Chapter 1: What is Marketing?

Chapter Summary:

In this first chapter, we lay the groundwork for our study of the field of marketing with a look at marketing’s key concepts and the important tasks marketers perform.  Coverage includes a close examination of the definition of marketing.  A dissection of the key terms in the definition shows that marketing’s primary focus is to identify and satisfy customers in a way that helps build a solid and, hopefully, sustained relationship that encourages customers to continue doing business with the marketer.  We also show how marketing has evolved from a process centered on simply getting as many people as possible to purchase a product to today’s highly complex efforts designed to build long-term customer relationships.  Additionally, we’ll see marketing is not only necessary for individual organizations, it also carries both positive and negative influences at a broader societal level.  Finally, we look at the key characteristics that define successful marketers.

Index of Key Issues Covered:

  • Marketing Defined
  • The Marketer’s Toolkit
  • Marketing’s Role
  • Criticisms of Marketing
  • Ethical and Social Concerns
  • The Successful Marketer

Links to Cited References:

  1. For information on the carbon footprint concept and how this impacts business decision-making see: Carbondfund.org Foundationhttps://carbonfund.org.
  2. “Google Analytics.” Googlehttps://analytics.google.com/analytics.
  3. “Google Code of Conduct.” Investor Relations – Alphabethttps://abc.xyz/investor/other/google-code-of-conduct.html.
  4. “Code of Ethics and Standards of Practice.” Canadian Marketing Associationhttps://www.the-cma.org/regulatory/code-of-ethics.
  5. “Support GMO Labeling.” Ben & Jerry’s Ice Creamhttp://www.benjerry.com/GMO.

Chapter 2: Marketing Research

Chapter Summary:

In this chapter, we look at the importance of research in marketing.  We explore what marketing research is and see why it is considered the foundation of marketing.  Our examination includes a detailed look at the key methods marketers use to gather relevant information.  Finally, we look at the trends shaping marketing research.

Key Issues:

  • The Foundation of Marketing
  • Research in Marketing
  • Secondary Research
  • Primary Research
  • Trends in Marketing Research

Links to Cited References:

  1. For more on the different methods of sampling see: “Survey Sampling Methods.” Stat Trekhttp://stattrek.com/survey-research/sampling-methods.aspx.
  2. For an extensive list of links to low-cost secondary research websites see: “Marketing Links.” KnowThis.comhttps://www.knowthis.com/more/marketing-weblinks-collection.
  3. “Google Scholar.” Googlehttps://scholar.google.com.
  4. For an extensive list of links to high-cost secondary research websites see: “Marketing Links.” KnowThis.comhttps://www.knowthis.com/more/marketing-weblinks-collection.
  5. For more on customer engagement see: “Customer Engagement.” Wikipediahttps://en.wikipedia.org/wiki/Customer_engagement.
  6. “Virtual Reality: Looking Toward the Future of Market Research.” EyeFasterhttp://eyefaster.com/virtual-reality-looking-toward-the-future-of-market-research.

Chapter 3: Managing Customers

Chapter Summary:

In this chapter, we explore the techniques marketers use to manage customers.  We begin by defining what a customer is and why they are important to an organization.  We then look at what tools and strategies must be in place to manage customers skillfully, including the crucial requirement that marketers work hard to build relationships with their customers.  Finally, we conclude with a discussion of how servicing customers after the sale is often just as critical as pre-sale marketing efforts.

Key Issues:

  • What is a Customer?
  • Customers and the Organization
  • Challenge of Managing Customers
  • Customer Relationship Management
  • Customer Service and Marketing
  • Trends in Customer Service
  • Customer Service Technologies

Links to Cited References:

  1. For more on customer lifetime value see: “Customer Lifetime Value.” Wikipediahttps://en.wikipedia.org/wiki/Customer_lifetime_value.
  2. For more insight into various types of kiosks see: Kiosk Marketplacehttps://www.kioskmarketplace.com.
  3. For a review of CRM products for small businesses see: Marvin, Rob and Molly K. McLaughlin. “The Best CRM Software of 2017.” PC Magazine, May 30, 2017.  https://www.pcmag.com/article2/0,2817,2367263,00.asp.
  4. For one ranking of customer service for leading organization and industries see: “Temkin Customer Service Ratings.” Temkin Grouphttps://temkingroup.com/temkin-ratings/temkin-customer-service-ratings.
  5. Copp, Emily. “A Beginner’s Guide to Social Media Customer Support.” Hootsuite, January 5, 2017.  https://blog.hootsuite.com/beginners-guide-to-social-customer-support.

Chapter 4: Understanding Customers

Chapter Summary:

In this chapter, we look at how customers make purchase decisions.  We begin with a discussion of customer needs and why understanding this is fundamental to understanding why customers make purchases.  The perspective we take in this chapter is to touch on just the basic concepts that appear to be commonly accepted as influencing customer behavior.  We look at the buying behavior of consumers (i.e., when people buy for personal reasons) and examine factors that influence buyers’ decisions in the business market.

