A01_KOTL5681_01_SE_FM.indd ii
8/31/11 8:59 PM
About the Authors
As a team, Philip Kotler and Gary Armstrong provide a blend of skills uniquely suited to writing
an introductory marketing text. Professor Kotler is one of the world’s leading authorities on marketing. Professor Armstrong is an award-winning teacher of undergraduate business students.
Together they make the complex world of marketing practical, approachable, and enjoyable.
Gary
Armstrong is the Crist W. Blackwell Distinguished Professor of Undergraduate Education
in the Kenan-Flagler Business School at the University of North Carolina
at Chapel Hill. He holds undergraduate and master’s degrees in business from Wayne State
University in Detroit, and he received his PhD in marketing from Northwestern University.
Professor Armstrong has contributed numerous articles to leading business journals. As a consultant and researcher, he has worked with many companies on marketing research, sales management, and marketing strategy.
But Professor Armstrong’s first love has always been teaching. His Blackwell Distinguished
Professorship is the only permanent endowed professorship for distinguished undergraduate
teaching at the University of North Carolina at Chapel Hill. He has been very active in the teaching and administration of Kenan-Flagler’s undergraduate program. His administrative posts
have included Chair of Marketing, Associate Director of the Undergraduate Business Program,
Director of the Business Honors Program, and many others. He has worked closely with business
student groups and has received several campuswide and Business School teaching awards. He is
the only repeat recipient of the school’s highly regarded Award for Excellence in Undergraduate
Teaching, which he has received three times. Most recently, Professor Armstrong received the
UNC Board of Governors Award for Excellence in Teaching, the highest teaching honor bestowed
by the 16-campus University of North Carolina system.
Philip
Kotler
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 PhD at MIT, both in economics. Professor Kotler is
the author of Marketing Management (Pearson Prentice Hall), now in its thirteenth edition and the
most widely used marketing text book in graduate business schools worldwide. He has authored
dozens of other successful books and has written more than 100 articles in leading journals. He is
the only three-time winner of the coveted Alpha Kappa Psi award for the best annual article in the
Journal of Marketing.
Professor Kotler was named the first recipient of two major awards: the Distinguished
Marketing Educator of the Year Award, given by the American Marketing Association and the
Philip Kotler Award for Excellence in Health Care Marketing, presented by the Academy for Health
Care Services Marketing. His numerous other major honors include the Sales and Marketing
Executives International Marketing Educator of the Year Award; the European Association of
Marketing Consultants and Trainers Marketing Excellence Award; the Charles Coolidge Parlin
Marketing Research Award; and the Paul D. Converse Award, given by the American Marketing
Association to honor “outstanding contributions to science in marketing.” In a recent Financial
Times poll of 1,000 senior executives across the world, Professor Kotler was ranked as the fourth
“most influential business writer/guru” of the twenty-first century.
Professor Kotler has served as chairman of the College on Marketing of the Institute of
Management Sciences, a director of the American Marketing Association, and a trustee of the
Marketing Science Institute. He has consulted with many major U.S. and international companies in the areas of marketing strategy and planning, marketing organization, and international
marketing. He has traveled extensively throughout Europe, Asia, and South America, advising
companies and governments about global marketing practices and opportunities.
v
A01_KOTL5681_01_SE_FM.indd v
8/31/11 8:59 PM
vi
About the Authors
Anwar
Habib
is a faculty member at the Dubai Women’s College, Higher Colleges of Technology in
United Arab Emirates. He holds an MBA from the University of Dhaka, Bangladesh,
and is currently completing his DBA at the Business School Laussane, Switzerland. He has been
teaching marketing since 2006.
Anwar Habib has 20 years of practical marketing experience working for Unilever, CibaGeigy and Johnson & Johnson, in South Asia, Australia and the Middle East. He started out as
a brand manager at Unilever, and gradually progressed through senior roles in marketing and
sales. His last role before teaching was General Manager of Johnson & Johnson Vision Care for the
Middle East and North Africa region.
Ahmed
Tolba
is Assistant Professor of Marketing in the School of Business at the American
University in Cairo. He is also Director of El-Khazindar Business Research and Case
Center (KCC), which is the first center in the MENA region to focus on developing world-class
refereed case studies. He was awarded his PhD from the George Washington University in 2006,
and his MBA & BSc from the American University in Cairo in 1997 and 2001 respectively. His
professional experience includes four years at Procter & Gamble Egypt; he also worked as a marketing consultant for several local firms.
His research focuses on brand equity, nation branding, branding strategies, and social marketing. His work has been published and presented in leading academic journals, such as the Journal
of Product and Brand Management, the Journal of Technology Marketing, the International Journal of
Marketing Studies, and the Journal of International Business and Cultural Studies, and presented at
conferences for the American Marketing Association (AMA), the Academy of Marketing Science
(AMS), the Society for Marketing Advances, the Academy of Management (SMA), the Thought
Leaders International Conference on Brand Management, Frontiers in Services Conference, and
the Association for Global Business, among others.
A01_KOTL5681_01_SE_FM.indd vi
8/31/11 9:00 PM
Brief Contents
Features matrix xiv
Foreword xvii
Preface xviii
Acknowledgments xxiii
Part 1 Defining Marketing and the Marketing Process 1
1 Marketing: Creating and Capturing Customer Value 2
2 Company and Marketing Strategy: Partnering to Build Customer Relationships 36
Part 2 Understanding the Marketplace and Consumers 65
3
4
5
6
Analyzing the Marketing Environment 66
Marketing Research 94
Consumer Behavior 124
Business Markets and Business Buyer Behavior 152
Part 3 Designing a Customer-Driven Strategy and Mix 175
7
8
9
10
11
12
13
14
Customer-Driven Marketing Strategy: Segmentation, Targeting & Positioning 176
Products, Services, and Brands: Building Customer Value 202
New-Product Development and Product Life-Cycle Strategies 238
Pricing 266
Communicating Customer Value: Integrated Marketing Communications Strategy 300
Promotion Mix Strategies: Advertising and Public Relations 326
Direct and Online Marketing: Building Direct Customer Relationships 368
Managing Marketing Channels 400
Part 4 Extending Marketing 439
15 Creating Competitive Advantage 440
16 The Global Marketplace 466
17 Sustainable Marketing: Social Responsibility and Ethics 494
Appendix 1 Marketing Plan A1
Appendix 2 Marketing by the Numbers A11
Appendix 3 Careers in Marketing A29
References R1
English-Arabic Glossary G1
Index I1
Credits C1
vii
A01_KOTL5681_01_SE_FM.indd vii
8/31/11 9:00 PM
Contents
Part 1
Defining Marketing and the Marketing
Process 1
Chapter 1
Marketing: Creating and Capturing
Customer Value 2
Chapter Preview 2
Objective Outline 4
What Is Marketing? 4
Customer Needs, Wants, and Demands 6 | Market Offerings—
Products, Services, and Experiences 7 |
Customer Value and Satisfaction 7 | Exchanges and
Relationships 8 | Markets 8
Designing a Customer-Driven Marketing Strategy 9
Selecting Customers to Serve 9 | Choosing a Value
Proposition 10 | Marketing Management Orientations 10
Preparing an Integrated Marketing Plan
and Program 13
Building Customer Relationships 13
Analyzing the Current Business Portfolio 41 | Developing
Strategies for Growth and Downsizing 43
Partnering with Other Company Departments 46 |
Partnering with Others in the Marketing System 47
Marketing Strategy and the Marketing Mix 48
Customer-Driven Marketing Strategy 49
Real Marketing 2.2 Niching Voluntourism, A New Way to See
the World 51
Developing an Integrated Marketing Mix 52
Managing the Marketing Effort 53
Marketing Analysis 54 | Marketing Planning 54 | Marketing
Implementation 56 | Marketing Department Organization 56 |
Marketing Control 57
Measuring and Managing Return on Marketing
Investment 58
Customer Relationship Management 14
Reviewing Objectives and Key Terms 60 | Key Terms 61 |
Discussing and Applying the Concepts 61 | Focus on
Technology 61 | Focus on Ethics 62 | Marketing by the
Numbers 62
Real Marketing 1.1 Etisalat: Delighting Customers 15
The Changing Nature of Customer Relationships 16
Real Marketing 1.2 Media and Direct Communication
Trends in the Arab World 19
Video Case: Live Nation 62
Company Case Bahrain Bay: Building Customer
Partner Relationship Management 20
Capturing Value from Customers 21
Creating Customer Loyalty and Retention 21 | Growing
Share of Customer 22 | Building Customer Equity 22
The Changing Marketing Landscape 24
The Digital Age 24 | Rapid Globalization 26 | The Call
for More Ethics and Social Responsibility 27 | The Growth
of Not-for-Profit Marketing 27
So, What is Marketing? Pulling It All Together 28
Reviewing Objectives and Key Terms 30 | Key Terms 31 |
Discussing & Applying the Concepts 32 | Focus on
Technology 32 | Focus on Ethics 32 | Marketing
by the Numbers 33
33
Company and Marketing Strategy:
Partnering to Build Customer
Relationships 36
Chapter Preview 36
Objective Outline 38
Designing the Business Portfolio 41
