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Full Download pdf of (eBook PDF) Principles of Marketing 3rd Edition 3.0 by Jeff Tanner all chapter
Full Download pdf of (eBook PDF) Principles of Marketing 3rd Edition 3.0 by Jeff Tanner all chapter
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Chapter 11 Integrated Marketing Communications and Traditional Media Marketing 235
Integrated Marketing Communications (IMC) 235
The Promotion (Communication) Mix 239
Factors Influencing the Promotion Mix, Communication Process, and 241
Message Problems
Message Strategies 244
The Promotion Budget 250
Advertising and Direct Marketing 252
Public Relations, Sponsorships, and Product Placements 254
Sales Promotions 261
Discussion Questions and Activities 266
Endnotes 268
Index 371
ou e u ors
JEFFTANNER
John F. (Jefi) Tanner Jr. , is Dean of the Strome College of Business, Old Dominion
University. He is an internationally recognized expert in sales and sales management.
He is the author or coauthor of fifteen books, including best -selling textbooks such
as Selling: Building Partnerships and several books for practitioners, most re-
cently Analytics & Dynamic Customer Strategy: Big Profits from Big Data. His books
have been translated into severallanguages and distributed in over thirty countries.
Dr. Tanner spent eight years in marketing and sales with Rockwell International
and Xerox Corporation. In 1988, he earned his PhD from the U niversity of Georgia and
joined the faculty at Baylor University, where he is now Professor Emeritus. Dr. Tanner
has taught executives and business students around the world, including in Colombia,
India, Mexico , Canada, France, Ireland, Australia, Malawi, and Trinidad.
In addition to writing and research , Dr. Tanner maintains an active consulting and
training practice. Recent clients include Teradata, Cabela's IBM, Gallery Furniture,
EM C, and others. He is the managing pa此ner of The Tanner Group , a marketing and
customer strategy consultancy, and he is a founder and a pa此ner in JK Tanner Inc. , an
investment firm.
The authors would like to thank the following reviewers for their feedback, which helped shape the third edition:
• Karen L. Ekstein, George Brown College
• Alan W. Jackson, Peru State College
• Dr. Bahram Mahdavian, California State University ofLos Angeles
• Ahmad Mohamed Assaad Mahmoud, Ain Shams University
• Patrick J. Donahue, Adjunct Instructor Northern New Mexico University
• E. L严ln Addison, Brewton-Parker College
• Kevin Logan, Anne Arundel Community College
The authors would like to thank the following reviewers for their feedback, which helped shape the second edition:
• Stephen M. Berry, Anne Arundel Community College
• Bob Conrad, Ph.D. , APR, Conrad Communications, LLC.
• Ted Lapekas , SUNY/Empire State College
• Donald G. Purdy, U niversity at Albany
• Elizabeth F. Purinton, Marist College
• Kelly Sell, Bucks County Community College
• Richard L. Sharman, Lone Star College-Montgomery
• Gary Tucker, Northwestern Oklahoma State University
• Gregory R. W ood, Canisius College
• Anne Zahradnik, Marist College
The authors would like to thank Camille Schuster for her input, examples, and feedback on 出e first edition chapters. The authors
would also like to thank the following colleagues who reviewed the first edition text and provided comprehensive feedback and sug-
gestions for improving the material:
• Christie Amaot, University ofNorth Carolina, Charlotte
• Andrew Baker, Georgia State University
• Jennifer Barr, The Richard Stockton College ofNew Jersey
• George Bernard, Seminole Community College
• Patrick Bishop, Ferris State University
• Donna Crane, Northern Kentucky U niversity
• Lawrence Duke, Drexel U niversity
• Ma巧 Ann Edwards, College of Mount St. Joseph
• Paulette Faggiano, Southern New Hampshire University
• Bob Farris, M t. San Antonio College
• Leisa Flynn, Florida State U niversity
• Renee Foster, Delta State University
• Alfredo Gomez, Broward College
• Jianwei Hou, Minnesota State U niversity, Mankato
• Craig Kelley, California State University, Sacramento
• Marilyn Liebrenz-Himes, George Washington U niversity
• Alicia Lupinacci, Tarrant County College
• JohnM山er, Pima Community College, Downtown
• Melissa Moore , Mississippi State U niversity
• Kathy Rathbone, Tri-County Communi可 College
• Michelle Reiss, Spalding University
• Tom Schmidt, S坦lpson College
• Richard Sharman, Lonestar College
ACKNOWLEDGMENTS 3
The field of marketing is changing at a breakneck pace. Most other principles of marketing textbooks are doing their best to keep up
with changes, but often 也ey fall short. Although it' s been some time since our last revision, we believe th创 Princ伊les of Marketing
3.0 contains the most-up-to-date information on what's going on in the field of marketing today- as well as how to do it. For ex-
ample, Chapter 12, which is an entirely new chapter on digital marketing, encompasses how firms go about conducting eveη吨hing
from e-mail to search-engine and social media marketing, and how students can use these techniques if they own their own busi-
nesses or want to start one.
