(eBook PDF) Marketing 3rd by Dhruv

Grewal
Visit to download the full and correct content document:
https://ebooksecure.com/download/ebook-pdf-marketing-3rd-by-dhruv-grewal/
DHRUV GREWAL, Ph.D.
Babson College

MICHAEL LEVY, Ph.D.

Babson College

SHIRLEY LICHTI, B.A., M.A.

Wilfrid Laurier University

AJAX PERSAUD, Ph.D.

University of Ottawa
 Step 5: Evaluate Performance by Using Marketing Metrics 43
Ethical Dilemma 2.1 Corporate “Do”nations or “Don’t”nations for Charities 43
Strategic Planning Is Not Sequential 45
Sustainable Marketing 2.1 Birks: A Diamond in the Rough? 46
Growth Strategies 49
Market Penetration 50
Market Development 50
Product Development 50
Diversification 51
Real Marketer Profile: Kelli Wood 51
Learning Objectives Review 52
Key Terms 53
Concept Review 54
Marketing Applications 54
Toolkit 54
Net Savvy 55
Chapter Case Study: The Netflix Rollercoaster 55
Appendix 2A Writing a Marketing Plan 57

3 Analyzing the Marketing Environment 77

A Marketing Environment Analysis Framework 79
Microenvironmental Factors 80
Company Capabilities 80
Competition 81
Corporate Partners 83
Macroenvironmental Factors 84
Culture 84
Demographics 85
Ethical Dilemma 3.1 The Next Target: Infants? 87
Technological Advances 92
Social and Mobile Marketing 3.1 Foursquare’s Promise and Facebook’s
Response 93
Economic Situation 94
Political/Legal Environment 96
Social and Natural Trends 96
Entrepreneurial Marketing 3.1 Turning Trash into Cash 98
Sustainable Marketing 3.1 Bullfrog Power Leaps onto the Green Scene 99
Learning Objectives Review 102
Key Terms 102
Concept Review 103
Marketing Applications 103
Net Savvy 104
Chapter Case Study: Will e-Books Replace Print Books? 104

SECTION TWO Understanding the Marketplace 108

4 Consumer Behaviour 109
The Consumer Decision Process 111
Step 1: Need Recognition 111
Step 2: Information Search 112

viii Table of Contents

 Step 3: Alternative Evaluation 114
Ethical Dilemma 4.1 Wearing the “Healthy Label: Natural and
Organic Foods 115
Social and Mobile Marketing 4.1 Shopping Online with
Friends 117
Step 4: Purchase Decision 118
Step 5: Postpurchase 118
Factors Influencing Consumer Buying Decisions 121
Psychological Factors 121
Entrepreneurial Marketing 4.1 Socks that Start Businesses 126
Social Factors 127
Sustainable Marketing 4.1 Consumers Warm Up to Organic
Foods 128
Situational Factors 130
Involvement and Consumer Buying Decisions 131
Extended Problem Solving 132
Limited Problem Solving 133
Learning Objectives Review 134
Key Terms 135
Concept Review 135
Marketing Applications 135
Toolkit 136
Net Savvy 136
Chapter Case Study: Weight Watchers Versus Jenny Craig 137

5 Business-to-Business Marketing 141

B2B Markets 142
Manufacturers or Producers 143
Resellers 144
Sustainable Marketing 5.1 Eco-friendly Printing Produces
Cost-Savings 144
Entrepreneurial Marketing 5.1 Mapping Your Way 145
Government 145
Key Challenges of Reaching B2B Clients 146
Differences Between B2B and B2C Markets 146
B2B Classification System and Segmentation 148
The B2B Buying Process 149
Stage 1: Need Recognition 150
Stage 2: Product Specification 150
Stage 3: RFP Process 150
Entrepreneurial Marketing 5.2 Tilting Pixels on the Web 151
Stage 4: Proposal Analysis and Supplier Selection 151
Stage 5: Order Specification (Purchase) 152
Stage 6: Vendor Performance Assessment Using Metrics 152
The Buying Centre 153
Ethical Dilemma 5.1 Value Village Cozies Up to Charities 153
Organizational Culture 155
Building B2B Relationships 156
Social and Mobile Marketing 5.1 Making the Most of LinkedIn 157
Buying Situations 157
Real Marketer Profile: Ryan Burgio and Sourov De 159

Table of Contents ix
 Learning Objectives Review 160
Key Terms 161
Concept Review 161
Marketing Applications 162
Toolkit 163
Net Savvy 163
Chapter Case Study: UPS: From Shipping to Supply Chain 163

SECTION THREE Targeting the Marketplace 166

6 Segmentation, Targeting, and Positioning 167

The Segmentation-Targeting-Positioning Process 169
Step 1: Establish Overall Strategy or Objectives 169
Step 2: Segmentation Bases 170
Sustainable Marketing 6.1 Thinking Out of the Box 171
Social and Mobile Marketing 6.1 Trials of a Bottle of
Ketchup 177
Step 3: Evaluate Segment Attractiveness 179
Real-World Segmentation Example 180
Step 4: Select Target Market 184
Entrepreneurial Marketing 6.1 Chez Cora: The Business of Breakfast 187
Ethical Dilemma 6.1 Designer Labels Target Teens 188
Step 5: Identify and Develop Positioning Strategy 189
Positioning Methods 190
Positioning by Using Perceptual Mapping 192
Repositioning 194
Learning Objectives Review 196
Key Terms 197
Concept Review 197
Marketing Applications 197
Toolkit 198
Net Savvy 198
Chapter Case Study: M&M Meat Shops: Using Demographics to Drive Decisions 199

7 Marketing Research 203

The Marketing Research Process 205
Step 1: Define the Research Problem and Objectives 205
Step 2: Define the Research Plan 206
Step 3: Collect Data 207
Step 4: Analyze Data and Develop Insights 208
Step 5: Present Action Plan 211
Secondary Data 211
Primary Data Collection Techniques 216
Sustainable Marketing 7.1 Embedding Sustainability in the
Organizational Culture 218
Qualitative Research Methods 219
Ethical Dilemma 7.1 Watching Consumers 221
Social and Mobile Marketing 7.1 Your Ideas in Action at Starbucks 223
Quantitative Research Methods 225
Emerging Technology and the Ethics of Using Customer Information 229

x Table of Contents
 Entrepreneurial Marketing 7.1 Marketing Research on a Shoestring Budget 230
Real Marketer Profile Tim Penner 231
Learning Objectives Review 232
Key Terms 233
Concept Review 233
Marketing Applications 234
Net Savvy 234
Chapter Case Study: Mobile Surveys Provide Real-Time Customer Insights 235

Appendix 7A Using Secondary Data to Assess Customer Lifetime Value

(CLV) 237

SECTION FOUR Value Creation 240

8 Developing New Products 241
Why Do Firms Create New Products? 243
Sustainable Marketing 8.1 Making Your Next Move Green 244
Changing Customer Needs 244
Market Saturation 245
Managing Risk Through Diversity 245
Fashion Cycles 246
Improving Business Relationships 247
Innovation and Value 247
Adoption of Innovation 248
Innovators 249
Early Adopters 249
Early Majority 250
Late Majority 250
Laggards 250
Using the Adoption Cycle 250
How Firms Develop New Products 252
Idea Generation 253
Entrepreneurial Marketing 8.1 Rise and Shine 255
Concept Testing 257
Product Development 257
Market Testing 258
Ethical Dilemma 8.1 Should Firms Test on Animals? 259
Product Launch 260
Evaluation of Results 262
Social and Mobile Marketing 8.1 Freestyle’s “Fountain of You” Works for
Everyone 262
The Product Life Cycle 263
Introduction Stage 263
Growth Stage 264
Maturity Stage 265
Decline Stage 266
The Shape of the Product Life Cycle Curve 267
Strategies Based on Product Life Cycle: Some Caveats 267
Learning Objectives Review 268
Key Terms 269
Concept Review 269

Table of Contents xi
 Marketing Applications 270
Net Savvy 270
Chapter Case Study: Apple Further Transforms the User Experience with the iPad 271

9 Product, Branding, and Packaging Decisions 275

Complexity of Products and Types of Products 276
Complexity of Products 276
Types of Products 277
Product Mix and Product Line Decisions 278
Change Product Mix Breadth 280
Change Product Line Depth 281
Social and Mobile Marketing 9.1 Axe Brands’ “Anarchy” Fragrance
and Graphic Novel 281
Change Number of SKUs 282
Product Line Decisions for Services 282
Branding 282
Value of Branding 283
Brand Equity 284
Ethical Dilemma 9.1 “Video Girl” Barbie Brings Girls to Foursquare 286
Branding Strategies 289
Brand Ownership 289
Naming Brands and Product Lines 290
Brand Extension 292
Cobranding 293
Brand Licensing 294
Packaging 294
Entrepreneurial Marketing 9.1 Three Farmers 295
Labelling 297
Sustainable Marketing 9.1 Message in a Bottle 297
Real Marketer Profile: Stacey Biggar 298
Learning Objectives Review 299
Key Terms 299
Concept Review 300
Marketing Applications 300
Net Savvy 301
Chapter Case Study: Band-Aid® Brand Products: Building on the Value of the Brand 301