Key Issues:

  • Why Customers Buy
  • What Influences Purchasing
  • Internal Influences
  • External Influences
  • How Customers Buy
  • Consumer Purchase Decisions
  • Business Purchase Decisions

Links to Cited References:

  1. Connick, Wendy. “What is a Gatekeeper?” The Balance, June 07, 2017. https://www.thebalance.com/what-is-a-gatekeeper-2917359.
  2. Kercher, Joey. “Reaching the Unreachable: How Experiential Marketing Targets Brand-Savvy Millennials.” Forbes, June 20, 2017.  https://www.forbes.com/sites/forbesagencycouncil/2017/06/20/reaching-the-unreachable-how-experiential-marketing-targets-brand-savvy-millennials.
  3. For one listing of top social media influencers in different product categories see: “Top Influencers.” Forbes. https://www.forbes.com/top-influencers.
  4. For more on how retailers encourage impulse shopping see: Bianchi, Jessica. “Impulse Buying: How Retailers Can Get Customers to Buy More on the Fly.” Shopify, Aug 2, 2016.  https://www.shopify.com/retail/impulse-buying-how-retailers-can-get-customers-to-buy-more-on-the-fly.
  5. For more on the Netflix recommendation system see: Plummer, Libby. “This is How Netflix’s Top-Secret Recommendation System Works.” Wired, August 22, 2017.  http://www.wired.co.uk/article/how-do-netflixs-algorithms-work-machine-learning-helps-to-predict-what-viewers-will-like.
  6. One estimate by an e-commerce software company, suggests the abandonment rate for online shopping carts exceeds 70%.  For details see: “Cart Abandonment Rate Statistics.” Barilliancehttps://www.barilliance.com/cart-abandonment-rate-statistics.

Chapter 5: Targeting Markets

Chapter Summary:

In this chapter, we examine decisions affecting the selection of target markets.  This is a critical point in marketing planning since all additional marketing decisions are going to be directed toward satisfying customers in the markets selected.  We explore what constitutes a market and look at basic characteristics of consumer and business markets.  We see not all markets are worth pursuing, and marketers are often better served developing a plan identifying specific markets to target.  In particular, we look at the process of market segmentation where larger markets are carved into smaller segments offering more potential.  Our discussion includes methods used to identify markets holding the best potential.  Finally, we discuss the concept of product positioning and see how this fits into target marketing strategy.

Key Issues:

  • What is a Market?
  • Consumer and Business Markets
  • The Need for Target Markets
  • Targeting Markets through Segmentation
  • Positioning Products and Services

Links to Cited References:

  1. “Household Final Consumption Expenditure – 2015.” The World Bankhttp://data.worldbank.org/indicator/NE.CON.PRVT.CD.
  2. “Consumer Expenditures in 2015.” Bureau of Labor Statistics – United States Department of Labor, April, 2017.  https://www.bls.gov/opub/reports/consumer-expenditures/2015/home.htm.
  3. For details on the North American Industry Classification System see: “2017 NAICS Manual.” United States Census Bureau. https://www.census.gov/eos/www/naics.
  4. For details on the International Standard Industrial Classification see: “ICIS Rev. 4.” United Nations Statistics Divisionhttps://unstats.un.org/unsd/cr/registry/isic-4.asp.
  5. Skousen, Mark. “How Much of the Economy is Consumer Spending? Actually Only 30%!” Mark Skousen.com, November 26, 2015.  https://www.markskousen.com/how-much-of-the-economy-is-consumer-spending-actually-only-30.
  6. For a list of links to business directory services websites see: “Marketing Links.” KnowThis.comhttps://www.knowthis.com/more/marketing-weblinks-collection.
  7. While the Ford example is categorized as a good (i.e., car), it is important to understand that mass marketing can also apply to services.  For example,  leading internet and mobile technologies, including Google, Twitter and Facebook, can be classified as mass market products as each of these are freely available to anyone with internet or mobile access.
  8. For an example of a highly segmented product lines see: “Official Store.” Nikehttps://store.nike.com.

Chapter 6: Product Decisions

Chapter Summary:

In this chapter, we define what a product is and look at how products are categorized.  We also take a close look at the key decisions marketers face as they formulate their product offerings.  These decisions may involve what features to include in a product, how a product’s identity is established through branding, important issues in packaging design, and what to consider when labeling products.  We discuss each in detail and see how these impact product strategy.