Real Marketing 2.1 Mo’men Sandwich: A Recipe for Success 44
Marketing Defined 5 | The Marketing Process 5
Chapter 2
Defining a Market-Oriented Mission 39 | Setting Company
Objectives and Goals 39
Planning Marketing: Partnering to Build Customer
Relationships 46
Understanding the Marketplace and Customer
Needs 6
Video Case: Harley-Davidson 33
Company Case Diwan: A Tale of Heart Over Matter
Companywide Strategic Planning: Defining
Marketing’s Role 37
Relations for the Future 63
Part 2
Understanding the Marketplace and
Consumers 65
Chapter 3
Analyzing the Marketing
Environment 66
Chapter Preview 66
Objective Outline 68
The Company’s Microenvironment 68
The Company 69 | Suppliers 69 | Marketing Intermediaries 69 | Competitors 70 | Publics 70 | Customers 71
The Company’s Macroenvironment 71
Demographic Environment 72
Changing Age Structure of the Population 73 | The Changing
Arab Family 75
Real Marketing 3.1 Niching: ‘On the Run’ in Egypt 76
Geographic Shifts in Population 77 | Education and
Employment 77 | Increasing Diversity 78
viii
A01_KOTL5681_01_SE_FM.indd viii
8/31/11 9:00 PM
Contents
Economic Environment 79
Changes in Income 79 | Changing Consumer Spending
Patterns 80
Natural Environment 80
Technological Environment 82
Political and Social Environment 83
Cultural Environment 85
Responding to the Marketing Environment 88
Real Marketing 3.2 First National Bank: Now You Can
Be a Movie Star 89
Reviewing Objectives and Key Terms 90 | Key
Terms 90 | Discussing and Applying the Concepts 91 | Focus
on Technology 91 | Focus on Ethics 91 | Marketing by the
Numbers 92
92
Marketing Research 94
Chapter Preview 94
Objective Outline 96
Marketing Information and Customer Insights 95
Assessing Marketing Information Needs 97
Developing Marketing Information 98
Internal Data 98 | Marketing Intelligence 99
Marketing Research 100
Defining the Problem and Research Objectives 100 |
Developing the Research Plan 101 | Gathering Secondary
Data 101 | Primary Data Collection 103
Real Marketing 4.1 Collecting Brand Information
in the Arab World 109
Implementing the Research Plan 111 | Interpreting and
Reporting the Findings 111
Analyzing and Using Marketing Information 112
Customer Relationship Management (CRM) 112 | Distributing
and Using Marketing Information 113
Other Marketing Information Considerations 114
Marketing Research in Small Businesses and Nonprofit
Organizations 114 | International Marketing Research 115 |
Public Policy and Ethics in Marketing Research 116
Real Marketing 4.2 Luxury Brands in the UAE 117
Reviewing Objectives and Key Terms 119 | Key
Terms 120 | Discussing & Applying the Concepts 120 |
Focus on Technology 120 | Focus on Ethics 121
Marketing by the Numbers 121
Company Case Ariel in Egypt: The Value
of Consumer Insight 121
Chapter 5
Consumer Behavior 124
Chapter Preview 124
Objective Outline 126
Model of Consumer Behavior 126
Characteristics Affecting Consumer
Behavior 127
Cultural Factors 127
A01_KOTL5681_01_SE_FM.indd ix
Social Factors 131 | Personal Factors 134 | Psychological
Factors 136
Complex Buying Behavior 139 | Dissonance-Reducing
Buying Behavior 140 | Habitual Buying Behavior 140 |
Variety-Seeking Buying Behavior 140
The Buyer Decision Process 141
Persistence of Cultural Values 85 | Shifts in Secondary Cultural
Values 86
Chapter 4
Real Marketing 5.1 How McDonald’s Markets to the Arab
Consumers 129
Types of Buying Decision Behavior 139
Legislation Regulating Business 83 | Increased Emphasis
on Ethics and Socially Responsible Actions 84
Video Case: TOMS Shoes 92
Company Case Al Jazirah: The Genius Inventor
ix
Need Recognition 141 | Information Search 141 | Evaluation
of Alternatives 142 | Purchase Decision 142 | Postpurchase
Behavior 143
The Buyer Decision Process for New Products 143
Real Marketing 5.2 Lexus: Delighting Customers After the Sale
to Keep Them Coming Back 144
Stages in the Adoption Process 145 | Individual Differences
in Innovativeness 145
Influence of Product Characteristics on Rate
of Adoption 146
Reviewing Objectives and Key Terms 147 | Key Terms 148 |
Discussing & Applying the Concepts 148 | Focus on
Technology 148 | Focus on Ethics 149 | Marketing by
the Numbers 149
Video Case: Wild Planet 149
Company Case Arabic BlackBerry: Adapting to the
Language of the Market 150
Chapter 6
Business Markets and Business
Buyer Behavior 152
Chapter Preview 152
Objective Outline 154
Business Markets 154
Market Structure and Demand 154 | Nature of the
Buying Unit 155 | Types of Decisions and the Decision
Process 156
Real Marketing 6.1 Aramex Partners with Business
Customers 157
Business Buyer Behavior 162
Major Types of Buying Situations 158 | Participants in the
Business Buying Process 159 | Major Influences on Business
Buyers 161
The Business Buying Process 162
Problem Recognition 162 | General Need
Description 163 | Product Specification 163 | Supplier
Search 163 | Proposal Solicitation 163 | Supplier
Selection 163
Real Marketing 6.2 International Marketing Manners:
When in Rome, Do as the Romans Do 164
Order-Routine Specification 164 | Performance Review 165
E-Procurement: Buying on the Internet 166
Institutional and Government Markets 167
Institutional Markets 167 | Government Markets 168
Reviewing Objectives and Key Terms 170 | Key Terms
171 | Discussing & Applying the Concepts 171 | Focus on
Technology 171 | Focus on Ethics 172 | Marketing by the
Numbers 172
Video Case: Eaton 172
Company Case Boeing: Selling a Dream(liner)
173
8/31/11 9:00 PM
x
Contents
Part 3
Designing a Customer-Driven Strategy
and Mix 175
Chapter 7
Customer-Driven Marketing
Strategy: Segmentation, Targeting,
and Positioning 176
Chapter Preview 176
Objective Outline 178
Market Segmentation 178
Segmenting Consumer Markets 178
Real Marketing 7.1 Ramadan Spirit in the Arab World 183
Segmenting Business Markets 184 | Segmenting International
Markets 184 | Requirements for Effective Segmentation 185
Market Targeting 186
Evaluating Market Segments 186 | Selecting Target Market
Segments 187
Real Marketing 7.2 Islamic Banking 189
Socially Responsible Target Marketing 191
Differentiation and Positioning 192
Positioning Maps 193 | Choosing a Differentiation and
Positioning Strategy 193 | Communicating and Delivering the
Chosen Position 197
Reviewing Objectives and Key Terms 198 | Key Terms 199 |
Discussing & Applying the Concepts 199 | Focus on
Technology 199 | Focus on Ethics 200 | Marketing by the
Numbers 200
Video Case: Meredith 200
Company Case The Arab Online World—Microsoft
Maren 200
Chapter 8
Products, Services, and Brands:
Building Customer Value 202
Chapter Preview 202
Objective Outline 204
What is a Product? 204
Products, Services, and Experiences 204 | Levels of Product
and Services 205 | Product and Service Classifications 206
Product and Service Decisions 209
Individual Product and Service Decisions 209 | Product Line
Decisions 213 | Product Mix Decisions 214
Branding Strategy: Building Strong Brands 215
Video Case: Swiss Army Brands 235
Company Case Alshaya: The House of Brands
Chapter 9
New-Product Development and
Product Life-Cycle Strategies 238
Chapter Preview 238
Objective Outline 240
New-Product Development Strategy 240
The New-Product Development Process 241
Idea Generation 242 | Idea Screening 243 | Concept
Development and Testing 244 | Concept Testing 244 |
Marketing Strategy Development 245 | Business
Analysis 246 | Product Development 246 | Test Marketing
247 | Commercialization 249
Managing New-Product Development 250
Customer-Centered New-Product Development 250 |
Team-Based New-Product Development 251 |
Systematic New-Product Development 251
Real Marketing 9.1 Nasamat Al Riyadh: TMG’s New Product in
the Kingdom of Saudi Arabia 252
Product Life-cycle Strategies 253
Introduction Stage 255 | Growth Stage 255 | Maturity Stage 256
Real Marketing 9.2 Etisalat Challenges Different Stages of the
Product Life Cycle 257
Decline Stage 258
Additional Product and Service
Considerations 258
Product Decisions and Social Responsibility 258 | International
Product and Services Marketing 259
Reviewing Objectives and Key Terms 261 | Key Terms 262 |
Discussing & Applying the Concepts 262 | Focus on
Technology 263 | Focus on Ethics 263 | Marketing by the
Numbers 263
Video Case: Electrolux 264
Company Case Activia in Egypt 264
Chapter 10
Pricing 266
Chapter Preview 266
Objective Outline 268
What is a Price? 267
Factors to Consider When Setting Prices 269
Brand Equity 215
Customer Perceptions of Value 269
Real Marketing 8.1 Breakaway Brands: Connecting with
Customers 217
Company and Product Costs 271
Building Strong Brands 218 | Managing
Brands 223 | International and Regional Branding
Decisions 224
Services Marketing 224
Real Marketing 8.2 Fayrouz: An International Brand Built in
the Region 225
Nature and Characteristics of a Service 225 | Marketing
Strategies for Service Firms 227
Real Marketing 8.3 Service Marketing 230
Reviewing Objectives and Key Terms 232 | Key
Terms 233 | Discussing & Applying the Concepts 233 |
Focus on Technology 233 | Focus on Ethics 234 |
Marketing by the Numbers 234
A01_KOTL5681_01_SE_FM.indd x
235
Value-Based Pricing 269
Types of Costs 271
Real Marketing 10.1 Cheap Chinese Products Flood into
Arab Markets 272
Costs at Different Levels of Production 272 | Costs as
a Function of Production Experience 273 | Cost-Plus
Pricing 274 | Break-Even Analysis and Target Profit Pricing 274
Other Internal and External Considerations
Affecting Price Decisions 276
Overall Marketing Strategy, Objectives, and
Mix 276 | Organizational Considerations 277 | The Market
and Demand 277
Real Marketing 10.2 The World Wonder, Dubai 278
Other External Factors 282
8/31/11 9:00 PM
Contents
New-Product Pricing Strategies 283
Chapter 12
Market-Skimming Pricing 283 | Market-Penetration
Pricing 283
Product Mix Pricing Strategies 284
Setting Advertising Objectives 329 | Setting the Advertising
