Marketing Management

Marketing ManageMent hamed imad Salah Kevin PhiliP Kotler Keller hassan Baalbaki Shamma Pearson Arab World Editions — Business & Economics The Arab world’s location between three continents ensures its place at the centre of an increasingly integrated global economy, as distinctive as any business culture. We think learning should be as dynamic, relevant, and engaging as the business environment. Our new Arab World Editions for Business & Economics provide this uniquely Arab perspective for students in and of the Arab world.

Each Arab World Edition integrates cases, companies, research, people, and discussions representing the diverse economic, political, and cultural situations across the nations that span the Arab world, whilst retaining the quality, research, and relevant global perspectives of the world’s leading business thinkers. We hope that you ? nd this edition a valuable contribution to your teaching or business studies. We aim to set a new benchmark for contextualized learning with our adapted and new titles, and hope that they will prove a valuable contribution in the success of students and teachers along each step of their business programme.

Supplementary support includes PowerPoint slides, instructor manuals, test bank generators, and MyLab online tutorial and homework systems. Titles span a range of subjects and disciplines, including: ¦ Management — Robbins & Coulter ¦ Principles of Marketing — Kotler & Armstrong ¦ Economics — Hubbard & O’Brien ¦ Statistics for Business — Benghezal ¦ Principles of Managerial Finance — Gitman ¦ Organizational Behavior — Robbins & Judge ¦ Human Resource Management — Dessler ¦ Strategic Management: Concepts and Cases — David ¦ Introductory Mathematical Analysis for Business, Economics and Life and Social Sciences — Haeussler

To ? nd out more, go to www. pearson. com/middleeast/awe Marketing Management Ar A b World Edition PhiliP Kotler Northwestern University Kevin lane Keller University of North Carolina Salah haSSan George Washington University imad BaalBaKi American University of Beirut hamed Shamma American University of Cairo Acquisitions Editor: Rasheed Roussan Senior Development Editor: Sophie Bulbrook Project Editors: Nicole Elliott and Bernice Luxford Copy-editor: Nik Prowse Proofreader: Jim Caunter Design Manager: Sarah Fach Permissions Editor: Rachel Thorne Picture Researcher: Louise Edgeworth Indexer: Indexing Specialists, Ltd

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Marketing Manager: Sue Mainey Senior Manufacturing Controller: Christopher Crow Cover Designer: TBA Typesetter: Integra Typeface: 9. 5/11. 5, Minion Pro Printed in China. Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world © Pearson Education Limited 2012 Authorized for sale only in the Middle East and North Africa. The rights of Philip Kotler, Kevin Lane Keller, Salah Hassan, Imad Baalbaki, and Hamed Shamma to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS. All trademarks used herein are the property of their respective owners.

The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners. Pearson Education is not responsible for the content of third party internet sites. First published 2012 20 19 18 17 16 15 14 13 12 11 IMP 10 9 8 7 6 5 4 3 2 1 ISBN: 978-1-4082-5273-4 About the Authors srohtuA ing. He is the S. C.

Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management, Northwestern University. He received his master’s degree at the University of Chicago and his Ph. D. at MIT, both in economics. He did postdoctoral work in mathematics at Harvard University and in behavioral science at the University of Chicago. Dr. Kotler is the coauthor of Principles of Marketing and Marketing: An Introduction. His Strategic Marketing for Nonprofit Organizations, now in its seventh edition, is the best seller in that specialized area.

Dr. Kotler’s other books include Marketing Models; The New Competition; Marketing Professional Services; Strategic Marketing for Educational Institutions; Marketing for Health Care Organizations; Marketing Congregations; High Visibility; Social Marketing; Marketing Places; The Marketing of Nations; Marketing for Hospitality and Tourism; Standing Room Only—Strategies for Marketing the Performing Arts; Museum Strategy and Marketing; Marketing Moves; Kotler on Marketing; Lateral Marketing: Ten Deadly Marketing Sins; and Corporate Social Responsibility.

In addition, he has published more than one hundred articles in leading journals, including the Harvard Business Review, Sloan Management Review, Business Horizons, California Management Review, the Journal of Marketing, the Journal of Marketing Research, Management Science, the Journal of Business Strategy, and Futurist. He is the only three-time winner of the coveted Alpha Kappa Psi award for the best annual article published in the Journal of Marketing.

Professor Kotler was the first recipient of the American Marketing Association’s (AMA) Distinguished Marketing Educator Award (1985). The European Association of Marketing Consultants and Sales Trainers awarded him their Prize for Marketing Excellence. He was chosen as the Leader in Marketing Thought by the Academic Members of the AMA in a 1975 survey. He also received the 1978 Paul Converse Award of the AMA, honoring his original contribution to marketing. In 1995, the Sales and Marketing Executives International (SMEI) named him Marketer of the Year.

In 2002, Professor Kotler received the Distinguished Educator Award from The Academy of Marketing Science. He has received honorary doctoral degrees from Stockholm University, the University of Zurich, Athens University of Economics and Business, DePaul University, the Cracow School of Business and Economics, Groupe H. E. C. in Paris, the Budapest School of Economic Science and Public Administration, and the University of Economics and Business Administration in Vienna. Professor Kotler has been a consultant to many major U. S. nd foreign companies, including IBM, General Electric, AT&T, Honeywell, Bank of America, Merck, SAS Airlines, Michelin, and others in the areas of marketing strategy and planning, marketing organization, and international marketing. He has been Chairman of the College of Marketing of the Institute of Management Sciences, a Director of the American Marketing Association, a Trustee of the Marketing Science Institute, a Director of the MAC Group, a member of the Yankelovich Advisory Board, and a member of the Copernicus Advisory Board.

