-
A marketing-oriented standing of customer needs, buying behaviour and the issues influencing the purchasing
organization devotes choices of customers. A marketing-oriented organization also has a shrewd apprecia-
resources to understand- tion of competitors and external marketing environment forces and trends.1 In addition
ing the needs and buying to comprehending these customer, competitor and marketing environment issues, a
behaviour of customers,
competitors’ activities
marketing-oriented organization ensures its operations, personnel and capabilities are
and strategies, and of aligned to reflect these external drivers. A truly marketing-oriented organization under-
market trends and exter- stands these current issues, but is also focused on identifying how they will evolve, so
nal forces – now and as ensuring that the organization’s strategy and capabilities are modified to reflect not just
they may shape up in the current market requirements but also future market conditions.
future; inter-functional
coordination across the
A marketing-oriented organization devotes resources to understanding the needs and
company ensures that buying behaviour of customers, competitors’ activities and strategies, and market trends
the organization’s activ- and external forces (now and as they may shape up in the future). Inter-functional coor-
ities and capabilities are dination across the company ensures that the organization’s activities and capabilities
aligned to this marketing are aligned to this marketing intelligence and that strategic choices reflect the changing
intelligence.
dynamics of the company’s markets.
Not all organizations can claim to have a marketing orientation. For example, some
are purely sales-led, concentrating on short-term sales targets, whereas other organi-
zations are production-oriented, choosing to emphasize product development and production
efficiency in their business strategy. Few experts would argue against maximizing sales or seeking
leading-edge lean production practices, or indeed the adoption of best-practice financial and
human resource approaches. Similarly, the adoption of a marketing orientation is highly desirable.
A marketing orientation is of significant benefit to an organization, as it facilitates a better under-
standing of customers and helps a business to prepare for external market developments, threats
and opportunities. It is difficult to contemplate a scenario where a marketing orientation would not
be beneficial to an organization.
An organization practicing the concepts explained in Marketing: Concepts and Strategies is
well on the way to having a marketing orientation. However, it is important that inter-functional
coordination aligns the activities within the organization and also the leadership team to the market-
place, specifically to customer buying behaviour, competitive pressures and marketing environment
forces, and to the evolving nature of these market conditions. The use of some of marketing’s
concepts and an understanding of the role of marketing in attracting and satisfying customers,
are not enough on their own to establish a marketing orientation. However, failure to comprehend
the core concepts of marketing will make a marketing orientation impossible to achieve. The focus
of this text, therefore, is on explaining the core concepts of marketing which are the entry point
requirements for going on to establish a marketing orientation.
It is possible for an organization lacking a full marketing orientation to nevertheless deploy and
benefit from aspects of the marketing toolkit as described in the following chapters. For instance,
many businesses have an adequate understanding of their customers, but not all have fully grasped
their competitors’ strategies or the challenges present in the external marketing environment. Obvi-
ously, it is better not to operate in ignorance of these external pressures, which may create threats
or opportunities. The definition of marketing per se is not, therefore, the same as the definition of
marketing orientation.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
8  Part One MARKETING DEFINED AND MARKETING IN CONTEXT

Marketing defined
Asking members of the public to define marketing is an illuminating experience. They will respond
with a variety of descriptions, including ‘advertising’, ‘social media messaging’, ‘selling’, ‘hype’,
‘conning people’, ‘spying’, ‘stealing my data’, ‘pestering me’, ‘targeting’ and ‘packaging’. In reality,
marketing encompasses many more activities than most people realize and depends on a wealth of
formal concepts, processes and models beyond the soundbites just listed. Since it is practiced and
studied for many different reasons, marketing has been defined in many different ways, whether
for academic, research or applied business purposes. This chapter examines what is
marketing
meant by the term marketing.
Activities that facilitate
and expedite satisfying Marketing consists of individual and organizational activities that facilitate and
exchange relationships in expedite satisfying exchange relationships in a dynamic environment through
a dynamic environment, the creation, distribution, promotion and pricing of goods, services and ideas.
through the creation, dis-
tribution, promotion and Dibb, Simkin, Pride and Ferrell in Marketing: Concepts and Strategies
pricing of goods, services
and ideas. Marketing is
a function and a set of
The basic rationale of marketing is that a successful organization requires satisfied
processes for creating, and happy customers who return to the organization to provide additional custom. In
communicating and exchange for something of value, typically payment or a donation, the customers receive
delivering value to cus- a product or service that satisfies their needs. Such a product has an acceptable level
tomers and for managing of quality, reliability, customer service and support, is available at places convenient for
customer relationships
in ways that benefit
the customer at the ‘right’ price, and is promoted effectively by means of a clear mes-
the organization and its sage that is readily comprehended by the customers in question. For example, in return
stakeholders. for quenching thirst at affordable prices with a reliable product that is widely available
in easy-to-use containers, Coca-Cola receives a great deal of money from c ­ ustomers.
Unfortunately for companies and their marketers, customers’ requirements change
as their needs alter, marketing messages infiltrate their thinking, friends and colleagues discuss
purchases, and competing products are pushed by rival organizations. In the dynamic world of
marketing, an effective solution to satisfying customer needs rarely has longevity. Newspapers
are no longer adequate for most information-hungry people, who today turn to their smartphones
and tablets for up-to-the-minute news and entertainment. Marketers must constantly assess their
customers’ requirements and competitors’ propositions, being prepared to modify their marketing
activity accordingly. An assessment of marketing opportunities is an ever-evolving process requiring
regular revision and updating.

Marketing is the management process responsible for identifying, anticipating and satis-
fying customer requirements profitably.
Chartered Institute of Marketing

Understanding customers and anticipating their requirements is a core theme of effective


­marketing.2 So, too, is understanding general market trends and developments that may affect
both customers’ views and the activities of organizations operating in a particular mar-
marketing
ket. These factors may include social trends, technological enhancements, economic
environment patterns and changes in the legal and regulatory arena, as well as political influences.
External changing These are often termed the forces of the marketing environment. Compared with five
forces within the trading years ago, for example, look at how many companies now produce products in ‘envi-
environment: laws, regu- ronmentally friendly’ packaging in line with the social trend of the ‘green consumer’. Or,
lations, political activities,
societal pressures,
owing to recession, consider how many companies now have value ranges.
economic conditions and An organization does not have a marketplace to itself. There are direct competitors,
technological advances. new entrant rivals and substitute products offering alternative solutions to a customer’s
specific need. Construction-equipment giant JCB markets trench-digging equipment

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 1 The marketing concept   9

to construction firms, utilities and local authorities. The growth of subterranean tunnelling robotic
‘moles’ for pipe laying, requiring no trench digging, is a substitute for the traditional JCB backhoe
loader and is a major competitive threat, which JCB’s marketers and product ranges must combat.
The competitive context is of fundamental importance to marketers of any good or service. The
internal resource base of the business which drives its strengths and weaknesses will determine
which market opportunities are viable for the organization to pursue, so marketers must be aware
of their capabilities. Marketers also must be aware of how the organization is succeeding and failing
financially, and thereby which existing and new products and markets are worthwhile. Marketing,
therefore, depends on the successful analysis of customers, the marketing environment, compe-
tition, internal capabilities and performance.

The aim of marketing is to make selling superfluous. The aim is to know and to understand
the customer so well that the product or service fits him/her and sells itself!
US management guru Peter Drucker

With an understanding of these aspects of the marketplace, an organization must then develop
a marketing strategy. Even the mighty global organizations such as GM, Apple, IBM, KPMG,
Vodafone or Unilever choose not to offer a product for every type of consumer or customer need.
Instead, they attempt to identify groups of customers where each separate group – or ‘market
segment’ – has ‘similar’ needs. Each group of customers may then be offered a specifically-­
tailored product or service proposition and a ‘marketing mix’ programme. The Ford Kuga off-roader
appeals to a separate group of customers than does the Ford Ka city car, and it is marketed totally
differently. In developing unique marketing programmes for individual market segments – groups of
customers – an organization must prioritize which particular groups of customers it has the ability
to serve and which will provide satisfactory returns. Organizations have limited resources, which
restricts the number of segments in a market which can be targeted. In deciding which segments
to target, an organization must be clear about the image – or brand positioning – it intends to offer
to each group of customers. The organization should endeavour to serve those customers it targets
in a manner that gives it an edge over its competitors. Knowing how to group customers sensibly
into homogeneous market segments, determining which to target, selecting a suitable positioning
and seeking superiority over rivals, are some of the core elements of marketing strategy.

The marketing concept holds that the key to achieving organizational goals lies in deter-
mining the needs and wants of target markets and delivering the desired satisfaction more
efficiently and effectively than the competition.
US marketer Philip Kotler

Once a company has devised a marketing strategy, its attention must switch to marketing mix
programmes.3 As consumers of food brands, audio products or banking services, all readers
of this text will have experienced the marketing mix programmes of major companies such as
Cadbury’s, Apple or Barclays. These are the tactical actions of marketing departments, which
are designed to implement the desired marketing strategy by attracting, engaging and continuing
to serve targeted customers. Companies strive to provide a good customer experience and to
build an ongoing relationship with their most lucrative customers, with well-developed customer
value propositions and carefully honed marketing programmes. The product or service must be
aligned to target customer needs; service levels and guarantees must be determined, pricing
and payment issues decided, channels of distribution established to make the product or service
available, and promotional strategies devised and executed to communicate with the targeted
customers. These tactical aspects of marketing programmes – often referred to as the marketing
mix – must be well managed, monitored and controlled to ensure their successful execution and
performance.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
10  Part One MARKETING DEFINED AND MARKETING IN CONTEXT

Marketers should understand their markets – customers, competitors, market trends – as well
as their own capabilities and performance before developing marketing programmes. A marketing
strategy must be determined that reflects the analyses, before the marketing programmes that will
be used to action the recommended strategy are specified. Analysis first, then Strategy decisions
with finally the formulation of marketing Programmes: the ASP of the marketing process. The
focus must be on providing customer satisfaction, but in a manner that leads to the organization’s
successful performance. For example, by addressing customers’ needs and adopting a marketing
culture incorporating clear controls, construction equipment manufacturer JCB has enjoyed the
most successful financial returns in the company’s history and has become a truly global leader
in its field.
The intention of this text is to comprehensively explore these facets of marketing and thus
­provide a sound conceptual basis for understanding the nature and activities of marketing. There
are many definitions of marketing, since it is not a pure science. However, certain core ingredients
of the various definitions collectively indicate the basic priorities of marketing:
●● satisfying customers
●● identifying/maximizing marketing opportunities
●● targeting the ‘right’ customers
●● facilitating exchange relationships
●● attracting and retaining worthwhile customers
●● staying ahead in dynamic environments
●● endeavouring to beat and pre-empt competitors
●● utilizing resources/assets effectively
●● increasing market share
●● enhancing profitability or income
●● satisfying the organization’s stakeholders.

These aims form the objectives for many marketing directors and marketing departments. They are
featured throughout this text, which formally adopts two definitions of marketing by the ­American
Marketing Association. As already stated, marketing consists of individual and organizational activi-
ties that facilitate and expedite satisfying exchange relationships in a dynamic environment through
the creation, distribution, promotion and pricing of goods, services and ideas. Along with the
Association’s more practical explanation:

Marketing. Noun. An organizational function and a set of processes for creating, com-
municating and delivering value to customers and for managing customer relationships
in ways that benefit the organization and its stakeholders.

Marketing indeed must be viewed as a process . . . of analysis to gain market insights, strategy
decisions to make choices, and the roll-out and management of marketing programmes in order
to implement the desired marketing strategy. Unless marketing is recognized to be this analyti-
cal process, most of the benefits of a strong, market-led culture will not materialize. A definition
of marketing must acknowledge that it relates to more than just tangible goods, that marketing
activities occur in a dynamic environment and that such activities are performed by individuals as
well as organizations.4 The ultimate goal is to satisfy targeted customers and stakeholders, seek-
ing their loyalty and ongoing consumption, in a way that adds value for the organization and its
stakeholders. This should be achieved in a manner that is differentiated in the view of customers
and stakeholders vis-à-vis competitors’ marketing, that provides an organization with a competitive
edge over rivals and that is updated regularly to reflect market forces and developments. To be in
a position to satisfy targeted customers or stakeholders, much work is required by those tasked

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 1 The marketing concept   11

within the organization and their external partners to conduct the required marketing analyses,
develop sensible marketing strategies and create appropriate marketing programmes to take to
market . . . repeatedly and regularly.

The definitions of marketing explored


Marketing consists of individual and organizational activities that facilitate and expedite satisfying
exchange relationships in a dynamic environment through the creation, distribution, promotion and
pricing of goods, services and ideas.

Marketing consists of activities


The marketing of products or services effectively requires many activities. Some are performed by
producers; some are accomplished by intermediaries, who purchase products from producers or
from other intermediaries and resell them; and some are even performed by purchasers. Marketing
does not include all human and organizational activities, only those aimed at facilitating and expe-
diting exchanges. Table 1.1 lists several major categories and examples of marketing activities, as
ultimately encountered by the consumer or business customer, who remains at the ‘sharp end’
of such decisions and marketing programmes. Note that this list is not all-inclusive. Each activity
could be sub-divided into more specific activities.

