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MARKETING M A N A G E M E N T
Kotler Keller
GLOBAL EDITION
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PHILIP KOTLER Northwestern University
KEVIN LANE KELLER Dartmouth College
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Marketing Management
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners.
ISBN 10: 1-292-09262-9 ISBN 13: 978-1-292-09262-1
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This book is dedicated to my wife and best friend, Nancy, with love.
—PK
This book is dedicated to my wife, Punam, and my two daughters,
Carolyn and Allison, with much love and thanks.
—KLK
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Philip Kotler is one of the world’s leading authorities on marketing. He is the S. C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management, Northwestern University. He received his master’s degree at the University of Chicago and his Ph.D. at MIT, both in economics. He did postdoctoral work in mathematics at Harvard University and in behav- ioral science at the University of Chicago.
Dr. Kotler is the coauthor of Principles of Marketing and Marketing: An Introduction. His Strategic Marketing for Nonprofit Organizations, now in its seventh edition, is the best seller in that specialized area.
Dr. Kotler’s other books include Marketing Models; The New Competition; Marketing Professional Services; Strategic Marketing for Educational Institutions; Marketing for Health Care Organizations; Marketing Congregations; High Visibility; Social Marketing; Marketing Places; The Marketing of Nations; Marketing for Hospitality and Tourism; Standing Room Only—Strategies for Marketing the Performing Arts; Museum Strategy and Marketing; Marketing Moves; Kotler on Marketing; Lateral Marketing; Winning at Innovation; Ten Deadly Marketing Sins; Chaotics; Marketing Your Way to Growth; Winning Global Markets; and Corporate Social Responsibility.
In addition, he has published more than 150 articles in leading journals, including the Harvard Business Review, Sloan Management Review, Business Horizons, California Management Review, the Journal of Marketing, the Journal of Marketing Research, Management Science, the Journal of Business Strategy, and Futurist. He is the only three-time winner of the coveted Alpha Kappa Psi award for the best annual article published in the Journal of Marketing.
Professor Kotler was the first recipient of the American Marketing Association’s (AMA) Distinguished Marketing Educator Award (1985). The European Association of Marketing Consultants and Sales Trainers awarded him their Prize for Marketing Excellence. He was chosen as the Leader in Marketing Thought by the Academic Members of the AMA in a 1975 survey. He also received the 1978 Paul Converse Award of the AMA, honoring his original contribution to marketing. In 1995, the Sales and Marketing Executives International (SMEI) named him Marketer of the Year. In 2002, Professor Kotler received the Distinguished Educator Award from the Academy of Marketing Science. In 2013, he received the William L. Wilkie “Marketing for a Better World” Award and subsequently received the Sheth Foundation Medal for Exceptional Contribution to Marketing Scholarship and Practice. In 2014, he was inducted in the Marketing Hall of Fame.
He has received honorary doctoral degrees from Stockholm University, the University of Zurich, Athens University of Economics and Business, DePaul University, the Cracow School of Business and Economics, Groupe H.E.C. in Paris, the Budapest School of Economic Science and Public Administration, the University of Economics and Business Administration in Vienna, and Plekhanov Russian Academy of Economics. Professor Kotler has been a consultant to many major U.S. and foreign companies, including IBM, General Electric, AT&T, Honeywell, Bank of America, Merck, SAS Airlines, Michelin, and others in the areas of marketing strategy and planning, marketing organization, and international marketing.
He has been Chairman of the College of Marketing of the Institute of Management Sciences, a Director of the American Marketing Association, a Trustee of the Marketing Science Institute, a Director of the MAC Group, a member of the Yankelovich Advisory Board, and a member of the Copernicus Advisory Board. He was a member of the Board of Governors of the School of the Art Institute of Chicago and a member of the Advisory Board of the Drucker Foundation. He has traveled extensively throughout Europe, Asia, and South America, advising and lecturing to many companies about global marketing opportunities.
About the Authors P
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Kevin Lane Keller is the E. B. Osborn Professor of Marketing at the Tuck School of Business at Dartmouth College. Professor Keller has degrees from Cornell, Carnegie-Mellon, and Duke universities. At Dartmouth, he teaches MBA courses on mar- keting management and strategic brand management and lectures in executive programs on those topics.
Previously, Professor Keller was on the faculty at Stanford University, where he also served as the head of the marketing group. Additionally, he has been on the faculty at the University of California at Berkeley and the University of North Carolina at Chapel Hill, has been a visiting professor at Duke University and the Australian
Graduate School of Management, and has two years of industry experience as Marketing Consultant for Bank of America.
Professor Keller’s general area of expertise lies in marketing strategy and planning and branding. His specific research interest is in how understanding theories and concepts related to consumer behavior can improve marketing strategies. His research has been published in three of the major marketing journals: the Journal of Marketing, the Journal of Marketing Research, and the Journal of Consumer Research. He also has served on the Editorial Review Boards of those journals. With more than 90 pub- lished papers, his research has been widely cited and has received numerous awards.
Actively involved with industry, he has worked on a host of different types of marketing projects. He has served as a long-term consultant and advisor to marketers for some of the world’s most successful brands, including Accenture, American Express, Disney, Ford, Intel, Levi Strauss, Procter & Gamble, and Samsung. Additional brand consulting activities have been with other top companies such as Allstate, Beiersdorf (Nivea), BlueCross BlueShield, Campbell, Colgate, Eli Lilly, ExxonMobil, General Mills, GfK, Goodyear, Hasbro, Intuit, Johnson & Johnson, Kodak, L.L.Bean, Mayo Clinic, MTV, Nordstrom, Ocean Spray, Red Hat, SAB Miller, Shell Oil, Starbucks, Unilever, and Young & Rubicam. He has also served as an academic trustee for the Marketing Science Institute and served as their Executive Director from July 1, 2013, to July 1, 2015.
A popular and highly sought-after speaker, he has made speeches and conducted marketing semi- nars to top executives in a variety of forums. Some of his senior management and marketing training clients have included include such diverse business organizations as Cisco, Coca-Cola, Deutsche Telekom, ExxonMobil, GE, Google, IBM, Macy’s, Microsoft, Nestle, Novartis, Pepsico, SC Johnson and Wyeth. He has lectured all over the world, from Seoul to Johannesburg, from Sydney to Stockholm, and from Sao Paulo to Mumbai. He has served as keynote speaker at conferences with hundreds to thousands of participants.
Professor Keller is currently conducting a variety of studies that address strategies to build, mea- sure, and manage brand equity. His textbook on those subjects, Strategic Brand Management, in its fourth edition, has been adopted at top business schools and leading firms around the world and has been heralded as the “bible of branding.”
