Marketing Principles
v. 2.0
,This is the book Marketing Principles (v. 2.0).
This book is licensed under a Creative Commons by-nc-sa 3.0 (http://creativecommons.org/licenses/by-nc-sa/
3.0/) license. See the license for more details, but that basically means you can share this book as long as you
credit the author (but see below), don't make money from it, and do make it available to everyone else under the
same terms.
This book was accessible as of December 29, 2012, and it was downloaded then by Andy Schmitz
(http://lardbucket.org) in an effort to preserve the availability of this book.
Normally, the author and publisher would be credited here. However, the publisher has asked for the customary
Creative Commons attribution to the original publisher, authors, title, and book URI to be removed. Additionally,
per the publisher's request, their name has been removed in some passages. More information is available on this
project's attribution page (http://2012books.lardbucket.org/attribution.html?utm_source=header).
For more information on the source of this book, or why it is available for free, please see the project's home page
(http://2012books.lardbucket.org/). You can browse or download additional books there.
ii
,Table of Contents
About the Authors................................................................................................................. 1
Acknowledgments................................................................................................................. 3
Preface..................................................................................................................................... 5
Chapter 1: What Is Marketing? .......................................................................................... 7
Defining Marketing........................................................................................................................................ 8
Who Does Marketing?.................................................................................................................................. 17
Why Study Marketing? ................................................................................................................................ 21
Themes and Organization of This Book..................................................................................................... 26
Discussion Questions and Activities........................................................................................................... 33
Chapter 2: Strategic Planning .......................................................................................... 36
The Value Proposition ................................................................................................................................. 37
Components of the Strategic Planning Process ........................................................................................ 40
Developing Organizational Objectives and Formulating Strategies ....................................................... 52
Where Strategic Planning Occurs within Firms ....................................................................................... 58
Strategic Portfolio Planning Approaches .................................................................................................. 62
Discussion Questions and Activities........................................................................................................... 67
Chapter 3: Consumer Behavior: How People Make Buying Decisions ..................... 69
Factors That Influence Consumers’ Buying Behavior .............................................................................. 72
Low-Involvement Versus High-Involvement Buying Decisions and the Consumer’s Decision-Making
Process .......................................................................................................................................................... 95
Discussion Questions and Activities......................................................................................................... 105
Chapter 4: Business Buying Behavior........................................................................... 107
The Characteristics of Business-to-Business (B2B) Markets ................................................................. 108
Types of B2B Buyers................................................................................................................................... 113
Buying Centers ........................................................................................................................................... 120
Stages in the B2B Buying Process and B2B Buying Situations .............................................................. 126
International B2B Markets and E-commerce .......................................................................................... 133
Ethics in B2B Markets ................................................................................................................................ 140
Discussion Questions and Activities......................................................................................................... 144
iii
, Chapter 5: Market Segmenting, Targeting, and Positioning................................... 147
Targeted Marketing versus Mass Marketing .......................................................................................... 148
How Markets Are Segmented ................................................................................................................... 156
Selecting Target Markets and Target-Market Strategies ...................................................................... 177
Positioning and Repositioning Offerings................................................................................................. 184
Discussion Questions and Activities......................................................................................................... 188
Chapter 6: Creating Offerings ........................................................................................ 190
What Composes an Offering? .................................................................................................................... 191
Types of Consumer Offerings.................................................................................................................... 202
Types of Business-to-Business (B2B) Offerings....................................................................................... 207
Branding, Labeling, and Packaging .......................................................................................................... 212
Managing the Offering .............................................................................................................................. 218
Discussion Questions and Activities......................................................................................................... 221
Chapter 7: Developing and Managing Offerings ........................................................ 223
The New Offering Development Process ................................................................................................. 225
Managing New Products: The Product Life Cycle ................................................................................... 235
Discussion Questions and Activities......................................................................................................... 249
Chapter 8: Using Marketing Channels to Create Value for Customers ................. 252
Marketing Channels and Channel Partners ............................................................................................ 253
Typical Marketing Channels ..................................................................................................................... 263
Functions Performed by Channel Partners ............................................................................................. 274
Marketing Channel Strategies .................................................................................................................. 279
Channel Dynamics...................................................................................................................................... 285
Discussion Questions and Activities......................................................................................................... 293
Chapter 9: Using Supply Chains to Create Value for Customers ............................ 295
Sourcing and Procurement ....................................................................................................................... 298
Demand Planning and Inventory Control ............................................................................................... 306
Warehousing and Transportation ............................................................................................................ 315
Track and Trace Systems and Reverse Logistics..................................................................................... 323
Discussion Questions and Activities......................................................................................................... 327
Chapter 10: Gathering and Using Information: Marketing Research and Market
Intelligence......................................................................................................................... 328
Marketing Information Systems .............................................................................................................. 331
Steps in the Marketing Research Process................................................................................................ 344
Discussion Questions and Activities......................................................................................................... 372
iv
v. 2.0
,This is the book Marketing Principles (v. 2.0).