Budget 330 | Developing Advertising Strategy 331
Evaluating Advertising Effectiveness and Return on Advertising
Investment 338 | Other Advertising Considerations 338
Price-Adjustment Strategies 286
Discount and Allowance Pricing 286 | Segmented
Pricing 287 | Psychological Pricing 287 | Promotional
Pricing 288 | Geographical Pricing 289 | Dynamic
Pricing 290 | International Pricing 291
Real Marketing 12.1 Dove: Championing Real Beauty in the
Arab World 340
Price Changes 292
Public Relations 341
Initiating Price Changes 292 | Responding to Price
Changes 293
Reviewing Objectives and Key Terms 295 | Key
Terms 296 | Discussing & Applying the Concepts 296 |
Focus on Technology 297 | Focus on Ethics 297 | Marketing
by the Numbers 297
Video Case: Ikea 298
Company Case Flydubai Pricing Strategy:
Flydubai Enters the Airline Market 298
Personal Selling 345
The Role of the Sales Force 346
Managing the Sales Force 347
Designing Sales Force Strategy and Structure 348 | Recruiting
and Selecting Salespeople 350 | Training
Salespeople 351 | Compensating Salespeople 352 | Supervising
and Motivating Salespeople 352 | Evaluating Salespeople and
Sales-Force Performance 355
Steps in the Selling Process 355 | Personal Selling and
Managing Customer Relationships 357
Sales Promotion 358
Rapid Growth of Sales Promotion 358
Chapter Preview 300
Objective Outline 302
The Promotion Mix 301
Integrated Marketing Communications 303
Real Marketing 12.2 Qatar Automobiles Company 359
Sales Promotion Objectives 359 | Major Sales Promotion
Tools 360 | Developing the Sales Promotion Program 362
The New Marketing Communications Landscape 303 |
The Shifting Marketing Communications Model 303
The Need for Integrated Marketing Communications 304
Reviewing Objectives and Key Terms 363 | Key
Terms 365 | Discussing & Applying the Concepts 365 | Focus
on Technology 365 | Focus on Ethics 365 | Marketing by the
Numbers 366
Real Marketing 11.1 Economic Slowdown and the
Digital Advertising Boom in the Arab World 305
Video Case: The Principal Financial Group 366
Company Case Coca-Cola: Advertising Hits
A View of the Communications Process 307
Steps in Developing Effective Marketing
Communications 308
Chapter 13
Identifying the Target Audienc 308 | Determining
the Communication Objectives 308 | Designing a
Message 309 | Choosing Media 311 | Selecting the
Message Source 313 | Collecting Feedback 313
366
Direct and Online Marketing:
Building Direct Customer
Relationships 368
Chapter Preview 368
Objective Outline 370
The New Direct Marketing Model 370
Growth and Benefits of Direct Marketing 371
Setting the Total Promotion Budget
and Mix 314
Setting the Total Promotion Budget 314
Real Marketing 11.2 Qatar Airways 315
Benefits to Buyers 371 | Benefits to Sellers 372
Shaping the Overall Promotion Mix 316
Integrating the Promotion Mix 319
Customer Databases and Direct Marketing 373
Forms of Direct Marketing 373
Socially Responsible Marketing
Communication 319
Direct-Mail Marketing 374 | Telephone Marketing 375 | DirectResponse Television Marketing 375 | Kiosk
Marketing 376 | New Digital Direct Marketing Technologies 377
Advertising and Sales Promotion 319 | Personal
Selling 320
Online Marketing 379
Reviewing Objectives and Key Terms 320 | Key
Terms 321 | Discussing & Applying the Concepts 321 |
Focus on Technology 322 | Focus on Ethics 322 | Marketing
by the Numbers 322
A01_KOTL5681_01_SE_FM.indd xi
The Role and Impact of Public Relations 342 | Major Public
Relations Tools 343
The Personal Selling Process 355
Communicating Customer
Value: Integrated Marketing
Communications Strategy 300
Video Case: Crispin Porter + Bogusky 323
Company Case Burger King: Promoting a Food Fight
Promotion Mix Strategies:
Advertising and Public
Relations 326
Chapter Preview 326
Objective Outline 328
Advertising 328
Product Line Pricing 284 | Optional-Product
Pricing 285 | Captive-Product Pricing 285 | By-Product
Pricing 285 | Product Bundle Pricing 286
Chapter 11
xi
323
Marketing and the Internet 379 | Online Marketing Domains 380
Real Marketing 13.1 Online Business in the Arab World 381
Setting Up An Online Marketing Presence 384
Creating a Website 384 | Placing Ads and Promotions
Online 386 | Creating or Participating in Online Social
Networks 387
8/31/11 9:00 PM
xii
Contents
Real Marketing 13.2 Social Networks in the Arab World 388
Using Email 389
The Promise and Challenges of Online
Marketing 390
Public Policy Issues in Direct Marketing 390
Irritation, Unfairness, Deception, and Fraud 390 | Invasion of
Privacy 391
Reviewing Objectives and Key Terms 392 | Key
Terms 393 | Discussing & Applying the Concepts 394 | Focus
on Technology 394 | Focus on Ethics 394 | Marketing by the
Numbers 395
Video Case: Google 395
Company Case Elsou2.com: The First Online Supermarket
in the Arab World 395
Chapter 14
Managing Marketing
Channels 400
Chapter Preview 400
Objective Outline 402
Supply Chains and the Value Delivery
Network 401
The Nature and Importance of Marketing
Channels 403
How Channel Members Add Value 403 | Number of Channel
Levels 404
Channel Behavior and Organization 405
Channel Behavior 406 | Vertical Marketing
Systems 407 | Horizontal Marketing Systems 409 | Multichannel
Distribution Systems 409 | Changing Channel Organization 410
Channel Design Decisions 411
Analyzing Consumer Needs 411 | Setting
Channel Objectives 412 | Identifying Major
Alternatives 412 | Evaluating the Major
Alternatives 414 | Designing International Distribution
Channels 414
Channel Management Decisions 415
Selecting Channel Members 415 | Managing and Motivating
Channel Members 415
Real Marketing 14.1 Toys “R” Us 416
Public Policy and Distribution Decisions 417
Marketing Logistics and Supply Chain
Management 417
Nature and Importance of Marketing Logistics 417 | Goals
of the Logistics System 419 | Major Logistics
Functions 419 | Integrated Logistics Management 421
Retailing 423
Types of Retailers 424
Retailer Marketing Decisions 427
Segmentation, Targeting, Differentiation, and Positioning
Decisions 427 | Product Assortment and Services Division 428
Real Marketing 14.2 Orchestrating the Retail Experience 429
Price Decision 430 | Promotion Decision 430 | Place
Decision 430
Wholesaling 431
Agents and Distributors 431
Reviewing Objectives and Key Terms 433 | Key
Terms 434 | Discussing & Applying the Concepts 435 | Focus
on Technology 435 | Focus on Ethics 435 | Marketing by the
Numbers 436
A01_KOTL5681_01_SE_FM.indd xii
Video Case: Progressive 436
Company Case Zara: The Technology Giant of the Fashion
World 436
Part 4
Extending Marketing 439
Chapter 15
Creating Competitive
Advantage 440
Chapter Preview 440
Objective Outline 442
Competitor Analysis 442
Identifying Competitors 442 | Assessing Competitors 443 |
Selecting Competitors to Attack and Avoid 445
Real Marketing 15.1 Middle Eastern Airlines Filling
the Market Gaps 448
Designing a Competitive Intelligence System 448
Competitive Strategies 449
Approaches to Marketing Strategy 449 | Basic Competitive
Strategies 451 | Competitive Positions 452
Real Marketing 15.2 Ritz-Carlton: Creating Customer
Intimacy 453
Market Leader Strategies 454 | Market Challenger
Strategies 456 | Market Follower Strategies 458 | Market
Nicher Strategies 458
Balancing Customer and Competitor
Orientations 459
Reviewing Objectives and Key Terms 460 | Key Terms 461 |
Discussing & Applying the Concepts 461 | Focus on
Technology 461 | Focus on Ethics 462 | Marketing
by the Numbers 462
Video Case: Umpqua Bank 462
Company Case Bose: Competing by Being Truly Different
Chapter 16
463
The Global Marketplace 466
Chapter Preview 466
Objective Outline 468
Global Marketing Today 468
Looking at the Global Marketing Environment 470
The International Trade System 470 | Economic
Environment 472 | Political-Legal
Environment 473 | Cultural Environment 474
Deciding Whether to Go Global 477
Deciding Which Markets to Enter 478
Deciding How to Enter the Market 479
Exporting 480 | Joint Venturing 480 | Direct Investment 481
Deciding on the Global Marketing Program 482
Real Marketing 16.1 Oreos and Milk, Chinese Style 483
Product 484
Real Marketing 16.2 Desserts in Ramadan 485
Promotion 485 | Price 486 | Distribution Channels 487
Deciding on the Global Marketing
Organization 488
Reviewing Objectives and Key Terms 489 | Key Terms 490 |
Discussing & Applying the Concepts 490 | Focus on
Technology 490 | Focus on Ethics 491 | Marketing
by the Numbers 491
Video Case: Nivea 491
Company Case B-Tech: A Successful Regional Brand
492
8/31/11 9:00 PM
xiii
Contents
Chapter 17
Sustainable Marketing: Social
Responsibility and Ethics 494
Chapter Preview 494
Objective Outline 496
Sustainable Marketing 496
Social Criticisms of Marketing 498
Marketing’s Impact on Individual
Consumers 498 | Marketing’s Impact on Society as a
Whole 503 | Marketing’s Impact on Other Businesses 505
Consumer Actions to Promote Sustainable
Marketing 506
Consumerism 506
Real Marketing 17.1 Improving Society Via Cultural and
Islamic Virtues 507
Environmentalism 508 | Public Actions to Regulate
Marketing 512
Business Actions Toward Sustainable
Marketing 513
Sustainable Marketing Principles 513
A01_KOTL5681_01_SE_FM.indd xiii
Real Marketing 17.2 Takaful: A True Customer-Driven
Product 514
Marketing Ethics 517
The Sustainable Company 519
Reviewing Objectives and Key Terms 521 | Key
Terms 522 | Discussing & Applying the Concepts 522 | Focus
on Technology 523 | Focus on Ethics 523 | Marketing by the
Numbers 523
Video Case: Land Rover 524
Company Case ExxonMobil: Social Responsibility in a
Commodity Market 524
Appendix 1 Marketing Plan A1
Appendix 2 Marketing by the Numbers A11
Appendix 3 Careers in Marketing A29
References R1
English-Arabic Glossary G1
Index I1
Credits C1
8/31/11 9:00 PM
Feature matrix
Chapter 1
Chapter opening case
Real Marketing 1.1
Real Marketing 1.2
Company Case
BBK, formerly known as The Bank of Bahrain and
Kuwait B.S.C.