10 Services: The Intangible Product 305

Services Marketing Differs from Product Marketing 307
Intangible 308
Inseparable Production and Consumption 309
Inconsistent 309
Inventory 312
Entrepreneurial Marketing 10.1 The Calypso Adventure 313
Providing Great Service: The Gaps Model 313
The Knowledge Gap: Knowing What Customers Want 315
The Standards Gap: Setting Service Standards 318
Sustainable Marketing 10.1 Walking the Green Building Talk 319
The Delivery Gap: Delivering Service Quality 321
The Communication Gap: Communicating the Service Promise 323
Ethical Dilemma 10.1 Fake Reviews 324

xii Table of Contents

 Service Recovery 324
Social and Mobile Marketing 10.1 Educating Customers Using HubSpot 325
Listening to the Customer 326
Finding a Fair Solution 326
Real Marketer Profile: Marc-Olivier Vachon 327
Resolving Problems Quickly 328
Learning Objectives Review 328
Key Terms 329
Concept Review 329
Marketing Applications 329
Toolkit 330
Net Savvy 330
Chapter Case Study: Zipcar: Delivering Only as Much Driving as You Want 331

SECTION FIVE Transacting Value 334

11 Pricing Concepts and Strategies: Establishing Value 335

The Importance of Pricing 336
The Five Cs of Pricing 338
Company Objectives 338
Customers 340
Costs 344
Competition 347
Channel Members 348
Other Influences on Pricing 349
The Internet 349
Economic Factors 350
Pricing Methods and Strategies 350
Cost-based Methods 351
Competitor-based Methods 351
Value-based Methods 351
Sustainable Marketing 11.1 It Isn’t Easy to Sell to Walmart 352
New Product Pricing Strategies 352
Price Skimming 352
Market Penetration Pricing 353
Psychological Factors Affecting Value-based Pricing Strategies 354
Consumers’ Use of Reference Prices 354
Entrepreneurial Marketing 11.1 Sweet Smell of Success 355
Odd Prices 355
Ethical Dilemma 11.1 Is it Really 45 Percent Off? 356
Everyday Low Pricing (EDLP) 356
High/Low Pricing 356
Social and Mobile Marketing 11.1 Price-Check on Aisle … Anywhere 357
Pricing Tactics 357
Pricing Tactics Aimed at Consumers 358
Consumer Price Reductions 359
Business-to-Business Pricing Tactics and Discounts 360
Legal and Ethical Aspects of Pricing 362
Deceptive or Illegal Price Advertising 362
Predatory Pricing 363

Table of Contents xiii

 Price Discrimination 363
Price Fixing 364
Learning Objectives Review 365
Key Terms 366
Concept Review 366
Marketing Applications 367
Toolkit 367
Net Savvy 368
Chapter Case Study: Battle Royale: Apple Versus Amazon 368

Value Delivery: Designing the Distribution Channel

SECTION SIX and Supply Chain 370
12 Distribution Channels 371
The Importance of Distribution 372
Entrepreneurial Marketing 12.1 Chocolate with a
Purpose 373
Distribution Channels, Supply Chain, and Logistics Are
Related 374
Designing Distribution Channels 375
Channel Structure 375
Push Versus Pull Distribution Strategies 377
Social and Mobile Marketing 12.1 Clearly a Winning
Strategy 378
Distribution Intensity 379
Distribution Channels Add Value 381
Managing Distribution Channels 383
Logistics Management: Making Information Flow 386
Data Warehouse 388
Electronic Data Interchange 388
Managing Supply Chains Through Strategic Relationships 389
Ethical Dilemma 12.1 Do Customers Care More about the Newest iPhone or
about Working Conditions in China 391
Logistics Management: Making Merchandise Flow 392
Inbound Transportation 392
Receiving and Checking 392
Storing and Cross-Docking 392
Getting Merchandise Floor-Ready 393
Shipping Merchandise to Stores 393
Inventory Management Through Just-In-Time Systems 394
Sustainable Marketing 12.1 Driving the Bottom Line 394
Real Marketer Profile: David Chilton 395
Learning Objectives Review 396
Key Terms 396
Concept Review 397
Marketing Applications 397
Net Savvy 398
Chapter Case Study: Zara Delivers Fast Fashion 398

13 Retailing and Multichanneled Marketing 401

Choosing Retail Partners 404
Channel Structure 404

xiv Table of Contents

 Customer Expectations 405
Channel Member Characteristics 405
Identifying Types of Retailers 405
Food Retailers 406
General Merchandise Retailers 406
Entrepreneurial Marketing 13.1 Our Ice Is Cooler 407
Social and Mobile Marketing 13.1 Buy, Play, and Sell,
Wherever You Choose 408
Developing a Retail Strategy 410
Product (Merchandise Assortment) 411
Price 411
Entrepreneurial Marketing 13.2 Giant Tiger Stakes Its
Territory 413
Promotion 413
Presentation (Store Design and Display) 414
Personnel 417
Sustainable Marketing 13.1 IKEA’s Never-ending List 417
Place 418
Managing Multichannel Options 418
Benefits of Stores for Consumers 419
Benefits of the Internet and Multichannel Retailing 420
Ethical Dilemma 13.1 Protecting Consumer Privacy 422
Effective Multichannel Retailing 424
Learning Objectives Review 426
Key Terms 426
Concept Review 427
Marketing Applications 427
Net Savvy 428
Chapter Case Study: Target and Its New Generation of Partnerships 428

SECTION SEVEN Value Communication 430

14 Integrated Marketing Communications 431

Communicating with Consumers 433
The Communication Process 433
How Consumers Perceive Communication 434
Steps in Planning an IMC Campaign 435
1. Identify Target Audience 436
2. Set Objectives 436
3. Determine Budget 438
4. Convey Message 440
5. Evaluate and Select Media 441
6. Create Communication 444
7. Assess Impact by Using Marketing Metrics 445
Sustainable Marketing 14.1 Ideas that Build Sustainability 446
Planning, Implementing, and Evaluating IMC Programs—An Illustration of Google
Advertising 447
Integrated Marketing Communications Tools 449
Advertising 450
Ethical Dilemma 14.1 Too Skinny 451

Table of Contents xv
 Personal Selling 452
Sales Promotions 452
Direct Marketing 452
Public Relations 456
Digital Media 458
Entrepreneurial Marketing 14.1 From Driving Range to Digital Agency 459
Social and Mobile Marketing 14.1 Do You #smallenfreuden? 461
Real Marketer Profile: Ami Shah 462
Learning Objectives Review 463
Key Terms 464
Concept Review 464
Marketing Applications 464
Toolkit 465
Net Savvy 465
Chapter Case Study: Jay-Z and Bing: The Campaign to Convert Jay-Z Decoders into
Bing Users 466

15 Advertising, Sales Promotions, and Personal Selling 469

Advertising 470
The AIDA Model 470
Advertising Objectives 473
Entrepreneurial Marketing 15.1 Responsible Advertising
Hangs on the Smart Hanger 476
Regulatory and Ethical Issues in Advertising 479
Ethical Dilemma 15.1 When Makeup Companies Really Do
Make Up Models’ Faces 481
Sales Promotion 481
Consumer Sales Promotions 481
Social and Mobile Marketing 15.1 Effective Friending 483
Sustainable Marketing 15.1 Nabob: Blending Quality with
Sustainability 485
Trade Channel Sales Promotions 487
Using Sales Promotion Tools 487
Evaluating Sales Promotions by Using Marketing Metrics 488
Personal Selling 489
The Scope and Nature of Personal Selling 489
The Value Added by Personal Selling 490
The Personal Selling Process 491
Step 1: Generate and Qualify Leads 492
Step 2: Preapproach 493
Sales 3: Sales Presentation and Overcoming Objections 494
Step 4: Closing the Sale 495
Step 5: Follow-Up 496
Real Marketer Profile: Arlene Dickinson 496
Learning Objectives Review 497
Key Terms 498
Concept Review 498
Marketing Applications 499
Toolkit 499
Net Savvy 500
Chapter Case Study: Making Mastercard Priceless 500

xvi Table of Contents

16 Social and Mobile Marketing 503
The 4E Framework for Social Media 504
Excite the Customer 505
Educate the Customer 506
Experience the Product or Service 506
Engage the Customer 507
Categories of Social Media 507
Social Network Sites 508
Social and Mobile Marketing 16.1 Toronto Zoo and FedEx Cause
“Pandamonium” 510
Media-sharing Sites 511
Thought-sharing Sites 513
Paid, Owned, Earned Media 515
Understanding Mobile Applications 515
Entrepreneurial Marketing 16.1 PumpedUp on Social Media 517
Ethical Dilemma 16.1 Internet vs. Brick-and-Mortar Stores 518
Engaging Customers Using Social Media 519
Listen 519
Analyze 520
Do 521
Managing Your Personal Brand in a Social Media World 523
Learning Objectives Review 525
Key Terms 525
Concept Review 526
Marketing Applications 526
Net Savvy 526
Chapter Case Study: Social Media Give Dell a Direct Connection to Its Customers 527

