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�..
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'# CENGAGE.
�-'# CENGAGE
•- Learning·
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2 Customer Behavior 13
3 Segmentation 32
4 Targeting 51
5 Positioning 63
7 Brands 91
Part 5 Capstone
16 Marketing Strategy 275
Endnotes 312
Index 316
iii
Preface x
2 Customer Behavior 13
3 Segmentation 32
iv
Contents
4 Targeting 51
5 Positioning 63
7 Brands 91
7-1 What Is a Brand? 91
7-1 a Brand Name 92
7-1 b Logos and Color 92
7-2 Why Brand? 93
7-3 What Are Brand Associations? 95
7-3a Brand Personalities 91
7-3b Brand Communities 98
\
Contents
9 Pricing 131
14 Customer Satisfaction
and Customer Relationships 239
Part 4 Capstone
Endnotes 312
Index 316
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There are several really good marketing management texts, yet this text was created because
the Cengage sales force recognized an opportunity. Existing texts present numerous lists of
factors to consider in a marketing decision but offer little guidance on how the factors, lists
and multiple decisions all fit together.
In this book, an overarching Marketing Framework, used in every chapter, shows how
all the pieces fit together. So, for example, when facing a decision about pricing, readers
must consider how pricing will impact a strategic element like positioning or a customer
reaction like loyalty and word of mouth. This book is practical, no-nonsense, and relatively
short, to further heighten its utility. Everyone is busy these days, so it's refreshing when a
writer gets to the point. After this relatively quick read, MBAs and EMBAs should be able
to speak sensibly about marketing issues and contribute to their organizations.
Key Features
Each chapter opens with a managerial checklist of questions that MBA and EMBA stu
dents will be able to answer after reading the chapter. Throughout each chapter, boxes
present brief illustrations of concepts in action in the real world or elaborations on concepts
raised in the text, also drawing examples from the real business world. Chapters close with
a Managerial Recap that highlights the main points of the chapter and reviews the opening
checklist of questions. Chapters are also summarized in outline form, including the key
terms introduced throughout the chapter. There are discussion questions to ponder, as well
as video resources to serve as points for still further discussion. Each chapter contains a
Mini-Case that succinctly illustrates key concepts.
MindTap
The 5th edition of Marketing Management offers two exciting alternative teaching for
mats. Instructors can choose between either a hybrid print and digital offering or a version
that provides completely integrated online delivery through a platform called MindTap.
MindTap is a fully online, highly personalized learning experience built upon authoritative
x
Preface
Instructor Resources
Web resources for the book at www.cengagebrain.com provide the latest information in
marketing management. The Instructor's Manual, Test Bank authored in Cognero, and
PowerPoint slides can be found there.
Acknowledgments
Cengage Learning's people are the best! Special thanks to John Sarantakis (Content
Developer), Mike Roche (Senior Product Manager), Heather Mooney (Product Manager)
Jenny Ziegler (Senior Content Project Manager), Diane Garrity (Intellectual Property An
alyst), Sarah Shainwald (Intellectual Property Project Manager) Laura Cheu (Copyeditor),
Ezhilsolai Periasamy (Project Manager), Manjula Devi Subramanian (Text Researcher),
Abdul Khader (Image Reasearcher), and Pushpa V. Giri (Proofreader).
As always, special thanks to the Cengage sales force. I will forever be grateful for your
notes of encouragement as we began this project. I hope you like Marketing Management 5.
DAWN IA(0 BU ((I is the Ingram Professor of Marketing at the Owen
Graduate School of Management, Vanderbilt University (since 2007). She has
been Senior Associate Dean at Vanderbilt (2008-2010), and a professor of marketing
at Kellogg (Northwestern University, 1987-2004), Arizona (2001-2002), and Wharton
(Pennsylvania, 2004 to 2007). She received her M.S. in Statistics, and M.A. and Ph.D.
in Oliantitative Psychology from the University of Illinois at Urbana-Champaign. Her
research focuses on modeling social networks and geeky high-dimensional analyses. She
has published in Journal of Marketing, journal of Marketing Research, Harvard Business
Review, Journal of Consumer Psychology, International journal of Research in Marketing,
Marketing Science,]ournal ofService Research, Psychometrika, Psychological Bulletin, and Social
Networks. Iacobucci teaches Marketing Management and Marketing Models to Executives,
MBA and undergraduate students and multivariate statistics and methodological topics to
Ph.D. students. She has been editor of both Journal of Consumer Research and journal of
Consumer Psychology. She edited Kellogg on Marketing, she is author of Mediation Analysis,
and co-author on Gilbert Churchill's leading text, Marketing Research.
xii
WHY I S M A R KET I NG 1
M A NAG E MENT I MPO RTANT?
Managerial Checklist
• What are the three phases of the buying process?
•What kinds of purchases are there?
• How do consumers make purchase decisions-and how can marketers use this information?
1 - 1 DEFINING MARKETING
Ask the average person, "What is marketing?" and they might say:
• "Marketing is sales and advertising."
• "Marketers make people buy stuff they don't need and can't afford."
• "Marketers are the people who call you while you're trying to eat dinner."
Unfortunately those comments are probably all deserved. The marketing profession, like
any other, has its issues. But in this book we'll take a more enlightened view.
This chapter begins with an overview of marketing concepts and terms. We' ll see the
importance of marketing in today's.corporation. We'll then present the Marketing Frame
work that structures the book and gives you a systematic way to think about marketing, and
we'll define all the terms in the framework: 5Cs, STP, and 4Ps.
Ideally, this can be a nice, symbiotic relationship. Customers don't mind paying for their
purchases-and sometimes they pay a lot-if they really want what they're about to buy.
Companies like taking in profits, of course, but great companies really do care about their
customers. If we're lucky, the exchange depicted in Figure 1.1 is an ongoing exchange be-
tween the customer and the company, strengthening the tie
between them.
As a lifelong customer, you are already somewhat famil
iar with marketing from the consumer side. But on the job,
Marketing oversees the you'll need to understand marketing from the firm's point
customer-brand exchange. of view. Throughout this book, you'll see both perspectives.
In particular, you'll see all the issues that marketers deal
with as they try to deliver something of value to their cus
'
tomers, while trying to derive value from them.
Figure 1.1
Marketing is
an Exchange
II
No cloud is on the heavens, and on the sea
No sail: the immortal, solemn ocean lies
Unbroken sapphire to the walling skies—
Immutable, supreme in majesty.
The billows, where the charging foam leaps free,
Burden the winds with thunder. Soul, arise!
For ghostly trumpet-blasts and battle-cries
Across the tumult wake the Past for thee.
III
How very still this odorous, dim space
Amid the pines! the light is reverent,
Pausing as one who stands with meek intent
On thresholds of an everlasting place.
A single iris waits in weary grace—
Her countenance before the dawning bent,
As Faith might linger, husht and innocent,
With all an altar’s glory on her face.
A presence half-divine
Stands at the threshold, ready to depart
Without a sign.
Now seems the world’s deep heart
About to break. What sorrow stirs in mine?
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