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LAMB HAIR McDANIEL BOIVIN GAUDET SHEARER FOURTH CANADIAN EDITION
MKTG
MK
ACTIVATE
MKTG
4CE
TODAY!
LAMB HAIR McDANIEL BOIVIN GAUDET SHEARER

1 PRINCIPLES
Open the Access Card OF MARKETING
TG
included with this text.
2
Follow the steps on the card.
3
Study.
If an Access Card is not included with this text, you

can purchase instant access at NELSONbrain.com.
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ISBN-13: 978-0-17-672368-2
ISBN-10: 0-17-672368-4
9 780176 723682
3 Strategic Planning for
Competitive Advantage 34
4-3b Economic and Technological
Development 53
4-3c The Global Economy 54
4-3d Political Structure and Actions 54
3-1 The Importance of Strategic Planning 34
4-3e Demographic Makeup 59
3-2 Corporate Planning—Defining the Business
Mission 36 4-3f Natural Resources 59
3-3 Strategic Directions—Designing the Business 4-4 Global Marketing by the Individual Firm 60
Portfolio 37 4-4a Exporting 60
3-3a Conducting a SWOT Analysis 37 4-4b Licensing and Franchising 61
3-3b Strategic Alternatives—Linking SWOT to 4-4c Contract Manufacturing 61
Growth Strategies 38 4-4d Joint Venture 61
3-4 Business Planning for Competitive Advantage 39 4-4e Direct Investment 62
3-4a Competitive Advantage 39 4-5 The Global Marketing Mix 62
3-4b Cost Competitive Advantage 39 4-5a Product Decisions 62
3-4c Product Differentiation Competitive 4-5b Promotion Adaptation 63
Advantage 40 4-5c Place (Distribution) 64
3-4d Niche Competitive Advantage 41 4-5d Pricing 64
3-4e Building Sustainable Competitive Advantage 41 4-6 The Impact of the Internet 65
3-5 Marketing Planning—Setting the Objectives and 4-6a Social Media and Global Marketing 66
Identifying the Target Market 42 Side Launch Brewing Company Continuing Case:
3-5a Setting Marketing Plan Objectives 42 The Globalized Beer Drinker 67
3-5b Target Market Strategy 42

3-6 The Marketing Mix 43
Part 1 Case: From Analysis to
3-6a Product Strategies 44
Action 69
3-6b Pricing Strategies 44
3-6c Place (Distribution) Strategies 44
3-6d Promotion Strategies 44 Part 2
3-7 Marketing Plan Implementation, Evaluation, and
Control 44
Analyzing Marketing
3-7a Implementation 44 Opportunities
3-7b Evaluation and Control 45
3-8 Effective Strategic Planning 45
Kaspars Grinvalds/Shutterstock.com
Side Launch Brewing Company Continuing Case:

Born to Grow 46
4 Developing
Vision 48
a Global
4-1 Rewards of Global Marketing 48

4-1a Importance of Global Marketing to Canada 50
4-2 Multinational Firms 51
4-2a Global Marketing Standardization 52 5 Marketing Research 72
4-3 External Environment Facing Global 5-1 The Role of Marketing Research 72
Marketers 52 5-2 The Marketing Research Process 73
4-3a Culture 52 5-2a Step 1: Identify the Problem 73
NEL CONTENTS v
Copyright 2019 Nelson Education Ltd. 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). Nelson Education reserves the right to remove additional content at any time if subsequent rights restrictions require it.
5-2b Step 2: Design the Research 74 6-6 Individual Influences on Consumer Buying
5-2c Step 3: Collect the Data 75 Decisions 106
5-2d Step 4: Analyze the Data 85 6-6a Gender 106
5-2e Step 5: Present the Report 85 6-6b Age and Family Life-Cycle Stage 106
5-2f Step 6: Provide Follow-Up 86 6-6c Personality, Self-Concept, and

Lifestyle 107
5-3 The Impact of Technology on Marketing
Research 86 6-7 Psychological Influences on Consumer Buying
Decisions 108
5-3a Online Surveys 87
6-7a Perception 108
5-3b Online Research Panels 87
6-7b Motivation 109
5-3c Online Focus Groups 88
6-7c Learning 110
5-3d Mobile Marketing Research 88
6-7d Beliefs and Attitudes 111
5-3e Social Media Marketing Research 89
6-7e Consumer Behaviour Elements—Working
5-3f The Rise of Big Data 89 Together 112
5-4 When to Conduct Marketing Research 90 Side Launch Brewing Company Continuing Case:
Side Launch Brewing Company Continuing Case: Looks Matter 113
Data in Absentia 92
6 Consumer Decision
7 Business Marketing 116
7-1 What Is Business Marketing? 116
Making 94 7-2 Business versus Consumer Marketing 117
6-1 The Importance of Understanding Consumer 7-3 The Network and Relationships Approach to
Behaviour 94 Business Marketing 118
6-2 The Consumer Decision-Making Process 95 7-3a Relationships in Business Marketing 118
6-2a Need Recognition 96 7-3b Interaction in Business Marketing 118
6-2b Information Search 96 7-3c Networks in Business Marketing 119
6-2c Evaluation of Alternatives and Purchase 97 7-4 Fundamental Aspects of Business Marketing 121
6-2d Postpurchase Behaviour 98 7-4a Types of Demand 121
6-3 Types of Consumer Buying Decisions and Consumer 7-4b Number of Customers 122
Involvement 99
7-4c Location of Buyers 122
6-3a Factors Determining the Level of Consumer
Involvement 99 7-4d Type of Negotiations 122
6-3b Marketing Implications of Involvement 100 7-4e Use of Reciprocity 123
6-3c Factors Influencing Consumer Buying 7-4f Use of Leasing 123

Decisions 101 7-4g Types of Business Products 123
6-4 Cultural Influences on Consumer Buying 7-5 Classifying Business Customers 124
Decisions 101 7-5a Major Categories of Business
6-4a Culture and Values 101 Customers 124
6-4b Understanding Culture Differences 102 7-5b Classification by Industry 126
6-4c Subculture 103 7-6 Business Buying Behaviour 127
6-4d Social Class 103 7-6a Buying Centres 127
6-5 Social Influences on Consumer Buying Decisions 104 7-6b Buying Situations 127
6-5a Reference Groups 104 7-6c Evaluative Criteria for Business Buyers 129
6-5b Opinion Leaders 105 7-7 Business Marketing Online 129
6-5c Family 105 7-7a Trends in B2B Online Marketing 130
vi CONTENTS NEL
Side Launch Brewing Company Continuing Case: 9-4c Capture Customer Data 159
The Forbidden Fruit of Craft Brewers 132 9-4d Store and Integrate Customer Data 161
8 Segmenting,
9-4e Identifying the Best Customers 162
Targeting, and 9-5 The CRM Cycle—Stage 3 (Customer
Positioning 134 Feedback) 164
9-5a Leverage Customer Information 164
8-1 Market Segmentation 134
9-6 Privacy Concerns and CRM 168
8-2 The Importance of Market Segmentation 135
9-7 The Future of CRM 169
8-3 Bases for Segmenting Consumer Markets 135
8-3a Geographic Segmentation 136
CSR in on Board 170
8-3b Demographic Segmentation 136
8-3c Psychographic Segmentation 140
Part 2 Case: Marketing Concept
8-3d Benefit Segmentation 141 Review 172
8-3e Usage-Rate Segmentation 141
8-4 Criteria for Successful Segmentation 142
8-5 Bases for Segmenting Business Markets
8-5a Company Characteristics 142
142
Part 3
8-5b Buying Processes 143 Product Decisions
8-6 Steps in Segmenting a Market 143
8-7 Strategies for Selecting Target Markets 144
8-7a Undifferentiated Targeting 144
8-7b Concentrated Targeting 145
8-7c Multisegment Targeting 145
8-7d One-to-One Marketing 146
Courtesy of Tylko
8-8 Positioning 147

8-8a Perceptual Mapping 148
8-8b Positioning Bases 148
8-8c Repositioning 149
8-8d Developing a Positioning Statement 149
Side Launch Brewing Company Continuing Case: 10 Product Concepts 176
Hipsterville Calling 150 10-1 What Is a Product? 176
10-2 Types of Consumer Products 177
9 Customer Relationship
Management (CRM) 152
10-2a Convenience Products 178
10-2b Shopping Products 178
9-1 What Is Customer Relationship Management? 152 10-2c Specialty Products 179
9-1a The Other CRM 153 10-2d Unsought Products 179
9-2 The CRM Cycle 154 10-3 Product Items, Lines, and Mixes 179
9-3 The CRM Cycle—Stage 1 (Marketing Research) 155 10-3a Adjustments to Product Items, Lines,
and Mixes 180
9-4 The CRM Cycle—Stage 2 (Business
Development) 155 10-4 Branding 182
9-4a Identify Customer Relationships 157 10-4a Benefits of Branding 183
9-4b Understand Interactions of the Current 10-4b Branding Strategies 183
Customer Base 158 10-4c Trademarks 186
NEL CONTENTS vii
10-5 Packaging 187 12-2c Inconsistency 214
10-5a Packaging Functions 187 12-2d Inventory 214
10-5b Labelling 188 12-3 Service Quality 215
10-5c Universal Product Codes (UPCs) 188 12-3a The Gap Model of Service Quality 215
10-6 Global Issues in Branding and Packaging 189 12-4 Marketing Mixes for Services 217
10-7 Product Warranties 190 12-4a Product (Service) Strategy 218
Side Launch Brewing Company Continuing Case: 12-4b Process Strategy 219
The Art of Craft 191 12-4c People Strategy 219
11 Developing and Managing

