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2 02 0 E D I T I O N | P R I D E & F E R R E L L
MARKETING
WILLIAM M. PRIDE
Texas A & M University
O.C. FERRELL
Auburn University
Australia • Brazil • Mexico • Singapore • United Kingdom • United States
Copyright 2020 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).
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Marketing 2020, Twentieth Edition © 2020, 2018 Cengage Learning, Inc.
William M. Pride and O.C. Ferrell Unless otherwise noted, all content is © Cengage.
WCN: 02-300
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Printed in the United States of America

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Relationships
1 An Overview of Strategic Marketing

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

While sales have always been needed to make a profit, during the first half of the 20th cen-
tury competition increased and businesses realized that they would have to focus more on
selling products to many buyers. Businesses viewed sales as the major means of increasing
profits, and this period came to have a sales orientation. Businesspeople believed that the most
important marketing activities were personal selling, advertising, and distribution. Today,
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that there was approaching an hour which was annually set apart for
the indulgence of the inmates of the prison in question. She did not
stop to ask herself, as she might well have done, how it was that she
had so completely ignored this particular institution, which was one
of the largest and best conducted in the country, especially when her
desire to visit one was so keen; but she straightway set about
preparing for her intended visit in a manner which she fancied Miss
Crofutt would have approved, had she been present.
She resolved, in the most radical sense of the word, to be alive.
She jotted on some ivory tablets, with a gold pencil, a number of
hints to assist her in her observations. For example: “Phrenological
development; size of cells; ounces of solid and liquid; tissue-
producing food; were mirrors allowed? if so, what was the effect?
jimmy and skeleton-key, character of; canary birds: query, would not
their admission into every cell animate in the human prisoners a
similar buoyancy? to urge upon the turnkeys the use of the Spanish
garrote in place of the present distressing gallows; to find the
proportion of Orthodox and Unitarian prisoners to those of other
persuasions.” But besides these and fifty other similar memoranda,
the enthusiast cast about her for something practical to do.
She hit upon the capital idea of flowers. She at once ordered
from a gardener of taste two hundred bouquets, or rather nosegays,
which she intended for distribution among the prisoners she was
about to visit, and she called upon her father for the money.
Then she began to prepare her mind. She wished to define the
plan from which she was to make her contemplations. She settled
that she would be grave and gentle. She would be exquisitely careful
not to hold herself too much aloof, and yet not to step beyond the
bounds of that sweet reserve that she conceived must have been at
once Miss Crofutt’s sword and buckler.
Her object was to awaken in the most abandoned criminals a
realization that the world, in its most benignant phase, was still open
to them; that society, having obtained a requital for their wickedness,
was ready to embrace them again on proof of their repentance.
She determined to select at the outset two or three of the most
remarkable monsters, and turn the full head of her persuasions
exclusively upon them, instead of sprinkling (as it were) the whole
community with her grace. She would arouse at first a very few, and
then a few more, and a few more, and so on ad infinitum.
It was on a hot July morning that she journeyed on foot over the
bridge which led to the prison, and there walked a man behind her
carrying the flowers.
Her eyes were cast down, this being the position most significant
of her spirit. Her pace was equal, firm, and rapid; she made herself
oblivious of the bustle of the streets, and she repented that her
vanity had permitted her to wear white and lavender, these making a
combination in her dress which she had been told became her well.
She had no right to embellish herself. Was she going to the races, or
a match, or a kettle-drum, that she must dandify herself with
particular shades of color? She stopped short, blushing. Would Miss
Cro——. But there was no help for it now. It was too late to turn
back. She proceeded, feeling that the odds were against her.
She approached her destination in such a way that the prison
came into view suddenly. She paused with a feeling of terror. The
enormous gray building rose far above a lofty white wall of stone,
and a sense of its prodigious strength and awful gloom overwhelmed
her. On the top of the wall, holding by an iron railing, there stood a
man with a rifle trailing behind him. He was looking down into the
yard inside. His attitude of watchfulness, his weapon, the unseen
thing that was being thus fiercely guarded, provoked in her such a
revulsion that she came to a standstill.
What in the name of mercy had she come here for? She began
to tremble. The man with the flowers came up to her and halted.
