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The fully updated eighth edition of Principles and Practice of Marketing continues to provide a contemporary and modern
introduction to marketing. With a renewed focus that covers the importance of customer value alongside the 4Ps, this
authoritative text provides students with a core understanding of the wider context and latest developments taking place within
marketing. A stimulating range of new resources and real world examples help to bring marketing to life.

Find out:

• How the bandwagon effect has contributed to the success of online group buying

• How IKEA delivers sustainable cotton and timber products to millions of customers

• How social marketing is combatting an obesity crisis

• How the relaunch of Netto became a case of fighter branding

• How crowdsourcing is evolving advertising

• How Abercrombie & Fitch's store environment could be heading it into the dark

Key Features:

• A brand new chapter on Relationship Marketing

• Newly updated structure to focus on the importance of Customer Value

• Fully updated to cover the latest technologies and digital developments

• New Marketing in Action boxes and Mini Cases focusing on European and Global companies including Spotify, Rovio,
Decathlon, Zara and Amazon

• 44 new and updated end­of­chapter cases provide insights from across a range of businesses; from high street fashion
stores and supermarkets (H&M, The Co­operative) and airlines and services (EasyJet, Pret A Manger), to digital
companies (ASOS, Google) and the music and film industries (Apple, Disney)

• Fully updated and streamlined pedagogy including refocused recommended readings at the end of each chapter,
allowing you to expand your knowledge

• New AdInsight boxes including active OR codes to keep you up­to­date with the latest marketing campaigns and
examples

Principles and Practice of Marketing is available with Connect™, LearnSmart™ and SmartBook™

• McGraw­Hill's Connect is a digital teaching and learning environment that improves performance over a variety of critical
outcomes; it can be tailored, is easy to use and is proven effective. Connect for Marketing includes access to our video
bank, containing insightful interviews with business leaders and marketing professionals. A suite of new videos has been
developed for this edition, featuring new content from Dixons Carphone, Graze, Hyundai, TheOutnet.com and Nudie
Jeans.

• LearnSmart is the most widely used and intelligent adaptive learning resource. Proven to promote subject mastery, it will
strengthen memory recall, improve course retention and boost grades.

• SmartBook – our fully adaptive eBook – is the first and only adaptive reading experience available today. It identifies and
closes knowledge gaps through a continually adapting reading experience that provides personalized learning resources
at a student’s precise moment of need, thus making study time both productive and efficient,

• Connect, LearnSmart and SmartBook are fully assignable, giving instructors and students a new and innovative way of
both teaching and learning

David Jobber is Emeritus Professor of Marketing at the University of Bradford, UK

Fiona Ellis­Chadwick is Senior Lecturer in Marketing and Retailing at the University of Loughborough,
UK
Side vi

Brief Table of Contents

Detailed Table of Contents vii
PART 1 Fundamentals of Marketing 1
1 Marketing and the Organization 3
2 The Marketing Environment 37
3 Consumer Behaviour 71
4 Organizational Buying 107
5 Marketing Ethics and Corporate Social Responsibility 135
6 Marketing Research and Business Intelligence 167
7 Market Segmentation and Positioning 203

PART 2 Creating Customer Value 243

8 Value Through Brands 245
9 Value Through Services 285
10 Value Through Relationships 313
11 Value Through Innovation 345
12 Value Through Pricing 375

PART 3 Communicating and Delivering Customer Value 402

13 Integrated Marketing Communications 411
14 Mass Marketing Communications 447
15 Direct Marketing Communications 491
16 Digital Marketing and Social Media 531
17 Distribution 565

PART 4 Marketing Planning and Strategy 601

18 Marketing Planning: An Overview of Strategic Analysis and Decision­making 603
19 Analysing Competitors and Creating a Competitive Advantage 637
20 Product Strategy: Product Lifecycle, Portfolio Planning and Product Growth Strategies 675
21 Global Marketing Strategy 705
22 Managing Marketing Implementation, Organization and Control 743
Side vii

Detailed Table of Contents

PART 1 Fundamentals of Marketing 1

1 Marketing and the Organization 3
Introduction to Principles and Practice of Marketing 4 What is Marketing? 5
Market versus Production Orientation 6
Understanding Market­driven Businesses 8
Efficiency Versus Effectiveness 11
Benefits and Limitations of the Marketing Concept as a Guiding Business Philosophy 12
Creating Customer Value, Satisfaction and Loyalty 14
Making Marketing Work: Developing Plans and Application of the Marketing Mix 18
Key Characteristics of an Effective Marketing Mix 20
Marketing and Business Performance 22
Criticisms of the 4­Ps Approach to Marketing Management 22
Review 24
Key Terms 26
Study Questions 26
Recommended Reading 27
References 27
CASE 1 Coca­Cola versus Pepsi 29
CASE 2 H&M Gets Hotter 32
2 The Marketing Environment 37
Political and Legal Forces 38
Legal and Regulatory Responses to Ethical Issues in Marketing 42
Economic Forces 42
Ecological/Physical Environmental Forces 47
Social/Cultural Forces 49
Technological Forces 53
The Microenvironment 55
Environmental Scanning 56
Responses to Environmental Change 57
Review 59
Key Terms 60
Study Questions 60
Recommended Reading 61
References 61
CASE 3 Searching for Sony’s Salvation 63
CASE 4 SodaStream: Adapting Itself to a Changing Market 69
3 Consumer Behaviour 71
The Dimensions of Buyer Behaviour 72
Consumer Behaviour 73
Influences on Consumer Behaviour 84
Review94
Key Terms96
Study Questions 97
Recommended Reading 97
References98
CASE 5 Cappuccino Hotshots 100
CASE 6 Red Bull 103
4 Organizational Buying 107
Characteristics of Organizational Buying 108
People and Process in Purchasing 110
Influences on Buying Decisions 117
Developments in Purchasing Practice 119
Review124
Key Terms125
Study Questions 126
Recommended Reading 126
References126
CASE 7 Flying in Tandem: Organizational Purchasing in the Airline Industry 128
CASE 8 AstraZeneca: Sweden and the UK Join Forces to Form a Production Power Base to Serve
New Market Habitats in the Pharmaceutical Industry 131
5 Marketing Ethics and Corporate Social Responsibility 135
Environmental 136
Social136
Economic136
Marketing Ethics 137
Ethical Issues in Marketing 138
Corporate Social Responsibility 143
Societal Marketing 152
Societal Responses to Ethical Issues in Marketing 156
Review158
Key Terms159
Study Questions 160
Recommended Reading 160
References160
CASE 9 The Co­operative—Leading the Way in Corporate Social Responsibility163
CASE 10 Coop Danmark’s Anti Food Wastage Initiatives: Social Responsibility or Good
Business?166
Side viii

