As a continuation from the attached documents and using Chick-fil-A as the business for discussion and using a minimum of at least 5 scholarly resources (in addition to the Bible), and the attached e-textbook must be used. Submit a 650-word recommendations document (12-point Times New Roman font, double spaced), based on information gathered over the course of the session while completing the project installments. A minimum of five strategic and five operational recommendations must be offered. The student will add scriptural integration throughout the recommendations, quoting relevant scripture verses as appropriate. There must be a minimum of 10 relevant scriptural quotes found throughout the recommendations document, with their relevance to the recommendations explained. The 650-word requirement does not include the title page, scriptural quotes, or references.
The recommendations document must include a title page, a brief introduction delineating the recommendations, and a separate section (with heading) for each recommendation.
Running head: MARKETING III 1
MARKETING III 2
Chick-fil-A has developed and improved customer-focused product plan which highly relies on excellent tasting and good quality products. This product plan can be explained as follows; Chick-fil-A is a well-known fast food chain in the United States that serves chicken sandwiches. The fast-food chain offers a whole menu, from breakfast to dinner, as part of its marketing mix strategy. Sandwiches, bagels, eggs, and biscuits are just some of the items on the breakfast menu at Chick-fil-A. Salad dressings and sauces are also available. Nuggets and other kid-friendly fare can be found in a separate part of the menu. Health-conscious shoppers can choose from a wide variety of salads. Chick-fil-A also has two methods of product plan that it uses; the permanent product plan and the temporary product plan.
Chick-Fil-A is in the Product Life Cycle Growth stage. The company’s ongoing sales growth is one of the key reasons Chick-Fil-A is in the Growth stage. Since 1967, when the first Chick-Fil-A opened, sales have been steadily increasing. Massive competition from restaurants such as KFC, Popeye’s and McDonalds is also another reason. Chick-fil-A is also facing competition from eateries like Burger King and Sonic. Chick-fil-A is trying to improve market share in both markets to maintain growth. The business is increasing store locations and introducing new products to the menu to help boost sales and market share during the PLC’s growth period. Lastly the growing demand for the organizations products which has prompted increase in production is another evidence that Chick-fil-A is in the growth stage.
Some viable techniques of building the equity of the Check-fil-A brand include: Building massive brand awareness through excellent customer services. This ensures that clients recognize the brand identity of the organization whenever they are searching for either goods or services and that their perception of the brand is as it was intended by the organization. Another technique is communicating the what the brand means and what it stands for by promoting positive clients’ feelings and judgments (Kang, 2016). This will ensure customers have a warm feeling towards the organization’s product and are therefore more likely to be loyal and pass the word on. Lastly, building a strong bond of loyalty with their clients is a very powerful aspect of brand equity in Chick-fil-A, though this is difficult to attain. Loyal customers make repeat purchases because they have a positive bond with their brand. Others even act as the brand ambassadors of the Chick-fil-A products.
Chick-fil-A recently made a decision to create a compelling brand by working on a new advertising model, ‘cows-plus’ marketing strategy which is designed in a way that it will rely less on its iconic mascots. The main aim of this new marketing strategy is to amplify the brands message by connecting and building relationships with new and existing customers. It will also massively support the growth of the brand nationwide. The recent decision to introduce a brand new membership tier, the Chick-fill-A One Signature Status which is a step above the existing Chick-fill-A One Red Status is significant in selling the brand of the company widely (Kang, 2016). Other recent branding decisions introduced include the new reward and bonus challenges which are important in strengthening the organization’s brand.
Chick-fil-A organization has made efforts to retain their customer satisfaction, loyalty and retention. They have achieved this by always striving to provide the excellent customer service for their clients. By doing these, they are able to retain and satisfy their customers. Chick-fil-A is also constantly gathering customer’s feedback. In this way, they ensure their customers’ satisfaction by asking them. This strategy enables them to understand the improvements required to ensure best services to their clients therefore retaining them. Lastly, Chick-fil-A has implemented a loyalty program for its loyal customers. The rewards and bonus challenges are significant in expanding how they thank their loyal customers (Leary et al., 2021). Customers are given an opportunity to win amazing prizes including tickets to visit the Chick-fil-A college football hall of fame. In this way, they are able to retain their customers, and even make them feel satisfied.
Johnston, M. W., & Marshall, G. W. (2019). Marketing Management. McGraw-Hill. 3 rd Edition. https://www.acetermpaper.com/wp-content/uploads/2021/04/eBook-PDF-Marketing-Management-3rd-Edition-by-Greg-Marshall.pdf
Kang, D. (2016). Turning inside out: perceived internal branding in customer-firm relationship building. Journal Of Services Marketing, 30(4), 462-475. https://doi.org/10.1108/jsm-07-2015-0229
Leary, R., Burnham, T., & Montford, W. (2021). The effects of implicit firm theory on customer engagement and firm-related judgments. Journal of Consumer Marketing, 38(7), 751-765. https://doi.org/10.1108/jcm-06-2020-3926
Running head: MARKETING III
Running head: MARKETING III 1
Q1. Provide a description of the product/service and a brief history of the firm.
1946 was the year when Truett Cathy founded the Dwarf Grill, before rebranding it as the Dwarf House and later to Chick-Fil-A in Atlanta. In this same year, Cathy created the company’s recipe (chicken sandwich). In 1984, the headquarters of this firm were established in Atlanta, just before opening a stand-alone eatery in 1986 (Chick-Fil-A, 2021). The company started its first campaign in 1995 and in 1996, it started sponsoring a bowl game. The firm’s sales surpassed two billion dollars in 2006, while it became a billion-dollar brand. Chick-Fil-A’s main products include chicken and poultry products, including scrambled burritos and waffle fries.
Q2. Explain your current or possible global marketing efforts.
The firm’s efforts to expand globally are built upon the expansion of its menu, which only revolves around chicken products. Given the limited nature of its goods, which has hindered it from expanding into other regions, the company has opted to broaden its menu to include items such as waffle fries. Therefore, Chick-Fil-A has been tirelessly working to retain and attract more clients from around the globe.
Q3. Explain the organization’s mission. Provide its mission statement or create one if necessary.