From the prison there came at this instant the loud clang of a bell,
and succeeding this a prolonged and resonant murmur which
seemed to increase. Miss Eunice looked hastily around her. There
were several people who must have heard the same sounds that
reached her ears, but they were not alarmed. In fact, one or two of
them seemed to be going to the prison direct. The courage of our
philanthropist began to revive. A woman in a brick house opposite
suddenly pulled up a window-curtain and fixed an amused and
inquisitive look upon her.
This would have sent her into a thrice-heated furnace. “Come, if
you please,” she commanded the man, and she marched upon the
jail.
She entered at first a series of neat offices in a wing of the
structure, and then she came to a small door made of black bars of
iron. A man stood on the farther side of this, with a bunch of large
keys. When he saw Miss Eunice he unlocked and opened the door,
and she passed through.
She found that she had entered a vast, cool, and lofty cage, one
hundred feet in diameter; it had an iron floor, and there were several
people strolling about here and there. Through several grated
apertures the sunlight streamed with strong effect, and a soft breeze
swept around the cavernous apartment.
Without the cage, before her and on either hand, were three
more wings of the building, and in these were the prisoners’
corridors.
At the moment she entered, the men were leaving their cells,
and mounting the stone stairs in regular order, on their way to the
chapel above. The noisy files went up and down and to the right and
to the left, shuffling and scraping and making a great tumult. The
men were dressed in blue, and were seen indistinctly through the
lofty gratings. From above and below and all around her there came
the metallic snapping of bolts and the rattle of moving bars; and so
significant was everything of savage repression and impending
violence, that Miss Eunice was compelled to say faintly to herself, “I
am afraid it will take a little time to get used to all this.”
She rested upon one of the seats in the rotunda while the chapel
services were being conducted, and she thus had an opportunity to
regain a portion of her lost heart. She felt wonderfully dwarfed and
belittled, and her plan of recovering souls had, in some way or other,
lost much of its feasibility. A glance at her bright flowers revived her
a little, as did also a surprising, long-drawn roar from over her head,
to the tune of “America.” The prisoners were singing.
Miss Eunice was not alone in her intended work, for there were
several other ladies, also with supplies of flowers, who with her
awaited until the prisoners should descend into the yard and be let
loose before presenting them with what they had brought. Their
common purpose made them acquainted, and by the aid of chat and
sympathy they fortified each other.
Half an hour later the five hundred men descended from the
chapel to the yard, rushing out upon its bare broad surface as you
have seen a burst of water suddenly irrigate a road-bed. A hoarse
and tremendous shout at once filled the air, and echoed against the
walls like the threat of a volcano. Some of the wretches waltzed and
spun around like dervishes, some threw somersaults, some folded
their arms gravely and marched up and down, some fraternized,
some walked away pondering, some took off their tall caps and sat
down in the shade, some looked towards the rotunda with
expectation, and there were those who looked towards it with
contempt.
There led from the rotunda to the yard a flight of steps. Miss
Eunice descended these steps with a quaking heart, and a turnkey
shouted to the prisoners over her head that she and others had
flowers for them.
No sooner had the words left his lips, than the men rushed up
pell-mell.
This was a crucial moment.
There thronged upon Miss Eunice an army of men who were
being punished for all the crimes in the calendar. Each individual
here had been caged because he was either a highwayman, or a
forger, or a burglar, or a ruffian, or a thief, or a murderer. The
unclean and frightful tide bore down upon our terrified missionary,
shrieking and whooping. Every prisoner thrust out his hand over the
head of the one in front of him, and the foremost plucked at her
dress.
She had need of courage. A sense of danger and contamination
impelled her to fly, but a gleam of reason in the midst of her
distraction enabled her to stand her ground. She forced herself to
smile, though she knew her face had grown pale.
She placed a bunch of flowers into an immense hand which
projected from a coarse blue sleeve in front of her; the owner of the
hand was pushed away so quickly by those who came after him that
Miss Eunice failed to see his face. Her tortured ear caught a rough
“Thank y’, miss!” The spirit of Miss Crofutt revived in a flash, and her
disciple thereafter possessed no lack of nerve.
