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Page i
MARKETING
FIFTH CANADIAN EDITION
Copyright © 2021, 2018, 2015, 2012, 2009 by McGraw-Hill Ryerson Limited.
Copyright © 2020, 2016, 2014, 2012, 2010, 2008 by McGraw Hill LLC. All
rights reserved. No part of this publication may be reproduced or transmitted in
any form or by any means, or stored in a data base or retrieval system, without
the prior written permission of McGraw-Hill Ryerson Limited, or in the case of
photocopying or other reprographic copying, a licence from The Canadian
Copyright Licensing Agency (Access Copyright). For an Access Copyright
licence, visit www.accesscopyright.ca or call toll free to 1-800-893-5777.
The Internet addresses listed in the text were accurate at the time of publication.
The inclusion of a website does not indicate an endorsement by the authors or
McGraw-Hill Ryerson, and McGraw-Hill Ryerson does not guarantee the
accuracy of the information presented at these sites.
ISBN-13: 978-1-26-030574-6
ISBN-10: 1-26-030574-0
1 2 3 4 5 6 7 8 9 0 M 27 26 25 24 23 22 21
Printed and bound in Canada.
Care has been taken to trace ownership of copyright material contained in this
text; however, the publisher will welcome any information that enables them to
rectify any reference or credit for subsequent editions.
Courtesy of Dhruv
Grewal
Dhruv Grewal, Ph.D. (Virginia Tech), is the Toyota Chair in Commerce and
Electronic Business and a Professor of Marketing at Babson College. His
research and teaching interests focus on direct marketing and e-commerce,
marketing research, the broad areas of value-based marketing strategies, services
and retailing, and pricing. He is listed in Thomson Reuters’ 2014 World’s Most
Influential Scientific Minds list (only eight from the marketing field and 95 from
economics and business are listed). He is an Honorary Distinguished Visiting
Professor of Retailing and Marketing, Center for Retailing, Stockholm School of
Economics; an Honorary Distinguished Visiting Professor of Retailing and
Marketing, Tecnológico de Monterrey; a GSBE Extramural Fellow, Maastricht
University; a Global Chair in Marketing at University of Bath; and has been a
Visiting Scholar at Dartmouth College. He has also served as a faculty member
at the University of Miami, where he was a department chair.
He has published more than 150 articles in journals such as the Journal of
Retailing, Journal of Marketing, Journal of Consumer Research, Journal of
Marketing Research, and Journal of the Academy of Marketing Science, as well as
other journals. He currently serves on numerous editorial review boards, such as
the Journal of Marketing, Journal of the Academy of Marketing Science, Journal of
Marketing Research, Journal of Interactive Marketing, Journal of Business
Research Journal of Public Policy & Marketing, and the advisory board for Journal
of Retailing.
He has won a number of awards for his teaching: 2017 Robert B. Clarke
Outstanding Educator Award, 2010 Academy of Marketing Science
Cutco/Vector Distinguished Educator Award in May 2010, 2005 Sherwin-
Williams Distinguished Teaching Award, Society for Marketing Advances, 2003
American Marketing Association, Award for Innovative Excellence in Marketing
Education, 1999 Academy of Marketing Science Great Teachers in Marketing
Award, Executive MBA Teaching Excellence Award (1998), School of Business
Teaching Excellence Awards (1993, 1999), and Virginia Tech Certificate of
Recognition for Outstanding Teaching (1989).
He has taught executive seminars and courses, andr worked on research projects
with numerous firms such as Dell, ExxonMobil, IRI, RadioShack, Telcordia,
Khimetrics Profit-Logic, McKinsey, Ericsson, Motorola, Nextel, FP&L, Lucent,
Sabre, Goodyear Tire & Rubber Company, Sherwin-Williams, and Asahi. He has
delivered seminars in the United States, Europe, Latin America, and Asia. He
has served as an expert witness or worked as a consultant on numerous legal
cases. He serves on the Board of Directors of Babson Global, and on the Board
of Trustees of Marketing Edge.
