For each SLP question below, select three articles (published within the past five years), each from different peer-reviewed academic journals/magazines. [Utilize the above publications or other peer-reviewed academic journal/magazine publications you find through the Trident Online Library.] Find articles that specifically address the following: 1. Mergers & Acquisitions: What main point(s) about merging companies does the author make particularly relating to HRM? Do you agree? Why or why not? 2. Reduction in Force (RIF): What main point(s) about RIFs does the author make particularly relating to HRM? What steps can HRM take to prepare employees for a possible RIF? In your 2-page submission (not counting the cover page), create a 2-sided flyer that HR department staff can give to each person laid off due to Mergers & Acquisitions or a Reduction-in-Force. Include both a cover page and reference page for this assignment. These can be a separate document from the flyer. Experiment with using Microsoft Publisher or its equivalent free program found online for the 2-page flyer (a tri-fold flyer might work best for you—you could then put the references on the middle back column). Keeping the seriousness of the topic in mind, use color, but keep the flyer business-like without flamboyance. If you use a tri-fold template in Word or Publisher, plan your layout first so that once it is folded everything is in the right place. Upload your assignment to the appropriate Dropbox. Be sure to review your TurnItIn Originality report. If the score is over 20%, you may not be writing in your own words and you will need to contact your professor and arrange to revise and resubmit your assignment. Citation and reference style instructions are available at https://owl.english.purdue.edu/owl/resource/560/10/. Also see Trident University's Student Guide to Writing a High-Quality Academic Paper. You will find the following useful as you critique sources: Cornell University. (2015). Critically analyzing information sources: Critical appraisal and analysis. Retrieved from http://olinuris.library.cornell.edu/ref/research/skill26.htm Cornell University. (2014). Evaluating Web sites: Criteria and tools. Retrieved from http://olinuris.library.cornell.edu/ref/research/webeval.html SLP Assignment Expectations Your submission will be assessed on the criteria found in the written communications grading rubric for this assignment: · Context and purpose for writing · Content · Adherence to conventions in specific disciplines · Sources of evidence · Syntax control and mechanics · Timeliness Revised Confirming Pages A Preface to Marketing Management pet29966_fm_i-xiv.qxd 11/20/09 2:27 PM Page i Revised Confirming Pagespet29966_fm_i-xiv.qxd 11/20/09 2:27 PM Page ii Revised Confirming Pages A Preface to Marketing Management Twelfth Edition J. Paul Peter University of Wisconsin–Madison James H. Donnelly, Jr. Gatton College of Business and Economics Universit.

1. For each SLP question below, select three articles (published
within the past five years), each from different peer-reviewed
academic journals/magazines. [Utilize the above publications or
other peer-reviewed academic journal/magazine publications
you find through the Trident Online Library.] Find articles that
specifically address the following:
1. Mergers & Acquisitions: What main point(s) about merging
companies does the author make particularly relating to HRM?
Do you agree? Why or why not?
2. Reduction in Force (RIF): What main point(s) about RIFs
does the author make particularly relating to HRM? What steps
can HRM take to prepare employees for a possible RIF?
In your 2-page submission (not counting the cover page), create
a 2-sided flyer that HR department staff can give to each person
laid off due to Mergers & Acquisitions or a Reduction-in-Force.
Include both a cover page and reference page for this
assignment. These can be a separate document from the flyer.
Experiment with using Microsoft Publisher or its equivalent
free program found online for the 2-page flyer (a tri-fold flyer
might work best for you—you could then put the references on
the middle back column). Keeping the seriousness of the topic
in mind, use color, but keep the flyer business-like without
flamboyance. If you use a tri-fold template in Word or
Publisher, plan your layout first so that once it is folded
everything is in the right place.
Upload your assignment to the appropriate Dropbox. Be sure to
review your TurnItIn Originality report. If the score is over
20%, you may not be writing in your own words and you will
need to contact your professor and arrange to revise and
resubmit your assignment.
Citation and reference style instructions are available
at https://owl.english.purdue.edu/owl/resource/560/10/. Also see
Trident University's Student Guide to Writing a High-Quality
Academic Paper.

