Brenda Clark, Ed.D. Jennie Sobel, M.B.A. Marketing Teacher-Coordinator, retired Robert E. Lee High School ; > ;,' San Antonio, Texas ' :; :.
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1 ' I Brenda Clark, Ed.D. Maikotini; Instnulor, C11. I >IK\Lc11 ^1C j cfuooil i iigh bdluul Jenison, Michigan Jennie Sobel, M.B.A. Marketing Teacher-Coordinator, retired Robert E. Lee High School ; > ;,' San Antonio, Texas ' :; :.;, Cynthia Gendall Basteri, Ed.D. Director of Community Services Tewksbury Public Schools Tewksbury, Massachusetts Contributing Writers Mary G.Wolfe, M.B.A. St. Michaels, Maryland Publisher The Goodheart-Willcox Company, Inc. Tinley Park, Illinois Judy Commers, M.A.E. Marketing Education Teacher-Coordinator Porter County Career Center Valparaiso, Indiana
2 OHE Marketing Is Dynamic! 16 Marketing Defined 17 Marketing Is Dynamic 17 Marketing Is Customer-Focused Marketing Is Relationships 19 Marketing Is International 19 Marketing Is the Four Ps 20 Marketing Is the Marketing Mix Marketing Is the Marketing Plan Is Marketing in Your Future? 27 The Mark Secchia Story Marketing Is International Business Basics 31 Economic Needs and Wants 32 The Exchange 33 Money 34 What Is Business? 35 Making a Profit 36 Forms of Business Ownership 36 The Functions of Business 38 The Marketing Concept 42 Utility 42 The Marketing Concept 44 The Functions of Marketing 46 The Functions and the Marketing Concept 48 Markets 51 A Group of Buyers 52 Consumer Market vs. Business Market 53 Customer vs. Consumer 57 Market Segments 58 Marketing Strategy 61 Social Responsibility 65 What Is Social Responsibility? 66 Be Legal 67 Be Ethical 69 Be Philanthropic 72 Benefits of Social Responsibility 74
3 Contents PART TWO ECOiVOiMY OF THE 10 Market Economy 127 Dynamics 127 Economic Spirals 128 The Business Cycle 128 Business Cycle and Economic Indicators Role of Government 136 Constitutional Powers 137 Market Weaknesses 138 Government Economic Activities The Problem of Scarcity 80 Scarcity 81 An Economic System 82 Economic Inputs 82 7 Economic Systems?i Types of Economic Systems 92 Market Economy Features 94 Mixed Economies 96 ( 8 Market Forces 102 Market Forces at Work 103 Supply and Demand 104 Profit 107 Competition 108 Role of the Consumer Economic Indicators 112 Economic Indicators 113 Gross Domestic Product (GDP) 114 Standard of Living 117 Consumer Price Index (CPI) 118 Inflation Rate 118 Unemployment Rate 121 The Stock Market as an Indicator 122 Keys to the Status of the Economy International Trade 147 International Trade 148 Why Trade? 148 Exports and Imports 150 Foreign Exchange Rates 151 Jasmine Lawrence This Teen Means Business! 154 Trade Relations 157 Government Regulation of Foreign Trade 157 Enforcement of Trade Laws 159 Trade Relations 160 Globalization 161 Concerns About Globalization 163
4 Contents PART THREE c WHo one yoom 14 A Diverse Marketplace 168 Cultural Differences 169 Social Classes 172 Demographic Changes 172 Social Changes 174 International Trade 177 Beware of Stereotyping 177 Ashley Sierra Reed Shining Star of ASR Collections 178 / is Targeting a Market 182 Marketing Strategy 183 Mass Marketing 185 Target Marketing 186 Choosing Your Target Market 188 Advantages and Disadvantages of Targeting a Market Segmenting a Market 193 Market Segmentation 193 Geographic Variables 195 Demographic Variables 196 Psychographic Variables 198 Behavioral Variables 200 Combining Variables 201 Market Segment Profile Understanding Consumer Behavior 205 Psychological Influences 205 Social Influences 208 Situational Influences 211 The Consumer Decision Process Business Customers 215 What Do Businesses Buy? 215 Segmenting the Business Market 216 The Business Buying Decision 218 The Business Decision Process 219 Levels of Buying Decisions 220 Influences on Business Buyers Competition 224 Monopoly vs. Competition 224 Ways to Compete 227 Market Share 228 How to Find Market Data 229 Why Is Market Share Important? 229 Competition Research Marketing Research 235 Types of Data 236 Collecting Primary Data 237 Sources of Secondary Data 240 Marketing Research Process 242 Trend Research 242 Sales Forecasting 244 Is Marketing Research Always Right? 245
