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BASIC A Marketing Strategy
Planning Approach

MARKETING
NINETEENTH EDITION

Place
PROMOTION
Product
price
William D. Perreault, Jr.
Joseph P. Cannon
E. Jerome McCarthy
Authors of Basic
Marketing, 19/e
William D. Perreault, Jr.
William D. Perreault, Jr., is Kenan
Professor of Business at the University
of North Carolina. Dr. Perreault is the
recipient of the two most prestigious
awards in his field: the American
Marketing Association Distinguished
Educator Award and the Academy of
Marketing Science Outstanding
Educator Award. He also was selected
for the Churchill Award, which honors
career impact on marketing research.
He was editor of the Journal of Marketing Research and has been
on the review board of the Journal of Marketing and other
journals.
The Decision Sciences Institute has recognized Dr. Perreault
for innovations in marketing education, and at UNC he has re-
ceived several awards for teaching excellence. His books include
two other widely used texts: Basic Marketing and The Marketing
Game!
Dr. Perreault is a past president of the American Marketing
Association Academic Council and served as chair of an advisory
committee to the U.S. Census Bureau and as a trustee of the
Marketing Science Institute. He has also worked as a consultant
to organizations that range from GE and IBM to the Federal
Trade Commission and Venezuelan Ministry of Education.
Joseph P. Cannon
Joseph P. Cannon is professor of
marketing at Colorado State University.
He has also taught at the University of
North Carolina at Chapel Hill, Emory
University, In stituto de Empresa
(Madrid, Spain), INSEAD (Fontaine-
bleau, France), and Thammasat
University (Bangkok, Thailand). He
has received several teaching awards
and honors.
Dr. Cannon’s research has been
published in the Journal of Marketing, Journal of Marketing
Research, Journal of the Academy of Marketing Science, Journal of
iii
Operations Management, Journal of Personal Selling and Sales
Management, Journal of Public Policy and Marketing, Antitrust
Bulletin, and the Academy of Management Review among others.
He is a two-time recipient of the Louis W. and Rhona L. Stern
Award for high-impact research on interorganizational issues. He
has also written many teaching cases. He has served on the
editorial review boards of the Journal of Marketing, Journal of the
Academy of Marketing Science, Journal of Personal Selling and Sales
Management, and Journal of Marketing Education. He has received
several distinguished reviewer awards. He served as chair of the
American Marketing Association’s Interorganizational Special
Interest Group (IOSIG). Before entering academics, Dr. Cannon
worked for six years in sales and marketing for Eastman Kodak
Company.
E. Jerome McCarthy
E. Jerome McCarthy received his Ph.D.
from the University of Minnesota and
was a Ford Foundation Fellow at the
Harvard Business School. He has
taught at the Universities of Oregon,
Notre Dame, and Michigan State. He
was honored with the American Mar-
keting Association’s Trailblazer Award
in 1987, and he was voted one of the
“top five” leaders in marketing thought
by marketing educators.
Besides publishing various articles, he is the author of books
on data processing and social issues in marketing. He has been a
frequent presenter at marketing conferences in the United States
and internationally.
In addition to his academic interests, Dr. McCarthy has been
involved in guiding the growth of organizations in the United
States and overseas—both as a consultant and as a director. He
has also been active in executive education. However, throughout
his career, his primary interests have been in (1) “converting”
students to marketing and effective marketing strategy planning
and (2) preparing teaching materials to help others do the same.
This is why he has spent a large part of his career developing and
improving marketing texts to reflect the most current thinking in
the field.
Preface
Basic Marketing Is Designed to
Satisfy Your Needs
This book is about marketing and marketing strategy
planning. And, at its essence, marketing strategy planning
is about figuring out how to do a superior job of satisfying
customers. We take that point of view seriously and believe
in practicing what we preach. So you can trust that this
new edition of Basic Marketing—and all of the other teach-
ing and learning materials that accompany it—will satisfy
your needs. We’re excited about this 19th edition of Basic
Marketing and we hope that you will be as well.
In developing this edition, we’ve made hundreds of big
and small additions, changes, and improvements in the
text and all of the supporting materials that accompany it.
We’ll highlight some of those changes in this preface, but
first it’s useful to put this newest edition in a longer-term
perspective.
Building on Pioneering Strengths
Basic Marketing pioneered an innovative structure—
using the “four Ps” with a managerial approach—for the
introductory marketing course. It quickly became one of
the most widely used business textbooks ever published
because it organized the best ideas about marketing so that
readers could both understand and apply them. The unify-
ing focus of these ideas is: how does a marketing manager
decide which customers to target, and what is the best way
to meet their needs?
Over many editions of Basic Marketing, there have been
constant changes in marketing management and the mar-
ket environment. As a result, we have made ongoing
changes to the text to reflect marketing’s best practices
and ideas. Throughout all of these changes, Basic
Marketing and the supporting materials that accompany
it have been more widely used than any other teaching
materials for intro ductory marketing. It is gratifying
that the four Ps framework has proved to be an organizing
structure that has worked well for millions of students
and teachers.
The success of Basic Marketing is not the result of a single
strength—or one long-lasting innovation. Other textbooks
have adopted our four Ps framework, and we have
continuously improved the book. And the text’s four Ps
framework, managerial orientation, and strategy planning
iv
focus have proved to be foundation pillars that are
remarkably robust for supporting new developments in
the field and innovations in the text and package. Thus,
with each new edition of Basic Marketing we have
continued to innovate to better meet the needs of
students and faculty. In fact, we have made ongoing
changes in how we develop the logic of the four Ps and
the marketing strategy planning process. As always,
though, our objective is to provide a flexible, high-quality
text and choices from comprehensive and reliable support
materials—so that instructors and students can accomplish
their learning objectives.
What’s Different about Basic Marketing?
The biggest distinguishing factor about Basic Marketing
is our integrative approach to creating a teaching and
learning package for the introductory marketing course.
This integration makes it easier to learn about marketing,
teach marketing, and apply it in the real world. For
many students, the introductory marketing course will
be the only marketing class they ever take. They need to
come away with a strong understanding of the key concepts
in marketing and how marketing operates in practice.
So in Basic Marketing: (1) we examine both what mar-
keting is and how to do it; (2) we integrate special topics
like services, international, ethics, and more, across the
text with coverage in almost every chapter; and (3) we
deliver a supplements package completely developed or
closely managed by the authors—so each part links
closely with the textbook content. See Exhibit P-1. The
integration of these three elements delivers a proven
product for instructors and students. Let us show you
what we mean—and why and how instructors and students
benefit from the Basic Marketing teaching and learning
package.
Marketing operates in dynamic markets. Fast-changing
global markets, environmental challenges and sustainability,
and the blurring speed of technological advances—including
an explosion in the use of digital tools by both consumers
and businesses—are just a few of the current trends con-
fronting today’s marketing manager. While some marketing
texts merely attempt to describe this market environment,
Basic Marketing teaches students analytical abilities and
how-to-do-it skills that prepare them for success. To propel
Exhibit P–1 and they work. And because they are interesting and
Basic Marketing Integrates Marketing understandable, they motivate students to see marketing as
the challenging and rewarding area it is. In the end, the
Basic Marketing teaching and learning package prepares
students to analyze marketing situations and develop
exceptional marketing strategies—not just recite endless
Integrating Integration of sets of lists.
the what? & special topics In contrast to many other marketing textbooks, we em-
how? of across phasize careful integration of special topics. Some textbooks
marketing chapters treat “special” topics—like marketing relationships, inter-
national marketing, services marketing, the Internet, digi- v
Basic
Marketing tal lifestyles, nonprofit organizations, marketing ethics,
social issues, and business-to-business marketing—in sepa-
rate chapters (or parts of chapters). We deliberately avoid
Integrated, author- doing that because we are convinced that treating such

BASIC MARKETING 19e

developed topics separately leads to an unfortunate compartmental-
teaching & ization of ideas. We think they are too important to be
learning package isolated in that way. For example, to simply tack on a new
chapter on e-commerce or marketing applications on the
Internet completely ignores the reality that these are not
just isolated topics but rather must be considered broadly
across the whole fabric of marketing decisions. Conversely,
students in this direction, we deliberately include a variety there is virtually no area of marketing decision making
of examples, explanations, frameworks, conceptual organizers, where it’s safe to ignore the impact of e-commerce, the

Perreault / Cannon / McCarthy

exercises, cases, and how-to-do-it techniques that relate to
our overall framework for marketing strategy planning.
Taken together, these different learning aids speed the
development of “marketing sensibility” and enable students
to analyze marketing situations and develop marketing
plans in a confident and meaningful way. They are practical
Internet, or information technology. The same is true with
other topics. So they are interwoven and illustrated
throughout the text to emphasize that marketing think-
ing is crucial in all aspects of our society and economy.
Exhibit P-2 shows the coverage of some key topics across
specific chapters.

Exhibit P–2 Coverage of Special Topics Across Chapters*

Special Topic Chapter

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Marketing relationships X X X X X X X X X X X X X X X X X X X X
International X X X X X X X X X X X X X X X X X X X
Ethics X X X X X X X X X X X X X X X X X X X X
Services X X X X X X X X X X X X X X X X X X X X
B2B X X X X X X X X X X X X X X X X X X X
Technology, Internet, X X X X X X X X X X X X X X X X X X X X
“Big Data” & digital lifestyle
Environment & X X X X X X X X X X X X X X X X
sustainability
Non-profits X X X X X X X X X X X X X
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Quality X X X X X X X X X X X X X X X X X
Customer value X X X X X X X X X X X X X X X X X X X X
Marketing’s link X X X X X X X X X X X X X X X X X X X X
with other functions
*“X” indicates coverage in the form of a section of the chapter, example, illustration, or discussion.
 The teaching and learning materials—designed and
developed by the authors—are integrated to work effectively
with Basic Marketing. We don’t tack on extras that have
been outsourced and don’t integrate well with our package.
Because of this, you (the instructor) have flexible tools that
allow you to teach marketing your way. Marketing can be
studied and used in many ways, and the Basic Marketing
text material is only the central component of our Profes-
sional Learning Units System (P.L.U.S.) for students and
teachers. Instructors and students can select from our units
to develop their own personalized teaching and learning
systems. Our objective is to offer you a P.L.U.S. “menu” so
that you can conveniently select units you want—and
disregard what you do not want. Many combinations of
units are possible depending on course and learning objec-
tives. Later in this Preface we highlight each P.L.U.S.
element—and the full details can be found in the
discussion of the Instructor’s Resource CD in the
Instructor’s Manual.
Students only take the introductory marketing course
once. They deserve the benefits of a highly innovative yet
proven set of integrated learning materials. Our teaching
and learning materials—from the textbook to the iPod vid-
eos to the test question bank to the online materials—have
been constantly updated yet are proven to work for genera-
tions of students. Do you want to use an unproven text-
book with your students?
What’s New in This Edition of
Basic Marketing?
There are several big changes to this edition of Basic
Marketing and hundreds of smaller ones. Basic Marketing is
quick to recognize the many dramatic changes in the mar-
ket environment and marketing strategy—we are also
quick to jump on new pedagogical innovations. So here is
a quick overview of what we changed for the 19th edition
of Basic Marketing.
Shorter and easier to read. Students and instructors
appreciate concise coverage. We have had to make some
difficult decisions, because one instructor’s cut is another’s
favorite topic. We may have cut one of your pet topics. The
biggest change we made was to eliminate a chapter. Our
chapter-long treatment of global demographic issues is gone.
These topics have not been eliminated, but are now covered in
an abbreviated form in chapters 3 and 5. Where appropriate,
we have included PowerPoint slides that cover these topics so
you can still address them in class if you choose.
Social media and digital lifestyles. A major thrust of
the 18th edition of Basic Marketing addressed customers’
digital lifestyles. The growth in smartphone ownership and
overall use of the Internet continues to march on, having
an impact on all areas of marketing. We continued to make
updates to reflect this market dynamic.
“Big data” and its implications. One of the most pro-
found recent changes in marketing has been the explosion
vi
of what is being called “big data”—data sets too large and
complex to work with typical database management tools.
Organizations are using this to more narrowly target indi-
vidual customers with tailored marketing mixes. It raises
strategic and ethical questions. Almost every chapter in the
book has a reference to this trend.
LearnSmart adaptive learning technology. We are ex-
cited to add McGraw-Hill’s LearnSmart adaptive learning
technology to Basic Marketing. Students love LearnSmart.
It is a great self-assessment tool that helps them know if
they are “getting it.” Plus, the adaptive technology provides
remediation (through additional questions or even points
them back to the text) or moves them more quickly
through the review if they are demonstrating they get it.
We highly recommend you add this feature to your classes.
Up-to-date content, examples, exhibits, and images.
We continually update Basic Marketing with each new edi-
tion. Students and instructors appreciate current, relevant
examples that demonstrate important marketing concepts.
We update each and every chapter opening case scenario.
There are dozens of new examples and specific concepts
spread throughout the book. While we don’t have space to
list all of these changes, we can provide you with some
highlights of the more significant changes with this edition
of Basic Marketing:
Chapter 1. We wrote a new chapter opener that features
Nike, one of our students’ favorite brands. We added an
extended example in the text describing how Chipotle adds
value for its customers. Triple bottom line is a new concept
and key term.
Chapter 2. We significantly modified our coverage of
lifetime customer value and customer equity. Customer
lifetime value is a new key term. A new boxed teaching
note looks more closely at differentiation.
Chapter 3. This has traditionally been one of the longest
chapters in the book—so we made an effort to streamline
coverage of all topics. The competitor, technology, and cultural
and social environment sections were updated and re-written.
The chapter now includes some of the demographic informa-
tion previously covered in the now eliminated demographics
chapter. This is where you will now find coverage of GDP/
GNI, population, and generational changes like the graying of
America, baby boomers, and generations X and Y. Sustainable
competitive advantage and gross national income are new
key terms.
Chapter 4. A new chapter opener case features LEGO.
The boxed teaching note in this chapter is the first
extended treatment of “big data”—with a look at how
Target stores uses big data to predict what customers will
want to buy.
Chapter 5. We now cover income here (previously in
the demographics chapter), integrating it with our coverage
of economic factors influencing consumer behavior. Draw-
ing on Charles Duhigg’s The Power of Habit, we adapted
our treatment of learning and introduced an extended ex-
ample on Febreze. We moved coverage of the family life
cycle to this chapter. Cloud storage service Dropbox is fea-
tured as an extended example of the adoption process.
Chapter 6. The organizational buying chapter includes
a number of minor changes, with more current examples
and more concise coverage. We further recognize the grow-
ing role of social media and online search as key sources of
information for organizational buyers.
Chapter 7. Big data provides a natural extension to our
traditional coverage of marketing information systems, data
warehouses, and decision support systems. Consequently we
give students an important foundation on big data in the
market research chapter. A new boxed teaching note “Big
Data. Big Opportunity” offers context and application. Re-
lated topics, including sentiment analysis are covered later in
the chapter along with a new Internet exercise on the topic.
An extended example describes the marketing research
Heinz used to develop new ketchup packages.
Chapter 8. We have increased coverage of goods and
service combinations, product lines, and the “battle of the
brands.” An extended example on Coca-Cola replaces one
on Yahoo! New coverage on international trademarks
spurred by problems Apple had with “iPad” in China.
Chapter 9. We have been reading a lot about innovation.
New thinking abounds; so we beefed up coverage of this
critical area. We have new sections on 1) idea generation,
2) “the pivot” as key to new product introduction, 3) stimu-
lating growth in mature markets (featuring the recent story
of Philadelphia Cream Cheese), and different types of inno-
vations from the customer’s perspective (with some great
new examples). A new Internet exercise features innovation
consulting firm IDEO. A new boxed teaching note looks
more closely at nature as a source of ideas through biomim-
icry. We also describe how big data is important to product
quality. A tradeoff in adding these new topics is a cutback in
our treatment of product quality.
Chapter 10. The use of multiple channels of distribu-
tion continues to grow—and so does our coverage of this
trend and related topics here and in Chapter 12. We added
discussions of firms using both direct and indirect channels
and enhanced coverage of multichannel distribution. There
is a new Internet exercise covering franchising.
Chapter 11. There were a few minor changes to this
chapter. We describe how transportation companies utilize
big data to lower costs.
Chapter 12. A new chapter opening case features
Macy’s—a retailer leading a renaissance of the department
store. Macy’s use of big data and effective integration of
brick-and-mortar and online retailing fuel its revival.
Online retailing continues to evolve—and this section has
received major revision including extensive coverage of
showrooming and big data. We also discuss the ethics of
big data and retailing.
Chapter 13. We refined our coverage of promotion ob-
jectives and cut back on direct response promotion. We add
a distinction between inbound and outbound promotion.
We updated our treatment of budgeting for promotion.
Chapter 14. A new boxed teaching note describes the
use of analytics to match customer service reps with
customers—a kind of matchmaking that helped Assurant
Solutions significantly increase customer retention. We up-
dated our coverage of personal selling and information
technology.
Chapter 15. We updated lots of numbers in this chap-
ter. Our revised coverage of media reflects changes being
brought on by technology and big data. Online advertising
became “Digital Advertising” with greater attention to ad-
vertising on both the Internet and cell phones. We also vii
cover how big data is used for social targeting. Our ground-
breaking treatment of social media as a form of publicity
has been well-received; we built on that to cover new meth-
ods of social media.
BASIC MARKETING 19e
Chapter 16. We debated swapping out the opening case
on Flip because Cisco discontinued the video camera. But
this case covers the breadth of pricing issues in a way that
students really seem to like, so while it is now “classic,” it
still works. New topics address the use of big data for
dynamic pricing, which is now being used in more
product-markets.
Chapter 17. We cut sections on target-return pricing,
marginal analysis in oligopoly markets, and price leaders.
Perreault / Cannon / McCarthy
Chapter 18. Trends in big data and technology have
had a big impact on implementation—especially in the
speed of implementation and adaptation of strategy. The
latest changes are reflected in the revised chapter.
Chapter 19. Our cross-functional integration chapter now
explicitly considers information systems—a major new section
to the chapter. While we cover IT throughout the book, in this
chapter we demonstrate key IT issues related to developing and
implementing marketing plans. Related to this, we examine
big data, data security (as related to marketing), and enterprise
resource planning (ERP) systems. We also updated the human
resources section to reflect new research.
Chapter 20. We add coverage of the role of the Internet
in keeping companies honest. Big data has lots of issues
around privacy, so we added a new section and a boxed
teaching note “Marketers Use Big Data—Creepy or Cool”
that helps students understand what this trend means.
Twenty Chapters—with an Emphasis on
Marketing Strategy Planning
The emphasis of Basic Marketing is on marketing
strategy planning. Twenty chapters introduce the important
concepts in marketing and help the student see marketing
through the eyes of the manager. The organization of the
chapters and topics is carefully planned. But we took
special care in writing so that
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• It is possible to rearrange and use the chapters in many
different sequences—to fit different needs.
• All of the topics and chapters fit together into a clear,
overall framework for the marketing strategy planning
process.
Exhibit P–3 Basic Marketing and the Marketing Strategy Planning Process
Chapters 1, 2, & 7