6 Marketing Research and Business Intelligence 169

Business Intelligence and Marketing Information Systems 170
Types of Marketing Research 175
Stages in the Marketing Research Process 177
The Essential Differences between Qualitative and Quantitative Research 190
Ethical Issues in Marketing Research 191
Review 192
Key Terms 194
Study Questions 195
Recommended Reading 195
References 195
CASE 11 iPod: Research in Consumers’ Perceptions 197
CASE 12 TomTom: Helping Us Find Our Way Around the Planet 200

7 Market Segmentation and Positioning 203

Why Bother to Segment Markets? 204
The Process of Market Segmentation and Target Marketing 206
Segmenting Consumer Markets 207
Segmenting Organizational Markets 217
Target Marketing 220
Positioning 226
Review 230
Key Terms 231
Study Questions 232
Recommended Reading 232
References 232
CASE 13 Utilization of Loyalty Card Data for Segmentation—Morelli’s Story 235
CASE 14 Segmentation and Product Lines: The LEGO Case 240

PART 2 Creating Customer Value 243

8 Value Through Brands 245

Products, Services and Brands 246
The Product Line and Product Mix 246
 Brand Types 247
Why Strong Brands are Important 248
Brand Equity 250
Brand Building 252
Key Branding Decisions 258
Rebranding 261
Brand Extension and Stretching 263
Co­branding 266
Global and Pan­European Branding 269
Ethical Issues and Anti­branding 271
Review 273
Key Terms 275
Study Questions 276
Recommended Reading 276
References 276
CASE 15 Lessons in Co­Branding: The Apple/U2 Experience 279
CASE 16 Burberry 282

9 Value Through Services 285

The Service Industries 286
The Nature of Services 290
Managing Services 294
Review 304
Key Terms 305
Study Questions 305
Recommended Reading 305
References 306
CASE 17 Pret A Manger: ‘Passionate About Food’ 308
CASE 18 Nordstrom: A Shining Example of Service Excellence 311

10 Value Through Relationships 313

Value Creation 314
Key Concepts of Relationship Marketing 316
Value and Relational Networks 317
Types of Relationship Management 318
Managing Customer Relationships 320
 How to Build Relationships 320
Benefits for the Organization 322
Benefits for the Customer 324
Developing Customer Retention Strategies 325
Technology­enhanced Customer Relationship Management 328
Business­to­Business Relationship Development Strategies 332
Relationship Marketing—Summary 334
Review 335
Key Terms 336
Study Questions 337
Recommended Reading 337
References 337
CASE 19 Starbucks: Managing Customer Relationships One Cup at a Time 340
CASE 20 Sunderland Football Club and Bidvest Foodservice: Building a Beneficial Partnership
343

11 Value Through Innovation 345

What is a New Product? 347
Creating and Nurturing an Innovative Culture 347
Organizing Effectively for New Product Development 350
Managing the New Product Development Process 352
Competitive Reaction to New Product Introductions 365
Review 365
Key Terms 367
Study Questions 367
Recommended Reading 367
References 368
Side ix

CASE 21 In the Dragons’ Den 370

CASE 22 Clorox: Bringing Innovation to Everyday Products 372

12 Value Through Pricing 375

Economists’ Approach to Pricing 376
Cost­orientated Pricing 377
Competitor­orientated Pricing 379
Market­orientated Pricing 380
Initiating Price Changes 393
Reacting to Competitors’ Price Changes 395
Ethical Issues in Pricing 396
Review 397
Key Terms 399
Study Questions 399
Recommended Reading 400
References 400
CASE 23 easyJet and Ryanair 401
CASE 24 The Surge of German Limited Range Discounters 405

PART 3 Communicating and Delivering Customer Value 409

13 Integrated Marketing Communications 411

Integrated Marketing Communications Approach 412
Planning for Integrated Marketing Communications 415
Elements of Integrated Marketing Communications 419
Review 435
Key Terms 437
Study Questions 438
Recommended Reading 438
References 438
CASE 25 Coke Gets Personal: The Share a Coke Campaign 440
CASE 26 Comparethemarket.com: ‘Simples’ 443

14 Mass Marketing Communications 447

Introduction 448
 Advertising 449
Strong and Weak Theories of How Advertising Works 451
Advertising: the Practicalities of Developing a Strategy 452
Organizing for Campaign Development 462
Product Placement 464
Public Relations and Sponsorship 465
Sales Promotion 472
Ethical Issues in Advertising 477
Review 478
Key Terms 480
Study Questions 481
Recommended Reading 481
References 482
CASE 27 Toyota and Buddy 484
CASE 28 Volvo: Fundamentally Changing the Way Cars are Marketed and Sold 487

15 Direct Marketing Communications 491

Personal Selling and Sales Management 492
Characteristics of Modern Selling 492
Personal Selling Skills 494
Sales Management 500
Exhibitions and Trade Shows 507
Direct Marketing 510
Direct Marketing Campaigns 512
Managing a Direct Marketing Campaign 517
Ethical Issues in Direct Communications 520
Review 521
Key Terms 522
Study Questions 523
Recommended Reading 524
References 524
CASE 29 Selling in China 526
CASE 30 JCPenney and Direct Marketing 528

16 Digital Marketing and Social Media 531

What is Digital Marketing? 533
 Key Dimensions of the Digital Communication Environment 535
Digital marketing and Social Media Planning 540
Implications for Marketing Planning in a Digital World 541
Social Media and Social Networking 549
Ethical Issues in Digital Marketing 554
Review 555
Key Terms 556
Study Questions 557
Recommended Reading 557
References 557
CASE 31 To Google or not to Google, that is the Question 560
CASE 32 Social Media and Real­Time Marketing 563