In addition to the new chapter on digital marketing, the following are some of the new cutting-edge topics in Princ伊les ofMa仁
keting 3.0 that you may want your students to learn about:
• The sharing economy
• A伍liate marketing
• Customer engagement
• Content marketing
• Online reputation management (ORM)
• Experiential marketing
• Search-engine optimization
• User-generated content
• Social media best practices
• Social media marketing in B2B markets
• Crowdfunding and crowdsourcing
• N ew Federal Trade Commission (FTC) guidelines about paid online reviews and "likes"
• Native advertising
• Big data
• Data brokers
• Predictive anal严ics
• The Internet ofThings (IoT)
As with the previous edition, we have updated the text to include new examples, videos, and illustrations that more reflect the latest
in how marketing actually gets done.
Last, but not least, the platform for our product allows us to update it continuously. If you have suggestions for new topics and
new examples, we would love to about hear them and incorporate them in an updated version of the text.
c _~ A _e 工E_ R ]
a S ar etln ?
What makes a business idea work? Does it only take money? Why are some products a huge success and similar
products a dismal failure? How was Apple, a computer company, able to create and launch the wildly successful
iPod , yet Microsoft's fi rst foray into MP3 players was a total disaster? If the size of the company and the money
behind a product's launch were the difference, Microsoft would have won. But for Microsoft to have won , it would
have needed something it hasn't had in a wh ile-good marketing so it can produce and sell products that
consumers wan t.
1. DEFINING MARKETING
LEARNING OBJECTIVE
1. De而ne marketing and outline its components.
Marketing is defined by the American Marketing Association as "the activity, set of institutions, and
Marketing
processes for creating, communicating, delivering, and exchanging offerings 由at have value for cus-
寸he activity, set of
tomers, clients, partners, and society at large."[l] If you read the definition closely, you see that there are
institutions, and processes for
four activities , or components, of marketing: creating , communicatmg,
1. Creating. The process of collaborating with suppliers and customers to create 0岳rings 出at have delivering, and exchanging
value. offerings that have value for
customers, clients, partners,
2. Communicating. Broadly, describing those offerings, as well as learning from customers. and society at large."
3. Delivering. Getting those offerings to the consumer in a way that optimizes value.
4. Exchanging. Trading value for those offerings.
However, the traditional way of viewing the components of marketing, which emerged in the early
1950s, is based on the following four Ps:
1. Product. Goods and services (creating 0能rings).
2. Promotion. Communication.
3. Place. Getting the product to a point at which the customer can purchase it (delivering).
4. Price. The moneta巧 amount charged for the product (exchanging).
The four Ps are called the marketing mix, meaning that a marketing plan is a mix of these four com-
ponents. If the four Ps are 也e same as creating, communicating, delivering, and exchanging, you might
be wondering why there was a change. The answer is that they are not exact1y the same. Product, price,
place, and promotion are nouns. As such, these words fail to capture all the activities of marketing. For
example, exchanging requires mechanisms for a transaction , which consist of more than simply a price
or place. Exchanging requires, among other things, the transfer of ownership. For example, when you
buy a car, you sign documents 也at transfer the car' s tit1e from the seller to you. That's pa此 ofthe ex-
change process.