Products 194
12-4d Place (Distribution) Strategy
12-4e Physical Evidence Strategy 220
219
12-4f Promotion Strategy 220

11-1 The Importance of New Products 194 12-4g Price Strategy 221
11-1a Categories of New Products 195 12-4h Productivity Strategy 221
11-2 The New-Product Development Process 196 12-5 Relationship Marketing in Services 221
11-2a New-Product Strategy 197 12-6 Internal Marketing in Service Firms 222
11-2b Idea Generation 197 12-7 Nonprofit Organization Marketing 223
11-2c Idea Screening 199 12-7a What Is Nonprofit Organization
11-2d Business Analysis 199 Marketing? 223
11-2e Development 199 12-7b Unique Aspects of Nonprofit Organization
Marketing Strategies 224
11-2f Test Marketing 201
11-2g Commercialization 202
Take Care of Your Back Yard 227
11-3 Global Issues in New-Product Development 204
11-4 The Spread of New Products 204 Part 3 Case: Product Decisions 229
11-4a Diffusion of Innovation 204
11-4b Product Characteristics and the Rate
of Adoption 205
11-4c Marketing Implications of the Adoption
Part 4
Process 206
11-5 Product Life Cycles 206
Pricing Decisions
11-5a Introductory Stage 207
11-5b Growth Stage 208
Torontonian/Alamy Stock Photo
11-5c Maturity Stage 208

11-5d Decline Stage 208
11-5e Implications for Marketing Management 209
Balancing a Beer Portfolio 210
12 Services and Nonprofit

Organization Marketing
12-1 The Importance of Services 212
212 13 Setting the Right Price 232
13-1 The Importance of Price 232
12-2 How Services Differ from Goods 213 13-1a What Is Price? 232
12-2a Intangibility 213 13-1b The Importance of Price to Marketing
12-2b Inseparability 214 Managers 232
viii CONTENTS NEL
13-2 The Four-Step Pricing Process 233 14-2 Channel Intermediaries and their Functions 259
13-2a Step 1—Establish Pricing Objectives 234 14-2a Channel Functions Performed
13-2b Step 2—Estimate Demand, Costs, and Profits 236 by Intermediaries 259
13-2c Step 3—Choose a Price Strategy 239 14-3 Types of Marketing Channels 260
13-2d Step 4—Use a Price Tactic 241 14-3a Channels for Consumer Products 260
13-3 The Legality and Ethics of Setting a Price 247 14-3b Channels for Business and Industrial
Products 261
13-3a Bait Pricing 247
14-3c Alternative Channel Arrangements 262
13-3b Deceptive Pricing 247
14-4 Making Channel Strategy Decisions 263
13-3c Price Fixing 247
14-4a Factors Affecting Channel Choice 263
13-3d Predatory Pricing 248
14-4b Levels of Distribution Intensity 264
13-3e Resale Price Maintenance 248
14-5 Handling Channel Relationships 265
13-3f Price Discrimination 248
14-5a Channel Power, Control, and Leadership 265
Side Launch Brewing Company Continuing Case: An
Accessible Price 249 14-5b Channel Conflict 266
14-5c Channel Partnering 266
14-6 Managing the Supply Chain 267
Part 4 Case: Pricing Decisions 251
14-6a Benefits of Supply Chain Management 267
14-6b Managing Logistics in the Supply Chain 268
Part 5 14-6c Sourcing and Procurement

14-6d Production Scheduling 268
268
Distributing 14-6e Order Processing 269
Decisions
14-6f Inventory Control 270
14-7 Distribution Challenges in World Markets 270
14-7a Developing Global Marketing
Channels 270
14-7b Global Logistics and Supply Chain
Management 271
monkeybusinessimages/iStock/Thinkstock

Getting Beer into Hands 272
15 Retailing 274
15-1 The Role of Retailing 274
15-2 Classification of Retail Operations 275
15-2a Ownership 276
15-2b Level of Service 276
14 Marketing Channels
and Supply Chain
15-2c Product Assortment
15-2d Price 276
276
Management 254 15-3 Major Types of Retail Operations 276
14-1 The Nature of Marketing Channels 254 15-4 The Rise of Nonstore Retailing 280
14-1a A Plea for Place—The Forgotten P 254 15-5 Franchising 282
14-1b The Marketing Channel and Intermediaries 15-6 Retail Marketing Strategy 283
Defined 256 15-6a Defining a Target Market 283
14-1c How Intermediaries Help the Supply Chain 256 15-6b Choosing the Retailing Mix 284
NEL CONTENTS ix
15-7 Addressing Retail Product/Service Failures 288 16-4g The Communication Process and the
15-8 Retailer and Retail Consumer Trends and Promotional Mix 305
Advancements 288 16-5 Promotional Goals and the AIDA Concept 307
Side Launch Brewing Company Continuing Case: 16-5a AIDA and the Promotional Mix 308
Dealing in a Duopoly 291 16-6 Integrated Marketing Communications 309
16-7 Factors Affecting the Promotional Mix 310
Part 5 Case: Distribution 16-7a Nature of the Product 310
Decisions 293 16-7b Stage in the Product Life Cycle 311
16-7c Target Market Characteristics 312
Part 6 16-7d Type of Buying Decision 312

16-7e Available Funds 312
Promotion Decisions 16-7f Push and Pull Strategies 313

On-Message Is More Than Words 314
17 Advertising, Public Relations,

and Direct Response 316
Lightspring/Shutterstock.com
17-1 What Is Advertising? 316

17-1a Advertising and Market Share 317
17-1b The Effects of Advertising on
Consumers 317
17-2 Major Types of Advertising 318
17-2a Institutional Advertising 318
17-2b Product Advertising 319
16 Marketing
Communications 296
17-3 Creative Decisions in Advertising 320
17-3a Identifying Product Benefits 320
17-3b Developing and Evaluating Advertising
16-1 The Role of Promotion in the Marketing Mix 296 Appeals 320
16-2 Marketing Communication 297 17-3c Executing the Message 321
16-2a The Communication Process 298 17-3d Postcampaign Evaluation 322
16-3 The Goals of Promotion 300 17-4 Media Decisions in Advertising 323
16-3a Informing 301 17-4a Media Types 323
16-3b Persuading 301 17-4b Media Selection Considerations 327
16-3c Reminding 302 17-4c Media Scheduling 329
16-3d Connecting 302 17-4d Media Buying 329
16-4 The Promotional Mix 302 17-5 Public Relations 330
16-4a Advertising 302 17-5a Major Public Relations Tools 330
16-4b Publicity 303 17-5b Managing Unfavourable Publicity 333
16-4c Sales Promotion 303 17-6 Direct-Response Communication 333
16-4d Personal Selling 304 17-6a The Tools of Direct-Response
16-4e Direct-Response Communication 304 Communication 333
16-4f Online Marketing, Content Marketing, and Side Launch Brewing Company Continuing Case:
Social Media 305 Reaching the Right Audience 335
x CONTENTS NEL
18 Sales Promotion and Personal
Selling 338
19-2 Creating and Leveraging a Social Media
Campaign 357
19-2a The Listening System 359
18-1 What Is Sales Promotion? 338 19-2b Social Media Strategies 360
18-1a The Sales Promotion Target 339 19-3 Evaluation and Measurement of Social Media 360
18-1b The Objectives of Sales Promotion 339 19-4 Consumer Behaviour on Social Media 361
18-2 Tools for Consumer Sales Promotion 340 19-5 Social Media Tools: Consumer- and Corporate-
Generated Content 362
18-2a Coupons 341
19-5a Blogs 363
18-2b Rebates 341
19-5b Microblogs 363
18-2c Premiums 341
19-5c Social Networks 364
18-2d Loyalty Marketing Programs 342
19-5d Media-Sharing Sites 364
18-2e Contests and Sweepstakes 343
19-5e Social News Sites 365
18-2f Sampling 343
19-5f Location-Based Social Networking Sites 365
18-2g Shopper Marketing 343
19-5g Review Sites 366
18-3 Tools for Trade Sales Promotion 344
19-5h Virtual Worlds and Online Gaming 366
18-4 Personal Selling 344
19-6 Social Media and Mobile Technology 366
18-5 Relationship Selling 345
19-6a Mobile and Smartphone Technology 367
18-6 The Selling Process 346
19-6b Applications and Widgets 367
18-6a Some Key Issues in Each Step of the Selling
Process 347 19-7 The Social Media Plan 368
18-6b Personal Selling in a Global Marketplace 350 19-7a The Changing World of Social Media 368
18-6c The Impact of Technology on Personal Side Launch Brewing Company Continuing Case:
Selling 350 Engagement by Listening 370
From Hard Work Come Good Things 352
Part 6 Case: Promotion
Decisions 372
19 Social Media Strategies 354 Glossary
Endnotes 389
375
19-1 What Is Social Media’s Role in Integrated Marketing
Communications? 354 Index 397
19-1a How Canadians Use Social Media 356 Tear-out cards
NEL CONTENTS xi
1 An Introduction
to Marketing
LEARNING Outcomes
1-1 Define marketing
1-2 Describe the evolution of marketing
My Life Graphic/Shutterstock.com
1-3 Define key marketing terms
1-4 Explain why marketing matters
“Marketing is dead.”
—Kevin Roberts, CEO of Saatchi & Saatchi (top advertising agency)1
1-1 What Is Marketing? marketing to identify a customer to create revenues and

