The Light of Egypt, or The Science of the Soul and the Stars, Volume 1

Engagement. Leadership. Innovation. This market-leader remains the most rigorous, business-oriented title on the market! Translated into 10+ languages and supported by an extensive instructor resources package, Kerin 16e is up-to-date with additional emphases on social media, marketing metrics, financial aspects of marketing, and decision-making. Additionally, there is expanded coverage on social responsibility and sustainability topics such as privacy, social entrepreneurship, diversity, equity, inclusion, and environmental impact. The 16e continues its real-world focus with “Marketing Matters,” “Making Responsible Decisions,” “Insights about me,” “Applying Marketing Metrics,” “Integration of the Customer Journey” and “Building your Marketing Plan” features throughout. Key marketplace changes related to the pandemic such as curbside pick-up, touchless payment, and delivery have been incorporated. Also featured is the growing trend toward purpose-driven brands through companies such as Bombas and Chipotle, as well as discussion of the many applications and implications of new and emerging technologies. All these examples come to life through our integrated technology of Connect. Connect features new video cases, application-based activities, and marketing analytics exercises among several others! Keep your course current by subscribing to the Kerin & Hartley Marketing blog (https://kerinmarketing.com ), which brings current marketing issues to your class, complete with discussion questions. Cover 1 Title Page 2 Copyright Page 3 Preface 5 Engagement 7 Leadership 8 Innovation 10 Acknowledgments 22 Brief Contents 28 Detailed Contents 29 Part 1 Initiating the Marketing Process 51 1 CREATING CUSTOMER RELATIONSHIPS AND VALUE THROUGH MARKETING 51 Bombas Is Solving Social Problems with Great Socks and Great Marketing! 51 Creating Better Socks 51 Building a Brand with a Purpose 51 Bombas Today 53 Bombas, Marketing, and You 53 What Is Marketing? 53 Marketing and Your Career 54 Marketing: Delivering Value to Customers 54 The Diverse Elements Influencing Marketing Actions 55 What Is Needed for Marketing to Occur 55 How Marketing Discovers and Satisfies Consumer Needs 56 Discovering Consumer Needs 56 The Challenge: Meeting Consumer Needs with New Products 57 Satisfying Consumer Needs 59 The Marketing Program: How Customer Relationships Are Built 60 Relationship Marketing: Easy to Understand, Hard to Do 60 The Marketing Program and Market Segments 62 3M’s Strategy and Marketing Program to Help Students Study 62 How Marketing Became So Important 64 Evolution toward a Market Orientation 64 Focusing on Customer Relationship Management 65 Ethics and Social Responsibility in Marketing: Balancing the Interests of Different Groups 66 The Breadth and Depth of Marketing 67 Learning Objectives Review 69 Learning Review Answers 69 Focusing on Key Terms 70 Applying Marketing Knowledge 70 Building Your Marketing Plan 70 Video Case 1: Bombas: Creating Socks with a Purpose! 71 2 DEVELOPING SUCCESSFUL ORGANIZATIONAL AND MARKETING STRATEGIES 75 I Scream, You Scream, We All Scream for . . . 75 Today’s Organizations 77 Kinds of Organizations 77 What Is Strategy? 77 The Structure of Today’s Organizations 77 Making Responsible Decisions: New Types of Organizations Help Entrepreneurs Focus on Passion and Purpose 78 Strategy in Visionary Organizations 80 Organizational Foundation: Why Does It Exist? 80 Organizational Direction: What Will It Do? 82 Organizational Strategies: How Will It Do It? 83 Tracking Strategic Performance with Marketing Analytics 83 Applying Marketing Metrics: How Well Is Ben & Jerry’s Doing? 