2. You will find the following useful as you critique sources:
Cornell University. (2015). Critically analyzing information
sources: Critical appraisal and analysis. Retrieved
from http://olinuris.library.cornell.edu/ref/research/skill26.htm
Cornell University. (2014). Evaluating Web sites: Criteria and
tools. Retrieved
from http://olinuris.library.cornell.edu/ref/research/webeval.htm
l
SLP Assignment Expectations
Your submission will be assessed on the criteria found in the
written communications grading rubric for this assignment:
· Context and purpose for writing
· Content
· Adherence to conventions in specific disciplines
· Sources of evidence
· Syntax control and mechanics
· Timeliness
Revised Confirming Pages
A Preface
to Marketing
Management
pet29966_fm_i-xiv.qxd 11/20/09 2:27 PM Page i
Revised Confirming Pagespet29966_fm_i-xiv.qxd 11/20/09
2:27 PM Page ii

3. Revised Confirming Pages
A Preface
to Marketing
Management
Twelfth Edition
J. Paul Peter
University of Wisconsin–Madison
James H. Donnelly, Jr.
Gatton College of Business and
Economics University of Kentucky
pet29966_fm_i-xiv.qxd 11/20/09 2:27 PM Page iii
Revised Confirming Pages
A PREFACE TO MARKETING MANAGEMENT, TWELFTH
EDITION
Published by McGraw-Hill, a business unit of The McGraw-Hill
Companies, Inc., 1221
Avenue of the Americas, New York, NY 10020. Copyright ©
2011 by The McGraw-Hill Companies, Inc.
All rights reserved. Previous editions © 2008, 2006, and 2003.
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 The McGraw-Hill Companies, Inc.,

4. 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 WDQ/WDQ 1 0 9 8 7 6 5 4 3 2 1 0
ISBN 978-0-07-352996-7
MHID 0-07-352996-6
Vice President & Editor-in-Chief: Brent Gordon
VP EDP/Central Publishing Services: Kimberly Meriwether
David
Publisher: Paul Ducham
Executive Editor: Douglas Hughes III
Associate Marketing Manager: Jaime Halteman
Editorial Coordinator: Gabriela Gonzalez
Project Manager: Robin A. Reed
Design Coordinator: Brenda A. Rolwes
Cover Designer: Studio Montage, St. Louis, Missouri
Cover Image Credit: Royalty-Free/CORBIS
Production Supervisor: Nicole Baumgartner
Media Project Manager: Suresh Babu
Composition: Laserwords Private Limited
Typeface: 10/12 Times New Roman
Printer: World Color Press, Inc.
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

5. Peter, J. Paul.
A preface to marketing management / J. Paul Peter, James H.
Donnelly, Jr.–Twelfth ed.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-07-352996-7 (alk. paper)
1. Marketing–Management. I. Donnelly, James H. II. Title.
HF5415.13.P388 2010
658.8–dc22
2009043316
The Internet addresses listed in the text were accurate at the
time of publication. The inclusion of a Web site
does not indicate an endorsement by the authors or McGraw-
Hill, and McGraw-Hill does not guarantee the
accuracy of the information presented at these sites.
www.mhhe.com
pet29966_fm_i-xiv.qxd 11/20/09 2:27 PM Page iv
Revised Confirming Pages
To Rose and Angie
J. Paul Peter
To Gayla
Jim Donnelly
pet29966_fm_i-xiv.qxd 11/20/09 2:27 PM Page v

6. Revised Confirming Pages
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 twelfth edition; Marketing

7. Management: Knowledge and
Skills, nineth edition; Consumer Behavior and Marketing
Strategy, nineth 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, Journal 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 business
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

8. 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 Manage-
ment Journal, Journal of Applied Psychology, Personnel
Psychology, Journal of Business
Research, and Operations Research among others. He has served
on the editorial 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
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vii
Preface
NOTE FROM THE AUTHORS

9. The original purpose of A Preface To Marketing Management—
to deliver a clear and con-
cise presentation of the basic principles of marketing—is as
relevant today as it was in ear-
lier editions. To us this means emphasizing quality content and
avoiding excess verbiage,
pictures, and lists. We think we have succeeded in doing so
since a reviewer called our book
“pound for pound the best introductory marketing text
available.”
We introduce the 12th edition with a sense of accomplishment
knowing that our book
and its eight foreign translations have been used throughout the
world whenever courses
require an overview of the critical aspects of marketing
management. Consequently, the
book has been used successfully in a wide variety of different
course settings and is the
best selling book of its kind. We believe it has endured because
we continuously fine tune
and update it to ensure that it meets the current and evolving
needs of both students and
instructors. Because marketing is about figuring out how to do a
superior job of satisfying
customers, we simply seek to practice what we preach. We refer
to out book as the Preface.
Welcome to this edition which is organized into four sections.
Section I. Essentials of Marketing Management
This section consists of 13 chapters that present the essentials
of marketing management.
Our objective is to present the “must know” content of the field
useful in analyzing mar-
keting problems and cases and developing marketing plans. It is