5 1O P/fcRT EOUR PRODUCT 21 What Is a Product? 250 Types of Products 250 The Service Economy 252 Characteristics of Services 252 Product Elements 254 Product Strategy Branding 262 What Is a Brand? 263 Branding and the Customer 265 Goals of Branding 267 Protecting a Brand 271 You as a Brand Developing New Products 276 What Is a "New" Product? 277 Risk of New Products 278 Idea Generation 279 Idea Screening 281 Business Analysis 281 Product Design 282 Production 283 Test Marketing 284 Introduction 284 Evaluation 285 Celines Toribio Model, TV Personality, Entrepreneur 286 J 24 Making Goods 289 Overview of Production 290 Obtaining Materials 291 The Production Process 293 Storage of Goods 297 Globalization of Production Product Management 302 Product Lines 302 Product Life Cycle 303 Product Mix for Retailers 308 Strategies for Foreign Markets 309 P/*RT FIVE V '' Fi~'\ V 1 Contents 26 What Is Place? 316 Place Decisions 317 Location Decisions 318 Channels of Distribution 322 Role of Intermediaries 325 Channel Management 329 Ownership in the Distribution Channel 330 The Cherokee Nation A Nation of Entrepreneurs 331
6 Contents Physical Distribution 334 Activities of Physical Distribution Components of Physical Distribution 335 Modes of Transportation 337 Distribution of Services and Ideas The Distribution Process 340 Distribution Plans 342 Channel Management and Physical Distribution 345 Ethical Considerations in Channel Management Retail Inventory 349 Inventory Planning 350 Stock Handling 352 Inventory Control Internet as Place 365 E-Commerce Basics 366 Marketing on the Internet 368 Business-to-Business on the Internet 369 The Internet as Retail Place 370 Multi-Channel Retailing 376 ^ Distribution on the Internet 377 Distribution for E-tailers 378 Future of E-tailing 379 JT% PRICE Sv/Rot puice. 30 Profit and Loss 386 Finance Basics 387 Financial Reports 391 Financial Planning Risk Management 398 Types of Risks 399 Liability 402 Managing Risk 402 : 32 What Is Price? 414 * Types of Prices 414 Factors That Affect Price 416 Southwest Airlines Still Profitable After All These Years Price Determination Pricing Objectives 429 Effect of Price on Revenue Establishing Prices 435 XEVE1V PROiHOTIOiV The Communication Process 442 What Is Communication? 443 The Communication Process 444 The Message 445 Medium 447 Feedback 448 Interference with Communication 450
7 12 Contents 35 Verbal and Nonverbal Communication 454 What Happens to Messages? 455 Verbal Tools 457 What Is Nonverbal Communication? 459 Nonverbal Tools 460 Nonverbal Communication and Products Promotion Is Communication 468 Promotion Is Marketing Communication 469 Personal Promotion 473 Nonpersonal Promotion 474 The Marketing Concept and Promotion 480 Integrated Marketing Communications The Promotional Mix 485 What Is a Promotional Mix? 485 AIDA: The Basic Promotional * Strategy 486, Promotional Strategies 490 Customer Relationship Management 493 Types of Promotional Campaigns 494 Developing a Successful Campaign Advertising 500 What Is Advertising? 501 Advertising Media 503 The Tools of Advertising 507 Creating a Print Ad 507 Erica Enders Stock Car Racing Professional The Advertising Plan 517. Selection of Media 517 Factors to Consider 518 The Effectiveness of Advertising 522 Advertising and Society Visual Merchandising 530 What Is Visual Merchandising? 531 Store Image 532 Merchandise Presentation 534 Displays 535 Design and Visual Merchandising Promotion on the Internet 545 Types of Promotion on the Internet 546 Elements of Promotion Online 551 The Web Site 554 Online Strategies 554 P^VRT EICHT JELLI1VC DY1U*1MICX 42 What Is Selling? 562 What Is Personal Selling? 563 Where Do Salespeople Work? 563 What Do Salespeople Do? 567 The Sales Process 568 Is There a Career for You in Sales? 569 Cameron Johnson Entrepreneur Extraordinaire The Sales Process: Approach 576 Preapproach 576 Approach 578 Determine Needs 580
8 Contents The Sales Process: Presentation 588 Product Knowledge 588 Select Product 590 Present the Product 592 Customer Responses 594 Handle Objections 595 Plan and Practice The Sales Process: Close 601 Close the Sale 601 Complete the Transaction 606 Follow Up 612 Ethics in Sales Customer Service 619 Service Quantity 620 Service Quality 622 Exceptional Customer Service 624 1VI1VE DEVELOPMENT success? 47 Planning for Success Why Plan? 635 Learning About Yourself Using Career Clusters as a Guide O Developing Your Career Plan 648 Jobs and Careers 649 Researching Careers 650 Career Preparation 656 Your Career Plan 663 Communicating for Success 668 The Communication Process at Work 669 Receiver Skills 670 Sender Skills 674 Technology and Communication Nonverbal Communication at Work 683 Marketing Yourself 689 A Marketing Attitude Toward Job Search 690 Finding Leads 691 Preparing to Apply 695 Applying for Jobs 700 Interviewing 702 Following Up 707 \ Achieving Success Interpersonal Skills 712 Teams 713 Self-Management Skills 718 Advancement Skills Balancing Multiple Roles Entrepreneurship 731 Who Is an Entrepreneur? 732 Ownership 736 Chains and Franchises 741 How to Start Your Own Business 744 Costs 746 The Business Plan 747 Resources for Entrepreneurs 748 Glossary 753 Index 768
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