She plied the crowd with flowers as long as they lasted, and a
jaunty self-possession enabled her finally to gaze without flinching at
the mass of depraved and wicked faces with which she was
surrounded. Instead of retaining her position upon the steps, she
gradually descended into the yard, as did several other visitors. She
began to feel at home; she found her tongue, and her color came
back again. She felt a warm pride in noticing with what care and
respect the prisoners treated her gifts; they carried them about with
great tenderness, and some compared them with those of their
friends.
Presently she began to recall her plans. It occurred to her to
select her two or three villains. For one, she immediately pitched
upon a lean-faced wretch in front of her. He seemed to be old, for his
back was bent and he leaned upon a cane. His features were large,
and they bore an expression of profound gloom. His head was sunk
upon his breast, his lofty conical cap was pulled over his ears, and
his shapeless uniform seemed to weigh him down, so infirm was he.
Miss Eunice spoke to him. He did not hear; she spoke again. He
glanced at her like a flash, but without moving; this was at once
followed by a scrutinizing look. He raised his head, and then he
turned toward her gravely.
The solemnity of his demeanor nearly threw Miss Eunice off her
balance, but she mastered herself by beginning to talk rapidly. The
prisoner leaned over a little to hear better. Another came up, and two
or three turned around to look. She bethought herself of an incident
related in Miss Crofutt’s book, and she essayed its recital. It
concerned a lawyer who was once pleading in a French criminal
court in behalf of a man whose crime had been committed under the
influence of dire want. In his plea he described the case of another
whom he knew who had been punished with a just but short
imprisonment instead of a long one, which the judge had been at
liberty to impose, but from which he humanely refrained. Miss Eunice
happily remembered the words of the lawyer: “That man suffered like
the wrong-doer that he was. He knew his punishment was just.
Therefore there lived perpetually in his breast an impulse toward a
better life which was not suppressed and stifled by the five years he
passed within the walls of the jail. He came forth and began to labor.
He toiled hard. He struggled against averted faces and cold words,
and he began to rise. He secreted nothing, faltered at nothing, and
never stumbled. He succeeded; men took off their hats to him once
more; he became wealthy, honorable, God-fearing. I, gentlemen, am
that man, that criminal.” As she quoted this last declaration, Miss
Eunice erected herself with burning eyes and touched herself
proudly upon the breast. A flush crept into her cheeks, and her
nostrils dilated, and she grew tall.
She came back to earth again, and found herself surrounded
with the prisoners. She was a little startled.
“Ah, that was good!” ejaculated the old man upon whom she had
fixed her eyes. Miss Eunice felt an inexpressible sense of delight.
Murmurs of approbation came from all of her listeners, especially
from one on her right hand. She looked around at him pleasantly.
But the smile faded from her lips on beholding him. He was
extremely tall and very powerful. He overshadowed her. His face
was large, ugly, and forbidding; his gray hair and beard were
cropped close, his eyebrows met at the bridge of his nose and
overhung his large eyes like a screen. His lips were very wide, and,
being turned downwards at the corners, they gave him a dolorous
expression. His lower jaw was square and protruding, and a pair of
prodigious white ears projected from beneath his sugar-loaf cap. He
seemed to take his cue from the old man, for he repeated his
sentiment.
“Yes,” said he, with a voice which broke alternately into a roar
and a whisper, “that was a good story.”
“Y-yes,” faltered Miss Eunice, “and it has the merit of being t-
rue.”
He replied with a nod, and looked absently over her head while
he rubbed the nap upon his chin with his hand. Miss Eunice
discovered that his knee touched the skirt of her dress, and she was
about to move in order to destroy this contact, when she
remembered that Miss Crofutt would probably have cherished the
accident as a promoter of a valuable personal influence, so she
allowed it to remain. The lean-faced man was not to be mentioned in
the same breath with this one, therefore she adopted the superior
villain out of hand.
She began to approach him. She asked him where he lived,
meaning to discover whence he had come. He replied in the same
mixture of roar and whisper, “Six undered un one, North Wing.”
Miss Eunice grew scarlet. Presently she recovered sufficiently to
pursue some inquiries respecting the rules and customs of the
prison. She did not feel that she was interesting her friend, yet it
seemed clear that he did not wish to go away. His answers were
curt, yet he swept his cap off his head, implying by the act a certain
reverence, which Miss Eunice’s vanity permitted her to exult at.
