Essence, goals, basic principles and functions of marketing. Kotler F

Philip Kotler, Gary Armstrong, Veronica Wong, John Saunders
Marketing Basics
The authors examine key marketing concepts from a new perspective. Reflecting the latest trends in our changing world, the authors place great emphasis on balanced marketing that takes into account the needs of consumers and long-term ...

Philip Kotler
Fundamentals of Marketing. Short course
Marketing is one of the foundational disciplines for market professionals such as salespeople, retailers, advertisers, marketing researchers, new and branded product managers, and the like. They need to know how to describe the market ...

Chapter 5
Consumer Markets I Consumer Buying Behavior
Purchasing behavior model. Buyer characteristics. Purchase decision making process. Various options for making a decision to purchase a new product. Summary. Basic concepts found in the chapter.

Goals
After reading this chapter, you should be able to:

1. Explain the relationship between marketing incentives and consumer responses.

2. Name four main factors influencing consumer buying behavior.

3. List the steps in the consumer purchasing decision process.

4. Describe the process of consumer perception of new products.

"Corfam" by "DuPont" -
costly commodity failure

The giant DuPont corporation, headquartered in Wilmington, Delaware, was confident that its new faux leather Corfam for men's and women's shoes would be a success. DuPont began looking for a substitute back in the 1930s, realizing that one day natural leather would become scarce. In 1955, the company's scientists successfully synthesized a material called "korfam" and which possessed the necessary properties of raw hides: permeability, strength, elasticity and durability. In 1958, a special pilot plant was built for the production of this material with the aim of evaluating it by consumers. The novelty met with enthusiastic reception from consumers, and in 1959 DuPont built a more powerful plant, which began production of Corfam in 1961. In total, the corporation invested $ 25 million in the project.

17 leading companies in women's footwear and 15 leading companies in men's shoes were selected and agreed to buy from DuPont. new material and use it in the manufacture of elegant shoes. Realizing that Corfam has certain advantages over natural leather, such as higher durability and ease of care, DuPont set a high price for the novelty. The material had to be used in the manufacture of expensive shoes so that consumers could gain confidence in its high quality. DuPont intended to enter the inexpensive footwear market with Corfam later.

Corfam products were first introduced at the 1963 National Shoe Fair, and many shoe retailers have issued orders for them. DuPont has formed a dedicated trade assistance team. The members of the brigade were supposed to visit large shoe stores and teach the sellers to sell Korfam shoes. At the same time, the firm created POS advertising, window dressing and nationwide advertising for Corfam, at an initial cost of $ 2 million.

DuPont was very pleased with the results. In 1964, consumers purchased 1 million pairs of Corfam shoes, in 1965 - 5 million, and in 1966 - 15 million pairs. But in 1967, sales of Korfam footwear began to decline. What happened?

The repeat purchase rate was alarmingly low. DuPont did not thoroughly analyze the consumer footwear market and the behavior of buyers of shoes, and did not take into account a number of nuances in a timely manner. For example:

3. "Corfam" was advertised as a material that does not stretch, which means that shoes made of it will always sit on the foot in the same way as it sat during the first fitting. However, many consumers did buy slightly shaking shoes in the hopes that they would spread.

4. Consumers chose, first of all, the style, not the material. They never developed an interest in "Corfam", keen enough to ask the seller to show them shoes made from this material.

5. "Korfam" would probably have been much more successful if it had been used to make cheap home shoes. Buyers of high-quality footwear were increasingly inclined to purchase fashionable leather shoes and boots imported from Italy and several other countries. In 1971, DuPont recognized the situation as hopeless and decided to discontinue the production of Korfam footwear. This one of the most expensive commodity failures in history caused DuPont in losses of $ 100 million.1

The story of Dupont's Corfam suggests that there are many factors that influence how people make decisions about what to buy. Shopping behavior is never easy. And nevertheless, understanding it is an extremely important task for managing a marketing service within the framework of the marketing concept.

This chapter will take a closer look at the dynamics of the consumer market.

Consumer market - individuals and households who buy or otherwise acquire goods and services for personal consumption.

In 1981, the American consumer market included 230 million people who annually consumed goods and services totaling about $ 1.8 trillion. dollars, i.e. $ 7,826 per man, woman and child. Every year this market grows in size by several million people, and its turnover - by more than $ 100 billion. It is one of the most profitable consumer markets in the world2.

Consumers differ sharply from each other in age, income and education levels, relocation propensity and tastes. Market actors have found it useful to isolate different groups of consumers and create goods and services specifically designed to meet the needs of these groups. If the market segment is large enough, some firms may develop separate marketing programs to serve that segment as well. Here are just two examples of segregated consumer groups.

Negro consumers. Twenty-eight million black Americans with combined personal incomes of over $ 100 billion are an important consumer group. According to some researchers, blacks spend proportionately more whites on clothing, personal care, household items, alcohol and tobacco, and proportionally less on health care, food, transportation, education and utilities. Blacks to a lesser extent than whites are engaged in "looking for" purchases and more often are regular customers of the shops closest to the place of residence and shops with discount prices.

Blacks listen to the radio more than whites, although they are less inclined to listen to VHF stations. Some firms are developing special marketing programs for these consumers. They advertise in Ebony and Jet magazines, attract black performers to participate in commercials, create clearly excellent products (for example, black cosmetics), packaging, and develop special argumentation. At the same time, these firms recognize that there are several sub-segments within the black market, each of which may require a separate marketing approach.

Adult young consumers. This market includes 30 million people between the ages of 18 and 24. The young adult consumer market is divided into three subgroups: college students, young singles, and newlyweds. Young adult consumers spend disproportionately on books, phonograph records, stereo equipment, cameras, fashionable clothes, hair dryers, personal care products and toiletries. They are characterized by a weak degree of brand loyalty and an increased interest in new products. Young adults are an attractive market for several reasons: 1) they are receptive to the idea of ​​trying out new products; 2) are more inclined to spend than to save money; 3) will act as buyers for longer 4.

Similarly, other submarkets - seniors5, women6, Hispanic Americans7 - can be explored to see if it makes sense (from a competitive standpoint) to develop targeted marketing programs for each.

1. Buying behavior model

2. Buyer characteristics

Consumers don't make their decisions in a vacuum. For the purchases they make big influence factors of a cultural, social, personal and psychological nature (see Fig. 32). For the most part, these are factors that cannot be controlled by market actors. But they must be taken into account. Let's take a look at the impact each of them has on customer behavior using the hypothetical consumer Betty Smith as an example.

Betty Smith is a college graduate and married with a branded product manager at one of the leading consumer packaged goods firms. At the moment, she is busy looking for a new activity in her free time, an activity that would contrast with the usual work atmosphere. This need prompted Betty to buy a camera to take photographs. How she searches for a camera and how she chooses a particular brand of camera depends on many factors.

Rice. 32. Factors influencing purchasing behavior

3. Cultural factors

Cultural factors have the greatest and deepest influence on consumer behavior. Consider the role of culture, subculture and social status buyer. CULTURE. Culture is the main root cause that determines the needs and behavior of a person. Human behavior is basically an acquired thing. The child learns a basic set of values, perceptions, preferences, manners and actions, characteristic of his family and the basic institutions of society. Thus, a child growing up in America meets or encounters the following value concepts: achievement and success, activity, efficiency and practicality, movement forward, material comfort, individualism, freedom, external comfort, philanthropy, youthfulness8.

Betty Smith's interest in cameras is the result of her upbringing in modern society, with her achievements in photography and the accompanying consumer skills and set of associated values. Betty knows what cameras are. She knows how to figure out the instructions for using them, and her public environment has already embraced the idea of ​​women photographers. Within the framework of a different cultural structure, for example, in a tribe lost in the wilderness of central Australia, a camera may mean nothing at all, but simply be a "curious thing."

SUBCULTURE. Any culture includes smaller components, or subcultures, which provide its members with the possibility of more specific identification and communication with their own kind. In large communities, there are groups of people of the same nationality, say Irish, Poles, Italians or Puerto Ricans, with distinct ethnic tastes and interests. Separate subcultures with their specific preferences and prohibitions represent religious groups, such as groups of Catholics, Mormons, Presbyterians, Jews. Distinct cultural inclinations and attitudes characterize racial groups, say blacks and natives of the East. Geographic regions, such as the states of the Far South, California, and the states of New England, have their own distinct from other subcultures with their own specific way of life. Box 10 provides some examples of the influence of geographic location on product choices.

Betty Smith's interest in various products will undoubtedly be influenced by her nationality, race, religion and geographic environment. These factors will influence her food choices, clothing, leisure and entertainment choices, and career goals. The subculture to which she belongs will also affect her interest in cameras. Photography has different meanings in different subcultures, and this can also have an impact on Betty's interest.

SOCIAL STATUS. In almost every society there are different social classes, which we define as follows:

Social classes are relatively stable groups within a society, arranged in a hierarchical order and characterized by the presence of similar values, interests and behavior among their members.

Sociologists distinguish six social classes in the United States, presented in table. 7.

Table 8
Stages life cycle and family buying behavior

OCCUPATION. A certain influence on the nature of goods and services acquired by a person is exerted by his occupation. A worker can buy work clothes, work shoes, lunch boxes, bowling accessories. The president of the firm can buy himself expensive blue serge suits, travel by plane, join privileged country clubs, buy himself a large sailboat. The market worker seeks to single out such groups by occupation, the members of which show an increased interest in his goods and services. The firm may even specialize in the production of goods needed by a particular professional group.

ECONOMIC SITUATION. The economic position of an individual has an enormous effect on his choice of goods. It is determined by the size of the expenditure side of income, the size of savings and assets, creditworthiness and views on spending as opposed to accumulating them. So, if Betty Smith has a large enough expenditure part of her income and savings, is creditworthy and prefers to spend rather than accumulate, she may think about purchasing an expensive Nikon camera. Market operators offering products whose distribution depends on the level of consumer income must constantly monitor trends in changes in the area of ​​personal income, savings and interest rates. If economic indicators indicate a downturn, the market actor must take action to change the design, positioning and price of his product, reduce production and inventory, and do whatever is necessary to protect himself financially.

