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MKTG 7 Principles of Marketing Student Edition
Charles W. Lamb Digital Instant Download
Author(s): Charles W. Lamb; Joe F. Hair; Carl McDaniel
ISBN(s): 9781285091860, 1285091868
Edition: 7th
File Details: PDF, 31.30 MB
Year: 2013
Language: english
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MKTG7 © 2014, 2013 South-Western, Cengage Learning
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mktg7
Lamb | Hair | McDaniel
B r ie f C on te nt s

Part 1 The World of Marketing

1 An Overview of Marketing 2
2 Strategic Planning for Competitive Advantage 14
3 Ethics and Social Responsibility 32
4 The Marketing Environment 42
5 Developing a Global Vision 58

Part 2 Analyzing Marketing Opportunities

6 Consumer Decision Making 80
7 Business Marketing 108
8 Segmenting and Targeting Markets 126
9 Marketing Research 144

Part 3 Product decisions

10 Product Concepts 164
11 Developing and Managing Products 178
12 Services and Nonprofit Organization Marketing 194

Part 4 Distribution Decisions

13 Supply Chain Management 208
14 Marketing Channels and Retailing 224

Part 5 P  romotion and Communication

Strategies
15 Marketing Communications 246
16 Advertising, Public Relations, and Sales Promotion 266
17 Personal Selling and Sales Management 288
18 Social Media and Marketing 306

Part 6 pricing Decisions

19 Pricing Concepts 324
20 Setting the Right Price 342
© iStockphoto.com/OSTILL

Endnotes 360
Index 372

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 © iStockphoto.com/Roger Branch
C on t e n ts

Part 1
The World of
Marketing
1 An Overview of
Marketing 2
1-1 What Is Marketing? 2
1-2 Marketing Management Philosophies 4

© Thinkstock Images/Jupiterimages
1-2a Production Orientation 4
1-2b Sales Orientation 5 1-4 Why Study Marketing? 12
1-2c Market Orientation 5 1-4a Marketing Plays an Important Role in Society 12

1-2d Societal Marketing Orientation 6 1-4b Marketing Is Important to Businesses 13

1-2e Who’s In Charge? 6 1-4c Marketing Offers Outstanding Career

Opportunities 13
1-3 Differences between Sales and Market
Orientations 7 1-4d Marketing in Everyday Life 13

1-3a The Organization’s Focus 7

1-3b The Firm’s Business 10 2 Strategic Planning for
1-3c Those to Whom the Product Is Directed 11 Competitive Advantage 14
1-3d The Firm’s Primary Goal 12 2-1 The Nature of Strategic Planning 14
1-3e Tools the Organization Uses to Achieve 2-2 Strategic Business Units 16
Its Goals 12
2-3 Strategic Alternatives 16
1-3f Word of Caution 12
2-3a Ansoff’s Opportunity Matrix 16
2-3b The Boston Consulting Group Model 18
2-3c The General Electric Model 19
2-4 The Marketing Planning Process 20
2-4a Why Write a Marketing Plan? 20
© Dasha Rusanenko/Shutterstock.com

2-4b Marketing Plan Elements 21

2-4c Writing the Marketing
Plan 21
2-5 Defining the Business Mission 21
2-6 Conducting a Situation
Analysis 22

iv CONTENTS

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© saras66/Shutterstock.com

2-7 Competitive Advantage 23

2-7a Cost Competitive Advantage 23
4 The Marketing
Environment 42
2-7b Product/Service Differentiation Competitive
Advantage 24 4-1 The External Marketing Environment 42
2-7c Niche Competitive Advantage 25 4-1a Understanding the External Environment 44
2-7d Building Sustainable Competitive Advantage 25 4-1b Environmental Management 44
2-8 Setting Marketing Plan Objectives 25 4-2 Social Factors 44
2-9 Describing the Target Market 26 4-2a American Values 44
2-9a Target Market Strategy 26 4-2b The Growth of Component Lifestyles 45
2-10 The Marketing Mix 27 4-2c How Social Media Have Changed the Way People
and Businesses Communicate 45
2-10a Product Strategies 27
4-3 Demographic Factors 46
2-10b Place (Distribution) Strategies 27
4-3a Population 46
2-10c Promotion Strategies 28
4-3b Tweens 47
2-10d Pricing Strategies 28
4-3c Teens 47
2-11 Following Up on the Marketing Plan 28
4-3d Generation Y 48
2-11a Implementation 28
4-3e Generation X 48
2-11b Evaluation and Control 29
4-3f Baby Boomers 48
2-11c Postaudit Tasks 29
4-4 Growing Ethnic Markets 49
2-12 Effective Strategic Planning 30
4-4a Marketing to Hispanic Americans 49
4-4b Marketing to African Americans 50
3 Ethics and Social 4-4c Marketing to Asian Americans 50
Responsibility 32 4-5 Economic Factors 50
3-1 The Concept of Ethical 4-5a Consumers’ Incomes 50
Behavior 32 4-5b Purchasing Power 51
3-2 Ethical Behavior in 4-5c Inflation 51
Business 34
4-5d Recession 52
3-2a Morality and Business
Ethics 34 4-6 Technological Factors 52
3-2b Ethical Decision Making 35 4-6a Research 52

3-2c Ethical Guidelines 36 4-6b Stimulating Innovation 52

© Vitaly Titov & Maria Sidelnikova/Shutterstock.com

3-2d Ethics in Other Countries 37 4-7 Political and Legal Factors 53

3-3 Corporate Social 4-7a Federal Legislation 54
Responsibility 37 4-7b State Laws 54
3-3a Sustainability 38 4-7c Regulatory Agencies 54
3-3b Growth of Social 4-8 Competitive Factors 57
Responsibility 39 4-8a Competition for Market Share and
3-3c Green Marketing 40 Profits 57
3-4 Cause-Related Marketing 41 4-8b Global Competition 57