85 Setting Strategic Directions 86 A Look Around: Where Are We Now? 86 Growth Strategies: Where Do We Want to Go? 86 Marketing Matters: Filling the Shoes of Apple CEO Tim Cook: Where Will Apple’s Projected Future Growth for Its Major SBUs Come From? 87 The Strategic Marketing Process 90 Guiding Principles Underlying the Strategic Marketing Process 91 The Planning Phase of the Strategic Marketing Process 91 The Implementation Phase of the Strategic Marketing Process 95 The Evaluation Phase of the Strategic Marketing Process 97 Pulling It All Together 98 Learning Objectives Review 99 Learning Review Answers 100 Focusing on Key Terms 101 Applying Marketing Knowledge 101 Building Your Marketing Plan 101 Video Case 2: IBM: Putting Smart Strategy to Work 102 Appendix A Building an Effective Marketing Plan 107 3 SCANNING THE MARKETING ENVIRONMENT 123 Change Is Constant for Marketers at Facebook 123 Facebook in the Future 124 Environmental Scanning 125 Tracking Environmental Trends 125 An Environmental Scan of Today’s Marketplace 126 Social Forces 127 Demographics 127 Making Responsible Decisions: Balancing Profits and Purpose—Millennial Style 130 Culture 133 Economic Forces 136 Macroeconomic Conditions 136 Consumer Income 137 Marketing Insights About Me: The Census Bureau: Your Source for Economic Information 138 Technological Forces 139 Technology of Tomorrow 139 Technology’s Impact on Customer Value 139 Technology Enables Data Analytics 140 Competitive Forces 141 Alternative Forms of Competition 141 Components of Competition 142 Small Businesses as Competitors 142 Regulatory Forces 143 Protecting Competition 143 Product-Related Legislation 143 Pricing-Related Legislation 145 Distribution-Related Legislation 145 Advertising- and Promotion-Related Legislation 145 Marketing Matters: Does Protecting Privacy Hurt the Web? 146 Control through Self-Regulation 146 Learning Objectives Review 147 Learning Review Answers 147 Focusing on Key Terms 148 Applying Marketing Knowledge 148 Building Your Marketing Plan 149 Video Case 3: Geek Squad: A New Business for a New Environment 149 4 ETHICAL AND SOCIAL RESPONSIBILITY FOR SUSTAINABLE MARKETING 155 Anheuser-Busch: Becoming the Best Beer Company in a Better World 155 Responsible Drinking 155 Environmental Sustainability 155 Nature and Significance of Marketing Ethics 157 An Ethical/Legal Framework for Marketing 157 Critical Perceptions of Ethical Behavior 158 Four Factors Affect Ethical Marketing Behavior 158 Societal Culture and Norms 158 Business Culture and Industry Practices 159 Making Responsible Decisions: Corporate Conscience in the Cola War 161 Marketing Insights About Me: Is Corruption More or Less Common in My Country? 162 Corporate Culture and Expectations 162 Your Personal Moral Philosophy and Ethical Behavior 163 Understanding Social Responsibility for Sustainable Marketing 165 Three Concepts of Social Responsibility 165 Marketing Matters: Will Consumers Switch Brands for a Cause? Yes, If . . . 168 The Social Audit and Sustainable Development: Doing Well by Doing Good 168 Turning the Tables: Consumer Ethics and Social Responsibility 170 Learning Objectives Review 171 Learning Review Answers 172 Focusing on Key Terms 173 Applying Marketing Knowledge 173 Building Your Marketing Plan 173 Video Case 4: Toyota: Where the Future Is Available Today 173 Part 2 Understanding Buyers and Markets 179 5 UNDERSTANDING CONSUMER BEHAVIOR 179 Enlightened Carmakers Know What Custom(h)ers and Influenc(h)ers Value 179 Consumer Purchase Decision Process and Experience 180 Problem Recognition: Perceiving a Need 181 Information Search: Seeking Value 181 Alternative Evaluation: Assessing Value 181 Purchase Decision: Buying Value 182 Postpurchase Behavior: Realizing Value 183 Marketing Matters: How Much Is a Satisfied Customer Worth? 