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FOUNDATIONS OF MARKETING 3RD EDITION
Pearson is the world’s leading learning company. Our education business combines 150 years of experience in
publishing with the latest learning technology and online support. We help people learn whatever, wherever and
however they choose.

FOUNDATIONS OF MARKETING
Pearson Custom works for educators. We partner with you to build course-specific materials, designed to
facilitate student success. We open the door to a wealth of content and technology and walk you through the
process of selecting or creating the custom resources to meet your goals.

3RD EDITION

UNIVERSITY OF QUEENSLAND
To get in touch, email [email protected].

A CUSTOM EDITION COMPILED BY OWEN SEAMONS

UNIVERSITY OF QUEENSLAND

PLA_006.indd 1 20/11/14 11:00 AM

Contents vii

Planning marketing: Partnering to build customer Student learning centre

relationships 46 • Reviewing the learning objectives 94
Partnering with other company departments 46 • Discussion questions 94
Partnering with others in the marketing system 47 • Critical thinking exercises 95
Marketing strategy and the marketing mix 48 • Navigating the key terms 95
Customer-driven marketing strategy 49 • Ethical reflection 3.1 95
Developing an integrated marketing mix 51 • Mini cases 96
3.1 Competitive environment 96
Managing the marketing effort 52 3.2 Cultural environment 96
Marketing analysis 52 3.3 Sustainability costs 97
Marketing planning 53 • References 97
Marketing implementation 54
Marketing department organisation 55 CHAPTER 4
Marketing control 56 Managing marketing information to gain
Measuring and managing return on marketing investment 56 customer insights 100
Student learning centre
Learning objectives 100
• Reviewing the learning objectives 60
• Discussion questions 61 Concept map 101
• Critical thinking exercises 61 Marketing information and customer insights 102
• Navigating the key terms 61 Assessing marketing information needs 104
• Ethical reflection 2.1 62 Developing marketing information 105
• Mini cases 62 Internal data 105
2.1 Marketing strategy 62 Competitive marketing intelligence 105
2.2 Customer focus 62
2.3 Growth strategy 63 Marketing research 107
• References 63 Defining the problem and research objectives 108
Developing the research plan 108
Part 1 Case study: Bellamy’s Organic: Providing babies
Marketing in action 4.1
and young children with a pure start to life 65
Managerial judgment is required when interpreting
marketing research 109

2 Understanding the marketplace and

consumers 69
Primary data collection
Implementing the research plan
Interpreting and reporting the findings
113
121
121
CHAPTER 3 Analysing and using marketing information 122
Analysing the marketing environment 70 Customer relationship management 122
Distributing and using marketing information 123
Learning objectives 70
Concept map 71 Other marketing information considerations 123
Marketing research in small businesses and non-profit
The company’s microenvironment 72 organisations 123
The company 72 International marketing research 124
Suppliers 73 Public policy and ethics in marketing research 125
Marketing intermediaries 73
Competitors 74 Student learning centre
Publics 74 • Reviewing the learning objectives 128
Customers 75 • Discussion questions 129
• Critical thinking exercises 129
The company’s macroenvironment 75 • Navigating the key terms 129
Demographic environment 75 • Ethical reflection 4.1 130
Economic environment 82 • Mini cases 130
Natural environment 83 4.1 Gathering data 130
Technological environment 85 4.2 Customer insights 131
Political and social environment 86 4.3 Marketing research and innovation 131
Cultural environment 89 • References 132
Marketing in action 3.1
Individual me 92
Responding to the marketing environment 93

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viii Contents

CHAPTER 5 Selecting target market segments 185

Understanding consumer and business buyer Socially responsible target marketing 188
behaviour 134 Differentiation and positioning 189
Positioning maps 190
Learning objectives 134 Choosing a differentiation and positioning strategy 190
Concept map 135 Communicating and delivering the chosen position 195
Consumer markets and consumer buyer behaviour 136 Student learning centre
Model of consumer behaviour 136 • Reviewing the learning objectives 196
Characteristics affecting consumer behaviour 137 • Discussion questions 197
Marketing in action 5.1 • Critical thinking exercises 197
Consumer behaviour: A whole life story 142 • Navigating the key terms 197
The buyer decision process 147 • Ethical reflection 6.1 197
The buyer decision process for new products 151 • Mini cases 198
Stages in the adoption process 151 6.1 Target marketing 198
Individual differences in innovativeness 151 6.2 Product differentiation 199
Influence of product characteristics on rate of adoption 152 6.3 Differentiation 199
• References 200
Business markets and business buyer behaviour 152
Business markets 153 CHAPTER 7
Business buyer behaviour 155
Products, services and brands: Offering
The business buying process 158
E-procurement: Buying on the internet 160 customer value 202
Student learning centre Learning objectives 202
• Reviewing the learning objectives 162 Concept map 203
• Discussion questions 163 What is a product? 204
• Critical thinking exercises 163 Products, services and experiences 204
• Navigating the key terms 164 Levels of products and services 205
• Ethical reflection 5.1 164 Product and service classifications 206
• Mini cases 164 Product and service decisions 209
5.1 Consumer behaviour 164 Individual product and service decisions 209
5.2 Buying process 165
5.3 Business buyer behaviour 165 Marketing in action 7.1
• References 166 Just what is effective packaging? 213
Product line decisions 215
Part 2 Case study: Customer insights: On the road to Product mix decisions 216
customer value 168
Services marketing 217

3
Nature and characteristics of a service 217
Designing a customer-driven strategy Marketing strategies for service firms 219
and mix 171 The service–profit chain 219
Managing service differentiation 220
CHAPTER 6 Branding strategy: Building strong brands 222
Customer-driven marketing strategy: Creating Brand equity 222
value for target customers 172 Building strong brands 223
Learning objectives 172 Managing brands 228
Concept map 173 Student learning centre
Customer-driven marketing strategy 174 • Reviewing the learning objectives 229
• Discussion questions 230
Market segmentation 175 • Critical thinking exercises 231
Segmenting consumer markets 175 • Navigating the key terms 231
Marketing in action 6.1 • Ethical reflection 7.1 231
ALDI: Offering a ‘same-for-less’ value proposition 178 • Mini cases 232
Segmenting business markets 182 7.1 Products, services and experiences 232
Segmenting international markets 183 7.2 Product mix 232
Requirements for effective segmentation 183 7.3 Brand value 232
Market targeting 184 • References 233
Evaluating market segments 184

A01_ARMS2696_06_SE_FM.indd 8 19/11/14 9:18 AM

Contents ix

CHAPTER 8 Other internal and external considerations affecting

Developing new products and managing price decisions 271
Overall marketing strategy, objectives and mix 271
innovation 236
Organisational considerations 272
Learning objectives 236 The market and demand 272
Concept map 237 The economy 274
New-product development strategy 238 Other external factors 274
The new-product development process 239 New-product pricing strategies 275
Idea generation 239 Market-skimming pricing 275
Market-penetration pricing 276
Marketing in action 8.1
Product-mix pricing strategies 276
aussieBum: The innovation fast track 242
Product-line pricing 276
Idea screening 243
Optional-product pricing 277
Concept development and testing 243
Captive-product pricing 277
Marketing strategy development 244 By-product pricing 278
Business analysis 245 Product-bundle pricing 278
Product development 245
Test marketing 246 Price-adjustment strategies 279
Commercialisation 247 Discount and allowance pricing 279
Segmented pricing 279
Managing new-product development 247 Psychological pricing 280
Customer-centred new-product development 247
Team-based new-product development 248 Marketing in action 9.1
Pricing cues are customer clues 281
Systematic new-product development 249
Promotional pricing 283
Product life-cycle strategies 249 Geographical pricing 283
Introduction stage 251 Dynamic pricing 284
Growth stage 252 International pricing 285
Maturity stage 252
Price changes 286
Decline stage 253
Initiating price changes 286
Additional product and service considerations 254 Responding to price changes 288
Product decisions and social responsibility 254 Public policy and pricing 289
International product and services marketing 255 Pricing within channel levels 290
Student learning centre Pricing across channel levels 290
• Reviewing the learning objectives 257 Student learning centre
• Discussion questions 258 • Reviewing the learning objectives 291
• Critical thinking exercises 259 • Discussion questions 292
• Navigating the key terms 259 • Critical thinking exercises 293
• Ethical reflection 8.1 259 • Navigating the key terms 293
• Mini cases 260 • Ethical reflection 293
8.1 Innovation 260 • Mini cases 294
8.2 Social responsibility 260 9.1 Marketing technology 294
8.3 New-product development strategy 260 9.2 Price adjustments 294
• References 261 9.3 Marketing metrics 294
• References 295
CHAPTER 9 CHAPTER 10
Pricing to capture customer value 262 Placement: Customer value fulfilment 296
Learning objectives 262 Learning objectives 296
Concept map 263 Concept map 297
What is a price? 264 Supply chains and the value delivery network 298
Major pricing strategies 264 Supply chain goals 301
Customer value-based pricing 265 Major supply chain functions 303
Cost-based pricing 267 The nature of marketing channels and value creation 305
Competition-based pricing 269 Marketing channels add value 306

A01_ARMS2696_06_SE_FM.indd 9 19/11/14 9:18 AM

x Contents

Number of channel levels 307 • Discussion questions 369

Channels in the service sector 309 • Critical thinking exercises 371
Channel behaviour and organisation 309 • Navigating the key terms 371
Channel behaviour 309 • Ethical reflection 11.1 371
Channel organisation 310 • Mini cases 371
11.1 Integrated marketing communication 371
Marketing in action 10.1
11.2 Advertising ratings 372
Multichannel services marketing 314
11.3 PR and social media 373
Retailing 316 • References 373
Types of retailers 316
Retailer marketing decisions 323
Wholesaling 328 CHAPTER 12
Types of wholesalers 328 Personal selling and sales promotion 376
Wholesaler marketing decisions 330 Learning objectives 376
Student learning centre Concept map 377
• Reviewing the learning objectives 333 Personal selling 378
• Discussion questions 334 The nature of personal selling 378
• Critical thinking exercises 335 The role of the salesforce 379
• Navigating the key terms 335
Managing the salesforce 380
• Ethical reflection 10.1 336
Designing salesforce strategy and structure 381
• Mini cases 336
Recruiting and selecting salespeople 384
10.1 Supply chains at work 336
Training salespeople 385
10.2 Corporate VMN 336
Compensating salespeople 386
10.3 Multichannel distribution networks 337
• References 338 Supervising and motivating salespeople 386
Evaluating salespeople and salesforce performance 389
CHAPTER 11 The personal selling process 389
Communicating customer value: Advertising Steps in the selling process 390
and public relations 340 Personal selling and managing customer relationships 392
Sales promotion 393
Learning objectives 340 Rapid growth of sales promotion 393
Concept map 341 Sales promotion objectives 394
The promotion mix 342 Marketing in action 12.1
Integrated marketing communications 342 Customer experience: Where loyalty programs and some
The new marketing communications landscape 343 really smart marketing analytics meet strategy 395
The shifting marketing communications model 343 Major sales promotion tools 396
The need for integrated marketing communications 344 Developing the sales promotion program 399
Marketing in action 11.1 Student learning centre
Dramatic shifts in main media 346 • Reviewing the learning objectives 401
Shaping the overall promotion mix 348 • Discussion questions 402
The nature of each promotion tool 349 • Critical thinking exercises 403
Promotion mix strategies 350 • Navigating the key terms 403
Advertising 351 • Ethical reflection 12.1 403
Setting advertising objectives 352 • Mini cases 404
Setting the advertising budget 353 12.1 Evaluating the salesforce 404
Developing advertising strategy 355 12.2 Smart about sales 404
Evaluating advertising effectiveness and return on 12.3 eCoupons 405
advertising investment 363 • References 405
Other advertising considerations 364
CHAPTER 13
Public relations 366
The role and impact of public relations 366
Direct and digital marketing: Building one-to-one
The main public relations tools 367 customer relationships 408
Student learning centre Learning objectives 408
• Reviewing the learning objectives 369 Concept map 409