profit, there is no need for an accounting department or
manufacturing facility.
Marketing is a word that elicits much opinion and dis-
So it has become a marketer’s job to understand the
cussion. It is often defined by what it is not rather than
customer, and in doing so, transition marketing from
by what it actually is. Marketing is one of the most mis-
something that used to be considered an afterthought
used words in business today. It is often reduced to a few
to a key component in an organization. Being able to
words that are attached to the activities of marketing:
bring an external customer-based approach, marketing
sales, advertising, and promotion.
can inform other parts of the organization to focus on
Sometimes marketing is seemingly written off
the needs of customers when undertaking any action
entirely, as can be seen by the quote at start of this
or decision. Marketing is far from dead and, in fact, has
chapter from Kevin Roberts of Saatchi & Saatchi, a
never been so alive.
global communications and advertising company. Could
this be true? Do we not need to worry about marketing
anymore? Far from it. Without marketing, there is
1-1a What Is Marketing?
no customer. Most departments in a firm—whether Marketing is about understanding the needs of the
accounting or finance or customer. No other aspect of business has this focus.
operations—are internally Marketing helps to shape the products and services of a
marketing the activities that focused on achieving goals firm, based on an understanding of what the customer is
develop an offering in order to
satisfy a customer need related to their functional looking for. Marketing is about engaging in a conversa-
area. Marketing’s sole tion with that customer and guiding the delivery of what
need a state of being where we
focus is on the customer is required to satisfy those needs.
desire something that we do not
possess but yearn to acquire and understanding what The goal of marketing is summarized nicely by the
makes them tick. Without marketing concept. At its core, the marketing concept
2 PART 1: Marketing—Let’s Get Started NEL
is about offering the customer what they are looking Kevin Roberts was in fact not speaking of the demise
for. It includes the following: of marketing in the provocative quote, but rather its
●● Focusing on customer wants and needs so that the rebirth. He implored marketing practitioners to change
organization can distinguish its offerings from those the way in which marketing is applied. He tasked his
of its competitors. audience with seeing marketing differently and moving
marketing from “interruption to interaction.”2
●● Integrating all the organization’s activities, including Marketing is becoming a conversation with the
production, to satisfy customers’ wants. customer rather than a distraction. Companies are
●● Achieving long-term goals for the organization by finding innovative ways in which to lead this conversation,
satisfying customers’ wants and needs legally and and with access to more tools (Instagram, SnapChat),
responsibly. consumers are now, more than ever, able to talk back.
Source: DILBERT © 2010 Scott Adams. Used By permission of ANDREWS MCMEEL SYNDICATION. All rights reserved.
NEL CHAPTER 1: An Introduction to Marketing 3
Marketing is not dead. Marketing is constantly
changing, along with the customer it continually strives
to better understand. We are heading into a new era of
marketing—one that is reflective of the digital, online,
and engaged world around us. Without marketing, there
is no understanding this world.
1-2 The Evolution of Marketing
Stocksearch/Alamy Stock Photo

The misconceptions surrounding marketing come from
the evolution of how marketing has been used in firms
for more than a century. In their seminal article in the
Journal of Public Policy and Marketing, renowned
researchers William Wilkie and Elizabeth Moore
described how today’s marketing has resulted from
many shifts in both the field of marketing and society. Henry Ford of the Ford Motor Company
The authors note that the past century of marketing once stated, “Any customer can have a
thought “has experienced periodic shifts in dominance car painted any colour that he wants, so
of prevailing modes of thinking.”3 Numerous terms and long as it is black.” Ford was describing the
ideologies are used to describe these shifts in thinking, line of Model T cars that were available to
and below are a few of the orientations in marketing that the customer. His perspective is a great
have been part of these periodic shifts. It is important example of the production orientation way
to investigate some prior perspectives on marketing to of thinking.
provide a better understanding of how marketing is per-
ceived today and why there is so much confusion around
what truly constitutes marketing.
no longer simply produce a product and expect willing
customers to be waiting to buy whatever they are
1-2a The Production Orientation
selling. Sales techniques were established and evolved
The production orientation focuses on marketing as to convince consumers to buy, giving consumers choice
a messenger. Marketing is seen as a way to let customers and ensuring companies focused on creating market
know about products and assumes that those customers share and building sales volume in a highly competitive
will beat a path to the producer’s door. environment.
This perspective can best be described as the “field Sales pitches are encouraged under this orient-
of dreams” orientation, thanks to the movie of the same ation, in which savvy salespeople use their under-
name in which a character states, “If you build it, they will standing of human nature to convince customers to
come.” The production orientation focuses on products purchase their products. Answer the door at home to a
because of a lack of product options in the marketplace. company using the sales orientation, and you may see a
Companies are free to create whatever products they well-dressed person attempting to sell vacuum cleaners
deem appropriate, and or encyclopedias.
customers have to accept The need to coax the customer is paramount in the
production orientation a
focus on manufacturing and
what is offered. sales orientation. Behind this belief, companies place
production quantity in which resources, specifically sales materials (brochures, print
customers are meant to choose ads, etc.) that are used in great quantities to encourage
based on what is most abundantly
1-2b The Sales
sales of their products. Companies respond to a
available Orientation marketplace with more competition by overwhelming
sales orientation hard The sales orientation customers with promotional activities that focus on the
selling to the customer, who has
is highlighted by the hard sell.
greater choice thanks to more
competition in the marketplace increased power of cus- Today, some companies still believe in the import-
tomer choice. Companies ance of hard selling to customers. Companies are still
linking the needs of customers with the competencies of
an organization seeking to meet those needs.
In bringing the elements of the marketing company
orientation together, it becomes clear that marketing
and persuasion are intermixed. Marketing professionals
focus on how to be shrewder about convincing cus-
tomers to buy. Emotions are tied to basic-need products,
higher-order benefits are attached to everyday products,
and the customer is as much of a target of focus as the
Old Visuals/Alamy Stock Photo
product.
However, this stage in the marketing orientation
process is not devoid of any counteraction from the
customer. Consumers are becoming shrewd them-
selves, as they begin to ask for more from the com-
panies providing them products and services. While
consumers are focused on aspects of value and ser-
using aggressive sales tactics to entice customers, which vice, they begin to seek out new ways to satisfy their
is why consumers associate marketing with selling and needs. As seen by the prominence of the sharing phe-
why marketing is often considered intrusive. nomenon, through companies like Uber and Airbnb,
The majority of companies and marketers do not consumers flock towards new offerings that satisfy
subscribe to a marketing approach heavy only on selling. their needs in ways not considered before. Companies
While sales makes up an important part of the marketing can no linger simply focus on persuasion to a passive
offering, it is only one part of the promotional tools customer. The customer begins to demand more from
available to today’s marketer. Management thinker and the companies that serve them, both for them and for
innovator Peter Drucker put it best: “There will always, society at large.
one can assume, be a need for some selling. But the aim
of marketing is to make selling superfluous. The aim of 1-2d Societal Marketing Orientation
marketing is to know and understand the customer so
It is apparent when we distill the marketing concept
well that the product or service fits him and sells itself.
down to a basic idea (give customers what they want) that
Ideally, marketing should result in a customer who is
its pursuit can have potentially unsavoury consequences
ready to buy.”4
(what if what they want isn’t good for them?). Dealing
with this challenge created the societal marketing
1-2c The Marketing Company Orientation orientation, where looking at not only what the cus-
The marketing company orientation is highlighted tomer wants but also what society wants becomes a dual
by the coordination of marketing activities—advertising, emphasis.
sales, and public relations—into one department in an Societal marketing examines the longer-term
organization. Much of how a marketing department is impacts on the customer and the environment when
organized is based on the need to include those ele- customers seek to satisfy
ments. The job of this department is to better under- needs. New movements, marketing company
stand the customer rather than just trying to sell to them. such as recycling and waste orientation a strong
As society evolves and consumers become more emphasis on the marketing
reduction, sought out com-
concept and development of a
sophisticated, products and services previously seen as panies’ solutions to deal more comprehensive approach to
exclusive and out of reach are now seen as possible with greater consumerism. understanding the customer
purchases. In this orientation, customers are grouped Health issues relating to
societal marketing
into market segments, with marketing professionals product use are at the fore- orientation looking not only
tasked with understanding their customer before front of this orientation, at the customer but expanding
making their move. with greater awareness of marketing efforts to include aspects
A term that is important in many orientations, and from the external environment
the safety and dietary issues
that go beyond a firm’s customers,
very much so in a marketing company orientation, is the attached to products. This suppliers, and competitors
marketing concept. The marketing concept focuses on orientation brings a greater
free replacement toy, yogurt tube, or apple slices as a
replacement—no french fries or Chicken McNuggets
to solve this problem.
1-2e Relationship Marketing Orientation

