Basic Marketing: A Global Managerial Approach
Perreault McCarthy: BasicMarketing: AGlobal ManagerialApproach, 14/eFront Matter The McGraw HillCompanies, 2002PrefacePrefaceBasic Marketing Is Designed toSatisfy Your NeedsThis book is about marketing and marketing strategyplanning. And, at its essence, marketing strategy planning is about figuring out how to do a superior job ofsatisfying customers. We take that point of view seriously and believe in practicing what we preach. So youcan trust that this new edition of Basic Marketing—andall of the other teaching and learning materials that accompany it—will satisfy your needs. We’re excitedabout this edition of Basic Marketing, and we hope thatyou will be as well.In developing this edition we’ve made hundreds ofbig and small additions, changes, and improvements inthe text and all of the supporting materials that accompany it. We’ll highlight some of those changes in thispreface, but first it’s useful to put this newest edition in alonger-term perspective.Building on Pioneering StrengthsBasic Marketing pioneered an innovative structure—using the “four Ps” with a managerial approach—for theintroductory marketing course. It quickly became one ofthe most widely used business textbooks ever publishedbecause it organized the best ideas about marketing sothat readers could both understand and apply them. Theunifying focus of these ideas was on how to make themarketing decisions that a manager must make in deciding what customers to focus on and how best to meettheir needs.Over many editions of Basic Marketing there has beenconstant change in marketing management and themarketing environment. Some of the changes have beendramatic, and others have been subtle. As a result, wehave made ongoing changes to the text to reflect marketing’s best practices and ideas. Throughout all of thesechanges, Basic Marketing and the supporting materialsthat accompany it have been more widely used than anyother teaching materials for introductory marketing. It isgratifying that the four Ps has proved to be an organizingstructure that has worked well for millions of studentsand teachers.Continuous Innovationand ImprovementThe success of Basic Marketing is not the result of a single strength—or one long-lasting innovation. Rather, thevitext’s four Ps framework, managerial orientation, andstrategy planning focus have proved to be foundation pillars that are remarkably robust for supporting newdevelopments in the field and innovations in the text andpackage. Thus, with each new edition of Basic Marketingwe have continued to innovate to better meet the needsof students and faculty. In fact, we have made ongoingchanges in how we develop the logic of the four Ps andthe marketing strategy planning process. As always,though, our objective is to provide a flexible, high-qualitytext and choices from comprehensive and reliable supportmaterials—so that instructors and students can accomplish their learning objectives. For example, includedwith the other innovations for this new edition are Integrated coverage, throughout the text, of thesignificant impacts that e-commerce, the Internet,and related information technologies are havingon marketing. A complete revision of the Student CD-ROM toAccompany Basic Marketing that comes with thetext, with a new interface that integrates the richvariety of multimedia learning resources it includes. A completely new and expanded archive ofPowerPoint electronic lecture-support slides, withlinks to full-motion videos, ads, and photos, toprovide instructors with flexible support for lectures and presentations. The Instructor CD-ROM to Accompany Basic Marketing that provides Windows software and all ofthe text’s teaching support materials in easy-touse electronic form. A sharper focus, throughout the text, on how thestrategy planning process should lead to decisionsabout a target market and marketing mix that represents the best opportunity and competitiveadvantage for the firm and superior value forconsumers. Interesting new video cases and teaching videosfocused on current marketing issues. High-involvement Internet exercises integratedthroughout each chapter of the text.We Believe in ContinuousQuality ImprovementMcCarthy pioneered Basic Marketing and worked onthe text without a coauthor for seven editions. Twentyyears ago Perreault joined the team. We formed our