Chick-Fil-A’s mission statement illustrates the need for the firm to be the best quick-service restaurant in America that wins and keeps its customers. This means that the firm is convinced that it can win and retain customers by offering better products and services. Better products and services means that Chick-Fil-A offers foods that are of high quality, while its services ought to be quick and affordable at the same time. For Chick-fil-A, the purpose of a mission statement is to help the firm meet its objectives.
Q4. Explain your competitive strategy.
Chick-Fil-A’s operations complement its business philosophy of providing high-quality goods with superb service at reasonable prices. This company’s consumer-centric strategy will help it carve out a position in the industry. Marshall and Johnston (2019) illustrate that a company promoting and practicing a high level of customer focus is referred to as a customer-centric organization. It has gained a significant competitive edge not just through outstanding product development, but also through exceptional customer service. The organization delights its clients by establishing trust, which entails developing connections with them and learning about who they are, as well as their aspirations and desires. Despite being a fast-food restaurant, they seek to create a pleasurable time for every client while also having a beneficial impact on the community.
Q5. Conduct a SWOT (strengths, weaknesses, opportunities, threats) analysis for the organization
One of the key strengths that makes Chick-Fil-A the best is the services it provides to its customers. This customer service is made possible by the training that employees undergo, wherein the training is centered on understanding and happiness. Another strength is the firm’s menu selection, which includes chicken sandwiches instead of burgers. The firm also offers quality food products, which are as a result of Cathy, who took time in developing the original chicken sandwich recipe. Brand building can also be described as a strength given that it involves the local community. Powerful marketing efforts such as ‘Eat Mor Chikin’ aided in the brand’s growth (McGinty, 2019).
Poor geographic coverage can be described as a weakness because Chick-Fil-A’s presence is limited only to the US, meaning that its popularity is limited. Popularity among middle-income people in the US is a concern primarily because of the firm’s highly priced products.
Chick-Fil-A has an opportunity to expand to new markets such as the European ones which Marshall and Johnston (2019) name as the most successful. Here, its products can be well received, thus increasing its customer base. Health is a concern for customers, and this firm has the opportunity to reinvent itself by creating healthy food options. Although the company’s brand is recognizable, its involvement in many religious and political activities may turn off some consumers, and this implies that by rebranding itself, it might attract new ones. While the firm does provide the conventional chicken sandwich, it has to create new offerings to widen its popularity and expand its customer base.
The culture of Chick-Fil-A is often regarded as among the most orthodox in the world, earning it much criticism. While the firm’s branding is not political, it continuously provides financial support to ideological initiatives and activities, earning them a great deal of indignation from those opposing such efforts. The company’s revenue situation is impacted by intense rivalry from established companies such as McDonald’s and independent eateries. Changing health and economic policies might have a detrimental effect on the firm.
Johnston, M. W., & Marshall, G. W. (2019). Marketing Management. McGraw-Hill. 3rd Edition. https://www.acetermpaper.com/wp-content/uploads/2021/04/eBook-PDF-Marketing-Management-3rd-Edition-by-Greg-Marshall.pdf
McGinty. J. (2019). “Covert Cows. The Chicken Wire. https://thechickenwire.chick-fil-a.com/inside-chick-fil-a/covert-cows
Discuss the use of marketing research to be used to gather information on present or potential customers. Which forms of marketing research would be best in gathering consumer information relating to the product/service?
Marketing research provides insights and evidence that may be utilized to generate choices about the marketing strategy and perhaps other activities inside a firm. Chick-fil-A serves customers, and as a result, various kinds of marketing research methodologies may be used to obtain data on their clients’ perception of the services and foods they serve. Chick-fil-A regularly undertakes company-wide surveys to get input on ways the company operates. Marshall and Johnston (2019) assert that following consumers’ initial queries via purchase placing and fulfillment provides information into their behavior. Feedback is a straightforward and premium method of gathering info. Acquiring relevant feedback enables you to discover problematic spots. Chick-fil-A gives incentives and prizes to customers who make repeat orders and provide reviews. Chick-Fil-A through the use of focus groups modified marketing strategies in order to reach its intended demographic. Digital technologies may be quite helpful based on the market, the business is attempting to target. Numerous customers depend on technology on a daily basis, and that’s why Chick-Fil-A should also use this research tool.
Explain several external forces that affect the organization’s marketing planning and strategy.
Consumer choice is an external influence that impacts Chick-fil-A. As consumer tastes evolve, it might have an effect on the management and designing of its marketing strategy. Due to the fact that Chick-fil-A exclusively serves poultry products and does not provide a diverse selection of items, there is a possibility of a preference shift. Additionally, Chick-fil-A’s price varies according on economic progress. When consumers have enough cash, they will go for a highly expensive items over the alternative. On the other hand, if individuals lack the financial means to spend, they will go for the less expensive choice. Chick-Fil-A is also affected by competition, which is an external influence affecting the firm’s marketing strategy and plan. Rivalry can also be termed as an external factor given that similar eateries such as McDonald’s, Burger King, and Wendy’s are in this sector, although the firm’s chicken sandwich has maintained it on center of the leaderboard. The corporation has also been chastised for being heavily engaged in initiatives that are incompatible with its brand. As a result, political resentment can be seen as an external factor affecting this company. For example, customers have criticized it for solely endorsing and contributing funds to anti-LGBTQ groups (Wu, 2019).
Discuss the aspects of the organization’s customer relationship management (CRM) program.
Chick-fil-A outperforms the competition in terms of customer service partly due to the manner it engages with consumers. The company satisfies its consumers through establishing trust, which entails developing connections with them and learning about their personalities, and also their ambitions and desires. This corporation uses a four-part approach as part of its CRM program, which requires workers to interact with clients, grin at them, and converse prior to giving complementary refreshments. Marshall and Johnston (2019) demonstrate that a customer-centric organization puts the consumer at the center of all that occurs within as well as outside an organization. This is why Chick-Fil-A has developed the Mon’s Valet service, particularly to cater to the needs of caregivers with small children (Wishart, 2020).
