Table of contents for A framework for marketing management : integrated with PharmaSim / Philip Kotler, Kevin Lane Keller ; in collaboration with Stu James.

Bibliographic record and links to related information available from the Library of Congress catalog.

Note: Contents data are machine generated based on pre-publication provided by the publisher. Contents may have variations from the printed book or be incomplete or contain other coding.


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Contents
Preface xvi
Part I UNDERSTANDING MARKETING MANAGEMENT 1
1. Defining Marketing for the Twenty-First Century 1
The Importance of Marketing 2
The Scope of Marketing 2
What Is Marketing? 2
What Is Marketed? 3
What Is a Market? 4
Who Markets? 5
How Is Marketing Done? 5
Core Marketing Concepts 6
Needs, Wants, and Demands 6
Target Markets, Positioning, and Segmentation 7
Offerings and Brands 7
Value and Satisfaction 8
Marketing Channels 8
Supply Chain 8
Competition 8
Marketing Environment 9
The New Marketing Realities 9
Major Societal Forces 9
New Consumer Capabilities 10
New Company Capabilities 10
Company Orientation Toward the Marketplace 10
The Production Concept 10
The Product Concept 11
The Selling Concept 11
The Marketing Concept 11
The Holistic Marketing Concept 12
Marketing Management Tasks 16
Executive Summary 17
Notes 18
SimConnects for Chapter 1: 
 The Role of the PharmaSim Simulation (page) 
 Roles and Complexity in PharmaSim (page)
 Experience Core Marketing Concepts with PharmaSim (page)
 4Ps Decisions in PharmaSim (page)
 Marketing Management Tasks in PharmaSim (page)
iv
2. Developing and Implementing Marketing Strategies
and Plans 20
Marketing and Customer Value 21
The Value Delivery Process 21
The Value Chain 22
Core Competencies 23
A Holistic Marketing Orientation
and Customer Value 23
The Central Role of Strategic Planning 25
Corporate and Division Strategic Planning 26
Defining the Corporate Mission 26
Defining the Business 27
Assigning Resources to SBUs 28
Assessing Growth Opportunities 28
Organization, Organizational Culture,
and Innovation 29
Business Unit Strategic Planning 29
Business Mission 29
SWOT Analysis 30
Goal Formulation 31
Strategy Formulation 31
Program Formulation and Implementation 32
Feedback and Control 32
The Marketing Plan and Marketing Performance 33
Contents of a Marketing Plan 33
Measuring Marketing Performance 33
Executive Summary 35
Notes 36
SimConnects for Chapter 2: 
 The Value Delivery Process in PharmaSim (page) 
 Developing a Marketing Plan in PharmaSim (page)
 Measuring Marketing Performance in PharmaSim (page)
 PharmaSim SWOT Assignment (page)
3. Understanding Markets, Market Demand, and the
Marketing Environment 38
Marketing Information, Intelligence, and Research 39
Internal Records 39
Marketing Intelligence System 40
Marketing Research System 40
Forecasting and Demand Measurement 46
Which Market to Measure? 46
Demand Measurement 47
Company Demand and Sales Forecast 48
Estimating Current Demand 48
Estimating Future Demand 50
Contents v
vi Contents
Macroenvironmental Trends and Forces 50
Demographic Environment 51
Economic Environment 53
Social-Cultural Environment 53
Natural Environment 54
Technological Environment 55
Political-Legal Environment 56
Executive Summary 56
Notes 57
SimConnects for Chapter 3: 
 Understanding the Marketing Environment in PharmaSim (page) 
 The Consumer Survey in PharmaSim (page)
 Estimating Market Demand in PharmaSim (page)
 Macro Environmental Trends and Forces in PharmaSim (page) 
 Assignment: Understanding Marketing Research (page)
Part II CONNECTING WITH CUSTOMERS 59
4. Creating Customer Value, Satisfaction,
and Loyalty 59
Building Customer Value and Satisfaction 60
Customer Perceived Value 60
Total Customer Satisfaction 62
Monitoring Satisfaction 62
Product and Service Quality 64
Maximizing Customer Lifetime Value 64
Customer Profitability 64
Measuring Customer Lifetime Value 66
Cultivating Customer Relationships 67
Attracting and Retaining Customers 67
Building Loyalty 68
Customer Databases and Database Marketing 70
Data Warehouses and Datamining 71
The Downside of Database Marketing
and CRM 72
Executive Summary 72
Notes 73
SimConnects for Chapter 4: 
 The Importance of Satisfaction in PharmaSim (page) 
 The Relationship Between Satisfaction and Repurchase Behavior in PharmaSim (page)