He was a member of the Board of Governors of the School of the Art Institute of Chicago and a member of the Advisory Board of the Drucker Foundation. He has traveled extensively throughout Europe, Asia, and South America, advising and lecturing to many companies about global marketing opportunities. Philip Kotler Philip Kotler is one of the world’s leading authorities on market- v ii Kevin Lane Keller v iii Kevin Lane Keller is the E. B. Osborn Professor of Marketing at the Tuck School of Business at Dartmouth College. Professor Keller has degrees from Cornell, Carnegie-Mellon, and Duke universities.

At Dartmouth, he teaches MBA courses on marketing management and strategic brand management and lectures in executive programs on those topics. Previously, Professor Keller was on the faculty of the Graduate School of Business at Stanford University, where he also served as the head of the marketing group. Additionally, he has been on the marketing faculty at the University of California at Berkeley and the University of North Carolina at Chapel Hill, been a visiting professor at Duke University and the Australian Graduate School of Management, and has two years of industry experience as Marketing Consultant for Bank of America.

Professor Keller’s general area of expertise lies in marketing strategy and planning, and branding. His specific research interest is in how understanding theories and concepts related to consumer behavior can improve marketing strategies. His research has been published in three of the major marketing journals—the Journal of Marketing, the Journal of Marketing Research, and the Journal of Consumer Research. He also has served on the Editorial Review Boards of those journals. With over sixty published papers, his research has been widely cited and has received numerous awards.

Two of his articles, “Consumer Evaluations of Brand Extensions” and “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity” were named by INFORMS Society for Marketing Science in March 2007 to its list of Top 20 marketing science papers written in the past 25 years that have most affected the practice of marketing science. Professor Keller is acknowledged as one of the international leaders in the study of brands, branding, and strategic brand management. Actively involved with industry, he has worked on a host of different types of marketing projects.

He has served as a consultant and advisor to marketers for some of the world’s most successful brands, including Accenture, American Express, Disney, Ford, Intel, Levi Strauss, Procter & Gamble, and SAB Miller. Additional brand consulting activities have been with other top companies such as Allstate, Beiersdorf (Nivea), BlueCross BlueShield, Campbell’s, Eli Lilly, ExxonMobil, General Mills, Goodyear, Kodak, Mayo Clinic, Nordstrom, Shell Oil, Starbucks, Unilever, and Young & Rubicam.

He has also served as an academic trustee for the Marketing Science Institute. A popular speaker, he has conducted marketing seminars to top executives in a variety of forums. Professor Keller is currently conducting a variety of studies that address strategies to build, measure, and manage brand equity. His textbook on those subjects, Strategic Brand Management, has been adopted at top business schools and leading firms around the world and has been heralded as the “bible of branding. An avid sports, music, and film enthusiast, in his so-called spare time, he has served as executive producer for one of Australia’s great rock and roll treasures, The Church, as well as American power-pop legends Dwight Twilley and Tommy Keene. He is also on the Board of Directors for The Doug Flutie, Jr. Foundation for Autism. Professor Keller lives in Etna, NH with his wife, Punam (also a Tuck marketing professor), and his two daughters, Carolyn and Allison. Salah S. Hassan Salah S. Hassan is Professor of Marketing at the School of

Business and an affiliate faculty of Institute for Middle East Studies, Elliott School of International Affairs both of The George Washington University and has been a professor at GW School of Business since 1988. Professor Hassan served as Chairman of the Department of Marketing from 20052011 where he provided visionary leadership in designing, implementing and reviewing programs and fostered productive interdisciplinary relationships with a variety of entities across the University community and throughout the world. Also, Dr. Hassan was recognized in 2005 with the “Outstanding Marketing Teacher” award by the Academy of Marketing Science.

As an internationally recognized speaker, author, and thought leader in the areas of global consumer marketing and brand management. Dr. Salah S. Hassan is often called upon as an expert for his creative vision in leading clients throughout the process of strategic planning in order to achieve extraordinary results. Dr. Hassan’s opinion has been cited by leading media and trade publications, such as Reuters, Chicago Tribune, Advertising Age, AdWEEK, Campaign, Business Monthly, Gulf Marketing Review, and Marketing News. Through keynotes, workshops, seminars and retreats across the world, Dr.

Hassan combines his wealth of executive coaching experience with extensive consulting in corporate strategy to provide leading-edge solutions. Dr. Hassan is a member of the Academic Board of the Institute for Cultural Diplomacy (ICD) as well as a Program Director for the ICD Nation Branding Program. Also, Dr. Hassan served on the consulting teams of several major international assignments that focused on such projects as strategic brand management, entrepreneurial marketing, economic development, destination branding, corporate branding, and CSR best-practice analysis. Dr.

Hassan completed numerous national and international consulting assignments and executive development programs for organizations such as: UAE National Council of Tourism & Antiquities, Dubai School of Government, Saudi Arabian Airlines, Kellogg School of Management, The World Bank, Smithsonian Institution, The US State Department, Ansell Healthcare Products, Raytheon International, International Institute for Tourism Studies, BlogCatalog, Winrock International, Porter/Novelli, USAID, the Fulbright Commission, International Food Institute in Australia, King Saud University, the American University in Cairo, and the American Chamber of Commerce in Egypt. Dr. Hassan published well over 70 articles and papers in academic journals and trade periodicals.

He published two books; Globalization of Consumer Markets and Global Marketing Perspectives and Cases. In recognition of his research, he was hosted by the US Embassy in Germany to speak on Nation Branding at an international symposium organized by the Institute for Cultural Diplomacy & recently was hosted by the US Embassy in Copenhagen to give a keynote address at a conference on nation branding and tourism development. Also, he was invited by the University of Birmingham Thought Leaders Conference to speak on Strategic Brand Management; by Kellogg School of Management to speak on Unlocking Brand Potential in Gulf Region; and by Harvard Business School’s Open Innovations Workshop to speak on Harnessing User Innovations.

