Principles of Marketing The European Edition

Preface xiii

About the authors xviii

Ecu conversion table xx

PART ONE Marketing and the Marketing Process

I Marketing in a changing world: satisfying human needs 3
Chapter objectives 3
Chapter preview Marketing touches our daily life 3
Introduction 4
What is marketing? 6
Marketing management 12
Marketing management philosophies 14
The goals of the marketing system 20
Marketing challenges in the 1990s 22
Summary 27
Discussing the issues 28
Applying the concepts 29
References 29
CASE I Amphitrion: your ultimate host in Greece Alkis S. Mogdolinos 30

Marketing and society: social responsibility and marketing ethics 33
Chapter objectives 33
Chapter preview Brown & Williamson Tobacco: 'Keeping smokers addicted' 33
Introduction 35
Social criticisms of marketing 36
Citizen and public actions to regulate marketing 49


Business actions towards socially responsible marketing 52
Principles for public policy towards marketing 60
Summary 62
Discussing the issues 63
Applying the concepts 64
References 64
CASE 2 Nestlé: singied out again and again 65

3 Strategic marketing planning 68
Chapter objectives 68
Chapter preview Levi's strategic marketing and planning 68
In,troduction 70
Strategic planning 70
The strategic plan 73
The marketing process 91
The brand plan 97
Marketing organization 102
Marketing control 104
Summary 108
Discussing the issues 110
Applying the concepts 110
References 110
CASE 3 Trap-Ease: the big cheese of mousetraps 112

OVERVIEW CASE I KitKat: have a break Sylvie Laforet 115
PART TWO The Marketing Setting 127
4 The marketing environment 129
Chapter objectives 129
Chapter preview Unilever: Power? 129
Introduction 134
The company's microenvironment 134
The company's macroenvironment 140
Responding to the marketing environment 159
Summary 160
Discussing the issues 160
Applying the concepts 161
References 161
CASE 4 Angelou's restaurant (and snack bar?) Alkis S. Magdalinos 163

The global marketplace 165
Chapter objectives 165
Chapter preview Danone taps the Japanese yoghurt market 165
Theoimportance of internationalization 166
Risks in international marketing I 7 I
Analysis of international market opportunity 173
Deciding which markets to enter 186
Establishing market entry mode 187


Making a firm commitment 191
Allocating necessary resources 191
ldentifying technical issues 192
Developing a strategic marketing plan 192
Organizing an operational team and implementing a marketing strategy 199
Evaluate and control operations 200
Summary 200
Discussing the issues 201
Applying the concepts 202
References 202
CASE s Procter & Gamble: going global in cosmetics 203

6 Market information and marketing research 208
-- Chapter objectives 208
2 , Chapter preview Qantas: taking off in tomorrow's market 208
Introduction 210
The marketing information system 211
Developing information 211
Defining the market 231
Measuring current market demand 233
Forecasting future demand 237
Distributing information 243
Summary 247
Discussing the issues 248
Applying the concepts 248
References 248
CASE 6 Ballygowan springs into new age Kisqua &rend° Cullen 250
OVERVIEW CASE 2 Mitsui & Company Colin Egon and Peter McKieman 261

PART THREE Buyer Behaviour 265

7 Consumer markets 267
Chapter objectives 267
Chapter preview Porsche: a special car for the special few 267
Models of consumer behaviour 269
Characteristics affecting consumer behaviour 270
Consumer decision process 288
Types of buying decision behaviour 289
The buyer decision process 291
The buyer decision process for new products 297
Summary 300
Discussing the issues 301
Applying the concepts 301
References 302
CASE 7 Bic versus Gillette: the disposable wars 304

8 Business markets and business buyer behaviour 307

Chapter objectives 307


Chapter preview Selling business jets: the ultimate executive toy 307
Business markets 309
Business buyer behaviour 315
Institutional and government markets 329
Summary 333
Discussing the issues 333
Applying the concepts 334
References 334
CASE 8 Troll-AEG Javier Sardo, Franscesc Parés ond Lluís G. Renart 335

OVERVIEW CASE 3 Jacobs Kaffee Wien: spreading a golden light 345

PART FOUR Core Strategy 349

9 Market segmentation and targeting 351
Chapter objectives 35 I
3 Chapter preview Procter & Gamble: how many is too many? 351
Markets 353
Market segmentation 354
Market targeting 380
Summary 387
Discussing the issues 388
Applying the concepts 388
References 388
CASE 9 Coffee-Mate 389

I0 Positioning 398
Chapter objectives 398
3 Chapter preview Castrol: liquid engineering 398
Core strategy 400
Differentiation 401
What is market positioning? 409
Perceptual mapping 412
Positioning strategies 414
Choosing and implementing a positional strategy 421
Summary 427
Discussing the issues 428
Applying the concepts 428
References 428
cAsE lo. Cadbury's TimeOut: choc around the clock Damien McLoughlin and Benoit Heilbrunn 429