10. divided into four sections
that emphasize introducing the field, understanding target
markets, understanding market-
ing mix variables, and marketing in special fields. Careful study
of this section should give
students a clear understanding of the terminology, techniques,
tools, and strategies used in
effective marketing management and marketing strategy
development.
Section II. Analyzing Marketing Problems and Cases
This section has been widely praised as the best presentation
available on the topic. In fact,
it has found its way to other areas of many campuses where it is
used by students in fields
where case problems are used but which are unrelated to the
field of marketing. It presents
a comprehensive framework for analyzing, preparing, and
presenting case analyses.
This section could have been placed at the beginning of the
book because it is designed
to be read at the start of a course using cases. However, because
it is referred to throughout
the semester, we placed it after the text chapters. Also, for those
courses that do not utilize
cases, the book may be used without reference to this section.
Section III. Financial Analysis for Marketing Decisions
It is important for marketing students to appreciate that the
ultimate objectives of market-
ing are usually expressed in financial terms. With this in mind,
this section presents impor-
tant financial calculations that will be useful in evaluating the
financial position of a firm
and the financial impact of various marketing decisions and

11. strategies.
Section IV. Developing Marketing Plans
In keeping with the concept of our book and the needs of its
users, this section helps read-
ers develop practical planning skills. It contains an approach to
developing a marketing
plan by providing a general format for structuring and
presenting one.
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Revised Confirming Pages
THE 12TH EDITION OF THE PREFACE
The content of this book is continuously revised and updated
based on extensive feed-
back from students and faculty members as well as our own
intuitions and judgments.
Whether a topic is fundamental or emerging we try to bring
innovative content and ele-
ments to the book. For example, in this and the previous edition
we have added new or
expanded discussions of the major types of marketing, branding,
marketing’s role in
cross-functional strategic planning, the most current
psychographic and geodemographic
segmentation approaches, organizing the sales force,
relationship marketing in service
organizations, the difference between customers and clients in
service organizations,
multichannel marketing, and a new section on Porter’s diamond
model of national com-

12. petitive advantage. We have also changed the title and added
content to chapter 6, “Prod-
uct and Brand Strategy” to better reflect current views of these
topics.
We have altered two important elements in this edition.
“Marketing Insights” replace
our previous “Marketing Highlights” feature. This is more than
a simple name change. It
was done to more accurately reflect their purpose of helping
students solve marketing
problems, analyze marketing cases, and develop marketing
plans. More than 20 Market-
ing Insights have been added to this edition.
We have also added an “Additional Resources” section to the
end of each chapter.
Previously, each chapter ended with a selection of additional
readings. This change is
designed to highlight our focus on current resources which
students can utilize in solv-
ing marketing problems, analyzing marketing cases, and
developing marketing plans, as
well as assist in writing projects and case presentations. Each
resource has been selected
with prospective students in mind. Our goal is to provide
resources accessible to stu-
dents at various stages of marketing education given the wide
spectrum of courses in
which the book is utilized.
UTILIZING THE PREFACE
This book has been used successfully in college courses and
practical training that
require an overview of the critical aspects of marketing

13. management and marketing strat-
egy development. It has been used:
• As a primary introductory text primarily at the undergraduate
level.
• At the undergraduate and MBA level, where several AACSB
core curriculum courses
are team-taught as one multidisciplinary 9-to-12 hour course.
• At the advanced undergraduate and MBA level where it is
used as the content foun-
dation in courses that utilize marketing cases and problems.
• In short courses and executive development programs.
INSTRUCTIONAL RESOURCES
The Preface is accompanied by two expanded supplements.
They were developed in response
to instructors’ requests. We offer a test bank of nearly 1,300
multiple-choice, true-false, and
brief essay questions. It is available in both print and EZ Test
Online. We also offer Power-
Point slides that highlight key text material.
viii Preface
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Revised Confirming Pages
ix
Acknowledgements