SECTION EIGHT Marketing in the Global Environment 530

17 Global Marketing 531

Assessing Global Markets 533
Analyzing the Political and Legal Environment 534
Analyzing the Economic Environment Using Metrics 537
Analyzing Sociocultural Factors 542
Analyzing Technology and Infrastructure Capabilities 544
Sustainable Marketing 16.1 Bombardier: Moving Forward Responsibly 545
The Appeal of the BRIC Countries 546
Ethical Dilemma 17.1 Can Social Networking and Censorship Coexist? 547
Choosing a Global Entry Strategy 548
Exporting 548
Franchising 549
Entrepreneurial Marketing 17.1 Get Ready to ParTea 550
Strategic Alliance 550
Joint Venture 552
Direct Investment 553
Choosing a Global Marketing Strategy 553
Target Market: Segmentation, Targeting, and Positioning 553
The Global Marketing Mix 554

Table of Contents xvii

 Social and Mobile Marketing 17.1 Lady Gaga Is More Popular than Barack
Obama 558
Ethical Issues in Global Marketing 559
Environmental Concerns 559
Global Labour Issues 559
Impact on Host Country Culture 560
Learning Objectives Review 561
Key Terms 561
Concept Review 562
Marketing Applications 562
Net Savvy 563
Chapter Case Study: Racing to Capture China’s Luxury Car Market 563

18 Ethics and Socially Responsible Marketing 567

The Scope of Marketing Ethics 569
Ethical Issues Associated with Marketing Decisions 569
Creating an Ethical Climate in the Workplace 570
The Influence of Personal Ethics 571
Corporate Social Responsibility 573
Sustainable Marketing 18.1 McDonald’s Global Sustainability
Scorecard 574
Consumerism, Ethics, and Socially Responsible Practices 577
Entrepreneurial Marketing 18.1 Money Does Grow on
Trees 579
A Framework for Ethical Decision Making 581
Integrating Ethics into Marketing Strategy 584
Planning Phase 584
Implementation Phase 585
Social and Mobile Marketing 18.1 Who Tweeted Me to Buy a Ford Fiesta? 586
Control Phase 586
Ethical Dilemma 18.1 Check-ins and Facebook Can Be Dangerous 587
Understanding Ethics by Using Scenarios 587
Scenario 1: Retailers Lack Ethical Guidelines 587
Scenario 2: Giving Credit Where Credit Isn’t Due 588
Scenario 3: The Jeweller’s Tarnished Image 588
Scenario 4: No Wonder It’s So Good 589
Scenario 5: Bright Baby’s Bright Idea 589
Learning Objectives Review 590
Key Terms 590
Concept Review 591
Marketing Applications 591
Net Savvy 592
Chapter Case Study: Whose Side Are You On? 592

Glossary GL-1
Endnotes EN-1
Credits CR-1
Index IN-1

xviii Table of Contents

 what is marketing?
THE FUNCTION OF MARKETING IS
MULTI-FACETED, BUT ITS FUNDAMENTAL
PURPOSE IS TO CREATE VALUE.
CONSIDER THESE EXAMPLES:

Why do people buy lululemon yoga pants for well over

$100 when they could buy another pair at Walmart
for under $20? The answer lies in marketing brand value:
lululemon has created a cache for its branded clothing with
grassroots advertising and innovative fabrics and styles. When
trendsetters start to wear these brands, others follow.

Similarly, why would anyone pay for bottled water when

they could get it for free from a tap? Companies such
as Aberfoyle Springs, Clearly Canadian, Canadian Springs,
and Montclair have created bottled water products that offer
customers the convenience of an easy-to-carry format. But after
years of explosive growth, the industry is facing challenges.
Environmental concerns have led to unprecedented criticism
related to the sea of plastic bottles hitting landfill and
recycling sites. Many municipalities have banned bottled
water outright.

Regardless of your age, your gender, or the city in which you live, you already
know something about marketing. You have been an involved consumer in the
marketing process since childhood when, for example, you accompanied your mother or
father to the grocery store and asked to buy a particular brand of cereal because you saw
a friend eating it or heard about it on television. The prize inside the box of cereal was of
value to you as a child; the nutritional information offered on the box panel was of value
to your mother or father. Once you begin to explore the many ways in which companies
and brands create value for their customers through marketing, you will also begin to
appreciate the complex set of decisions and activities that are necessary to provide you
with the products and services you use every day.

Preface xix
 changes to the third canadian edition
The prevalence and power of the Internet has created a marketplace of more informed and
savvy customers than ever before. Those who teach the marketers of the future need to
account for the consumer’s ability to assess the marketplace at their fingertips and discern
good value from poor value. Marketing, Third Canadian Edition, is all about the core con-
cepts and tools that help marketers create value for customers. Throughout this book you
will find many examples that define how companies create value for customers through
branding, packaging, pricing, retailing, service, and advertising. We introduce the concept
of value in Chapter 1 and carry it through the entire text.

SECTION ONE Assessing the Marketplace

The first section of the text contains three chapters
and the central theme of the section is “Assessing the
Marketplace.” Following an introduction to marketing in
Chapter 1, Chapter 2 focuses on how a firm develops a
marketing plan. A central theme of the chapter is how firms
can effectively create, capture, deliver, and communicate
value to their customers. Finally, Chapter 3, Analyzing the
Marketing Environment, focuses on how marketers can
systematically uncover and evaluate opportunities.
Cha ng es to S ection One inclu de:
● New Chapter Vignettes in Chapters 1 and 2, and a
revised Chapter Vignette for Chapter 3.
● New Social & Mobile Marketing boxes in all three
chapters.
● New Sustainable Marketing box in Chapter 3.
● New Entrepreneurial Marketing boxes in all chapters.
● Revised coverage on marketing orientations in Chapter 1
to make it easier for students to appreciate the different
ways marketing is practiced. Also, added a short
discussion and an example showing how the four Ps
need to be integrated and coordinated into a seamless
whole rather than treated as individual components of
the marketing mix.
● More emphasis on the role of social media in market-
ing and the importance of sustainable marketing in
Chapter 1.
● A continued focus on ethics with new Ethical Dilemma
boxes in Chapters 1 and 3.
● The marketing strategies section was revised to make it
simpler to follow.
● The inclusion of an appendix that walks students
through the process and components of Writing a
Marketing Plan.
● A discussion of the recession in the economic factors
section in Chapter 3.

SECTION TWO Understanding the Marketplace

The second section of the book deals with “Understanding
the Marketplace” and is composed of two chapters.
Chapter 4, Consumer Behaviour, focuses on all aspects
of understanding why consumers purchase products and
services. The consumer decision process is highlighted.
Chapter 5, Business-to-Business Marketing, focuses on all
aspects pertaining to why and how business-to-business
buying takes place.
Cha ng es to S ection Two inclu de:
● New Chapter Vignette in Chapter 4.
● New Social & Mobile Marketing boxes in Chapters 4
and 5.
● New Entrepreneurial Marketing boxes in Chapters 4
and 5.
● New Chapter Case Study in Chapter 5.
● New examples of strategies and tactics marketers use at
each stage of the consumer process in Chapter 4.
● A discussion in Chapter 4 about how marketers can
mitigate the various risks associated with the consumer
buying decision.
● A new section in Chapter 5 about the challenges in
reaching and serving B2B customers.

