Fundamentals of Marketing. Fourth Edition

Fundamentals of Marketing Fourth Edition

Fundamentals of Marketing Fourth Edition Eugene M. Johnson

2002 American Management Association. All rights reserved. This material may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1

Contents About This Course How to Take This Course xi xiii 1 The Concept of Modern Marketing 1 What Is Marketing? Development of Modern Marketing Production Era Sales Era The Marketing Concept Relationship Marketing Marketing Management Market Global Markets E-Commerce The Marketing Mix Product Distribution Price Promotion Two Examples Environmental Forces Demographic Forces Societal Forces Political Forces Economic Forces Physical Forces 2 Markets and Buyer Behavior 23 What Is a Market American Management Association. All rights reserved. v

vi FUNDAMENTALS OF MARKETING Market Determinants Types of Markets The Buying Process Need Recognition Search for Alternatives Evaluation of Alternatives Purchase Decision Postpurchase Feelings and Behavior Determinants of Buyer Behavior Individual Characteristics Group Influences Organizational Markets Geographic Concentration Derived Demand Fluctuating Demand Rational Buyers Multiple Buying Influences Government Buyers Market Segmentation Segmenting Consumer Markets Segmenting Organizational Markets 3 The Marketing Management Process 47 Marketing Planning Analyzing the Marketing Situation Setting Marketing Objectives Selecting the Target Market Developing a Marketing Strategy Marketing Organization Geographic Organization Customer Organization Product Organization Implementing Marketing Plans Marketing Control Establish Standards Analyze Performance Take Corrective Action 4 Information for Marketing 67 Information and Marketing Decision Making Marketing Information System Marketing Databases Marketing Research American Management Association. All rights reserved.

CONTENTS vii Types of Research Research Design Exploratory Research Conclusive Research International Market Research Sales Forecasting Forecasting Techniques Forecasting Steps The Manager and Marketing Information Planning Information Needs Using Information 5 Product Policies and Strategies 89 What Is a Product? Classifying Products Consumer Goods Business Goods Services The Product Life Cycle Introduction Stage Growth Stage Maturity Stage Decline Stage Product Strategy Product Objectives Growth Strategies New-Product Development Idea Generation Screening and Evaluation Business Analysis Development Test Marketing Commercialization Product Modification and Deletion Branding and Packaging Branding Packaging 6 Distribution Policies and Strategies 113 Distribution Systems Distribution Responsibilities Utilities Created by Distribution The Role of Intermediaries American Management Association. All rights reserved.

viii FUNDAMENTALS OF MARKETING Types of Intermediaries Wholesalers Retailers Impact of Technology Distribution Strategy Market Characteristics Product Features Company Resources and Reputation Existing Intermediaries Legal Restrictions Costs Intensity of Distribution Intensive Distribution Selective Distribution Exclusive Distribution Channel Management Selecting Individual Intermediaries Channel Coordination and Control Multichannel Systems Vertical Channel Systems Horizontal Systems Direct Marketing 7 Pricing Policies and Strategies 139 The Economics of Pricing Demand Competition Costs Economics-Based Pricing Approaches Setting Prices Price-Setting Procedure Pricing Objectives Price and the Product Life Cycle Introduction Stage Growth Stage Maturity Stage Decline Stage Pricing Practices Discounts and Allowances Geographic Pricing Psychological Pricing Government Regulation of Pricing Legal Framework Price Discrimination American Management Association. All rights reserved.

CONTENTS ix 8 Advertising, Public Relations, and 163 Sales Promotion Promotion as Communication Communication Process Model Difficulties of Marketing Communications Promotional Management Assessing the Promotional Opportunity Determining Promotional Objectives Formulating the Promotional Mix Budgeting for Promotion Advertising Forms of Advertising Organizing for Advertising Advertising Management Establishing Advertising Goals Developing an Advertising Campaign Measuring Advertising Effectiveness Public Relations Sales Promotion Consumer Promotions Dealer Promotions Frequency Marketing Managing Sales Promotion 9 Personal Selling and Sales Management 187 Nature of Personal Selling Types of Salespeople Support Salespeople Maintenance Salespeople Missionary Salespeople Developmental Salespeople Objectives for Selling The Selling Process Prospecting Preparation Sales Presentation Handling Objections Closing Follow-up Sales Management Sales Trends Emphasis on Developmental Salespeople Increased Team Selling International Sales Sales Automation American Management Association. All rights reserved.

x FUNDAMENTALS OF MARKETING Marketing Information Systems Combining Sales with Direct Marketing Bibliography 207 Post Test 209 Case Study 215 Case Solution 219 - Index 227 American Management Association. All rights reserved.