CONTENTS v

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 5 Developing a Global 6-2 The Consumer Decision-Making Process 80
6-2a Need Recognition 82
Vision 58
6-2b Information Search 83
5-1 Rewards of Global Marketing 58
6-2c Evaluation of Alternatives and Purchase 85
5-1a Importance of Global Marketing to the
6-3 Postpurchase Behavior 86
United States 60
6-4 Types of Consumer Buying Decisions and Consumer
5-1b The Impact of Trade and Globalization 60
Involvement 87
5-2 Multinational Firms 61
6-4a Factors Determining the Level of Consumer
5-2a Are Multinationals Beneficial? 61 Involvement 88
5-2b Global Marketing Standardization 62 6-4b Marketing Implications of Involvement 90

© Dasha Rusanenko/Shutterstock.com
5-3 External Environment Faced by Global Marketers 63 6-5 Cultural Influences on Consumer Buying
5-3a Culture 63 Decisions 91
5-3b Economic Factors 64 6-5a Culture and Values 91

5-3c The Global Economy 64 6-5b Understanding Cultural Differences 92

5-3d Political Structure and Actions 65 6-5c Subculture 92

5-3e Demographic Makeup 70 6-5d Social Class 93

5-3f Natural Resources 70 6-6 Social Influences on Consumer

Buying Decisions 94
5-4 Global Marketing by the Individual Firm 71
6-6a Reference
5-4a Exporting 71
Groups 94
5-4b Licensing and Franchising 72
6-6b Opinion
5-4c Joint Venture 73 Leaders 96
5-4d Direct Investment 73 6-6c Family 97
5-5 The Global Marketing Mix 73 6-7 Individual
5-5a Product Decisions 73 Influences
on Consumer
5-5b Promotion Adaptation 75
Buying
5-5c Place (Distribution) 75 Decisions 98
5-5d Pricing 76
5-6 The Impact of the Internet 77
5-6a Social Media in Global Marketing 77

Part 2
Analyzing
Marketing
Opportunities
6 Consumer Decision
Making 80
6-1 The Importance of Understanding Consumer
Behavior 80

vi CONTENTS

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
© Katherine Welles/Shutterstock.com 6-7a Gender 99
6-7b Age and Family Life Cycle Stage 99
6-7c Personality, Self-Concept, and Lifestyle 100
6-8 Psychological Influences on Consumer Buying
Decisions 101
6-8a Perception 101
6-8b Motivation 103
6-8c Learning 104
6-8d Beliefs and Attitudes 105
7-7c Raw Materials 121

7 Business Marketing
7-7d Component Parts 121
108 7-7e Processed Materials 122
7-1 What Is Business Marketing? 108 7-7f Supplies 122
7-2 Business Marketing on the Internet 110 7-7g Business Services 122
7-2a Measuring Online Success 111 7-8 Business Buying Behavior 122
7-2b Trends in B-to-B Internet Marketing 112 7-8a Buying Centers 123
7-3 Relationship Marketing and Strategic Alliances 113 7-8b Evaluative Criteria 123
7-3a Strategic Alliances 113 7-8c Buying Situations 124
7-3b Relationships in Other Cultures 114 7-8d Business Ethics 125
7-4 Major Categories of Business Customers 115 7-8e Customer Service 125
7-4a Producers 115
7-4b Resellers
7-4c Governments 116
116
8 Segmenting and Targeting
Markets 126
7-4d Institutions 116
8-1 Market Segmentation 126
7-5 The North American Industry Classification
System 117 8-2 The Importance of Market Segmentation 128
7-6 Business versus Consumer Markets 117 8-3 Criteria for Successful Segmentation 128
7-6a Demand 117 8-4 Bases for Segmenting Consumer Markets 129
7-6b Purchase Volume 118 8-4a Geographic Segmentation 129

7-6c Number of Customers 118 8-4b Demographic Segmentation 129

7-6d Location of Buyers 118 8-4c Psychographic Segmentation 132

7-6e Distribution Structure 118 8-4d Benefit Segmentation 134

7-6f Nature of Buying 119 8-4e Usage-Rate Segmentation 134

7-6g Nature of Buying Influence 119 8-5 Bases for Segmenting Business Markets 135
7-6h Type of Negotiations 119 8-5a Company Characteristics 135

7-6i Use of Reciprocity 120 8-5b Buying Processes 135

7-6j Use of Leasing 120 8-6 Steps in Segmenting a Market 136

7-6k Primary Promotional 8-7 Strategies for Selecting Target
© Wuttichok/Shutterstock.com

Method 120 Markets 137

7-7 Types of Business 8-7a   Undifferentiated Targeting 137
Products 120 8-7b Concentrated Targeting 138
7-7a Major Equipment 120 8-7c Multisegment Targeting 138
7-7b Accessory Equipment 121 8-8 CRM as a Targeting Tool 139

CONTENTS vii

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
 8-9 Positioning 140 9-5 Scanner-Based Research 160
8-9a Perceptual Mapping 141 9-6 When Should Marketing Research Be
8-9b Positioning Bases 141 Conducted? 161

8-9c Repositioning 142 9-6a Customer Relationship Management 162

9-7 Competitive Intelligence 163

9 Marketing Research 144

9-1 Marketing Decision Support Systems 144
9-2 The Role of Marketing
Research 146
9-3 Steps in a Marketing
Part 3
Product

© bloomua/Shutterstock.com
Research Project 146
9-3a Secondary Data 147 Decisions
10 Product Concepts
9-3b Marketing Research
Aggregators 148 164
9-3c Planning the Research Design and Gathering 10-1 What Is a Product? 164
Primary Data 148
10-2 Types of Consumer Products 164
9-3d Specifying the Sampling Procedures 154
10-2a Convenience Products 166
9-3e Collecting the Data 156
10-2b Shopping Products 166
9-3f Analyzing the Data 156
10-2c Specialty Products 166
9-3g Preparing and Presenting the Report 157
10-2d Unsought Products 166
9-3h Following Up 157
10-3 Product Items, Lines, and Mixes 167
9-4 The Profound Impact of the Internet on Marketing
Research 157 10-3a Adjustments to Product Items, Lines, and
Mixes 168
9-4a Advantages of Internet Surveys 158
10-4 Branding 170
9-4b Uses of the Internet by Marketing
Researchers 158 10-4a Benefits of Branding 170