14. Our book is based on the works of many academic researchers
and marketing practitioners.
We want to thank those individuals who contributed their ideas
to develop the field of mar-
keting throughout the years. Indeed, our book would not be
possible without their contri-
butions. We would also like to thank our teachers, colleagues,
and students for their many
contributions to our education. We would also like to publicly
acknowledge those individ-
uals who served as reviewers of this and previous editions. We
appreciate their advice and
counsel and have done our best to reflect their insightful
comments.
Roger D. Absmire
Sam Houston State University
Catherine Axinn
Syracuse University
Andrew Bergstein
Pennsylvania State University
Robert Brock Lawes
Chaminade University of Honolulu
Glenn Chappell
Meridith College
Newell Chiesl
Indiana State University
Reid P. Claxton
East Carolina University
Mike Dailey
University of Texas, Arlington
Linda M. Delene
Western Michigan University
James A. Eckert
Western Michigan University
Robert Finney

15. California State University, Hayward
Stephen Goldberg
Fordham University
Sol Klein
Northeastern University
Franklyn Manu
Morgan State University
Edward J. Mayo
Western Michigan University
Donald J. Messmer
College of William & Mary
Johannah Jones Nolan
University of Alabama, Birmingham
R. Stephen Parker
Southwest Missouri State University
Debu Purohit
Duke University
Gary K. Rhoads
Brigham Young University
Mike Ballif
University of Utah
Donald Brady
Millersville University
Lee Richardson
University of Baltimore
Matthew H. Sauber
Eastern Michigan University
Ronald L. Schill
Brigham Young University
Vernon R. Stauble
California State Polytechnic University
David Griffith
University of Oklahoma
Lawrence Hamer
DePaul University

16. Jack Healey
Golden State University
Betty Jean Hebel
Madonna University
JoAnne S. Hooper
Western Carolina University
David Horne
Wayne State University
Fred Hughes
Faulkner University
Benoy Joseph
Cleveland State University
Ann Marie Thompson
Northern Illinois University
John R. Thompson
Memphis State University
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Revised Confirming Pages
x Acknowledgements
Gordon Urquhart
Cornell College
Kevin Webb
Drexel University
Kathleen R. Whitney
Central Michigan University
J. B. Wilkinson
University of Akron
Dale Wilson
Michigan State University
Eunkyu Lee

17. Syracuse University
Tina Lowrey
University of Texas at San Antonio
Albert Milhomme
Texas State University
Larry Crowson
University of Central Florida
Gerard DiBartolo
Salisbury University
Casey Donoho
Northern Arizona University
R. E. Evans
University of Oklahoma
Lawrence Feick
University of Pittsburgh
David Good
Grand Valley State University
Perry Haan
Tiffin University
Harry Harmon
Central Missouri
Catherine Holderness
University of North Carolina–Greensboro
Nicole Howatt
UCF
Anupam Jaju
GMU
Chris Joiner
George Mason University
Chip Miller
Drake University
David L. Moore
LeMoyne College
Joan Phillips
University of Notre Dame

18. Thomas Powers
University of Alabama at Birmingham
John Rayburn
University of Tennessee
Martha Reeves
Duke
Henry Rodkin
DePaul University
Alan Sawyer
University of Florida
Mark Spriggs
University of St. Thomas
Sean Valentine
University of Wyoming
Stacy Vollmers
University of St. Thomas
Anna Andriasova
University of Maryland University College
Ritesh Saini
George Mason University
Ana Valenzuela
Baruch College, CUNY
Matthew Elbeck
Troy University Dothan
Edward Bond
Bradley University
Working with professionals makes everything go smoothly. It is
why being a McGraw-
Hill/Irwin author is a pleasure. Thank you to Doug Hughes, our
editor, and to Gabriela
Gonzalez, editorial assistant, and welcome aboard. Special
thanks to Robin Reed, project
manager, for so many contributions to this project. We are very
grateful.