LIFESTYLE. Individuals belonging to the same subculture, the same social class, and even the same occupation can lead completely different lifestyles. Betty Smith, for example, may choose the life of a skilled housewife, a business woman, or a freewheeling person. She plays several roles, and the way she combines them is the outer side of her lifestyle. If she becomes a professional photographer, it will further affect her lifestyle.

Lifestyle ¾ established forms of a person's existence in the world, which find their expression in his activities, interests and beliefs.

Lifestyle paints a “comprehensive portrait” of a person in their interaction with the environment. It manifests itself more than the fact of belonging to a certain social class or type of personality. Knowing that a person belongs to a particular social class, we are ready to draw certain conclusions about his intended behavior, but we will not be able to imagine him as an individual. Knowing a person's personality type, we can draw certain conclusions about his distinctive psychological characteristics, but we are unlikely to learn much about his activities, interests and beliefs. And only a way of life will draw us an exhaustive portrait of a person in his actions and interaction with the world around him.

When developing a marketing strategy for a product, a market actor will seek to uncover the relationship between a conventional or branded product and a particular lifestyle. A yoghurt maker may find that there are many well-to-do men in the liberal professions among the active consumers of his drink. By finding out this, he will be able to more clearly target his branded product precisely to these people.

TYPE OF PERSONALITY AND ITSELF. Each person has a very specific personality type that influences his buying behavior.

Personality type is a set of distinctive psychological characteristics of a person that ensure the relative consistency and consistency of his responses to the environment.

The personality type is usually described on the basis of such inherent characteristics of the individual as:

self confidence,

influence,

independence,

impermanence

respectfulness,

lust for power,

sociability,

alertness,

attachment,

aggressiveness,

consistency,

striving for success,

love of order

adaptability 12.

Knowledge of the personality type can be useful in the analysis of consumer behavior, when there is a certain connection between personality types and the choice of goods or brands. For example, a beer company may find that many active beer consumers are outgoing and aggressive. And this leads to the idea of ​​a possible image of her brand of beer and the types of characters for use in advertising.

Many people involved in marketing proceed in their activities from a concept that is directly related to the person, ¾ a person's idea of ​​himself (also referred to as the image of his own "I"). We all have a complex mental image of ourselves. For example, Betty Smith may appear to be an extrovert, creative and active person. Based on this, she will prefer to opt for a camera in which the same qualities are focused. And if Nikon is advertised as a camera for those oriented towards the outside world, creative and active people, the image of the brand coincides with the image of Betty's own self. Market actors should strive to create an image of the world that matches the self-image of members of the target market 13.
6. Factors of a psychological nature

An individual's buying choices are also influenced by four basic psychological factors: motivation, perception, learning, beliefs, and attitudes.

MOTIVATION. We know that Betty Smith is interested in buying a camera. But why? What is she really looking for? What need is it trying to satisfy?

At any given time, a person experiences many different needs. Some of them are biogenic, i.e. are the consequences of such states of internal physiological tension as hunger, thirst, discomfort. Others are psychogenic, i.e. are the results of such states of internal psychological tension as the need for recognition, respect, spiritual closeness. Most of these needs are not intense enough to motivate a person to take action at any given time. A need that has reached a sufficiently high level of intensity becomes a motive.

Motive (or urge) is a need that has become so urgent that it makes a person look for ways and means of satisfying it.

Satisfaction of the need reduces the internal tension experienced by the individual.

Psychologists have developed a number of theories of human motivation. The most popular of these ¾ the theory of Sigmund Freud and the theory of Abraham Maslow ¾ offer very different implications for consumer research and marketing activities.

Freud's theory of motivation. Freud believed that people are basically not aware of those real psychological forces that shape their behavior, that a person grows, while suppressing many drives in himself. These drives never completely disappear and are never completely under control. They manifest themselves in dreams, slips of the tongue, neurotic behavior, obsessions and, ultimately, psychosis, in which the human ego is unable to balance the powerful impulses of its own id with the oppression of the super-ego.

Thus, a person is not fully aware of the origins of his own motivation. If Betty Smith wants to buy an expensive camera, she may describe her motive as wanting to fulfill her hobby or career needs. If you take a deeper look, it may turn out that by purchasing such a camera, she wants to impress others with her creativity. And if you look even deeper, she may be buying a camera to feel young and independent again.

When studying the camera, Betty will react not only to its operational properties, but also to other minor irritants. The shape of the camera, its dimensions, weight, material from which it is made, color, case ¾ all this evokes certain emotions. A camera that looks solid and reliable can make Betty feel independent, which she can either handle or try to avoid. When developing a camera design, the manufacturer must be aware of the impact of its appearance and textures for arousing emotions in the consumer, which are able to either facilitate or hinder the purchase.

Motivation researchers have made a number of interesting and sometimes bizarre conclusions about what can influence the consumer's mind when making certain purchases. Thus, they believe that:

Consumers are reluctant to buy prunes because they are shriveled and look like old people.

Men smoke cigars as an adult alternative to thumb sucking. They like cigars with a strong, masculine scent.

Women prefer vegetable fats to animal fats, which make them feel guilty about slaughtered animals.

The woman is very serious about the process of baking cupcakes, because for her it is subconsciously associated with the process of childbirth. She doesn't like easy-to-use muffin mixes, as the easy life awakens guilt.

Maslow's theory of motivation. Abraham Maslow tried to explain why at different times people are driven by different needs14. Why does one person spend a lot of time and energy on self-preservation, and another on gaining the respect of others? The scientist believes that human needs are ranked in order of hierarchical importance from most to least urgent. The hierarchy developed by Maslow is shown in Fig. 33. According to the degree of importance, the needs are arranged in the following order: physiological needs, needs for self-preservation, social needs, needs for respect and needs for self-affirmation. The person will strive to satisfy the most important needs first. As soon as he manages to satisfy some important need, it ceases to be a driving motive for a while. At the same time, an impulse appears to satisfy the next most important need.

For example, a starving person (need No. 1) is not interested in the events taking place in the art world (need No. 5), or how they look at him and to what extent others respect him (needs No. 3 and No. 4), whether he breathes air (need no. 2). But as the next most important need is satisfied, the next one comes to the fore.

What light does Maslow's theory shed on Betty Smith's interest in a camera? You can guess that Betty has already met her physiological needs, self-preservation needs and social needs that do not motivate her interest in cameras. And an interest in a camera can stem from either a strong need for respect from others or a need for self-esteem. Betty wants to realize her creativity and express herself through photography.

Rice. 33. Maslow's hierarchy of needs

PERCEPTION. A motivated person is ready for action. The nature of his action depends on how he (or she) perceives the situation. Two different people, being equally motivated, in the same objective situation can act differently, because they perceive this situation differently. Betty Smith may perceive a talkative camera seller as being aggressive and insincere. And to some other buyer, the same seller may seem clever and helpful.

Why do people perceive the same situation differently? We all cognize the stimulus through sensations, i.e. through the flow of information that affects our five senses: sight, hearing, smell, touch and taste. However, each of us organizes and interprets this sensory information in his own way.

Perception can be defined as “the process by which an individual selects, organizes and interprets incoming information to create a meaningful picture of the world around him” 15.

Perception depends not only on the nature of physical stimuli, but also on the relationship of these stimuli to the environment and the individual.

People can differ in different reactions to the same stimulus due to selective perception, selective distortion and selective memorization.

Selective perception. Every day, people are faced with a huge number of irritants. So, the average person can come into contact with more than 1,500 advertisements during the day in one way or another. The individual is simply unable to respond to all these stimuli. He eliminates most of them. The main difficulty lies in explaining which stimuli will be noticed.

I. People are more likely to notice stimuli associated with their current needs. Betty Smith will notice all sorts of camera ads because she is interested in buying a camera. But she probably won't notice advertisements for stereo equipment.

2. People are more likely to notice the stimuli that they expect. At a photography store, Betty Smith would rather look at cameras than radios next to her, as she hadn't expected the store to sell radios as well.

3. People are more likely to notice stimuli that are sharply different in some of their meanings from the usual. And Betty Smith is more likely to notice an ad offering a Nikon camera at a $ 100 discount off the list price than an ad offering a $ 5 discount.

Selective perception means that market makers must make special efforts to grab the attention of consumers. After all, their appeal will pass by the majority of those who are not currently looking for this subject of advertising on the market. But even seekers may not notice the appeal if it does not stand out from the surrounding sea of ​​stimuli. Advertisements they notice more if they are larger in size, if they are in color, while most of the rest are black and white, if they are presented in a new way and contrast with the rest.

Selective distortion. Even irritants noticed by the consumer are not necessarily perceived by him as intended by the sender. Each person seeks to fit the incoming information into the framework of his existing opinions. Selective bias refers to the tendency of people to transform information, giving it personal value. So, Betty Smith may hear a seller mentioning the positive or negative features of a competing brand's camera. And since she is already strongly predisposed to Nikon, she will most likely distort what she has heard in order to once again draw a conclusion for herself about the superiority of Nikon. People tend to interpret information in such a way that it supports, rather than challenges, their established ideas and judgments.

Selective memorization. Much of what he learns, a person simply forgets. He tends to remember only information that supports his attitudes and beliefs. Due to her selective memorization, Betty is likely to remember favorable reviews about Nikon and forget about favorable reviews from competing cameras. And she will remember these reviews because most often she “cramps” them, thinking about choosing a camera.

The presence of these three features ¾ selectivity of perception, distortion and memorization ¾ means that market leaders need to make a lot of effort to bring their message to the addressees. This explains why firms use so much dramatization and repetition when sending their messages to the markets.

ASSIGNMENT. A person assimilates knowledge in the process of activity.

Assimilation is certain changes that occur in the behavior of an individual under the influence of the experience he has accumulated.

Human behavior is mainly acquired, i.e. learned. Theorists consider assimilation to be the result of the interaction of impulses, strong and weak stimuli, responses, and reinforcement.