Explain which consumer characteristics (personal, psychological, cultural, situational, social) matter most in the purchase decision
Marshall and Johnston’s (2019) illustrations demonstrate that both exterior and internal variables influence customer preferences. Personal characteristics like as affluence and lifestyle may influence Chick-Fil-A consumers’ purchasing decisions, since the company may provide its services at pricing that are only affordable to the moderate and higher classes. Well, the psychological characteristics of purchasers are undoubtedly the most critical factor in the purchase behavior. Consumers are motivated to seek pleasure, which Chick-fil-A accomplishes via consumer-employee interactions. Customers’ decisions to acquire this firm’s services are impacted by their worldview and what they have heard of their products. Chick-Fil-A utilizes exceptional marketing methods that are both compelling and successful in encouraging individuals to consume their delicacies. Attitude about Chick-Fil-A’s products is most based on certain attributes such as the recipe of making the product. At Chick-Fil-A, consumer perception refers to how customers perceive their products and if they enjoy the service provided. This leads people to select this fast-food restaurant as their first choice in America because they believe their goods and services are the greatest.
Explain how the product/service is positioned in the market. Quote or create a positioning statement for the product/service and explain its rationale
Chick-Fil-A’s products are positioned well in the market, owing mostly to its competitive initiatives, which contribute to the brand’s awareness. The company’s mission is to create a unique eating encounter focused on the client and a healthy alternate to hamburger restaurants. The restaurant provides exclusively high-quality poultry dinners and costs a modest charge above comparable options from rivals. Chick-Fil-A’s fundamental business principles are optimized for each client encounter (Stevens, 2014). Chick-Fil-A’s superior food service and client satisfaction have given the company a distinct competitive edge that its rivals have struggled to emulate. “Chick-fil-A has reaffirmed its brand strategy by appealing to the emotional responses of its consumers” (Stevens, 2014).
Johnston, M. W., & Marshall, G. W. (2019). Marketing Management. McGraw-Hill. 3 rd Edition. https://www.acetermpaper.com/wp-content/uploads/2021/04/eBook-PDF-Marketing-Management-3rd-Edition-by-Greg-Marshall.pdf
Stevens. J. L. (2014). Successful Brand Positioning: Chick-fil-A. Crisis Management Solutions. https://crisismanagementsolutions.wordpress.com/2014/03/13/successful-brand-positioning-chick-fil-a/
Wishart. J. (2020). How Chick-Fil-A Uses Customer Delight as a Competitive Advantage. Rhythm systems. https://www.rhythmsystems.com/blog/how-chick-fil-a-uses-customer-service-as-a-competitive-advantage
Wu. J. (2019). Beyond the sandwich wars: Chick-fil-A’s history of outrunning competitors and criticism. CNBC. https://www.cnbc.com/2019/08/30/beyond-the-sandwich-wars-chick-fil-as-history-of-outrunning-competitors-and-criticism.html
Running head: MARKETING 1
Knowing that Check-fill-A Company does serve exclusively poultry products and does not provide a wide selection of items, this necessitates that company to apply a pricing strategy that will help them in the process of ensuring that their product in this case is accepted in the market. In this case therefore, the best pricing strategy that would best suit the company is the market penetration pricing strategy. A big number of purchasers and a significant market share are gained as a result, albeit at the sacrifice of profitability. Because of the huge sales volume, expenses are reducing, allowing enterprises to lower their prices even more (Johnston, & Marshall, 2019). This is also the best pricing strategy that the company in this case would use because the company in itself is said to vary its price according to the economic progress that is currently there. This pricing strategy will therefore ensure that it does support the process of ensuring that when the customers do have enough cast they will go for items that are considered to be highly expensive and vice versa.
There are different pricing tactics that are considered to be very effective in the process of stimulating sales that the company has. Some of the pricing tactics that the company in this case should seek to implement include the discounting price strategy (Nagle & Müller, 2017). Knowing that the product that Check-fill-A is selling is a unique one and has a very huge competition from other companies that do sell products that can be substituted by this, it is therefore important for the business to sell its products using a reduced price. In this case, this can be done either through direct-to-customer sales codes or coupons, in-store discounts or even the business choosing to adopt the store-wide markdowns.
As discussed before, check-Fill- A is solely deals with chicken and poultry products and this includes waffle fries and scrambled burritos. With this knowledge therefore, it is important for the business in this case to identify the best distribution strategy that is relevant to these products. The best strategy in this case will therefore be intensive distribution. For the business to reach to as many people as possible and distributing its products to every potential customer as possible, the business should seek to obtain the biggest number of outlets available (Hosseinpour, 2018). This strategy is important in this case because, the main purpose of this is to reach the biggest portion of the market as possible.
Check-fill-A in this case is a food business and therefore the interaction between the business and the customers is said to be immediate and effective. In this case therefore, the channels that check-fill-A Company uses to distribute its products to its customers is considered to be direct. There are no middlemen in the distribution process of the food commodities that the business distributed to its customers. The business in this case deals with its customers directly by offering them their preferred food in their different outlets across different locations in the country. This is specifically important and effective as it helps the business not only treat its customers in the best way possible but also this helps in maintaining the prices of the products that the business has.
Understanding that technology has been increasingly been changing, the importance of assimilating the non-traditional methods of distribution is something that is very important and that check-fill-A business in this case would seek to use. Some of the non-traditional or rather e-channels that the company should use in this case would be using apps to allow the customers to order their favorite foods from their different locations. The use of the apps when it comes to distribution has already been applied by the company and this has been successful and has to some extent gained the company some competitive advantage which is in this case very important in the process of ensuring that the company performs better than its competitors.
Hosseinpour, A. (2018). The Analysis of Intensive Distribution Approach. Journal of System Management, 4(2), 67-78. http://sjsm.iaushiraz.ac.ir/article_539343.html
Johnston, M. W., & Marshall, G. W. (2019). Marketing Management. McGraw-Hill. 3 rd Edition. https://www.acetermpaper.com/wp-content/uploads/2021/04/eBook-PDF-Marketing-Management-3rd-Edition-by-Greg-Marshall.pdf
Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more profitably. Routledge. https://www.taylorfrancis.com/books/mono/10.4324/9781315185309/strategy-tactics-pricing-thomas-nagle-georg-m%C3%BCller
Explain the elements of the firm’s promotional mix.