Perreault McCarthy: BasicMarketing: AGlobal ManagerialApproach, 14/eFront MatterPreface The McGraw HillCompanies, 2002Prefacepartnership with a shared commitment to ongoing improvements, and we’re both proud that we wereimplementing continuous quality improvements inpreparing Basic Marketing long before the idea becamepopular in the world of business. We work to be creativein our coverage and approaches—because creativity is atthe heart of the marketing spirit. The most creativeteaching innovations are ones that meet students’ needsand instructors’ objectives. That’s also why our first priority has always been, and always will be, producingquality materials that really work well for students andteachers. Students take the first marketing course onlyonce. It is an investment and opportunity from whichthere should be a solid return. So we take it as a seriouspersonal responsibility to support that investment withmaterials that are interesting and motivating—and thatreally build the skills and ideas that students need intheir lives and careers.Our belief that attention to continuous quality improvement in every aspect of the text and supportmaterials does make a difference is consistently reaffirmedby the enthusiastic response of students and teachersalike to each new edition.Leading Technology Innovationsfor Teaching and LearningIt has always been our belief that it is our responsibility to lead the marketing discipline in developing new,breakthrough approaches for teaching and learning inthe first marketing course. Our constant thrust has beento use technology to provide better and easier options forteaching and richer and more interesting approaches forlearning. Along with other innovations, we were thefirst to develop and offer spreadsheet-based computeraided problems, custom-produced videos, a computerizedtest bank, a PC-based marketing simulation, a hypertextreference, bar-coded laser disks, CD-ROM–based interactive versions of the text, PowerPoint presentationslides with linking by objectives, CD-ROM multimediaarchives and presentation software for instructors, multimedia case support, and the multimedia CD for students.Now we continue these traditions of innovation with acompletely redesigned Student CD-ROM to AccompanyBasic Marketing, myPowerWeb online readings, and ahost of new and improved teaching and learning materials available at the Basic Marketing website at www.mhhe.com/fourps.Critically Revised, Updated,and RewrittenThis new edition of Basic Marketing is the highestquality teaching and learning resource ever published forthe introductory marketing course. The whole text andviiall of the supporting materials have been critically revised, updated, and rewritten. As in past editions, clearand interesting communication has been a priority. BasicMarketing is designed to make it easy, interesting, andfast for students to grasp the key concepts of marketing.Careful explanations provide a crisp focus on the important “basics” of marketing strategy planning. At thesame time, we have thoroughly Researched and incorporated new concepts. Integrated hundreds of new examples that bringthe concepts alive. Illustrated marketing ideas and “best practices” ina rich variety of contexts.We have deliberately used marketing examples from ahost of different contexts. Examples span organizationsthat have moved to e-commerce and those that havefound other ways to innovate, profit and nonprofit organizations, large and small firms, domestic and internationalsettings, purchases by organizations as well as by final consumers, services and ideas or “causes” as well as physicalgoods, and established products as well as new technologies—because this variety reinforces the point thateffective marketing is critical to all organizations.Clear Focus on Changes inToday’s Dynamic MarketsThis edition focuses special attention on changes taking place in today’s dynamic markets. Throughout everychapter of the text we have integrated discussion and examples of Best practices in marketing, and how to avoid themistakes of death-wish marketing (includingerrors and omissions all too common among manyfailed dot-com operators). Effective e-commerce innovations and changes inmarketing over the Internet. The costs and benefits of different approaches forcustomer acquisition and retention. Relationship building in marketing. The importance of providing superior customervalue as the means to achieve customer satisfaction and competitive advantage. International perspectives. Ethical issues.Similarly, we’ve also integrated new material onmany important and fast-evolving topics. The followingare but a sampling: Integrated marketing communications, directresponse promotion, and customer-initiatedinteractive marketing communications.