xx Preface
SECTION THREE Targeting the Marketplace
The third section of the book deals with “Targeting the
Marketplace.” Chapter 6 focuses on segmentation, target-
ing, and positioning. In this chapter, we focus on how firms
segment the marketplace, pick a target market, and then
position their good/service in line with their customers’
needs and wants. Chapter 7, Marketing Research, identi-
fies the various tools and techniques that marketers use
to uncover these needs and ensure that they create goods
and services that provide value to their target markets.
Cha nges to S ection Three includ e :
● A new Chapter Vignette for Chapter 7.
● New Social & Mobile Marketing boxes in Chapters 6
and 7.
SECTION FOUR Value Creation
Marketing, Third Canadian Edition, devotes three chapters
to Value Creation. The first two, Chapter 8, Developing
New Products, and Chapter 9, Product, Branding, and
Packaging Decisions, cover the development and manage-
ment of products and brands. While many of the concepts
involved in developing and managing services are similar
to those of physical brands, Chapter 10, Services: The
Intangible Product, addresses the unique challenges of
the marketing of services.
Cha nges to S ection Fou r inclu d e:
● New Chapter Vignettes in Chapters 8, 9 and 10.
● New Social & Mobile Marketing boxes in all three
chapters.
SECTION FIVE Transacting Value
Pricing is the activity within a firm responsible for
Transacting Value by bringing in money and affecting rev-
enues. Chapter 11 examines the importance of setting the
right price, the relationship between price and quantity
sold, break-even analysis, the impact of price wars, and
how the Internet has changed the way people shop.
Cha nges to S ection Five in cl ude :
● A new Chapter Vignette.
● The following new boxed features: Social & Mobile
Marketing, Sustainable Marketing, Ethical Dilemma.
● A new Ethical Dilemma box in Chapter 7.
● A new Sustainable Marketing box in Chapter 6.
● Revised Chapter Case Studies.
● A new Real Marketer profile in Chapter 7.
● Added an expanded discussion in Chapter 7 explain-
ing how marketers use research, including examples of
the types of objectives set and how the research might
be conducted.
● The addition of an appendix, Using Secondary Data to
Assess Customer Lifetime Value (CLV), to demonstrate
the expected financial contribution from a customer
to a company’s overall profitability over the course of
the relationship.
● New Ethical Dilemma boxes in Chapters 9 and 10.
● New Entrepreneurial Marketing boxes in Chapters 8
and 9.
● A new Real Marketer profile in Chapter 10.
● New Chapter Case Studies in Chapters 8 and 10, and a
revised Chapter Case Study in Chapter 9.
● A discussion of metrics in Chapter 10 in a section titled
“Evaluating Service Quality by Using Well-Established
Marketing Metrics.”
● A revised Chapter Case Study.
● An expanded discussion of competition that now
includes four levels: oligopolistic competition, monopo-
listic competition, pure competition, and monopoly.
● An updated discussion of daily deal companies, such as
Groupon and WagJag, that reflects how companies are
offering pricing deals to groups of consumers.
Preface xxi
 Value Delivery: Designing the Marketing Channel
SECTION SIX and Supply Chain
One important reason why Walmart has become the
world’s largest retailer is its Value Delivery system. It
times the delivery of merchandise so the merchandise
gets to stores just in time to meet customer demand. To
achieve this, it has initiated many innovative programs
with its vendors and developed sophisticated trans-
portation and warehousing systems. Marketing, Third
Canadian Edition, devotes two chapters to value delivery.
Chapter 12 takes a look at marketing channels, distribution
strategy, and supply chain, while Chapter 13 concentrates
on retailing.
SECTION SEVEN Value Communications
Today’s methods of Value Communication are complex
because of new technologies that add email, blogs, the
Internet, and social media to the advertising mix that once
utilized only radio and television to relay messages to con-
sumers. Marketing, Third Canadian Edition, devotes two
chapters to value communication. Chapter 14 introduces
the breadth of integrated marketing communications.
Chapter 15 is devoted to advertising, sales promotions,
and personal selling. Chapter 16 is an all new addition to
the textbook focusing on Social and Mobile Marketing.
Cha ng es to S ection S even incl ude:
● New Chapter Vignettes for Chapters 15 and 16.
● New Social & Mobile Marketing boxes in all three
chapters.
SECTION EIGHT Marketing in the Global Environment
Most firms are involved in Global Marketing at some level.
In less than 10 years, lululemon has been transformed into
a global company and a great Canadian success story in
the athletic and sportswear industry. But even small entre-
preneurial firms are also involved because they get their
materials, products, or services from firms located in other
countries. Chapter 17 is devoted exclusively to this topic.
Chapter 18 focuses on Ethics and Socially Responsible
Marketing and has been moved from Connect to the hard
copy edition of the textbook. The chapter provides rich
illustrations of corporate responsibility and introduces
an ethical decision-making framework that is useful for
xxii Preface
Ch an g es to S e c ti o n S i x i nc lud e :
● A new Chapter Vignette in Chapter 12, and a revised
Chapter Vignette in Chapter 13.
● The following new boxed features: Social & Mobile
Marketing and Entrepreneurial Marketing.
● A new Real Marketer Profile for Chapter 12.
● The discussion on retailing in Chapter 13 has been
revised to show students how retail partners are chosen,
identifying the types of retailers a company may want to
use, creating a retail strategy, and exploring a multichan-
nel strategy. This last section in multichannel retailing
contains significantly new content.
● Reorganization of Chapter 14 to present the Steps in
Planning an IMC Campaign first, followed by the IMC
Tools available for use in campaigns.
● A new Entrepreneurial Marketing box in Chapter 16.
● Revised in-depth coverage of direct marketing in
Chapter 14.
● Expanded information in Chapter 14, under “Digital
Media” heading, to focus more on online ads, social
media, and mobile apps.
● New section on implementing a Google AdWords cam-
paign in Chapter 14.
● New Real Marketer profile in Chapter 15.
assessing potential ethically troubling situations that are
posed throughout the rest of the book. It can be used to
set the tone for ethical material throughout the textbook
as desired.
Ch an g es to S e c ti o n Ei g ht i n cl u d e :
● New Chapter Vignettes.
● New Chapter Case Studies.
● The following new boxed features: Ethical Dilemma,
Social & Mobile Marketing, and Entrepreneurial
Marketing.
● A new Sustainable Marketing box for Chapter 18.
 features inside Marketing
third canadian edition
In addition to our emphasis on value in Marketing, Third Canadian Edition, you will also
find integrated and highlighted coverage of ethics, entrepreneurship, services, social and
mobile marketing, sustainability, and globalization within the framework of the market-
ing discipline:

Chapters 1 to 18 each contain an Ethical Ethical 5

Dilemma box with a compelling ethical Fake are
umer Reviews
trying al
Dilemma Al 10.1
o a
discussion and end-of-chapter discussion
Yelp, TripAdvisor, and Amazon
gardeninghave nit
all made user rat
al results ugg tpost
thatreview —and promised
this program is huge that if those r everywhere
y successfu vi w w e
questions that force students to consider ings and reviews a familiar—and
has beeneven essential—part
in oduced Compofs ngpositive,
has a sothespawned
customer bu would receive
iness a completeasrefund.
opportunities seen
and evaluate each situation. The Third the online toolbox for shoppers
Entrep neu
From the consumer’s perspective,
and other
al M consumers.
rketing 3 Within
The trendweeks, nearlymarket
for green all of ng
thei company’s 355 st
likely to pers online
as w
till ha e awhat
longbetter
way tprepara-
g A reviews gave
rding a C the
nf VIP
rencDeals leather
Board case fourr or
f Canada p five stars.
r Cana
Canadian Edition contains thirteen new tion could there be for a major
ans prpurchase
duce morethangarbag
to see what
tha But Amazon guidelines prohibit compensation
ny ther country in th d el p d w r d and u e lm for cus-
other, objective customers have to say about the product tomer reviews, and the VIP Deals page soon disappeared.
Ethical Dilemmas. oub h a
or service under consideration?
ff f h .73
A leather case for your iPad is one thing. Accurate,
F r c p s ng i nm n ally f i dly p d , h g en ke
For retailers and service professionals, online reviews truthful information takes on paramount importance for
ren some
offer a huge benefit too. For ep companies,
esents a g especially
t ppo na ty F rms hat el products
service like plastic surgery. But cons de ed harm
Lifestyle lt t
Lift seemed
envcannot
small service providers that ronm afford
nt maymuch nd market-
this t a reat to t eir bus ne a d must nnovat
to disregard customers expectations that they could t stay
ing online reviews functb nsiness
s ow C cmpan
st f res also nee
f adv or rcsevabove
truthsuspicions o gree
ul i f rm tion Whe washing
u h py ousshow i
m rs