Even the term product, which seems pretty obvious, is limited. Does the product include services
由at come with your new car purchase (such as free maintenance for a certain period of time on some
models)? Or does the product mean only the car itself? Finally, none of the four Ps describes particu-
larly well what marketing people do. However, one of the goals of this book is to focus on exact1y what
it is that marketing professionals do.
6 PRINCIPLES OF MARKETING VERSION 3.0
1.1 Value
Value lies at the center of everything marketing does (Figure 1. 1). What does value mean?
When we use the term value , we mean 由e benefits buyers receive that meet their needs. In other
value
words , value is what the customer gets by purchasing and consuming a company' s offering. So, al-
Total sum of benefits though the offering is created by the company, the value is determined by the customer.
received that meet a buyer's
needs. See personalvalue Furthermore, our goal as marketers is to create a profitable exchange for consumers. By profitable,
equatlon. we mean that 由e consumer's personal value equation is positive. The personal value equation is
value = benefits received - (price + hassle)
personal value equation Hassle is the time and effort the consumer puts into the shopping process. The equation is a per-
sonal one because how each consumer judges the benefits of a product w诅 vary, as will the time and
The net benefit a consumer
receives from a product less effort he or she puts into shopping. Value , then , varies for each consumer.
the price paid for it and the One way to think of value is to think of a meal in a restaurant. If you and three friends go to a res-
hassle or e忏órt expended to taurant and order the same dish, each of you willlike it more or less depending on your own personal
acquire it. tastes. Yet the dish was exact1y the same, priced the same, and served exact1y the same way. Because
your tastes varied, the benefits you received varied. Therefore the value varied for each of you. That's
why we call it a personal value equation.
CHAPTER 1 WHAτIS MARKETING? 7
Value varies from customer to customer based on each customer' s needs. The marketing
marketing concept
concept, a ph且osophy underl抖ng all 也at marketers do, requires that marketers seek to satis马r custom-
A philosophy underlying all
er wants and needs. Firms operating with that philosophy are said to be market oriented. At 也esame that marketers do, driven by
time, market -oriented firms recognize 出at exchange must be profitable for the company to be success- satis市i ng customer wants
ful. A marketing orientation is not an excuse to fa且 to make profit. and needs.
Firms don't always embrace the marketing concept and a market orientation. Beginning with the
market oriented
Industrial Revolution in the late 1800s, companies were production orientation. They believed 由at
the best way to compete was by reducing production costs. In other words , companies thought that The degree to which a
company follows the
good products would sell themselves. Perhaps the best ex缸丑ple of such a product was Henry Ford's marketing concept.
Model A automobile, the first product of his production line innovation. Ford's production line made
the automobile cheap and affordable for just about eve巧one. The production era lasted until the
production orientation
1920s, when production -capacity grow由 began to outpace demand grow由 and new strategies were
A belief that the way to
called for. There are, however, companies that st山 focus on production as 由e way to compete.
compete is a function of
From the 1920s until after World War 11, companies tended to be selling orientation, meaning product innovation and
由ey believed 让 was necessa巧 to push their products by heavi与 emphas泣ing advertising and selling. reducing production costs, as
Consumers during the Great Depression and World War 11 did not have as much money, so the com- good products appropriately
petition for their available dollars was stiff. The result was this push approach during the selling era. priced sell themselves.
Companies like the Fuller Brush Company and Hoover Vacuum began selling door-to-door and the production era
vacuum-cleaner salesman (they were always men) was created. Just as with production, some compan- A period beginning with the
ies still operate with a push focus. Industrial Revolution and
In the post- World War 11 environment, demand for goods increased as 也e economy soared. concluding in the 1920s in
Some products, limited in supply during W orld War 11, were now plentiful to the point of surplus. which production-orientation
Companies believed 由at a way to compete was to create products different from the competition, so thinking dominated the way
in which fi rms competed.
many focused on product innovation. This focus on product innovation is called the product orient-
ation. Companies like Procter & Gamble created many products that served the same basic function
selling orientation
but with a slight twist or difference in order to appeal to a different consumer, and as a result products
proliferated. But as consumers had many choices available to 也em, companies had to find new ways to A philosophy that products
compete. Which products were best to create? Why create them? The answer was to create what cus- must be pushed through
selling and advertising in
tomers wanted, leading to the development of the marketing concept. During this time, the marketing order for a fi rm to compete
concept was developed, and from about 1950 to 1990, businesses operated in the marketing era. successfully.
selling era
A period running fromthe
1920s to unti l 拍erWorld War
川 i n which the selling
orientation dominated the
way firms competed.
product orientation
A philosophy that focuses on
competing through product
innovation.
marketing era
From 1950 to at least 1990
(see service-dominant logic
era, value era, and one-to-one
era) , the dominant
philosophyamong
businesses is the marketing
concept.