Also, he served as chairman of the board for several international conferences and distinguished visiting professor and guest speaker for leading international universities such as King Saud University, Saudi Arabia, Dubai School of Government, UAE; State University of Management, Moscow; Kuwait University; Bahrain University; University of Puerto Rico; ix Imad Baalbaki La-Universidad de Los Andes, Columbia; La-Universidad San Ignacio De Loyola, Peru; Griffith University, Australia; Victoria University, Australia; The American University in Cairo, Egypt; and Alexandria University, Egypt. Having lectured, consulted, and conducted research around the world, Dr. Hassan achieved the status of an “International Thought Leader”. In recognition of his achievements, Dr.

Hassan received several awards from the Academy of Marketing Science, The American Marketing Association, and Ohio State University. Previously, Dr. Hassan served as Chairman of the Sustainable Development Forum, a think-tank organization of experts from a variety of disciplines representing 12 countries/ 5 continents to promote a deeper understanding of global development issues. At present, Dr. Salah Hassan is an active member of the International Advertising Association (IAA), American Marketing Association and The Academy of Marketing Science. Also, he serves on the advisory board of several corporate and non-profit organizations as well as government agencies. x

Imad Baalbaki is Assistant Vice President for Development at the American University of Beirut (AUB), and a Visiting Assistant Professor of Marketing at AUB’s Suliman S. Olayan School of Business. He holds BBA and MBA degrees from the American University of Beirut, and a PhD in Marketing and Research Methods from the Georgia Institute of Technology in Atlanta, Georgia (USA). Dr Baalbaki joined the professorial ranks of the (then) Graduate School of Business and Management at AUB in 1993. Founded as the School of Commerce in 1900, the Graduate School of Business and Management is one of largest academic units in the University. Dr Baalbaki became Director of the School in 1997, and led the School until it became the sixth independent faculty of the American University of Beirut in academic year 2000-2001.

Thereafter, Dr Baalbaki served as Director of Development and External Affairs for the university (2001-2007), and is currently Assistant Vice President for Development at AUB. Dr Baalbaki has taught courses and delivered marketing seminars in the fields of Marketing and Research Methods in the United States, Lebanon, and the Arabian Gulf. He has researched and published in those fields in international academic journals including leading journals such as the Journal of the Academy of Marketing Science and International Marketing Review. Dr Baalbaki’s article on “Standardization Versus Customization in International Marketing: An Investigation Using Bridging Conjoint Analysis” published in 1995 in the Journal of the Academy of Marketing Science is recognized as the first application of this technique in academia.

Dr Baalbaki’s article entitled “Patient Satisfaction with Healthcare Delivery Systems” in the International Journal of Pharmaceutical and Healthcare Marketing was recognized as a Highly Commended Award Winner at the Literati Network Awards for Excellence 2009. Dr Baalbaki has served as reviewer and member of editorial board for international business and marketing journals. He has participated and presented papers in numerous international and regional academic and professional business conferences in North America, Europe, the Middle East, South East Asia, and Australia. He has also served in some conferences as a reviewer, discussant, and session chair. Hamed M. Shamma is an Assistant Professor of Marketing at the School of Business, at The American University in Cairo (AUC), Egypt. He received his Ph. D. in Marketing from the George Washington University in Washington, DC (USA).

He also holds a Bachelor’s of Arts (BA) in Business Administration with specialization in Marketing and Masters of Business Administration (MBA) with a double concentration in Marketing and International Business from the AUC. Dr. Shamma’s research interests are in the areas of corporate marketing, strategic brand management, and customer relationship management (CRM). He is specialized in examining corporate-level issues about organizations such as: corporate reputation, corporate branding, corporate image, corporate reporting and corporate performance. Recently he has been working on other topics including: political marketing, marketing of e-government services, social marketing and entrepreneurial marketing. Dr.

Shamma has over four years of corporate experience at Mobinil, a subsidiary of Orange – a leading telecommunications service provider – and Egypt’s leading mobile service operator. He was involved with corporate performance assessment which included developing the company’s balanced scorecard and corporate Key Performance Indicators (KPI’s). Dr. Shamma received several awards of recognition for his achievements at Mobinil. He was especially recognized for presenting an in-depth prepaid market analysis and suggesting courses of actions and recommendations. His Ph. D. dissertation study – which was built on his prior experience – involved examining the corporate reputation of the major wireless operators in the U. S. s viewed by different stakeholder groups. Several of Dr. Shamma’s papers have been published in leading journals such as: the Journal of Product and Brand Management, International Journal of Marketing Studies and International Journal of Customer Relationship Marketing and Management among others. He was invited to contribute to a book chapter with the following paper: “A Multiple Hamed M. Shamma Dr Baalbaki has also contributed in the development of academic programs at universities in the Arab world, and has been consulted on higher-education development matters. Dr Baalbaki is serving as a member of the Arab Open University Board of Trustees since July 2010.

The Arab Open University is a pan-Arab university, affiliated with the Open University in London and with branches in five Arab counties so far. In addition to his work on this Arab World Edition of Marketing Management, Dr Baalbaki is also a co-author of the Arab World Edition of another Pearson Publishing leading title: Naresh Malhotra’s Marketing Research. The Office of Development at AUB is responsible for the fundraising efforts of the University and for its alumni relations. The University has two Development Offices, one in NY and one in Beirut. The NY Office area of responsibility extends over North America, while the Beirut Office covers the remainder of the world. Dr Baalbaki has been heading the Beirut Development Office since 2001.