An avid sports, music, and film enthusiast, in his so-called spare time, he has helped to manage and market, as well as serve as executive producer for, one of Australia’s great rock-and-roll treasures, The Church, as well as American power-pop legends Tommy Keene and Dwight Twilley. He also serves on the Board of Directors for The Doug Flutie, Jr. Foundation for Autism, the Lebanon Opera House, and the Montshire Museum of Science. Professor Keller lives in Etna, NH, with his wife, Punam (also a Tuck marketing professor), and his two daughters, Carolyn and Allison.
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Brief Contents Preface 17
PART 1 Understanding Marketing Management 24 Chapter 1 Defining Marketing for the New Realities 25 Chapter 2 Developing Marketing Strategies and Plans 57
PART 2 Capturing Marketing Insights 88 Chapter 3 Collecting Information and Forecasting Demand 89 Chapter 4 Conducting Marketing Research 121
PART 3 Connecting with Customers 148 Chapter 5 Creating Long-Term Loyalty Relationships 149 Chapter 6 Analyzing Consumer Markets 179 Chapter 7 Analyzing Business Markets 211 Chapter 8 Tapping into Global Markets 239
PART 4 Building Strong Brands 266 Chapter 9 Identifying Market Segments and Targets 267 Chapter 10 Crafting the Brand Positioning 297 Chapter 11 Creating Brand Equity 321 Chapter 12 Addressing Competition and Driving Growth 357
PART 5 Creating Value 388 Chapter 13 Setting Product Strategy 389 Chapter 14 Designing and Managing Services 421 Chapter 15 Introducing New Market Offerings 451 Chapter 16 Developing Pricing Strategies and Programs 483
PART 6 Delivering Value 514 Chapter 17 Designing and Managing Integrated Marketing Channels 515 Chapter 18 Managing Retailing, Wholesaling, and Logistics 549
PART 7 Communicating Value 578 Chapter 19 Designing and Managing Integrated Marketing Communications 579 Chapter 20 Managing Mass Communications: Advertising, Sales Promotions, Events
and Experiences, and Public Relations 607 Chapter 21 Managing Digital Communications: Online, Social Media, and Mobile 637 Chapter 22 Managing Personal Communications: Direct and Database Marketing and
Personal Selling 657
PART 8 Conducting Marketing Responsibly for Long-Term Success 678
Chapter 23 Managing a Holistic Marketing Organization for the Long Run 679
Appendix: Sonic Marketing Plan and Exercises A1 Endnotes E1 Glossary G1 Name Index I1 Company, Brand, and Organization Index I5 Subject Index I18
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Contents Preface 17
PART 1 Understanding Marketing Management 24
Chapter 1 Defining Marketing for the New Realities 25
The Value of Marketing 25 Marketing Decision Making 25 Winning Marketing 26
The Scope of Marketing 27 What Is Marketing? 27 What Is Marketed? 27 Who Markets? 29
Core Marketing Concepts 31 Needs, Wants, and Demands 31 Target Markets, Positioning, and
Segmentation 31 Offerings and Brands 32 Marketing Channels 32 Paid, Owned, and Earned Media 32 Impressions and Engagement 32 Value and Satisfaction 33 Supply Chain 33 Competition 34 Marketing Environment 34
The New Marketing Realities 35 Technology 35 Globalization 36 Social Responsibility 36
MARKETING INSIGHT Getting to Marketing 3.0 37
A Dramatically Changed Marketplace 38 New Consumer Capabilities 38 New Company Capabilities 39 Changing Channels 41 Heightened Competition 41
Marketing in Practice 41 Marketing Balance 41
MARKETING MEMO Reinventing Marketing at Coca-Cola 42
Marketing Accountability 42 Marketing in the Organization 42
Company Orientation toward the Marketplace 42
The Production Concept 42 The Product Concept 43
The Selling Concept 43 The Marketing Concept 43 The Holistic Marketing Concept 43
Updating the Four Ps 47
MARKETING INSIGHT Understanding the 4 As of Marketing 48
Marketing Management Tasks 49 Developing Marketing Strategies and
Plans 49 Capturing Marketing Insights 50 Connecting with Customers 50 Building Strong Brands 50
MARKETING MEMO Marketers’ Frequently Asked Questions 50
Creating Value 51 Delivering Value 51 Communicating Value 51 Conducting Marketing Responsibly for
Long-Term Success 51 Summary 51 Applications 52
MARKETING EXCELLENCE Nike 52
MARKETING EXCELLENCE Google 54
Chapter 2 Developing Marketing Strategies and Plans 57
Marketing and Customer Value 57 The Value Delivery Process 57 The Value Chain 58 Core Competencies 58 The Central Role of Strategic Planning 59
Corporate and Division Strategic Planning 60
MARKETING MEMO What Does It Take to Be a Successful CMO? 61
Defining the Corporate Mission 61 Establishing Strategic Business Units 64 Assigning Resources to Each SBU 64 Assessing Growth Opportunities 64 Organization and Organizational Culture 68 Marketing Innovation 69
MARKETING INSIGHT Creating Innovative Marketing 69
Business Unit Strategic Planning 70 The Business Mission 71 SWOT Analysis 71
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MARKETING MEMO Checklist for Evaluating Strengths/Weaknesses Analysis 73
Goal Formulation 74 Strategic Formulation 74 Program Formulation and
Implementation 75
MARKETING INSIGHT Businesses Charting a New Direction 76
Feedback and Control 77 The Nature and Contents of a Marketing
Plan 77
MARKETING MEMO Marketing Plan Criteria 77
The Role of Research 78 The Role of Relationships 78 From Marketing Plan to Marketing
Action 79 Summary 79 Applications 80
MARKETING EXCELLENCE Electrolux 80
MARKETING EXCELLENCE Emirates 81 Sample Marketing Plan: Pegasus Sports
International 83
PART 2 Capturing Marketing Insights 88
Chapter 3 Collecting Information and Forecasting Demand 89
Components of a Modern Marketing Information System 89
Internal Records 91 The Order-to-Payment Cycle 91 Sales Information Systems 91 Databases, Data Warehousing, and Data
Mining 91
MARKETING INSIGHT Digging Into Big Data 92
Marketing Intelligence 92 The Marketing Intelligence System 92 Collecting Marketing Intelligence on the
Internet 94 Communicating and Acting on Marketing
Intelligence 94 Analyzing the Macroenvironment 94
Needs and Trends 95 Identifying the Major Forces 95 The Demographic Environment 96
MARKETING MEMO Finding Gold at the Bottom of the Pyramid 97
The Economic Environment 99 The Sociocultural Environment 100 The Natural Environment 101
MARKETING INSIGHT The Green Marketing Revolution 103
The Technological Environment 104 The Political-Legal Environment 105
MARKETING INSIGHT Watching Out for Big Brother 107
Forecasting and Demand Measurement 107 The Measures of Market Demand 108 A Vocabulary for Demand Measurement 109 Estimating Current Demand 111 Estimating Future Demand 113
Summary 115 Applications 116
MARKETING EXCELLENCE Microsoft 116
MARKETING EXCELLENCE Ferrero 117
Chapter 4 Conducting Marketing Research 121
The Scope of Marketing Research 121 Importance of Marketing Insights 121 Who Does Marketing Research? 122 Overcoming Barriers to the Use of Marketing
Research 123 The Marketing Research Process 124