A01_ARMS2696_06_SE_FM.indd 10 19/11/14 9:18 AM

Contents xi

The direct and digital marketing model 410 Sustainable marketing 454
Benefits of direct and digital marketing 412 Social criticisms of marketing 455
Benefits for buyers 412 Marketing’s impact on individual customers 455
Benefits for sellers 413 Marketing’s impact on society as a whole 459
Forms of direct and digital marketing 413 Marketing’s impact on other businesses 461
Using internet and mobile marketing 414 Consumer actions to promote sustainable marketing 462
Using direct print and reproduction 416 Consumerism 462
Using direct-response television and radio 416 Environmentalism 463
Using telemarketing 416 Public actions to regulate marketing 466
Using telesales 416 Business actions towards sustainable marketing 466
Using kiosks and electronic dispensing 417 Sustainable marketing principles 466
Customer database use in direct and digital marketing 417 Marketing in action 14.1
The customer database defined 417 Timberland: Making a difference in the world 469
Using a database in direct and digital marketing 419
The role of ethics in marketing 471
Adding value through interaction in online marketing 421 Marketing ethics 471
Methods of interacting online 421 The sustainable company 473
Marketing in action 13.1 Legal compliance in marketing 473
Search engine marketing: Three reasons why search engines exist 423 Putting a compliance program in place: Australian Standard
Customer-to-customer interaction 430 AS3806 – 2006 474
Customer-to-business interaction 431 Legal education 474
The promise and challenges of digital marketing 432 Coverage of a legal compliance program 475
Evaluating direct and digital marketing results 432 Student learning centre
Evaluating direct and digital marketing 433 • Reviewing the learning objectives 481
Evaluating online marketing 433 • Discussion questions 482
Evaluating customer database performance 436 • Critical thinking exercises 482
Public policy issues in direct and digital marketing 437 • Navigating the key terms 482
Irritation, unfairness, deception and fraud 437 • Ethical reflection 14.1 483
Privacy 438 • Mini cases 483
Student learning centre 14.1 Sustainability 483
• Reviewing the learning objectives 439 14.2 Legal compliance in marketing 484
• Discussion questions 440 14.3 Social responsibility in marketing 485
• Critical thinking exercises 441 • References 485
• Navigating the key terms 441 Part 4 Case study: Supermarket wars: Coles and Woolies
• Ethical reflection 13.1 441 battle for Australia’s grocery dollar 488
• Mini cases 442
13.1 Location-based marketing 442 APPENDIX 1
13.2 Direct and digital marketing 442 Marketing metrics spotlights 493
13.3 Evaluating direct and digital marketing 443
• References 443 APPENDIX 2
Part 3 Case study: Posse: Marketing the social search engine The marketing plan: An introduction 516
to business customers 446
APPENDIX 3

4 Extending marketing 451 FashionStatementX: A mini case study and

marketing plan 529
CHAPTER 14 APPENDIX 4
Sustainable marketing: Social responsibility, Study skills to succeed 534
ethics and legal compliance 452
Introduction 534
Learning objectives 452 Why did we write this appendix? 534
Concept map 453 What is today’s business world really like? 534

A01_ARMS2696_06_SE_FM.indd 11 19/11/14 9:18 AM

xii Contents

How this appendix will help you to achieve the three goals of Goal 2
your business degree 537 Become an effective professional communicator 578
How your business degree is structured 539
4 Become a professional communicator 582
Goal 1 Why you should read this section 582
Become a subject expert and higher order thinker 543 4.1 The key features of professional writing 582
4.2 Feature 1: Logical structure 582
1 Acquire knowledge in business disciplines 544
4.3 Feature 2: Analytical writing 583
Why you should read this section 544
4.4 Feature 3: Objectivity and tone 584
1.1 What is a subject discipline? 544
4.4.1 Objectivity 584
1.2 The terminology of disciplines: Facts, concepts, frameworks,
4.4.2 Appropriate tone 585
processes and theories 545
4.5 Feature 4: Evidence that is properly acknowledged and
1.3 Facts and what they are 546
referenced 586
1.3.1 Facts fit in to concepts 546
4.5.1 Why you must acknowledge and reference evidence:
1.4 What is a concept? 546
Academic and professional integrity 587
1.4.1 How concepts work in academic disciplines 548
4.5.2 How to reference (acknowledge sources) 588
1.4.2 How to work with concepts: From ‘the consumer’ to
4.6 Feature 5: Evidence that is integrated into your writing 593
‘celebrity endorsement’ in marketing 548
4.6.1 Using reporting verbs to convey exact meaning 594
1.4.3 Two further points about concepts 550
4.6.2 Using figures, tables and graphs 594
1.5 What is a framework? 551
4.7 Professional standards in writing: Grammar, punctuation
1.5.1 Applying frameworks in the disciplines 551
and spelling 596
1.6 What are processes in a discipline? 552
4.7.1 Basic sentences 596
1.7 What is a theory and what is the place of theory
4.7.2 Complex sentences 597
in disciplines? 552
4.7.3 Subject–verb agreement 597
1.8 The falsifiability of theories 553
4.7.4 Use of fewer and less 598
1.8.1 Theories and the world: A final thought 554
4.7.5 Tense 599
2 Introduction to higher order thinking 554 4.7.6 Use of articles 599
Why you should read this section 554 4.7.7 Punctuation 599
2.1 What is higher order thinking? 554 4.7.8 Commas, colons and semi-colons 600
2.2 Higher order thinking in personal and professional life 555 4.7.9 Common spelling errors 601
2.3 A process for higher order thinking: ARE 556 4.7.10 Use of verb tense (present, past) 601
2.4 The Analysis stage 557 4.8 Professional presentation of documents 602
2.4.1 Analysing the topic 557
5 Report writing 602
2.4.2 What you need to find out 559
Why you should read this section 602
2.4.3 The main ideas of your topic 559
5.1 What is a business report? 602
2.5 The Research stage 559
5.2 How is a business report structured? 603
2.5.1 Finding the information you need 560
5.2.1 Report structure applied to the celebrity
2.5.2 Assessing the information you have found 561
endorsement topic 604
2.5.3 Organising your research as you collect it 562
5.3 How to write and present the components of a business
2.6 The Evaluation stage 564
report 605
2.6.1 Evaluation to synthesise ideas and evidence 564
5.4 How to write an executive summary 605
2.6.2 Evaluation to select your final evidence 567
5.5 How to construct a table of contents 606
2.6.3 Self-assess how well you have carried out the
5.6 How to write a report introduction 606
ARE process 569
5.7 How to present your research and analysis in the discussion
2.7 The ARE process and your assignments 569
section of a report 607
2.7.1 Higher order thinking in the classroom 569
5.8 How to write a report conclusion 608
3 Higher order thinking in practice 570 5.9 How to write recommendations 609
Why you should read this section 570 5.10 How to construct a list of references 610
3.1 The example topic: Celebrity endorsement 570 5.11 Advice on the inclusion of appendixes 611
3.2 Working with your topic: The Analysis stage 570 5.12 How to write a business brief 612
3.2.1 Three approaches to the topic 572
3.3 Investigating the topic: The Research stage 573 6 Other forms of business writing 614
3.4 Bringing it all together: The Evaluation stage 576 Why you should read this section 614
3.4.1 Synthesising and selecting 576 6.1 Introduction to the section 614
3.4.2 Presenting your response to the topic 576 6.2 The structure and composition of an essay 614
6.2.1 Introduction 615
6.2.2 Main body 616

A01_ARMS2696_06_SE_FM.indd 12 19/11/14 9:18 AM

Contents xiii

6.2.3 Paragraph structure 617 9.2.2 The moral and social rationale for Professional
6.2.4 Conclusion 617 Codes of Conduct 661
6.3 The case study: How to respond to it and structure 9.3 Ethical reasoning: A difficult situation in professional life 663
your answer 619 9.4 Boundaries of a Professional Code of Conduct:
6.4 Reflective writing: What it is and how to do it 621 The area of personal ethics 664
6.5 Annotated bibliography: How to prepare and present it 622 9.5 Links between business and ethical theories 666
6.6 Literature review: How to prepare and structure it 623 10 The contemporary business world: Intercultural
6.6.1 How to refer to literature 626 and international perspectives 667
7 Oral communication 626 Why you should read this section 667
Why you should read this section 626 10.1 Diversity in the company workforce 667
7.1 The 3Cs of oral presentation: Connection, Communication, 10.2 Diversity in today’s business world 669
Confidence 626 10.3 What is culture and how is it manifested? 670
7.1.1 Why are these 3 skills the key ones? 626 10.4 Working effectively in multicultural settings:
7.2 The first ‘C’ of oral presentation: Connection 627 Acquiring knowledge, skills and experience 671
7.3 The second ‘C’ of oral presentation: Communication 628 10.4.1 The concept of cultural difference 671
7.4 The third ‘C’ of oral presentation: Confidence 632 10.4.2 Knowledge of other cultures: Research and theory 672
7.5 Practice, practice, practice 632 10.4.3 Gaining knowledge of other cultures in your
7.6 Giving the presentation 635 degree program 672
7.6.1 Taking questions 636 10.4.4 Gaining knowledge and skills in other cultures:
7.7 Assessing your performance 636 You and your fellow students 673
7.8 Creating effective PowerPoint presentations 637 10.4.5 Gaining knowledge of other cultures: Have
some fun! 674
Goal 3 10.5 The message of this appendix 674
Become an effective worker in a globalised world 638
8 Working effectively – in a team and on your own 639 APPENDIX 5
Why you should read this section 639 The marketing plan handbook 675
8.1 Introduction to teamwork 639 Preface 675
8.2 Working in teams: Why employers want graduates with
teamwork skills 639 Section 1
8.3 What is a professional team? 640 Marketing planning: New pace, new possibilities 679
8.4 Some misunderstandings about teamwork in your degree 640 Preview 679
8.5 Team formation 640
8.6 Teamwork and diversity 642 Marketing planning today 680
8.6.1 Celebrate diversity in your teamwork 644 Marketing and value 681
8.7 Keys to successful teamwork and teamwork experiences 644 The purpose of marketing planning 681
8.7.1 Communicate, communicate, communicate! 644 Contents of a marketing plan 682
8.7.2 Product: Task, sub-tasks and project stages Developing a marketing plan 684
and timing 645 Research and analyze the current situation 686
8.7.3 Process: Teamwork roles needed for a team to Understand markets and customers 686
operate effectively 645 Plan segmentation, targeting, and positioning 687
8.7.4 Process: Agreements for working together 646 Plan direction, objectives, and marketing support 688
8.8 Process: Understanding the evolutionary stages of teams 647 Develop marketing strategies and programs 688
8.9 Dealing with conflict situations in teams 647 Plan metrics and implementation control 690
8.10 Taking responsibility for your own learning: Preparing for marketing planning 691
The skills of self-reflection and self-efficacy 652 Primary marketing tools 691
8.10.1 Teamwork reflection and review 652 Supporting the marketing mix 692
8.10.2 Individual self-reflection and review 653 Guiding principles 693
8.10.3 Self-reflection and self-efficacy 656 • Summary 696
9 Professional and ethical conduct in business 656 • Your marketing plan, step by step 696
Why you should read this section 656 • Endnotes 696
9.1 What is a good professional? 657
9.2 How Professional Codes of Conduct help you to be
a good professional 660
9.2.1 The personal fall-out for you of a moral dilemma 661

A01_ARMS2696_06_SE_FM.indd 13 19/11/14 9:18 AM

xiv Contents

Section 2 Geographic variables 733

Analyzing the current situation 698 Psychographic variables 734
Preview 698 Applying segmentation variables to business markets 734
Behavioral and attitudinal variables 734
Understanding the marketing environment 699
Demographic variables 735
Environmental scanning 699
Geographic variables 735
SWOT analysis 700
Assessing and targeting segments 736
Analyzing the internal environment 701
Segment evaluation 736
Mission 701
Concentrated, undifferentiated, and differentiated marketing 738
Resources 702
Segment personas 738
Offerings 703
Previous results 703 Positioning for competitive advantage 739
Business relationships 704 Meaningful differentiation 739
Keys to success and warning signs 704 Positioning and marketing leverage 740
• Summary 741
Analyzing the external environment 704
• Your marketing plan, step by step 741
Political-legal trends 705
• Endnotes 742
Economic trends 706
Social-cultural trends 706 Section 5
Technological trends 707 Planning direction, objectives, and marketing support 743
Ecological trends 708
Preview 743
Competitor analysis 709
Refining the SWOT analysis 710 Determining marketing plan direction 744
• Summary 711 Growth strategies 745
• Your marketing plan, step by step 711 Nongrowth strategies 745
• Endnotes 712 Setting marketing plan objectives 746
Types of objectives 747
Section 3 Marketing objectives 747
Understanding markets and customers 713 Financial objectives 749
Preview 713 Societal objectives 749
Analyzing markets today 714 Planning marketing support 750
Broad definition of market and needs 715 Customer service 751
Markets as moving targets 717 Internal marketing 751
Market share as a vital sign 717 Shaping the marketing mix 752
Analyzing customer needs and behavior 718 • Summary 753
Consumer markets 719 • Your marketing plan, step by step 753
Business markets 721 • Endnotes 753
Planning marketing research 723 Section 6
Secondary research 723 Developing product and brand strategy 755
Primary research 724
Preview 755
Using marketing research 725
• Summary 726 Planning product strategy today 756
• Your marketing plan, step by step 726 Goods, services, and other products 756
• Endnotes 726 Features, benefits, and services 757
Quality and design 758
Section 4 Packaging and labeling 759
Segmenting, targeting, and positioning 728 Product development and management 760
Preview 728 New product development 761
Segmenting consumer and business markets 729 Product lines and the product mix 763
Segments and niches 730 Planning branding 764
Reasons to segment 730 Branding and positioning 764
Select the market 731 The power of brand equity 765
Applying segmentation variables to consumer markets 731 • Summary 767
Behavioral and attitudinal variables 732 • Your marketing plan, step by step 767
Demographic variables 732 • Endnotes 767

