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preface

Marketing in Asia, Second Edition utilizes a unique, innovative, and effective


pedagogical approach developed by the authors through the integration of
their combined classroom, college, and university experiences. The elements
of this approach have been the foundation for each edition of Marketing (the
original U.S. text) and Marketing in Asia. These elements serve as the core of
the text and its supplements as they evolve and adapt to changes in student
learning styles, the growth of the marketing discipline, and the development
of new instructional technologies. The distinctive features of the approach
are illustrated below:

Rigorous Framework
A pedagogy based on the
use of Learning Objectives,
Learning Reviews, Learning
Objectives Reviews,
and supportive student
supplements.

High Engagement Style


Easy-to-read, highinvolvement, interactive
writing style that engages
students through active
learning techniques.

Marketing
in Asia, 2e
Traditional and
Contemporary Coverage
Comprehensive and
integrated coverage
of traditional and
contemporary concepts.

Personalized Marketing
A vivid and accurate
description of businesses,
marketing professionals,
and entrepreneursthrough
cases, exercises, and
testimonialsthat allows
students to personalize
marketing and identify
possible career interests.

Pedagogical
Approach
Marketing Decision Making
The use of extended
examples, cases, and videos
involving people making
marketing decisions.
Integrated Technology
The use of powerful
technical resources such
as QR codes.

The goal of Marketing in Asia, Second Edition is to create an exceptional


experience for todays students and instructors of marketing. Its development
was based on a rigorous process of assessment, and the outcome of the
process is a text and package of learning tools that are based on experience,
leadership, and innovation in marketing education.

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experience
The author team brings extraordinary experience to the development
of their text. For example, they have benefited from the feedback
of many users of the first edition of Marketing in Asiaa group that
now exceeds more than one million students! In addition, the authors
are experienced instructors who, in their combined careers, have
taught more than 50,000 students using many teaching styles, tools,
and technologies. Finally, as researchers and consultants, the authors
have worked with many of the worlds leading companies.

Social Media Marketing in Chapter 19: Extensive


Coverage of the Newest Marketing Environment
This edition features a dedicated chapter on social media marketing.
This new environment is rapidly changing and constantly growing.
The authors cover the building blocks of social media marketing and
provide thorough, relevant content to your students. They discuss
major social media platforms like Twitter, Facebook, LinkedIn, and
YouTube. They explain how they do marketing and how companies
can use those outlets for marketing purposes. Also discussed in
Chapter 19 are methods of measuring a companys success with
social media marketing. This new chapter represents the authors
commitment to keeping your students informed and on the cutting
edge of marketing.

19
LearNiNG
OBJectiVeS

After reading this chapter


you should be able to:
LO1

LO2

LO3

LO4

LO5

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Define social media


and describe how they
differ from traditional
advertising media.
Identify the four major
social networks and
how brand managers
integrate them into
their organizations
marketing actions.
Describe the differing
roles of those receiving
messages through
traditional media versus
social media and the
factors brand managers
use to select a social
network.
Explain how social
media can produce
sales revenues for a
brand and compare the
performance measures
linked to inputs or
costs versus outputs or
revenues.
Describe how the
convergence of the
real and digital worlds
affects the future of
social media.

Using Social Media


to Connect with
Consumers
cONNectiNGWithtODaYStOUriStSUSiNG
SOciaLMeDia
Korea has designated 2010 to 2012 as the Visit Korea Years. To
reach out to todays tourists, the Korean Tourism Organization (KTO)
engaged media agency CNBC Asia which brought in Techsailor
Groupan online social media specialistto conceptualize a social
media marketing campaign.
A KTO Facebook Fan Page was created and it provides news
about events and happenings in Korea and features various attractions
in Korea. Techsailor Group also created a microsite for KTO which is
linked to the Facebook Fan Page, Twitter, Ameba, and YouTube to
attract new users to the site, and to promote conversation among the
tourist community.1 CNBC Asia produced a television commercial about
Korea that was screened in the United States and some countries in
Asia. The commercialtitled Koreas Worth the Tripcan be seen on
YouTube at http://www.youtube.com/watch?v=pxbHLXnHj5k. This social
media campaign consisted of a viral component aimed at encouraging
individuals to invite their friends to join the online community.
The main highlights of this social media campaign included a oneday Korea dream itinerary contest, postcard writing and sending activity, and a Twitter contest titled Tell Us Why Korea is Worth the Trip.2
Almost all social media campaigns involved bloggers, and this was
no exception. Nine foreign bloggersincluding Charlie Brummit
learnt the basics of samulnori (traditional Korean percussion music)
in Gwanghwamun Hall, northern Seoul, as part of a city tour organized by KTO.3 The KTO organized the tour called Real Touch Korea,
Season 1Seoul for 24 expatriate bloggers living in Korea who write
about Korea in English, Japanese, or Chinese. Besides the samulnori
session, the bloggers ate ssam (foods wrapped in lettuce) and walked
around Bukchon Hanok Village near Gyeogbok Palace. The campaign
was considered a huge success given the level of reach and engagements of the global audiences.
Techsailor Group also partnered CNN Turner Broadcasting Sales
Southeast Asia Inc. in the Visit Sri Lanka 2011 campaign. An online
communityhttp://visitsrilanka-2011.comwas created and it drove a
social media presence on Facebook.com and Twitter.com, leveraging
and enhancing Sri Lankas pre-existing online media presence in Flickr
and YouTube. This social media campaign aimed to position Sri Lanka
as an untouched and exotic must-go destination for global travelers
and to educate the audience of Sri Lankas rich culture and history
and the numerous activities which could cater to different breeds of
travelers.4

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case16 SMMallofasia:One-StopFamilyShoppingandentertainment

In the early 1990s, SM Investments Corporation, the


parent company of SM Prime (which is in the shopping
mall development and management business), joined a
consortium to reclaim 100 hectares of land along scenic
Manila Bay in Pasay City, the Philippines. Henry Sy Sr.,
chairman of both SM Investments Corporation and SM

CONCEpT ANd RETAIL MIx

ACTIVITIES

SM Mall of Asia is positioned as a family and onestop shopping mall. It is a place not only for shopping,
but for families to spend the day together. There is
something for everyone to do with facilities aplenty, and
this aptly reflects the malls taglineWe got it all for
youused in its marketing efforts. Overall, SM Mall
offers wide tenant or merchandise mix, value for money
proposition, accessible locations, and family-oriented
atmosphere.
There are four things that make SM Mall of Asia stand
out. First, it is big; there is plenty of space for everyone
to roam around comfortably. Second, it is bright. The
mall is designed to let natural lights into the building.
The ingenious use of steel and glass allows natural
light to generously filter in. Third, it is beautiful. The
traditional box-like mall design is avoided. SM Mall of
Asia was designed by a Miami-based architectural firm,
Arquitectonica; it made use of undulations, ellipses, and
swirls to subtly mimic the bays waves and currents. The
spectacular view of Manila Bay makes walking around
the mall a beautiful experience. Last, it is unique. The
mall offers unique experiences through innovatively
designed facilities such as the skating rink and the IMAX
theater.
There are over 600 shops in SM Mall of Asia and you
can get everything under one big roof, from traditional
products to international brands. The category mix is
diverse and includes fashion apparel, shoes, bags, and
accessories; art, books, music, and video; computers,
photography, and other gadgets; jewelries, watches,
and eyewear; sporting goods, novelties, and hobbies;
home and furnishing; pets; health and beauty; travel and
financial services; amusement, day care, and educational
services; and hypermarket, department store, and
hardware shop. For dining, the mall offers a diverse
range of options, from fast food and casual to formal
and high end. There are about 150 dining outlets and