19. We also wish to acknowledge Michael Knetter, Dean of the
School of Business at the
University of Wisconsin, and Devanthan Sudharshan, Dean of
Gatton College of Business
and Economics at the University of Kentucky who have always
supported our efforts.
J. Paul Peter
James H. Donnelly Jr.
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xi
Contents
SECTION I
ESSENTIALS OF MARKETING
MANAGEMENT 1
PART A
INTRODUCTION 1
Chapter 1
Strategic Planning and the Marketing
Management Process 2
The Marketing Concept 2
What Is Marketing? 3
What Is Strategic Planning? 4
Strategic Planning and Marketing Management 4

20. The Strategic Planning Process 5
The Complete Strategic Plan 14
The Marketing Management Process 14
Situation Analysis 14
Marketing Planning 17
Implementation and Control of the Marketing Plan 18
Marketing Information Systems and Marketing
Research 19
The Strategic Plan, the Marketing Plan, and
Other Functional Area Plans 19
Marketing’s Role in Cross-Functional Strategic
Planning 19
Conclusion 20
Appendix
Portfolio Models 23
PART B
MARKETING INFORMATION,
RESEARCH, AND UNDERSTANDING
THE TARGET MARKET 27
Chapter 2
Marketing Research: Process and Systems
for Decision Making 28
The Role of Marketing Research 28
The Marketing Research Process 29
Purpose of the Research 29
Plan of the Research 30
Performance of the Research 35
Processing of Research Data 35

21. Preparation of the Research Report 36
Limitations of the Research Process 36
Marketing Information Systems 38
Conclusion 39
Chapter 3
Consumer Behavior 40
Social Influences on Consumer Decision Making 41
Culture and Subculture 41
Social Class 42
Reference Groups and Families 43
Marketing Influences on Consumer Decision
Making 43
Product Influences 43
Price Influences 43
Promotion Influences 44
Place Influences 44
Situational Influences on Consumer Decision
Making 45
Psychological Influences on Consumer Decision
Making 45
Product Knowledge 45
Product Involvement 46
Consumer Decision Making 46
Need Recognition 47
Alternative Search 48
Alternative Evaluation 49
Purchase Decision 49

22. Postpurchase Evaluation 50
Conclusion 52
Chapter 4
Business, Government, and Institutional
Buying 53
Categories of Organizational Buyers 53
Producers 53
Intermediaries 54
Government Agencies 54
Other Institutions 54
The Organizational Buying Process 54
Purchase-Type Influences on Organizational Buying 55
Straight Rebuy 55
Modified Rebuy 55
New Task Purchase 55
Structural Influences on Organizational
Buying 56
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xii Contents
Purchasing Roles 56
Organization-Specific Factors 57
Purchasing Policies and Procedures 57

23. Behavioral Influences on Organizational
Buying 58
Personal Motivations 58
Role Perceptions 58
Stages in the Organizational Buying
Process 60
Organizational Need 61
Vendor Analysis 61
Purchase Activities 61
Postpurchase Evaluation 61
Conclusion 63
Chapter 5
Market Segmentation 64
Delineate the Firm’s Current
Situation 64
Determine Consumer Needs
and Wants 65
Divide Markets on Relevant Dimensions 65
A Priori versus Post Hoc Segmentation 66
Relevance of Segmentation Dimensions 66
Bases for Segmentation 67
Develop Product Positioning 73
Decide Segmentation Strategy 74
Design Marketing Mix Strategy 75
Conclusion 76
PART C
THE MARKETING MIX 77

24. Chapter 6
Product and Brand Strategy 78
Basic Issues in Product Management 78
Product Definition 78
Product Classification 79
Product Quality and Value 80
Product Mix and Product Line 81
Branding and Brand Equity 82
Packaging 86
Product Life Cycle 88
Product Adoption and Diffusion 91
The Product Audit 91
Deletions 91
Product Improvement 93
Organizing for Product Management 93
Conclusion 95
Chapter 7
New Product Planning and
Development 96
New Product Strategy 97
New Product Planning and Development
Process 99
Idea Generation 99
Idea Screening 101
Project Planning 102
Product Development 103
Test Marketing 103
Commercialization 104

25. The Importance of Time 104
Some Important New Product Decisions 105
Quality Level 105
Product Features 106
Product Design 106
Product Safety 107
Causes of New Product Failure 107
Need for Research 107
Conclusion 109
Chapter 8
Integrated Marketing Communications 110
Strategic Goals of Marketing
Communication 110
Create Awareness 110
Build Positive Images 110
Identify Prospects 110
Build Channel Relationships 111
Retain Customers 111
The Promotion Mix 111
Integrated Marketing Communications 112
Advertising: Planning and Strategy 114
Objectives of Advertising 114
Advertising Decisions 114
The Expenditure Question 115
The Allocation Question 118
Sales Promotion 122