TABLE 1.1 Possible decisions and activities associated with marketing mix variables
Marketing mix variables Possible decisions and activities
Product Develop and test market new products; modify existing products; eliminate products that do not satisfy c­ ustomers’
desires; formulate brand names and branding policies; create product guarantees and establish procedures for
fulfilling guarantees; provide customer service; plan packaging, including materials, sizes, shapes, colours and
designs
Place/distribution Analyze various types of distribution channels; design appropriate distribution channels; select appropriate channel
members and partners; design an effective programme for dealer relations; establish distribution centres; formu-
late and implement procedures for efficient product handling; set up inventory controls; analyze transportation
methods; minimize total distribution costs; analyze possible locations for facilities and wholesale or retail outlets;
manage multiple channels to market; understand the role of digital channels
Promotion (marketing Set promotional objectives; determine major types of promotion to be used; select and schedule advertising media;
communications) develop advertising messages; measure the effectiveness of advertisements; recruit and train salespeople; formulate
payment programmes for sales personnel; establish sales territories; plan and implement sales promotion efforts such
as free samples, coupons, displays, competitions, sales contests and cooperative advertising programmes; prepare and
disseminate publicity releases; evaluate sponsorships; provide direct mail; manage search engines; maintain active
websites and a digital presence; address social media and create online communities; seek to manage reputation
Price Analyze competitors’ prices; formulate pricing policies; determine method(s) used to set prices; set prices;
­determine discounts for various types of buyer; understand comparison pricing; establish conditions and terms
of sales; determine credit and payment terms; understand the consumers’ notion of value
People Manipulate the marketing mix and establish service levels, guarantees, warranties, expertise, sales support, after
sales back-up, customer handling requirements, personnel skills, training and motivation; make products and
­services available; manage intermediaries; deliver customer experience; handle customer distress or annoyance;
and execute customer retention plans

Marketing is performed by individuals and organizations


All organizations perform marketing activities to facilitate exchanges. Businesses as well as not-
for-profit and public-sector organizations – such as colleges and universities, charitable organiza-
tions, community theatres and hospitals – perform marketing activities. For example, colleges and

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
12  Part One MARKETING DEFINED AND MARKETING IN CONTEXT

universities and their students engage in exchanges. To receive instruction, knowledge, entertain-
ment, a degree, the use of facilities and sometimes room and board, students give up time, money
and perhaps services in the form of labour; they may also give up opportunities to do other things!
Many organizations engage in marketing activities. Various police forces have surveyed their com-
munities in order to prioritize services and reassure the general public that people’s concerns will
be addressed. Politicians now conduct analyses before determining strategies; they think of target
markets rather than just the electorate. Even the sole owner of, and worker in, a small corner shop
decides which products will sell, arranges deliveries to the shop, prices and displays products,
advertises and serves customers.

exchange Marketing facilitates satisfying exchange relationships


The provision or transfer
For an exchange to take place, four conditions must exist:
of goods, services and
ideas in return for some- 1. Two or more individuals, groups or organizations must participate.
thing of value.
2. Each party must possess something of value that the other party desires (for example,
cash for a product or a donation for a charitable cause).
3. Each party must be willing to give up its ‘something of value’ to receive the ‘something of value’
held by the other party. The objective of a marketing exchange is to receive something that is
desired more than that which is given up to acquire it – that is, a reward in excess of costs.
4. The parties to the exchange must be able to communicate and engage with each other to
make their ‘something of value’ available.5
Figure 1.1 illustrates the process of exchange. The arrows indicate that the parties communicate
and that each has something of value available to exchange. Note, though, that an exchange will
not necessarily take place just because these four conditions exist. Nevertheless, even if there is no
exchange, marketing activities have still occurred. The ‘somethings of value’ held by the two parties
are most often products and/or financial resources, such as money or credit. When an exchange
occurs, products are traded for other products or for financial resources.

Something of value:
Money, credit, donations, labour, goods

Buyer Seller
(Consumer) (Provider)

FIGURE 1.1
Something of value:
Exchange between
buyer and seller Goods, services, ideas

An exchange should be satisfying to both the buyer and the seller. In fact, in a study of
customer satisfaction
A state that results when marketing managers, 32 per cent indicated that creating customer satisfaction was the
an exchange meets the most important concept in a definition of marketing.6 Without satisfaction, customers are
needs and expectations unlikely to return. Marketing activities should be oriented towards creating and maintaining
of the buyer. satisfying exchange relationships. To maintain an exchange relationship, the buyer must be
satisfied with the goods, service or idea obtained in the exchange; the seller must be sat-
isfied with the financial reward or the ‘something else of value’ received in the exchange.7
Maintaining a positive relationship with buyers is an important goal for a seller, regardless of
whether the seller is marketing cereal, financial services or construction plant. Through buyer–seller

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 1 The marketing concept   13

interaction, the buyer develops expectations about the seller’s future behaviour. To fulfil these
expectations, the seller must deliver on promises made. Over time, a healthy buyer–seller rela-
tionship results in interdependencies between the two parties. The buyer depends on the seller
to furnish information, parts and service; to be available; and to provide satisfying products in the
future.

Marketing occurs in a dynamic environment


The marketing environment consists of many external changing forces within the trading environ-
ment: laws, regulations, political activities, societal pressures, changing economic conditions and
technological advances. Each of these dynamic forces has an impact on how effectively marketing
activities can facilitate and expedite exchanges. For example, the development and acceptance
of the web has given organizations another vehicle through which to promote and distribute their
products, engage with customers and develop ongoing relationships. Another example is the
growth of the sustainability agenda and how it impacts on product development, packaging and
marketing.

Marketing involves products, distribution, promotion, pricing and people


Marketing means more than simply advertising or selling a product; it involves developing and
managing a product that will satisfy certain needs. It focuses on making the product available at
the right place, at the right time, at a price that is acceptable to customers and with appropriate
people and service support. It also requires transmitting, through marketing communi-
product cations, the kind of promotional information that will help customers determine whether
A good, service or idea. the product will in fact be able to satisfy their needs.

good Marketing focuses on goods, services and ideas


A physical entity that can
be touched. The word ‘product’ has been used a number of times in this chapter. For purposes
of discussion in this text, a product is viewed as being a good, a service or an idea.
A good is a physical entity that can be touched. A Ford Focus, a Sony MP3 player,
service Kellogg’s Cornflakes, a bar of Lux soap and a kitten in a pet shop are examples of
The application of human
and mechanical efforts to
goods. A service is the application of human and mechanical efforts to people or
people or objects in order objects in order to provide intangible benefits to customers. Services such as air
to provide intangible travel, dry cleaning, hairdressing, banking, medical care and childcare are just as
benefits to customers. real as goods, but an individual cannot actually touch or stockpile them. Marketing
is utilized for services but requires certain enhancements in order to be effective (see
Ideas
Part Three). Ideas include concepts, philosophies, images and issues. For instance,
A concept, philosophy, a marriage counsellor gives couples ideas and advice to help save their relationships.
image or issue. Other marketers of ideas include political parties, charities, religious groups, schools
and marketing lecturers.

An organizational function and a set of processes for creating, communicating


and delivering value to customers and for managing customer relationships in
ways that benefit the organization and its stakeholders
This definition suggested by the American Marketing Association came as a welcome addition, as
for over two decades this book’s authors have presented marketing to our students as a system-
atic process of analysis, strategizing and then programmes for implementation in our marketing
process. This process is relevant to not only those organizations with consumers or business
customers. Given that all organizations have stakeholders which must be influenced and satisfied,
this process is suitable for any organization, including those in the third sector.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
14  Part One MARKETING DEFINED AND MARKETING IN CONTEXT

The marketing process


Marketers spend much of their time managing existing products, target markets and marketing
­programmes. Even with such so-called ‘steady-state’ operations, the dynamic nature of marketing
leads to continual changes in the marketing environment, competitors and their activities, as well as
in customers’ needs, expectations, perceptions and buying behaviour. Without a sound understand-
ing of these issues, marketing strategies and their associated marketing programmes cannot be truly
effective. Marketers must undertake analyses of these market conditions. As changes in the market-
place occur, marketers should revise their marketing strategies accordingly. Any strategy
marketing process modifications will necessitate changes to the organization’s marketing programmes.
Analysis of market This analytical process of marketing analyses, strategy formulation and the creation
conditions, the cre- or modification of marketing programmes is necessary for existing activities and target
ation of an appropriate markets. This marketing process is also required when an organization contemplates
marketing strategy,
the development of
entering new markets, launching new or replacement products, modifying the brand
marketing programmes strategy, changing customer service practices, rethinking advertising and promotional
designed to action the plans, altering pricing or evaluating distribution policies, developing digital marketing and
agreed strategy and, managing multiple channels. Unexpected sales patterns also require such a process
finally, the implementa- of understanding, thinking and action. This is the marketing process: the analysis of
tion and control of the
marketing strategy and
market conditions, the creation of an appropriate marketing strategy and the develop-
its associated marketing ment of marketing programmes designed to execute the agreed strategy, as depicted in
programmes. Figure 1.2. Finally, as part of this process, the implementation of the marketing strategy
and its associated marketing programmes must be managed and controlled.

Corporate goals/objectives

Marketing analysis
market insights
opportunities

Performance
Finding out:

& threats

Customers
Competition
Trends/marketing environment
Internal capabilities
priorities to pursue

Marketing strategy
Trade-off choices:

& compelling

Marketing opportunities
proposition

Target market priorities


Brand positioning
Basis for competing/value proposition
Performance objectives

Marketing programmes
Products/services
engagement:
attraction &
Customer

retention

Pricing
Place/channels
Promotion/MarComms
People, processes, physical environment

Marketing controls
controls, audits
& remedial
Execution:

Budgets and schedules


activities

Personnel and responsibilities


FIGURE 1.2 Benchmarking and monitoring progress
The marketing Remedial actions and strategy modifications
process

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 1 The marketing concept   15

With an understanding of customers’ needs, buying behaviour, expectations and product or


brand perceptions, marketers are able to create marketing programmes likely to attract, satisfy
and retain customers. With an appreciation of competitors’ activities and plans, the marketing
programmes are more likely to combat rivals’ marketing programmes and to differentiate an orga-
nization’s product. Without an awareness of changes in the marketing environment, it is unlikely that
the specified marketing programme will be sustainable in the longer term. As trading environment
changes occur, it is important that an organization’s capabilities are modified in order to reflect
market conditions and likely demands. Marketers must be aware of where they make good financial
returns and which products or markets are not performing well. The marketing analysis stage of
the marketing process is, therefore, of fundamental importance.
Equipped with an awareness of the marketplace made possible through marketing analyses,
a marketing strategy may be derived. This involves selecting the opportunities to be pursued and
devising an associated target market strategy. Few organizations have adequate financial, man-
agerial and employee resources to address all of the possible marketing opportunities that exist:
there must be some trade-offs. This generally involves selecting only some of the opportunities to
pursue and focusing on specific target markets. Having made these decisions, marketers must
ensure that they develop a compelling value proposition and clear brand positioning, with a strong
basis for competing versus their rivals, aimed specifically at attracting customers in the prioritized
target markets. These strategic recommendations should then translate into specific marketing
objectives, designed to steer the creation of marketing programmes.
In most organizations the majority of the budget, time and effort within the marketing function
is devoted to creating and managing marketing programmes. These programmes revolve around
specifying product, people, promotion (communication), pricing and place (distribution channel)
attributes and policies, designed to appeal to and serve those customers identified as being in the
priority target market(s). In addition to these ingredients of the marketing mix, marketers of services
include other ingredients, as detailed in Chapter 13. Finally, the marketing programmes must be
rolled out, monitored and controlled.
Part Three of Marketing: Concepts and Strategies addresses the creation of marketing pro-
grammes. Chapters 10 to 21 examine extensively each of the ingredients of the marketing mix,
which are the essentials for a marketing programme. However, the marketing programmes should
not be created before marketers have fully analyzed the market and then devised a marketing
strategy. These aspects of marketing analysis and marketing strategy are, therefore, explored in
the early stages of Marketing: Concepts and Strategies, in Parts One and Two. The chapter run-
ning order is also structured to reflect the syllabus content popular on most mainstream marketing
modules and courses at diploma and degree level.

The importance of marketing


Marketing activities are carried out in many organizations
The commercial importance of marketing and its relevance as a topic worth studying are apparent
from the definitions of marketing just presented. The use of marketing techniques and the devel-
opment of a marketing orientation should enable an organization to understand its customers and
stakeholders better, address competitors’ activities and market developments, and effectively har-
ness its capabilities. The results should be enhanced customer satisfaction and retention, improved
market share in key target markets and stronger financial performance. This section discusses
several less obvious reasons why marketing should be studied.
In Europe and the USA between 25 per cent and 33 per cent of all civilian workers perform
marketing activities. The marketing field offers a variety of interesting and challenging career oppor-
tunities, such as strategic planning, personal selling, advertising, packaging, transport, storage,
marketing research, product development, creative design, digital marketing, wholesaling, retailing,

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
16  Part One MARKETING DEFINED AND MARKETING IN CONTEXT

marketing planning and consultancy. In addition, many individuals who work for not-for-profit orga-
nizations – such as charities or health agencies – engage in marketing activities. Marketing skills are
used to promote political, cultural, religious, civic and charitable activities. The poster in Figure 1.3
encourages supporters to customize branded promotional materials from Macmillan Cancer Sup-
port, a non-profit organization. Whether a person earns a living through marketing activities or per-
forms them without reward in non-business settings, marketing knowledge and skills are valuable
assets. For both commercial and non-profit organizations there are needs to satisfy, exchanges
to expedite, changing circumstances to monitor and decisions to make. Even a country benefits
from marketing, as described in the Topical Insight box below.