The open air Music Hall, which faces the sea, hosts
concerts and events regularly. The IMAX theater is the
biggest in the Philippines with an eight-story screen,
44 digital surround sound speakers, and the most
advanced 3D technology. The Science Discovery Center
is a high-tech theme park for kids with two floors of
walk-in galleries. The skating rink is Olympic-sized,
measuring 61 meters by 30 meters and is one of the
biggest in Southeast Asia. The malls San Miguel by the
Bay is a dining and nightlife strip and houses restaurants
and drinking holes that provide a good view of the bay
area and the sea. The One Esplanade is a stylish and
modern venue for large-scale events and was the venue
for the World Pyro Olympics and the Lovapalooza 2,
which broke the Guinness World Record for the most
number of kissing couples. Pets are allowed to roam
freely in non-airconditioned areas and the mall has pet
stations equipped with free plastic bags and disposal
bins. Small pets can be brought inside the mall, but
must be accompanied and taken care of by the owners
at all times.
Some events are organized by season. During
Christmas, Santa Meet and Greet takes place at the
Santas Snowvile@The Main Mall Atrium on Fridays,
Saturdays, and Sundays at 3.00 p.m. At the same
location on Saturdays and Sundays, the mall features the
Symphony of Angels when choirs from different parts of
the country will perform.
For general activities, the mall offers Morning Bay
workout on Saturdays and Sundays from 6.00 a.m.
to 8.00 a.m. Customers can exercise at San Miguel by
the Bay and enjoy the ambience and the cool breeze.
Every Friday and Saturday at 7.00 p.m., the mall
presents Pyromusical, a five-minute fireworks display
set to music at the bay area. The dazzling lights provide
a festive atmosphere and can be viewed from the various
restaurants by the seaside. Every day at 4.00 p.m. at the

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mall arcade, the SM Mall of Asias marching band


performs with songs and choreography changed
regularly. Every evening at 7.00 p.m., different acoustic
bands perform at the Seaside Paluto in the bay area,
while musicians perform live at the Veranda in the
Entertainment Mall.

AMENITIES ANd SERVICES


Package pick-up services are provided whereby purchases from various shops can be sent to the pick-up
area by the shops for the shopper to collect at a later
time. The mall has 15 toilet facilities in different parts
of the four buildings. Each building is served by 14
escalators and nine elevators. There are also information
booths, police outposts, breastfeeding stations, telephone
booths, and ATM machines. There is even a church
within the mallThe Shrine of Jesus, the Way, the Truth,
and the Light.
The mall has a comprehensive website (http://
smmallofasia.com/moa/?p=1097) which provides information on directions to the mall, choices and availability
of offerings for shopping, dining, and entertainment,
calendar of events, services available at the mall, and
corporate information. The website also provides a map
of the mall which allows a user to search for specific
stores in specific retail categories and their location
within the mall.

However, not everyone who visited the mall was


impressed by it. Below are some negative comments
from shoppers:

REACTIONS OF CUSTOMERS
The mall has garnered positive comments from shoppers.
Some of them are given below:

Specialty restaurants facing the sea make dining a


pleasant experience.
It is nice to have a combination of indoor and
outdoor facilities in the mall.
The mall is very large and there are many things
to do.
Golf cars are available and senior citizens can take
a ride if they are tired of walking. Kiddie carts are
also available for rent so parents can push their
kids around when the kids are tired.
Parents can deposit their kids in the kiddie gym or
skating rink while they do their shopping.
The place is big but I do not seem to get tired of
walking. I love to stand by the seawall to relax and
unwind and watch passers-by.
If you get tired of dragging your luggage around,
there is a facility where you can deposit it and they
will give you a stub so you can claim it later.
Every time we go to the mall, there always seems
to be something new to see.

The variety of domestic and international stores is


great and the prices are good.
I love the Boardwalk at night with outdoor band
entertainment.
The range of dining options, from high-end
restaurants to food courts, is great and you can
find your favorite food from Vietnamese to Greek.
It is shaped like a ship docked beside the water and
is a fun and happy place.

You need to check the map on the website and


plan before visiting the mall as the directories at
the mall are not helpful nor are the security guards.
There are no printed maps available. The customer
service personnel at the information booths will
give you directions, but one can still get lost
because the place is so big.
We bought our wedding rings at a shop there
and had to go back another day to complete the
paperwork. It took us one whole hour to find the
place again.
The bathrooms do not provide toilet papers so you
have to bring your own.
You are subjected to security checks when you
move from one building to the next.
The big crowd is a bit frustrating, especially during
the weekends. You need to make a booking for a
meal at a restaurant or the wait for a table can be
long, often a couple of hours.
You need good walking shoes as the mall is spread
out over four buildings.
It is a long walk from the car park to the mall, and
by the time you reach the mall you are already
sweaty.
The mall seems to be very Americanized and
everything is in English. You forget that you are
in Manila. It is too commercial and soulless.

retailing anD WhOleSaling

HOw IT ALL BEGAN

Prime, already had in mind to build one of the largest


malls in Asia. He envisioned the mall to be more than
just a shopping complex. He wanted it to be a premiere
integrated leisure destination. Shoppers and tourists will
come to SM Mall of Asia not just to shop but for leisure,
Mr. Sy explained. The mall will be a major Asia-Pacific
destination, he added. SM Prime made sure that the mall
would be true to his vision. All aspects of planning and
developmentthe design, theme, amenities, and even
details such as wall colorwere closely monitored. In
May 2006, Mr. Sys vision turned to reality with the
opening of SM Mall of Asia, SM Primes 25th mall, right
in the heart of SM Bay City.
Four buildings make up SM Mall of Asia and these
buildings are interconnected by walkways. The Main
Mall faces the inland area and houses the shopping
outlets, eateries, food courts, SM Appliance Center,
and a skating rink. The Entertainment Mall faces the
bay area and is an open, two-story complex which
houses the San Miguel Coca-Cola IMAX theater, the
Premier Cinemas and the SM Cinemas, the Music
Hall, the SM Science Discovery Center, the 76-lane

the cuisines include Continental, Italian, and Mexican;


Asian, Japanese, Chinese, and Filipino; bar and grill;
and coffee and dessert.
Fashion apparel tenants in SM Mall of Asia include
Zara, Kenneth Cole, The Gap, Lacoste, Guess,
Mossimo, Terranova, and Giordano. For shoes and
bags, some tenants are Aldo, Sledger, Nine West, Pedro,
and La Bagagerie. Computers and gadgets are sold
at CompuServe, Data Blitz, Game Gizmo, Lenovo,
Hewlett-Packard, Sony Ericsson, Bose, and Power
Telecom. Dining tenants include Wendys, Yoshinoya,
Krispy Kreme, Gerrys Grill, Kitaro Sushi, Don
Henricos, and Patio Guernica.

chapteR16

Close to two million bags of cement


were used to build it and 44,000
gallons of paint were used to paint
it. It also had 1.9 million floor tiles
installed in it. That is SM Mall of
Asia, the largest shopping mall in the
Philippines and the third largest in the
world. It has almost 42 hectares of
floor space, 8,000 parking lots for cars, and 100 parking
lots for tourist buses. It attracts about 200,000 visitors
every day on a typical weekday, but can draw 500,000 to
1,000,000 on a good weekend. The mall occupancy was
97 percent about six months after its opening.
QR 163
SMMallof
asia