17 Distribution 565
Functions of Channel Intermediaries 566
Types of Distribution Channel 568
Channel Strategy 572
Channel Management 578
Physical Distribution and Retailing 582
The Physical Distribution System 584
Retailing 588
Ethical Issues in Distribution 590
Review 591
Key Terms 593
Study Questions 594
Recommended Reading 594
References 594
CASE 33 ASOS 596
CASE 34 From ‘Clicks to Bricks’ 598
Side x

PART 4 Marketing Planning and Strategy 601

18 Marketing Planning: An Overview of Strategic Analysis and Decision­making 603

Marketing Planning Context 604
The Functions of Marketing Planning 606
The Process of Marketing Planning 606
Marketing Audit 609
Marketing Objectives 613
Core Marketing Strategy 616
Rewards of Marketing Planning 619
Problems in Making Planning Work 620
How to Handle Marketing Planning Problems 622
Review 623
Key Terms 624
Study Questions 625
Recommended Reading 626
References 626
CASE 35 Adopting a Marketing Orientation Really Makes a Difference at Dixons Carphone
628
CASE 36 Proudly Made in Africa: The Value Added in Africa (VAA) Branding Story 633

19 Analysing Competitors and Creating a Competitive Advantage 637

Analysing Competitive Industry Structure 638
Competitor Analysis 642
Competitive Advantage 646
Creating a Differential Advantage 651
Creating Cost Leadership 654
Competitive Marketing Strategy 657
Competitive Behaviour 658
Developing Competitive Marketing Strategies 659
Review 663
Key Terms 664
Study Questions 665
Recommended Reading 665
 References 665
CASE 37 General Motors 667
CASE 38 Walmart and Asda 671

20 Product Strategy: Product Lifecycle, Portfolio Planning and Product Growth Strategies 675
Managing Product Lines and Brands over Time: the Product Lifecycle 676
Uses of the Product Lifecycle 678
Limitations of the Product Lifecycle 681
A Summary of the Usefulness of the Product Lifestyle Concept 683
Managing Brand and Product Line Portfolios 683
Product Strategies for Growth 690
Ethical Issues and Products 694
Review 695
Key Terms 697
Study Questions 697
Recommended Reading 698
References 698
CASE 39 Growth Strategies at Unilever 699
CASE 40 Intel Inside 702

21 Global Marketing Strategy 705

Deciding Whether to Go Global or Stay Local 706
Deciding Which Markets to Enter 708
Deciding How to Enter a Foreign Market 713
Developing Global Marketing Strategy 720
Organizing for Global Operations 728
Centralization Versus Decentralization 729
Review 731
Key Terms 732
Study Questions 732
Recommended Reading 733
References 733
CASE 41 IKEA 735
CASE 42 Frozen: A Global Hit in Any Language 739

22 Managing Marketing Implementation, Organization and Control 743

Marketing Strategy, Implementation and Performance 744
Implementation and the Management of Change 746
Objectives of Marketing Implementation and Change 749
Barriers to the Implementation of the Marketing Concept 751
Forms of Resistance to Marketing Implementation and Change 753
Developing Implementation Strategies 754
Marketing Organization 761
Marketing Control 766
Strategic Control 767
Operational Control and the Use of Marketing Metrics 767
Review 773
Key Terms 775
Study Questions 775
Recommended Reading 776
References 776
CASE 43 Subway Germany: Destination Success? 778
CASE 44 The Good, The Bad and the Not So Ugly: Implementation in the Digital Music
Industry 782
Side xi

Vignettes
MARKETING IN ACTION
1.1 H&M Seeks to Make Fashion Sustainable 8
1.2 Corporate Strategies to Access Niche Markets 11
1.3 Brand Loyalty Wobbles when Starbucks Employs a Siren to Lead its Nameless Brand18
2.1 Market Forces Influence Norwegian Oil Company's Investment In Arctic Oil Exploration 41
2.2 Is there Life after BRIC? 45
2.3 China: The Greatest Connected Market in the World? 46
2.4 Germany Aims High in the Green Power Race 49
2.5 Consumerism in Sweden and Britain 53
3.1 The Bandwagon Effect: Online Group Buying 74
3.2 Chocolate Shortages and Black Friday Promotions Cause Impulsive Behaviour and Panic Buying
81
3.3 Experiences and Consumer Behaviour 84
3.4 Technology Delivers Consumer Insights, and Age of Neuromarketing is here 90
4.1 From Sweden Not Hollywood 110
4.2 Diesel Lock­out 114
4.3 Is Eliminating the Mavericks a Good Thing? 116
4.4 The Milk Run at the Hitachi Transit System 121
4.5 Managing Logistics in Multichannel Relationships 122
5.1 IKEA Delivers Sustainable Cotton and Timber Products to Millions of Its Customers144
5.2 GE Ecomagination and the Smart Grid: Saving Energy 148
5.3 Employees Win Company Awards 150
5.4 Using Social Marketing to Combat the Obesity Crisis 154
5.5 Commercial versus Not­for­Profit Marketing 156
6.1 GSK Shares its Big Data 171
6.2 Viking Targets the Wrong Customers 173
6.3 Proximity Apps and Customer Information 174
6.4 Mobile Ethnography Reveals Motherhood is not a Job 186
7.1 Start­up Business Fyndiq, Creates a Marketplace with a Difference 205
7.2 Tribal Marketing 211
7.3 The A­Z of Digital Generations 215
7.4 Companies Use Different Brands to Meet the Needs of their Various Target Markets225
8.1 The Personality of a Brand 256
8.2 Retailers Stop Shouting about Prices and Make Movies to Differentiate their Brands257
8.3 Why Do Some Brands Fall from Grace? 259
8.4 Developing the Lotus Bakeries Brand of Caramelized Biscuit 265
9.1 Nordic Noir Changes the Mood in the Creative Industry 288
9.2 Social Media Transformed the Hashtag into a Marketing Tool 297
10.1 The Third Place; Creating Customer Value in the Coffee Shop Industry 315
10.2 Strategies for Winning Back Customer Trust: Morrisons ‘Match & More’ Card 319
10.3 Most Valued People Award Helps Drive Umbraco’s Success 321
10.4 E.ON, European Energy Supplier Updates its CRM Systems 329
11.1 Investing in Innovation at 3M 348
11.2 Innovation Drives Passion Brands and Builds Sporting Universes at Decathlon 354
11.3 Connect + Develop 355
11.4 Creating Radical Innovation 356
11.5 3D Printers 358
12.1 Technology Drivers of Price 376
12.2 Oil Price Collapse: A Classic Case of Supply and Demand 384
12.3 Netto Relaunch: A Case of Fighter Branding 391
13.1 Nike Attracts Creative Talent to Communicate its Global Messages 416
13.2 Digital Platforms, Managed Content and Customer Journeys Move IMC to a New Level 418
13.3 What do Sausage, Sushi and Crispbreads have In Common? Renault’s IMC Campaign has the
Answer 428
13.4 Sky Adsmart: Clas Ohlson uses Precision Advertising to Penetrate the UK High Street430
14.1 Nordic Brands Invite Audiences to Experience the Benefits of a Brutal Landscape 450
14.2 Saatchi & Saatchi Advocates Love and Respect When Planning Communication Objectives
453
14.3 Keep Calm and Carry On 458
14.4 Pioneering Messages Can Create Meaningful Campaigns 459
15.1 Technology Rules, Online and on the Road 496
15.2 Has Direct Marketing been Given a One­way Ticket to Extinction? 510
15.3 Society Profits from Cyclists, but Who Is Doing the Driving? 518
16.1 Gucci goes Digital In Style 534
16.2 Know your Customers and the Importance of Understanding Where and When They Shop
539
16.3 Shazam Joins with Retailers and Expands the Future of Mobile Marketing 547
Side xii