Chapters 5 & 6

Chapters
8&9
Context: External Market Environment

Chapters
Customers
10, 11, & 12

Segmentation CT PL
and Targeting DU A
S.

CE
PRO
W. Chapters
Company TARGET

PROM
O. 18, 19 & 20
T.

E
IC
Differentiation OT
PR ION
and Positioning

Competitors Chapters
13, 14, & 15
Chapters
16 & 17

Chapter 4

Chapter 3

Broadly speaking, the chapters fall into three groupings.
The first seven chapters introduce marketing and a broad
view of the marketing strategy planning process. We intro-
duce the marketing strategy planning process in Chapter 2
and use this framework as a structure for our coverage of
marketing. See Exhibit P-3. Chapters 3–7 cover topics
such as the market environment, competition, segmenta-
tion, differentiation, and buyer behavior, as well as how
marketing information systems and research provide infor-
mation about these forces to improve marketing decisions.
The second part of the text goes into the details of plan-
ning the four Ps, with specific attention to the key strategy
decisions in each area. Finally, we conclude with an inte-
grative review and an assessment of marketing’s challenges
and opportunities.
The first chapter deals with the important role of
marketing—focusing not only on how a marketing
orientation guides a business or nonprofit organization in
the process of providing superior value to customers but
also on the role of macro-marketing and how a market-
directed economy shapes choices and quality of life for
consumers. Chapter 2 builds on these ideas with a focus on
the marketing strategy planning process and why it involves
narrowing down to the selection of a specific target market
and blending the four Ps into a marketing mix to meet the
needs of those customers. With that foundation in place,
the chapter introduces an integrative model of the marketing
strategy planning process that serves as an organizing
framework for the rest of the text.
Chapter 3 introduces students to the importance of
evaluating opportunities in the external environments
affecting marketing. This chapter also highlights the critical
role of screening criteria for narrowing down from possible
opportunities to those that the firm will pursue. Then,
Chapter 4 shows how analysis of the market relates to
segmentation and differentiation decisions as well as the
criteria for narrowing down to a specific target market and
marketing mix.
You have to understand customers in order to segment
markets and satisfy target market needs. So the next two
chapters take a closer look at customers. Chapter 5 studies the
behavioral aspects of the final consumer market. Chapter 6
looks at how business and organizational customers—like
manufacturers, channel members, and government
purchasers—are similar to and different from final consumers.
Chapter 7 is a contemporary view of getting
information—from marketing information systems and
marketing research—for marketing planning. This chap-
ter includes discussion of how information technology—
ranging from intranets to speedy collection of market
research data—is transforming the marketing job. This
sets the stage for discussions in later chapters about how

viii
research and marketing information improve each area
of marketing strategy planning.
The next group of chapters—Chapters 8 through 17—
is concerned with developing a marketing mix out of the
four Ps: Product, Place (involving channels of distribution,
logistics, and distribution customer service), Promotion,
and Price. These chapters are concerned with developing
the “right” Product and making it available at the “right”
Place with the “right” Promotion and the “right” Price—to
satisfy target customers and still meet the objectives of the
business. These chapters are presented in an integrated,
analytical way—as part of the overall framework for the
marketing strategy planning process—so students’ think-
ing about planning marketing strategies develops logically.
Chapters 8 and 9 focus on product planning for goods
and services as well as managing product quality, new-
product development, and the different strategy decisions
that are required at different stages of the product life cycle.
We emphasize the value of an organized new-product de-
velopment process for developing really new products that
propel a firm to profitable growth. These chapters also de-
tail how quality management approaches can improve im-
plementation, including implementation of better service
quality.
Chapters 10 through 12 focus on Place. Chapter 10
introduces decisions a manager must make about using
direct distribution (for example, selling from the firm’s
own website) or working with other firms in a channel of
distribution. We put special emphasis on the need for
channel members to cooperate and coordinate to better
meet the needs of customers. Chapter 11 focuses on the
fast-changing arena of logistics and the strides that firms
are making in using e-commerce to reduce the costs of
storing, transporting, and handling products while im-
proving the distribution service they provide customers.
Chapter 12 provides a clear picture of retailers, wholesalers,
and their strategy planning, including exchanges taking
place via the Internet. This composite chapter helps
students see why the big changes taking place in retailing
are reshaping the channel systems for many consumer
products.
Chapters 13 through 15 deal with Promotion. These
chapters build on the concepts of integrated marketing
communications, direct-response promotion, and customer-
initiated digital communication, which are introduced in
Chapter 13. Chapter 14 deals with the roles of personal
selling, customer service, and sales technology in the promo-
tion blend. Chapter 15 covers advertising, publicity, and
sales promotion, including the ways that managers are taking
advantage of the Internet and other highly targeted media to
communicate more effectively and efficiently.
Chapters 16 and 17 deal with Price. Chapter 16 focuses on
pricing objectives and policies, including use of information
technology to implement flexible pricing; pricing in the
channel; and the use of discounts, allowances, and other
variations from a list price. Chapter 17 covers cost-oriented
and demand-oriented pricing approaches and how they fit in
today’s competitive environments. The careful coverage of
marketing costs helps equip students to deal with the renewed
cost-consciousness of the firms they will join.
Chapter 18 examines implementation and control with
an emphasis on the role of information technology. Then,
Chapter 19 deals with the links between marketing and
other functional areas. The marketing concept says that
people in an organization should work together to satisfy
customers at a profit. No other text has a chapter that ex-
plains how to accomplish the “working together” part of ix
that idea. Yet it’s increasingly important in the business
world today, so that’s what this important chapter is de-
signed to do.
The final chapter considers how efficient the marketing
BASIC MARKETING 19e
process is. Here we evaluate the effectiveness of both micro-
and macro-marketing—and we consider the competitive,
technological, ethical, and social challenges facing marketing
managers now and in the future. Chapter 20 also reinforces
the integrative nature of marketing management and reviews
the marketing strategy planning process that leads to creative
marketing plans.
Three appendices can be used to supplement the main
text material. Appendix A provides some traditional eco-
Perreault / Cannon / McCarthy
nomic analysis of supply and demand that can be a useful
tool in analyzing markets. Appendix B reviews some quan-
titative tools—or marketing arithmetic—which help mar-
keting managers who want to use accounting data in
analyzing marketing problems. Appendix B also reviews
forecasting as a way to predict market potential and sales
for a company’s product. Finally, many students like to
look at Appendix C—which is about career opportunities
in marketing.
The following sections include 44 cases. Eight of these
written cases supplement video cases available to instruc-
tors in their video package and online to students. Almost
all of the 36 short written cases have been updated with
new information to make sure they reflect the realities of
the current marketplace. The focus of these cases is on
problem solving. They encourage students to apply, and
really get involved with, the concepts developed in the text.
At the end of each chapter, we recommend particular cases
that best relate to that chapter’s content.
Teaching and Learning Your Way—
Elements of P.L.U.S.
Basic Marketing can be studied and used in many ways—
the Basic Marketing text material is only the central compo-
nent of our Professional Learning Units System (P.L.U.S.)
www.mhhe.com/fourps
for students and teachers. Instructors (and students) can se-
lect from our units to develop their own personalized sys-
tems. Many combinations of units are possible, depending
on course objectives. As a quick overview, in addition to the
Basic Marketing text, the P.L.U.S. package includes a variety
of new and updated supplements.
 Most of the instructor resources can be found on Instructor’s Manual for more ideas about how to
the Instructor’s Resource CD and the instructor side of the use the videos in class.
Online Learning Center. • Instructor’s Manual to Accompany Basic Marketing.
Beyond the Basic Marketing textbook, the key compo- This manual includes an overview of all the teaching/
nents of P.L.U.S. include learning units, as well as suggested answers to all ques-
tions, exercises, and assignments.
• Connect Marketing for Basic Marketing. This is one of
• Test Bank. Our test bank includes thousands of objec-
the most exciting developments—new with this edition of
tive test questions—every question developed or edited
Basic Marketing. Connect Marketing for Basic Marketing is
by the authors to ensure it works seamlessly with the
an online assignment and assessment solution that con-
text. McGraw-Hill’s EZ-Test program facilitates the
nects students with the tools and resources they’ll need to
creation of tests. We take great pride in having a test
achieve success. And McGraw-Hill has partnered with
bank that works for students and instructors.
®
Blackboard to deliver the content and tools directly
inside your learning management system. More details
• Online Learning Center: www.mhhe.com/fourps.
The website for the book provides access to a variety of
are provided in the next section of this preface.
student and instructor resources.
• “Teach the 4 Ps” blog for instructors. The blog
• Basic Marketing Cartridges for Blackboard and
provides links to online articles, blog posts, videos,
WebCT. Include Basic Marketing materials directly in
video clips, and commercials. The site is a great way to
your online course management program.
stay up-to-date and bring current content into your
classroom. Many of these posts will also appear on the Another set of resources is designed to be directly ac-
“Learn the 4 Ps” website that targets students. cessed by students usually via the web. Students can access
• Electronic Presentation Slides. Our “best in the busi- the learning resources at www.mhhe.com/fourps or in the
ness” multimedia lecture support package includes a Student Library of their class’ Connect Marketing website.
variety of materials. For each chapter there is a set of They include
PowerPoint presentations for a complete lecture that
• Self-Test Quizzes. These help students prepare for
includes television commercials and short video clip ex-
tests.
amples, examples of print advertisements that demon-
• Computer-Aided Problems. This easy-to-use spread-
strate important concepts, and questions to use with
sheet software program works with exercises at the end
“clickers” or simply to check if students are getting it.
of each chapter in the text to help develop analytical
We also have a set of archive slides with a high-quality
skills needed by today’s managers.
selection of ads and photos. NEW with this edition,
• Marketing Plan Coach. This online software tool
we have added more than 80 slides with embedded
helps students build marketing plans using materials
YouTube videos. Bring virtual guest speakers, viral
and concepts directly from the textbook. It was created
videos, case studies, and new ads to your classroom
by the authors specifically for use with Basic
presentations. The archive slides also include slides
Marketing.
with material that we may have cut from this edition
• “Learn the 4 Ps” Blog, Twitter, and Facebook Page.
of the book.
These offer links to current online articles, websites,
• Multimedia Lecture Support Guide. This guide
podcasts, and videos—providing motivated students
supports the presentation slides and includes detailed
more ways to learn about marketing.
lecture scripts, outlines, and archives.
• Learning with Ads. These are great for visual learners
• Videos and Video Cases. The video package has been
who can preview or study concepts from each chapter
updated with eight new videos—to give you 31 full-
and examine applications in real print ads. About 10 to
length videos. In addition, we have 138 short (1 to
15 ads per chapter.
4 minutes) video clips—many integrated into the
• Video Cases. Clips from video cases in the book.
PowerPoint presentation slides. See the Video