Bowling Alley and the Billiard Center, and many highend restaurants facing the sea. The North and South
Car Park buildings provide parking lots and also house
the SM Hypermarket and the SM Department Store,
respectively. SM Mall of Asias location at Manila Bay
allows one to view spectacular sunsets. One unique
feature of SM Mall of Asia is its 20-seat tram that runs
around the mall grounds. The malls welcome icon
was a multicolored bronze globe. This globe has been
converted into a 360-degree electronic billboard. With
the black sky as the backdrop at night, it comes alive
in vivid colors. The mall is open daily from 10.00 a.m.
to 10.00 p.m.

chapteR16 retailing anD WhOleSaling

End-of-Chapter Cases Featuring Asian Companies and


Asian Marketing Examples

Questions
1 Why do consumers go to shopping malls? What
features of shopping malls are important to consumers?
How will you rate SM Mall of Asia with regard to these
features?
2 What are the advantages and disadvantages of a big
mall like SM Mall of Asia compared to smaller malls?
What kinds of retailers would prefer a big mall and what
kinds of retailers would prefer a small mall?
3 What macroenvironmental trends do you expect to
take place in the Philippines during the five years from
2012 to 2017? What can SM Mall of Asia do to continue
to attract visitors and shoppers?

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Integrating Assessment Tools that Allow Instructors to


Meet AACSB Assurance-of-Learning Requirements
Each chapter begins with learning objectives, includes in-chapter
learning reviews, and ends with learning objective summaries. In
addition, the Test Bank includes learning objective, AACSB learning
outcome, and Blooms Taxonomy designations for each question. The
combination of the objectives, outcomes, and taxonomy designation
with the specific questions provides an important tool for meeting
AACSB assurance of learning requirements.

LeaRNiNg
OBJeCtiVeS
After reading this chapter
you should be able to:
LO1

LO2

LO3

LO4

LO5

LO6

Describe two kinds


of organizations and
the three levels of
strategy in them.
Describe how core
values, mission,
organizational
culture, business, and
goals are important
to organizations.
Explain why
managers use
marketing
dashboards and
marketing metrics.
Discuss how an
organization assesses
where it is now and
where it seeks to be.
Explain the three
steps of the planning
phase of the strategic
marketing process.
Describe the
elements of the
implementation and
evaluation phases
of the strategic
marketing process.

Developing Successful
Marketing and
Organizational Strategies
theFOReFRONtiNteChNOLOgY,aNDa
MaRKetiNggeNiuS
The electric rice cooker is now an indispensable item in many Asian
households. The man who developed the first commercial electric
rice cooker was Masaru Ibuka. After World War II, Ibuka and a small
group of people were eager to rebuild postwar Japan. Ibuka wanted to
produce items needed for everyday life. They experimented with a
primitive electric rice cooker, made by merely interlocking aluminum
electrodes which were connected to the bottom of a wooden tub. The
rice needed to test the rice cooker was procured by Ibukas relatives
from the black market. However, the rice cooker mostly produced undercooked or overcooked rice. It was a memorable first failure for Ibuka
and his staff.1
Akio Morita, whom Ibuka met in the Wartime Research Committee,
joined Ibuka and both of them, together with 20 employees, established the Tokyo Tsushin Kogyo K. K. (Tokyo Telecommunications Engineering Corporation). They invented the magnetic tape recorder and
the worlds first fully transistorized radio, both of which were successful.
Ibuka had the foresight to explore markets beyond Japan, and he visited
the United States in 1952. In 1958, the company adopted the name
Sony as its corporate name in order to market itself worldwide.
Today, the Sony Corporation is one of the worlds largest media conglomerates with a turnover of about US$94.86 billion in 2010.
It is one of the leading manufacturers of electronics, video, communications, video games, and information technology products for the
consumer and professional market. It is part of the Sony Group, which
includes Sony Pictures Entertainment, Sony Computer Entertainment,
Sony BMG Music Entertainment, and Sony Financial Holdings.
Sony has been known for creating its own in-house standards for
new recording and storage technologies rather than adopting those
of other manufacturers and standards bodies. Some of these attempts
were unsuccessful, most notably in the early 1980s, when Sonys Betamax lost out in the videotape format war to the VHS format developed
by JVC. However, the company gave Japan and the world many
leading-edge products and achieved the worlds firsts in the following
products: compact disc player, non-projection portable transistor
television, transistor-based videotape recorder, composite digital
videotape recorder, and high definition camcorder. The company was
especially good at miniaturization and produced the worlds smallest
in the following products: transistor radio, monochrome television,
personal stereos, and camcorder. Sony is also known for its creative

LO2 Describe how core values, mission, organizational


culture, business, and goals are important to organizations.
Organizations exist to accomplish something for someone.
To give organizations direction and focus, they continuously
assess their core values, mission, organizational culture, business, and goals. Todays organizations specify their foundation,
set a direction, and formulate strategiesthe why, what,
and how factors, respectively. Core values are the organizations fundamental, passionate, and enduring principles that
guide its conduct over timewhat Enron forgot when it lost
sight of its responsibilities to its stakeholders. The organizations mission is a statement of its function in society, often
identifying its customers, markets, products, and technologies.
Organizational culture is a set of values, ideas, attitudes, and
norms of behavior that is learned and shared among the members of an organization. To answer the question, What business are we in? an organization defines its businessthe
clear, broad, underlying industry category or market sector of
its offering. Finally, the organizations goals (or objectives)
are statements of an accomplishment of a task to be achieved,
often by a specific time.
LO3 Explain why managers use marketing dashboards and
marketing metrics.
Marketing managers use marketing dashboards to visually
display on a single computer screen the essential information
required to make a decision to take an action or further analyze a problem. This information consists of key performance
measures of a product category, such as sales or market share,
and is known as a marketing metric, which is a measure of
the quantitative value or trend of a marketing activity or result.
Most organizations tie their marketing metrics to the quantitative objectives established in their marketing plan, which is a
road map for the marketing activities of an organization for a
specified future time period, such as one year or five years.
LO4 Discuss how an organization assesses where it is now
and where it seeks to be.
Managers of an organization ask two key questions to set a
strategic direction. The first question, Where are we now?
requires an organization to (a) reevaluate its competencies to
ensure that its special capabilities still provide a competitive

advantage; (b) assess its present and prospective customers to


ensure they have a satisfying customer experiencethe central goal of marketing today; and (c) analyze its current and
potential competitors from a global perspective to determine
whether it needs to redefine its business.
The second question, Where do we want to go? requires
an organization to set a specific direction and allocate resources
to move it in that direction. Business portfolio and diversification analyses help an organization do this. Managers use business portfolio analysis to assess the organizations strategic
business units (SBUs), product lines, or individual products as
though they were a collection of separate investments (cash
cows, stars, question marks, and dogs) to determine the amount
of cash each should receive. Diversification analysis is a tool
that helps managers use one or a combination of four strategies
to increase revenues: market penetration (selling more of an
existing product to existing markets); market development
(selling an existing product to new markets); product development (selling a new product to existing markets); and diversification (selling new products to new markets).
LO5 Explain the three steps of the planning phase of the
strategic marketing process.
An organization uses the strategic marketing process to allocate
its marketing mix resources to reach its target markets. This
process is divided into three phases: planning, implementation,
and evaluation. The planning phase consists of (a) a situation
(SWOT) analysis, which involves taking stock of where the
firm or product has been recently, where it is now, and where
it is headed. This assessment focuses on the organizations
internal factors (strengths and weaknesses) and the external forces and trends affecting it (opportunities and threats);
(b) a market-product focus through market segmentation
grouping buyers into segments with common needs and similar responses to marketing programsand goal setting, which
in part requires creating points of differencethose characteristics of a product that make it superior to competitive substitutes; and (c) a marketing program that specifies the budget and
activities (marketing strategies and tactics) for each marketing
mix element.
LO6 Describe the elements of the implementation and
evaluation phases of the strategic marketing process.
The implementation phase of the strategic marketing process
carries out the marketing plan that emerges from the planning phase. It has four key elements: (a) obtaining resources;
(b) designing the marketing organization to perform product
management, marketing research, sales, and advertising and
promotion activities; (c) developing schedules to identify the
tasks that need to be done, the time that is allocated to each
one, the people responsible for each task, and the deadlines for
each tasks accomplishment; and (d) executing the marketing
strategies, which are the means by which marketing goals are
to be achieved, and their associated marketing tactics, which
are the detailed day-to-day operational decisions essential to
the overall success of a firms marketing strategies. These are
the marketing program actions a firm takes to achieve the goals
set forth in its marketing plan.