Therefore she became more loquacious than ever. Some men came
up to speak with the prisoner, but he shook them off, and remained
in an attitude of strict attention, with his chin on his hand, looking
now at the sky, now at the ground, and now at Miss Eunice.
In handling the flowers her gloves had been stained, and she
now held them in her fingers, nervously twisting them as she talked.
In the course of time she grew short of subjects, and, as her listener
suggested nothing, several lapses occurred; in one of them she
absently spread her gloves out in her palms, meanwhile wondering
how the English girl acted under similar circumstances.
Suddenly a large hand slowly interposed itself between her eyes
and her gloves, and then withdrew, taking one of the soiled trifles
with it.
She was surprised, but the surprise was pleasurable. She said
nothing at first. The prisoner gravely spread his prize out upon his
own palm, and after looking at it carefully, he rolled it up into a tight
ball and thrust it deep in an inner pocket.
This act made the philanthropist aware that she had made
progress. She rose insensibly to the elevation of patron, and she
made promises to come frequently and visit her ward and to look in
upon him when he was at work; while saying this she withdrew a
little from the shade his huge figure had supplied her with.
He thrust his hands into his pockets, but he hastily took them out
again. Still he said nothing and hung his head. It was while she was
in the mood of a conqueror that Miss Eunice went away. She felt a
touch of repugnance at stepping from before his eyes a free woman,
therefore she took pains to go when she thought he was not looking.
She pointed him out to a turnkey, who told her he was expiating
the sins of assault and burglarious entry. Outwardly Miss Eunice
looked grieved, but within she exulted that he was so emphatically a
rascal.
When she emerged from the cool, shadowy, and frowning prison
into the gay sunlight, she experienced a sense of bewilderment. The
significance of a lock and a bar seemed greater on quitting them
than it had when she had perceived them first. The drama of
imprisonment and punishment oppressed her spirit with tenfold
gloom now that she gazed upon the brilliancy and freedom of the
outer world. That she and everybody around her were permitted to
walk here and there at will, without question and limit, generated
within her an indefinite feeling of gratitude; and the noise, the colors,
the creaking wagons, the myriad voices, the splendid variety and
change of all things excited a profound but at the same time a
mournful satisfaction.
Midway in her return journey she was shrieked at from a
carriage, which at once approached the sidewalk. Within it were four
gay maidens bound to the Navy-Yard, from whence they were to sail,
with a large party of people of nice assortment, in an experimental
steamer, which was to be made to go with kerosene lamps, in some
way. They seized upon her hands and cajoled her. Wouldn’t she go?
They were to sail down among the islands (provided the oil made the
wheels and things go round), they were to lunch at Fort Warren, dine
at Fort Independence, and dance at Fort Winthrop. Come, please
go. Oh, do! The Germanians were to furnish the music.
Miss Eunice sighed, but shook her head. She had not yet got the
air of the prison out of her lungs, nor the figure of her robber out of
her eyes, nor the sense of horror and repulsion out of her
sympathies.
At another time she would have gone to the ends of the earth
with such a happy crew, but now she only shook her head again and
was resolute. No one could wring a reason from her, and the
wondering quartet drove away.
II
Before the day went, Miss Eunice awoke to the disagreeable fact
that her plans had become shrunken and contracted, that a certain
something had curdled her spontaneity, and that her ardor had flown
out at some crevice and had left her with the dry husk of an intent.
She exerted herself to glow a little, but she failed. She talked
well at the tea-table, but she did not tell about the glove. This matter
plagued her. She ran over in her mind the various doings of Miss
Crofutt, and she could not conceal from herself that that lady had
never given a glove to one of her wretches; no, nor had she ever
permitted the smallest approach to familiarity.
Miss Eunice wept a little. She was on the eve of despairing.
In the silence of the night the idea presented itself to her with a
disagreeable baldness. There was a thief over yonder that
possessed a confidence with her.
They had found it necessary to shut this man up in iron and
stone, and to guard him with a rifle with a large leaden ball in it.
This villain was a convict. That was a terrible word, one that
made her blood chill.
She, the admired of hundreds and the beloved of a family, had
done a secret and shameful thing of which she dared not tell. In
these solemn hours the madness of her act appalled her.