We know that Betty Smith has a strong urge to assert herself. By motivation, we mean a strong internal stimulus that prompts you to take an action. Being directed at a specific object ¾ a stimulus capable of relieving emotional tension (in our case, it is a camera), the urge turns into a motive. Betty's response to the idea of ​​buying a camera is driven by a number of accompanying minor stimuli. They determine when, where and how the individual's response is manifested. The sight of cameras in a shop window, rumors of a bargain sale price, encouragement from her husband are all minor annoyances that influence Betty's response to the impulse to buy a camera.

Let's say Betty bought a camera. If her experience rewards her expectations, she is likely to use her camera more and more. Her reaction to the camera will receive reinforcements.

Later, Betty may want to buy binoculars. Several brands are in her field of vision, including the Nikon binoculars. Since Betty knows that Nikon makes good cameras, she concludes that the company makes good binoculars. She generalizes by extending her previous response to a new set of similar stimuli.

The opposite of the generalization process is the differentiation process. After getting acquainted with the binoculars of the "Olympus" company, Betty finds out that they are lighter and more compact than the "Nikon" binoculars. Establishing differences means that she has learned to recognize differences in sets of stimuli and can make appropriate changes in her response.

BELIEFS AND ATTITUDES. Through action and learning, a person acquires beliefs and attitudes. And they, in turn, influence his purchasing behavior.

Betty Smith may be convinced that Nikon can get great pictures, can handle tough conditions and costs $ 550. These beliefs can be based on real knowledge, opinion, or simply faith. They may or may not be accompanied by an emotional charge. For example, Betty Smith's belief that the Nikon is heavy may or may not affect her buying judgment.

Manufacturers are naturally very interested in people's beliefs about specific products and services. From these beliefs, images of goods and brands are formed. Based on these beliefs, people take action. If any beliefs are incorrect and interfere with the purchase, the manufacturer will need to conduct an appropriate campaign to correct them.

Almost everything in the world - religion, politics, clothing, music, food, etc. ¾ a person has his own attitude.

Attitude ¾ a stable favorable or unfavorable assessment by an individual of an object or idea, the feelings experienced towards them and the direction of possible actions, formed on the basis of available knowledge.

Relationships cause people to be willing to love or not love an object, to feel approaching or moving away from it. For example, Betty may develop relationships such as “Buy only the best,” “The Japanese make the world's best goods,” and “The most important thing in life is creativity and self-expression.” That is why the Nikon camera is important for her. After all, he fits well into the framework of her pre-existing relationship. A firm can benefit greatly from researching the various relationships that affect the marketing of its product.

Relationships allow an individual to behave relatively stably in relation to similar objects. A person does not have to re-interpret something and react in a new way every time. Relationships save physical and mental energy. This is why they are difficult to change. Various relationships of an individual form a logically coherent structure in which a change in one element may require complex restructuring of a number of others.

So it will be more profitable for the firm to bring its products into the framework of existing relationships than to try to change them. There are, of course, exceptions where the huge investment in relationship change efforts can pay off handsomely.

When Honda entered the American motorcycle market, it had a big decision to make. She could either sell her motorcycles to a small circle of already existing amateurs, or try to increase their number. The latter route was associated with high costs, as many experienced a negative attitude towards motorcycles. In the minds of these people, motorcycles were associated with black leather jackets, spring knives, and crime. And yet Honda chose the second path, launching a powerful campaign under the motto "The finest people ride Honda motorcycles." The campaign worked, and many changed their attitude towards motorcycles.

We are now in a position to assess the many forces that influence consumer behavior. An individual's choice is the result of a complex interplay of cultural, social, personal and psychological factors. Many of these factors are not influenced by the market actor. However, they turn out to be useful in identifying buyers with an increased interest in a product. Other factors lend themselves to the influence of the market actor and tell him how to develop and evaluate the product, establish its distribution and sales promotion, in order to elicit the strongest consumer response.

7. Purchase decision making process

Now we are ready to consider the stages that the buyer goes through on the way to making a purchase decision and making it. In fig. 34 shows the five stages through which the consumer goes: awareness of the problem, search for information, evaluation of options, decision to purchase, reaction to purchase. It follows from this model that the purchase process begins long before the act of sale and purchase, and its consequences appear long after the act of sale. The model directs the market actor to pay attention to the process as a whole, and not just to the decision-making stage18.

Rice. 34. Purchase decision making process

Based on the model, the consumer goes through all five stages with any purchase. However, when making everyday purchases, he skips some steps or changes their sequence. So, a woman who acquires a familiar brand of toothpaste, after realizing the problem, immediately makes a purchase decision, skipping the stages of collecting information and evaluating options. However, you and I will still operate with the complete model shown in Fig. 34, because it reflects all the considerations that arise when a consumer is faced with a new situation for himself, especially if there are many problems to be solved.

We will follow the actions of Betty Smith and try to understand how she got interested in buying an expensive camera and what stages she went through before the final choice.

8. Awareness of the problem

The buying process begins with the customer recognizing the problem or need. He feels the difference between his real and desired state. Need can be aroused by internal stimuli. One of the ordinary human needs ¾ hunger, thirst, sex ¾ rises to a threshold level and turns into urge. From past experience, a person knows how to cope with this urge, and his motivation is oriented towards the class of objects that are able to satisfy the arisen urge.

The need can be aroused by external stimuli. A woman walks past a bakery, and the sight of freshly baked bread makes her feel hungry. She admires a neighbor's new car or watches a TV commercial for a vacation in Jamaica. All this can lead her to awareness of a problem or need.

At this stage, the market actor needs to identify the circumstances that usually push a person to realize the problem. It is necessary to find out: a) what tangible needs or problems have arisen, b) what caused them to arise, c) how they brought a person to a specific product.

Betty Smith may reply that she felt the need for a new hobby. It happened during a period of "lull" at work, and she began to think about the camera after one of her friends told her about photography. By collecting such information, the market actor is able to identify irritants that more often than others attract the individual's interest in the product. Then you can develop marketing plans using the identified stimuli.

9. Finding information

An agitated consumer may or may not be looking. additional information... If the motivation is strong and the product that satisfies it is readily available, the consumer is more likely to make a purchase. If not, then the need may simply be stored in his memory. In this case, the consumer can either stop looking for information, or search a little more, or engage in active searches.

Rice. 35. The sequence of kits involved in the purchasing decision

In a practical sense, the firm must develop a marketing mix that incorporates its brand into both the awareness kit and the consumer choice kit. If the brand fails to penetrate these kits, the firm will miss the opportunity to sell its product. It is also necessary to find out what other brands are in the selection kit in order to know your competitors and develop the appropriate argumentation.

With regard to the sources of information used by consumers, the market operator must carefully identify them and then determine their comparative information value. Consumers should first of all ask how they first heard about the brand, what other information they have, what value they attach to each of the information sources used. Such information will be critical in developing effective communication with the target market.

10. Evaluation of options

We already know that the consumer uses information in order to compose a set of brands for himself, from which the final choice is made. The question is how exactly the choice is made among several alternative brands, how the consumer evaluates the information.

A few basic concepts can help shed light on evaluating options. First, there is the concept of the properties of a product. We believe that every consumer considers any given product as a certain set of properties. Here are some properties of interest to buyers in a number of well-known classes of goods:

Rice. 36. Factors constraining the transformation of the intention to make a purchase into a decision about it

The first factor is the attitudes of other people. Suppose Betty Smith's husband insists that she buy the cheapest camera to save money. As a result, the likelihood of purchasing the more expensive of Betty's chosen cameras will be slightly reduced. The degree of change depends on two factors: 1) the intensity of the negative attitude of the other person towards the preferred option of the consumer and 2) the consumer's willingness to accept the wishes of the other person23. The sharper the negative or positive attitude of another person and the closer this person is to the consumer, the more decisively he will reconsider his intention to make a purchase in one direction or another.

11. Reaction to a purchase

Having bought a product, the consumer will be either satisfied or dissatisfied with it. He will show a number of buy reactions that are of interest to a market actor. The marketing job does not end with the purchase, but continues into the aftermarket.

PURCHASE SATISFACTION. What determines the degree of customer satisfaction or dissatisfaction with the purchase? The answer lies in the relationship between consumer expectations and perceived product performance24. If the product meets the expectations, the consumer is satisfied, if it exceeds them ¾ the consumer is very satisfied, if it does not meet them ¾ the consumer is dissatisfied.

Consumer expectations are shaped by information they receive from sellers, friends, and other sources. If the seller exaggerates the performance of the product, the consumer will have too high expectations, which will result in disappointment. The wider the gap between expected and actual performance, the more acute consumer dissatisfaction.

It follows that the seller must make statements in favor of the product that would reliably reflect its likely performance properties. Some sellers may even underestimate these properties to some extent so that the consumer can get more than expected satisfaction from the product.

ACTIONS AFTER PURCHASE. Satisfaction or dissatisfaction with the product will affect the subsequent behavior of the consumer. If satisfied, he will probably buy the product at the next opportunity. In addition, a satisfied consumer tends to share favorable product reviews with others. To use the words of market leaders: "Our best advertisement is a satisfied client."

An unsatisfied consumer reacts differently. He may refuse to use the product, return it to the seller, or try to find some favorable information about the subject of the purchase. In Betty Smith's case, she can either return the camera or try to find information that will elevate the purchased camera in her eyes.

Disgruntled consumers have a choice of action or inaction. They may file a complaint with the firm, contact a lawyer, or some group that may be able to help the buyer achieve satisfaction. In addition, he may simply stop purchasing this product in the future and / or express his unfavorable impression of him to friends and others. In all these cases, the seller who fails to satisfy the customer loses something.

THE FINAL FATE OF THE PURCHASED GOODS. In the behavior of the buyer after the purchase, the market agent should be interested in one more step, namely: what the consumer will ultimately do with his product? The main directions of possible actions are shown in Fig. 37. If the consumer adapts the product for use for some new purposes, the seller should be interested, since these goals can be played up in advertising. If consumers put away a product, hardly use it, or get rid of it, this means that the product is not very satisfying to them and that the favorable word of mouth will not be very active. Equally interesting is how the consumer will eventually get rid of the product. If he sells it or makes a bargain with it, it will reduce the sales of new products. With all this in mind, the salesperson needs to study how the product is used and how it is disposed of in order to find answers to potential problems and opportunities.