Chick-fil-A promotional mix includes the following elements: product, price, location, marketing, physical evidence, people and process. The commodities comprise good physical attributes, superiority level, fixtures, boxing, and service contracts. It demands an assessment of the extent of services offered, the worth of the services offered, and the degree of services issued. The pricing structure includes prices, discounted concessions and commissions, payment conditions, and credit terms (Bragg et al., 2020). Furthermore, it aids in distinguishing one service from another and shaping consumers’ opinions of the value acquired from services, as well as their judgments of the cost-quality relationship. Because accessibility encompasses not just physical access but also various modes of communication and contracting, the location of service providers is crucial when marketing services.
When promoting services, it is critical to keep accessibility in mind. Advertisement, personal retailing operations, sales advancement ventures, and other types of direct publicity are all examples of techniques of connecting with markets that fall under the category of promotion. Personal contacts such as service providers and any contact person might be quite important. Consulting, counseling, teaching, and other forms of professional help are among the services provided by service providers. All tangible indicators of the services, such as pamphlets, postcards, business cards, surveys and polls, signs, and equipment, are considered physical proof of service (Marshall & Johnston, 2019). Then there’s the actual operation itself. A second kind of evidence used by consumers to grade a service is the process, which refers to the actual delivery procedures that the client experiences, or the effective movement of the services.
Explain whether a push or pull promotional strategy will be used, or a combination of both.
An integrated push and pull promotional approach will be employed to generate consumer demand by continually inventing new items and presenting these products in shops, while simultaneously attracting people to this product through advertising and promotion and discounts. According to Marshall and Johnston (2019), the main focus of the pull strategy includes channel distribution while pull includes focusing on a demand that is stimulating. Chick-Fil-A use of this integrated strategy means a focus on product and market which is critical.
Discuss the firm’s use of digital, mobile, or social media marketing.
A complete marketing plan is in place at Chick-fil-A to reach customers via conventional advertising, social media, and participation in local community events (Rummo et al., 2020). The chick-fill utilizes social media as a means of accelerating its fame in social media, by the use of a combination of mining of information and informal guidelines of interactions to answer to various social media mentions monthly and generate data that is usually completed in under two or three minutes. It is ideal to seek visitor satisfaction via the use of digital, itinerant, and marketing via social media, and the Chick-fill is prepared to participate in course correction in reaction to less than favorable feedback.
Explain your approach to advertising execution.
The headlines, content, pictures, and signatures of the chosen or suggested advertising message are the aspects of the message. A headline is a phrase or a sentence that draws the reader’s attention to a particular product or service on a website or in an advertisement. A headline should also draw the reader’s attention to the advertisement’s artwork and entice them to read the content (Heryono, 2021). Written advertisements include language that serves as the selling message for the product or service, and it includes specifics on how it satisfies the customer’s demands. It is the picture, sketch, or other visual components that are utilized in the advertising to represent the artwork. It should be able to capture and retain the audience’s attention while also encouraging action. Finally, the signature or logotype is the distinguishing identifying mark for a firm, and a well-designed signature ensures that a business is instantly recognized.
Explain the organization’s use of sales promotion, public relations, live events, publicity, or
In addition to running the odd print advertisement or coupon mailer, Chick-fil-A uses billboards, television advertisements, and sponsorships to reach out to its target demographic in the conventional advertising mediums. They concentrated on an integrated consumer-focused approach that depends largely on delicious, high-quality foods, as well as a family-friendly, principled environment to attract and retain customers.
Bragg, M. A., Pageot, Y. K., Amico, A., Miller, A. N., Gasbarre, A., Rummo, P. E., & Elbel, B. (2020). Fast food, beverage, and snack brands on social media in the United States: An examination of marketing techniques utilized in 2000 brand posts. Pediatric obesity, 15(5), e12606. https://onlinelibrary.wiley.com/doi/abs/10.1111/ijpo.12606
Heryono, H. (2021). Slogan Language Styles On Fast Food Advertising. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(8), 1298-1303. https://www.turcomat.org/index.php/turkbilmat/article/view/3146
Rummo, P. E., Cassidy, O., Wells, I., Coffino, J. A., & Bragg, M. A. (2020). Examining the relationship between youth-targeted food marketing expenditures and the demographics of social media followers. International journal of environmental research and public health, 17(5), 1631.
Marshall. G. W. & Johnston. M, W. (2019). Marketing Management. McGraw Hill education. Third edition
Greg W. Marshall
Mark W. Johnston
MARKETING MANAGEMENT, THIRD EDITION
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Library of Congress Cataloging-in-Publication Data
Marshall, Greg W., author. | Johnston, Mark W., author.
Marketing management/Greg W. Marshall, Rollins College, Mark W.
Johnston, Rollins College.
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To Patti and Justin.
To Susan, my love, and Grace, my joy, thank you
Greg W. Marshall
Greg W. Marshall is the Charles Harwood Professor of Marketing and Strategy
in the Roy E. Crummer Graduate School of Business at Rollins College in
Winter Park, Florida, and is also the academic director of the Executive DBA
program there. For three years he served as vice president for strategic
marketing for Rollins. He earned his Ph.D. from Oklahoma State University and
holds a BSBA and an MBA from the University of Tulsa. Before joining Rollins,
Greg was on the faculty at the University of South Florida, Texas Christian
University, and Oklahoma State University. He currently also holds an
appointment as professor of marketing and strategy at Aston Business School
in Birmingham, United Kingdom.
Prior to returning to school for his doctorate, Greg worked in the consumer
packaged goods and retailing industries with companies such as Warner-
Lambert, Mennen, and Target. He also has considerable experience as a
consultant and trainer for a variety of organizations and has been heavily
involved in teaching marketing management at multiple universities to both
MBA and advanced undergraduate students.
Greg is editor-in-chief of the European Journal of Marketing and is former
editor of the Journal of Marketing Theory and Practice and the Journal of
Personal Selling & Sales Management. His published research focuses on the
areas of decision making by marketing managers, intraorganizational
relationships, and sales force performance. He is a member of the board of
directors of the American Marketing Association and is past president of the
AMA Academic Council. He is a distinguished fellow and past president of the
Academy of Marketing Science and is a distinguished fellow, past president,
and member of the board of governors of the Society for Marketing Advances.
Greg also serves as a fellow and member of the academic advisory council of
the Direct Selling Education Foundation.