Key Issues:

  • What is a Product?
  • Categories of Consumer Products
  • Categories of Business Products
  • Components of a Product
  • Key Product Decisions
  • Consumable Product Features
  • Branding
  • Packaging
  • Labeling

Links to Cited References:

  1. For examples of these and many other Ad Council campaigns see: “Our Campaigns.” Ad Councilhttps://www.adcouncil.org/Our-Campaigns.
  2. For more on how internet buying impacts impulse purchasing see: Gasparro, Annie and Haddon, Heather. “Can Food Companies Get People to Make Impulse Purchases Online?” Wall Street Journal, October 15, 2017.  https://www.wsj.com/articles/can-food-companies-get-people-to-make-impulse-purchases-online-1508119561.
  3. “Tire Buying Guide.” Sam’s Clubhttps://www.samsclub.com/sams/pagedetails/content.jsp?pageName=tire-buying-guide
  4. For a listing of all products see: “Our Brands.”  Procter & Gamblehttps://us.pg.com/our-brands.
  5. For more on intellectual property see: “Intellectual Property (IP) Policy.” United States Patent and Trademark Officehttps://www.uspto.gov/intellectual-property-ip-policy
  6. For examples of excellence in packaging and labeling around the world see: The Dielinehttp://www.thedieline.com.

Chapter 7: Managing Products

Chapter Summary:

In this chapter, we extend the coverage of product decisions by exploring additional product issues facing the marketer.  First, we look at how companies structure their product offerings and identify the scope of a marketing manager’s responsibilities within this structure.  Second, we spend a large part of this chapter covering the importance of new product development, including an analysis of the steps organizations may follow to bring new products to market.  Finally, we show that once new products have been established in the market numerous factors force the marketer to adjust its product decisions.  As part of this, we examine the concept of the Product Life Cycle and see how it offers valuable insight and guidance for new product decisions.

Key Issues:

  • Structure of Product Management
  • Managing New Products
  • Categories of New Products
  • New Product Development Process
  • Managing Existing Products
  • The Product Life Cycle

Links to Cited References:

  1. “Laundry Detergent and Fabric Care Products – Tide,” Procter & Gamblehttps://tide.com.
  2. “What We Do.” BIChttps://www.bicworld.com/en/our-products/what-we-do.
  3. For more on the Nickelodeon business model see: “Nickelodeon.” Wikipedia. https://en.wikipedia.org/wiki/Nickelodeon.
  4. For amusing examples of knockoff products see: “The 50 Funniest Knockoff Brands Ever.” WorldWideInterWebhttps://worldwideinterweb.com/knockoff-brands-funny.
  5. One U.S. city that marketers often select for a test market is Columbus, Ohio.  For background on why Columbus is a popular test market location see: Sullivan, Michelle. “How Columbus Became America’s Test Market.” Columbus Monthly, January 2015.  http://www.columbusmonthly.com/content/stories/2015/01/how-columbus-became-americas-test-market.html.
  6. Rogers, Everett. M. Diffusion of Innovation. 5th ed. The Free Press, 2003.
  7. For more on why toys are especially prone to being fad products see: Sohn, Emily. “Why Do Children Love Those Fad Toys So?” National Public Radio, May 10, 2017.  https://www.npr.org/sections/health-shots/2017/05/10/527769527/why-do-children-love-those-fad-toys-so.
  8. Moore, Geoffrey. Crossing the Chasm. 3rd ed. HarperBusiness, 2014.

Chapter 8: Distribution Decisions

Chapter Summary:

In this chapter, we cover the basics of distribution, including defining what channels of distribution are, examining the key functions and parties within a distribution system, and evaluating the role distribution serves within the overall marketing strategy.  Also, we look at the major types of channel arrangements and the factors affecting the creation of effective distribution channels.  We conclude with a discussion of different distribution design options and look at the issues global marketers face when distributing beyond their home country.

Key Issues:

  • Importance of Distribution
  • Distribution Activities
  • Type of Channel Members
  • Why Distribution Help is Needed
  • Channel Arrangements
  • Factors in Creating Distribution Channels
  • Overall Distribution Design
  • Distribution in Global Markets

Links to Cited References:

  1. To learn more about industrial distributors and to see a listing of the top companies see: “MDM Market Leaders – Top 40 Industrial Distributors.” Modern Distribution Managementhttps://www.mdm.com/2017-top-industrial-distributors.
  2. For more information on agents and brokers see Wholesale Formats in Chapter 10.
  3. While L.L. Bean offers free product shipment in the U.S., it may take several days for delivery to occur.  Delivery can be faster with their express shipping option though this will cost the customer.
  4. For more see: “Shipping and Handling to the US.” L.L. Beanhttps://www.llbean.com/llb/shop/514129?nav=ftlink-514129.
  5. For an example of services and support offered by a wholesaler to independent retail customers see: “Services.”  C&S Wholesale Grocershttp://www.cswg.com/services.
  6. For more details on Walmart’s requirements for potential suppliers see: “Suppliers.” Walmarthttp://corporate.walmart.com/suppliers.
  7. Potential channel conflict can be seen in this story in which existing automotive dealers are concerned with a manufacturer’s plan to expand distribution by adding more dealers: Vellequette, Larry P. “FCA’s Plan to Add Stores Riles Dealers.” Automotive News,  February 6, 2017.  http://www.autonews.com/article/20170206/RETAIL/302069927/fcas-plan-to-add-stores-riles-dealers.
  8. For more on the identifying gray market goods and potential ramifications see: “Gray Market Goods.” Better Business Bureau – New Yorkhttps://www.bbb.org/new-york-city/get-consumer-help/articles/gray-market-goods.