26. Push versus Pull Marketing 122
Trade Sales Promotions 123
Consumer Promotions 124
What Sales Promotion Can and Can’t Do 124
Public Relations 126
Direct Marketing 126
Conclusion 127
Appendix
Major Federal Agencies Involved in Control
of Advertising 129
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Contents xiii
Chapter 9
Personal Selling, Relationship Building,
and Sales Management 130
Importance of Personal Selling 130
The Sales Process 131
Objectives of the Sales Force 131
The Sales Relationship-Building Process 132
People Who Support the Sales Force 138
Managing the Sales and Relationship-Building
Process 139
The Sales Management Task 139
Controlling the Sales Force 140

27. Motivating and Compensating Performance 144
Conclusion 144
Chapter 10
Distribution Strategy 146
The Need for Marketing Intermediaries 146
Classification of Marketing Intermediaries and
Functions 146
Channels of Distribution 148
Selecting Channels of Distribution 149
Specific Considerations 149
Managing a Channel of Distribution 152
Relationship Marketing in Channels 152
Vertical Marketing Systems 152
Wholesaling 155
Store and Nonstore Retailing 156
Store Retailing 156
Nonstore Retailing 157
Conclusion 160
Chapter 11
Pricing Strategy 161
Demand Influences on Pricing Decisions 161
Demographic Factors 161
Psychological Factors 161
Price Elasticity 162
Supply Influences on Pricing Decisions 163

28. Pricing Objectives 163
Cost Considerations in Pricing 163
Product Considerations in Pricing 165
Environmental Influences on Pricing
Decisions 166
Competition 166
Government Regulations 166
A General Pricing Model 167
Set Pricing Objectives 167
Evaluate Product–Price Relationships 167
Estimate Costs and Other Price Limitations 168
Analyze Profit Potential 169
Set Initial Price Structure 169
Change Price as Needed 170
Conclusion 170
PART D
MARKETING IN SPECIAL FIELDS 171
Chapter 12
The Marketing of Services 172
Important Characteristics of Services 174
Intangibility 174
Inseparability 175
Perishability and Fluctuating Demand 176
Client Relationship 176
Customer Effort 177
Uniformity 178
Providing Quality Services 178

29. Customer Satisfaction Measurement 180
The Importance of Internal Marketing 180
Overcoming the Obstacles in Service Marketing 182
Limited View of Marketing 182
Limited Competition 182
Noncreative Management 183
No Obsolescence 183
The Service Challenge 184
Banking 184
Health Care 184
Insurance 185
Travel 185
Implications for Service Marketers 186
Conclusion 187
Chapter 13
Global Marketing 188
The Competitive Advantage of Nations 189
Organizing for Global Marketing 190
Problems with Entering Foreign Markets 190
Organizing the Multinational Company 193
Programming for Global Marketing 195
Global Marketing Research 195
Global Product Strategy 198
Global Distribution Strategy 198
Global Pricing Strategy 199
Global Advertising and Sales Promotion
Strategy 199
Entry and Growth Strategies for Global Marketing 200

30. Conclusion 203
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xiv Contents
SECTION II
ANALYZING MARKETING PROBLEMS
AND CASES 205
A Case Analysis Framework 206
1. Analyze and Record the Current Situation 207
2. Analyze and Record Problems and Their Core
Elements 211
3. Formulate, Evaluate, and Record Alternative Courses
of Action 212
4. Select and Record the Chosen Alternative and
Implementation Details 213
Pitfalls to Avoid in Case Analysis 213
Communicating Case Analyses 216
The Written Report 216
The Oral Presentation 218
Conclusion 218
SECTION III
FINANCIAL ANALYSIS FOR
MARKETING DECISIONS 219
Financial Analysis 220

31. Break-Even Analysis 220
Net Present Value Analysis 222
Ratio Analysis 224
Conclusion 228
SECTION IV
DEVELOPING MARKETING PLANS 229
A Marketing Plan Framework 230
Title Page 231
Executive Summary 231
Table of Contents 232
Introduction 232
Situational Analysis 232
Marketing Planning 232
Implementation and Control of the Marketing Plan 234
Summary 236
Appendix—Financial Analysis 236
References 239
Conclusion 239
Chapter Notes 241
Index 248
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Confirming Pages
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ar
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Introduction APart
1 Strategic Planning and the Marketing Management Process
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33. Confirming Pages
Part A
Introduction
2
Chapter 1
Strategic Planning
and the Marketing
Management Process
The purpose of this introductory chapter is to present the
marketing management process
and outline what marketing managers must manage if they are to
be effective. In doing so,
it will also present a framework around which the remaining
chapters are organized. Our
first task is to review the organizational philosophy known as
the marketing concept, since
it underlies much of the thinking presented in this book. The
remainder of this chapter will
focus on the process of strategic planning and its relationship to
the process of marketing
planning.
THE MARKETING CONCEPT
Simply stated, the marketing concept means that an organization
should seek to make a
profit by serving the needs of customer groups. The concept is
very straightforward and has
a great deal of commonsense validity. Perhaps this is why it is
often misunderstood,
forgotten, or overlooked.