Understanding the needs of the consumer and the buying process is the foundation of successful marketing. By figuring out how consumers navigate the stages of problem awareness, information seeking, evaluating options, and making a purchase decision, and how they respond to a purchase, a market maker can gather a wealth of information about how best to meet the needs of their customers. By understanding the various actors involved in the buying process and understanding what has a major influence on their buying behavior, the market actor can develop an effective marketing program to support his attractive offer to the target market.

Rice. 37. How consumers use or dispose of a product

Box 12. What makes a restaurant successful?

When you open a restaurant, you probably want to attract as many visitors as possible. Along with the development of the menu, your main concerns will inevitably be the problems of the location of the institution and the level of prices. It can be assumed, that the best place will be as close as possible to potential customers, and the lowest prices will attract the largest number of visitors. A psychologist recently conducted a study to find out how people choose restaurants.

Contrary to possible expectations, people dining out tend to stop at restaurants that have to be reached after all. For example, residents of the northwestern part of New York are confident that the best restaurants are located in the central part of the city, in Greenwich Village. Many Greenwich Village residents believe that the best food is served in restaurants in the northeastern part of the city. And residents of the northeastern part often prefer to dine in restaurants in the northwestern part of the city. Residents of cities in different parts of the country, such as Miami, Dallas and Los Angeles, unanimously declare that the best restaurants are not in their cities, but somewhere else.

The location turns out to be important from another point of view. As soon as a restaurant becomes popular, people begin to believe that other establishments in the neighborhood should be good too. So nearby restaurants benefit from the successes of their neighbors.

The study also touched on the question of how people choose restaurants when they go somewhere on a completely different business. In particular, special attention was focused on theater goers, who often dine outside the home before a performance. In such situations, the most important factor in determining the choice of a restaurant was the price. Contrary to conventional wisdom, the most attractive restaurants for theatergoers were restaurants not with high or low prices, but with moderate mid-level prices. This category of visitors prefers to avoid high-priced restaurants for fear that the meal will be too difficult or the dinner will be too plentiful, and as a result, they may be late for the theater or fall asleep during the performance. A restaurant with low prices, according to theatergoers, can ruin their mood for the whole evening. And so in order to be economical after buying expensive tickets, to eat well without overeating, and to stay in high spirits, they go to a restaurant with reasonable prices. The location of the restaurant is also important for theater-goers. As they worry all the time about being late for the show, the proximity to the theater makes the restaurant a preferable choice.

The influence of the location of the restaurant and the level of its prices does not always affect directly. Some remoteness can even play into the hands of the restaurant in those cases when lunch should be the main event of the evening, or, conversely, play against the restaurant when food simply precedes some other activity. Low prices can turn out to be a negative factor in the case when they seem to belittle the joyful uplifting of the event. Depending on the circumstances, people are guided by different considerations when deciding whether or not to become regular customers of a particular restaurant.

12. Various options for making a decision to purchase a new product

Now we will look at how buyers approach the purchase of new products. By "novelty" we mean a product, service or idea that some potential customers perceive as something new. A new product may have been on the market for some time, but we are interested in how consumers first learn about it and decide whether or not to perceive it. In this case, we understand by perception “the thought process through which an individual goes from the moment he first hears about a novelty to the moment of its final acceptance” 25. We define perception as an individual's decision to become a regular user of a product.

13. Stages of the process of perception

The process of perceiving a new product consists of five stages:

1. Awareness. The consumer learns about the new product, but does not have sufficient information about it.

2. Interest. The consumer is motivated to search for information and novelty.

3. Evaluation. The consumer decides whether it makes sense to try out the novelty.

4. Sample. The consumer will test the novelty on a small scale to gain a more complete picture of its value.

5. Perception. The consumer decides to regularly and fully use the novelty.

It follows from all this that the proposer of a novelty must think about how to lead people from stage to stage. An electric dishwasher manufacturer can determine that many consumers are in the stage of interest without moving on to the next because of hesitation and high cost unit. However, those same consumers will be willing to test the car for a small fee. The manufacturer should provide a plan for testing the machine with the subsequent possibility of purchasing it at the request of the consumer.

Individual differences between people

in readiness to perceive innovations

People differ markedly from each other in their willingness to try out new products. Susceptibility to new things is "the degree of an individual's comparative outstripping of other members of his social system in the perception of new ideas." Each product area will have its own pioneers and early adopters. Some women are the first to embrace new fashions in clothing or new household appliances such as microwave ovens. Some doctors are the first to start prescribing new drugs26, while some farmers are the first to adopt new agricultural practices27.

Other people perceive new items much later. All this made it possible to classify people according to the degree of their susceptibility (see Fig. 38). After a slow start, more and more people begin to perceive the novelty. Over time, their number reaches a peak, and then the percentage begins to decrease as the number of those who have not yet accepted the product decreases. The first 2.5% of buyers are considered innovators, the next 13.5% are considered early adopters, etc.

Rice. 38. Categories of consumers by time

their perception of new products

Rogers sees differences between the individuals who make up these five groups. Innovators are risk averse. They will try out new items with a little risk. Early adopters are opinion leaders in their midst and embrace new ideas quite early, albeit with caution. The early majority are cautious people. They perceive innovations earlier than the average resident, but they are rarely leaders. The belated majority are skeptical. These people perceive a novelty only after the majority has already tried it. Finally, the laggards are people bound by tradition. They are suspicious of change, communicate with other adherents of tradition and accept a novelty only because it has already become a tradition to some extent.

14. The role of personal influence

Personal influence plays an important role in the process of perception of new products. Personal influence refers to the effect one person makes about a product on another person's relationship or likelihood of making a purchase. Katz and Lazarfeld write:

About half of the women in our sample reported that they have recently partially switched from their usual regular or branded product to using something new. The fact that one-third of these changes were about personal influence suggests that marketing advice is common. Women ask each other's opinion about new products, about the quality of different brands, about savings when shopping, etc. 28

Although personal influence is an important factor in general, it takes on special significance in some situations and for some people. With regard to a novelty, personal influence is most significant at the evaluation stage. It makes a greater impression on later followers than on early ones. In situations of risk, it turns out to be more effective than in situations of harmlessness.

15. Influence of product characteristics on the rate of its perception

The nature of the innovation affects the pace of its perception. Some products gain popularity literally overnight (for example, Frisbees flying discs), others take a long time to do so (for example, diesel cars). The pace of perception of a novelty is especially influenced by its five characteristics. Let's consider them on the example of personal computers for use in everyday life.

The first characteristic of the novelty is its comparative advantage, i.e. the degree of its apparent superiority over existing goods. The higher the perceived benefits of using personal computers, for example, in calculating income taxes or maintaining financial records, the sooner those computers will be perceived.

The second characteristic of the novelty is compatibility, i.e. the degree of conformity with accepted consumer values ​​and consumer experience. Personal computers, for example, are perfectly compatible with the lifestyle of upper middle class families.

The third characteristic of the novelty is complexity, i.e. the degree of relative difficulty in understanding its essence and use. Personal computers are complex and therefore take a long time to penetrate the US domestic market.

The fourth characteristic of a novelty is the divisibility of the process of acquaintance with it, i.e. the possibility of testing it on a limited scale. If people have the opportunity to rent personal computers with the subsequent purchase option of their choice, the pace of perception will increase.

The fifth characteristic of the novelty is communication visibility, i.e. the degree of visibility or the ability to describe to others the results of its use. Since personal computers are amenable to demonstration and description, this will facilitate their faster distribution in society.

Other characteristics of a novelty that affect the rate of its perception are the initial price, current costs, the share of risk and uncertainty, scientific credibility and public approval. The seller of a new product should study all these factors, paying maximum attention to the key ones at the stages of developing both the newest product and its marketing program.

16. Summary

Before developing marketing plans, you need to understand the markets. In the consumer market, people buy goods and services for personal consumption. This market consists of many sub-markets, such as the sub-market for black consumers, the sub-market for young adults, and the sub-market for the elderly.

Buyer's behavior is influenced by four main groups of factors: cultural level factors (culture, subculture and social status), social order factors (reference groups, family, roles and statuses), personal factors (age and stage of the family life cycle, occupation, economic status, lifestyle, personality type and self-image) and psychological factors (motivation, perception, assimilation, beliefs and attitudes). They all provide insights into how to reach and serve a customer more efficiently.

Before planning its marketing, the firm needs to identify all target customers and determine how their purchasing decision process is going, which consists of the following stages: problem awareness, information search, evaluation of options, purchase decision, reaction to purchase. The task of the market leader is to understand the various participants in the buying process and to understand the main factors influencing the buying behavior. This understanding allows the market actor to create a meaningful and effective marketing program for his target market.

17. Questions for discussion

2. Tell us about the influence of cultural factors (culture, subculture and social status) on the consumer's choice of department stores for shopping.

3. Tell us about the levels of needs in Maslow's hierarchy that the following products are designed to meet: a) smoke detectors, b) automatic long distance telephone communications, c) insurance, and d) autogenous training.

4. A consumer who chooses a supermarket for everyday shopping is at the stage of evaluating options. What factors, in your opinion, will be especially important for most consumers when choosing a supermarket (name three factors in order of decreasing importance)?

5. When asked to develop a model of consumer behavior, what variables and / or relationships would you include in addition to those discussed in this chapter?

6. Match the steps in the buying decision making process with your recent purchase of a pair of boots.

7. For what purpose is the purchase response stage included in the buying process model? 18. Basic concepts found in chapter 5

Perception is the process by which an individual selects, organizes and interprets incoming information to create a meaningful picture of the world around him.

The motive is a need that has become so urgent that it makes a person look for ways and means of satisfying it.

Lifestyle - established forms of a person's existence in the world, which are expressed in his activities, interests and beliefs.

Social classes are relatively stable groups within a society, arranged in a hierarchical order and characterized by the presence of similar values, interests and behavior among their members.

