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NIN T H EDI T ION
FOUNDATIONS OF
MARKETING
WILLIAM M. PRIDE
Texas A & M University
O. C. FERRELL
Auburn University
Australia • Brazil • Canada • Mexico • Singapore • United Kingdom • United States
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William M. Pride and O.C. Ferrell
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Printed in the United States of America

Print Number: 01 Print Year: 2021
To Nancy, Allen, Carmen, Gracie, Marie, Mike, Ashley,
Charlie, J.R., and Anderson Pride
To Linda Ferrell
Brief Contents
PART 1: Strategic Marketing and Its Environment 1

1. Customer-Driven Strategic Marketing 2
2. Planning, Implementing, and Evaluating Marketing Strategies 26
3. The Marketing Environment, Social Responsibility, and Ethics 52
PART 2: Marketing Research and Target Markets 83

4. Marketing Research and Analytics 84
5. Target Markets: Segmentation and Evaluation 114
PART 3: Customer Behavior and E-Marketing 139

6. Consumer Buying Behavior 140
7. Business Markets and Buying Behavior 168
8. Reaching Global Markets 190
9. Digital Marketing and Social Networking 218
PART 4: Product and Price Decisions 245

10. Product, Branding, and Packaging Concepts 246
11. Developing and Managing Goods and Services 276
12. Pricing Concepts and Management 306
Part 5: Distribution Decisions 335

13. Marketing Channels and Supply Chain Management 336
14. Retailing, Direct Marketing, and Wholesaling 370
Part 6: Promotion Decisions 399

15. Integrated Marketing Communications 400
16. Advertising and Public Relations 426
17. Personal Selling and Sales Promotion 454
Glossary 485
Endnotes 497
Feature Notes 530
Name Index 535
Organization Index 539
Subject Index 543
AVAILABLE ONLY ONLINE:

Appendix A: Financial Analysis in Marketing
Appendix B: Sample Marketing Plan
Appendix C: Careers in Marketing
Contents
PART 1 Strategic Marketing and Its Environment 1
Chapter 1: Customer-Driven Strategic Key Concepts 23

Developing Your Marketing Plan 23
Marketing 2 Issues for Discussion and Review 23
Marketing Insights: Whole Foods Is the Whole Package 3 Case 1 Apple Inc.: The Future of Retailing, Education, and
1-1 Defining Marketing 4 Entertainment 24
1-1a Marketing Focuses on Customers 5
1-2 Marketing Deals with Products, Price, Distribution, Chapter 2: Planning, Implementing, and
and Promotion 6 Evaluating Marketing Strategies 26
1-2a Product 6 Marketing Insights: Kroger’s Strategy Emphasizes Digital Customer
1-2b Price 7 Experience 27
1-2c Distribution 7 2-1 The Strategic Planning Process 28
1-2d Promotion 8 2-2 Establishing Organizational Mission, Goals, and
1-3 Marketing Creates Value 8 Strategies 29
Disruptive Marketing: COVID-19 Mixes Up the Marketing Mix 9 2-2a Developing Organizational Mission and Goals 29
1-3a Marketing Builds Relationships with 2-2b Developing Corporate and Business-Unit Strategies 29
Customers and Other Stakeholders 11 Creative Marketing: Ready to Rent and Ride? The Sharing Economy
1-4 Marketing Occurs in a Adds Scooters 33
Dynamic Environment 12 2-3 Assessing Organizational Resources and
1-5 Understanding the Opportunities 34
Marketing Concept 13 Integrity in Marketing: “Museum” or Museum? 34
1-5a Evolution of the Marketing Concept 14 2-3a SWOT Analysis 35
1-5b Implementing the Marketing Concept 15 2-3b First-Mover and Late-Mover Advantage 36
1-6 Customer Relationship Management 15 2-4 Developing Marketing Objectives and Marketing
1-7 The Importance of Marketing in Our Global Strategies 37
Economy 17 2-4a Selecting the Target Market 38
1-7a Marketing Costs Consume a Sizable 2-4b Creating Marketing Mixes 39
Portion of Buyers’ Dollars 17 2-5 Managing Marketing Implementation 40
1-7b Marketing Is Used in 2-5a Organizing the Marketing Unit 40
Nonprofit Organizations 17 2-5b Coordinating and Communicating 41
1-7c Marketing Is Important to Businesses and the 2-5c Establishing a Timetable for Implementation 42
Economy 17 2-6 Evaluating Marketing Strategies 42
1-7d Marketing Fuels Our Global Economy 18 2-6a Establishing Performance Standards 42
1-7e Marketing Knowledge Enhances 2-6b Analyzing Actual Performance 42
Consumer Awareness 18 2-6c Comparing Actual Performance with Performance
1-7f Marketing Connects People through Technology 18 Standards and Making Changes, If Needed 44
1-7g Socially Responsible Marketing: Promoting the Welfare 2-7 Creating the Marketing Plan 45
of Customers and Stakeholders 20 Chapter Review 47
Integrity in Marketing: Warby Parker Eyes Up the Optical Key Concepts 48
Industry 21 Developing Your Marketing Plan 48
1-7h Marketing Offers Many Exciting Career Prospects 21 Issues for Discussion and Review 49
Chapter Review 22 Case 2 Inside Tesla’s Strategy for Growth 49
vi
Contents vii
Chapter 3: The Marketing Environment, Social 3-7 Sociocultural Forces 67

3-8 Social Responsibility
Responsibility, and Ethics 52 and Ethics in Marketing 69
Marketing Insights: Fighting Fair: Microsoft Embraces the Integrity in Marketing: Does WeWork Still Work? 70
Competition 53 3-8a Economic Dimension 70
3-1 The Marketing Environment 54 3-8b Legal Dimension 71
3-1a Responding to the Marketing Environment 54 3-8c Ethical Dimension 72
3-2 Competitive Forces 55 3-8d Philanthropic Dimension 73
3-3 Economic Forces 58 Creative Marketing: Evrnu Changes Clothes 75
3-3a Buying Power and Willingness to Spend 58 3-9 Incorporating Social Responsibility and Ethics
3-3b Economic Conditions 59 into Strategic Planning 76
3-4 Political Forces 61 Chapter Review 78
3-5 Legal and Regulatory Forces 62 Key Concepts 80
3-5a Regulatory Agencies 63 Developing Your Marketing Plan 80
3-5b Self-Regulation 65 Issues for Discussion and Review 80
3-6 Technological Forces 66 Case 3 Apple vs. Samsung: Gloves Are Off 81
PART 2 Marketing Research and Target Markets 83
Chapter 4: Marketing Research and Analytics 84 5-2 Target Market Selection Process 117
5-3 Step 1: Identify the Appropriate Targeting
Marketing Insights: Marketing Analytics Makes Cents 85
Strategy 118
4-1 The Importance of Marketing Research 86
5-3a Undifferentiated Targeting Strategy 118
4-2 Types of Research 87
5-3b Concentrated Targeting Strategy through
4-2a Exploratory Research 88
Market Segmentation 118
4-2b Conclusive Research 89
5-3c Differentiated Targeting Strategy through Market
4-3 The Marketing Research Process 90
Segmentation 120
4-3a Locating and Defining Problems or Issues 90
5-4 Step 2: Determine Which Segmentation Variables to
4-3b Designing the Research Project 91
Use 121
4-3c Collecting Data 91
Entrepreneurship in Marketing: Big Data Goes Big Time 5-4a Variables for Segmenting Consumer Markets 121
at Six Spoke 98 Disruptive Marketing: Jiminy Crickets: Are Chirps Chips the Snack
of the Future? 127
4-3d Interpreting Research Findings 100
Entrepreneurship in Marketing: SpotHero Helps Drivers Spot
4-3e Reporting Research Findings 100 Parking Spots 128
4-4 Marketing Analytics 101 5-4b Variables for Segmenting Business Markets 128
4-4a Big Data 102 5-5 Step 3: Develop Market Segment Profiles 129
4-4b Databases 104 5-6 Step 4: Evaluate Relevant Market Segments 130
Disruptive Marketing: Artificial Intelligence Makes for Smarter
Advertising 105
5-6a Sales Estimates 130
5-6b Competitive Assessment 131
4-4c Implementing Marketing Analytics 105
5-6c Cost Estimates 131
4-4d Marketing Information and Support Systems 107
5-7 Step 5: Select Specific Target Markets 131
4-5 Issues in Marketing Research 108
5-8 Developing Sales Forecasts 132
4-5a The Importance of Ethical Marketing Research 108
5-8a Executive Judgment 132
4-5b International Issues in Marketing Research 109
5-8b Surveys 133
Chapter Review 110
5-8c Time Series Analysis 133
Key Concepts 111
5-8d Regression Analysis 134
Issues for Discussion and Review 112 5-8e Market Tests 134
Case 4 Picture Perfect: How Instagram Uses Big Data 112 5-8f Using Multiple Forecasting Methods 134
Chapter Review 135
Chapter 5: Target Markets: Segmentation and Key Concepts 136
Evaluation 114 Issues for Discussion and Review 137
Marketing Insights: LEGOLAND: Small Bricks, Big Attendance 115 Case 5 How Nike Uses Targeting in the High-Stakes Race
5-1 What Are Markets? 116 for Sales 137
viii Contents
PART 3 Customer Behavior and E-Marketing 139
Chapter 6: Consumer Buying Behavior 140 7-2 Industrial Classification Systems 173
7-3 Dimensions of Business Customers and Business
Marketing Insights: For a Hot and Fast Breakfast, “Just Crack
An Egg” 141 Transactions 174
6-1 Consumer Buying Decision Process 142 7-3a Characteristics of Transactions
6-1a Problem Recognition 143 with Business Customers 175
6-1b Information Search 143 7-3b Attributes of Business Customers 175
Disruptive Marketing: Small Businesses Get WOW-Size Orders from
6-1c Evaluation of Alternatives 144
Airlines 176
6-1d Purchase 144
7-3c Primary Concerns of Business Customers 176
6-1e Postpurchase Evaluation 145
7-3d Methods of Business Buying 178
6-2 Types of Consumer Decision Making and Level of
7-3e Types of Business Purchases 178
Involvement 145
7-3f Demand for Business Products 179
6-2a Types of Consumer Decision Making 145
7-4 Business Buying Decisions 180
6-2b Consumer Level of Involvement 146
7-4a The Buying Center 181
6-3 Situational Influences on the Buying Decision
7-4b Stages of the Business Buying Decision Process 182
Process 147
7-4c Influences on the Business Buying
6-4 Psychological Influences on the Buying Decision
Decision Process 183
Process 149 Creative Marketing: Inside IBM’s Social Media Success 184
6-4a Perception 149 7-5 Reliance on the Internet
6-4b Motivation 150 and Other Technology 185
6-4c Learning 151
Integrity in Marketing: Recycling, Zara Style 152 Chapter Review 186
Key Concepts 187
6-4d Attitudes 153
6-4e Personality and Self-Concept 154 Issues for Discussion and Review 188
6-4f Lifestyles 155 Case 7 Salesforce.com Uses Dreamforce to Reach Business
Entrepreneurship in Marketing: Peloton Markets Fitness on Customers 188
Demand 155
6-5 Social Influences on the Buying Decision Chapter 8: Reaching Global Markets 190
Process 156
Marketing Insights: Chinese Airlines Take Off 191
6-5a Roles 156
8-1 The Nature of Global Marketing Strategy 192
6-5b Family Influences 156
8-2 Environmental Forces
6-5c Reference Groups 158
in Global Markets 193
6-5d Digital Influences 158
8-2a Sociocultural Forces 193
6-5e Opinion Leaders 159
8-2b Economic Forces 194
6-5f Social Classes 159
8-2c Political, Legal, and Regulatory Forces 196
6-5g Culture and Subcultures 160
8-2d Ethical and Social Responsibility Forces 198
6-6 Consumer Misbehavior 163
8-2e Competitive Forces 200
Chapter Review 164 Integrity in Marketing: Sseko: Designed for Success 200
Key Concepts 165
8-2f Technological Forces 201
Disruptive Marketing: Cha-Ching: M-Pesa Revolutionizes Mobile
Issues for Discussion and Review 166
Payments 203
Case 6 The Campbell Soup Company Cooks Up New Marketing 166
8-3 Regional Trade Alliances, Markets, and
Agreements 203
Chapter 7: Business Markets and Buying 8-3a The United States-Mexico-Canada
Behavior 168 Agreement 203
Marketing Insights: Amazon Business Builds a Big Business by 8-3b The European Union (EU) 204
Serving Businesses of All Sizes 169 8-3c The Southern Common Market (MERCOSUR) 205
7-1 Business Markets 170 8-3d The Asia-Pacific Economic Cooperation
7-1a Producer Markets 170 (APEC) 205
7-1b Reseller Markets 171 8-3e Association of Southeast Asian Nations
7-1c Government Markets 172 (ASEAN) 206
7-1d Institutional Markets 173 8-3f The World Trade Organization (WTO) 207
Contents ix
8-4 Modes of Entry into International Markets 207 Creative Marketing: Beauty Company ipsy Has It
8-4a Importing and Exporting 207 in the Bag 226
8-4b Trading Companies 208 9-3c Media-Sharing Sites 227
8-4c Licensing and Franchising 209 9-3d Mobile Marketing 229
8-4d Contract Manufacturing 210 9-3e Applications and Widgets 230
8-4e Joint Ventures 210 9-4 Monitoring Digital Media Behaviors of
8-4f Direct Ownership 211 Consumers 231
8-5 Customization versus Globalization of International 9-4a Online Monitoring and Analytics 232
Marketing Mixes 212 9-5 E-Marketing Strategy 234
Chapter Review 214 9-5a Product Considerations 234
Key Concepts 214 9-5b Pricing Considerations 234
Developing Your Marketing Plan 215 9-5c Distribution Considerations 235
Issues for Discussion and Review 215 9-5d Promotion Considerations 236
Case 8 Alibaba and Global e-Commerce: Should Amazon Be Afraid? 215 9-6 Ethical and Legal Issues 237
9-6a Privacy 237
Chapter 9: Digital Marketing and Social Integrity in Marketing: Anti-Social Media: Facebook Faces Privacy
Networking 218 Concerns 238
Marketing Insights: Amazon in a Real Fight Against Fakes 219 9-6b Online Fraud 239
9-1 Defining Digital Marketing 220 9-6c Intellectual Property and Illegal Activity 240
9-2 Growth and Benefits of Digital Marketing 221 Chapter Review 240
9-3 Types of Consumer-Generated Marketing and Digital Key Concepts 242
Media 222 Developing Your Marketing Plan 242
9-3a Social Media Marketing 222 Issues for Discussion and Review 242
Case 9 JD.com: Go Big Data or Go Home 243
9-3b Blogs and Wikis 226
PART 4 Product and Price Decisions 245
Chapter 10: Product, Branding, and Packaging 10-6f Branding Policies 266
10-6g Brand Extensions 267
Concepts 246 10-6h Co-Branding 268
Marketing Insights: Under One Roof, Mattel Markets Many Dolls 10-6i Brand Licensing 268
and Action Figures 247
10-7 Packaging 268
10-1 What Is a Product? 248 10-7a Packaging Functions 269
10-2 Classifying Products 249 10-7b Major Packaging Considerations 269
10-2a Consumer Products 249 10-7c Packaging and Marketing Strategy 270
10-2b Business Products 252 10-7d Altering the Package 270
10-3 Product Line and Product Mix 254 10-8 Labeling 271
Integrity in Marketing: PepsiCo’s Products Support Performance
with Purpose 255 Chapter Review 272
10-4 Product Life Cycles and Marketing Key Concepts 273
Strategies 255
10-4a Introduction 255 Case 10 Impossible Foods Cooks Up Meatless Burgers in Silicon
10-4b Growth 256 Valley 274
10-4c Maturity 257
10-4d Decline 258
10-5 Product Adoption Process 259 Chapter 11: Developing and Managing Goods and
10-6 Branding 260 Services 276
10-6a Value of Branding 261 Marketing Insights: Up, Up, and Away for Product Development at
10-6b Brand Equity 261 Away Luggage 277
10-6c Types of Brands 264 11-1 Managing Existing Products 278
10-6d Selecting a Brand Name 264 11-1a Line Extensions 278
Disruptive Marketing: Companies Rebrand to Be More 11-1b Product Modifications 279
Sensitive 265 Integrity in Marketing: Aardvark Straws Says: Goodbye Plastic,
10-6e Protecting a Brand 265 Hello Paper 280
x Contents
11-2 Developing New Products 280 12-2 Development of Pricing Objectives 309
11-2a Idea Generation 282 12-2a Survival 310
11-2b Screening 283 12-2b Profit 310
11-2c Concept Testing 283 12-2c Return on Investment 310
11-2d Business Analysis 283 12-2d Market Share 310
11-2e Product Development 284 12-2e Cash Flow 310
11-2f Test Marketing 284 12-2f Status Quo 311
11-2g Commercialization 285 12-2g Product Quality 311
Entrepreneurship in Marketing: Alpine Start Makes Quick Start with 12-3 Assessment of the Target Market’s Evaluation of Price 311
Instant Coffee 287 12-4 Analysis of Demand 312
11-3 Product Differentiation Through Quality, Design, 12-4a Demand Curves 312
and Support Services 287 12-4b Demand Fluctuations 313
11-3a Product Quality 288 12-4c Assessing Price Elasticity of Demand 313
11-3b Product Design and Features 288 12-5 Demand, Cost, and Profit Relationships 315
11-3c Product Support Services 289 12-5a Marginal Analysis 315
11-4 Product Positioning and Repositioning 289 12-5b Breakeven Analysis 318
11-4a Perceptual Mapping 289 12-6 Evaluation of Competitors’ Prices 319
11-4b Bases for Positioning 290 12-7 Selection of a Basis for Pricing 319
11-4c Repositioning 291 12-7a Cost-Based Pricing 320
11-5 Product Deletion 292 12-7b Demand-Based Pricing 321
11-6 Managing Services 293 Creative Marketing: Off-Peak Pricing Woos Afternoon Coffee
11-6a Nature and Importance of Services 293 Customers 321
11-6b Characteristics of Services 294 12-7c Competition-Based Pricing 322
11-6c Developing and Managing Marketing 12-8 Selection of a Pricing Strategy 322
Mixes for Services 297 12-8a New-Product Pricing 322
11-6d Development of Services 298 12-8b Differential Pricing 323
11-6e Pricing of Services 298 12-8c Psychological Pricing 324
11-6f Distribution of Services 299 12-8d Product-Line Pricing 326
11-6g Promotion of Services 300 12-8e Promotional Pricing 326
11-7 Organizing to Develop and Manage 12-9 Determination of a Specific Price 327
Products 301 Integrity in Marketing: Everlane’s “Radically Transparent”
Chapter Review 302 Pricing 328
Key Concepts 303 12-10 Pricing for Business Markets 328
Developing Your Marketing Plan 303 12-10a Geographic Pricing 328
Issues for Discussion and Review 304 12-10b Transfer Pricing 329
Case 11 Cutting Edge Quality: Cutco “Knives for Life” 304 12-10c Discounting 329
Chapter 12: Pricing Concepts and Chapter Review 330

Key Concepts 332
Management 306 Developing Your Marketing Plan 332
Marketing Insights: Mercedes A-Class Drives toward Affordable Issues for Discussion and Review 332
Luxury 307 Case 12 Norwegian Air Shuttle Continues to Climb with Low Costs and
12-1 Price and Nonprice Competition 308 Low Prices 333
PART 5 Distribution Decisions 335
Chapter 13: Marketing Channels and Supply Chain Disruptive Marketing: Pandemic Disrupts Consumer Supply
Chains 344
Management 336 Entrepreneurship in Marketing: Pandemic Boosts Meal Delivery
Marketing Insights: Crafting a Channel Strategy for Craftsman Services 348
Tools 337 13-2c Selecting Marketing Channels 348
13-1 Foundations of the Supply Chain 338 13-3 Intensity of Market Coverage 350
13-2 The Role of Marketing Channels in Supply 13-3a Intensive Distribution 350
Chains 340 13-3b Selective Distribution 351
13-2a The Significance of Marketing Channels 342 13-3c Exclusive Distribution 351
13-2b Types of Marketing Channels 343
Contents xi
13-4 Strategic Issues in Marketing Channels 352 14-3 Brick-and-Mortar Retailers 374