9-4c The Role of Consumer-Generated Media in 10-4b Branding Strategies 171

Marketing Research 160 10-4c Trademarks 172

© Oleksiy Mark/Shutterstock.com

viii CONTENTS

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© Blue Lemon Photo/Shutterstock.com 10-5 Packaging 174
10-5a Packaging Functions 174
10-5b Labeling 175
10-5c Universal Product Codes 176
10-6 Global Issues in Branding and Packaging 176
10-7 Product Warranties 177

11 Developing and Managing 12-2c Heterogeneity 196

Products 178 12-2d Perishability 197
11-1 The Importance of New Products 178 12-3 Service Quality 197
11-1a Categories of New Products 178 12-3a The Gap Model of Service
11-2 The New-Product Development Process 180 Quality 197

11-2a New-Product Strategy 181 12-4 Marketing Mixes for Services 199
11-2b Idea Generation 181 12-4a Product (Service) Strategy 199

11-2c Idea Screening 183 12-4b Place (Distribution) Strategy 201

11-2d Business Analysis 183 12-4c Promotion Strategy 201

11-2e Development 184 12-4d Price Strategy 202

11-2f Test Marketing 185 12-5 Relationship Marketing in Services 202

11-2g Commercialization 186 12-6 Internal Marketing in Service Firms 203
11-3 Global Issues in New-Product Development 187 12-7 Global Issues in Services Marketing 203
11-4 The Spread of New Products 187 12-8 Nonprofit Organization Marketing 204
11-4a Diffusion of Innovation 187 12-8a What Is Nonprofit Organization Marketing? 204

11-4b Product Characteristics and the Rate 12-8b Unique Aspects of Nonprofit Organization
of Adoption 188 Marketing Strategies 204

11-4c Marketing Implications of the Adoption

Process 188
11-5 Product Life Cycles 189
11-5a Introductory Stage 189
11-5b Growth Stage 190
11-5c Maturity Stage 191
11-5d Decline Stage 191
11-5e Implications for Marketing Management 192

12 Services and Nonprofit

Organization
© James Steidl/Shutterstock.com

Marketing 194
12-1 The Importance of Services 194
12-2 How Services Differ from Goods 194
12-2a Intangibility 196
12-2b Inseparability 196

CONTENTS ix

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 Part 4
Distribution
Decisions
13 Supply Chain
Management 208
13-1 Supply Chains and Supply Chain Management 208
13-1a Benefits of Supply Chain Management 210
13-2 Supply Chain Integration and Its Benefits 210
13-3 The Key Processes of Supply Chain
Management 212

14 Marketing Channels and

13-3a Customer Relationship Management 212
 13-3b Customer Service Management 212

© Faiz Zaki/Shutterstock.com
13-3c Demand Management 212
Retailing 224
13-3d Order Fulfillment 213 14-1 Marketing Channels 224
13-3e Manufacturing Flow 14-1a How Marketing Channels Work 224
Management 213 14-1b Contact Efficiency—The Special
13-3f Supplier Relationship Retailer Role 226
Management 213 14-1c Functions and Activities of
13-3g Product Intermediaries 226
Development and 14-1d Channel Functions Performed by
Commercialization Intermediaries 228
214
14-2 Channel Structures 228
13-3h Returns Management 214
14-2a Channels for Business and
13-4 How Business Logistics Functions Industrial Products 229
Impact the Supply Chain 215     14-2b Alternative Channel Arrangements 230
13-4a Sourcing and Procurement 215
   14-2c Factors Affecting Channel Choice 230
13-4b Inventory Control 215
   14-2d Levels of Distribution Intensity 231
13-4c Order Processing 216
14-3 Types of Channel Relationships 231
13-4d Production 217
14-3a Global Channel Relationships 232
13-4e Warehousing and Materials
14-3b Social Influences in Channels 233
Handling 217
14-4 The Role of Retailing 234
13-4f Transportation 218
14-5 Classes of Retail Operations 234
13-4g Supply Chain Technology 219
14-5a Ownership 234
13-5 Trends in Supply Chain Management 221
14-5b Level of Service 235
13-5a Outsourcing Logistics Functions 221
14-5c Product Assortment 235
13-5b Supply Chain Risk, Security, and
© ostill/Shutterstock.com

Resilience 222 14-5d Price 235

13-5c Electronic Distribution 222 14-5e Types of Retail Operations 235

13-5d Sustainable Supply Chain Management 223 14-5f Nonstore Retailing 237

13-5e Global Logistics and Supply Chain 14-5g Franchising 238

Management 223

x CONTENTS

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
© Mny-Jhee/Shutterstock.com 15-4 The Promotional Mix 253
15-4a Advertising 253
15-4b Public Relations 254
15-4c Sales Promotion 254
15-4d Personal Selling 255
15-4e Social Media 255
15-4f The Communication Process and the Promotional
Mix 256
15-5 Promotional Goals and the AIDA Concept 258
15-5a AIDA and the Promotional Mix 259
15-6 Integrated Marketing Communications 260
15-7 Factors Affecting the Promotional Mix 261
15-7a Nature of the Product 261
14-6 Retail Marketing Strategy 239 15-7b Stages in the Product Life Cycle 262
14-6a Defining a Target Market 239 15-7c Target Market Characteristics 263
14-6b Choosing the Retailing Mix 239 15-7d Type of Buying Decision 263
14-6c Channels and Retailing Decisions for 15-7e Available Funds 264
Services 244
15-7f Push and Pull Strategies 264
14-7 The Relationship between Retailer Decision Making
and Customer Data 244
14-8 New Developments in Retail and Channel
Management 245