In 2007, the American University of Beirut successfully completed a 5-year Campaign for Excellence which had an ultimate goal of $140 million by the date of the University’s 140th anniversary. Dr Baalbaki participated in the planning, implementation, and conclusion of what eventually evolved to be a record setting Campaign in all aspects (total donations, number of donations, number of donors, individual alumni participation, alumni chapter participation, and trustee participation). The Campaign surpassed its goal and raised more than $171 million, making it the largest university fund-raising campaign ever in the Arab Middle East. xi Stakeholder Perspective for Measuring Corporate Brand Equity: Linking Corporate Brand Equity with Corporate Performance. He also presented a variety of papers at leading international conferences such as the American Marketing Association Annual Conference, Academy of Marketing Science Annual Conference, Annual Macromarketing Conference and the Society for Marketing Advances Annual Conference among others. ” He received the best paper award for his paper “Customer Relationship Management in Professional Service Organizations: Factors Influencing CRM Adoption and Use in the Building Industry,” presented at the Annual Society for Marketing Advances Conference in 2006. He has taught a variety of courses including: marketing management, consumer behavior, marketing research, marketing strategy, marketing of services and has been a guest speaker to several others including: strategic brand management, advertising and promotion management and marketing information systems. Dr.

Shamma has also conducted training and consulting for several organizations in the areas of marketing strategy, consumer perceptions analysis and brand development and management. He consulted and provided training to various organizations such as: Ministry of Civil Aviation, Eva Pharma, Orange Labs, Goldman Sachs Women Entrepreneurship and Leadership, Management Center, the International Advertising Association (IAA), Chartered Institute of Marketing (CIM), the Future Generation Foundation, Prana for Self and Corporate Development and Artrac among many others. Dr. Shamma is a reviewer for the Journal of International Marketing, European Journal of Marketing, American Marketing Association Annual Conference and Society for Marketing Advances Annual Conference.

He is currently on the editorial board of the International Journal of Customer Relationship Marketing & Management. He is a member of American Marketing Association, Academy of Marketing Science and Society for Marketing Advances. He is a member of Global Trade Matters, a think tank for economic and political reform policy. Dr. Shamma is also a reviewer and contributor to various leading marketing textbooks worldwide. He is also an advisor and external examiner for MBA theses. He has served as a session chair and discussant for leading academic conferences in addition to being a speaker and moderator for various business conferences. x ii Brief Contents Part 1 Understanding Marketing Management Chapter 1 Chapter 2 Defining Marketing for The Arab World 000

Developing Marketing Strategies and Plans 000 Part 2 Capturing Marketing Insights Chapter 3 Chapter 4 Gathering Information and Scanning the Environment 000 Conducting Marketing Research and Forecasting Demand 000 Part 3 Connecting With Customers Chapter Chapter Chapter Chapter Creating Customer Value, Satisfaction, and Loyalty Analyzing Consumer Markets 000 Analyzing Business Markets 000 Identifying Market Segments and Targets 000 5 6 7 8 000 000 000 000 Part 4 Building Strong Brands Chapter 9 Chapter 10 Chapter 11 Creating Brand Equity 000 Crafting the Brand Positioning 000 Dealing With Competition 000 Part 5 Shaping the Market Offerings Chapter 12

Chapter 13 Chapter 14 Setting Product Strategy 000 Designing and Managing Services 000 Developing Pricing Strategies and Programs Part 6 Delivering Value Chapter 15 Chapter 16 Designing and Managing Integrated Marketing Channels Managing Retailing, Wholesaling, and Logistics 000 Part 7 Communicating Value Chapter 17 Designing and Managing Integrated Marketing Communications 000 Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations 000 Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling 000 Chapter 18 Chapter 19 000 000 000 000 000 000 Part 8

Creating Successful Long-Term Growth Chapter 20 Chapter 21 Chapter 22 Introducing New Market Offerings 000 Tapping Into Global Markets 000 Managing a Holistic Marketing Organization for the Long Run 000 000 appendix 000 Index 000 x iii Expanded Contents Part 1 Chapter 1 Understanding Marketing Management 000 Defining Marketing for The Arab World 000 The Importance of Marketing 000 Relationship Marketing 000 Integrated Marketing 000 Internal Marketing 000 Box 1. 2 Types of Marketing Organization 000 Performance Marketing 000 C a SE Etisalat 000 C a SE Al Shabrawy Arabiata 000 C a SE Safra Defensive Driving Academy 000 C a SE Xerox C a SE Ben & Jerry’s 000

The Scope of Marketing 000 What is Marketing? 000 What is Marketed? 000 C a SE Emirates Airline C a SE HSBC Bank 000 C a SE Mashreqbank 000 Box 1. 1 Improving CMO Success 000 Core Marketing Concepts 000 Needs, Wants, and Demands 000 Target Markets, Positioning, and Segmentation 000 000 Offerings and Brands 000 Value and Satisfaction 000 Marketing Channels 000 Supply Chain 000 Competition 000 Marketing Environment 000 The New Marketing Realities 000 Major Societal Forces 000 C a SE MAC Cosmetics Inc. 000 New Consumer Capabilities 000 C a SE KFC, Converse, Wm. Wrigley Jr. 000 New Company Capabilities 000 Company Orientation toward the Marketplace 000