ChaPteR2 developing successful marketing and organiZational strategies

LEARNING OBJECTIVES REVIEW


LO1 Describe two kinds of organizations and the three
levels of strategy in them.
An organization is a legal entity of people who share a common
mission. There are two kinds. One is a business firm that is a
privately owned organization that serves its customers to earn
a profit so that it can survive. The other is a nonprofit, nongovernmental organization that serves its customers but does not
have profit as a goal. Most large business firms and nonprofit
organizations are divided into three levels of strategy: (a) the
corporate level, where top management directs overall strategy
for the entire organization; (b) the strategic business unit level,
where managers set a more specific strategic direction for their
businesses to exploit value-creating opportunities; and (c) the
functional level, where groups of specialists actually create
value for the organization.

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The Most Comprehensive Package of Teaching and


Learning Resources
The supplements that accompany Marketing in Asia, Second Edition
are a comprehensive and integrated package of resources designed
to ensure the highest level of learning for all students, and assist in
making an instructors life easier in the process. The supplements range
from online quizzes to comprehensive PowerPoint slides, one-of-a-kind
Instructor's Survival Kit, an integrated Instructor's Manual, an Instructors
Advertisements and Corporate Videos Resource, and a world-class
Test Bank.

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leadership
The first text to integrate new content areas such as ethics, technology,
interactive marketing, marketing dashboards and metrics, and social
media.
The first custom-made videos to accompany a marketing text.
The first teaching package to utilize active learning approaches in the
text and the instructor resources.
These are just a few examples that illustrate how the Kerin author
team has played a leadership role in the development and delivery
of marketing pedagogy. Marketing (the U.S. edition) is recognized as
the market leader in the United States and Canada, and continues
to introduce new, leading-edge principles and practices to students
and instructors around the world. Marketing in Asia, Second Edition
continues this tradition of leadership.

Social Media Integration throughout the


Learning Package
More than just a new, dedicated social media marketing chapter,
this new edition goes above and beyond to integrate social media
marketing in all aspects of learning.
Scan a QR code and jump to a Marie France Thailand

commercial on YouTube.

Instructors can visit kerin.tv/blog to get great ideas for

QR 182
Marie France
Thailand Video

in-class activities and discussions relevant to current


events.

This edition of Marketing in Asia not only delivers


the content via social media, but also allows you to
respond to it the same way.

Customer Experience Management


Customer experience management reflects contemporary thinking
about the way marketers view how customers relate to their
organizations and offerings. Students will find that marketing efforts
to create a favorable customer experience in the interaction with

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organizations and the acquisition, use, and disposal of offerings result


in mutually beneficial exchange relationships.

Marketplace Diversity
A diverse mix of buyers and sellers populate todays dynamic
marketplace. Students will find that successful marketers are not
limited to any particular culture, nationality, race, ethnic group, or
gender. Rather, like the consumers they serve, marketers mirror society,
both domestically and globally. This diversity in today's marketplace is
reflected in Asian and non-Asian examples throughout the text.

Using Marketing Dashboards


The use of marketing dashboards among marketing professionals is
popular today. Marketing dashboards graphically portray the measures
that marketers use to track and analyze marketing phenomena and
performance. Students will find commonly used measures applied
by successful marketers throughout the text and be exposed to their
calculation, interpretation, and application.

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innovation
To secure their position in the marketplace, the author team
consistently creates innovative pedagogical tools that encourage
interaction and match students learning styles. The authors keep
their fingers on the pulse of technology and education to bring real
innovation to their text package.

QR Codes: 21st Century Marketing for Your Book


These little codes are becoming more and more
prevalent. Companies are using them on direct mail
pieces, in-store displays, catalogs, etc. Marketing in
Asia, Second Edition is joining the QR party. These
codes bring the text to life with ads, videos, and
websites from products and companies to tie the
concepts of the book to companies and media to
which students relate, and also allow us to keep the
text even more current.

QR 22
Medtronic
Video

Instructors Survival Kit


Instructors create interaction by getting students in class to assess
how certain marketing principles or concepts are practiced in real
life by examining articles used by Asian companies.
Students who are kinesthetic
learners especially appreciate
the hands-on product
samples that are tied to the
activities and are intended
to build on the idea of
cooperative learning.

xii
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new and revised asian content


New Coverage of Customer Value Proposition and New Example
of UNIQLO

UNIQLOs innovative marketing approach is described in the chapteropening case and throughout the chapter. It highlights the need to
serve customers better through quality products and unique styles, as
well as through innovative marketing such as the use of the Chopper
character and the Lucky campaigns in the United Kingdom. A new
discussion of customer value propositions is included in the section on
the four Ps.

New Coverage of Social Entrepreneurship, Marketing Dashboards,


and New Case on TISCO in Thailand

Social entrepreneurship examples from Hapinoy, 1001 Fontaines,


and Table for Two are presented in the new Making Responsible
Decisions box. A new marketing dashboard illustrates state-of-theart visualization graphics and describes important dashboard design
issues. Chapter 2 also has a new end-of-chapter case on TISCO from
Thailand which allows students to examine key aspects of marketing
planning, and to carry out analysis and make decisions on strategy.

Discussion of New Trends in Marketing and the Explosion of


Social Networking

3
4

The many environmental factors that led to the extraordinary


growth of Facebookwhich is popular in many Asian countriesare
described in the opening story of Chapter 3. Recent trends related to
values-based consumer purchase decisions, sustainability, behavioral
targeting, co-creation of value as a form of competition, and
regulation regarding green and environmental marketing claims have
been added.

Expanded Discussion of Codes of Ethics, Description of


Asian Sustainability Rating, and New Case on Toyotas Green
Car Initiatives
This chapter now includes discussion of ethics code content and
the use of business practice officers in many companies. The Asian
Sustainability Rating is described in a new Marketing Matters Box. A
new case which can be used in association with this chapter is found
in Appendix Dcase D1 on Toyota: Building Cleaner, Greener Cars.
It describes the car manufacturers strategic partnership to provide
national parks such as Yellowstone, Everglades, and Yosemite with
hybrid vehicles to reduce noise and emissions in the parks.

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New Examples of Consumer Behavior Concepts and


New Case

Chapter 5 begins with a new opening story on luxury brand consumers


in China. The chapters discussion of alternative evaluation is updated
with the latest information on smartphones such as Apple, BlackBerry,
and HTC. New purchase decision behaviorssuch as the use of
smartphone apps for price comparisonsare also discussed.
Chapter 5 concludes with a new end-of-chapter case about Groupon
and how the companys group coupons influence consumer
purchase decisions.

