Philip Kotler. Johnson & Son Professor of International Marketing, Kellogg School of Management. No verified email. Country as brand, product, and beyond: A place marketing and brand management perspective. P Kotler, D Gertner.
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Principles of Marketing
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TING An Introduction /Brill; Gary Armstrong University of North Carolina Philip Kotler It Northwestern University Prentice Hall, Upper Saddle River, New Jersey 07458 Contents Understanding Marketing and the Marketing Management Process 1. Marketing in a Changing World: Creating Customer Value and Satisfaction 2. Strategic Planning and the Marketing Process 34 1 Analyzing Marketing Opportunities 3. The Global Marketing Environment 67 4. Marketing Research and Information Systems 5. Consumer and Business Buyer Behavior 138 101 Developing Marketing Strategy and the Marketing Mix 6. 7. 8. 9. 10. 11. 12. 13. 14. Market Segmentation, Targeting, and Positioning for Competitive Advantage 177 Product and Services Strategy 217 New-Product Development and Product Life-Cycle Strategies 259 Pricing Products: Pricing Considerations and Strategies 287 , Distribution Channels and Logistics Management 326 Retailing and Wholesaling 365 Integrated Marketing Communications: Advertising and Public Relations 400 Integrated Marketing Communications: Personal Selling and Sales Promotion 438 Direct and On-Line Marketing 473 Extending Marketing 15. The Global Marketplace 511 16. Marketing and Society: Social Responsibility and Marketing Ethics 543 Appendices Appendix 1 Appendix 2 Marketing Arithmetic A1 Careers in Marketing A8 Glossary G1 Endnotes N1 Video Cases C1 Credits CR1 Indices 11 VII Ts i , « •; : ~; Preface xix ...
' / ; ; • ' •• Understanding Marketing and the Marketing Management Process 1. Marketing in a Changing World: Creating Customer Value and Satisfaction 1 : ; W h a t Is M a r k e t i n g ? 4 ''•• • -:;' ' : ' ' ' ' • > ' ' l ' v ' '•' Marketing Defined 4, Needs, Wants, and Demands 5, Products and Services 6, Value, Satisfaction, and Quality 7, Exchange, Transactions, and Relationships 9, Markets 13, Marketing 14 Marketing Management 15 Demand Management 15, Building Profitable Marketing Management Philosophies C u s t o m e r Relationships 17 15 - •|.l> > > •••••* ,i..,.,., The Production Concept 18, The Product Concept 18, The Selling Concept 18, The Marketing Concept 19, The Societal Marketing Concept 20 Marketing Challenges in the New Millennium 22 Growth of Nonprofit Marketing 23, The Information Technology Boom 24, Rapid Globalization 25, The Changing World Economy 28, The Call for More Ethics and Social Responsibility 28, The New Marketing Landscape 29 Reviewing the Concepts 30, Navigating the Key Terms 31, Travel Log 31, Traveling the Net 32, MAP—Marketing Applications 33 2. Strategic Planning and the Marketing Process 34 ,. • Strategic Planning 37 ; ; , ; v , ? : ,-,4 Defining the Company Mission 38, Setting Company Objectives and Goals 40 Designing the Business Portfolio 41 Analyzing the Current Business Portfolio 41, Developing Growth Strategies 43, Planning Functional ,-:, Strategies 47 Strategic Planning and Small Businesses 49 '• r'no- , The Marketing Process 50 Targeting Consumers 50, Developing the Marketing Mix 55 Managing the Marketing Effort 56 Marketing Analysis 56, Marketing Planning 57, Marketing Implementation 57, Marketing Department Organization 59, Marketing Control 62, The Marketing Environment 62 Reviewing the Concepts 63, Navigating the Key Terms 64, Net 65, MAP—Marketing Applications 66 Travel Log 64, Traveling the ix CONTENTS