FIGURE 1.3
Promotion of a non-profit
­organization. Macmillan
Cancer Support enables
­supporters to customize
branded promotional materials
to support their individual
fundraising efforts.
Source: Macmillan Cancer Support

Marketing activities are important to organizations and the economy


An organization must sell products in order to survive and grow. Directly or indirectly, marketing
activities help to sell an organization’s products. By doing so, they generate financial resources that
can be used to develop innovative products. New products allow a company to satisfy customers’
changing needs more efficiently, which in turn enables the company to generate more profits.
Charities and other not-for-profit organizations use marketing to generate revenues and funds.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 1 The marketing concept   17

Ireland: marketing the low rates of corporate taxation, excel-


a country lent digital and satellite telecommunica-
Topical insight tions systems and a stable currency with
Not only products benefit from market- low inflation. The attractive countryside and
ing. How do you develop a marketing strat- vibrant cultural scene also featured promi-
egy for a country? This was a question faced nently in the IDA’s branding of Ireland.
by the Irish government during difficult times in the Considerable care was taken to ensure that the
1960s and 1970s; and following the recent global economic propositions developed matched the requirements of the busi-
meltdown is the task facing the country once more. The orig- nesses targeted. This provided many overseas businesses
inal challenge was to build the Irish economy to match the with substantial, tangible reasons for establishing a European
affluence enjoyed by some of its European neighbours. At the base in Ireland, bringing with them the investment the country
time, Ireland was viewed as being backward and unattractive so badly craved. Leading computer manufacturers, pharma-
for investment by international corporations. The Industrial ceutical businesses, financial corporations and telecommuni-
Development Authority (IDA) played an important role in cations businesses are just some of those who have located
developing the country’s economy, moving it away from its facilities in the country: over 1000 well-known organizations
traditional over-reliance on agriculture, by attracting signifi- have chosen Ireland ahead of other locations for their Euro-
cant foreign direct investment. Today, with well over one-third pean operations.
of the country’s GDP coming from industry, and services also After the 2008 meltdown of the Irish economy following
accounting for approaching one-third, agriculture’s contribu- the global financial crisis, there was once more the need to
tion has fallen to just 10 per cent. develop a marketing strategy for Ireland. Most of the work
Marketing and good promotion alone were not responsi- of the past 25 years had to be repeated and reinforced, in
ble for this turnaround. The Irish government realized that to order to ensure continued inward investment. The Irish econ-
attract investment from overseas it had to provide a stable omy was one of the first bail-out economies to recover and to
economy, desirable residential suburbs, modern road and demonstrate an end to recession, providing a sound base for
air infrastructure, state-of-the-art telecommunications and, the IDA’s marketing.
crucially, a well-qualified, dynamic and motivated workforce. The marketing toolkit is once again playing a significant
These improvements took some time to achieve, but today part in the overhaul of Ireland’s target market strategy, posi-
the companies located in Dublin and around Ireland’s airports tioning and new-look measures to attract global businesses
testify readily to the excellent infrastructure, communications, to locate in the country. London, Germany, the USA and South
workforce and tax breaks. The Irish workforce is one of the East Asia have been targeted by the IDA’s marketing team. In
best educated and most highly prized in Europe. order to regain its former glory, the IDA is focusing on high
Having improved the amenities, infrastructure and the value inward investment for research and development, Euro-
workforce, the perceptions of investors overseas had to be pean headquarters, advanced manufacturing and supply chain
addressed. In order to instigate this change, the IDA established activities. The Winning Abroad marketing programme aims to
a clear strategy by pinpointing attractive sectors for growth and attract 10 000 new jobs on the back of foreign investments
actively encouraging growth businesses in those areas. Con- in Ireland over the next few years. The UK Brexit decision to
sumer products, electronics, healthcare and financial services exit the EU has given Ireland a further boost, with English-­
were some of the key targets. Once decisions about growth language speaking companies now settling in Eire in order to
priorities had been made, the aim was to develop a marketing access both the UK and EU.
programme based around the particular assets that Ireland was
References: Irish Embassy, London; Industrial Development Authority (IDA);
able to offer. For example, promotional material focused on – ‘Facts about Ireland’, IDA, 1995, 1996, 1999, 2003, 2008, 2011, 2015, 2018;
among other things – the young, highly educated workforce, www.idaireland.com, 2 February 2011, 10 March 2015 and 23 January 2018.

Europe’s highly complex economy depends heavily on marketing activities. These help produce
the profits that are essential not only to the survival of individual organizations but also to the health
and ultimate survival of the economy as a whole. Profits are essential to economic growth because
without them organizations find it difficult, if not impossible, to buy more raw materials, recruit more
employees, attract more capital and create the additional products that in turn lead to more profits.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
18  Part One MARKETING DEFINED AND MARKETING IN CONTEXT

Marketing knowledge enhances consumer awareness


Besides contributing to a country’s economic well-being, marketing activities permeate everyone’s
lives. In fact, they help to improve quality of life. Studying marketing activities enables the costs,
benefits and downsides of marketing to be evaluated. The need for improvement and ways to
accomplish changes can be determined. For example, an unsatisfactory experience with a guar-
antee may lead consumers to demand that laws be enforced more strictly to make sellers fulfil
their promises. Similarly, there may be the desire for more information about a product – or more
accurate information – before purchase. Understanding marketing leads to the evaluation of the
corrective measures – such as laws, regulations and industry guidelines – that may be required
to stop unfair, misleading or unethical marketing practices. The results of the survey presented
in Table 1.2 indicate that there is a considerable lack of knowledge about marketing activities, as
reflected by the sizeable proportion of respondents who agree with the myths in the table.

TABLE 1.2 Popular marketing myths


Strongly Somewhat Neither agree Somewhat Strongly
Myths agree agree nor disagree disagree disagree
Marketing is selling 34% 14% 26% 18% 8%
Marketers persuade 21% 25% 20% 11% 23%
Dealers’ profits significantly increase 21% 32% 12% 8% 27%
prices consumers pay
Marketing depends on advertising 44% 17% 12% 9% 18%
Strategic planning has nothing to do 19% 19% 21% 17% 24%
with marketing

Marketing costs consume a sizeable proportion of buyers’ incomes


The study of the marketing discipline emphasizes that many marketing activities are necessary
to provide people with satisfying goods and services. Obviously, these marketing activities cost
money. A family with a monthly income of £2000, of which £600 goes towards taxes and s­ avings,
spends about £1400 on goods and services. Of this amount, typically £700 goes towards market-
ing activities. Clearly, if marketing expenses consume that much income, it is necessary to know
how this money is used.

Business performance
Marketing puts an emphasis on satisfying customers. Marketing analyses should lead an organiza-
tion to develop a marketing strategy that takes account of market trends, aims to satisfy customers,
is aware of competitive activity and targets the right customers with a clear positioning message.
In so doing, an organization should benefit from customer loyalty and advantages over its rivals,
while making the most efficient use of resources to effectively address the specific requirements of
those markets it chooses to target. Hence, marketing should provide both a financial benefit and
a greater sense of well-being for the organization.

The marketing concept and its evolution


Some organizations have tried to be successful by buying land, building a factory, equipping it with
people and machines, and then making a product that they believe consumers need. However,
these organizations frequently fail to attract buyers with what they have to offer because they
defined their business as ‘making the product’ rather than as ‘helping potential customers satisfy

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 1 The marketing concept   19

their needs and wants’. Such organizations have failed to implement the marketing
marketing concept
The philosophy that an concept. It is not enough to be product-led, no matter how good the product. An orga-
organization should try nization must be in tune with consumers’ or business customers’ requirements.
to provide products that According to the marketing concept, an organization should try to provide products
satisfy customers’ needs that satisfy customers’ needs through a coordinated set of activities that also allows the
through a coordinated
organization to achieve its goals. Customer satisfaction is the major aim of the marketing
set of activities that also
allows the organization to concept. First, an organization must find out what will satisfy customers. With this infor-
achieve its goals. mation, it then attempts to create satisfying products. But the process does not end there.
The organization must continue to alter, adapt and develop products to keep pace with
customers’ changing desires and preferences. The marketing concept stresses the impor-
production era tance of customers and emphasizes that marketing activities begin and end with them.8
The period of mass In attempting to satisfy customers, organizations must consider not only short-term
production following
immediate needs but also broader and long-term desires. Trying to satisfy customers’
industrialization.
current needs by sacrificing their long-term desires will only create future dissatisfaction.
For instance, people want efficient and low-cost energy to power their homes and cars,
yet they react adversely to energy producers that pollute the air and water, kill wildlife or
sales era
The period from the cause disease or birth defects. To meet these short- and long-term needs and desires,
mid-1920s to the early a company must coordinate all its activities. Production, finance, accounting, personnel,
1950s when competitive sales, marketing and digital departments must work together.
forces and the desire for The marketing concept is not another definition of marketing. It is a way of thinking:
high sales volume led a
a management philosophy guiding an organization’s overall activities. This philosophy
company to emphasize
selling and the sales affects all the efforts of the organization, not just marketing activities, and is strongly
person in its business linked to the notion of marketing orientation. However, the marketing concept is by no
strategy. means a philanthropic philosophy aimed at helping customers at the expense of the
organization. A company that adopts the marketing concept must not only satisfy its
customers’ objectives but also achieve its own goals, or it will not stay in business long.
marketing era The overall goals of an organization may be directed towards increasing profits, market
The period in which share, sales or a combination of all three. The marketing concept stresses that an organi-
product and aggressive
selling were no longer
zation can best achieve its goals by providing customer satisfaction. Thus implementing
seen to suffice if custom- the marketing concept should benefit the organization as well as its customers.
ers either did not desire
a product or preferred a
rival brand, and in which The evolution of the marketing concept
customer needs were
The marketing concept may seem an obvious and sensible approach to running a
identified and satisfied.
­business. However, business people have not always believed that the best way to make
sales and profits is to satisfy customers. A famous example is the marketing philosophy
relationship
for cars widely attributed to Henry Ford in the early 1900s: ‘The customers can have
­marketing era any colour car they want as long as it’s black’. The philosophy of the marketing concept
In which the focus is not emerged in the third major era in the history of business, preceded by the production
only on expediting the era and the sales era. Surprisingly, it took nearly 40 years after the marketing era
single transaction but on began before many organizations started to adopt the marketing concept. The more
developing ongoing rela-
tionships with customers
advanced marketing-led companies have now entered a spin-off from the marketing
to maintain lifetime share era: the relationship marketing era. More recently, there have been several signifi-
of wallet. cant developments for marketers, most notable of which are value-based marketing,
digital marketing and the associated surge in consumer-to-consumer communication,
the growth of social marketing applications and the emergence of so-called critical
digital era marketing. Today, the relationship era has gone digital.
Now the focus is on
managing customer
relationships, developing
The production era During the second half of the nineteenth century, the Industrial
customer insight and Revolution was in full swing in Europe and the United States. Electricity, railways, the divi-
building the brand online. sion of labour, the assembly line and mass production made it possible to manufacture
products more efficiently. With new technology and new ways of using labour, products

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
20  Part One MARKETING DEFINED AND MARKETING IN CONTEXT

poured into the marketplace, where consumer demand for manufactured goods was strong. This
production orientation continued into the early part of the last century, encouraged by the scientific
management movement that championed rigidly structured jobs and pay based on output.

The sales era In the 1920s, the strong consumer demand for products subsided. Companies
realized that products, which by this time could be made quite efficiently, would have to be ‘sold’
to consumers. From the mid-1920s to the early 1950s, companies viewed sales as the major
means of increasing profits. As a result, this period came to have a sales orientation. Business
people believed that the most important marketing activities were personal selling and advertising.

The marketing era By the early 1950s, some business people began to recognize that e­ fficient
production and extensive promotion of products did not guarantee that customers would buy
them. Companies found that they first had to determine what customers wanted and then pro-
duce it, rather than simply making products first and then trying to change customers’ needs to
correspond to what was being produced. As organizations realized the importance of knowing
customers’ needs, companies entered into the marketing era – the era of customer orientation.9

The relationship marketing era By the 1990s, many organizations had grasped the basics
of the marketing concept and had created marketing functions. However, their view of marketing
was often largely transaction-based. The priority for marketing was to identify customer needs,
determine priority target markets and achieve sales through marketing programmes. The focus
was on the individual transaction or exchange. It should be recognized that long-term success and
market share gains depend on such transactions, but also on maintaining a customer’s loyalty and
on repeatedly gaining sales from existing customers. This requires ongoing, committed, reassuring
and tailored relationship-building marketing programmes.
Relationship marketing refers to ‘long-term, mutually beneficial arrangements in which both the
buyer and seller focus on value enhancement through the creation of more satisfying exchanges’.10
Relationship marketing continually deepens the buyer’s trust in the company and, as the customer’s
confidence grows, this in turn increases the company’s understanding of the customer’s needs. Suc-
cessful marketers respond to customers’ needs and strive to increase value to buyers over time. Even-
tually this interaction becomes a solid relationship that allows for cooperation and mutual dependency.11
As the era of relationship orientation developed, it became clear that it is not only relationships
with customers that are important. Suppliers, agents, distributors, recruiters, referral bodies (such
as independent financial advisers recommending financial services companies’ products), influenc-
ers (such as government departments, national banks or the European Union (EU)), all should be
‘marketed to’ in order to ensure their support, understanding and resources. The internal workforce
must be motivated and provided with a clear understanding of a company’s target market strategy,
marketing mix activities and, indeed, of the corporate strategy and planned direction. Hence, there
is a move away from transaction-based marketing and towards nurturing ongoing relationships.12
In the 1990s, lifetime value (of the customer) became a buzz term for marketers. This concept is
linked to relationship marketing, said by many observers to be a step-change paradigm for marketing.
This evolution of marketing, from focusing on individual transactions with customers to building ongo-
ing relationships and repeat business, has been very important for the success of many organizations.
Until relatively recently, relationship marketing was the main significant change in how the dis-
cipline has been perceived. In the last few years, however, there have been several new trends
for marketing, each of which has stretched the bounds for the discipline, adding complex new
dimensions and further shaping the marketing paradigm.

