ROBERT F. HARTLEY • CINDY CLAYCOMB 12th Edition TWELFTH EDITION M ARKETING M ISTAKES AND SUCCESSES Robert F. Hartley Late of Cleveland State University Cindy Claycomb Wichita State University VICE PRESIDENT & EXECUTIVE PUBLISHER George Hoffman SENIOR EDITOR Franny Kelly PROJECT EDITOR Brian Baker EDITORIAL ASSISTANT Jacqueline Hughes ASSOCIATE DIRECTOR OF MARKETING Amy Scholz MARKETING MANAGER Kelly Simmons MARKETING ASSISTANT Marissa Carroll DESIGN DIRECTOR Harry Nolan PRODUCT DESIGNER Allison Morris SENIOR PRODUCTION MANAGER Janis Soo ASSOCIATE PRODUCTION MANAGER Joel Balbin PRODUCTION EDITOR Eugenia Lee COVER DESIGNER Kenji Ngieng This book was set in 10/12 New Caledonia by Aptara®, Inc. and printed and bound by Courier/Westford. The cover was printed by Courier/Westford. This book is printed on acid-free paper. 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HF5415.1.H37 2014 658.800973—dc23 2013020678 ISBN-13 978-1-118-07846-4 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 PREFACE Welcome to the 12th edition of Marketing Mistakes and Successes . Who would have thought that interest in mistakes would be so enduring? Many of you are past users, a few even for decades. We hope you will fi nd this new edition a worthy successor to earlier editions. The new Toyota and Borders cases should arouse keen student interest. A fair number of the older cases faced signifi cant changes in the last few years, for better or for worse, and these are captured to add to learning insights. After so many years of investigating mistakes and successes, it might seem a challenge to keep these new editions fresh and interesting. The joy of the chase has made this an intriguing endeavor through the decades. Still, it is always diffi cult to abandon interesting cases that have stimulated student discussions and provoked useful insights, but newer case possibilities are ever contesting for inclusion. Examples of good and bad handling of prob- lems and opportunities are forever emerging. For new users, we hope the book will meet your full expectations and be an effective instructional tool. Although case books abound, you and your students may fi nd this book somewhat unique and very readable, a book that can help transform dry and rather remote concepts into practical reality, and lead to lively class discussions, and even debates. In the gentle environment of the classroom, students can hone their analytical skills and also their persuasive skills—not selling products but selling their ideas—and defend them against crit- ical scrutiny. This is great practice for the arena of business to come. CHANGES TO THIS EDITION In contrast to the early editions, which examined only notable mistakes, and based on your favorable comments about recent editions, we have again included some well-known suc- cesses. While mistakes provide valuable learning insights, we can also learn from successes and fi nd nuggets by comparing the unsuccessful with the successful. We rearranged the case sections of this edition by moving Marketing Wars to the front of the book, followed by Comebacks , Marketing Mistakes , Entrepreneurial Adventures , Ethical Mistakes , and fi nally, Marketing Successes . Two new cases are introduced—Toyota, to Ethical Mistakes, and Borders, to Marketing Mistakes. All of the cases are updated. Some of them, such as Boeing vs. Airbus, PC Wars, Google, and Southwest Airlines, required substantial revisions to capture the latest marketing lessons. We kept all the cases as current as possible. A number of you have asked that we identify which cases would be appropriate for the traditional coverage of topics as organized in typical marketing texts. With most cases it is not possible to truly compartmentalize the mistake or success to merely one topic. The patterns of success or failure tend to be more pervasive. Nonetheless, we think you will fi nd the following classifi cation of cases by subject matter to be helpful. We thank those of you who made this and other suggestions. iii iv • Preface Classifi cation of Cases by Major Marketing Topics Topics Most Relevant Cases Marketing Research Coke/Pepsi, Euro Disney, McDonald’s, Google, Starbucks, and Consumer Analysis Borders, Chrysler Product Starbucks, Nike, Coke/Pepsi, McDonald’s, Maytag, Dell/Hewlett- Packard, Newell Rubbermaid, Chrysler, Kmart/Sears, Harley-Davidson, Boeing/Airbus, Merck, Boston Beer, Toyota, Southwest Airlines, MetLife, Borden, United Way, Vanguard, Borders, Euro Disney Services Google, United Way, Euro Disney, Southwest Airlines, MetLife, Vanguard Distribution and Supply Nike, Coke/Pepsi, Newell Rubbermaid, Harley-Davidson, Chain Management Vanguard, Starbucks, Kmart/Sears, Dell/Hewlett-Packard, Borders Promotion Nike, Coke/Pepsi, Maytag, Vanguard, Merck, Boston Beer, Kmart/Sears, Harley-Davidson, Borden, MetLife, Dell/Hewlett-Packard, Southwest Airlines, Google, Starbucks Price Southwest Airlines, Vanguard, Starbucks, Boston Beer, Dell/Hewlett- Packard, Euro Disney, Newell Rubbermaid, Borders, Boeing/Airbus, McDonald’s International Euro Disney, Boeing/Airbus, Harley-Davidson, Maytag, Chrysler, Toyota, Dell/Hewlett-Packard, Nike, Coke/Pepsi, Starbucks, McDonald’s Customer Relations Newell Rubbermaid, Vanguard, Maytag, Harley, Merck, Toyota, Starbucks, United Way, Nike, MetLife Social and Ethical Starbucks, Merck, Toyota, United Way, MetLife Outsourcing Boeing/Airbus, Maytag, Nike, Dell/Hewlett-Packard Technology and Borders, Google, Dell/Hewlett-Packard Digital/Social Media TARGETED COURSES As a supplemental text, this book can be used in a variety of undergraduate and graduate courses. These range from introduction to marketing and marketing principles to courses in marketing management and strategic marketing. It can also be used as a text in international marketing courses. Retailing, entrepreneurship, and ethics courses could use a number of these cases and their learning insights. It can certainly be used in training programs and even appeal to professionals who are looking for a good read about well-known fi rms and personalities. TEACHING AIDS As in previous editions, you will fi nd a plethora of teaching aids and discussion material within and at the end of each chapter. Some of these will be common to several cases, and illustrate that certain successful and unsuccessful practices are not unique. Information Boxes and Issue Boxes are included in each chapter to highlight relevant concepts and issues, or related information. Learning insights help students see how certain practices—both errors and successes—cross company lines and are prone to be either traps for the unwary or success modes. Discussion Questions and Hands-On Exercises encourage and stimulate student involvement. Another pedagogical feature is the Team Debate Exer- cise, in which formal issues and options can be debated for each case. The Devil’s Advocate exercises provide students opportunities to argue against a proposed course of action to test its merits. At the end of the Analysis sections, students are asked to make their own analysis, draw their own conclusions, and defend them, thereby having an opportunity to stretch Preface • v themselves. In some cases where there is considerable updating, students are invited to Assess the Latest Developments. Invitation to Research suggestions allow students to take the case a step further, to investigate what has happened since the case was written, both to the company and even to some of the individuals involved. In the fi nal chapter, the various learn- ing insights are summarized and classifi ed into general conclusions.