Step 1: Define the Problem, the Decision Alternatives, and the Research Objectives 124
Step 2: Develop the Research Plan 125
MARKETING MEMO Conducting Informative Focus Groups 127
MARKETING MEMO Marketing Questionnaire Dos And Don’ts 130
MARKETING INSIGHT Getting into the Heads of Consumers 131
MARKETING INSIGHT Understanding Brain Science 133
Step 3: Collect the Information 135 Step 4: Analyze the Information 135 Step 5: Present the Findings 135
MARKETING INSIGHT Bringing Marketing Research to Life with Personas 136
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Step 6: Make the Decision 136 Measuring Marketing Productivity 137
Marketing Metrics 137
MARKETING MEMO Measuring Social Media ROI 139
Marketing-Mix Modeling 140 Marketing Dashboards 140
MARKETING MEMO Designing Effective Marketing Dashboards 141
Summary 143 Applications 143
MARKETING EXCELLENCE IDEO 144
MARKETING EXCELLENCE Intuit 146
PART 3 Connecting with Customers 148
Chapter 5 Creating Long-Term Loyalty Relationships 149
Building Customer Value, Satisfaction, and Loyalty 149
Customer-Perceived Value 150 Total Customer Satisfaction 153 Monitoring Satisfaction 155 Product and Service Quality 156
MARKETING INSIGHT Net Promoter and Customer Satisfaction 157
Maximizing Customer Lifetime Value 158 Customer Profitability 159 Measuring Customer Lifetime
Value 160 Attracting and Retaining Customers 160
MARKETING MEMO Calculating Customer Lifetime Value 161
Building Loyalty 164 Brand Communities 165 Win-Backs 168
Cultivating Customer Relationships 168 Customer Relationship Management 168
MARKETING INSIGHT The Behavioral Targeting Controversy 169
Summary 174 Applications 174
MARKETING EXCELLENCE Audi 175
MARKETING EXCELLENCE Harley-Davidson 176
Chapter 6 Analyzing Consumer Markets 179
What Influences Consumer Behavior? 179 Cultural Factors 179 Social Factors 181 Personal Factors 183
MARKETING MEMO The Average U.S. Consumer Quiz 184
Key Psychological Processes 187 Motivation 187 Perception 189
MARKETING MEMO The Power of Sensory Marketing 189
Learning 191 Emotions 192 Memory 193
The Buying Decision Process: The Five-Stage Model 194
Problem Recognition 195 Information Search 196 Evaluation of Alternatives 197 Purchase Decision 198 Postpurchase Behavior 200 Moderating Effects on Consumer Decision
Making 202 Behavioral Decision Theory and Behavioral
Economics 202 Decision Heuristics 203 Framing 204
Summary 205 Applications 205
MARKETING EXCELLENCE Disney 206
MARKETING EXCELLENCE IKEA 207
Chapter 7 Analyzing Business Markets 211
What is Organizational Buying? 211 The Business Market versus the Consumer
Market 211 Buying Situations 214
Participants in the Business Buying Process 215
The Buying Center 216 Buying Center Influences 216 Targeting Firms and Buying Centers 217
MARKETING INSIGHT Big Sales to Small Businesses 218
The Purchasing/Procurement Process 219 Stages in the Buying Process 220
Problem Recognition 220
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General Need Description and Product Specification 221
Supplier Search 221 Proposal Solicitation 223 Supplier Selection 223
MARKETING MEMO Developing Compelling Customer Value Propositions 224
Order-Routine Specification 226 Performance Review 226
Developing Effective Business-to-Business Marketing Programs 226
Communication and Branding Activities 226 Systems Buying and Selling 228
MARKETING MEMO Spreading the Word with Customer Reference Programs 229
Role of Services 229 Managing Business-to-Business Customer
Relationships 230 The Benefits of Vertical Coordination 230
MARKETING INSIGHT Establishing Corporate Trust, Credibility, and Reputation 231
Risks and Opportunism in Business Relationships 231
Institutional and Government Markets 233 Summary 234 Applications 235
MARKETING EXCELLENCE Accenture 235
MARKETING EXCELLENCE GE 236
Chapter 8 Tapping into Global Markets 239
Competing on a Global Basis 239 Deciding Whether to Go Abroad 241 Deciding Which Markets to Enter 242
How Many Markets to Enter 242 Evaluating Potential Markets 243 Succeeding in Developing
Markets 243 Deciding How to Enter the Market 248
Indirect and Direct Export 249 Licensing 249 Joint Ventures 250 Direct Investment 250 Acquisition 250
Deciding on the Marketing Program 251 Global Similarities and Differences 252 Marketing Adaptation 253 Global Product Strategies 254
Global Communication Strategies 257 Global Pricing Strategies 257 Global Distribution Strategies 259
Country-of-Origin Effects 260 Building Country Images 260 Consumer Perceptions of Country of
Origin 261 Summary 262 Applications 263
MARKETING EXCELLENCE Twitter 263
MARKETING EXCELLENCE L’Oréal 264
PART 4 Building Strong Brands 266
Chapter 9 Identifying Market Segments and Targets 267
Bases for Segmenting Consumer Markets 268
Geographic Segmentation 268 Demographic Segmentation 271 Psychographic Segmentation 280 Behavioral Segmentation 281
How Should Business Markets Be Segmented? 283
Market Targeting 284 Effective Segmentation Criteria 285
Evaluating and Selecting the Market Segments 286
MARKETING INSIGHT Chasing the Long Tail 289
MARKETING MEMO Protecting Kids Online 291
Summary 291 Applications 292
MARKETING EXCELLENCE HSBC 292
MARKETING EXCELLENCE BMW 294
Chapter 10 Crafting the Brand Positioning 297
Developing a Brand Positioning 297 Understanding Positioning and Value
Propositions 297 Choosing a Competitive Frame of
Reference 298 Identifying Potential Points-of-Difference
and Points-of-Parity 300
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Choosing Specific POPs and PODs 304 Brand Mantras 307
Establishing a Brand Positioning 309
MARKETING MEMO Constructing a Brand Positioning Bull’s-eye 309
Alternative Approaches to Positioning 313 Brand Narratives and Storytelling 313 Cultural Branding 314
Positioning and Branding for A Small Business 314
Summary 317 Applications 317
MARKETING EXCELLENCE Nespresso 318
MARKETING EXCELLENCE Philips 319
Chapter 11 Creating Brand Equity 321
How Does Branding Work? 321 The Role of Brands 322 The Scope of Branding 323
Defining Brand Equity 324 Brand Equity Models 326
MARKETING INSIGHT Brand Bubble Trouble 328
Building Brand Equity 331
MARKETING MEMO The Marketing Magic of Characters 332
Designing Holistic Marketing Activities 332 Leveraging Secondary Associations 334 Internal Branding 336
Measuring Brand Equity 337
MARKETING INSIGHT The Brand Value Chain 337
MARKETING INSIGHT What Is a Brand Worth? 339
Managing Brand Equity 340 Brand Reinforcement 340 Brand Revitalization 341
Devising a Branding Strategy 343 Branding Decisions 344 Brand Portfolios 345 Brand Extensions 347
Customer Equity 350
MARKETING MEMO Twenty-First-Century Branding 351
Summary 352 Applications 352
MARKETING EXCELLENCE McDonald’s 353
MARKETING EXCELLENCE Procter & Gamble 354
Chapter 12 Addressing Competition and Driving Growth 357
Growth 357 Growth Strategies 357 Growing the Core 358
Competitive Strategies for Market Leaders 359