A01_ARMS2696_06_SE_FM.indd 14 19/11/14 9:18 AM

Contents xv

Section 7 Public relations 808

Developing pricing strategy 769 Direct marketing 809
Personal selling 809
Preview 769
Integrated marketing communication 810
Understanding value and pricing today 770 • Summary 811
Fixed, dynamic, and negotiated pricing 771 • Your marketing plan, step by step 811
Customer perceptions and demand 772 • Endnotes 812
Value-based pricing 773
Planning pricing decisions 774 Section 10
Pricing objectives 774 Planning metrics and implementation control 813
External pricing influences 775 Preview 813
Internal pricing influences 778 Measuring what matters 814
Adapting prices 781
Planning metrics 815
• Summary 782
Identifying metrics 816
• Your marketing plan, step by step 782
Marketing metrics for digital and social media 818
• Endnotes 782
Using metrics 819
Section 8 Planning forecasts, budgets, and schedules 820
Developing channel and logistics strategy 784 Forecasting sales and costs 820
Preview 784 Budgeting to plan and track expenses 822
Scheduling marketing plan programs 824
Planning for value-chain flexibility 785
Flows in the value chain 786 Controlling marketing plan implementation 825
Adding value through the chain 786 Applying control 826
Preparing contingency plans 826
Planning channel strategy 787
• Summary 828
Channel functions 787
• Your marketing plan, step by step 828
Channel levels 788
• Endnotes 828
Multichannel marketing 789
Reverse channels 790 Section 11
Channel members 790 Sample marketing plan: PretzL Elegance’s Artisanal
Influences on channel strategy 790
Chocolate Twists 830
Planning for logistics 793
Executive Summary 825
Logistical functions 793
Influences on logistics decisions 794 Current Situation 830
• Summary 796 Competition 831
• Your marketing plan, step by step 796 SWOT Analysis 832
• Endnotes 796 Market Size, Trends, and Needs 831
Target Segments and Service Requirements 833
Section 9 Consumers 833
Developing marketing communications and Businesses 834
influence strategy 798 Service Support 834
Preview 798 Marketing Direction and Objectives 835
Planning to communicate with and influence audiences 799 Product Strategy 835
Social media, word of mouth, buzz, and influence 799 Pricing Strategy 836
Choose the target audience 800
Communications and Influence Strategy 837
Set objectives and budget 802
Examine issues 802 Channel Strategy 838
Choose communication tools 803 Financials and Forecasts 839
Plan research 804 Implementation, Metrics, and Marketing Control 839
Using communication tools to engage audiences 805 • Answers to self-check questions 841
Advertising 805 • Glossary 852
Sales promotion 807 • Index 866

A01_ARMS2696_06_SE_FM.indd 15 19/11/14 9:18 AM

P R E FA C E

Welcome to your Principles of Marketing package

The sixth edition of Principles of Marketing makes the road to learning and teaching marketing more
effective, easier and more enjoyable than ever. Its streamlined approach strikes a careful balance between
depth of coverage and ease of learning. The sixth edition’s learning design – with revised integrative Concept
Map features at the start of each chapter – enhances student understanding. Principles of Marketing ensures
that you will come to class well prepared and leave with a richer understanding of basic marketing concepts,
strategies and practices.

The marketing journey: Creating and capturing customer value

Top marketers all share a common goal: putting the consumer at the heart of marketing. Today’s
marketing is all about creating customer value and building profitable customer relationships. It starts
with understanding consumer needs, wants and demands, deciding which target markets the organisation
can serve best, and developing a compelling value proposition by which the organisation can attract, keep
and grow targeted consumers. If the organisation does these things well, it will reap the rewards in terms of
market share, profits and customer equity. In this sixth edition of Principles of Marketing, you will see how
customer value – creating it and capturing it – drives every good marketing strategy.

New in the sixth edition

We have thoroughly revised the sixth edition of Principles of Marketing to reflect the major trends and forces
that marketing must take into account in this era of customer value and relationships. Here are just some
of the main changes you will find in this edition:
• The sixth edition builds on our learning design. The text’s more active and integrative presentation
includes in-chapter learning enhancements that guide you down the road to learning marketing. The
chapter-opening layout provides a Concept Map that graphically previews and positions each chapter
and its key concepts, providing you with a visual guide to more easily navigate the chapter. End-of-
chapter features summarise important concepts and highlight important themes, such as marketing
and the economy, technology, ethics and marketing financial analysis. We have added critical thinking
questions and mini-cases to provide opportunities to practise marketing skills. In all, the new design
enhances student understanding and facilitates learning.
• Throughout the sixth edition, you will find important coverage of the rapidly changing nature of
customer relationships with companies and brands. Today’s marketers aim to create deeper consumer
involvement and a sense of community surrounding a brand – to make the brand a meaningful part
of consumers’ conversations and their lives. New relationship-building tools include everything from

A01_ARMS2696_06_SE_FM.indd 16 19/11/14 9:19 AM

Preface xvii

websites, blogs, in-person events and video sharing, to online communities and social networks such as
Facebook, YouTube, Twitter and LinkedIn, or the organisation’s own social networking sites.
• Every chapter shows how companies are marketing in turbulent local and international economies
in the aftermath of the global financial crisis, political unrest in the Middle East, and natural disasters
in Asia, Oceania and Japan. Starting with sections on adding customer value in each chapter, and
continuing with discussions and examples integrated throughout the text, the sixth edition shows how,
now more than ever, marketers must focus on creating customer value and sharpening their value
propositions to serve the needs of today’s more frugal consumers.
• Increasingly, marketing is taking the form of two-way conversations between consumers and brands.
The sixth edition contains material on the exciting trend towards consumer-generated marketing,
by which marketers invite consumers to play a more active role in providing customer insights that
shape new products and marketing communication among other developments. This can be seen in
Chapters 11 and 13, in particular.
• This edition provides new and expanded discussions of new marketing technologies, from ‘the
immersive web’ in Chapter 13 to radio frequency ID (RFID) in Chapter 10, to the new-age digital
marketing and online technologies discussed in Chapters 1, 5, 11 and 13.
• In line with the text’s emphasis on measuring and managing return on marketing, we have added
marketing metrics discussions to an innovative Appendix 1: Marketing Metrics Spotlights to encourage
students to apply analytical thinking to relevant concepts in related chapters. We have also included
a number of mini cases at the end of each chapter to provide further opportunities to practise using
marketing metrics.
• When discussing marketing strategy in Chapter 2, we interconnect the discussion with a sample
marketing plan in Appendix 2. The marketing plan is set in the exciting mobile telephone market –
a topic close to the heart of today’s wired generations.
• The sixth edition provides refreshed and expanded coverage of the explosive developments in
integrated marketing communications and direct and digital marketing. It discusses how marketers
are incorporating a host of new digital and direct approaches in order to build and create more targeted,
personal and interactive customer relationships. No other text provides more current or encompassing
coverage of these exciting developments.
• In this edition we have cross-referenced the end-of-chapter discussion questions, critical thinking
questions and mini cases to the chapter learning objectives and AACSB General Skill Area requirements.

Your marketing tools

A wealth of chapter-opening, within-chapter and end-of-chapter learning devices help students to learn,
link and apply major concepts:
• Chapter-opening Concept Maps. Each chapter is introduced with a graphical concept map. These maps
are designed to contextualise the main topics that are introduced in the chapter and discussed in detail.
This innovation is designed to help the reader navigate each chapter and more easily interconnect the
various elements that are discussed.
• Figure Annotations. Throughout the chapter, figure annotations ease and enhance student learning by
explaining the figures.
• Marketing in Action. Each chapter contains one Marketing in Action (MIA) feature that delves into
the real marketing practices of large and small companies.
• Reviewing the Learning Objectives. A summary at the end of each chapter reviews the main chapter
concepts and links them to the chapter objectives.
• Discussion and Critical Thinking Questions. At the end of each chapter, issues are raised that form ideal
tutorial questions since they invite discussion and the critical exploration of marketing ideas.

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xviii Preface

• Navigating the Key Terms. A helpful listing of chapter key terms by order of appearance with page
numbers facilitates easy reference.
• Ethical Reflections. End-of-chapter ethical reflections present a counterpoint to mainstream marketing
thinking.
• Mini Cases. Brief sections at the end of each chapter provide short application cases that facilitate
discussion of current issues and company situations. The mini cases complement the longer cases
provided at the end of each part. The end-of-part case studies link the learning objectives across the
various chapters.
• Marketing Metrics Spotlights. Appendix 1 provides you with a comprehensive introduction to marketing
and financial measures that help to guide, assess and support marketing.
• Marketing Plan. Appendix 2 contains a sample marketing plan that helps you to apply important
marketing planning concepts.
• FashionStatementX: Appendix 3 is a mini case study which provides students with the opportunity to
develop a strategic marketing plan for a new business.
More than ever before, the sixth edition of Principles of Marketing provides an effective and enjoyable
total package designed to guide you down the road to learning marketing!

Learning aids contained within this book

This text provides a practical, managerial approach to marketing and gives the reader a rich variety of
examples and applications to illustrate the main decisions that marketing management faces in its efforts
to balance the organisation’s objectives and resources against needs and opportunities in the global
marketplace. These learning aids are illustrated on the following pages.

Learning objectives Concept map

Each chapter begins with LO 1
Explain how companies find
New
produ
ct development pr
oces

Idea
s A marketing story
screening

learning objectives that introduces every

and develop new-product
ideas.
(pp. 238–39)

prepare the reader for 8

CHAPTER D E V E LO P I N G N E W P R O D U C T S A N D
M A N A G I N G I N N O V AT I O N
Concept
development
and testing
Idea
generation
chapter, providing a
the chapter material and In the previous chapter, you learned how marketers manage and develop products and brands. In this
chapter, we examine two additional product topics: developing new products and managing products
through their life cycles. New products are the lifeblood of an organisation. However, new-product develop-
real-world context for
detail the learning goals. the central themes
ment is risky, and many new products fail. So, the first part of this chapter lays out a process for developing LO 2 Marketing
and introducing successful new products. Once introduced, marketers want their products to enjoy long List and define the steps in strategy
the new-product development
and successful lives. In the second part of the chapter, you will see that every product passes through
development process and
several life-cycle stages and that each stage poses new challenges requiring different marketing strategies describe the main Business
analysis
ges
and tactics. Finally, we’ll wrap up our product discussion by looking at two additional considerations: social considerations in managing

of the chapter.
responsibility in product decisions, and international product and services marketing. this process. sta
High

le
maj iddle

cyc
ority

(pp. 239–49)
profi

For a visual representation of the chapter, please see the diagram on the following page.
M
fe

t
t li

Peak sale Stable

duc

s
Learning Learning Objective 1 Explain how companies find and develop new-product ideas. Maturity competition
Pro

Objectives New-product development strategy pp. 238–39

competi

g
Growing

Learning Objective 2 List and define the steps in the new-product development process, and
Declinin
sales

describe the main considerations in managing this process. Product

tion

LO 3 Early ning development

The new-product development process pp. 239–47 adop Decli ofit
Describe the stages of the ters pr
Managing new-product development pp. 247–49 product life cycle and how Growth Commercialisation Decline
Learning Objective 3 Describe the stages of the product life cycle and how marketing strategies marketing strategies change t Lagga
during the product life cycle. profi rds
change during the product life cycle. Risin
g
(pp. 249–54)
sales g

compet

Product life-cycle strategies pp. 249–54

risin

Decliniition
Rapidly

Learning Objective 4 Discuss socially responsible product decisions, and international product
ng

Test
and services marketing. marketing
Additional product and service considerations pp. 254–57 Introduction
s Innova
Low sale tors
com
profitive

Few ors
petit
t
Nega

LO 4
Discuss socially responsible
product decisions and
international product and
services marketing.
(pp. 254–57)

