VET Gam EssentialsNotice: Information on featured companies, organizations, and their products and services is included for educational purposes only and does not present or imply endorsement of the Marketing Essentials program. COVER: Geber86/Getty Images mheducation.com/prek-12 Copyright © 2016 McGraw-Hil Education Allrights reserved. No part ofthis publication may be reproduced or distributed in any form or by any means, or stored in a databose or retrieval system, without the priorwritten consent of MicGrawHil Educstion, ‘including but not limited to, network storage or transmission, or broadcast for distance learning, Sendallinauiries to: MeGraw-till Eoueation 2787 Orion Pi Columbus, OH 43240 IS6N:978-0-02-140110-9 MHID: 0-02-1401101 Printed inthe United States of America, 23456 789XXX21 2019181716Lois Schneider Farese is a nationally recognized secondary marketing educator and DECA advisor from New Jersey. She has been inwolved in organizing and running New Jersey regional and state DECA conferences and has also participated as series director and event manager at state and national DECA conferences. The State Officer Action Team presented Farese with the Outstanding Service Award for her dedication, professionalism, and commitment to New Jersey DECA in 1993, 1996, and 1999, as well as with the Honorary Life Membership Avrard in 1990 for setting a nexv level of professionalism for local advisors. She was inducted into the DECA Hall of Fame in 1996. Fatese was named “Teacher of the Year’ in 1981 by the Marketing Education Association of New Jersey. In 1993 and 1999, the University of Richmond recognized Farese for her contributions to the intellectual growth and achievernent of students ‘who graduated from her marketing program. in 2000 Farese was the nominee from Northern Highlands Regional High School for the Princeton Prize for Distinguished Secondary School Teaching, Farese holds a bachelor's degree in business and distributive education and two master's degrees from Montdlir State University in New Jersey. Grady Kimbrell, a nationally recognized author and consultant on career education, begon his career in education teaching high school business in Kansas. After relocating to Southern brell taught business courses and coordinated students’ in-class activities with their on-the-job experience. He later directed the work experience program for the high schools of Santa Barbara, California. A pioneer in the use of computers as a tool for educational research, Kimbrell has assisted school districts with a wide variety of research and evaluation activities. Kimbrell has served on numerous state instructional program committees and writing teams, designed educational computer programs, and produced educational films. Kimbrell holds degrees in business administration, educational psychology, and business education. Carl A. Woloszyk is a professor emeritus from Western Michigan University with an extensive background in marketing education. He has served as a state department of education consultant for marketing and cooperative education, DECA and Delta Epsilon Chi state advisor, a career and technical administrator for a regional education service agency, and a secondary marketing teacher-coordinator. Asa secondary marketing teacher-coordinator, he ‘taught beginning and advanced marketing courses. His students have received numerous awards at district, state, and national DECA conferences. Woloszyk has served on the board of directors for DECA; he has been president of