Today, the relationship marketing orientation is about
developing a real and sustainable relationship with the
EXImages/Alamy Stock Photo

customer. As Kevin Roberts (he of the “marketing is dead”
proclamation) said, marketing has to go from “interrup-
tion to interaction.”6 This phrase means that marketing
can no longer look for a one-off sale; marketing has to
focus on taking steps to truly engage with the customer.
Engagement is the focus of this orientation, aided by the
government involvement in consumer needs and wants. use of two essential customer-based strategies: customer
Thanks to better customer education and extremely strict satisfaction and relationship marketing.
promotional restrictions, sales of products like cigarettes
Customer Satisfaction Customer satis-
have dropped drastically. Industries and companies are
faction is the customer’s evaluation of a good or ser-
placing an emphasis on self-regulation before more strict
vice in terms of whether that good or service has met
government involvement created bottom-line and public
the customer’s needs and expectations. Failure to meet
relations issues.
a customer’s needs and expectations results in the cus-
A signpost for change in societal marketing was the
tomer’s dissatisfaction with the good or service.7 Keep-
Happy Meal. McDonald’s signature meal has long been
ing current customers satisfied is just as important as
a target for critics who argue that the fast-food giant has
attracting new customers—and a lot less expensive.
used it to attract young customers. In 2011, the Happy
One study showed that reducing customer attrition by
Meal began to offer more nutritious options, such as
just 5 to 10 percent could increase annual profits by
yogurt and a “mini” size of fries (31 grams). In 2012,
as much as 75 percent.8 A 2 percent increase in cus-
apple slices were offered as a replacement for french
tomer retention has the same effect on profits as cut-
fries. In 2013, McDonald’s announced it would provide
ting costs by 10 percent.9 Firms that have a reputation
health information on the Happy Meal boxes that touts
for delivering high levels of customer satisfaction tend
healthier food choices.
to do things differently from their competitors. When
In 2016, McDonald’s offered a rather unusual toy
top management is obsessed with customer satisfaction,
in its Happy Meals. In conjunction with the 2016 Rio
employees throughout the organization are more likely
Olympics, McDonald’s offered a “Step-iT,” a fitness
to understand the link between how they perform their
tracker for kids. The device was in the form of a watch
job and the satisfaction of customers. The culture of
that children could wear to monitor the steps they take
such an organization focuses on delighting customers
each day. This offer was clearly aimed at responding
rather than on selling products.
to concerns over the types of toys on offer at the food
retailer. A recent study by the Robert John Wood Relationship Marketing Relationship
Foundation showed that McDonald’s most often tar- marketing is a strategy that focuses on keeping and
geted children with toys and movie tie-ins, rather than improving relationships with current customers. This
food. The Step-iT was an attempt to allay these con- strategy assumes that many consumers and business cus-
cerns; however, the resulting fallout from the Step-iT tomers prefer to keep an ongoing relationship with one
distracted from any focus organization rather than to switch continually among
customer satisfaction on the health of this new providers in their search for value. Disney is a good ex-
customers’ evaluation of a good or toy. The plastic wrist- ample of an organization focused on building long-term
service in terms of whether it has band on the Step-iT was relationships with its customers. Disney managers un-
met their needs and expectations
found to cause rashes derstand that their company creates products and expe-
relationship marking a and other skin irritations. riences that become an important part of people’s lives
strategy that focuses on keeping
This forced McDonald’s and memories. This understanding has made Disney a
and improving relationships with
current customers to recall 3.9 million units.5 leader in doing “right by the customer”—starting with
The company offered a the front-line cast members who interact directly with
the public and encompassing all employees in all de-
partments, who assess each decision based on how it
will affect the customers and their relationship with the
CONDITIONS OF EXCHANGE
Disney brand.
An exchange can take place only if the following
Customer Relationship Management five conditions exist:
An important result of the relationship marketing ori- 1. At least two parties are involved.
entation has been the concept of customer relation-
2. Each party has something that may be of
ship management (CRM). While born as a data-mining
value to the other party.
system to help marketers understand each customer
on an individual level, CRM best serves the ultimate 3. Each party is capable of communication and
goal of meeting the needs of customers and building delivery.
relationships. 4. Each party is free to accept or reject the
A key aspect of relationships—and any CRM exchange offer.
system—is trust. To build trust, companies have to be
5. Each party believes it is appropriate or
willing to share their stories with customers and listen
desirable to deal with the other party.
to and act on what customers desire. Doing this has not
Source: Philip Kotler, Marketing Management, 11th ed. (Upper Saddle River, NJ:
always been possible when companies use data mining Prentice-Hall, 2003), 12.
from various sources, but it is possible with social and
mobile marketing.
Creating a 24/7/365 relationship with customers is
now possible, if companies are willing to plug in to the the goods and services we want. Exchange does not,
online world, an arena not only for exchange but also for however, require money. Two people may barter or trade
true communication. such items as baseball cards or oil paintings.
In the days of Henry Ford, door-to-door salesmen,
Customer Value Customer value is the rela-
and real-life Mad Men, there was never the opportunity
tionship between benefits and the sacrifice necessary to
to understand and target individual customers. However,
obtain those benefits. Customer value is not simply a mat-
this goal is now possible. Just head to a popular social
ter of high quality. A high-quality product that is available
media site, and you will find an interactive world with
only at a high price will not be perceived as good value,
endless potential.
nor will bare-bones service or low-quality goods selling
An important chapter in this text (Chapter 9) is all
for a low price. Instead, customers value goods and ser-
about CRM and will pull all the pieces together and
vices that are of the quality they expect and are sold at
show the possibility of truly evolving from “interruption
prices they are willing to pay. Value can be used to sell
to interaction.”
both a Mercedes-Benz and a $3 frozen dinner.
Market Segments Market segments are groups
1-3 Key Marketing Terms of individuals, families, or companies that are placed
together because it is believed that they share similar
Now that we have seen the past and given an indication needs. As we saw in the discussion of the evolution of
of the future of marketing, it is important to cover some marketing earlier in this chapter, segmentation has gone
of the fundamental aspects of marketing that every from not being done at all to being done at an almost
student of marketing should know. These ideas will individual level. Market segments form the core of mar-
form the basis of all remaining chapters and will provide keting efforts because they represent the source of cus-
you with the necessary tools to discuss and learn about tomer needs.
marketing. To target specific
market segments, much exchange people giving up one
thing to receive another thing they
has to be done to research
1-3a Exchange the lives, trends, and needs
would rather have
One desired outcome of marketing is an exchange— of a particular group. Later customer value the
relationship between benefits and
people giving up one thing to receive another thing they in the book, we will look at the sacrifice necessary to obtain
would rather have. Normally, we think of money as the how marketing research those benefits
medium of exchange. We “give up” money to “receive” (Chapter 5), consumer
The Force is with Disney
A recent example of Disney’s relationship mar-
keting was the case of an eight-year-old boy with
autism who visited Disney World’s Hollywood
Studios theme park in Florida in June 2013. The
boy, Josiah, had been looking forward to particip-
ating in the Jedi Training Academy—and just as he
was to enter the stage to “fight” Darth Vader, the
Florida skies opened up, and the rest of the event
was rained out. Josiah was crestfallen, and his
mother was worried he would retreat into his own
world. The mother, Sharon Edwards, rushed over to
Courtesy of Sharon Edwards and David Piggott

the Disney employee playing the “Jedi Master” and
explained the situation. The actor, David Piggott,
told her in a hushed voice to meet him at the side
of the building.
David, still in character as the Jedi Master,
handed Josiah a lightsabre signed by Darth Vader.
Josiah was ecstatic; he had gone from devastation
to elation in minutes thanks to a kind act by this
Disney employee.
Sharon decided she had to share this of thousands of views. As word spread, new media
experience, so she wrote a post in her blog called began to get involved, and the story travelled
“The Most Beautiful Ruined Moment,” describing around the world. Sharon had been worried
their encounter with an employee who went that the publicity from this incident might get
beyond his duty to make a memorable moment David Piggott (the Jedi Master) in trouble for not
for her son. Soon, the blog was being passed following protocol. Instead, Disney responded
around social media and on autism family support by saying that it will be using this incident as an
websites, and within days her blog had hundreds example of “good customer relations.”
Sources: John I. Carney, “A Jedi Master and the Blog Side of the Force,” Times-Gazette, June 19, 2013, www.t-g.com/story/1979291.html (accessed September 2013); and
Sharon Edwards, “The Most Beautiful Ruined Moment,” June 13, 2013, http://writeshesays.wordpress.com/2013/06/13/the-most-beautiful-ruined-moment/ (accessed
September 2013).
decision making (Chapter 6), and business marketing addresses two of the three possibilities and indirectly
(Chapter 7) help provide the necessary tools to develop addresses the other.
strong market segments (Chapter 8).
Building Relationships Attracting new cus- The Marketing Mix The marketing mix—also
tomers to a business is only the beginning. The best com- known as the 4Ps of marketing—refers to product, price,
panies view new-customer attraction as the launching place, and promotion. Each of the 4Ps must be studied
point for developing and enhancing a long-term relation- and developed to create a proper strategy to go after a
ship. Companies can expand their market share in three market segment:
ways: attracting new customers, increasing business with ●● Product relates to the tangible and intangible as-
existing customers, and retaining current customers. pects of a company’s offering. A product could be a
Building relationships with existing customers directly can of soup or a virtuoso ballet performance; both
Research In Motion—A Cautionary
Tale
In the early 2000s, Research In Motion (RIM) was with this really cool
touted as an unbelievable success story. BlackBerrys technology about
Used with permission of Bloomberg L.P. Copyright © 2017.

were omnipresent and seen in the hands of world the hinge. Look at
leaders (Barack Obama) and celebrities (Kim Kar- how this works.’
dashian). With a security system beyond reproach There is probably
and a messaging system that was as simple as still a warehouse full
it was addicting, the Blackberry and Research In of them.” In the end,
Motion had arrived. So what went wrong? Look at customers stopped
the magazine photo below that shows a BlackBerry buying BlackBerrys,
All rights reserved.