184 Consumer Involvement Affects Problem Solving 184 Situational Influences That Affect Purchase Decisions 186 Putting the Purchase Decision Process into Practice: Consumer Touchpoints and Consumer Journey Maps 186 Psychological Influences on Consumer Behavior 188 Consumer Motivation and Personality 188 Consumer Perception 189 Making Responsible Decisions: The Ethics of Subliminal Messages 191 Consumer Learning 191 Consumer Values, Beliefs, and Attitudes 192 Consumer Lifestyle 193 Marketing Insights About Me: What Motivates You? It Depends on Your Mindset 194 Sociocultural Influences on Consumer Behavior 195 Personal Influence 195 Marketing Matters: BzzAgent—the Buzz Experience 196 Reference Group Influence 197 Applying Marketing Metrics: Are Your Customers Recommending Your Company or Brand? 198 Social Class Influence 199 Family Influence 199 Culture and Subculture Influences 201 Learning Objectives Review 204 Learning Review Answers 204 Focusing on Key Terms 205 Applying Marketing Knowledge 205 Building Your Marketing Plan 205 Video Case 5: Coppertone: Creating the Leading Sun Care Brand by Understanding Consumers 206 6 UNDERSTANDING ORGANIZATIONS AS CUSTOMERS 211 Organizational Buying Is Marketing, Too! Purchasing Publication Paper for JCPenney 211 Business-to-Business Marketing and Organizational Buyers 212 Organizational Buyers 212 Organizational Markets 213 Measuring Organizational Markets 213 Characteristics of Organizational Buying 214 Demand Characteristics 214 Size of the Order or Purchase 215 Number of Potential Buyers 215 Organizational Buying Objectives 216 Organizational Buying Criteria 216 Buyer–Seller Relationships and Supply Partnerships 217 Marketing Matters: At Milsco Manufacturing, “Our Marketing Philosophy Is Designed to Develop Partnerships” and Deliver a Great Ride for Customers’ Seats 218 The Organizational Buying Function, Process, and Buying Center 218 The Buying Function in Organizations 218 Making Responsible Decisions: Sustainable Procurement for Sustainable Growth at Starbucks 219 Stages in the Organizational Buying Process 219 The Buying Center: A Cross-Functional Group 219 Online Buying in Business-to-Business Marketing 222 Prominence of Online Buying in Organizational Markets 222 E-Marketplaces: Virtual Organizational Markets 222 Marketing Matters: eBay Means Business for Business-to-Business Marketing Entrepreneurs, Too! 223 Online Auctions in Organizational Markets 224 Learning Objectives Review 225 Learning Review Answers 226 Focusing on Key Terms 226 Applying Marketing Knowledge 226 Building Your Marketing Plan 226 Video Case 6: Trek: Building Better Bikes through Organizational Buying 227 7 UNDERSTANDING AND REACHING GLOBAL CONSUMERS AND MARKETS 231 Transforming the Way India Sells and Buys: Amazon India Builds a Multibillion-Dollar Operation from the Ground up to the Cloud 231 Amazon’s Awesome Opportunity in India 231 Amazon’s Awesome Challenges in India 231 Failure Was Not an Option 232 Dynamics of World Trade 233 Global Perspective on World Trade 233 United States’ Perspective on World Trade 234 Marketing in a Dynamic Global Economy 235 Economic Protectionism by Individual Countries 235 Making Responsible Decisions: Global Ethics and Global Economics—The Case of Protectionism 236 Economic Integration among Countries 237 Global Competition among Global Companies for Global Consumers 239 Marketing Matters: The Global Teenager—A Market of Voracious Consumers 241 The Presence of a Networked Global Marketspace 241 The Prevalence of Economic Espionage 242 A Global Environmental Scan 243 Cultural Diversity 243 Economic Considerations 246 Political-Regulatory Climate 248 Comparing Global Market-Entry Strategies 249 Marketing Matters: Creative Cosmetics and Creative Export Marketing in Japan 250 Exporting 250 Licensing 251 Joint Venture 251 Direct Investment 252 Crafting a Worldwide Marketing Program 252 Product and Promotion Strategies 252 Distribution Strategy 254 Pricing Strategy 255 Learning Objectives Review 255 Learning Review Answers 256 Focusing on Key Terms 256 Applying Marketing Knowledge 257 Building Your Marketing Plan 257 Video Case 7: Mary Kay, Inc.: Launching Pink Young in China 257 Part 3 Targeting Marketing Opportunities 261 8 MARKETING RESEARCH: FROM CUSTOMER INSIGHTS TO ACTIONS 261 Hollywood Loves Marketing Research! 