Entrepreneurship. An entrepreneurial Entrepreneurial

spirit pervades most marketing innova-
tions and is necessary to keep firms
growing and healthy. Marketing, Third
Canadian Edition, nurtures that entre-
preneurial spirit by providing examples
of young entrepreneurial firms and suc-
cessful entrepreneurs such as lululemon,
Cora’s Restaurants, Bullfrog Power,
AWAKE Chocolate, and more.
Turning Trash into Cash75
Marketing 3.1
Lisa von Sturmer is a compost cru- business grow to $212,000 in the sec-
sader who sees dollar signs in dirt. ond year, leaving enough profits to
After a weeklong vacation with friends pay von Sturmer a salary of $55,000.
on Savary Island in British Columbia, In spite of having no business back-
where composting is mandatory, she ground, von Sturmer has won numer-
was shocked to see how little waste the ous awards including the 2010 Small
group generated. When she returned Business BC’s Best Business Concept
to work she was dismayed at how much award,76 and 2012 Canadian Youth
organic material was thrown in the gar- Business Foundation’s National Best
bage, especially since her recent expe- Green Business award.77 By the third
rience had shown just how much of it year, the company had contracts with
could diverted That insight was the 82 offices in Vancouver Richmond

v ce c p c p , m e es y u g n c d
And each chapter contains an Entrepreneuriali Marketing
he Vanco v r ar box To that
implif depicts recognizable
matt s H bSpo helps ts client
and interesting young entrepreneurial firms. There are 12 new Entrepreneurial
Ac ordin o von Stus mer a platforms an Marketing
67 per-
cial med
m
tracks the resu
n y k
boxes in the Third Canadian Edition. Special focus
from theiso fice
given
and toh csuccessful
ndu t an por entrepreneurs
triale sec l g ng a d uides
r a gr
Dragons
who have pitched their business ideas on CBC’s 015 Den
rganic m te ials w

c t d p i c r
To complement the Entrepreneurial Marketing Ca and ad other
il a s inset boxes
impl nalytics there
nt ban toi elp th m
cash are
w co or G14
h her ow videos
nat and
ng Cityiss
o fi
from CBC’s Dragons’ Den available on Connect he which
comin correspond
s
a is
years And that with specific
gei k i
boxes and
yzputth ngr ult orstthr e. y a s, MH d
d 772 i
examples in the text such as how AWAKE Chocolate worked
way they dea with organic with
aste laT evDavid
A solution?
y eas
C y plac ain p omp b y
Chilton to secure distribution for their new products mpl Dragons
kitch ns The e s mply p dDen their fologo
t
dprscr
signifies which examples have a video.

Social & Mobile Marketing boxes further

explore the explosive growth of tools such
as Facebook, YouTube, and Twitter, which
help marketers communicate with their
target markets and promote products or
services to them.
For example, Chapter 14 discusses how Visa
uses Twitter to launch its #Smallenfreuden
campaign to convince consumers to use
their credit cards for smaller purchases.
Social and Mobile Do You #smallenfreuden?
Marketing 14.1
When orange billboards popped up in Toronto asking
“DO YOU #smallenfreuden?,” consumers were con-
fused. No identifying information was included—no tag-
line, no logo, no hints as to what company was behind
the teaser campaign. And what the heck did smallen-
freuden mean?
One week later, Visa Canada stepped forward claim-
ing the #smallenfreuden campaign stood for the joy of
small; in this case, making small purchases using your
Visa card. Because smallenfreuden was an unusual
word, the creative team at Visa’s ad agency, BBDO,
felt it made sense to introduce consumers to the term
aired during playoff games. Social media saw heavy use
throughout the campaign with promoted trends and
promoted tweets on Twitter. Consumers could win a trip
to NHL final games through “The Visa Ultimate NHL
Experience Contest” which was run on Facebook.
The objectives of the campaign were to spark
intrigue, create awareness, and drive engagement. It
certainly created a buzz, generating more than 20,00
social media mentions for @VisaCA (five times higher
than the usual daily average), and 50 million views on
Twitter.70 A YouTube video attracted 400,000 views.71
Twitter Canada chose #smallenfreuden as one of

Preface xxiii
 Sustainable Marketing boxes encourage
students to consider the environmental
concerns that marketers face in bringing
new products and services to the market.
Many companies have faced increased
scrutiny and criticism over the use of plas-
tic packaging and recycling issues. The
boxes will help students see how smart
marketers are embracing sustainability
for the good of their companies as well as
for consumers.
Sustainable Driving the Bottom Line
Marketing 12.1
If you like Frito-Lay SunChips, you may remember its
100 percent compostable bag. Made primarily of the
plant-based material polylactic acid, the bag will com-
pletely break down in 14 weeks. It was all part of Frito-
Lay Canada’s “Leave No Trace” sustainability vision. The
company set clear goals to use less water, electricity,
and fuel and to reduce waste for everything it makes,
moves, and sells.33 At Frito-Lay, financial achievement is
gauged by social and environmental performance.
With one of the largest private delivery fleets in
Canada, Frito-Lay is keenly aware of the profound effect
efficient vehicles can have on its carbon footprint. It has
the majority of routes from its distribution centres in
Brampton, Ottawa, Surrey, and Laval. The electricity the
vehicles used was offset by renewable energy credits,
and even the batteries could be recycled at the end of
their lives. Due to the impact of cold Canadian winters
on overall battery life, the trucks have since been relo-
cated to the United States, where the fleet is enjoying a
dramatic expansion.
The company’s sustainability initiatives go far beyond
fleet management. Frito-Lay Canada’s efforts have
resulted in saving 5 4 billion litres of water since 1999. It
has been able to divert over 95 percent of manufacturing

g l g
For example, in Chapter 12 we discuss Frito Lay han
Canada
compa ableinitiatives
mode s, new l such
w emi s as reducing
on engine water
tech- exhaust m
and electrical consumption, optimizing deliveryp gy,routes
miz
d
and
tion of del
d g u l p
ver switching
r ha a ow to
b g
d F tzero-emission
L y
g o y
it has als
electric vehicles.

Real Marketer Profile boxes appear in

REAL MARKETER PROFILE David Chilton
eight chapters. They focus on the transi-
tion students make from attending post- Armed with a degree in economics Podleski sisters in Granet Publish-
secondary education to applying their and an award for achieving the high- ing to produce two more best-selling
est mark in the country on the Cana- cookbooks: Crazy Plates and Eat,
marketing skills in the “real” world. While dian Securities Course, David Chilton Shrink & Be Merry!
started his career as a stockbroker. Chilton also worked with the sis-
some of the profiles feature relatively Working with clients led him to the ters to bring a frozen entrée, Crazy
new graduates who are still with their realization that while there were a
lot of books about personal finances,
Plates t a Loblaws
ng S ra egi and arketing Pl n

While normally very difficult to secure

grocery
APT R2 stores.

first employer, others show the career there weren’t many that made
the topic easy to understand. He
distribution,
ele on s b an

ati great
cl im dbrand
Chilton
that t r and wa no
said that “having
p le o e ook th

sales
hing of vo over 1 3 mil-

paths that grads and seasoned veterans

c i s Ap le41 o n y de
soon changed that, publishing The lion cookbooks” th t helped
f lt dopen doors.
Wealthy Barber, when he was only However,
d
initial
p cha e
salesc
ofe
the frozen
have taken within a company or in a new
t h ly f l t
27 years old. The book introduced fd image
od as linew did
rld c not
ss inn meet
v tive t expectations.
h
n fo b e n
Canadians to Roy, a barber who While
ome from consumers
behind to d s odg lov d the concept,
role at a different organization.
establish d

imparted sound financial advice while the

n
packaging
o gy
and g t
large size didn’t

o n m
For example, in Chapter 12 we discuss David Chilton’s
en f phenomenal
umo r he book qu ck success
be ame a be story
s lle it from
oc tion l Exnew
e lence
l
m io e best sel i g boo
s Dragonsnges
l i i
grad, to stockbroker, to author, to publisher, to one
ll ofi the
C dragons on CBC Den.
th
three o
il t
m r nt t ng
d

REINFORCING LEARNING WHATre IS

e
A MARKETING
a n
D f
A marketinat
s o
mix he xtrao
g on
t on
a
t gy
STRATEGY?
d offering g e t p ices The ompa
B
timeide ort fie
nt a b a
M
a rea
(1) n fblem’s rice
p n f
o P d nary (3e tpe ta ionsupandw don the pec
dO
t ge Atmtheket(
m
sam) (tim
) ret tcustome
bj i e nd
d s do
keting
op of
i m p ans o bui d a susta nable
i s
LO1

ma ket ng strategy
Ab d c t f
competit fve ad antag v sAt s stainabl
ss gnm omp tit fl gve ad uantage is n ad a tag ov r Ide’ ti bjes a irms ad th t
i e ? dai W d 1 fud fil
t ing
do tall of hel eh u l d bj cti ? marke fs) a related ma
the compof ticer n ain
h t i pot ts silyBy pi d thu n maintained over a long period l ket-
h se ns rategies al bWestJet
e ihas demust we d th h g e co p e l ing
um d x— khe four Ps and
of t me A o iti ge s lop d w a huget cadre
th irm h s built a ound its posi
tion in m rket o g This
cu wa el makn s tas ard lt r compe gtors ao c nta t u tome 5s inside Of nthe bases
t upon a which
qu the
’ l harbyund i s position
g th l thef valuefi ’player
t k n dthe p i di id d H Whm p ans of bui d a susta ? -
LEARNING as