13-4a Competitive Priorities in Marketing Channels 352 14-3a General-Merchandise Retailers 374
13-4b Channel Leadership, Cooperation, and Conflict 352 Creative Marketing: Some Clicks Are Becoming
13-4c Channel Integration 354 Click and Brick 377
13-5 Logistics in Supply Chain Management 356 14-3b Specialty Retailers 378
13-5a Order Processing 357 Disruptive Marketing: Does Tractor Supply Sell
13-5b Inventory Management 358 Tractors? 379
13-5c Materials Handling 359 14-4 Strategic Issues in Retailing 380
13-5d Warehousing 360 14-4a Location of Retail Stores 381
13-5e Transportation 361 14-4b Franchising 383
13-6 Legal Issues in Channel Management 363 14-4c Retail Technologies 384
13-6a Restricted Sales Territories 363 14-4d Retail Positioning 385
13-6b Tying Agreements 364 14-4e Store Image 385
13-6c Exclusive Dealing 364 14-4f Category Management 386
13-6d Refusal to Deal 364 14-5 Direct Marketing, Direct Selling,
and Vending 387
Chapter Review 364
14-5a Direct Marketing 387
Key Concepts 366
Developing Your Marketing Plan 367 14-5b Direct Selling 388
Issues for Discussion and Review 367 14-5c Vending 389
Case 13 The Cocoa Exchange’s Sweet Spot in the Supply Chain 367 14-6 Wholesaling 389
14-6a Services Provided by Wholesalers 390
Chapter 14: Retailing, Direct Marketing, and 14-6b Types of Wholesalers 390
Wholesaling 370 Chapter Review 394
Key Concepts 396
Marketing Insights: Primark Opens Deep-Discount Stores across
the Pond 371
14-1 Retailing 372 Case 14 Lowe’s Taps Technology for Retailing Edge 397
14-2 Online Retailing 373
PART 6 Promotion Decisions 399
Chapter 15: Integrated Marketing Disruptive Marketing: Tesla Bypasses Traditional

Advertising 413
Communications 400 15-4d Sales Promotion 414
Marketing Insights: Buc-ee’s Gases Up on Integrated 15-5 Selecting Promotion Mix Elements 415
Marketing 401 15-5a Promotional Resources, Objectives,
15-1 The Nature of Integrated Marketing and Policies 415
Communications 402 15-5b Characteristics of the Target Market 415
15-2 The Communication Process 403 15-5c Characteristics of the Product 416
15-3 The Role and Objectives of Promotion 406 15-5d Costs and Availability of Promotional Methods 417
15-3a Create Awareness 407 15-5e Push and Pull Channel Policies 417
15-3b Stimulate Demand 408 15-6 The Growing Importance of
15-3c Encourage Product Trial 409 Word-of-Mouth Communications 418
15-3d Identify Prospects 409 15-7 Product Placement 419
15-3e Retain Loyal Customers 409 Entrepreneurship in Marketing: B-Reel Makes Picture Perfect
15-3f Facilitate Reseller Support 409 Product Placement 420
15-3g Combat Competitive Promotional 15-8 Criticisms and Defenses of Promotion 420
Efforts 410
Chapter Review 421
15-3h Reduce Sales Fluctuations 410 Key Concepts 422
15-4 The Promotion Mix 410 Developing Your Marketing Plan 423
15-4a Advertising 411 Issues for Discussion and Review 423
15-4b Personal Selling 412 Case 15 Frank Pepe’s Pizzeria Napoletana Uses Positive Word of Mouth
15-4c Public Relations 413 to Remain a Premiere Pizzeria 423
xii Contents
Chapter 16: Advertising and Public Relations 426 Entrepreneurship in Marketing: Skin in The Game: Rodan +
Fields Gets Personal with Direct Selling 464
Marketing Insights: The Real Deal: Influencer Advertising Takes
17-5 Managing the Sales Force 464
Off 427
17-5a Establishing Sales-Force Objectives 464
16-1 The Nature and Types of Advertising 428
Integrity in Marketing: Wells Fargo Pays the Price for Aggressive
16-2 Developing an Advertising Campaign 430 Sales Objectives 465
16-2a Identifying and Analyzing the Target Audience 431 17-5b Determining Sales-Force Size 466
16-2b Defining the Advertising Objectives 432 17-5c Recruiting and Selecting Salespeople 466
16-2c Creating the Advertising Platform 432 17-5d Training Sales Personnel 467
Creative Marketing: Patagonia Tells Shoppers “Don’t Buy this
17-5e Compensating Salespeople 468
Jacket” 433
17-5f Motivating Salespeople 470
16-2d Determining the Advertising Appropriation 433
17-5g Managing Sales Territories 471
16-2e Developing the Media Plan 435
17-5h Controlling and Evaluating Sales-Force
16-2f Creating the Advertising Message 438
Performance 471
16-2g Executing the Campaign 441
17-6 The Nature of Sales Promotion 472
16-2h Evaluating Advertising Effectiveness 441
17-7 Consumer-Sales-Promotion Methods 473
16-3 Who Develops the Advertising
17-7a Coupons and Cents-Off Offers 473
Campaign? 443
17-7b Money Refunds and Rebates 474
16-4 Public Relations 444
Integrity in Marketing: Sherwin-Williams Paints Itself into a
17-7c Shopper Loyalty and Frequent-User Incentives 475
Corner 444 17-7d Point-of-Purchase Materials and
16-5 Public Relations Tools 445 Demonstrations 475
16-6 Evaluating Public Relations Effectiveness 447 17-7e Free Samples and Premiums 476
17-7f Consumer Contests, Consumer Games, and
Chapter Review 449
Key Concepts 450
Sweepstakes 476
Developing Your Marketing Plan 450 17-8 Trade-Sales-Promotion Methods 477
Issues for Discussion and Review 450 17-8a Trade Allowances 477
Case 16 Scripps Networks Interactive: An Expert at Connecting 17-8b Cooperative Advertising and Dealer Listings 478
Advertisers with Programming 451 17-8c Free Merchandise and Gifts 478
17-8d Premium Money 479
Chapter 17: Personal Selling and 17-8e Sales Contests 479
Sales Promotion 454 Chapter Review 479
Key Concepts 480
Marketing Insights: Costco Freebies Pay Off 455
17-1 The Nature of Personal Selling 456
17-2 Steps of the Personal Selling Process 457 Case 17 Gainsight Provides Sales Support with the Customer
17-2a Prospecting 458 Success Manager 481
17-2b Preapproach 458
17-2c Approach 459 Glossary 485
17-2d Making the Presentation 459 Endnotes 497
17-2e Overcoming Objections 459 Feature Notes 530
17-2f Closing the Sale 460 Name Index 535
17-2g Following Up 460 Organization Index 539
17-3 Types of Salespeople 460 Subject Index 543
17-3a Sales Structure 461
17-3b Support Personnel 461 AVAILABLE ONLY ONLINE:
17-4 Team and Relationship Selling 462 Appendix A: Financial Analysis in Marketing
17-4a Team Selling 463 Appendix B: Sample Marketing Plan
17-4b Relationship Selling 463 Appendix C: Careers in Marketing
Preface
THE IMPORTANCE OF MARKETING

TO BUSINESS
The environment of marketing has significantly changed over the last few years. Although
this revision reflects these changes, the foundational concepts of marketing continue to be
important. All business students need to understand how marketing activities and functions
are necessary for success. The 9th edition of Foundations of Marketing has been revised to
provide a complete understanding of marketing by engaging students in decision making. We
use active learning through the use of examples, exercises, cases, and MindTap. MindTap is
an online personalized teaching experience with relevant assignments that guide students to
analyze, apply, and improve thinking, allowing skills and outcomes to be measured with ease.
What we teach students today could be obsolete in 5 to 10 years. We need to prepare them to
engage in critical thinking and in continuous self-development.
Pride and Ferrell’s Foundations of Marketing facilitates students in mastering essential
concepts. Therefore, evolving marketing areas such as digital marketing and social network-
ing, marketing ethics and social responsibility, as well as major decision variables related to
product, price, distribution, and promotion have received complete revision based on available
research and marketing best practices. Examples and boxed features have been replaced to be
as up-to-date as possible.
We address how technology is changing the marketing environment. As students prepare
for the new digital world, they will also need to practice developing communication skills,
especially teamwork, that go beyond their personal interaction with digital devices. As inter-
net retailing and online business-to-business marketing advances, the importance of supply
chain management becomes important in connecting and integrating members of the distribu-
tion system. Marketing requires an understanding of both supply and demand. Marketing ana-
lytics and artificial intelligence (AI) are defining how decisions are made and implemented.
All of these advances related to technology are changing marketing activities, strategies, and
business models. We address all of these developments to prepare students for the future.
MindTap, available for Foundations of Marketing 9e, is the digital course solution that
moves students from motivation to mastery. MindTap delivers content in bite-sized activities,
ensuring students learn one concept before moving on to the next. It consistently challenges
students to apply and synthesize concepts in real business scenarios, developing strong critical
thinking skills.
MindTap increases students’ confidence throughout the course by providing personalized
direction—connecting students with opportunities to learn more through multiple explana-
tions or contexts, even on the go through our Cengage Mobile App.
Additionally, the instructor companion site hosts readily available video cases, tied to
chapter content, and numerous ancillary materials to aid in class preparation and assessment.
The decline of established ways of shopping is changing the retailing landscape, pro-
motion, and consumer engagement. As consumers change the way they purchase products,
department stores such as Macy’s are closing stores. About two-thirds of books, music, films,
and office supplies are now purchased online. It is not just that consumers are shopping and
xiii
xiv Preface
obtaining product information online, but also that consumer behavior is changing. We have
addressed these changes and recognize that it is not just shopping from home. Consumers are
increasingly focused on trust, value, and convenience. They are more aware of the best place
to obtain products they want.
Specific details of this extensive revision are available in the transition guide in the
Instructor’s Manual. We have also made efforts to improve all teaching ancillaries and stu-
dent learning tools. PowerPoint presentations continue to be a very popular teaching device,
and a special effort has been made to upgrade the PowerPoint program to enhance classroom
teaching. The Instructor’s Manual continues to be a valuable tool, updated with engaging
in-class activities and projects. The authors and publisher have worked together to provide
a comprehensive teaching package and ancillaries that are unsurpassed in the marketplace.
The authors have maintained a hands-on approach to teaching this material and revising
the text and its ancillaries. This results in an integrated teaching package and approach that is
accurate, sound, and successful in reaching students. The outcome of this involvement fosters
trust and confidence in the teaching package and in student learning outcomes. Student feed-
back regarding this textbook is highly favorable.
WHAT’S NEW TO THIS EDITION?

Our goal is to provide the most up-to-date content possible, including concepts, examples,
cases, exercises, and data. Therefore, in this revision there are significant changes that make
learning more engaging and interesting to the students. The
following information highlights the types of changes that
M a r k e t I n g
InsIgh t s were made in this revision.
• Foundational content. Each chapter has been updated with
the latest knowledge available related to frameworks, con-
cepts, and academic research. These additions have been
seamlessly integrated into the text. Many examples are new
and a review of footnotes at the end of the chapters reveals
where new content has been added. Most of the other exam-
ples have been updated.
• Opening vignettes: Marketing Insights. All of the chapter-
opening vignettes are new. They are written to introduce
LeSter baLajadia/ShutterStock.com
the general content of each chapter by focusing on actual

entrepreneurial companies and how they deal with real-
world situations.
LEGOLAND: Small Bricks, Big Attendance
• Boxed features. Each chapterFor includes new or
How Confident Are You
The popularity of LEGO bricks is a major marketing example, some rides have no minimum
updated boxedtheme
strength for LEGOLAND features
parks, owned that height
highlight
requirement,disruptive
giving younger children the
by Merlin Entertainments. LEGOLAND parks are opportunity to enjoy activities. Many rides allow for
marketing,
located in the Unitedintegrity in marketing, an older creative market-
the youngest visitors have a place at LEGOLAND.That Your Organization’s Marketing Team...
States (Florida, California, and sibling or a parent to ride with a child. Even
New York), England, Denmark, Germany, Japan,
ing,
Malaysia,or andentrepreneurship
UAE. The company also operates in marketing.
Parents can feed and The major-
change toddlers in the Baby
LEGOLAND hotels alongside several of its parks, Care Center, and let preschoolers romp in special
ity of the
enhancing boxed features
the LEGO-branded are new
experience for fami- torooms.
“Tot Spot” thisLEGOLAND
edition. also offers a virtual real-
lies that stay overnight. ity enhancement to provide children with an excit- ...has a clear and well-understood brand
• New Snapshot
Competitors such as the Waltfeatures.
Disney Company All of theride Snapshot
ing roller-coaster through a virtual landscape of positioning in place to be competitive? 26% 48%
seek to draw teenagers and adults as well as chil- LEGO bricks.
features
dren. In contrast,areLEGOLANDnew and
focuses engage LEGOLAND
its marketing students by through
hotels carry high- themes of LEGO
specifically on families with children between the brick sets, including wizard and princess guest rooms. ...has the right capabilities to be competitive? 20% 50%
lighting
ages of two andinteresting,
twelve, the key market up-to-date
for LEGO statistics
The idea that and
is to surround children link parents with the
bricks. By understanding the particular interests and fun feeling of vacationing inside the world of LEGO
marketing theory
behavior of young children to the real
and preteens—and their world.
bricks, wherever in the world they visit a LEGOLAND
...is doing the right things to drive growth? 24% 44%
parents—LEGOLAND can develop appropriate park park. No wonder LEGOLAND parks attract 66 million
• New research. Throughoutvisitors
and hotel features to build attendance. theeachtextyear. we have
1
updated content with the most recent research ...is investing in the customers who matter? 23% 49%
115
that supports the frameworks and best practices ...has a clear and well-understood strategy
for marketing. in place to be competitive? 26% 44%
• New illustrations and examples. New adver-

SNAPSHOT
29463_ch05_hr_114-138.indd 115 25/7/19 8:21 am
Not Confident Confident

tisements from well-known firms are employed
Preface xv
to illustrate chapter topics. Experiences of real-world companies are used

to exemplify marketing concepts and strategies throughout the text. Most
examples are new or updated to include digital marketing concepts as
well as several new sustainable marketing illustrations.
• End-of-chapter cases. Each chapter contains one case, profiling a firm
to illustrate concrete application of marketing concepts and strategies.
Some of our cases are new and others have been revised.
• YouTube videos. Each chapter has a YouTube video related to a concept.
Student worksheets are available for application. These are all available
on the instructor companion site.
FEATURES OF THE BOOK

As with previous editions, this edition of the text provides a comprehensive
and practical introduction to marketing that is both easy to teach and to learn.
Foundations of Marketing continues to be one of the most widely adopted
introductory marketing textbooks in the world. We appreciate the confidence
that adopters have placed in our textbooks and continue to work hard to make
sure that, as in previous editions, this edition keeps pace with changes. The
entire text is structured to excite students about the subject and to help them
learn completely and efficiently.
• An organizational model at the beginning of each part provides a “road map” of the text
and a visual tool for understanding the connections among various components.
• Objectives at the start of each chapter present concrete expectations about what students
are to learn as they read the chapter.
• Every chapter begins with an opening vignette. This feature provides an example of the
real world of marketing that relates to the topic covered in the chapter. After reading the
vignette, the student should be motivated to want to learn more about concepts and strate-
gies that relate to the varying topics. Students will be introduced to such companies as
Away, Kroger, Buc-ee’s, Amazon, Craftsman, and Primark.
xvi Preface
CHaPtEr 5: Target Markets: Segmentation and Evaluation 127
Disruptive Marketing • The Disruptive Marketing boxes cover