Attitude - a stable favorable or unfavorable assessment by an individual of an object or idea, the feelings experienced towards them and the direction of possible actions, formed on the basis of existing knowledge.

Consumer market - individuals or households who buy or otherwise acquire goods and services for personal consumption.

Reference group - a group that has a direct (i.e., through personal contact) or indirect influence on the relationship or behavior of a person.

Personality type is a set of distinctive psychological characteristics of a person that ensure the relative consistency and constancy of his responses to the environment.

Belief is a mental characteristic of something by an individual.

Assimilation - certain changes occurring in the behavior of an individual under the influence of his accumulated experience.

In the psychic structure of personality, Z. Freud identified three components: the unconscious "id" (It) - the area of ​​drives, blind instincts; conscious "ego" (I) - perceiving information about the world around and the state of the organism, restraining the impulses "id", regulating the actions of the individual; "Super-ego" (superego) - area social norms and moral attitudes. - Approx. Ed.

Name: Marketing Basics - Short Course.

The first acquaintance with the theory of marketing for the majority of citizens of the former USSR began with Philip Kotler's book Fundamentals of Marketing, published by Progress Publishing House in 1990. The textbook turned out to be so timely and in demand that hundreds of thousands of pirated copies immediately appeared, published by enterprising businessmen from the publishing business. The book you are holding in your hands is the only legal edition of the beloved bestseller to date. This edition includes a new chapter on interactive marketing and new examples of the practical application of selected theoretical positions.

The book is intended for students of economic specialties, but will be of interest to a wide range of readers.

In today's complex world, we all need to understand marketing. When we sell a car, look for a job, raise funds for charity or promote an idea, we do marketing. We need to know what the market is, who operates on it, how it functions, what its needs are.
We need to understand marketing and our role as consumers and our role as citizens. Someone is constantly trying to sell us something, and we must be able to recognize the applied methods of selling. Knowledge of marketing allows us to behave more intelligently as consumers, whether it is buying toothpaste, frozen pizza, a personal computer or a new car.

CONTENT
Introduction 18
Chapter 1. The Social Basics of Marketing: Meeting Human Needs
What is Marketing 21
Needs 22
Needs 22
Inquiries 23
Products 23
Exchange 25
Trade 26
Market 27
Marketing 29
Marketing Management 30
Marketing Management Concepts 30
Manufacturing Improvement Concept 32
Product Improvement Concept 33
Business Intensification Concept 34
Marketing concept 35
Social Marketing Concept 36
Marketing System Objectives 39
Achieving the Highest Possible Consumption 42
Achieving Maximum Customer Satisfaction 42
Providing the widest possible choice 43
Maximizing Quality of Life 43
The Rapid Spread of the Marketing System 44
In the field of entrepreneurship 44
Internationally 45
In the field of non-profit activity 45
Summary 46
Discussion Questions 47
Basic concepts found in chapter 1 48
Chapter 2. Marketing management process 50
Market Opportunity Analysis 52
Identifying New Markets 53
Marketing Opportunity Assessment 55
Selecting target markets 58
Demand metering and forecasting 58
Market segmentation 59
Selection of target market segments 59
Product positioning on the market 61
Marketing mix development 63
Implementing Marketing Activities 65
Marketing planning system 65
Marketing Service Organization System 66
Marketing control system 72
Brief Review of Topic 72
Summary 73
Discussion Questions 75
Basic concepts found in chapter 2 75
Chapter 3. Marketing research and marketing information systems 77
Marketing Information System Concept 79
Internal reporting system 80
System for collecting external current marketing information 81
Marketing Research System 82
Scheme marketing research 86
Identifying problems and formulating research objectives 87
Selection of information sources 88
Summary 98
Discussion Questions 99
Basic concepts found in chapter 3 101
Chapter 4. Marketing environment 102
The main factors of the microenvironment for the functioning of the company 105
Firm 105
Suppliers 106
Marketing intermediaries 107
Clientele 108
Competitors 109
Contact Audiences 111
The main factors of the macroenvironment for the functioning of the company 114
Demographic environment 114
Economic environment 120
Natural environment 122
Scientific and technical environment 124
Political environment 127
Cultural environment 131
Summary 135
Discussion Questions 136
Basic Concepts Found in Chapter 4 137
Chapter 5. Consumer Markets and Consumer Buying Behavior 138
Buying Behavior Model 141
Customer characteristics 142
Cultural factors 143
Social factors 146
Personal factors 150
Factors of a psychological order 153
Purchase Decision Process 160
Awareness 161
Finding Information 161
Rating options 163
Purchase decision 165
Buy Reaction 165
Various options for making a decision to purchase a new product 167
Stages of the Perception Process 168
Individual differences of people in the readiness to perceive innovations 168
The Role of Personal Influence 170
Influence of product characteristics on the rate of its perception 171
Summary 171
Discussion Questions 172
Basic concepts found in chapter 5 173
Chapter 6. Enterprise Market and Organized Consumer Behavior 174
Industrial goods market 176
Who acts on the industrial goods market? 176
What purchasing decisions do industrial buyers make?
Who is involved in making purchasing decisions for industrial goods? 183
What is the main influence on buyers of industrial goods? 184
How exactly do industrial buyers make purchasing decisions? 186
Market for intermediaries 191
Who is in the reseller market? 191
What purchasing decisions do intermediaries make? 191
Who is involved in making decisions about purchasing goods for resale? 192
How exactly do intermediaries make procurement decisions? 192
Government institutions market 193
Who is on the market for government agencies? 193
What purchasing decisions do buyers make on behalf of government agencies?
Who is involved in making procurement decisions on behalf of government agencies? 194
What is the main influence on government procurement agencies? 195
How exactly do government agencies make procurement decisions? 195
Summary 197
Discussion Questions 198
Basic concepts found in chapter 6 199
Chapter 7. Market segmentation, selection of target segments and product positioning
Market segmentation 203
General Approach to Market Segmentation 203
Basic Principles for Segmenting Consumer Markets 205
Basic principles of segmentation of markets for industrial goods 217
Selecting target market segments 218
Three options for market coverage 219
Identifying the most attractive market segments 222
Product positioning on the market 224
CV 225
Discussion Questions 227
Basic Concepts Found in Chapter 7 227
Chapter 8. Product development: products, brands, packaging, services 229
What is commodity 231
Goods as intended, goods in real execution, goods with reinforcement 231
The main types of classification of goods 232
Durable goods, non-durable goods, services 233
Classification of consumer goods 234
Classification of industrial goods 236
Decisions on the use of stamps 238
Decisions regarding brand names 239
Decision on the owner of the brand 240
Decision on the quality of branded goods 242
Decision on nepotism 242
The decision to expand the boundaries of the use of stamp 245
The Multibrand Approach Decision 245
Packaging Decisions 246
Decisions regarding marking 248
Customer Service Solutions 251
Service Package Decision 251
Service Level Decision 252
Decision on the form of service 252
Customer Service Department 253
Product assortment decisions 253
Decision on the breadth of the product range 253
Nomenclature decisions 256
Summary 259
Discussion Questions 261
Basic Concepts Found in Chapter 8 262
Chapter 9. Product Development: New Products and Life Cycle Issues 264
New Product Development Strategy 266
Formulating ideas 269
Selection of ideas 270
Concept development and verification 270
Developing a Marketing Strategy 273
Analysis of production and marketing opportunities 274
Product Development 274
Trial Marketing 275
Commercial Production Deployment 275
Approach to Product Life Cycle Stages 278
Launching the product to the market 282
Growth stage 282
Maturity stage 283
Decline 284
Summary 286
Discussion Questions 287
Basic Concepts Found in Chapter 9 288
Chapter 10. Setting prices for goods: objectives and pricing policy 289
Pricing in Different Types of Markets 291
Pure competition 292
Monopolistic competition 292
Oligopolistic Competition 292
Pure Monopoly 293
Setting pricing objectives 294
Survival 294
Maximizing Current Profit 294
Conquest of leadership in terms of market share 294
Conquest of leadership in terms of product quality 295
Determining Demand 295
Demand Curve Estimation Methods 295
Price elasticity of demand 298
Cost Estimate 298
Cost types 299
Analysis of prices and products of competitors 299
Choosing a Pricing Method 300
Pricing using the "average cost plus profit" method 300
Pricing Based on Break-Even Analysis and Ensuring Target Profit 301
Establishing a Price Based on the Perceived Value of a Product 303
Price setting based on current price level 303
Price Setting Based on Closed Bidding 305
Final price fixing 305
Psychology of Price Perception 305
Firm Pricing Policy 305
Influence of the price on other market participants 306
CV 308
Discussion Questions 308
Basic concepts found in chapter 10 309
Chapter 11. Setting prices for goods: approaches to the problem of pricing 310
Approaches to the problem of pricing 311
Setting prices for new product 311
Pricing within the product range 313
Geographic Pricing 315
Price fixing with discounts and offsets 317
Setting Pricing to Promote Sales 318
Discriminatory pricing 319
Initiative price change 321
Proactive price reduction 321
Proactive price increase 321
Consumer reactions to price changes 322
Competitors' reactions to price changes 322
Firm's reaction to price changes by competitors 323
Resume 323
Discussion Questions 324
Basic Concepts Found in Chapter 11 325
Chapter 12. Distribution Methods: Distribution Channels and Movement
The Nature of Distribution Channels 329
Why do we need intermediaries 329
Distribution Channel 330 Functions
Number of channel levels 332
Channels in the service sector 333
The Spread of Vertical Marketing Systems 335
The Spread of Horizontal Marketing Systems 338
The proliferation of multichannel marketing systems 339
Distribution channels cooperation, conflicts and competition 339
Channel structure decisions 340
Identification of the main variants of channels 341
Channel Management Decisions 343
Selection of channel 343 participants
Motivating Channel 343 Members
Evaluation of the activities of channel 344 participants
Solutions to problems of goods movement 345
Nature of goods movement 345
Purposes of product distribution 347
Order Processing 349
Warehousing 350
Maintaining inventory 351
Transportation 351
Choosing a mode of transport 353
The structure of management of commodity circulation of the company 354
CV 355
Discussion Questions 355
Basic Concepts Found in Chapter 12 356
Chapter 13. Product distribution methods: retail and wholesale 358
Retail 360
The Nature and Significance of Retail 360
Types of retail trade enterprises 362
Retailer Marketing Solutions 384
Wholesale 388
The Nature and Significance of Wholesale 388
Types of wholesale enterprises 390
Wholesaler Marketing Solutions 395
CV 396
Discussion Questions 398
Basic concepts found in chapter 13 398
Chapter 14. Product Promotion: A Communication and Incentive Strategy 401
Stages of developing effective 404 communication
Revealing target audience 405
Determining the Desired Response 405
Select 407 case
Choosing a Media 409
The choice of properties characterizing the source of circulation 412
Flow accounting feedback 412
Development of a comprehensive promotion budget and selection of elements of a promotion complex 414
Calculation of the total budget for the promotion 414
Formation of a promotion complex 417
Resume 423
Discussion Questions 424
Basic concepts found in chapter 14 425
Chapter 15. Product promotion: advertising, sales promotion and public relations 427
Advert 429
Problem Statement 433
Budgeting Decisions 435
Advertising appeal decisions 435
Media Decisions 439
Advertising Program Evaluation 443
Sales promotion 446
Setting sales promotion objectives 447
Choice of Sales Promotion Products 447
Development of a sales promotion program 450
Pre-trial of the sales promotion program 451
Implementation of the sales promotion program 451
Evaluating the Results of the Sales Promotion Program 452
Public Relations 452
Setting objectives for the public relations department 454
Choosing Public Relations 455
Implementation of the Public Opinion Plan 456
Assessment of the results of public opinion shaping 456
CV 457
Discussion Questions 459
Basic concepts found in chapter 15 460
Chapter 16. Product Promotion: Personal Selling and Sales Management 461
Setting tasks for the sales department of the company 466
Selecting the organizational structure of the sales service 466
Sales Fundamentals 467
Organizational structure of the sales department of the company 467
Dimensions of the sales department of the company 469
Salary system for sales personnel 469
Attraction and selection sales agents 470
The Importance of Careful Selection 470
Key Traits of a Good Sales Agent 470
Recruitment procedure 471
Sales Agent Training 471
Fundamentals of the Art of Selling 472
Control over the work of sales agents 477
Orientation of sales agents 477
Motivating Sales Agents 478
Evaluating the effectiveness of sales agents 480
Sources of information 480
Formal performance appraisal 480
Resume 482
Discussion Questions 483
Basic concepts found in chapter 16 483
Chapter 17. Interactive and direct marketing 484
What is "direct marketing" 487
The Growth and Benefits of Direct Marketing 488
Benefits of Direct Marketing 489
Direct Marketing Development 490
Buyer Databases and Direct Marketing 491
Direct Marketing Forms 495
Personal Sale 495
Direct Mail 496
Marketing by Catalog 498
Telemarketing 498
Television Marketing Immediate Response 499
Marketing from the video booth 500
Interactive Marketing and electronic commerce 501
The Rapid Development of Interactive Marketing 502
Electronic Shopper 503
505 Interactive Marketing Benefits
Interactive Marketing Channels 507
The Temptations And Challenges Of Interactive Marketing 512
Integrated Direct Marketing 514
Public Opinion and Ethical Issues in Direct Marketing 515
Irritation, dishonesty, fraud and deceit 515
Invasion of Privacy 516
CV 517
Discussion Questions 520
Basic Concepts Found in Chapter 17 521
Chapter 18. Strategy, planning, control 523
Strategic planning 525
Mission Statement 525
Objectives and Objectives of the Firm 527
Business portfolio development plan 529
Firm Growth Strategy 529
Marketing Planning 532
Marketing Plan Sections 533
Marketing Budgeting 536
Marketing control 541
Monitoring implementation annual plans 541
Profitability control 544
Strategic control 545
CV 551
Discussion Questions 552
Basic concepts found in chapter 18 553
Chapter 19. International Marketing 555
Exploring the International Marketing Environment 558
System international trade 558
Economic environment 559
Political and legal environment 560
Cultural environment 562
Decision on the feasibility of entering a foreign market 563
Deciding which markets to enter 563
Decision on methods to go to market 564
Export 564
Joint business activities 565
Direct investment 567
Decision on the structure of the marketing mix 568
Item 568
Promotion 570
Price 570
Distribution channels 571
Decision on the structure of the marketing service 572
Export department 572
International branch 572
Transnational company 574
CV 574
Discussion Questions 575
Basic concepts found in chapter 19 576
Chapter 20. Service Marketing and Non-Profit Marketing 577
Service Marketing 578
Nature and main characteristics of the service 579
Classification of services 582
Distribution and Significance of Marketing in the Service Sector 583
Marketing Organizations 584
Assessing organizational image 585
Planning and Monitoring an Image 585
Marketing individuals 585
Celebrity Marketing 586
Political Candidate Marketing 587
Marketing seats 588
Home Marketing 588
Commercial area marketing 589
Land Investment Marketing 589
Vacation Marketing 589
Marketing Ideas 590
Resume 591
Discussion Questions 593
Basic concepts found in chapter 20 594
Chapter 21. Marketing and society 596
Public Criticism of Marketing 598
The Impact of Marketing on Individual Consumers 598
The impact of marketing on society as a whole 605
The Impact of Marketing on Other Entrepreneurs 608
Citizens' Actions to Regulate Marketing 609
Consumerism 610
Environmental Movement 611
Measures state regulation marketing 612
Entrepreneurs' actions to develop socially responsible marketing 613
Moral Marketing Principles 616
CV 619
Discussion Questions 620
Basic Concepts Found in Chapter 21 621
Appendix A. Marketing Arithmetic 622
Results report economic activity 622
Calculation of analytical coefficients 626
Mark-ups and discounts off the price 629
Appendix B. Marketing Careers 632
Description of occupations in the field of marketing 632
Advert 633
Management of the production of conventional and branded goods 635
Working with consumers 635
Industrial Marketing 635
International Marketing 636
Marketing Management Organization and Systems Analysis Specialists 636
Marketing Research 636
New Product Planning 637
Goods distribution system 637
Public Opinion Formation 637
Logistics 637
Retail Management 638
Sales and management 638
Other Career Opportunities in Marketing 638
Choosing a job and getting a job 639
Self-Assess 639
Review Job Description 639
State the objectives of your search 639
Study the job market and see what it can do 640
Develop a search strategy 640
Prepare a self-introduction and cover letter 640
Get interview 641
Bring It To The End 642
Index 643