Learning
n rs la Objectives
a n pro u d Canadian airline industry t

s nd comp tit r achi OBJECTIVES THE

y
o it orgMARKETING
(
PLAN
nizations s ch s the Hea t O2
Strok
g
Eff ti tive md rketinga doTi n’tHoju tt hap ’ mi eni Firms
After studying this chapter d i

Listed at
tak the
s placebeginning
between companies of aiming
eachtochapter,
appeal to th you should be able to
t uch ad Rona
refully
N ’ nd did ’
to
it chad gl
t
pla
dFuturi Shop
their
to The
marketing
i
ges inl tht envif thnment
i
t
t Bays and
strategies
nt
d bNike
to re
ithe comFetition
i g
f it
lt
a le cu m r —wh ever h y e— s i e or
Learning Objectives show students the thnd thi r customers
y b
ibil reating
f e a mai ketingthe vplan
At marketid g h plan is t wr tten doc
h h ment cot t
Define a marketing t
env ronment n terms of i s
t h . LO1 Another key goal or objective often embedded in a mission statement is how the irm is opportuni ies and h ea s

main concepts
When t c mes discussed
to Nike and inside
idas for ex These
p e the c
strategy building a sustainable compe itivS CdvantONge

Step 2 Conduct a Situation Analysis LO3

Learning
tive cObjectives
ntes span a wealare h o then
produc presented
line , arget ma ke LO2 Describe the elements
of a marketing plan
After developing its mission a fico pany
SWOT analysis that assesses bot for thany
t must p
e
cons
n
foan
m y beitua
i tappar lncompany is w
a itt en it onlyt is
f re
staying
mar t
h gfashionab
r
e defens
i ga
e a ng
Str
b
N ke
h
m g a u m and Weaknesses (internal o analys re
g
s) pndndhe exee nal nvir nme cin terms
y
s pr
g
re
f ts Oppor

in the margins
c sely determi throughout
the market ng tra the
g e a chapter
i vel ping
i t i t ) gd bt eg fite ( n i k of
r dsD tSi
tunities eand Threats (external analys u ti gn n vy al go i clu p e an e ming Pnon
f i t d t ) Af d s i i hi h f h
d lans that A
Analyze a marketing
and f tness preferences through aggressive marketing Failure to respond in a timely and
c tar k p si on t a ir p ri
adequate manner cou d have a material adverse effect on our sales nd profitab lity This
LO3
when they are introduced.
omers and ensu At thei the
survivalend of
ty o pr c s th
to appeal to cus and ucce s
situation using a
is a c n inuing risk
k
n s q t r ng e y o
C y n r k g S
SWOT analysis lStep
b bl3 dentify id t ife tand
i i Evaluate
t d t t Opportun ki t htiesl by d Using t ea STP

each chapter,
1 70s s n the m ri nLearning
c mp ny foc Objectives
?W
LO4 itst h
(Segment
new vers ioppP d?
s ont ofi he T uni
rg iesting
A and e hodPositioning)
f examining
e m inly o the f l pr comple
Aft epting zthen situat
th reon analysis h o the ti g next step h Bis G to nidentify
t c and evaluate
E
Explain how a firm
are revisited
can mark and ts fi reviewed, reinforcing
STPa opportunitr of es
e for
d cypn reasymp ng sa e es andpprofitsicehby pusityg STP laruit (segmentat
p r unon targeting
1
t runn ng shoe eatured a then i n LO4 Th d ff cult
c toofaccug ands position
bo rng)a With
ven m STP
erket tsh
the fetrm mustl ustfiryo t w F hcustom
t understand o p r needs n and wants
c
chooses what consumer memoren o her g t measur
g d o d a market
through y o et research t uthegn o ep the
divide se mark r pdt or customers
o p rinto dngstinct
m subgroups
e g a l p so m ad tivegposit
g h on f and t

for students the key sections in the

’
or segments t determine
at v wh s Anch ofh ethos
r p segments k et should
i h pursue or target and
group(s) to pursue with d t typ
feren
p f t ndo lf ips
f f
op ortuni ies for ncreas-
rophly dec
fin yF dep chow g et prhould ct posit
o aon
eq its
ae product Tj a pandupervi s gesgto best
o umeet the needs

li d te i t i h l h t h i marketing efforts
its
o
r pp
duceic supp
og a though tphas thespotent l fof rbe
t ut
fo t helsproduct d and
it plosetiosa es
ngngya c ue t on ymaxpa
i gto he po n that ie it bandons
k heng ts mobile
pphe ing to more

chapterc ld.and But sallowing them to follow

ti f pti
hm hrket hthan
h it even expectf d bas Social f d M thbileffMarketingo 2 1 reveals
Forrest Gum recounte run ng also w
and

O
Outline the implementation oa Step
m re 4 Implement
b lan ed pproachMarketing
to al o ating M
heirx and Allocate
esou ces nste d Resources
o a s gn ng

their own progress to know where they

ng opu a ity am n c sual at l tes, nd j t lik LO5
LO5
a e o the marketing mix as a
of When the firm has
y iden ified and evaluated different growth opportun
ingl hn STP analysis
yt the
t real hction
th begins
b The bompa
l ties by perform
l w thy has decid hdthwhat to do how

need helpBy means to increase to do it and how many resources the firm should allocate to it In the fourth step of the
planning process marketers implement the marketing mix product price promotion

customer value and place for each product and service on the basis of what it believes its target mar
k t ill l (E hibit 2 7) At h ti it k i t td i i b th

D
Describe how firms grow
LO6 GROWTH STRATEGIES LO6
t
their businesses Firms consider pursuing various market segments as part of heir overall grow h strat
egies which may include the four major strategies shown in Exhibit 2 10 57 The rows
distinguish those opportunities a firm possesses in its current markets from those it has
in new markets whereas the columns distinguish between the firm’s current marketing
offering and that of a new opportunity Let’s consider each of them in detail

u gy
xxiv ePreface
ma nly to
Chapter Vignette
Each chapter begins with a Chapter
Vignette that helps to introduce and
illustrate some of the main content that
follows. These vignettes have been care-
fully selected to pique student interest
and are designed to provide real-world
examples of how the theory has been
Overview of Marketing
It’s nearing the end of the spring semester and it’s a hot day.
LEARNING
Leaving the sweltering classroom to go study you and your
friends decide to grab a drink. Someone suggests iced coffee. OBJECTIVES
There are several options on campus. Now the negotiations After studying this chapter
begin: Tim Hortons Iced Capp or a Starbucks Mocha Frap-
puccino? Someone wants a soy-based beverage instead of a
you should be able to

applied by a variety of companies. There
are 12 new Chapter Vignettes in the
Third Canadian Edition.
milk-based drink. Another friend insists it’s time for everyone LO1 Define the role of marketing
and explain its core
to check out the new McCafé for an Iced Latte. Although
concepts
McDonalds does not have a location on campus your friend
argues that the McCafé latte is cheaper and has fewer calo- LO2 Describe how marketers
ries. Each of these drinks represents a cool treat and various create value for a product
companies provide multiple options. So what’s the difference or service
among them and what makes customers loyal to one choice
LO3 Summarize the four
over another? orientations of marketing
Let’s think about the options available for any caffeine
LO4 Understand the importance
indulgence: hot cold or frozen; dark medium or light roast;
of marketing both within
and plain flavoured or blended drinks. You can also choose and outside the firm
from reduced-fat soy organic or fair-trade or add whipped
cream cinnamon or chocolate sprinkles. In the grocery store
while brands such as Nabob Maxwell House and Nescafe dominate the coffee
aisle you can also find products from Tim Hortons and Starbucks on the shelves.
McDonalds recently started to sell bagged coffee in its Canadian restaurants so
the company may be eyeing the grocery channel in the future as well.
To build and maintain a loyal customer base each company must distinguish
itself from its competitors by offering products services and a strong brand that
appeal to customers. Ranked number one in the Reputation Institute’s survey of
Canada’s top brands in 2013 and offering over 3400 restaurants Tim Hortons
is a brand many consumers gravitate toward.1 Having convenient locations and
a variety of product offerings has helped it win 42 percent of the quick-service
restaurant traffic in Canada.2 The company has differentiated itself through its
community involvement as a sponsor of Timbit minor sports. Its Children’s Foun-
dation highlights some of the company’s corporate social responsibility initia-
tives. For example storeowners hold annual Camp Days donating coffee sales
and collecting public donations to help send children from economically disad-
vantaged families to camp. The Tim Hortons Coffee Partnership has been work-
ing for almost a decade to improve the lives of coffee growers in South America.
The company publicly reports on sustainability and responsibility efforts is com-
mitted to building more LEED Certified restaurants3 and as part of a new pilot
project allows owners of electric vehicles to charge their cars at no cost.4