the Marketing Education Foundation and of the ACTE Cooperative Work Experience Education Association. He is a board member of the Michigan Marketing Educetors’ Assocation. He has received the Marketing Education Professional Award from the national Marketing Education Association for Exemplary Service ‘to Marketing Education. Woloszyk holds a master's degree ftom Eastern Michigan University and an educational specialist degree in occupational education from the University of Michigan. He received his doctorate in business and distributive education from Michigan State University.Professional Development Director (retired) National DECA Reston, VA Jennifer Allen Marketing Teacher Wilson Central High School Lebanon, TN Shauna Binkerd Business/Marketing Educator Springville High School 5 igville, UT Rose M. Blevins DECA Advisor/SkillsUSA Advisor Kecoughtan High School Hampton, VA Diana Canton Marketing Education Teacher/DECA Advisor Cigarroa High School Laredo, ™ Tracy Conley Coolidge High School Coolidge, AZ Ron Cooper Advisor Development Washington DECA Seattle, WA Alana Eaton Business Education Teacher Kennard-Dale High School Fawn Grove, PA Marketing DECA Coordinator Justin & Kimball High School Dallas, TX Cassandra Jones Marketing Education Teacher-Coordinator Allen High School Allen, TX Shanna LaMar Exeautive Director Washington DECA Seattle, WA Ariana Langford Har-Ber High School Springdale, AR Kit Lynch Marketing Instructor Gahanna Lincoln High School Gahanna, OH Michelle Stortzum Marketing Instructor / LHS DECA Advisor Lindbergh High School St Louis, MO Shelly Stanton Billings West High School Billings, MT James Walker Todd Douglas MacArthur High Schoo! San Antonio, TX &:ow Pritotenterh Ta THE WORLD OF MARKETING CHAPTER 1 MARKETING 1S ALL AROUND US ‘SECTION 1.1 SECTION 1.2 SECTION 1.3 CHAPTER 1 Marketing and the Marketing Concept . . The Importance of Marketing Fundamentals of Marketing Review and Activities CHAPTER 2 THE MARKETING PLAN ‘SECTION 2.1 SECTION 2.2 CHAPTER 2 Marketing Planning Market Segmentation Review and Activities MARKETING INTERNSHIP PROJECT SWOT Analysis for a Coffee andTea Chain ....TABLE OF CONTENTS 4 ECONOMICS 56 CHAPTER 3 POLITICAL AND ECONOMIC ANALYSIS 58 SECTION 3.1 Whatlson Economy? .....................2....60 SECTION 3.2 Understanding the Economy . . . 70 CHAPTER 3 Review and Activities... .. 78 CHAPTER 4 GLOBAL ANALYSIS 82 SECTION 4.1 InfernationalTrade....... 84 SECTION 4.2 The Global Marketplace. . . sees 92 CHAPTER 4 Review and Activities... .. vevteeeees 102 Tw MARKETING INTERNSHIP PROJECT AMarketing Plan fora Recession-ProofToy..........106 Ua} BUSINESS AND SOCIETY ays) CHAPTER 5 THE FREE ENTERPRISE SYSTEM 110 SECTION 5.1 Traits of Private Enterprise... ...........eec02. 0.112 SECTION 5.2 Business Opportunities 122 CHAPTERS —Reviewand Activities 0... e ee eee eee eee 130 CHAPTER 6 LEGAL AND ETHICAL ISSUES 134 SECTION 6.1 Governmentand LOWS... 000. ceceeceee sees 186 SECTION 6.2 Sociol Responsibilities and Ethics. ................146 CHAPTER 6 —Reviewand Activities eee ee cece eee TBM CT MARKETING INTERNSHIP PROJECT ‘An Eco-Project for a Sports Footwear Company 158TABLE OF CONTENTS a SKILLS FOR MARKETING CHAPTER 7 __ BASIC MATH SKILLS SECTION 7.1 Math Fundamentals. ..... SECTION 7.2 _ Interpreting Numbers . CHAPTER 7 — Review and Activities . CHAPTER 8 COMMUNICATION SKILLS SECTION 8.1 Defining Communication . SECTION 8.2 Speech ond Wilting . . CHAPTER 8 —Reviewand Activities . CHAPTER 9 TECHNOLOGY FOR MARKETING 210 SECTION 9.1 Computer Applications... . 