Etisalat: Delighting Customers
Media and Direct Communication Trends in the
Arab World
Diwan: A Tale of Heart Over Matter
Regional
Regional
Regional
Egypt
Chapter 2
Chapter opening case
Real Marketing 2.1
Real Marketing 2.2
Company Case
The London Olympics
Mo’men Sandwich: A Recipe for Success
Niching: Voluntourism, A New Way to See the World
Bahrain Bay: Building Customer Relations for the
Future
United Kingdom
Egypt
Regional
Bahrain
Chapter 3
Chapter opening case
Real Marketing 3.1
Real Marketing 3.2
Company Case
The Dubai property market
Niching: ‘On the Run’ in Egypt
First National Bank: Now You Can Be a Movie Star
Al Jazirah: The Genius Inventor
UAE
Egypt
Lebanon
Saudi Arabia
Chapter 4
Chapter opening case
Real Marketing 4.1
Real Marketing 4.2
Company Case
Maktoob Research’s ‘Arab Eye’ website
Collecting Brand Information in the Arab World
Luxury Brands in the UAE
Ariel in Egypt: The Value of Consumer Insight
Regional
Regional
UAE
Egypt
Chapter 5
Chapter opening case
Real Marketing 5.1
Real Marketing 5.2
Al-Ahli and Zamalek football teams
How McDonald’s Markets to the Arab Consumers
Lexus: Delighting Customers After the Sale to Keep
Them Coming Back
Arabic BlackBerry: Adapting to the Language of
the Market
Egypt
Regional
UAE
Saudi Arabia
Regional
Global
Company Case
Advanced Electronics Company
Aramex Partners with Business Customers
International Marketing Manners: When in Rome,
Do as the Romans Do
Boeing: Selling a Dream(Liner)
Chapter 7
Chapter opening Case
Real Marketing 7.1
Real Marketing 7.2
Company Case
Damas Group
Ramadan Spirit in the Arab World
Islamic Banking
The Arab Online World—Microsoft Maren
Regional
Regional
Regional
Regional
Chapter 8
Chapter opening case
Real Marketing 8.1
Real Marketing 8.2
Real Marketing 8.3
Company Case
Bahrain Islamic Bank
Breakaway Brands: Connecting with Customers
Fayrouz: An International Brand Built in the Region
Service Marketing
Alshaya: The House of Brands
Bahrain
Global
Egypt
Global
Regional
Company Case
Chapter 6
Chapter opening case
Real Marketing 6.1
Real Marketing 6.2
Regional
United States
xiv
A01_KOTL5681_01_SE_FM.indd xiv
8/31/11 9:00 PM
Feature matrix
Global
Saudi Arabia
Company Case
Apple
Nasamat Al Riyadh: TMG’s New Product in the
Kingdom of Saudi Arabia
Etisalat Challenges Different Stages of the Product
Life Cycle
Activia in Egypt
Chapter 10
Chapter opening case
Real Marketing 10.1
Real Marketing 10.2
Company Case
Carrefour
Cheap Chinese Products Flood into Arab Markets
The World Wonder, Dubai
Flydubai Pricing Strategy
Regional
Regional
UAE
UAE
Chapter 11
Chapter opening case
Real Marketing 11.1
Regional
Regional
Real Marketing 11.2
Company Case
Unilever Arabia
Economic Slowdown and the Digital Advertising
Boom in the Arab World
Qatar Airways
Burger King: Promoting a Food Fight
Qatar
Global
Chapter 12
Chapter opening case
Real Marketing 12.1
Real Marketing 12.2
Company Case
TBWA\RAAD
Dove: Championing Real Beauty in the Arab World
Qatar Automobiles Company
Coca-Cola: Advertising Hits
UAE
Regional
Qatar
Regional
Chapter 13
Chapter opening case
Real Marketing 13.1
Real Marketing 13.2
Company Case
Amazon.com
Online Business in the Arab World
Social Networks in the Arab World
Elsou2.com: The First Online Supermarket in the
Arab World
Global
Regional
Regional
Egypt
Chapter 14
Chapter opening case
Real Marketing 14.1
Real Marketing 14.2
Company Case
Al Zaytoun
Toys “R” Us
Orchestrating the Retail Experience
Zara: The Technology Giant of the Fashion World
Palestine
Regional
Global
Global
Chapter 15
Chapter opening case
Real Marketing 15.1
Real Marketing 15.2
Company Case
Bahrain Polytechnic
Middle Eastern Airlines Filling the Market Gaps
Ritz-Carlton: Creating Customer Intimacy
Bose: Competing by Being Truly Different
Bahrain
Regional
Global
Global
Chapter 16
Chapter opening case
Real Marketing 16.1
Real Marketing 16.2
Company Case
McDonald’s
Oreos and Milk, Chinese Style
Ramadan Desserts
B-Tech: A Successful Regional Brand
Global
China
Regional
Egypt
Chapter 17
Chapter opening
case
Real Marketing 17.1
Real Marketing 17.2
Company Case
CSR Middle East
Regional
Improving Society Via Cultural and Islamic Virtues
Takaful: A True Customer-Driven Product
ExxonMobil: Social Responsibility in a Commodity
Market
Regional
Regional
United States
Chapter 9
Chapter opening Case
Real Marketing 9.1
Real Marketing 9.2
A01_KOTL5681_01_SE_FM.indd xv
xv
Regional
Egypt
8/31/11 9:00 PM
A01_DAVI5674_01_SE_FM.indd ii
8/17/11 5:41 PM
Foreword
We are very pleased to see the Arab World Edition of Principles of Marketing.The text was first
published for the North America region and has been successfully adopted by hundreds of universities in the Middle East and in other parts of the world. This great edition for the Arab world
demonstrates that this textbook, in its scope and depth, effectively meets the demands of educators for a book that offers a comprehensive focus on marketing as a tool for creating valuable
customer experiences in various and changing cultural settings.
The Arab World Edition brings to the readers the local marketing scenario, perspectives, and
practices through case studies and examples.
The book provides local insights into the exciting world of marketing in a region that has
become a competing arena for increasing numbers of national and multinational corporations.
While maintaining the essence of the original U.S. edition, this Arab world version provides
students with concepts, approaches, and examples relevant to the Arab culture and its business
environment.
We are thrilled to see it available for educators and students in the Arab world and hope that
they find it useful.
Philip Kotler
Gary Armstrong
xvii
A01_KOTL5681_01_SE_FM.indd xvii
8/31/11 9:00 PM
Preface
The New Arab World Edition! Creating More Value
for You!
The goal of every marketer is to create more value for customers. So it makes sense that our goal
for the new Arab World Edition of Kotler & Armstrong’s Principles of Marketing is to continue
creating more value for you—our customer. Our goal is to introduce you to the fascinating
world of modern marketing in an innovative yet practical and enjoyable way, incorporating
relevant examples from across the Arab region and across the globe. In this way, the Arab World
Edition has the advantage of offering the best of both the regional, as well as the global, worlds
of marketing.
This Arab World Edition aims to help students in the region to understand and apply the
concepts and practices of modern marketing, by relating marketing strategies and theory to
students’ experiences in daily life. We have tried to bring to life global marketing concepts by
showcasing and analyzing regional marketing initiatives and practices from all over the Arab
world. Of course, we have also retained global examples which demonstrate marketing theory
and practice in an international context. In this way, the Arab World Edition has the advantage of
offering the best of both the regional, as well as the global, worlds of marketing.
Marketing: Creating Customer Value
and Relationships
A recent survey of top marketers showed that they all share a common goal: putting the consumer
at the heart of marketing. Today’s marketing is all about creating customer value and building
profitable customer relationships. It starts with understanding consumer needs and wants, deciding which target markets the organization can serve best, and developing a compelling value
proposition by which the organization can attract, keep, and grow targeted consumers. If the
organization does these things well, it will reap the rewards in terms of market share, profits, and
customer equity.
Five Major Value Themes
From beginning to end, the Arab World Edition of Principles of Marketing develops an innovative
customer-value and customer-relationships framework that captures the essence of today’s marketing. It builds on five major value themes:
1. Creating value for customers in order to capture value from customers in return. Today’s marketers must be good at creating customer value and managing customer relationships. Outstanding
marketing companies understand the marketplace and customer needs, design value-creating
marketing strategies, develop integrated marketing programs that deliver customer value and
delight, and build strong customer relationships. In return, they capture value from customers
in the form of sales, profits, and customer loyalty.
This innovative customer-value framework is introduced at the start of Chapter 1 in a fivestep marketing process model, which details how marketing creates customer value and captures value in return. The framework is carefully explained in the first two chapters and then
fully integrated throughout the remainder of the text.
2. Building and managing strong, value-creating brands. Well-positioned brands with strong
brand equity provide the basis upon which to build customer value and profitable customer
relationships. Today’s marketers must position their brands powerfully and manage them
well. They must build close brand relationships and experiences with customers.
3. Measuring and managing return on marketing. Marketing managers must ensure that
their marketing budgets are being spent wisely. In the past, many marketers spent freely
on big, expensive marketing programs, often without thinking carefully about the financial returns on their spending. But that has all been changing in recent years. ‘Marketing
xviii
A01_KOTL5681_01_SE_FM.indd xviii
8/31/11 9:00 PM
Preface
xix
accountability’—measuring and managing return on marketing investments—has now
become an important part of strategic marketing decision making. This emphasis on marketing accountability is addressed throughout this book.
4. Harnessing new marketing technologies. New digital and other high-tech marketing developments are dramatically changing how consumers and marketers relate to one another. The
Arab World Edition thoroughly explores the new technologies impacting marketing, from
‘Web 2.0’ in Chapter 1 to new-age digital marketing and online technologies in Chapters 12
and 13 to the exploding use of online social networks and customer-generated marketing in
Chapters 1, 5, 11, 13, and elsewhere.
