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ANALYZING BUSINESS MARKETS | CHAPTER 7 211 the business market and the business buying process, putting itself in the shoes of its business customers. Consider its approach to pricing its aircraft engines. GE knows that purchasing an aircraft engine is a multimillion-dollar expenditure, and one that doesn’t end with the purchase. Customers (the airlines) face substantial maintenance costs to meet FAA guidelines and ensure reliability of the engines. So in 1999, GE pioneered a new pricing option called “Power by the Hour.” This concept gives customers an opportunity to pay a fixed fee each time they run the engine. In return, GE performs all the maintenance and guarantees the engine’s reliability. When demand for air travel is uncertain, “Power by the Hour” provides GE’s customers with a lower cost of ownership. This kind of B-to-B marketing savvy has helped GE cement its top position in the Financial Times’s “World’s Most Respected Companies” survey for years. Its understanding of the business markets, its way of doing business, and its brand marketing have kept GE’s brand equity growing. Indeed, its brand equity was ranked fourth and valued at $48 billion in the 2009 Interbrand/ BusinessWeek ranking of the “Top 100 Global Brands.” “The GE brand is what connects us all and makes us so much better than the parts,” Chief <strong>Marketing</strong> Officer Comstock said. Questions 1. Discuss the importance of B-to-B marketing and a strong B-to-B brand to GE. 2. Have “Imagination at Work,” “Ecomagination,” and “Healthymagination” successfully communicated GE’s focus on its newer endeavors? Why or why not? Sources: Geoffrey Colvin, “What Makes GE Great?” Fortune, March 6, 2006, pp. 90–104; Thomas A. Stewart, “Growth as a Process,” Harvard Business Review, June 2006, pp. 60–70; Kathryn Kranhold, “The Immelt Era, Five Years Old, Transforms GE,” Wall Street Journal, September 11, 2006; Daniel Fisher, “GE Turns Green,” Forbes, August 15, 2005, pp. 80– 85; John A. Byrne, “Jeff Immelt,” Fast Company, July 2005, pp. 60–65; Rachel Layne, “GE’s NBC Sale Brings Immelt Cash, Scrutiny,” BusinessWeek, December 3, 2009.
212 PART 3 CONNECTING WITH CUSTOMERS Chapter 8 In This Chapter, We Will Address the Following Questions 1. What are the different levels of market segmentation? 2. In what ways can a company divide a market into segments? 3. What are the requirements for effective segmentation? 4. How should business markets be segmented? 5. How should a company choose the most attractive target markets? Club Med has gone upscale to target new market segments.
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Marketing Management 14 PHILIP KOTL
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This book is dedicated to my wife a
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Kevin Lane Keller is widely recogni
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Contents Preface PART 1 CHAPTER 1 x
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Maximizing Customer Lifetime Value
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PART 5 Expanding Total Market Deman
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CHAPTER 16 Managing Retailing, Whol
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Managing the Development Process: C
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even part of the marketing vocabula
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• Interactive Elements—A wealth
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We are indebted to the following co
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Marketing Management
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Defining Marketing for the 21st Cen
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DEFINING MARKETING FOR THE 21ST CEN
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Developing Marketing Strategies and
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DEVELOPING MARKETING STRATEGIES AND
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Collecting Information and Forecast
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COLLECTING INFORMATION AND FORECAST
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Conducting Marketing Research Good
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CONDUCTING MARKETING RESEARCH | CHA
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Creating Long-term Loyalty Relation
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CREATING LONG-TERM LOYALTY RELATION
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Analyzing Consumer Markets The aim
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ANALYZING CONSUMER MARKETS | CHAPTE
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CREATING BRAND EQUITY | CHAPTER 9 2
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Crafting the Brand Positioning No c
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CRAFTING THE BRAND POSITIONING | CH
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Competitive Dynamics To be a long-t
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COMPETITIVE DYNAMICS | CHAPTER 11 3
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Setting Product Strategy At the hea
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SETTING PRODUCT STRATEGY | CHAPTER
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Designing and Managing Services As
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DESIGNING AND MANAGING SERVICES | C
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Developing Pricing Strategies and P
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Designing and Managing Integrated M
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DESIGNING AND MANAGING INTEGRATED M
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Managing Retailing, Wholesaling, an
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Designing and Managing Integrated M
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Managing Mass Communications: Adver
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MANAGING MASS COMMUNICATIONS | CHAP
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Managing Personal Communications: D
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MANAGING PERSONAL COMMUNICATIONS |
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Introducing New Market Offerings Ne