New Opening Story and New Case

The chapter has a new opening story on PT Semen Gresik from


Indonesia. It shows the complexity of business marketing and the
need to integrate well along the value chain. Demand for its cement
is affected by Indonesias economic growth, interest rates, and
infrastructural developments. Asian values which have relevance to
business marketing include the importance of business relationships
that result in practices such as reciprocity and the emphasis on
consensus in decision making in many Asian countries which make
concepts like the buying center applicable. The chapter also
incorporates a new end-of-chapter caseThe IOI Group: Business To
Business Marketing in Actionwhich describes the palm oil operation
of the Group along the value chain. The case allows students to
examine the unique challenges of business marketing, understand the
concept of derived demand, and apply the concept of buying center.

New Material on World Trade Flows and Cultural Inuence on


Advertising, and New Case

The section on world trade flows now includes new discussion and
graphics describing the relative levels of imports and exports for
China, Germany, the United States, and other countries. In addition,
Chapter 7 includes new examples of cultural influences on Microsoft
advertising. The consumer income and purchasing power section
also describes the launch of a new Levi Strauss brand, Denizen, in
China. The new end-of-chapter case on HTC from Taiwan examines
its strategies to penetrate smartphone markets around the world, and
it enables students to examine analysis and decisions associated with
global marketing.

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New Coverage of Marketing Metrics for Social Media and the


Explosion of Internet Data Mining

A new section on social media as a method of collecting primary data


has been added to Chapter 8. In addition, a new Marketing Dashboard
box introduces several social media metrics including conversation
velocity, share of voice, and sentiment, and describes their use at
Carmex. Chapter 8 also provides an updated section about data
mining on social networks and a new Making Responsible Decisions
box which describes the downside of data mining.

New Market-Product Grid Example, New Product Differentiation,


Cannibalization, Competition Discussions, and New Case

The section on Using Market Product Grids includes a new example


and figure about types of sleepers and pillows! The chapter also
includes a new discussion about product differentiation and its
potential impact on quality and cost. The section on segmentation
trade-offs now discusses the possibility of cannibalization at Walmart.
Finally, a new discussion on competition has been added to Step 5:
Take Marketing Actions to Reach Target Markets. The concluding
end-of-chapter case on Dhonuk.com from India showcases the
segmentation, targeting, and positioning of the Indian art market.

New Examples of Product Failures, New Marketing Matters Box,


New Test Market Discussion, and New Case

10

Chapter 10 has many new examples of new product failures including


Colgate Kitchen Entrees, Bic disposable underwear, Frito-Lay
lemonade, and Harley-Davidson perfume. A new Marketing Matters
box explains why the brand extensions into new markets did not
work. Updated coverage of industrial design at professional R&D
laboratories such as IDEO has been added. A new, comprehensive
discussion of Stage 6: Market Testing has also been added. The
chapter concludes with a new end-of-chapter case on Yunnan Baiyao
of China and its mix of products based on special herbs found in the
Yunnan Province.

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Updated Examples and Neuromarketing Discussion, and New Case


on Trung Nguyen Coffee

11

The opening story on Brands has been updated. New HarleyDavidson advertising is used to illustrate brand personality traits.
In addition, the section on packaging and labeling now includes a
discussion about Campbell Soup Companys use of neuromarketing
techniques to change their soup labels. Finally, the new end-of-chapter
case on the branding strategy of Trung Nguyen Coffee will allow
students to examine issues and decisions in branding!

New Examples, Introduction of Social Media for Nonprots, and


Updated Discussion of Service Failures

12
13
&

14

Chapter 12 begins with a new opening story on Lotte World in South


Korea, which has the worlds largest indoor theme park and develops
its own facilities, characters, shows, and branding. The chapter
includes many new examples of services including on-demand gaming
through cloud computing technologies, automated shopping with
fingerprint scans, and space travel for civilians. The use of social media
by nonprofit organizations is introduced in the updated Marketing
Matters box. The Going Online box now discusses media monitoring
as a means for services to learn about service failures.

New Coverage of Price Transparency, Price Decoding, Price


Structures, and New Marketing Dashboard
Chapter 13 includes new discussion of the price transparency
created by new websites, applications, and smartphones. Examples
of flash sale pricing such as a 77 & 7 deal for today only
are included in the text along with a new Marketing Matters box.
Competitive pricing between Walmart and other retailersand
between Amazon and iTunesis discussed in new text material and a
Marketing Matters box.
Chapter 14 opens with an updated description of the pricing of the
Nano car by the Tata Group in India. The chapter also includes a new
Marketing Dashboards box about the brand price premium of Red Bull
related to competitive brands Rockstar and Monster.

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15

New Marketing Channels and Supply Chains Combination


Chapters 15 and 16 from the first edition have been combined to
provide comprehensive coverage of marketing channels and supply
chains. The chapter includes new discussion of exclusive distribution
agreements at Saks and disintermediation at American Airlines. The
case on Shiseido in China has been updated.

Introduction of Shopper Marketing and Integration of Wholesaling,


and New Case

16

The chapter-opening story on Robinson Department Store of Thailand


has been updated. The concept of shopper marketing is introduced
in the discussion of the retailing mix. A discussion of wholesaling has
been integrated into the chapter. Finally, the new end-of-chapter case
featured one of the largest malls in the worldthe SM Mall of Asia in
the Philippines.

Introduction of Splash and Maxi-Peel, Updated Coverage of Mobile


Marketing, and New Case on Permata Bank

17

Chapter 17 begins with a new story on the Splash Group and the MaxiPeel brand in the Philippines, with its use of traditional and new media
in marketing communications. In addition, the Marketing Matters box
presents an updated discussion of the use of mobile marketing as part
of integrated marketing communications (IMC) campaigns designed to
reach digital natives. The Geico campaign developed by Advertising
Age magazines Media Agency of the Year, Horizon, is discussed as an
example of the trend toward IMC. The chapter ends with a new case
on Permata Bank of Indonesia and its annual IMC program.

New Advertising and Sales Promotion Examples and Content

18

New examples of advertising include Red Bulls Valentine campaign


and Marie Frances campaign in Thailand. Media changes such
as television and cable program tagging, the growth of
infomercials, the specialization of magazines, the shift to online
versions of traditional newspapers, and the growing attention to the
environmental impact of yellow pages directories are covered. New
examples of sales promotions include Groupons daily coupon services
and Valpaks savings promotion. The end-of-chapter case on Tiger
Beer has been updated.

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New Chapter on Social Media Marketing

19
20

Chapter 19 addresses the incredible growth and impact of social


media on the marketing discipline. The opening story features social
media campaigns by the Korea Tourism Organization and Sri Lanka
Tourist Promotion Board. The chapter discusses the broad range of
social media from Wikipedia and Tumblr to YouTube and LinkedIn, to
World of Warcraft and Second Life. It also discusses how marketing
managers can use social media to develop their marketing strategies
and offers specific examples with Facebook, Twitter, LinkedIn, and
YouTube. Popular social media networks in different Asian countries
featured include Mixi of Japan, Cyworld of Korea, Wretch of Taiwan
and Zing Me of Vietnam. The chapter also discusses how to measure
the results of social media programs and gives many examples of
some of the best mobile apps. The end-of-chapter case examines
Julies Biscuits use of social media in its Share the Love public
relations campaign.

Updated Chapter-Opening Story and Updated Description of


Salesperson Time Allocations
The opening story on Boeing has been updated along with the
data on salespeople in Asian countries. An updated description of
salesperson time allocations has been added to the section on ordergetting salespeople.