She asked herself what might not the fellow do with the glove?
Surely he would exhibit it among his brutal companions, and perhaps
allow it to pass to and fro among them. They would laugh and joke
with him, and he would laugh and joke in return, and no doubt he
would kiss it to their great delight. Again, he might go to her friends,
and, by working upon their fears and by threatening an exposure of
her, extort large sums of money from them. Again, might he not
harass her by constantly appearing to her at all times and all places
and making all sorts of claims and demands? Again, might he not,
with terrible ingenuity, use it in connection with some false key or
some jack-in-the-box, or some dark-lantern, or something, in order to
effect his escape; or might he not tell the story times without count to
some wretched curiosity-hunters who would advertise her folly all
over the country, to her perpetual misery?
She became harnessed to this train of thought. She could not
escape from it. She reversed the relation that she had hoped to hold
toward such a man, and she stood in his shadow, and not he in hers.
In consequence of these ever-present fears and sensations,
there was one day, not very far in the future, that she came to have
an intolerable dread of. This day was the one on which the sentence
of the man was to expire. She felt that he would surely search for
her; and that he would find her there could be no manner of doubt,
for, in her surplus of confidence, she had told him her full name,
inasmuch as he had told her his.
When she contemplated this new source of terror, her peace of
mind fled directly. So did her plans for philanthropic labor. Not a
shred remained. The anxiety began to tell upon her, and she took to
peering out of a certain shaded window that commanded the square
in front of her house. It was not long before she remembered that for
good behavior certain days were deducted from the convicts’ terms
of imprisonment. Therefore, her ruffian might be released at a
moment not anticipated by her. He might, in fact, be discharged on
any day. He might be on his way towards her even now.
She was not very far from right, for suddenly the man did appear.
He one day turned the corner, as she was looking out at the
window fearing that she should see him, and came in a diagonal
direction across the hot, flagged square.
Miss Eunice’s pulse leaped into the hundreds. She glued her
eyes upon him. There was no mistake. There was the red face, the
evil eyes, the large mouth, the gray hair, and the massive frame.
What should she do? Should she hide? Should she raise the
sash and shriek to the police? Should she arm herself with a knife?
or—what? In the name of mercy, what? She glared into the street.
He came on steadily, and she lost him, for he passed beneath her. In
a moment she heard the jangle of the bell. She was petrified. She
heard his heavy step below. He had gone into the little reception
room beside the door. He crossed to a sofa opposite the mantel. She
then heard him get up and go to a window, then he walked about,
and then sat down; probably upon a red leather seat beside the
window.
Meanwhile the servant was coming to announce him. From
some impulse, which was a strange and sudden one, she eluded the
maid, and rushed headlong upon her danger. She never
remembered her descent of the stairs. She awoke to cool
contemplation of matters only to find herself entering the room.
Had she made a mistake, after all? It was a question that was
asked and answered in a flash. This man was pretty erect and self-
assured, but she discerned in an instant that there was needed but
the blue woollen jacket and the tall cap to make him the wretch of a
month before.
He said nothing. Neither did she. He stood up and occupied
himself by twisting a button upon his waistcoat. She, fearing a threat
or a demand, stood bridling to receive it. She looked at him from top
to toe with parted lips.
He glanced at her. She stepped back. He put the rim of his cap
in his mouth and bit it once or twice, and then looked out at the
window. Still neither spoke. A voice at this instant seemed
impossible.
He glanced again like a flash. She shrank, and put her hands
upon the bolt. Presently he began to stir. He put out one foot, and
gradually moved forward. He made another step. He was going
away. He had almost reached the door, when Miss Eunice
articulated, in a confused whisper, “My—my glove; I wish you would
give me my glove.”
He stopped, fixed his eyes upon her, and after passing his
fingers up and down upon the outside of his coat, said, with
deliberation, in a husky voice, “No, mum. I’m goin’ fur to keep it as
long as I live, if it takes two thousand years.”
“Keep it!” she stammered.
“Keep it,” he replied.
He gave her an untranslatable look. It neither frightened her nor
permitted her to demand the glove more emphatically. She felt her
cheeks and temples and her hands grow cold, and midway in the
process of fainting she saw him disappear. He vanquished quietly.