beside ancient relics, showing it as a relic. and app makers
Among the many things that went wrong was stopped producing
RIM’s lack of interest in researching and under- applications for
standing customer needs. The BlackBerry was BlackBerry devices.
created to provide security and messaging—but Research In Motion focused too
what did consumers want? In 2007, research was much on its platform and security
showing that consumers were looking for “candy features and forgot about the
bar phones” that would have a simple user interface customer. The makers of the
and a single touch screen. What did BlackBerry BlackBerry failed to see that con-
put out to market? The Pearl Flip, a flip phone sumers, not businesses, would lead
that consumers were no longer inter- the smartphone market in the future.
ested in. A member of RIM’s customer Consumers were looking for touch screens
base management team noted the and a fully interactive communication device.
interaction between the sales RIM gave consumers keyboards and security
o
ot
Ph
team that wanted the candy features they did not ask for. There was never an
ck
to
yS
bar phone and the company’s attempt to evolve with customers and their chan-
am
Al
rt/
development team: “All the sales ging needs. Blackberry suffered from the “Field of
o
Tw
ew
guys were like…we asked you for Dreams” belief—if you build it, they will come. Soon
dr
An
big screens, touchscreens, more of these candy bar customers might have to visit a museum to see what
styles. And they were like ‘Yeah, but we came up a BlackBerry looks like.
Source: Felix Gillette, Diane Brady, and Caroline Winter, “The Rise and Fall of BlackBerry: An Oral History,” BusinessWeek, December 5, 2013, www.businessweek.com/articles/
2013-12-05/the-rise-and-fall-of-blackberry-an-oral-history (accessed August 4, 2014).
companies will need to look at what needs are being ●● Place relates to much of the behind-the-scenes ac-
satisfied and how to best package all the aspects of the tivities of making an offering available to the custom-
offering so that the consumer will be satisfied. er. This is the world of channels and logistics, where
●● Price relates to the quantifying of a value in exchange decisions made on how to get a company’s product
for a company’s offering. Competition is a significant to market could be more important than the product
issue here, as are customer perception and economic itself.
factors. Setting the right price is all about taking those ●● Promotion relates to what most people believe mar-
factors into consideration and making the best deci- keting to be about. These are the most visible activi-
sion that satisfies the bottom line and the customer. ties of marketing, the ones that get into the news and
1-4b Marketing Is a Rewarding Career
CUSTOMER VALUE Marketing can provide both financial and personal
rewards. Marketing graduates have the flexibility of
Marketers interested in customer value seeking employment in any industry, profit or nonprofit,
public or private. This is because there is an inherent need
●● offer products that perform
for marketing in any organization that has a customer—
●● earn trust through loyalty programs whether final consumers or businesses’ customers.
●● avoid unrealistic pricing by communicating Careers in marketing are varied and offer many
clearly opportunities to those looking for a constantly evolving
and changing marketplace. There are entry level
●● give consumers the facts and the opportunity
positions like marketing coordinators and marketing
to learn more
analysts; these positions offer an opportunity for aspiring
●● offer an organization-wide commitment to marketers to learn the skill set necessary to be successful
service and after-sales support in marketing. These are often challenging roles that are
●● partner with consumers to co-create rewarded with greater opportunity and responsibility.
experiences that consumers want As you become versed in the world of marketing, more
senior level positions become available. Job titles like
marketing manager, project manager, and vice president
the faces of customers. Trying to find the right bal- of marketing all display the importance of leadership and
ance of what techniques to use (including advertis- management while still applying the basic concepts of
ing) is a constant challenge, as is keeping a consistent marketing along with advance techniques of analysis and
feel and look. strategy.
A great advantage to a career in marketing lies in
the variety of industries in which marketing jobs are
1-4 Why Marketing Matters present. Although there are many jobs in the areas
of advertising, product management, and marketing
research, there are also many opportunities to apply the
Given that this chapter started out by proclaiming
concepts of marketing to various situations. Numerous
the death of marketing, the question that needs to be
marketing opportunities can be found in government
asked is Why does marketing matter? Here are a few
(at the municipal level especially), but also in sports,
compelling reasons.
the arts, and nonprofit worlds. There is no shortage of
opportunity in the field of marketing—finding the right
1-4a Marketing Is Part of Every Company opening often comes down to how well students can
No matter what discipline in business you choose to learn the material (like reading a textbook like this) and
pursue, you will have customers. If you do not concern combine that with skills that are invaluable in creating a
yourself with the customer, you will cease to have any career in marketing.
(just ask BlackBerry). To excel and advance in the field of marketing, strong
All companies, from multinationals to independent communication and analytical skills are essential. Now
consultants, need to be customer focused. We know now that we know that marketing forms a fundamental part
that marketing provides this customer focus; therefore, of any organization, a good marketer will understand the
understanding marketing means understanding your importance of working with other departments to ensure
customer. customer needs are met. As well, managers in marketing
Successful companies have a strong understanding will deal constantly with uncertainty, so being able to
of the importance of marketing. Apple, the incredibly analyze diverse and often divergent information will be
successful technology firm, created a three-point key in becoming a successful marketing professional.
marketing philosophy when it was founded in 1977.
The first point of that philosophy is the most telling: 1-4c Marketing Provides an Important
“Empathy—we will truly understand [the customer’s]
needs better than any company.” This fundamental
Skill Set
belief lies at the core of many successful organizations, Even if your career aspirations are not in the field of
including Apple.10 marketing, you will still need to sell yourself to a future
employer. Skills developed when learning marketing—
how to understand needs, research trends, create an
offering, and communicate benefits—all relate back to
a person’s job search.
Brett Wilson, who is quoted on his views of mar-
keting in the picture on this page, is a successful
Canadian entrepreneur and former panellist on the
television show Dragons’ Den. He has noted the
importance of marketing as part of the skill set of any
aspiring businessperson. When asked about his best
business advice, Wilson stated, “Study marketing,
entrepreneurship, and philanthropy. The incredible
relevance of these courses merits mention. You cannot
over-study these life-enhancing courses at any stage in
your career.” 11
1-4d Marketing Is Part of Everyday Life
Malcolm Taylor/Getty Images

The tasks in marketing, as we have seen in this chapter,
go well beyond a simple advertisement or sales call.
Marketing includes important tasks that may not always
be associated with marketing—such as distribution—
that ensure that the products are on store shelves or
delivered from a favourite website.
Being informed about marketing means being Marketing, in my mind, is invaluable and
an informed consumer. Most Canadians’ lives are full underrated by most people.12—Brett Wilson
of activities and tasks that will have them confronting
marketing messages from numerous organizations. By
learning about marketing, you will be better able to You now have the necessary background and
discern a good message from a bad one and hold those understanding of marketing. Turn the page to start
companies that are targeting you to a higher standard. learning about what marketing has to offer.
Study Tools
IN THE BOOK, YOU CAN:
✔ Rip out the Chapter in Review card at the back of the book.
ONLINE, YOU CAN:

✔ Stay organized and efficient with a single online destination with all the course material and study aids you need to succeed.
Go to nelson.com/student to access the digital resources.
315
Side Launch
B r e w i n g C o m pa n y
3
Continuing Case
Beer Is Everywhere People Are
“Find out where people are going—and buy
land before they get there.” This quotation
attributed to American Cherokee leader and
Confederate Colonel William Penn Adair is
from more than 150 years ago. Perhaps never,
though, has a more poignant mantra for mar-
keting been captured in one phrase.
For Side Launch Brewing Company,
g Com pan y
110
the award-winning craft brewery based in
Sid e Lau nch Bre win

Collingwood, Ontario, being the best beer
where people are going is a parallel philo-
sophy. If marketing is about the discovery
and satisfaction of customer needs, Side Launch, as
founder Garnet Pratt suggests, wants to be the beer companion that marks
these occasions, both good and bad, that accompany people through the
milestones of their life. “When you think about the journey of your adult life,
beer is just there, humbly being a part of it. Weddings, funerals, graduations,
and birthdays. It’s there even in your more routine activities. It’s also waiting
for you after you’ve mowed the lawn or had a hard day at work. It’s there
when you’re among
95 friends, or alone, it’s just there. If you’re a beer drinker,
why wouldn’t you want that beer to be the best beer?”
Marketing is accomplished when value is exchanged. Value is the solution
to a need. But needs, as we’ll discuss throughout the book, are not always
obvious, nor do we even always know we have them. They sometimes knock
us over the head with a direct and vivid message: “I’m hungry—feed me.” But
sometimes those needs will be encrypted in feelings that are less obvious: “I’m
vulnerable—comfort me.”
The latter is one of an infinite number of reasons for the rapid growth
in popularity of craft beer. “The beer market has changed,” asserts Chuck
Galea, VP Sales and Marketing, “primarily because beer drinkers have
changed. They are more sophisticated and know what really good beer
tastes like. People now choose a beer to go along with a season, or an oc-
casion, or even a food group. It’s the new wine, you know, where there are
beer tastings and beer food pairings. And Side Launch is right there now.
We’re getting in people’s hands, they’re trying us, they’re liking us, and
they’re helping to tell our story.”
Founding brewer Michael Hancock refers to his beers as “accessible.”
181 73
“My tagline for our Dark Lager is that it’s the dark beer for people who
don’t think they like dark beer. Our Wheat Beer often appeals to people
275
202
384
400
who may not even like beer; you know, it was called ‘ba-
nana beer’ when it first came out as it had a totally different
364 flavour profile due to the low level of hops.” Michael knows
of what he speaks—being one of the true pioneers of wheat
beer brewing in all of North America. “Michael is the keeper of
quality,” adds Dave Sands, VP Operations, who has a pedigree
304
of beer industry expertise, stemming from a formal postsecond-
ary brewing education and over 12 years working with the two
biggest beer conglomerates in the world (Anheuser-Busch InBev
and Molson-Coors). “We start with the basis of a quality culture,
which sets a level of expectation among the basic things. You find 364
the best ingredients from the best suppliers and mix them with the
highest standards of production—it’s like cooking—you’re going to end
up with a fundamentally better product.”
You’ll be reading about Side Launch in a continuing case study
throughout this book, as we view each chapter concept through the lens of
304
Side Launch Brewing Company. You’ll learn how, as Garnet puts it, Side Launch
makes a product that is “approachable and drinkable” but is also “made well,
and packaged well, delivered well, and sold well.” But don’t just take her word
for it. Witness the wild 300 percent growth over its first three years, tuck in a
handful of nationally sought-after beer awards, and mix in a healthy dose of
consistently high beer reviews among the most influential ratings sites, and
344
you’ll soon see that the story of Side Launch is a story in marketing.
Questions
What is the “need” being satisfied through the sale of beer?
1. 274
2. Is there anything different about the product (beer) that the Side Launch
Brewing Company makes that pursues a more specific need?
3. What are some of the initial things you might consider to be a part of
the Side Launch value proposition?
204
275
264
70 256
g Com pan y
Sid e Lau nch Bre win
276
NEL 120 CHAPTER 1: An Introduction to Marketing 13
Another random document with
no related content on Scribd:
But why needed matters so to end? Gentle Mrs. Trevelyan
often put this question to herself, thinking how easily and
prettily a wind-up could have been effected in one of her
favourite story-books. Dear Jem only had to say, "Will you
marry me, Jean?" and Jean only had to say, "Yes, I will,
Jem," and then they could all three live together and be
happy ever after.
Dear Jem, however, showed not a ghost of an inclination to

