Cumberlands Ch 10 & 11 Distribution Strategy and Pricing Strategy Discussion After reviewing Chapters 10-11 from the textbook, post a 500-word synopsis of your understanding of the marketing concepts. In your posting, include questions about any marketing concepts that are unclear.Chapter 10: Distribution StrategyChapter 11: Pricing Strategy A Preface
to Marketing
Management
This page intentionally left blank
A Preface
to Marketing
Management
Fourteenth Edition
J. Paul Peter
University of Wisconsin–Madison
James H. Donnelly Jr.
Gatton College of Business and
Economics University of Kentucky
A PREFACE TO MARKETING MANAGEMENT, FOURTEENTH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2015 by McGraw-Hill
Education. All rights reserved. Printed in the United States of America. Previous editions © 2013, 2011, and
2008. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a
database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not
limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the
United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 0 DOW/DOW 1 0 9 8 7 6 5 4
ISBN 978-0-07-786106-3
MHID 0-07-786106-X
Senior Vice President, Products & Markets: Kurt L. Strand
Vice President, General Manager, Products & Markets: Michael Ryan
Vice President, Content Production & Technology Services: Kimberly Meriwether David
Brand Manager: Sankha Basu
Editorial Coordinator: Heather Darr
Marketing Manager: Donielle Xu
Director, Content Production: Terri Schiesl
Lead Content Project Manager: Jane Mohr
Buyer: Laura Fuller
Cover Designer: Studio Montage, St. Louis, MO.
Cover Image: © John Shaw/Getty Images
Media Project Manager: Shawn Coenen
Compositor: Laserwords Private Limited
Typeface: 10/12 Times LT Std.
Printer: R. R. Donnelley
All credits appearing on page or at the end of the book are considered to be an extension of the copyright page.
Library of Congress Cataloging-in-Publication Data
Peter, J. Paul.
A preface to marketing management / J. Paul Peter, University of Wisconsin-Madison, James H. Donnelly,
Jr., Gatton College of Business and Economics, University of Kentucky.–Fourteenth edition.
pages cm
ISBN 978-0-07-786106-3 (alk. paper)
1. Marketing–Management. I. Donnelly, James H. II. Title.
HF5415.13.P388 2013
658.8–dc23
2013046644
The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does
not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not
guarantee the accuracy of the information presented at these sites.
www.mhhe.com
To Rose and Angie
J. Paul Peter
To Gayla
Jim Donnelly
About the Authors
J. Paul Peter
has been a faculty member at the University of Wisconsin since 1981. He was a member
of the faculty at Indiana State, Ohio State, and Washington University before joining the
Wisconsin faculty. While at Ohio State, he was named Outstanding Marketing Professor
by the students and has won the John R. Larson Teaching Award at Wisconsin. He has
taught a variety of courses including Marketing Management, Marketing Strategy, Consumer Behavior, Marketing Research, and Marketing Theory, among others.
Professor Peter’s research has appeared in the Journal of Marketing, the Journal of
Marketing Research, the Journal of Consumer Research, the Journal of Retailing, and the
Academy of Management Journal, among others. His article on construct validity won the
prestigious William O’Dell Award from the Journal of Marketing Research, and he was a
finalist for this award on two other occasions. Recently, he was the recipient of the Churchill
Award for Lifetime Achievement in Marketing Research, given by the American Marketing
Association and the Gaumnitz Distinguished Faculty Award from the School of Business,
University of Wisconsin–Madison. He is an author or editor of over 30 books, including A
Preface to Marketing Management, Fourteenth edition; Marketing Management: Knowledge
and Skills, ninth edition; Consumer Behavior and Marketing Strategy, ninth edition; Strategic
Management: Concepts and Applications, third edition; and Marketing: Creating Value for
Customers, second edition. He is one of the most cited authors in the marketing literature.
Professor Peter has served on the review boards of the Journal of Marketing, Journal of Marketing Research, Journal of Consumer Research, and Journal of Business
Research and was measurement editor for JMR and professional publications editor for the
American Marketing Association. He has taught in a variety of executive programs and
consulted for several corporations as well as the Federal Trade Commission.