Chapter 9: Retailing

Chapter Summary:

In this chapter, we begin our discussion of resellers by examining the role retailers serve in reselling a marketer’s products.  We begin by setting out reasons why selecting resellers is an important decision that should not be taken lightly.  We then turn our attention to a detailed look at retailing, which in terms of sales volume and number of employees is one of the largest sectors of most economies.  We show that retailing is quite diverse, and marketers, who want to distribute through retailers, must be familiar with the differences that exist among different retail options.  The chapter concludes with a look at the key concerns facing today’s retailers.

Key Issues:

  • Importance of Resellers
  • What is Retailing?
  • Benefits of Retailers
  • Ways to Categorize Retailers
  • Retail Formats
  • Concerns of Retailers

Links to Cited References:

  1. “2012 Economic Census for Retail Trade,” United States Census Bureauhttps://www.census.gov/data/tables/2012/econ/census/retail-trade.html.
  2. For a list of top franchises see: “Franchise Top 500 Ranking.” Entrepreneur Magazinehttp://www.entrepreneur.com/franchise500/index.html.
  3. For the purpose of this discussion, we also include many kiosks under the vending category. To learn more about advanced vending machines or kiosks see: Kiosk Marketplacehttps://www.kioskmarketplace.com.
  4. RFID tags or radio frequency identification tags can be attached to products and contain digital data that emit radio waves readable by tracking devices.  These tags can then be used to track product movement.  For more information on RFID tags see: “How Does RFID Work?” American Barcode and RFIDhttp://www.abr.com/what-is-rfid-how-does-rfid-work.

Chapter 10: Wholesaling and Product Movement

Chapter Summary:

In this chapter, we first examine another reselling group – wholesalers – and see how they come into play when a marketer attempts to reach the final customer.  We show wholesalers exist in many formats, affect a wide range of industries, and offer different sets of features and benefits depending on the markets they serve.  In the second half of the chapter, we examine the tasks that must be carried out in order to physically move products to customers.  In some cases, the marketer will take on the responsibility of carrying out some functions, while other tasks may be assigned to distribution service providers.  Whether handled by the marketer or contracted to others, these functions are crucial to having a cost-effective and efficient distribution system.  It is worth noting that while most product movement is concerned with moving tangible products, some of the issues covered here are also applicable to intangible products, such as services, and to digital products.

Key Issues:

  • What is Wholesaling?
  • Benefits of Wholesalers
  • Ways to Categorize Wholesalers
  • Wholesale Formats
  • Managing Product Movement
  • Ordering and Inventory Management
  • Transportation
  • Product Storage

Links to Cited References:

  1. “2012 Economic Census.” United States Census Bureauhttps://www.census.gov/data/tables/2012/econ/census/wholesale-trade.html.
  2. “Market for Electricity.” PJMhttps://learn.pjm.com/electricity-basics/market-for-electricity.aspx.
  3. Both small general retailers (e.g., neighborhood convenience stores) and specialty retailers (e.g., clothing stores), will often purchase from a variety of wholesalers.  For instance, some retailers may look to websites such as Wholesale Central, which provides information on over 1,000 wholesalers listed in over 50 product categories.  http://www.wholesalecentral.com.
  4. Christ, Paul. “Patenting Marketing Methods:  A Missing Topic in the Classroom.” Journal of Marketing Education. 27 (1), 2005.
  5. For more details see: “About Placing Orders with Alexa.” Amazonhttps://www.amazon.com/gp/help/customer/display.html?nodeId=201807210.
  6. Values do not add to 100% as is does not include combination shipping, including intermodal, and other shipping methods.
  7. “2012 Commodity Flow Survey.” Bureau of Transportation Statistics – U.S. Department of Transportationhttps://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/commodity_flow_survey/2012/united_states/index.html.
  8. For information on various technologies and equipment used in warehouses see: “Warehouse.” Modern Materials Handlinghttp://www.mmh.com/topic/category/warehouse.
  9. Bray, Hiawatha. “Robots Taking Over in Warehouses.” Boston Globe, May 01, 2017.  https://www.bostonglobe.com/business/2017/05/01/robots-taking-over-warehouses/PV9i4ZDvBc9mtHSSAvRGjJ/story.html