Expanding Total Market Demand 360 Protecting Market Share 361 Increasing Market Share 363
Other Competitive Strategies 364 Market-Challenger Strategies 364 Market-Follower Strategies 366
MARKETING INSIGHT The Costs and Benefits of Fast Fashion 367
Market-Nicher Strategies 368
MARKETING MEMO Niche Specialist Roles 370
Product Life-Cycle Marketing Strategies 370 Product Life Cycles 370 Style, Fashion, and Fad Life Cycles 371 Marketing Strategies: Introduction Stage and
the Pioneer Advantage 373
MARKETING INSIGHT Understanding Double Jeopardy 374
Marketing Strategies: Growth Stage 375 Marketing Strategies: Maturity Stage 376 Marketing Strategies: Decline Stage 377
MARKETING MEMO Managing a Marketing Crisis 378
Evidence for the Product Life-Cycle Concept 380
Critique of the Product Life-Cycle Concept 381
Market Evolution 381 Marketing in a Slow-Growth Economy 381
Explore the Upside of Increasing Investment 381
Get Closer to Customers 382 Review Budget Allocations 382 Put Forth the Most Compelling Value
Proposition 382 Fine-Tune Brand and Product Offerings 383
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Summary 384 Applications 384
MARKETING EXCELLENCE Samsung 385
MARKETING EXCELLENCE SABIC 386
PART 5 Creating Value 388
Chapter 13 Setting Product Strategy 389
Product Characteristics and Classifications 389
Product Levels: The Customer-Value Hierarchy 389
Product Classifications 391 Differentiation 392
Product Differentiation 393 Services Differentiation 394
Design 396 Design Leaders 396 Power of Design 397 Approaches to Design 397
Luxury Products 398 Characterizing Luxury Brands 398 Growing Luxury Brands 398 Marketing Luxury Brands 399
Environmental Issues 400
MARKETING MEMO A Sip or A Gulp: Environmental Concerns in the Water Industry 401
Product and Brand Relationships 401 The Product Hierarchy 402 Product Systems and Mixes 402 Product Line Analysis 403 Product Line Length 404
MARKETING INSIGHT When Less Is More 405
Product Mix Pricing 408 Co-Branding and Ingredient
Branding 409
MARKETING MEMO Product-Bundle Pricing Considerations 410
Packaging, Labeling, Warranties, and Guarantees 412
Packaging 412 Labeling 414 Warranties and Guarantees 415
Summary 415 Applications 416
MARKETING EXCELLENCE Nivea 416
MARKETING EXCELLENCE Toyota 418
Chapter 14 Designing and Managing Services 421
The Nature of Services 421 Service Industries Are Everywhere 421 Categories of Service Mix 422 Distinctive Characteristics of Services 424
The New Services Realities 428 A Shifting Customer Relationship 428
MARKETING MEMO Lights! Cameras! Customer Service Disasters! 430
Achieving Excellence In Services Marketing 431
Marketing Excellence 431 Technology and Service
Delivery 432 Best Practices of Top Service
Companies 433 Differentiating Services 435
MARKETING INSIGHT Improving Company Call Centers 436
Managing Service Quality 439 Managing Customer Expectations 440
MARKETING MEMO Recommendations for Improving Service Quality 441
Incorporating Self-Service Technologies (SSTS) 443
Managing Product-Support Services 444 Identifying and Satisfying Customer
Needs 444 Postsale Service Strategy 445
Summary 445 Applications 446
MARKETING EXCELLENCE Club Med 446
MARKETING EXCELLENCE Parkway Group Hotels 448
Chapter 15 Introducing New Market Offerings 451
New-Product Options 451 Make or Buy 451 Types of New Products 452
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Challenges in New-Product Development 453
The Innovation Imperative 454 New-Product Success 454 New-Product Failure 455
Organizational Arrangements 456 Budgeting for New-Product Development 456 Organizing New-Product Development 457
Managing the Development Process: Ideas 460 Generating Ideas 460
MARKETING MEMO Ten Ways to Find Great New-Product Ideas 460
MARKETING INSIGHT P&G’S Connect + Develop Approach to Innovation 461
MARKETING MEMO Seven Ways to Draw New Ideas from Your Customers 462
MARKETING MEMO How to Run a Successful Brainstorming Session 464
Using Idea Screening 465 Managing the Development Process: Concept
to Strategy 467 Concept Development and Testing 467 Marketing Strategy Development 470 Business Analysis 470
Managing the Development Process: Development to Commercialization 472
Product Development 472 Market Testing 473 Commercialization 475
The Consumer-Adoption Process 476 Stages in the Adoption Process 476 Factors Influencing the Adoption
Process 476 Summary 478 Applications 479
MARKETING EXCELLENCE Apple 479
MARKETING EXCELLENCE Salesforce.com 481
Chapter 16 Developing Pricing Strategies and Programs 483
Understanding Pricing 483 Pricing in a Digital World 484 A Changing Pricing Environment 484
MARKETING INSIGHT Giving It All Away 485
How Companies Price 486 Consumer Psychology and Pricing 487
Setting the Price 489 Step 1: Selecting the Pricing Objective 489
MARKETING INSIGHT Trading Up, Down, and Over 490
Step 2: Determining Demand 492 Step 3: Estimating Costs 494
MARKETING MEMO How to Cut Costs 496
Step 4: Analyzing Competitors’ Costs, Prices, and Offers 496
Step 5: Selecting a Pricing Method 497 Step 6: Selecting the Final Price 502
MARKETING INSIGHT Stealth Price Increases 503
Adapting the Price 504 Geographical Pricing (Cash, Countertrade,
Barter) 504 Price Discounts and Allowances 504 Promotional Pricing 505 Differentiated Pricing 506
Initiating and Responding to Price Changes 507
Initiating Price Cuts 507 Initiating Price Increases 508 Anticipating Competitive Responses 508 Responding to Competitors’ Price
Changes 509 Summary 510 Applications 510
MARKETING EXCELLENCE eBay 511
MARKETING EXCELLENCE Air Arabia 512
PART 6 Delivering Value 514
Chapter 17 Designing and Managing Integrated Marketing Channels 515
Marketing Channels and Value Networks 516
The Importance of Channels 516 Multichannel Marketing 516 Integrating Multichannel Marketing
Systems 517 Value Networks 519 The Digital Channels Revolution 520
The Role of Marketing Channels 521 Channel Functions and Flows 522 Channel Levels 523 Service Sector Channels 524
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Channel-Design Decisions 525 Analyzing Customer Needs and Wants 525
MARKETING INSIGHT Understanding the Showrooming Phenomena 525
Establishing Objectives and Constraints 526 Identifying Major Channel Alternatives 527 Evaluating Major Channel
Alternatives 529 Channel-Management Decisions 530
Selecting Channel Members 530 Training and Motivating Channel
Members 530 Evaluating Channel Members 531 Modifying Channel Design and
Arrangements 532 Channel Modification Decisions 532 Global Channel Considerations 532
Channel Integration and Systems 534 Vertical Marketing Systems 534 Horizontal Marketing Systems 536
E-Commerce Marketing Practices 536 Pure-Click Companies 536 Brick-and-Click Companies 537
M-Commerce Marketing Practices 538 Changes in Customer and Company
Behavior 539 M-Commerce Marketing Practices 539 Privacy 540