34. The purpose of the marketing concept is to rivet the attention of
marketing managers on
serving broad classes of customer needs (customer orientation),
rather than on the firm’s
current products (production orientation) or on devising
methods to attract customers to
current products (selling orientation). Thus, effective marketing
starts with the recognition
of customer needs and then works backward to devise products
and services to satisfy these
needs. In this way, marketing managers can satisfy customers
more efficiently in the
present and anticipate changes in customer needs more
accurately in the future. This means
that organizations should focus on building long-term customer
relationships in which the
initial sale is viewed as a beginning step in the process, not as
an end goal. As a result, the
customer will be more satisfied and the firm will be more
profitable.
The principal task of the marketing function operating under the
marketing concept is not
to manipulate customers to do what suits the interests of the
firm, but rather to find effective
and efficient means of making the business do what suits the
interests of customers. This is
not to say that all firms practice marketing in this way. Clearly,
many firms still emphasize
only production and sales. However, effective marketing, as
defined in this text, requires that
consumer needs come first in organizational decision making.
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35. Confirming Pages
One qualification to this statement deals with the question of a
conflict between con-
sumer wants and societal needs and wants. For example, if
society deems clean air and
water as necessary for survival, this need may well take
precedence over a consumer’s want
for goods and services that pollute the environment.
WHAT IS MARKETING?
Everyone reading this book has been a customer for most of his
or her life. Last evening you
stopped into a local supermarket to graze at the salad bar, pick
up some bottled water and a bag
of Fritos corn chips. While you were there, you snapped a $1.00
coupon for a new flavor salad
dressing out of a dispenser and tasted some new breakfast
potatoes being cooked in the back
of the store. As you sat down at home to eat your salad, you
answered the phone and someone
suggested that you need to have your carpets cleaned. Later on
in the evening you saw TV
commercials for tires, soft drinks, athletic shoes, and the
dangers of smoking …
MGT 491-SPL-WK-3
For each SLP question below, select three articles (published
within the past five years), each from different peer-reviewed
academic journals/magazines. [Utilize the above publications or
other peer-reviewed academic journal/magazine publications
you find through the Trident Online Library.] Find articles that
specifically address the following:
1. Mergers & Acquisitions: What main point(s) about merging

36. companies does the author make particularly relating to HRM?
Do you agree? Why or why not?
2. Reduction in Force (RIF): What main point(s) about RIFs
does the author make particularly relating to HRM? What steps
can HRM take to prepare employees for a possible RIF?
In your 2-page submission (not counting the cover page), create
a 2-sided flyer that HR department staff can give to each person
laid off due to Mergers & Acquisitions or a Reduction-in-Force.
Include both a cover page and reference page for this
assignment. These can be a separate document from the flyer.
Experiment with using Microsoft Publisher or its equivalent
free program found online for the 2-page flyer (a tri-fold flyer
might work best for you—you could then put the references on
the middle back column). Keeping the seriousness of the topic
in mind, use color, but keep the flyer business-like without
flamboyance. If you use a tri-fold template in Word or
Publisher, plan your layout first so that once it is folded
everything is in the right place.
Upload your assignment to the appropriate Dropbox. Be sure to
review your TurnItIn Originality report. If the score is over
20%, you may not be writing in your own words and you will
need to contact your professor and arrange to revise and
resubmit your assignment.
Citation and reference style instructions are available
at https://owl.english.purdue.edu/owl/resource/560/10/. Also see
Trident University's Student Guide to Writing a High-Quality
Academic Paper.
You will find the following useful as you critique sources:
Cornell University. (2015). Critically analyzing information
sources: Critical appraisal and analysis. Retrieved
from http://olinuris.library.cornell.edu/ref/research/skill26.htm
Cornell University. (2014). Evaluating Web sites: Criteria and
tools. Retrieved
from http://olinuris.library.cornell.edu/ref/research/webeval.htm
l