261 A Film Industry Secret 261 The Role of Marketing Research 264 What Is Marketing Research? 264 The Challenges in Doing Good Marketing Research 264 Five-Step Marketing Research Approach 264 Step 1: Define the Problem 265 Set the Research Objectives 265 Identify Possible Marketing Actions 266 Step 2: Develop the Research Plan 266 Specify Constraints 266 Identify Data Needed for Marketing Actions 266 Determine How to Collect Data 266 Step 3: Collect Relevant Information 267 Secondary Data: Internal 267 Secondary Data: External 268 Marketing Matters: Online Databases and Internet Resources Useful to Marketers 269 Advantages and Disadvantages of Secondary Data 269 Primary Data: Watching People 270 Primary Data: Asking People 272 Primary Data: Other Sources 276 Applying Marketing Metrics: Are the Carmex Social Media Programs Working Well? 277 Making Responsible Decisions: Your Digital Life Is Transparent: The Downside of Data Mining 280 Advantages and Disadvantages of Primary Data 280 Analyzing Primary Data Using Cross Tabulations 281 Step 4: Develop Findings 282 Analyze the Data 283 Present the Findings 283 Step 5: Take Marketing Actions 284 Make Action Recommendations 285 Implement the Action Recommendations 285 Evaluate the Results 285 Sales Forecasting Techniques 285 Judgments of the Decision Maker 286 Surveys of Knowledgeable Groups 286 Statistical Methods 286 Learning Objectives Review 287 Learning Review Answers 288 Focusing on Key Terms 289 Applying Marketing Knowledge 289 Building Your Marketing Plan 289 Video Case 8: Carmex® (A): Leveraging Facebook for Marketing Research 290 9 MARKET SEGMENTATION, TARGETING, AND POSITIONING 295 There Is Only One Word for the Zappos Experience: WOW! 295 Segmentation Is Zappos’s Secret to Success 295 Delivering WOW through Customer Service 295 Why Segment Markets? 296 What Market Segmentation Means 296 When and How to Segment Markets 298 Steps in Segmenting and Targeting Markets 300 Step 1: Group Potential Buyers into Segments 301 Marketing Insights About Me: To Which “Flock” Do You Belong? 302 Applying Marketing Metrics: What Is the Lifetime Value of a McDonald’s and Burger King Customer? 306 Step 2: Group Products to Be Sold into Categories 308 Step 3: Develop a Market-Product Grid and Estimate the Size of Markets 309 Step 4: Select Target Markets 309 Step 5: Take Marketing Actions to Reach Target Markets 311 Market-Product Synergies: A Balancing Act 313 Marketing Matters: Apple’s Segmentation Strategy—Camp Runamok No Longer 314 Positioning the Product 315 Two Approaches to Product Positioning 315 Writing a Product Positioning Statement 315 Product Positioning Using Perceptual Maps 316 A Perceptual Map to Reposition Chocolate Milk for Adults 316 Learning Objectives Review 317 Learning Review Answers 318 Focusing on Key Terms 318 Applying Marketing Knowledge 318 Building Your Marketing Plan 319 Video Case 9: Prince Sports, Inc.: Tennis Racquets for Every Segment 319 Part 4 Satisfying Marketing Opportunities 323 10 DEVELOPING NEW PRODUCTS AND SERVICES 323 Apple: The World-Class New-Product Machine 323 Apple’s New-Product Development Successes 323 Apple’s New-Product Development Stumbles 323 The Next Chapter in Apple’s Story: An Apple-Enabled iCar? 324 What Are Products and Services? 325 A Look at Goods, Services, and Ideas 325 Classifying Products 325 Classifying Services 327 Product Classes, Forms, Items, Lines, and Mixes 327 New Products and Why They Succeed or Fail 328 What Is a New Product? 328 Marketing Matters: Too Much of a Good Thing: Feature Bloat and Feature Fatigue in New-Product Development 329 Why Products and Services Succeed or Fail 330 Tracking New-Product Performance 333 Applying Marketing Metrics: Do Your New Products Have Vitality? 334 The New-Product Development Process 334 Stage 1: New-Product Strategy Development 334 Stage 2: Idea Generation 335 Stage 3: Screening and Evaluation 338 Stage 4: Business Analysis 338 Marketing Matters: Was the Google Glass Half Full or Half Empty? 