The Production Concept 000 The Product Concept 000 The Selling Concept 000 The Marketing Concept 000 The Holistic Marketing Concept 000 M ar KE t ING MEM o Marketing Right and Wrong 000 x iv Marketing Management Tasks 000 M ar KE t ING MEM o Marketers’ Frequently Asked Questions 000 C a SE Al-Arabiyya 000 000 Who Markets? 000 Marketing in Practice 000 C a SE Carrefour 000 Developing Marketing Strategies and Plans 000 Capturing Marketing Insights 000 Connecting with Customers 000 Building Strong Brands 000 Shaping the Market Offerings 000 Delivering Value 000 Communicating Value 000 Creating Long-Term Growth 000 A Word about Marketing in the Arab World 000 Summary 000 pplications 000 M ar KE t ING E x CELLENCE Nike 000 Chapter 2 Developing Marketing Strategies and Plans 000 Marketing and Customer Value 000 The Value Delivery Process 000 C a SE Nike 000 The Value Chain 000 C a SE TE Data INC. 000 Core Competencies 000 C a SE Brownbag 000 Box 2. 1 Becoming a Vigilant Organization 000 C a SE Kodak 000 A Holistic Marketing Orientation and Customer Value 000 The Central Role of Strategic Planning 000 Corporate and Division Strategic Planning 000 Defining the Corporate Mission 000 Box 2. 2 Sample Mission Statements 000 Box 2. 3 Google’s Mission Statement and Philosophy 000 Establishing Strategic Business Units 000

Assigning Resources to Each SBU 000 Assessing Growth Opportunities 000 C a SE Starbucks C a SE Almarai 000 000 Organization and Organizational Culture 000 Marketing Innovation 000 Box 3. 1 Information Needs Probes 000 Internal Records and Marketing Intelligence 000 The Order-to-Payment Cycle 000 Sales Information Systems 000 Databases, Data Warehousing, and Data Mining 000 The Marketing Intelligence System 000 C a SE National Bank of Abu Dhabi 000 M ar KE t ING INSIGH t Digging for Information 000 Analyzing the Macroenvironment Needs and Trends 000 000 M ar KE t ING INSIGH t Creating Innovative Marketing 000 M ar KE t ING MEM o Trends Shaping the

Global Business Landscape 000 Business Unit Strategic Planning 000 The Business Mission 000 SWOT Analysis 000 C a SE Information International C a SE EgyNet 000 Goal Formulation 000 Strategic Formulation 000 C a SE Nestle Egypt 000 Program Formulation and Implementation 000 M ar KE t ING INSIGH t Marketing’s Contribution to Shareholder Value 000 Feedback and Control 000 Product Planning: The Nature and Contents of a Marketing Plan 000 000 Identifying the Major Forces 000 The Demographic Environment 000 Population Growth Trends 000 Population Age and Gender Mix 000 Ethnic, Religious, and Other Markets 000 Educational Groups 000 Household Patterns 000

Geographical Shifts in Population 000 Other Major Macroenvironments 000 Economic Environment 000 M ar KE t ING INSIGH t It’s All in the Family 000 Sociocultural Environment 000 Natural Environment 000 Marketing M EM o Marketing Plan Criteria 000 C a SE Toyota Prius 000 Sample Marketing Plan: The A Hotel 000 M ar KE t ING INSIGH t Green Marketing 000 Summary 000 applications 000 M ar KE t ING E x CELLENCE Intel 000 Part 2 Chapter 3 Capturing Marketing Insights 000 Gathering Information and Scanning the Environment 000 Components of a Modern Marketing Information System 000 Technological Environment 000 Political-Legal Environment 000 C a SE Agility 000

Summary 000 applications 000 M ar KE t ING E x CELLENCE Google Chapter 4 000 Conducting Marketing Research and Forecasting Demand 000 Coca-Cola’s Historic Mistake 000 The Marketing Research System 000 xv The Marketing Research Process 000 Step 1: Define the Problem, the Decision Alternatives, and the Research Objectives 000 Step 2: Develop the Research Plan 000 C a SE InfoPro Research 000 C a SE TNS Global 000 M ar KE t ING INSIGH t Conducting Informative Focus Groups 000 M ar KE t ING MEM o Questionnaire Dos and Don’ts 000 M ar KE t ING INSIGH t Getting into Consumers’ Heads with Qualitative Research 000 M ar KE t ING INSIGH t Understanding Brain

Science 000 Step 3: Collect the Information 000 M ar KE t ING MEM o Pros and Cons of Online Research 000 C a SE Yahoo! Maktoob Research 000 Step 4: Analyze the Information 000 Step 5: Present the Findings 000 Step 6: Make the Decision 000 Overcoming Barriers to the Use of Marketing Research 000 Measuring Marketing Productivity 000 Marketing Metrics 000 Marketing-Mix Modeling 000 Marketing Dashboards 000 Box 4. 1 Sample Customer-Performance Scorecard Measures 000 M ar KE t ING INSIGH t Marketing Dashboards to Improve Effectiveness and Efficiency 000 Part 3 Connecting With Customers 000 Chapter 5 Creating Customer Value, Satisfaction, and Loyalty 000

Building Customer Value, Satisfaction, and Loyalty 000 Customer Perceived Value 000 Box 5. 1 Top 20 Brands in Customer Loyalty 000 C a SE Abu Dhabi International Airport 000 Total Customer Satisfaction C a SE Joie de Vivre 000 000 Monitoring Satisfaction 000 M ar KE t ING INSIGH t Wataniya Airways and Customer Satisfaction 000 Product and Service Quality 000 Maximizing Customer Lifetime Value 000 Customer Profitability 000 Measuring Customer Lifetime Value 000 M ar KE t ING MEM o Calculating Customer Lifetime Value 000 Cultivating Customer Relationships 000 Customer Relationship Management 000 M ar KE t ING INSIGH t Company Response to Customer Empowerment 000