8 PRINCIPLES OF MARKETING VERSION 3.0
So what era would you say we' re in now? Some call it the value era: a time when companies em-
value era
phasize creating value for customers. Is that really different from the marketing era, in which the em-
From the 1990s to the phasis was on fulfilling the marketing concept? Maybe not. Others call today' s business environment
present, some argue that
白 rm s moved into the value
the one-to-one era, meaning that the way to compete is to build relationships with customers one at a
era, competing on the basis time and seek to serve each customer' s needs individually. For example, the longer you are customer of
of value: others contend that Amazon, the more detail 由ey gain in your purchasing habits and the better they can target you with
the value era is simply an offers of new products. Wi出 the advent of social media and the empowerment of consumers through
extension of the marketing ubiquitous information that includes consumer reviews, there is clearly greater emphasis on meeting
era and is not a separate era. customer needs. Yet is that substantially different from the marketing concept?
one-to-one era Still others argue 出at this is the time of service-dominant logic and 由at we are in the service-
From the 1990s to the dominant logic era. Service-dominant logic is an approach to business 由at recognizes 由at con-
present, the idea of SU1丑ers want value no matter how it is delivered, whether it's via a product, a service , or a combination
competing by building of the two. Although there is merit in this belief, there is also merit to the value approach and the one-
relationships with customers to-one approach. As you will see throughout this book, all three are intertwined. Perhaps, then , the
one at a time and seeking to
name for this era has yet to be devised.
serve each customer's needs
individually. Whatever era we're in now, most historians would agree 出at defining and labeling it is di伍cult.
Value and one-to-one are both natural extensions of the marketing concept, so we may st诅 be in the
marketing era. To make matters more confusing, not all companies adopt the philosophy of the era.
service-dominant logic
For example, in the 1800s Singer and National Cash Register adopted strategies rooted in sales, so they
An approach to business that operated in the selling era fo此y years before it existed. Some companies are st山 in the selling era. Re-
recognizes that customers do cent1y , many considered automobile manufacturers to be in the trouble 也ey were in because 出eywork
not distinguish between the
tangible and the intangible too hard to sell or push product and not hard enough on delivering value.
aspects of a good or service,
but rather see a product in Creating Offerings That Have Value
terms of its total value.
Marketing creates those goods and services 由at the company offers at a price to its customers or cli-
service-dominant logic era ents. That entire bundle consisting of the tangible good, the intangible service, and the price is the
The period from 1990 to the company's offering. When you compare one car to another, for example, you can evaluate each of
present in which some these dimensions- the tangible , the intangible, and the price- separately. However, you can't buy one
believe that the philosophy manufacturer's car, another manufacturer's service, and a third manufacturer's price when you actually
of service-dominant logic
make a choice. Together, the three make up a single firm's offer.
dominates the way fi rms
compete. Marketing people do not create the offering alone. For example, when the iPad was created,
Apple's engineers were also involved in its design. Apple's financial personnel had to review the costs
of producing the offering and provide input on how it should be priced. Apple' s operations group
。仔:ering
needed to evaluate the manufacturing requirements 出e iPad would need. The company' s logistics
The entire bundle of a managers had to evaluate the cost and timing of getting the offering to retailers and consumers. Apple' s
tangible good, intangible
dealers also likely provided input regarding the iPad' s service policies and warranty structure. Market-
service, and price that
composes what a company ing, however, has the biggest responsib过ity because it is marketing's responsibility to ensure that the
o忏ers to customers. new product delivers value.
Communicating Offerings
Communicating is a broad term in marketing that means describing the offering and its value to
Communicating
your potential and current customers, as well as learning from customers what it is they want and like.