Conflict, Cooperation, and Competition 540 Types of Conflict and Competition 541 Causes of Channel Conflict 541 Managing Channel Conflict 541 Dilution and Cannibalization 543 Legal and Ethical Issues in Channel
Relations 543 Summary 543 Applications 544
MARKETING EXCELLENCE Amazon.com 544
MARKETING EXCELLENCE Tesco 546
Chapter 18 Managing Retailing,Wholesaling, and Logistics 549
Retailing 549 Types of Retailers 550
MARKETING MEMO Innovative Retail Organizations 551
The Modern Retail Marketing Environment 554
MARKETING INSIGHT The Growth of Shopper Marketing 556
Marketing Decisions 557
MARKETING MEMO Helping Stores to Sell 562
Private Labels 563 Role of Private Labels 564 Private-Label Success Factors 564
MARKETING INSIGHT Manufacturer’s Response to the Private-Label Threat 565
Wholesaling 565 Trends in Wholesaling 567
Market Logistics 567 Integrated Logistics Systems 568 Market-Logistics Objectives 569 Market-Logistics Decisions 570
Summary 573 Applications 574
MARKETING EXCELLENCE Zara 574
MARKETING EXCELLENCE Best Buy 576
PART 7 Communicating Value 578
Chapter 19 Designing and Managing Integrated Marketing Communications 579
The Role of Marketing Communications 580 The Changing Marketing Communications
Environment 580
MARKETING INSIGHT Don’t Touch That Remote 580
Marketing Communications Mix 581 How Do Marketing Communications
Work? 583 The Communications Process Models 584
Developing Effective Communications 586 Identify the Target Audience 586 Set the Communications Objectives 587 Design the Communications 587 Select the Communications
Channels 590
MARKETING MEMO Celebrity Endorsements as a Message Strategy 591
MARKETING INSIGHT Playing Tricks to Build a Brand 593
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Establish the Total Marketing Communications Budget 594
Selecting the Marketing Communications Mix 595
Characteristics of the Marketing Communications Mix 596
Factors in Setting the Marketing Communications Mix 597
Measuring Communication Results 599 Managing the Integrated Marketing
Communications Process 599 Coordinating Media 601 Implementing IMC 601
MARKETING MEMO How Integrated Is Your IMC Program? 601
Summary 602 Applications 603
MARKETING EXCELLENCE Red Bull 603
MARKETING EXCELLENCE L’Oreal 604
Chapter 20 Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations 607
Developing and Managing an Advertising Program 608
Setting the Advertising Objectives 609 Deciding on the Advertising Budget 609 Developing the Advertising
Campaign 610
MARKETING MEMO Print Ad Evaluation Criteria 612
MARKETING INSIGHT Off-Air Ad Battles 614
Choosing Media 615
MARKETING INSIGHT Playing Games with Brands 618
MARKETING MEMO Winning The Super Bowl of Advertising 619
Evaluating Advertising Effectiveness 621 Sales Promotion 622
Advertising Versus Promotion 622 Major Decisions 623
Events and Experiences 626 Events Objectives 626 Major Sponsorship Decisions 627
MARKETING MEMO Measuring High- Performance Sponsorship Programs 628
Creating Experiences 628 Public Relations 629
Marketing Public Relations 629 Major Decisions in Marketing PR 630
Summary 631 Applications 632
MARKETING EXCELLENCE Evian 632
MARKETING EXCELLENCE Gillette 634
Chapter 21 Managing Digital Communications: Online, Social Media, and Mobile 637
Online Marketing 637 Advantages and Disadvantages of Online
Marketing Communications 638 Online Marketing Communication
Options 639
MARKETING MEMO How to Maximize the Marketing Value of E-mails 642
Social Media 642 Social Media Platforms 643 Using Social Media 644
Word of Mouth 645 Forms of Word of Mouth 646 Creating Word-of-Mouth Buzz 646
MARKETING MEMO How to Start a Buzz Fire 648
MARKETING INSIGHT Tracking Online Buzz 649
Measuring the Effects of Word of Mouth 650
Mobile Marketing 650 The Scope of Mobile Marketing 650 Developing Effective Mobile Marketing
Programs 651 Mobile Marketing across Markets 651
Summary 652 Applications 653
MARKETING EXCELLENCE Facebook 653
MARKETING EXCELLENCE Unilever (Axe and Dove) 654
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Chapter 22 Managing Personal Communications: Direct and Database Marketing and Personal Selling 657
Direct Marketing 657 The Benefits of Direct Marketing 658 Direct Mail 659 Catalog Marketing 660 Telemarketing 660 Other Media for Direct-Response
Marketing 661 Public and Ethical Issues in Direct
Marketing 661 Customer Databases and Database
Marketing 662 Customer Databases 662 Data Warehouses and Data Mining 662 The Downside of Database Marketing 664
Designing the Sales Force 664 Sales Force Objectives and Strategy 666 Sales Force Structure 667
MARKETING INSIGHT Major Account Management 668
Sales Force Size 668 Sales Force Compensation 668
Managing the Sales Force 669 Recruiting and Selecting
Representatives 669 Training and Supervising Sales
Representatives 669 Sales Rep Productivity 670 Motivating Sales Representatives 670 Evaluating Sales Representatives 671
Principles of Personal Selling 673 The Six Steps 673 Relationship Marketing 674
Summary 675 Applications 675
MARKETING EXCELLENCE Progressive 676
MARKETING EXCELLENCE Victoria’s Secret 677
PART 8 Conducting Marketing Responsibly for Long-term Success 678
Chapter 23 Managing a Holistic Marketing Organization for the Long Run 679
Trends in Marketing Practices 679 Internal Marketing 680
MARKETING MEMO Characteristics of Company Departments That Are Truly Customer Driven 681
Organizing the Marketing Department 682 Relationships with Other Departments 684 Building a Creative Marketing
Organization 684
MARKETING INSIGHT The Marketing CEO 685
Socially Responsible Marketing 685 Corporate Social Responsibility 686
MARKETING INSIGHT The Rise of Organic 689
Socially Responsible Business Models 690
Cause-Related Marketing 690
MARKETING MEMO Making a Difference: Top 10 Tips for Cause Branding 693
Social Marketing 694 Marketing Implementation and Control 697
Marketing Implementation 697 Marketing Control 697
The Future of Marketing 702
MARKETING MEMO Major Marketing Weaknesses 703
Summary 705 Applications 705
MARKETING EXCELLENCE Starbucks 706
MARKETING EXCELLENCE Virgin Group 707
Appendix Tools for Marketing Control 709
Appendix: Sonic Marketing Plan and Exercises A1 Endnotes E1 Glossary G1 Name Index I1 Company, Brand, and Organization Index I5 Subject Index I18
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Preface What’s New in the 15th Edition The 15th edition of is a landmark entry in the long successful history of the market leader. With the 15th edition, great care was taken to provide an introductory guide to marketing management that truly reflects the modern realities of marketing. In doing so, classic concepts, guidelines, and examples were retained while new ones were added as appropriate. Three broad forces—globalization, technology, and social responsibility—were identified as critical to the success of modern marketing programs. These three topics are evident all through the text.