Philip Kotler

Marketing Basics

© Williams Publishing House, 2007

© Prentice-Hall, Inc., 1984

Introduction

In today's complex world, we all need to understand marketing. When we sell a car, look for a job, raise funds for charity or promote an idea, we do marketing. We need to know what the market is, who operates on it, how it functions, what its needs are.

We need to understand marketing and our role as consumers and our role as citizens. Someone is constantly trying to sell us something, and we must be able to recognize the applied methods of selling. Knowledge of marketing allows us to behave more intelligently as consumers, whether it is buying toothpaste, frozen pizza, a personal computer or a new car.

Marketing is one of the foundational disciplines for market professionals such as salespeople, retailers, advertisers, marketing researchers, new and branded product managers, etc. They need to know how to describe a market and break it down into segments; how to assess the needs, demands and preferences of consumers within the target market; how to design and test a product with consumer properties required for this market; how through the price to convey to the consumer the idea of ​​the value of the goods; how to choose skilled intermediaries to make the product available and well presented; how to advertise a product so that consumers know it and want to buy it. A professional market figure must, without a doubt, have a wide range of knowledge and skills.

Those wishing to study marketing can find many books on the subject. But even the thickest textbooks barely slide on the surface of this science, because a huge amount of information is needed to know about each marketing tool. Those new to marketing need a very basic understanding of the basics so they don't get bogged down in a sea of ​​specific details. It is from the standpoint of this approach that the proposed book “Fundamentals of Marketing. Short course ".

At the same time, the book "Fundamentals of Marketing. Short Course ”should not be viewed as just a general excursion. The topic is too exciting to be limited to a schematic representation. The book contains case studies illustrating the drama of modern marketing: the failure of the CBS cable television system; endless confrontation between Coca-Cola and Pepsi-Cola; rise in the beer market of the Miller firm from seventh to second place; the influence of Avon women traveling salesmen on home shopping; a long-term campaign by Columbia Records to popularize the Main at Work Orchestra; price war in the home computer market, etc. Each chapter begins with a description of a significant marketing event. Real-world examples cited throughout each chapter fill dry marketing knowledge with the heartbeat of life.

While working on this book, I was guided by several principles. It should be fun to read. It should cover all the main points that both the market figure and the ordinary citizen need to know. The story should develop logically from chapter to chapter. The presentation should be based on data scientific research, and not on hearsay and speculation and be focused on management problems. My goal is to prepare the reader to make better marketing decisions.

Means to facilitate the assimilation of the material

The book uses many special techniques to make it easier for students to learn marketing. Here are the main ones.

Statement of goals. To prepare for the perception of the material, each chapter is preceded by a statement of the goals set for it.

Initial splash screen. Each chapter begins with a short marketing story leading up to the core material.

Digital data, tables. The main provisions and principles discussed in the book are illustrated.

Sidebars. Throughout the book, additional examples and other interesting information are given in a special way.

Summary. Each chapter concludes with a brief review of its key points and principles.

Issues for discussion. Each chapter is provided with a selection of questions covering the entire volume of the material presented in it.

Basic concepts. Definitions of new concepts are provided at the end of each chapter.

Applications. Two appendices, Marketing Arithmetic and Marketing Careers, provide additional material of practical interest.