In marketing , a broad term Sometimes communicating means educating potential customers about the value of an offering, and
meaning describing the
sometimes it means simply making customers aware of where they can find a product. Communicating
offering and its value to
potential customers, as well also means 由at customers get a chance to tell the company what they think.
as learning from customers. Today companies are finding that to be successful, they need a more interactive dialogue with their
customers. In other words , firms need to "engage" customers so they aren't just passive buyers of their
products. Instead,由ey want to make their customers "fans" of their products , talk about them on so-
cial media and elsewhere to one other. As part of the effo此, companies are also trying to tap into want
customers want and can be improved. For example, JCPenney has created consumer groups that talk
缸丑ong themselves on JCPenney-monitored websites. The company might post questions , send
samples, or engage in other activities designed to solicit feedback from customers.
Mobile devices like iPads and smartphones, make mobile marketing possible too. For example, if
consumers check-in at a shopping mall on Foursquare or Facebook, stores in the mall can send
coupons and other offers direct1y to their phones and tablets.
CHAPTER 1 WHAτIS MARKETING? 9
FIGURE 1.2
A BMW X5 such as this one costs much more than a Honda CRV, which is a similar type of vehicle. But why is the BMW worth more? What makes up
the complete offering that creates more value?
Companies use many forms of communication, including advertising on the Web or FIGURE 1.3
television, on billboards or in magazines, through product placements in movies , and Some social media sites , including Foursquare
through salespeople. Other forms of communication include attempting to have news and Facebook. allow consumers to make their
media cover the company's actions , which is part of public relations (PR) , pa此icipating locations known to businesses when they are
in special events such as the annual International Consumer Electronics Show in which nearby them. The firms can then send offers to
Apple and other companies introduce their newest gadgets, and sponsoring special the consumers' mobile phones or tablets for
immediate use.
events like the Susan G. Komen Race for the Cure.
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10 PRINCIPLES OF MARKETING VERSION 3.0
Delivering Offerings
Marketing can't just promise value, it also has to deliver value. Delivering an offering that has value is
delivering
much more than simply getting the product into the hands of the user; it is also making sure that the
In marketing , as in delivering user understands how to get the most out of the product and is taken care of if he or she requires ser-
value, a broad term that
飞rice later. Value is delivered in part through a company's supply chain. The supply chain includes a
means getting the product to
the consumer and making number of organizations and functions that mine, make, assemble, or deliver materials and products
sure that the user gets the from a manufacturer to consumers. The actual group of organizations can va巧 greatly from industry
most out of the product and to industry, and include wholesalers, transportation companies, and retailers. Logistics, or the actual
servlce. transpo此ation and storage of materials and products, is 由e primary component of supply chain man-
supply chain agement, but there are other aspects of supply chain management 也at we will discuss later.
AIIof the organizations that
participate in the production, Exchanging Offerings
promotion , and delivery of a
product or service from the In addition to creating an 0岳ring, communicating its benefits to consumers, and delivering the offer-
producer to the end ing, there is the actual transaction, or exchange, that has to occur. In most instances, we consider the
consu 付ler. exchange to be cash for products and services. However, if you were to fly to Louisville, Kentucky, for
由e Kentucky Derby, you could "pay" for your airline tickets using frequent孔ier miles. You could also
logistics use Hilton Honors points to "pay" for your hotel, and cash back points on your Discover card to pay
The physicalfiow of materials for meals. N one of these transactions would actually require cash. Other exchanges, such as informa-
in the supply chain. tion about your preferences ga出ered through surveys, might not involve cash.
When consumers acquire , consume (use) , and dispose of products and services, exchange occurs,
exchange including during the consumption phase. For example, via Apple's "One-to-One" program, you can
The transaction of value, pay a yearly fee in exchange for additional periodic product training sessions with an Apple profession-
usually economic, between a al. So each time a training session occurs, another transaction takes place. A transaction also occurs
buyer and seller. when you are finished with a product. For example, you might sell your old iPhone to a friend, trade in
a car, or ask the Salvation Army to pick up your old refrigerator.