The digital era has had a significant impact on how businesses interact with their customers,
presenting marketers with a whole raft of new opportunities, techniques and challenges. Digital
media, the surge in internet usage and the uptake of personal mobile communications and infor-
mation provision, have fostered changing consumer behaviours, greater consumer-to-consumer

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 1 The marketing concept   21

influence on brands and purchasing decisions, and business-to-business interaction.


digital marketing They have also led to big data, enhanced degrees of customer insight and a new breed
The use of the web, com- of experts in ­analytics. These developments have created an entirely new domain for
puters and smartphones, marketers, known as digital marketing.13 Now the focus is on managing customer
as well as radio, TV and relationships, developing customer insight and building the brand online.
any other forms of digital
Digital marketing is the use of the web, computers and smartphones, as well as
media, to attract, engage
and build relationships radio, TV and any other forms of digital media, to attract, engage and build relationships
with customers and other with customers and other target audiences. It is the use of technology-led channels
target audiences; the use of communication and selling to manage customer interaction and provide customer
of technology-led chan- experience in a digitally-connected environment. With the growth of mobile devices
nels of communication
this presents marketers with the opportunity to engage with consumers anywhere and
and selling to manage
customer interaction anytime. The immediacy, intimacy and customization of many internet and mobile digital
and provide customer communications and customer interactions have transformed the ability of marketers
experience in a digitally-­ to target customer groups and individuals with bespoke propositions and nurture an
connected environment. ongoing relationship. Most marketers are excited by the potential of digital. However,
Now the focus is on
the digital era has brought downsides, too.14
managing customer
relationships, developing
customer insight and The growth of consumer-to-consumer (C2C) communications in the digital era
building the brand online. This has significant consequences for brands and marketers, for consumers and for
society in general. Previously, brand managers largely controlled what information was
available to consumers and business customers. These customers based their decisions
consumer-to-­
about brands and products on the marketing and sales information communicated to
consumer (C2C)
communication them by brand managers. Today, consumer-to-consumer (C2C) communication is
Consumer-to-consumer routine, enabled by the digital era generally and social media in particular. Consumers
(C2C) communication readily and rapidly share views, experiences and information with one another. A positive
is now routine, enabled or negative customer experience is tweeted instantly, blogged or shared on Facebook
by the digital era and
with many potential fellow consumers. Such messaging, whether positive or negative,
social media in particular.
Consumers readily and has moved beyond the control of marketers. Many consumers trust and value the views
rapidly share views, of their peers far more than the views of brand managers, advertising messages or
experiences and infor- media reviews. The surge of C2C communication has redefined the boundaries and
mation with each other. created huge new challenges for marketers. The role of C2C interaction and commu-
A positive or negative
nication is picked up throughout this edition of Marketing: Concepts and Strategies.
customer experience is
tweeted instantly, blogged
or shared on Facebook Social marketing’s adoption of marketing’s toolkit in non-commercial settings
with potentially very many Social marketing: uses tools and techniques from commercial marketing to encourage
fellow consumers. positive behavioural changes, such as quitting smoking, reducing alcohol consumption,
improving fitness, minimizing anti-social behaviours or reducing carbon footprint. The
health and well-being of individuals, society and the planet are at the core of social
social marketing
Social marketing uses
marketing. The social marketing field now provides interesting career opportunities for
tools and techniques from marketing professionals interested in applying marketing analyses, notably in terms
commercial marketing of monitoring external trends and opportunities (Chapter 3), understanding behaviours
to make interventions of a particular audience or social group (Chapter 5), developing targeting strategies
which encourage positive (Chapter 8), establishing appropriate value propositions (Chapter 8) and in creating pro-
behavioural changes,
such as quitting smok-
grammes to communicate with such audiences (Chapters 16 and 19). Rising interest in
ing, reducing alcohol these applications reflects the increasing importance of the strategic marketing process
consumption, improving to a growing set of audiences and stakeholders beyond those from traditional commer-
fitness, minimizing anti- cial markets. The growth of social marketing is also reflected throughout this edition of
social behaviours or Marketing: Concepts and Strategies.
reducing carbon footprint;
to enhance the health and
Most readers of this text will be students undertaking a business studies degree
well-being of individuals, or marketing qualification. Some readers will be students on more general manage-
society and the planet. ment degrees who do not inhabit the world of commercial marketing managers. For
either audience, this text demonstrates how the marketing philosophy permeates many

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
22  Part One MARKETING DEFINED AND MARKETING IN CONTEXT

aspects of our lives and society, including in the overtly non-commercial realms of social marketing.
As the second Topical Insight reveals, marketing principles extend much further than promoting
Red Bull energy drinks, the iPhone, McDonald’s burgers or JCB diggers.

An alternative view of so ‘social marketing’ can do the reverse. The


same principles – of understanding the con-
the scope for marketing: Topical insight sumer, strategic thinking and building satisfy-
social marketing ing relationships based on emotional as well as
rational benefits – can be brought to bear. Social
The Institute for Social Marketing (ISM) marketing also recognizes that, although commerce
was established 30 years ago with the aim of brings many benefits, it can also cause harm to both
improving the health and well-being of individuals the individual and society. Tobacco, which kills half of its
and society through social marketing research. Now based long-term users, provides an extreme example of this, but other
at the University of Stirling and the Open University, ISM is industries like alcohol, food, gambling and pay-day loans are also
coming under scrutiny. Social marketing’s understanding of both
interested in social marketing’s use of tools and techniques
the commercial and social sectors puts it in a unique position to
from commercial marketing to encourage positive behaviour
provide realistic critiques and identify intelligent solutions. This
changes, such as quitting smoking, responsible management forms an important part of the growing field of critical marketing.
of personal debt, or reducing carbon footprint. These realities informed Lazer and Kelly’s original defini-
Key priority research areas for ISM include alcohol and tion of social marketing: Social marketing is concerned with the
alcohol marketing, tobacco control, sustainability and sustain- application of marketing knowledge, concepts and techniques to
able consumption, faith and community partnerships, problem enhance social as well as economic ends. It is also concerned
gambling, personal debt, health, well-being and quality of life, with the analysis of the social consequences of marketing poli-
ageing, food and nutrition. cies, decisions and activities.
This agenda differs from the common perception of mar- www.open.ac.uk/oubs/ism, January 2018.
keting that is widely held by the general public. This implies
Readers may be surprised to learn that those fighting
there is more scope for applying marketing principles than
obesity, smoking, alcohol abuse, energy wastage, problem
only for the marketing of fast moving consumer goods (FMCG),
gambling or personal debt, are using ideas from commer-
supermarket products, financial services or holiday packages.
cial marketing in their efforts. Just as in commercial settings,
ISM explains the purpose of social marketing and about its
social marketers must understand the attitudes, perceptions
use of commercial marketing ideas:
and behaviour of those they are targeting, before creating
Social marketers are interested in human behaviour. They seek to strategies and interventions to tackle these problems areas.
understand why we live our lives as we do, sometimes healthily Once decisions about who to target have been made, well-­
as when we eat a good diet or take regular exercise, and at other articulated and carefully communicated propositions are
times unhealthily as when we smoke or binge drink. Given that needed to engage with these audiences. In these respects,
more than fifty percent of premature deaths are attributable to
the development and execution of a social marketing strategy
such individual lifestyle decisions, there is enormous potential
has many similarities with commercial marketing practice.
for any discipline that can progress thinking in this area. Social
marketing brings a unique perspective to the issue.
Marketing is typically concerned with behaviour in the lim-
ited area of consumption and the marketplace. However, from Sources: www.open.ac.uk/oubs/ism; www.management.stir.ac.uk/about-us/
the discipline’s beginnings, marketers have argued that their institute-of-social-marketing; Philip Kotler and Nancy Lee (eds), Social
­Marketing: Influencing Behaviors for Good, Thousand Oaks, CA: Sage Publica-
behaviour change thinking can also be applied to other contexts; tions Inc., 2008; Gerard Hastings, Social Marketing, Abingdon: Routledge, 2013;
as Wiebe famously argued, you can sell brotherhood like soap. Sally Dibb, ‘Up, Up and Away: Social Marketing Breaks Free’, Journal of Market-
So, just as Big Tobacco can use marketing to encourage smoking, ing Management, 30 (11–12), 2014, pp. 1159–1185.

The emergence of critical marketing Although this cannot really be described as a paradigm
shift in the sense of relationship marketing or digital marketing, critical marketing nevertheless
warrants a mention. Those interested in this field agree that critical marketing is difficult to define.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 1 The marketing concept   23

Critical marketing is espoused by individuals who challenge orthodox views that are
critical marketing
Critical marketing central to the core principles of the discipline. Sometimes this involves promoting rad-
involves challenging ical philosophies and theories in relation to the understanding of economies, society,
orthodox views that are markets and consumers, which may have implications for the practice of marketing.
central to the core prin- In some instances, the assumptions at the heart of many of the core principles of the
ciples of the discipline.
discipline are challenged. Critical marketing is connected with the growing area of critical
Sometimes this involves
promoting radical philos- management.
ophies and theories in While a detailed exploration of critical marketing is beyond the scope of this text, it
relation to the under- is right to highlight the alternative views that exist about the domain and the activities
standing of economies, associated with it. Once readers are familiar with the core concepts associated with
society, markets and con-
effective marketing, they might also wish to explore the views of critical marketers.15 This
sumers, which may have
implications for the prac- group is interested in issues such as postmodernism; the biological base for consumer
tice of marketing. Critical behaviour; the connections between marketing activities and society (including social
marketing is connected marketing), such as sustainable marketing; anti-globalization challenges to market-
with the growing area of ing; ecofeminism; and the inter-connection of cultural studies and consumer research.
critical management.
Although many of these themes are not explored at length here, a more detailed exam-
ination of aspects of social marketing is included. In addition, reflections on marketing in
practice are incorporated throughout this text, contributing to the critical marketing debate around
the distinction between theory and practice.
A further aspect of critical marketing that warrants consideration relates to concerns that mar-
keting sometimes has damaging consequences and that marketers are not always aware of these
outcomes.16 For example, some critics argue that marketing is responsible for heightening con-
sumerism and generating ‘must have’ attitudes among consumers. This has resulted in negative
consequences for society in relation to carbon footprint, the use of scarce resources, landfill, state
spending priorities and even on changing societal values. Although there are divergent opinions
on these matters, there can be little doubt that marketing influences consumption and that these
patterns have significant impacts for the environment, for society and for consumers. These and
other impacts of marketing, including a discussion of some of the ethical issues facing marketers,
are considered later in this edition of Marketing: Concepts and Strategies.

The essentials of marketing


Marketing analyses
From these brief introductory comments, it should be evident that marketing can enhance an
organization’s understanding of its customers, competitors, market trends, threats and opportu-
nities. Marketing should direct an organization’s target market strategy, product development and
communication with its distribution channels and customers. In order to carry out these activities,
marketing personnel need access to good quality marketing intelligence about the following issues:
●● customers
●● competitors
●● marketing environment forces
●● the organization’s capabilities and marketing assets
●● performance.

As will be seen later in this text, there are other marketing analyses which can be carried out, but
those just mentioned are the essential building blocks for the development of marketing strategies
and the creation of marketing programmes. The majority of the chapters in Parts One and Two of
Marketing: Concepts and Strategies address these marketing analyses, which are the foundation
of the marketing process.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
24  Part One MARKETING DEFINED AND MARKETING IN CONTEXT

Marketing strategy
To achieve the broad goal of expediting desirable exchanges, an organization’s
­marketing managers are responsible for developing and managing marketing strate-
gies. ­A ­marketing strategy involves the selection of new opportunities to pursue and
marketing strategy
The selection of new identification of which current activities to continue to support, identification of associated
opportunities to pursue target markets and competitive positioning, and the creation of appropriate customer
and current activities to value propositions and engagement plans, in order to deliver the specified performance
maintain, identification of goals in the corporate strategy. A marketing strategy articulates a plan for the best use
associated target markets
of the organization’s resources and directs the required tactics to meet its objectives.
and competitive posi-
tioning, and the ­creation When marketing managers attempt to develop and manage marketing activities, they
of appropriate customer must deal with three broad sets of variables:
value propositions and
engagement plans, in 1. those relating to the marketing mix
order to deliver the speci- 2. those inherent in the accompanying target market strategy
fied performance goals in
the corporate strategy. 3. those that make up the marketing environment.
The marketing mix decision variables – product, place/distribution, promotion, price
and p­ eople – and the target market strategy variables are factors over which an organiza-
tion has c
­ ontrol. As Figure 1.4 shows, these variables are constructed around the buyer or c­ onsumer.