Unique End-of-Chapter Applications and Exercises

● Marketing Applications. Student-tested at Wilfrid Laurier University and the University
of Ottawa, these Marketing Application questions encourage students to become more
critical in their thinking of how marketing theory relates to practice. At least one of
the Marketing Applications in each chapter poses an ethical dilemma based on material
covered in the chapter.
● Net Savvy. Each chapter contains two exercises that drive students to the Internet
to apply material covered in the text. For example, in Chapter 15, we direct students
to the Concerned Children’s Advertisers website (www.cca-kids.ca), one of the major
self-regulatory bodies for children’s advertising. We ask students to choose a PSA and
discuss how these ads are used to deliver CCA’s message.
● End-of-Chapter Cases. Each chapter ends with a two- or three-page case covering a
current marketing idea, concept, or company.

Preface xxv
Another random document with
no related content on Scribd:
4010 Mercer John 12 July
F 26
14 July
4388 Malsby F Cav
A 31
19 Aug
4959 McDall R
A 7
38 Aug
5562 Manihan J
D 13
Aug
5618 Mageson J Cav 7A
14
42 Aug
5703 Mensome S, S’t
E 15
33 Aug
5713 Monroe S
F 15
80 Aug
5767 Montgomery R
F 15
Aug
5863 Michael S 7 I
16
30 Aug
6461 Mitchell J H
I 22
44 Aug
6521 Monroe H J, S’t
G 22
42 Aug
6566 Mathews M
K 23
Aug
7043 Milsker J 5D
27
42 Aug
7233 Matheny N, S’t
A 29
13 Aug
7272 McQueston J O
B 30
29 Sept
7510 Myers A
E 1
7820 Moore G, Cor 101 Sept
 F 4
Sept
7973 Mine John N 2H
6
101 Sept
8007 Miller W W
B 6
66 Sept
8176 McCoy W, S’t
B 8
Sept
8389 Murphy J 9E
10
93 Sept
8851 McElvain J
E 15
143 Sept
8925 Myers J
D 16
Sept
9575 Morrison J 4B
23
Sept
9600 Miller J Cav 7G
23
35 Sept
9856 Murgu A
D 27
Oct
10231 Monay G W 7E
2
93 Oct
10245 McFarney J
B 3
29 Oct
10394 Maples H
H 6
35 Oct
10891 Murphy F
B 13
74 Oct
10995 McDonald I
B 16
26 Oct
11166 Mills Milton
D 18
Oct
11271 Mitchell I 7K
21
11585 McCarty A 7A Oct
28
28 Oct
11665 McBeth I C
K 30
35 Oct
11680 Murphy F
C 31
Nov
11746 McCarty A 7A
2
Nov
11857 McCarty I 6A
6
30 Nov
11946 Miller F B
C 10
12 Jan
12548 Madlener L 65
K 27
30 Jan
12563 McFall I
A 31
Feb
12024 Manifold W Cav 6 I
9
Feb
12639 Montgomery W “ 5G
17
11 Feb
12709 Maloy I “
G 28
117 June
2007 Nossman G 64
G 15
Newcomb 22 July
3205
George A 12
July
3519 Nucha S Cav 3 I
18
Aug
4627 Napper W H, S’t 6 I
3
38 Aug
6528 Norton N A
B 23
10187 Note John H 39 Oct
 F 1
38 Dec
12226 Nichols J
G 5
Sept
9494 Newberry M Cav 7L
21
Apr
342 Oniel Thomas 6G
2
42 June
1874 Oliver John, Cor
- 12
July
2778 Oliver H H Cav 5M
2
120 Aug
5226 Oliver J
K 10
73 Aug
5361 Osborn J
E 11
19 Sept
7863 Oliver J
D 5
Sept
7911 O’Conner Thos Cav 5B
5
65 Oct
10940 Olinger E
A 14
35 Jan
12544 Ortell M 65
G 27
Feb
12590 Ousley W J 7A 65
5
66 Apr
287 Peache Cyrus 64
D 1
Apr
559 Pashby John Cav 6C
15
123 July
3484 Pavy W
A 17
42 July
3738 Palmer A
F 21
4008 Parker E, S’t 29 July
A 27
129 July
4171 Park John
B 28
53 Aug
4551 Pettis H
C 2
Aug
4553 Pruitt H C Cav 7K
2
22 Aug
5627 Prentice J M
K 14
Penat 38 Aug
6159
Alexander B 19
Aug
6278 Patterson E Cav 4G
20
65 Aug
6874 Parten D R
F 26
89 Sept
7710 Plough J W, S’t
D 3
29 Sept
8661 Pratt William
F 13
Sept
9196 Plumer A 2D
18
Sept
9705 Pope I T, S’t Cav 5G
24
93 Sept
9709 Patterson N S
G 24
39 Oct
10128 Packett T C, S’t
F 1
20 Nov
11880 Pangburn, S’t
B 6
99 Feb
12572 Potts I 65
H 2
12588 Phepps A 30 Feb
 D 4
May
1249 Packer Saml B Cav 6G 64
20
66 May
872 Remy John
B 4
57 May
944 Reed R
F 7
65 May
1065 Remcett L
H 13
117 June
1558 Roll N C
F 2
116 June
1696 Reese L
I 7
June
2140 Robinson L 7 I
18
38 July
4039 Rogman
I 26
39 July
4165 Reiggs K N
K 28
35 July
4400 Richardson I
I 31
117 Aug
5180 Rawlings J W
F 9
Aug
5259 Rains G D 4G
10
29 Aug
5454 Ritter Benjamin
K 12
68 Aug
5542 Ralph G
F 13
Roundbush Aug
6247 6B
Daniel 20
65 Aug
6383 Redyard A
F 21
6754 Russell J 7K Aug
24
Sept
7677 Ringold I Cav 7 I
3
Sept
8488 Russmore E Cav 2C
11
80 Sept
8577 Redman N E
F 12
Richardson 86 Sept
9521
John D 21
19 Aug
9547 Riggs L
E 23
42 Oct
10829 Reeves Wm
F 13
Oct
11410 Rierdon M D Bat 5 -
24
44 Oct
11451 Rutger W, Cor
D 25
13 Nov
11935 Russell W H
C 9
Jan
12454 Robinson R 8G 65
14
127 Jan
12523 Richardson E
E 26
35 May
1440 Ryan Martin 64
B 28
66 Aug
6707 Rawlings E, S’t
C 24
65 Mar
86 Smiley ——
I 21
66 Mar
129 Stein Thomas
D 23
205 Stonts —— 65 Mar
 I 28
Apr
768 Sanderson H Cav 6G
27
65 Apr
817 Sears I
I 30
20 May
901 Shick Eli
C 5
24 May
1039 Smith M C, Cor Bat
- 12
86 May
1331 Smith H
A 24
44 May
1400 Sapp A J
H 26
82 May
1430 Swindle T O, S’t
A 28
116 May
1501 Smith L
A 31
42 June
1611 Schroder W
A 4
66 June
1690 Sparks L D
D 7
June
1732 Search C Cav 5D
8
10 June
2079 Shigley T W
H 17
June
2083 Stinit D Cav 6L 64
17
June
2218 Smudley W 5E
20
30 June
2318 Swain J W
A 22
June
2420 Snow J Cav 5G
24
2447 Stafford J W 68 May
I 25
65 July
2740 Smith J
H 1
July
2799 Stanchley Wm 5K
2
29 July
2923 Stofer L, S’t
B 5
80 July
3416 Spencer M
K 16
128 July
4014 Shields J
F 26
38 July
4054 Smith J W
G 27
79 July
4062 Smith H
H 27
July
4088 Schneider S A Cav 3 -
27
35 July
4229 Sollman C, S’t
D 29
July
4418 Stevens M Cav 6M
31
117 Aug
4630 Snider D
K 3
29 Aug
4799 Summersvolt V