Deliberation and respect characterized his movements, and there
was not so much as a jar of the outer door.
Poor philanthropist!
This incident nearly sent her to a sick-bed. She fully expected
that her secret would appear in the newspapers in full, and she lived
in dread of the onslaught of an angry and outraged society.
The more she reflected upon what her possibilities had been and
how she had misused them, the iller and the more distressed she
got. She grew thin and spare of flesh. Her friends became
frightened. They began to dose her and to coddle her. She looked at
them with eyes full of supreme melancholy, and she frequently wept
upon their shoulders.
In spite of her precautions, however, a thunderbolt slipped in.
One day her father read at the table an item that met his eye. He
repeated it aloud, on account of the peculiar statement in the last
line:—
“Detained on suspicion.—A rough-looking fellow, who gave the
name of Gorman, was arrested on the high-road to Tuxbridge
Springs for suspected complicity in some recent robberies in the
neighborhood. He was fortunately able to give a pretty clear account
of his late whereabouts, and he was permitted to depart with a
caution from the justice. Nothing was found upon him but a few
coppers and an old kid glove wrapped in a bit of paper.”
Miss Eunice’s soup spilled. This was too much, and she fainted
this time in right good earnest; and she straightway became an
invalid of the settled type. They put her to bed. The doctor told her
plainly that he knew she had a secret, but she looked at him so
imploringly that he refrained from telling his fancies; but he ordered
an immediate change of air. It was settled at once that she should go
to the “Springs”—to Tuxbridge Springs. The doctor knew there were
young people there, also plenty of dancing. So she journeyed thither
with her pa and her ma and with pillows and servants.
They were shown to their rooms, and strong porters followed
with the luggage. One of them had her huge trunk upon his shoulder.
He put it carefully upon the floor, and by so doing he disclosed the
ex-prisoner to Miss Eunice and Miss Eunice to himself. He was
astonished, but he remained silent. But she must needs be
frightened and fall into another fit of trembling. After an awkward
moment he went away, while she called to her father and begged
piteously to be taken away from Tuxbridge Springs instantly. There
was no appeal. She hated, hated, HATED Tuxbridge Springs, and
she should die if she were forced to remain. She rained tears. She
would give no reason, but she could not stay. No, millions on millions
could not persuade her; go she must. There was no alternative. The
party quitted the place within the hour, bag and baggage. Miss
Eunice’s father was perplexed and angry, and her mother would
have been angry also if she had dared.
They went to other springs and stayed a month, but the patient’s
fright increased each day, and so did her fever. She was full of
distractions. In her dreams everybody laughed at her as the one who
had flirted with a convict. She would ever be pursued with the tale of
her foolishness and stupidity. Should she ever recover her self-
respect and confidence?
She had become radically selfish. She forgot the old ideas of
noble-heartedness and self-denial, and her temper had become
weak and childish. She did not meet her puzzle face to face, but she
ran away from it with her hands over her ears. Miss Crofutt stared at
her, and therefore she threw Miss Crofutt’s book into the fire.
After two days of unceasing debate, she called her parents, and
with the greatest agitation told them all.
It so happened, in this case, that events, to use a railroad
phrase, made connection.
No sooner had Miss Eunice told her story than the man came
again. This time he was accompanied by a woman.
“Only get my glove away from him,” sobbed the unhappy one,
“that is all I ask!” This was a fine admission! It was thought proper to
bring an officer, and so a strong one was sent for.
Meanwhile the couple had been admitted to the parlor. Miss
Eunice’s father stationed the officer at one door, while he, with a
pistol, stood at the other. Then Miss Eunice went into the apartment.
She was wasted, weak, and nervous. The two villains got up as she
came in, and bowed. She began to tremble as usual, and laid hold
upon the mantelpiece. “How much do you want?” she gasped.
The man gave the woman a push with his forefinger. She
stepped forward quickly with her crest up. Her eyes turned, and she
fixed a vixenish look upon Miss Eunice. She suddenly shot her hand
out from beneath her shawl and extended it at full length. Across it
lay Miss Eunice’s glove, very much soiled.
“Was that thing ever yours?” demanded the woman, shrilly.