Legal
forces

Customer
value
proposition
Political Product/ Target Regulatory
forces brand Product/ market forces
positioning people/service/ strategy
engagement

Buyer/ Place/
Price/ consumer distribution/
value satisfaction channel
Promotion/
Differential marketing Marketing
Techno- advantage/ communications opportunity Societal/
logical competitive definition green
forces edge Desired forces
customer
Consumer satisfaction experience
The marketing mix
Economic and
Marketing strategy
competitive forces
The marketing environment

FIGURE 1.4
Marketing environment, marketing strategy, marketing mix and customer satisfaction, consumers and organizations are affected by the forces
of the marketing environment; organizations must determine a marketing strategy, implemented through the ingredients of the marketing mix,
which aims to satisfy targeted customers.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 1 The marketing concept   25

The marketing environment variables are political, legal, regulatory, societal, technological and eco-
nomic and competitive forces. These factors are subject to less control by an organization, but they
affect buyers’ needs as well as marketing managers’ decisions regarding marketing mix variables.
To develop and manage marketing strategies, marketers must focus on several marketing tasks:
marketing opportunity analysis and marketing analyses, the determination of a marketing strategy
and target market selection, marketing mix development and management of the programmes
that facilitate implementation of the marketing strategy.

marketing opportunity Marketing opportunity analysis


A marketing opportunity exists when circum-
One that exists when stances allow an organization to take action towards reaching a particular group of
timing and circum- customers. An opportunity provides a favourable chance or opening for a company to
stances allow an generate sales from identifiable markets for specific products or services. For exam-
organization to take
ple, during a heatwave, marketers of electric fans have a marketing opportunity – an
action towards reaching
a particular group of opportunity to reach customers who need electric fans. Various ‘no frills’ airlines have
consumers or business entered the rapidly growing market for low-priced scheduled air travel, as consumers
customers in order to have demonstrated their liking for this alternative to high-priced full-service airlines or
develop relationships and charters. Bluetooth and wireless connectivity are creating numerous opportunities for
achieve commercial goals.
brands, as mobile apps engage with consumers anytime and anywhere. Tesla and
­Google have entered the car market as technology advances and political pressures
open up opportunities for EVs and driverless vehicles. Most new products or services exist because
marketers identified a marketing opportunity.
Marketers should be capable of recognizing and analyzing marketing opportunities. An organi-
zation’s long-term survival depends on developing products that satisfy its customers. Few orga-
nizations can assume that products popular today will interest buyers ten years from now, or even
in a few months’ time. A marketing-led organization can choose among several alternatives for
continued product development through which it can achieve its objectives and satisfy buyers.
It can modify existing products (for example, by reducing salt content and additives in foods to
address increasing health consciousness among customers), introduce new products (such as
smart watches, hybrid cars, cold water washing machines, or longer-life nappies) and delete
some that customers no longer want (such as compact cameras or upright vacuum cleaners).
A ­company may also try to market its products to a greater number of customers, persuade current
customers to use more of a product, or perhaps expand marketing activities into additional coun-
tries. Diversification into new product offerings through internal efforts or through acquisitions of
other organizations may be viable options for a company. For example, Virgin has entered financial
services and healthcare. An organization’s ability to pursue any of these alternatives successfully
depends on its internal characteristics and the forces within the marketing environment. These
strategic options are discussed further in Chapter 2 of Marketing: Concepts and Strategies.

Internal organizational factors The primary factors inside an organization to be considered when
analyzing marketing opportunities and devising target market strategies are organizational objectives,
financial resources, managerial skills, organizational strengths and weaknesses, and cost structures.
Most organizations have overall organizational objectives. Some marketing opportunities may be
consistent with these objectives; others may not, and to pursue them is hazardous. Frequently, the
pursuit of such opportunities ends in failure, or forces the company to alter its long-term objectives.
The links with corporate strategy and an organization’s mission are discussed in Chapter 2.
An organization’s financial resources constrain the type of marketing opportunities it can pursue.
Typically, an organization avoids projects that might bring economic catastrophe. In some situa-
tions, however, a company must invest in a high-risk opportunity, because the costs of not pursuing
the project are so great. Thus, despite an economic recession and reduced consumer spending,
companies such as BMW have continued to launch new products and enter more markets.
The skills and experience of management also limit the types of opportunity that an organization
can pursue. A company must be particularly cautious when exploring the possibility of entering

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
26  Part One MARKETING DEFINED AND MARKETING IN CONTEXT

unfamiliar markets with new products. If it lacks appropriate managerial skills and experience,
the business can sometimes acquire them by recruiting additional managerial personnel. Most
organizations at some time are limited in their growth plans by a lack of sufficient managers with
suitable skills and market insights.
Like people, most organizations have strengths and weaknesses. Due to the types of operation
in which a company is engaged, it will normally have employees with specialist skills and techno-
logical information. Such characteristics are a strength when launching marketing strategies that
require them. However, lack of them may be a weakness if the company tries to compete in new,
unrelated product areas. A major IT services company altered its strategy to focus on winning
more business for IT infrastructure management from existing clients rather than from attracting
new clients. This required a different set of selling skills, and managers with the ability to nurture
relationships and exploit emerging sales opportunities within a client company. The revised target
market strategy resulted in redundancies among the existing salesforce, and the recruitment of
account managers with the necessary skills and interpersonal abilities.
An organization’s cost structure may be an advantage if the company pursues certain market-
ing opportunities, and a disadvantage if it pursues others. Such factors as geographic location,
employee skills, access to raw materials and type of equipment and facilities can all affect cost
structure. Previous investment levels and priorities will have ramifications for the current cost struc-
ture. As discussed in Chapter 2, the cost structure of an organization may provide a competitive
advantage over rivals, or may place a business at a competitive disadvantage.

Marketing environment forces The marketing environment, which consists of political, legal,
regulatory, societal, technological and economic/competitive forces, surrounds the buyer (­consumer)
and the organization’s marketing mix (see Figure 1.4), impacting on both. Each major environmen-
tal force is explored in considerable depth in Chapter 3. Marketers know that they cannot predict
changes in the marketing environment with certainty. Even so, over the years marketers have become
more systematic in taking these forces into account when planning their competitive actions.17 An
organization that fails to monitor the forces of the marketing environment is likely to miss out on
emerging opportunities at the expense of rivals with the foresight to examine these market drivers.
Marketing environment forces affect a marketer’s ability to facilitate and expedite exchanges,
in four general ways:
1. They influence customers by affecting or regulating their lifestyles, standards of living, prefer-
ences and needs for products. As a marketing manager tries to develop and adjust the mar-
keting mix to satisfy consumers or business customers, the effects of environmental forces on
customers also have an indirect impact on the marketing mix components.
2. Marketing environment forces help determine whether and how a marketing manager can
perform certain marketing activities. They may force marketers to cease certain practices or
to adopt new strategies.
3. Environmental forces may affect a marketing manager’s decisions and actions by influencing
buyers’ reactions to the company’s marketing mix.
4. Marketing environment forces may provide an organization with a window of opportunity over
rivals that fail to notice the market development or that take no action themselves. Equally,
market drivers may provide competitors with such an opportunity ahead of a marketer’s own
organization.
Although forces in the marketing environment are sometimes viewed as ‘uncontrollables’, a mar-
keting manager may be able to influence one or more of them. However, marketing environment
forces fluctuate quickly and dramatically, which is one reason why marketing is so interesting and
challenging. As these forces are highly interrelated, a change in one may cause others to change.
For example, from Freons in fridges to additives in foods, most consumers have become increas-
ingly aware of health and environmental issues. Manufacturers have altered product specifications

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 1 The marketing concept   27

and production methods to reflect this awareness. Legislators and regulatory bodies have also
responded to expert and consumer opinions with new regulations and informal agreements, forcing
companies to rethink their manufacturing and marketing policies.
Even though changes in the marketing environment produce uncertainty for marketers and
at times impede marketing efforts, they can also create opportunities. After the 1989 oil spills,
for example, more companies began developing and marketing products designed to contain or
dissipate spilled oil. The BSE beef crisis gave producers of other meats significant opportunities.
Environmental concerns have encouraged car manufacturers to develop emission-free engines.
Rising mobile phone usage and improvements to network technologies have enabled various
information providers to tailor their services for sports fans or stock-market investors. Recession
led to a growth in demand for domestic vacations, at the expense of more expensive flight-based
holidays. Marketers must be aware of changes in environmental forces so that they can capitalize
on the opportunities they provide. The marketing environment is discussed more fully in Chapters
2 and 3 of Marketing: Concepts and Strategies.

target market Target market selection A target market is a group of people for whom a company
A group of people or creates and maintains a marketing mix that specifically fits the needs and preferences
organizations for whom of that group.18 When choosing a target market, marketing managers try to evaluate
a company creates and possible markets to see how entering them would affect the company’s sales, costs and
maintains a marketing
profits. Marketers also attempt to determine whether the organization has the resources
mix that specifically fits
the needs and prefer- to produce a marketing mix that meets the needs of a particular target market, and
ences of that group. whether satisfying those needs is consistent with the company’s overall objectives and
mission. The size and number of competitors already marketing products in possible
target markets are also of concern.
Marketing managers may define a target market as a vast number of people or as a relatively
small group. For example, Ford produces cars suitable for much of the population – although
specific models are quite narrowly targeted, such as the family runaround Focus or the executive
Mondeo. Porsche focuses its marketing effort on a small proportion of the population, believing
that it can compete more effectively by concentrating on an affluent target market desiring sports
coupés. Although a business may concentrate its efforts on one target market through a single
marketing mix, organizations often focus on several target markets by developing and deploying
multiple marketing mixes. Reebok, for example, markets different types of shoes to meet the spe-
cific needs of joggers, walkers, aerobics enthusiasts and other groups.
Target market selection is crucial to generating productive marketing efforts. At times, products
and organizations fail because marketers do not identify the appropriate customer groups at which
to aim their efforts. Organizations that try to be all things to all people typically end up not satisfying
the needs of any customer group very well. It is important for an organization’s management to
designate which customer groups the company is trying to serve and to have adequate information
about these customers. The identification and analysis of a target market provide a foundation on
which a marketing mix can be developed. Marketers must strive to develop attractive and com-
pelling value propositions for these targeted consumers or business customers and to provide a
rewarding and satisfying customer experience. As will be explored in the next chapter, it is import-
ant to strive to develop an advantage over competitors in the markets targeted.

Marketing programmes
In order to make the devised marketing strategy become a reality, marketers must specify the
set of marketing mix ingredients forming the marketing programme for implementing the agreed
marketing strategy. These marketing mix decisions occupy the majority of marketers’ time and
account for the bulk of a marketing department’s budget. However, as previously explained, before
the marketing mix is specified, marketers should undertake sufficient marketing analyses and reflect
the findings of these analyses in their marketing strategy.

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
28  Part One MARKETING DEFINED AND MARKETING IN CONTEXT

marketing mix Marketing mix development Traditionally, the marketing mix was deemed to
The tactical ‘toolkit’ consist of four major components: product, place (distribution), promotion and price.
of the marketing pro- Increasingly, a fifth component is viewed as ‘people’, who provide customer service and
gramme; product, place/ interact with customers and organizations within the supply chain. These components
distribution, promotion,
are called ‘marketing mix decision variables’ because a marketing manager decides
price and people vari-
ables that an organiza- which type of each component to use and in what amounts. A primary goal of a mar-
tion can control in order keting manager is to create and maintain a marketing mix that satisfies consumers’
to appeal to the target needs for a general product type. Note that in Figure 1.4, the marketing mix is built
market and facilitate around the buyer – as is stressed by the marketing concept and definition of marketing.
satisfying exchange.
Bear in mind, too, that the forces of the marketing environment affect the marketing mix
variables in many ways.
Marketing mix variables are often viewed as controllable variables because they can be changed.
However, there are limits to how much these variables can be altered. For example, because of
economic conditions or government regulations, a manager may not be free to adjust prices daily.
Changes in sizes, colours, shapes and designs of most tangible goods are expensive; therefore,
such product features cannot be altered very often. In addition, promotional campaigns and the
methods used to distribute products ordinarily cannot be changed overnight. People, too, require
training and motivating, and cannot be recruited or sacked overnight, so customer service is not
always flexible.
Marketing managers must develop a marketing mix that precisely matches the needs of the
people – or organizations in business-to-business marketing – in the target market. Before they can
do so, they have to collect in-depth, up-to-date information about those needs. The information
might include data about the age, income, ethnic origin, sex and educational level of people in the
target market; their preferences for product features; their attitudes towards competitors’ products;
and the frequency and intensity with which they use the product. Armed with these kinds of data,
marketing managers are better able to develop a product, service package, distribution system,
promotion programme and price that will satisfy the people in the target market.
This section looks more closely at the decisions and activities related to each marketing mix
variable (product, place/distribution, promotion, price and people – the ‘5Ps’ of the marketing mix).
Table 1.1 contains a list of the decisions and activities associated with each marketing mix variable.