A 5
Aug
5254 Scott B 9D
10
Aug
5418 Smith Samuel E 9C
12
Aug
5513 Shoemaker E W Cav 5 I
13
5514 Sims S 101 Aug
 B 13
Aug
5571 Sackett J Cav 6G
14
68 Aug
5611 Stockman L M
E 14
66 Aug
5884 Standish M
B 16
19 Aug
5977 Stockhoff G
I 17
Aug
6044 Stout H 7G
18
82 Aug
6736 Sipe J
A 24
Aug
6830 Strong L 9F
25
80 Aug
7120 Spellman J
F 28
129 Aug
7264 Shaver F
I 30
Sept
7683 Snyder L Cav 6A
3
Sept
7822 Sanders D 7 I
4
66 Sept
8058 Suthien J H
E 7
Sept
8107 Starkey I Cav 6 I
7
123 Sept
8262 Sizeman I
B 9
Stagewald J M, 22 Sept
8313
S’t K 10
21 Sept
8623 Swillenger F
I 13
8666 Sylvanus J J 35 Sept
G 13
30 Sept
8727 Shoel J P
B 14
Sept
8910 Storm L M, S’t 6A
16
84 Sept
9093 Simmons J
I 18
13 Sept
9252 Sharp D M
E 19
43 Sept
9546 Sharpless W
G 23
17 Sept
9623 Smith S B
F 24
65 Sept
9807 Skeels W
A 26
131 Oct
10790 Smith George
D 12
39 Oct
10949 Smith I
I 14
44 Oct
11006 Sloat G W, S’t
B 16
Oct
11187 Seigfred G H Cav 4 I
19
Oct
11427 Sweitzer J 2G
24
99 Nov
11842 Shaw W R
B 5
74 Nov
11969 Shoe G W
E 12
29 Nov
11984 Steamer F
F 13
12113 Scarff F Cav 6D Nov
 21
93 Jan
12381 Starke M S 65
D 2
Jan
12492 Salts H C Cav 4F
20
12 Feb
12582 Smith D H “
H 3
66 Feb
12615 Sides G
A 8
Feb
12666 Smure C Cav 2G
17
38 Mar
12724 Stewart E B
E 3
72 Mar
12809 Staley G W
A 24
82 June
2625 Sattershwait A 64
I 28
117 Apr
518 Tenher James
I 13
65 July
3778 Tunblora B
B 22
July
3791 Thompson T Cav 6C
22
42 Aug
4733 Tooley G W
H 4
Aug
5065 Truman L H, S’t Cav 6G
8
63 Aug
5403 Taylor N 64
I 12
42 Aug
6509 Tooley W R, Cor
H 22
Aug
6719 Todd T 6B
24
7096 Thomas H D 42 Aug
I 28
Sept
7442 Taylor Geo H Cav 4M
1
30 Sept
8495 Trumble D A
A 11
25 Sept
8525 Taylor E
I 12
Oct
10438 Thomas M Cav 2 -
6
Nov
12337 Tucer B, Cit - -
26
Feb
12609 Terhune C Cav 9A 65
7
Tasnahet Chas, 33 Oct
10219 64
S’t E 2
Sept
10356 Underwood P Cav 7C
5
52 Oct
10760 Upton F M
A 12
June
1717 Voit T Cav 6K
8
30 Aug
5363 Venome James
K 11
93 Aug
6250 Vanose J
B 20
42 Sept
7691 Verhouse D
A 3
117 Mar
135 Windinger J
G 24
May
886 Walters J H, Cor Cav 6G
5
934 Williams A 6G May
 7
May
1194 Wright Saml Cav 6 I
18
June
1776 White P “ 6C
9
88 June
1812 Wise Eli
D 10
65 June
1918 Warren E
H 14
38 June
2107 Williams F
F 17
June
2242 West E Cav 7H
20
29 June
2363 Woodward W W
A 23
75 June
2417 Wilson J N
G 24
44 June
2467 Warden I
B 25
37 June
2554 Warren E
I 27
79 June
2670 Ward J
F 29
13 July
2900 Wyn W E
D 5
116 July
2929 Wislake I
I 5
July
2934 Wicks L Cav 6H
6
29 Aug
4528 Whitehead J
I 2
36 Aug
4639 Winship James
K 4
4826 Witt T 125 Aug
D 5
81 Aug
5399 Wade C
K 12
Aug
5547 Waynin J H Cav 4 I
13
Aug
6132 Washburn R H “ 6A
19
120 Aug
6405 Winders A
I 21
Aug
6524 Wagner M Cav 5 I
25
84 Aug
7184 Winters F W
C 29
42 Aug
7191 Wagoner E
A 29
Aug
7349 Witzgall John 2D
31
13 Sept
8943 Weiber Charles
F 16
Sept
9228 White W 7E
19
81 Sept
9316 Watkins J
A 20
129 Sept
6418 Wellington H
I 21
Sept
9501 Wilson J B 6E
21
Sept
9998 Wagner F 7D
29
29 Oct
10648 Ward J
G 11
11141 Whitehead N B Cav 5L Oct
 18
Oct
11424 White R B 6D
24
Oct
11602 Walters J 5 I
28
35 Nov
12708 Winebrook P
B 18
32 Dec
12316 Werper J
E 20
Dec
12341 White J 7A
26
13 Jan
12402 Wells J M 65
D 16
93 Jan
12497 What J
B 21
10 Mar
12737 Wade W Cav
M 6
July
3837 Weltz Ira, S’t 4B 64
23
Aug
6000 West S N, Cor 7B
17
38 Sept
9920 Williams J A, S’t
C 28
Aug
5055 Younce Chas A Cav 7 I
8
28 Aug
5838 Yorker Daniel
B 16
65 June
1540 Zuet J
H 1
Total
593.
 IOWA.
Aug
5560 Allen N 3K 64
13
Sept
8974 Ankobus L. Cor 6 I
17
11 Sept
9472 Ashford A W
C 21
31 Nov
11784 Alderman W W
F 4
Nov
11896 Austin Wm Cav 3A
7
May
1293 Bartche C P 5K
23
39 June
1570 Bingman W H
H 3
Aug
5276 Blanchard A 7A
10
Aug
6164 Bunsford M 7F
19
26 Sept
7779 Baird J J
H 4
15 Sept
8265 Buckmaster F
K 9
4 Sept
9301 Buell J
D 20
14 Sept
9456 Boylan C
G 21
Sept
9691 Boles M B - I
24
10749 Bellings J 5B Oct
 12
3 Oct
11334 Blakeley Geo
G 23
Collins Henry, 4 Mar
167
S’t G 26
April
328 Chenworth Wm 4K
2
27 Aug
4582 Cromwell G W
F 2
Aug
5101 Cooper S 5B
9
5 Aug
5244 Cox E E, Cor
G 9
5 Aug
5620 Cox W A
G 14
31 Aug
5999 Coder E
E 17
Aug
6378 Cox H 5 I
21
26 Aug
6604 Clamson Henry
I 23
Aug
6848 Collins M 3L
25
Culbertson S, 5 Sept
8062
Cor H 7
Sept
8352 Crow B 4E
10
Sept
9784 Coles J W, S’t 8K
26
3 Sept
9820 Cobb E Cav
C 26
Sept
10037 Cramer J M “ 5B
29
10901 Chapman J 3 Oct
G 14
Dec
12230 Chamberlain J B C 8A
6
June
2903 Davis S 3E
30
15 July
4206 Davis J
D 29
17 Sept
9229 Davis H
A 19
5 Aug
4675 Dermott L
G 4
26 Aug
6849 Discol S
I 25
31 Sept
9852 Dingman W
D 27
5 Oct
11098 Denoya W H
M 18
6 Nov
11753 Dutlin S Cav
C 2
12 Dec
12245 Durochis Wm
H 8
Derickson W W, 8 Feb
12657 C 65
Cor M 15
Mar
262 Ennis Wm 4B 64
31
Oct
11414 England G 9F
24
July
3705 Field Jacob 5K
21
2 Aug
4503 Farnsworth S
H 1
1316 Forney James M 10 May
 K 23
10 Sept
7715 Frue J
- 3
16 Sept
7378 Frederick J A
C 5
6 Sept
8380 Frussell G W
D 10
16 Sept
10048 Fordson Michael
H 29
Oct
11078 Fener J W Cav 3B
17
15 Feb
12701 Ferguson A W 65
A 28
6 April
750 Gain L 64
C 26
May
1484 Gender Jacob 5 I
30
4 Aug
5004 Gentle G
G 8
26 Aug
5836 Gunshaw C
- 16
11 Oct
10511 Gray J
C 7
8 Oct
10306 Gothard J
G 11
8 Aug
5461 Harris J Cav
H 13
11 Sept
8106 Hastings J, S’t
B 7
3 Sept
9379 Hird D, Cor
G 20
16 Sept
9417 Hudson M
B 21