212 SECTION 9.2 Technology and Marketing . ceeeee 218 CHAPTER 9 —Reviewand Activities... 00... ceeceeeeeeee 226 CHAPTER 10 INTERPERSONAL SKILLS 230 SECTION 10.1. Personal interactions 232 SECTION 10.2 Leadership and Teamwork . 240 CHAPTER 10 Review and Activities... .. 246 CHAPTER 11 __ MANAGEMENT SKILLS 250 SECTION 11.1 Management Structures. ....... SECTION 11.2 Management Functions . . . CHAPTER 11 — Review and Activities MARKETING INTERNSHIP PROJECT Financial Literacy 101 to Teach Money Smarts... . .. 270TABLE OF CONTENTS UNITS SELLING YAP CHAPTER 12 SELLING OVERVIEW 274 SECTION 12.1 The Sales Function... . . feet 276 SECTION 12.2 Sales Careers......... : - 284 CHAPTER 12 Review and Activities .... . -.290 CHAPTER 13 __ BEGINNING THE SALES PROCESS 294 SECTION 13.1 Preliminary Activities ..... +296 SECTION 13.2 First Steps ofa Sale. ..... - 306 CHAPTER 13 Reviewand Activities ..... 314 CHAPTER 14 _ PRESENTING THE PRODUCT 318 SECTION 14.1 Product Presentation .... . - 320 SECTION 14.2 Objections............. seen 6 826 CHAPTER 14 Review and Activities ....... 02.0... cee eee ee 884 \GHAPTER.15. -- CLOSING THE SALE. 2-1 == one senna ens 898. SECTION 15.1 How to Close a Sale 340 SECTION 15.2 Customer Satisfaction ... . + 848, CHAPTER 15 Review and Activities ...... - 358 Ree Toe ee ee eae nee ee eee eee ee cossresseses. SECTION 16.1 Sales Transactions . . + 364, SECTION 16.2 Cash Registers. ROMOBOR 0372) SECTION 16.3 Purchasing, Invoicing, nd Shipping 380 CHAPTER 16 Reviewand Activities .......... oo 884 Cy MARKETING INTERNSHIP PROJECT ASales Plan for a Sports Product . nO.2O202.0385) B®.TABLE OF CONTENTS ia PROMOTION 390 CHAPTER 17 PROMOTIONAL CONCEPTS AND STRATEGIES 392 SECTION 17.1 The PromotionOl MIX... sce cseceee eee eee 39M SECTION 17.2 Types of Promotion. settee tree AO4 CHAPTER 17 Review and Activities bocce cee sceeeee ee AT2 CHAPTER 18 _ VISUAL MERCHANDISING AND DISPLAY 416 SECTION 18.1 Display Fectures. 2.2.0... cccseceeeeeeeee TB SECTION 18.2 Artistic Design vc teeeeveeeeee es 26 CHAPTER 18 Review andACIIVINES 2.0... eee ceee eevee ABA CHAPTER 19 ADVERTISING 438 SECTION 19.1 Advertising Media... 2... ccceeceee eevee eA SECTION 19.2 Media Rates... 200.2. cc ceeeseeeee eee ee ABQ CHAPTER 19 Review and Activiies 2... cece ceev eee eee A60 CHAPTER 20 PRINT ADVERTISEMENTS 464 SECTION 20.1. Elaments of Advertising 466 SECTION 20.2 Advertising Layout ..........cccsecesveeeeessA76 CHAPTER 20 Reviow and Activities 2.0... .ccseccev eee see ABQ (2s warxetine InreRnsuip PROJECT Promotional Campaign for a Hybrid Automobile .... ..486 (1 e \ es, | g a i 5TABLE OF CONTENTS iad DISTRIBUTION CEE CHAPTER 21 CHANNELS OF DISTRIBUTION 490 SECTION 21.1 Distribution oo... cece cece eee eee M92 SECTION 21.2 Distribution Planning .. . 502 CHAPTER 21 Review and Activities... 508 CHAPTER 22 PHYSICAL DISTRIBUTION 512 SECTION 22.1 Transportation . +514 SECTION 22.2 Inventory Storage . wee 524 CHAPTER 22 Review and Activities... . 530 CHAPTER 23 PURCHASING 534 SECTION 23.1 The Role of the Buyer... + 886 SECTION 23.2 The Purchasing Process... veer SAA CHAPTER 23° Review and Activities ©... eee eevee eee 550 CHAPTER 24 STOCK HANDLING AND INVENTORY CONTROL 554 SECTION 24.1. Stock Handling 556 SECTION 24.2 Inventory Control ...... ; 2 564 CHAPTER 24 Review and Activities . + 874 (0s marxetine internsuP PROJECT A Distribution Plan for a Growing Business. ....... . 678 erminenee Oban ta, TABLE OF CONTENTS at) PRICING 580 CHAPTER 25 PRICE PLANNING 582 ‘SECTION 25.1 Price Planning Issues... . . 