A01_ARMS2696_06_SE_FM.indd 18 19/11/14 9:19 AM

Preface xix

Self-check questions 48 Part 1 Defining marketing and the marketing process Chapter 2 Company and marketing strategy: Partnering to build customer relationships 49
Highlighted
are included at the end Marketing
Intermediaries
Competitors definitions and
of each chapter’s main key terms
Ma
ng pla rk
eti sis n
y Peop

eti ng
an k
e
Pric

r
le

ng
al

ni
Marketing strategy involves two
n
Segme tation key questions: Which customers

sections. Answers are

will we serve (segmentation and

Throughout each
targeting)? and How will we create

Process
Product
Profitable value for them (differentiation and

Targeting
Po s i t i o n i n g
positioning)? Then, the company
At its core, customer designs a marketing program—
marketing is all relationships
about creating the marketing mix—that delivers
the intended value to targeted

provided at the end of

customer value and

ce
chapter, definitions
consumers.

den
profitable customer
D ifferenti ati on

Pro

evi
relationships.

mo
on c
ysi

al
ti
Cooperation and
Ph

Ma ont

nta ng
competition: The Toyota 86

n
ti Placement logistics rk

tio
rke
rol ng

e ti
Ma me

c
is a well-reviewed sports
le
imp

the text.
car made in conjunction

are highlighted in the

with Subaru, which markets
the BRZ.
Bloomberg via Getty Images
Suppliers Publics

FIGURE 2.4 Managing marketing strategies and the marketing mix

maker Toyota’s performance against Holden and Ford depends on the quality of Toyota’s overall value
delivery network compared to that of its competitors. Despite recalls of various models in recent times,
Toyota and Honda have been renowned for making good cars. Toyota’s network provides very customer- Customer-driven marketing strategy
margin in colour adjacent
satisfying sales and service. This, on top of speed to market with innovative products such as the Prius and As we emphasised throughout Chapter 1, to succeed in today’s competitive marketplace, companies need to

to where each term

its new sports car made in partnership with Subaru, the 86, has led to Toyota’s global success. be customer-centred. They must win customers from competitors, then keep and grow them by delivering
greater value. But before it can satisfy customers, a company must first understand their needs and wants.
SELF CHECK QUESTION Thus, sound marketing requires careful customer analysis.
Is the marketing department solely responsible for the organisation meeting its strategic objectives? Companies know that they cannot profitably serve all consumers in a given market – at least not all

is discussed in the text.

consumers in the same way. There are too many different kinds of consumers with too many different kinds
of needs. And most companies are in a position to serve some segments better than others. Thus, each
Marketing strategy and the marketing mix (pp. 48–52) company must divide up the total market, choose the best segments, and design strategies for profitably
The strategic plan defines the company’s overall mission and objectives. Marketing’s role and activities serving chosen segments. This process involves market segmentation, market targeting, differentiation and
are shown in Figure 2.4, which summarises the main activities involved in managing a customer-driven positioning.
marketing strategy and the marketing mix.
Customers stand in the centre. The goal is to create value for customers and build profitable customer Market segmentation
Marketing strategy relationships. Next comes marketing strategy – the marketing logic by which the company hopes to create The market consists of many types of customers, products and needs. The marketer has to determine which Market segmentation
The marketing logic by this customer value and achieve these profitable relationships. The company decides which customers segments offer the best opportunities. Consumers can be grouped and served in various ways based on Dividing a market into
which the company hopes to distinct groups of buyers
create customer value and it will serve (segmentation and targeting) and how (differentiation and positioning). It identifies the total geographic, demographic, psychographic and behavioural factors. The process of dividing a market into
who have different needs,
achieve profitable customer market, then divides it into smaller segments, selects the most promising segments, and focuses on serving distinct groups of buyers who have different needs, characteristics or behaviours, and who might require characteristics or behaviours,
relationships. and satisfying the customers in these segments. separate products or marketing programs, is called market segmentation. and who might require
Guided by marketing strategy, the company designs an integrated marketing mix made up of factors Every market has segments, but not all ways of segmenting a market are equally useful. For example, separate products or
marketing programs.
under its control – product, price, people, process, physical evidence, placement logistics and promotion. Panadol or Herron would gain little by distinguishing between low-income and high-income pain reliever
To find the best marketing strategy and mix, the company engages in marketing analysis, planning, users if both respond the same way to marketing efforts for paracetamol analgesics. A market segment consists Market segment
implementation and control. Through these activities, the company watches and adapts to the actors and of consumers who respond in a similar way to a given set of marketing efforts. In the car market, for example, A group of consumers who
respond in a similar way
forces in the marketing environment. We will now look briefly at each activity. Then, in later chapters, consumers who want the biggest, most comfortable car regardless of price make up one market segment. to a given set of marketing
we will discuss each one in more depth. Consumers who care mainly about price and operating economy make up another segment. It would be efforts.

Marketing in action 242 Part 3 Designing a customer-driven strategy and mix

128 Part 2 Understanding the marketplace and consumers
Student learning
REVIEWING THE LEARNING OBJECTIVES

centre
STUDENT LEARNING CENTRE

Additional examples and

To create value for customers and build meaningful relationships of developing a research plan for collecting data from primary
and secondary sources. The third step calls for implementing the
8.1

with them, marketers must first gain fresh, deep insights into
AUSSIEBUM: THE INNOVATION FAST TRACK what customers need and want. Such insights come from good marketing research plan by gathering, processing and analysing
marketing information. As a result of the recent explosion of the information. The fourth step consists of interpreting and
In the world of fashion, it can take anything from six to everything is done in-house – from design, to fabric printing,

important information
reporting the findings. Additional information analysis helps

Each chapter concludes

marketing technology, companies can now obtain great quantities
18 months to create a new collection. Not so for Australian men’s to communications. The local production enables the company of information, sometimes even too much. The challenge is to marketing managers apply the information and provides them
swimwear and underwear icon aussieBum – the company has a to maintain a very high level of control over the whole process.
MARKETING IN ACTION

transform today’s vast volume of consumer information into with sophisticated statistical procedures and models from which
design cycle of just 12 weeks and can create a new look and have So, even though manufacturing costs are about ten times what actionable customer and market insights. to develop more rigorous findings.
it on the market in just a week (if it has to). As Sean Ashby, lead they would be if it manufactured in China, the company was still Both internal and external secondary data sources often

are presented in with a section dedicated

designer, company founder and co-owner of aussieBum, notes: able to grow by 40 per cent during the Global Financial Crisis LEARNING OBJECTIVE 1. Explain the importance of provide information more quickly and at a lower cost than primary
‘It is not unusual for me to come up with a new idea on Monday. and now has an annual turnover in the tens of millions and an information in gaining insights about the marketplace data sources, and they can sometimes yield information that a
We have it sampled and any adjustments made by Wednesday. estimated 1000 e-tail orders a day. and customers. (pp. 102–4) company cannot collect by itself. However, needed information
We shoot using the prototype Thursday and because all the The marketing process starts with a complete understanding might not exist in secondary sources. Researchers must also
marketing is done in-house we can have it on sale by Friday. Sources: Kat Slowe, ‘Exclusive interview: Aussie Bum founder Sean Ashby’, Lingerie
of the marketplace and consumer needs and wants. Thus, the evaluate secondary information to ensure that it is relevant,

marketing highlight to student learning.

Insight, 12 November 2012; ‘Aussie Bum releases WrestleMe’, The Underwear Expert,
Over the weekend the garment goes into production to meet the company needs sound information in order to produce superior accurate, current and impartial.
21 September 2012; Katrina O’Brien, ‘Smarty pants’, The Australian, 6 March 2009;
initial internet orders for Monday.’ and Felicity Carter, ‘Speak the lingo’, Fastthinking, 1 September 2008. value and satisfaction for customers. The company also requires Primary research must also be evaluated for these features.
Inspiration begins with a colour theme and then the idea information on competitors, resellers, and other actors and Each primary data collection method – observational, survey
behind each range, but customers are a big part of the design Questions forces in the marketplace. Increasingly, marketers are viewing and experimental – has its own advantages and disadvantages.
process. The company’s customer base is broad and includes The aussieBum website encourages its customers to keep information not only as an input for making better decisions but

exhibits throughout It provides a Summary of

Similarly, each of the various research contact methods – mail,
everyone from the ‘fashion trendsetter to the more classic guy in touch through social media such as Facebook, and even also as an important strategic asset and marketing tool. telephone, personal interview and online – also has its own
who does not want to be seen wearing labels’. The company’s advantages and drawbacks.
directly to its co-founder
international markets are also very different, so aussieBum LEARNING OBJECTIVE 2. Define the marketing information
Sean Ashbury. How could aussieBum’s new system and discuss its parts. (pp. 104–7)
creates three summer lines every year, first for Australia and LEARNING OBJECTIVE 4. Explain how companies analyse
this information be useful for WrestleMe swimwear:
and use marketing information. (pp. 122–23)

the text, together with the chapter, Key Terms,

Asia, then for North America, and finally for Europe. With over Inspiration came from the The marketing information system (MIS) consists of people and
150 products, the company has garments for every taste, from the company as it seeks to wrestling events during procedures for assessing information needs, developing the needed Information gathered in internal databases and through market-
the WONDERJOCK PRO to the SRUFFS loungewear range and the develop new products? the London Summer information, and helping decision makers to use the information ing intelligence and marketing research usually requires more
The company has a very short Olympics. With styles aptly
new WRESTLE ME swimsuits modelled after a wrestler’s outfit to generate and validate actionable customer and market insights. analysis. This may include advanced statistical analysis or the
named WrestleMe France,
and shown on a billboard for the Disney Marvel movie, The new-product development WrestleMe USA (shown), A well-designed information system begins and ends with users. application of analytical models that will help marketers make

questions for class and a Concept Check section

Avengers. lead-time. Do you think the WrestleMe Australia and The MIS first assesses information needs. The marketing better decisions. To analyse individual customer data, many
The short lead-time enables the company to be very new-product development WrestleMe Everybody, information system primarily serves the company’s marketing companies have now acquired or developed special software and
there’s a colour for any
responsive to customer feedback, to take advantage of process (see Figure 8.1) might and other managers, but it may also provide information to analysis techniques – called customer relationship management
team or any taste.
opportunities (such as an exciting new fabric) and to respond be different for aussieBum? aussieBum, www.aussieBum. external partners. Then, the MIS develops information from (CRM) – that integrate, analyse and apply the mountains of
quickly to market trends (such as the shift com internal databases, marketing intelligence activities and individual customer data contained in their databases.

individual use. and a Reviewing the

to clothing with a reduced environmental marketing research. Internal databases provide information on Marketing information has no value until it is used to make
impact). One look at the website gives a the company’s own operations and departments. Such data can better marketing decisions. Thus, the marketing information
real sense of just how customer-focused the be obtained quickly and cheaply but often needs to be adapted system must make the information available to the managers and
company is. How many company contact for marketing decisions. others who make marketing decisions or deal with customers.

Issues section.
pages include the company founder’s email Marketing intelligence activities supply everyday information In some cases, this means providing regular reports and updates;
address with a friendly note saying, ‘If Sean about developments in the external marketing environment. in other cases, it means making non-routine information available
is away on assignment there may be a short Market research consists of collecting information relevant to for special situations and on-the-spot decisions. Many firms use
delay.’ Visitors can make a suggestion or leave a specific marketing problem faced by the company. Lastly, the company intranets and extranets to facilitate this process. Thanks
a comment, and can advise of technical and MIS helps users to analyse and use the information to develop to modern technology, today’s marketing managers can gain
site content issues via the contact pages or on customer insights, make marketing decisions and manage direct access to the information system at any time and from
the brand’s Facebook site. ‘The comments are customer relationships. virtually any location.
taken so seriously, they sometimes result in
new products.’ LEARNING OBJECTIVE 3. Outline the steps in the marketing LEARNING OBJECTIVE 5. Discuss the special issues some
The success of aussieBum is not based research process. (pp. 107–21) marketing researchers face, including public policy and
just on its customer-focused design, but The first step in the marketing research process involves defining ethics issues. (pp. 123–27)
also on its innovative business model. Unlike the problem and setting the research objectives, which may be Some marketers face special marketing research situations, such
many clothing manufacturers, aussieBum exploratory, descriptive or causal research. The second step consists as those conducting research in small business, not-for-profit or
has not moved production offshore. In fact,

Mini cases 232 Part 3 Designing a customer-driven strategy and mix Chapter 2 Company and marketing strategy: Partnering to build customer relationships 65
Case studies
Mini cases Bellamy’s Organic: Providing
STUDENT LEARNING CENTRE