339 Stage 5: Development 339 Stage 6: Market Testing 340 Stage 7: Commercialization 341 Learning Objectives Review 342 Learning Review Answers 343 Focusing on Key Terms 344 Applying Marketing Knowledge 344 Building Your Marketing Plan 344 Video Case 10: GoPro: Making All of Us Heroes with Exciting New Products 344 11 MANAGING SUCCESSFUL PRODUCTS, SERVICES, AND BRANDS 349 Gatorade: Bringing Science to Sweat for 60 Years 349 Creating the Gatorade Brand 349 Building the Gatorade Brand 349 Charting the Product Life Cycle 351 Introduction Stage 351 Growth Stage 353 Maturity Stage 353 Decline Stage 354 Three Aspects of the Product Life Cycle 354 Marketing Matters: Will E-Mail Spell Extinction for Fax Machines? 355 The Product Life Cycle and the Diffusion of Innovation 357 Managing the Product Life Cycle 358 Role of a Product Manager 358 Modifying the Product 359 Modifying the Market 359 Applying Marketing Metrics: Knowing Your CDI and BDI 360 Repositioning the Product 360 Making Responsible Decisions: Consumer Economics of Shrinkflation—Get Less, Pay More 361 Branding and Brand Management 362 Marketing Insights About Me: Do You Want to Start a Business Using Your Own Name? Better Check First! 363 Brand Personality and Brand Equity 363 Picking a Good Brand Name 365 Branding Strategies 367 Packaging and Labeling Products 369 Creating Customer Value and Competitive Advantage through Packaging and Labeling 369 Marketing Matters: Creating Customer Value through Packaging—Pez Heads Dispense More Than Candy 370 Packaging and Labeling Challenges and Responses 371 Learning Objectives Review 372 Learning Review Answers 373 Focusing on Key Terms 373 Applying Marketing Knowledge 373 Building Your Marketing Plan 374 Video Case 11: Justin’s: Managing a Successful Product with Passion 374 12 SERVICES MARKETING 379 Marketing Helped Airbnb Survive the Pandemic, Now Demand Exceeds Supply! 379 The Uniqueness of Services 380 The Four I’s of Services 382 The Service Continuum 384 Classifying Services 385 Marketing Matters: Social Marketing Is a Must for Nonprofits 387 How Consumers Purchase Services 388 The Purchase Process 388 Assessing Service Quality 388 Customer Contact and Relationship Marketing 389 Marketing Matters: Managing Service Failures: The Importance of Monitoring and Guarantees 390 Managing the Marketing of Services 391 Product (Service) 392 Price 392 Place (Distribution) 392 Promotion 393 People 394 Physical Environment 394 Process 395 Applying Marketing Metrics: Are JetBlue’s Flights Profitably Loaded? 396 Services in the Future 396 Learning Objectives Review 397 Learning Review Answers 398 Focusing on Key Terms 399 Applying Marketing Knowledge 399 Building Your Marketing Plan 399 Video Case 12: Minnesota Lynx: Building a Team Brand and Being a Vehicle for Change! 399 13 BUILDING THE PRICE FOUNDATION 407 VIZIO, Inc.—Building a Smart TV Brand at a Great Value 407 Nature and Importance of Price 409 What Is a Price? 409 Price Is What a Consumer Pays, Value Is What a Consumer Receives 410 Marketing Matters: Does Spirit Airlines Engage in Value Pricing? For Some Yes, for Others No 411 Price in the Marketing Mix 411 Step 1: Identify Pricing Objectives and Constraints 412 Identifying Pricing Objectives 412 Identifying Pricing Constraints 414 Step 2: Estimate Demand and Revenue 417 Estimating Demand 417 Price Elasticity of Demand 419 Fundamentals of Estimating Revenue 419 Marketing Matters: Using Big Data to Curb Smoking: Uncovering the Price Elasticity of Demand for Cigarettes 420 Step 3: Determine Cost, Volume, and Profit Relationships 420 The Importance of Costs and Margins 420 Break-Even Analysis 421 Learning Objectives Review 423 Learning Review Answers 424 Focusing on Key Terms 425 Applying Marketing Knowledge 425 Building Your Marketing Plan 426 Video Case 13: Washburn Guitars: Using