such marketing phenomena as block-
jiminy crickets: are chirps chips the snack of the Future?
chain, apparel rental, and flash sales.
Chirps Chips, marketed by Six Foods, are crunchy tortilla-
style chips with one surprising ingredient: crickets. The
one gallon of water needed to produce a pound of
cricket flour.
Featured companies include Tractor
chips are all-natural, gluten-free, and high-protein, made The goal of Six Foods is to “help spread the eating Supply, Dollar Shave Club, and Chirps
from ground corn, navy beans, spices, and a healthy of insects as an alternative protein source,” says
helping of cricket flour. Yes, they contain ground-up Meryl (Natow) Breidbart. The company attracted a Chips.
bugs, an excellent source of protein. Crickets have six hefty investment from billionaire entrepreneur Mark
legs, which is why the company is called Six Foods. Cuban after pitching Chirps Chips on Shark Tank.
Founders Rose Wang, Laura D’Asaro, and Meryl Six Foods is targeting consumers who care about
(Natow) Breidbart got the idea for Chirps Chips the environment, live a healthy lifestyle, and like the
after tasting foods made from bugs. They knew novelty and nutrition of gluten-free chips made from
that hundreds of millions of people worldwide eat high-protein cricket flour. Its chipsCHaPtEr 14: Retailing,
are available in Direct Marketing, and Wholesaling 377
scorpions and other insects as part of their daily diet. more than a thousand stores nationwide, and online
• The Creative Marketing feature cap-
Insect protein is cheaper and gentler on the earth’s at Amazon.com. It also sells cricket-rich cookie mix
Creative Marketing
resources than cattle and other traditional protein and cricket powder for home cooks. Can Chirps Chips
tures dynamic changes in marketing. It
sources. Producing a pound of beef requires more change America’s snacking habits and disrupt the
than a thousand gallons of water, compared to the U.S. market for salty snacks?a some clicks are becoming click and brick
explores unique marketing approaches
at IBM, Uber, and Casper. Amazon, Bonobos, Casper, and Warby Parker began
as online retailers, building market share and
20 permanent stores, with plans for up to 200 in the
coming years. Warby Parker eased into traditional
customer loyalty without a single brick-and-mortar retailing after receiving requests to try on eyeglass
PRIZM Premier, by Claritas (formerly under Nielsen), is a service commonly used store. Amazon rose to fame marketing books, while frames in person. Today, the company has 100 stores
by marketers to segment by demographic variables. It can also be used to segmentBonobos by became known for men’s pants, Casper in North America, with more on the way.
psychographic variables and lifestyles. PRIZM combines demographics, consumer behavior, for mattresses, and Warby Parker for eyeglasses. All Thanks to their detailed databases, online retailers
and geographic data to help marketers identify, understand, and reach their customers four andare now part of a growing trend: online retailers can pinpoint clusters of customers, very important
prospects, resulting in a highly robust tool for marketers.23 PRIZM divides U.S. households
opening actual stores. What’s more, customers are when deciding where to locate new stores. Many see
flocking
into demographically and behaviorally distinct segments that take into account such factors as through the doors. physical locations as a good way to test or showcase
likes, dislikes, lifestyles, and purchase behaviors. Used by thousands of marketers, includingAmazon has been experimenting with a variety selected products, meet customers in person, and
many Fortune 500 companies, PRIZM provides marketers with a common tool for under- of creative retail formats for books and for groceries, enhance the buying experience. In some cases,
standing152
and reaching customers in a highly diverse and complex marketplace. including
Partpop-up locations
3: Customer and stores
Behavior without
and E-Marketing online retailers can move into prime spaces suddenly
cashiers. Bonobos has more than 30 stores where available as traditional stores close, with flexible lease
men can be measured for proper fit and receive arrangements to manage the financial risk of trying new
Behavioristic Variables • In the Integrity in Marketing boxed
InTegRITy In MARkeTIng expert assistance. Casper’s first mattress stores
were pop-up shops, open for a limited time. These
locations. Looking ahead, watch for brick-and-mortar
retailing to continue opening new marketing doors for
Firms can divide a market according to consumer behavior toward a product, which commonly
proved so popular that the company soon opened
involves an aspect of consumers’ product use. For example, a market may be separated into users—
features, topics such as ethics, sustain-
online retailers, year after year.a
recycling,
classified as heavy, moderate, Zara nonusers.
or light—and style To satisfy a specific group, such as heavy ability, privacy, and social responsibil-
users, marketers may create a distinctive product and price, or initiate special distribution and pro-
Zara is famous worldwide as a fast-fashion For example,
motion activities. Per capita consumption data can help determine different levels of usage by prod- Zara’s Join Life product line features ity are considered. Featured companies
retailer, speeding
who use the latest styles from itsway,
Spanish “garments with a marketing
increase past,” all manufactured
efforts and makefromshopping
a more convenient. Retailers like Kroger, Whole
uct category. To satisfy customers
headquarters to a
a product
global
in a certain
network of 2,200
some feature—packaging,
stores newly-developed
size, texture, or color—may be designed precisely to make the product easier to use, safer, or more fabric made entirely from recycled include
Foods, and Costco have partnered with Instacart to provide personal Zara,
shopping Pepsi, and Everlane.
and pick-up
as new
convenient. Many web-based trendshave
services emerge.
beenItsmodified
designers to study when the user ismaterials
detectthe orsuch
on a smart- as recycled
delivery services cotton.
in many metropolitan areas. Many supermarket chains offer their own
deliveryalso
or invites
curbside pickup services, as well as meal kits, that help busy consumers save
tastes
phone or other mobile device and
and to buying behavior
adjust the displayofforcustomers in 96
optimal appearance for mobileThe retailer
users. customers to drop used
time. Marketing analytics toolsbins
are at
helping supermarkets remain competitive. Kroger, for
Benefit segmentation geographic regionsoftoaplan
is the division products
market suited to
according benefits thatand
to each unwanted garments into collection
consumers
market’s preferences. After design and manufacture, hundreds example,
of stores has
in employed
30 countries. a customer
The idea data-driven
is to approach to analyze what products to stock,
want from the product. Although most types of market segmentation assume a relationship where
between the variable andthe company sends
customers’ needs,each storesegmentation
benefit two new-product differs in thatgive
the these
benefitsitemstoastock
second them, anddonating
life by even redesign
them store
to layouts to improve the overall store experience
charitable for customers. 10
organizations such as the Red Cross and
customers seek are theirshipments weeklyConsider
product needs. so customers thatcan choose from
a customer whoanpurchases over-the- Another type of supermarket that may take back market share from discount stores is the
ever-changing
counter cold relief medication may be selection
interestedofinsizes,
twocolors, and stopping
benefits: styles. a runnythe nose
Salvation
and Army. Not only does this recycling effort
hard discounter. Hard discounters maintain a no-frills environment and have a minimal assort-
Now Zara is polishing its reputation as an
relieving chest congestion. By determining desired benefits, marketers can divide people ment help the planet
into ofbygoods
keeping tons of used clothing
they can sell at very low prices. These supermarkets first emerged in Europe.
out of464
landfills, it also benefits people Part 6: Promotion Decisions
innovative recycler of fashions and fabrics. Beyond
groups by the benefits they seek. The effectiveness of such segmentation depends on three Now German benefit grocery chains in
segmentation
need. Zara
Aldi
The and Lidl have expanded outside of Europe and into the
the immediate appeal to consumers who care about
conditions: (1) the benefits sought must be identifiable, (2) using these benefits, marketers and its parent
United company
States. track all recycling activities
• The Entrepreneurship in Marketing
division of a market according
earth-friendly products, segments,
recycling isanda key one or more of and
(3)element clothing donation numbers as two of the
must be able to divide people
in
into recognizable
parent company Inditex’s long-term
segments must be accessible to the firm’s marketing efforts. entrepreneurship in Marketing
strategy to
the resulting
many Superstores
companywide
to benefits that consumers want
sustainability metrics used to
feature focuses on the role of entrepre-
cut waste and support environmental sustainability.
from the product
determine progress toward long-term goals.a
Superstores, which originated in Europe, are giant retail outlets that carry not only the food
skin in the game: rodan + Fields gets Personal with Direct selling
neurship and the need for creativity in and non-food products ordinarily found in supermarkets, but also routinely purchased con-
sumer products such as housewares, hardware, small appliances, clothing, and personal-care
developing successful marketing strat- Rodan + Fields was founded by dermatologists Katie its website. Consultants are likely to use Facebook and
products. Superstores combine features of discount stores and supermarkets and generally
Rodan and Kathy Fields, the doctors who founded Instagram to connect with customers, and interested
carry about four times as many items as supermarkets. Superstores also offer additional
egies by featuring satisfaction.
successful entre-of the behavior are noservices,
When outcomes Proactiv,or
longerincluding
satisfying
Having
a popular
no longer
dry cleaning,
attained
linecontribute
of skincare for treating acne. parties are directed to the consultant’s personal Rodan +
automotive repair, check cashing, and bill paying. Examples
wide-reaching success with Proactiv, Fields website to fill orders. The company believes
to achieving a desired goal, the person may switch to another
include Walmartproduct or organization.
Supercenters, some Kroger Forstores, and SuperTarget stores.
preneurial companies
29463_ch05_hr_114-138.indd 127 like WeWork,
instance, if the hairdresser leaves the salon, the consumer the duo marketed Rodan + Fields as skincare for a
To cutmight stopand
handling going if therecosts,
inventory is nosuperstores
one this digital direct-selling model is crucial to reaching
25/7/19 8:21 am
use sophisticated operating techniques
more “mature” population. The company initially consumers across large geographic areas.
SpotHero, and Brandless.
else there who can do a comparable haircut. and often have tall shelving that displays entire assortments of products. Superstores can
chose
occupy information,
Purchasing decisions require that customers process
to sell
an area of as much product
as 200,000
an ability
through high-end
squareby
that varies
department Rodanfeet
feet (compared with 45,000 square + Fields’ businesssuperstores
in tradi- model hasGiant
beenretail outlets
a major
that carry food and non-food
stores, having been purchased by Estée Lauder. success. In recent years, the company has earned
individual. The type of information inexperiencedtional buyers supermarkets).
use However, Salesfrom
may differ volume
theis
with limited
typically
type
success used two to three times that of supermarkets, partly
in stores, the
products found in supermarkets,
by experienced shoppers who are familiar with thebecause product locations
andboughtnear good
purchase transportation
situation. Thus, networks
two helpfounders $1.5 billion
generate the in-store in annual
traffic neededrevenue. The skincare company
as well as most routinely
for types
profitability. back the company and decided to relaunch it launched a new line called purchased
Spotless to target products
consumer
potential buyers of an antique desk may use different of information in making their
as a digital, direct selling firm. pur- teenagers and young adults. Only time will tell if the
chase decisions. The inexperienced buyer may judge the desk’s value Theby price and
founders appearance,
recognized that social commerce is new teen-oriented line will take off, but clearly Rodan +
whereas the more experienced buyer may look at the construction and condition
the future. of theproducts
Instead of selling desk in stores, Rodan + Fields has proved to be a successful personal selling
as well as information about the manufacturer, period, and place of origin
Fields to assess
sell through the desk’s
independent consultants and through business.a
quality and value. Consumers who lack experience may seek information from others when
making a purchase and even take along an informed friend with experience. Experienced
• Key term definitions appear in the margins to help students build their marketing vocabulary.
buyers have greater self-confidence and more knowledge about the product and can recognize
which product features are reliable 29463_ch14_hr_370-399.indd
cues to quality. 377 16/08/19 8:38 am
• Figures, tables, photographs, advertisements,

Marketers help customers learn about their products
Learning Objective
maNagiNg
17-5
experience with them, which makes customers feel more comfortable. They engage
and Snapshot
by facilitating
The sales
17-5 features
opportunities to gain
force
in shaping
increase comprehen-
Discuss eight major
sion and stimulate interest.
potential buyers’ early experience through free samples, sometimes coupled with coupons,
decisions in sales
which can encourage trial and reduce purchase risk. For instance, because some consumers
The sales force is directly responsible for generating one of an organization’s primary inputs:
may be wary of trying new products outside ofmanagement.
• A complete Chapter Review covers the major topics discussed and is organized based
their routine, Costco, H-E-B’ssales revenue.
Central Market,Without adequate sales revenue, businesses cannot survive. In addition, a firm’s
and Whole Foods permit companies to sample their products in the stores’ aisles. reputation is often determined by the ethical conduct of its sales force. Indeed, a positive ethi-
Personal-care
upon the chapter objectives.
products sometimes include a sample of another product in the package. In-store demonstra- cal climate, one
turnover intention
component of corporate culture, has been linked with decreased role stress and
product and improved job attitudes and job performance in sales. Research has dem-
28
tions foster knowledge of product uses. A software producer may use point-of-sale
• The list of Key Concepts provides another end-of-chapter study aid to expand students’
demonstrations to introduce a new product or allow potential customers to onstrated
trial of the software for a month to determine whether they like the software.company
downloadthat
Test drives
a negative ethical climate will trigger higher-performing salespeople to leave a
a free
at agive
higher rate than those in a company perceived to be ethical.29 The morale and
marketing vocabulary.
potential new-car purchasers some experience with the automobile’s features.ultimately the success of a firm’s sales force depend in large part on adequate compensation,
room for advancement, sufficient training, and management support—all key areas of sales man-
Consumers also learn by experiencing products indirectly through information from
• The Developing Your Marketing Plan feature allows students to explore each chapter topic
salespeople, advertisements, websites, internet videos, social media, friends, and relatives.
agement. Salespeople who are not satisfied with these elements may leave. Evaluating the input
of salespeople is an important part of sales force management because of its strong bearing on a
These allow marketers to offer information before (and sometimes after) purchases that can
in relation to developing and implementing a marketing plan.firm’s success. Empowering leadership that makes salespeople feel like important contributors
positively impacts how a sales team spreads knowledge among its customers. Additionally, sales 30
environments that stress creativity appear to place greater significance on the selection and place-
• Issues for Discussion and Reviewmentat the endsales-force
of salespeople, of each chapter
training, performanceencourage furthersystems.
appraisals, and compensation study and 31
exploration of chapter content. TableWe17.1 provides recommendations on how to attract and retain a top-quality sales force.
explore eight general areas of sales management: establishing sales-force objectives,
determining sales-force size, recruiting and selecting salespeople, training sales personnel,
compensating salespeople, motivating salespeople, managing sales territories, and controlling
29463_ch06_hr_139-167.indd 152
and evaluating sales-force performance.
25/7/19 8:22 am
17-5a Establishing Sales-Force Objectives

To manage a sales force effectively, sales managers must develop sales objectives. Sales objec-
tives tell salespeople what they are expected to accomplish during a specified time period.
Copyright 2022 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in They giveto the
part. Due sales force
electronic rights, direction
some thirdand
partypurpose and be
content may serve as standards
suppressed foreBook
from the evaluating and
and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learningthe
controlling reserves the right of
performance to remove additional Sales
sales personnel. contentobjectives
at any timeshould
if subsequent rights
be stated in restrictions
precise, require it.
Preface xvii
• Each chapter has an end-of-chapter case to help students understand the application of
chapter concepts. Some examples of companies highlighted in the cases are Instagram,
Alibaba, Tesla, and Gainsight.
• Online appendices discuss marketing career opportunities, explore financial analysis in
marketing, and present a sample marketing plan. All of these appendices appear online on
the instructor and student companion sites and in MindTap.
• A comprehensive glossary defines more than 600 important marketing terms.
TEXT ORGANIZATION
We have organized the six parts of Foundations of Marketing to give students a theoretical and
practical understanding of marketing decision making.
Part 1 Strategic Marketing and Its Environment
In Chapter 1, we define marketing and explore several key concepts: customers
and target markets, the marketing mix, relationship marketing, the marketing con-
cept, and value-driven marketing. In Chapter 2, we look at an overview of strategic
marketing topics, such as the strategic planning process; corporate, business-unit,
and marketing strategies; the implementation of marketing strategies; performance
evaluation of marketing strategies; and the components of the marketing plan. We
examine competitive, economic, political, legal and regulatory, technological, and
sociocultural forces as well as social responsibility and ethical issues in marketing
decisions that can have profound effects on marketing strategies in Chapter 3.
Part 2 Marketing Research and Target Markets
In Chapter 4, we provide a foundation for analyzing buyers with a look at the
basic steps in the marketing research process. We also discuss the importance
of marketing analytics. We look at elements that affect buying decisions to bet-
ter analyze customers’ needs and evaluate how specific marketing strategies
can satisfy those needs. In Chapter 5, we deal with how to select and analyze
target markets—one of the major steps in marketing strategy development.
Part 3 Customer Behavior and E-Marketing
We examine consumer buying decision processes and factors that influence
buying decisions in Chapter 6. In Chapter 7, we explore business markets,
business customers, the buying center, and the business buying decision pro-
cess. Chapter 8 focuses on the actions, involvement, and strategies of marketers
that serve international customers. In Chapter 9, we discuss digital marketing,
social media, and social networking.
Part 4 Product and Price Decisions
In Chapter 10, we introduce basic concepts and relationships that must be
understood to make effective product decisions as well as branding, packaging,
and labeling. We analyze a variety of dimensions regarding product management
in Chapter 11, including line extensions and product modification, new-product
development, product deletions, and the nature, importance, and characteristics
of services. In Chapter 12, we initially discuss price and non-price competition.
Then we analyze the eight stages of the process marketers use to establish prices.
We explore a variety of pricing topics such as demand, elasticity, marginal analy-
sis, break-even analysis, the basis for pricing, and pricing strategies.
Part 5 Distribution Decisions
In Chapter 13, we look at supply chain management, marketing channels, and
the decisions and activities associated with the physical distribution of products,
xviii Preface
such as order processing, materials handling, warehousing, inventory man-

agement, and transportation. Chapter 14 explores retailing and wholesaling,
including types of retailers and wholesalers, direct marketing and selling, and
strategic retailing issues.
Part 6 Promotion Decisions
We discuss integrated marketing communications in Chapter 15. The com-
munication process and major promotional methods that can be included in
promotion mixes are described. In Chapter 16, we analyze the major steps in
developing an advertising campaign. We also define public relations and how it
can be used. Chapter 17 deals with personal selling and the role it can play in
a firm’s promotional efforts. We also explore the general characteristics of sales
promotion and describe sales-promotion techniques.
A COMPREHENSIVE INSTRUCTIONAL
RESOURCE PACKAGE
For instructors, this edition of Foundations of Marketing includes an exceptionally compre-
hensive package of teaching materials.
Instructor’s Manual
The Instructor’s Manual has been revamped to meet the needs of an engaging classroom
environment. It has been updated with diverse and dynamic discussion starters, classroom
activities, and group exercises.
Test Bank
The test bank provides more than 3,000 test items including true/false, multiple-choice, and
essay questions. Each objective test item is accompanied by the correct answer, appropriate
Learning Objective, level of difficulty, Bloom’s level of thinking, Interdisciplinary Learning
Outcomes, and Marketing Disciplinary Learning Outcomes. Cengage Learning Testing
Powered by Cognero is a flexible, online system that allows you to:
• Author, edit, and manage test bank content from multiple Cengage Learning solutions
• Create multiple test versions in an instant
• Deliver tests from your LMS, your classroom, or wherever you want
American Marketing Association Professional

Certified Marketer®
The American Marketing Association offers marketing graduates the opportunity of adding
the AMA PCM® credentials to their undergraduate or MBA degree, which can serve as a sym-
bol of professional excellence that affirms mastery of marketing knowledge and commitment
to quality in the practice of marketing. Certification, which is voluntary, requires passing a
rigorous and comprehensive exam and then maintaining your certification through continu-
ing education. Earning your AMA PCM® certification demonstrates to employers, peers, and
clients that you:
• Have mastered essential marketing knowledge and practices
• Go the extra mile to stay current in the marketing field
• Follow the highest professional standards
Preface xix
The AMA recommends Pride and Ferrell’s Foundations of Marketing as a suggested resource
for AMA PCM® students to utilize as they prepare for taking the AMA PCM® Certification
exam, and the text was used as a source to design the course and as a source for suitable
examination questions. Now, more than ever, you need to stand out in the marketplace. AMA’s
Professional Certified Marketer (PCM®) program is the perfect way to showcase your exper-
tise and set yourself apart.
To learn more about the American Marketing Association and the AMA PCM® exam, visit
https://www.ama.org/digital-marketing-certification/.
PowerPoint Slides
PowerPoint continues to be a very popular teaching device, and a special effort has been made
to upgrade the PowerPoint program to enhance classroom teaching. Premium lecture slides,
containing such content as advertisements, Web links, and unique graphs and data, have been
created to provide instructors with up-to-date, unique content to increase student application
and interest.
Marketing Case Series

This series contains the cases that can be found at the end of each chapter that include infor-
mation about exciting companies, such as Salesforce.com, Impossible Foods, and The Cocoa
Exchange.
MindTap for Marketing

MindTap is a personalized teaching experience with relevant assignments that guide students
to analyze, apply, and improve thinking, allowing them to measure skills and outcomes with
ease.
• Personalized Teaching: Becomes yours with a learning path that is built with key student
objectives. Control what students see and when they see it. Use it as is or match to your
syllabus exactly—hide, rearrange, add, and create your own content.
• Guide Students: A unique learning path of relevant readings, multimedia, and activities
that move students up the learning taxonomy from basic knowledge and comprehension
to analysis and application.
• Promote Better Outcomes: Empower instructors and motivate students with analytics and
reports that provide a snapshot of class progress, time in course, and engagement and
completion rates.
Your Comments and Suggestions Are Valued