5. Sustainable marketing around the globe. As technological developments make the world an
increasingly smaller and more fragile place, marketers must be good at marketing their brands
globally and in responsible and ethical ways. Material and examples throughout the Arab
World Edition emphasize the concept of sustainable marketing—meeting the present needs of
consumers and businesses while also preserving or enhancing the ability of future generations
to meet their needs.
Adapted for Students in the Arab World
We’ve thoroughly adapted Principles of Marketing to meet the needs of students in the Arab region,
by including examples which reflect the marketing environment and experience of businesses
operating in the Arab region, while still retaining a global perspective overall. We have also
included cultural and social insights which will be more familiar and relevant to our audience.
We retain Kotler & Armstrong’s successful formula: a sharp focus on how to create, communicate
and deliver value to customers, and we discuss the major trends and forces impacting marketing
in this era of customer value and relationships. Here are just some of the ways in which we’ve
adapted the book to be ideal for students in the Arab world.
• Throughout each chapter, Arab businesses and familiar cultural examples are integrated into
the text, making the whole book more relevant for our readers.
• In-depth case studies in each chapter show marketing principles and concepts in practice, at
the Chapter Openers, the in-chapter “Real Marketing” boxes, and end-of-chapter Company
Cases. These now feature a well-balanced spread of global examples alongside companies and examples from across the Arab region including Saudi Arabia, the United Arab
Emirates, Egypt, Jordan, Palestine, Lebanon, Qatar, Bahrain, Kuwait, Northern Africa, and
elsewhere.
• An English-Arabic Glossary has been added at the end of the book, providing a translation of
the key terms found in each chapter.
• Each chapter has been carefully edited to adapt the English vocabulary to be sympathetic to
students whose first language is not English. We have ensured that over-complicated words,
sayings or idioms are replaced with straightforward language so that students can focus their
energy on understanding the concepts.
• The book has been reduced in length to 17 focused chapters, to meet the demand for a resource
which is easier to handle and cover in the time available.
Real Value Through Real Marketing
Principles of Marketing features in-depth, real-world examples and stories that show concepts in
action and reveal the drama of modern marketing. In the Arab World Edition, every Chapter
Opening case study, “Real Marketing” box and end-of-chapter Company Case has been reviewed
for its relevance to you, our Arab world audience. We have replaced many of these case studies
throughout the book with examples from the Arab region which will provide familiar, fresh and
relevant insights into real marketing practices. We have deliberately retained many other examples from across the world to emphasize the global nature of modern day marketing. A selection
of these examples include the following:
• BBK Bank (formerly The Bank of Bahrain and Kuwait) has grown to become a leading
commercial bank in its markets, by focusing on client-driven customer service, employee
development and brand building. (Chapter 1)
A01_KOTL5681_01_SE_FM.indd xix
8/31/11 9:00 PM
xx
Preface
• The ‘voluntourism’ movement has sprung up to meet the needs of a particular niche – we
explore voluntourism programmes operating in Jordan, Syria, Lebanon and elsewhere.
(Chapter 2)
• Saudi Arabian company Al Jazirah has capitalized on environmental factors in successfully
developing and marketing its evaporative coolers. (Chapter 3)
• Proctor & Gamble launched its Ariel product into Egypt, based on rigorous market research
and a solid understanding of the current habits and needs of potential customers. (Chapter 4)
• The devoted and divided fan bases of the Egyptian football teams Al-Ahly and Zamalek show
the importance of social and cultural interests such as football in shaping consumer behavior.
(Chapter 5)
• Advanced Electronics Company (AEC), the Saudi-based company, has developed an international client base including Boeing, Lockheed Martin, Rockwell International, Saudi Ministry of
Water & Electricity, Aramco, Siemens, Nokia. It has built an approach to business-to-business
marketing based on deep relationships with clients, to become a strategic, problem-solving
partner. (Chapter 6)
• Damas Group, the jewelry and watch retailer operating across the Arab world and beyond,
uses segmentation wisely to target different customer groups. (Chapter 7)
• Microsoft developed its Maren product, which represented a leap forward in addressing
the problem of using Arabic language online and with a QWERTY keyboard, by working to
understand customer needs and responses in depth. (Chapter 7)
• Alshaya understands the importance of brands, and uses this knowledge to operate franchises
of many international brands in the Arab world. (Chapter 8)
• Apple founder Steve Jobs used dazzling customer-driven innovation to first start the company
and then to remake it again 20 years later. (Chapter 9)
• Flydubai used pricing strategy to meet the demand for low cost flights and launch as a new
airline in the UAE. (Chapter 10)
• Coca-Cola combines music and advertising to appeal to its customers, with recent campaigns
in the Middle East including Nancy Ajram to raise profile. (Chapter 12)
• Amazon.com has developed industry-leading expertise in using the internet as a tool for
delivering customer value. (Chapter 13)
• Bahrain Polytechnic has created a clear competitive advantage for its target students by distinctly differentiating itself from its competitors. (Chapter 15)
• McDonald’s, the quintessential all-American company, now sells more burgers and fries outside the United States than within. We explore its journey into the Russian market. (Chapter 16)
• CSR Middle East promotes corporate social responsibility across the region by working closely
with a range of businesses, organizations and NGOs. (Chapter 17)
Each chapter is packed with countless real, relevant, and timely examples that reinforce key
concepts and bring marketing to life.
Valuable Learning Aids
The Arab World Edition continues the hallmark approach to text design crafted in Principles of
Marketing, to inspire students and present everything as clearly as possible. A wealth of chapteropening, in-chapter, and end-of-chapter learning devices help students to learn, link, and apply
major concepts:
• Chapter Preview. As part of an active and integrative chapter-opening design, a brief section at
the beginning of each chapter previews chapter concepts, links them with previous chapter
concepts, and introduces the chapter-opening story.
• Chapter-opening marketing stories. Each chapter begins with an engaging, deeply developed,
illustrated, and annotated marketing story that introduces the chapter material and sparks
student interest. Many relevant and inspiring examples from the Arab world have been added.
• Objective outline. This chapter-opening feature provides a helpful preview outline of chapter
contents and learning objectives.
• Author comments and figure annotations. Throughout the chapter, author comments ease and
enhance student learning by introducing and explaining major chapter sections. There are also
comment bubbles on the figures to help explain concepts to students.
A01_KOTL5681_01_SE_FM.indd xx
8/31/11 9:00 PM
Preface
xxi
• Real Marketing boxes. Each chapter contains two boxed case study features that provide an indepth look at real marketing practices of large and small companies, including a wide range of
new examples from the Arab world.
• Reviewing the Objectives and Key Terms. A summary at the end of each chapter reviews major
chapter concepts, chapter objectives, and key terms.
• Discussing and Applying the Concepts. Each chapter contains a set of discussion questions and
application exercises covering major chapter concepts.
• Focus on Technology. Application exercises at the end of each chapter provide discussion of
important and emerging marketing technologies in this digital age.
• Focus on Ethics. Situation descriptions and questions highlight important issues in marketing
ethics at the end of each chapter.
• Marketing by the Numbers. An exercise at the end of each chapter lets students apply analytical and financial thinking to relevant chapter concepts and links the chapter to Appendix 2:
Marketing by the Numbers.
• Company Cases. Company cases for class or written discussion are provided at the end of each
chapter—many of these are now developed specifically for the Arab World Edition. These
cases challenge students to apply marketing principles to real companies in real situations.
• Video Cases. Short cases and discussion questions appear at the end of every chapter, to be used
with the set of 4- to 6-minute videos that accompany this edition.
• Marketing Plan appendix. Appendix 1 contains a sample marketing plan that helps students to
apply important marketing planning concepts.
• Marketing by the Numbers appendix. An innovative Appendix 2 provides students with a comprehensive introduction to the marketing financial analysis that helps to guide, assess, and
support marketing decisions.
More than ever before, the Arab World Edition of Principles of Marketing creates value for
you—it gives you all you need to know about marketing in an effective and enjoyable total learning package!
A Valuable Learning Package
A successful marketing course requires more than a well-written book. A total package of
resources extends this edition’s emphasis on creating value for you. The following aids support
Principles of Marketing.
Videos
The video library features exciting segments for this edition. All segments are available in mymarketinglab. Here are just a few of the videos offered:
Live Nation’s Customer Relationships
TOMS Shoes’ Marketing Environment
E*TRADE’s Advertising and PR Strategies
Principle Financial Group’s Personal Selling
Umpqua Bank’s Competitive Advantage
mymarketinglab (www.pearsoned.co.uk/kotler) gives you the opportunity to test yourself on
key concepts and skills, track your own progress through the course, and use the personalized
study plan activities—all to help you achieve success in the classroom.
Features include:
• Personalized study plans—Pre- and post-tests with remediation activities directed to help
you understand and apply the concepts where you need the most help.
• Self-assessments—Prebuilt self-assessments allow you to test yourself.
A01_KOTL5681_01_SE_FM.indd xxi
8/31/11 9:00 PM
xxii
Preface
• Interactive elements—A wealth of hands-on activities and exercises let you experience
and learn firsthand. Whether it is with the online e-book where you can search for
specific keywords or page numbers, highlight specific sections, enter notes right on the
e-book page, and print reading assignments with notes for later review or with other
materials including “Real People Real Choices Video Cases,” online end-of-chapter
activities, “Active Flashcards,” and much more.
• iQuizzes—Study anytime, anywhere—iQuizzes work on any color-screen iPod and are
comprised of a sequence of quiz questions, specifically created for the iPod screen.
Find out more at www.pearsoned.co.uk/kotler.
No book is the work only of its authors. We greatly appreciate the valuable contributions of several people who helped make this new edition possible.
Anwar Habib: I would like to acknowledge the continuous inspiration and support of my
wife Fahmida in writing this text. I would also like to thank Nada Yaghi, my ex-student,
for her valuable research and support in selecting appropriate regional examples for the
text. Finally I would like to thank all the regional organizations, like MAF group, Unilever,
Masafi, and Al Islami Foods, who have supported me with case study materials and other
information. I’d also like to extend a special thanks to Sarah Wightman for her excellent
editorial support.