Part 5
Promotion and
Communication
Strategies
15 Marketing
Communications 246
15-1 The Role of Promotion in the Marketing Mix 246
15-2 Marketing Communication 246
15-2a The Communication Process 249
15-3 The Goals of Promotion 252
15-3a Informing 252
© tavi/Shutterstock.com

15-3b Persuading 252

15-3c Reminding 253
15-3d Connecting 253

CONTENTS xi

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 17-3 Customer Relationship Management and Personal
Selling 291

© Dragana Gerasimoski/Shutterstock.com
17-3a Identify Customer Relationships 292
17-3b Understand Interactions of the Current Customer
Base 292
17-3c Capture Customer Data 294
17-3d Leverage Customer Information 294
17-4 Steps in the Selling Process 296
17-4a Step 1: Generating Leads 297
17-4b Step 2: Qualifying Leads 298

16 Advertising, Public
17-4c Step 3: Approaching the Customer and
Probing Needs 298
Relations, and Sales
Promotion 266
16-1 The Effects of Advertising 266
16-1a Advertising and Market Share 268
16-1b The Effects of Advertising on Consumers 268
16-2 Major Types of Advertising 269
16-2a Institutional Advertising 269
16-2b Product Advertising 269
16-3 Creative Decisions in Advertising 270
16-3a Identifying Product Benefits 271
16-3b Developing and Evaluating Advertising
Appeals 271
16-3c Executing the Message 272
16-3d Post-Campaign Evaluation 273
16-4 Media Decisions in Advertising 273
16-4a Media Types 274
16-4b Media Selection Considerations 277
16-4c Media Scheduling 279
16-5 Public Relations 280
16-5a Major Public Relations Tools 281
16-5b Managing Unfavorable Publicity 282
16-6 Sales Promotion 282
16-6a Tools for Trade Sales Promotion 283
16-6b Tools for Consumer Sales Promotion 284
16-6c Trends in Sales Promotion 287
© iStockphoto.com/Neustockimages

17 Personal Selling and

Sales Management 288
17-1 Personal Selling 288
17-2 Relationship Selling 290

xii CONTENTS

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 18-3 Evaluation and Measurement of Social Media 313
18-4 Social Behavior of Consumers 314
18-5 Social Media Tools: Consumer-and Corporate-
Generated Content 315
18-5a Blogs 315
18-5b Microblogs 316
18-5c Social Networks 316
18-5d Media Sharing Sites 317
18-5e Social News Sites 318
18-5f Location-Based Social Networking Sites 319
18-5g Review Sites 319
18-5h Virtual Worlds and Online Gaming 320
18-6 Social Media and Mobile Technology 320
© Eric Isselée/Shutterstock.com

18-6a Mobile and Smartphone Technology 321

18-6b Applications and Widgets 321
18-7 The Social Media Plan 322
18-7a The Changing World of Social Media 323

17-4d Step 4: Developing and Proposing Solutions 300

17-4e Step 5: Handling Objections 301
17-4f Step 6: Closing the Sale 301
17-4g Step 7: Following Up 301
Part 6
Pricing
17-5 Sales Management 302
17-5a Defining Sales Goals and the Sales Process 303
Decisions
17-5b Determining the Sales Force Structure 303
17-5c Recruiting and Training the Sales Force 303
19 Pricing Concepts 324
19-1 The Importance of Price 324
17-5d Compensating and Motivating the Sales
Force 304 19-1a What Is Price? 324

17-5e Evaluating the Sales Force 305 19-1b The Importance of Price to Marketing
Managers 326
17-5f The Impact of Technology on Personal Selling and
Sales Management 305

18 Social Media and

Marketing 306
18-1 What Are Social Media? 306
18-1a How Consumers Use Social Media 309
18-1b Social Media and Integrated Marketing
© iStockphoto.com/NoDerog

Communications 310
18-2 Creating and Leveraging a Social Media
Campaign 310
18-2a The Listening System 311
18-2b Social Media Objectives 313

CONTENTS xiii

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 20-2 The Legality of Price Strategy 346

© Nicemonkey/Shutterstock.com
20-2a Unfair Trade Practices 346
20-2b Price Fixing 346
20-2c Price Discrimination 347
20-2d Predatory Pricing 348
20-3 Tactics for Fine-Tuning the Base Price 348
20-3a Discounts, Allowances, Rebates, and Value-Based
Pricing 348
20-3b Geographic Pricing 350
20-3c Other Pricing Tactics 351
20-3d Consumer Penalties 356
19-2 Pricing Objectives 326
20-4 Product Line Pricing 356
19-2a Profit-Oriented Pricing Objectives 327
20-4a Relationships among Products 356
19-2b Sales-Oriented Pricing Objectives 327
20-4b Joint Costs 356
19-2c Status Quo Pricing Objectives 328
20-5 Pricing during Difficult Economic Times 356
19-3 The Demand Determinant of Price 329
20-5a Inflation 357
19-3a The Nature of Demand 329
20-5b Recession 358
19-3b How Demand and Supply Establish Prices 330
19-3c Elasticity of Demand 331
19-4 The Power of Yield Management Systems 333 ENDNOTES 360
19-5 The Cost Determinant of Price 333
INDEX 372
19-5a Markup Pricing 335
19-5b Profit Maximization Pricing 335
19-5c Break-Even Pricing 335
19-6 Other Determinants of Price 336
19-6a Stages in the Product Life Cycle 336
19-6b The Competition 338

© Saddoggdesign/Shutterstock.com
19-6c Distribution Strategy 338
19-6d The Impact of the Internet and Extranets 339
19-6e Promotion Strategy 339
19-6f Demands of Large Customers 340
19-6g The Relationship of Price to Quality 340

20 Setting the Right

Price 342
20-1 How to Set a Price on a Product 342
20-1a Establish Pricing Goals 342
20-1b Estimate Demand, Costs, and Profits 342
20-1c Choose a Price Strategy 344

xiv CONTENTS

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 THE

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 1-1 What is marketing?
What does the term marketing mean to you? Many people think
it means personal selling. Others think marketing means advertising.
Still others believe marketing has to do with making products available
in stores, arranging displays, and maintaining inventories of products
for future sales. Actually, marketing includes all of these activities
and more.