Disposing of products has become an impo此ant ecological issue. Batteries and other components
of cell phones, computers, and high-tech appliances can be ve巧 harmful to the environment, and many
consumers don't know how to dispose of these products properly. Some companies, such as Office De-
pot, have created recycling centers to which customers can take their old electronics.
Apple has a Web page where consumers can fill out a form , print it, and ship it along with their old
cell phones and MP3 players to Apple. Apple then pulls out the materials 出at are recyclable and prop-
erly disposes of those that aren't. By lessening the hassle associated with disposing of products, 0伍ce
Depot and Apple add value to their product offerings.
The focus of marketing has changed from emphasizing the product, price, place , and promotion mix to one
that emphasizes creating , communicating , delivering , and exchang ing value. Value is a function of the be-
nefits an ind ividual receives and consists of the price the consumer paid and the time and effort the person
expended making the purchase.
R EVIEW UESTIONS
1. Describe how the various institutions and entities that engage in marketing use marketing t。
deliver value.
The short answer to the question of who does marketing is "everybody!" But that answer is a bit glib
and not too useful. Let's take a moment and consider how different types of organizations engage in
marketing.
interests in joining the army; another was a program aimed at encouraging spouses of military person-
nel to access counseling services when their spouse is serving overseas.
Similarly, the Environmental Protection Agency (EPA) runs a number of advertising campaigns
designed to promote environmentally friendly activities. One such campaign promoted the responsible
disposal of motor oil instead of simply pouring it on the ground or into a storm sewer.
social marketing There is a difference between these two 句pes of activities. When the army is promoting the be-
nefits of enlisting, it hopes young men and women will join 出e army. By contrast, when the EPA runs
Marketing conducted in an commercials about how to properly dispose of motor oil, it hopes to change people' s attitudes and be-
effort to achieve social
change. haviors so that social change occurs. Marketing conducted in an effort to achieve certain social 0问ect
ives can be done by government agencies, nonprofit institutions, religious organizations, and others
and is called social marketing. Con世ncing people 出at global warming is a real threat via advertise-
ments and commercials is social marketing, as is 由e example regarding 出e EPA' s campaign to pro-
mote responsible disposal of motor oil.
2.3 Individuals
If you create a résumé, are you using marketing to communicate the value you have to offer prospective
employers? If you sell yourself in an interview, is 由at marketing? When Taylor Swi丘 sends a tweet
about where she is and what she had for lunch, is that marketing? In other words , can individuals mar-
ket themselves and their ideas?
Some marketing professionals say ((no." But today, more marketing professionals are saying ((yes,"
and that self-promotion is a form of marketing. Ultimately it may not matter what you are marketing,
even if it' s yourself or another person. If, as a result of reading this book, you learn how to more effect-
ively create value , communicate and deliver it to the receiver, and get something in exchange for it,
then we've achieved our purpose.
Marketing can be thought of as a set of business practices that for-profit organizations, nonprofit organiza-
tions , government entities, and individuals can utilize. When a nonprofit organ ization engages in marketing
activities , this is called nonprofit marketing. Marketing conducted in an e忏órt to achieve ceπain social object-
ives is called social marketing.
R EVIEW UESTIONS
LEARNING OBJECTIVE
1. Explain the role marketing plays in individual 伽ms and society as a whole.
Of course, all business students should understand all functional areas of the firm , including mar-
keting. There is more to marketing, however, than simply understanding its role in the business. Mar-
keting has tremendous impact on society.
advertising mix. Many people who work in advertising spend all their time creating advertising
for electronic media, such as websites and their pop-up ads , podcasts, and the like.
• Product development. People in product development are responsible for identi马ringand
creating features 出at meet the needs of a firm' s customers. They 0丘en work with engineers or
other technical personnel to ensure that value is created.
• Direct marketing. Professionals in direct marketing communicate direct1y with customers about
a company's product offerings via channels such as email, chat lines, telephone, or direct mail.
• Digital marketing. Digital marketing professionals combine advertising, direct marketing, and
other areas of marketing to communicate direct1y with customers via social media, the Web , and
mobile media (including texts). They also work with statisticians in order to determine which
consumers receive which message and with IT professionals to create the right look and feel of
digital media.