Updated Examples and Descriptions of the Interactive Marketing


Environment and New Case

21

The new chapter-opening story on Seven Cycles describes how the


company uses its interactive, multilanguage (including Chinese,
Japanese, and Korean) website to become the worlds largest custom
bicycle frame builder. The example describes online collaboration,
customization, and feedback elements of the site. Updated
information about total online retail sales through 2016 is also
presented. A new discussion about behavioral targeting is presented
in the Why Consumers Shop and Buy Online sections. The new endof-chapter case on LoopzTM allows students to examine how the
multichannel strategy was used to market and sell the revolutionary
exercise band.

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Updated Discussions of Resource Allocation, Metrics, and


Synergy Analysis, and New Case

22

The last chapter includes new discussion regarding the allocation of


resources related to product and brand portfolios and promotional
and social media budgets. The section on the importance of metrics
has also been expanded to emphasize the need for data-driven
decision making first introduced in Chapter 2. New examples
throughout the chapter include the new General Mills brand Wanchai
Ferry, Chobani Greek Yogurt, Tide Pods, and McDonalds fruit
smoothies, snack wraps, and oatmeal. The new end-of-chapter case
on MK Restaurant of Thailand invites students to examine different
aspects of strategic marketing, planning, and implementation.

Many New Alternate Cases

Appendix

There are 22 supplementary cases from many different Asian and other
countriesmany of them newfor instructors who elect to assign
additional cases to students for them to work on. Some of the cases
are Toyota and building greener cars, Mary Kay and brand building in
India, Medtronics in China, bloomerHang, arts festivals in Singapore,
and Thai Tuan Silk of Vietnam.

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organization
Marketing in Asia, Second Edition is divided into five parts:

Part 1Initiating the Marketing Process


It looks first at what marketing is and how it creates customer value
and customer relationships (Chapter 1). Then Chapter 2 provides
an overview of the strategic marketing process that occurs in an
organizationwhich provides a framework for the text. Appendix A
provides a sample marketing plan as a reference for students.
Chapter 3 analyzes the five major environmental factors in our
changing marketing environment, while Chapter 4 provides a
framework for including ethical and social responsibility considerations
in marketing decisions.

Part 2Understanding Buyers and Markets


It first describes, in Chapter 5, how individual consumers reach buying
decisions. Next, Chapter 6 looks at organizational buyers and markets
and how they make purchase decisions. And finally, in Chapter 7, the
dynamics of world trade and the influence of cultural diversity on
global marketing practices are explored.

Part 3Targeting Marketing Opportunities


The marketing research function and how information about
prospective consumers is linked to marketing strategy and decisions
is discussed in Chapter 8. The process of segmenting and targeting
markets and positioning products appears in Chapter 9.

Part 4Satisfying Marketing Opportunities


This part of the text covers the marketing mix elements. The
product element is divided into the natural chronological sequence
of first developing new products and services (Chapter 10) and
then managing the existing products (Chapter 11) and services
(Chapter 12). Pricing is covered in terms of underlying pricing
analysis (Chapter 13), followed by actual price setting (Chapter 14)
and related concepts from accounting and finance (Appendix B,
Financial Aspects of Marketing). Two chapters address the place
(distribution) aspects of marketing: Managing Marketing Channels

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and Supply Chains (Chapter 15), and Retailing and Wholesaling


(Chapter 16). Promotion is covered in four chapters. Chapter 17
discusses integrated marketing communications and direct marketing.
The primary forms of mass market communicationadvertising, sales
promotion, and public relationsare covered in Chapter 18. Social
media are covered in Chapter 19 as a separate chapter to reflect their
growing importance in the marketing discipline. Personal selling and
sales management are covered in Chapter 20.

Part5 Managing the Marketing Process


It discusses issues and techniques related to interactive marketing
technologies and the strategic marketing process. Chapter 21
describes how interactive and multichannel marketing influences
customer value and the customer experience through context,
content, community, customization, connectivity, and commerce.
Chapter 22 expands on Chapter 2 to describe specific techniques
and issues related to blending the four marketing mix elements to
plan, implement, and evaluate marketing programs.
The book closes with several useful supplemental sections.
Appendix C, Planning a Career in Marketing, discusses marketing
jobs and how to get them; and Appendix D provides 22 alternate
cases. In addition, a detailed Glossary, Learning Review Answers,
and three indexes (name, company/product, and subject) complete
the book.

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engaging features

17

Chapter-opening vignettes introduce


students to chapter concepts by using an
exciting company as an example. Students
are immediately engaged while learning
about real-world companies.

LeaRNINg
OBJectIVeS

After reading this chapter


you should be able to:
LO1

LO2

LO3

LO4

LO5

Marketing Matters > > > > > > > > culture
the economies of east asiaspanning
from Japan to indonesiaalmost equal that
of the United states and total about fourfifths of the european Union. the marketing opportunities in east asia are great,
but effective selling in these countries requires a keen cultural ear. seasoned global
marketers know that in many asian societies
it is impolite to say no, and yes has multiple
meanings.
Yes in asian societies can have at least
four meanings. it can mean that listeners
are simply acknowledging that a speaker
is talking to them even though they dont

Describe the
promotional mix and
the uniqueness of
each component.
Select the promotional
approach appropriate
to a products
target audience,
life-cycle stage, and
characteristics, as well
as stages of the buying
decision and channel
strategies.
Describe the elements
of the promotion
decision process.
Explain the value
of direct marketing
for consumers and
sellers.

MaKINgWaVeS:hOWMaXI-PeeLBecaMea
hOuSehOLDNaMeINPeRSONaLheaLthcaRe
Eleven years ago, nobody knew what Maxi-Peel was. Now, it is a megabrand in the Philippines, with value sales of over one billion Philippine
pesos. It is considered a direct competitor to the likes of multinational
giants such as Procter & Gamble and Unilever. How, then, did MaxiPeel work its way up to become the Filipino womans choice brand, and
to corner an 85 percent share in the countrys exfoliant soap market?1
Its success can be attributed to an integrated marketing communications strategy that was well planned and executed to connect with
its customers.

The Beginnings of Splash


Maxi-Peel was launched in 2001 by Splash Corporation. However, prior
to its commercial success, the husband-and-wife team of Rolando and
Rosalinda Hortalezafounders of Splash Corporationhad begun to
build a strong foundation for the brand.
Splash Corporation was started in 1985. Rolando was then working
as a doctor at a government hospital. His wife, Rosalinda, had put her
career in medicine on hold to care for their first child. The Hortalezas
were living on Rolandos salary of 7,000 pesos a month, which was
hardly enough to make ends meet. They decided to strike out on their
own and took the first plunge by pooling together 12,000 pesos from
their wedding cash gifts as start-up capital for their first businessto
create and sell their own brand of beauty and cosmetics products.
Fortunately for the Hortalezas, Rolandos father operated a chain of
21 beauty supply stores. This, in turn, enabled them to sell their new
products through these outlets.
For their first venture, the Hortalezas launched an acetone cuticle
remover packaged in cough syrup bottles. They followed it up with
a low-cost hair spray to capitalize on the fashion craze for big hairdo
in the 1980s, which was in vogue then. While this product was too
expensive for the Philippine masses, the venture did generate enough
interest to earn one million pesos in revenue.2
Encouraged by their success, the Hortalezas decided to make
it official. They renamed their company Splash, a name that would
soon turned out to be prophetic considering the waves they made
in the personal health care industry. The companys mission was now
to provide Filipinos with the best personal health care products the
market had to offer.

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The Subtlety of Saying Yes in East Asia

Discuss integrated
marketing
communication and
the communication
process.