Break-Even Points to Make Pricing Decisions 426 14 ARRIVING AT THE FINAL PRICE 429 E-Books and E-Conomics: A Twisted Tale of Pricing for Profit 429 Setting the Stage with e-Readers: Amazon’s Kindle 429 Printed Book Pricing Practices 429 Enter e-Books 429 Pricing e-Books . . . Profitably 430 Step 4: Select an Approximate Price Level 431 Demand-Oriented Pricing Approaches 431 Marketing Matters: Energizer’s Lesson in Price Perception—Value Lies in the Eye of the Beholder 433 Cost-Oriented Pricing Approaches 434 Profit-Oriented Pricing Approaches 436 Competition-Oriented Pricing Approaches 437 Applying Marketing Metrics: Are Red Bull Prices Above, At, or Below the Market? 439 Step 5: Set the List or Quoted Price 440 Choose a Price Policy 440 Making Responsible Decisions: The Ethics and Economics of Surge Pricing 441 Consider Company, Customer, and Competitive Effects on Pricing 441 Balance Incremental Costs and Revenues 443 Step 6: Make Special Adjustments to the List or Quoted Price 444 Discounts 444 Allowances 446 Geographical Adjustments 446 Marketing Matters: Everyday Low Prices at the Supermarket = Everyday Low Profits—Creating Customer Value at a Cost 447 Legal and Regulatory Aspects of Pricing 448 Learning Objectives Review 450 Learning Review Answers 451 Focusing on Key Terms 452 Applying Marketing Knowledge 452 Building Your Marketing Plan 452 Video Case 14: Carmex (B): Setting the Price of the Number One Lip Balm 453 Appendix B Financial Aspects of Marketing 457 15 MANAGING MARKETING CHANNELS AND SUPPLY CHAINS 465 Eddie Bauer: The “Brick, Click, and Flip” Pick for the Active Outdoor Enthusiast 465 Eddie Bauer’s Multichannel Marketing Strategy 465 Supply Chain Dynamics at Eddie Bauer 465 Nature and Importance of Marketing Channels 467 What Is a Marketing Channel of Distribution? 467 How Customer Value Is Created by Intermediaries 467 Marketing Channel Structure and Organization 469 Marketing Channels for Consumer Products and Services 469 Marketing Channels for Business Products and Services 470 Digital Marketing Channels 471 Direct to Consumer and Multichannel Marketing 471 Dual Distribution and Strategic Channel Alliances 472 Marketing Matters: Nestl. and General Mills—Cereal Partners Worldwide 473 Vertical Marketing Systems 473 Marketing Channel Choice and Management 475 Factors Affecting Channel Choice and Management 475 Managing Channel Relationships: Conflict and Cooperation 477 Applying Marketing Metrics: Channel Sales and Profit at Charlesburg Furniture 478 Logistics and Supply Chain Management 480 Supply Chains versus Marketing Channels 481 Sourcing, Assembling, and Delivering a New Car: The Automotive Supply Chain 482 Supply Chain Management and Marketing Strategy 482 Marketing Matters: IBM’s Watson Supply Chain—Delivering a Total Solution for Its Customers 483 Two Concepts of Logistics Management in a Supply Chain 484 Total Logistics Cost Concept 485 Customer Service Concept 485 Closing the Loop in the Circular Economy: Reverse Logistics 486 Making Responsible Decisions: Reverse Logistics and Green Marketing Go Together at Hewlett-Packard: Recycling e-Waste 487 Learning Objectives Review 487 Learning Review Answers 488 Focusing on Key Terms 489 Applying Marketing Knowledge 489 Building Your Marketing Plan 489 Video Case 15: Amazon: Delivering the Earth’s Biggest Selection! 490 16 RETAILING AND WHOLESALING 493 Malls Are Reinventing Themselves, for You! 493 The Value of Retailing 494 Consumer Utilities Offered by Retailing 495 The Global Economic Impact of Retailing 495 Classifying Retail Outlets 496 Making Responsible Decisions: Retailers Are Getting Serious about Sustainability! 497 Form of Ownership 497 Level of Service 499 Type of Merchandise Line 500 Nonstore Retailing 502 Automatic Vending 502 Direct Mail and Catalogs 503 Television Home Shopping 504 Online Retailing 504 Telemarketing 505 Direct Selling 505 Formulating a Retail Strategy 506 Positioning in a Retail Setting 506 Retailing Mix 508 Applying Marketing Metrics: Why Apple Stores May Be the Best in the United States! 