James H. Donnelly Jr.
has spent his academic career in the Gatton College of Business and Economics at the
University of Kentucky. In 1990 he received the first Chancellor’s Award for Outstanding
Teaching given at the university. Previously, he had twice received the UK Alumni Association’s Great Teacher Award, an award one can only be eligible to receive every 10 years. He
has also received two Outstanding Teacher awards from Beta Gamma Sigma, national business honorary. In 1992 he received an Acorn Award recognizing “those who shape the future”
from the Kentucky Advocates for Higher Education. In 2001 and 2002 he was selected as
“Best University of Kentucky Professor.” In 1995 he became one of six charter members
elected to the American Bankers Association’s Bank Marketing Hall of Fame. He has also
received a “Distinguished Doctoral Graduate Award” from the University of Maryland.
During his career he has published in the Journal of Marketing Research, Journal of
Marketing, Journal of Retailing, Administrative Science Quarterly, Academy of Management Journal, Journal of Applied Psychology, Personnel Psychology, Journal of
Business Research, and Operations Research among others. He has served on the editorial review board of the Journal of Marketing. He is the author of more than a dozen
books, which include widely adopted academic texts as well as professional books.
Professor Donnelly is very active in the banking industry where he has served on the board
of directors of the Institute of Certified Bankers and the ABA’s Marketing Network. He has
also served as academic dean of the ABA’s School of Bank Marketing and Management.
vi
Preface
We are proud to introduce the fourteenth edition of A Preface to Marketing Management.
Our plan has always been to deliver a clear and concise presentation of the basic principles of marketing in such a way that the core concepts and ideas are covered in sufficient
depth to ensure in-depth understanding. By offering an engaging, clear, and conceptually sound text, our book has been able to maintain its position as a leading marketing
management text.
Throughout the history of the book, feedback from both students and instructors has
suggested that our plan is a good one. Our book has been used in a wide variety of settings and is the best-selling book of its kind. We introduce the fourteenth edition knowing
that our book and its eight foreign translations have been used around the world whenever
courses require an overview of the critical aspects of marketing management.
With this edition, we seek to more effectively implement our plan by building on a
strong foundation, maintaining the attributes and elements of the book that make it a very
teachable text, updating existing content, adding new content, and focusing the presentation. We seek to emphasize quality content and examples and avoid excess verbiage, pictures, and description.
As usual, each time we revise the book there is an emphasis on responding to feedback
from students and instructors. These two constituencies plus our own intuitions drive each
revision. Marketing is an exciting and dynamic field of study. We want to capture the
sense of excitement and at the same time respect its history.
Our book has become known simply as the Preface. We want to believe a major reason
it has endured is that because marketing is figuring out how to do a superior job of satisfying customers, we simply try to practice what we preach. Welcome to the Preface.
THE PRESENT EDITION
Every element of content in our book is designed with one thought in mind: to assist students in analyzing marketing problems and cases and developing and writing marketing
plans. Section I of the book consists of 13 concise chapters that cover the essentials of marketing management. We think of it as the “must know” content of the field. It is divided
into four parts that focus on strategic planning and marketing planning, understanding target markets, the marketing mix, and marketing in special fields. These 13 chapters should
provide students a clear understanding of the terminology, techniques, tools, and strategies
for effective marketing management and marketing strategy development.
In addition to revising and updating the text chapters, this edition contains new content as
well. There are discussions of internal and external secondary data sources, the use of social
media monitoring, alternative search in consumer behavior, key characteristics of organizational buyers, e-procurement, global virtual teams, brand equity, using distinctive competencies in new product development, consumer databases, business-to-business databases,
mobile marketing, online retailing and multichannel marketing, franchising, the effects of
the Internet on pricing, global account managers, and learning about different cultures.
In the twelfth edition, we altered two of the text elements. The changes have been well
received by instructors and students. First, “Marketing Insights” are included to assist students
as they solve marketing problems, analyze marketing cases, and develop marketing plans.