Mark W. Johnston
Mark W. Johnston is the Alan and Sandra Gerry Professor of Marketing and
Ethics in the Roy E. Crummer Graduate School of Business at Rollins College
in Winter Park, Florida. He earned his Ph.D. from Texas A&M University and
holds a BBA and an MB from Western Illinois University. Before joining Rollins,
Mark was on the faculty at Louisiana State University. Prior to his academic
career, he worked in industry as a sales representative for a leading distributor
of photographic equipment. His research has been published in a number of
professional journals including the Journal of Marketing Research, Journal of
Applied Psychology, Journal of Business Ethics, Journal of Marketing
Education, Journal of Personal Selling & Sales Management, and many others.
Mark has been retained as a consultant for firms in a number of industries
including personal health care, chemical, transportation, hospitality, and
telecommunications. He has consulted on a wide range of issues involving
strategic business development, sales force structure and performance,
international market opportunities, and ethical decision making. Mark also works
with MBA students on consulting projects around the world for companies such
as Tupperware, Disney, and Johnson & Johnson. He has conducted seminars
globally on a range of topics including the strategic role of selling in the
organization, developing an ethical framework for decision making, improving
business unit performance, and structuring an effective international marketing
For more than two decades Mark has taught marketing management,
working with thousands of students. His hands-on, real-world approach has
earned him a number of teaching awards.
No doubt about it, marketing is really changing. Marketing today is:
Very strategic—customer-centricity is now a core organizational
Practiced virtually, digitally, and socially to a greater degree than
ever before imagined.
Enabled and informed by analytics and new technologies.
Accountable to top management through diligent attention to metrics
Oriented toward service as driver of product.
“Owned” by everybody in the firm to one degree or another.
Given the dramatic changes in the field of marketing, it is a sure bet
that the job of leading and managing marketing’s contributions to the
organization and its customers, clients, partners, and society at large has
changed at a similar level. Yet the typical marketing management book on
the market today does not effectively capture and communicate to students
how marketing management is really practiced in the 21st-century world
of business. We hear it from colleagues all the time—the complaint that
the book they are using in their marketing management course “reads like
marketing was practiced a decade ago,” or that it “doesn’t say what I
believe the students need to hear,” or that it “doesn’t match what my
working students actually do on the job,” or that it “reads like an
encyclopedia of marketing,” or that it “has too much about everything and
not enough focus on anything.” These remarks come from instructors who
teach the MBA basic marketing course and those who teach advanced or
capstone undergraduate marketing management courses; each of these
courses is appropriate for a marketing management book. Clearly many
instructors are looking for a marketing management book that is:
Written for today’s students in an interesting and lively, yet
Up-to-date in all relevant aspects of how marketing is done today.
A step up from the norm in terms of support materials for the
instructor and students.
Marshall/Johnston’s Marketing Management 3e continues its very
successful tradition of taking great effort to represent marketing
management the way it is actually practiced in successful organizations
today. In our view, leading and managing the aspects of marketing in order
to improve individual, unit, and organizational performance—marketing
management—is a core business activity. Its relevance is not limited just
to marketing departments or marketing majors. The ability to do great
marketing management is relevant to, and an important knowledge and
skill for, everyone in a firm and all business majors.
The table of contents for the third edition of the book reflects the
major trends in the managerial practice of marketing, and the pedagogy is
crafted around learning and teaching preferences in today’s classroom.
Above all, it is written in a style that is appealing for both students and
instructors so that students will actually enjoy reading the material and
instructors will be proud to teach from it and confident that they will feel
good about presenting its up-to-date, professional approach to their
The book contains 14 chapters, which we find is perfect for most
course timetables. It has a fully developed array of application activities
both in end-of-chapter materials and for student engagement on McGraw-
Hill Connect. For instructors who craft their course around a marketing
plan project, the book is ideal as these exercises clearly build on creating
the elements of a marketing plan.
STRUCTURE OF THE THIRD EDITION
Marshall/Johnston’s Marketing Management 3e has five major parts,
reflective of the logical sequence of building blocks for the course.
Part One: Discover Marketing Management. In this part, students
gain an understanding of the dynamics of the field. Significant
attention is paid to framing the importance of studying marketing to
future success as a manager. In particular, doing marketing in a
global, ethical, and sustainable way is highlighted. To kick off the
marketing planning theme early in the course, Part One includes
comprehensive coverage of strategy and planning along with an
example marketing plan.
Part Two: Use Information to Drive Marketing Decisions. It has
often been said that information is the fuel that fires the engine of
marketing management decision making. With this in mind, Part
Two focuses on effective management of information to better
understand customers, both in the consumer and business
marketplaces. Market research elements, Customer Relationship
Management (CRM), Big Data, marketing analytics, and marketing
dashboards receive thorough coverage. Effective segmentation, target
marketing, and positioning are at the core of successful marketing,
and this part provides a modern managerial treatment of these critical
topics along with other relevant competencies and capabilities of
Part Three: Develop the Value Offering—The Product
Experience. This part presents a clear and comprehensive drill-down
into today’s world of product strategy, branding, and new product
development. Reflective of the rise of the concept of service-
dominant logic in marketing and the notion that service is a key
driver of product success, we devote a separate chapter to making
important links between service and the overall value offering.
Part Four: Price and Deliver the Value Offering. Part Four begins
with a fresh, managerially relevant treatment of pricing decision
making, followed by an integrative approach to the multitude of
modes at a marketing manager’s disposal today by which an offering
can be made available to customers through channels and points of
Part Five: Communicate the Value Offering. With the rise of
digital and social media marketing and the concurrent dramatic shifts
in how marketing managers and their customers communicate, this
part has been extensively revised for Marshall/Johnston’s Marketing
Management 3e. A key to successful marketing management today is
the capability of marketing managers to create and execute the mix of
digital, social media, and legacy promotional approaches most
desired and preferred by customers.
Management Decision Cases
At the end of each chapter is a case drawn from the business headlines.
Students are engaged by the currency of the problem and asked to develop
solutions using chapter material. The cases are just the right size for
today’s classroom use—not too short, but not too long!
