Marketing_Management_14th_Edition-min

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COMPETITIVE DYNAMICS | CHAPTER 11 323 up new channels of distribution through companies like Sears and ComputerLand. However, its decision to outsource components of the PC to companies like Microsoft and Intel marked the end of IBM’s monopoly in computing. During the 1980s, its market share and profits eroded as the PC revolution changed the way consumers viewed and bought technology. IBM’s sales dropped from $5 billion in the early 1980s to $3 billion by 1989. The dip continued into the early 1990s when IBM felt pressure from Compaq and Dell and attempted to split the company into smaller business units to compete. The results were disastrous, and IBM posted net losses of $16 billion between 1991 and 1993. Things turned around when a new CEO, Louis Gerstner, refocused the company in a new strategic direction. Gerstner reconnected the company’s business units, shed its commodity products, and focused on highmargin businesses like consulting and middleware software. IBM then introduced the iconic ThinkPad, which helped regain lost share. To rebuild its brand image, the firm consolidated its marketing efforts from 70 advertising agencies to 1 and created a consistent, universal message. In 1997, IBM’s chess-playing computer system, Deep Blue, also helped lift IBM’s brand image by defeating the world’s reigning chess champion in a historic event that captured the attention of millions. At the turn of the 21st century, IBM’s newest CEO, Samuel Palmisano, led IBM to new levels of success in the wake of the dot-com bust. He moved the company further away from hardware by selling its ThinkPad division to Lenovo and exiting disk drives. In addition, Palmisano embraced global consulting and data analytics by acquiring close to 100 firms, including PricewaterhouseCoopers. IBM now focuses on solving the world’s most challenging high-tech problems, such as better water management, lower traffic congestion, and collaborative health care solutions. Its most recent campaign, entitled “Smarter planet,” highlights a few of the company’s accomplishments to date and explores IBM’s ideas for the future. Palmisano explained, “We are looking at huge problems that couldn’t be solved before. We can solve congestion and pollution. We can make the grids more efficient. And quite honestly, it creates a big business opportunity.” Today, IBM is the largest and most profitable information technology company in the world, with over $103 billion in sales and 388,000 employees worldwide. It employs scientists, engineers, consultants, and sales professionals in over 170 countries and holds more patents than any other U.S.- based technology company. From 2000 to 2008, IBM spent over $50 billion on R&D; and approximately 30 percent of its annual R&D budget goes toward long-term research. Questions 1. Few companies have had such a long history of ups and downs as IBM. What were some of the keys to its recent success? Can its plans to solve some of the world’s most challenging problems succeed? Why or why not? 2. Who are IBM’s biggest competitors today, and what risks do they face with their current strategy? Sources: Steve Lohr, “IBM Showing That Giants Can Be Nimble,” New York Times, July 18, 2007; Jeffrey M. O’Brien, “IBM’s Grand Plan to Save the Planet,” Fortune, April 21, 2009; “IBM Archives,” IBM, www.ibm.com; Louis V. Gerstner Jr., Who Says Elephants Can’t Dance? Inside IBM’s Historic Turnaround (New York: Harper Business, 2002).
PART 5 Shaping the Market Offerings Chapter 12 | Setting Product Strategy Chapter 13 | Designing and Managing Services Chapter 14 | Developing Pricing Strategies and Programs Chapter 12 In This Chapter, We Will Address the Following Questions 1. What are the characteristics of products, and how do marketers classify products? This trade show debut in Shanghai, China, in April 2009 was part of the global launch of the highly anticipated Ford Fiesta world car. 2. How can companies differentiate products? 3. Why is product design important and what factors affect a good design? 4. How can a company build and manage its product mix and product lines? 5. How can companies combine products to create strong co-brands or ingredient brands? 6. How can companies use packaging, labeling, warranties, and guarantees as marketing tools?
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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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Analyzing Business Markets Business
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Identifying Market Segments and Tar
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IDENTIFYING MARKET SEGMENTS AND TAR
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Creating Brand Equity One of the mo
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CREATING BRAND EQUITY | CHAPTER 9 2
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DESIGNING AND MANAGING SERVICES | C
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Developing Pricing Strategies and P
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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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TAPPING INTO GLOBAL MARKETS | CHAPT
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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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