Fluent Essays

This activity/assignment will help students understand concept of targeting and its importanceActivity: Choose a product that you would like to introduce in the market. Create a profile of your target market and to discuss the reasons for choosing this market.instructions:The assignment is to answer the question provided above in essay form. This is to be in narrative form and should be as thorough as possible. Bullet points should not to be used. The paper should be at least 1.5 - 2 pages in length, Times New Roman 12-pt font, double-spaced, 1 inch margins and utilizing at least one outside scholarly or professional source related to marketing management. The textbook should also be utilized. Do not insert excess line spacing. APA formatting and citation should be used. marketing_management_5e__dawn_iacobucci.pdf Unformatted Attachment Preview Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN, author, title, or keyword for materials in your areas of interest. Important notice: Media content referenced within the product description or the product text may not be available in the eBook version. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Marketing Management, Fifth Edition Dawn Iacobucci Senior Vice President, General Manager, Social Sciences, Humanities & Business: Erin Joyner Product Director: Jason Fremder Product Manager: Heather Mooney Content Developer: John Sarantakis Marketing Director: Kristen Hurd Marketing Manager: Katie Jergens © 2018, 2015 Cengage Learning® ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced or distributed in any form or by any means, except as permitted by U.S. copyright law, without the prior written permission of the copyright owner. For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Further permissions questions can be emailed to permissionrequest@cengage.com Marketing Coordinator: Casey Binder Product Assistant: Allie Janneck Art and Cover Direction, Production Management, and Composition: Cenveo Publisher Services Intellectual Property Analyst: Diane Garrity Project Manager: Sarah Shainwald Manufacturing Planner: Ron Montgomery Library of Congress Control Number: 2016943749 ISBN-13: 978-1-337-27112-7 Except where otherwise noted, all content is © Cengage Learning. Cengage Learning 20 Channel Center Street Boston, MA 02210 USA Cover Image(s): Santiago Cornejo/ Shutterstock, Mukhina Viktoriia/Shutterstock, Nomad_Soul/Shutterstock, Redchanka/ Shutterstock, Bespaliy/ Shutterstock, hxdbzxy/Shutterstock, Quayside/Shutterstock, Cyrustr/ Shutterstock, Subbotina Anna/ Cengage Learning is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world. Find your local representative at: www.cengage.com Cengage Learning products are represented in Canada by Nelson Education, Ltd. Shutterstock, elen_studio/Shutterstock To learn more about Cengage Learning Solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com Printed in Canada Print Number: 01 Print Year: 2016 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 BRIEF CONTENTS Preface x About the author xii Part 1 Part 2 Part 3 Marketing Strategy 1 Why is Marketing Management Important? 1 2 Customer Behavior 3 Segmentation 32 4 Targeting 51 5 Positioning 63 13 Product Positioning 6 Products: Goods and Services 79 7 Brands 91 8 New Products and Innovation 109 Positioning via Price, Place, and Promotion 9 Pricing 131 10 Channels of Distribution 161 11 Advertising Messages and Marketing Communications 185 12 Integrated Marketing Communications and Media Choices 205 13 Social Media 224 Part 4 Positioning: Assessment Through the Customer Lens 14 Customer Satisfaction and Customer Relationships 239 15 Marketing Research Tools 256 Part 5 Capstone 16 Marketing Strategy 275 17 Marketing Plans 293 Endnotes 312 Index 316 iii Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 CONTENTS Preface x About the author xii Part 1 Marketing Strategy 1 Why Is Marketing Management Important? 1 1-1 Defining Marketing 1 1-2 Marketing Is an Exchange Relationship 1 1-2a Marketing is Everywhere 2 1-3 Why Is Marketing Management Important? 2 1-3a Marketing and Customer Satisfaction is Everyone’s Responsibility 4 1-4 The “Marketing Framework”: 5Cs, STP, and the 4Ps 5 1-4a Book Layout 7 1-4b Learning from the Marketing Framework 8 1-4c The Flow in Each Chapter: What? Why? How? 9 2 Customer Behavior 13 2-1 Three Phases of the Purchase Process 13 2-2 Different Kinds of Purchases 15 2-3 The Marketing Science of Customer Behavior 18 2-3a Sensation and Perception 18 2-3b Learning, Memory, and Emotions 20 2-3c Motivation 22 2-3d Attitudes and Decision Making 25 2-3e How Do Cultural Differences Affect Consumers’ Behavior? 