Marketing Plan Exercises
Each chapter connects that chapter’s key content to a semester-long
marketing plan project activity. Marshall/Johnston’s Marketing
Management 3e is the only marketing management book to effectively
thread a marketing planning focus throughout the textbook itself. Whether
or not a semester marketing plan project is used by the instructor, the
plan exercise feature does a great job of tying together important planning
concepts for students in a methodical, stepwise manner.
Glossary of Terms
A complete glossary of key terms and definitions is provided at the end of
the book. The glossary serves as an important reference as well as a handy
study aid for students preparing for exams.
Other Features in Each Chapter
Learning Objectives: These set the stage at the beginning of the
chapter for what students will achieve by reading and studying the
chapter. Each objective reappears in the margin at the relevant point
in the chapter so students can track their progress.
Summary: At the end of each chapter, a summary reminds students of
the highlighted topics.
Key Terms: Terms are bolded throughout the chapter and connected
with definitions in the Glossary.
Application Questions: These engaging questions at the end of each
chapter are designed to direct students’ thinking about the topics to
the next level of application. Throughout the book all of these
questions have been specially designed to simulate managerial
NEW AND UPDATED CONTENT IN THE THIRD EDITION
Throughout this book, we’ve provided hundreds of new examples from a
wide variety of practicing marketers and firms. Each chapter contains a
brand-new Management Decision Case, and there are new and updated
Application Questions at the end of each chapter. In addition, hundreds of
new or replacement references have been added to the chapter end notes.
Here are some highlights of specific changes, by chapter:
Chapter 1: Marketing in Today’s Business Milieu
Emphasis on the impact of the current “official” definition of
New content around the major challenges facing marketing today.
Coverage of the American Marketing Association’s 7 Big Problems
Chapter 2: Marketing Foundations: Global, Ethical, Sustainable
Updated discussion and examples of global marketing trends.
Focus on the importance of ethical decision making in marketing and
the marketing mix.
In-depth coverage of sustainability and the “triple bottom line” in
Chapter 3: Elements of Marketing Strategy, Planning, and
Impact of marketing planning at the strategic business unit (SBU)
Updated the JetBlue threaded marketing planning example.
Updated the chapter appendix, which is an abbreviated example
Chapter 4: Market Research Essentials
Updated coverage of new research methodologies with examples.
Updated treatment of the marketing research industry.
New content on data collection technologies.
Chapter 5: CRM, Big Data, and Marketing Analytics
Updated discussion of the modern perils of potential customer
information abuse and data security.
Major new section on sources and types of Big Data.
Major new section on marketing analytics as supported by Big Data.
Chapter 6: Understand Consumer and Business Markets
Revised commentary on new trends in consumer and business
New and updated examples.
Updated discussion of the consumer decision-making process.
Chapter 7: Segmentation, Target Marketing, and Positioning
Updated census information for geographic segmentation.
Extra emphasis on the millennial customer.
Basics of CRM content moved from this chapter to earlier position in
Chapter 8: Product Strategy and New Product Development
New and updated content on product classifications.
Revised and updated content to reflect changes in product strategy
and new product development.
Updated discussion on the product life cycle.
Chapter 9: Build the Brand
Updated content about the most valuable brands today.
Revised and updated content on brand definitions and concepts.
Updated content around contemporary package designs.
Chapter 10: Service as the Core Offering
New content on the service dominant logic.
New content around the use of technologies to improve the customer
Revised content to reflect changes in services strategy.
Chapter 11: Manage Pricing Decisions
Revised table on price lining.
Discussion of innovative pricing strategies.
Discussion of pricing’s role within the marketing strategy decision
Chapter 12: Manage Marketing Channels, Logistics, and Supply
Emphasis on the phenomenal growth of e-retailing.
Attention to omnichannel retailing as firms deploy a number of
channels in a customer’s shopping experience.
Enhanced treatment of customer communities.
Chapter 13: Promotion Essentials: Digital and Social Media
New major section with full coverage of the role of digital marketing
in communicating value.
Clear delineation of types and approaches to digital marketing,
including best practice tips and cautions for their use.
New major section on managing social media marketing and
engaging customers directly in the dialogue about a firm and its
Chapter 14: Promotion Essentials: Legacy Approaches
Thoroughly revised discussion of legacy advertising tools to reflect
changes in promotional strategy.
Updated content on leading advertisers and the promotion industry.
Updated and new content on crisis management.
The task of writing a textbook requires the talents of many dedicated
people. First and foremost, we want to thank the McGraw-Hill team for
sharing the vision of this project with us from the very beginning.
Particularly given the dynamic nature of marketing management both as a
professional field and as a course of study, it was critically important that
throughout the development process the entire team remain steadfast in
believing in the vision of the project.
In particular, we want to recognize and thank the following individuals
at McGraw-Hill who played a significant part in the successful
development of Marketing Management 3e. Meredith Fossell, Executive
Portfolio Manager, has been a visionary and strategic editorial leader
throughout the project and we owe her a debt of gratitude for putting the
project onto a great track. Lynn Huddon and Alyssa Lincoln, Product
Developers, were instrumental in working with us daily to achieve this end
result. Melissa Leick and Danielle Clement, Project Managers, were
invaluable in keeping all elements of our product moving through
production. And Nicole Young, Senior Marketing Manager, deserves high
kudos for her excellence in communicating the value of our new edition to
the marketplace. All of these great professionals made our job much more
enjoyable. We have been McGraw-Hill authors for over 15 years and
consider their team to be family.
Phillip Wiseman at the C. T. Bauer College of Business at the
University of Houston provided able guidance and superior content in
helping build the substantive revisions of Chapters 5 and 13. Phillip also
led the process of developing new and updated interactive Connect
exercises. His contributions to the third edition are exemplary. George
Allen at the Howard Dayton School of Business at Asbury University and
Andrew Thoeni at the Coggin College of Business at the University of
North Florida did a masterful job in creating the new set of Management
Decision Cases that add so much value to this new edition. Likewise, Jill
Solomon at the University of South Florida developed the accompanying
PowerPoints—she is truly an outstanding instructor of marketing
management herself and that talent comes through in the materials she has
created. In addition, we want to recognize the contributions of several
members of the Rollins College Crummer Graduate School of Business
team. Each of the following folks contributed to the plethora of great
current business examples featured in this edition: Brandon Duncan,
Richard Ross, Amy Crawford Weschler, and Courtney Wood. Courtney,
along with Hannah Coyman from Crummer, also worked with Phillip
Wiseman on the Connect interactives. We deeply appreciate the
exceptional contributions of each of these individuals!
