Final PDF to printer A Preface to Marketing Management pet6106x_fm_i-xviii.indd i 19/12/13 9:19 PM This page intentionally left blank Final PDF to printer A Preface to Marketing Management Fourteenth Edition J. Paul Peter University of Wisconsin–Madison James H. Donnelly Jr. Gatton College of Business and Economics University of Kentucky pet6106x_fm_i-xviii.indd iii 19/12/13 9:19 PM Final PDF to printer A PREFACE TO MARKETING MANAGEMENT, FOURTEENTH EDITION Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2015 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 20 13, 2011, and 2008. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 DOW/DOW 1 0 9 8 7 6 5 4 ISBN 978-0-07-786106-3 MHID 0-07-786106-X Senior Vice President, Products & Markets: Kurt L. Strand Vice President, General Manager, Products & Markets: Michael Ryan Vice President, Content Production & Technology Services: Kimberly Meriwether David Brand Manager: Sankha Basu Editorial Coordinator: Heather Darr Marketing Manager: Donielle Xu Director, Content Production: Terri Schiesl Lead Content Project Manager: Jane Mohr Buyer: Laura Fuller Cover Designer: Studio Montage, St. Louis, MO. Cover Image: © John Shaw/Getty Images Media Project Manager: Shawn Coenen Compositor: Laserwords Private Limited Typeface: 10/12 Times LT Std. Printer: R. R. Donnelley All credits appearing on page or at the end of the book are considered to be an extension of the copyright page. Library of Congress Cataloging-in-Publication Data Peter, J. Paul. A preface to marketing management / J. Paul Peter, University of Wisconsin-Madison, James H. Donnelly, Jr., Gatton College of Business and Economics, University of Kentucky.–Fourteenth edition. pages cm ISBN 978-0-07-786106-3 (alk. paper) 1. Marketing–Management. I. Donnelly, James H. II. Title. HF5415.13.P388 2013 658.8–dc23 2013046644 The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites. www.mhhe.com pet6106x_fm_i-xviii.indd iv 19/12/13 9:19 PM Final PDF to printer To Rose and Angie J. Paul Peter To Gayla Jim Donnelly pet6106x_fm_i-xviii.indd v 19/12/13 9:19 PM Final PDF to printer About the Authors J. Paul Peter has been a faculty member at the University of Wisconsin since 1981. He was a member of the faculty at Indiana State, Ohio State, and Washington University before joining the Wisconsin faculty. While at Ohio State, he was named Outstanding Marketing Professor by the students and has won the John R. Larson Teaching Award at Wisconsin. He has taught a variety of courses including Marketing Management, Marketing Strategy, Con- sumer Behavior, Marketing Research, and Marketing Theory, among others. Professor Peter’s research has appeared in the Journal of Marketing, the Journal of Marketing Research, the Journal of Consumer Research, the Journal of Retailing, and the Academy of Management Journal, among others. His article on construct validity won the prestigious William O’Dell Award from the Journal of Marketing Research, and he was a finalist for this award on two other occasions. Recently, he was the recipient of the Churchill Award for Lifetime Achievement in Marketing Research, given by the American Marketing Association and the Gaumnitz Distinguished Faculty Award from the School of Business, University of Wisconsin–Madison. He is an author or editor of over 30 books, including A Preface to Marketing Management, Fourteenth edition; Marketing Management: Knowledge and Skills, ninth edition; Consumer Behavior and Marketing Strategy, ninth edition; Strategic Management: Concepts and Applications, third edition; and Marketing: Creating Value for Customers, second edition. He is one of the most cited authors in the marketing literature. Professor Peter has served on the review boards of the Journal of Marketing, Jour- nal of Marketing Research, Journal of Consumer Research, and Journal of Business Research and was measurement editor for JMR and professional publications editor for the American Marketing Association. He has taught in a variety of executive programs and consulted for several corporations as well as the Federal Trade Commission. James H. Donnelly Jr. has spent his academic career in the Gatton College of Business and Economics at the University of Kentucky. In 1990 he received the first Chancellor’s Award for Outstanding Teaching given at the university. Previously, he had twice received the UK Alumni Associa- tion’s Great Teacher Award, an award one can only be eligible to receive every 10 years. He has also received two Outstanding Teacher awards from Beta Gamma Sigma, national busi- ness honorary. In 