PART 1: C ASE STUDY

These short application 7.1 Products, services and experiences

Real money for virtual goods
Who would pay $330 000 for a virtual space station? Players of
of analysing the online behaviour of gamers to make games even
more compelling. One social commentator noted, ‘We humans
tend to corrupt our environments and so a drive for power becomes
babies and young children with
a pure start to life and colour illustrations
Dr Gemma Lewis

cases at the end of each highlight key ideas,

the massively multi-player online (MMO) game called Entropia a desire for exploitation, and a need for financial success becomes
Tasmanian School of Business and Economics
Universe did. There is a new business model – called freemi-um – greed.’49
University of Tasmania, Australia
driving the economics of these games. Under this model, users play 1 How would you classify virtual goods – as a good, an
for free but can purchase virtual goods with real money. Worldwide experience or a service? Discuss the technological factors In today’s modern world of fast food and high obesity levels,
sales of virtual goods are predicted to reach US$11 billion by 2016. enabling the growth of virtual goods. (Learning Objective 1) parents are increasingly mindful of what they feed their children,

chapter address current stories and marketing

Most virtual goods are inexpensive – costing about $1 – such (AACSB: Communication; Application of Knowledge) including what formula they give to newborn babies. Products that
as the tractor you can buy in FarmVille or a weapon in World of 2 Discuss the ethical issues that might need to be considered enhance the welfare of children during the first few years of their Helen Sessions/Alamy
Warcraft. That may not seem like much, but when you consider that by a business developing games in which virtual products life are growing in popularity. The trends towards women returning continues to invest heavily in growing its distribution network.
game-maker Zynga’s FrontierVille had 5 million players within one are bought and sold. (Learning Objectives 1 and 4) (AACSB: to work, and families leading fast-paced lives, have also contributed Today, its products are available for purchase via the company’s
Communication; Application of Knowledge; Ethical Thinking)

issues and company strategies. Cases involve

month of launch, we are talking real money! Social commentators to demand for pre-prepared baby food and healthy child snacks. online store, and in major supermarkets and independent stores
are discussing the ethics of buying and selling virtual goods, and In Australia, the baby food industry has been growing at a rate nationwide. The company also exports 100% certified organic
of 4.8 per cent annually, with the strongest growth in the nutrient- baby food and formula to 12 countries, including China, Hong
rich and organic categories (IBIS World, 2013). Some experts predict Kong, Vietnam, Taiwan, Singapore, Malaysia and New Zealand,
7.2 Product mix companies are using these tools to engage directly with their that if present trends continue, by the time they reach the age of with more on the way.

situations. Questions are small- and medium-size

customers and to help shape their product mix.50 20, Australian children will have a shorter life expectancy than
Country Road’s ‘Summer by request’
In early 2013, customers of the iconic brand Country Road voted 1 Country Road is aligning its product mix with the preferences earlier generations, simply because of obesity (Modi, 2013). Levels Connecting with customers
to bring back classic garments to create an exclusive collection for of its customers. What might be the risks and rewards of of childhood obesity are increasing at staggering rates in many For Bellamy’s, its marketing plan has involved building and
Summer 2013. The successful Facebook campaign – ‘Summer by such product mix decisions? (Learning Objective 2) (AACSB: countries. In the UK, similar health issues are of concern. There, maintaining strong and profitable relationships with its customers.
organic baby food dominates the organic dry grocery category, It recognises that one of the most powerful promotional channels

linked to the chapter’s enterprises, as well as

Request’ – was enthusiastically received by customers and the Communication; Application of Knowledge)
company alike. As one fashion commentator observed, ‘Country 2 Evaluate the likely impact on Country Road’s brand equity with a 57 per cent share of trade (Smithers, 2013). for its products is word of mouth. For example, what could be
Road have recognised the importance of engaging their online of the ‘Summer by Request’ campaign using the Young and As parents become more educated about food nutrition a better endorsement for your product than having mothers
community, and it’s campaigns such as this which have helped Rubicam Brand Asset Valuator measures of differentiation, and the benefits of a healthy and balanced diet, their purchase recommending Bellamy’s to their friends? So, how does Bellamy’s
it develop such a loyal following who regularly engage with the relevance, knowledge and esteem (see ‘Brand Equity’, choices change. In 2004 Bellamy’s Organic broke into the market encourage positive word of mouth while also increasing awareness

learning objectives. large firms.

brand.’ Using customer feedback to determine the product mix p. 222). (Learning Objective 4) (AACSB: Analytical Thinking; by launching Australia’s first organically certified baby formula, and loyalty towards its brand? Not surprisingly, social media and
is not new, but social media such as Facebook make connecting Application of Knowledge) from its location in northern Tasmania. Originally a family- electronic marketing make it possible for the firm to reach and
with the market much easier today than five years ago. Smart owned company, Bellamy’s worked closely with Australia’s major interact with consumers, for consumers to reach and communicate
supermarkets prior to launching its range of three nutritional with the firm, and for consumers to connect and communicate
infant formula products. Over the next decade, expert supply directly among themselves. The number of online communities that
chain management and a commitment to promoting mindful exist to serve the needs of expectant or new mothers continues to
7.3 Brand value 1 Compare and contrast the methodologies used by Interbrand
eating have seen Bellamy’s develop a strong reputation for grow (for example, <www.kidspot.com.au>; <www.babycenter.
Investigating brand equity <www.interbrand.com>, BrandZ <www.brandz.com>
sourcing quality ingredients and providing their customers with com.au>; <www.huggies.com.au>; <www.bubhub.com.au>).
What is a brand’s worth? It depends on who is measuring it. For and Brandirectory <www.brandirectory.com> to determine
a trusted product. Still to this day, Bellamy’s produce Australia’s Importantly, these online network sites provide consumers
example, in 2013 Google was estimated to be worth US$93 billion brand value. Explain why there is a discrepancy in the rankings
only certified organic infant formula product; all its products are with the opportunity to interact and share stories, while also
by one brand valuation company, but only US$52 billion by from these ranking agencies (Learning Objective 4) (AACSB:
also 100 per cent Australian made. providing a suitable platform for companies to contribute to the
another. While this variation is extreme, it is not uncommon to Communication; Analytical Thinking)
Bellamy’s mission is to provide infants and children conversations or take up sponsorship opportunities (Mangold &
find that valuations of the same brand may differ by hundreds of 2 In 2013, Brandirectory ranked Woolworths the number
everywhere with a pure start to life. This value proposition has Faulds, 2009).
millions of dollars. Interbrand, BrandZ and Brandirectory publish one brand in Australia and number 113 in the Global Top
very clearly resonated with its target market of middle-income, In recent years, Bellamy’s has moved its marketing
global brand value rankings each year, but a comparison of these 500, valuing the brand at more than US$8.7 billion. In
more highly educated mothers. The company’s ability to communications back in-house, and spent time developing a
rating agencies’ 2013 rankings reveals an overlap of only five of the 2010, however, it valued the Woolworths brand at just over
continually deliver customer value and satisfaction has paid off; sophisticated social media strategy. This includes weekly posts
top ten brands. US$6 billion. Discuss reasons for the increase in Woolworths’
demand for its products has risen exponentially and in the past on the company-operated blog, regular updates and monthly
brand value between 2010 and 2013. (Learning Objective 4)
few years, revenue has increased by 900 per cent. competitions via its Facebook page and Twitter feed, and branded
(AACSB: Communication; Reflective Thinking)
In 2007 the original Bellamy family stepped out of the instructional videos via the company’s YouTube channel. Its
business, and it was acquired by Tasmanian Pure Foods Ltd. One of carefully crafted and executed strategy has worked. While the
the new owner’s first objectives was to make Bellamy’s products company does not have millions of social media fans, those that
available to every mum, everywhere. As such, Bellamy’s Organic do follow Bellamy’s are genuinely interested in the brand and