And finally, we want to offer a very special and heartfelt note of
appreciation to our families, colleagues, and friends. Their encouragement
and good humor throughout this process were integral to the end result.
Greg W. Marshall, ROLLINS COLLEGE
Mark W. Johnston, ROLLINS COLLEGE
Many colleagues have participated in the developmental process of
Marshall/Johnston’s Marketing Management from the first edition through
this new third edition, via focus groups, chapter reviews, and other means.
Our thanks go to each of the following people for their guidance and
suggestions throughout this process:
Kalthom Abdullah, INTERNATIONAL ISLAMIC UNIVERSITY OF MALAYSIA
Denise Ammirato, WESTFIELD STATE COLLEGE
David Amponsah, TROY UNIVERSITY MONTGOMERY
Craig Andrews, MARQUETTE UNIVERSITY
David Andrus, KANSAS STATE UNIVERSITY
Maria Aria, CAMDEN COUNTY COLLEGE
Paul Arsenault, WEST CHESTER UNIVERSITY OF PENNSYLVANIA
Semih Arslanoglu, BOSTON UNIVERSITY
Chad Autry, UNIVERSITY OF TENNESSEE–KNOXVILLE
Parimal Baghat, INDIANA UNIVERSITY OF PENNSYLVANIA
William Baker, SAN DIEGO STATE UNIVERSITY
Roger Baran, DEPAUL UNIVERSITY
Danny Bellenger, GEORGIA STATE UNIVERSITY
John Bellenoit, WESTFIELD STATE COLLEGE
Parimal Bhagat, INDIANA UNIVERSITY OF PENNSYLVANIA
Subodh Bhat, SAN FRANCISCO STATE UNIVERSITY
Carol Bienstock, RADFORD UNIVERSITY
Diedre Bird, PROVIDENCE COLLEGE
George W. Boulware, LIPSCOMB UNIVERSITY
Douglas Boyd, JAMES MADISON UNIVERSITY
Samuel Bradley, ALVERNIA UNIVERSITY
Eileen Bridges, KENT STATE UNIVERSITY
Steve Brokaw, UNIVERSITY OF WISCONSIN–LACROSSE
Susan Brudvig, INDIANA UNIVERSITY EAST
Laura Buckner, MIDDLE TENNESSEE STATE UNIVERSITY
Tim Calkins, NORTHWESTERN UNIVERSITY
Barb Casey, DOWLING COLLEGE
Paul Clark, COASTAL CAROLINA UNIVERSITY
Bob Cline, UNIVERSITY OF IOWA
Cathy Cole, UNIVERSITY OF IOWA
Mark Collins, UNIVERSITY OF TENNESSEE–KNOXVILLE
David Conrad, AUGSBURG COLLEGE
Bob Cutler, CLEVELAND STATE UNIVERSITY
Geoffrey Da Silva, TEMASEK POLYTECHNIC
Lorie Darche, SOUTHWEST FLORIDA COLLEGE
Mahmoud Darrat, AUBURN MONTGOMERY UNIVERSITY
Patricia Daugherty, MICHIGAN STATE UNIVERSITY
Denver D’Rozario, HOWARD UNIVERSITY
F. Robert Dwyer, UNIVERSITY OF CINCINNATI
Jacqueline K. Eastman, GEORGIA SOUTHERN UNIVERSITY
Michael Edwards, UNIVERSITY OF ST. THOMAS
Adel El-Ansary, UNIVERSITY OF NORTH FLORIDA
Maurice Elliard, ALBANY STATE UNIVERSITY
Alexander Ellinger, UNIVERSITY OF ALABAMA–TUSCALOOSA
Ken Fairweather, LETOURNEAU UNIVERSITY
Bagher Fardanesh, JOHNS HOPKINS UNIVERSITY
Richard L. Flight, EASTERN ILLINOIS UNIVERSITY
Andrew Forman, HOFSTRA UNIVERSITY
Fred Fusting, LOYOLA COLLEGE OF MARYLAND
Jule B. Gassenheimer, ROLLINS COLLEGE
Mahesh Gopinath, OLD DOMINION UNIVERSITY
Shiv Gupta, UNIVERSITY OF FINDLAY
Liz Hafer, UNIVERSITY OF COLORADO–BOULDER
Angela Hausman, UNIVERSITY OF NORTH CAROLINA AT PEMBROKE
Jeffrey Heilbrunn, COLUMBIA COLLEGE OF MISSOURI
Chuck Hermans, MISSOURI STATE UNIVERSITY
Asep Hermawan, UNIVERSITAS TRISAKTI
Marjorie Carlson Hurst, MALONE UNIVERSITY
Mahmood Hussain, SAN FRANCISCO STATE UNIVERSITY
Donna Rue Jenkins, WARREN NATIONAL UNIVERSITY
Johny Johansson, GEORGETOWN UNIVERSITY
Amit Joshi, UNIVERSITY OF CENTRAL FLORIDA
Fred Katz, JOHNS HOPKINS UNIVERSITY
Craig Kelley, CALIFORNIA STATE UNIVERSITY–SACRAMENTO
Anthony J. Khuri, BALDWIN WALLACE UNIVERSITY
Vishnu Kirpalani, CONCORDIA UNIVERSITY, MONTREAL, CANADA
Elias Konwufine, KEISER UNIVERSITY
Robert Kopp, BABSON COLLEGE
Kate Lawrence, CAMPBELL UNIVERSITY
Sangwon Lee, BALL STATE UNIVERSITY
Michael Levens, WALSH COLLEGE
Jason Little, FRANKLIN PIERCE UNIVERSITY
Cesar Maloles, CALIFORNIA STATE UNIVERSITY–EAST BAY
Avinash Malshe, UNIVERSITY OF ST. THOMAS
Susan Mantel, INDIANA UNIVERSITY–PURDUE UNIVERSITY–
Norton Marks, CALIFORNIA STATE UNIVERSITY–SAN BERNARDINO
Thomas Maronick, TOWSON UNIVERSITY
H. Lee Mathews, OHIO STATE UNIVERSITY
Melvin Mattson, RADFORD UNIVERSITY
Denny McCorkle, UNIVERSITY OF NORTHERN COLORADO