As has been the case for a number of editions now, the overriding goal of the revision for the 15th edition of was to create as comprehensive, current, and engaging a MBA marketing textbook as possible. Where appropriate, new material was added, old material was updated, and no longer relevant or necessary material was deleted.
Even though marketing is changing in many significant ways these days, many core elements remain, and we feel strongly that a balanced approach of classic and contemporary approaches and perspectives is the way to go. 15th edition, allows those instructors who have used the 14th edition to build on what they have learned and done while at the same time offering a text that is unsurpassed in breadth, depth, and relevance for students experiencing for the first time.
The successful across-chapter reorganization into eight parts that began with the 12th edition of has largely been preserved, although several adjustments have been made to improve student
understanding, as described below. Many of the favorably received within-chapter features that have been introduced through the years, such as topical chapter openers, in-text boxes highlighting noteworthy compa- nies or issues, and the Marketing Insight and Marketing Memo boxes that provide in-depth conceptual and practical commentary, have been retained.
Significant changes to the 15th edition include:
Brand-new opening vignettes for each chapter set the stage for the chapter material to follow. By covering topical brands or companies, the vignettes are great classroom discussion starters. Almost half of the in-text boxes are new. These boxes provide vivid illustrations of chapter concepts using actual companies and situations. The boxes cover a variety of products, services, and markets, and many have accompanying illustrations in the form of ads or product shots. Each end-of-chapter section now includes two expanded Marketing Excellence mini-cases highlighting innovative, insightful marketing accomplishments by leading organizations. Each case includes questions that promote classroom discussion and student analysis. The global chapter (8, previously Chapter 21) has been moved into Part 3 on Connecting with Customers and the new products chapter (15, previously Chapter 20) has been moved into Part 5 on Creating Value. The positioning and brand chapters (10 and 11) have been switched to allow for the conventional STP sequencing. These moves permit richer coverage of the topics and better align with many instructors’ teaching strategy. A new chapter (21) titled Managing Digital Communications: Online, Social Media, and Mobile has been added to better highlight that important topic. Significant attention is paid throughout the text to what a new section in Chapter 1 calls “the digital revolution.” The concluding chapter (23) has been retitled “Managing a Holistic Marketing Organization for the Long Run” and addresses corporate social responsibility, business ethics, and sustainability, among other topics. Chapter 12 (previously Chapter 11) has been retitled “Addressing Competition and Driving Growth” to acknowledge the importance of growth to an organization.
What Is Marketing Management All About? is the leading marketing text because its content and organization consistently reflect
changes in marketing theory and practice. The very first edition of published in 1967, introduced the concept that companies must be customer and market driven. But there was little mention of
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what have now become fundamental topics such as segmentation, targeting, and positioning. Concepts such as brand equity, customer value analysis, database marketing, e-commerce, value networks, hybrid channels, supply chain management, and integrated marketing communications were not even part of the marketing vocabulary then. continues to reflect the changes in the marketing discipline over the past almost 50 years.
Firms now sell goods and services through a variety of direct and indirect channels. Mass advertis- ing is not nearly as effective as it was, so marketers are exploring new forms of communication, such as experiential, entertainment, and viral marketing. Customers are telling companies what types of product or services they want and when, where, and how they want to buy them. They are increasingly reporting to other consumers what they think of specific companies and products—using e-mail, blogs, podcasts, and other digital media to do so. Company messages are becoming a smaller fraction of the total “conversation” about products and services.
In response, companies have shifted gears from managing product portfolios to managing portfolios, compiling databases on individual customers so they can understand them better and construct individualized offerings and messages. They are doing less product and service standardization and more niching and customization. They are replacing monologues with customer dialogues. They are improving their methods of measuring customer profitability and customer lifetime value. They are intent on measur- ing the return on their marketing investment and its impact on shareholder value. They are also concerned with the ethical and social implications of their marketing decisions.
As companies change, so does their marketing organization. Marketing is no longer a company depart- ment charged with a limited number of tasks—it is a company-wide undertaking. It drives the company’s vision, mission, and strategic planning. Marketing includes decisions like whom the company wants as its customers, which of their needs to satisfy, what products and services to offer, what prices to set, what communications to send and receive, what channels of distribution to use, and what partnerships to develop. Marketing succeeds only when all departments work together to achieve goals: when engineering designs the right products; finance furnishes the required funds; purchasing buys high-quality materials; produc- tion makes high-quality products on time; and accounting measures the profitability of different customers, products, and areas.
To address all these different shifts, good marketers are practicing holistic marketing. is the development, design, and implementation of marketing programs, processes, and activities that recog- nize the breadth and interdependencies of today’s marketing environment. Four key dimensions of holistic marketing are:
—ensuring everyone in the organization embraces appropriate marketing principles, especially senior management.
—ensuring that multiple means of creating, delivering, and communicating value are employed and combined in the best way.
—having rich, multifaceted relationships with customers, channel members, and other marketing partners.
—understanding returns to the business from marketing activities and programs, as well as addressing broader concerns and their legal, ethical, social, and environmental effects.