As authors, our major focus has been on teaching and preparing learning materials for intro-
ductory marketing students. We have traveled extensively to work with students and to under-
stand the needs of professors of introductory marketing courses. We both teach introductory
marketing courses on a regular basis and test the materials included in this book, test bank,
and other ancillary materials to make sure they are effective in the classroom. Using our book,
Bill Pride has recently developed an online principles of marketing course at Texas A&M
University.
Through the years, professors and students have sent us many helpful suggestions for
improving the text and ancillary components. We invite your comments, questions, and criti-
cisms. We want to do our best to provide materials that enhance the teaching and learning
of marketing concepts and strategies. Your suggestions will be sincerely appreciated. Please
write us, or e-mail us at w-pride@tamu.edu or ocf0003@auburn.edu, or call 979-845-5857
(Bill Pride).
Acknowledgments
Like most textbooks, this one reflects the ideas of many Cheryl A. Fabrizi, Pennsylvania State University
academicians and practitioners who have contributed to the Kathleen Ferris-Costa, Bridgewater State University
development of the marketing discipline. We appreciate the James Finch, Howard Payne University
opportunity to present their ideas in this book. A number of Renée Florsheim, Loyola Marymount University
individuals have made helpful comments and recommenda- John Fraedrich, Southern Illinois University, Carbondale
tions in their reviews of this or earlier editions. We appreciate Terry Gabel, Consultant
the generous help of these reviewers: Robert Garrity, University of Hawaii
Geoffrey L. Gordon, Northern Illinois University
John Hafer, University of Nebraska at Omaha
Zafar U. Ahmed, Lebanese American University David Hansen, Texas Southern University
Thomas Ainscough, University of South Florida Nancy Hanson-Rasmussen, University of Wisconsin–Eau
Sana Akili, U.S. Department of Commerce Claire
Joe F. Alexander, Belmont University Michael Hartline, Florida State University
David M. Ambrose, Drexel University Salah S. Hassan, George Washington University
David Andrus, Kansas State University Manoj Hastak, American University
Emin Babakus, University of Memphis Dean Headley, Wichita State University
Siva Balasubramanian, Illinois Institute of Technology Esther Headley, Wichita State University
Joseph Ballenger, Stephen F. Austin State University Tony Henthorne, University of Nevada, Las Vegas
Frank Barber, Cuyahoga Community College Elizabeth C. Hirschman, University of Virginia at Wise
Walter H. Beck, Sr., Reinhardt College Charlie Hofacker, Florida State University
Russell Belk, York University Ron Johnson, University of Pittsburg
Karen Berger, Pace University Theodore F. Jula, Technical Marketing Associates
Roger Blackwell, Blackwell Business Advisors Jerome Katrichis, University of Hartford
Nancy Bloom, Nassau Community College Garland Keesling, Towson University
Joseph G. Bonnici, Central Connecticut State University James Kellaris, University of Cincinnati
John Boos, Ohio Wesleyan University Sylvia Keyes, Bridgewater State College
Peter Bortolotti, Johnson & Wales University Hal Koenig, Oregon State University
Chris D. Bottomley, Ocean County College Kathleen Krentler, San Diego State University
Jenell Bramlage, University of Northwestern Ohio John Krupa, Jr., Johnson & Wales University
John R. Brooks, Jr., Houston Baptist University Barbara Lafferty, University of South Florida
Linda Calderone, Farmingdale State University of New York Patricia Laidler, Massasoit Community College
Joseph Cangelosi, University of Central Arkansas Bernard LaLonde, Ohio State University
William J. Carner, Westminster College Richard A. Lancioni, L&H Marketing Consultants
Nancy M. Carr, Community College of Philadelphia Geoffrey P. Lantos, Stonehill College
Lawrence Chase, Tompkins Cortland Community College John Lavin, Strategic Media Group
Larry Chonko, University of Texas at Arlington Marilyn Lavin, University of Wisconsin-Whitewater
Ernest F. Cooke, Loyola College–Baltimore Monle Lee, Indiana University–South Bend
Deborah L. Cowles, Virginia Commonwealth University Richard C. Leventhal, Ashford University
William L. Cron, Texas Christian University Marilyn L. Liebrenz-Himes, George Washington
Sally Dibb, Coventry University University
Katherine Dillon, Ocean County College Terry Loe, Kennesaw State University
Ralph DiPietro, Montclair State University Mary Logan, Global University
Paul Dishman, Utah Valley University Paul Londrigan, Mott Community College
Casey L. Donoho, California State University Anthony Lucas, Community College of Allegheny County
Todd Donovan, Colorado State University George Lucas, Schul Baker Partners
Kent Drummond, University of Wyoming William Lundstrom, Cleveland State University
Tinus Van Drunen, University Twente (Netherlands) Rhonda Mack, College of Charleston
xx
Acknowledgments xxi
Stan Madden, Baylor University Steven A. Taylor, Illinois State University

Patricia M. Manninen, North Shore Community College Ira Teich, Touro College
Gerald L. Manning, Des Moines Area Community College Debbie Thorne, Texas State University
Franklyn Manu, Morgan State University Sharynn Tomlin, Angelo State University
Gayle J. Marco, Robert Morris College James Underwood, University of Louisiana–Lafayette
Carolyn A. Massiah, University of Central Florida Dale Varble, Indiana State University
James McAlexander, Oregon State University Bronis Verhage, Georgia State University
Donald McCartney, University of Wisconsin–Green Bay R. “Vish” Viswanathan Iyer, University of Northern
Jeffrey A. Meier, Fox Valley Technical College Colorado
Marilyn Martin Melchiorre, College of Idaho Kirk Wakefield, Baylor University
Martin Meyers, University of Wisconsin–Stevens Point Harlan Wallingford, Pace University
Keith Murray, Bryant University Jacquelyn Warwick, Andrews University
Carolyn Y. Nicholson, Stetson University James F. Wenthe, Georgia College
James R. Ogden, Kutztown University of Pennsylvania Janice Williams, University of Central Oklahoma
Shannon Ogden, Black River Technical College
Lois Bitner Olson, San Diego State University
Robert S. Owen, Texas A&M University—Texarkana
David P. Paul III, Monmouth University We would like to thank Charlie Hofacker and Michael
Terry Paul, Ohio State University Hartline, both of Florida State University, for many helpful
Teresa Pavia, University of Utah suggestions and insights in developing the chapter on digi-
John Perrachione, Truman State University tal marketing and social networking. Michael Hartline also
Lana Podolak, Community College of Beaver County assisted in the development of the marketing plan outline and
William Presutti, Duquesne University provided suggestions throughout the text. In this edition we
Daniel Rajaratnam, University of Texas at Dallas also appreciate a review and helpful comments from Martin
Mohammed Rawwas, University of Northern Iowa Key for the Digital Marketing chapter. Catherine Roster,
James D. Reed, Louisiana State University–Shreveport University of New Mexico, and Marty Meyers, University of
John Reed, University of New Mexico Wisconsin–Stevens Point, provided important assistance in
William Rhey, Hawaii Pacific University revising several chapters.
Glen Riecken, College of Charleston We thank Gwyn Walters and Kelsey Reddick for their
Bruce Robertson, San Francisco State University research and editorial assistance in the revision of the chap-
Robert A. Robicheaux, University of Alabama–Birmingham ters. We appreciate the efforts of Marian Wood and Jennifer
Bert Rosenbloom, Drexel University Sawayda for developing and revising a number of boxed fea-
Robert H. Ross, Wichita State University tures and cases. We deeply appreciate the assistance of Cassie
Vicki Rostedt, The University of Akron Holt, Lucy Le, Siarra Waddy, Alexa Garcia, Brenda Aram,
Catherine Roster, University of New Mexico and Clarissa Means for providing editorial technical assis-
Don Roy, Middle Tennessee State University tance and support.
Catherine Ruggieri, St. John’s University We express appreciation for the support and encourage-
Rob Salamida, SUNY Broome Community College ment given to us by our colleagues at Texas A&M University
Ronald Schill, Middlebury Institute of International Studies and Auburn University. We are also grateful for the comments
at Monterey and suggestions we received from our own students, student
Bodo Schlegelmilch, Vienna University of Economics and focus groups, and student correspondents who provided feed-
Business Administration back through the website.
Donald Sciglimpaglia, San Diego State University A number of talented professionals at Cengage Learning
Abhay Shah, Colorado State University—Pueblo and SPi Global have contributed to the development of
Mark Siders, Southern Oregon University this book. We are especially grateful to Erin Joyner, Mike
Lyndon Simkin, Coventry University Schenk, Joe Sabatino, Heather Mooney, Allie Janneck, John
Paul J. Solomon, University of South Florida Rich, Stephanie Hall, Megan Guiliani, Bethany Bourgeois,
Eric R. Spangenberg, University of Mississippi Audrey Wyrick, and Lucía Hermo del Teso. Their inspiration,
Rosann L. Spiro, Indiana University patience, support, and friendship are invaluable.
William Staples, University of Houston–Clear Lake
Crina Tarasi, Central Michigan University William M. Pride
Ruth Taylor, Texas State University O.C. Ferrell
About the Authors
William M. Pride O.C. Ferrell

Texas A&M University Auburn University
William M. Pride is Professor of Marketing, Mays Business O.C. Ferrell is the James T. Pursell Sr. Eminent Scholar in
School, at Texas A&M University. He received his PhD from Ethics and Director of the Center for Ethical Organizational
Louisiana State University. In addition to this text, he is the Cultures, Auburn University. He served as the Distinguished
co-author of Cengage Learning’s Business MindTap and Professor of Leadership and Ethics at Belmont University
Foundations of Business, market leaders. Dr. Pride has taught and University Distinguished Professor of Marketing in
Principles of Marketing and other marketing courses for more the Anderson School of Management at University of New
than 40 years at both the undergraduate and graduate levels. Mexico. He has also been on the faculties of University
Dr. Pride’s research interests are in advertising, promo- of Wyoming, Colorado State University, University of
tion, and distribution channels. His research articles have Memphis, Texas A&M University, Illinois State University,
appeared in major journals in the fields of marketing, such as and Southern Illinois University. He received his PhD in
the Journal of Marketing, the Journal of Marketing Research, Marketing from Louisiana State University.
the Journal of the Academy of Marketing Science, and the He is immediate past president of the Academy of
Journal of Advertising. Marketing Science and past vice president of publica-
Dr. Pride is a member of the American Marketing tions. He is past president of the Academic Council of the
Association, Academy of Marketing Science, Society for American Marketing Association and chaired the American
Marketing Advances, and the Marketing Management Marketing Association Ethics Committee. Under his lead-
Association. He has received the Marketing Fellow Award ership, the committee developed the AMA Code of Ethics
from the Society for Marketing Advances and the Marketing and the AMA Code of Ethics for Marketing on the internet.
Innovation Award from the Marketing Management In addition, he is a member of the Academy of Marketing
Association. Both of these are lifetime-achievement awards. Science Board of Governors and is a Society of Marketing
Advances and Southwestern Marketing Association Fellow
and an Academy of Marketing Science Distinguished
Fellow. He was the first recipient of the Marketing Education
Innovation Award from the Marketing Management
Association. He received a Lifetime Achievement Award
from the Macromarketing Society and a special award for
service to doctoral students from the Southeast Doctoral
Consortium. He received the Harold Berkman Lifetime
Service Award from the Academy of Marketing Science
and the Cutco/Vector Distinguished Marketing Educator
Award.
Dr. Ferrell is the co-author of 20 books and more than
100 published articles and papers. His articles have been
published in the Journal of Marketing Research, the Journal
of Marketing, the Journal of Business Ethics, the Journal of
Business Research, the Journal of the Academy of Marketing
Science, and the Journal of Public Policy & Marketing, as
well as other journals.
xxii
PART
1 Strategic Marketing and Its Environment
1 Customer-Driven Strategic Marketing

2 Planning, Implementing, and Evaluating
Marketing Strategies
3 The Marketing Environment, Social
Responsibility, and Ethics
PART 1 introduces the field of marketing and offers a broad

perspective from which to explore and analyze various
components of the marketing discipline.
CHAPTER 1 defines marketing and explores some key concepts,
including customers and target markets, the marketing mix,
relationship marketing, the marketing concept, and value.
CHAPTER 2 provides an overview of strategic marketing issues,
such as the effect of organizational resources and opportunities on
the planning process; the role of the mission statement; corporate,
business-unit, and marketing strategies; and the creation of the
marketing plan.
CHAPTER 3 deals with environmental forces and with the role of
social responsibility and ethics in marketing decisions.
AYA IMAGES/SHUTTERSTOCK.COM
MRMOHOCK/SHUTTERSTOCK.COM
CHAPTER
1 Customer-Driven Strategic
Marketing
LEARNING OBJECTIVES
1-1 Define marketing. 1-5 Summarize the marketing concept.
1-2 Explain the different variables of the 1-6 Identify the importance of building customer
marketing mix. relationships.
1-3 Describe how marketing creates value. 1-7 Explain why marketing is important to our global
1-4 Briefly describe the marketing environment. economy.
M A R K E T I N G
INSIGH TS
ANDRIY BLOKHIN/SHUTTERSTOCK.COM
Whole Foods Is the Whole Package
Two entrepreneurs, John Mackey and Renee In order to market to Amazon shoppers, Whole
Lawson Hardy, began a challenging venture to Foods offers discounts for Amazon Prime custom-
create a company that incorporated the values of ers, and grocery delivery is available with Prime Now.
healthy living and conscious capitalism, all with Amazon has been strategic in the changes it has
a $45,000 loan. Their efforts led them to open a made since acquiring Whole Foods. For example,
small natural foods store named SaferWay, which earlier this year Amazon decided to end construc-
later became Whole Foods. The values held by tion of new 365 stores, a type of store created to offer
Whole Foods have enabled the company to turn more affordable natural products. Since acquiring
its mission into a reality. The core values of the the grocery chain, Amazon has been cutting costs
company involve meeting customer needs and and, therefore, feels that creating additional 365
committing to selling the highest quality natural stores is unnecessary. The good news for custom-
and organic products. Whole Foods, now owned ers who shop at the existing 365 stores is that they
by Amazon, also aims to create positive and ethi- will remain in business. Whole Foods and their new
cal ongoing p artnerships with suppliers and to owner, Amazon, continue to implement success-
create growth and profit while caring about the ful marketing strategies for their customers, and
community and the environment. Amazon has promised additional changes as well.1
4 PART 1: Strategic Marketing and Its Environment
Amazon is working to evolve Whole Foods grocery stores so its high-quality, natural food
becomes more affordable. However, it is faced with competitors such as Trader Joe’s, Sprouts
Farmers Market, and The Fresh Market. Like all organizations, Whole Foods and Amazon
must make marketing decisions and create a satisfying exchange relationship.
This chapter introduces the strategic marketing concepts and decisions covered
throughout the text. First, we develop a definition of marketing and explore each element
of the definition in detail. Next, we explore the importance of value-driven marketing.
We also introduce the marketing concept and consider several issues associated with its
implementation. Additionally, we take a look at the management of customer relationships
and relationship marketing. Finally, we examine the importance of marketing in a global
society.
Learning Objective 1-1

Define marketing. 1-1 DEFINING MARKETING
If you ask several people what marketing is, you are likely to hear a variety of descriptions.
marketing The process of Although many people think marketing is advertising or selling, marketing is much more
creating, pricing, distributing,
complex than most people realize. In this book we define marketing as the process of creat-
and promoting goods, services,
ing, pricing, distributing, and promoting goods, services, and ideas to facilitate satisfying
and ideas to facilitate satisfying
exchange relationships with exchange relationships with customers and to develop and maintain favorable relationships
customers and to develop and with stakeholders in a dynamic environment. Our definition is consistent with that of the
maintain favorable relationships American Marketing Association (AMA), which defines marketing as “the activity, set of
with stakeholders in a dynamic institutions, and processes for creating, communicating, delivering, and exchanging offerings
environment that have value for customers, clients, partners, and society at large.”2
Figure 1.1 Components of Strategic Marketing
CHAPTER 1: Customer-Driven Strategic Marketing 5
Marketing-mix variables are often viewed as controllable because they can be m odified.
However, there are limits to how much marketing managers can alter them. Economic
conditions, competitive structure, and government regulations may prevent a manager from
adjusting the marketing mix frequently or significantly. Making changes in the size, shape,
and design of most tangible goods is expensive; therefore, such product features are not altered
very often. Services are easier to adjust, and there could be an opportunity for the consumer to
select a service. In addition, promotional campaigns and methods used to communicate with
and persuade consumers ordinarily cannot be revised overnight. Changes in the way products
are distributed are much easier than in the past due to e-commerce. Pricing may be the easiest
marketing-mix variable to change.
1-1a Marketing Focuses on Customers

As the purchasers of the products that organizations develop, price, distribute, and promote, customers The purchasers of
c ustomers are the focal point of marketing activities (see Figure 1.1). Companies define their organizations’ products; the focal
products not as what they make or produce, but as what they do to satisfy customers. The Walt point of all marketing activities
Disney Company is not in the business of establishing theme parks; it is in the business of target market A specific
entertainment and making people happy. At Disney World, customers are guests and group of customers on whom
employees are cast members providing a performance and entertainment experience. an organization focuses its
The essence of marketing is to develop satis- marketing efforts
fying exchanges from which both customers and
marketers benefit. The customer expects to gain

a reward or benefit greater than the costs incurred
in a marketing transaction. The marketer expects
to gain something of value in return, generally the
price charged for the product. Through buyer–seller
interaction, a customer develops expectations about
the seller’s future behavior. To fulfill these expecta-
tions, the marketer must deliver on promises made.
Over time, this interaction results in relationships
between the two parties. Fast-food restaurants such
as Wendy’s and Subway depend on repeat purchases
from satisfied customers—many often live or work a
few miles from these restaurants—whereas customer
expectations revolve around tasty food, value, and
dependable service.
Organizations generally focus their marketing
efforts on a specific group of customers, called a
t arget market. Looking at the ad for Kraft, par-
ents who want snacks that will satisfy both them-
selves as well as their children are its target
market.
Marketing managers may define a target mar-
ket as a vast number of people, or as a relatively
small group. Often companies target multiple mar-
kets with different products, prices, distribution
systems, and promotions for each one. Others focus
SOURCE: KRAFT FOODS GROUP, INC.
on a smaller, niche market. For example, Cruzbike,

based in North Carolina, designs high-quality
recumbent road bikes that accommodate riders with
saddle, back, neck, or wrist pain or injury, which
is a relatively small m arket.3 Home Depot, on the
other hand, targets multiple markets with thousands Appealing to a Target Market
of products. Kraft makes snack food designed for the whole family.

Explain the different variables
1-2 ARKETING DEALS WITH PRODUCTS,
M
of the marketing mix. PRICE, DISTRIBUTION, AND PROMOTION
Marketing involves developing and managing a product that will satisfy customer needs. It
also requires promotion to help customers learn about the product and determine if it will
satisfy their needs. It focuses on communicating availability in the right place and at the right
price. Activities are planned, organized, implemented, and controlled to meet the needs of
customers within the target market. Marketers refer to four variables—product, price,
distribution, and promotion—as the marketing mix. Marketing creates value through the
marketing mix. A primary goal of marketing managers is to create and maintain the right mix
of these variables to satisfy customers’ needs for a general product type. They decide what
type of each variable to use and how to synchronize the variables. (Note in Figure 1.1 that the
marketing mix is built around the customer.) Amazon is well-known for its implementation of
the marketing mix. It routinely engages in research and development to create new products
such as its digital assistant, Echo. It promotes its products through advertising, social media,
and media events. Best Buy and other retailers provide Amazon products at a premium price
to convey their quality and effectiveness.
Marketing managers strive to develop a marketing mix that matches the needs of custom-
ers in the target market. For example, many restaurants, like Modern Market Eatery, offer half
portions to appeal to guests seeking greater control over calorie consumption.4 Marketing
managers must constantly monitor the competition and adapt their product, pricing, distribu-
tion, and promotion decisions to create long-term success.
Before marketers can develop a marketing mix, they must collect in-depth, up-to-date
information about customer needs. Such information might include data about the age,
marketing mix Four marketing income, ethnicity, gender, and educational level of people in the target market, their prefer-
variables—product, price, ences for product features, their attitudes toward competitors’ products, and the frequency
distribution, and promotion— with which they use the product. Today, marketers have access to a large amount of data about
that a firm controls to meet the their customers by tracking purchases using social media and other sources. For example,
needs of customers within its Chrome Industries, a cycling apparel and accessories company, closely monitors trends to
target market adjust its marketing mix to provide constant functional as well as style changes. Armed with
product A good, a service, or market information, marketing managers are better able to develop a marketing mix that satis-
an idea fies a specific target market.
Let’s look more closely at the decisions and
activities related to each marketing-mix variable.
Average Time Spent Per Adult
Per Day by Device
1-2a Product
Actions Average Hours Spent per Day
Successful marketing efforts result in products that
Television 4 hrs., 46 mins. become part of everyday life. Consider the satis-
faction customers have had over the years from
Coca-Cola, Levi’s jeans, Visa credit cards, Tylenol
Radio 1 hr., 46 mins. pain relievers, and the Microsoft Surface. The
product variable of the marketing mix deals with
Smartphone (App/Web Use) 2 hrs., 22 mins. researching customers’ needs and wants and
designing a product that satisfies them. A product
could be considered a bundle of satisfaction that
Tablet (App/Web Use) 47 mins. provides value to the consumer. A product can be a
good, a service, or an idea. A good is a physical
entity you can touch. Oakley sunglasses, Nike run-
SNAPSHOT ning shoes, and Tesla automobiles are all examples
Note: Some amount of simultaneous usage may occur across devices.
of products. A service is the application of human
Source: Q1 2018 Neilsen Total Audience Report and mechanical efforts to people or objects to
provide intangible benefits to customers. Air travel,