Ahmed Tolba: I would like to dedicate this edition to my wife Nayla and my kids Ismail and
Amina. I would also like thank Ahmed El Banhawy for his significant contribution to the
completion of this textbook, and my teaching assistants Laila Yassin and Ali El Gendy for
their remarkable efforts in finding appropriate regional case studies. Finally, I would like to
thank everyone at Pearson for their significant efforts and professional support.
Anwar Habib
Ahmed Tolba
A01_KOTL5681_01_SE_FM.indd xxii
8/31/11 9:01 PM
Acknowledgments
We would like to thank the following reviewers for their thoughtful comments and suggestions
for this new Arab World Edition:
Dr Saleh AlShebil, King Fahd University of Petroleum & Minerals, Saudi Arabia
Dr Ibrahim Hegazy, American University of Cairo, Egypt
Professor Peter Mason, American University of Sharjah, UAE
Dr Ahmad Zamil, King Saud University, Saudi Arabia
Dr Abdullah Sultan, Kuwait University, Kuwait
Professor Hassan Naja, Lebanese American University, Lebanon
Dr Imad Baalbaki, American University of Beirut, Lebanon
Dr Jean Boisvert, American University of Sharjah, UAE
Dr Samaa Attia, British University in Egypt, Egypt
Professor Mariam Abou-Youssef, German University in Cairo, Egypt
Professor Abbas Abu Altimen, University of Sharjah, UAE
Dr Ahmed Ghoneim, Cairo University, Egypt
Dr Hani Al-Dmour, University of Jordan, Jordan
Dr Rania Hussein, Cairo University, Egypt
Dr Khaled Hanafy, Arab Academy for Science, Technology & Maritime Transport, Egypt
Dr Mohamed A. Radwan, American University in Cairo, Egypt
We would also like to thank contributors Dr. Mohamed A. Radwan, Adjunct Faculty at American
University in Cairo and Managing Director of Platinum Partners, Mike Lewicki, Marketing
Instructor at the University College of Bahrain, and Owen Davies, who provided additional
material for this text. Their excellent work has added real value to this edition.
Many reviewers and contributors have provided valuable comments and suggestions for
previous editions of Principles of Marketing. We’d like to thank them all for their insights, which
have informed our work on this adaptation.
xxiii
A01_KOTL5681_01_SE_FM.indd xxiii
8/31/11 9:01 PM
PART 3
Designing a Customer-Driven
Strategy and Mix
CHAPTER 7
Customer-Driven Marketing Strategy: Segmentation, Targeting,
and Positioning
CHAPTER 8
Products, Services, and Brands: Building Customer Value
CHAPTER 9
New-Product Development and Product Life-Cycle Strategies
CHAPTER 10
Pricing
CHAPTER 11
Communicating Customer Value: Integrated Marketing
Communications Strategy
CHAPTER 12
Promotion Mix Strategies: Advertising and Public Relations
CHAPTER 13
Direct and Online Marketing: Building Direct Customer Relationships
CHAPTER 14
Managing Marketing Channels
M07_KOTL5681_01_SE_C07.indd 175
29/08/11 9:21 PM
Chapter 7
Part
Part
Part
Part
1
2
3
4
Defining Marketing and the Marketing Process (Chapters 1, 2)
Understanding the Marketplace and Consumers (Chapters 3, 4, 5, 6)
Designing a Customer-Driven Strategy and Mix (Chapters 7, 8, 9, 10, 11, 12, 13, 14)
Extending Marketing (Chapters 15, 16, 17)
Customer-Driven Marketing
Strategy
Segmentation, Targeting,
and Positioning
Chapter
PREVIEW
So far, you’ve learned what marketing is and
about the importance of understanding consumers and the marketplace environment. With
that as background, you’re now ready to delve deeper into marketing strategy and tactics. This chapter looks further into key
customer-driven marketing strategy decisions—how to divide up
D
amas Group is a jewelry and watch retailer that has
expanded into 18 countries around the world with about
450 stores. The group is the most widespread jewelry and
watch retailer in the Arab world, in terms of number of stores. The
group has subsidiaries mainly in the Arab world, India, and Italy. It
also has jointly controlled entities and associates in the Arab world,
Europe, North Africa, and other locations. Damas sells its own brands,
and it also sells other top international and Arab world brands.
It might be perceived that Damas focuses merely on the high-end
consumer, yet this is not absolutely correct. Essentially, Damas targets
three types of consumers through selling its brands in three types of
stores: Les Exclusives stores, Semi-Exclusive stores, and Damas 22K
stores. The Les Exclusives stores mainly serve “high net worth consumers,” and offer highly extravagant worldwide brands in addition
to Damas’ own products. Semi-Exclusive stores target “upper-middle
income consumers” with products that are relatively less unique,
but appeal to a broader spectrum of consumers, such as tourists and
expatriates, professionals, and office workers. These stores sell international brands, along with Damas’ products. Thirdly, Damas 22K
stores target “middle income and working class immigrant populations,” and sell Damas’ products along with some regional brands.
While the above are the main stores, Damas targets other segments by
selling in other stores, such as Damas Kids for youngsters and families, and Mono-stores specializing in certain global brands, including
Tiffany & Co, Paspaley, Graff, Parmigiani, Stefan Hafner, Links of
London, Roberto Coin, Roberta Porrati and Folli Follie.1
Let’s take a closer look at Damas’ A-segment in its Les
Exclusives Boutiques. In Dubai, Damas holds the Luxury Week
event, which displays the extravagant and up-to-date jewelry and
watch collections at the city’s renowned shopping site. Shoppers at
that event are treated with gifts with every purchase they make. The
occasion, which is attended by journalists and VIPs, gives A-class
buyers the chance to purchase the latest fashionable brands in the
markets into meaningful customer groups (segmentation), choose
which customer groups to serve (targeting), create market offerings that best serve targeted customers (differentiation), and position the offerings in the minds of consumers (positioning). Then,
the chapters that follow explore the tactical marketing tools—the
Four Ps—by which marketers bring these strategies to life. A good
example of segmentation in the Arab world is Damas, as discussed
in the example here.
jewelry and watch markets brought from all over the world. The list
ranges from standard brands to modish celebrated worldwide brand
names, such as Carrera y Carrera and Mikimoto; world-renowned
Italian jewelry brands such as Roberto Coin, Marco Bicego, Fope,
Luca Carati, and Leo Pizzo; famous Spanish brand Magerit; in addition to a wide collection of watches crafted by legendary watch
brands, including Chronoswiss, Parmigiani, Perrelet, Roger Dubuis,
and Sarcar.
Tamjid Abdullah, deputy managing
Damas has its own
director, Damas, says: “In keeping with
designs, targeting
the growing international profile of Dubai,
different
segments
Damas has always sought to bring customers
from
different
age
a versatile array of brands acknowledged for
ranges
and
differtheir style definition and creative exuberance.
ent income levels.
And I am happy to say that it is their enthusiastic appreciation and
support of our efforts
that has provided us the
incentive to forge ahead
as true pioneers. During
the Damas Luxury Week,
shoppers will be treated
to a thrilling selection of
the most exclusive diamond, gold and pearl
jewelry collections, by
the world’s leading jewelry and watch brands.
Such events also provide
brilliant testimony to the
tremendous trust Damas
enjoys with its international partners.”2
176
M07_KOTL5681_01_SE_C07.indd 176
29/08/11 9:21 PM
Chapter 7
| Customer-Driven Marketing Strategy: Segmentation, Targeting, and Positioning
177
Recently, Les Exclusives Boutiques in the UAE have added a new
collection of the leading Italian design house, Roberto Coin. Roberto
Coin is featured by its best-selling Cento Collection, which is based
on the artistic designs of the luxurious 100-facet Cento diamonds. In
Les Exclusives shops, Roberto Coin offers the latest of its collections.
Tawhid Abdullah, managing director of Damas, added: “The extensive Roberto Coin collection has been launched to create [a] distinct
modern look for contemporary woman and set a different trend this
festive season. Thus on one side it captures the hearts of discerning
followers of fashion and on the other complement[s] the personality
of the wearer. Roberto Coin’s vibrant creations blend color and an eye
for detail that has helped the brand carve a niche in the highly competitive Middle East market and Mr Coin’s recent visit to Dubai is
proof of his close affinity to jewelry lovers in this part of the globe.”3
Roberto Coin, CEO of the brand, commented: “You must
understand that Roberto Coin is a niche jewelry brand which
unwaveringly upholds and perfects its standards to stay at the top
important market for us and the growth
Damas Les Exclusives
by constant innovation and creativity. We use some of the world’s
potential for Italian jewelry is enormous. I
in Dubai holds the
finest jewels and our treatment of the most precious metals and
am extremely happy to know that Roberto
Luxury Week event,
stones have given new meaning to the words ’top-class.’ Thus I creCoin has found a loyal following driven by
which displays the
ate jewelry for a woman who has her own personal style, is intellia huge demand from the style conscious of
extravagant and
5
gent, witty and has grace. So it is natural that my inspiration comes
the region.”
up-to-date jewelry
4
The Arab world has become a
from the elegance of femininity.”
and watch collections
Around the world, Roberto Coin’s name appeals to the
promising region for the most luxurious
at the city’s renowned
A-segment; this includes famous Hollywood stars and VIPs in all
brands, local and global. In fact, the region
shopping site.
fields in Europe. Roberto Coin now is positioned among the most
displays a wide array of demographic
famous jewelry brands in
segmentation from highly
the United States, and is
rich to low-income buyers.
When Damas decided to target and position itself in the
the leading Italian jewelry
This makes it easy for marmarket, it created a variety of store brands targeting the
brand. Roberto Coin finds
keters to find their target;
his target niche in the Arab
however, it is a tougher job
different segments not only by income but also according
world as well. Coin said,
to convey sound product
to age and ethnicity.
“The Middle East is a very
positioning.