These four dimensions are woven throughout the book and at times spelled out explicitly. The text is organized to specifically address the following eight tasks that constitute modern marketing management in the 21st century:
Developing marketing strategies and plans Capturing marketing insights Connecting with customers Building strong brands Creating value Delivering value
Communicating value Conducting marketing responsibly for long-term success
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What Makes Marketing Management the Marketing Leader? Marketing is of interest to everyone, whether they are marketing goods, services, properties, persons, places, events, information, ideas, or organizations. As it has maintained its respected position among students, educators, and businesspeople, has kept up to date and contemporary. Students (and instructors) feel that the book is talking directly to them in terms of both content and delivery.
owes its marketplace success to its ability to maximize three dimensions that characterize the best marketing texts—depth, breadth, and relevance—as measured by the following criteria:
Does the book have solid academic grounding? Does it contain important theoretical concepts, models, and frameworks? Does it provide conceptual guidance to solve practical problems?
Does the book cover all the right topics? Does it provide the proper amount of emphasis on those topics?
Does the book engage the reader? Is it interesting to read? Does it have lots of compelling examples?
The 15th edition builds on the fundamental strengths of past editions that collectively distinguish it from all other marketing management texts:
The book focuses on the major decisions that marketing managers and top management face in their efforts to harmonize the organization’s objectives, capabilities, and resources with marketplace needs and opportunities.
presents conceptual tools and frameworks for analyz- ing recurring problems in marketing management. Cases and examples illustrate effective marketing principles, strategies, and practices.
The book draws on the rich findings of various scientific disciplines— economics, behavioral science, management theory, and mathematics—for fundamental concepts and tools directly applicable to marketing challenges.
The book applies strategic thinking to the complete spectrum of marketing: products, services, persons, places, information, ideas, and causes; consumer and business markets; profit and nonprofit organizations; domestic and foreign companies; small and large firms; manufacturing and intermediary businesses; and low- and high-tech industries.
covers all the topics an informed marketing manager needs to understand to execute strategic, tactical, and administrative marketing.
Instructor Resources At the Instructor Resource Center, www.pearsonglobaleditions.com/kotler, instructors can easily register to gain access to a variety of instructor resources available with this text in downloadable format. If assistance is needed, our dedicated technical support team is ready to help with the media supplements that accompany this text. Visit http://247.pearsoned.com for answers to frequently asked questions and toll-free user support phone numbers.
The following supplements are available with this text:
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Acknowledgments The 15th edition bears the imprint of many people. My colleagues and associates at the Kellogg School of Management at Northwestern University continue to have an important impact on my thinking: Nidhi Agrawal, Eric T. Anderson, James C. Anderson, Robert C. Blattberg, Miguel C. Brendl, Bobby J. Calder, Gregory S. Carpenter, Alex Chernev, Anne T. Coughlan, David Gal, Kent Grayson, Karsten Hansen, Dipak C. Jain, Lakshman Krishnamurti, Angela Lee, Vincent Nijs, Yi Qian, Mohanbir S. Sawhney, Louis W. Stern, Brian Sternthal, Alice M. Tybout, and Andris A. Zoltners. I also want to thank the S. C. Johnson Family for the generous support of my chair at the Kellogg School. Completing the Northwestern team are my former Deans, Donald P. Jacobs and Dipak Jain and my current Dean, Sally Blount, for provid- ing generous support for my research and writing.
Several former faculty members of the marketing department had a great influence on my think- ing: Steuart Henderson Britt, Richard M. Clewett, Ralph Westfall, Harper W. Boyd, Sidney J. Levy, John Sherry, and John Hauser. I also want to acknowledge Gary Armstrong for our work on
I am indebted to the following coauthors of international editions of and who have taught me a great deal as we worked together to adapt marketing manage-
ment thinking to the problems of different nations:
Swee-Hoon Ang and Siew-Meng Leong, National University of Singapore Chin-Tiong Tan, Singapore Management University Friedhelm W. Bliemel, Universitat Kaiserslautern (Germany) Linden Brown; Stewart Adam, Deakin University; Suzan Burton: Macquarie Graduate School of Management, and Sara Denize, University of Western Sydney (Australia) Bernard Dubois, Groupe HEC School of Management (France) and Delphine Manceau, ESCP-EAP European School of Management John Saunders, Loughborough University and Veronica Wong, Warwick University (United Kingdom) Jacob Hornick, Tel Aviv University (Israel) Walter Giorgio Scott, Universita Cattolica del Sacro Cuore (Italy) Peggy Cunningham, Queen’s University (Canada)
I also want to acknowledge how much I have learned from working with coauthors on more special- ized marketing subjects: Alan Andreasen, Christer Asplund, Paul N. Bloom, John Bowen, Roberta C. Clarke, Karen Fox, David Gertner, Michael Hamlin, Thomas Hayes, Donald Haider, Hooi Den Hua, Dipak Jain, Somkid Jatusripitak, Hermawan Kartajaya, Milton Kotler, Neil Kotler, Nancy Lee, Sandra Liu, Suvit Maesincee, James Maken, Waldemar Pfoertsch, Gustave Rath, Irving Rein, Eduardo Roberto, Joanne Scheff, Norman Shawchuck, Joel Shalowitz, Ben Shields, Francois Simon, Robert Stevens, Martin Stoller, Fernando Trias de Bes, Bruce Wrenn, and David Young.
My overriding debt continues to be to my lovely wife, Nancy, who provided me with the time, support, and inspiration needed to prepare this edition. It is truly our book.
I continually benefit from the wisdom of my marketing colleagues at Tuck— Punam Keller, Scott Neslin, Kusum Ailawadi, Praveen Kopalle, Peter Golder, Ellie Kyung, Yaniv Dover, Eesha Sharma, Fred Webster, Gert Assmus, and John Farley—as well as the leadership of Dean Paul Danos. I also gratefully acknowledge the invaluable research and teaching contributions from my faculty colleagues and collaborators through the years. I owe a considerable debt of gratitude to Duke University’s Jim Bettman and Rick Staelin for helping to get my academic career started and serving as positive role models to this day. I am also appreciative of all that I have learned from working with many industry executives who have generously shared their insights and experiences. With this 15th edition, I received some extremely help- ful research assistance from a talented group of Dartmouth undergraduate RAs—Caroline Buck, James Carlson, Ryan Galloway, Jack Heise, Jeff Keller, Jill Lyon, Richard Newsome-White, Rahul Raina, and Cameron Woodworth, —who were as accurate, thorough, dependable, and cheerful as you could possibly imagine. Alison Pearson provided superb administrative support. Finally, I give special thanks to Punam, my wife, and Carolyn and Allison, my daughters, who make it all happen and make it all worthwhile.