27 3 Segmentation 32 3-1 Why Segment? 32 3-2 What Are Market Segments? 33 3-3 What Information Serves as Bases for Segmentation? 35 3-3a Demographic 35 3-3b Geographic 36 3-3c Psychological 37 3-3d Behavioral 39 3-3e B2B 40 3-3f Concept in Action: Segmentation Variables 41 iv Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Contents 3-4 How Do Marketers Segment the Market? 42 3-4a How to Evaluate the Segmentation Scheme 42 4 Targeting 51 4-1 What Is Targeting and Why Do Marketers Do It? 51 4-2 How Do We Choose a Segment to Target? 52 4-2a Profitability and Strategic Fit 52 4-2b Competitive Comparisons 54 4-3 Sizing Markets 56 4-3a Concept in Action: How Much of My Consultative Advice Can I Sell? 58 5 Positioning 63 5-1 What Is Positioning and Why Is It Probably the Most Important Aspect of Marketing? 63 5-1a Positioning via Perceptual Maps 64 5-1b The Positioning Matrix 66 5-2 Writing a Positioning Statement 74 Part 2 Product Positioning 6 Products: Goods and Services 79 6-1 What Do We mean by Product? 79 6-1a The Product in the Marketing Exchange 80 6-2 How Are Goods Different from Services? 81 6-2a Intangibility 81 6-2b Search, Experience, Credence 82 6-2c Perishability 83 6-2d Variability 83 6-2e To Infinity and Beyond Goods and Services 84 6-3 What Is the Firm’s Core Market Offering? 84 6-3a Dynamic Strategies 86 6-3b Product Lines: Breadth and Depth 87 7 Brands 91 7-1 What Is a Brand? 91 7-1a Brand Name 92 7-1b Logos and Color 92 7-2 Why Brand? 93 7-3 What Are Brand Associations? 95 7-3a Brand Personalities 97 7-3b Brand Communities 98 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 v vi Contents 7-4 What Are Branding Strategies? 98 7-4a Umbrella Brands vs. House of Brands 99 7-4b Brand-Extensions and Co-Branding 100 7-4c How are Brands Best Rolled Out Globally? 103 7-4d Store Brands 103 7-5 How Is Brand Equity Determined? 104 8 New Products and Innovation 109 8-1 Why Are New Products Important? 109 8-2 How Does Marketing Develop New Products for Their Customers? 110 8-2a Philosophies of Product Development 110 8-2b Marketing 111 8-2c Idea Creation and Market Potential 112 8-2d Concept Testing and Design & Development 113 8-2e Beta-Testing 115 8-2f Launch 116 8-3 What Is the Product Life Cycle? 118 8-3a Diffusion of Innovation 120 8-4 How Do New Products and Brand Extensions Fit in Marketing Strategy? 124 8-4a Strategic Thinking about Growth 125 8-5 What Trends Should I Watch? 126 Part 3 Positioning via Price, Place, and Promotion 9 Pricing 131 9-1 Why Is Pricing so Important? 131 9-2 Background: Supply and Demand 131 9-3 Low Prices 136 9-3a Concept in Action: Break-Even for a Good 137 9-3b Concept in Action: Break-Even for a Service 139 9-4 High Prices 142 9-4a Using Scanner Data 142 9-4b Using Survey Data 144 9-4c Conjoint Analysis 144 9-5 Units or Revenue; Volume or Profits 145 9-6 Customers and the Psychology of Pricing 147 9-6a Price Discrimination, a.k.a. Segmentation Pricing 150 9-6b Quantity Discounts 151 9-6c Yield or Demand Management 152 9-7 Non-Linear Pricing 152 9-8 Changes in Cha-Ching 154 9-8a Pricing and the Product Life Cycle 154 9-8b Price Fluctuations 155 9-8c Coupons 155 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Contents 9-8d Competitive Strategy and Game Theory 155 9-8e Auctions 156 10 Channels of Distribution 161 10-1 What Are Distribution Channels, Supply Chain Logistics, and Why Do We Use Them? 162 10-2 How to Design Smart Distribution Systems: Intensive or Selective? 165 10-2a Push and Pull 167 10-3 Power and Conflict in Channel Relationships 168 10-3a Revenue Sharing 170 10-3b Integration 173 10-3c Retailing 175 10-3d Franchising 178 10-3e E-Commerce 179 10-3f Catalog Sales 180 10-3g Sales Force 181 10-3h Integrated Marketing Channels 182 11 12 Advertising Messages and Marketing Communications 185 11-1 What Is Advertising? 187 11-2 Why Is Advertising Important? 187 11-3 What Marketing Goals Are sought from Advertising Campaigns? 188 11-4 Designing Advertising Messages to Meet Marketing and Corporate Goals 190 11-4a Cognitive Ads 191 11-4b Emotional Ads 193 11-4c Image Ads 195 11-4d Endorsements 196 11-5 How Is Advertising Evaluated? 198 11-5a Aad and Abrand 201 Integrated Marketing Communications and Media Choices 205 12-1 What Media Decisions Are Made in Advertising Promotional Campaigns? 205 12-1a Reach and Frequency and GRPs 207 12-1b Media Planning and Scheduling 209 12-2 Integrated Marketing Communications Across Media 210 12-2a Media Comparisons 212 12-2b Beyond Advertising 214 12-2c Choice Between Advertising and a Sales Force 215 12-2d The IMC Choices Depend on the Marketing Goals 218 12-3 How Is the Effectiveness of Advertising Media Measured? 