Chapter 1. Social Foundations of Marketing: Meeting Human Needs

After reading this chapter, you should be able to:

1. Define marketing and talk about its role in the economy.

2. Compare five approaches to marketing management.

3. Explain what buyers, sellers and ordinary citizens expect from the marketing system.

4. Explain how organizations use marketing.

Marketing affects the interests of each of us on any day of our life. We wake up when the Sears radio clock turns on to a song by Barbra Streisand, followed by a United Airlines commercial for a Hawaii vacation. In the bathroom, we brush our teeth with Colgate paste, shave with a Gillette razor, freshen our mouth with Listerine antiseptic, spray our hair with Revlon varnish, and use many other toiletries and accessories made in different parts of the world. We put on Calvin Klein jeans and Bass boots. In the kitchen, we sip a glass of Minute Made orange juice, sprinkle Kellogg crispy rice on a plate, and fill it with Borden milk. After a while, we have a cup of Maxwell House coffee with two teaspoons of Domino granulated sugar while munching on a Sara Lee bun. We buy oranges grown in California, coffee imported from Brazil, a newspaper made from Canadian wood, and the news reaches us on the radio from as far away as Australia. Sorting through the mail, we find in it another catalog of the Metropolitan Museum, a letter from a sales representative of the insurance company "Prudential" offering various services and coupons to save money when buying our favorite branded goods. We leave the house and drive to the Northbrook Court mall with Neiman-Marcus, Lord and Taylor, Sears department stores and hundreds of stores full of floor-to-ceiling merchandise. Then we work out in the Nautilus health and fitness center, get our hair cut in the Vidal Sassoon salon and, with the help of the Thomas Cook travel agents, plan a trip to the Caribbean.

All this became possible thanks to the marketing system, and with minimal effort on our part. It provided us with a standard of living that our predecessors could only dream of.

What is Marketing

What is behind the concept of "marketing"? Most people mistakenly equate marketing with sales and advertising.

And no wonder! After all, Americans are constantly harassed by television commercials, newspaper ads, direct mail advertisements, and salesman visits. Someone is trying to sell something all the time. There seems to be no escape from death, taxes and commerce.

Therefore, many are surprised to learn that the most important element of marketing is not sales at all. Sales is just the tip of the marketing iceberg, one of its many functions, and often not the most essential. If the market maker has done a good job in marketing areas such as identifying consumer needs, designing and pricing suitable products, setting up a distribution system and efficient incentives, such products will surely go easy.

Everyone knows about the so-called special hot goods that consumers hunt in droves. When the Eastman Kodak company created the Instamatic type cameras, the Atari company created the first video games, and the Mazda company created the PX-7 sports car, they were inundated with orders because they offered exactly the goods that were in that time is needed. Not imitation products, but products that clearly differ from existing ones and offer consumers new benefits.

One of the leading management theorists, Peter Drucker, puts it this way: “The goal of marketing is to make sales efforts unnecessary. Its goal is to get to know and understand the client so well that the product or service will exactly fit the latter and sell itself. "

Today it is impossible to find a single company that does not use it in its activities. Everything from individual entrepreneur and ending with international corporations, promote their products or services in one way or another, build relationships with their customers and create their own image in the business market.

The fundamentals of marketing imply the presence of a goal, mission and strategy for the company. They are not always expressed in the form of written and official documents, but each owner always keeps in mind the type of activity that he wants to achieve. To better understand the functions of marketing, you need to go back to the origins and find out what led to its formation.

Marketing components

If you look closely, the fundamentals of management and marketing are very similar. This happened because of the commonality of sciences, which formed the basis of their formation. Sociology, psychology and economics are the foundations of marketing. Each of these areas have made a huge contribution to the formation of relationships between a product, brand, company and consumer.

Social part of marketing

Relationships in society and its well-being, which sociology studies, help marketers understand for which product society is already ready, and with the release of which should be postponed. For this reason, there is a constant study of the life of society, its political, economic, religious and moral components. There is also a goal of which is to create a positive image in the eyes and consumers. At the same time, it is based on the principle of attracting customers through the popularity of the company and the trusting attitude towards it on the part of authoritative bodies and people.

Psychological component

The study of the behavioral factor formed the basis of Internet marketing. This is how the way the user will behave while on the pages of the site is analyzed with particular care, as well as how the information displayed there will correspond to his ethical standards and views. Most advertising campaigns are carried out taking into account the psychological characteristics of a particular

The economic part of marketing

Marketing, like any science, is subject to analysis. Any event held within its framework should give a positive financial results... It is its digital significance that forms the foundations of marketing in an economic sense. To determine the effectiveness of an advertising campaign, economic formulas and postulates are applied.

Thus, the basics of marketing lie in social relations, emotional characteristics and economic benefits... To conduct effective advertising and image campaigns, it is necessary. Each company owner, guided by these principles, will be able to bring the company to a new level, increase profits and win a good name. The rule is simple: the resulting profit directly depends on the satisfaction of the end consumer.

M .: 2007 .-- 656 p.

The first acquaintance with the theory of marketing of the majority of citizens of the former USSR began with Philip Kotler's book "Fundamentals of Marketing", published by the publishing house "Progress" in 1990. The textbook turned out to be so timely and in demand that hundreds of thousands of pirated copies immediately appeared, published by enterprising businessmen from the publishing business. The book you are holding in your hands is the only legal edition of the beloved bestseller to date. This edition includes a new chapter on interactive marketing and new examples of the practical application of selected theoretical positions.

The book is intended for students of economic specialties, but will be of interest to a wide range of readers.

Format: djvu / zip ( Fundamentals of Marketing. Short course. 2007 g., 656s.)

The size: 5, 97 Mb

RGhost

Format: doc / zip ( Fundamentals of Marketing. 1991 g., 657s.)