x
Teaching and Learning
Resources
Instructor’s Resource CD (IRCD)
ISBN 0077512472
This CD contains the Instructor’s Manual, a Test Bank,
®
and PowerPoint presentations.
Connect Instructor Library and Online
Learning Center
www.mhhe.com/fourps Access everything you need to
teach a great course through our convenient online
resource. A secured Instructor Library/Resource Center
stores your essential course materials to save you prep time
before class.
• Instructor’s Manual The Instructor’s Manual to
accompany this text is an all-inclusive resource
designed to support instructors in effectively
teaching the principles of marketing. This manual
includes an overview of all the teaching/learning
units, as well as suggested answers to all questions,
exercises, and assignments.
• Test Bank and EZ Test Online The Test Bank offers
more than 2,000 questions, which are categorized by
topic, level of learning (knowledge, comprehension, or
application), Learning Objectives, Bloom’s Taxonomy,
and accreditation standards (AACSB).
®
• PowerPoint Presentations The PowerPoint presenta-
tions feature slides that can be used and personalized
by instructors to help present concepts to the students
effectively. Each set of slides contains additional figures
and tables from the text.
• Videos and Video Cases McGraw-Hill provides
industry-leading video support to help students
understand concepts and see how they apply in the
real world. The video package has been updated
with eight new videos—to give you 31 full-length
videos. In addition, we have 138 short (1 to 4 min-
utes) video clips—many integrated into the Power-
Point presentation slides. See the Video Instructor’s
Manual for more ideas about how to use the videos
in class.
xi
• Marketing Plan Coach This online software tool
helps students build marketing plans using materials
and concepts directly from the textbook. It was
created by the authors specifically for use with Basic
Marketing.
• Learning with Ads These are great for visual learners
who can preview or study concepts from each chapter
and examine applications in real print ads. About 10 to
15 ads per chapter.
Teaching Options and Solutions
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1. Your life, simplified.
Single Sign-On: A single
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Integration: One click access to a wealth of
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are recorded in the Blackboard gradebook
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the spirit of academic freedom and openness.
Blackboard remains publisher independent, and
McGraw-Hill remains LMS (Learning Management
System) independent. The result makes our content,
engines and platform more usable and accessible,
with fewer barriers to adoption and use.
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6. McGraw-Hill and Blackboard can now offer you easy
access to industry-leading technology and content,
whether your campus hosts it, or we do. Be sure to ask
your local McGraw-Hill representative for details.
MHCampus™
McGraw-Hill Campus
is a new one-stop teaching
™ web tools for learning. CourseSmart users access and view
and learning experience
available to users of any learning management system.
This institutional service allows faculty and students to
enjoy single sign-on (SSO) access to all McGraw-Hill
Higher Education materials, including the award winning
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institution’s website. McGraw-Hill Campus provides ™
faculty with instant access to all McGraw-Hill Higher
Education teaching materials (e.g. eTextbooks, test banks,
PowerPoint slides, animations and learning objects, etc),
allowing them to browse, search, and use any instructor
ancillary content in our vast library at no additional cost to
instructor or students. Students enjoy SSO access to a variety
of free (e.g. quizzes, flash cards, narrated presentations, etc.)
and subscription based products (e.g. McGraw-Hill
Connect). With this program enabled, faculty and students
will never need to create another account to access
McGraw-Hill products and services. Learn more at
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McGraw-Hill Connect Plus Marketing
McGraw-Hill reinvents
the textbook-learning ex-
perience for today’s students with Connect Plus Marketing.
A seamless integration of an eBook and Connect provides
all of the Connect features plus the following:
• An integrated eBook, allowing for anytime, anywhere
online access to the textbook.
• Dynamic links between the problems or questions as-
signed to students and the location in the eBook where
that problem or question is covered.
• Powerful search function to pinpoint and connect key
concepts in a snap.
For more information about Connect, go to connect.
mcgraw-hill.com, or contact your local McGraw-Hill sales
representative.
CourseSmart
Learn Smart. Choose Smart.
CourseSmart is a new way for
faculty to find and review eText-
books. It’s also a great option for students who are interested in
accessing their course materials digitally, and saving money.
xii
CourseSmart offers thousands of the most commonly
adopted textbooks across hundreds of courses from a wide
variety of higher education publishers. It is the only place
for faculty to review and compare the full text of a textbook
online, providing immediate access without the environmen-
tal impact of requesting a print exam copy.
With the CourseSmart eTextbook, students can save
up to 45 percent off the cost of a printed book, reduce
their impact on the environment, and access powerful
their textbook online when connected to the Internet.
Students can also print sections of the book for maximum
portability. CourseSmart eTextbooks are available in one
standard online reader with full text search, notes, and
highlighting, and e-mail tools for sharing notes between
classmates. For more information on CourseSmart, go to
http://www.coursesmart.com.
Create
Instructors can now tailor
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With McGraw-Hill Create, www.mcgrawhillcreate.com,
instructors can easily rearrange chapters, combine material
from other content sources, and quickly upload and inte-
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Arrange the material to fit your teaching style. Order a
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mcgrawhillcreate.com today and register.
Tegrity Campus: Lectures 24/7
Tegrity Campus is a
service that makes class
time available 24/7 by auto-
matically capturing every lecture in a searchable format
for students to review when they study and complete
assignments. With a simple one-click start-and-stop process,
you capture all computer screens and corresponding audio.
Students can replay any part of any class with easy-to-use
browser-based viewing on a PC or Mac.
Educators know that the more students can see, hear,
and experience class resources, the better they learn. In fact,
studies prove it. With patented Tegrity “search anything”
technology, students instantly recall key class moments for
®
replay online, or on iPods and mobile devices. Instructors
can help turn all their students’ study time into learning
moments immediately supported by their lecture. To learn
more about Tegrity watch a 2-minute Flash demo at http://
tegritycampus.mhhe.com.
Assurance of Learning Ready
Many educational institutions today are focused on the
notion of assurance of learning, an important element of
some accreditation standards. Basic Marketing is designed
specifically to support instructors’ assurance of learning
initiatives with a simple, yet powerful solution.
Each test bank question for Basic Marketing maps to a
specific chapter learning outcome/objective listed in the
text. Instructors can use our test bank software, EZ Test
and EZ Test Online, to easily query for learning outcomes/
objectives that directly relate to the learning objectives for
their course. Instructors can then use the reporting features
of EZ Test to aggregate student results in similar fashion,
making the collection and presentation of assurance of
learning data simple and easy.
can e-mail our Product Specialists 24 hours a day to get
product training online. Or you can search our knowledge
bank of Frequently Asked Questions on our support web-
site. For Customer Support, call 800-331-5094, e-mail
hmsupport@mcgraw-hill.com, or visit www.mhhe.com/
support. One of our Technical Support Analysts will be
able to assist you in a timely fashion.
Responsibilities of Leadership
In closing, we return to a point raised at the beginning of xiii
this preface. Basic Marketing has been a leading textbook in
marketing since its first edition. We take the responsibilities of
that leadership seriously. We know that you want and deserve
the very best teaching and learning materials possible. It is our
commitment to bring you those materials—today with this

BASIC MARKETING 19e

edition and in the future with subsequent editions.
AACSB Statement We recognize that fulfilling this commitment requires a
process of continuous improvement. Revisions, updates, and
The McGraw-Hill
development of new elements must be ongoing—because
Companies is a proud
needs change. You are an important part of this evolution, of
corporate member of
this leadership. We encourage your feedback. The most
AACSB International.
efficient way to get in touch with us is to send an e-mail
Understanding the importance and value of AACSB
message to Joe.Cannon@colostate.edu. If you prefer the
accreditation, Basic Marketing recognizes the curricula
traditional approach, send a letter to Joe Cannon at

Perreault / Cannon / McCarthy

guidelines detailed in the AACSB standards for business
Colorado State University, College of Business, Fort
accreditation by connecting selected questions in the
Collins, CO 80528-1278, United States of America.
text and the test bank to the six general knowledge and
Thoughtful criticisms and suggestions from students
skill guidelines in the AACSB standards.
and teachers alike have helped to make Basic Marketing
The statements contained in Basic Marketing are provided
what it is. We hope that you will help make it what it will
only as a guide for the users of this textbook. The AACSB
be in the future.
leaves content coverage and assessment within the purview of
individual schools, the mission of the school, and the faculty.
William D. Perreault, Jr.
While the Basic Marketing teaching package makes no claim
Joseph P. Cannon
of any specific AACSB qualification or evaluation, we have
E. Jerome McCarthy
within Basic Marketing labeled selected questions according to
the six general knowledge and skills areas.

McGraw-Hill Customer Experience Group

Contact Information
At McGraw-Hill, we understand that getting the most
from new technology can be challenging. That’s why our
services don’t stop after you purchase our products. You

www.mhhe.com/fourps
Let’s Walk through
Your Basic Marketing
Textbook . . .

Basic Marketing Helps You Learn about Marketing

and Marketing Strategy Planning
At its essence, marketing strategy planning is about figuring out how to do a superior job
of satisfying customers. With that in mind, the 19th edition of Basic Marketing was devel-
oped to satisfy your desire for knowledge and add value to your course experience. Not only
will this text teach you about marketing and marketing strategy planning, but its design,
pedagogy, and supplements package were developed to work well with the text and a variety
of study situations.

Each person has a different approach to studying. Some may focus on reading that is
covered during class, others prefer to prepare outside of the classroom and rely heavily
on in-class interaction, and still others prefer more independence from the classroom.
Some are more visual or more “hands on” in the way they learn, and others just want
clear and interesting explanations. To address a variety of needs and course situations,
many hours went into creating and designing the Basic Marketing textbook and oth-
er learning materials. We highlight how you can use these materials in the following
section.

Take a moment now to learn more about all of the resources available to help you best
prepare for this course and—whether you plan to work in marketing or not—for your future
career.

xiv
xiv
Basic Marketing: An Innovative Marketing Experience
With 20 chapters that introduce the important concepts in marketing management, you will see all aspects of marketing
through the eyes of the marketing manager. The first seven chapters introduce marketing and give you a framework for
understanding marketing strategy planning in any type of organization, and then the next section of the text takes you into
planning the four Ps of marketing (Product, Place, Promotion, and Price) with specific attention to the key strategy deci-
sions in each area. The text concludes with a review and assessment of marketing’s challenges and opportunities.
Basic Marketing pioneered the “four Ps” approach to organize and describe managerial marketing for introductory market-
ing courses. This new edition covers the dynamic changes taking place in marketing management and the market environ-
ment. But this new edition helps you understand the changes taking place and reflects today’s best marketing
practices and ideas.
Start each chapter with an overview
Each chapter begins with an in-depth case study developed specifically to motivate your interest and highlight a real-life
example of the learning objectives and specific marketing decision areas covered in that chapter. Each case study is
accompanied by a list of learning objectives that will help you understand and identify important terms and concepts cov-
ered in the chapter. We recommend you read the opening case and learning objectives and then take just a few minutes to
skim through the chapter, check out the exhibits, pictures, and headings before reading the conclusion. This preview gives
you a picture of the chapter and how it fits together—and research shows that it helps increase your comprehension of the
reading.
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Marketing’s Value
CHAPTER ONE to Consumers, Firms,
and Society
When it’s time to roll out of bed in the morning, does
the alarm ringtone on your Samsung Galaxy smartphone
wake you, or is it your SiriusXM radio playing your favorite
satellite station? Is the station playing hip-hop, classical, or
country music—or perhaps a Red Cross ad asking you to
donate blood? Maybe you’ll start your day with a quick
run while wearing your Adidas hoodie and running shorts
and your favorite Nike running shoes. Then you could
meet a friend at Starbucks for coffee and a study session.
Oops, you slept in this morning and aren’t sure you have
time? Well maybe you should just throw on your Levi’s
jeans, shirt from Abercrombie and Fitch, and your favorite
Sperry Top-Sider shoes and grab a quick bite at home. Per-
haps you can find a Chiquita banana and a Lender’s Bagel
with cream cheese—or maybe a bowl of General Mills
Cheerios cereal and a glass of calcium-fortified Simply
Orange juice to start your day. If you hurry, your roommate
can give you a ride to school in her new Nissan Leaf, but
you might just have to take the bus that the city bought
from Mercedes-Benz.
When you think about it, you can’t get very far into a
day without bumping into marketing—and what the
whole marketing system does for you. It affects every
aspect of our lives—often in ways we don’t even consider.
In other parts of the world, people wake up each day
to different kinds of experiences. A family in rural Africa
may have little choice about what food they will eat or
where their clothing will come from. In some countries,
economic decisions are still made by government officials.
But in the world’s most developed countries, consumers
determine what’s on store shelves. If no one buys a par-
ticular color, size, or style, then companies no longer pro-
duce it. So you may have trouble finding Cheerios in
Tokyo, where they are more likely to eat Kokuho Rose
Rice for breakfast.
One brand found around the world is Nike. How has
Nike become the shoe of choice for so many professional
and casual athletes around the world? Is it the endorse-
ments from star athletes like LeBron James and Cristiano
Ronaldo? Maybe the constant innovations like the new
lightweight Flyknit running shoes? Do you think Nike’s
24,000 retailers play a part? What about all that advertising
xv
BASIC MARKETING 19e
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Perreault / Cannon / McCarthy
3
Nike does? And those three-minute videos that Nike posts
on YouTube can’t hurt—“My Time Is Now” racked up nine
million views in its first three days.
Almost 50 years ago Phil Knight and his college track
coach Bill Bowerman founded Blue Ribbon Sports (later
renamed Nike) to distribute Japanese running shoes. A
few years later they were designing, producing, and selling
athletic shoes. Today Nike is the 25th most valuable brand
in the world, with annual sales of more than $21 billion.
Part of its success comes from adapting its marketing
strategy to changing market conditions—but Nike hasn’t
always adapted quickly enough. Back in the early 1980s,
Nike was so focused on running shoes that it missed the
aerobics shoe craze and fell behind rival Reebok. Nike
profits plummeted so quickly that only aggressive cost-
cutting saved the company.
After Nike signed Michael Jordan to endorse its basket-
ball shoes in 1984, the Air Jordan line took the market by
storm. It didn’t hurt when Nike’s advertising agency came
up with the “Just Do It!” slogan and an advertising cam-
paign that covered television, magazines, and billboards
around the world. This helped carry Nike through the
1990s and its profits soared on rising sales aided by low-
cost foreign production.
However, in the late 1990s, the company came under
attack when it was reported that some of its suppliers used
child labor. At first Nike denied responsibility, claiming it
couldn’t control how its suppliers operated. But public pro-
test showed that society expected more from a large, suc-
cessful corporation, and Nike began to closely monitor its
suppliers’ labor practices.
Since then Nike’s social responsibility efforts have turned
around its reputation. For example, Nike leads a group of
10 partners in the GreenXchange, a web-based market-
place where member firms collaborate and share ideas to
foster sustainability. Nike’s Reuse-A-Shoe program turns
old shoes into Nike Grind, which is used as a surface on
playgrounds, gym floors, and running tracks.
These days Nike targets growth in emerging markets
like China. Nike’s goal is to sell $4 billion there by 2015—
almost doubling what it sold there in 2010. Nike has
adapted its marketing strategy for the Chinese market.
www.mhhe.com/fourps
 The exhibits, photos, and ads will help you understand the concepts . . .
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Exhibit 3–1 Marketing Strategy Planning, Competitors, Company, and External

Market Environment

CHAPTER 3
After introducing the Marketing Strategy Planning
Process model in Chapter 2, we begin each chapter

External Market Environment

Segmentation
and Targeting

Company
with an exhibit that clearly organizes the chapter’s
Competitors
59 content. The exhibit does two things that you should
notice. First, it shows how the topic in this chapter
fits as a piece in the larger marketing strategy plan-