1992 he received an Acorn Award recognizing “those who shape the future” from the Kentucky Advocates for Higher Education. In 2001 and 2002 he was selected as “Best University of Kentucky Professor.” In 1995 he became one of six charter members elected to the American Bankers Association’s Bank Marketing Hall of Fame. He has also received a “Distinguished Doctoral Graduate Award” from the University of Maryland. During his career he has published in the Journal of Marketing Research, Journal of Marketing, Journal of Retailing, Administrative Science Quarterly, Academy of Man- agement Journal, Journal of Applied Psychology, Personnel Psychology, Journal of Business Research, and Operations Research among others. He has served on the edito- rial review board of the Journal of Marketing. He is the author of more than a dozen books, which include widely adopted academic texts as well as professional books. Professor Donnelly is very active in the banking industry where he has served on the board of directors of the Institute of Certified Bankers and the ABA’s Marketing Network. He has also served as academic dean of the ABA’s School of Bank Marketing and Management. vi pet6106x_fm_i-xviii.indd vi 19/12/13 9:19 PM Final PDF to printer Preface We are proud to introduce the fourteenth edition of A Preface to Marketing Management. Our plan has always been to deliver a clear and concise presentation of the basic princi- ples of marketing in such a way that the core concepts and ideas are covered in sufficient depth to ensure in-depth understanding. By offering an engaging, clear, and conceptu- ally sound text, our book has been able to maintain its position as a leading marketing management text. Throughout the history of the book, feedback from both students and instructors has suggested that our plan is a good one. Our book has been used in a wide variety of set- tings and is the best-selling book of its kind. We introduce the fourteenth edition knowing that our book and its eight foreign translations have been used around the world whenever courses require an overview of the critical aspects of marketing management. With this edition, we seek to more effectively implement our plan by building on a strong foundation, maintaining the attributes and elements of the book that make it a very teachable text, updating existing content, adding new content, and focusing the presenta- tion. We seek to emphasize quality content and examples and avoid excess verbiage, pic- tures, and description. As usual, each time we revise the book there is an emphasis on responding to feedback from students and instructors. These two constituencies plus our own intuitions drive each revision. Marketing is an exciting and dynamic field of study. We want to capture the sense of excitement and at the same time respect its history. Our book has become known simply as the Preface. We want to believe a major reason it has endured is that because marketing is figuring out how to do a superior job of satisfy- ing customers, we simply try to practice what we preach. Welcome to the Preface. THE PRESENT EDITION Every element of content in our book is designed with one thought in mind: to assist stu- dents in analyzing marketing problems and cases and developing and writing marketing plans. Section I of the book consists of 13 concise chapters that cover the essentials of mar- keting management. We think of it as the “must know” content of the field. It is divided into four parts that focus on strategic planning and marketing planning, understanding tar- get markets, the marketing mix, and marketing in special fields. These 13 chapters should provide students a clear understanding of the terminology, techniques, tools, and strategies for effective marketing management and marketing strategy development. In addition to revising and updating the text chapters, this edition contains new content as well. There are discussions of internal and external secondary data sources, the use of social media monitoring, alternative search in consumer behavior, key characteristics of organiza- tional buyers, e-procurement, global virtual teams, brand equity, using distinctive compe- tencies in new product development, consumer databases, business-to-business databases, mobile marketing, online retailing and multichannel marketing, franchising, the effects of the Internet on pricing, global account managers, and learning about different cultures. In the twelfth edition, we altered two of the text elements. The changes have been well received by instructors and students.