A01_ARMS2696_06_SE_FM.indd 19 19/11/14 9:19 AM

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He thought for a moment, and then added: “I think I ought to
have been told.”
“I thought you knew, sir.”
“Are you sure it was a detective?”
“Quite sure.”
But even as I spoke I remembered that I only had my own
deductions to guide me. No one had told me he was a detective. I
searched swiftly in my brain for some excuse, but could think of
none.
“How did you know he was a detective?”
“I heard him questioning one of the servants.”
“Which servant?”
“Waters.”
“What about?”
“I did not quite catch what he said, but it was quite easy to see
what he was.”
“He may have been gathering evidence for the inquest.”
“That is what I suggest.”
“Oh! I beg your pardon.”
He was evidently a little puzzled.
The next day Lord Gascoyne was buried. It was a beautiful sunlit
morning, and as we crossed the courtyard following the coffin in
procession I glanced up towards the windows of Lady Gascoyne’s
apartment. I could see a white hand slightly drawing apart the
closed curtains. I was sorry for her, but as matters were going I was
a good deal more sorry for myself.
The affair had already attained the dignity of a first-class mystery
in the London press, and as the victim was a Lord the sensation was
twice what it would otherwise have been.
Most of them frankly admitted that as far as they knew there was
no clue. But one halfpenny daily with an enormous circulation,
whose consistent unveracity seemed a matter of supreme
indifference to its readers, declared that there was a clue, and stated
that someone had come forward to show that Lord Gascoyne had
been in the habit of purchasing arsenic, that he was a confirmed
arsenic eater, and that everything he ate was impregnated with it.
It was very unpleasant to have the searchlight of the entire press
turned on the case so soon. It would put Scotland Yard on its mettle,
and detective forces are apt to strain matters somewhat when their
credit is publicly involved.
That evening I was walking up and down the terrace smoking a
cigar with no very comfortable feelings, when I caught sight of the
gleam of a white dress in the shadow of the battlements some way
off. I guessed at once who it was. Esther Lane was watching me.
Why was she doing so? Was it possible that some suspicion of
the truth had entered her brain? It dawned on me that, creature of
instinct as she was, she might have arrived at the truth by the clear
light of intuition.
I went swiftly towards her.
There was no time for her to evade me, but she shrank back into
the shadow as I approached her.
“Why are you watching me?” I said as gently as I could, putting
out my hands nervously.
She shrank back, thrusting me from her.
“Don’t touch me. Don’t touch me.”
Her voice was low, tense with a latent hysteria, which must have
caused her an immense effort to control.
“Why are you watching me?” I asked again.
She looked at me silently, the terror in her eyes growing.
She began to give me a strangely uneasy feeling.
“Oh, it’s horrible, horrible,” she murmured, and then stole away,
moving along the parapet like a ghost.
I was afraid of her, and of what she might do. She was evidently
losing her self-control fast. That she had guessed the truth was
obvious.
I went towards her rooms. They were dark. Perhaps she was still
wandering on the battlements with her unquiet thoughts.
I found my wife sitting up when I returned. She had been with
Lady Gascoyne.
“Such an utter loneliness, Israel. It is terrible. She seems to have
lost all interest in life. I have never seen such desolation.”
People have a way of being superlative when talking of those in
grief. I, too, was very sorry for Lady Gascoyne, but though she had
no children, she had everything else in the world to console her.
I comforted my wife and took her in my arms, wondering
curiously whether this would be the last night we should spend
together, which, indeed, it turned out to be.
The next day the inquest was resumed. None of the ladies of the
castle were present. Mr. Gascoyne—or Lord Gascoyne, as he was
now called—looked haggard and worn, and, as I thought, avoided
my eye. His manner, however, was extraordinarily kindly.
The servants were recalled and closely re-examined. They were
still quite consistent.
The bottle of claret had been opened and decanted by Waters.
He had placed it on the sideboard. No one else had touched it. The
servants were all devoted to their master. There was not the
slightest reason or motive for foul play on their part.
I noticed the detective sitting with the representatives of the
county police, the chief constable himself being present. I smiled
grimly as I surveyed all the materials for a very dramatic arrest.
The coroner then called me.
“After the ladies had withdrawn from the dinner-table on the
evening in question you were left alone with Lord Gascoyne?”
“That is so.”
“He was called out of the room and a servant entered whilst he
was away?”
“Yes.”
“Who declares that you had in your hand the claret decanter
from which Lord Gascoyne had been drinking.”
“I don’t remember. The servant took the decanter from me and
poured out some port.”
It was just as well I admitted this, for the servant’s statement
received curious corroboration.
“That will do.”
The next two witnesses were disconcerting. They were the
chemist from whom I had bought the arsenic and his assistant. I
was confronted with every proof of my folly.
I shall never forget the awful grayness which came over Lord
Gascoyne’s face when these witnesses gave their evidence. I noticed
that when they had finished everyone avoided looking at me. They
seemed afraid. The case appeared so simple that at first it also
appeared incredible. Those around hardly grasped it.
The coroner asked me if I would like to explain why I had bought
the arsenic.
Perhaps I made a mistake in saying that I used it as a tonic.
“Had I been in the habit of doing so?” was the next question.
“Yes, I had done so before.”
“Have you ever bought arsenic from that chemist before?”
“No.”
Here the family lawyer interposed, advising me to be very careful
of my answers. I was not obliged to reply to anything which might
incriminate me.
There was nothing more to be done. Towards the end of the
inquest the chief constable crossed to my side, and, sitting down in
quite a friendly manner, asked me to accompany him after the
inquest into the next room.
The jury, evidently taking into consideration the fact that I was
the next heir, that I had arsenic in my possession, that there was
every motive, and that I was the only person who could have done
it, returned a verdict of ‘Wilful murder’ against me. In my own eyes I
stood convicted as the veriest bungler who ever danced at the end
of a few yards of rope.
Lord Gascoyne was inexpressibly horrified, and there was a
something in his face which I had not seen before. Was it suspicion?
Perhaps he was thinking of the occasion when he learned that I was
in the Lowhaven hotel at the time of his son’s death. Truly I had
made some inexcusable mistakes.
If nothing succeeds like success, it is also true that nothing fails
like failure.
I found it somewhat difficult to play a sentimental role which
should be convincing. I felt that I ought to take a dramatic farewell
of my wife. Scenes of this sort, however, were distasteful to me. I
asked Lord Gascoyne to go and explain the situation to her, and
when she arrived I received her with a manner which entirely
forbade any outward expression of anguish. To do her justice, she
was not the kind of woman who was likely to make a scene. She
displayed the most perfect self-control, although I could see that she
was suffering acutely. It came as a terrible blow to her. No suspicion,
I am sure, of the possibility of such a thing had before entered her
mind. I don’t think anybody really thought me guilty, which was, to
say the least of it, peculiar, for it seemed to me as though the
evidence were plain enough. From his manner the chief constable
might have been driving me over to his place to stay for a day or
two, and the first intimation I received of the unpleasant reality of
the situation was the passing under the great gates of the county
prison and the knowledge that for the future I was not free to go
where I liked.
Chapter XXVIII
I suppose I must be thoroughly selfish, for at this moment of
extreme depression and misery I was thinking chiefly of myself. Of
course, I am curiously constituted, quite artificial from the world’s
point of view. I cannot say that I was a victim to the agony and woe
which I believed would have been the lot of most people in my
condition.
I, who had staked so much to win what I coveted, might have
been expected to suffer tortures at the reflection of what I had lost.
I had always thought that the most terrible thing about shame and
imprisonment must be the complete triumph of those who have
hated one—the triumph of the ‘I told you so.’ This and the
irrevocable loss of earthly pleasures and the binding hand and foot
as if one had no passions or emotions, were the things I had always
dreaded. My consolation was that my failure could not be a
commonplace one. Ordinary criminals might wear out their lives in
captivity and lose their identity through long years of vile slavery, but
the law, stupid and sordid as it is, had at least a due sense of the
dignity of my crime, and would meet a defiance like mine with the
dignified retort of death. Sordid crimes must meet with sordid
rewards. Death is never sordid, and it shuts out the derision of a
virtuous world.
I was caged, and through my own folly. A little patience and
ordinary care would have saved me. To have failed after such
triumphs, and to have failed where failure was irretrievable, was
maddening. I hated myself more than a converted sinner could have
done. It was all quite dreadful. A miserable fiasco, with a tragedy as
the result. I turned hot and cold whenever I thought of it—I mean
the fiasco, not the tragedy. I felt like an actor who has mangled his
part and knows it. The only thing to do was to make the end as
flamboyant as possible. There was strong temptation to proclaim my
triumphs forthwith. I was certain that for all hope there could be of
retrieving the position I might do so. I had, however, thrown away
too many cards. One never knows how time, even of the briefest,
will deal with facts, so I determined to be wary. I would fight every
inch of the ground. It would, at any rate, be an amusement till the
end, and my memoirs would keep my fame alive after death. One
does not sin greatly to be forgotten, and, after all, the great sinners
of history have had their share of posterity, and without the aid of
public monuments. The world is always more curious to hear about
vice than virtue.
For the first few days after my arrest I was a prey to savage
rage, and found it difficult to reduce myself to that condition of mind
in which a fighter who wants to make the best of things should be.
The first visit I received was from Lord Gascoyne. I was sorry for
him. He looked ghastly, and avoided my eye. I was sure now that
suspicion had done its work. Yet I knew he was blaming himself for
even wondering how it came about that I was in the hotel when his
son was poisoned. He had believed in me so thoroughly that he was
trying to drive off the horrid thoughts that would pursue him. My
wife’s belief in me did not waver. Women like her do not lightly
throw down the idols they have once set up. She loved me still, and
she was steadfast. I wondered what Sibella and Esther were
thinking. I was chiefly sorry for Sibella. It may have been because in
my heart of hearts I loved her best. I knew how helpless she would
feel. She would be obliged to conceal her grief, and she was the sort
of woman to whom repression might mean hysteria. She had
nothing to hold on to. The morbid horror of the whole thing would
terrify her. I found it better for my peace of mind not to think of her.
I had caught sight of Esther for one moment before I left
Hammerton. No one else saw her, but I was sure that she would be
about somewhere. She was in the woods as I drove past. Her face
was not pleasant to look upon. It was like the wraith of a memory,
the pitiful phantom of a disembodied soul. It seemed to me as I sat
alone during the quiet summer evenings, with the immense stillness
of the prison around me, that sometimes her presence passed into
my cell and made it curiously uncanny. I felt as if the arms of her
soul had reached as far as my prison home in her agony, and once I
even thought I heard her speak to me in a still, small voice.
I am no disbeliever in the unseen world, but curiously enough it
has never had any terrors for me. Its concreteness has always
seemed to me a difference in kind; a plane on which the idea is
shaped with more fluidity; that is all.
I wondered if she would confess our relations. She had, I am
sure, a high sense of honour, and her loyalty would probably stand
any test. Still, hers was a subtle mind, and might, its white light
having once been split, display a variety of tones and colours.
I do not think Lord Gascoyne had confided his suspicions to his
wife, for I received from her nothing but the kindest and most
encouraging of letters.
So I lay in gaol and waited, and the day for my examination
came. The police-court where I appeared was packed. The county
turned up in force; they were the same people who would have
fawned on me had I succeeded in my object. Perhaps it is unworthy
of an artist to suggest so much bitterness as lies in the word fawn. I
had been taken by Fate on my own terms, and if I had failed, it was
not for me to show a bitter spirit; in fact, it was illogical and small. I
had played for their admiration and, having failed, obtained instead
their derision.
My wife was in court the first day, and spoke to me in such a way
as to impress upon the world her absolute confidence. I had no
wish, however, to add to her sorrow, and I told her it would make
me happier if she remained away.
The case was gone into most exhaustively, and, despite the fact
that my lawyer declared that there was absolutely nothing on which
to go to a jury, I was committed for trial.
I am pleased to say that the newspapers were unanimous in
noticing my absolute calm of demeanour.
Chapter XXIX
A magistrate’s court is not a dignified place, and I had longed for
its sordid littleness to have an end that I might emerge on to a
larger platform.
I did so sooner than I expected. Lord Gascoyne, whose heart had
never been strong, succumbed under the strain and anxiety of the
whole affair, and I awoke one morning in prison to find the dream of
my life realised. I was Earl Gascoyne. My child, whether boy or girl,
would be the next heir, and whatever happened, I had achieved my
purpose.
It had one unlooked-for result. I immediately claimed my right to
be tried by my peers.
Judging from the newspapers, the claim came upon the public as
something of a shock. In the Radical press there was an outcry for
the abolition of such an antiquated custom. They were, however,
brought face to face with a law of the land which so long as it stands
is good.
This prospect almost reconciled me to my position. I saw myself,
a picturesque figure, seated on a daïs, with my fellow-peers in their
robes before me. Yes, I had just the appearance to carry off such a
situation.
I was sure of female sympathy. I was barely twenty-six, and
looked younger. I should certainly have obtained something for my
trouble.
The question as to whether I was likely to get a fairer trial from
my peers did not weigh with me. I would not for a certain acquittal
have foregone the scene in the House of Lords.
As far as I knew, the last peer to be tried on a charge of murder
was the celebrated Earl Ferrers. I read everything to do with this
trial with assiduity. I noticed that, instead of being relegated to the
common gaol, he had been confined in his own house. I regretted to
discover that this was not a right, or if it were I could not find
anything bearing on the subject.
It would have been eminently satisfactory to go under escort
from Park Lane to the House of Lords every day. As a matter of fact,
I supposed I should have to be taken to and fro, or perhaps I should
be lodged in some apartment in the precincts of Westminster Palace.
The prospect teemed with interest, and was not a little comic. The
papers, which had, of course, talked of nothing but my case for
weeks, became trebly excited. The probable ceremonial was
discussed at length by all of them. Articles by celebrated lawyers,
letters from antiquaries, suggestions from all sides, filled up their
columns and tided them over the dull weeks in a way which ought to
have made them highly grateful to me.
I was myself in doubt for a short period as to whether my never
having taken my seat or the oath would prevent my claiming my
privilege. I believe everyone was too anxious to see the fun to press
any debatable point. Of course, at the end of all this excitement
loomed a not improbable and most unpleasant climax, but I was
accustoming myself to think less and less of it every day.
I read the State Trials assiduously, for they teemed with interest
for me.
The fact that I was not to be tried with the farce of a jury was a
great comfort to me. If there is one thing more ridiculous than
another in our judicial system, it is the fiction that when a gentleman
has been tried before a dozen petty tradesmen he has been tried by
his peers. If a peer were tried by a dozen gentlemen of ordinarily
good standing and repute, he would be tried by his peers, but to try
a gentleman before a dozen men who can have no knowledge of the
conditions under which he has lived is simply absurd. Murder trials,
the results of which with our system of capital punishment are
irrevocable, should be tried by three judges whose verdict should be
unanimous, and the trial should always take place in another part of
the country from that in which the crime has been committed.
My perceptions became abnormally keen on matters of legal
procedure. I sometimes found myself, when reflecting on such
matters, starting with the assumption that I was innocent. It was
amazing how completely I could follow a line of argument having my
innocence for its basis.
It was decided that I should be taken to the House of Lords the
night before the trial and lodged in the precincts, under a strict
guard, till its conclusion.
I was uncertain until the last moment whether I should have the
escort of military, or mounted police. As a matter of fact, I was
honoured with neither, but was hemmed in by detectives.
I did not doubt but that I should have a perfectly fair trial. I can
imagine no tribunal where a man is likely to receive more impartial
treatment.
I read all the papers, and was disturbed to notice that a suspicion
gradually manifested itself as to the real truth. It began to be
remembered how speedily the members of the family which stood
between me and the title had disappeared, and under what tragic
circumstances.
I had always made a point of not having my photograph taken.
Unfortunately, the police did this for me, and the proprietor of the
hotel at which young Gascoyne Gascoyne had stayed when he was
supposed to have poisoned himself recognised me at once. It was
flattering as a tribute to my individuality, but inconvenient. I was for
at once admitting that I had been at the hotel at the time, but my
lawyers would not hear of it. Every inch of the ground, they
declared, must be fought. They were a most able firm, and, realising
that I was an advertisement such as they could never hope for
again, they nursed the case—which in the first place was strong and
healthy enough to have satisfied any lawyers—with tender solicitude.
I said that I had mentioned the fact to Mr. Gascoyne, as he then
was, and that he might have told his wife. I asked if this would be
accepted in evidence. They scouted the idea, however, of its being
used, so I forbore to press the question further. The chances that Mr.
Gascoyne had told his wife were extremely remote.
Having tracked me to the hotel at Lowhaven, the police were
somewhat at a loss. They utterly failed to establish the fact that I
had any poison in my possession at that time. They then threw
themselves with ardour into the details of Ughtred Gascoyne’s death.
Here, again, although it was possible to show that I was not
infrequently at his flat late at night, their most strenuous efforts
could not prove that I was there on the night on which the fire had
taken place.
I was sure that suspicion about this began to creep into my wife’s
mind. Perhaps she had learned that the Parsons were fictitious
individuals. It may also have struck her that I must have passed the
road where her brother was found dead, earlier on the same
evening. These two facts, taken together with my being in the same
hotel with young Gascoyne when he died, and as much evidence as
could be raked up against me in connection with Ughtred Gascoyne’s
death, must have forged a chain of implication which could not but
shake the most serene confidence. Not that I had the least fear of
her acting in a hostile manner. She could not have done anything
had she wished to; besides, she belonged to that class of woman
who, possessing most of the virtues, would never drag her
husband’s name in the dust. Her conscience might—had she been
questioned—have triumphed, but that she would speak out of her
own free will I did not believe.
As the day of the trial drew nearer and nearer without any new
charge my confidence rose. I suppose this optimism lies at the back
of every prisoner’s mind. The possibility of an acquittal probably
never disappears till the foreman of the jury delivers the terrible
word guilty, a word which has a leaden sound complementary to the
deadliness of its meaning.
My wife came to see me the day before the trial, and though she
strove hard against the awful horror that I could see was in her
mind, the strain was at last telling on her. She was taken away in a
dead faint. I was sorry for her. I knew it was the last thing she would
have wished should happen. My own danger had driven all three
women out of my mind, and it was a psychological point which
interested me extremely. I had loved them so fervently; and I could
love fervently, even if not on the highest level. My own position,
however, was so enormously important in my eyes that they were
quite dwarfed. I could not rouse myself to any degree of emotion
over their sufferings. It was not the idea of losing them that
predominated in my mind, nor the idea of dwelling in their memory
as a thing for pity, the victim of a terrible and gloomy death.
I regret to say that my departure for London, considered as a
spectacle, was a failure.
I left the county prison in an ordinary carriage, and was put into
a special train which drew up at a crossing in the depths of the
country. I remember as I passed from the carriage to the railway-
train casting my eye over a mellow, moonlit landscape, and
wondering where I should be when they cut the corn. To one of my
temperament it was a beautiful world I was perhaps leaving, and it
was a dismal reflection that I might not share in the next year’s
harvest of pleasant things.
The train reached London at an early hour of the morning, and
such perfect arrangements had been made that the few porters
about hardly realised who it was who was hurried into a private
carriage and driven off.
Passing through the streets as dawn was breaking, I could see on
the advertisement boards outside small newspaper shops the soiled
posters of the evening papers. They bore large headlines with: “Trial
of Lord Gascoyne,” “Latest Arrangements,” etc., etc. There was not a
paper which had not displayed it more prominently than any other
item of news. This was gratifying. The carriage drew up at the peers’
entrance to the House of Lords, for such was my privilege, and in a
few minutes I had full assurance that I was receiving the hospitality
of gentlemen. I was ushered into two rooms which had been set
apart for me, and in one of which was laid a comfortable and
substantial breakfast. To this I did full justice. Arrangements had
been so made that I was practically alone in the room, although, of
course, I was being very carefully watched. It was exceedingly
comforting to feel that if they were going to hang me, they were
going to do it with tact and breeding.
Parliament being in session, my trial would not take place before
the Court of the Lord High Steward. I was glad, for that would have
been comparatively a very small affair.
It may be as well to state that the House of Lords is a Court of
Justice, of which all Peers of Parliament are judges, and the Lord
High Steward the President. It differs from an ordinary court of law,
inasmuch as all the peers taking part in the trial are judges both of
the law and of the facts.
At a very early hour I could hear a great deal of bustling and
passing to and fro. I lay down on my bed, however, and had a most
refreshing sleep. On awaking I was told that my lawyers wished to
see me.
I had an interview with them lasting about an hour. They were
both mightily important and very excited. The atmosphere of the
place had evidently given them the idea that they were historical
individuals, and I fancy that they looked upon me as if I had been
accused of High Treason, and, in fact, treated me as quite a great
personage.
So intense had been the excitement aroused, and so general was
the interest displayed, that it had been decided to hold the trial in
the roomier accommodation of Westminster Hall. I knew from what
my counsel had told me that the peers had begun to assemble at
ten o’clock. It was fully eleven, however, before I was summoned.
Although I was guarded to a certain extent by the usual officers
of the law, I was nominally in charge of the yeoman usher of the
Black Rod, and in his custody I was brought to the Bar.
Just before I entered a note was put into my hands which I was
allowed to read. It was from Esther Lane, and ran:

“Love is always difficult to bear, because of its madness,

which overthrows, and its vision, which distorts. Pleasant we
deem the kisses of men, though they sting, but the stings of
suffering are the kisses of God, and they burn like fire.”

Womanlike, though she was thinking of me, she was thinking

somewhat more of herself.
It was a brilliant scene which I emerged upon, though perhaps
somewhat lacking in the magnificence that would have attended it
had it taken place a century earlier.
The Lord High Steward, as President, was seated in front of a
throne, and on either side of him were the peers, in their robes, and
wearing their orders. In front of the President was a raised daïs, on
which was placed an armchair, and by the side of which was a table.
Near this daïs were tables at which were seated my counsel and
other legal advisers. There was a gallery at one side, in which were
seated the peeresses, and another gallery at the other side, in which
were a number of Ambassadors, foreign royalties and noblemen,
semi-resident in England. The difference between such a trial
conducted amid a feast of colour and variety from what it must have
been had it been conducted at the Old Bailey with its gloom and
almost squalid lack of breadth was startling to think upon.
I had thoroughly studied the effect of my entrance. I knew that
the scarlet of my peer’s robes formed an absolute tone contrast to
my Jewish appearance, and I was conscious of making a marked
effect on the women present.
As an artist, I had suffered grievously in my own estimation by
the blunders I had made in removing Lord Gascoyne, and I was
determined that henceforward, whatever happened, I would not do
anything which could mar the beauty and interest of the situation.
I waited at the foot of the daïs while Norroy, King-at-Arms, called
‘Oyez, Oyez.’ The letters patent constituting a Lord High Steward
were then read.
Norroy, and the Gentleman Usher of the Black Rod, then did their
reverences kneeling, and presented the White Staff jointly to the
Lord High Steward, who, receiving it, immediately delivered it to the
Gentleman Usher of the Black Rod on his right hand. The Purse-
Bearer, holding the purse, was on his left.
All these officials in their archaic costumes produced a most
picturesque effect. The composition was seen in a sort of half-light,
mellowing its garishness and the primary tones of official uniform.
Through the windows, which had been veiled to keep out the glare
of a brilliant summer sun, a golden light fell here and there, just
sufficient to edge the scene with a gilded splendour.
The writ of certiorari for removing the indictment before the King
in Parliament was then read. I will not reproduce this legal
document, but it is sufficient to say that it charged me with the sole
offence of poisoning Lord Gascoyne. I already saw in the faces of
those around me that they believed what the press had daily
insinuated, viz., that I was a wholesale murderer. Herein lay a great
peculiarity and paradox of justice. It would not have been
permissible to even hint in a court of law that there was a breath of
suspicion attached to me in regard to the deaths of the other
Gascoynes; it struck me, however, that it would have been excellent
proof as to my innocence had it been argued that so clever a
criminal as the alleged murderer of these others had been, would
never have blundered so grossly over the murder of Lord Gascoyne.
As I stood and listened to these preliminaries I was being
scrutinised by everyone in the Hall. The Lords were freed from the
discomfort of trying one who had been born and bred among them.
There were no recollections of Eton and Oxford to spoil the abstract
drama of the occasion. I was to the great majority a stranger, and to
the rest a mere acquaintance. Of course, I was connected with some
of those present, but in so distant a degree that it hardly amounted
to anything, and for all practical purposes I stood there a stranger.
This must undoubtedly have been a relief to them, as curiosity could
be given full play.
The clerk of the Parliaments then directed the Sergeant-at-Arms
to make proclamation for Black Rod to bring his prisoner within the
Bar.
I was led to the chair on the daïs which was technically
considered within the Bar. The daïs had been provided so that I
might have, as was only fair, a commanding position, and see and
hear all that was going on. I remembered to have seen an old print
of Charles I. being tried, and the recollection of it came back to me
very vividly, except that in place of the motley crew of fanatics and
bullies who constituted themselves his judges I had an assembly of
gentlemen, reinforced by English judges, and in place of Bawling
Bradshaw, I had a Lord Chancellor who was one of the most
cultured men of his day.
Having arrived on the daïs, I did due reverence to the court with
all the dignity imaginable. I fancy the impression was good, and
must at any rate have convinced the peers present, that even if I
were unknown to them they had not been summoned to try a
vulgarian under the most select form known to English law.
The Clerk of the Parliaments then again read the indictment and
asked:
“How say you, my lord, are you guilty of the felony whereof you
stand indicted or are you not guilty?”
I pleaded not guilty, and the trial proceeded.
I have come to the conclusion that the case was a curiously
simple one, although it entirely depended on circumstantial
evidence. The principal witnesses were the chemist, and the two
servants. It was a descent from the sublime to the ridiculous when
these humble folk stepped into the box, and I shall never forget—by
the way, under the circumstances not a prolonged limit of memory—
the bewhiskered and perspiring little chemist gazing round on the
august assemblage before which he was appearing, evidently not at
all certain that he might not be ordered out to instant execution. I
almost thought that he would become delirious and be unable to
give his evidence, but he pulled himself together, and by the time he
left the box was evidently under the impression that he was one of
us. Indeed, he replied in quite a chatty way to the Lord High
Steward when asked a question by that exalted functionary.
The opening of the prosecution struck me as being vindictive, but
it is possible that the prisoner is not a good judge of such a point.
It was lunch-time before the preliminary law questions had been
disposed of and the opening speech of the prosecution made. I was
led out by a side door before anyone else moved. When I returned
the court was already assembled. The remainder of the day was
spent in examining the witnesses. There could be no doubt that I
had bought arsenic, for I was recognised by both the chemist and
his assistant. Not till I heard the story unfolded in court did I realise
how very crudely I had acted. The examination of the witnesses was
proceeding when the court rose. I spent the evening looking out on
the river with some very melancholy reflections on the advantages of
liberty. The dark barges, looking like gigantic pachyderms, floated
silently past, with their solitary lights shining dimly. The river
reflected the city lights in innumerable little splashes of flame, which
danced and glimmered with the restless waters. On the far bank I
could see figures passing to and fro. In the solitary fastness of a
gaol it had been easy to realise the fact of being a prisoner, but in a
room which bore no resemblance in any way to a cell, it was
exceedingly difficult. Besides, there was the open door, and I almost
forgot the watchers in the passage. The windows had been barred
temporarily. Otherwise there was an air of comfort, even of luxury,
about the room.
I received a long letter from my wife which did extraordinary
credit to her sense of justice and her self-control. It was written as if
with the utmost belief in my innocence, and evidently she had
striven to keep her mind in such an attitude. I answered her at once,
not abating any apparent affection, and saying that between us two
it was unnecessary to reiterate my innocence, as I knew her trust in
me to be absolute.
Towards the end of the letter I worked myself into quite a fervour
of sublime confidence that no injustice would be done, and that an
unseen Providence was watching over me.
Then I read Lord Beaconsfield’s Vivian Grey till I went to bed. I
slept well, all things considered. I hoped to sleep better when the
verdict was given, whichever way the case might be decided.
The next morning I awoke early, and as the law took so little
account of individual psychology as to imagine that I might cut my
throat, I was obliged to send out for a barber.
The youth who performed the operation was a pleasant young
man, whose excitement was so painful that I warned him it was
High Treason to cut the throat of a peer of the realm when he was
being tried for his life.
I asked him what his own opinion was as to my guilt.
The question took him so entirely by surprise that he sprang
away from me fully a yard.
“Come,” I said. “What do people say?”
He flushed and was silent.
“So people think I am guilty, do they?”
“Some do, your grace.”
“That means that most do. Now, does anyone believe in my
innocence?”
“Oh yes, my lord, of course, some.”
“I see; very few people believe in my innocence. Who are those
that do?”
He smiled. “I think the women do, my lord.”
This was satisfactory. I could not have had more practical
support.
He told me further that there was a vast crowd outside in
Westminster Yard.
I advised him to make his way at once to a newspaper office,
and sell them a description of his interview with me. I warned him,
however, that he must exaggerate if he wished to be believed, and I
gave him full permission to invent any details of the occurrence
which he might think useful.
The Hall was perhaps even more crowded than it had been the
day before. This showed a proper increase of interest.
The cross-examinations were masterly, especially when it was
considered how simple the evidence of the bare half-dozen
witnesses was.
My counsel managed to throw doubt on the fact of my having
been the man who bought the poison. This doubt, it is true, counsel
for the prosecution soon swept aside, but I could not help admiring
the dexterity with which my counsel threw a veil of uncertainty over
what, when stated by the prosecution, had seemed facts beyond
dispute.
The contention of the prosecution was very simple. It was to
nobody’s interest but mine and Mr. Gascoyne’s that Lord Gascoyne
should die, and whilst Mr. Gascoyne was in London, the prisoner was
constantly in Lord Gascoyne’s company. Further, it was pointed out
that I was the only person left alone with the bottle of claret, and
that the moment I was so left alone was the only one during which
the wine could have been poisoned. I was further proved to have
been in possession of arsenic for which I could not account. It had
been suggested that the poison might have been in the cup of tea
which Lord Gascoyne had drunk, but there was nothing to support
this view. It was regrettable that this cup had been removed, and
washed before it had been examined. Lord Gascoyne, however, was
taken ill almost immediately after he had drunk the tea. This made
the insinuation that it was poisoned unlikely, as arsenic had, as far
as could be proved, never acted instantaneously. My counsel, in the
course of his address, made an earnest appeal that everything alien
to the case which had been circulated, he could only say in a most
scandalous manner, in certain organs of the press, should be put out
of mind. He insinuated that in this respect he felt a greater
confidence in their lordships than he would have done in an ordinary
jury.
He concluded by the usual passionate appeal for the benefit of
any doubt which might linger in their minds.
The Lord High Steward summed up the evidence, and a very
brief summing-up it was. Then their lordships retired, and after three
hours’ deliberation I was brought back into court.
I knew directly I returned what the verdict was, for in all faces
there was the same look of intense gravity. Over the entire assembly
there lay an almost oppressive silence. I noticed that people avoided
looking at me, as if it were an intrusion to witness the emotions of
any human being at such a moment.
After the verdict was given there passed across the whole place a
sort of sigh, followed by a terrible hush.
I stood up and heard the sentence, and then, with the most
profound reverence to the entire court, withdrew, satisfied that I
could not be accused of having behaved otherwise than with a
calmness and dignity befitting the privilege of belonging to such an
assembly.
Chapter XXX
I suppose the feelings of a human being awaiting extinction on a
near date fixed by the law must vary according to temperament. In
this, as in most things, ignorance has its advantages. A chaplain
working on a mind incapable of the intellectual effort of scepticism
might send a criminal to the scaffold with a distinct feeling that in
spite of its other disadvantages, murder plus hanging plus
repentance was a short cut to eternal bliss—a view of the question
which would no doubt shock the reverend gentleman who had
inadvertently been a most effective advocate of murder.
Capital punishment is, of course, a profoundly unphilosophical
thing. Only a very ill-informed person would uphold it as a deterrent,
and if not a deterrent its only excuse is the selfish one of putting
someone out of the way whom it cannot control without expense
and trouble. This principle, however, is a very awkward one, and