16.4 Microblogging Winners and Losers 554

17.1 Fingerprinting the Supply Chain Leads to Success for Costco 570
17.2 Sotheby’s – Bidding on a New Distribution Channel 573
17.3 Online Order Delivery 574
17.4 Alone We’re Delicious, Together We're Yum! 577
18.1 Jeff Bezos and the Two­pizza Rule 609
18.2 Birds Eye Presents ‘The food for life’ as Part of its Target Marketing Strategy 617
18.3 Sweden Offers Solutions for Uber’s Setback in European Roll­out 621
19.1 Rovio and Supercell Battle for Market Share in the Intensely Competitive Apps Market 641
19.2 Maybach: The Rise, Fall and (Possible) Rise Again of a Luxury Icon 648
19.3 Want to Know How to Beat the Competition? Ask Watson 655
20.1 The Dot­Com Bubble Winners and Losers 677
20.2 The Permanent Beta 682
20.3 Portfolio Planning to the Core 684
20.4 Sweden is the Land of Innovation 693
21.1 Cultural Differences and Leadership Styles in the Global Marketplace 710
21.2 Μ­Pesa the Mobile Money Service: Vodafone’s Market in Africa 718
21.3 Barriers to Developing Standardized Global Brands 723
22.1 How the Mighty Fall—Is this the End for Nokia? 748
22.2 SAS and Marketing Strategy: Success is in the Details 750
22.2 Unilever Creates Virtual Jams while Chatting with its Employees 760
MINI CASES
1.1 Listening to Customers 17
2.1 Cascades of Activism Grab Headlines, but Do They Change the World? 40
3.1 Pre­family Man 75
4.1 Iceland Frozen Foods Made in Asia 112
5.1 Hybrid and Electric Cars 142
6.1 Does Google Track our Every Move? 189
7.1 Age 213
8.1 Douwe Egberts is No Ordinary Coffee 251
9.1 Sandals Resorts: Knowing your Customers is the Key to their Hearts and a Way to Stand Out in a
Crowded Marketplace 294
10.1 Peer­to­peer Reviews Empower the Customer 323
11.1 Frugal Innovations: From Clay Fridges to Cardboard Splints 349
12.1 Does Price Really Influence Perceptions of Quality? 390
13.1 Conversations, Storytelling and Happy Endings 423
14.1 What Do Sharp Electronics, Vodafone and Chevrolet have in common? 471
15.1 Using a Marketing Database in Retailing 515
16.1 Crowdsourcing of Advertising 552
17.1 Managing the Supply Chain the Zara Way 583
18.1 Pandora: Wherever Life Takes You, Take it With You 615
19.1 Growing Markets the Diageo Way 659
20.1 Domyos Product Growth Strategies 692
21.1 Amazon Helps Companies Grow their Businesses Around the Globe 711
22.1 Is Abercrombie & Fitch playing roulette? 745
Side xiii

Case Guide
This guide shows the key concepts covered in each of the cases in both the book and the Online Learning
Centre so you can easily pick out which cases are relevant to a particular part of your course. Go to
www.mheducation.co.uk/ textbooks/jobber8 to find a pdf of this guide, and search by company,
industry or topic to find the ideal case to use.

Chapter Case Case title and author Key concepts covered

number

1 Case 1 Coca­Cola versus Pepsi Market orientation, competition,

leading brands, positioning
David Jobber, Emeritus Professor, University of
Bradford

Case 2 H&M Gets Hotter Market orientation, effectiveness

and efficiency, customer value,
David Jobber, Emeritus Professor, University of
fashion industry
Bradford

2 Case 3 Searching for Sony's Salvation Product innovation, SWOT,

marketing environment, strategic
Conor Carroll, Lecturer in Marketing, University
options
of Limerick

Case 4 SodaStream: Adapting itself to a Changing Marketing environment,

Market Tom McNamara and Asha Moore­
Mangin, the ESC Rennes School of Business,
France
microenvironment and
macroenvironment, political and
legal, economic, ecological/
physical environmental, social/
cultural and technological forces,
how companies respond to
environmental change

3 Case 5 Cappuccino Hotshots Market development,

competitive positioning,
David Jobber, Emeritus Professor of Marketing,
consumer choice
University of Bradford

Case 6 Red Bull Buying decision process,

marketing communications,
David Cosgrove, Lecturer, University of Limerick
choice criteria, social influences
on consumer behaviour