“Y-yes,” said Miss Eunice, faintly.
The woman seemed (if the apt word is to be excused)
staggered. She withdrew her hand, and looked the glove over. The
man shook his head, and began to laugh behind his hat.
“And did you ever give it to him?” pursued the woman, pointing
over her shoulder with her thumb.
Miss Eunice nodded.
“Of your own free will?”
After a moment of silence she ejaculated, in a whisper, “Yes.”
“Now wait,” said the man, coming to the front; “’nough has been
said by you.” He then addressed himself to Miss Eunice with the
remains of his laugh still illuminating his face.
“This is my wife’s sister, and she’s one of the jealous kind. I love
my wife” (here he became grave), “and I never showed her any kind
of slight that I know of. I’ve always been fair to her, and she’s always
been fair to me. Plain sailin’ so far; I never kep’ anything from her—
but this.” He reached out and took the glove from the woman, and
spread it out upon his own palm, as Miss Eunice had seen him do
once before. He looked at it thoughtfully. “I wouldn’t tell her about
this; no, never. She was never very particular to ask me; that’s where
her trust in me came in. She knowed I was above doing anything out
of the way—that is—I mean—” He stammered and blushed, and
then rushed on volubly. “But her sister here thought I paid too much
attention to it; she thought I looked at it too much, and kep’ it secret.
So she nagged and nagged, and kept the pitch boilin’ until I had to
let it out: I told ’em” (Miss Eunice shivered). “‘No,’ says she, my
wife’s sister, ‘that won’t do, Gorman. That’s chaff, and I’m too old a
bird.’ Ther’fore I fetched her straight to you, so she could put the
question direct.”
He stopped a moment as if in doubt how to go on. Miss Eunice
began to open her eyes, and she released the mantel. The man
resumed with something like impressiveness:
“When you last held that,” said he, slowly, balancing the glove in
his hand, “I was a wicked man with bad intentions through and
through. When I first held it I became an honest man, with good
intentions.”
A burning blush of shame covered Miss Eunice’s face and neck.
“An’ as I kep’ it my intentions went on improvin’ and improvin’, till
I made up my mind to behave myself in future, forever. Do you
understand?—forever. No backslidin’, no hitchin’, no slippin’-up. I
take occasion to say, miss, that I was beset time and again; that the
instant I set my foot outside them prison-gates, over there, my old
chums got round me; but I shook my head. ‘No,’ says I, ‘I won’t go
back on the glove.’”
Miss Eunice hung her head. The two had exchanged places, she
thought; she was the criminal and he the judge.
“An’ what is more,” continued he, with the same weight in his
tone, “I not only kep’ sight of the glove, but I kep’ sight of the
generous sperrit that gave it. I didn’t let that go. I never forgot what
you meant. I knowed—I knowed,” repeated he, lifting his forefinger,
—“I knowed a time would come when there wouldn’t be any
enthoosiasm, any ‘hurrah,’ and then perhaps you’d be sorry you was
so kind to me; an’ the time did come.”
Miss Eunice buried her face in her hands and wept aloud.
“But did I quit the glove? No, mum. I held on to it. It was what I
fought by. I wasn’t going to give it up, because it was asked for. All
the police-officers in the city couldn’t have took it from me. I put it
deep into my pocket and I walked out. It was differcult, miss. But I
come through. The glove did it. It helped me stand out against
temptation when it was strong. If I looked at it, I remembered that
once there was a pure heart that pitied me. It cheered me up. After a
while I kinder got out of the mud. Then I got work. The glove again.
Then a girl that knowed me before I took to bad ways married me,
and no questions asked. Then I just took the glove into a dark corner
and blessed it.”
Miss Eunice was belittled.
A noise was heard in the hall-way. Miss Eunice’s father and the
policeman were going away.
The awkwardness of the succeeding silence was relieved by the
moving of the man and the woman. They had done their errand, and
were going.
Said Miss Eunice, with the faint idea of making a practical
apology to her visitor, “I shall go to the prison once a week after this,
I think.”
“Then may God bless ye, miss,” said the man. He came back
with tears in his eyes and took her proffered hand for an instant.
Then he and his wife’s sister went away.