“
Marketing is too important to be left only to the marketing
department.” David Packard

marketing the activity, set Marketing has two facets. First, it is a philosophy, an attitude, a perspective, or a
of institutions, and processes for
creating, communicating, delivering,
management orientation that stresses customer satisfaction. Second, marketing is an
and exchanging offerings that have organization function and a set of processes used to implement this philosophy.
value for customers, clients, partners, The American Marketing Association’s definition of marketing focuses on the sec-
and society at large
ond facet. Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers,
clients, partners, and society at large.1
Marketing involves more than just activities performed by a group of people in a
defined area or department. In the often-quoted words of David Packard, co-founder
of Hewlett-Packard, “Marketing is too important to be left only to the marketing
department.” Marketing entails processes that focus on delivering value and benefits
to customers, not just selling goods, services, and/or ideas. It uses communication,
distribution, and pricing strategies to provide customers and other stakeholders with
the goods, services, ideas, values, and benefits they desire when and where they want
them. It involves building long-term, mutually rewarding relationships when these
benefit all parties concerned. Marketing also entails an understanding that organi-
zations have many connected stakeholder “partners,” including employees, suppliers,
stockholders, distributors, and others.
Research shows that companies that reward employees with incentives and rec-
ognition on a consistent basis are those that perform best.2 Google captured the num-
ber one position in Fortune’s “100 Best Companies to Work For in 2011.” The company
pays 100 percent of health care premiums, offers paid sabbaticals, and provides boccie
courts, a bowling alley, and twenty-five cafés, for free. Google has also never had a
layoff. One so-called Googler reported that “employees are never more than 150 feet
away from a well-stocked pantry.”3

2 PART ONE: The World of Marketing

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
 Chapter 1

An Overview
of Marketing
Learning Outcomes
1-1 Define the term marketing 2–4
1-2 Describe four marketing
management philosophies 4–7 4

1-3 Discuss the differences

between sales and market
orientations 7–12
1-4 Describe several reasons for
studying marketing 12–13

After you finish this chapter go to

p13 for STUDY TOOLS
© iStockphoto.com/Irena Tinta

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exchange people giving
up something in order to receive
something they would rather have

production
orientation a philosophy
that focuses on the internal
capabilities of the firm rather than
on the desires and needs of the
marketplace

Google offers
many amenities
to its employ-

© ZUMA Wire Service/Alamy

ees, one reason
­Fortune ranked
it as the best
company to work
for in 2011.

One desired outcome of marketing is an exchange, 1-2 Marketing

people giving up something in order to receive something Management
they would rather have. Normally, we think of money as
the medium of exchange. We “give up” money to “get” the Philosophies
goods and services we want. Exchange does not require Four competing philosophies strongly influence an
money, however. Two (or more) people may barter or trade organization’s marketing processes. These philoso-
such items as baseball cards or oil paintings. An exchange phies are commonly referred to as production, sales, mar-
can take place only if the following five conditions exist: ket, and societal marketing orientations.
1. There must be at least two parties.
2. Each party has something that might be of value to 1-2a Production Orientation
the other party. A production orientation is a philosophy that focuses
on the internal capabilities of the firm rather than on the
3. Each party is capable of communication and delivery.
desires and needs of the marketplace. A production ori-
4. Each party is free to accept or reject the exchange
entation means that management assesses its resources
offer.
and asks these questions: “What can we do best?” “What
5. Each party believes it is appropriate or desirable to can our engineers design?” “What is easy to produce,
deal with the other party.4 given our equipment?” In the case of a service organiza-
Exchange will not necessarily take place even if all tion, managers ask, “What services are most convenient
these conditions exist. They are, however, necessary for for the firm to offer?” and “Where do our talents lie?” Some
exchange to be possible. For example, you may place an have referred to this orientation as a Field of Dreams ori-
advertisement in your local newspaper stating that your entation, from the well-known movie line, “If we build it,
used automobile is for sale at a certain price. Several they will come.” The furniture industry is infamous for its
people may call you to ask about the car, some may test- disregard of customers and for its slow cycle times. For
drive it, and one or more may even make you an offer. All example, most traditional furniture stores (think Ashley or
five conditions are necessary for an exchange to exist. But Havertys) carry the same styles and varieties of furniture
unless you reach an agreement with a buyer and actually that they have carried for many years. They always produce
sell the car, an exchange will not take place. Notice that and stock sofas, coffee tables, arm chairs, and end tables
marketing can occur even if an exchange does not occur. for the living room. Master bedroom suites always include
In the example just discussed, you would have engaged in at least a queen- or king-sized bed, two dressers, and two
marketing by advertising in the local newspaper even if no side tables. Regardless of what customers may actually be
one bought your used automobile. looking for, this is what they will find at these stores—and

4 PART ONE: The World of Marketing

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Other documents randomly have
different content
Wedded she was some years, and to a man
Of fifty and such husbands are in plenty;
And yet, I think, instead of such a one,
’Twere better to have two of five and twenty,
Especially in countries near the sun.
Byron—Don Juan, Canto I., Verse LXII.

It was upon a day, a summer’s day;

Summer’s indeed a very dangerous season,
And so is spring about the end of May;
The sun, no doubt, is the prevailing reason.
Byron—Don Juan, Canto I., Verse CII.

Haidee was nature’s bride, and knew not this;

Haidee was passion’s child, born where the sun
Showers triple light, and scorches even the kiss
Of his gazelle-eyed daughters.
Byron—Don Juan, Canto II., Verse CCII.

The Turks do well to shut—at least sometimes—

The women up—because, in sad reality,
Their chastity in these unhappy climes
Is not a thing of that astringent quality,
Which in the north prevents precocious crimes.
Byron—Don Juan, Canto V., Verse CLVII.