 Measuring the Value of Satisfaction (page)
5. Analyzing Consumer Markets 76
What Influences Consumer Behavior? 77
Cultural Factors 77
Social Factors 77
Personal Factors 79
Key Psychological Processes 81
Motivation: Freud, Maslow, Herzberg 81
Perception 82
Learning 83
Memory 83
Contents vii
The Buying Decision Process: The Five-Stage Model 85
Problem Recognition 85
Information Search 85
Evaluation of Alternatives 87
Purchase Decisions 88
Postpurchase Behavior 88
Executive Summary 90
Notes 90
SimConnects for Chapter 5: 
 Segmentation in PharmaSim (page) 
 Relating the Five-Stage Model of the Consumer Buying Process to PharmaSim (page)
 Real World Buying Process and Segmentation Application (page)
6. Analyzing Business Markets 94
What Is Organizational Buying? 95
The Business Market versus the Consumer Market 95
Institutional and Organizational Markets 95
Buying Situations 97
Systems Buying and Selling 98
Participants in the Business Buying Process 98
The Buying Center 98
Buying Center Influences 99
Buying Center Targeting 100
Stages in the Buying Process 101
Problem Recognition 101
General Need Description and Product
Specification 101
Supplier Search 102
Proposal Solicitation 103
Supplier Selection 103
Order-Routine Specification 104
Performance Review 104
Building Business Relationships 104
Executive Summary 106
Notes 107
SimConnects for Chapter 6: 
 The Business Market and PharmaSim (page) 
7. Identifying Market Segments and Targets 110
Levels of Market Segmentation 111
Segment Marketing 111
Niche Marketing 111
Local Marketing 112
Individual Marketing 112
Segmenting Consumer and Business Markets 113
Bases for Segmenting Consumer Markets 114
Bases for Segmenting Business Markets 119
viii Contents
Market Targeting 120
Effective Segmentation Criteria 121
Evaluating and Selecting Market
Segments 122
Additional Considerations 124
Executive Summary 125
Notes 125
SimConnects for Chapter 7: 
 Segmentation in PharmaSim (page) 
 Usage rates in PharmaSim (page)
 How segmentation is different from product categories (page)
 Target Market Selection Maps Application Exercise (page) 
Part III BUILDING STRONG BRANDS 128
8. Creating Brand Equity 128
What is Brand Equity? 129
The Role of Brands 129
The Scope of Branding 129
Defining Brand Equity 130
Brand Equity as a Bridge 131
Building Brand Equity 131
Choosing Brand Elements 132
Designing Holistic Marketing Activities 133
Leveraging Secondary Associations 134
Measuring and Managing Brand Equity 135
Brand Audits and Brand Tracking 135
Brand Valuation 136
Managing Brand Equity 136
Brand Strategy and Customer Equity 137
Branding Decisions 138
Brand Extensions 139
Brand Portfolios 140
Customer Equity 141
Executive Summary 142
Notes 142
SimConnects for Chapter 8: 
 Brand Equity for Allround (page) 
 Line Extensions in PharmaSim (page)
 The Role of Allround in Allstar?s Portfolio (page)
 Cannibalization and the Line Extension Decision (page) 
9. Crafting the Brand Positioning and Dealing
with Competition 147
Developing and Communicating a Positioning Strategy 148
Competitive Frame of Reference 149
Points-of-Parity and Points-of-
Difference 149
Establishing Category Membership 150
Choosing POPs and PODs 151
Creating POPs and PODs 151
Contents ix
Differentiation Strategies 152
Product Differentiation 152
Services Differentiation 153
Other Dimensions of Differentiation 154
Competitive Forces and Competitors 154
Identifying Competitors 155
Industry and Market Views of Competition 155
Analyzing Competitors 157
Strategies 157
Objectives 158
Strengths and Weaknesses 158
Selecting Competitors 158
Competitive Strategies 159
Market-Leader Strategies 159
Other Competitive Strategies 161
Balancing Customer and Competitor
Orientations 163
Executive Summary 164
Notes 165
SimConnects for Chapter 9: 
 Defining Category Membership for Allround (page) 
 Differentiation in PharmaSim (page)
 Usage Rates in PharmaSim (page)
 The Value of One Share Point (page)
 Creating a Value Proposition for Allround (page) 
Part IV SHAPING THE MARKET OFFERINGS 168
10. Setting Product Strategy and Marketing through
the Life Cycle 168
Product Characteristics and Classifications 169
Product Levels 169
Product Classifications 170
Product and Brand Relationships 171
Product-Line Analysis 172
Product-Line Length 172