C a SE Al-Ahram Beverage Company 000 Attracting and Retaining Customers C a SE Commercial Bank of Qatar 000 000 Building Loyalty 000 Box 5. 2 Forming Strong Customer Bonds 000 Forecasting and Demand Measurement 000 The Measures of Market Demand 000 A Vocabulary for Demand Measurement 000 Estimating Current Demand 000 Estimating Future Demand 000 M ar KE t ING MEM o Creating Customer Evangelists 000 C a SE Bayt. com C a SE Harley-Davidson 000 000 C a SE Hershey Co. 000 C a SE Apple 000 Summary 000 applications 000 x vi C a SE EFG-Hermes M ar KE t ING E x CELLENCE Maatouk 1960 000 C a SE British Broadcasting Corporation 000 Win-Backs 000 000 Customer Databases and Database

Marketing 000 Customer Databases 000 Data Warehouses and Datamining 000 The Downside of Database Marketing and CRM 000 Summary 000 applications 000 M ar KE t ING E x CELLENCE Vodafone 000 Problem Recognition 000 Information Search 000 Evaluation of Alternatives 000 C a SE TetraPak 000 Purchase Decision 000 Postpurchase Behavior 000 Other Theories of Consumer Decision Making 000 Level of Consumer Involvement 000 Decision Heuristics and Biases 000 M ar KE t ING INSIGH t How Consumers Really Make Decisions 000 Chapter 6 Analyzing Consumer Markets What Influences Consumer Behavior? Cultural Factors 000 000 000 Box 6. 1 Arab Consumers’ Spending on Durables 000

M ar KE t ING INSIGH t Shopping Malls in the Arab World 000 M ar KE t ING MEM o Decision Traps 000 Mental Accounting 000 Profiling the Customer Buying-Decision Process 000 Summary 000 applications 000 M ar KE t ING E x CELLENCE Ikea 000 M ar KE t ING INSIGH t The Arab Women’s Market 000 M ar KE t ING INSIGH t Marketing to Cultural Market Segments 000 000 C a SE Virgin Megastore 000 C a SE General Motors 000 C a SE India’s “Gen Next” 000 Systems Buying and Selling 000 000 Key Psychological Processes 000 Motivation: Freud, Maslow, Herzberg 000 C a SE Toyota 000 Perception 000 Learning 000 Memory 000 C a SE Chipsy Buying Situations 000 C a SE RIC 000 000

C a SE Indomie Noodles M ar KE t ING INSIGH t Big Sales to Small Business 000 C a SE Cisco 000 Personal Factors 000 C a SE Lohas Analyzing Business Markets 000 What Is Organizational Buying? 000 The Business Market versus the Consumer Market 000 Social Factors 000 C a SE Chrysler Chapter 7 000 The Buying Decision Process: The Five-Stage Model 000 Box 6. 2 Understanding Consumer Behavior 000 M ar KE t ING MEM o Maximizing Customer References 000 C a SE Japan and Indonesia 000 C a SE Saudi Oger 000 Participants in the Business Buying Process 000 The Buying Center 000 Buying Center Influences 000 C a SE General Motors 000 Buying Center Targeting C a SE Karl Storz 00 000 x vii The Purchasing/Procurement Process 000 Purchasing Department Perceptions 000 Bases for Segmenting Consumer Markets 000 Geographic Segmentation 000 C a SE McDonald’s C a SE TSC – The Sultan Center 000 Purchasing Organization and Administration 000 Stages in the Buying Process 000 Problem Recognition 000 General Need Description and Product Specification 000 Supplier Search 000 C a SE Tijari 000 C a SE Zawya. com 000 Proposal Solicitation 000 Supplier Selection 000 Demographic Segmentation C a SE Four Seasons 000 000 000 C a SE Dove 000 C a SE First National Bank 000 M ar KE t ING INSIGH t Trading Up (and Down): the New Consumer 000

M ar KE t ING INSIGH t Marketing to Generation Y 000 Psychographic Segmentation 000 M ar KE t ING MEM o Developing Compelling Customer Value Propositions 000 C a SE TNS 000 Order-Routine Specification 000 Performance Review 000 Managing Business-to-Business Customer Relationships 000 The Benefits of Vertical Coordination 000 Box 8. 1 Major Segmentation Variables for Business Markets 000 M ar KE t ING INSIGH t Establishing Corporate Trust and Credibility 000 Business Relationships: Risks and Opportunities 000 Institutional and Government Markets 000 Behavioral Segmentation 000 Bases for Segmenting Business Markets 000 Market Targeting 000 Effective Segmentation Criteria 000

Evaluating and Selecting the Market Segments 000 C a SE Starwood Hotels & Resorts Additional Considerations 000 C a SE Dubai Customs 000 C a SE PepsiCo 000 C a SE Desert Diamond 000 Summary 000 applications 000 Summary 000 applications 000 M ar KE t ING E x CELLENCE General Electric 000 Chapter 8 Identifying Market Segments and Targets 000 Levels of Market Segmentation 000 Segment Marketing 000 Niche Marketing 000 Local Marketing 000 Individual Marketing 000 M ar KE t ING INSIGH t Chasing the Long Tail 000 x viii 000 C a SE Stuck on You 000 M ar KE t ING E x CELLENCE HSBC 000 Part 4 Building Strong Brands 000 Chapter 9 Creating Brand Equity 000

What Is Brand Equity? 000 The Role of Brands 000 C a SE DHL 000 C a SE Allianz Group Egypt 000 The Scope of Branding 000 Defining Brand Equity 000 Box 9. 1 Marketing Advantages of Strong Brands 000 C a SE Apple Computer 000 Brand Equity as a Bridge 000 C a SE Burger King 000 Brand Equity Models 000 Building Brand Equity 000 Choosing Brand Elements 000 C a SE The Egyptian Tax Authority 000 Designing Holistic Marketing Activities 000 C a SE Eli Lilly 000 M ar KE t ING E x CELLENCE Procter & Gamble 000 Chapter 10 Crafting the Brand Positioning 000 Developing and Communicating a Positioning Strategy 000 Competitive Frame of Reference 000 C a SE Crepaway 000