education, lodging, banking, medical care, and day care
are examples of services. Ideas include concepts, phi-
losophies, images, and issues. For instance, a personal
trainer, for a fee, helps clients exercise and manage
their health and wellness. Other marketers of ideas
include political parties, churches, and animal protec-
tion groups. Products can also be designed for personal
use—consumer product—or for use by businesses. In
the advertisement, Slack, a team communication
platform, targets business professionals with its col-
laboration tools.
The product variable also involves creating or
modifying brand names and packaging, and it may
include decisions regarding warranty and repair ser-
vices. For example, Coca-Cola released a new global
design for its products that features the traditional red
as the main color. The “one brand” strategy is to create
a unified global presence for its flagship soda.
Product variable decisions and related activities are
important because they are directly involved with creat-
ing products that address customers’ needs and wants.
Apple continues to upgrade its iPhone using different
model names such as 11, SE, and XR to signal new
modifications. To maintain an assortment of products
that helps an organization achieve its goals, marketers
must develop new products, modify existing ones, and
eliminate those that no longer satisfy enough buyers or
that yield unacceptable profits.
SOURCE: SLACK.COM
1-2b Price
The price charged for a product helps establish its Types of Products
value. A company’s established pricing objectives and Slack, a cloud-based company with collaboration tools, is an example of a
policies determine its products’ prices. Price is a criti- company that targets business markets.
cal component of the marketing mix because custom-
ers are concerned about benefits, roles, and costs. Price is an important competitive tool that
provides an advantage. Higher prices can be used competitively to establish a product’s pre-
mium image. J Brand and 7 For All Mankind jeans, for example, have an image of high quality
and high price that has given them significant status. Other companies are skilled at providing
products at prices lower than their competitors’ (consider Walmart’s tagline “Save Money.
Live Better.”). Amazon uses its vast network of partnerships and cost efficiencies to provide
products at low prices. Brick-and-mortar retailers have not been able to offer comparable
products at such low prices, providing Amazon with a considerable competitive advantage.
Pricing is the most flexible marketing-mix variable and can be changed very quickly. Also,
price multiplied by quantity sold establishes revenue, which is the responsibility of the mar-
keting function.
1-2c Distribution
To satisfy customers, products must be available at the right time and in appropriate locations.
Subway, for example, locates not only in strip malls but also inside Walmart and Home Depot
stores, laundromats, churches, and hospitals, as well as inside Goodwill stores, car dealer-
ships, and appliance stores. There are approximately 45,000 Subways worldwide, surpassing
McDonald’s as the world’s largest chain.
In dealing with the distribution variable, a marketing man-

ager makes products available in the quantities desired to as many
target market customers as possible, keeping total inventory,
transportation, and storage costs as low as possible. A market-
ing manager also may select and motivate intermediaries (whole-
salers and retailers), establish and maintain inventory control
procedures, and develop and manage transportation and storage
systems.
Supply chain management (SCM) involves maintaining a flow
of products through logistics activities. This includes acquiring
resources, inventory, and the interlinked networks that make
products available to customers through purchasing, logistics,
and operations. SCM has become very important to the success of
online marketers. Companies now can make their products avail-
able throughout the world without maintaining facilities in each
country. For example, Netflix started in the United States with
its DVD by mail service in 1998. Today, because of its internet
presence, Netflix is available in over 190 countries. We e xamine
distribution issues in Chapters 13 and 14.
1-2d Promotion
The promotion variable relates to activities used to inform and
persuade to create a desired response. Promotion can increase
public awareness of the organization and of new or existing prod-
SOURCE: L’ORÉAL
ucts. In the self-tanner advertisement, L’Oréal uses a celebrity who

appeals to its target market. Promotion can help create a direct
Promotion response such as accessing a website to order a product. GEICO
L’Oréal uses singer-songwriter Camila Cabello to promote its uses television and radio advertising to encourage people to spend
Sublime Bronze self-tanner. 15 minutes “to save 15% or more on car insurance.” GEICO’s
tagline encourages consumers to call GEICO to save money.
Promotional activities educate customers about product features. Promotion can also
urge people to take a particular stance on a political or social issue, such as voting, smok-
ing, or drug abuse. It is a mistake to think promotion just involves advertising. Personal
selling is needed for almost every type of product and provides the revenue that the firm
must have to be successful. Sales promotions such as coupons and other incentives like
online discount codes keep sales dynamic. Publicity that provides information, often in
the mass media, is another form of promotion that firms try to manage. The promotion
mix focuses integrated marketing communication to inform and persuade consumers to
purchase a product.5
Promotion can help to sustain interest in established products, such as Jell-O and Tide
detergent, that have been available for decades. Many companies use websites, apps, or social
media to communicate information about themselves and their products. Betty Crocker and
Kraft Foods maintain two of the most popular recipe websites.6

Describe how marketing 1-3 MARKETING CREATES VALUE
creates value. Value is an important element of managing long-term customer relationships and implementing
the marketing concept. We view value as a customer’s subjective assessment of benefits relative
value A customer’s subjective to costs in determining the worth of a product (customer value = customer benefits − customer
assessment of benefits relative to costs). Consumers develop a concept of value through the integration of their perceptions of
costs in determining the worth of product quality and financial sacrifice.7 From a company’s perspective, there is a trade-off
a product between maintaining the desired value and achieving profit objectives.8
DISRUPTIVE MARKETING
COVID-19 Mixes Up the Marketing Mix
The COVID-19 (coronavirus) pandemic, which struck COVID-19 also had an impact on prices. With
the United States in 2020, majorly disrupted the global professional, recreational, and youth sports on hold,
economy. The respiratory disease posed a serious public sporting goods saw a dramatic price drop. And, as
health risk and resulted in travel bans, stay-at-home airline, hotel, and gasoline sales plunged, prices
orders, and the closing of nonessential businesses. In plummeted. Promotion strategies also changed.
the face of a new economy, many brands had to adjust For example, Unilever changed its “Dirt Is Good”
their marketing mix to remain competitive. campaigns of Omo and Persil laundry detergents to
Impossible Foods adjusted its distribution strategy “Home Is Good” to encourage people to stay inside.
by securing a spot for its plant-based burger meat One thing that marketers learned is that
alternative in 1,700 Kroger grocery stores nationwide. consumers can be more resilient than expected and
Companies also adjusted their product strategies. Pathr, are willing to adapt to changing situations. The full
a spatial intelligence platform, created a simulator to long-term impacts of COVID-19 on business are still
allow businesses to identify how people move through evolving as the global economy finds its balance and
their stores, so they could prepare to reopen. consumer confidence increases.a
Customer benefits include anything a buyer receives in an exchange. Hotels and motels,
for example, basically provide a room with a bed and bathroom, but each brand provides
a different level of service, amenities, and atmosphere to satisfy its guests. Ramada Inn
offers the minimum services necessary to maintain a quality, efficient, low-price overnight
accommodation. In contrast, The Ritz-Carlton provides every imaginable service a guest
might desire. The hotel even allows its staff members to spend up to $2,000 to settle cus-
tomer complaints.9 Airbnb competes with these traditional hotels and motels by providing
almost no services other than access to a property at a price the consumer considers a good
value. Customers judge which type of accommodation offers the best value according to the
benefits they desire and their willingness and ability to pay for the costs associated with the
benefits.
Customer costs include anything a buyer must give up to obtain the benefits the prod-
uct provides. The most obvious cost is the monetary price of the product, but nonmonetary
costs can be equally important in a customer’s determination of value. Two nonmonetary
costs are the time and effort customers expend to find and purchase desired products. To
reduce time and effort, a company can increase product availability, thereby making it
more convenient for buyers to purchase the firm’s products. Another nonmonetary cost
is risk, which can be reduced by offering good, basic warranties or extended warranties
for an additional charge.10 One risk-reduction strategy is the offer of a 100 percent sat-
isfaction guarantee. This strategy is increasingly popular in today’s catalog/telephone/
internet shopping environment. Zappos, which carries more than 1,300 brands of shoes
and apparel, has a 100 percent satisfaction guarantee, and shoes can be returned for free
within 365 days.
The processes which people use to determine the value of a product may differ widely.
All of us tend to get a feel for the worth of products based on our own expectations and pre-
vious experience. We can, for example, compare the value of auto rental, airfare, and com-
puters directly with the value of competing products. We evaluate movies, sporting events,
and performances by entertainers on the more subjective basis of personal preferences and
emotions. For most purchases, we do not consciously calculate the associated benefits and
costs. It becomes an instinctive feeling that General Mills’ Cheerios is a good value or that
McDonald’s is a good place to take children for a quick lunch. The purchase of an automobile
or a mountain bike may have emotional compo-

nents, but more conscious decision making also
may figure in the process of determining value.
Consider the advertisement for Straight Talk
Wireless. The ad suggests its unlimited data, talk,
and text plan is superior to its competitor’s plans.
Straight Talk Wireless offers competitive data
speeds and prices, increasing the overall value
provided. Perceptions of value regarding more
aesthetic products, such as flowers, are likely to
vary greatly because different consumers have
different tastes in what they view as aesthetically
pleasing.
In developing marketing activities, it is impor-
tant to recognize that customers receive benefits
based on their experiences. For example, many
appliance buyers consider services such as fast
delivery, ease of installation, technical advice,
and training assistance to be important elements
of the product. Each marketing activity has its
own benefits and costs and must be adapted for its
contribution to value.11 For example, hotels and
restaurants are based on experience and atmo-
sphere. Hilton hotels maintain a high standard of
service from the minute a consumer walks into
the lobby. Customers also derive benefits from
the act of shopping and selecting products. These
SOURCE: STRAIGHT TALK WIRELESS
benefits can be affected by the atmosphere or

environment of a store, such as Red Lobster’s
nautical/seafood theme. Even the ease of navigat-
ing a website can have a tremendous impact on
perceived value.
The marketing mix can enhance perceptions of
Value-Driven Marketing value. A product that demonstrates value usually
Straight Talk Wireless promotes its good value by providing competitive data has a feature or an enhancement that provides ben-
speeds and prices.
efits. Promotional activities can also create image
and prestige characteristics that customers consider in their assessment of a product’s value.
In some cases, value may be perceived simply as the lowest price. Many customers may not
care about the quality of the paper towels they buy; they simply want the cheapest ones for use
in cleaning up spills because they plan to throw them in the trash anyway. On the other hand,
people looking for the fastest, most convenient way to achieve a goal become insensitive to
pricing. For example, many busy customers buy prepared meals in supermarkets to take home
and serve quickly, even though these products cost considerably more than meals prepared
from scratch. In such cases the products with the greatest convenience may be perceived as
having the greatest value. The availability or distribution of products also can enhance their
value. Taco Bell wants to have its Mexican-inspired fast-food products available at any time
and any place people are thinking about consuming food. It therefore has introduced Taco
Bell products into supermarkets, vending machines, college campuses, and other convenient
locations. Thus, the development of an effective marketing strategy requires understanding
the needs and desires of customers, designing a marketing mix to satisfy them, and providing
the value they want.
1-3a arketing Builds Relationships with

M
Customers and Other Stakeholders
Marketing also creates value through the building of stakeholder relationships. Individuals
and organizations engage in marketing to facilitate exchanges, the provision or transfer of
goods, services, or ideas in return for something of value. Any product (good, service, or even
idea) may be involved in a marketing exchange. We assume only that individuals and organi-
zations expect to gain a reward in excess of the costs incurred.
For an exchange to take place, four conditions must exist. First, two or more individuals,
groups, or organizations must participate, and each must possess something of value that the
other party desires. Second, the exchange should provide a benefit or satisfaction to both par-
ties involved in the transaction. Third, each party must have confidence in the promise of the
“something of value” held by the other. If you go to a Justin Timberlake or Rihanna concert,
for example, you go with the expectation of a great performance. Finally, to build trust, the
parties to the exchange must meet expectations.
Figure 1.2 depicts the exchange process. The arrows indicate that the parties communicate
that each has something of value available to exchange. An exchange will not necessarily
take place just because these conditions exist; marketing activities can occur even without an
actual transaction or sale. You may see an ad for a Sub-Zero refrigerator, for instance, but you
might never buy the luxury appliance. When an exchange occurs, products are traded for other
products or for financial resources.
Marketing activities should attempt to create and maintain satisfying exchange relation-
ships. To maintain an exchange relationship, buyers must be satisfied with the good, service,
or idea obtained, and sellers must be satisfied with the financial reward or something else of
value received. The customer relationship often endures over an extended time period, and
repeat purchases are critical for the firm. A dissatisfied customer who lacks trust in the rela- exchanges The provision or
tionship often searches for alternative organizations or products. transfer of goods, services, or
Marketers are concerned with building and maintaining relationships not only with cus- ideas in return for something of
tomers but also with relevant stakeholders. Stakeholders include those constituents who have value
a “stake,” or claim, in some aspect of a company’s products, operations, markets, industry, and stakeholders Constituents who
outcomes; these include customers, employees, shareholders, suppliers, governments, com- have a “stake,” or claim, in some
munities, competitors, and many others. While engaging in marketing activities, the firm aspect of a company’s products,
should be proactive and responsive to stakeholder concerns. This engagement has been found operations, markets, industry,
to increase financial performance.12 and outcomes
Figure 1.2 Exchange between Buyer and Seller
Something of value
Money, credit, labor, goods
Buyer Seller
Something of value
Goods, services, ideas
Therefore, developing and maintaining favorable relations with stakeholders is crucial to

the long-term growth of an organization and its products. For example, employees directly
improve customer satisfaction, and dependable suppliers are necessary to make quality prod-
ucts. Communities can be positive contributors to the firm’s reputation, and these communi-
ties provide opportunities for a firm to make social and economic contributions. Customers
and competitors are often considered to be core stakeholders in developing a marketing
strategy.13

Briefly describe the 1-4 ARKETING OCCURS IN A
M
marketing environment. DYNAMIC ENVIRONMENT
Marketing activities do not take place in a vacuum. The marketing environment, which
includes competitive, economic, political, legal and regulatory, technological, and sociocul-
tural forces, surrounds the customer and affects the marketing mix (see Figure 1.1). The effects
of these forces on buyers and sellers can be dramatic and difficult to predict. Their impact on
marketing environment The
competitive, economic,
value can be extensive, as market changes can easily impact how stakeholders perceive certain
political, legal and regulatory, products. They can create threats to marketers but also generate opportunities for new prod-
technological, and sociocultural ucts and new methods of reaching customers. The COVID-19 (coronavirus) pandemic dis-
forces that surround the rupted the marketing environment in 2020, creating opportunities for businesses to satisfy new
customer and affect the consumer needs. For example, Modern Market Eatery, a restaurant chain, sold grocery boxes,
marketing mix making products available to customers that were sold out at grocery stores.14
The forces of the marketing environment affect a marketer’s
ability to facilitate value-driven marketing exchanges in three
general ways. First, they influence customers by affecting their
lifestyles, standards of living, and preferences and needs for
products. Because a marketing manager tries to develop and
adjust the marketing mix to satisfy customers, effects of envi-
ronmental forces on customers also have an indirect impact on
marketing-mix components. For example, a trend toward high-
protein diets has led companies to emphasize nutritionals on
packaging and offer higher-protein options. In the advertise-
ment, Oscar Mayer looks to satisfy customers by offering P3
Portable Protein Packs. Second, marketing environment forces
help to determine whether and how a marketing manager can
perform certain marketing activities. Third, environmental
forces may affect a marketing manager’s decisions and actions
by influencing buyers’ reactions to the firm’s marketing mix.
Marketing environment forces can fluctuate quickly
and dramatically, which is one reason why marketing is so
interesting and challenging. Because these forces are closely
interrelated, changes in one may cause changes in others.
For example, evidence linking children’s consumption of
soft drinks and fast foods to health issues has exposed mar-
keters of such products to negative publicity and generated
calls for legislation regulating the sale of soft drinks in pub-
lic schools. Some companies have responded to these con-
SOURCE: OSCARMAYER
cerns by voluntarily reformulating products to make them

healthier or by introducing new products. With the popu-
larity of spicy foods, restaurants, including McDonald’s,
The Marketing Environment Taco Bell, Subway, Chick-fil-A, Wendy’s, Burger King, and
As shoppers look for higher-protein foods, brands like Oscar Mayer Applebee’s, as well as others, have introduced Sriracha hot
have adapted to satisfy changing customer preferences. sauce items to their menu.
Changes in the marketing environment produce uncertainty for marketers and at times hurt
marketing efforts, but they also create opportunities. For example, when oil prices increase, con-
sumers shift to potential alternative sources of transportation including bikes, buses, light rail,
trains, ride sharing, electric and hybrid vehicles, or telecommuting when possible. Marketers
who are alert to changes in environmental forces not only can adjust to and influence these
changes but can also capitalize on the opportunities such changes provide. Marketing-mix
variables—product, price, distribution, and promotion—are factors over which an organization
has control; the forces of the environment, however, are subject to far less control. Even though
marketers know that they cannot predict changes in the marketing environment with certainty,
they must nevertheless plan for them. Because these environmental forces have such a profound
effect on marketing activities, we explore each of them in considerable depth in Chapter 3.