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We are indebted to the following colleagues at other universities who reviewed this new edition:
Jennifer Barr, Richard Stockton College Lawrence Kenneth Duke, Drexel University LeBow College of Business Barbara S. Faries, Mission College, Santa Clara, CA William E. Fillner, Hiram College Frank J. Franzak,Virginia Commonwealth University Robert Galka, De Paul University Albert N. Greco, Fordham University John A. Hobbs, University of Oklahoma Brian Larson,Widener University Anthony Racka, Oakland Community College, Auburn Hills, MI Jamie Ressler, Palm Beach Atlantic University James E. Shapiro, University of New Haven George David Shows, Louisiana Tech University
We would also like to thank colleagues who have reviewed previous editions of :
Homero Aguirre, TAMIU Alan Au, University of Hong Kong Hiram Barksdale, University of Georgia Boris Becker, Oregon State University Sandy Becker, Rutgers University Parimal Bhagat, Indiana University of Pennsylvania Sunil Bhatla, Case Western Reserve University Michael Bruce, Anderson University Frederic Brunel, Boston University John Burnett, University of Denver Lisa Cain, University of California at Berkeley and Mills
College Surjit Chhabra, DePaul University Yun Chu, Frostburg State University Dennis Clayson, University of Northern Iowa Bob Cline, University of Iowa Brent Cunningham, Jacksonville State University Hugh Daubek, Purdue University John Deighton, University of Chicago Kathleen Dominick, Rider University Tad Duffy, Golden Gate University Mohan Dutta, Purdue University Barbara Dyer, University of North Carolina at Greensboro Jackkie Eastman,Valdosta State University Steve Edison, University of Arkansas–Little Rock
Alton Erdem, University of Houston at Clear Lake Elizabeth Evans, Concordia University Barb Finer, Suffolk University Chic Fojtik, Pepperdine University Renee Foster, Delta State University Ralph Gaedeke, California State University, Sacramento Robert Galka, De Paul University Betsy Gelb, University of Houston at Clear Lake Dennis Gensch, University of Wisconsin, Milwaukee David Georgoff, Florida Atlantic University Rashi Glazer, University of California, Berkeley Bill Gray, Keller Graduate School of Management Barbara Gross, California State University at Northridge Lewis Hershey, Fayetteville State University Thomas Hewett, Kaplan University Mary Higby, University of Detroit–Mercy Arun Jain, State University of New York, Buffalo Michelle Kunz, Morehead State University Eric Langer, Johns Hopkins University Even Lanseng, Norwegian School of Management Ron Lennon, Barry University Michael Lodato, California Lutheran University Henry Loehr, Pfeiffer University–Charlotte Bart Macchiette, Plymouth University Susan Mann, Bluefield State College Charles Martin,Wichita State University H. Lee Matthews, Ohio State University
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Paul McDevitt, University of Illinois at Springfield Mary Ann McGrath, Loyola University, Chicago John McKeever, University of Houston Kenneth P. Mead, Central Connecticut State University Henry Metzner, University of Missouri, Rolla Robert Mika, Monmouth University Mark Mitchell, Coastal Carolina University Francis Mulhern, Northwestern University Pat Murphy, University of Notre Dame Jim Murrow, Drury College Zhou Nan, University of Hong Kong Nicholas Nugent, Boston College Nnamdi Osakwe, Bryant & Stratton College Donald Outland, University of Texas, Austin Albert Page, University of Illinois, Chicago Young-Hoon Park, Cornell University Koen Pauwels, Dartmouth College Lisa Klein Pearo, Cornell University Keith Penney, Webster University Patricia Perry, University of Alabama Mike Powell, North Georgia College and State University Hank Pruden, Golden Gate University Christopher Puto, Arizona State University Abe Qstin, Lakeland University Lopo Rego, University of Iowa Richard Rexeisen, University of St. Thomas
William Rice, California State University–Fresno Scott D. Roberts, Northern Arizona University Bill Robinson, Purdue University Robert Roe, University of Wyoming Jan Napoleon Saykiewicz, Duquesne University Larry Schramm, Oakland University Alex Sharland, Hofstra University Dean Siewers, Rochester Institute of Technology Anusorn Singhapakdi, Old Dominion University Jim Skertich, Upper Iowa University Allen Smith, Florida Atlantic University Joe Spencer, Anderson University Mark Spriggs, University of St. Thomas Nancy Stephens, Arizona State University Michael Swenso, Brigham Young University, Marriott
School Thomas Tellefsen, The College of Staten Island–CUNY Daniel Turner, University of Washington Sean Valentine, University of Wyoming Ann Veeck, West Michigan University R.Venkatesh, University of Pittsburgh Edward Volchok, Stevens Institute of Management D. J. Wasmer, St. Mary-of-the-Woods College Zac Williams, Mississippi State University Greg Wood, Canisius College Kevin Zeng Zhou, University of Hong Kong
A warm welcome and many thanks to the following people who contributed to the global case studies developed for the 14th edition:
Mairead Brady, Trinity College John R. Brooks, Jr., Houston Baptist University Sylvain Charlebois, University of Regina Geoffrey da Silva, Temasek Business School
Malcolm Goodman, Durham University Torben Hansen, Copenhagen Business School Abraham Koshy, Sanjeev Tripathi, and Abhishek, Indian
Institute of Management Ahmedabad Peter Ling, Edith Cowan University Marianne Marando, Seneca College Lu Taihong, Sun Yat-Sen University
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The talented staff at Pearson deserves praise for their role in shaping the 15th edition. We want to thank our editor, Mark Gaffney, for his contribution to this revision, as well as our program manager, Jennifer M. Collins. We also want to thank our project manager, Becca Groves, for making sure everything was moving along and falling into place in such a personable way, both with regard to the book and supple- ments. We benefited greatly from the superb editorial help of Elisa Adams, who lent her considerable talents as a development editor to this edition. We also thank our marketing managers, Anne Fahlgren and Lenny Ann Raper. Certainly, we are grateful for the editorial support provided by Daniel Petrino. Lastly, we’d like to thank the following MyLab contributors: Susan C. Schanne, School of Management, Eastern Michigan University, and Barbara S. Faries, MBA, Mission College, Santa Clara.
Philip Kotler S. C. Johnson Distinguished Professor of International Marketing,
Kellogg School of Management, Northwestern University,
Evanston, Illinois
Kevin Lane Keller E. B. Osborn Professor of Marketing,
Tuck School of Business, Dartmouth College,
Hanover, New Hampshire
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Pearson would like to thank and acknowledge the following people for their work on the Global Edition:
Andrea Rumler, Berlin School of Economics and Law, Germany
Abderrahman Hassi, Al Akhawayn University, Morocco Afifa Bouguerra, University of Toulouse, France Bouchra Hamelin, Al Akhawayn University, Morocco Abdelhamid Bennani Bouchiba, Al Akhawayn University,
Morocco Muneeza Shoaib, Middlesex University Dubai, UAE
Naila Aaijaz, International Professors Project Frances Ekwulungo, University of Westminster, UK Michael Gründ, Zurich University of Applied Sciences in
Business Administration, Switzerland Mohamed Dahlan Ibrahim, Universiti Malaysia Kelantan,
Malaysia Jawahitha Sarabdeen, University of Wollongong in Dubai,
UAE
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