product variable The product variable A product can be a good, a service or an idea. The product
The aspect of the variable is the aspect of the marketing mix that deals with researching consumers’
­marketing mix that deals product wants and designing a product with the desired characteristics and function-
with researching con-
ality. It also involves the creation or alteration of packaging and brand names, and may
sumers’ product wants
and designing a product include decisions about guarantees, repair services and customer support. The actual
with the desired charac- manufacturing of products is not a marketing activity, but marketing-oriented businesses
teristics and functionality. look to marketers to specify product development requirements that reflect customer
needs and evolving expectations.
Product-variable decisions and related activities are important because they directly
place/distribution involve creating products and services that satisfy consumers’ needs and wants. To
variable maintain a satisfying set of products that will help an organization achieve its goals, a
The aspect of the
marketer must be able to develop new products, modify existing ones and eliminate
­marketing mix that deals
with making products those that no longer satisfy buyers or yield acceptable profits. For example, after realizing
available, perhaps through that competitors were capturing large shares of the low-calorie market, Heinz introduced
multiple channels, in the new product items under its Weight Watchers name. To reflect greater use of micro-
quantities desired, to as wave ovens, rice company Tilda introduced its steam-in-a-pouch range of quick cook
many customers as pos-
microwavable sachets.
sible, while keeping the
total inventory, transport
and storage costs as low The place/distribution variable To satisfy consumers, products must be available
as possible. at the right time and in a convenient location. In dealing with the place/distribution
­variable, a marketing manager seeks to make products available in the quantities

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Chapter 1 The marketing concept   29

desired to as many intended customers as possible, and to keep the total inventory, transport and
storage costs as low as possible. A marketing manager may become involved in selecting and
motivating intermediaries (wholesalers, retailers and dealers), establishing and maintaining inventory
control procedures, and developing and managing transport and storage systems. Many organiza-
tions distribute their products through multiple channels, now typically including online, adding to
the complexity of marketing management but providing exciting opportunities. As more than one
channel is often deployed, a challenge for marketers is to manage the customer’s expe-
promotion variable
The aspect of the mar-
rience across these multiple channels, providing a consistent experience of the brand.
keting mix that relates to
marketing communica- The promotion variable The promotion variable relates to communication activities
tions used to inform one that are used to inform one or more groups of people about an organization and its prod-
or more groups of people ucts. Promotion can be aimed at increasing public awareness of an organization and of
about an organization
and its products and
new or existing products. In addition, promotion can serve to educate consumers about
to maintain an ongoing product features or to urge people to take a particular stance on a political or social
relationship. issue. It may also be used to keep interest strong in an established product that has been
available for decades. The advertisement in Figure 1.5 is an example. M ­ arketers increas-
ingly refer to the promotion variable in the marketing mix as ‘marketing communications’.

Figure 1.5
Promotion of an established brand. Champagne
house Moët & Chandon uses its heritage in its
advertising to reinforce its brand appeal

Recently, this has become even more important for marketers, as they struggle to under-
price variable stand the power of growing consumer-to-consumer communications about their brands,
The aspect of the mar- made possible by social media and the web.
keting mix that relates
to activities associated
with establishing pricing
The price variable The price variable relates to activities associated with estab-
policies and determining lishing pricing policies and determining product prices. Price is a critical component of
product prices. the marketing mix because consumers and business customers are concerned about
the value obtained in an exchange. Price is often used as a competitive tool; in fact,

Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Another random document with
no related content on Scribd:
Haïtien. Here, however, their numbers availed them little against the
arms and discipline of the French troops, and they were driven back
with great slaughter, and many then retired to the mountains. It
would naturally be suspected that the coloured people were the
instigators of this movement, were it not certain that they were as
much opposed to the freedom of the blacks as the most impassioned
white planter.
The insurgent slaves called themselves “Les Gens du Roi,” declaring
that he was their friend, and was persecuted for their sake; they
hoisted the white flag, and placed an ignorant negro, Jean François,
at their head. The second in command was a Papaloi or priest of the
Vaudoux, named Biassou. He encouraged his followers to carry on
the rites of their African religion, and when under its wildest
influence, he dashed his bands to the attack of their civilised
enemies, to meet their death in Hayti, but to rise again free in their
beloved Africa. The ferocity of the negro nature had now full swing,
and the whites who fell into their hands felt its effects. Prisoners
were placed between planks and sawn in two, or were skinned alive
and slowly roasted, the girls violated and then murdered. Unhappily
some of these blacks had seen their companions thus tortured,
though probably in very exceptional cases. Descriptions of these
horrors fill pages in every Haytian history, but it is needless to dwell
on them. On either side there was but little mercy.
The Governor at length collected 3000 white troops, who, after
various skirmishes, dispersed these bands with much slaughter; but
as this success was not followed up, Jean François and Biassou
soon rallied their followers.
In the meantime the coloured men at Mirebalais, under the
leadership of Pinchinat, began to arouse their brethren; and having
freed nine hundred slaves, commenced forming the nucleus of an
army, that, under the leadership of a very intelligent mulatto named
Bauvais, gained some successes over the undisciplined forces in
Port-au-Prince, commanded by an Italian adventurer, Praloto. The
Royalists, who had been driven from the city by the mob, had
assembled at “La Croix des Bouquets” in the plains, and to
strengthen, their party entered into an alliance with the freedmen.
This alarmed the inhabitants of Port-au-Prince, and they also
recognised the existence of Pinchinat and his party by entering into a
regular treaty with them. The Haytians, as I may call the coloured
races, began now to understand that their position must depend on
their own courage and conduct.
When everything had been settled between the chiefs of the two
parties, the Haytians returned to Port-au-Prince, and were received
with every demonstration of joy; they then agreed to a plan which
showed how little they cared for the liberty of others, so that they
themselves obtained their rights. Among those who had fought
valiantly at their side were the freed slaves previously referred to.
For fear these men should incite ideas of liberty among those blacks
who were still working on the estates, the coloured officers
consented that they should be deported from the country. In the end
they were placed as prisoners on board a pontoon in Mole St.
Nicolas, and at night were for the most part butchered by unknown
assassins. And Bauvais and Pinchinat, the leaders and the most
intelligent of the freedmen, were those that agreed to this deportation
of their brethren-in-arms who had the misfortune to be lately slaves! I
doubt if the blacks ever forgot this incident.
The coloured men gained little by this breach of faith, as shortly after
news arrived that the French Assembly had reversed the decree of
May 15, which gave equal rights to the freedmen; and then
dissensions broke out, and the coloured men were again driven from
Port-au-Prince with heavy loss. This was the signal for disorders
throughout the whole country, and the whites and the freedmen were
skirmishing in every district. Praloto and the rabble reigned supreme
in Port-au-Prince, and soon made the rich merchants and
shopkeepers feel the effects of their internal divisions. They set fire
to the town, and during the confusion plundered the stores, and
exercised their private vengeance on their enemies.
The whole country was in the greatest disorder when the three
commissioners sent by the French Government arrived in Hayti. The
Colonial Assembly was still sitting at Cap Haïtien, and the insurgent
negroes were encamped at no great distance. They immediately
endeavoured to enter into negotiations with them, which had little
result, on account of the obstinacy of the planters. The three
commissioners were Mirbeck, St. Leger, and Roume. Finding that
their influence was as nought, the former two returned to France,
whilst Roume went ultimately to Santo Domingo.
The state of the colony may be imagined when it is remembered that
the whites were divided into three distinct sections. The coloured
men, jealous of each other, did not combine, but were ready to come
to blows on the least pretext; while the blacks, under Jean François,
were massacring every white that fell into their hands, and selling to
the Spaniard every negro or coloured man accused of siding with the
French. The planters wanted independence or subjection to
England; the poorer whites anything which would give them the
property of others; the coloured were still faithful to France; whilst the
blacks cared only to be free from work; yet among them was
Toussaint, who already had fermenting in his brain the project of a
free black State.
It would interest few to enter into the details of this history of horrors,
where it is difficult to feel sympathy for any party. They were alike
steeped in blood, and ready to commit any crime to further their
ends. Murder, torture, violation, pillage, bad faith, and treachery meet
you on all sides; and although a few names arise occasionally in
whom you feel a momentary interest, they are sure soon to disgust
you by their utter incapacity or besotted personal ambition.
The National Assembly in Paris, finding that their first commissioners
had accomplished nothing, sent three others, two of whom,
Sonthonax and Polvérel, are well known in Haytian history. They had
full powers, and even secret instructions, to do all they could to give
freedom to the slaves.
These two commissioners were of the very worst kind of
revolutionists, talked of little but guillotining the aristocrats, and were
in every way unsuited to their task; they dissolved the Colonial
Assembly, and substituted for it a commission, consisting of six
whites of the stamp suited to them, and six freedmen. They decided
to crush the respectable classes, whom they called Royalists,
because they would not join in revolutionary excesses, and the
massacre commenced at the Cape.
Polvérel appears to have had some idea of the responsibility of his
position, though both cruel and faithless; but Sonthonax was but a
blatant babbler, with some talent, but overwhelmed by vanity. He
caused more bloodshed than any other man, first setting the lower
white against the rich, then the mulatto against the white, and then
the black against both. Well might the French orator declare on
Sonthonax’s return to France that “il puait de sang.” The third
commissioner, Aillaud, thinking, very justly, that his companions were
a couple of scoundrels whom he could not control, embarked
secretly and left for home. Whilst these commissioners were
employed in destroying the fairest colony in the world, France, in a
moment of excited fury, declared war against the rest of Europe, and
a new era opened for Hayti.
Many of the more influential and respectable inhabitants of all
colours, utterly disgusted by the conduct of the different parties,
thought that the war between England and France would give them
some chance of rest from the excesses of the insurgent blacks; and
the factious freedmen, supported by that fou furieux, Sonthonax,
sent to Jamaica to invite the Governor to interfere and take
possession of the colony.
England did interfere, but in her usual way, with small expeditions,
and thus frittered away her strength; but the resistance made was in
general so contemptible, that with little effort we succeeded in taking
Jérémie in the south, and then St. Marc, and subsequently Port-au-
Prince. Had we sent a large army, it is equally possible that we
should not have succeeded, as the intention was to reimpose
slavery. As the garrison of Jamaica could only furnish detachments,
the British authorities began to enlist all who wished to serve
irrespective of colour, and being supported by those who were weary
of anarchy and revolutionary fury, were soon able to present a very
respectable force in the field. The Spaniards, aided by the bands of
revolted negroes, overran most of the northern province; in this they
were greatly aided by Toussaint L’Ouverture, who now began to
come to the front. Sonthonax, whose idea of energy was simply to
massacre and destroy, ordered that every place his partisans were
forced to evacuate should be burnt. At the same time he thought that
a little terror might be of service, so he erected a guillotine in Port-
au-Prince; and having at hand a Frenchman accused of being a
Royalist, he thought he would try the experiment on him. An
immense crowd of Haytians assembled to witness the execution; but
when they saw the bright blade descend and the head roll at their
feet, they were horror-stricken, and rushing on the guillotine, tore it to
pieces, and no other has ever again been erected in Hayti.
Curious people! they who never hesitated to destroy the whites,
guilty or innocent, or massacre, simply because they were white,
women and children, down to the very babe at the breast, who
invented every species of torture to render death more hideous,
were horrified because a man’s head was chopped off, instead of his
being destroyed in a fashion to which they were accustomed, and
this at a time when white, coloured, and black were vying with each
other in arts of bloodthirsty cruelty!
The whole country was in terrible confusion; the French had not one
man who had the talent or influence to dominate their divided
factions; the coloured were represented by such respectabilities as
Pinchinat, Bauvais, and Rigaud, but without one of incontestable
superiority; the blacks were as yet led by such men as Jean François
and Biassou, who must even make the respectable negroes blush to
acknowledge that they were of the same race; yet, as I have said,
there was one man coming to the front who was to dominate all.
Amid the many heroes whose actions the Haytians love to
commemorate, Toussaint L’Ouverture does not hold a high rank. And
yet the conduct of this black was so remarkable as almost to
confound those who declare the negro an inferior creature incapable
of rising to genius. History, wearied with dwelling on the petty
passions of the other founders of Haytian independence, may well
turn to the one grand figure of this cruel war. Toussaint was born on
the Breda estate in the northern department, and was a slave from
birth; it has been doubted whether he was of pure negro race. His
grandfather was an African prince, but if we may judge from the
portraits, he was not of the pure negro type. Whether pure negro or
not, there is no doubt of the intelligence and energy of the man.
Though but a puny child, by constant exercise and a vigorous will he
became as wiry and active as any of his companions, and,
moreover, gave up much of his leisure time to study. He learnt to
read French, and, it is said, in order to understand the Prayer-Book,
a little Latin; but he never quite mastered the art of writing. He was
evidently trusted and kindly treated by his master’s agent, who gave
him charge of the sugar-mills. There is an accusation constantly
brought against Toussaint, that of being a religious hypocrite, but his
early life shows that it is unfounded. Whilst still a slave, his principles
would not allow him to follow the custom of his companions and live
in concubinage; he determined to marry, though the woman he
chose had already an illegitimate son named Placide, whom he
adopted. It is pleasing to read of the happy domestic life of
Toussaint, and it is another proof of that affectionate disposition
which made those who served him devoted to him.
When the insurrection broke out in the northern province, Toussaint
remained faithful to his master, and prevented any destruction on the
estate; but finding ultimately that he could not stem the tide, he sent
his master’s family for safety into Cap Haïtien, and joined the
insurgents. He was at first appointed surgeon to the army, as among
his other accomplishments was a knowledge of simples, which had
given him great influence on the estate, and was now to do so in the
insurgent forces. He liked this employment, as it kept him free from
the savage excesses of his companions, who were acting with more
than ordinary barbarity.
The three leaders of the insurgents were then Jean François, a
negro, about whom opinions differ. St. Remy says he was
intellectual, though the general idea is more probable, that he was
an energetic savage. Biassou was sensual and violent, as cruel as
man could be and an avowed leader of the Vaudoux sect, and
apparently a Papaloi; but the vilest of the three was Jeannot. He
loved to torture his white prisoners, and drank their blood mixed with
rum; but he was as cowardly as he was cruel, and the scene at his
execution, when he clung to the priest in frantic terror, must have
afforded satisfaction to the friends of those whom he had pitilessly
murdered. Jeannot was also a great proficient in Vaudoux practices,
and thus gained much influence with the ignorant slaves; it was this
influence, not his cruelties, which roused the anger of Jean François,
who seized and summarily shot him.
It is curious to read of the projects of these negro leaders. They had
no idea of demanding liberty for the slaves; they only wanted liberty
for themselves. In some abortive negotiations with the French, Jean
François demanded that 300 of the leaders should be declared free,
whilst Toussaint would only have bargained for fifty. The mulatto
leaders, however, were most anxious to preserve their own slaves,
and, as I have related, gave up to death those blacks who had aided
them in supporting their position; and a French writer records that up
to Le Clerc’s expedition, the mulattoes had fought against the blacks
with all the zeal that the interests of property could inspire.
The blind infatuation of the planters prevented their accepting Jean
François’ proposition; they even rejected it with insult, and savagely
persecuted the negroes who were living in Cap Haïtien. Biassou
then ordered all his white prisoners to be put to death; but Toussaint,
by his eloquent remonstrances, saved them. Other negotiations
having failed, Biassou attacked the French lines, and carried them
as far as the ramparts of the town. The planters had brave words,
but not brave deeds, with which to meet their revolted bondsmen. All
the black prisoners taken by the insurgents were sent over the
frontiers and sold as slaves to the Spaniards. Toussaint
remonstrated against this vile traffic, but never shared in it. The new
Governor, Laveaux, at this time nearly stifled the insurrection,
dispersing all the insurgent forces; but, as usual, not following up his
successes, allowed the negroes again to concentrate. No strength of
position as yet enabled the blacks successfully to resist the white
troops.
When the negro chiefs heard of the death of Louis XVI., they thought
they had lost a friend, and openly joined the Spaniards in their war
on the French Republic.
At this time Sonthonax and Polvérel acted as if they intended to
betray their own country, by removing the chief white officers from
command and entrusting these important posts to mulattoes. It was
not, however, treachery, but jealousy, as such a man as General
Galbaud could not be made a docile instrument in their hands. Then
finding that power was slipping from them, they proclaimed (1793)
the liberty of all those slaves who would fight for the Republic.
In the meantime Toussaint was steadily gaining influence among his
troops, and gradually freeing himself from the control of Biassou,
whose proceedings had always shocked him; and some successful
expeditions, as the taking of Dondon, added to his prestige. Whilst
fighting was going on throughout the northern provinces, Sonthonax
and Polvérel were solemnising pompous fêtes to celebrate the
anniversary of the taking of the Bastile. It is singular what a passion
they had for these childish amusements.
Rigaud, a mulatto, in future days the rival of Toussaint, now appears
prominently upon the scene, being appointed by the commissioners
as chief of the northern department.
Toussaint continued his successes, and finding that nothing could be
done with the estates without the whites, appeared anxious to induce
them to return to superintend their cultivation, and he succeeded in
inducing many hundreds to reside in their devastated homes.
Alarmed by the continued successes of Toussaint, Sonthonax
proclaimed in August 29, 1793, the liberty of all, which, under the
circumstances, may be considered the only wise act of his
administration.
The people of the north-west, however, were weary of the tyranny of
the commissioners, and, being probably privately informed of
Toussaint’s intentions, surrendered Gonaives to him, and the rest of
the neighbouring districts followed. A new enemy, however, now
appeared in the shape of the English, who took possession of St.
Marc with seventy-five men,—so like our system! In June 1794 Port-
au-Prince surrendered to the English after a faint resistance, the
commissioners retiring to Jacmel, from whence they embarked for
France, to answer for their conduct. At that time Port-au-Prince was
in a fair state for defence; but Captain Daniel of the 41st took the
famous fort of Bizoton by storm with sixty men, and then the English
advanced on the town. The effect of having replaced the French
officers by untrained mulattoes was here apparent: though
everything had been prepared to blow up the forts, nothing was
done; the garrison fled, leaving 131 cannon, twenty-two laden
vessels, with 7000 tons more in ballast, and all their stores and
ammunition.
At this time Jean François became suspicious of Toussaint and
arrested him, but he was delivered by Biassou. Toussaint had for
some time been meditating a bold stroke. The proclamation by
Sonthonax of the freedom of the blacks probably worked on him, and
he determined to abandon the party of the king of Spain, which was
that of slavery, and join the French Republic. He did so, proclaiming
at the same time the freedom of the slaves. His soldiers sullied the
change by massacring two hundred white planters, who, confiding in
the word of Toussaint, had returned to their estates.
The new General of the republic now acted with energy against Jean
François, drove him from the plains, and forced him to take refuge
with his followers in the Black Mountains. Success followed success,
until Toussaint found himself opposite St. Marc; but his attack on that
town was easily repulsed by its garrison in English pay. His activity
was incessant, and he kept up constant skirmishes with all his
enemies. He appeared ever unwearied, whatever might be the
fatigue of his companions.
Toussaint had naturally observed, that however his men might
succeed against the undisciplined hordes of Jean François, they
could do nothing against a disciplined force. He therefore, in 1795,
formed four regiments of 2000 men each, whom he had daily drilled
by French soldiers, his former prisoners; and, I may notice here, with
such success, that English officers were subsequently surprised at
their proficiency.
Rigaud had, in the meantime, with his usual jactancy, marched on
Port-au-Prince to expel the English, but was repulsed. Toussaint
assembled all his army for another attack on St. Marc, and for three
days, from the 25th to 27th July 1795, tried by repeated assaults to
capture the town; but English discipline prevailed, and the small
garrison foiled every attempt.
It is noticed by St. Remy that Toussaint, when once he gave his
word, never broke it, which was a new experience among these
unprincipled leaders; and it is added, that he never had any
prejudice of colour.
An important event for the French in 1795 was the peace made
between France and Spain, by which Santo Domingo was ceded to
the former.
The year 1796 was ushered in by various English expeditions and
skirmishes, and their failure to take Leogâne. Some of the Haytian
accounts are amusing. Pétion defended the fort of Ça-ira against the
whole English fleet until the fortifications were demolished. Fifteen
thousand English bullets were showered into the place, and yet only
seven Haytians were killed. It looks as if the garrison had quietly
retired and left us to batter away at the earthworks.
One is often surprised, in reading Haytian accounts of the war, at the
defeats of the English, which make one wonder what could have
become of the proverbial courage and steadiness of our men; but a
little closer inquiry shows that in most of these instances there were
few or no English present, only black and coloured men in our pay,
or planters who had taken our side in the war, none of whom were
more than half-hearted in our cause.
The French were also weakened by internal dissensions. General
Vilatte, a mulatto, incited a revolt in the town of Cap Haïtien, arrested
the French governor, Laveaux, and threw him into prison. The latter
called on Toussaint to aid him, and the black general had the
supreme satisfaction of marching into the town and freeing the white
governor. With what curious sensations must Toussaint have
performed this act of authority in a place that had only known him as
a slave! Laveaux received him with enthusiasm, and promoted him
from the grade of General of Brigade, in which the French
Government had confirmed him, to be Lieutenant-General of the
Government, April 1, 1796. This successful movement confirmed the