220 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 vii viii Contents 13 Social Media 224 13-1 What Are Social Media? 224 13-1a Types of Social Media 225 13-1b Word-of-mouth 226 13-2 What Are Social Networks? 227 13-2a Identifying Influentials 227 13-2b Recommendation Systems 228 13-2c Social Media ROI, KPIs, and Web Analytics 230 13-2d Pre-purchase: Awareness 230 13-2e Pre-purchase: Brand Consideration 231 13-2f Purchase or Behavioral Engagement 232 13-2g Post-purchase 233 13-2h How to Proceed? 234 Part 4 Positioning: Assessment Through the Customer Lens 14 Customer Satisfaction and Customer Relationships 239 14-1 What Are Customer Evaluations, and Why Do We Care? 239 14-2 How Do Consumers Evaluate Products? 240 14-2a Sources of Expectations 241 14-2b Expectation and Experience 243 14-3 How Do Marketers Measure Quality and Customer Satisfaction? 245 14-4 Loyalty and Customer Relationship Management (CRM) 248 14-4a Recency, Frequency, and Monetary Value (RFM) 249 14-4b Customer Lifetime Value (CLV) 251 15 Marketing Research Tools 256 15-1 Why Is Marketing Research so Important? 256 15-2 Cluster Analysis for Segmentation 258 15-3 Perceptual Mapping for Positioning 260 15-3a Attribute-Based 260 15-4 Focus Groups for Concept Testing 264 15-5 Conjoint for Testing Attributes 265 15-6 Scanner Data for Pricing and Coupon Experiments and Brand Switching 268 15-7 Surveys for Assessing Customer Satisfaction 270 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Contents Part 4 Capstone 16 MARKETING STRATEGY 275 16-1 Types of Business and Marketing Goals 275 16-2 Marketing Strategy 278 16-2a Ansoff’s Product-Market Growth Matrix 278 16-2b The BCG Matrix 279 16-2c The General Electric Model 280 16-2d Porter and Strategies 281 16-2e Treacy and Wiersema Strategies 282 16-3 How to “Do” Strategy 283 16-3a SWOT’s S&W 284 16-3b SWOT’s O&T 285 16-4 Key Marketing Metrics to Facilitate Marketing Strategy 17 Marketing Plans 17-1 17-2 17-3 17-4 17-5 287 293 How Do We Put it All Together? 293 Situation Analysis: The 5Cs 294 STP 298 The 4Ps 300 Spending Time and Money 304 Endnotes Index 312 316 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 ix PREFACE There are several really good marketing management texts, yet this text was created because the Cengage sales force recognized an opportunity. Existing texts present numerous lists of factors to consider in a marketing decision but offer little guidance on how the factors, lists and multiple decisions all fit together. In this book, an overarching Marketing Framework, used in every chapter, shows how all the pieces fit together. So, for example, when facing a decision about pricing, readers must consider how pricing will impact a strategic element like positioning or a customer reaction like loyalty and word of mouth. This book is practical, no-nonsense, and relatively short, to further heighten its utility. Everyone is busy these days, so it’s refreshing when a writer gets to the point. After this relatively quick read, MBAs and EMBAs should be able to speak sensibly about marketing issues and contribute to their organizations. Chapter Organization The form of each chapter is very straightforward: The chapter’s concept is introduced by describing what it is and why marketers do it, and the rest of the chapter shows how to do it well. This what-why-and-how structure is intended to be extremely useful to MBA and EMBA students, who will quickly understand the basic concepts, e.g., what is segmentation and why is it useful in marketing and business? The details are in the execution, so the how is the focus of the body of the chapter. Key Features Each chapter opens with a managerial checklist of questions that MBA and EMBA students will be able to answer after reading the chapter. Throughout each chapter, boxes present brief illustrations of concepts in action in the real world or elaborations on concepts raised in the text, also drawing examples from the real business world. Chapters close with a Managerial Recap that highlights the main points of the chapter and reviews the opening checklist of questions. Chapters are also summarized in outline form, including the key terms introduced throughout the chapter. There are discussion questions to ponder, as well as video resources to serve as points for still further discussion. Each chapter contains a Mini-Case that succinctly illustrates key concepts. MindTap The 5th edition of Marketing Management offers two exciting alternative teaching formats. Instructors can choose between either a hybrid print and digital offering or a version that provides