Evaluating Opportunities in the Changing Market Environm

External Market
Company
• Objectives
Competitors
• Current
Environment
• Economic ning process—its fit with the rest of the content in the
• Resources • Prospective • Technological
• Political and legal
• Cultural and social
book. Second, the figure will show how that chapter’s
concepts fit together—another way to “preview” the
per28981_ch05_116-141.indd Page 135 Evaluating Opportunities
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• Screening criteria
• Planning grids
/201/MH01864/per28981_disk1of1/0078028981/per28981_pagefiles
chapter.
• Planning for multiple products

Best opportunities to pursue Exhibit 2–5 Product Place Promotion Price

Strategy Decision
Areas Organized by • Physical good • Objectives • Objectives • Objectives
the Four Ps • Service • Channel type • Promotion • Flexibility
• Features • Market blend • Level over
• Benefits exposure • Salespeople product life
• Quality level • Kinds of Kind cycle
• Accessories intermediaries Number • Geographic
• Installation • Kinds and Selection terms
• Instructions locations of Training • Discounts
per28981_ch04_086-115.indd Page 93 1/10/13 • Warranty
9:45 PM f-494 stores Motivation • Allowances
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• Product lines • How to handle • Advertising
The four Ps are just one way we organize • Packaging transporting Targets
• Branding and storing Kinds of ads
marketing concepts for you. We know that • Service levels Media type
• Recruiting Copy thrust
many students learn best with “conceptual Exhibit 4–3
intermediaries
• Managing
Prepared by
whom
organizers,” figures, charts, and tables that help Narrowing Down channels • Publicity
All customer needs
• Sales
to Target Markets
organize thinking and provide an easy way to promotion
Narrowing
down to
remember key concepts. When you see these Some generic market specific
product-
figures, study them for a minute and think market
about how they help you understand and learn One broad product-
market
new marketing concepts.
Segmenting into
Homogeneous (narrow)
possible target
product-markets
markets
Exhibit 5–8 An Expanded Model of Consumer Behavior
Marketing mixes All other stimuli

Single Multiple Combined Selecting target

target target target marketing
market markets markets approach
Economic needs Psychological variables Social influences Purchase situation

Consumer decision process

Routinized response per28981_ch05_116-141.indd Page 124 12/20/12 10:26 AM f-496 /201/MH01864/per28981_disk1of1/0078028981/per28981_pagefiles
Need Experience
Purchase after the
awareness decision
Problem solving purchase
• Information search
• Identify alternatives
• Set criteria
• Evaluate alternatives

Postpone decision

Feedback based on experience

Full-color photos and

current ads are carefully The Consumer Safety Institute
placed in every chapter. They in the Netherlands wants to
remind parents that children
provide a visual demonstration see those cleaning supplies
under the sink differently.
of key concepts and emphasize As consumers approached
important ideas discussed in this outdoor ad, the image
changed from the one on the
the chapter. left to the one on the right
(and back).

xvi
 Think critically about the issues facing marketing managers . . .

This book includes a variety of different opportunities for you to learn about the types of decisions facing real marketing
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managers. Stop and think about the Ethics Questions you confront in your reading. Visit the websites we call out in the
Internet Exercises and think about the questions posed. At the end of each chapter, we suggest some cases—which are
interesting situations faced by real marketers. You can find the cases near the end of the book.

You are a marketing assistant for Auntie Em’s Cookie Company, which makes and distrib- xvii
Ethics Question

utes packaged cookies through grocery stores. Your company recently ran a test market for a
new brand of low-fat cookies called Tastee DeeLites. The new brand meets government stan-
dards to be labeled and advertised as “low fat,” so the ads and package used in the test
market highlighted that benefit. Test-market sales were very promising. However, now a con-
sumer activist group has created a website (www.TasteeDeLIES.com) that claims Tastee
DeeLites package and ads are misleading because the product’s high calories make it even

BASIC MARKETING 19e

more fattening
per28981_ch05_116-141.indd Page 126 than most
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10:26 AMcookies.
f-496 Your boss has asked you to recommend how Auntie
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Em’s should handle this situation. Drawing on what you’ve learned about consumer behavior,
do you think consumers are being misled? Does your company have any responsibility to
respond to these charges? Should changes be made to the product, package, or promotion?

SUGGESTED CASES
1. McDonald’s “Seniors” Restaurant 10. Cooper’s Ice Center
3. NOCO United Soccer Academy 11. Running Room

Perreault / Cannon / McCarthy

8. Besitti’s Restaurant 12. DrJane.com—Custom Vitamins
9. Peaceful Rest Motor Lodge 30. Walker-Winkle Mills, Ltd.

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Explore special topics . . . a Zipcar app at the car

Follow a topic online with the Internet Exercises that let you see Zipcar—saving money and the environment and it automatically
unlocks. Grab the

how firms can use the web to enhance their marketing. And each Evolving needs, attitudes, and lifestyles are creating
opportunities for new transportation services. Many con-
sumers, whether captivated by the green movement or
keys from beneath the steering wheel, turn the igni-
tion and you’re ready to go.
Zipcar has identified different market segments and

chapter includes a boxed scenario to help you learn more about a simple economics, want to give up their cars—but some
have trouble handing over their keys.
Zipcar offers a solution. It provides a car-sharing ser-
particular marketing topic. vice that’s now available in dozens of big cities across the
United States, Canada, and the U.K. Car-sharing saves
both money and time. With monthly payments, insur-
ance, parking, gas, depreciation, and maintenance, the
cost of car ownership averages $8,000 a year. City dwell-
ers face the additional hassle of finding parking and
worrying about theft. Zipcar’s rates vary by city, but aver-
age $10 an hour or $70 a day. That’s a big difference
from car ownership!
Zipcar has worked hard to make car-sharing easy
and fun. Signing up is simple—go online, fill out an
application, and pay your $50 annual membership fee.
Zipcar checks the applicant’s driving record—and if he
passes, a Zipcard arrives in his mail a few days later.
g Renting a car is even simpler. A member (called a
GM and Nissan introduced all-electric cars. Malt-O-Meal breakfast cereals, a low-cost brand
Zipster) simply logs on to Zipcar’s website to find cars
in his area and make a reservation. Because cars are
that has always been packaged in bags, touted the environmental benefits of this packaging.
typically parked on a street, in gas stations, or in park-
ing lots throughout the city, they’re easy to locate and
Its “Bag the Box” campaign garnered publicity on a small budget. Many consumers haveusually nearby. At the reserved time, the Zipster simply
waves his Zipcard (with embedded radio frequency
positive attitudes toward identification technology) or his smartphone with
localized a marketing mix for each group. Some big city
neighborhoods appreciate the environmental benefits.
Here, most prefer driving a smaller and more economical
car like a Toyota Prius or Mini Cooper when they visit a
friend, though some want the convenience of a hatch-
back on a shopping trip. They’re proud of the Zipcar logo
on the car doors—it shows their green side and fellow
Zipsters wave when they drive by.
Zipsters in more upscale neighborhoods are offered a
selection of Volvos and BMWs. Zipcar found these cus-
tomers usually borrow cars for a big night out or to head
to the beach for the weekend. And they don’t like (so
they don’t get) the green sign on the car door.
You can also find Zipcars on more than 250 college
campuses—where students often don’t have a regular
need for a car and almost always have difficulty with park-
ing. Spreading a dozen Zipcars—like Scion xBs and Honda
Insight hybrids—across campus reduces the need for more
than a hundred parking spaces. In tight economic times,
campus administrations have responded enthusiastically
to a program that reduces traffic and parking problems.
Zipcar is growing quickly by providing an economical
and environmentally friendly solution to today’s transporta-
tion needs. More and more Zipsters are learning a new
way to get around—and they’re having fun doing it.11

brands that try to make a

Most marketers work
with existing attitudes
Internet Exercise
difference in this area.9
Climate Counts is a nonprofit organization that provides
Because consumer atti- information to help consumers make choices that have
tudes tend to be enduring, a positive impact on the planet. Go to the Climate
it’s usually more economical Counts website (www.climatecounts.org), click on
for marketers to work with the “Climate Scores” link, choose a market sector, and
www.mhhe.com/fourps

them than try to change
them. Changing negative at-
titudes is probably the most
difficult job marketers face.10
Ethical issues may arise Part of the marketing job
is to inform and persuade
consumers about a firm’s
compare the different companies. Do you think this
information will affect how consumers behave? Do you
think the information will affect how companies
behave? What will be the effect on consumer and
company behavior if some consumers use Twitter to
tweet ratings, or e-mail to share ratings with others?
Beyond the Book—Check out all the online resources for
Basic Marketing where you will find more interactivity and
more ways to . . .
. . . think about the Basic Marketing text book as the centerpiece of your learning experience. Through computers and
the Internet, there are many additional features to help you learn about marketing. We have designed the Basic Marketing
learning package to give you a variety of different ways to learn and study. So if you are looking for other pathways to learn-
ing, check out what you can find at the Online Learning Center (www.mhhe.com/fourps), Learn the 4 Ps website (www.
learnthe4ps.com), and through Connect Marketing for Basic Marketing. See Exhibit W-1.

Exhibit W–1 Online Resources in the Basic Marketing Learning Package

Online Learning
Center (OLC) Learn the 4 Ps Connect Marketing

Description Basic Blog, Twitter, and Available with some

Marketing site Facebook sites book packages.
Availability www.mhhe.com/fourps learnthe4ps.com See your instructor
Student Chapter Quizzes—10 multiple-choice x x
questions per chapter—check if you’re ready for
your next exam.
Computer-Aided Problems (CAPs)—easy-to-use x x
spreadsheet software program works with exercises
at the end of each chapter to develop analytical
skills needed by today’s managers.
Marketing Plan Coach—this online software tool x x
helps students build marketing plans by drawing on
concepts from Basic Marketing.
Learn the 4 Ps—Pick your favorite way to stay cur- x
rent with online articles, websites, podcasts, and
videos delivered on a blog, Twitter, and Facebook.
Connect Quizzes—20 multiple-choice questions per x
chapter—check if you’re ready for your next exam.
Learning with Ads—a great way to preview x
concepts from each chapter and see how they are
applied in real print ads.
Video Cases—clips from video cases in the book x
LearnSmart—An adaptive learning system designed x
to help students learn faster, study more efficiently,
and retain more knowledge.
Connect Homework—Homework exercises (avail- x
able with some book packages—instructor set-up
required).

xviii
Available for free at the Basic Marketing website (www.mhhe.com/fourps)

xix

BASIC MARKETING 19e

Perreault / Cannon / McCarthy
Help me study for my next test!
The Basic Marketing website has Student
Chapter Quizzes—10 self-test questions
for each chapter.

Learn how marketing managers

use numbers and spreadsheets
to analyze data and make
marketing decisions!
Our Computer-Aided Problems (we
call them CAPs) allow you to apply
concepts from the book while you de-
velop and hone analytical skills need-
www.mhhe.com/fourps

ed by today’s marketing managers. The

CAPs are also available in the student
resources area of Connect Marketing
for Basic Marketing.
I want to write a marketing plan!
Check out the Marketing Plan Coach—it connects the concepts in your textbook with a real marketing plan. This website
was designed by the authors of Basic Marketing—so it really works with your book. The Marketing Plan Coach is also avail-
able in the student resources area of Connect Marketing for Basic Marketing.

Stay current at Learn the 4 Ps—we

have a blog (www.learnthe4ps.com),
Twitter feed (@learnthe4ps), and
Facebook page (www.facebook.
com/learnthe4ps.com).

xx
Connect® Marketing for Basic Marketing—
More Interactivity and More Ways to Learn
Connect Marketing is a premium resource—it may be included in the package your instructor chose for your textbook.
Connect Marketing for Basic Marketing includes some of the same materials you can find at the Online Learning Center for
Basic Marketing: 1) student chapter quizzes, 2) Computer-Aided Problems (CAPs), and 3) Marketing Plan Coach. In ad-
dition, in Connect Marketing, you can find premium materials: 1) Connect quizzes, 2) Learning with Ads, 3) Video Cases,
4) LearnSmart, and 5) Connect assignments.

What do I get with Connect Marketing? xxi

1. Connect Quizzes—study for

that next test with 20 multiple-
choice questions per chapter.

BASIC MARKETING 19e

Perreault / Cannon / McCarthy
2. Learning with Ads—a great
way to preview ideas from each
chapter. You can look through
print ads and read comments for
ideas about how a chapter’s
concepts are applied by real
companies. Great for visual
learners.
www.mhhe.com/fourps
 3. Video Cases—get ready access
to video clips from our video
cases. Listen to and watch
successful marketing in action.

4. LearnSmart™—
LearnSmart is an adaptive
learning system designed
to help you learn faster,
study more efficiently,
and retain more
knowledge for greater
success.

xxii
5. Connect® Assignments—Connect
Marketing assignments give you
interactive and engaging exercises. xxiii
You get to apply the concepts you
have learned in the book and you
get immediate feedback.