C a SE Savola Group 000 Leveraging Secondary Associations 000 C a SE Fawaz Alhokair and Company (JSC), Global Brands Group, and FIFA 000 Measuring Brand Equity 000 M ar KE t ING INSIGH t The Brand Value Chain 000 Brand Valuation 000 Managing Brand Equity 000 Brand Reinforcement 000 M ar KE t ING INSIGH t What is a Brand Worth? 000 C a SE Volvo Summary 000 applications 000 Points-of-Difference and Points-of-Parity 000 C a SE Visa versus American Express 000 Establishing Category Membership 000 C a SE Umpqua Bank 000 C a SE BMW 000 Choosing POPs and PODs 000 Creating POPs and PODs 000 M ar KE t ING MEM o Writing a Positioning Statement 000 Box 10. Examples of Negatively Correlated Attributes and Benefits 000 C a SE Roadster Diner 000 000 Brand Revitalization 000 C a SE Harley-Davidson C a SE Mountain Dew 000 000 Devising a Branding Strategy 000 Branding Decisions 000 Brand Extensions 000 Box 9. 2 Selecting a Brand Relationship Spectrum Position 000 C a SE Groupe Michelin, Goodyear 000 Differentiation Strategies 000 M ar KE t ING MEM o How to Derive Fresh Consumer Insights to Differentiate 000 C a SE Aishti 000 Product Life-Cycle Marketing Strategies 000 Product Life Cycles 000 Style, Fashion, and Fad Life Cycles 000 C a SE Sabek Wa Lahek 000 Marketing Strategies: Introduction Stage and the Pioneer Advantage 000 Box 9. Research Insights on Brand Extensions 000 C a SE Wikipedia. org, Citizendium. org 000 C a SE Bic 000 C a SE AthenaHealth Inc. Brand Portfolios C a SE Armani 000 000 Customer Equity 000 M ar KE t ING MEM o Twenty-First-Century Branding 000 Marketing Strategies: Growth Stage 000 000 C a SE Yahoo! 000 Marketing Strategies: Maturity Stage 000 M ar KE t ING INSIGH t Competitive Category Dynamics 000 C a SE Electrolux AB 000 x ix B ox 10. 2 Alternative Ways to Increase Sales Volume 000 C a SE Coca-Cola 000 Marketing Strategies: Decline Stage 000 Evidence on the Product Life-Cycle Concept 000 Critique of the Product Life-Cycle Concept 000 Market Evolution 000

C a SE Tarek Nour Communications 000 Expanding Market Share 000 Other Competitive Strategies 000 Market-Challenger Strategies 000 C a SE Search Engines 000 Market-Follower Strategies 000 M ar KE t ING MEM o Making Smaller Better 000 M ar KE t ING MEM o How to Build a Breakaway Brand 000 C a SE EIPICO 000 C a SE Paper Towels 000 C a SE Al Kharafi Group Summary 000 applications 000 C a SE Arab Pharmacetical Glass Co. M ar KE t ING E x CELLENCE UPS 000 Market-Nicher Strategies 000 000 C a SE Sana Fashion Store 000 000 M ar KE t ING MEM o Niche Specialist Roles 000 Chapter 11 Dealing With Competition 000 Competitive Forces 000 Identifying Competitors 000

C a SE Etisalat Egypt 000 C a SE Ceramica Cleopatra 000 Analyzing Competitors Strategies 000 000 M ar KE t ING INSIGH t High Growth Through Value Innovation 000 Balancing Customer and Competitor Orientations 000 Competitor-Centered Companies 000 Customer-Centered Companies 000 Summary 000 applications 000 M ar KE t ING E x CELLENCE DAMAS 000 Part 5 Shaping the Market Offerings 000 Objectives 000 Box 11. 1 Key Principles of Blue-Ocean Strategy 000 Strengths and Weaknesses 000 M ar KE t ING MEM o Benchmarking to Improve Competitive Performance 000 Selecting Competitors 000 Selecting Customers 000 Competitive Strategies for Market Leaders 000 C a SE Gap 000

M ar KE t ING INSIGH t When your Competitor Delivers More for Less 000 Expanding the Total Market 000 Defending Market Share 000 C a SE Air Arabia 000 xx Chapter 12 Setting Product Strategy 000 Product Characteristics and Classifications 000 Product Levels: The Customer-Value Hierarchy 000 M ar KE t ING INSIGH t Metamarkets and Metamediaries 000 C a SE Saudi Paper Manufacturing Company 000 Product Classifications 000 Differentiation 000 Product Differentiation 000 C a SE Lego 000 C a SE Mercedes-Benz Design 000 000 C a SE NoDust 000 Categories of Service Mix 000 Services Differentiation 000 C a SE Hydra Properties C a SE Acer 000 Distinctive Characteristics of Services 000 000 C a SE Costco Wholesale Corp. 000

Product and Brand Relationships 000 The Product Hierarchy 000 Product Systems and Mixes 000 Product-Line Analysis 000 Product-Line Length 000 M ar KE t ING INSIGH t When Less is More 000 C a SE Rotana Hotel 000 C a SE Hamil Al Musk 000 C a SE VW 000 Product-Mix Pricing 000 C a SE Vodafone Qatar Q. S. C 000 Co-Branding and Ingredient Branding 000 C a SE Moroccanoil C a SE DuPont Box 13. 1 High Impact Online Customer-Service Projects 000 000 C a SE Mashaweer 000 000 Marketing Strategies for Service Firms 000 A Shifting Customer Relationship 000 M ar KE t ING MEM o Recommendations for Improving Service Quality 000 C a SE JetBlue 000 Holistic Marketing for Services 000