1-5 UNDERSTANDING THE Summarize the marketing
MARKETING CONCEPT concept.
marketing concept A
Firms frequently fail to attract customers with what they have to offer because they define managerial philosophy that an
their business as “making a product” rather than as “helping potential customers satisfy their organization should try to satisfy
needs and wants.” Nexium 24HR, a heartburn medication, satisfies the needs of those seeking customers’ needs through a
frequent-heartburn relief. The advertisement focuses on how its product can meet the needs of coordinated set of activities that
its target market, including providing a good night’s rest. also allows the organization to
achieve its goals
According to the marketing concept, an organization should
try to provide products that satisfy customers’ needs through a
coordinated set of activities that also allows the organization to
achieve its goals. Customer satisfaction is the major focus of the
marketing concept. To implement the marketing concept, an
organization strives to determine what buyers want and uses this
information to develop satisfying products. It focuses on cus-
tomer analysis, competitor analysis, and integration of the firm’s
resources to provide customer value and satisfaction, as well as
to generate long-term profits.15 The firm also must continue to
alter, adapt, and develop products to keep pace with customers’
changing desires and preferences. Howard Schultz, founder and
former CEO of Starbucks, demonstrated the company’s grasp on
the marketing concept by explaining that Starbucks is not a cof-
fee business that serves people, but rather a “people business
serving coffee.” Starbucks’ leadership sees the company as
being “in the business of humanity,” emphasizing the fact that
Starbucks is concerned about not only customers but society as
well.16 Thus, the marketing concept emphasizes that marketing
begins and ends with customers. Research has found a positive
association between customer satisfaction and shareholder
value, and high levels of customer satisfaction also tend to attract
and retain high-quality employees and managers.17
The marketing concept is not a second definition of market-
ing. It is a management philosophy guiding an organization’s
overall activities. This philosophy affects all organizational
SOURCE: ASTRAZENECA
activities, not just marketing. Production, finance, account-

ing, human resources, and marketing departments must work
together. For example, at Procter & Gamble, the marketing
function coordinates research and development, distribution, and Implementing the Marketing Concept
resource deployment to focus on providing consumer products Nexium 24HR meets the needs of frequent-heartburn sufferers who
for households. also desire a good night’s sleep.
The marketing concept is a strategic approach to achieve objectives. A firm that adopts the
marketing concept must satisfy not only its customers’ objectives but also its own, or it will
not stay in business long. The overall objectives of a business might relate to increasing prof-
its, market share, sales, or a combination of all three. The marketing concept stresses that an
organization can best achieve these objectives by being customer oriented. Thus, implement-
ing the marketing concept should benefit the organization as well as its customers.
It is important that marketers consider not only their current buyers’ needs, but also the long-
term needs of society. Striving to satisfy customers’ desires by sacrificing society’s long-term wel-
fare is unacceptable. For instance, there is significant demand for large SUVs and trucks. However,
environmentalists and federal regulators are challenging automakers to produce more fuel-efficient
vehicles with increased miles-per-gallon standards. The question that remains is whether or not
Americans are willing to give up their spacious SUVs for the good of the environment.
1-5a Evolution of the Marketing Concept

There have always been companies that embraced the marketing concept and focused on the inter-
ests of consumers. However, while satisfying consumers is necessary for business success, histori-
cally not all firms were successful in implementing this concept. The development of marketing
has been divided into three time periods, including production, sales, and market orientation.
Although this is an over-simplification, these frameworks help to understand marketing over time.
The Production Orientation

During the second half of the 19th century, the Industrial Revolution was in full swing in
the United States. Electricity, rail transportation, division of labor, assembly lines, and mass
production made it possible to produce goods more efficiently. With new technology and new
ways of using labor, products poured into the marketplace, where demand for manufactured
goods was strong. Although mass markets were evolving, firms were developing the ability to
produce more products, and competition was becoming more intense.
The Sales Orientation

While sales have always been a prerequisite to making profits, during the first half of the 20th
century competition increased, and businesses realized that they would have to focus more on
selling products to many buyers. Businesses viewed sales as the major means of increasing profits,
and this period came to have a sales orientation. Businesspeople believed that the most important
marketing activities were personal selling, advertising, and distribution. Today, some businesses
incorrectly equate marketing with a sales orientation, and are still guided by this approach.
The Market Orientation

Although marketing history reveals that some firms have always produced products that con-
sumers desired, by the 1950s, both businesses and academics developed new philosophies
and terminology to explain why this approach is necessary for organizational success. This
perspective emphasized that marketers first need to determine what customers want and then
produce those products, rather than making the products first and then trying to persuade
customers that they need them. As more organizations realized the importance of satisfying
customers’ needs, U.S. businesses entered the marketing era and adopted a market orientation.
A market orientation requires the “organizationwide generation of market intelligence
pertaining to current and future customer needs, dissemination of the intelligence across
departments, and organizationwide responsiveness to it.”18 Market orientation is linked to
new-product innovation by developing a strategic focus to explore and develop new products
market orientation An to serve target markets.19 For example, popular outdoor store REI allows consumers to return
organizationwide commitment most products within one year for a full refund. Electronics have a shorter window for returns.
to researching and responding to A “user friendly” return policy helps REI better serve its customers’ desires to return mer-
customer needs chandise without time pressures.20 Top management, marketing managers, nonmarketing
managers (those in production, finance, and human resources), and customers are all impor-
tant in developing and carrying out a market orientation. Trust, openness, honoring promises,
respect, collaboration, and recognizing the market as the raison d’etre are six values required
by organizations striving to become more market oriented.21
A market orientation should recognize the need to create specific types of value-creating
capabilities that enhance organizational performance.22 For example, a bank needs to use its
resources to maximize the desired level of customer service. Unless marketing managers pro-
vide continuous, customer-focused leadership with minimal interdepartmental conflict, achiev-
ing a market orientation will be difficult. Nonmarketing managers must communicate with
marketing managers to share information important to understanding the customer. Finally,
a market orientation involves being responsive to ever-changing customer needs and wants.
Keurig Green Mountain has released successful products such as coffee blends, brewing sys-
tems, and Keurig cups because it understands what consumers want. Trying to assess what cus-
tomers want, which is difficult to begin with, is further complicated by the speed with which
fashions and tastes can change. Today, businesses want to satisfy customers and build mean-
ingful, long-term, buyer–seller relationships. Doing so helps a firm boost its financial value.23
1-5b Implementing the Marketing Concept

To implement the marketing concept, a market-oriented organization must accept some gen-
eral conditions and recognize and deal with several problems. Consequently, the marketing
concept has yet to be fully accepted by all businesses.
Management must first establish an information system to discover customers’ real needs
and then use the information to create satisfying products. Firms such as Apple Inc., Harley-
Davidson, and Amazon have excelled in listening to consumers and providing satisfying
products. Listening and responding to consumers’ frustrations and recommendations is key
to implementing the marketing concept.24 An information system is usually expensive; man-
agement must commit money and time for its development and maintenance. Without an
adequate information system, however, an organization cannot be market oriented.
To satisfy customers’ objectives as well as its own, a company must coordinate all of its
activities. This may require restructuring its internal operations, including production, mar-
keting, and other business functions. This requires the firm to adapt to a changing external
environment, including changing customer expectations. Companies that monitor the external
environment can often predict major changes and adapt successfully. For example, designer
Jason Wu, known for his luxury designs, is working to reinvent his image by offering lower-
priced apparel in an attempt to appeal to younger customers as a result of low luxury-goods
sales. With consumer preference rapidly evolving, Jason Wu is changing to satisfy a growing
target market.25 If marketing is not included in the organization’s top-level management, the
company could fail to address actual customer needs and desires. Implementing the marketing
concept demands the support not only of top management but also of managers and staff at all
levels of the organization. At General Mills, CEO Ken Powell provides leadership for a market-
ing strategy to address a changing market focused on organic and healthful ingredients in foods.

1-6 CUSTOMER RELATIONSHIP Identify the importance
MANAGEMENT of building customer
relationships.
Customer relationship management (CRM) focuses on using information about customers
to create marketing strategies that develop and sustain desirable customer relationships. customer relationship
Achieving the full profit potential of each customer relationship should be the fundamental management (CRM) Using
goal of every marketing strategy. Marketing relationships with customers are the lifeblood information about customers to
of all businesses. At the most basic level, profits can be obtained through relationships create marketing strategies that
in the following ways: (1) by acquiring new customers, (2) by enhancing the profitabil- develop and sustain desirable
ity of existing customers, and (3) by extending the duration of customer relationships. customer relationships
In addition to retaining customers, companies also should focus on regaining and man-
aging relationships with customers who have abandoned the firm.26 Implementing the
marketing concept means optimizing the exchange relationship, otherwise known as the
relationship between a company’s financial investment in customer relationships and
the return generated by customer loyalty and retention. Firms use email, blogs, phone
calls, and consumer loyalty programs as well as social media to build relationships. It
costs many times more to acquire a new customer, and a small increase in retention can
significantly boost profits.
Maintaining positive relationships with customers is an important goal for marketers.
The term relationship marketing refers to “long-term, mutually beneficial arrangements in
which both the buyer and seller focus on value enhancement through the creation of more
satisfying exchanges.”27 Relationship marketing continually deepens the buyer’s trust in
the company. As the customer’s confidence grows, this, in turn, increases the firm’s under-
standing of the customer’s needs. Buyers and marketers can thus enter into a close rela-
tionship in which both participate in the creation of value.28 Successful marketers respond
to customer needs and strive to increase value to buyers over time. Eventually, this interac-
tion becomes a solid relationship that allows for cooperation and mutual dependency.
Southwest Airlines has implemented relationship marketing with the view that customers
are its most important stakeholder. The company’s mission statement is “dedication to the
highest quality customer service delivered with a sense of warmth, friendliness, individual
pride, and company spirit.”29
Relationship marketing strives to build satisfying exchange relationships between
buyers and sellers by gathering useful data at all customer contact points and analyzing
that data to better understand customers’ needs, desires, and habits. It focuses on building
and using databases and leveraging technologies to identify strategies and methods that
will maximize the lifetime value of each desirable customer to the company. It is impera-
tive that marketers educate themselves about their customers’ expectations if they are to
satisfy their needs; customer dissatisfaction will only lead to defection.30
To build these long-term customer relationships, marketers are increasingly turn-
ing to marketing research and data analytics. Organizations try to retain and increase
long-term profitability through customer loyalty, which results from increasing customer
value. The airline industry is a key player in CRM efforts with its frequent-flyer pro-
grams. Frequent-flyer programs enable airlines to track individual information about cus-
tomers, using databases that can help airlines understand what different customers want
and treat customers differently depending on their flying habits and overall value to the
company. Airlines, hotels, and other service providers are also increasingly gathering a
greater “share of customer,” as discussed below, by tying a company-branded credit card
to enhance overall value for the user and the customer. Many airlines require that the
customers fly certain levels of mileage and charge a minimum dollar value to their credit
card to retain premium benefits. Relationship-building efforts such as frequent-flyer and
credit card programs have been shown to increase customer value.31 Through the use of
e-marketing strategies, companies can personalize customer relationships on a nearly
one-on-one basis. The advertising for a wide range of products such as electronics, jeans,
golf clubs, cosmetics, and entertainment can be tailored for specific customers. CRM pro-
vides a strategic bridge between information technology and data analytics aimed at long-
term relationships. This involves finding and retaining customers by using information to
improve customer value and satisfaction. At the same time, ensuring customer satisfac-
tion is not a one-way street. Customers contribute to the relationship by their purchase
relationship marketing behaviors and their use of resources to maximize customer satisfaction. For example, cus-
Establishing long-term, tomers can research and spend experience or examine the product before purchasing it.32
mutually satisfying buyer–seller Ride-sharing companies such as Lyft offer $9 to $20 in credits as a promotion to get
relationships consumers to experience their service.

1-7 HE IMPORTANCE OF MARKETING
T Explain why marketing is
IN OUR GLOBAL ECONOMY important to our global
economy.
Our definition of marketing and discussion of marketing activities reveal some obvious rea-
sons why the study of marketing is relevant in today’s world. In this section, we look at how
marketing affects us as individuals and its role in our increasingly global society.
1-7a arketing Costs Consume a Sizable

M
Portion of Buyers’ Dollars
Many marketing activities are necessary to provide satisfying goods and services. Obviously,
these activities cost money. About one-half of a buyer’s dollar goes toward marketing costs. If
you spend $10 on a new lipstick, 50 to 60 percent goes toward marketing expenses, including
promotion and distribution, as well as profit margins. The production of the lipstick represents
about $2.50, or 25 percent of its price. A family with a monthly income of $6,000 that allo-
cates $1,200 to taxes and savings spends about $4,800 for goods and services. On average,
$2,400 goes toward marketing activities. If marketing expenses consume that much of your
dollar, you should know how this money is being used.
1-7b arketing Is Used in

M
Nonprofit Organizations
Although the term marketing may bring to mind advertising for
Coca-Cola, Ford, and AT&T, marketing is also important in orga-
nizations working to achieve goals other than ordinary business
objectives (such as profit). Government agencies at the federal,
state, and local levels engage in marketing activities to fulfill their
mission and goals. In addition, universities and colleges engage in
marketing activities to recruit new students, as well as to obtain
donations from alumni and businesses.
Like the private sector, nonprofit organizations also employ mar-
keting activities to create, price, distribute, and promote programs that
benefit particular segments of society. Best Friends Animal Society
provides animal welfare services such as no-kill animal rescue across
the country and offers promotional messages to encourage donations
to support its efforts. Best Friends Animal Society promotes pet
adoption in its advertisement. Nonprofits operate just like businesses
in that they serve a client base and must create revenue to meet their
needs. Marketing activities are necessary to create effective exchange
relationships with donors and those served by the nonprofit.
SOURCE: BEST FRIENDS ANIMAL SOCIETY
1-7c arketing Is Important to

M
Businesses and the Economy
Businesses must engage in marketing to survive and grow, and
marketing activities are needed to reach customers and provide Marketing for Nonprofit Organizations
products. Marketing is the business function responsible for cre- Best Friends Animal Society is a nonprofit focused on promoting
ating revenue to sustain the operations of the organization and pet adoption and providing animal welfare services.
provide financial returns to investors. Innovation in operations and products drives business
success and customer loyalty. Without businesses creating jobs, making profits, paying taxes,
and making donations, nonprofits would not exist.
Marketing activities help to produce the profits that are essential to the survival of indi-
vidual businesses. Without profits, businesses would find it difficult, if not impossible, to buy
raw materials, hire more employees, attract more capital, and create additional products that,
in turn, make more profits. Without profits, marketers cannot continue to provide jobs and
contribute to social causes. Charitable foundations serve an important social need. Companies
support social causes through their donations and promotional activities. Therefore, market-
ing helps create a successful economy and contributes to the well-being of society.
1-7d Marketing Fuels Our Global Economy

Marketing is necessary to advance a global economy. Advances in technology, along with
falling political and economic barriers and the universal desire for a higher standard of living,
have made marketing across national borders commonplace while stimulating global eco-
nomic growth. As a result of worldwide communications and increased international travel,
many global brands have achieved widespread acceptance. Many U.S. firms such as Google,
Facebook, and Microsoft have been born global with an international market from the begin-
ning of their existence. At the same time, customers in the United States have greater choices
among the products they buy because foreign brands such as Toyota (Japan), Bayer (Germany),
and Nestlé (Switzerland) sell alongside U.S. brands such as General Motors, Microsoft, and
McDonald’s. People around the world watch CNN and MTV on Samsung and Sony televi-
sions they purchased at Walmart. Social media and the internet now enable businesses of all
sizes to reach buyers worldwide. We explore the international markets and opportunities for
global marketing in Chapter 8.
1-7e arketing Knowledge Enhances

M
Consumer Awareness
Besides contributing to the well-being of our global economy, marketing activities help to
improve the quality of our lives. In general, consumers have access to more accurate informa-
tion about products—through websites, social media, and required disclosure—than at any
other time in history. Consumers have the opportunity to shop, compare prices, and then return
products that do not satisfy their needs. Americans returned products valued at $26 billion out
of a total of $3.3 trillion sold in a recent year.33 Many of these products are sold at retailer’s out-
let stores, and Amazon has a section on its website for “gently used” products. As you become
more knowledgeable, it is possible to improve career options as well as purchasing decisions.
Understanding marketing enables us to evaluate corrective measures (such as laws, regulations,
and industry guidelines) that could stop unfair, damaging, or unethical marketing practices.
Also, knowledge of marketing helps us evaluate public policy toward marketing that could
potentially affect economic well-being. Thus, understanding how marketing activities work
helps us to be better consumers and increases our ability to maximize value from our purchases.
1-7f Marketing Connects People through Technology

Technology, especially information technology, helps marketers understand and satisfy more
customers than ever before. Access to the internet has changed the daily lives of consumers.
While mobile devices, email, and office management systems are almost universally used,
these tools are being supplemented by emerging technologies. Facebook, Twitter, and Google
are changing the way consumers communicate, learn about products, make purchases, and
share their opinions with others. The global spread of mobile devices has enabled marketers and
consumers to forge new relationships that challenge how traditional marketing-mix variables
are implemented. Evolving software makes it easy to create, store, share, and collaborate.34
Marketers have new methods to store, communicate, and share information through
advanced platforms that access what has been termed as “big data.” We define big data as
massive data files that can be obtained from both structured and unstructured databases.
Companies such as Salesforce.com use big data to provide customer relationship manage-
ment services. A new generation of consumers is using social networks and mobile messaging
applications rather than word documents and email.35 Figure 1.3 shows some of the most
common smartphone activities.
The internet allows companies to provide tremendous amounts of information about
their products to consumers and to interact with them through email and websites. A con-
sumer shopping for a new car, for example, can access automakers’ webpages, configure an
ideal vehicle, and get instant feedback on its cost. Consumers can visit Autobytel, Edmunds,
and other websites to find professional reviews and obtain comparative pricing information
and visit a consumer opinion site such as Yelp to read other consumers’ reviews of the prod-
ucts. They can then purchase a vehicle online or at a dealership. Many companies employ
social media to connect with their customers, using blogs and social networking sites such
as Facebook and TikTok. We will discuss digital marketing in more detail in Chapter 9.
Technology is even transforming the way consumers can do their grocery shopping. As
consumers become more time sensitive, shoppers can access their preferred grocery store
via an app and pick out the items they need. They can order ahead for pickup or delivery,
saving themselves a large chunk of time.36
Artificial intelligence (AI) involves machine learning that can simulate human cognitive
functions. Enabled by big data, AI can use analytics to develop smart systems that have the
potential to change the environment for marketing. AI can be used for consumer service.
Figure 1.3 How Consumers Use Their Smartphones
100%
93%
87%
82%
80%
71%
60%
40%
24% 23%
20% 17%
0%
xt l
ne mai ia
es
s rs
lT
V
Te o ed n ke
Ph E lm rf
i t e a t r o
cia ito sp C on
o n o n
S o
M ic
us
lm
t ro
n
Co
Source: Deloitte Global Mobile Consumer Survey: U.S. Edition 2018
AI bots can provide directions, answers questions, and take orders. AI-enabled robotics can
make deliveries, observe consumers, and check inventory in retail stores. AI enabled by
blockchain information systems can develop data blocks that record ordered transactions.
Blockchain is record-keeping technology that creates a decentralized database that no one can
alter, improving transparency and reducing fraud. Each “block” of data is added to the next
block making it chronological and permanent. Walmart is using blockchain to improve the
traceability of its products from their source to the retail store. In the event of a food contami-
nation outbreak, Walmart would be able to efficiently identify the origin of its food items and
recall produce quickly.
There has also been disruptive technology that has changed not only marketing but
also business models. Peer-to-peer communication helped to create the sharing economy.
Uber, Lyft, and TaskRabbit have created business models that challenge existing competi-
tive relationships. More individuals are becoming independent contractors, and it is esti-
mated that the number of individuals that operate their own business grew by 40 percent in
the last decade.37
Cloud computing and low-cost information technology have empowered individuals and
small businesses to be competitive with large businesses. These technologies have enabled
marketing to create, promote, and facilitate how benefits can be provided for consumers.
These disruptive technologies are having a major impact on distribution, personal selling, and
advertising. Predictive analytics has made it easier to target markets and use promotional activ-
ities based on demographics and other identified behavioral characteristics. Approximately
40 percent of Americans who use the internet indicate that they would rather use a digital
customer service than speak to a service provider on the phone.38
1-7g ocially Responsible Marketing: Promoting

S
the Welfare of Customers and Stakeholders
The success of our economic system depends on marketers whose values promote trust and
cooperative relationships in which customers and other stakeholders are proactively engaged
and have their concerns addressed through marketing activities. Social responsibility and
ethical conduct are part of strategic planning and the implementation of marketing activities.
Although some marketers’ irresponsible or unethical activities end up on the front pages of
USA Today or The Wall Street Journal, most take a responsible approach to developing long-
term relationships with customers and other stakeholders. Firms recognize that trust is built
on ethical conduct.
In the area of the natural environment, companies are increasingly embracing the
notion of green marketing, which is a strategic process involving stakeholder assessment
to create meaningful, long-term relationships with customers while maintaining, support-
ing, and enhancing the natural environment. Many firms are reducing energy consump-
tion, developing environmentally friendly packaging, and creating easily recyclable
products. Such initiatives not only reduce the negative impact that businesses have on the
environment but also serve to enhance their reputations as sustainability concerns continue
to grow.
New technologies related to AI robotics and drones are creating new challenges to mar-
keting ethics. The ability to develop systems that perform like humans will require ethical
and socially responsible behavior. For example, predictive analytics could target markets
without considering diversity, and some segments of the population could experience dis-
crimination. Probably the greatest concern will be how big data and analytics will be used
green marketing A strategic
process involving stakeholder
in marketing and in protecting the privacy of consumers. On the other hand, blockchain
assessment to create meaningful, information systems that provide an audit trail will protect consumers from fraud and pro-
long-term relationships with vide accurate records of transactions. Using technology for the common good should be
customers while maintaining, the objective. By addressing concerns about the impact of marketing on society, a firm can
supporting, and enhancing the contribute to society through socially responsible activities as well as increase its financial
natural environment performance.
INTEGRITY IN MARKETING
Warby Parker Eyes Up the Optical Industry
In 2008, four Wharton MBA students bonded over the 5 million pairs of glasses at affordable prices in
high price of stylish prescription glasses. When they 50 countries to those in need.
discovered it was a single company’s near-monopoly Providing glasses for clearer vision is such a
over the optical industry that led to steep prices, strong part of the company that Pupils Project was
the idea for Warby Parker was born. The start-up’s introduced. This project provides eye screenings
premise was simple: by designing and manufacturing and glasses free of charge to schoolchildren.
glasses in-house and doing without the traditionally Currently, through partnerships with education
high profit margins of the industry, Warby Parker can departments, cities, and schools, Warby Parker
sell designer-style prescription eyeglasses online has performed more than 64,000 exams, screened
for $95 each. Additionally, for each pair of glasses more than 220,000 students, and given more
sold at Warby Parker, a pair of glasses is provided to than 54,000 pairs of glasses to children who
consumers in developing countries at a price they need them. Warby Parker’s commitment to
can afford. The goal is to provide glasses for these taking a product and making it more accessible
consumers to sell and thereby make a better living. to everyday consumers, as well as the emphasis
This program, referred to as Buy a Pair, Give a Pair, the company places on social welfare, sets this
and in partnership with VisionSpring, has provided company apart.b
1-7h Marketing Offers Many Exciting Career Prospects