do anything of the kind. He was fond of Jean, and he
sometimes remarked what a fine-looking useful girl she
was; while Jean was delighted to be employed, and seemed
to have an unlimited veneration for Jem's opinion on all
manner of vexed questions. Yet this by no means proved
that Jem wanted to marry Jean, or that Jean would have
been willing to marry Jem.
A man seldom chooses his wife for her business capabilities;

and a woman may have an enormous respect for the
mental and spiritual calibre of a man, whom she could on
no account accept for a husband. They jogged on famously
together as cousins—or as Rector and female Curate—but
tokens of an impending love affair, with a distant view of
church-bells and orange-blossoms, simply were not. Jean
never blushed; Jem never looked conscious.
Two years and a half in Dutton had established Jem there as

a leading man; generally popular because of his charm of
manner; though not universally approved, because he could
not always think what others thought, or do what others
would have dictated. He had, of course, opponents and
detractors. Colonel Atherstone looked at him askance; and
Colonel Atherstone's little clique cast oblique glances in
imitation of their leader. Jem was still not enough of a
party-man to be swallowed down, views and all, at one
gulp, by any particular party in the Church—High or Low,
Evangelical or Broad.
But he was the man in Dutton of all others to whom people

appealed in perplexity, and to whom they came in sorrow.
His wisdom was found to be just and true, his sympathy
unbounded, his readiness to take trouble untirable. Above
all, his life was seen to be fair and Christ-like; therefore his
influence was widespread and deep. In contact with his free
and loving spirit, it even came to pass that the narrow
sometimes grew a little less narrow, the bumptious a little
less bumptious, the condemnatory a little less
condemnatory.
After this long digression—!
"Sure you have not done too much?" asked Jem.
"Not an atom! Though I know who has!"—sotto voce.
Jem ignored the last remark. "Well, but don't go on too

long. I'm apt to be hard on my helpers."
"I shouldn't have thought you were ever hard on anybody."
"You think not?"
Jean failed to decipher the look which crept over his face—a
tired self-questioning look—a look which she had always
associated, and always would associate, with Evelyn Villiers.
Jean could never slay this association of ideas. It had begun
vaguely in her childhood, had taken definite shape in her
girlhood; had survived until now. She no longer counted
Jem to be in love with Evelyn. Observation and judgment
both told her that he had or must have overcome the old
romantic fancy—"if it had only been a fancy!" And the idea
of Jem marrying, seldom occurred to her mind.
Still she was conscious of a certain power possessed by
Evelyn over Jem's spirits—like the power of greater or less
air-pressure on the mercury of a thermometer. Evelyn
herself did not know it; but her touch in a moment sent his
mercury up or down. When this particular look came, a look
of strain and weariness, with indented hollows in cheek and
brow, Jean never could resist an instinctive recurrence of
thought to Evelyn. Had Evelyn said or done something to
worry him?
Aloud Jean said nothing, and Jem went back to his writing,
but the effort of work was manifest. Twice there was a
renewed break; and she saw his hand steal over the thick
hair, already streaked with grey.
"I wish you would give in, and take an hour's rest," she
murmured.
"Too much to do! I am behind-hand as it is."
"Jean, dear, I do so like the way you do your hair now,"

interposed Mrs. Trevelyan, who had been sleepily
speculating about "dear Jem's" possible future, and why a
particular arrangement might not come to pass.
"Don't you, Jem?"
Jem laughed, and said, "Very neat."
"It shows the shape of her head so nicely. Jean has such a
well-shaped head. The bumps are all in good proportion."
Jean's pen went vigorously.
"She has such an amount of veneration. I can't endure a

flat head. It always means a small poor conceited nature.
Jean's head at the top is like—"
"Like a cupola," suggested Jem.
"Now, my dear Jem!"
"Or an apple-dumpling," said Jean.
"No, indeed! You have veneration—and decision—and

perseverance—"
"And a whole lot of quarrelsomeness in the bumps behind

my ears."
"Combativeness," corrected Jem.
"I don't see the difference. Oh!—here's an interruption!

Come in!"
"Miss Atherstone, sir."
"Jean, you'll undertake the good lady."
"Miss Atherstone asked for you, sir."
"Never mind! I'll go," quoth Jean. "Some stupid meeting, I

dare say—or soup-tickets. If you are really wanted, I'll call
you. Mother looks half asleep."
Miss Atherstone disapproved of Jem's views, real or

supposed, on Church questions; therefore she never called
at the Rectory except on business. She met Jean with a
solemn air, and received dubiously the excuse of Jem's
over-full time.
"Yes—he is a busy man we all know," she assented, looking

at the rubbed knuckles of her second-best kid gloves, which
she had counted quite good enough for the Rectory.
She wore a puce-coloured silk dress, relegated from long
evening wear, a good deal frayed, and not exactly suited to
a very cold May day; and her brown bonnet was trimmed
with blue cornflowers interspersed among nodding ears of
corn, more appropriate for autumn than for spring. Every
time she moved her head, those ears bobbed stiffly; and
Jean found a fascination in watching for the next bob,
distantly akin to the interest with which one watches for the
next wave-splash on a sea-beach.
"A very busy person!"—with an accent of pity, as if to imply,

"Busy, alas, about what?"
For the Colonel still counted Jem a dangerous young man!

And his sister dutifully followed suit.
"Perhaps you could give me a message for him," suggested

Jean.
"Thank you—but really—no, it is of no consequence,"

hesitated Miss Atherstone. "Merely a—merely an idea—
Another time, perhaps."
"He will come in a moment, if you wish."
No, Miss Atherstone would not have him called. O no,

certainly not. She fidgeted with her twirled glove-ends,
always too long for the fat short fingers. And Mrs. Trevelyan
was resting in the study—not very strong, she believed.
How very useful Miss Trevelyan must be in the house—like
an adopted daughter! So delightful to have a home among
relations, during her father's absence. And Mr. Trevelyan
was quite recovered from his second illness? Dear! How
trying that must have been! And he had been for a voyage
since to the South Sea Islands, had he not? And he was
coming home round the Cape, was he not? Dear! How nice!
What a travelled man he would be! They were expected
home very soon, she was told—Mr. Trevelyan—and—and—
Sir Cyril Devereux with him!
Jean could not in the least have told what it was in the
utterance which made her colour deepen. She was not
given to blushing; and till this moment she had firmly
believed that no human being beyond their two selves knew
of the state of affairs between herself and Cyril. Jean had
never breathed a word on the subject; and she had no idea
of what Cyril had impulsively said to Miss Devereux.
Sybella, being—from her point of view, wisely—desirous to

keep the notion a dead secret, had only let it slip to Lady
Lucas, and Lady Lucas had only told a dozen other people,
always under a strict pledge of secrecy. The tale thus
weighted had travelled slowly: still, it had travelled.
A faint whisper of it even reached Jem, and in that direction

went no farther. Gossip was apt to fall back, innocuous,
from the shield of Mrs. Trevelyan's gentle density; and if the
story as expressed in airy undulations, ever pattered on the
drums of her ears, it had failed to reach her brain. Nobody
had mentioned it to Jean; for people were a little afraid of
Jean, unless they knew her well; and the few who did know
her well, were the last who would have said anything.
So until now she had been able to speak of Cyril easily and
without a blush, because she never supposed anybody to
suspect how matters lay. Indeed, Jean herself was by no
means sure how things did or would lie. Cyril wrote her
constantly and freely; but they always had corresponded
from childhood; and Cyril did not use lover-like terms. He
had attempted it at first, and Jean had made no response,
being determined to leave him free; so he had dropped the
attempt. That was now over two years ago; and two years
are a long time under the age of twenty-four.
Whatever amount of questioning had gone on below the
surface with Jean, she had till this instant shown no
consciousness in connection with Cyril. And now, all in a
moment, without warning, at the sound of his name,
uttered in a tone of peculiar meaning, her cheeks flamed.
Miss Atherstone's sharp little eyes ran all over Jean. "Yes?"
she said, and waited, as if most willing to act feminine
confessor. "Yes? It has been a long separation!"
"Very long," Jean replied, looking her caller straight in the