2. 584 SECTION 25.2 Price Planning Factors... . ++ 590, CHAPTER 25 Review and Activities .... . - 598 CHAPTER 26 _ PRICING STRATEGIES 602 SECTION 26.1 Basic Pricing Policies ..... + 604, SECTION 26.2 Pricing Process Strategies . 2. 612 CHAPTER 26 Review and Activities .... . +» 620 CHAPTER 27 _ PRICING MATH 624 SECTION 27.1 Calculating Prices ....... + 626 SECTION 27.2 Calculating Discounts .. . . + 638, CHAPTER 27 Reviewand Activities ......... 00... cece eee 644 ue} MARKETING INTERNSHIP PROJECT ‘A Pricing Plan for New Greeting Cards . . - 648TABLE OF CONTENTS UNIT 9 MARKETING INFORMATION MANAGEMENT 650 CHAPTER 28 MARKETING RESEARCH 652 SECTION 28.1 Marketing Information ......... 00.0... 200005. 654 SECTION 28.2 Issues in Marketing Research. ........ . - 662, CHAPTER 28 Reviewand Activities ..............6.. 0.62... ..672 CHAPTER 29 CONDUCTING MARKETING RESEARCH 676 SECTION 29.1 Marketing Research... 2.2... ....0e0 eee 002s 678 SECTION 29.2 The Marketing Survey..............6 . - 688 CHAPTER 29 Review and Activities ....... 2.0.0... e ee 696 MARKETING INTERNSHIP PROJECT Research Study on Mobile Phones................700 areola oane B®.TABLE OF CONTENTS UY PRODUCT AND SERVICE MANAGEMENT ry CHAPTER 30___ PRODUCT PLANNING 704 SECTION 30.1 Product Development..............cecceeeee 5-706 SECTION 30.2 Sustaining Product Sales... 2.02... ..2 ee. .716 CHAPTER 30 Reviewand Activities... cece ee eee 2M CHAPTER 31 __ BRANDING, PACKAGING, AND LABELING 728 SECTION 31.1 Branding .............. cect ee eee 780 SECTION 31.2 Packaging and Labeling. «0.0.0.6... cee eee 738 CHAPTER 31 Review NdACHWVIHIeS eee eee cee eee TAO CHAPTER 32 EXTENDED PRODUCT FEATURES 750 SECTION 32.1 Warranties. ......... 0.00 ce eee eee ence ee 762 SECTION 32.2 Credit....... cece nec eee e760 CHAPTER 32 ReviewandAotiviies ... 00.0... eee cece cee eee 6B MARKETING INTERNSHIP PROJECT Create a Design for a New Pel Product.............772 Lc keto &) aTABLE OF CONTENTS UNIT 11 TaN aaa Eile 3 774 CHAPTER 33 ENTREPRENEURIAL CONCEPTS 7716 SECTION 33.1 Enttepreneutship .....2....scececesvesesees TTB SECTION 33.2 Business Ownership. veer LBA CHAPTER 33. Review and Activities beeen eeee ees T92 CHAPTER 34 RISK MANAGEMENT 796 SECTION 34.1. Business Risk Management 1198 SECTION 34.2 Handling Business Risks. 804 CHAPTER 34 Review and Activities 812 CHAPTER 35 DEVELOPING A BUSINESS PLAN 816 SECTION 36.1 The Business Plon . . . 818 SECTION 36.2 Marketing and Financial Plons ..........6.++4., 828 CHAPTER 35 Review and Activities 2.0.2... eccee ees ee 886 CHAPTER 36 FINANCING THE BUSINESS 840 SECTION 36.1. Financial Analysis 842 SECTION 36.2 Financial Statements vote vee veers 1850 CHAPTER 36 Reviowand Activities 2.0.2... ce cece eee eee 862 (CO) Ss warxetine isrernsuip PRosecT ‘Business Pian for o New Online Business ....... ..866 Og tor dire B®.TABLE OF CONTENTS 4 CAREER DEVELOPMENT 868 CHAPTER 37 IDENTIFYING CAREER OPPORTUNITIES 870 SECTION 37.1. Define Goals 872 SECTION 37.2 Careers in Marketing 882 CHAPTER 37 Review and Activities 886 CHAPTER 38 FINDING AND APPLYING FOR A JOB 890 SECTION 38.1 Finding a Job 892 SECTION 38.2 Applying for a Job 898 CHAPTER 38 Review and Activities 910 MARKETING INTERNSHIP PROJECT A Digital Résumé for a Marketing Internship 94 Career Skills Handbook 916 Math Skills Handbook 924 Glossary 946 Index 961 &) osFEATURES TABLE OF CONTENTS Project-Based Learning ‘These project-based features will help you get involved in the world of marketing. Each projec: indudes a related worcsheet