The marketing field offers a variety of interesting and challenging career opportunities
throughout the world, such as product development, personal selling, social media manage-
ment, distribution, pricing, advertising, marketing research, wholesaling, and retailing. All
industries have marketing positions, including health care, sports, consumer products, non-
profits, government, as well as agriculture and the oil and gas industry. When unemployment is
high, sales positions remain among the most attractive job opportunities. Marketing positions
are among the most secure positions because of the need to manage customer relationships.
In addition, many individuals working for nonbusiness organizations engage in marketing
activities to promote political, educational, cultural, church, civic, and charitable activities.
In the future, accelerating changes in technology will change the types of jobs that exist in
marketing. Cloud computing combined with AI will enable activities in sales, customer ser-
vice, and distribution. Drones will automate surveillance and assist in many marketing activi-
ties. For example, a drone could quickly obtain visual information for an insurance claim. It is
important to remember there will be new roles and jobs that will require skills such as market-
ing analytics. Sales will be enabled to have support systems that help identify customers or
provide a high level of service. Going forward, mastering quantitative skills could be important
for success. The opportunities for marketing jobs will expand and become more important.
We recognize that many students taking a principles of marketing class are not considering
a career in marketing, but because marketing plays such a vital role in any organization, this
course will help prepare all students for their ultimate career choice. Students who desire
to become managers will need to understand the roles of accounting, finance, operations,
management, information technology, and marketing in making decisions. Marketing is the
business function responsible for revenue generation for the entire organization. So, without
effective marketing functions, it would not be possible to survive and have the resources to
operate a business. The focus of marketing is the consumer, and without consumers there is
no business.
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“Do you think it’s a fair track?” inquired Miss Yale, anxiously, as they
came in sight of it. “It is an eight-lap track, you see, and of course a great
many girls only go around four times at first—girls get tired so absurdly
easy! Now I suppose men think nothing of making two miles at a time—it is
just play for them. Men are so strong—that is their greatest fascination, I
think,” she ran on enthusiastically. “Haven’t you seen foot-ball players after
a hard practice game start off and run two miles around the track, and seem
to think absolutely nothing of it?”
“Oh, that’s nothing,” said Newbold, unwarily and warmly. “Fellows are
so different from girls, you know. A girl cries when she’s tired, doesn’t she?
Well, a man just keeps going, you know, and doesn’t let it make any
difference to him.”
“I am so glad to hear that, Mr. Newbold,” said Miss Yale, with prompt
and suspicious sympathy, and a sudden firmness of tone, “because I wanted
dreadfully to ask you to try the track, but hated to do so, for I knew you were
tired—at least you look so. But since you just keep going, and it doesn’t
make any difference to you, why I would be so awfully obliged if you would
run around three or four times. I want to see just how you hold your head
and arms. I don’t believe we do it in the best way, you know.”
It was a rare and pleasingly curious sight that Miss Yale and Miss Thayer
and a great many other young women assembled near the track, apparently
by a strange coincidence, looked upon. It is not often that one has the chance
of seeing an immaculately dressed youth, with flushed and desperate
countenance, tear madly around an eight-lap track in the presence of a
number of flatteringly attentive young women. It occurred to Newbold as he
dashed around and around that it would be far preferable to keep going until
he fainted away or dropped dead, than to stop and encounter the remarks and
glances of those young women. They would at least feel sorry for him in that
case, he thought, gloomily. But even that modest and simple desire was not
granted him. As he started on the fifth lap he heard Miss Yale call to him to
stop. He had a wild inclination to pay no attention to her, but to keep going
on and on, but as he got nearer he saw her step out toward him and put up a
warning hand.
“Thank you so much,” she said, warmly. “I think we have all had a lesson
in running which we shall not forget soon. I hope you are not tired?” she
went on, anxiously.
Newbold said, “Oh, no!” but he felt very tired indeed. His feet ached
horribly and his head felt hot and dizzy, and there were queer, sharp pains
shooting through his body which made him think forebodingly of
pneumonia.
“The surprise is ready—Miss Atterbury is going to have the crew out for
your especial benefit!” went on Miss Yale, triumphantly. “Don’t you feel
complimented? And you are to pull Miss Thayer and myself about while
they go through a little practice for you. Not much, you know, but just
enough to show you the stroke and speed we get. The boat is a beauty—but
then, of course, you know so much more about it than we do! I imagine from
your article that you must pull an oar capitally. Miss Thayer says a cat-boat
is your especial hobby, though.”
“Did Miss Thayer say that?” began Newbold, hotly. “Beastly things, I
think—hate ’em!”
Miss Yale smiled incredulously and brightly at him.
“How modest you are!” she said, admiringly. “Ah! there is Miss
Atterbury!”
Newbold saw some one waving frantically at them.
“Come on!” exclaimed Miss Yale; “we want to see them start off—that’s
the best part.”
Newbold never remembered afterward how he got across the intervening
space, or how he got into a boat with the two young women. The first thing
he heard was Miss Atterbury asking him anxiously how he liked the new
sliding-seats, and what he thought of the proportions of the boat, and about
outriggers in general, and where he thought they could be built best and
cheapest. Newbold felt about as capable of instructing her on such points as
of judging the pictures at a Salon exhibit, and he longed, with a longing born
of utter exhaustion and desperation, to get away. As he wearily pulled the
heavy, unwieldy boat about after the light practice-barge, which kept an
appalling distance ahead of him, he decided within himself that the physical
development of women had been carried to an absurd and alarming extent,
and that men simply were not in it with them when it came to endurance and
enthusiasm, and that he had made the mistake of his life when he wrote that
article on athletics in girls’ colleges, and that his chief might talk until he
was blue in the face before he would ever consent again to write about
anything of which he knew so little.
They were very disappointed when he told them firmly that he could not
stay to dinner or to the concert, but that he had a pressing engagement that
would take him back to the city. And they said that there were still the
Swedish gymnastics and basket-ball and pole-vaulting to see, and that they
were afraid he had not enjoyed himself or he would have got rid of that
engagement in some way; but he assured them impressively that he had
never spent a more instructive or peculiarly interesting afternoon in his life.
Miss Thayer took him back to the station in her trap, and remarked on
how much shorter the way seemed with a good horse; and when she bade
him good-by she told him that she would be looking out for another article in
his paper, and that she would be much disappointed if his visit had not
inspired him to write something. To which Newbold replied that that was his
pressing engagement—he was going back to the city to write another article
on athletics in girls’ colleges, and that he thought it would be different and
better than the former one, but that he would not put his initials to it this
time.
THE COLLEGE BEAUTY
I T was a sort of farewell party, and the young woman who was going away
and who was the object of so much solicitude and tender concern was
sitting, enshrined as it were, on a divan covered with a Navahoe Indian
blanket and surrounded by innumerable cushions, while the rest hung about
her or took up precarious attitudes on the table in dangerous proximity to the
student lamps, or settled themselves in steamer-chairs, or sat upon the tiger-
skin on the floor. That is, the American girls did; Kan Ato, the pretty
Japanese who had come arrayed in a gorgeous new kimono—dull blue
embroidered splendidly in silver—sat upright and very stiffly in the window-
seat with the dark red of the curtains showing off her jet black hair and her
gown wonderfully well; while the tall Scotch girl, a cousin of the guest of
honor, had trusted her generous proportions to the only large, comfortable
American chair in the room.
There was a great deal of noise and confusion and questioning, and Miss
Lavington, as she leaned back against her cushions, half wished that after all
the doctor had not let her come. She had been very ill—a short, sharp attack
of typhoid—and although she had enjoyed tremendously the wine jelly, and
the violets, and the hushed, anxious tones of her friends as they inquired
after her at the infirmary, and the many remarks about her good qualities and
how clever she was in Conic Sections—“just as if she were really dead,” as
she said—still she felt rather too weak properly to appreciate her friends’
enthusiastic sympathy at such close range. And then the thought of going
away—and so far away—had made her feel blue and dispirited.
She was a very pretty English girl, whose father—a colonel in an Indian
regiment—had sent her to America in the care of a sister of his who had
moved to “the States;” and so it had come about that, instead of being a
Girton or Newnham girl, she had matriculated at this American college. And
now her father had written decisively for her to come out and join him in
India, and her college friendships and ties were all to be broken. He had been
writing about it for some time, and her illness had finally precipitated the
affair. She had only waited until she grew strong enough to start, and the
following day had been decided upon. The long sea-voyage would be the
very thing for her, the doctor had thought.
She was trying to explain to the interested young women just what route
she would take, and was rapidly filling their souls with envy at the familiar
mention of Brindisi and Cairo and Aden, when there was a knock and a
quick opening of the door and a girl came into the room. She was a very
beautiful young woman, and when she sat down on the divan beside Miss
Lavington she seemed suddenly to absorb all the attention and interest, and
to become in some magical way the guest of honor and centre of attraction.
She met with a very enthusiastic reception, for she had that afternoon gained
the tennis championship for her class—she was a senior—and had not yet
changed her white flannel suit with scarlet sumach leaves worked on it, and
as she dragged off her soft cap, one could see that her hair still lay in damp
curls upon her forehead.
After she had entered the room one would have realized that they had
really been waiting for her. Her mere presence seemed to make a difference.
It was this magnetic quality which rendered her so irresistible and all adverse
criticism of her so absurd. People might differ as to her beauty—there were
some indeed, who said that she was too large, or that her eyes were not very
expressive, or that her mouth was too small, but they all fell under her
influence in some remarkable way, and were very much flattered when she
asked them to drive with her, and never failed to point her out to their friends
as “the College Beauty, you know;” and even those who honestly wondered
how she ever got through her examinations were forced to admit that she had
a great deal of natural talent, which she did not always care to exercise. She
was a fine tennis player too, using either hand equally well, and when the
Tennis Association got itself into debt and she saved the situation by
beguiling, in some inexplicable way, the famous musical organization of a
certain university into giving a concert for its benefit, her popularity reached
its climax. To the less sought-after girls, her composure and ease of manner
while surrounded by an admiring circle of college men was nothing short of
marvellous, and the recklessly generous disposal which she made of these
youths to her less attractive friends seemed to betoken a social prodigality
little short of madness.
Miss Lavington looked at her imploringly.
“Make them keep quiet, won’t you?” she said. The Beauty looked around
her—“Are you trying to make her ill again, so she can’t go?” she asked.
Her words had the desired effect, and the girl who had been twanging
abstractedly at a banjeurine put it down.
“She oughtn’t to leave!” she declared, plaintively. “It’s a shame! Here we
are, just beginning the semestre, and she’s only half through her college
course anyway, and just because her father wants her she has to give up
everything and go.”
“Yes, and you know she’ll be sure to have jungle-fever or get bitten by a
cobra or something, and die,” suggested someone cheerfully, if a trifle
vaguely.
The girl lying on the tiger-skin looked up.
“I know why her father wants her,” she began calmly. “There is an officer
—young, handsome, well born, a fine place in Surrey or Devon or Kent,
been in the family for generations, old uncle, no children—just the thing for
her. Her father will take her up to some place in the Himalayas to spend the
summer, and he will arrange for the handsome, young, etc., officer to be
there, and next fall we will receive the cards. It sounds just like one of
Kipling’s stories, doesn’t it?”
They were all laughing by the time she had finished, but The Beauty,
looking at the girl beside her, suddenly stopped smiling. There was a
conscious flush on Miss Lavington’s face which set her to thinking, and then
she glanced over to the big Scotch girl and waited an instant.
“Tell us all about it,” she said finally to Miss Lavington. The girl looked
up quickly and then dropped her eyes again.
“There isn’t much to tell,” she began. The others were listening now.
Even Kan Ato, smiling in her pensive, oriental way, leaned far forward so as
not to lose a word.
“He isn’t rich and he hasn’t any place in Surrey—or anywhere else that I
know of, except perhaps in India,” she went on. “But he is young and
handsome. We used to know each other when we were children—he is a sort
of cousin—but I haven’t seen him for years. We used to be very much in
love with each other.” She smiled. “My father writes me that he says he is
still in love with me, and so—perhaps we are to be married.”
“I knew it,” sighed the girl on the tiger-rug, in a satisfied sort of way.
The Beauty looked at the English girl curiously. “And you haven’t seen
him for years? and yet you think of marrying him! How do you know you
will love him now?—you are both changed—you may be two totally
different people from the children who fell in love.” She had spoken
vehemently and quickly, and Miss Lavington gazed at her with languid
surprise.
“You are not in love with him yourself?” she said, smilingly.
The girl made a quick, impatient gesture.
“I am speaking seriously,” she said. “You are several years younger than I
am, and you don’t know what you are doing. Don’t let your father—don’t let
anyone—persuade you to bind yourself to a man you don’t know, whose life
has been so vitally different from your own as to render the possibility of
sympathy between you very slight.”
Miss Lavington looked at her rather coldly.
“You are interesting yourself unnecessarily,” she said; “I loved him not so
many years ago—it cannot be possible that so short a time would change us
completely.”
The Beauty leaned her head back with sudden wearied look on her face.
“A few years at our time of life makes all the difference in the world,” she
said, earnestly. “What pleased and interested and fascinated us at eighteen
might very possibly disappoint and disgust us at twenty or twenty-two. I do
not mean to preach,” she said, smiling deprecatingly and turning to the rest,
“but you know as well as I what an influence this college life has on us, and
how hard it is to go back to former conditions. If we get stronger here we
also get less adaptable. We are all affected by the earnestness and the culture
and advancement of the life we lead here for four years, whether we will or
no, and it is very hard to go back!”
They were all looking at her in amazement. The Beauty was not much
given to that sort of thing. She stopped abruptly as if herself aware of the
sensation she was creating, and laughed rather constrainedly.
“Don’t marry your handsome officer unless you are in love with him!”
she said insistingly still to the girl beside her. “Don’t mistake the childish
affection you felt for him for something deeper. You have your whole life
before you—don’t spoil it by precipitation or a false generosity or a reckless
passion!” There was an anxious, troubled look in her eyes.
The girl still stretched out on the tiger-skin glanced up again at The
Beauty. “I seem to have started a subject in which you are deeply
interested,” she said gayly to her. “And one in which you have had enormous
experience too. Do you know you have an almost uncanny way of
fascinating every man who comes near you. It’s a sure thing. None of the
rest of us have a chance. I believe you could marry half a dozen or so at any
time that you would take the trouble to say ‘yes’!”
The girl addressed looked openly amused—“Please take a few off your
list,” she said. But the other refused to notice her remark and ran on in her
light way.
“And they are all so nice too—it is really hard to choose, but I think on
the whole I prefer a certain young man who shall be nameless. Now, would
you call his devotion to yourself ‘mad precipitation or a false generosity or a
reckless passion?’ ” She moved herself lazily over the yellow skin until her
head rested against the girl’s knee.
“And he is such a nice, eligible youth too. I hope you are not going to
spoil his life by refusing him. Only think how lovely it would be to have
one’s father-in-law representing the majesty of these United States at an
Emperor’s court,” she went on, turning gayly to the others. “And he is so
handsome and clever! He will be representing Uncle Sam himself some day,
and she will be reading up the rules of court etiquette and receiving
invitations from the Lord Chamberlain to dine with the Queen, and fuming
because the Grand Duchess of something or other has the right to walk in to
dinner before her.” She was not noticing the girl’s significant silence. “Of
course he is just the man for you—you wouldn’t make any but a brilliant
match, you know, with your beauty and society manner. But just for the
present—well, next winter you will début, and you will be much talked
about, and the youth will not be with his father at the European capital, but
will be very much en évidence here, and then—after Easter we shall get your
cards!”
She twisted her head around, smiling, so as to get a look at the girl’s face
above her. It wore so grave and hopeless an expression that she gave a little
cry.
“Forgive me,” she said, confusedly, “but you do love him, don’t you?”
The Beauty turned her eyes away and shook herself slightly, as if
awakening from a dream.
“As confession seems to be the order of the hour,” she said in a dull tone,
and smiling peculiarly, “I don’t mind owning that I do love him very much.”
She got up abruptly and moved toward the door amid a chorus of
protests, but she would not stay. At the threshold she turned to Miss
Lavington.
“Send your things down by the coach,” she said. “If you will let me I will
be glad to drive you to the station myself to-morrow.”
When she got to her own study she found a letter thrust under the door
with the familiar number of her room scrawled upon it in pencil. She picked
it up, and as she looked at the address an expression of profound dislike and
weariness came into her face. She opened the door slowly and put the letter
down upon her desk, looking at it thoughtfully for a few moments. The
handwriting was irresolute and boyish. She shivered slightly as she took the
letter up with sudden resolution and tore it open. As she sat there and read it
a look of hatred and disgust and utter hopelessness, strangely at variance
with her usual brilliant expression, settled harshly upon her lovely, young
face.
“My Dearest Wife,” it ran, “Forgive me! but this is about the only
luxury I indulge in!—calling you in my letters what I dare not call you as yet
before the world.
“I am in a retrospective mood to-night, and feel like writing all sorts of
things which I am afraid you won’t much like. Do you know I think that
college is doing you harm! Don’t get angry at this, but sometimes I’m afraid
you have repented of our boy and girl runaway match; but God knows I
haven’t, and I’m glad I didn’t go to college but came out West and went to
work for us both. I haven’t succeeded very brilliantly and may be the life has
roughened me a bit, but I guess you can have the best there is out here, and I
am still as devoted to you as in those old days of the summer before you
went to that confounded (excuse me!) college, when you were just eighteen
and I barely twenty-one. How interminably long four years seemed to wait
then! But it was a case of getting married secretly and of waiting, or of not
getting you at all. Sometimes I can hardly stand it, and I’d come back now
and take you away, if I wasn’t so afraid of that blessed old father of yours—
but I’m just as big a coward as I was three years ago, when I couldn’t screw
up courage enough to go to him and tell him that he’d have to relinquish his
pet scheme of sending his daughter to college, for she belonged to me.
Whew! what a scene we’d have had! It was best to wait, I suppose.
“After all, only a year and then I can claim you! Have you changed any?
I’m afraid you’re way ahead of me now. I always had an uncomfortable
suspicion that you were very much my superior, and I have half fancied that
perhaps you only loved me because I was so madly—so passionately in love
with you. Did I over-persuade you? have you ceased to love me? Sometimes
I get half sick with fear. You are all I have! But after all I feel safe enough—
I know you too well not to know that you will never break your promise—
even one you hate. But you know I’ll never hold you to that marriage—
though it was all valid enough—if you don’t want to be held. I can simply
blow my good-for-nothing brains out.
“I won’t write any more to-night. There is so much swearing and noise
down in the street that I can hardly think; besides I don’t feel just like it, and
lately your letters have only irritated me. But I won’t complain, for I know
how generously you have acted and what brilliant prospects you have given
up for my precious self!
“Devotedly yours and only yours,
“G. G. B.”
A TELEPHONED TELEGRAM
W HEN Miss Eva Hungerford married Stanhope there was one young
lady intensely glad of it, although it was whispered that there were also
two or three who were quite the contrary. But Mrs. Renford Phillips—
once Miss Violet Featherstone—had particular reasons for rejoicing, and she
wrote a long letter to Miss Hungerford when she heard of the engagement,
and said that she hoped “by-gones would be by-gones now, and that she was
sure her friend would be a broader-minded and more perfect woman, if that
were possible, now that she was going to have the additional experience of
getting married.”
Miss Hungerford wrote her a most cordial reply, and the two girls, for
several years slightly estranged, became again the friends they had been
during the first three years of their college life.
The blow had fallen very suddenly, and Miss Hungerford had found it
hard to forgive what she called, in her heart, her friend’s tacit deceit and
culpable silence. But, as she wrote in her reply to Mrs. Phillips’s letter, her
opinions had undergone a decided change, and she felt that perhaps she had
been a little hard on her friend and had not understood her feelings and the
pressure brought to bear upon her, and she acknowledged that circumstances
might materially alter one’s views and actions. And Miss Featherstone, who
had been the most talked about girl in college during the last semestre of her
junior year, and who had suffered acutely under Miss Hungerford’s
indifferently concealed displeasure and surprise at her conduct, replied that
now she could be truly happy in her husband and her home, and insisted that
Mr. and Mrs. Stanhope should visit her in the Berkshire Hills that summer.
This they did, and though, of course, each thought her husband much the
handsomer and more distinguished-looking, still they were very affectionate
toward each other, and planned to be at Cowes together the next summer for
the yachting.
As has been said, their estrangement happened very suddenly and came
about by an unfortunate occurrence one morning in the office of the college.
Anyone who has never had the privilege of being in that office on a
Monday morning, just after chapel, can have but a faint idea of
pandemonium. The whole seven hundred students seem to be revolving
about. There are the young women standing around, waiting to take the next
train into Boston, not having been able to go on the early express because
they had foolishly forgotten to get a leave of absence on the Saturday
previous, and who are furtively trying not to see their friends who are not
going on at all, so as to keep from having to attend to their commissions; and
there is the girl who is telephoning for roses to wear at the concert that night,
and those who are booking boats and tennis courts, and others reading
bulletins; and when there is an extra commotion and the crowd is forced
back a little to let the cords be pulled up around the desk so as to clear a
space; and when the carrier comes in and tumbles the big mail-bags into the
middle of it with one hand and unlocks them at apparently the same instant
with the other; and when about ten young women fall upon the bags and
rend their contents from them, and begin to assort and number and tie up the
letters, all the time besieged by their excluded friends to give them their mail
on the spot as they are going away, the noise and excitement reach a climax.
But it is all very pleasant and enlivening except the telephone bell, which
rings constantly and is wearing on the nerves. It rings not only for all
telephone messages but for all telegrams, for the college, being a mile or so
from the telegraph station, everything is simply telephoned up to save
delays, and that a long and continuous procession of small messenger boys
may not be forever circulating between the college and the station.
It was this unfortunate custom of telephoning telegrams, unknown of
course to the majority of outsiders, that precipitated the affair. On that
particular Monday morning, when the confusion in the office was at its
worst, the telephone bell suddenly rang unusually loudly and long, and the
nervous Freshman on duty jumped toward it with a warning motion to the
rest to keep quiet.
“Hush! it’s a telegram,” she said in a moment, and instantly there was
silence, for a telegram is always dreaded where there are so many to whom it
could bear ill news. She reached for a pad of paper and a pencil to take it
down. From the other end came “Important. Repeat slowly as I deliver it.”
The nervous Freshman said “All right,” and braced herself against the
support to write.
“To Miss Violet Featherstone.” The docile Freshman repeated it and then
said “Wait!” and looked around.
“If Miss Featherstone is here,” she remarked, “she can come to the
telephone;” but someone volunteered the information that Miss Featherstone
had left by the early train for Boston, and the telephoning proceeded.
“My darling—” the Freshman gasped a little and then repeated slowly
“My darling.” There was some suppressed commotion for an instant among
the crowd around the doors, and the two at the telephone went at it again.
“I have not heard from you for three days.”
“I have not heard from you for three days,” mumbled the Freshman.
“What is the matter? Renford Phillips.”
“What is the matter? Renford Phillips.”
When Miss Featherstone reached the college that afternoon she thought
she detected a suppressed excitement about the whole place, though she felt
rather too tired to think much about it, but when she got to her room she
found a telephone message for her which made her sink weakly into a chair.
An appalling vision of the consequences rose before her. She tried to
think connectedly, but the effort was too much. Her only thought was of the
effect it would have on her friend Eva Hungerford. She would go to her
immediately and find out how much she knew.
As she went along the corridors more than one acquaintance smiled
knowingly at her, but she only hurried on. When she reached Miss
Hungerford’s rooms, she found that young lady looking dejectedly out of the
windows. Her melancholy turned to stony haughtiness, however, when Miss
Featherstone approached her tremblingly.
“Yes, the whole college knew of it,” she assured her. “The message had
been telephoned up when the office was crowded, and by this time everyone
was aware of what her best friend had not known.”
Miss Featherstone rebelled a little under Miss Hungerford’s chilling
glance and attempted to explain, but her friend was very sad and firm, and
said she did not see how any explanation could do away with the fact that
Violet Featherstone had broken the solemn vow they had made together
never to marry, but to devote themselves to serious study as a life-work. But
when Miss Featherstone quite broke down under her friend’s disapprobation,
Miss Hungerford relented a little and asked her if she were really so fond of
Renford Phillips, and if she thought life with him in Morristown would
compensate her for the loss of Oxford and the Bodleian. Miss Featherstone
cried a little at that, and said she thought it would, and that she had started a
hundred times to tell her dearest friend about her engagement, but she knew
how she thought about such things, and how she would lose her respect for
allowing anything to interfere with their plans for mental advancement. And
Miss Hungerford only sighed and wrote that night to her mother that another
of her illusions had been dispelled, but that she was firmer than ever in her
determination to make something of herself.
Miss Featherstone did not return for her degree, but had a pretty church
wedding that summer at Stockbridge, and Miss Hungerford sent her a very
handsome wedding gift, but refused to be present at the marriage. They did
not write to each other much the next year, and Miss Hungerford worked so
hard that the Faculty had to interfere, and when she left college with a B. S.
degree, smiling sadly and saying that she would be a bachelor as well as an
old maid, everybody remarked what a superior girl she was to her friend
Violet Featherstone.
“MISS ROSE”
S HE was always called that, and there were very few of the seven hundred
students who really knew or cared whether it was her little name or her
family name. The uncertainty about it seemed particularly appropriate
someway—her whole personality was vague. That is at the beginning; later
——
For the first month she passed comparatively unnoticed. In the wild
confusion of setting up household gods and arranging schedules, hopeless as
Chinese puzzles, of finding out where the Greek instructors can see you
professionally, and when the art school is open, and why you cannot take
books from the library, and when the elevator runs, anyone less remarkable-
looking than an American Indian or the Queen of the Sandwich Islands is apt
to be overlooked. But after the preliminary scuffle is over and there is a lull
in the storm, and one begins to remember vaguely having seen that dress or
face before somewhere, and when one no longer turns up at the history or art
rooms instead of the chemical laboratories, and when one ceases to take the
assistant professor of physics for the girl who sat next to you in the
trigonometry recitation—then the individual comes in for her share of
attention.
“Miss Rose” possibly got more than her share. Curious young women
soon began to nudge each other, and ask in whispers who she was. And just
at first there were covert smiles and a little cruelly good-natured joking, and
the inevitable feeble punning on her name and withered looks. There were
some who said she could not be more than forty-five, but they were in the
minority, and even the more generously inclined could not deny that her face
was very old and wrinkled and tired-looking, and that her hair was fast
getting gray around the temples, though her eyes still retained a brilliancy
quite feverish, and an eager, unsatisfied sort of look that struck some of the
more imaginative as pathetic. As a freshman she seemed indeed to be
hopelessly out of place—though not so much so, perhaps, as the little
Chicago beauty who was so much more interested in her gowns and looks
than in her work, that at the beginning of her second semestre she went
home with an attack of pneumonia, brought on by having been left out in the
cold after an examination in conic sections.
That type, however, is not uncommon, while “Miss Rose” was especially
puzzling. They could not quite understand her, and there were even some
among the august body of ridiculous freshmen who somewhat resented her
entrance into their ranks, and wondered rather discontentedly why she did
not join the great body of “T-specs” to which she so evidently belonged.
But it was characteristic of this woman that she preferred to begin at the
beginning and work her way up—to take the regular systematic grind and
discipline of the freshman’s lot—to matriculating in an elective course where
she could get through easily enough if she were so inclined. She saw no
incongruity in her position; she rarely seemed to notice the difference
between herself and the younger, quicker intellects around her, and she
worked with an enthusiasm and persistence that put most of the young
women to shame. That she had taught was evident—in what little out-of-the-
way Western town, or sleepy Southern one, no one knew; but sometimes
there were amusing little scenes between herself and the professor, when the
old habit of school-room tyranny which she had once exercised herself was
strong upon her, and she lapsed unconsciously into the didactic manner of
her former life. And sometimes she became discouraged when the long lack
of strict mental discipline irked her, and when she saw in a glimpse how far
she was behind the girl of nineteen beside her, and how hopeless was the
struggle she was making against youth and training. There were moments
when she realized that she had begun too late, that the time she had lost was
lost irretrievably. But the reaction would quickly come and she would work
away with renewed energy, and they were very patient with her and would
lend her a helping hand where a younger student would have been let most
severely alone, to sink or swim after the approved method.
But if her mathematics and chemistry and Tacitus left much to be desired,
there was one field in which she shone resplendently. “No one could touch
her”—as one young woman slangly but enthusiastically remarked—“when it
came to the Bible.” There she was in her glory, and her vast knowledge of
the wars of Jeroboam and Rehoboam, and her appalling familiarity with
Shamgar and the prophets, and the meaning of the Urim and Thummim, and
other such things, was the envy and despair of the younger and less
biblically inclined. And if at times she was a trifle too prolix and had to be
stopped in her flow of information, there was very genuine regret on the part
of the less well informed.
And in time she came to make a great many friends. Her peculiar ways no
longer struck them as comical, and if anyone had dared make reference to
the plainness of her gowns or the strict economies she practised to get
through, that person would have very soon discovered her mistake; and they
pretended not to know that she would not join any of the societies because of
the dues, and that she did her own laundry on Monday afternoons. Indeed,
she was so kindly disposed and so cheerful and helpful, and seemed so
interested in all the class projects and even in the sports, at which of course
she could only look on, that little by little she came to be a great favorite,
and the one to whom the rest naturally turned when there was any hitch or
especial need for advice. And then, of course, as she was not to be thought of
in the light of a possible candidate for president or vice-president or captain
of the crew, or any of the other desirable high-places, those misguided young
women who did have such literary, social, or athletic aspirations would go to
her and confide their hopes and fears, and in some strange way they would
all feel very much more comfortable and happy in their minds after such
confessions. And so she got to be a sort of class institution in a very short
while, and the captains of different stylish but rather un-nautical freshman
crews vied with each other in invitations to “come over the lake” with them,
and the president of the Tennis Association sent her a special and entirely
superfluous invitation to the spring tournament on the club’s finest paper,
and the senior editor of the college magazine, whose sister was a freshman,
was made to ask her for a short article on the “Study of the Bible,” and at the
concerts and receptions many young women, kindly and socially disposed,
would introduce her to their brothers and other male relations who had been
enticed out, before taking them on to see the lake, or a certain famous walk,
or the Art Building, or the Gymnasium.
It was about the middle of the winter semestre that it happened, and of
course it was Clara Arnold who knew about it first. Miss Arnold had liked
“Miss Rose” from the beginning. She had taken a fancy to the hard-working
woman, who had returned it with wondering admiration for the handsome,
clever girl. And so Miss Arnold got into the habit of stopping for her
occasionally to walk or drive, and it was when she went for her to go on one
of those expeditions, that she discovered the trouble. She found “Miss Rose”
sitting before her desk with a crumpled newspaper in her hand, and a dazed,
hopeless expression on her face which cut the girl to the heart. Her things
were scattered about the room, on the bed and chairs, an open trunk half-
filled stood in one corner. Miss Arnold stared around in amazement.
“The bank’s broken,” said “Miss Rose” simply, in answer to her
questioning glance, and pointed dully to the paper. “I might have known that
little bank couldn’t hold out when so many big ones have gone under this
year,” she went on, half speaking to herself.
Miss Arnold picked up the paper and read an article on the first page
marked around with a blue pencil. She did not understand the technicalities,
but she made out that the “City Bank” of a small town in Idaho had been
forced to close, and that depositors would not get more than five or ten cents
on the dollar.
“Every cent I’ve saved up was in that bank!” The woman turned herself
slowly in her chair and laid her face down on the desk with her arms above
her head. She spoke in muffled tones into which a strange bitterness had
crept.
“I’ve worked all my life—ever since I was twenty—to get enough money
to come to college on. I had barely enough to stay here at all—and now—”
she stopped suddenly, breathing hard. “I haven’t been here a year yet,” she
broke out at last.
“Well, I’ll have to go back to teaching. Great heavens! I thought I’d
finished with that!”
Miss Arnold seated herself on a clear corner of the bed.
“Look here, ‘Miss Rose,’ ” she said, excitedly, “of course you aren’t
going to stop college now, when you’re doing so well and—and we all like
you so much and—and you’re just beginning your course.” She stumbled on
—“Has everything gone?—can’t you do something?”
“Miss Rose” looked up slowly—“Everything,” she said grimly, and then,
with the pathetically resigned air of one who has been used to misfortunes
and has learned to accept them quietly, “I’ve worked all my life, I suppose I
can go at it again.” She looked around her. “I’ll be gone this time to-morrow,
and then I won’t feel so badly;”—she put her head down on the desk again.
Miss Arnold looked thoughtfully at her for a few minutes and then, with a
sudden movement, she got up and went out, closing the door softly behind
her.
It was about nine o’clock that evening and “Miss Rose” had almost
finished packing. She was feeling particularly disheartened and was taking
the books from the cases one by one in a very mournful way, when she heard
footsteps and a subdued but very excited whispering outside her door. She
got up languidly and threaded her way among the books and cushions and
odd articles of clothing heaped up on the floor. As she opened the door, the
light from her student-lamp fell upon the very red face of a freshman
propelled apparently into the room by the two or three others behind her,
who seemed to have a wild desire to efface themselves entirely.
“Miss Rose,” gasped the blushing freshman in the van, “here—here is a
letter for you. We’ve just had a class meeting—” she looked nervously at the
others who were edging away.
There was an indistinct chorus from them which sounded like “hope
you’ll accept,” and then they retreated with as much dignity as possible, but
in great haste.
“Miss Rose” opened the letter and gave a little cry as a check for a good
round sum drawn on the class treasurer fell to the floor. And then she sat
weakly down on the bed and cried a little from pure happiness as she read it
all over.
“The class of ’9—have just heard of ‘Miss Rose’s’ financial
embarrassment occasioned by the failure of the —— City Bank, and being
most unwilling to lose so valuable and appreciated a member, beg that she
will accept the enclosed and continue with the class until the end of the
year.”
A SHORT STUDY IN EVOLUTION
A COLLEGE for women is generally looked upon by the outside world