4 Case 7 Flying in Tandem: Organizational Purchasing Characteristics of organizational

in the Airline Industry buyers, organizational market,
consumer versus organizational
Adrian Pritchard, Senior Lecturer in Marketing,
buying, reverse marketing,
Coventry University
buyer­ seller relationships
 Case 8 AstraZeneca: Sweden and the UK Join Forces
to Form a Production Power Base to Serve
New Market Habitats in the Pharmaceutical
Industry
Fiona EHis­Chadwick, Senior Lecturer,
Loughborough University
5 Case 9 The Co­operative­Leading the Way in
Corporate Social Responsibility
Brian Searle, Programme Director Marketing MSc,
Loughborough University
Case 10 Coop Danmark’s Anti Food Wastage
Initiatives: Social Responsibility or Good
Business?
Robert Ormrod, Associate Professor, Aarhus
University
Role of marketing in the
pharmaceutical industry, buying
process, choice criteria, B2B
buying behaviour
Ethical production, influences on
Industry standards
Corporate social responsibility
(CSR), drivers of social
responsibility, CSR as part of
marketing strategy, business
ethics
Side xiv

6 Case 11 iPod Questionnaires, survey methods,

sampling methods, marketing
Nina Reynolds, Professor and Marketing
research
Discipline Leader, University of Wollongong,
Sheena MacArthur, formerly of Glasgow
Caledonian University, and David Jobber,
Emeritus Professor of Marketing, University of
Bradford

Case 12 TomTom: Helping Us Find Our Way Around Data, product development,
the Planet innovation and competition
Fiona Ellis­Chadwick, Senior Lecturer,
Loughborough University

7 Case 13 Utilization of Loyalty Card Data for Marketing strategy, consumer

Segmentation­ Morelli’s Story segmentation, branding
Christina O’Connor, Lecturer in Marketing,
Maynooth University and Gillian Armstrong,
Head of Department of Accounting, Finance and
Economics, University of Ulster

Case 14 Segmentation and Product Lines: The LEGO Segmentation, segmentation

case Robert Ormrod, Associate Professor, Aarhus methods, lifestyle segmentation,
University demographic segmentation,
marketing to children, product
development

8 Case 15 Lessons in Co­Branding: The Apple/U2 Benefits of strong brands,

Experience Marie O’Dwyer, Lecturer in cobranding, consumer choice,
Marketing, Waterford Institute of Technology consumer privacy

Case 16 Burberry Product management, brand

stretching, brand extension,
David Jobber, Emeritus Professor of Marketing,
global branding
University of Bradford

9 Case 17 Pret a Manger: 'Passionate About Food’ Service branding, differentiation,

positioning, service marketing
Clive Helm, Senior Lecturer, University of
mix
Westminster

Case 18 Nordstrom: A Shining Example of Service Special characteristics of services,

Excellence
Tom McNamara and Asha Moore­Mangin, The
ESC Rennes School of Business
customer relationships, customer
service, managing service quality,
productivity and staff,
positioning
10 Case 19 Starbucks: Managing Customer Relationships Effective customer relationship
One Cup at a Time management (CRM), use of
technology in CRM, competitive
Tom McNamara and Asha Moore­Mangin, The
advantage, ethical issues in CRM
ESC Rennes School of Business

Case 20 Sunderland Football Club and Bidvest Relationship marketing,

Foodservice: Building a beneficial partnership partnerships, relationship
Fiona Ellis­Chadwick, Senior Lecturer, quality, sponsorship
Loughborough University

11 Case 21 In the Dragons’ Den Commercialization, innovation

culture, managing for success
Fiona Ellis­Chadwick, Senior Lecturer,
Loughborough University

Case 22 Clorox: Bringing Innovation to Everyday Creating and nurturing an

Products Tom McNamara and Asha Moore­ innovative culture, new product
Mangin, the ESC Rennes School of Business development, marketing and
R&D, corporate imagination
Side xv

12 Case 23 easyJet and Ryanair Pricing strategies, marketing

strategy, low price strategy,
David Jobber, Emeritus Professor of Marketing,
airline industry
University of Bradford

Case 24 The Surge of German Limited Range Everyday low pricing, limited
Discounters Conor Carroll, Lecturer in range discounters, retail
Marketing, University of Limerick discounters, price wars,
competitive strategy

13 Case 25 Coke Gets Personal: The Share a Coke Benefits of integrated marketing
Campaign communications (IMC), factors
leading to growth of IMC
Marie O'Dwyer, Lecturer in Marketing,
campaigns, benefits and risks of a
Waterford Institute of Technology
mass personalization campaign,
debranding

Case 26 Comparethemarket.com: ‘Simples’ Integrated marketing

communications, off­ and online
David Cosgrave, Lecturer, University of Limerick
communications, brand identity,
promotional mix

14 Case 27 Toyota and Buddy Marketing strategy, integrated

marketing communications,
Adele Berndt, Associate Professor, Jönköping
rebuilding a brand
International Business School

Case 28 Volvo: Fundamentally Changing the Way Cars Mass marketing communication
are Marketed and Sold in a limited home market,
elements of an effective mass
Tom McNamara and Asha Moore­Mangin, the
marketing communication
ESC Rennes School of Business
strategy, media selection,
differentiation and competitive
advantage

15 Case 29 Selling in China International marketing, cultural

issues, self­reference criteria
David Jobber, Emeritus Professor of Marketing,
University of Bradford

Case 30 JCPenney and Direct Marketing: Using Direct marketing communication

Something Old to Improve Something New? tools, how to manage direct
marketing campaigns
Tom McNamara and Asha Moore­Mangin, the
ESC Rennes School of Business

16 Case 31 To Google or not to Google, that is the Competitive advantage,

Question Fiona Ellis­Chadwick, Senior Lecturer, differentiation, online resources
Loughborough University and competencies
 Case 32 Social Media and Real­Time Marketing James
Saker, Synergy Sponsorship London, and Jim
Saker, Ford Professor in Retail Management,
Loughborough University
Social media, real time content
and its potential for engaging
customers, new approaches to
brand personality development,
how reactive marketing fits into a
marketing plan

17 Case 33 ASOS Online fashion retailing, customer

service, promotion strategy,
David Jobber, Emeritus Professor of Marketing,
SWOT analysis
University of Bradford

Case 34 From ‘Clicks to Bricks’ Strategic approaches to retail,

multichannel retailing, channel
Kim Cassidy, Julie Lewis and Sheilagh Resnick,
capabilities, future challenges for
Nottingham Trent University
multichannel retailers
Side xvi