face, though unable to control her own colouring. "But if my
father comes home strong again, I shall not regret the
parting."
Miss Atherstone sighed lugubriously—quite à la Sybella.
"And one may hope—" she said. "One may hope—! Travel
does improve the mind! At least, people say so. Sir Cyril
was so young—painfully young, poor boy, before he went
out! One cannot but hope, at least, that his most
unfortunate attachment to that little Miss Lucas—a merely
passing fancy, no doubt—"
Another wave of colour swept into the first, and Jean was
wroth with herself. She sat resolutely upright, her eyes
shining with an angry gleam. Was that tale known too?
Could nothing ever be hidden in Dutton? But she only said,
"Miss Lucas?"
"Oh, I thought you were sure to have heard! And, after all,
it might be a mistake. Some have said that he was engaged
all the time—elsewhere!" significantly. "Pray do not be
annoyed, Miss Trevelyan. I sincerely hope it may be untrue.
No one could wish such a connection for Sir Cyril! So very
objectionable! I merely allude to what everybody remarked
—the way he haunted that house for weeks. But probably,
poor youth, he became aware of his danger, and wisely fled
from it. If only it has not been an exchange for something
worse!"
Had Miss Atherstone an object in saying all this? Was she

seeking to discover the state of Jean's feelings towards
Cyril? Had she been sent by Miss Devereux? Was she stupid
or was she wicked? Jean put these questions silently, in
girlish indignation, while saying aloud, "I think 'everybody'
would be better occupied in attending to their own
concerns. One gets out of patience with Dutton gossip."
It was Miss Atherstone's turn to be angry, and the ears of

corn oscillated as if stirred by a gale.
"I am not accustomed, I must say, to having a friendly

interest in others' welfare called by so harsh a name," she
said, caressing again her untidy finger-tips.
"But, after all, it is of no consequence! One must submit, in

this world, to be misunderstood! It is one of the trials of
life! . . . As you imply, Sir Cyril's movements do not concern
us! He is quite at liberty to get himself engaged out there, if
he chooses—to a squatter's daughter! Or a bushman's! It
really concerns nobody—except his poor excellent worthy
aunt! And I am sure Miss Devereux had had little enough of
comfort in her nephew! Such devotion to him—and such a
poor return! Such ingratitude! She has had a succession of
troubles. If she were not so truly good as she is, she must
have sunk beneath them . . . And this will be only one trial
more. One burden added! She will be resigned. Dear Miss
Devereux is always so sweetly resigned. As I tell her, it is
quite a lesson . . . But to have to make way for, such a
successor! A mere Colonial young lady! Oh, I believe the
family is not bad. Not bushrangers!—" with a solemn
attempt at a joke.
"And the girl herself is pretty. In the style of Miss Lucas—
small, and dark eyes! Still—a Colonial family! One does not
expect that, for Sir Cyril Devereux! And his beloved aunt
allowed no choice—no opinion—after her years of devotion
to him!"
Jean's colour did not deepen further; nor did it fade too
fast.
"How soon are they going to be married?" she asked.
"I am not sure that the date is settled," said Miss

Atherstone, her eyes running over Jean again. "In fact, the
engagement is still something of a secret."
"A Dutton secret, I suppose!"
The satire was lost upon Miss Atherstone. "Not Dutton," she
said. "A friend of mine has a sister out in Melbourne."
"I see. So it is on the very best authority. And you came to

tell us the news as soon as you heard. How kind!"
"Sir Cyril will no doubt make the matter known when he

reaches England."
"No doubt. But I don't see why he should not wait to marry
her, and bring her home."
"If he has started—"
"We do not know that he has. The last letter spoke of

probably taking their passage—and since then there has
been a gap in our correspondence. We have been rather
puzzled; but this explains all," said Jean, with the utmost
composure. "Sir Cyril has most likely settled at the last
moment to stay behind and be married. And in that case
my father would, I fancy, come home by Suez. Why, he
might arrive any day!"
"Well, I can see that you will not omit to give a welcome to
the bride of your old playfellow," said Miss Atherstone, with
a touch of something like spite, because she was conscious
of failure. She found her feet awkwardly, as she spoke.
"No, indeed! We shall have to make a big arch of welcome

at the Brow entrance."
Jean rang the bell, tranquilly shook hands, and smiled Miss
Atherstone out of the room. Then she stood still—to think.
"It may be true!" she pronounced slowly, half aloud. "Not

sure! But not impossible. How can one tell? Why should he
not? We are perfectly free—both of us! I have taken care of
that. And I have always said I would not blame him—if—"
She did not finish the sentence, but pulled herself together,
and went to the study.
"Nothing important?" asked Jem. "Why, Jean!—I could

almost think you had been in a passion. Pardon the idea."
"I think I have. She didn't come on business, really—only to

talk gossip. I can't imagine how she had the face to ask for
you; but, of course, she would have made some excuse for
doing it, if you had appeared. Mother asleep, I see."
Jean fell fiercely to work over the addresses, trying to

smother thought in action. There was a sore consciousness,
deep down, that if this tale proved to be true, life would
look very blank. She had thought herself prepared for
anything—but somehow—That "somehow" meant a good
deal.
For a while only the soft scratching of rival pens could be
heard. Then Jem asked—
"Can you go to the Park to-day?"
"This afternoon? Does Evelyn want me?"
"She would like a call after tea. I met her before lunch."
"Miss Moggridge will be out then, I suppose. I would rather

have got all this done. But if I ought—"
"I should like you to go."
"Nothing wrong with Evelyn?"
A pause; and then, in hushed tones—
"She does not look well, or happy. This is for yourself only.
You might be some help."
"I don't see how. Why doesn't she go to you for advice?"
The question had no answer.
"I'll do as you wish, of course. But it will only be 'Miss

Moggridge' again. She doesn't suit Evelyn; and nothing can
make them suit . . . After all, if they were apart, would
Evelyn be happier? Evelyn has always had her pet worry
ever since I can remember. First it was Miss Devereux; and
then the General; and then losing him; and now Miss
Moggridge. If it were not Miss Moggridge, I suppose it
would be something or somebody else . . . Jem, you do look
tired this afternoon! What is the reason? Has Evelyn said
anything to worry you?"
Jem's "Nonsense!" had an unwontedly brusque sound.

Jean was off her balance, or she would not have made the
suggestion.
"I should not be surprised! I don't mean anything unkind.

Nobody loves Evelyn more than I do—but that is the very
reason! I mean, when she looks so sweet and sad, and
those great eyes are just like a wounded collie's begging for
pity—Oh, I'm every inch as absurd as anybody can be. I
forget all she has in life to make her happy; and it gives me
a heartache for hours after. I believe it gives you the same
—or a headache," added Jean prudently, wondering why she
had said so much. "I wish Evelyn had to be busy; not so
much time to sit and dream."
"If you go after tea, I will call an hour later to walk home
with you."
"Yes, do. That will be nice. I hear the tea going into the
drawing-room. Oh—another interruption!"
This time Captain Lucas was shown into the study. He had
become a frequent visitor there, and Jem's strengthening
uplifting influence had worked wonders with the man. Not
only had he fought through more than two years without
another breakdown; but the very fight had become easier,
the craving less keen and more controllable. Jem kept him
employed in many ways, found him new interests and
pleasures, and exercised, busy as he was, a constant
watchfulness, which gave invaluable help to the wife and
daughter.
Jean was often at the red house, Emmie often at the

Rectory; and something of a friendship had sprung up
between the two girls, affectionate on the part of Jean,
unlimited in admiration on the part of Emmie.
Captain Lucas looked serious and troubled. "I want a word
with you, presently," he said to Jem; but he consented to
take tea first with the ladies.
Then the two gentlemen retired to the study, and Jean sped
away to the Park.
CHAPTER II.
THE "SPANISH GIPSY."
"To-morrow, and to-morrow, and to-morrow,

Creeps in this petty pace from day to day.
• • • • •
"Life's but a walking shadow; a poor player,