Few short years make wondrous alterations,

Particularly among sun-burnt nations.
Byron—Don Juan, Canto I., Verse LXIX.

Our English maids are long to woo,

And frigid even in possession;
And if their charms be fair to view,
Their lips are slow at love’s confession:
But born beneath a brighter sun,
For love ordain’d the Spanish maid is
 And who when fondly, fairly won,—
Enchants you like the girl of Cadiz?

In each her charms the heart must move

Of all who venture to behold her;
Then let not maids less fair reprove
Because her bosom is not colder:
Through many a clime ’tis mine to roam
Where many a soft and melting maid is,
But none abroad and few at home
May match the dark-eyed girl of Cadiz.
Byron—Poems.

What a beautiful comparison Shakespeare has made between the

virgin and flowers.
 I would I had some flowers o’ the spring, that might
Become your time of day; and yours, and yours,
That wear upon your virgin branches yet
Your maidenheads growing * * *
* * * * pale primroses,
That die unmarried, ere they can behold
Bright Phœbus in his strength,—a malady
Most incident to maids.
Winter’s Tale, Act IV., Sc. III.

Fair Hermia, question your desires,

Know of your youth, examine well your blood,
Whether, if you yield not to your father’s choice,
You can endure the livery of a nun;
For aye to be in shady cloister mew’d
To live a barren sister all your life,
Chanting faint hymns to the cold fruitless moon.
Thrice blessed they that master so their blood,
To undergo such maiden pilgrimage;
But earthly happier is the rose distill’d,
Than that, which, withering on the virgin thorn,
Grows, lives, and dies in single blessedness.
Midsummer Night’s Dream, Act I., Sc. I.

Fecundation is not overlooked, and Shakespeare shows his

knowledge of the fact that the penis is merely the spout or funnel by
which the semen is conveyed to the uterus, and aptly compares the
womb to a bottle, which in his time gradually tapered toward the
neck. The word tundish is an old Warwickshire name for a funnel.
Duke. Why should he die, sir?
Lucio. Why? For filling a bottle with a tundish.
Measure for Measure, Act III., Sc. II.

Thou shalt not die: die for adultery! No:

The wren goes to ’t, and the small gilded fly
Does lecher in my sight.
Let copulation thrive for Gloster’s bastard son
Was kinder to his father than my daughters
Got ’tween lawful sheets.
King Lear, Act IV., Sc. VI.

Hymen hath brought the bride to bed,

Where, by the loss of maidenhead,
A babe is moulded.
Pericles, Gow to Act III.

Crack nature’s moulds, all germens spill at once,

That make ungrateful man.
King Lear, Act III., Sc. II.

Q. Eliz. But thou didst kill my children.

K. Rich. But in your daughter’s womb I’ll bury them;
Where, in that nest of spicery, they shall breed
Selves of themselves, to your recomforture.
Richard III., Act IV., Sc. IV.

Your brother and his lover have embrac’d:

As those that feed grow full; as blossoming time,
That from the seedness the bare fallow brings
To teeming foison, even so her plenteous womb
Expresseth his full tilth and husbandry.
Measure for Measure, Act I., Sc. IV.

Hear, nature, hear; dear goddess hear!

Suspend thy purpose, if thou didst intend
 To make this creature fruitful!
Into her womb convey sterility!
Dry up in her the organs of increase;
And from her derogate body never spring
A babe to honour her! If she must teem,
Create her child of spleen; that it may live,
And be a thwart disnatur’d torment to her!
Let it stamp wrinkles in her brow of youth;
With cadent tears fret channels in her cheeks;
Turn all her mother’s pains and benefits
To laughter and contempt: that she may feel
How sharper than a serpent’s tooth it is
To have a thankless child!
King Lear, Act I., Sc. IV.

The production of either sex at will agitated the minds of

physiologists to a considerable extent during Shakespeare’s time.
Indeed he seems to have held an ancient theory that the more
vigorous of the parents produced the opposite sex. Dr. Robert, of
Paris, in his paper entitled Megalanthropogenesis, somewhat
followed up this theory and maintained that “the race of men of
genius might be perpetuated by uniting them to better physically
developed women having clever minds,” which, according to his
theory, would, of course, result in nothing but male children.
 Bring forth men-children only!
For thy undaunted mettle should compose
Nothing but males.
Macbeth, Act I., Sc. VII.

For men’s sake, the authors of these women;

Or women’s sake, by whom we men are men.
Love’s Labour’s Lost, Act IV., Sc. III.

Be advis’d, fair maid:

To you your father should be as a god;
One that compos’d your beauties; yea, and one
To whom you are but as a form in wax,
By him imprinted, and within his power
To leave the figure, or disfigure it.
Midsummer Night’s Dream, Act I., Sc. I.

The child would therefore resemble the parent of opposite sex.

Nurse to Henry VIII:

’Tis a girl * * * as like you
As cherry is to cherry.
Act V., Sc. I.

Paulina pleading to Leontes on the birth of a daughter to his wife

Hermione:
 Behold, my lords,
Although the print be little, the whole matter
And copy of the father,—eye, nose, lip;
The trick of ’s frown; his forehead; nay, the valley,
The pretty dimples of his chin and cheek; his smiles;
The very mould and frame of hand, nail, finger.
Winter’s Tale, Act II., Sc. III.

It is a very old opinion that the mental state of parents during

coition influenced to a certain extent the mental activity of the
offspring. Bastards were supposed to excel in this respect on
account of the mental excitement during the intercourse from which
they took their origin. Burton held this view in his “Anatomy of
Melancholy,” and, after reading King Lear, we know that Shakespeare
also held it.

Edmund. Why brand they us

With base? with baseness? bastardy? base? base?
Who in the lusty stealth of nature take
More composition and fierce quality
Than doth, within a dull, stale, tired bed
Go to the creating a whole tribe of fobs,
Got ’tween sleep and wake.
Act. I., Sc. II.