The size: 1, 13 Mb

/ Download file

CONTENT
Introduction 18
Chapter 1. The Social Basics of Marketing: Meeting Human Needs 20
What is Marketing 21
Needs 22
Needs 22
Inquiries 23
Products 23
Exchange 25
Trade 26
Market 27
Marketing 29
Marketing Management 30
Marketing Management Concepts 30
Manufacturing Improvement Concept 32
Product Improvement Concept 33
Business Intensification Concept 34
Marketing concept 35
Social Marketing Concept 36
Marketing System Objectives 39
Achieving the Highest Possible Consumption 42
Achieving Maximum Customer Satisfaction 42
Providing the widest possible choice 43
Maximizing Quality of Life 43
The Rapid Spread of the Marketing System 44
In the field of entrepreneurship 44
Internationally 45
In the field of non-profit activity 45
Summary 46
Discussion Questions 47
Basic concepts found in chapter 1 48
Chapter 2. The Marketing Management Process 50
Market Opportunity Analysis 52
Identifying New Markets 53
Marketing Opportunity Assessment 55
Selecting target markets 58
Demand metering and forecasting 58
Market segmentation 59
Selection of target market segments 59
Product positioning on the market 61
Marketing mix development 63
Implementing Marketing Activities 65
Marketing planning system 65
Marketing Service Organization System 66
Marketing control system 72
Brief Review of Topic 72
Summary 73
Discussion Questions 75
Basic concepts found in chapter 2 75
Chapter 3. Systems of marketing research and marketing information 77
Marketing Information System Concept 79
Internal reporting system 80
System for collecting external current marketing information 81
Marketing Research System 82
Marketing Research Scheme 86
Identifying problems and formulating research objectives 87
Selection of information sources 88
Summary 98
Discussion Questions 99
Basic concepts found in chapter 3 101
Chapter 4. Marketing Environment 102
The main factors of the microenvironment for the functioning of the company 105
Firm 105
Suppliers 106
Marketing intermediaries 107
Clientele 108
Competitors 109
Contact Audiences 111
The main factors of the macroenvironment for the functioning of the company 114
Demographic environment 114
Economic environment 120
Natural environment 122
Scientific and technical environment 124
Political environment 127
Cultural environment 131
Summary 135
Discussion Questions 136
Basic Concepts Found in Chapter 4 137
Chapter 5. Consumer Markets and Consumer Buying Behavior 138
Buying Behavior Model 141
Customer characteristics 142
Cultural factors 143
Social factors 146
Personal factors 150
Factors of a psychological order 153
Purchase Decision Process 160
Awareness 161
Finding Information 161
Rating options 163
Purchase decision 165
Buy Reaction 165
Various options for making a decision to purchase a new product 167
Stages of the Perception Process 168
Individual differences of people in the readiness to perceive innovations 168
The Role of Personal Influence 170
Influence of product characteristics on the rate of its perception 171
Summary 171
Discussion Questions 172
Basic concepts found in chapter 5 173
Chapter 6. Market of Enterprises and Behavior of Organized Consumers 174
Industrial goods market 176
Who acts on the industrial goods market? 176
What purchasing decisions do industrial buyers make? 179
Who is involved in making purchasing decisions for industrial goods? 183
What is the main influence on buyers of industrial goods? 184
How exactly do industrial buyers make purchasing decisions? 186
Market for intermediaries 191
Who is in the reseller market? 191
What purchasing decisions do intermediaries make? 191
Who is involved in making decisions about purchasing goods for resale? 192
How exactly do intermediaries make procurement decisions? 192
Government institutions market 193
Who is on the market for government agencies? 193
What purchasing decisions do buyers make on behalf of government agencies? 193
Who is involved in making procurement decisions on behalf of government agencies? 194
What is the main influence on government procurement agencies? 195
How exactly do government agencies make procurement decisions? 195
Summary 197
Discussion Questions 198
Basic concepts found in chapter 6 199
Chapter 7. Market Segmentation, Target Segment Selection and Product Positioning 200
Market segmentation 203
General Approach to Market Segmentation 203
Basic Principles for Segmenting Consumer Markets 205
Basic principles of segmentation of markets for industrial goods 217
Selecting target market segments 218
Three options for market coverage 219
Identifying the most attractive market segments 222
Product positioning on the market 224
CV 225
Discussion Questions 227
Basic Concepts Found in Chapter 7 227
Chapter 8. Development of goods: goods, brands, packaging, services 229
What is commodity 231
Goods as intended, goods in real execution, goods with reinforcement 231
The main types of classification of goods 232
Durable goods, non-durable goods, services 233
Classification of consumer goods 234
Classification of industrial goods 236
Decisions on the use of stamps 238
Decisions regarding brand names 239
Decision on the owner of the brand 240
Decision on the quality of branded goods 242
Decision on nepotism 242
The decision to expand the boundaries of the use of stamp 245
The Multibrand Approach Decision 245
Packaging Decisions 246
Decisions regarding marking 248
Customer Service Solutions 251
Service Package Decision 251
Service Level Decision 252
Decision on the form of service 252
Customer Service Department 253
Product assortment decisions 253
Decision on the breadth of the product range 253
Nomenclature decisions 256
Summary 259
Discussion Questions 261
Basic Concepts Found in Chapter 8 262
Chapter 9. Product Development: New Products and Life Cycle Issues 264
New Product Development Strategy 266
Formulating ideas 269
Selection of ideas 270
Concept development and verification 270
Developing a Marketing Strategy 273
Analysis of production and marketing opportunities 274
Product Development 274
Trial Marketing 275
Commercial Production Deployment 275
Approach to Product Life Cycle Stages 278
Launching the product to the market 282
Growth stage 282
Maturity stage 283
Decline 284
Summary 286
Discussion Questions 287
Basic Concepts Found in Chapter 9 288
Chapter 10. Setting prices for goods: objectives and pricing policy 289
Pricing in Different Types of Markets 291
Pure competition 292
Monopolistic competition 292
Oligopolistic Competition 292
Pure Monopoly 293
Setting pricing objectives 294
Survival 294
Maximizing Current Profit 294
Conquest of leadership in terms of market share 294
Conquest of leadership in terms of product quality 295
Determining Demand 295
Demand Curve Estimation Methods 295
Price elasticity of demand 298
Cost Estimate 298
Cost types 299
Analysis of prices and products of competitors 299
Choosing a Pricing Method 300
Pricing using the "average cost plus profit" method 300
Pricing Based on Break-Even Analysis and Ensuring Target Profit 301
Establishing a Price Based on the Perceived Value of a Product 303
Price setting based on current price level 303
Price Setting Based on Closed Bidding 305
Final price fixing 305
Psychology of Price Perception 305
Firm Pricing Policy 305
Influence of the price on other market participants 306
CV 308
Discussion Questions 308
Basic concepts found in chapter 10 309
Chapter 11. Setting prices for goods: approaches to the problem of pricing 310
Approaches to the problem of pricing 311
New Product Pricing 311
Pricing within the product range 313
Geographic Pricing 315
Price fixing with discounts and offsets 317
Setting Pricing to Promote Sales 318
Discriminatory pricing 319
Initiative price change 321
Proactive price reduction 321
Proactive price increase 321
Consumer reactions to price changes 322
Competitors' reactions to price changes 322
Firm's reaction to price changes by competitors 323
Resume 323
Discussion Questions 324
Basic Concepts Found in Chapter 11 325
Chapter 12. Distribution Methods: Distribution Channels and Movement 327
The Nature of Distribution Channels 329
Why do we need intermediaries 329
Distribution Channel 330 Functions
Number of channel levels 332
Channels in the service sector 333
The Spread of Vertical Marketing Systems 335
The Spread of Horizontal Marketing Systems 338
The proliferation of multichannel marketing systems 339
Distribution channels cooperation, conflicts and competition 339
Channel structure decisions 340
Identification of the main variants of channels 341
Channel Management Decisions 343
Selection of channel 343 participants
Motivating Channel 343 Members
Evaluation of the activities of channel 344 participants
Solutions to problems of goods movement 345
Nature of goods movement 345
Purposes of product distribution 347
Order Processing 349
Warehousing 350
Maintaining inventory 351
Transportation 351
Choosing a mode of transport 353
The structure of management of commodity circulation of the company 354
CV 355
Discussion Questions 355
Basic Concepts Found in Chapter 12 356
Chapter 13. Distribution Methods: Retail and Wholesale 358
Retail 360
The Nature and Significance of Retail 360
Types of retail trade 362
Retailer Marketing Solutions 384
Wholesale 388
The Nature and Significance of Wholesale 388
Types of wholesale enterprises 390
Wholesaler Marketing Solutions 395
CV 396
Discussion Questions 398
Basic concepts found in chapter 13 398
Chapter 14. Product Promotion: A Communication and Incentive Strategy 401
Stages of developing effective 404 communication
Identifying target audience 405
Determining the Desired Response 405
Select 407 case
Choosing a Media 409
The choice of properties characterizing the source of circulation 412
Feedback flow accounting 412
Development of a comprehensive promotion budget and selection of elements of a promotion complex 414
Calculation of the total budget for the promotion 414
Formation of a promotion complex 417
Resume 423
Discussion Questions 424
Basic concepts found in chapter 14 425
Chapter 15. Promotion of Products: Advertising, Sales Promotion and Public Relations 427
Advert 429
Problem Statement 433
Budgeting Decisions 435
Advertising appeal decisions 435
Media Decisions 439
Advertising Program Evaluation 443
Sales promotion 446
Setting sales promotion objectives 447
Choice of Sales Promotion Products 447
Development of a sales promotion program 450
Pre-trial of the sales promotion program 451
Implementation of the sales promotion program 451
Evaluating the Results of the Sales Promotion Program 452
Public Relations 452
Setting objectives for the public relations department 454
Choosing Public Relations 455
Implementation of the Public Opinion Plan 456
Assessment of the results of public opinion shaping 456
CV 457
Discussion Questions 459
Basic concepts found in chapter 15 460
Chapter 16. Promotion of Products: Personal Selling and Sales Management 461
Setting tasks for the sales department of the company 466
Selecting the organizational structure of the sales service 466
Sales Fundamentals 467
Organizational structure of the sales department of the company 467
Dimensions of the sales department of the company 469
Salary system for sales personnel 469
Attraction and selection of sales agents 470
The Importance of Careful Selection 470
Key Traits of a Good Sales Agent 470
Recruitment procedure 471
Sales Agent Training 471
Fundamentals of the Art of Selling 472
Control over the work of sales agents 477
Orientation of sales agents 477
Motivating Sales Agents 478
Evaluating the effectiveness of sales agents 480
Sources of information 480
Formal performance appraisal 480
Resume 482
Discussion Questions 483
Basic concepts found in chapter 16 483
Chapter 17. Interactive and Direct Marketing 484
What is "direct marketing" 487
The Growth and Benefits of Direct Marketing 488
Benefits of Direct Marketing 489
Direct Marketing Development 490
Buyer Databases and Direct Marketing 491
Direct Marketing Forms 495
Personal Sale 495
Direct Mail 496
Marketing by Catalog 498
Telemarketing 498
Television Marketing Immediate Response 499
Marketing from the video booth 500
Interactive Marketing & Ecommerce 501
The Rapid Development of Interactive Marketing 502
Electronic Shopper 503
505 Interactive Marketing Benefits
Interactive Marketing Channels 507
The Temptations And Challenges Of Interactive Marketing 512
Integrated Direct Marketing 514
Public Opinion and Ethical Issues in Direct Marketing 515
Irritation, dishonesty, fraud and deceit 515
Invasion of Privacy 516
CV 517
Discussion Questions 520
Basic Concepts Found in Chapter 17 521
Chapter 18. Strategy, planning, control 523
Strategic planning 525
Mission Statement 525
Objectives and Objectives of the Firm 527
Business portfolio development plan 529
Firm Growth Strategy 529
Marketing Planning 532
Marketing Plan Sections 533
Marketing Budgeting 536
Marketing control 541
Monitoring the implementation of annual plans 541
Profitability control 544
Strategic control 545
CV 551
Discussion Questions 552
Basic concepts found in chapter 18 553
Chapter 19. International Marketing 555
Exploring the International Marketing Environment 558
International Trade System 558
Economic environment 559
Political and legal environment 560
Cultural environment 562
Decision on the feasibility of entering a foreign market 563
Deciding which markets to enter 563
Decision on methods to go to market 564
Export 564
Joint business activities 565
Direct investment 567
Decision on the structure of the marketing mix 568
Item 568
Promotion 570
Price 570
Distribution channels 571
Decision on the structure of the marketing service 572
Export department 572
International branch 572
Transnational company 574
CV 574
Discussion Questions 575
Basic concepts found in chapter 19 576
Chapter 20. Marketing of services and marketing in the field of non-profit activities 577
Service Marketing 578
Nature and main characteristics of the service 579
Classification of services 582
Distribution and Significance of Marketing in the Service Sector 583
Marketing Organizations 584
Assessing organizational image 585
Planning and Monitoring an Image 585
Individual Marketing 585
Celebrity Marketing 586
Political Candidate Marketing 587
Marketing seats 588
Home Marketing 588
Commercial area marketing 589
Land Investment Marketing 589
Vacation Marketing 589
Marketing Ideas 590
Resume 591
Discussion Questions 593
Basic concepts found in chapter 20 594
Chapter 21. Marketing and Society 596
Public Criticism of Marketing 598
The Impact of Marketing on Individual Consumers 598
The impact of marketing on society as a whole 605
The Impact of Marketing on Other Entrepreneurs 608
Citizens' Actions to Regulate Marketing 609
Consumerism 610
Environmental Movement 611
Measures of state regulation of marketing 612
Entrepreneurs' actions to develop socially responsible marketing 613
Moral Marketing Principles 616
CV 619
Discussion Questions 620
Basic Concepts Found in Chapter 21 621
Appendix A. Marketing Arithmetic 622
Business Results Report 622
Calculation of analytical coefficients 626
Mark-ups and discounts off the price 629
Appendix B. Marketing Careers 632
Description of occupations in the field of marketing 632
Advert 633
Management of the production of conventional and branded goods 635
Working with consumers 635
Industrial Marketing 635
International Marketing 636
Marketing Management Organization and Systems Analysis Specialists 636
Marketing Research 636
New Product Planning 637
Goods distribution system 637
Public Opinion Formation 637
Logistics 637
Retail Management 638
Sales and management 638
Other Career Opportunities in Marketing 638
Choosing a job and getting a job 639
Self-Assess 639
Review Job Description 639
State the objectives of your search 639
Study the job market and see what it can do 640
Develop a search strategy 640
Prepare a self-introduction and cover letter 640
Get interview 641
Bring It To The End 642
Index 643