Market segmentation
Dividing a market into smaller groups
with distinct needs, characteristics, or
behavior that might require separate marketing strategies or mixes.
Market targeting (targeting)
The process of evaluating each market
segment’s attractiveness and selecting
one or more segments to enter.
Differentiation
Actually differentiating the market offering to create superior customer value.
Positioning
Arranging for a market offering to occupy
a clear, distinctive, and desirable place relative to competing products in the minds
of target consumers.
M07_KOTL5681_01_SE_C07.indd 177
Companies today recognize that they cannot appeal to all buyers in the marketplace, or at
least not to all buyers in the same way. Buyers are too numerous, too widely scattered, and too
varied in their needs and buying practices. Moreover, the companies themselves vary widely
in their abilities to serve different segments of the market. Instead, a company must identify
the parts of the market that it can serve best and most profitably. It must design customerdriven marketing strategies that build the right relationships with the right customers.
Thus, most companies have moved away from mass marketing and toward target
marketing—identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each. Instead of scattering their marketing efforts,
firms are focusing on the buyers who have greater interest in the values they create best.
Figure 7.1 shows the four major steps in designing a customer-driven marketing
strategy. In the first two steps, the company selects the customers that it will serve. Market
segmentation involves dividing a market into smaller groups of buyers with distinct
needs, characteristics, or behaviors that might require separate marketing strategies or
mixes. The company identifies different ways to segment the market and develops profiles
of the resulting market segments. Market targeting (or targeting) consists of evaluating
each market segment’s attractiveness and selecting one or more market segments to enter.
In the final two steps, the company decides on a value proposition—on how it will create value for target customers. Differentiation involves actually differentiating the firm’s
market offering to create superior customer value. Positioning consists of arranging for
a market offering to occupy a clear, distinctive, and desirable place relative to competing
products in the minds of target consumers. We discuss each of these steps in turn.
29/08/11 9:21 PM
Objective Outline
OBJECTIVE 1 Define the major steps in designing a customer-driven marketing
strategy: market segmentation, targeting, differentiation, and positioning.
Customer-Driven Marketing Strategy 177
OBJECTIVE 2 List and discuss the major bases for segmenting consumer and
business markets.
Market Segmentation 178–186
OBJECTIVE 3 Explain how companies identify attractive market segments
and choose a market-targeting strategy.
Market Targeting 186–192
OBJECTIVE 4 Discuss how companies differentiate and position their products
for maximum competitive advantage in the marketplace.
Differentiation and Positioning 192–198
Market Segmentation (pp 178–186)
Author Market segmentation
Comment addresses the first simple-
Buyers in any market differ in their wants, resources, locations, buying attitudes, and buying
practices. Through market segmentation, companies divide large, heterogeneous markets
into smaller segments that can be reached more efficiently and effectively with products and
services that match their unique needs. In this section, we discuss four important segmentation topics: segmenting consumer markets, segmenting business markets, segmenting international markets, and requirements for effective segmentation.
sounding marketing question: What
customers will we serve? The answer
will be different for each company. For
example, The Four Seasons targets the
top 5 percent of corporate and leisure
travelers. Holiday Inn targets middleclass people traveling on a budget.
Segmenting Consumer Markets
There is no single way to segment a market. A marketer has to try different segmentation
variables, alone and in combination, to find the best way to view the market structure.
Table 7.1 outlines the major variables that might be used in segmenting consumer
markets. Here we look at the major geographic, demographic, psychographic, and behavioral
variables.
Geographic segmentation
Dividing a market into different geographical units such as nations, provinces,
regions, cities, or neighborhoods.
FIGURE | 7.1
Designing a CustomerDriven Marketing Strategy
In concept, marketing boils down to
two questions: (1) Which customers
will we serve? and (2) How will we
serve them? Of course, the tough
part is coming up with good answers
to these simple-sounding but difficult
questions. The goal is to create more
value for the customers we serve
than competitors do.
Geographic Segmentation
Geographic segmentation calls for dividing the market into different geographical units
such as nations, regions, provinces, parishes, cities, or even neighborhoods. A company
Select customers to serve
Decide on a value proposition
Segmentation
Divide the total market into
smaller segments
Differentiation
Differentiate the market offering
to create superior customer value
Targeting
Select the segment or
segments to enter
Create value
for targeted
customers
Positioning
Position the market offering in
the minds of target customers
178
M07_KOTL5681_01_SE_C07.indd 178
29/08/11 9:21 PM
Chapter 7
TABLE | 7.1
| Customer-Driven Marketing Strategy: Segmentation, Targeting, and Positioning
179
Major Segmentation Variables for Consumer Markets
Geographic
Examples
World region or country
Western Europe, Arab world, Pacific Rim, China, India, Canada, Mexico, North America
Country region
North Africa, The Gulf, Near East
City or metro size
Under 5,000; 5,000–20,000; 20,000–50,000; 50,000–100,000; 100,000–250,000; 250,000–500,000;
500,000–1,000,000; 1,000,000–4,000,000; over 4,000,000
Density
Urban, suburban, ex-urban, rural
Climate
Northern, southern
Demographic
Examples
Age
Under 6, 6–11, 12–19, 20–34, 35–49, 50–64, 65+
Gender
Male, female
Family size
1–2, 3–4, 5+
Family life cycle
Young, single; married, no children; married with children; widowed; older, married, no children under
18; older, single; other
Income
Under US$20,000; $20,000–$30,000; $30,000–$50,000; $50,000–$100,000; $100,000–$250,000;
$250,000 and over
Occupation
Professional and technical; managers, officials, and proprietors; clerical; sales; craftspeople; supervisors;
farmers; retired; students; homemakers; unemployed
Education
Primary school or less; some secondary school; secondary school graduate; some college; college graduate
Religion
Muslim, Christian, Jewish, other
Nationality
Egyptian, Saudi, Syrian, Lebanese, American, British, French, Indian
Psychographic
Examples
Social class
Lower lowers, upper lowers, working class, middle class, upper middles, lower uppers, upper uppers
Lifestyle
Achievers, strivers, survivors
Personality
Compulsive, gregarious, authoritarian, ambitious
Behavioral
Examples
Occasions
Regular occasion; special occasion; holiday; seasonal
Benefits
Quality, service, economy, convenience, speed
User status
Nonuser, ex-user, potential user, first-time user, regular user
User rates
Light user, medium user, heavy user
Loyalty status
None, medium, strong, absolute
Readiness stage
Unaware, aware, informed, interested, desirous, intending to buy
Attitude toward product
Enthusiastic, positive, indifferent, negative, hostile
may decide to operate in one or a few geographical areas, or to operate in all areas but pay
attention to geographical differences in needs and wants.
Many companies today are localizing their products, advertising, promotion, and
sales efforts to fit the needs of individual regions, cities, and even neighborhoods. For
example, one consumer-products company ships additional cases of its ‘power bar’
(protein bars) to stores in neighborhoods near Gold’s Gym centers. Citibank offers different mixes of branch banking services depending on neighborhood demographics. And the
ice-cream maker Baskin Robbins practices what it calls ‘three-mile marketing,’ emphasizing local events and promotions close to its local store locations. On a global scale, video
M07_KOTL5681_01_SE_C07.indd 179
29/08/11 9:21 PM
180
Part Three
| Designing a Customer-Driven Strategy and Mix
game companies create different versions of their games depending on the world region
in which the game is sold.
For example, Protrac Online is an Egyptian company that specializes in providing the latest technologies in geo-marketing research and services by employing researchers, data
analysts, and geo-professionals, and a large scale of data maps and tools. Protrac refers
to geo-marketing as a sophisticated marketing science that uses geographical information for analyzing distribution channels of products. Protrac provides insight into the
competition and target segments surrounding a specific distribution point. Hence, this
allows companies to understand the specific changes needed in terms of distributing
products so as to better serve the targeted consumers. This is based on the assumption that people buy products or use services based on the product’s or the service’s
proximity. Geo-marketing allows Protrac’s clients to see the map of their outlets and
their competitors’ outlets as well. This also allows clients to understand where to go to
pursue their target. Accordingly, geo-marketing
can be of highly effective benefit to all kinds of
marketing applications.
Protrac offers three types of products:
Geographical Digital Maps, Socio-Demographic
Data, and Trade Channels Census and Survey
Data. Hossam Ragheb, CEO of Protrac, said that
using digital maps for marketing purposes is
crucial, especially for Fast-Moving Consumer
Goods companies (FMCGs), such as Coca-Cola,
Proctor & Gamble, and Unilever. Ragheb added
that “[for suppliers] to know where to sell the
products ... and where this outlet is, not only
in terms of address, but the [demographics]
of the area—[for example] how many people
above 15 years [of age] are living in this area—
Geographic information systems are used for marketing purposes, in defining
gives them a sort of direction to know which
the location of the target market, distribution channels, and socio-demographic
products should go where.”6
data.
Some companies are seeking to cultivate
as-yet-untapped geographic territory. For example, some large companies are fleeing the
fiercely competitive major cities and suburbs to set up shops in small towns. Meanwhile
others are developing new store concepts that will give them access to higher-density urban
areas. Metro Group has done a mix of both. It opened a chain of wholesale retail shops,
Makro, which run using a subscription-only access. Not only is Makro different from any
other wholesale retail model but also the shops are located outside of the main cities but in
low-income areas close to them.
Demographic Segmentation
Demographic segmentation
Demographic segmentation divides the market into groups based on variables such as
Dividing the market into groups based
on variables such as age, gender, family
size, family life cycle, income, occupation,
education, religion, race, generation,
and nationality.
age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. Demographic factors are the most popular bases for segmenting customer groups. One reason is that consumer needs, wants, and usage rates often vary closely
with demographic variables. Another is that demographic variables are easier to measure
than most other types of variables. Even when marketers first define segments using other
bases, such as benefits sought or behavior, they must know segment demographic characteristics in order to assess the size of the target market and to reach it efficiently.
Age and life-cycle segmentation
Age and Life-Cycle Stage. Consumer needs and wants change with age. Some companies use age and life-cycle segmentation, offering different products or using different marketing approaches for different age and life-cycle groups. For example, whereas
Dividing a market into different age and
life-cycle groups.