Perreault McCarthy: BasicMarketing: AGlobal ManagerialApproach, 14/eviiiFront MatterPreface The McGraw HillCompanies, 2002Preface Promotional campaigns that build “buzz” amongconsumers. The Euro, the World Trade Organization,exchange rates, and other topics central to international markets. The growth of business-to-business (B2B)exchanges on the Web and the expanding use ofreverse auctions and interactive bidding. The circumstances when using a website for directdistribution or dual distribution makes sense andwhen it doesn’t. The expanding role of sales technologies and selfservice technology. The increasing channel power of large retailchains. Competitor analysis and how to develop competitive advantage. How to use flexible pricing and evaluate pricesensitivity. Marketing control, including marketing costanalysis.Driving Home CompetitiveAdvantageThroughout the 14th edition we’ve continued to putmore emphasis on the process of marketing strategy planning. In today’s dynamic markets it’s not enough tosimply figure out an attractive opportunity and an effective marketing mix. The real challenge is to quickly butlogically zero in on the target market and marketing mixthat is really best for the firm, while recognizing thatstrategies need to be refined and improved as marketconditions change. This highlights the need for breakthrough opportunities, the problems with me-tooimitation, and the crucial role of competitive advantagein providing customers with superior value. In otherwords, we sharpen the focus on how to figure out the bestblend of the four Ps and crush the mistaken view fostered by some texts that the marketing job is just comingup with some marketing mix.Coupled with this, you’ll learn how breakthroughs ininformation technology are driving changes in all aspectsof marketing—whether it’s e-commerce ordering, getting marketing information, preparing salespeople tointeract with customers, or analyzing the “fire-hydrant”flow of data on sales and costs. We’ll also highlight themany ways that relationships among marketing partnersare changing—ranging from coordination of logistics toalliances among firms focused on the same market opportunity. You’ll see how intense competition, both in theUnited States and around the world, is affecting marketing strategy planning. You’ll see what it takes totransform an effective new-product development processinto profitable business.Some other marketing texts are attempting to describe such changes. But that’s not adequate. What setsBasic Marketing apart is that the explanations and examples equip students to see why these changes are takingplace and what changes to expect in the future. That isan important distinction—because marketing is dynamic. Our objective is to prepare students to analyzemarketing situations and develop exceptional marketingstrategies—not just recite endless sets of lists.A Fresh Design—to MakeImportant Concepts Even ClearerAlong with the new content, we’ve given the text afresh design. The changes range from the new cover tohundreds of new photographs, ads, web pages, and illustrations. We’ve created many new exhibits—conceptualorganizers, charts, and tables—and updated provenpieces from past editions, all with a fresh new design.The aim of all this revising, refining, editing, and illustrating is to make important concepts and pointseven clearer to students. We want to make sure thateach student really does get a good feel for a marketdirected system and how he or she can help it—andsome company—run better. We believe marketing isimportant and interesting—and we want every studentwho reads Basic Marketing to share our enthusiasm.Twenty-Two Chapters—with anEmphasis on Marketing StrategyPlanningThe emphasis of Basic Marketing is on marketingstrategy planning. Twenty-two chapters introduce theimportant concepts in marketing management and helpthe student see marketing through the eyes of the marketing manager. The organization of the chapters andtopics is carefully planned. But we took special care inwriting so that It is possible to rearrange and use the chapters inmany different sequences—to fit different needs. All of the topics and chapters fit together into aclear, overall framework for the marketing strategy planning process.Broadly speaking, the chapters fall into two groupings.The first eight chapters introduce marketing and a broadview of the marketing strategy planning process. Theycover topics such as segmentation, differentiation, themarketing environment, and buyer behavior, as well ashow marketing information systems and research provideinformation about these forces to improve marketing
Perreault McCarthy: BasicMarketing: AGlobal ManagerialApproach, 14/eFront MatterPreface The McGraw HillCompanies, 2002Prefacedecisions. The second half of the text goes into the details of planning the four Ps, with specific attention to thekey strategy decisions in each area. Then we concludewith an integrative review and coverage of overarchingtopics such as implementation and control, marketing’slink with other functional areas, and an assessment ofmarketing’s challenges and opportunities.The first two chapters deal with the nature ofmarketing—focusing both on its macro role in a globalsociety and its micro role in businesses and other organizations. The first chapter stresses that the effectivenessof our macro-marketing system depends on the decisionsof many producers and consumers. That sets the stage forthe second chapter—and the rest of the book—whichfocuses on how businesspeople and, in particular, marketing managers develop marketing strategies to satisfyspecific target markets. This chapter introduces the marketing concept and develops the customer value andfour Ps frameworks.Chapter 3 introduces an integrative model of themarketing strategy planning process that serves as an organizing framework for the whole text. Chapter 3 setsthe stage