Timothy McMahon, CREIGHTON UNIVERSITY
Michael Menasco, CALIFORNIA STATE UNIVERSITY–SAN BERNADINO
Morgan Miles, UNIVERSITY OF TASMANIA
Chad Milewicz, UNIVERSITY OF CENTRAL FLORIDA
Chip E. Miller, DRAKE UNIVERSITY
Herb Miller, UNIVERSITY OF TEXAS
Mark Mitchell, COASTAL CAROLINA UNIVERSITY
Thomas Noordewier, UNIVERSITY OF VERMONT
Nicholas Nugent, SOUTHERN NEW HAMPSHIRE UNIVERSITY
Carl Obermiller, SEATTLE UNIVERSITY
Azizah Omar, UNIVERSITI SAINS MALAYSIA
Barnett Parker, PFEIFFER UNIVERSITY
Vanessa Patrick, UNIVERSITY OF GEORGIA
Dennis Pitta, UNIVERSITY OF BALTIMORE
Jeffrey S. Podoshen, FRANKLIN AND MARSHALL COLLEGE
Abe Qastin, LAKELAND UNIVERSITY
Salim Qureshi, BLOOMSBURG UNIVERSITY
Lori Radulovich, BALDWIN WALLACE UNIVERSITY
Pushkala Raman, TEXAS WOMAN’S UNIVERSITY
K. Ramakrishna Rao, MULTIMEDIA UNIVERSITY
Molly Rapert, UNIVERSITY OF ARKANSAS–FAYETTEVILLE
Richard Rexeisen, UNIVERSITY OF ST. THOMAS
Subom Rhee, SANTA CLARA UNIVERSITY
Robert Richey, UNIVERSITY OF ALABAMA–TUSCALOOSA
Torsten Ringberg, UNIVERSITY OF WISCONSIN–MILWAUKEE
Ann Root, FLORIDA ATLANTIC UNIVERSITY–BOCA RATON
Al Rosenbloom, DOMINICAN UNIVERSITY
Jason Ryan, CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO
David Rylander, TEXAS WOMAN’S UNIVERSITY
Mahmod Sabri Haron, UNIVERSITI SAINS MALAYSIA
Dennis Sandler, PACE UNIVERSITY
Matt Sarkees, PENNSYLVANIA STATE UNIVERSITY
Linda Saytes, UNIVERSITY OF SAN FRANCISCO
Victoria Seitz, CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO
Shahid Sheikh, AMERICAN INTERCONTINENTAL UNIVERSITY
Kathy A. Skledar, LAKE ERIE COLLEGE
Susan Sieloff, NORTHEASTERN UNIVERSITY
Karen Smith, COLUMBIA SOUTHERN UNIVERSITY
Sharon Smith, DEPAUL UNIVERSITY
Jill Solomon, UNIVERSITY OF SOUTH FLORIDA
Ashish Sood, EMORY UNIVERSITY
Robert Spekman, UNIVERSITY OF VIRGINIA, DARDEN SCHOOL
James Spiers, ARIZONA STATE UNIVERSITY
Thomas Steenburgh, UNIVERSITY OF VIRGINIA, DARDEN SCHOOL
Geoffrey Stewart, UNIVERSITY OF LOUISIANA–LAFAYETTE
Derik Steyn, CAMERON UNIVERSITY
John Stovall, GEORGIA SOUTHWESTERN STATE UNIVERSITY
Ziad Swaidan, UNIVERSITY OF HOUSTON AT VICTORIA
Michael Swenson, BRIGHAM YOUNG UNIVERSITY
Victoria Szerko, DOMINICAN COLLEGE
Leona Tam, OLD DOMINION UNIVERSITY
John L. Teopaco, EMERSON COLLEGE
Niwet Thamma, RAMKHAMHEANG UNIVERSITY
Meg Thams, REGIS UNIVERSITY
Rungting Tu, PEKING UNIVERSITY
Bronislaw Verhage, GEORGIA STATE UNIVERSITY
Jolivette Wallace, BELHAVEN UNIVERSITY
Guangping Wang, PENNSYLVANIA STATE UNIVERSITY
Cathy Waters, BOSTON COLLEGE
Art Weinstein, NOVA SOUTHEASTERN UNIVERSITY
Darin White, UNION UNIVERSITY–JACKSON
Ken Williamson, JAMES MADISON UNIVERSITY
Dale Wilson, MICHIGAN STATE UNIVERSITY
Walter Wochos, CARDINAL STRITCH UNIVERSITY
John Wesley Yoest, Jr, THE CATHOLIC UNIVERSITY OF AMERICA
Khanchitpol Yousapronpaiboon, KHONKHEN UNIVERSITY
Zach Zacharia, LEHIGH UNIVERSITY
Jason Qiyu Zhang, LOYOLA UNIVERSITY MARYLAND
Yong Zhang, HOFSTRA UNIVERSITY
Shaoming Zou, UNIVERSITY OF MISSOURI–COLUMBIA
BRIEF TABLE OF
Discover Marketing Management
Marketing in Today’s Business Milieu
Marketing Foundations: Global, Ethical, Sustainable
Elements of Marketing Strategy, Planning, and Competition
Use Information to Drive Marketing Decisions
Market Research Essentials
CRM, Big Data, and Marketing Analytics
Understand Consumer and Business Markets
Segmentation, Target Marketing, and Positioning
Develop the Value Offering—The Product Experience
Product Strategy and New Product Development
Build the Brand
Service as the Core Offering
Price and Deliver the Value Offering
Manage Pricing Decisions
Manage Marketing Channels, Logistics, and Supply Chain
Communicate the Value Offering
Promotion Essentials: Digital and Social Media Marketing
Promotion Essentials: Legacy Approaches
Indexes (Name and Subject)
Discover Marketing Management
Marketing in Today’s Business Milieu
WELCOME TO MARKETING MANAGEMENT
Behind the Misconceptions
Beyond the Misconceptions and Toward the Reality of …