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INTRODUCING NEW MARKET OFFERINGS |
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Tapping into Global Markets With ev
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Managing a Holistic Marketing Organ
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MANAGING A HOLISTIC MARKETING ORGAN
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APPENDIX | CHAPTER 22 653 • Marke
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APPENDIX | CHAPTER 22 655 Step 1: I
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APPENDIX | CHAPTER 22 657 keeping a
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Appendix SONIC MARKETING PLAN AND E
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Targeted Segment Customer Need Corr
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Samsung Galaxy S - Captivate Apple
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in February. Also, we will create b
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Chapter 4 Your next task is to cons
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• As a start-up company, what com
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Chapter 20 Knowing that the smart p
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Endnotes Chapter 1 1. Michael Learm
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Harvard Business School Press, 2004
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30. Queena Sook Kim, “Fisher-Pric
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Tabor, “Contributing Factors; Sev
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29. For an empirical comparison of
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75. Michael D. Johnson, and Fred Se
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Perspectives in Consumer Behavior (
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Theory and Measurement (New York: J
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25. Piet Levy, “Reeling in the Hu
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Chapter 8 1. Jonathan Schneider,
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57. Jerry Harkavy, “Colgate Buyin
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in-depth examination of how brand n
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79. John Milewicz and Paul Herbig,
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22. Kerry Capell, “Thinking Simpl
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29. Theodore Levitt, “Innovative
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Chapter 12 1. John Frank, “Beep!
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Room for Growth in Printer Market,
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23. W. Earl Sasser, “Match Supply
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Jaishankar Ganesh, Mark J. Arnold,
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Cosmetics,” Journal of Economic P
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72. For an interesting discussion o
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29. “Nike Says No to Blue-Light S
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80. Susan Fournier and Lara Lee,
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43. Ben Paynter, “Happy Hour,”
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22. Michael R. Solomon, Consumer Be
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Tribune, May 12, 2007; Avery Johnso
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Split Cable T.V. Advertising Experi
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29. Julia Angwin and Tom McGinty,
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Marketing?” Marketing NPV 3 (2006
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9. Stefan Wuyts, Shantanu Dutta, an
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Innovations,” Journal of Marketin
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89. Jordan Robertson, “How Nike G
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41. For some research method issues
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Global Strategies: A Contingency Mo
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Takes on Coffee Giants Cup by Cup,
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Metrics: 50+ Metrics Every Executiv
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Glossary A activity-based cost (ABC
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customer lifetime value (CLV) the n
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J jobbers small-scale wholesalers w
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personal communications channels tw
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target market the part of the quali
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Image Credits Chapter 1 page 2: New
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Free; page 619: Lou Linwei/Alamy Im
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Index Name Aaker, David A., 203 Aak
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McCausland, Tom, 7 McDonald, Bob, 6
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Andersen Consulting, 208, 209 Andro
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Disney Channel, 44, 178, 179 Disney
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IKEA, 5, 35, 37, 83, 179-80, 219, 2
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Nordstrom Rack, 148 North American
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StubHub, 73, 74, 412 Suave, 306 Sub
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African Americans, 77, 224 Age in d
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Channel integration and systems, 41
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Customer relationship in services,
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Family of procreation, 154 Farm pro
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Legal issues in advertising campaig
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Master brand, 260 Master franchisee
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Price, selecting final, 402-3 compa
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Retail sector, 356 Retail store, de
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Telemarketers, 558 Telemarketing, 5
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