Line Modernization, Featuring,
and Pruning 172
Co-Branding and Ingredient Branding 173
Packaging, Labeling, Warranties, and Guarantees 173
Packaging 173
Labeling 174
Warranties and Guarantees 174
Managing New Products 175
Why New Products Fail?and Succeed 175
New Product Development 175
x Contents
The Consumer Adoption Process 181
Stages in the Adoption Process 182
Factors Influencing Adoption 182
Marketing Through the Product Life Cycle 183
Product Life Cycles 183
Marketing Strategies: Introduction Stage
and the Pioneer Advantage 184
Marketing Strategies: Growth Stage 184
Marketing Strategies: Maturity Stage 185
Marketing Strategies: Decline Stage 185
Critique of the Product Life-Cycle Concept 186
Executive Summary 187
Notes 187
SimConnects for Chapter 10: 
 Reformulation Decision in PharmaSim (page) 
 Conjoint Analysis in PharmaSim (page)
 Breakeven Analysis in PharmaSim (page)
 Stages in the Adoption Process Applied to PharmaSim (page)
 Marketing Strategies for Allround (page) 
 Apply the Five Product Levels to Allround / Allstar (page)
11. Designing and Managing Services 191
The Nature of Services 192
Categories of Service Mix 192
Distinctive Characteristics of Services 193
Marketing Strategies for Service Firms 194
A Shifting Customer Relationship 195
Holistic Marketing for Services 196
Managing Service Quality 198
Customer Expectations 198
Best Practices of Service-Quality Management 200
Managing Service Brands 202
Differentiating Services 202
Developing Brand Strategies for Services 202
Managing Product Support Services 203
Identifying and Satisfying Customer Needs 203
Post-Sale Service Strategy 204
Executive Summary 204
Notes 205
SimConnects for Chapter 11: 
 Services and PharmaSim (page) 
12. Developing Pricing Strategies and Programs 209
Understanding Pricing 210
A Changing Pricing Environment 210
How Companies Price 210
Consumer Psychology and Pricing 211
Setting The Price 212
Step 1: Selecting the Pricing Objective 212
Contents xi
Step 2: Determining Demand 213
Step 3: Estimating Costs 214
Step 4: Analyzing Competitors? Costs, Prices,
and Offers 216
Step 5: Selecting a Pricing Method 216
Step 6: Selecting the Final Price 221
Adapting the Price 221
Geographical Pricing 222
Price Discounts and Allowances 222
Promotional Pricing 222
Differentiated Pricing 223
Product-Mix Pricing 224
Initiating and Responding to Price Changes 225
Initiating Price Cuts 225
Initiating Price Increases 225
Responding to Competitors? Price
Changes 226
Executive Summary 227
Notes 227
SimConnects for Chapter 12: 
 Reference Pricing in PharmaSim (page) 
 Allround?s Pricing Objective (page)
 Determining Demand in PharmaSim (page)
 Estimating Costs in PharmaSim (page)
 Using Trade-offs to Estimate Perceived-Value Pricing (page) 
 Selecting the Final Price (page)
 Additional Price Decisions (page)
 The Dangers of Price Cuts in PharmaSim (page)
 Calculating the Impact of Price Changes (page)
Part V DELIVERING VALUE 230
13. Designing and Managing Integrated Marketing
Channels 230
Marketing Channels and Value Networks 231
The Importance of Channels 231
Value Networks 232
The Role of Marketing Channels 232
Channel Functions and Flows 232
Channel Levels 234
Service Sector Channels 235
Channel-Design Decisions 235
Analyzing Customers? Desired Service Output
Levels 235
Establishing Objectives and Constraints 235
Identifying Major Channel Alternatives 236
Evaluating the Major Alternatives 237
Channel-Management Decisions 238
Selecting Channel Members 238
Training and Motivating Channel Members 238
Evaluating Channel Members 238
Modifying Channel Arrangements 239
xii Contents
Channel Integration and Systems 240
Vertical Marketing Systems 240
The New Competition in Retailing 241
Conflict, Cooperation, and Competition 241
Legal and Ethical Issues in Channel
Relations 243
E-Commerce Marketing Practices 244
Pure-Click Companies 244
Brick-and-Click Companies 245
M-Commerce 245
Executive Summary 245
Notes 246
SimConnects for Chapter 13: 
 Push and Pull Strategies in PharmaSim (page) 
 Channel Structure in PharmaSim (page)
 Lot Sizes and Volume Discounts in PharmaSim (page)
 Intensive Distribution (page)
 Motivating and Emphasizing Channel Partners (page) 
 Trends in Channel Importance (page)
14. Managing Retailing, Wholesaling, and Logistics 248
Retailing 249