• Event marketing. Some marketing personnel plan special events, orchestrating face-to-face
conversations with potential and current customers in a special setting.
• Nonprofit marketing. Nonprofit marketers 0丘en don't get to do eveη咋hing listed previously as
nonprofits typically have smaller budgets. But their work is always very impo此ant as they try to
change behaviors without having a product to sell.
New graduates like Carly Sedberry are finding A career in marketing can begin in a number of different ways. Entry-level positions for
work in the marketing 币eld to be rewarding. new college graduates are available in many of the positions previously mentioned.
Carly Sedber巧, a 2014 graduate of the U niversity of Missouri in Columbia, initially
majored in broadcast journalism, but found herself yearning for more opportunities to
satis马r her creative side and work with creative people. 旬, Sedberry switched her m司 or
to strategic communication. Today she's an account executive for the Dallas advertising
agency Slingshot. How does she like her job? "As an account executive, I am a part of
the process from the beginning, so seeing how an amazing idea can come to life is
something I w山 never get tired of," she says. "Which brings me to the most rewarding
thing about my job: the end product. When my client is happy about the work we did
and my team is proud of the work we did, nothing is better than 也at."
A growing number of CEOs are people with marketing backgrounds. Some le-
gendary CEOs like Ross Perot, the founder of Electronic Data Systems, and Mary Kay
Photo courtesy of Kevin J. Hamm Ash, the founder of Mary Kay Cosmetics, got their sta此 in marketing. More recent1y ,
Mark Hurd, the CEO of Oracle, and Jeffrey Immelt, the CEO of GE , are showing how
marketing careers can lead to the highest pinnacles of an organization.
Concerns such as these are persuading more companies to take a societal marketing orienta-
societal marketing
tion, which holds that a company' s marketing efforts should not be aimed only at delivering products 。rientation
to customers and profits to shareholders but ultimately improve the well-being of society and the world
A marketing orientation that
in general. states that in addition to
The outdoor-clothing maker Patagonia has a societal marketing orientation. To draw attention to selling products to customers
the problem of consumerism, Patagonia actually ran ads showing one of its jackets with a headline that and delivering profits to
read "Don't Buy This Jacket." The company was tη心19 to actually persuade people not to consume shareholders, a company's
products- even its own products- if 出ey don't need them. The ad campaign received a lot of atten- marketing e忏órts shou Id be
tion, in part because people were who saw it wondered why a company would want to not sell its aimed at improving the
well-being of society and the
products. Ironically, instead of Patagonia' s sales falling, 也ey climbed as a result of the ad campaign. [5] world in general.
FIGURE 1.4
Why did Patagonia run this ad? Because it cares about the environmen t. The company knows that if the
environment gets polluted , you won't want to spend much time outdoors or buy a lot ofits outdoor-oriented
clothing.
Part of the reason Patagonia's sales climbed is 出at people are looking more favorably on companies
that have a societal marketing orientation. The Fair Trade Certifi.cation movement emerged in re-
sponse to people wanting to do business with firms that consider the good of society when making and
selling products. To have their products Fair Trade Certifi.ed firms have to meet certain criteria. The
criteria include, among other things , ensuring that the factories and production methods used to pro-
duce their products meet certain environmental goals, that the facilities are safe, and 由at people who
work in them are paid fair wages and provided with good working conditions.
By facilitating transactions, marketing delivers value to both consumers and firms. At the broader level, this
process creates jobs and improves the quality of life in a society. Marketing can be costly, so firms need to hire
good people to manage their marketing activities. Being responsible for both making money for your com-
pany and delivering satisfaction to your customers makes marketing a great career. Marketing has its critics
though. False and deceptive advertising has long been a problem people are concerned abou t. Other people
bel ieve marketing simply increases the price people have to pay for products. Stil l other people are concerned
marketing leads to consumerism , which is the tendency of consumers to want more and more products and
services they don't really need. For reasons such as these, more companies today are pursuing a societal mar-
keting orientation. In addition to del ivering products to their customers and profits to their shareholders , these
companies actively strive to improve the well-being of society and the world in genera l.
16 PRINCIPLES OF MARKETING VERSION 3.0
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