18 Case 35 Adopting a Marketing Orientation Really Transformation marketing

Makes a Difference at Dixons Carphone Fiona
Ellis­Chadwick, Senior Lecturer, Loughborough
University
strategy, how business functions
contribute to the marketing
strategy, impact of the marketing
environment on marketing
planning, market orientation

Case 36 Proudly Made in Africa—the Value Added in Challenges of a competitive

Africa (VAA) Branding Story Christina
O’Connor, Lecturer in Marketing, Maynooth
University and Siobhán McGee,
Proudly Made in Africa Fellow of Business and
Development, University College Dublin
marketing environment,
perception and preferences in
customer choice, quality
certification, role of trust

19 Case 37 General Motors Competitive advantage,

competitive forces, recovery
Conor Carroll, Lecturer in Marketing, University
strategy, global automotive
of Limerick
markets

Case 38 Walmart and Asda Competitive advantage,

international acquisitions, retail
David Jobber, Emeritus Professor of Marketing,
information systems, global
University of Bradford
supermarket operations

20 Case 3*1 Growth Strategies at Unilever Brand extension, brand portfolio,

global marketing, emerging
David Jobber, Emeritus Professor of Marketing,
markets
University of Bradford

Case 40 Intel Inside Product life­cycle, product

management, IT industry
David Jobber, Emeritus Professor of Marketing,
University of Bradford

21 Case 41 IKEA International marketing, cult

branding, adaptation,
David Jobber, Emeritus Professor of Marketing,
standardization
University of Bradford

Case 42 Frozen: A Global Hit in Any Language
Marie O’Dwyer, Lecturer in Marketing, Waterford
Institute of Technology
Global marketing, success factors
in global branding,
standardization and adaptation

22 Case 43 Subway Germany: Destination Success? Competitive strategy, SWOT,

internal marketing, franchising
Glyn Atwal, Professor in Marketing, Burgundy
School of Business and Douglas Bryson, the ESC
 Rennes School of Business

Case 44 The Good, The Bad and the Not So Ugly: New product launches, Bonoma’s
Implementation in the Digital Music Industry strategy mix, alternative
approaches to market
Fiona Ellis­Chadwick, Senior Lecturer,
implementation strategy,
Loughborough University
implementing an innovative
business idea
Side xvii

Preface
Marketing is constantly adapting to meet the demands of dynamic business environments. Exploring
both theoretical principles and business practices is the key to understanding this highly dynamic and
complex subject. The 8th edition aims to bring these aspects together and engage readers in an
illuminating journey through the discipline of marketing. The book provides many illustrative examples
from many different perspectives.
The Principles and Practice of Marketing supports marketing education for students and practitioners of
the subject. Students can enjoy learning from applying the principles to real world marketing problems
and, in doing so, gain a richer knowledge of marketing.
Becoming a successful marketing practitioner also requires understanding of the principles of
marketing together with the practical experience of implementing marketing ideas, processes and
techniques. This book provides a framework for understanding important marketing topics such as
organizational and consumer behaviour, segmentation, targeting and positioning, brand building,
innovation, pricing, communications and digital technology, and implementation – core subject areas
within the discipline, which form the backbone of marketing.
Technology is changing the way we do business and communicate, which has profound implications
for the way organizations operate. By understanding how to interpret the marketing environment, apply
principal concepts and plan for the future, students and practitioners can benefit from developing their
knowledge of marketing.
I am joined in the writing of the 8th edition by Fiona Ellis­Chadwick, who as co­author brings to the
book her expert knowledge of digital and retail marketing and detailed insight into the practical
application of marketing.
Marketing is a very strong discipline, and around Europe there are specialist conferences which
present the latest research: for example, the European Marketing Academy, and the Academy of
Marketing in the UK.
Such conferences highlight the variety and extent of marketing and ensure that there is a growing
community of academics, researchers and students who are prepared to take on the challenges of
modern marketing and build rewarding careers in this field.
Most students and practitioners enjoy marketing and find it rewarding and relevant not only from an
academic but also a practical perspective. We hope this book adds to your knowledge of the subject of
marketing and enhances your skills and understanding.

How to study
This book has been designed to help you to learn and to understand the important principles behind
successful marketing and how these are applied in practice. We hope that you find the book easy to use
and that you are able to follow the ideas and concepts explained in each chapter. As soon as you don’t
grasp something, go back and read it again. Try to think of other examples to which the theory could be
applied. To check you really understand the new concepts you are reading about, try completing the
exercises and questions at the end of each chapter. You can also test your understanding and expand
your knowledge by exploring the resources in Connect™ and LearnSmart™.
To assist you in working through this text, we have developed a number of distinctive study and
design features. To familiarize yourself with these features, please turn to the Guided Tour on pages xix­
xxi.

New to the 8th edition

As always, recent events are reflected throughout this book. Here is a brief summary of the key content
changes for this edition:
• New chapter on Relationship Marketing. Developing relationships is central to marketing thinking
and this chapter explores how to manage customer relationships, use of CRM systems and key
account management.
• New content: in response to reviewers' feedback and changes in the practical application of
technology within marketing practice, throughout the book there are new digital technology
examples, Mini Cases, and Marketing in Action vignettes. The Marketing Research chapter has
been extended to include business intelligence and has been significantly updated to reflect
changes in the use of data analytics. Digital coverage has been increased throughout the text with
content including e­procurement, SOE, mobile technologies, content marketing, new hardware such
as smartphones and tablets, and more.
Side xviii

Other topics covered include social marketing issues such as anti­consumerism, ethical brand
value over shareholder value, the social impact of social media marketing and antibranding. Also
coverage of global sourcing, more qualitative market research techniques such as ethnographic
research, service dominant logic and guerrilla and ambient marketing.
• Revised structure: in response to review feedback, this edition focuses on how each of the elements
of the marketing mix adds value and the importance of relationship marketing. Additionally, the
final part of the book brings together five chapters which focus on the strategic elements of
marketing: marketing, planning and strategy.
• Brand new vignettes, case studies and illustrations throughout the book: the principles of
marketing cannot be fully grasped without solid examples of how these apply in practice. That is
why in every chapter you will find a wealth of examples to support the concepts presented. These
include current advertisements, Marketing in Action vignettes and Mini Cases that ask you to apply
the principles learnt for yourself. Two case studies at the end of each chapter provide more in­depth
examples. These features will not only help you to absorb the key principles of marketing, but will
also allow you to make links between the various topics and demonstrate the marketing mix at
work in real­life situations.
• An exciting new package of supporting online resources, including new video resources and
cases, as well as a rich choice of activities designed to help students develop and apply their
understanding of marketing concepts. See pages xxii–xxv for further details.
Side xix

Guided Tour
Real Marketing
Throughout the Principles and Practice of Marketing 8th edition product, marketing principles are
illustrated with examples of real marketing practice. The following features encourage you to pause to
consider the decisions taken by a rich variety of companies.