ascendancy of the blacks in the north, and Vilatte had shortly to sail
for France, from whence he returned with the expedition sent to
enslave his countrymen.
Sonthonax and a new commission now arrived at Cap Haïtien, to
find Rigaud almost independent in the south, and Toussaint master
in the north. Both Laveaux and Sonthonax are accused of
endeavouring to set the blacks against the mulattoes. Laveaux
having returned to France as deputy for the colony, Sonthonax
remained at the head of affairs, and one of his first acts was to name
Toussaint General of Division.
Toussaint was in the meantime organising his army and working
hard at its drill; he then started to the attack of Mirebalais, a port
occupied by a French planter in our service, the Count de Bruges,
who appears to have retired, with numerous forces, without much
resistance. He probably could scarcely trust his raw levies.
Sonthonax was so pleased with this important success that he
named Toussaint Commander-in-Chief of the army in Santo
Domingo, which step displeased Rigaud, who was thus placed under
the orders of a black general.
Toussaint appears to have felt a justifiable distrust of Sonthonax. He
saw that he desired to set black against coloured, that he was even
talking of the independence of the island, perhaps only to test
Toussaint’s fidelity; but he had no difficulty in assuring himself that
wherever Sonthonax was, mischief was sure to be brewing. He
therefore had him elected deputy, and sent him to follow Laveaux.
Sonthonax did not like this step, and made some show of opposition,
but Toussaint informed him that if he did not embark immediately he
would fall on Cap Haïtien with 20,000 men. This irresistible argument
made Sonthonax give way. As he went down to the boat that was to
take him on board, the streets were lined by crowds of all colours;
but not one said, “God bless him,” as he had betrayed every party in
turn; and his one wise act of proclaiming the liberty of the slaves was
simply a political expedient, wrung from him by the circumstances of
the hour. He was a boasting, bad man, whose history is written in the
blood of thousands of every colour.
The Directory, alarmed at the growing influence of Toussaint, sent
out General Hédouville as pacificator of the island, and, to produce
harmony, gave him power to defeat Rigaud. On his arrival at Cap
Haïtien he summoned the rivals to confer with him, and Rigaud and
Toussaint, meeting at Gonaives, went together to the capital.
Hédouville, jealous of the power of the latter, gave all his attention to
the former, whilst the newly-arrived French officers laughed at the
negro and his surroundings. Toussaint, suspecting a plot to arrest
him and send him off to France, and probably very jealous of the
superior treatment of his rival, withdrew from the city and returned to
his army.
The English had now become convinced that it was useless to
attempt to conquer the island; their losses from sickness were
enormous, and the influence of the planters was of no avail. Their
black and coloured mercenaries were faithless, and ready to betray
them, as at St. Marc, where the English governor had to shoot a
number of traitorous mulattoes who would have betrayed the town
into the hands of the blacks. They therefore determined to treat with
Toussaint, and evacuated St. Marc, Port-au-Prince, and L’Arcahaye.
He thus gained at one stroke what no amount of force could have
procured for him.
Toussaint, with a greatness of mind which was really remarkable,
agreed to allow those French colonists who had sided with us to
remain, and promised to respect their properties; and as it was
known that this magnanimous black ever kept his word, no important
exodus followed our retreat. Admiral Maitland had arranged for the
surrender of the mole with General Hédouville, but on finding his
hostility to the French planters, whom he insisted on Toussaint
expelling the country, our naval chief made a new settlement with the
black general and handed the mole over to him. Maitland invited
Toussaint to visit him, and reviewed before him the English army
collected from the rest of the country. He was exceedingly pleased
by the treatment he received from our people, and ever after showed
a kindly feeling towards them.
One can scarcely understand why the English gave up the mole,
which a small garrison could have defended, and the importance of
the position in naval warfare is indisputable. If we wanted to gain
Toussaint and induce him to declare the island independent, we
should have held it until that desirable event had happened.[4]
Toussaint treated the old colonists with distinction, and left many of
them in the commands they had held under the English. Hédouville
protested against this good treatment of his own countrymen, and
annoyed Toussaint so much that he began to consider whether it
would not be prudent to send Hédouville to follow Sonthonax.
Hédouville was not the only one who objected to the good treatment
of the planters; his opinion was shared by the black general, Moïse,
then commanding in the northern department. To show his
displeasure at Toussaint’s humanity, he caused some white colonists
to be murdered in the plains near Cap Haïtien. Hédouville, frightened
by the practical result of his teaching, summoned Toussaint to his
aid; but doubtful of his general, he escaped on board a vessel in
harbour. In order to do all the mischief he could before leaving, he
wrote to Rigaud, saying he was no longer to obey Toussaint, but
consider himself the governor of the southern department, adding
that Toussaint was sold to the English and the émigrés.
It was Hédouville who thus laid the foundation of that civil war which
degenerated into a struggle of caste. The agents sent by France
proved each worse than the other. Rigaud, with the true spirit of a
mulatto, also wrote to Toussaint to drive out the white planters. When
his teaching had incited his soldiers to murder his white countrymen,
all Rigaud could say was, “Mon Dieu, qu’est que le peuple en
fureur?”
On the departure of Hédouville, Toussaint invited Roume to leave
Santo Domingo and come and reside at Port-au-Prince, where they
met in January 1799. Roume appears to have had a profound
admiration for Toussaint. We find him writing to General Kerverseau
as early as February 1795, and describing the negro chief as a
philosopher, a legislator, a general, and a good citizen.
Roume had a difficult part to play. He was most anxious to bring
about concord among the different generals, and therefore invited
Rigaud and Bauvais to meet Toussaint on the fête of the 4th of
February to commemorate the memorable day when the National
Convention proclaimed full liberty to the slaves. A little outward
concord was obtained, but soon after, Toussaint, suspecting a plot,
arrested some mulattoes. A slight disturbance among the negroes
taking place at Corail, thirty were captured and died in prison, from
“the effect of the gas created by white-washing the prison.” This
remarkable excuse did not satisfy Toussaint, who believed the men
to have been assassinated by Rigaud’s officers.
Toussaint and Roume had in the meantime left for Cap Haïtien,
where they appear to have negotiated a commercial treaty with the
Americans, and some arrangement was also, it is said, made with
Admiral Maitland.
It was during this year that Captain Rainsford visited Cap Haïtien. As
we were at war with France, our officer passed as an American, and
soon after landing was met by Toussaint in the street, who came up
to him to ask the news. He next saw him at a restaurant where all
classes dined, and he sat down at a long table with a drummer-boy
next him and the general not far off. The latter used to say that
except on service he did not see the necessity of making
distinctions. In the evening Captain Rainsford played billiards with
Toussaint at the public tables.
Rainsford appears to have been as much struck with Toussaint as
Roume. He says he was constrained to admire him as a man, a
governor, and a general. He describes him as a perfect black, then
about fifty-five years of age, of a venerable appearance, and
possessed of uncommon discernment and great suavity of manners.
He enters fully into a description of his dress. The general wore as a
uniform a kind of blue spencer, with a large red cape falling over his
shoulders, and red cuffs, with eight rows of lace on the arms, and a
pair of huge gold epaulettes, a scarlet waistcoat, pantaloons and
half-boots, a round hat with red feather and national cockade, and an
extremely large sword was suspended from his side. Rainsford adds:
“He receives a voluntary respect from every description of his
countrymen, which is more than returned by the affability of his
behaviour and the goodness of his heart.” The vessel in which
Rainsford was a passenger was next driven by stress of weather into
Fort Liberté. Arrested as a spy, he was condemned to death; but
Toussaint would not permit the sentence to be carried out. He
dismissed him with a caution not to return without passports.
There is much exaggeration in the account given by Rainsford of
what he saw and heard at Cap Haïtien. He talks of 62,000
inhabitants leaving the city after the great fire, and of Toussaint
reviewing his army of 60,000 men and 2000 officers. He was a better
judge probably of their manœuvres. He says that the soldiers went
through their exercises with a degree of expertness he had seldom
before witnessed. At the signal of a whistle, a whole brigade ran
three or four hundred yards, and then separating, threw themselves
on the ground, keeping up a heavy fire from every kind of position.
The complete subordination and discipline astonished him.
Rigaud having evidently decided to carry out General Hédouville’s
instructions and defy both Toussaint and Roume, it became
necessary to subdue him. Ten thousand men were collected at Port-
au-Prince, whilst Rigaud concentrated his army at Miragoâne, and
commenced the war by seizing Petit Goave, and there, without the
slightest excuse, murdered all the white inhabitants. It is singular to
contrast the conduct of the two generals: Toussaint, without the
slightest prejudice of colour, and Rigaud, the mulatto, the son of a
Frenchman, showing “how he hated his father and despised his
mother” by murdering the whites and refusing to obey a black.
Roume published a proclamation, calling on the north and west to
march against the south to restore unity of command; but before
entering on the campaign, Toussaint had to return to the north to
repress some movements, and on his journey back almost fell into
two ambuscades, from which he was saved by the fleetness of his
horse. Toussaint shot those who were concerned in these
conspiracies, whether black or coloured; but the stories told by St.
Remy of his ordering 180 young mulatto children to be drowned at
L’Arcahaye, is so contrary to everything we know of his character,
that we may set this fable down to caste hatred. That he was severe
with his enemies is no doubt true.
Then began the wearisome civil war in the south by Dessalines
driving back Rigaud’s army, and by the siege of Jacmel, which lasted
four months. Pétion greatly distinguished himself in the defence, and
conducted the evacuation. It appears unaccountable that while the
main body of Toussaint’s army was thus engaged, Rigaud remained
passive; it can only be explained by mean jealousy, which was his
characteristic to the last year of his life. But his principal fault was
jactancy, shown by his proclamation, saying, “Let the enemy appear
and I’ll slay them,” which was answered by another from Toussaint
offering pardon and peace.
Toussaint’s army in the south was commanded by Dessalines and
Christophe, or, in other words, by two ferocious blacks, to whom pity
was unknown. Dessalines soon forced the strong position near
Miragoâne, and defeated Rigaud and Pétion, driving them before
him towards Les Cayes. Rigaud ordered his officers to burn and
destroy everything in their retreat, which naturally roused the
inhabitants against these measures of defence, and they became
clamorous for peace.
In the meantime the Consular Government at Paris sent out officers
to Hayti, among whom was Colonel Vincent. Toussaint was
confirmed in his position as General-in-Chief, but the war in the
south was disapproved. Colonel Vincent was enabled to tell him of
all the changes that had taken place in France, but the black chief
could readily see that he was suspected by the French Government.
He, however, sent Vincent and other officers to Les Cayes to offer
peace. It is amusing to read the account given of Rigaud. He went to
see the French officers, a blunderbuss on his shoulder, pistols in his
belt, a sword on one side and a dagger on the other. On hearing that
his conduct did not meet with the support of the French Government,
he drew his dagger as if to stab himself, but did not do so: he
preferred making a truce and embarking for France, together with his
principal officers.
Toussaint entered Les Cayes on the 1st August 1800, and showed
the grandeur of his character by implicitly carrying out his original
proclamation. He again proclaimed union and peace, and pardoned
all those who had been led into rebellion against him; and, to the
astonishment of his enemies, he kept his word and behaved with
great magnanimity. Even his worst opponents were then constrained
to allow that, when once given, he never broke his word.
If Toussaint was clement, Dessalines was the reverse; and the
mulattoes declare that he killed upwards of ten thousand of their
caste, which is probably more of that colour than the southern
province ever contained.
Whilst this campaign was at its height, Roume committed the
indiscretion of trying to raise a revolt in Jamaica. His agents were
taken and hung; and as a punishment the English captured one of
Toussaint’s convoys destined for Jacmel. The General, very angry
with Roume, sent for him; he refused to come, upon which Toussaint
went to Cap Haïtien, and after reproaching him, insisted on his giving
him an order to invade the eastern end of the island. He refused at
first, but ultimately yielded to the menaces of General Moïse.
When the southern campaign was over, Toussaint began to prepare
for the occupation of Santo Domingo, but finding that Roume was
inclined to withdraw his permission, he arrested him and sent him
back to France. Toussaint’s prestige was now so great in the island,
that little resistance was made, and he occupied the city of Santo
Domingo almost without a shot being fired, and established his
brother Paul as governor.
The whole of the island being now under one chief, Toussaint
decided to put into execution a constitution which he had already
promulgated. It was certainly a model of liberality. It placed all
colours equal before the law; employments might be held by black,
white, or coloured; as much freedom of trade as possible; a governor
to be named for five years, but on account of the eminent services of
Toussaint, he was to occupy that post for life, with power to name his
successor. He sent this constitution to Buonaparte for approval; but
evidently it was too much or too little. Had he boldly proclaimed the
independence of the island, he might have saved the country from
great misfortunes.
Peace being now re-established over all the island, Toussaint began
his civil administration. All accounts are unanimous in declaring that
he himself governed admirably, but the instruments he had to
employ were too often utterly unworthy. He organised the country
into districts, and appointed inspectors to see that all returned to
their work, and decreed that a fifth of the produce should be given to
the labourers. Dessalines was appointed inspector-in-chief; and if a
man without any sentiment of humanity was required for that post,
surely Dessalines was a good choice, as he was ready to beat to
death any man, woman, or child whom he chose to accuse of
idleness. Toussaint, looking to difficulties ahead, continued to pay
the greatest attention to his army, organised it with care, and
preserved the strictest discipline. The stick appears to have been as
popular in that day as it is now.
Toussaint was very friendly to the whites, and was most anxious to
encourage them to aid in developing the country. This excited the
jealousy of some of his generals; among others, of Moïse, his
nephew, who to thwart his uncle’s projects incited a movement in the
north to massacre the French. Several having fallen victims,
Toussaint hastened to the spot, and finding that Moïse was the real
instigator of the murders, sent him before a court-martial. He was
sentenced to death, and very properly shot on the 26th November
1800. Had Toussaint connived at these crimes, he would have upset
all confidence in his trusted word.
All was now progressing on the island; the government was regularly
administered, the finances were getting into order, and agriculture
was beginning to raise its head, when Buonaparte, having secured
peace in Europe, determined to recover the Queen of the Antilles
and restore slavery. The story of this attempt may be told in a few
words. General Leclerc started with 30,000 men to subdue the
island, and although the evident intention of the French Government
was to restore slavery, the principal mulatto officers accompanied
him, chief among whom were Rigaud, Pétion, and Vilatte. It is true
the mulattoes had not yet frankly accepted the full freedom of the
blacks.
General Leclerc did all he could to cause an armed resistance, as a
peaceful solution would have given him no military glory; therefore,
instead of sending Toussaint his children and the letter he bore from
Buonaparte, he tried to surprise Cap Haïtien. But General
Christophe, before retiring with its garrison, set fire to the town and
almost destroyed it; and Toussaint sent instructions to his other
generals to follow this example. Leclerc, mortified by the result of his
first attempt, now thought of writing to Toussaint, and sent him his
two boys. Toussaint behaved with great nobility of character, and
asked naturally, “Why words of peace but acts of war?” Finding that
he could not circumvent his black opponent, Leclerc published a
decree in February 1802 placing both Toussaint and Christophe
“hors la loi.” This was followed by the burning of the towns of St.
Marc and Gonaives, and a retreat of the black troops towards the
interior.
Whenever you see a fortress in Hayti, you are sure to be told that it
was built by the English; among others thus known was La Crête à
Pierrot. The French general Debelle, treating with contempt these
negro troops, attacked this fort with an inefficient force and was
beaten; then Leclerc made an assault in person, but he also was
beaten, and was forced to lay siege to it. The attack and defence
were conducted with singular courage, particularly the latter,
considering the quality of the men, who had never before been
measured with real white troops: however, after having repulsed
several assaults, the garrison evacuated the forts. Pétion
commanded a portion of the French artillery in this attack on his
countrymen struggling for freedom. If he loved France but little, he
hated Toussaint more.
Even the enemies of the great black general are full of admiration of
the courage displayed by him during all this important struggle, and
especially dwell on his devotion to his wounded officers. I may here
remark that the French general Rochambeau distinguished himself
for his cruelties, and shot every prisoner that fell into his hands;
which fully justified the retaliation of the Haytians.
Discouraged by a series of reverses which followed the loss of La
Crête à Pierrot, where it was amply proved that the negro soldiers,
even among their mountains, were no match for the disciplined
troops of France, some of the black generals, as Christophe, began
to make terms with the French; and Toussaint, finding himself thus
abandoned, wrote to Leclerc offering submission. As it was
accepted, he went to Cap Haïtien to meet the commander-in-chief,
and was received and treated with much distinction. He then
returned to the village of Marmalade, and there issued orders to all
his officers to cease opposition and acknowledge the French
authorities, and peace was established throughout the island.
General Leclerc was but temporising with these black leaders; his
secret orders were, not only to arrest Toussaint, Dessalines, and
Christophe, but to re-establish slavery. He found, however, the last
two so zealous in carrying out his instructions to disarm the
population, that he preserved them in their commands.
Toussaint himself, having ever kept his word, could not believe that
the French commander-in-chief would not keep his, and therefore, in
spite of all warnings that treachery was meditated, stayed quietly on
his estate at Ennery. He there received a letter from General Brunet,
asking for an interview at a certain spot; Toussaint went, and was
immediately arrested under circumstances of the greatest treachery.
He was bound with ropes and embarked on board the French ship
“Creole;” then put on board the “Héros” with all his family and sent to
France. When received on board by Savary, Chef de Division, he
said to him, “En me renversant on n’a abattu à Saint Domingue que
le tronc de l’arbre de la liberté des noirs; il repoussera, parceque les
racines en sont profondes et nombreuses.” When reading this
account of the capture of Toussaint, we can scarcely credit that we
are recording the acts of French officers, whose plighted word was
thus broken.[5]
On Toussaint’s arrival in France he wrote to the French Chief
Consul; but he might as well have written to Dessalines as expect
either mercy or justice from the despot who then ruled France. He
was separated from his family and hurried off to the Château de
Joux in the Alps, where his rival Rigaud was already confined. Here
he died from cold and neglect, under circumstances which raised the
suspicion that the close of this illustrious life was hastened by unfair
means. It is some satisfaction to think that his executioner died also
a prisoner in exile, though surrounded by every comfort that the
generous English Government could afford him.

You might also like