Introducing Marketing This book is licensed under a Creative Commons Attribution 3.0 License Introducing Marketing John Burnett Copyright © 2011 John Burnett Editor-In-Chief: John Burnett Associate Editor: Marisa Drexel Editorial assistants: Aashka Chaudhari, Rachel Pugliese, Jackie Sharman, LaKwanzaa Walton Proofreaders: Tessa Greenleaf, Desiree White Volunteers: Catherine Land, Bryan Wethington For any questions about this text, please email: [email protected] The Global Text Project is funded by the Jacobs Foundation, Zurich, Switzerland This book is licensed under a Creative Commons Attribution 3.0 License Introducing Marketing 2 A Global Text Table of Contents About the author............................................................................................................................................... 5 Preface............................................................................................................................................................... 6 1. Introducing marketing ............................................................................................................8 Elvis—alive and well ........................................................................................................................................ 8 Marketing: definition and justification ......................................................................................................... 10 Keys to marketing success ............................................................................................................................. 29 2. Understanding and approaching the market....................................................................... 34 Defining the market........................................................................................................................................ 35 Types of markets............................................................................................................................................. 36 Approaching the market................................................................................................................................. 38 3. Marketing research: an aid to decision making....................................................................59 The nature and importance of marketing research....................................................................................... 60 What needs researching in marketing?.......................................................................................................... 61 Procedures and techniques in marketing research........................................................................................ 63 Conducting the research................................................................................................................................. 73 Processing the data......................................................................................................................................... 73 The value of marketing research.................................................................................................................... 73 4. Understanding buyer behavior.............................................................................................80 Till death do us part....................................................................................................................................... 80 Buyer behavior and exchange......................................................................................................................... 81 Buyer behavior as problem solving ............................................................................................................... 82 Organizational buyer behavior ...................................................................................................................... 98 5. External considerations in marketing ................................................................................108 External factors that affect planning ............................................................................................................110 6. Marketing in global markets................................................................................................134 Defining international marketing................................................................................................................. 135 Standardization and customization.............................................................................................................. 136 Reasons for entering international markets................................................................................................. 137 Reasons to avoid international markets....................................................................................................... 138 The stages of going international................................................................................................................. 138 The international marketing plan................................................................................................................. 141 The international marketing environment................................................................................................... 146 7. Introducing and managing the product.............................................................................. 159 Defining the product..................................................................................................................................... 160 Classification of products.............................................................................................................................. 162 Product planning and strategy formulation ................................................................................................ 167 8. Communicating to mass markets........................................................................................195 The role of IMC............................................................................................................................................. 197 The objectives of marketing communication.............................................................................................. 200 How we communicate................................................................................................................................... 201 Designing an IMC strategy........................................................................................................................... 204 Understanding advertising........................................................................................................................... 209 Sales promotion and public relations........................................................................................................... 214 9. Pricing the product.............................................................................................................. 237 Price defined: three different perspectives.................................................................................................. 238 Pricing objectives.......................................................................................................................................... 241 Developing a pricing strategy....................................................................................................................... 242 New product pricing..................................................................................................................................... 246 Price lines...................................................................................................................................................... 247 Price flexibility.............................................................................................................................................. 248 3 This book is licensed under a Creative Commons Attribution 3.0 License Price bundling............................................................................................................................................... 251 Psychological aspects of pricing.................................................................................................................... 251 Alternative approaches to determining price...............................................................................................253 The future of pricing..................................................................................................................................... 257 10. Channel concepts: distributing the product..................................................................... 262 The dual functions of channels.....................................................................................................................263 The evolution of the marketing channel...................................................................................................... 264 Flows in marketing channels........................................................................................................................ 264 Functions of the channel.............................................................................................................................. 266 Channel institutions: capabilities and limitations......................................................................................