Courtesy of Michael
Levy
Michael Levy, Ph.D. (Ohio State University), is the Charles Clarke Reynolds
Professor of Marketing Emeritus at Babson College and CEO of RetailProf
LLC. He received his Ph.D. in business administration from The Ohio State
University and his undergraduate and MS degrees in business administration
from the University of Colorado at Boulder. He taught at Southern Methodist
University before joining the faculty as professor and chair of the marketing
department at the University of Miami.
Page v
Shirley Lichti, B.A., M.A., has taught in the School of Business and Economics
(SBE) at Wilfrid Laurier University since 1993 as a part-time and full-time
instructor. She has taught a range of undergraduate and graduate courses,
including Introductory Marketing; Building and Managing Products, Services,
and Brands; Integrated Marketing Communications; and Consumer Behaviour
to undergrads and MBA students. Shirley has an extensive background in
marketing, advertising, promotion, and training, which was developed during a
14-year career with IBM. She has worked in Canada, the Caribbean, and Japan.
A dedicated educator, Shirley was recognized with the 2002 SBE Outstanding
Teacher Award. She was honoured to be included as one of Laurier’s “Most
Popular Professors” in the Maclean’s Guide to Canadian Universities in 2003,
2004, 2005, and 2006. In 2007, Shirley was recognized by the Ontario Ministry
of Training, Colleges and Universities with The LIFT Award for Teaching
Excellence. The Zonta Club of Kitchener-Waterloo presented her with its
Women of Achievement Award in 2015.
She also runs Marketing Magic, a Waterloo-based marketing communication
consulting and training company. She has been a featured keynote speaker at
conferences and has developed and delivered marketing seminars and
workshops for many organizations. Her clients include companies of all sizes,
ranging from the Stratford Festival to Fortune 500 companies such as Manulife
Financial, Scotiabank, and Lexus Canada.
For more than 10 years, Shirley wrote a regular marketing column for The
Record. She has been an active board member and volunteer in many
organizations, including Communitech, the Business Success for Women
Conference, K-W Business Women’s Association, and the Sexual Assault
Support Centre of Waterloo Region.
Brief Contents Page vi
1 Overview of Marketing
4 Consumer Behaviour
5 Business-to-Business Marketing
7 Marketing Research
12 Distribution Channels
16 Global Marketing
Glossary
Chapter Sources
Endnotes
Name Index
Company Index
Subject Index
Page vii
Table of Contents
SECTION ONE Assessing the Marketplace
1 Overview of Marketing
What Is Marketing?
Marketing Is About Satisfying Customer Needs and Wants
Marketing Entails an Exchange
Marketing Requires Marketing Mix Decisions
Marketing Can Be Performed by Both Individuals and
Organizations
Marketing Impacts Many Stakeholders
Sustainable Marketing 1.1 Sustainability and Reputation
Management
The Four Orientations of Marketing
How Do Firms Become More Value Driven?
Gathering and Sharing Information
Marketing Analytics 1.1 Location, Location, Analytics:
Starbucks' Use of Data to Place New Stores
Balancing Benefits With Costs
Building Relationships With Customers
Ethical & Societal Dilemma 1.1. Adding Value by Addressing
Gender Inequality in the Coffee Market
Connecting With Customers Using Social and Mobile Media
Why Is Marketing Important?
Marketing Expands Firms’ Global Presence
Marketing Is Pervasive Across Marketing Channel Members
Marketing Enriches Society
Marketing Can Be Entrepreneurial
Entrepreneurial Marketing 1.1 Kacee Vasudeva — Serial
Entrepreneur
4 Consumer Behaviour
B2B Markets
Manufacturers or Producers
Resellers
Institutions
Government
Key Challenges of Reaching B2B Clients
Entrepreneurial Marketing 5.1 Fighting Fires With Drones
Differences Between B2B and B2C Markets
Ethical & Societal Dilemma 5.1 To Block or Not to Block: The
Competing and Compelling Interests of Advertisers, Users,
and Facebook
Chorus:
7. When they’re coming too strong, and you find you’re in wrong,
In trouble at sea or on land,
There’s just one man to see and his name’s F. T. E.,[6]
To clear out the gear box of sand.
FOOTNOTES:
[4] A Year in the Navy. Houghton Mifflin Co.
[5] H. B. Wilson.
[6] Commander Frank T. Evans, U.S.N.
CHAPTER X
THE CORSAIR STANDS BY