« Marketing in Action vignettes provide practical examples to highlight the application of concepts, and
encourage you to critically analyse and discuss realworld issues.

« Mini Cases provide further examples to encourage you to consider how key concepts work in practice,
and have associated questions to help you critique the principles discussed in each chapter.
« Exhibits demonstrate how marketers have presented their products in real promotions and
campaigns.
Side xx

« Interactive Case Analysis Activities encourage students to think analytically about real­world
marketing situations. Two sets of multiple choice questions prompt them to critically asses the case and
then test their understanding of core concepts covered.

« Adlnsight QR codes provide links to specially selected YouTube videos showing official company
adverts.

« Case studies Two are provided at the end of each chapter, based on up­to­date examples that
encourage you to apply what you have learned in each chapter to a real­life marketing problem.
Instructor’s Teaching notes can be downloaded from the Online Learning Centre via Connect.
« Questions are provided at the end of each case study to allow you to test yourself on what you have
read. Multiple Choice Questions are also available in Connect.

« Videos allow students to engage with how marketing professionals approach their day­to­day
challenges through a series of interviews with marketing managers and directors from a broad range of
companies.
Side xxi

Studying Effectively
Principles and Practice of Marketing is designed to make every study moment as efficient as possible. The
following features will help you to focus your study, check your understanding and improve learning
outcomes.

« LearnSmart and SmartBook

LearnSmart is the most widely used and intelligent adaptive learning resource that is proven to
strengthen memory recall, improve course retention and boost grades. Fuelled by LearnSmart,
SmartBook is the first and only adaptive reading experience available today.

« Learning Objectives are listed at the beginning of each chapter to show you the topics covered. You
should aim to attain each objective when you study the chapter.

« Key Terms are provided at the end of each chapter—use the list to look up any unfamiliar words, and
as a handy aid for quick revision and review.
« Study Questions allow you to review and apply the knowledge you have acquired from each chapter.
These questions can be undertaken either individually or as a focus for group discussion in seminars or
tutorials.

« Further Reading at the end of each chapter can be used to research an idea in greater depth.
Side xxii

McGraw­Hill Connect Marketing is a learning and teaching environment that improves student
performance and outcomes whilst promoting engagement and comprehension of content.
You can utilize publisher­provided materials, or add your own content to design a complete course to
help your students achieve higher outcomes.

PROVEN EFFECTIVE

INSTRUCTORS
With McGraw­Hill Connect Marketing, instructors get:
• Simple assignment management, allowing you to spend more time teaching.
• Auto­graded assignments, quizzes and tests.
• Detailed visual reporting where students and section results can be viewed and analysed.
• Sophisticated online testing capability.
• A filtering and reporting function that allows you to easily assign and report on materials that are
correlated to learning outcomes, topics, level of difficulty, and more. Reports can be accessed for
individual students or the whole class, as well as offering the ability to drill into individual
assignments, questions or categories.
• Instructor materials to help supplement your course.
Side xxiii

Get Connected. Get Results.

Available online via Connect is a wealth of instructor support materials, including:
• Case study teaching notes
• Fully updated PowerPoint slides to use in lectures
• A solutions manual providing answers to the Mini Cases and the end of chapter questions in the
textbook.
• Image library of artwork from the textbook.
• Additional case studies.
• Tutorial activities
• Further resources including Marketing Plan, Market Research Project and Marketing Accountability
and Metrics
STUDENTS
With McGraw­Hill Connect Marketing, students get: Assigned content
• Easy online access to homework, tests and quizzes.
• Immediate feedback and 24­hour tech support.
With McGraw­Hill SmartBook, students can:
• Take control of your own learning with a personalized and adaptive reading experience.
• Understand what you know and don’t know; SmartBook takes you through the stages of reading
and practice, prompting you to recharge your knowledge throughout the course for maximum
retention.
• Achieve the most efficient and productive study time by adapting to what you do and don’t know.
• Hone in on concepts you are most likely to forget, to ensure knowledge of key concepts is learnt and
retained.
Side xxiv

FEATURES
Is an online assignment and assessment solution that offers a number of powerful tools and features that
make managing assignments easier, so faculty can spend more time teaching. With Connect marketing,
students can engage with their coursework anytime and anywhere, making the learning process more
accessible and efficient.
Videos
Videos featuring interviews with marketing managers and directors from a wide range of companies,
along with advertising and promotional content, will engage students with the idea of marketing as a
career and how the concepts they learn relate to a real world context. Autogradable questions encourage
them to analyse and assess the content in the videos.

Case studies
A bank of case studies is available for assignment in Connect. Students read and assess a case before
answering probing questions. Instructors can choose to assign multiple choice or short answer questions
depending on the needs of the course.

Interactives
Assign interactive questions including case analysis, decision generator and drag and drop, to prompt
students to make informed, analytical marketing decisions and fully comprehend marketing concepts.
Pre­built assignments
Assign all of the end of chapter or test bank material as a ready­made assignment with the simple click
of a button.
Side xxv

Get Connected. Get Results.

SmartBook™
Fuelled by LearnSmart—the most widely used and intelligent adaptive learning resource—SmartBook is
the first and only adaptive reading experience available today. Distinguishing what a student knows
from what they don’t, and honing in on concepts they are most likely to forget, SmartBook personalizes
content for each student in a continuously adapting reading experience. Valuable reports provide
instructors insight as to how students are progressing through textbook content, and are useful for
shaping in­class time or assessment.