activity and a rubric you can use to evaluate your work “SWOT Analysis foro Coffe and Tea Ch Matting Plan fo a RacessonProotTy “APticng Pian for New Greeting Cards sn Ee ject 0 Spots FeotweorCampeny * niece sty of Noble Eons FinancialLitsracy 101 foTeach MoneySmars.......270 Create a Design for a New Pet Product... ASales Plan for o Sports Product... . . . +388 ‘ABusiness Plan for a New Online Business Prortlonal Campaign fora Hyori Auomoblle......486 Dg Résumé for Maregifership. Discovery Project Keeping Customers . <5 ThePtinsAdvertsement. sce. cee 465 The Right Mix. 29 From Producer fo Final User... 401 Risks and Rewards... . 59 Trarsporiaion Systems 513 Marketing in an Emerging Court. 83 From Producer fo Final User. ........ 535 Being SelFEmployed 00.2... cee 111 Technology for Stock and Inventory ......- 555 Social Responsibility Begins With You. .. 135 Analysis of Pricing Produ. vee eee 583 Using Basic Math Every Day. 163 Pricing Eleotonics.. ees eee e eevee 603 Business Communication .. 189 Pricing Markups and Discounts .......... 625 Software Applications . cee 211 The Purpose of Marketing Research. ...... 653 Interpersonal Relationships 231 The Marketing Survey 67 Management SI@S...0.....0ccecesseeeceeees251 NOW PODUCHPION 2. ees cece eee eee seers JO 1 a Career in Seling forYou?, .. 275 Brand Personally... esses eee eee m9 ‘SWOT Anolyss for on Athatie Shoo 295 Panning Extended Product Foafures .. 781 Selling Bock-toSohoo! Products. . 319 Planning aStar+-Up Business. .. 77 Closing the Sole and Customer Sctistaction. . 339 ——_RetaIRisks IT Survey of Math for Sales ... ce 363 Start-Up Planning. . ce 87 Promoting Products 393 Preparing Financial Documen's. BAI The Right resentation. .......2+sesesssevsesees4I7 Begin Personcl Career Profle ....-.......+.++ B71 The Advertising PON... es. ecece sveeceeees439 —— BeginYour CoreerPortoll.. 2. ..ec. eee vee 89T ®«Marketing in the Real World itis important to know how marketing conceots actually work in business and global economies. These features will show you how real comparias faced marketing challenges and how the economies in different counties and cutures can affect people eround the world RKETING CASE STUDIE! Johnson & Johnson: Target Marketing 10 AT&T Hands On we TB Refocusing Nikon Cameras 33 Direct's NFL Sunday Tetet. 499 Retailing in a Shifting Economy 67 UPS Raceswith NASCAR oo 518 Global Phitanthropists 87 ‘Frito-Lay Buys Local wo 599 Instant Photo Nostaigia 118 Festa Movement so 870 Tide's "loads of Hone” campaign 15) Shoppers’ Response to Higher Prices. 596 GEICO Campaign 71 Caribou Coftee at Home. we 614 Golorade Simplifies with*@" 20 Priced a! 99¢1 ws 682 The Ortite Hovereratt 224 Giant Eagle's Fualperks 666 MLB's “Beyond Baseball” Campaign 242 Palm Pre with the “Flow” oo 681 FedEx:"We Understand” 259 Style Meets Sound wT Adidas’s Sales Automation. 280 EN Branding Sawy wo 786 Olympus: Selling Medical Tachnalagy. 303 Rewarding Credit 766 [Bins Pesentation Centers. 329 FatRate Shipping from the U.S. Postol Service... ...787 Selling Fiiness at Equinox 353 Insuring Sports and Events. 806 Wendy's Nutritional Options. 376 Toke Plan:Got Questions? 822 Ladies and Gentlemen... Good Samaritans + Smartphones 845 Tho Boatlos:Rock Banal 40 Seling Digital Cameras we 879 5 Gum:Interactive Display 422 Nonster Motivates oo 895 Under Armour Shoes! . seen AA Ben dh er OR Coe eer Ce a Dr ere ee Mongolia Understanding Mongolia ............ en ena) Doe ee cee DOr Ce ee Ce Dem Cea CR Lo err PR Te Te Saudi Arabla Teaching Abroad. Ce ee