511 The Evolution of Retailing 512 The Wheel of Retailing 512 The Retail Life Cycle 513 Current Trends in Retailing 514 Safety and Convenience 514 Marketing Matters: The Multichannel Marketing Multiplier 515 Multichannel Retailing 515 Data Analytics 516 Wholesaling Functions and Firms 516 Merchant Wholesalers 516 Agents and Brokers 517 Manufacturers’ Branches and Offices 517 Learning Objectives Review 518 Learning Review Answers 518 Focusing on Key Terms 519 Applying Marketing Knowledge 519 Building Your Marketing Plan 520 Video Case 16: Mall of America®: America’s Biggest Mall Knows the Secret to Successful Retailing! 520 17 IMPLEMENTING INTERACTIVE AND MULTICHANNEL MARKETING 525 Seven Cycles Delivers Just One Bike. Yours. 525 Creating Customer Value, Relationships, and Experiences in a Digital Environment 527 Marketing Challenges in Two Environments 527 Creating Customer Value in a Digital Environment 527 Interactivity and Individuality Create Customer Relationships 528 Creating a Compelling Online Customer Experience 530 Applying Marketing Metrics: Sizing Up Site Stickiness at Sewell Automotive Companies 532 Online Consumer Behavior and Marketing Opportunities and Practices 533 Who Is the Online Consumer? 533 What Consumers Buy Online 533 Why Consumers Shop and Buy Online 533 Making Responsible Decisions: Who Is Responsible for Internet Privacy and Security? 538 When and Where Consumers Shop and Buy Online 539 How Consumers Shop and Buy Online 539 Cross-Channel Consumers and Multichannel Marketing 539 Who Is the Cross-Channel Consumer? 539 Implementing Multichannel Marketing 540 Learning Objectives Review 542 Learning Review Answers 543 Focusing on Key Terms 543 Applying Marketing Knowledge 543 Building Your Marketing Plan 544 Video Case 17: Poshmark: Succeeding at Social Commerce 544 18 INTEGRATED MARKETING COMMUNICATIONS AND DIRECT MARKETING 549 Taco Bell Has the World’s Biggest Billboard: The Taco Moon! 549 The Communication Process 551 Encoding and Decoding 551 Feedback 552 Noise 552 The Promotional Elements 552 Advertising 553 Personal Selling 554 Public Relations 554 Sales Promotion 555 Direct Marketing 555 Integrated Marketing Communications—Developing the Promotional Mix 556 The Target Audience 556 Marketing Matters: Marketers Want to Go to College, and on Spring Break, with You! 557 The Product Life Cycle 557 Product Characteristics 558 Stages of the Consumer Journey 559 Channel Strategies 560 Developing an Integrated Marketing Communications Program 561 Identifying the Target Audience 562 Specifying Promotion Objectives 562 Setting the Promotion Budget 563 Applying Marketing Metrics: How Much Should You Spend on IMC? 564 Selecting the Right Promotional Tools 564 Designing the Promotion 565 Scheduling the Promotion 565 Executing and Assessing the Promotion Program 566 Direct Marketing 567 The Growth of Direct Marketing 567 The Value of Direct Marketing 568 Technological, Global, and Ethical Issues in Direct Marketing 569 Making Responsible Decisions: What Is the Future of Your Privacy? 570 Learning Objectives Review 571 Learning Review Answers 571 Focusing on Key Terms 572 Applying Marketing Knowledge 572 Building Your Marketing Plan 573 Video Case 18: Chipotle Mexican Grill: Where IMC Helps Deliver Food “For Real”! 573 19 ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS 579 Advertisers Prepare for a Cookieless Future and “Smart Audiences”! 579 Types of Advertisements 581 Product Advertisements 581 Institutional Advertisements 582 Developing the Advertising Program 583 Identifying the Target Audience 583 Specifying Advertising Objectives 584 Setting the Advertising Budget 584 Marketing Insights About Me: Are You an Expert at Picking the Best Super Bowl Ads? 586 Designing the Advertisement 586 Selecting the Right Media 590 Applying Marketing Metrics: What Is the Best Way to Reach 1,000 Customers? 