Types of Retailers 249
The New Retail Environment 250
Retailer Marketing Decisions 251
Private Labels 254
House Brands 254
The Private Label Threat 255
Wholesaling 255
Trends in Wholesaling 257
Strengthening Channel Relationships 257
Market Logistics 257
Integrated Logistics Systems 258
Market-Logistics Objectives 259
Market-Logistics Decisions 260
Market Logistics Lessons 262
Executive Summary 262
Notes 263
SimConnects for Chapter 14: 
 Retailers in PharmaSim (page) 
 The Role of Wholesalers in PharmaSim (page)
Part VI COMMUNICATING VALUE 265
15. Designing and Managing Integrated Marketing
Communications 265
The Role of Marketing Communications 266
The Changing Marketing Communications
Environment 266
Marketing Communications, Brand Equity,
and Sales 267
Communications Process Models 267
Contents xiii
Developing Effective Communications 268
Identify the Target Audience 270
Determine the Communications Objectives 270
Design the Communications 271
Select the Communications Channels 272
Establish the Total Marketing Communications
Budget 274
Deciding on the Marketing Communications Mix 275
Characteristics of the Marketing
Communications Mix 275
Factors in Setting the Marketing
Communications Mix 276
Measuring Communication Results 277
Managing the Integrated Marketing Communications
Process 277
Coordinating Media 278
Implementing IMC 278
Executive Summary 279
Notes 279
SimConnects for Chapter 15: 
 Marketing Communications Mix in PharmaSim (page) 
 Identifying the Target Audience (page)
 Role of the Advertising Agency in PharmaSim (page)
 Measuring Communications Results (page)
 Establishing the Total Marketing Communications Budget (page) 
16. Managing Mass Communications 282
Developing and Managing an Advertising Program 283
Setting the Objectives 283
Deciding on the Advertising Budget 284
Developing the Advertising Campaign 284
Deciding on Media and Measuring
Effectiveness 285
Sales Promotion 289
Sales Promotion Objectives 289
Advertising versus Promotion 290
Major Decisions 290
Events and Experiences 293
Events Objectives 293
Major Sponsorship Decisions 294
Creating Experiences 294
Public Relations 295
Marketing Public Relations 295
Major Decisions in Marketing PR 296
Executive Summary 297
Notes 297
SimConnects for Chapter 16: 
 Advertising Message Objectives in PharmaSim (page) 
 Setting the Advertising Budget (page)
 Consumer Promotion Tools (page)
 Trade Promotion Tools (page)
 Share of Voice (page) 
xiv Contents
17. Managing Personal Communications 302
Direct Marketing 303
The Benefits of Direct Marketing 303
Direct Mail 303
Catalog Marketing 304
Telemarketing 304
Other Media for Direct-Response Marketing 305
Public and Ethical Issues in Direct Marketing 305
Interactive Marketing 305
Word-of-Mouth 308
Buzz and Viral Marketing 308
Opinion Leaders 308
Blogs 310
Measuring the Effects of Word-of-Mouth 311
Personal Selling and the Sales Force 311
Personal Selling and Relationship Marketing 311
Designing the Sales Force 312
Sales Force Objectives and Strategy 313
Sales Force Structure 313
Sales Force Size 314
Sales Force Compensation 314
Managing the Sales Force 314
Recruiting and Selecting Sales Representatives 315
Training and Supervising Sales Representatives 315
Sales Rep Productivity 316
Motivating Sales Representatives 316
Evaluating Sales Representatives 317
Executive Summary 317
Notes 318
SimConnects for Chapter 17: 
 Managing the Sales Force in PharmaSim (page) 
Part VII CREATING SUCCESSFUL LONG-TERM GROWTH 323
18. Managing Marketing in the Global
Economy 323
Competing on a Global Basis 324
Deciding Whether to Go Abroad 325
Deciding Which Markets to Enter 325
Deciding How to Enter the Market 326
Deciding on the Marketing Program 327
Country-of-Origin Effects 328
Contents xv
Internal Marketing 329
Organizing the Marketing Department 329
Relations with Other Departments 331
Managing the Marketing Process 331
Evaluation and Control 331
The Marketing Audit 333
Socially Responsible Marketing 334
Ethical, Legal, and Social Responsibility Behavior 334
Cause-Related Marketing 334
Sustainability 335
Executive Summary 335
Notes 336
SimConnects for Chapter 18: 
 Global Considerations in PharmaSim (page) 
 Evaluation and Control in PharmaSim (page)

Library of Congress Subject Headings for this publication:

Marketing -- Management.