Analyzing Marketing Opportunities 3. The Global Marketing Environment 67 The Company's Microenvironment 70 The Company 70, Suppliers 71, Marketing Intermediaries 71, Customers 72, Competitors 73, Publics 73 The Company's Macroenvironment 74 Demographic Environment 75, Economic Environment 82, Natural Environment 84, Technological Environment 86, Political Environment 87, Cultural Environment 90 Responding to the Marketing Environment 96 Reviewing the Concepts 97, Navigating the Key Terms 98, Net 99, MAP—Marketing Applications 100 Travel Log 98, Traveling the 4. Marketing Research and Information Systems 101 The Marketing Information System 104 Assessing Information Needs 104, Developing Information 105, Distributing Information 109 The Marketing Research Process 110 Defining the Problem and Research Objectives 111, Developing the Research Plan 111, Implementing the Research Plan 127, Interpreting and Reporting the Findings 128 Other Marketing Research Considerations 128 Marketing Research in Small Businesses and Nonprofit Organizations 128, International Marketing Research 130, Public Policy and Ethics in Marketing Research 132 Reviewing the Concepts 133, Navigating the Key Terms 134, Net 136, MAP—Marketing Applications 136 5. Consumer and Business Buyer Behavior Travel Log 135, Traveling the 138 Consumer Markets and Consumer Buyer Behavior 140 Model of Consumer Behavior 141, Characteristics Affecting Consumer Behavior 141, The Buyer Decision Process 154, The Buyer Decision Process for New Products 157, Consumer Behavior Across International Borders 160 Business Markets and Business Buyer Behavior 161 > Business Markets 162, Business Buyer Behavior 163 Reviewing the Concepts 173, Navigating the Key Terms 174, Net 175, MAP—Marketing Applications 176 Travel Log 174, Traveling the Developing Marketing Strategy and the Marketing Mix 6. Market Segmentation, Targeting, and Positioning for Competitive Advantage 177 Market Segmentation 180 Levels of Market Segmentation 180, Bases for Segmenting Consumer Markets 186, Segmenting Business Markets 195, Segmenting International Markets 196, Requirements for Effective Segmentation 199 CONTENTS : Market Targeting 200 Evaluating Market Segments 200, Selecting Market Segments 200 Positioning for Competitive Advantage 206 Positioning Strategies 206, Choosing and Implementing a Positioning Strategy 206 Reviewing the Concepts 212, Navigating the Key Terms 214, Net 215, MAP—Marketing Applications 216 Travel Log 214, :J! Traveling the ;'iS!n;::1 * ' w i n . 7. Product and Services Strategy 217 What Is a Product? 219 The Product-Service Continuum 220, Levels of Product 220 ' ' ' ' ' ' '*'' ' ' ' ' ' ' Product Classifications 221 Consumer Products 221, Industrial Products 223, Organizations, Persons, Places, and Ideas 224 Individual Product Decisions 2 2 6 • ' • • • • •••••••.•'-•'. -«-rProduct Attributes 226, Branding 227, Packaging 237, Labeling 240, Product Support Services 240, Product Decisions and Social Responsibility 241 , oivrawn Product Line Decisions 242 Product Mix Decisions 243 . . • Services Marketing 244 Nature and Characteristics of a Service 245, Marketing Strategies for Service Firms 246 International Product and Services Marketing 252 Reviewing the Concepts 254, Navigating the Key Terms 256, Net 257, MAP—Marketing Applications 258 ' ;- Travel Log 256, Traveling the 8. New-Product Development and Product Life-Cycle Strategies 259 New-Product Development Strategy 261 Idea Generation 262, Idea Screening 265, Concept Development and Testing 265, Marketing Strategy Development 268, Business Analysis 269, Product Development 269, Test Marketing 271, Commercialization 