Miss Eunice’s remaining spark of charity at once crackled and
burst into a flame. There is sure to be a little something that is bad in
everybody’s philanthropy when it is first put to use; it requires to be
filed down like a faulty casting before it will run without danger to
anybody. Samaritanism that goes off with half a charge is sure to do
great mischief somewhere; but Miss Eunice’s, now properly
corrected, henceforth shot off at the proper end, and inevitably hit
the mark. She purchased a new Crofutt.
BAYARD TAYLOR
1825–1878
Bayard Taylor, in the ’60’s and ’70’s, was among the best known of our men of
letters. Typical American in enterprise and resource, he gave most of his life to
foreign lands and letters. Views Afoot (1846), which has sent across the Atlantic
hundreds of young Americans like him in large ambition and small purse, was the
first of a series extending through his life. For a really Viking spirit of travel urged
him over the habitable globe, from Africa to Iceland, from California to Japan. The
store of observations first made newspaper correspondence. His profession was
journalism. Some of the material was subsequently cast in lectures; most of it
appeared finally in books. Thus his trip across the world (1851–1853) to join Perry
furnished, first, copy for the New York “Tribune,” then many popular lectures, and
finally The Lands of the Saracen (1854) and A Visit to India, China and Japan
(1855). His wide knowledge of foreign societies and his intimate acquaintance with
Germany brought him naturally into public life as minister to Berlin (1877–1878).
Admirable journalist, Taylor was not content with journalism. In 1863 at Gotha,
where he had found a wife in 1857, he was deep in the study of Goethe. From
1868–1870, after intervening travels, he gave himself to the translation of “Faust.”
Lecturing then at Cornell as Professor of German Literature, he went back to
Germany to pursue Goethe still further at Weimar. So his knowledge of
Scandinavia was of the literature as well as of the land.
His great ambition, and doubtless his measure of success, was poetry. From
his youthful ventures in Philadelphia almost to the day of his death he published
verse; and the recognition of the public appears in the choice of him to read the
Harvard Φ Β Κ poem in 1850 and the National Ode at the Centennial Exposition of
1876. Since his death this part of his work has been so far slighted that there is
some need of recalling his consistently high aim and the technical mastery evinced
by performances so widely different as the delicious parodies of The Echo Club
and the noble rendering of “Faust.” No criticism of Taylor as a poet should obscure
the fact that his “Faust” takes rank with the few great verse translations.
Taylor’s versatility achieved also a lesser, but still a considerable, success in
novels and tales. The interest aroused by the lively opening of Who Was She? is
sustained with no little art. Perhaps the import would be more poignant if it were
less dangerously near to abstract proposition; but it is very human.
WHO WAS SHE?
[From the “Atlantic Monthly” September, 1874]
COME, now, there may as well be an end of this! Every time I meet
your eyes squarely, I detect the question just slipping out of them. If
you had spoken it, or even boldly looked it; if you had shown in your
motions the least sign of a fussy or fidgety concern on my account; if
this were not the evening of my birthday, and you the only friend who
remembered it; if confession were not good for the soul, though
harder than sin to some people, of whom I am one,—well, if all
reasons were not at this instant converged into a focus, and burning
me rather violently, in that region where the seat of emotion is
supposed to lie, I should keep my trouble to myself.
Yes, I have fifty times had it on my mind to tell you the whole
story. But who can be certain that his best friend will not smile—or,
what is worse, cherish a kind of charitable pity ever afterwards—
when the external forms of a very serious kind of passion seem
trivial, fantastic, foolish? And the worst of all is that the heroic part
which I imagined I was playing proves to have been almost the
reverse. The only comfort which I can find in my humiliation is that I
am capable of feeling it. There isn’t a bit of a paradox in this, as you
will see; but I only mention it, now, to prepare you for, maybe, a little
morbid sensitiveness of my moral nerves.
The documents are all in this portfolio, under my elbow. I had
just read them again completely through, when you were
announced. You may examine them as you like, afterwards: for the
present, fill your glass, take another Cabaña, and keep silent until
my “ghastly tale” has reached its most lamentable conclusion.
The beginning of it was at Wampsocket Springs, three years ago
last summer. I suppose most unmarried men who have reached, or
passed, the age of thirty—and I was then thirty-three—experience a

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