That struts and frets his hour upon the stage,
And then is heard no more."
SHAKESPEARE.
JEAN'S estimate of Evelyn Villiers as one who "had always a

pet worry," was not far wrong—indeed, such a statement
might perhaps be made of nine out of every ten individuals,
then or now—yet it was an estimate with two sides. Almost
everything has two sides, if it possesses a side at all; and
here was no exception.
The distinctive characteristic of Evelyn's case lay, not so

much in the possession of a worry, or a succession of
worries, as in the fact of rather too much leisure for looking
at those worries; perhaps too in the absence of a spirit
which should lift her above them. Life hitherto had been too
soft and shielded for the richer development of Evelyn's
character. She was like a plant, by nature hardy, which
would flourish on the border of Alpine snow, but which
grows pale and sickly in the vitiated air of a hothouse.
Still these worries were real of their kind; no mere

outgrowth of the imagination. It is fair to admit so much.
Sybella Devereux would have been a severe trial to almost
any young niece, flung upon her tender mercies. The
General, with all his goodness, must have been a pull upon
the patience of any wife who could not entirely submit her
opinions to his. The sorrow of losing him must have been in
any case enhanced by the recollections of previous friction.
As for Miss Moggridge—Jean was often fain to admit that
she too would have found that excellent lady tiresome as a
life-long companion. But then, why had Evelyn created the
companionship?
Miss Moggridge was undoubtedly excellent, in the true

sense of the word. She excelled alike in right principle, in
right feeling, in right action. That is not to say she was
perfect; but who is perfect? She had her faults, of course,
like other people. She was, theoretically, so liberal-minded
that, practically, she could see no manner of illiberality in
another without risings of righteous anger. And,
unfortunately, with her, as with many other good people,
human anger is apt to outrun the righteous boundary.
To put it differently, she was—or, at all events, she counted
herself—so broad in her mental and spiritual make, that it
made her wrathful to find anybody narrow. But most
naturally, the narrow individual, who called his narrowness
by the more euphonistic title of "sound principle," failed to
see the Christian beauty of a broadism, which was flung like
a cudgel at his devoted head. Since his narrower line of
thought was every inch as much a matter of right with him
as Miss Moggridge's broader line of thought was a matter of
right with her, it was to the last degree improbable that she
should cudgel him over to her way of thinking. Nay, the
question even arises in the mind of a quiet looker-on—was
her vaunted broadism altogether broad, and did it not
partake of inevitable human narrowness, only under a fresh
guise?
Evelyn herself was not narrow, rather the reverse. Since her
husband's death, however, she could not patiently endure
aught which might seem to be levelled at his memory. This
made Miss Moggridge peculiarly liable to tread upon
Evelyn's corns; and with all her devotion to Evelyn, Miss
Moggridge was clumsy in her manner of walking.
The two ladies had rubbed on together for three years, and
might rub on a good deal longer; but such "rubbing on" can
hardly mean present happiness, however much it may be
expected to improve one's spiritual shape in the end.
Moreover, though friction does commonly wear away
corners, it may be so applied as only to sharpen the angles.
Jean had been into Evelyn's boudoir, one may safely assert,
hundreds of times; yet she rarely entered that room without
at least a transient recollection of a certain snowy day,
years since, when she had witnessed the last parting
between General Villiers and his young wife.
Such recallings were more vivid than usual on this particular

afternoon; notwithstanding the difference of a clear May
day, cold but sunshiny. Perhaps the association of ideas lay
in Evelyn's listless and sad air. She welcomed Jean lovingly;
then sank back in a cushioned chair, lifting deep violet eyes,
full of the dumb-animal appeal, of which Jean had spoken to
Jem. The face, though so much older and strictly less
beautiful, was infinitely sweet and attractive. Jean, always
strongly under the influence of this attraction, could never
agree with Sybella Devereux's verdict as to "how dear
Evelyn was gone off in her looks."
"Sit down here by me, Jean. Sit down, and talk me into a
better frame of mind. I am feeling wicked. Nothing is worth
doing or worth living for; and I am sick of everything and
everybody. Except—yes, of course, there are always
exceptions. Does it sound very dreadful?"
"It sounds dyspeptic. You had better see Dr. Ingram," Jean
said the words in jest; and then she wondered if she ought
not to say them seriously. Jem had remarked that Evelyn
was not looking well. Not well! The little hand, lying on her
knee, was transparent; and the fair face seemed to have
shrunk, lending unnatural largeness to the eyes. Had this
come suddenly? It dawned upon Jean in a flash.
"Dr. Ingram would laugh at me. O yes, he would. He can

laugh at feminine nerves."
"Evelyn, have you grown thin lately?"
"My dresses have all grown too big. Things stretch so!"
Jean lifted the slight hand, and looked it over attentively.

"Rings don't stretch—do they?" laughed Evelyn. "I'm in
danger of losing mine. It is all right, Jean—nothing but want
of interest in life. I can't eat, and Miss Moggridge gives me
no peace . . . I'm so tired of it all—and of her! If I could
only manage to see the dear creature once a day, for an
hour or two, we should get on. But every day, and all day!—
Sometimes I don't know how to breathe."
"Only—"
"You look exactly as Mr. Trevelyan did this morning. I was

prowling round the Church, and I came across him—or he
came across me. Somehow, I had a confidential fit—one
does with some people, you know—and I told him what I
was feeling. Not about Miss Moggridge: there was no need
to drag her name in: Only that everything seemed 'stale
and unprofitable!'"
"And he said—"
"Said I was wrong, quite plainly. The feeling might be

inevitable—perhaps physical—but I was wrong to give in to
it. He told me, almost sternly, that life ought not to be
empty for me—that I ought to find an object, if I have not
one. He spoke of poverty of aim, and living too much for
self . . . It is all true, no doubt, but—Do you find him stern?
I did not expect it."
"No," Jean said wonderingly.
"I suppose he thinks mine a mere butterfly existence, all for

pleasure. And yet—"
She stopped speaking; and two large tears crept from

under her lashes.
"It must seem absurd to you—to everybody—that I should
talk of troubles. I, in my easy existence! Yet things are not
always exactly what they seem . . . I think I would give half
my remaining years, if the choice were offered me, to have
him back for one month. It would be—such rest. He loved
me so truly. And nobody—"
"Don't say that. It is not quite real."
"Perhaps not in one sense; but in another—Jean, how can

you enter into it all? I am so much older. There are different
kinds of love; and some kinds don't meet one's craving . . .
I suppose one cannot often have just what one would
choose. Better not, some would say. I don't see that. I
suppose the denial has to be—but to be loved is such a
help! . . . Mr. Trevelyan said, in that calm cold manner of his
—"
"Jem cold!!"
"Did I call him 'cold'? No, 'cold' is hardly the word. It means
repulsion, and he does not repel. He wins one's confidence
somehow—in an abstract sort of way. But his manner is so
entirely self-mastered—as if he had reached a height
beyond all passion of feeling. Almost as if nothing that
merely touched himself could never ruffle him again. It is
beautiful, of course; only a little chilly. That was what he
was this morning—very kind, but just a degree chilly. He
listened to me with such intense patience, and looked most
gentle—as he does, you know—yet when he spoke, he was
stern . . . He said life ought to be something better for me
than drifting down the stream, and getting myself bruised
among jagged rocks. He told me to take my oars, and row
up the stream . . . And, of course, he is right—he is
perfectly right! . . . If only I had energy to obey!"
"Jem is not stern or cold! Evelyn, what can you mean? You
don't understand Jem."
"Do I not?" Two drops again shone on Evelyn's lashes, then

dropped heavily? "How silly I am!" she said, with a laugh.
"Like a baby! After all, what can I do in life that is different?
I am set down here—tied to a place that I detest. Yes, I
detest it, Jean. I never can love Dutton, even for my
husband's sake. Sometimes I think I will abdicate—throw up
everything, and install Thomas Villiers in my place. He is a
man who would not abuse such a trust. Then I should be
free, and I could go and work at the East-End. I have had
for years a craving for that kind of life—a life of real hard
work for others . . . My husband would not have chosen it
for me, perhaps—to become a deaconess or sister, I mean.
But where he is now—don't you think they see with other
eyes? Things must look so different there! He will
understand now—if he sees—the want in my life—the need
for fresh interests . . . I should like to turn everything
upside down, and to start afresh."
"Would that make you happier?"
"You think I should want the Park back as soon as I had

given it up? O no—never. I am so weary of the place . . .
Now I have talked enough about myself. It is a bad habit.
No letters yet from our wanderers?"
"None. Jem thinks that the last before they started must
have gone astray—perhaps not been posted. And they may
for once have skipped over a mail or two before that. Once
really off, we must of course expect a long break. We shall
hear in good time, I dare say."
"And you don't worry yourself in the least—brave sensible

Jean!"
"I'm too busy; and what is the use? Generally one finds in
the end some common-sense explanation, which one might
have known all the time. If anything had happened to put
off their starting in the 'Spanish Gipsy,' why should they not
have written to say so? If they were staying on at
Melbourne, what should have prevented their writing?
Unless—One possible explanation has come up. A piece of
gossip, but I don't know why it should not be true," said
Jean hardily, without a blush. "Miss Atherstone says Cyril is
engaged."
"To—whom?"
"A young lady in Melbourne."
Evelyn did not at once repudiate the idea, as Jean had

expected. "How did Miss Atherstone hear?"
"A letter from a friend to a friend of hers. Then you think it

is true?" asked Jean, with a terrible heart-sinking.
"Cyril has mentioned several times a girl, named Lilias

Mackenzie. I have had a passing suspicion more than once.
However—" Evelyn hesitated, not looking at Jean.
Though Cyril had not confided in his sister before he left

home, Evelyn had a pretty clear inkling as to affairs; but
after two years of separation, who could foretell what might
come to pass?
"It maybe all nonsense. Your father says nothing."
"He would not. It is not his way."
"If there were an engagement, why should not Cyril speak

out?"

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Dear Jem, however, showed not a ghost of an inclination to

A man seldom chooses his wife for her business capabilities;

Two years and a half in Dutton had established Jem there as

But he was the man in Dutton of all others to whom people

After this long digression—!

"Sure you have not done too much?" asked Jem.

"Not an atom! Though I know who has!"—sotto voce.

Jem ignored the last remark. "Well, but don't go on too

"I shouldn't have thought you were ever hard on anybody."

"You think not?"

4-1 Rewards of Global Marketing 48

6-3c Factors Influencing Consumer Buying 7-4f Use of Leasing 123

Part 5 14-6c Sourcing and Procurement

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