271, Speeding Up New-Product Development 274 Product Life-Cycle Strategies 276 Introduction Stage 278, Growth Stage 278, Maturity Stage 279, Decline Stage 282 . Reviewing the Concepts 283, Navigating the Key Terms 284, Net 285, MAP—Marketing Applications 286 Travel Log 284, Traveling the 9. Pricing Products: Pricing Considerations and Strategies 287 Factors to Consider When Setting Prices 290 Internal Factors Affecting Pricing Decision 290, External Factors Affecting Pricing Decisions 293 General Pricing Approaches 299 Cost-Based Pricing 299, Value-Based Pricing 301, Competition-Based Pricing 304 New-Product Pricing Strategies 304 Market-Skimming Pricing 306, Market-Penetration Pricing 306 CONTENTS Product-Mix Pricing Strategies 307 Product-Line Pricing 307, Optional-Product Pricing 308, Captive-Product Pricing 308, Byproduct Pricing 308, Product-Bundle Pricing 310 Price-Adjustment Strategies 310 Discount and Allowance Pricing 310, Segmented Pricing 311, Psychological Pricing 311, Promotional Pricing 312, Geographical Pricing 314, International Pricing 315 Price Changes 316 Initiating Price Changes 316, Responding to Price Changes 318 Public Policy and Pricing 320 Reviewing the Concepts 321, Navigating the Key Terms 323, Net 324, MAP—Marketing Applications 325 Travel Log 323, Traveling the 10. Distribution Channels and Logistics Management 326 The Nature of Distribution Channels 330 Why Are Marketing Intermediaries Used? 330, Distribution Channel Functions 331, Number of Channel Levels 331 Channel Behavior and Organization 333 Channel Behavior 334, Vertical Marketing Systems 335, Horizontal Marketing Systems 339, Hybrid Marketing Systems 340 Channel Design Decisions 342 Analyzing Consumer Service Needs 342, Setting Channel Objectives and Constraints 342, Identifying Major Alternatives 343, Evaluating the Major Alternatives 345, Designing International Distribution •'f!i Channels 345 Channel Management Decisions 347 Selecting Channel Members 347, Motivating Channel Members 347, Evaluating Channel Members 348 Public Policy and Distribution Decisions 350 Physical Distribution and Logistics Management 350 Nature and Importance of Physical Distribution and Marketing Logistics 351, Goals of the Logistics System 352, Major Logistics Functions 353, Integrated Logistics Management 355 Reviewing the Concepts 360, Navigating the Key Terms 362, Net 363, MAP—Marketing Applications 364 Travel Log 362, Traveling the 11. Retailing and Wholesaling 365 Retailing 368 Store Retailing 368, Nonstore Retailing 375, Retailer Marketing Decisions 379, The Future of Retailing 384 Wholesaling 390 Types of Wholesalers 390, Wholesaler Marketing Decisions 391, Trends in Wholesaling 394 Reviewing the Concepts 396, Navigating the Key Terms 397, Net 398, MAP—Marketing Applications 399 Travel Log 397, Traveling the CONTENTS 12. Integrated Marketing Communications: Advertising and Public Relations 400 The Marketing Communications Mix 403 Integrated Marketing Communications 404 ,• ., The Changing Communications Environment 404, The Need for Integrated Marketing Communications 405, A View of the Communication Process 407 . j , . , Setting the Overall Communication Mix 408 The Nature of Each Promotion Tool 408, Promotion-Mix Strategies 410, Socially Responsible Marketing Communication 411 ' ' Advertising 413 ' . Setting Advertising Objectives 414, Setting the Advertising Budget 415, Developing Advertising Strategy 416, Evaluating Advertising 426, Other Advertising Considerations 427 _ Public Relations 429 Major Public Relations Tools 432 Reviewing the Concepts 4 3 4 , Navigating the Key Terms 4 3 5 , Travel L o g 4 3 5 , N e t 4 3 6 , M A P — M a r k e t i n g Applications 4 3 7 •; : - , ( •:-• .