and the visiting preachers as a haven of rest, a sort of oasis in the desert
of life, a Paradise with a large and flourishing Tree of Knowledge of
which one is commanded to eat, and where one is happily ignorant of the
“struggle for life,” and the woes and evils of the world.
Such views have been so often expressed and inculcated that it appears a
little ungracious and stubborn to insist that the bishop who comes out and
delivers a sermon once a year, or the brilliant young graduate from a
neighboring seminary—who is sent because the dean has been suddenly
called away and who is quaking with fear at the ordeal—cannot possibly
know all about a girl’s college life and its temptations and its trials and its
vanities.
When the heterogeneous mass of humanity which makes up a big college
is got together and in close relation for ten months at a time, there is bound
to be action and reaction. When New York society girls and missionaries’
daughters from India, and Boston Latin-school girls and native Japanese, and
Westerners and Georgians and Australians and “Teacher Specials,” and very
young preparatory-school girls, are all mixed up together, it inevitably
happens that there is some friction and many unexpected and interesting
results. One of these is that it not infrequently happens that a young woman
leaves college an entirely different person from the girl who took her
entrance examinations, and sometimes the change is for the better and
sometimes for the worse, or it may be unimportant and relate only to the way
she has got to wearing her hair, or the amount of extra money she considers
necessary. At any rate, a noticeable change of some sort always operates in a
girl during her four or five years’ stay at a college, and when she goes home
“for good” her friends will criticise her from their different points of view,
and will be sure to tell her whether she is improved or not.
When Miss Eva Hungerford returned for her senior year at college,
having been greatly disappointed in one of her friends, she determined to
make no new ones, but to work very hard and keep a great deal to herself.
She succeeded so well in her efforts that, after she had been there three
months, she became aware that she knew absolutely none of the new

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Foundations of Marketing, 9e 9th

Edition William M. Pride

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PART 1: Strategic Marketing and Its Environment 1

PART 2: Marketing Research and Target Markets 83

PART 3: Customer Behavior and E-Marketing 139

PART 4: Product and Price Decisions 245

Part 5: Distribution Decisions 335

Part 6: Promotion Decisions 399

AVAILABLE ONLY ONLINE:

PART 1 Strategic Marketing and Its Environment 1

Chapter 1: Customer-Driven Strategic Key Concepts 23

Chapter 3: The Marketing Environment, Social 3-7 Sociocultural Forces 67

PART 2 Marketing Research and Target Markets 83

PART 3 Customer Behavior and E-Marketing 139

PART 4 Product and Price Decisions 245

Chapter 12: Pricing Concepts and Chapter Review 330

PART 5 Distribution Decisions 335

13-4 Strategic Issues in Marketing Channels 352 14-3 Brick-and-Mortar Retailers 374

PART 6 Promotion Decisions 399

Chapter 15: Integrated Marketing Disruptive Marketing: Tesla Bypasses Traditional

THE IMPORTANCE OF MARKETING

WHAT’S NEW TO THIS EDITION?

the general content of each chapter by focusing on actual

• New illustrations and examples. New adver-

Not Confident Confident

to illustrate chapter topics. Experiences of real-world companies are used

FEATURES OF THE BOOK

Disruptive Marketing • The Disruptive Marketing boxes cover

• Figures, tables, photographs, advertisements,

17-5a Establishing Sales-Force Objectives

such as order processing, materials handling, warehousing, inventory man-

American Marketing Association Professional

Marketing Case Series

MindTap for Marketing

Your Comments and Suggestions Are Valued

Stan Madden, Baylor University Steven A. Taylor, Illinois State University

William M. Pride O.C. Ferrell

1 Strategic Marketing and Its Environment

1 Customer-Driven Strategic Marketing

PART 1 introduces the field of marketing and offers a broad

Learning Objective 1-1

Figure 1.1 Components of Strategic Marketing

1-1a Marketing Focuses on Customers

on a smaller, niche market. For example, Cruzbike,

Learning Objective 1-2

provide intangible benefits to customers. Air travel,

In dealing with the distribution variable, a marketing man-

ucts. In the self-tanner advertisement, L’Oréal uses a celebrity who

Learning Objective 1-3

or a mountain bike may have emotional compo-

benefits can be affected by the atmosphere or

1-3a  arketing Builds Relationships with

Figure 1.2 Exchange between Buyer and Seller

Money, credit, labor, goods

Goods, services, ideas

13-4 Strategic Issues in Marketing Channels 352 14-3 Brick-and-Mortar Retailers 374

1-3a arketing Builds Relationships with

1-7a arketing Costs Consume a Sizable

1-7b arketing Is Used in

1-7c arketing Is Important to

1-7e arketing Knowledge Enhances

1-7g ocially Responsible Marketing: Promoting