Box 13. 2 Factors Leading to Customer Switching Behavior 000 C a SE Singapore Airlines (SIA) 000 C a SE Dubai Smile Dental Center 000 C a SE Charles Schwab 000 Managing Service Quality 000 Customer Expectations 000 000 C a SE Ritz-Carlton Hotels 000 M ar KE t ING MEM o Making Ingredient Branding Work 000 Packaging, Labeling, Warranties, and Guarantees 000 Packaging 000 Labeling 000 C a SE Kazouza 000 Warranties and Guarantees 000 C a SE Toshiba El Araby C a SE Grand Royal 000 C a SE Shoes for Crews 000 Summary 000 applications 000 M ar KE t ING E x CELLENCE Toyota 000 C a SE Kempinski Hotel Mall of the Emirates 000 Box 13. 3 Servqual Attributes 000

M ar KE t ING INSIGH t The Role of Expectations in Service-Quality Perceptions 000 M ar KE t ING MEM o Assessing E-Service Quality 000 Best Practices of Service-Quality Management 000 C a SE Raya Contact Center C a SE Hotel Front Desks 000 000 M ar KE t ING INSIGH t Developing Customer Interface Systems 000 Chapter 13 Designing and Managing Services 000 The Nature of Services 000 Service Industries Are Everywhere 000 C a SE Luxury Automobiles 000 C a SE Mobinil 000 C a SE Saudi Aramco 000 Managing Service Brands 000 Differentiating Services 000 x xi C a SE Etihad Airways 000 Developing Brand Strategies for Services 000 C a SE Cirque du Soleil 000 Box 13. 4 Flying High without a Net: Cirque u Soleil’s Formula for Creative Success 000 Managing Product-Support Services 000 Identifying and Satisfying Customer Needs 000 Box 13. 5 Service Strategies for Product Companies 000 Postsale Service Strategy 000 Box 13. 6 Top 25 Companies Providing Superior Customer Service 000 Summary 000 applications 000 Chapter 14 Developing Pricing Strategies and Programs 000 Understanding Pricing 000 A Changing Pricing Environment 000 How Companies Price 000 M ar KE t ING INSIGH t Giving It All Away 000 Consumer Psychology and Pricing 000 C a SE Dalydress versus Fabulous 000 Box 14. 2 Possible Consumer Reference Prices 000 C a SE Consumer Electronics 000 000 Box 14. Consumer Perceptions versus Reality for Cars 000 C a SE Azza Fahmy 000 Setting the Price 000 Step 1: Selecting the Pricing Objective 000 C a SE IKEA C a SE Choice x xii 000 000 C a SE The Museum of Islamic Art (MIA) 000 000 Box 14. 4 Factors Leading to Less Price Sensitivity 000 Step 3: Estimating Costs 000 Step 4: Analyzing Competitors’ Costs, Prices, and Offers 000 Step 5: Selecting a Pricing Method 000 C a SE Markup Pricing in Tunisian Manufacturing Industries 000 C a SE Carrefour Egypt 000 Step 6: Selecting the Final Price 000 M ar KE t ING INSIGH t Stealth Price Increases 000 Adapting the Price 000 Geographical Pricing (Cash, Countertrade, Barter) 000 C a SE Procter & Gamble

M ar KE t ING E x CELLENCE Emirates Airline 000 C a SE Sarah’s Bag Step 2: Determining Demand 000 Price Discounts and Allowances 000 Box 14. 5 Price Discounts and Allowances 000 C a SE Bloomberg LP 000 Promotional Pricing 000 Differentiated Pricing 000 C a SE Al-Ahly Club 000 Initiating and Responding to Price Changes 000 Initiating Price Cuts 000 Initiating Price Increases 000 Responding to Competitors’ Price Changes 000 C a SE Air Arabia 000 M ar KE t ING MEM o How to Fight Low-Cost Rivals 000 Summary 000 applications 000 M ar KE t ING E x CELLENCE eBay 000 Part 6 Delivering Value 000 Chapter 15 Designing and Managing Integrated Marketing Channels 000

Marketing Channels and Value Networks 000 The Importance of Channels 000 C a SE Intel Inside 000 Channel Development 000 C a SE Dell 000 Hybrid Channels 000 Understanding Customer Needs 000 Value Networks 000 The Role of Marketing Channels 000 Box 15. 1 Channel Member Functions 000 Channel Functions and Flows 000 Channel Levels 000 Service Sector Channels 000 C a SE Arab Open University 000 Channel-Design Decisions 000 Analyzing Customers’ Desired Service Output Levels 000 Establishing Objectives and Constraints 000 Identifying and Evaluating Major Channel Alternatives 000 Box 15. 2 Channel Alternatives for a Cellular Car Phone Accessory Manufacturer 000

C a SE McDonald’s McDelivery Service in Bahrain 000 C a SE Beesline 000 Evaluating the Major Alternatives 000 Channel-Management Decisions 000 Selecting Channel Members 000 Training and Motivating Channel Members 000 Evaluating Channel Members 000 Modifying Channel Design and Arrangements 000 C a SE Apple Stores 000 Channel Integration and Systems 000 Vertical Marketing Systems 000 M ar KE t ING INSIGH t The Importance Of Channel Stewards 000 Horizontal Marketing Systems 000 C a SE HDFC Bank 000 Integrating Multichannel Marketing Systems 000 M ar KE t ING MEM o Multichannel Shopping Checklist 000 Conflict, Cooperation, and Competition 000 Types of Conflict and Competition 000

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