LearnSmart™
McGraw­Hill LearnSmart is an adaptive learning program that identifies what an individual student
knows and doesn’t know. LearnSmart's adaptive learning path helps students learn faster, study more
efficiently, and retain more knowledge. Now with integrated learning resources which present topics
and concepts in different and engaging formats increases student engagement and promotes additional
practice of key concepts. Reports available for both students and instructors indicate where students
need to study more and assess their success rate in retaining knowledge.
Side xxvi

create
Let us help make our content your solution
At McGraw­Hill Education our aim is to help lecturers to find the most suitable content for their needs,
delivered to their students in the most appropriate way. Our custom publishing solutions offer the
ideal combination of content delivered in the way which best suits lecturer and students.
Our custom publishing programme offers lecturers the opportunity to select just the chapters or sections
of material they wish to deliver to their students from a database called CREATE™ at
http://create. mheducation.com/uk/
CREATE™ contains over two million pages of content from:
• textbooks
• professional books
• case books – Harvard Articles, Insead, Ivey, Darden, Thunderbird and BusinessWeek
• Taking Sides – debate materials
Across the following imprints:
• McGraw­Hill Education
• Open University Press
• Harvard Business Publishing
• US and European material
There is also the option to include additional material authored by lecturers in the custom product— this
does not necessarily have to be in English.
We will take care of everything from start to finish in the process of developing and delivering a custom
product to ensure that lecturers and students receive exactly the material needed in the most suitable
way.
With a Custom Publishing Solution, students enjoy the best selection of material deemed to be the most
suitable for learning everything they need for their courses – something of real value to support their
learning. Teachers are able to use exactly the material they want, in the way they want, to support their
teaching on the course.
Please contact your local McGraw­Hill Education representative with any questions or alternatively
contact Warren Eels e: warren.eels@mheducation.com.
Side xxvii

About the Authors

David Jobber is an internationally recognized marketing academic. He is Emeritus Professor of

Marketing at the University of Bradford School of Management. He holds an honours degree in
economics from the University of Manchester, a master’s degree in business and management from the
University of Warwick and a doctorate from the University of Bradford.
Before joining the faculty at the Bradford School of Management, David worked for the TI Group in
marketing and sales, and was Senior Lecturer in Marketing at the University of Huddersfield. He has
wide experience of teaching core marketing courses at undergraduate, postgraduate and post­experience
levels with specialisms in business­to business marketing, sales management and marketing research.
He has a proven, ratings­based record of teaching excellence at all levels. His competence in teaching is
reflected in visiting appointments at the universities of Aston, Lancaster, Loughborough and Warwick in
the UK, and the University of Wellington, New Zealand. He has taught marketing to executives of such
international companies as BP, Allied Domecq, the BBC, Bass, Croda International, Rolls­Royce and Rio
Tinto.
Supporting his teaching is a record of achievement in academic research. David has over 150 publications in the
marketing area in such journals as the International Journal of Research in Marketing, MIS Quarterly, Strategic
Management Journal, Journal of International Business Studies, Journal of Management, Journal of Business
Research, European Journal of Marketing, Journal of Product Innovation Management, Journal of Personal Selling
and Sales Management and Journal of the Operational Research Society. David has served on the editorial boards
of the International Journal of Research in Marketing, Journal of Personal Selling and Sales Management,
European Journal of Marketing and the Journal of Marketing Management.
He has acted as Special Adviser to the Research Assessment Exercise panel that rated research output
from business and management schools throughout the UK. David has also received the Academy of
Marketing’s Life Achievement award for distinguished and extraordinary services to marketing.
Fiona Ellis­Chadwick has a successful professional business and academic career. She is a Senior
Lecturer at Loughborough University School of Business & Economics, where she is the Director of the
Institute of Consultancy and Research Application. As part of this role, Fiona is a very active researcher
and innovative educator, and frequently leads the development of innovative multi­media teaching
materials, bringing together research and business. Fiona has made many films for use in higher
education on a variety of different topics, including retail marketing, digital technology and economic
growth from the perspective of international business leaders. As an academic consultant for the Open
University and BBC productions, she has worked on highly successful and award­winning series: The
Virtual Revolution, Foods That Make Billions, Evan's Business Challenges, Iceland Foods: Into the Freezer
Cabinet, Business Boomers and Radio 4's The Bottom Line programme. Fiona had a successful commercial
career in retailing before becoming an academic and completing her PhD. Having made a significant
contribution in the area of online retailing, she continues to focus her research and academic
publications on the strategic impact of the Internet and digital technologies on marketing and retailing.
Her work on these topics has been widely published in the Journal of Business Research, European Journal
of Marketing, Internet Research, Industrial Marketing Management, International Journal of Retail Distribution
and Management plus additional textbooks and practitioner journals. Fiona is passionate about how
technology and education can help business development in the future.
Side xxviii

Acknowledgements
Authors’ Acknowledgements
We would like to thank colleagues, contributors and the reviewers who have offered advice and helped
develop this text. We would also like to thank our editors Alice Aldous, Natalie Jacobs, Leiah Norcott
and Nina Smith, for their invaluable support and assistance.

Publisher’s Acknowledgements
Our thanks go to the following reviewers for their comments at various stages in the text’s development:
Sree Beg, University of Surrey
Christo Bisschoff, NWU Potchefstroom Business School
Margaret Cullen, Nelson Mandela Metropolitan University
Irute Daukseviciute, University of Reading
Andrea Davies, University of Leicester
Margaret Fletcher, University of Glasgow
Deborah Forbes, Newcastle University
Navid Ghannad, Halmstad University
Clare Halfpenny, Manchester Metropolitan University
Thomas Helgesson, Halmstad University
Monica Hope, University of Surrey
Helen McGrath, University College Cork
Patricia McHugh, National University of Ireland
Jan Moller Jensen, University of Southern Denmark
Rene Moolenaar, University of Sussex
Devina Oodith, University of KwaZulu­Natal
Robert Ormrod, Aarhus University
Norman Peng, University of Westminster
Adrian Pritchard, Coventry University
Mariusz Soltanifar, Hanze University of Applied Sciences
Thorsten Strauss, University of Antwerp
Alex Thompson, University of Exeter
We would like to thank the following contributors for the case study material which they have provided
for this textbook and its online resources:
Gillian Armstrong, Ulster University
Glyn Atwal, Burgundy School of Business
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