Second, we know that our book is often used with case problems, writing assignments,
and constructing marketing plans. Accordingly, there is an “Additional Resources” section
vii
viii
Preface
at the end of each chapter. Our purpose is to highlight current resources that students can
use in writing assignments and oral presentations. The resources have been selected with
students in mind. They include resources accessible to students at various stages of marketing education given the wide spectrum of courses in which the book is utilized.
NEW FEATURES AND CONTENT CHANGES
Chapter 1: Strategic Planning and The Marketing Management
Process
• Revised basic questions that must be asked when developing a mission statement.
• Marketing Insight 1-3 now contains five actual mission statements for firms of varying
sizes and industries. It provides students with a better mix of alternatives when completing the exercise in Marketing Insight 1-4.
• Updated additional resources.
Chapter 2: Marketing Research: Process and Systems for Decision
Making
• Revised section on secondary data to include both internal and external sources
• Added new figure “Common Types of Information Available in a Secondary Data
Search”
• Added a new Marketing Insight, “Social Media Monitoring for Marketing Insights”
• Updated additional resources
Chapter 3: Consumer Behavior
• Updated discussion of consumer and marketer reactions to recession
• Revised and updated discussion of Alternative Search
• Updated additional resources
Chapter 4: Business, Government, and Institutional Buying
•
•
•
•
Revised Marketing Insight on “Key Characteristics of Organizational Buying Behavior”
New Marketing Insight, “Organizational Buying on the Internet: E-Procurement”
Revised Discussion of “Organizational Needs”
Updated additional resources
Chapter 5: Market Segmentation
• New Marketing Insight, “Segmenting the Mobile Phone Market”
• Revised and updated discussion of VALS
Chapter 6: Product and Brand Strategy
• Marketing Insight 6-3 now contains the latest information on the value of the top twenty
brands in the world
• Contains a new section on branding and brand equity
• Revised and updated Marketing Insight 6-6
• Added a new section on global virtual teams
• New key terms and concepts
• Updated additional resources
Preface ix
Chapter 7: New Product Planning and Development
• New Marketing Insight 7-4 which focuses on utilizing corporate strengths in the new
product development process. It includes eight firms with strengths in either technology or markets
• Updated additional resources
Chapter 8: Integrated Marketing Communications
• Revised Marketing Insight 8-1 which presents up-to-date information on the top ten
websites in Brazil, Portugal and South Korea
• Revised section on direct marketing as part of the promotion mix
• Revised Marketing Insight 8-6
• New section on direct marketing
• New Marketing Insight 8-7 on the contents of a comprehensive database included are
both consumer and business-to-business databases
• Added new Key Terms and Concepts
• Updated additional resources
Chapter 9: Personal Selling, Relationship Building, and Sales
Management
• New Marketing Insight 9-1 which focuses on what a salesperson actually does
• A new discussion of an increasingly important customer organization structure, the
global account manager
• Added new Key Terms and Concepts
• Updated additional resources
Chapter 10: Distribution Strategy
•
•
•
•
Added New Marketing Insight, “Advantages and Disadvantages of Franchising”
New section on “Online and Mobile Retailing”
Updated additional resources
New “Key Terms and Concepts”: online retailing, mobile retailing, multichannel marketing
Chapter 11: Pricing Strategy
• Added a new discussion of the Internet as an external influence on pricing decisions
• A new Marketing Insight, “Ten Tips for Managing Pricing Strategy”
Chapter 12: The Marketing of Services
• The chapter has been significantly revised and has been shortened for this edition
• A new section on the importance of all the elements of the marketing mix in the marketing of services has been added
• Updated additional resources
Chapter 13: Global Marketing
• Marketing Insight 13-1 has been updated with the latest data on selected U.S. companies
and their international sales
• The section on cultural misunderstanding as a problem in foreign markets has been
replaced with an entirely new section
x Preface
• Marketing Insight 13-3 has been replaced with a new Marketing Insight which focuses
on ways to learn about new cultures
• Updated additional resources
Section II: Analyzing Marketing Problems and Cases
• New Marketing Insight, “Objectives of Case Analysis”
• Revised and updated discussion of SWOT analysis
• Updated additional resources
Section III: Financial Analysis for Marketing Decisions
• Updated dates and additional resources
Section IV: Developing Marketing Plans
• Updated dates and additional resources
STUDENT SUPPORT
Knowing that our book is used for a variety of course levels, programs, and students, we
have assembled several elements that we believe will support students for whatever purpose they use our book.