Integrated Marketing
Communications and
Direct Marketing

6/27/12 9:53 AM

Marketing Matters boxes highlight


real-world examples of customer
value creation and delivery, and
entrepreneurship that give students
further insight into the practical world of
marketing.

understand what is being said. or, it can


mean that a speakers words are understood,
but not that they are agreed with. a third
meaning of yes conveys that a presentation
is understood, but other people must be consulted before any commitment is possible.
Finally, yes can also mean that a proposal is
understood and accepted. however, experienced negotiators also note that this yes is
subject to change if the situation is changed.
this one example illustrates why savvy
The evaluation phase of the strategic marketing process marketing program with the marketing plans goals to
salespeople are sensitive to cultural underor planning
take correcseeks to keepMaking
the marketing Responsible
program moving in the Decisions
direc- (a) identify deviations
> > >
> > gaps
> and
> (b)ethics
pinnings when engaged in cross-cultural sales
tion that was established in the marketing plan. This requires tive actions to exploit positive deviations or correct negative
negotiations.
Who
Decides
What
Appropriate
Advertising?
the marketing
manager
to compare
theIsresults
from the ones.
in 2005, after a 22-year ban, Cosmopolitan
magazine was allowed to return to
singapore, on condition that it did not

of the advertising industry. self-regulation


means that ensuring truthful advertising is
the responsibility of both advertisers and
consumers.
according to the media development
an advertisement in singapore featuring
marketingdashboard
p. 39
business p. 37
p. 37 on the
authority (mda). the recommendation
that
a organizationalculture
topless man that is plastered
marketingmetric p. 40
businessmodel
p. 37
pointsofdifference
the ban
be lifted came from the censorship
orchard
road shopfront p.
of 50
fashion retailer
reviewanalysis
committee,
to the
abercrombie
marketsegmentation
p. 49
business portfolio
p. 44and was made
profit p. 33& Fitch breaches the local
ministry of information,
communications
advertising
code of decency,
the asas
marketingplan p. 41
competitiveadvantage
p. 42
situationanalysis
p. 48
and
banned
has
ruled. asas has called for the ad
p. 38
corevalues p.
36the arts. Cosmopolitan wasmarketshare
strategicbusinessunit(SBu)
p. to
35be
in 1982
culture
removed,
but the hitch is that asasp.has
p. 52
corporatelevel
p. 33by the then ministry ofmarketingstrategy
strategicmarketingprocess
48 no
for promoting sexual permissiveness.
legal right to do so.27
marketingtactics p. 53
cross-functionalteams p. 35
strategy p. 33
according to mda, the relaxation on the
the difficulty is matching content with
mission p. 36
functionallevel p. 35
SWOtanalysis p. 48
import of Cosmopolitan was in line with
consumer preferences. asas has received
objectives
p. 38
goals p. 38 calls from the public for more choice
in
several complaints about advertising conmedia content.
tent from more conservative segments of
the controversy created by Cosmothe population. some experts are anticipatpolitan in singapore has sparked a debate
ing that the result will be a continuum of
about what is appropriate for media advertising, and who media and content options for different groups of marketers
should decide what is appropriate. in singapore, the and consumers. What is your opinion? more information
1 (a) Explain what a mission statement is. (b) Using also offers executive development certificate programs
advertising standards authority of singapore (asas) pro- about the advertising regulations in singapore can be
Medtronic asmotes
an example
from the chapter,
how it body
ranging
from three
days to two weeks in various areas
ethical advertising,
and is theexplain
self-regulatory
retrieved
from www.medialaw.com.sg/sgadrules.htm.

FOCUSING
KEY sex
TERMS
contain ON
exploitative
and nudity,
the use of the item are addressed. Attention to this stage of the selling process
Making Responsible
Decisions
boxes
focus
social
solidifies the
buyerseller relationship.
Research
showson
that the
cost and effort to
obtain repeat sales from a satisfied customer is roughly half of that necessary to
responsibility, sustainability,
and
ethics.
These
boxes
gain a sale from a new customer. In short, todays satisfied customers become
qualified
prospects or referrals.
provide exciting,tomorrows
current
examples
of how companies
approach these subjects in their marketing strategy.
24

5. What are the six stages in the personal selling process?

learning review

Web Link

APPLYING MARKETING KNOWLEDGE

6. What is the distinction between a lead and a qualified prospect?

7. Which presentation format is most consistent with the marketing concept?gives a strategic direction to its organization. (c) Create a
Why?
mission statement for your own career.

of business and management such as bank management,


project management, marketing strategy, and supply
What competencies best describe (a) your college or chain strategy. How might the Asian Institute of Manageuniversity, (b) your favorite restaurant, and
(c)
the
comment either
use the
four or
market-product
expansion
strategies
Humorous appeals imply
directly
subtly that the product
is more
fun
pany that manufactures the computer oryou
own than
or use
shown in
Figure 26
to compete
theappeals,
next five
have you ever wondered how similar or evant year or years in the right column. here you can select a
exciting
competitors
offerings.
As with
fear and in
sex
theyears?
use of
Qr 32
humor is widespread 6
in advertising
and
can result
be found
in many
catego- of
What is the
main
of each
of theproduct
three phases
most often?
different your country is compared to year in the past such as 1990 and a recent year such as 2012
asian
ries.
Many
advertisements
that use marketing
humorous appeal
can (a)
be planning,
found in India
and
to
see
how
your
country
has
changed
compared
to
the
other
3
Look
at
Figure
24,
which
shows
the
five
main
groups
the
strategic
process?
(b)
impleanother
asian
country
in
areas
such
as
Development
Thailand,
in particular.mentation,
A Marie France
advertisement
birth rate, population density, popula- country in areas associated with the topics you have chosen.
of competitors that Giordano faces. For
Royal Sporting
and (c)
control. in Thailand showed a male
Bank
tiger and its cub commenting that they are hungry as they have not eaten anytion growth, age distribution, house- Last, click submit and view the data generated.
House, Lane Crawford, Lands End, and
Amazon.com, 7 Select one strength, one weakness, one opportunity,
thing since they escaped from the zoo. Suddenly, the cub spots a human (a slim
hold size, life expectancy, literacy rate,
and onea car
threat
Giordano
explain how each is a competitor of Giordano.
and shapely woman washing
withfrom
soap the
foamSWOT
all overanalysis
her sexyfor
body).
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Selling must be managed if it is going to contribute to a firms marketing objectives.
gDp per capita, and labor force par4 Why does a product often start as cub
a question
mark
shown
Figurea lot
28,
a specific
is admiring
her figure
andinmaking
of and
eroticsuggest
noise when
the malepossible
tiger
Although firms differ in the specifics of how salespeople and the selling effort
are
ticipation
asks
him to
look at an
elephant
big Street
and fatmight
woman
whoto isexploit
also washing
a
and then move counterclockwise around
BCGs
growthaction
that (a77th
take
or address
LO4rate? You can explore answers
car). The elephant iseach
waving
for this question managed,
by visiting the
the sales
asian management process is similar across firms. Sales management
share matrix shown in Figure 25?
one.a hose with awkward movements. The male tiger
comments
that itthe
is using
its trunk
to play with
Theplanning
cub says phase
it wants
Development Bank
onlineofstatistical
consists
three interrelated functions: (1) sales plan formulation, (2) sales
5 plan
The Asian Institute of Management
in Manila,
8 The
goal-setting
stepwater.
in the
oftothe
eat the tummy and the male tiger says he will go for the head. The ad ends
Qr 182
database systemimplementation,
at https://sdbs.adb.
Philippines, offers full-time
Masters in with
Business
Admin- strategic marketing process sets quantified objectives for
and (3) salesforce evaluation (Figure 204).
the message: Good figure. Good life. Marie France Bodyline. The Worlds
MarieFrance
org/sdbs/index.jsp. First, click online Query and select
istration (MBA), Masters
in Management,
Masters
in useAnother
in the ad
evaluation
Whatbyactions
gested
thailandVideo
Slimming
Professionals.
campaignphase.
considered
some toare
be sug
humoryour home country and another country of your choice in
Development Management, Masters in Entre
for a marketing
if measured
results
are from
below
ous ispreneurship,
by Durex in Singapore,
showing manager
balloon figures,
presumably
made
the left column. second, select the main
topics
in
the
middle
condoms,
various sexual
positions.
Unfortunately
and Executive MBA programs for four-year
degreein
holders
objectives?
Above
objectives? for the advertiser, humor
Sales
Plan
Formulation:
Setting
Direction
column. You can further choose specific subjects for each
tends The
to wear
out quickly, eventually boring the consumer. Another problem with
with at least two years working experience.
institute