would, stated in its crudest form, astonish some people who
mechanically support it.
As soon as I was back—I cannot say comfortably back—in prison,
and in the condemned cell, I made up my mind to concentrate
myself on a human document which should be a record of my career
—a document to be written with as little display of feeling as
possible, a statement of facts with well-bred calm and restraint.
I knew, of course, that it must be incomplete. No one has ever
told the truth about himself. I, for one, dislike the yawning gaps in
the confessions of Rousseau. Either a man’s confessions should have
something in them which Rousseau’s have not, or they are not very
much worth confessing. A few obvious sexual trivialities are not of
very great interest when all human beings guess what has been kept
back. Dr. Johnson, when told that the unfortunate Dr. Dodd was
devoting his last days to literary work, said: ‘Depend upon it, when a
man knows he is going to be hanged in a few days, it concentrates
his mind wonderfully.’ I found this to be true. The learned doctor’s
point is subtle, and he no doubt was surprised that the concentration
was not entirely on that unpleasant event daily coming nearer. Such
was my difficulty. I had my human document to finish before a
certain date, and that date interfered very largely with my
concentration of mind. It had a way of dancing on to the page while
I was writing, and of floating, detached and apparent, before my
eyes in the growing dusk.
My life began to grow more and more ghostly. My nerves
suffered considerably, although I endeavoured as far as possible to
conceal the fact from the two sordid figures who kept watch over
me. I could not help thinking of what a torture this fortnight or three
weeks would have been to anyone afflicted with a terror of death.
Personally, I felt the situation more as an offence against good taste
than as an offence against humanity. Let anyone reflect what it must
mean to be watched morning, noon, and night till the end comes,
never to have one moment for solitary reflection or sorrow, not to be
able to render to the soul the relief of despairing abandonment; to
have the slightest weakness witnessed by careful official eyes,
staring with a weird fascination through the long day which is all too
short; to feel, in addition, the horror of being caged and held like a
wild beast in a trap till the time comes to be led out to die. As I say,
I am a singular character, and these things were rather an irritation
than an agony. But I wonder that it does not drive the ordinary
criminal mad. The man who has slain his wife in a moment of insane
jealousy—which is, after all, viewed logically, an evidence of his love,
a quality which might still have been turned to good account—is
tortured and killed. It is a proceeding which reason condemns as
mere barbaric vengeance. Not, as I was saying, that I suffered these
horrors. My view of life was too objective for that. True, I had been
given a body with which to express myself, and I had done my best
for that body, but when that body was condemned to extinction I
was able, as it were, to remove myself from it, and view men and
their ways from a distance.
The chaplain called on me, sometimes three times a day, and I
enjoyed his conversation very much. I led him from the crude
vulgarities of attempted conversion to discussions on minute
questions of Christian culture. I also dissected my sensations for his
benefit. I told him that the reality that the end was so near now and
then flashed upon me like an electric shock, and that this sensation
was exceedingly uncomfortable, which he said he could well believe.
I was not, I told him, afflicted with any very great terror of the mere
function itself. This he thought extraordinary, as I was an agnostic. I
told him that I thought it highly probable there was a hereafter, but
that it was quite possible that it might be so different from anything
we could imagine as to confuse our view of ethics, and that I might
awake to find myself greeted as a saint. He was a little shocked, and
took the joke as an admission of guilt, a point in which I was obliged
to correct him.
I think he was surprised when I involved him in a long discussion
on the moral aspect of capital punishment. Perhaps he went away
and said I was callous. This is the orthodox designation of a man
who has strength of mind or courage enough to meet a humanly-
devised punishment with indifference. The same quality used in a
different field will earn a reputation for valour. The dear chaplain was
true to his cloth, and evidently viewed the crime of an English peer
with something more of indulgence than he would have felt for the
guilt of a member of the lower classes. Indeed, his reiterations of
‘my lord’ in his religious discussions were so constant as to confuse
me with regard to the particular individual he was addressing.
I received a letter from Esther Lane in cryptic language which I
could not understand at the time, but which was to be fully revealed
afterwards.
I do not care to dwell upon the farewell interviews with my wife.
They were curiously and unexpectedly unpleasant. The Dowager
Lady Gascoyne—I allude, of course, to the widow of my benefactor
—who, strangely enough, had never had the least doubt of my
innocence, also came to see me. I think that in a sense the farewell
that cost me most was that from Grahame Hallward, the unobtrusive
and consistent friend. I do not think that the hopeless agony in his
face could have been more terrible had he been related to me by the
nearest of blood ties. He assured me that he would devote the rest
of his life to proving my innocence. Thus is the tragic often
unconsciously allied to the ridiculous.
My mind was fully occupied. The chaplain’s visits and those of
people who wished to say farewell, in addition to a great deal of
time spent with my lawyer, with whom I had to make many
arrangements, took up all the spare moments I did not devote to
these memoirs. I should have liked to know whether my child was a
boy, although in either case it would make no difference to the
succession.
I was astonished to learn that there had been an extraordinary
revulsion of feeling in my favour. I thought that the facts were really
too plain to admit of an outburst of sentimentalism. I suppose the
idea of a peer dying a sordid death shocked the British public as
much as the idea of slaying a woman gently born had done some
short time before. Hanging was good enough for the ignorant and
poverty-stricken. The snobbery of the public is easier appealed to
than its humanity.
The usual petition which my lawyer had prepared was signed by
all sorts of unexpected people, even by some of those who had
voted for my guilt.
The Home Secretary could not, however, find any loophole for
interfering, and the Governor informed me of the date fixed, in a
curious phraseology which was no doubt meant to modify facts.
I was getting a little feverish, as was only natural. I found it
necessary to use some effort to brace myself up for the final ordeal.
Thoughts of Sibella haunted me, and played upon my memory like
the love motive on the lover’s brain in Berlioz’s Scarlet Symphony.
She was the allure beckoning my thoughts back to life, and it was a
strange confirmation of what I had always felt—viz., that she was my
strongest human magnet. I had not heard from her since the day of
my arrest, but two days before the end I received a letter. It gave
me infinite pleasure, and I knew it was the one thing I had been
waiting for. She did not know, she wrote, how she had managed in
her agony to conceal the truth from Lionel, but so far he had
suspected nothing; indeed, he was working night and day for me.
I became quite sentimental over this letter. My thoughts
wandered back to the schoolroom in the Hallwards’ house on
Clapham Common. I saw Sibella as a little school-girl with a host of
boy admirers. I remembered her as she was that afternoon we came
home from football and all had tea together. I remembered the
kisses, beautiful and perfumed as roses, which we had exchanged as
children, and I remembered the burning kiss, unexpected by both of
us, exchanged that Sunday evening when Grahame left us alone.
These things returned to me with the dull pain of melodies,
associated with wild moments of joy, heard again in moments of
desolation, phantoms of music wailing past in the haunted air.
Apart from the ineradicable desire to live, which is the chief vice
of human beings, I was not very anxious for my friends to obtain a
reprieve. In default of an absolute pardon, my reason taught me
that it would be better for them to fail. I did not relish the idea of
wearing out my life in chains. Thus, when the eve of the fatal day
arrived, I experienced a certain relief.
I retired to rest with an indifference which I saw impressed the
only audience I had left. I slept peacefully for several hours, but
towards morning I experienced a curious sensation of semi-
giddiness, as if I were being rocked in mid-air. The sensation grew
more and more rapid, till, suddenly, it seemed as if I were hurtling
through space at a terrific speed, as if worlds, stars, and atmosphere
were revolving round me at a rate indescribable to human
intelligence.
It was as if I were in the engine-room of the universe, and as if
the ceaseless terror of its secrets whirled me hither and thither, like
a grain of sand. I was in the unlimited, unable to grasp time or
space. Then, by degrees, there came a calm; I lay still: and, almost
unconscious of having passed out of the sleeping state, I was
awake, with my eyes fixed on the Governor.
The cell was warm with sunlight, and it struck me at the time
that this was most unsuitable. As, half awake, I looked at the
Governor, a somewhat humorous idea struck me. I thought I was
late for the ceremony, and that he had come to bid me make haste.
I sprang up with a start, and I may have turned a little pale. It was
excusable, I think. I then saw that the room was full of people, and
not the people whom I had expected to see. The Governor seized
my hand, and Grahame Hallward sprang forward and grasped the
other.
“Lord Gascoyne, your innocence has been established beyond
question. The real culprit has confessed.”
It sounded like a speech out of a melodrama. Luckily, I retained
my self-possession sufficiently to say something expressive of my
thanks to Providence. I think it met the occasion.
Who the real culprit could be I failed to understand.
“I have given instructions,” said the Governor, “for you to be
taken to a comfortable room till the actual order for your release
arrives.”
Then I recollected my manuscript on the table. No one had seen
it but myself, but if it were noticed it would be awkward.
It was a terrible moment. I expected the Governor as I picked it
up to say: “Anything written in a prison becomes the property of the
Crown,” but I was allowed to walk off with it.
Escorted by a congratulatory group, I was taken to a room which
was quite luxurious. Grahame Hallward and myself breakfasted
together.
Then he told me all about it.
“You remember the governess at Hammerton Castle?” he asked.
I nodded.
“Well, it is very sad for Lady Gascoyne, but it appears that Lord
Gascoyne had made love to her, that she was about to become a
mother, and that she poisoned his tea that evening as she had
already poisoned the wine. The servants remember now that she
had been in the dining-room. She intended at the time to kill herself
as well, but she had not the courage. Last night, however, she did
so, having written to your wife and to the Home Secretary, your
lawyer, and others, so as to make sure of the news arriving in time.”
I looked at him, striving to hide the sheer horror which I felt for
the first time in my life.
I was not surprised at the sacrifice, for it was the sort of gigantic
thing that a nature like Esther’s would have conceived and carried
out. Nevertheless, the news filled me with a profound gloom.
It was better, however, to be sitting there finishing my coffee and
smoking a cigarette than meandering out on to the unknown.
“Sibella has been awfully ill, Israel.”
“Did people think me guilty?” I asked.
He avoided my question, and said:
“The revulsion of feeling has been tremendous. Everybody will be
delighted.”
And so it turned out. People had not at all liked the idea of a real,
live lord becoming an unreal, dead lord by such means. The Home
Secretary sent the order for my release the same afternoon. The
dead Lord Gascoyne became a monster of iniquity, and I was
congratulated by everyone on the dénouement.
But to this day, there is a sadness in my wife’s manner, and
although she tries to hide a shuddering aversion for me when we are
alone, it shows itself unexpectedly in trifles. In some way she has
grasped the truth. Indeed, she must have done, for there can be no
other explanation of her conduct. We have two children, and
perhaps there is something pathetic in the amount of moral training
she gives them. I am sure there is no need for Hammerton to turn
out other than well. I have done the work. He has only to reap the
benefit and the reward. The second boy is a gentle little creature,
Oriental in his nature, and most devoted to his father, as they both
are, but the second boy especially so.
Sibella is still—Sibella.

The End
Transcriber’s Note
This transcription follows the text of the Chatto & Windus edition
published in 1907. Three unambiguous misspellings have been
corrected (namely, “Halward,” “memorist,” and “possiblity”), but any
other seeming errors have been left unchanged.
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