I I Building customer satisfaction through quality, value and service 435
Chapter objectives 435
Chapter preview Rubbermaid: Want to buy an expensive rubber dustpan? 435
Satisfying customer needs 438
Defining customer value and satisfaction 439
Delivering customer value and satisfaction 445
Retaining customers 449
Implementing total quality marketing 456


713

Summary 457

Discussing the issues 460

Applying the concepts 461

References 461

CASE 11 Feinschmecker Sauce: pricey n' spicy Verena M. Priemer 462

12 Creating competitive advantage: competitor analysis and competitive

marketing strategies 465

Chapter objectives 465
4 Chapter preview Federal Express: losing a packet in Europe 465

Gaining a competitive advantage 468
•
Competitor analysis 468

Competitive strategies 477

Balancing customer and competitor orientations 494

Summary 495

Discussing the issues 496

Applying the concepts 497

Reférences 497

CASE 12 BMW: putting the 'brrrrum' back in Brum 499

OVERVIEW CASE 4 A cola challenge: cola with breakfast 505

PART FIVE Product 507

13 Designing products: new-product development and product life-cycle

strategies 509

Chapter objectives 509
6 Chapter preview Aerostructures Hamble 509

Introduction 510

Innovation and new-product development 51 I

New-product development process 514

Product life-cycle strategies 531

Summary 538

Discussing the issues 540

Applying the concepts 540

References 540

CASE 13 ThSwatchmobile: any colour combination, including black 541

14 Designing products: products, brands, packaging and services 544

Chapter objectives 544
5 Chapter preview Revlon 544

= Introduction 545

What is a product? 545

Product classifications 547

IndiMual product decisions 551

Product line decisions 574

Product mix decisions 578

International product decisions 579

Summary 580


Discussing the issues 581
Applying the concepts 581
References 582
CASE 14 Colgate: one squeeze too many? 583

Marketing services 586

Chapter objectives 586
Chapter preview Lufthansa: listening to customers 586
Services marketing 588
Summary 605
Discussing the issues 606
Applying the concepts 606
References 606
CASE I5 Tibigarden: is there life after EuroDisney? 607

OVERVIEW CASE 5 Mapanza Breweries Hapenga M. Kabeta 611

PART SIX Price 617

16 Pricing products: pricing considerations and approaches 619

Chapter objectives 619
Chapter preview The Times: for a change 619
Naming the price 621
$21=11111 Factors to consider when setting prices 622
General pricing approaches 635
Summary 645
Discussing the issues 646
Applying the concepts 647
References 647
CASE 16 Proton MPi: Malaysian styling, Japanese engineering, and European pricing Richord Lynch 648

-1`7 Pricing products: pricing strategies 654

Chapter objectives 654
Chapter preview Mobile phones: even more mobile customers 654
Pricing strategies 655
Kreyv-product pricing strategies 656
Product-mix pricing strategies 658
Price-adjustment strategies 660
Price changes 668
Summary 673
Discussing the issues 674
Applying the concepts 675
References 675
CASE 17 St'ena Sealink versus Le Shuttle, Eurostar and the rest 676

OVERVIEW CASE 6 Amaizer: It tastes awful, but we're working on it 681


PART SEVEN Promotions 683

18 Promoting products: communication and promotion strategy 685

Chapter objectives 685
Chapter preview British Home Stores 685
Steps in developing effective communication 687
Summary 709
Discussing the issues 710
Applying the concepts 710
References ' 710
CASE 18 Absolut Vodka: absolutely successful Pontus Alenroth, Robert Björnström, Joakim Eriksson
and*Thomas Helgesson 711

19 Promoting products: advertising, sales promotion and public relations 714

Chapter objectives 714
Chapter preview Promotions medley! 714
Advertising 715
Important decisions in advertising 716
Sales promotion 738
Public relations 750
9J Summary 754
Discussing the issues 755
Applying the concepts 755
References 756
CASE 19 Diesel Jeans & Workwear: 'We're all different, but aren't we all different in the same way?'
Malin Nilsson, Anki Sjöström, Anneli Zell and Thomas Helgesson 757

ZO Promoting products: personal selling and sales management 760

Chapter objectives 760
9 Chapter preview Airbus 760
Setting salesforce objectives 763
Designing salesforce strategy 764
Recruiting and selecting salespeople 767
Training salespeople 768
Supervising salespeople 769
Évaluating salespeople 774
Principles;of personal selling 777
Summary 785
Discussing the issues 785
Applying the concepts 787
References 788
CASE 20 Britcraft Jetprop: Whose sale is it anyhow? 788

RVIEW CASE 7 Bang & Olufsen: different by design Anton Hartniann-Olesen 797