How Similar or Different Is Your Country?

scanning the marketing environment

tHe SaleS ManageMent proceSS

Web Link exercises are integrated in the


text and ask students to go online and think
critically about a specic companys use of the
Internet, helping students apply knowledge
of key chapter concepts, terms, and topics, as
well as evaluate the success or failure of the
companys efforts.

main topic, for example, under the main


topic of national
Formulating
the sales plan is the most basic of the three sales management functions.
accounts, you can select gDp per capita at current prices
According to the vice president of the Harris Corporation, a global communications
and gnp per capita at constant prices. third, select the rel-

humorous appeals is that their effectiveness may vary across cultures if used in a
global campaign.28

Creating the Actual Message Creating


company, If a company hopes to implement its marketing strategy, it really needs a
developing advertising copy for print, or a story
buildingyourmarketingplan
is
detailed sales planning process.25 The salesplan is a statement describing what
to be achieved and where and how the selling effort of salespeople is to be deployed.

Building Your declined


Marketing
is automobile
an end28 percent sincePlan
1985, because
quality has improved. Much of
the money is being spent on new categories of necessities such as vitamins and
of-chapter
feature
that
requires
students
to antiwrinkle
go creams,
supplements; antibacterial body washes, lotions, and deodorants;
596 chapter 20
childrens shampoos, toothpaste, and bath products. Disposable income per household
through the practical
application
of
creating
theirin 2010,
for the Asia-Pacific region rose from US$7,354.90 in 2005 to US$10,950.80
equivalent to about 8 percent per annum. Overall, the direct and indirect taxes in
own marketingmany
plan.
Asia-Pacific countries are low, resulting in a small reduction from a gross
32

income of US$12,719.10 to a disposable income of US$10,950.50. Tax contributions


as a percentage of gross income dropped from 15.3 percent in 2005 to 13.9 percent

xxii
xxii
new
and revised asian content
As consumers
discretionary
income increases, so does the
enjoyment of pleasure travel.
Qr 33
cunard
www.cunard.
com

00a MktAsia_2edIT.indd 22

Using Chapter 2 and Appendix A as guides, give


focus to your marketing plan by (a) writing your mission statement in 25 words or less, (b) listing three nonfinancial goals and three financial goals, (c) writing
your competitive advantage in 35 words or less, and
(d) doing a SWOT analysis table.

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6/27/12 10:03 AM

56 chapter 2

chapter3

20 MktAsia_2edIT.indd 596

Read Appendix A, Building an Effective Marketing


Plan. Then 524
write a chapter
600-word 18
executive summary for the
Paradise Kitchens marketing plan using the numbered
headings shown in the plan. When you have completed
the draft of your own marketing plan, use what you have
learned in writing an executive summary for Paradise
Kitchens
to write a524600-word executive summary to go in
18 MktAsia_2edIT.indd
the front of your own marketing plan.

the actual message involves


line or story board for radio

02 MktAsia_2edIT.indd 56

6/27/12 9:45 AM

7/16/12 5:14 PM

instructor resources
Instructors Manual
The Instructors Manual (IM) to accompany Marketing in Asia, Second
Edition is an all-inclusive resource designed to make an instructors
preparation for teaching much easier. The IM includes detailed
lectures, notes, discussions, and a description of all of the individual
multimedia assets from which an instructor can construct a custom
presentation. The IM also includes In-Class Activities that link to
sample products in the Instructors Survival Kit to make marketing
come to life in the classroom.

Test Bank
Our comprehensive bank of test questions is provided in Microsoft
Word for simple use by any instructor in any setting. EZ Test allows you
to create tests or quizzes in this easy-to-use program! Imagine being
able to create and access your test or quiz anywhere at any time. Now,
with EZ Test, instructors can select questions from the Test Bank or
author their own, and then print the test for paper distribution.

PowerPoint Presentations
The PowerPoint presentations feature slides that can be used and
personalized by instructors to help present concepts to students
efficiently.

Instructors Advertisements and Corporate


Videos Resource
The Instructors Advertisements and Corporate Videos Resource
consists of a collection of corporate videos on Asian companies and
television commercials.

Instructor Newsletter
The Instructor Newsletter has been developed for adopters of
Marketing in Asia, Second Edition. This newsletter is devoted to
providing innovative resources to help improve student learning,
offer timely marketing examples, and make class preparation easier.
The newsletter includes links to video clips from BusinessWeek and
other sources, synopses of articles with in-class discussion questions,
teaching tips, and discussion of pedagogical features of Marketing in
Asia, Second Edition. The newsletter is offered eight times during the
academic year and is available through e-mail and on our website,
www.mheducation.asia/olc/kerin.
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00a MktAsia_2edIT.indd 23

7/16/12 5:14 PM

Instructors Survival Kit


The Instructors Survival Kit contains product samples for use in the
classroom to illustrate marketing concepts and encourage student
involvement and learning. Todays students are more likely to learn
and be motivated by active participative experiences than by classic
classroom lecture and discussion. Marketing in Asia, Second Edition
utilizes product samples from both large and small firms that will
interest todays students. When appropriate, sample print and TV
ads are included among our PowerPoint Presentations.

AACSB Statement
The McGraw-Hill Companies is a proud corporate member of AACSB
International. Understanding the importance and value of AACSB
accreditation, Marketing in Asia, Second Edition recognizes the
curricula guidelines detailed in the AACSB standards for business
accreditation by connecting selected questions in the Test Bank to the
seven general knowledge and skill guidelines in the AACSB standards.
The statements contained in Marketing in Asia, Second Edition are
provided only as a guide for the users of this textbook. The AACSB
leaves content coverage and assessment within the purview of
individual schools, the mission of the school, and the faculty. While
Marketing in Asia, Second Edition and the teaching package make
no claim of any specific AACSB qualification or evaluation, we have
within Marketing in Asia, Second Edition labeled selected questions
according to the six general knowledge and skills areas.

Online Learning Center (OLC)


www.mheducation.asia/olc/kerin
A password-protected portion of the books website will be
available to instructors who adopt Marketing in Asia, Second
Edition. It features online access to the Instructors Manual, Test
Bank, PowerPoint presentations, videos, and newsletter. Instructors
can also view student
resources to make more
effective supplementary
assignments. For
students, this website
also provides rich
interactive resources to
help them learn how to
practice international
business, including
chapter quizzes.

xxiv instructor
new and revised
resources
asian content

00a MktAsia_2edIT.indd 24

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