His allusions to pregnancy are many.

 He knows himself my bed he hath defil’d;
And at that time he got his wife with child:
Dead though she be, she feels her young one kick;
So there’s my riddle, One that’s dead is quick.
All’s Well, Act V., Sc. III.

She is gone; she is two month on her way. * *

She’s quick; the child brags in her belly already.
Love’s Labour’s Lost, Act V., Sc. II.

A mistake of ten weeks is truly a bad one; quickening generally

being experienced four and a half months after impregnation.

I am with child, * * * *
Murder not, then, the fruit within my womb.
Henry VI., Act V., Sc. IV.

She died, but not alone; she held within

A second principle of life, which might
Have dawn’d a fair and sinless child of sin:
But closed its little being without light,
And went down to the grave unborn, wherein
Blossom and bough lie wither’d with one blight.
Byron—Don Juan, Canto IV., Verse LXX.

This blue ey’d hag was hither brought with child.

Tempest, Act I., Sc. II.

If myself might be his judge,

He should receive his punishment in thanks:
He hath got his friend with child.
Measure for Measure, Act I., Sc. IV.

I shall answer that * * * better than you can

the getting up of the negro’s belly; the moor is
 with child.

Merchant of Venice, Act III., Sc. V.

I would there were no age between ten, and

three and twenty, or that youth would sleep out
the rest; for there is nothing in the between but
getting wenches with child, wronging the
ancientry, stealing, fighting. * * *

Winter’s Tale, Act III., Sc. III.

He was whipped for getting the shrieve’s

fool with child; a dumb innocent that could not
say him nay.

All’s Well, Act IV., Sc. III.

Let wives with child

Pray that their burthens may not fall this day.
King John, Act III., Sc. I.

Shakespeare knew of the importance of pregnant women, being

particularly careful that nothing should excite them.

I the rather wean me from despair,

For love of Edward’s offspring in my womb:
This is it that makes me bridle passion,
And bear with mildness my misfortune’s cross;
Ay, ay, for this I draw in many a tear,
And stop the rising of blood-sucking sighs,
Lest with my sighs or tears I blast or drown
King Edward’s fruit, true heir to the English crown.
Henry VI—3d, Act IV., Sc. IV.
 The longings or desires of pregnant women are very nicely
shown in Measure for Measure:

She came in great with child, and longing for stewed prunes.
Act II., Sc. I.

This mistress Elbow, being as I say, with child, and being

great bellied, and longing, as I said, for prunes. * * *
Measure for Measure, Act II., Sc. I.

From whom my absence was not six months old,

Before herself (almost at fainting under
The pleasing punishment that women bear)
Had made provision for her following me.
Comedy of Errors, Act I., Sc. I.

The queen rounds apace. * * *

* * * She is spread of late
Into a goodly bulk.
Winter’s Tale, Act II., Sc. I.

The queen, your mother, rounds apace: we shall

Present our services to a fine new prince
One of these days.
Winter’s Tale, Act II., Sc. I.

She grew round-wombed, and had a son for her cradle

ere she had a husband for her bed.
King Lear, Act I., Sc. I.

Great-bellied women,
That had not half a week to go, like rams
In the old time of war, would shake the press
And make ’em reel before ’em.
Henry VIII., Act IV., Sc. I.
Parturition is referred to in many instances.
 Lucina, O
Divinest patroness, and midwife gentle
To those that cry by night, convey thy deity
Aboard our dancing boat; make swift the pangs
Of my queen’s travails!
Pericles, Act III., Sc. I.

What shall be done with groaning Juliet?

She’s very near her hour.
Measure for Measure, Act II., Sc. II.

Come, let us go, and pray to all the gods

For our beloved mother in her pains.
Titus Andronicus, Act IV., Sc. II.

The lady shrieks, and well-a-near

Doth fall in travail with her fear.
Pericles, Gow to Act III.

She is deliver’d, lords,—she is deliver’d.

I mean, she is brought a-bed.
Titus Andronicus, Act IV., Sc. II.

The queen’s in labour,

They say, in great extremity; and fear’d
She’ll with the labour end.
Henry VIII., Act V., Sc. I.

The queen’s in labour. * * * Her sufferance made

Almost each pang a death.
Henry VIII, Act V., Sc. I.

Finger of birth-strangled babe

Ditch-deliver’d by a drab. * * *
Macbeth, Act IV., Sc. I.

You ne’er oppressed me with a mother’s groan

 You ne er oppressed me with a mother s groan,
Yet I express to you a mother’s care.
All’s Well, Act I., Sc. I.

History records the fact that the Duke of Gloucester, afterwards

Richard III., was born with teeth, uneven shoulders, one leg shorter
than the other, deformed back, with a clump of hair on it. These
facts Shakespeare never forgot, and continually harps on them.
 Thy mother felt more than a mother’s pain,
And yet brought forth less than a mother’s hope;
To wit, an indigest deformed lump,
Not like the fruit of such a goodly tree.
Teeth hadst thou in thy head when thou wast born,
To signify, thou cam’st to bite the world.
Henry VI—3d., Act V., Sc. VI.

I have often heard my mother say

I came into the world with my legs forward:
Had I not reason, think ye, to make haste,
And seek their ruin that usurp’d our right?
The midwife wonder’d and the women cried,
O, Jesus bless us, he is born with teeth!
And so I was, which plainly signified
That I should snarl, and bite, and play the dog.
Henry VI—3d., Act V., Sc. VI.

Love forswore me in my mother’s womb:

And, for I should not deal in her soft laws,
She did corrupt frail nature with some bribe
To shrink mine arm up like a wither’d shrub;
To make an envious mountain on my back,
Where sits deformity to mock my body;
To shape my legs of an unequal size;
To disproportion me in every part,
Like to a chaos, or an unlick’d bear-whelp
That carries no impression like the dam.
Henry VI—3d, Act III., Sc. II.