BASIC MARKETING 19e

Perreault / Cannon / McCarthy
www.mhhe.com/fourps
Acknowledgments
Basic Marketing has been influenced and improved by the
inputs of more people than it is possible to list. We do,
however, want to express our appreciation to those who have
played the most significant roles, especially in this edition.
We are especially grateful to our many students who
have criticized and made comments about materials in
Basic Marketing. Indeed, in many ways, our students have
been our best teachers.
We owe our greatest debt of gratitude to Lin Davis. The
book probably wouldn’t exist if it weren’t for her—because
without her help it would have been just too overwhelming
and we’d have quit! Lin has been part of this team for more
than 25 years. During that time, she has made contribu-
tions in every aspect of the text and package. Over the
years she spent countless hours researching photos and case
histories, and she critiqued thousands of manuscript pages
through countless revisions of the text and all the accompa-
nying materials. She has reviewed, edited, and critiqued
every word we’ve written. Her hard work, positive attitude,
and dedication to quality throughout the whole process is
without match. Lin cut back on the time she put into this
edition of Basic Marketing as she moved into semi-retirement.
Yet her mark on this project is indelible. We could not have
asked for a better friend and colleague.
Many improvements in recent editions were stimulated
by feedback from a number of colleagues around the coun-
try. Their feedback took many forms. In particular, we
would like to recognize the helpful contributions of:
Cliff Ashmead Abdool, CUNY College of Staten Island
Roshan (Bob) Ahuja, Ramapo College of New Jersey
Thomas Ainscough, University of South Florida
Ian Alam, Ramapo College of New Jersey
Mary Albrecht, Maryville University
David Andrus, Kansas State University at Manhattan
Chris Anicich, Broome Community College
Maria Aria, Missouri State University
April Atwood, University of Washington
Ainsworth Bailey, University of Toledo
Turina Bakker, University of Wisconsin
Jeff Bauer, University of Cincinnati—Batavia
Leta Beard, Washington University
Amy Beattie, Nichols College of Champlain
Cathleen Behan, Northern VA Community College
Patty Bellamy, Black Hills State University
Suzeanne Benet, Grand Valley State University
xxiv
Shahid Bhuian, Louisiana Tech University
John S. Bishop, Jr., Ohio State University
David Blackmore, University of Pittsburgh
Ross Blankenship, University of California Berkeley
Maurice Bode, Delgado Community College
Jonathan Bohlman, Purdue School of Management
William J. Bont, Grand Valley State University
Laurie Brachman, University of Wisconsin
Kit Brenan, Northland Community College
John Brennan, Florida State University
Richard Brien, De Anza College
Elten Briggs, University of Texas—Austin
Denny Bristow, St. Cloud State University
Susan Brudvig, Ball State University
Kendrick W. Brunson, Liberty University
Derrell Bulls, Texas Women’s University
Helen Burdenski, Notre Dame College of Ohio
Nancy Bush, Wingate University
Carmen Calabrese, University of North Carolina—Pembroke
Catherine Campbell, University of Maryland University College
James Carlson, Manatee Community College
Donald Caudill, Bluefield State College
Karen Cayo, Kettering University
Kenny Chan, California State University—Chico
E. Wayne Chandler, Eastern Illinois University
Chen Ho Chao, Baruch College, City University of New York
Valeri Chukhlomin, Empire State College
Margaret Clark, Cincinnati State Technical and Community College
Paris Cleanthous, New York University—Stern School
Thomas Cline, St. Vincent College
Gloria Cockerell, Collin County Community College
Linda Jane Coleman, Salem State College
Brian Connett, California State University—Northridge
Craig Conrad, Western Illinois University
Barbara Conte, Florida Atlantic University
Sherry Cook, Southwest Missouri State
Matt Critcher, University of Arkansas Community College—Batesville
Tammy Crutchfield, Mercer University
Brent Cunningham, Jacksonville State University
Madeline Damkar, Cabrillo Community College/CSUEB
Charles Davies, Hillsdale College
J. Charlene Davis, Trinity University
Scott Davis, University of California at Davis
Dwane Dean, Manhattan College
Larry Degaris, California State University
Nicholas Didow, University of North Carolina-Chapel Hill
Susan Higgins DeFago, John Carroll University
Oscar W. DeShields, Jr., California State University—Northridge
Les Dlabay, Lake Forest College
Glenna Dod, Wesleyan College
Gary Donnelly, Casper College
Paul Dowling, University of Utah
Laura Downey, Purdue University
Phillip Downs, Florida State University
Michael Drafke, College of DuPage
John Drea, Western Illinois University
Colleen Dunn, Bucks Community College
Sean Dwyer, Louisiana Technical University
Mary Edrington, Drake University
Steven Engel, University of Colorado
Keith Fabes, Berkeley College
Peter Fader, University of Pennsylvania
Ken Fairweather, LeTourneau University
Phyllis Fein, Westchester Community College
Lori S. Feldman, Purdue University
Mark Fenton, University of Wisconsin—Stout
Jodie L. Ferguson, Virginia Commonwealth University
Richard Kent Fields, Carthage College
Lou Firenze, Northwood University
Michael Fitzmorris, Park University
Richard Fogg, Kansas State University
Kim Folkers, Wartburg College
Renee Foster, Delta State University
Frank Franzak, Virginia Commonwealth University
John Gaffney, Hiram College
John Gaskins, Longwood University
Carol Gaumer, University of Maryland; Univeristy College
Karl Giulian, Fairleigh Dickinson University-Madison
Thomas Giese, University of Richmond
J. Lee Goen, Oklahoma Baptist University
Brent G. Goff, University of Houston—Downtown
David Good, Central Missouri State University
Pradeep Gopalakrishna, Pace University
Rahul Govind, University of Mississippi
Norman Govoni, Babson College
Gary Grandison, Alabama State University
Wade Graves, Grayson County College
Mitch Griffin, Bradley University
Mike Griffith, Cascade College
Alice Griswold, Clarke College
Barbara Gross, California State University, Northridge
Susan Gupta, University of Wisconsin at Milwaukee
John Hadjmarcou, University of Texas at El Paso
Khalil Hairston, Indiana Institute of Technology
Adam Hall, Western Kentucky University
Bobby Hall, Wayland Baptist University
Joan Hall, Macomb Community College
David Hansen, Schoolcraft College
Dorothy Harpool, Wichita State University
LeaAnna Harrah, Marion Technical College
James Harvey, George Mason University
John S. Heise, California State University—Northridge
Lewis Hershey, University of North Carolina—Pembroke
James Hess, Ivy Tech Community College
Wolfgang Hinck, Louisiana State University—Shreveport
Pamela Homer, California State University—Long Beach
Ronald Hoverstad, University of the Pacific
John Howard, Tulane University
Doug Hughes, Michigan State University-East Lansing
Deborah Baker Hulse, University of Texas at Tyler
Janet Hunter, Northland Pioneer College
Phil Hupfer, Elmhurst College
Hector Iweka, Lasell College
Annette Jajko, Triton College/College of DuPage
Carol Johanek, Washington University
Timothy Johnston, University of Tennessee at Martin
Keith Jones, North Carolina A&T State University
Sungwoo Jung, Saint Louis University
Fahri Karakaya, University of Massachusetts
Gary Karns, Seattle Pacific University
Pat Karush, Thomas College
Eileen Kearney, Montgomery County Community College
xxv
James Kellaris, University of Cincinnati
Robin Kelly, Cuyahoga Community College
Courtney Kernek, Texas A&M University—Commerce
Brian Kinard, PennState University-University Park
Rob Kleine, Ohio Northern University
BASIC MARKETING 19e
Ken Knox, Ohio State University-Athens
Kathleen Krentler, San Diego State University
Dmitri Kuksov, Washington University
Jean Laliberte, Troy State University
Tim Landry, Kutztown University of Pennsylvania
Geoffrey Lantos, Oregon State University
Linda Lamarca, Tarleton State University
Kevin Lambert, Southeast Community College
Richard LaRosa, Indiana University of Pennsylvania
Perreault / Cannon / McCarthy
Donald Larson, The Ohio State University
Dana-Nicoleta Lascu, Richmond University
Debra Laverie, Texas Tech University
Marilyn Lavin, University of Wisconsin—Whitewater
Freddy Lee, California State University—Los Angeles
Steven V. LeShay, Wilmington University
David Levy, Bellevue University
Doug Livermore, Morningside College
Lori Lohman, Augsburg College
Paul James Londrigan, Mott Community College
Guy Lochiatto, California State University
Sylvia Long-Tolbert, University of Toledo
Terry Lowe, Heartland Community College
Harold Lucius, Rowan University
Navneet Luthar, Madison Area Technical College
Richard Lutz, University of Florida
W. J. Mahony, Southern Wesleyan University
Rosalynn Martin, MidSouth Community College
Phyllis Mansfield, Pennsylvania State University—Erie
James McAloon, Fitchburg State University
Lee McCain, Shaw University
Christina McCale, Regis University
Michele McCarren, Southern State Community College
Kevin McEvoy, University of Connecticut—Stamford
Rajiv Mehta, New Jersey Institute of Technology
Rajiv Mehta, Truman State University
Amit Mukherjee, Providence College
Sanjay Mehta, Sam Houston State University
Matt Meuter, California State University—Chico
www.mhhe.com/fourps
Michael Mezja, University of Las Vegas
Margaret Klayton Mi, Mary Washington College
Herbert A. Miller, Jr., University of Texas—Austin
Linda Mitchell, Lindon State College
Ted Mitchell, University of Nevada, Reno
Robert Montgomery, University of Evansville
Todd Mooradian, College of William and Mary
Kelvyn A. Moore, Clark Atlanta University
Marlene Morris, Georgetown University
Brenda Moscool, California State University—Bakersfield
Ed Mosher, Laramie Community College
Reza Motameni, California State University—Fresno
Steve Mumsford, Gwynedd-Mercy College
Clara Munson, Albertus Magnus
Thomas Myers, University of Richmond
Cynthia Newman, Rider University
Philip S. Nitse, Idaho State University at Pocatello
J. R. Ogden, Kutztown University
David Oh, California State University—Los Angeles
Sam Okoroafo, University of Toledo
Jeannie O’Laughlin, Dakota Wesleyan University
Louis Osuki, Chicago State University
Daniel Padgett, Auburn University
Esther S. Page-Wood, Western Michigan University
Karen Palumbo, University of St. Francis
Terry Paridon, Cameron University
Terry Paul, Ohio State University
Sheila Petcavage, Cuyahoga Community College
Stephen Peters, Walla Walla Community College
Man Phan, Comsumnes River College
Linda Plank, Ferris State University
Lucille Pointer, University of Houston—Downtown
Brenda Ponsford, Clarion University
Joel Poor, University of Missouri
Tracy Proulx, Park University
Anthony Racka, Oakland Community College
Kathleen Radionoff, Cardinal Stritch University
Daniel Rajaratnam, Baylor University
Catherine Rich-Duval, Merrimack College
Charles W. Richardson, Jr., Clark Atlanta University
Lee Richardson, University of Baltimore
Daniel Ricica, Sinclair Community College
Brent Richard, Ramapo College of New Jersey
Darlene Riedemann, Eastern Illinois University
Sandra Robertson, Thomas Nelson Community College
Kim Rocha, Barton College
Amy Rodie, University of Nebraska—Omaha
Carlos Rodriguez, Governors State University
Robert Roe, University of Wyoming
Ann R. Root, Florida Atlantic University
Ann R. Root, Florida Atlantic University-Boca Raton
Mark Rosenbaum, Northern Illinois University
Donald Roy, Middle Tennessee State University
Joel Saegert, University of Texas at San Antonio
Nate Scharff, Grossmont College
Henry Schrader, Ramapo College of New Jersey
C. M. Sashi, Florida Atlantic University
Erika Schlomer-Fischer, California Lutheran University
Lewis Schlossinger, Community College of Aurora
Charles Schwepker, Central Missouri State University
Murphy Sewell, University of Connecticut—Storrs
Kenneth Shamley, Sinclair College
Doris Shaw, Northern Kentucky University
Donald Shifter, Fontbonne College
Jeremy Sierra, New Mexico State University
Lisa Simon, California Polytech—San Luis Obispo
Rob Simon, University of Nebraska
xxvi
James Simpson, University of Alabama in Huntsville
Aditya Singh, Pennsylvania State University—McKeesport
Mandeep Singh, Western Illinois University
Jill Slomski, Mercyhurst College
Robert Smoot, Lees College
Don Soucy, University of North Carolina—Pembroke
Roland Sparks, Johnson C. Smith University
Gene Steidinger, Loras College
Jim Stephens, Emporia State University
Tom Stevenson, University of North Carolina
Geoffrey Stewart, University of Louisiana at Lafayette
Karen Stewart, The Richard Stockton College of New Jersey
Stephen Strange, Henderson Community College
Randy Stuart, Kennesaw State University
Rajneesh Suri, Drexel University
John Talbott, Indiana University
Uday Tate, Marshall University
A. J. Taylor, Austin Peay State University
Scott Taylor, McHenry County College
Janice Taylor, Miami University
Kimberly Taylor, Florida International University
Steven Taylor, Illinois State University
Jeff Thieme, Syracuse University
Scott Thompson, University of Wisconsin—Oshkosh
Dennis Tootelian, California State University—Sacramento
Gary Tschantz, Walsh University
Fran Ucci, Triton College/College of DuPage
Sue Umashankar, University of Arizona
David Urban, Virginia Commonwealth University
Kristin Uttech, Madison Area Technical College
Peter Vantine, Georgia Tech
Steve Vitucci, Tarleton State University
Sharon Wagner, Missouri Western State College
Suzanne Walchli, University of the Pacific
Jane Wayland, Eastern Illinois University
Danny “Peter” Weathers, Louisiana State University
John Weiss, Colorado State University
M. G. M. Wetzeis, Universiteit Maastrict, The Netherlands
Fred Whitman, Mary Washington College
Judy Wilkinson, Youngstown State University
Phillip Wilson, Midwestern State University
Robert Witherspoon, Triton College
John Withey, Indiana University—South Bend
Brent Wren, Manhattanville College
Jim Wong, Shenandoah University
Joyce H. Wood, N. Virginia Community College
Newell Wright, James Madison University
Joseph Yasaian, McIntosh College
Gary Young, Worcester State College
We’ve always believed that the best way to build consis-
tency and quality into the text and the other P.L.U.S. units
is to do as much as possible ourselves. With the growth of
multimedia technologies, it’s darn hard to be an expert on
them all. But we’ve had spectacular help in that regard.
The lecture-support PowerPoints have been a tremen-
dous effort over many editions. We appreciate the efforts of
Jay Carlson, Mandy Noelle Carlson, David Urban, Milt
Pressley, and Lewis Hershey for their creative work on the
lecture-support PowerPoint presentation slides.
 Nick Childers at Shadows and Light Creative Services
has been the guru behind the scenes in production work on
the video package for many editions. He also worked with
us in developing the first versions of our CDs. Nick Child-
ers and Debra Childers continue to play an important role
not only in the videos but in multimedia innovations.
For several editions, Judy Wilkinson has played a big
role as producer of the video series for the book. In that
capacity, she worked closely with us to come up with ideas,
and she provided guidance to the talented group of mar-
keting professors and managers who created or revised vid-
eos for this edition. Judy also is the author of several
outstanding video segments. We express respect for and
deep appreciation to Judy for her work on the video series.
Of course, like other aspects of Basic Marketing, the
text. In particular, Lindsey Meredith, Lynne Ricker, Stan
Shapiro, Ken Wong, and Pascale G. Quester have all had a
significant impact on Basic Marketing.
The designers, artists, editors, and production people at
McGraw-Hill/Irwin who worked with us on this edition
warrant special recognition. All of them have shared our
commitment to excellence and brought their own individ-
ual creativity to the project. First, we should salute Chris-
tine Vaughan, who has done a great (and patient) job as
production manager for the project. Without her adaptive
problem solving, we could not have succeeded with a (very) xxvii
rapid-response production schedule—which is exactly
what it takes to be certain that teachers and students get
the most current information possible.
Gabriela Gonzalez worked as development editor on

BASIC MARKETING 19e

video series has evolved and improved over time, and its
current strength is partly due to the insights of Phil
Niffenegger, who served as producer for our early video ef-
forts. The video series also continues to benefit from the
contributions of colleagues who developed videos in earlier
editions. They are
Gary R. Brockway Linda Mothersbaugh
James Burley Michael R. Mullen
this edition; her insight and project management skills are
much appreciated. Our executive editor, Sankha Basu, pro-
vides a valuable perspective on the Basic Marketing fran-
chise. His ideas have had a great impact on the book.
The layout and design of the book included a great
team of professionals. Keith McPherson is a long-time cre-
ative and valued contributor to Basic Marketing. He is a
great talent and we sincerely appreciate his past efforts that
continue to be reflected in the book’s design. We sincerely