by overviewing how analysis of the market andexternal market environment relate to segmentationand differentiation decisions as well as the criteria fornarrowing down to a specific target market and marketing mix. Broadly speaking, it introduces a strategicplanning view of how a manager leads his or her firm tonew market opportunities and competitive advantage.This strategic view alerts students to the importanceof evaluating opportunities in the external environments affecting marketing—and these are discussed inChapter 4. This chapter also highlights the critical roleof screening criteria for narrowing down from possibleopportunities to those that the firm will pursue.The next three chapters take a closer look at customers—so students will better understand how tosegment markets and satisfy target market needs. Chapter 5 introduces the demographic dimensions of theglobal consumer market and provides up-to-date coverage on important geodemographic trends. The nextchapter studies the behavioral aspects of the final consumer market. Chapter 7 looks at how business andorganizational customers—like manufacturers, channelmembers, and government purchasers—are usinge-commerce and the other ways that they are similar toand different from final consumers. You have to understand customers to understand marketing.Chapter 8 is a contemporary view of getting information—from marketing information systems and marketingresearch—for marketing management planning. Thischapter includes discussion of how information technology—ranging from intranets to speedy collection ofmarket research data—is transforming the marketingmanager’s job. This sets the stage for discussions in laterixchapters about how research and marketing informationimprove each area of marketing strategy planning.The next group of chapters—Chapters 9 to 18—isconcerned with developing a marketing mix out of thefour Ps: Product, Place (involving channels of distribution, logistics, and distribution customer service),Promotion, and Price. These chapters are concernedwith developing the “right” Product and making it available at the “right” Place with the “right” Promotion andthe “right” Price—to satisfy target customers and stillmeet the objectives of the business. These chapters arepresented in an integrated, analytical way—as part ofthe overall framework for the marketing strategy planning process—so students’ thinking about planningmarketing strategies develops logically.Chapters 9 and 10 focus on product planning forgoods and services as well as new-product developmentand the different strategy decisions that are required atdifferent stages of the product life cycle. We emphasizethe value of an organized new-product developmentprocess for developing really new products that propel afirm to profitable growth.Chapters 11 through 13 focus on Place. Chapter 11introduces decisions a manager must make about usingdirect distribution (for example, selling from the firm’swebsite) or working with other firms in a channel of distribution. We put special emphasis on the need forchannel members to cooperate and coordinate to bettermeet the needs of customers. Chapter 12 focuses on thefast-changing arena of logistics and the strides that firmsare making in using e-commerce to reduce the costs ofstoring, transporting, and handling products while improving the distribution service they provide customers.Chapter 13 provides a clear picture of retailers, wholesalers, and their strategy planning—including exchangestaking place via the Internet. This composite chapterhelps students see why the big changes taking place in retailing are reshaping the channel systems for manyconsumer products.Chapters 14 to 16 deal with Promotion. These chapters build on the concepts of integrated marketingcommunications, direct-response promotion, and customer-initiated digital communication, which areintroduced in Chapter 14. Chapter 15 deals with therole of personal selling and sales technology in the promotion blend. Chapter 16 covers advertising and salespromotion, including the ways that managers are takingadvantage of the Internet to communicate more effectively and efficiently.Chapters 17 and 18 deal with Price. Chapter 17 focuses on pricing objectives and policies, including use ofinformation technology to implement flexible pricing,pricing in the channel, and the use of discounts, allowances, and other variations from a list price. Chapter18 covers cost-oriented and demand-oriented pricing
Perreault McCarthy: BasicMarketing: AGlobal ManagerialApproach, 14/exFront MatterPreface The McGraw HillCompanies, 2002Prefaceapproaches and how they fit in today’s competitive environments. The careful coverage of marketing costs helpsequip students to deal with the renewed cost-consciousness of the firms they will join.Chapter 19 offers completely updated coverage of howinformation technology is reshaping marketing implementation and contro
tered by some texts that the marketing job is just coming up with some marketing mix. Coupled with this, you’ll learn how breakthroughs in information technology are driving changes in all aspects of marketing—whether it’s e-commerce ordering, get-ting marketing information, preparing salespeople to
H2: Financial Versus Managerial Accounting 5) A budget is a managerial accounting tool used in the planning process. Answer: TRUE Diff: 1 LO: 16-1 AICPA Functional: Reporting PE Question Type: Concept H2: Financial Versus Managerial Accounting Test Bank for Horngrens Financial and Managerial Accounting The Managerial Chapters 5th Edition by .
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UNIT: - I BASIC CONCEPTS IN MARKETING MANAGEMENT STRUCTURE 1.0 Introduction to Marketing 1.1 Definition of Marketing 1.2 Evolution of Marketing 1.3 Marketing Concept 1.4 Role of Marketing 1.5 Strategic Marketing Planning 1.6 Scope of Marketing 1.7 Approaches of Marketing 1.8