The term “unlick’d bear-whelp,” in the last quotation, refers to an

old notion existing before Shakespeare’s time: that the bear brings
forth masses of animated flesh, having no resemblance whatever to
her, and that she then licks this shapeless lump into a cub. There is
a thread of truth running through this idea, as will be seen by the
following extract taken by Dyer from “Arcana Microcosmi,” by
Alexander Ross: “Bears bring forth their young deformed and
misshapen, by reason of the thick membrane in which they are
wrapped, that is covered over with a mucous matter. This, he says,
the dam contracts in the winter-time, by lying in hollow caves
without motion, so that to the eye the cub appears like an unformed
lump. The above mucilage is afterwards licked away by the dam,
and the membrane broken, whereby that which before seemed to be
unformed appears now in its right shape.” Ross holds that this was
well known by the ancients and that they entertained no other idea
in regard to it.
Hence, heap of wrath, foul indigested lump,
As crooked in thy manners as thy shape!
Henry VI—2d, Act V., Sc. I.

I, that am curtail’d of this fair proportion,

Cheated of feature by dissembling nature,
Deform’d, unfinish’d, sent before my time
Into this breathing world, scarce half made up,
And that so lamely and unfashionable,
That dogs bark at me as I halt by them;
Why I, * * * since I cannot prove a lover,
I am determined to prove a villain.
Richard III., Act I., Sc. I.

Marry, they say my uncle grew so fast

That he could gnaw a crust at two hours old;
’Twas full two years ere I could get a tooth.
Richard III., Act II., Sc. IV.

Thou elvish-mark’d, abortive, rooting hog!

Thou that wast seal’d in thy nativity
The slave of nature and the son of hell!
Thou slander of thy mother’s heavy womb!
Thou loathed issue of thy father’s loins!
Richard III., Act I., Sc. III.

Art thou so hasty? I have stay’d for thee,

God knows, in anguish, pain and agony.
* * * A grievous burden was thy birth to me.
Richard III., Act IV., Sc. IV.

From forth the kennel of thy womb hath crept

A hell-hound that doth hunt us all to death:
That dog, that had his teeth before his eyes.
Richard III., Act IV., Sc. IV.
A few other quotations referring to labor are here found.
By her he had two children at one birth.
Henry VI—2d, Act IV., Sc. II.

A terrible child-bed hast thou had, my dear;

No light, no fire.
Pericles, Act III., Sc. I.

At sea, in child-bed died she, but brought forth

A maid-child called Marina.
Pericles, Act V., Sc. III.

The child-bed privilege denied, which ’longs

To women of all fashion;—lastly, hurried
Here to this place, i’ the open air, before
I have got strength of limit.
Winter’s Tale, Act III., Sc. II.

Alas! worlds fall—and woman since she fell’d

The world (as, since that history, less polite
Than true, hath been a creed so strictly held)
Has not yet given up the practice quite.
Poor thing of usages! coerced, compell’d,
Victim when wrong, and martyr oft when right,
Condemn’d to child-bed, as men for their sins,
Have shaving too entail’d upon their chins,—
A daily plague, which, in the aggregate,
May average on the whole with parturition.
But as to women who can penetrate
The real sufferings of their she condition?
Man’s very sympathy with their estate
Has much of selfishness and more suspicion.
Their love, their virtue, beauty, education,
But form good housekeepers to breed a nation.
Byron—Don Juan, Canto XIV., Verse XXIII.

They are as children but one step below,

Even of your mettle, of your very blood;
Of all one pain, save for a night of groans
Endur’d of her, for whom you bid like sorrow.
Richard III., Act IV., Sc. IV.

Would I had died a maid,

And never seen thee, never borne thee son,
Seeing thou hast prov’d so unnatural a father!
Hath he deserv’d to lose his birthright thus?
Hadst thou but lov’d him half so well as I,
Or felt that pain which I did for him once,
Or nourish’d him, as I did with my blood.
 Henry VI—3d, Act I., Sc. I.

He is your brother, lords; sensibly fed

Of that self-blood that first gave life to you;
And from that womb where you imprison’d were,
He is enfranchised and come to light.
Titus Andronicus, Act IV., Sc. II.

The child was prisoner to the womb, and is

By law and process of great Nature, thence
Freed and enfranchis’d.
Winter’s Tale, Act II., Sc. II.

She said, no shepherd sought her side,

No hunter’s hand her snood untied,
Yet ne’er again to braid her hair
The virgin snood did Alice wear;
Gone was her maiden glee and sport,
Her maiden girdle all too short.
Nor sought she, from that fatal night,
Or holy church or blessed rite,
But lock’d her secret in her breast,
And died in travail unconfess’d.
Scott—Lady of the Lake, Canto III., Verse V.

My princely father then had wars in France;

And by true computation of the time,
Found that the issue was not his begot.
Richard III., Act III., Sc. V.

Worse than a slavish wipe, or birth hour’s blot:

For marks descried in men’s nativity
Are nature’s faults, not their own infamy.
Lucrece.
 A few quotations on abortion, and some others that are
intimately related to obstetrics, remain.

If ever he have child, abortive be it,

Prodigious, and untimely brought to light,
Whose ugly and unnatural aspect
May fright the hopeful mother at the view.
Richard III., Act I., Sc. II.

Why should I joy in any abortive birth?

Love’s Labour’s Lost, Act I., Sc. I.

Truth is truth: large length of seas and shores

Between my father and my mother lay,—
And I have heard my father speak * * *
That this, my mother’s son, was none of his;
And, if he were, he came into the world
Full fourteen weeks before the course of time.
King John, Act I., Sc. I.

Shakespeare has interwoven some of his family history here, and

made the advent of Philip, the Bastard, correspond exactly to the
untimely birth of his eldest daughter Susanna, who appeared only
five and a half months after his marriage—“full fourteen weeks
before the course of time.” Later on in the play we find the
following:

Your brother is legitimate,

Your father’s wife did after wedlock bear him.

—thus furnishing proof of legitimacy in such cases.

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