Perreault / Cannon / McCarthy

David Burns Phillip Niffenegger
appreciate the talents of Laurie Entringer who created the
Debra Childers Deborah Owens
Martha O. Cooper Thomas G. Ponzurick interior and cover for this edition of Basic Marketing. We
Carolyn Costley George Prough also appreciate Mike Hruby, who again tracked down per-
Angie Fenton Peter Rainsford missions for photos and ads we selected to use to illustrate
W. Davis Folsom Jane Reid important ideas. Kendra Miller helped edit this edition of
Pam Girardo Clinton Schertzer the book and brought new energy and insight along with a
Brenda Green Roger Schoenfeldt sharp eye for detail.
Douglas Hausknecht Thomas Sherer Our marketing manager, Donielle Xu, has brought cre-
Scott Johnson Jeanne M. Simmons ativity, energy, and great ideas to the book. Her assistant,
Bart Kittle Walter Strange Liz Steiner, has also been extremely helpful.
Gene R. Lazniak Jeff Tanner Our families have been patient and consistent support-
Bill Levy Ron Tatham
ers through all phases in developing Basic Marketing. The
Charles S. Madden Rollie O. Tillman
Don McBane Carla Vallone support has been direct and substantive. Pam Perreault and
W. Glynn Mangold Robert Welsh Chris Cannon have provided valuable assistance and more
Becky Manter Holt Wilson encouragement than you could imagine. Our kids—
Robert Miller Poh-Lin Yeou Suzanne, Will, Kelly, Ally, and Mallory—provide valuable
J. R. Montgomery suggestions and ideas as well as encouragement and support
while their dads are too often consumed with a never-ending
Faculty and students at our current and past academic set of deadlines.
institutions—Michigan State University, University of We are indebted to all the firms that allowed us to re-
North Carolina, Colorado State University, Emory, Notre produce their proprietary materials here. Similarly, we are
Dame, University of Georgia, Northwestern University, grateful to associates from our business experiences who
University of Oregon, University of Minnesota, and Stanford have shared their perspectives and feedback and enhanced
University—have significantly shaped the book. Professor our sensitivity to the key challenges of marketing manage-
Andrew A. Brogowicz of Western Michigan University ment. In that regard, we especially acknowledge Kevin
contributed many fine ideas to early editions of the text Clancy, Peter Krieg, and their colleagues at Copernicus
www.mhhe.com/fourps

and supplements. Neil Morgan, Charlotte Mason, Rich
Gooner, Gary Hunter, John Workman, Nicholas Didow,
Barry Bayus, Ken Manning, and Ajay Menon have provided
a constant flow of helpful suggestions.
We are also grateful to the colleagues with whom we
collaborate to produce international adaptations of the
Marketing Consulting. The combination of pragmatic ex-
perience and creative insight they bring to the table is very
encouraging. If you want to see great marketing, watch
them create it.
A textbook must capsulize existing knowledge while
bringing new perspectives and organization to enhance it. Our
thinking has been shaped by the writings of literally thousands
of marketing scholars and practitioners. In some cases, it is
impossible to give unique credit for a particular idea or con-
cept because so many people have played important roles in
anticipating, suggesting, shaping, and developing it. We
gratefully acknowledge these contributors—from the early
thought-leaders to contemporary authors and researchers—
who have shared their creative ideas. We respect their impact
on the development of marketing and more specifically this
book.
xxviii
To all of these persons—and to the many publishers
who graciously granted permission to use their materials—
we are deeply grateful. Responsibility for any errors or
omissions is certainly ours, but the book would not have
been possible without the assistance of many others. Our
sincere appreciation goes to all who contributed.
William D. Perreault, Jr.
Joseph P. Cannon
E. Jerome McCarthy
Brief Contents
xxix
1 Marketing’s Value to Consumers, Firms, 15 Advertising, Publicity, and Sales
and Society 2 Promotion 384
2 Marketing Strategy Planning 30 16 Pricing Objectives and Policies 418
3 Evaluating Opportunities in the Changing 17 Price Setting in the Business World 446
Market Environment 56 18 Implementing and Controlling Marketing
4 Focusing Marketing Strategy with Plans: Evolution and Revolution 474
Segmentation and Positioning 86 19 Managing Marketing’s Link with Other
5 Final Consumers and Their Buying Functional Areas 500
Behavior 116 20 Ethical Marketing in a Consumer-Oriented
6 Business and Organizational Customers and World: Appraisal and Challenges 524
Their Buying Behavior 142 Appendix A Economics Fundamentals 548
7 Improving Decisions with Marketing Appendix B Marketing Arithmetic 561
Information 168
Appendix C Career Planning in Marketing 577
8 Elements of Product Planning for Goods
and Services 196 Video Cases 590

9 Product Management and New-Product Cases 606

Development 224 Computer-Aided Problems 647
10 Place and Development of Channel Notes 652
Systems 252
Illustration Credits 693
11 Distribution Customer Service and
Name Index 697
Logistics 278
Company Index 708
12 Retailers, Wholesalers, and Their Strategy
Planning 300 Subject Index 713

13 Promotion—Introduction to Integrated Glossary G-1

Marketing Communications 328
14 Personal Selling and Customer Service 356
Contents

1
CHAPTER ONE
Marketing’s Value to Consumers, Firms, and Society
Marketing—What’s It All About? 4
Marketing Is Important to You 6
How Should We Define Marketing? 7
2

Macro-Marketing 8
The Role of Marketing in Economic Systems 12
Marketing’s Role Has Changed a Lot over the Years 16
What Does the Marketing Concept Mean? 17
The Marketing Concept and Customer Value 19
The Marketing Concept Applies in Nonprofit Organizations 22
The Marketing Concept, Social Responsibility, and
Marketing Ethics 23

Conclusion 27
Key Terms 28
Questions and Problems 28
Suggested Cases 29
Computer-Aided Problem 29

xxx
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 DANCE ON STILTS AT THE GIRLS’ UNYAGO, NIUCHI

Newala, too, suffers from the distance of its water-supply—at least

the Newala of to-day does; there was once another Newala in a lovely
valley at the foot of the plateau. I visited it and found scarcely a trace
of houses, only a Christian cemetery, with the graves of several
missionaries and their converts, remaining as a monument of its
former glories. But the surroundings are wonderfully beautiful. A
thick grove of splendid mango-trees closes in the weather-worn
crosses and headstones; behind them, combining the useful and the
agreeable, is a whole plantation of lemon-trees covered with ripe
fruit; not the small African kind, but a much larger and also juicier
imported variety, which drops into the hands of the passing traveller,
without calling for any exertion on his part. Old Newala is now under
the jurisdiction of the native pastor, Daudi, at Chingulungulu, who,
as I am on very friendly terms with him, allows me, as a matter of
course, the use of this lemon-grove during my stay at Newala.
 FEET MUTILATED BY THE RAVAGES OF THE “JIGGER”
(Sarcopsylla penetrans)

The water-supply of New Newala is in the bottom of the valley,

some 1,600 feet lower down. The way is not only long and fatiguing,
but the water, when we get it, is thoroughly bad. We are suffering not
only from this, but from the fact that the arrangements at Newala are
nothing short of luxurious. We have a separate kitchen—a hut built
against the boma palisade on the right of the baraza, the interior of
which is not visible from our usual position. Our two cooks were not
long in finding this out, and they consequently do—or rather neglect
to do—what they please. In any case they do not seem to be very
particular about the boiling of our drinking-water—at least I can
attribute to no other cause certain attacks of a dysenteric nature,
from which both Knudsen and I have suffered for some time. If a
man like Omari has to be left unwatched for a moment, he is capable
of anything. Besides this complaint, we are inconvenienced by the
state of our nails, which have become as hard as glass, and crack on
the slightest provocation, and I have the additional infliction of
pimples all over me. As if all this were not enough, we have also, for
the last week been waging war against the jigger, who has found his
Eldorado in the hot sand of the Makonde plateau. Our men are seen
all day long—whenever their chronic colds and the dysentery likewise
raging among them permit—occupied in removing this scourge of
Africa from their feet and trying to prevent the disastrous
consequences of its presence. It is quite common to see natives of
this place with one or two toes missing; many have lost all their toes,
or even the whole front part of the foot, so that a well-formed leg
ends in a shapeless stump. These ravages are caused by the female of
Sarcopsylla penetrans, which bores its way under the skin and there
develops an egg-sac the size of a pea. In all books on the subject, it is
stated that one’s attention is called to the presence of this parasite by
an intolerable itching. This agrees very well with my experience, so
far as the softer parts of the sole, the spaces between and under the
toes, and the side of the foot are concerned, but if the creature
penetrates through the harder parts of the heel or ball of the foot, it
may escape even the most careful search till it has reached maturity.
Then there is no time to be lost, if the horrible ulceration, of which
we see cases by the dozen every day, is to be prevented. It is much
easier, by the way, to discover the insect on the white skin of a
European than on that of a native, on which the dark speck scarcely
shows. The four or five jiggers which, in spite of the fact that I
constantly wore high laced boots, chose my feet to settle in, were
taken out for me by the all-accomplished Knudsen, after which I
thought it advisable to wash out the cavities with corrosive
sublimate. The natives have a different sort of disinfectant—they fill
the hole with scraped roots. In a tiny Makua village on the slope of
the plateau south of Newala, we saw an old woman who had filled all
the spaces under her toe-nails with powdered roots by way of
prophylactic treatment. What will be the result, if any, who can say?
The rest of the many trifling ills which trouble our existence are
really more comic than serious. In the absence of anything else to
smoke, Knudsen and I at last opened a box of cigars procured from
the Indian store-keeper at Lindi, and tried them, with the most
distressing results. Whether they contain opium or some other
narcotic, neither of us can say, but after the tenth puff we were both
“off,” three-quarters stupefied and unspeakably wretched. Slowly we
recovered—and what happened next? Half-an-hour later we were
once more smoking these poisonous concoctions—so insatiable is the
craving for tobacco in the tropics.
Even my present attacks of fever scarcely deserve to be taken
seriously. I have had no less than three here at Newala, all of which
have run their course in an incredibly short time. In the early
afternoon, I am busy with my old natives, asking questions and
making notes. The strong midday coffee has stimulated my spirits to
an extraordinary degree, the brain is active and vigorous, and work
progresses rapidly, while a pleasant warmth pervades the whole
body. Suddenly this gives place to a violent chill, forcing me to put on
my overcoat, though it is only half-past three and the afternoon sun
is at its hottest. Now the brain no longer works with such acuteness
and logical precision; more especially does it fail me in trying to
establish the syntax of the difficult Makua language on which I have
ventured, as if I had not enough to do without it. Under the
circumstances it seems advisable to take my temperature, and I do
so, to save trouble, without leaving my seat, and while going on with
my work. On examination, I find it to be 101·48°. My tutors are
abruptly dismissed and my bed set up in the baraza; a few minutes
later I am in it and treating myself internally with hot water and
lemon-juice.
Three hours later, the thermometer marks nearly 104°, and I make
them carry me back into the tent, bed and all, as I am now perspiring
heavily, and exposure to the cold wind just beginning to blow might
mean a fatal chill. I lie still for a little while, and then find, to my
great relief, that the temperature is not rising, but rather falling. This
is about 7.30 p.m. At 8 p.m. I find, to my unbounded astonishment,
that it has fallen below 98·6°, and I feel perfectly well. I read for an
hour or two, and could very well enjoy a smoke, if I had the
wherewithal—Indian cigars being out of the question.
Having no medical training, I am at a loss to account for this state
of things. It is impossible that these transitory attacks of high fever
should be malarial; it seems more probable that they are due to a
kind of sunstroke. On consulting my note-book, I become more and
more inclined to think this is the case, for these attacks regularly
follow extreme fatigue and long exposure to strong sunshine. They at
least have the advantage of being only short interruptions to my
work, as on the following morning I am always quite fresh and fit.
My treasure of a cook is suffering from an enormous hydrocele which
makes it difficult for him to get up, and Moritz is obliged to keep in
the dark on account of his inflamed eyes. Knudsen’s cook, a raw boy
from somewhere in the bush, knows still less of cooking than Omari;
consequently Nils Knudsen himself has been promoted to the vacant
post. Finding that we had come to the end of our supplies, he began
by sending to Chingulungulu for the four sucking-pigs which we had
bought from Matola and temporarily left in his charge; and when
they came up, neatly packed in a large crate, he callously slaughtered
the biggest of them. The first joint we were thoughtless enough to
entrust for roasting to Knudsen’s mshenzi cook, and it was
consequently uneatable; but we made the rest of the animal into a
jelly which we ate with great relish after weeks of underfeeding,
consuming incredible helpings of it at both midday and evening
meals. The only drawback is a certain want of variety in the tinned
vegetables. Dr. Jäger, to whom the Geographical Commission
entrusted the provisioning of the expeditions—mine as well as his
own—because he had more time on his hands than the rest of us,
seems to have laid in a huge stock of Teltow turnips,[46] an article of
food which is all very well for occasional use, but which quickly palls
when set before one every day; and we seem to have no other tins
left. There is no help for it—we must put up with the turnips; but I
am certain that, once I am home again, I shall not touch them for ten
years to come.
Amid all these minor evils, which, after all, go to make up the
genuine flavour of Africa, there is at least one cheering touch:
Knudsen has, with the dexterity of a skilled mechanic, repaired my 9
× 12 cm. camera, at least so far that I can use it with a little care.
How, in the absence of finger-nails, he was able to accomplish such a
ticklish piece of work, having no tool but a clumsy screw-driver for
taking to pieces and putting together again the complicated
mechanism of the instantaneous shutter, is still a mystery to me; but
he did it successfully. The loss of his finger-nails shows him in a light
contrasting curiously enough with the intelligence evinced by the
above operation; though, after all, it is scarcely surprising after his
ten years’ residence in the bush. One day, at Lindi, he had occasion
to wash a dog, which must have been in need of very thorough
cleansing, for the bottle handed to our friend for the purpose had an
extremely strong smell. Having performed his task in the most
conscientious manner, he perceived with some surprise that the dog
did not appear much the better for it, and was further surprised by
finding his own nails ulcerating away in the course of the next few
days. “How was I to know that carbolic acid has to be diluted?” he
mutters indignantly, from time to time, with a troubled gaze at his
mutilated finger-tips.
 Since we came to Newala we have been making excursions in all
directions through the surrounding country, in accordance with old
habit, and also because the akida Sefu did not get together the tribal
elders from whom I wanted information so speedily as he had
promised. There is, however, no harm done, as, even if seen only
from the outside, the country and people are interesting enough.
The Makonde plateau is like a large rectangular table rounded off
at the corners. Measured from the Indian Ocean to Newala, it is
about seventy-five miles long, and between the Rovuma and the
Lukuledi it averages fifty miles in breadth, so that its superficial area
is about two-thirds of that of the kingdom of Saxony. The surface,
however, is not level, but uniformly inclined from its south-western
edge to the ocean. From the upper edge, on which Newala lies, the
eye ranges for many miles east and north-east, without encountering
any obstacle, over the Makonde bush. It is a green sea, from which
here and there thick clouds of smoke rise, to show that it, too, is
inhabited by men who carry on their tillage like so many other
primitive peoples, by cutting down and burning the bush, and
manuring with the ashes. Even in the radiant light of a tropical day
such a fire is a grand sight.
Much less effective is the impression produced just now by the
great western plain as seen from the edge of the plateau. As often as
time permits, I stroll along this edge, sometimes in one direction,
sometimes in another, in the hope of finding the air clear enough to
let me enjoy the view; but I have always been disappointed.
Wherever one looks, clouds of smoke rise from the burning bush,
and the air is full of smoke and vapour. It is a pity, for under more
favourable circumstances the panorama of the whole country up to
the distant Majeje hills must be truly magnificent. It is of little use
taking photographs now, and an outline sketch gives a very poor idea
of the scenery. In one of these excursions I went out of my way to
make a personal attempt on the Makonde bush. The present edge of
the plateau is the result of a far-reaching process of destruction
through erosion and denudation. The Makonde strata are
everywhere cut into by ravines, which, though short, are hundreds of
yards in depth. In consequence of the loose stratification of these
beds, not only are the walls of these ravines nearly vertical, but their
upper end is closed by an equally steep escarpment, so that the
western edge of the Makonde plateau is hemmed in by a series of
deep, basin-like valleys. In order to get from one side of such a ravine
to the other, I cut my way through the bush with a dozen of my men.
It was a very open part, with more grass than scrub, but even so the
short stretch of less than two hundred yards was very hard work; at
the end of it the men’s calicoes were in rags and they themselves
bleeding from hundreds of scratches, while even our strong khaki
suits had not escaped scatheless.