This book is licensed under a Creative Commons by-nc-sa 3.0 (http://creativecommons.org/licenses/by-nc-sa/
3.0/) license. See the license for more details, but that basically means you can share this book as long as you
credit the author (but see below), don't make money from it, and do make it available to everyone else under the
same terms.
This book was accessible as of December 29, 2012, and it was downloaded then by Andy Schmitz
(http://lardbucket.org) in an effort to preserve the availability of this book.
Normally, the author and publisher would be credited here. However, the publisher has asked for the customary
Creative Commons attribution to the original publisher, authors, title, and book URI to be removed. Additionally,
per the publisher's request, their name has been removed in some passages. More information is available on this
project's attribution page (http://2012books.lardbucket.org/attribution.html?utm_source=header).
For more information on the source of this book, or why it is available for free, please see the project's home page
(http://2012books.lardbucket.org/). You can browse or download additional books there.
ii
,Table of Contents
About the Authors................................................................................................................. 1
Acknowledgments................................................................................................................. 3
Preface..................................................................................................................................... 5
Chapter 1: What Is Marketing? .......................................................................................... 7
Defining Marketing........................................................................................................................................ 8
Who Does Marketing?.................................................................................................................................. 17
Why Study Marketing? ................................................................................................................................ 21
Themes and Organization of This Book..................................................................................................... 26
Discussion Questions and Activities........................................................................................................... 33
Chapter 2: Strategic Planning .......................................................................................... 36
The Value Proposition ................................................................................................................................. 37
Components of the Strategic Planning Process ........................................................................................ 40
Developing Organizational Objectives and Formulating Strategies ....................................................... 52
Where Strategic Planning Occurs within Firms ....................................................................................... 58
Strategic Portfolio Planning Approaches .................................................................................................. 62
Discussion Questions and Activities........................................................................................................... 67
Chapter 3: Consumer Behavior: How People Make Buying Decisions ..................... 69
Factors That Influence Consumers’ Buying Behavior .............................................................................. 72
Low-Involvement Versus High-Involvement Buying Decisions and the Consumer’s Decision-Making
Process .......................................................................................................................................................... 95
Discussion Questions and Activities......................................................................................................... 105
Chapter 4: Business Buying Behavior........................................................................... 107
The Characteristics of Business-to-Business (B2B) Markets ................................................................. 108
Types of B2B Buyers................................................................................................................................... 113
Buying Centers ........................................................................................................................................... 120
Stages in the B2B Buying Process and B2B Buying Situations .............................................................. 126
International B2B Markets and E-commerce .......................................................................................... 133
Ethics in B2B Markets ................................................................................................................................ 140
Discussion Questions and Activities......................................................................................................... 144
iii
, Chapter 5: Market Segmenting, Targeting, and Positioning................................... 147
Targeted Marketing versus Mass Marketing .......................................................................................... 148
How Markets Are Segmented ................................................................................................................... 156
Selecting Target Markets and Target-Market Strategies ...................................................................... 177
Positioning and Repositioning Offerings................................................................................................. 184
Discussion Questions and Activities......................................................................................................... 188
Chapter 6: Creating Offerings ........................................................................................ 190
What Composes an Offering? .................................................................................................................... 191
Types of Consumer Offerings.................................................................................................................... 202
Types of Business-to-Business (B2B) Offerings....................................................................................... 207
Branding, Labeling, and Packaging .......................................................................................................... 212
Managing the Offering .............................................................................................................................. 218
Discussion Questions and Activities......................................................................................................... 221
Chapter 7: Developing and Managing Offerings ........................................................ 223
The New Offering Development Process ................................................................................................. 225
Managing New Products: The Product Life Cycle ................................................................................... 235
Discussion Questions and Activities......................................................................................................... 249
Chapter 8: Using Marketing Channels to Create Value for Customers ................. 252
Marketing Channels and Channel Partners ............................................................................................ 253
Typical Marketing Channels ..................................................................................................................... 263
Functions Performed by Channel Partners ............................................................................................. 274
Marketing Channel Strategies .................................................................................................................. 279
Channel Dynamics...................................................................................................................................... 285
Discussion Questions and Activities......................................................................................................... 293
Chapter 9: Using Supply Chains to Create Value for Customers ............................ 295
Sourcing and Procurement ....................................................................................................................... 298
Demand Planning and Inventory Control ............................................................................................... 306
Warehousing and Transportation ............................................................................................................ 315
Track and Trace Systems and Reverse Logistics..................................................................................... 323
Discussion Questions and Activities......................................................................................................... 327
Chapter 10: Gathering and Using Information: Marketing Research and Market
Intelligence......................................................................................................................... 328
Marketing Information Systems .............................................................................................................. 331
Steps in the Marketing Research Process................................................................................................ 344
Discussion Questions and Activities......................................................................................................... 372
iv