completely integrated online delivery through a platform called MindTap. MindTap is a fully online, highly personalized learning experience built upon authoritative x Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Preface content. By combining readings, multimedia, activities, and assessments into a singular Learning Path, MindTap guides students through their course with ease while promoting engagement. Instructors personalize the Learning Path by customizing Cengage Learning resources and adding their own content via apps that integrate into the MindTap framework seamlessly. Instructors are also able to incorporate the online component of Consumer Behavior into a traditional Learning Management System (e.g. Blackboard, Canvas, D2L, etc.) providing a way to manage assignments, quizzes and tests throughout the semester Instructor Resources Web resources for the book at www.cengagebrain.com provide the latest information in marketing management. The Instructor’s Manual, Test Bank authored in Cognero, and PowerPoint slides can be found there. Acknowledgments Cengage Learning’s people are the best! Special thanks to John Sarantakis (Content Developer), Mike Roche (Senior Product Manager), Heather Mooney (Product Manager) Jenny Ziegler (Senior Content Project Manager), Diane Garrity (Intellectual Property Analyst), Sarah Shainwald (Intellectual Property Project Manager) Laura Cheu (Copyeditor), Ezhilsolai Periasamy (Project Manager), Manjula Devi Subramanian (Text Researcher), Abdul Khader (Image Reasearcher), and Pushpa V. Giri (Proofreader). As always, special thanks to the Cengage sales force. I will forever be grateful for your notes of encouragement as we began this project. I hope you like Marketing Management 5. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 xi ABOUT THE AUTHOR DAWN IACOBUCCI is the Ingram Professor of Marketing at the Owen Graduate School of Management, Vanderbilt University (since 2007). She has been Senior Associate Dean at Vanderbilt (2008-2010), and a professor of marketing at Kellogg (Northwestern University, 1987-2004), Arizona (2001-2002), and Wharton (Pennsylvania, 2004 to 2007). She received her M.S. in Statistics, and M.A. and Ph.D. in Quantitative Psychology from the University of Illinois at Urbana-Champaign. Her research focuses on modeling social networks and geeky high-dimensional analyses. She has published in Journal of Marketing, Journal of Marketing Research, Harvard Business Review, Journal of Consumer Psychology, International Journal of Research in Marketing, Marketing Science, Journal of Service Research, Psychometrika, Psychological Bulletin, and Social Networks. Iacobucci teaches Marketing Management and Marketing Models to Executives, MBA and undergraduate students and multivariate statistics and methodological topics to Ph.D. students. She has been editor of both Journal of Consumer Research and Journal of Consumer Psychology. She edited Kellogg on Marketing, she is author of Mediation Analysis, and co-author on Gilbert Churchill’s leading text, Marketing Research. xii Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 WHY IS MARKETING MANAGEMENT IMPORTANT? STP 5Cs Customer Company Context Collaborators 4Ps Segmentation Product Targeting Price Positioning Place Competitors 1 Promotion Managerial Checklist What are the three phases of the buying process? What kinds of purchases are there? How do consumers make purchase decisions—and how can marketers use this information? 1-1 DEFINING MARKETING Ask the average person, “What is marketing?” and they might say: • “Marketing is sales and advertising.” • “Marketers make people buy stuff they don’t need and can’t afford.” • “Marketers are the people who call you while you’re trying to eat dinner.” Unfortunately those comments are probably all deserved. The marketing profession, like any other, has its issues. But in this book we’ll take a more enlightened view. This chapter begins with an overview of marketing concepts and terms. We’ll see the importance of marketing in today’s corporation. We’ll then present the Marketing Framework that structures the book and gives you a systematic way to think about marketing, and we’ll define all the terms in the framework: 5Cs, STP, and 4Ps. 1-2 MARKETING IS AN EXCHANGE RELATIONSHIP Marketing is defined as an exchange between a firm and its customers.1 Figure 1.1 shows the customer wants something from the firm, and the firm wants something from the customer. Marketers try to figure out what customers want and how to provide it profitably. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or ... Purchase answer to see full attachment