NATIVE PATH THROUGH THE MAKONDE BUSH, NEAR

MAHUTA

I see increasing reason to believe that the view formed some time
back as to the origin of the Makonde bush is the correct one. I have
no doubt that it is not a natural product, but the result of human
occupation. Those parts of the high country where man—as a very
slight amount of practice enables the eye to perceive at once—has not
yet penetrated with axe and hoe, are still occupied by a splendid
timber forest quite able to sustain a comparison with our mixed
forests in Germany. But wherever man has once built his hut or tilled
his field, this horrible bush springs up. Every phase of this process
may be seen in the course of a couple of hours’ walk along the main
road. From the bush to right or left, one hears the sound of the axe—
not from one spot only, but from several directions at once. A few
steps further on, we can see what is taking place. The brush has been
cut down and piled up in heaps to the height of a yard or more,
between which the trunks of the large trees stand up like the last
pillars of a magnificent ruined building. These, too, present a
melancholy spectacle: the destructive Makonde have ringed them—
cut a broad strip of bark all round to ensure their dying off—and also
piled up pyramids of brush round them. Father and son, mother and
son-in-law, are chopping away perseveringly in the background—too
busy, almost, to look round at the white stranger, who usually excites
so much interest. If you pass by the same place a week later, the piles
of brushwood have disappeared and a thick layer of ashes has taken
the place of the green forest. The large trees stretch their
smouldering trunks and branches in dumb accusation to heaven—if
they have not already fallen and been more or less reduced to ashes,
perhaps only showing as a white stripe on the dark ground.
This work of destruction is carried out by the Makonde alike on the
virgin forest and on the bush which has sprung up on sites already
cultivated and deserted. In the second case they are saved the trouble
of burning the large trees, these being entirely absent in the
secondary bush.
After burning this piece of forest ground and loosening it with the
hoe, the native sows his corn and plants his vegetables. All over the
country, he goes in for bed-culture, which requires, and, in fact,
receives, the most careful attention. Weeds are nowhere tolerated in
the south of German East Africa. The crops may fail on the plains,
where droughts are frequent, but never on the plateau with its
abundant rains and heavy dews. Its fortunate inhabitants even have
the satisfaction of seeing the proud Wayao and Wamakua working
for them as labourers, driven by hunger to serve where they were
accustomed to rule.
But the light, sandy soil is soon exhausted, and would yield no
harvest the second year if cultivated twice running. This fact has
been familiar to the native for ages; consequently he provides in
time, and, while his crop is growing, prepares the next plot with axe
and firebrand. Next year he plants this with his various crops and
lets the first piece lie fallow. For a short time it remains waste and
desolate; then nature steps in to repair the destruction wrought by
man; a thousand new growths spring out of the exhausted soil, and
even the old stumps put forth fresh shoots. Next year the new growth
is up to one’s knees, and in a few years more it is that terrible,
impenetrable bush, which maintains its position till the black
occupier of the land has made the round of all the available sites and
come back to his starting point.
The Makonde are, body and soul, so to speak, one with this bush.
According to my Yao informants, indeed, their name means nothing
else but “bush people.” Their own tradition says that they have been
settled up here for a very long time, but to my surprise they laid great
stress on an original immigration. Their old homes were in the
south-east, near Mikindani and the mouth of the Rovuma, whence
their peaceful forefathers were driven by the continual raids of the
Sakalavas from Madagascar and the warlike Shirazis[47] of the coast,
to take refuge on the almost inaccessible plateau. I have studied
African ethnology for twenty years, but the fact that changes of
population in this apparently quiet and peaceable corner of the earth
could have been occasioned by outside enterprises taking place on
the high seas, was completely new to me. It is, no doubt, however,
correct.
The charming tribal legend of the Makonde—besides informing us
of other interesting matters—explains why they have to live in the
thickest of the bush and a long way from the edge of the plateau,
instead of making their permanent homes beside the purling brooks
and springs of the low country.
“The place where the tribe originated is Mahuta, on the southern
side of the plateau towards the Rovuma, where of old time there was
nothing but thick bush. Out of this bush came a man who never
washed himself or shaved his head, and who ate and drank but little.
He went out and made a human figure from the wood of a tree
growing in the open country, which he took home to his abode in the
bush and there set it upright. In the night this image came to life and
was a woman. The man and woman went down together to the
Rovuma to wash themselves. Here the woman gave birth to a still-
born child. They left that place and passed over the high land into the
valley of the Mbemkuru, where the woman had another child, which
was also born dead. Then they returned to the high bush country of
Mahuta, where the third child was born, which lived and grew up. In
course of time, the couple had many more children, and called
themselves Wamatanda. These were the ancestral stock of the
Makonde, also called Wamakonde,[48] i.e., aborigines. Their
forefather, the man from the bush, gave his children the command to
bury their dead upright, in memory of the mother of their race who
was cut out of wood and awoke to life when standing upright. He also
warned them against settling in the valleys and near large streams,
for sickness and death dwelt there. They were to make it a rule to
have their huts at least an hour’s walk from the nearest watering-
place; then their children would thrive and escape illness.”
The explanation of the name Makonde given by my informants is
somewhat different from that contained in the above legend, which I
extract from a little book (small, but packed with information), by
Pater Adams, entitled Lindi und sein Hinterland. Otherwise, my
results agree exactly with the statements of the legend. Washing?
Hapana—there is no such thing. Why should they do so? As it is, the
supply of water scarcely suffices for cooking and drinking; other
people do not wash, so why should the Makonde distinguish himself
by such needless eccentricity? As for shaving the head, the short,
woolly crop scarcely needs it,[49] so the second ancestral precept is
likewise easy enough to follow. Beyond this, however, there is
nothing ridiculous in the ancestor’s advice. I have obtained from
various local artists a fairly large number of figures carved in wood,
ranging from fifteen to twenty-three inches in height, and
representing women belonging to the great group of the Mavia,
Makonde, and Matambwe tribes. The carving is remarkably well
done and renders the female type with great accuracy, especially the
keloid ornamentation, to be described later on. As to the object and
meaning of their works the sculptors either could or (more probably)
would tell me nothing, and I was forced to content myself with the
scanty information vouchsafed by one man, who said that the figures
were merely intended to represent the nembo—the artificial
deformations of pelele, ear-discs, and keloids. The legend recorded
by Pater Adams places these figures in a new light. They must surely
be more than mere dolls; and we may even venture to assume that
they are—though the majority of present-day Makonde are probably
unaware of the fact—representations of the tribal ancestress.
 The references in the legend to the descent from Mahuta to the
Rovuma, and to a journey across the highlands into the Mbekuru
valley, undoubtedly indicate the previous history of the tribe, the
travels of the ancestral pair typifying the migrations of their
descendants. The descent to the neighbouring Rovuma valley, with
its extraordinary fertility and great abundance of game, is intelligible
at a glance—but the crossing of the Lukuledi depression, the ascent
to the Rondo Plateau and the descent to the Mbemkuru, also lie
within the bounds of probability, for all these districts have exactly
the same character as the extreme south. Now, however, comes a
point of especial interest for our bacteriological age. The primitive
Makonde did not enjoy their lives in the marshy river-valleys.
Disease raged among them, and many died. It was only after they
had returned to their original home near Mahuta, that the health
conditions of these people improved. We are very apt to think of the
African as a stupid person whose ignorance of nature is only equalled
by his fear of it, and who looks on all mishaps as caused by evil
spirits and malignant natural powers. It is much more correct to
assume in this case that the people very early learnt to distinguish
districts infested with malaria from those where it is absent.
This knowledge is crystallized in the
ancestral warning against settling in the
valleys and near the great waters, the
dwelling-places of disease and death. At the
same time, for security against the hostile
Mavia south of the Rovuma, it was enacted
that every settlement must be not less than a
certain distance from the southern edge of the
plateau. Such in fact is their mode of life at the
present day. It is not such a bad one, and
certainly they are both safer and more
comfortable than the Makua, the recent
intruders from the south, who have made USUAL METHOD OF
good their footing on the western edge of the CLOSING HUT-DOOR
plateau, extending over a fairly wide belt of
country. Neither Makua nor Makonde show in their dwellings
anything of the size and comeliness of the Yao houses in the plain,
especially at Masasi, Chingulungulu and Zuza’s. Jumbe Chauro, a
Makonde hamlet not far from Newala, on the road to Mahuta, is the
most important settlement of the tribe I have yet seen, and has fairly
spacious huts. But how slovenly is their construction compared with
the palatial residences of the elephant-hunters living in the plain.
The roofs are still more untidy than in the general run of huts during
the dry season, the walls show here and there the scanty beginnings
or the lamentable remains of the mud plastering, and the interior is a
veritable dog-kennel; dirt, dust and disorder everywhere. A few huts
only show any attempt at division into rooms, and this consists
merely of very roughly-made bamboo partitions. In one point alone
have I noticed any indication of progress—in the method of fastening
the door. Houses all over the south are secured in a simple but
ingenious manner. The door consists of a set of stout pieces of wood
or bamboo, tied with bark-string to two cross-pieces, and moving in
two grooves round one of the door-posts, so as to open inwards. If
the owner wishes to leave home, he takes two logs as thick as a man’s
upper arm and about a yard long. One of these is placed obliquely
against the middle of the door from the inside, so as to form an angle
of from 60° to 75° with the ground. He then places the second piece
horizontally across the first, pressing it downward with all his might.
It is kept in place by two strong posts planted in the ground a few
inches inside the door. This fastening is absolutely safe, but of course
cannot be applied to both doors at once, otherwise how could the
owner leave or enter his house? I have not yet succeeded in finding
out how the back door is fastened.

MAKONDE LOCK AND KEY AT JUMBE CHAURO

 This is the general way of closing a house. The Makonde at Jumbe
Chauro, however, have a much more complicated, solid and original
one. Here, too, the door is as already described, except that there is
only one post on the inside, standing by itself about six inches from
one side of the doorway. Opposite this post is a hole in the wall just
large enough to admit a man’s arm. The door is closed inside by a
large wooden bolt passing through a hole in this post and pressing
with its free end against the door. The other end has three holes into
which fit three pegs running in vertical grooves inside the post. The
door is opened with a wooden key about a foot long, somewhat
curved and sloped off at the butt; the other end has three pegs
corresponding to the holes, in the bolt, so that, when it is thrust
through the hole in the wall and inserted into the rectangular
opening in the post, the pegs can be lifted and the bolt drawn out.[50]

MODE OF INSERTING THE KEY

With no small pride first one householder and then a second

showed me on the spot the action of this greatest invention of the
Makonde Highlands. To both with an admiring exclamation of
“Vizuri sana!” (“Very fine!”). I expressed the wish to take back these
marvels with me to Ulaya, to show the Wazungu what clever fellows
the Makonde are. Scarcely five minutes after my return to camp at
Newala, the two men came up sweating under the weight of two
heavy logs which they laid down at my feet, handing over at the same
time the keys of the fallen fortress. Arguing, logically enough, that if
the key was wanted, the lock would be wanted with it, they had taken
their axes and chopped down the posts—as it never occurred to them
to dig them out of the ground and so bring them intact. Thus I have
two badly damaged specimens, and the owners, instead of praise,
come in for a blowing-up.
The Makua huts in the environs of Newala are especially
miserable; their more than slovenly construction reminds one of the
temporary erections of the Makua at Hatia’s, though the people here
have not been concerned in a war. It must therefore be due to
congenital idleness, or else to the absence of a powerful chief. Even
the baraza at Mlipa’s, a short hour’s walk south-east of Newala,
shares in this general neglect. While public buildings in this country
are usually looked after more or less carefully, this is in evident
danger of being blown over by the first strong easterly gale. The only
attractive object in this whole district is the grave of the late chief
Mlipa. I visited it in the morning, while the sun was still trying with
partial success to break through the rolling mists, and the circular
grove of tall euphorbias, which, with a broken pot, is all that marks
the old king’s resting-place, impressed one with a touch of pathos.
Even my very materially-minded carriers seemed to feel something
of the sort, for instead of their usual ribald songs, they chanted
solemnly, as we marched on through the dense green of the Makonde
bush:—
 “We shall arrive with the great master; we stand in a row and have
no fear about getting our food and our money from the Serkali (the
Government). We are not afraid; we are going along with the great
master, the lion; we are going down to the coast and back.”
With regard to the characteristic features of the various tribes here
on the western edge of the plateau, I can arrive at no other
conclusion than the one already come to in the plain, viz., that it is
impossible for anyone but a trained anthropologist to assign any
given individual at once to his proper tribe. In fact, I think that even
an anthropological specialist, after the most careful examination,
might find it a difficult task to decide. The whole congeries of peoples
collected in the region bounded on the west by the great Central
African rift, Tanganyika and Nyasa, and on the east by the Indian
Ocean, are closely related to each other—some of their languages are
only distinguished from one another as dialects of the same speech,
and no doubt all the tribes present the same shape of skull and
structure of skeleton. Thus, surely, there can be no very striking
differences in outward appearance.
 Even did such exist, I should have no time
to concern myself with them, for day after day,
I have to see or hear, as the case may be—in
any case to grasp and record—an
extraordinary number of ethnographic
phenomena. I am almost disposed to think it
fortunate that some departments of inquiry, at
least, are barred by external circumstances.
Chief among these is the subject of iron-
working. We are apt to think of Africa as a
country where iron ore is everywhere, so to
speak, to be picked up by the roadside, and
where it would be quite surprising if the
inhabitants had not learnt to smelt the
material ready to their hand. In fact, the
knowledge of this art ranges all over the
continent, from the Kabyles in the north to the
Kafirs in the south. Here between the Rovuma
and the Lukuledi the conditions are not so
favourable. According to the statements of the
Makonde, neither ironstone nor any other
form of iron ore is known to them. They have
not therefore advanced to the art of smelting
the metal, but have hitherto bought all their
THE ANCESTRESS OF
THE MAKONDE
iron implements from neighbouring tribes.
Even in the plain the inhabitants are not much
better off. Only one man now living is said to
understand the art of smelting iron. This old fundi lives close to
Huwe, that isolated, steep-sided block of granite which rises out of
the green solitude between Masasi and Chingulungulu, and whose
jagged and splintered top meets the traveller’s eye everywhere. While
still at Masasi I wished to see this man at work, but was told that,
frightened by the rising, he had retired across the Rovuma, though
he would soon return. All subsequent inquiries as to whether the
fundi had come back met with the genuine African answer, “Bado”
(“Not yet”).
 BRAZIER