•;.? -,»:.• ;, Traveling the 13. Integrated Marketing Communications: Personal Selling and Sales Promotion 438 L;!(lii;nriiflh ; in Personal Selling 440 ' ^ ' The Nature of Personal Selling 440, The Role of the Sales Force 442 drr.i/. M a n a g i n g the Sales Force 443 ' ; •-'>•;? ••'• '.>n: n Designing Sales Force Strategy and Structure 443, Recruiting and Selecting Salespeople 447, Training Salespeople 450, Compensating Salespeople 450, Supervising Salespeople 452, Evaluating Salespeople 456 Principles of Personal Selling 456 The Personal Selling Process 456, Steps in the Selling Process 457, Relationship Marketing 459 Sales Promotion 460 Rapid Growth of Sales Promotion 461, Sales Promotion Objectives 462, Major Sales Promotion Tools 463, Developing the Sales Promotion Program 468 Reviewing the Concepts 469, Navigating the Key Terms 470, Net 471, MAP—Marketing Applications 472 Travel Log 470, Traveling the 14. Direct and On-Line Marketing 473 What Is Direct Marketing? 476 Growth and Benefits of Direct Marketing 476 The Benefits of Direct Marketing 477, The Growth of Direct Marketing 478 Customer Databases and Direct Marketing 478 Forms of Direct Marketing Communication 483 Face-to-Face Selling 483, Direct-Mail Marketing 483, Catalog Marketing 485, Telemarketing 486, Direct-Response Television Marketing 486, Kiosk Marketing 487 CONTENTS On-line Marketing and Electronic Commerce 488 Rapid Growth of On-line Marketing 489, The On-line Consumer 490, The Benefits of On-line Marketing 492, On-line Marketing Channels 493, The Promise and Challenges of On-line Marketing 500 Integrated Direct Marketing , ' •-' - n < - '•• • • • > ; J A U . W I :;n i 501 ' Public Policy and Ethical Issues in Direct Marketing 504 Irritation, Unfairness, Deception, and Fraud 504, Invasion of Privacy 504 Reviewing the Concepts 505, Navigating the Key Terms 507, Net 508, MAP—Marketing Applications 509 Travel Log 507, Traveling the Extending Marketing 15. The Global Marketplace 511 ^.-•.•...A Global Marketing into the Twenty-First Century 514 ! - : v-'J Looking at the Global Marketing Environment 518 The International Trade System 518, Economic Environment 521, Political-Legal Environment 522, Cultural Environment 523 •-.-;• ••: •..-;;,. Deciding Whether to Go International Deciding Which Markets to Enter 525 ;: ; ..- ;. 525 ..v .' Deciding How to Enter the Market 529 Exporting 529, Joint Venturing 530, Direct Investment 531 • > • ' , - ...,iM : v'; Deciding on the Global Marketing Program 532 ' Product 532, Promotion 534, Price 536, Distribution Channels 536 Deciding on the Global Marketing Organization • •••> ' , 538 Reviewing the Concepts 539, Navigating the Key Terms 539, Net 541, MAP—Marketing Applications 541 •T- ' 'i Travel Log 540, Traveling the .• J /-Vi. 11 .f' 16. Marketing and Society: Social Responsibility and Marketing Ethics 543 Social Criticisms of Marketing 546 Marketing's Impact on Individual Consumers 546, Marketing's Impact on Society as a Whole 553, Marketing's Impact on Other Businesses 555 Citizen and Public Actions to Regulate Marketing 556 '•'•' •' Consumerism 556, Environmentalism 557, Public Actions to Regulate Marketing 563 Business Actions Toward Socially Responsible Marketing Enlightened Marketing 563, Marketing Ethics 566 563 Reviewing the Concepts 571, Navigating the Key Terms 572, Net 573, MAP—Marketing Applications 574 Travel Log 572, Traveling the CONTENTS Appendix 1 Marketing Arithmetic A1 Appendix 2 Careers in Marketing A8 Glossary G1 Endnotes N1 Video Cases Credits C1 CR1 Indices Company/Brand Name 11 Author 110 Subject 113