591 Different Media Alternatives 591 Making Responsible Decisions: Who Is Responsible for Preventing Click Fraud? 597 Scheduling the Advertising 599 Executing the Advertising Program 599 Pretesting the Advertising 599 Carrying Out the Advertising Program 600 Assessing the Advertising Program 601 Posttesting the Advertising 601 Making Needed Changes 602 Sales Promotion 602 Consumer-Oriented Sales Promotions 602 Trade-Oriented Sales Promotions 607 Public Relations 608 Publicity Tools 609 Increasing the Value of Promotion 609 Building Long-Term Relationships 609 Self-Regulation 610 Learning Objectives Review 610 Learning Review Answers 611 Focusing on Key Terms 612 Applying Marketing Knowledge 612 Building Your Marketing Plan 612 Video Case 19: Fallon Worldwide: Creating a Competitive Advantage with Creativity 613 20 USING SOCIAL MEDIA AND MOBILE MARKETING TO CONNECT WITH CONSUMERS 619 Consumers Are Social, Mobile, and Connected—In Their Cars! 619 Understanding Social Media 620 Defining Social Media 620 Classifying Social Media 621 Social Networks, Social Media, Influencer Marketing, and Social Shopping 622 Social Media and Influencer Marketing 622 Social Media and Social Shopping 623 A Look at Six Prominent Social Media 624 Facebook 625 Instagram 626 Twitter 628 YouTube 629 Marketing Matters: Vloggers Are the New Power Players, Worldwide! 630 Pinterest 630 LinkedIn 632 Social Media and User Privacy 633 Social Media Marketing Programs and Customer Engagement 633 Applying Marketing Metrics: Measuring Your Customer Engagement Rate on Social Media 634 Selecting Social Media 635 Selecting Social Media Content 636 Measuring the Results of Social Media Marketing Programs 637 Carmex Goes Viral with Luck and a LeBron James Bear Hug 639 The Future: Convergence and Mobility 640 The Convergence of Real and Digital Worlds 640 Mobile Marketing: Tightening Links to Marketing Actions 642 Learning Objectives Review 643 Learning Review Answers 644 Focusing on Key Terms 645 Applying Marketing Knowledge 645 Building Your Marketing Plan 645 Video Case 20: Body Glove: Helping Consumers Do What They Love! 646 21 PERSONAL SELLING AND SALES MANAGEMENT 651 Meet Today’s Sales Professional 651 Scope and Significance of Personal Selling and Sales Management 652 Nature of Personal Selling and Sales Management 653 Selling Happens Almost Everywhere 653 Personal Selling in Marketing and Entrepreneurship 653 Creating Customer Solutions and Value through Salespeople: Relationship Selling 654 Marketing Matters: Science and Selling: Is Customer Value Creation in Your Genes? 655 The Many Forms of Personal Selling 656 Order-Taking Salespeople 656 Order-Getting Salespeople 656 Customer Sales Support Personnel 657 Marketing Matters: Creating and Sustaining Customer Value through Cross-Functional Team Selling 658 The Personal Selling Process: Building Relationships 659 Prospecting: Identifying and Qualifying Prospective Customers 659 Preapproach: Preparing for the Sales Call 660 Approach: Making the First Impression 661 Presentation: Tailoring a Solution for a Customer’s Needs 661 Marketing Matters: Imagine This . . . Putting the Customer into Customer Solutions! 663 Close: Asking for the Customer’s Order or Business 664 Follow-Up: Solidifying the Relationship 664 The Sales Management Process 665 Sales Plan Formulation: Setting Direction 665 Making Responsible Decisions: The Ethics of Asking Customers about Competitors 666 Sales Plan Implementation: Putting the Plan into Action 669 Marketing Insights About Me: What Is Your Emotional Intelligence? You Might Be Surprised. 670 Salesforce Evaluation: Measuring Results 671 Customer Relationship Management Systems and Technology 672 Applying Marketing Metrics: Tracking Salesperson Performance at Moore Chemical & Sanitation Supply, Inc. 673 Learning Objectives Review 675 Learning Review Answers 675 Focusing on Key Terms 67