Key Terms and Concepts
New to the previous edition, we decided to add a section of key terms and concepts at the
conclusion of each chapter. There was much debate as to where they should be placed in
the book. We decided to place them at the end of the chapter in which they appear. In this
way, they are more visible to students than as an appendix at the end of the book. More
than a glossary, it also presents key concepts covered in the chapter.
Analyzing Marketing Problems and Cases
Section II presents a very practical and comprehensive framework for analyzing, preparing, and presenting case analyses. It includes discussions of what a case is, preparing for
the class discussion and written analysis, pitfalls to avoid in case analysis, and preparing
to do an oral presentation. It has been praised by both instructors and students.
For courses utilizing marketing problems and cases, we encourage students to read this
guide before discussing a problem or case. Thus, it could have been placed at the beginning of the book, but because it is often referred to throughout the semester, we have
placed it after the text chapters. And for those courses that do not utilize cases, the book
may be used without reference to this section.
Financial Analysis for Marketing Decisions
It is absolutely critical for marketing students to understand and appreciate the fact that
the ultimate objectives of marketing are usually expressed in financial terms. Section III
enables students to assess a company’s financial position. It presents important financial
calculations that are useful in evaluating the financial position of a firm and the financial
impact of various decisions and strategies. Included are discussions of breakeven analysis,
net present value, and ratio analysis.
Developing Marketing Plans
Given the purpose of this book and the needs of users, Section IV enables students to
develop practical planning skills so they are able to construct a quality marketing plan for
Preface xi
any product or service. It provides a complete format for structuring and presenting one,
including specific questions to ask in competitive analysis, the development of well-stated
objectives, analyzing customers, and implementation and control. As with Section II, we
know that this section has become a valuable take-away resource for many students long
after their course has been completed.
A Value-Added Website
We encourage students to view the student section of the Online Learning Center (OLC)
at website www.mhhe.com/peterdonnelly14e, which contains a number of useful aids for
facilitating learning and supporting student achievement. We believe you will find it a
useful resource.
INSTRUCTOR SUPPORT
The Preface has been used as a resource in college courses and professional development
programs that require an overview of the critical “need-to-know” aspects of marketing
management and marketing strategy development. It has been used:
• As the primary introductory text at the undergraduate level.
• At both the undergraduate and MBA level, where several AACSB core curriculum
courses are team-taught as one multidisciplinary 9- to 12-hour course.
• At the advanced undergraduate and MBA level where it is used as the content foundation in courses that utilize marketing cases.
• In short courses and executive development programs.
The instructor section of www.mhhe.com/peterdonnelly14e includes an instructor’s
manual and other support material. It includes two expanded supplements. They were
developed in response to instructors’ requests. We offer a test bank of nearly 1,300
multiple-choice, true-false, and brief essay questions. It is available in both print and
EZ Test Online. We also offer Power Point slides that highlight key text material. Your
McGraw-Hill representative can also assist in the delivery of any additional instructor
support material.
Acknowledgments
Our book is based on the works of many academic researchers and marketing practitioners.
We want to thank those individuals who contributed their ideas to develop the field of marketing throughout the years. Indeed, our book would not be possible without their contributions. We would also like to thank our teachers, colleagues, and students for their many
contributions to our education. We would also like to publicly acknowledge those individuals who served as reviewers of this and previous editions. We appreciate their advice and
counsel and have done our best to reflect their insightful comments.
xii
Roger D. Absmire
Sam Houston State University
Anna Andriasova
University of Maryland University College
Catherine Axinn
Syracuse University
Mike Ballif
University of Utah
Andrew Bergstein
Pennsylvania State University
Edward Bond
Bradley University
Donald Brady
Millersville University
Tim Carlson
Judson University
…
Purchase answer to see full
attachment
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.