Some consolation was afforded me by a brassfounder, whom I

came across in the bush near Akundonde’s. This man is the favourite
of women, and therefore no doubt of the gods; he welds the glittering
brass rods purchased at the coast into those massive, heavy rings
which, on the wrists and ankles of the local fair ones, continually give
me fresh food for admiration. Like every decent master-craftsman he
had all his tools with him, consisting of a pair of bellows, three
crucibles and a hammer—nothing more, apparently. He was quite
willing to show his skill, and in a twinkling had fixed his bellows on
the ground. They are simply two goat-skins, taken off whole, the four
legs being closed by knots, while the upper opening, intended to
admit the air, is kept stretched by two pieces of wood. At the lower
end of the skin a smaller opening is left into which a wooden tube is
stuck. The fundi has quickly borrowed a heap of wood-embers from
the nearest hut; he then fixes the free ends of the two tubes into an
earthen pipe, and clamps them to the ground by means of a bent
piece of wood. Now he fills one of his small clay crucibles, the dross
on which shows that they have been long in use, with the yellow
material, places it in the midst of the embers, which, at present are
only faintly glimmering, and begins his work. In quick alternation
the smith’s two hands move up and down with the open ends of the
bellows; as he raises his hand he holds the slit wide open, so as to let
the air enter the skin bag unhindered. In pressing it down he closes
the bag, and the air puffs through the bamboo tube and clay pipe into
the fire, which quickly burns up. The smith, however, does not keep
on with this work, but beckons to another man, who relieves him at
the bellows, while he takes some more tools out of a large skin pouch
carried on his back. I look on in wonder as, with a smooth round
stick about the thickness of a finger, he bores a few vertical holes into
the clean sand of the soil. This should not be difficult, yet the man
seems to be taking great pains over it. Then he fastens down to the
ground, with a couple of wooden clamps, a neat little trough made by
splitting a joint of bamboo in half, so that the ends are closed by the
two knots. At last the yellow metal has attained the right consistency,
and the fundi lifts the crucible from the fire by means of two sticks
split at the end to serve as tongs. A short swift turn to the left—a
tilting of the crucible—and the molten brass, hissing and giving forth
clouds of smoke, flows first into the bamboo mould and then into the
holes in the ground.
The technique of this backwoods craftsman may not be very far
advanced, but it cannot be denied that he knows how to obtain an
adequate result by the simplest means. The ladies of highest rank in
this country—that is to say, those who can afford it, wear two kinds
of these massive brass rings, one cylindrical, the other semicircular
in section. The latter are cast in the most ingenious way in the
bamboo mould, the former in the circular hole in the sand. It is quite
a simple matter for the fundi to fit these bars to the limbs of his fair
customers; with a few light strokes of his hammer he bends the
pliable brass round arm or ankle without further inconvenience to
the wearer.
SHAPING THE POT

SMOOTHING WITH MAIZE-COB

CUTTING THE EDGE

 FINISHING THE BOTTOM

LAST SMOOTHING BEFORE

BURNING

FIRING THE BRUSH-PILE

 LIGHTING THE FARTHER SIDE OF
THE PILE

TURNING THE RED-HOT VESSEL

NYASA WOMAN MAKING POTS AT MASASI

Pottery is an art which must always and everywhere excite the
interest of the student, just because it is so intimately connected with
the development of human culture, and because its relics are one of
the principal factors in the reconstruction of our own condition in
prehistoric times. I shall always remember with pleasure the two or
three afternoons at Masasi when Salim Matola’s mother, a slightly-
built, graceful, pleasant-looking woman, explained to me with
touching patience, by means of concrete illustrations, the ceramic art
of her people. The only implements for this primitive process were a
lump of clay in her left hand, and in the right a calabash containing
the following valuables: the fragment of a maize-cob stripped of all
its grains, a smooth, oval pebble, about the size of a pigeon’s egg, a
few chips of gourd-shell, a bamboo splinter about the length of one’s
hand, a small shell, and a bunch of some herb resembling spinach.
 Nothing more. The woman scraped with the
shell a round, shallow hole in the soft, fine
sand of the soil, and, when an active young
girl had filled the calabash with water for her,
she began to knead the clay. As if by magic it
gradually assumed the shape of a rough but
already well-shaped vessel, which only wanted
a little touching up with the instruments
before mentioned. I looked out with the
MAKUA WOMAN closest attention for any indication of the use
MAKING A POT. of the potter’s wheel, in however rudimentary
SHOWS THE a form, but no—hapana (there is none). The
BEGINNINGS OF THE embryo pot stood firmly in its little
POTTER’S WHEEL
depression, and the woman walked round it in
a stooping posture, whether she was removing
small stones or similar foreign bodies with the maize-cob, smoothing
the inner or outer surface with the splinter of bamboo, or later, after
letting it dry for a day, pricking in the ornamentation with a pointed
bit of gourd-shell, or working out the bottom, or cutting the edge
with a sharp bamboo knife, or giving the last touches to the finished
vessel. This occupation of the women is infinitely toilsome, but it is
without doubt an accurate reproduction of the process in use among
our ancestors of the Neolithic and Bronze ages.
There is no doubt that the invention of pottery, an item in human
progress whose importance cannot be over-estimated, is due to
women. Rough, coarse and unfeeling, the men of the horde range
over the countryside. When the united cunning of the hunters has
succeeded in killing the game; not one of them thinks of carrying
home the spoil. A bright fire, kindled by a vigorous wielding of the
drill, is crackling beside them; the animal has been cleaned and cut
up secundum artem, and, after a slight singeing, will soon disappear
under their sharp teeth; no one all this time giving a single thought
to wife or child.
To what shifts, on the other hand, the primitive wife, and still more
the primitive mother, was put! Not even prehistoric stomachs could
endure an unvarying diet of raw food. Something or other suggested
the beneficial effect of hot water on the majority of approved but
indigestible dishes. Perhaps a neighbour had tried holding the hard
roots or tubers over the fire in a calabash filled with water—or maybe
an ostrich-egg-shell, or a hastily improvised vessel of bark. They
became much softer and more palatable than they had previously
been; but, unfortunately, the vessel could not stand the fire and got
charred on the outside. That can be remedied, thought our
ancestress, and plastered a layer of wet clay round a similar vessel.
This is an improvement; the cooking utensil remains uninjured, but
the heat of the fire has shrunk it, so that it is loose in its shell. The
next step is to detach it, so, with a firm grip and a jerk, shell and
kernel are separated, and pottery is invented. Perhaps, however, the
discovery which led to an intelligent use of the burnt-clay shell, was
made in a slightly different way. Ostrich-eggs and calabashes are not
to be found in every part of the world, but everywhere mankind has
arrived at the art of making baskets out of pliant materials, such as
bark, bast, strips of palm-leaf, supple twigs, etc. Our inventor has no
water-tight vessel provided by nature. “Never mind, let us line the
basket with clay.” This answers the purpose, but alas! the basket gets
burnt over the blazing fire, the woman watches the process of
cooking with increasing uneasiness, fearing a leak, but no leak
appears. The food, done to a turn, is eaten with peculiar relish; and
the cooking-vessel is examined, half in curiosity, half in satisfaction
at the result. The plastic clay is now hard as stone, and at the same
time looks exceedingly well, for the neat plaiting of the burnt basket
is traced all over it in a pretty pattern. Thus, simultaneously with
pottery, its ornamentation was invented.
Primitive woman has another claim to respect. It was the man,
roving abroad, who invented the art of producing fire at will, but the
woman, unable to imitate him in this, has been a Vestal from the
earliest times. Nothing gives so much trouble as the keeping alight of
the smouldering brand, and, above all, when all the men are absent
from the camp. Heavy rain-clouds gather, already the first large
drops are falling, the first gusts of the storm rage over the plain. The
little flame, a greater anxiety to the woman than her own children,
flickers unsteadily in the blast. What is to be done? A sudden thought
occurs to her, and in an instant she has constructed a primitive hut
out of strips of bark, to protect the flame against rain and wind.
This, or something very like it, was the way in which the principle
of the house was discovered; and even the most hardened misogynist
cannot fairly refuse a woman the credit of it. The protection of the
hearth-fire from the weather is the germ from which the human
dwelling was evolved. Men had little, if any share, in this forward
step, and that only at a late stage. Even at the present day, the
plastering of the housewall with clay and the manufacture of pottery
are exclusively the women’s business. These are two very significant
survivals. Our European kitchen-garden, too, is originally a woman’s
invention, and the hoe, the primitive instrument of agriculture, is,
characteristically enough, still used in this department. But the
noblest achievement which we owe to the other sex is unquestionably
the art of cookery. Roasting alone—the oldest process—is one for
which men took the hint (a very obvious one) from nature. It must
have been suggested by the scorched carcase of some animal
overtaken by the destructive forest-fires. But boiling—the process of
improving organic substances by the help of water heated to boiling-
point—is a much later discovery. It is so recent that it has not even
yet penetrated to all parts of the world. The Polynesians understand
how to steam food, that is, to cook it, neatly wrapped in leaves, in a
hole in the earth between hot stones, the air being excluded, and
(sometimes) a few drops of water sprinkled on the stones; but they
do not understand boiling.
To come back from this digression, we find that the slender Nyasa
woman has, after once more carefully examining the finished pot,
put it aside in the shade to dry. On the following day she sends me
word by her son, Salim Matola, who is always on hand, that she is
going to do the burning, and, on coming out of my house, I find her
already hard at work. She has spread on the ground a layer of very
dry sticks, about as thick as one’s thumb, has laid the pot (now of a
yellowish-grey colour) on them, and is piling brushwood round it.
My faithful Pesa mbili, the mnyampara, who has been standing by,
most obligingly, with a lighted stick, now hands it to her. Both of
them, blowing steadily, light the pile on the lee side, and, when the
flame begins to catch, on the weather side also. Soon the whole is in a
blaze, but the dry fuel is quickly consumed and the fire dies down, so
that we see the red-hot vessel rising from the ashes. The woman
turns it continually with a long stick, sometimes one way and
sometimes another, so that it may be evenly heated all over. In
twenty minutes she rolls it out of the ash-heap, takes up the bundle
of spinach, which has been lying for two days in a jar of water, and
sprinkles the red-hot clay with it. The places where the drops fall are
marked by black spots on the uniform reddish-brown surface. With a
sigh of relief, and with visible satisfaction, the woman rises to an
erect position; she is standing just in a line between me and the fire,
from which a cloud of smoke is just rising: I press the ball of my
camera, the shutter clicks—the apotheosis is achieved! Like a
priestess, representative of her inventive sex, the graceful woman
stands: at her feet the hearth-fire she has given us beside her the
invention she has devised for us, in the background the home she has
built for us.
At Newala, also, I have had the manufacture of pottery carried on
in my presence. Technically the process is better than that already
described, for here we find the beginnings of the potter’s wheel,
which does not seem to exist in the plains; at least I have seen
nothing of the sort. The artist, a frightfully stupid Makua woman, did
not make a depression in the ground to receive the pot she was about
to shape, but used instead a large potsherd. Otherwise, she went to
work in much the same way as Salim’s mother, except that she saved
herself the trouble of walking round and round her work by squatting
at her ease and letting the pot and potsherd rotate round her; this is
surely the first step towards a machine. But it does not follow that
the pot was improved by the process. It is true that it was beautifully
rounded and presented a very creditable appearance when finished,
but the numerous large and small vessels which I have seen, and, in
part, collected, in the “less advanced” districts, are no less so. We
moderns imagine that instruments of precision are necessary to
produce excellent results. Go to the prehistoric collections of our
museums and look at the pots, urns and bowls of our ancestors in the
dim ages of the past, and you will at once perceive your error.
MAKING LONGITUDINAL CUT IN
BARK

DRAWING THE BARK OFF THE LOG

REMOVING THE OUTER BARK

 BEATING THE BARK

WORKING THE BARK-CLOTH AFTER BEATING, TO MAKE IT

SOFT

MANUFACTURE OF BARK-CLOTH AT NEWALA

To-day, nearly the whole population of German East Africa is
clothed in imported calico. This was not always the case; even now in
some parts of the north dressed skins are still the prevailing wear,
and in the north-western districts—east and north of Lake
Tanganyika—lies a zone where bark-cloth has not yet been
superseded. Probably not many generations have passed since such
bark fabrics and kilts of skins were the only clothing even in the
south. Even to-day, large quantities of this bright-red or drab
material are still to be found; but if we wish to see it, we must look in
the granaries and on the drying stages inside the native huts, where
it serves less ambitious uses as wrappings for those seeds and fruits
which require to be packed with special care. The salt produced at
Masasi, too, is packed for transport to a distance in large sheets of
bark-cloth. Wherever I found it in any degree possible, I studied the
process of making this cloth. The native requisitioned for the
purpose arrived, carrying a log between two and three yards long and
as thick as his thigh, and nothing else except a curiously-shaped
mallet and the usual long, sharp and pointed knife which all men and
boys wear in a belt at their backs without a sheath—horribile dictu!
[51]
Silently he squats down before me, and with two rapid cuts has
drawn a couple of circles round the log some two yards apart, and
slits the bark lengthwise between them with the point of his knife.
With evident care, he then scrapes off the outer rind all round the
log, so that in a quarter of an hour the inner red layer of the bark
shows up brightly-coloured between the two untouched ends. With
some trouble and much caution, he now loosens the bark at one end,
and opens the cylinder. He then stands up, takes hold of the free
edge with both hands, and turning it inside out, slowly but steadily
pulls it off in one piece. Now comes the troublesome work of
scraping all superfluous particles of outer bark from the outside of
the long, narrow piece of material, while the inner side is carefully
scrutinised for defective spots. At last it is ready for beating. Having
signalled to a friend, who immediately places a bowl of water beside
him, the artificer damps his sheet of bark all over, seizes his mallet,
lays one end of the stuff on the smoothest spot of the log, and
hammers away slowly but continuously. “Very simple!” I think to
myself. “Why, I could do that, too!”—but I am forced to change my
opinions a little later on; for the beating is quite an art, if the fabric is
not to be beaten to pieces. To prevent the breaking of the fibres, the
stuff is several times folded across, so as to interpose several
thicknesses between the mallet and the block. At last the required
state is reached, and the fundi seizes the sheet, still folded, by both
ends, and wrings it out, or calls an assistant to take one end while he
holds the other. The cloth produced in this way is not nearly so fine
and uniform in texture as the famous Uganda bark-cloth, but it is
quite soft, and, above all, cheap.
Now, too, I examine the mallet. My craftsman has been using the
simpler but better form of this implement, a conical block of some
hard wood, its base—the striking surface—being scored across and
across with more or less deeply-cut grooves, and the handle stuck
into a hole in the middle. The other and earlier form of mallet is
shaped in the same way, but the head is fastened by an ingenious
network of bark strips into the split bamboo serving as a handle. The
observation so often made, that ancient customs persist longest in
connection with religious ceremonies and in the life of children, here
finds confirmation. As we shall soon see, bark-cloth is still worn
during the unyago,[52] having been prepared with special solemn
ceremonies; and many a mother, if she has no other garment handy,
will still put her little one into a kilt of bark-cloth, which, after all,
looks better, besides being more in keeping with its African
surroundings, than the ridiculous bit of print from Ulaya.
MAKUA WOMEN