M07_KOTL5681_01_SE_C07.indd 180
29/08/11 9:21 PM
Chapter 7
| Customer-Driven Marketing Strategy: Segmentation, Targeting, and Positioning
181
HP targets adult buyers with its “The Computer Is Personal Again” campaign, along with
ads featuring price and value, it developed a special “Society for Parental Mind Control”
campaign targeting teenagers. Research shows that although parents are the predominant
buyers of computers, teens are key recommenders. “It’s such an old story, but kids are the
arbiters of cool,” says one analyst.7
Marketers must be careful to guard against stereotypes when using age and life-cycle
segmentation. Although some 80-year-olds fit the weary stereotypes, others play tennis.
Similarly, whereas some 40-year-old couples are sending their children off to college, others
are just beginning new families. Thus, age is often a poor predictor of a person’s life cycle,
health, work or family status, needs, and buying power. Companies marketing to mature
consumers usually employ positive images and appeals.
Gender segmentation
Gender. Gender segmentation has long been used in clothing, cosmetics, toiletries,
Dividing a market into different groups
based on gender.
and magazines. For example, Heineken decided to target men for its non-alcoholic beer
Birell, and developed a campaign called “Be a Man”. On the other hand, Galaxy targeted
women with its chocolate and emphasized that in its advertising campaigns.
Income. The marketers of products and services such as automobiles, clothing, cosmetics, financial services, and travel have long used income segmentation. Many companies
target affluent consumers with luxury goods and convenience services.
However, not all companies that use income segmentation target
the affluent. For example, many retailers—such as pound and dollar stores—successfully target low- and middle-income groups. The
core market for such stores is families with incomes under US$30,000.
When real-estate experts scout locations for new pound and dollar
stores, they look for lower-middle-class neighborhoods where people
wear less-expensive shoes and drive old cars that drip a lot of oil.
With their low-income strategies, stores such as these have
become fast-growing retailers. They have been so successful that
giant discounters are taking notice. An example of income segmentation in the Arab world is mobile phone service providers targeting
low-income populations. Companies such as Zain, Qtel, STC, and
Etisalat earn most of their revenues from countries where the populations are large with low income, as in Sub-Saharan Africa and South
Luxury yachts can easily cost over US$1 million, and are
Asia. The main challenge for those companies is the low generated
targeted at the most affluent section of society.
revenues per mobile phone user, which comes as a result of competitive and price-cutting measures taken by companies in the field.8
Income segmentation
Dividing a market into different income
groups.
Psychographic Segmentation
Psychographic segmentation
Psychographic segmentation divides buyers into different groups based on social class,
Dividing a market into different groups
based on social class, lifestyle, or personality characteristics.
Behavioral segmentation
lifestyle, or personality characteristics. People in the same demographic group can have
very different psychographic characteristics.
In Chapter 5, we discussed how the products people buy reflect their lifestyles. As a
result, marketers often segment their markets by consumer lifestyles and base their marketing strategies on lifestyle appeals. Marketers also use personality variables to segment
markets. For example, Sprite launched a new campaign called “This is who I am…,” targeting teenagers who are rebellious and independent. This is considered a very unique and
emerging segment in the Arab world.
Dividing a market into groups based on
consumer knowledge, attitudes, uses, or
responses to a product.
Behavioral Segmentation
Occasion segmentation
Dividing the market into groups according
to occasions when buyers get the idea to
buy, actually make their purchase, or use
the purchased item.
M07_KOTL5681_01_SE_C07.indd 181
Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product. Many marketers believe that behavior variables are
the best starting point for building market segments.
Occasions. Buyers can be grouped according to occasions when they get the idea to buy,
actually make their purchase, or use the purchased item. Occasion segmentation can
29/08/11 9:21 PM
182
Part Three
| Designing a Customer-Driven Strategy and Mix
help firms build up product usage. For example, many marketers prepare special offers
and ads for holiday occasions. Ramadan and the two Islamic Feasts are the most critical
times in the Arab world, where offers and advertisements intensify as a result of increased
viewership driven from family and group gatherings. Real Marketing 7.1 discusses how
consumers behave during the holy month of Ramadan.
Benefits Sought. A powerful form of segmentation is to group buyers according to the
Benefit segmentation
Dividing the market into groups according
to the different benefits that consumers
seek from the product.
different benefits that they seek from the product. Benefit segmentation requires finding
the major benefits people look for in the product class, the kinds of people who look for
each benefit, and the major brands that deliver each benefit.
Champion athletic wear segments its markets according to benefits that different
consumers seek from its activewear. For example, ‘Fit and Polish’ consumers seek a balance between function and style—they exercise for results but want to look good doing
it. ‘Serious Sports Competitors’ exercise heavily and live in and love their activewear—
they seek performance and function. By contrast, ‘Value-Seeking Parents’ have low sports
interest and low activewear involvement—they buy for the family and seek durability and
value. Thus, each segment seeks a different mix of benefits. Champion must target the
benefit segment or segments that it can serve best and most profitably, using appeals that
match each segment’s benefit preferences.
User Status. Markets can be segmented into nonusers, ex-users,
potential users, first-time users, and regular users of a product.
Marketers want to reinforce and retain regular users, attract targeted
nonusers, and revive relationships with ex-users.
Included in the potential users group are consumers facing lifestage changes—such as newlyweds and new parents—who can be
turned into heavy users.
Usage Rate. Markets can also be segmented into light, medium,
and heavy product users. Heavy users are often a small percentage
of the market but account for a high percentage of total consumption. For example, Burger King targets what it calls ‘Super Fans,’
young (age 18 to 34), burger-eating males who make up 18 percent
of the chain’s customers but account for almost half of all customer
visits. They eat at Burger King an average of 16 times a month.9
Burger King targets these Super Fans openly with ads that exalt
huge burgers containing meat, cheese, and more meat and cheese.
Loyalty Status. A market can also be segmented by consumer loyalty. Consumers can be loyal to brands (Apple), stores
(Carrefour), and companies (Toyota). Buyers can be divided into
groups according to their degree of loyalty. Some consumers are
completely loyal—they buy one brand all the time. For example,
Apple Computer has an almost cultlike following of loyal users:10
Consumer loyalty: ‘Mac fanatics’—fanatically loyal Apple
Computer users—helped keep Apple afloat during the lean
years, and they are now at the forefront of Apple’s burgeoning
empire.
M07_KOTL5681_01_SE_C07.indd 182
There are Mac folks who happen to own a Mac and use it for
emailing, blogging, browsing, buying, and social networking.
Then there are the Apple diehards—the Mac fanatics who buy
Apple products and accessories that maximize their Mac lives.
Some of these fans buy two iPhones—one for themselves and
the other just to take apart, to see what it looks like on the inside,
and maybe, just to marvel at Apple’s ingenious ability to cram
so much into a tight little elegant package. These Mac fanatics
(also called MacHeads or Macolytes) see Apple founder and
CEO Steve Jobs as a wizard of technology. Say the word ‘Apple’
29/08/11 9:21 PM
Chapter 7
Real
| Customer-Driven Marketing Strategy: Segmentation, Targeting, and Positioning
Marketing 7.1
Ramadan Spirit in
the Arab World
An example of occasional targeting in the
Arab world is the holy month of Ramadan.
According to a study conducted by Maktoob
Research regarding Ramadan in the region,
71 percent of respondents believe that the
month enables them to experience a feeling
of “solidarity and brotherhood with fellow
Muslims.” The study has found out that 67
percent perceive Ramadan to be a commercial occasion for many companies. The study
gathered the opinions of 6,128 Muslims from
around the Arab world, just ahead of the holy
month in 2008.
Discussing the results, Tamara Deprez,
director of Maktoob Research, added: “The
survey’s findings show that despite the pace
of modern life and the changes in people’s
lifestyle, the Arab world retains its spiritual
essence and remains largely tradition-bound
where matters of faith are concerned—more
so during the Holy Month of Ramadan.”
It was discovered that most of the respondents enjoyed having Iftar (breaking their
fast) with their families at home compared
with the significant portion, but not a majority, who said that they liked to have Iftar in
restaurants.
Ramadan is also characterized by the
sense of charity. During Ramadan, in many
countries in the Arab world, just before the
dusk prayer (the time for fast breaking),
people hurry to one another in streets to
give little snacks, saying, “Ramadan Kareem,
Iftar Shahy” (“Hearty Iftar”). People are there
always to provide each other with dates and
drinks, ensuring that people have their Iftar
on time. Also, rich Muslim people rush to
make Mawa’ed Rahaman (free public eateries), where poor people are offered free
food at Iftar time. Accordingly, it is a good
chance for businesses to show their support
in corporate social responsibility (CSR) and to
promote the Ramadan spirit. For instance,
in 2008, Saudi Telecom (STC) set up a food
tent to cater for more than 7,000 people
daily in Ramadan in more than 80 different
locations all around Jeddah. McDonald’s
provided Iftar, incorporating entertainment
activities for orphans in one of the malls.
There is also the Food Bank, sponsored by
Olympic Group and Elsewedy Cables, which
delivered food to low-income people during
M07_KOTL5681_01_SE_C07.indd 183
183
the month. Further, some food
and beverage companies offer
free products on streets at
Iftar time, primarily aiming to
promote those products. In
addition, Ramadan is considered an optimal time to reach
the consumer through television advertisements. In Egypt,
both the finance and transport ministries broadcast their
advertisements throughout
the month.
In countries such as the
UAE, companies market their
products in line with the
Ramadan theme of family
gathering. For example, du,
the mobile services provider,
made special Ramadan offers
in 2009 to enable families
to keep in touch with each
other even if they are in distant locations. The Ramadan
promotional offer entailed 1
fils credit (0.3 US cents) for
Often charity work and social activities increase during
each second of night-time
the holy month of Ramadan, which affects the demand
worldwide calls, and users can
and supply of nutrition products.
double their call time using
the Pay as You Go services. “du’s desire to
help its valued customers strengthen their
social bonds and communicate more easily
and the like experience a substantial increase
with loved ones during the Holy Month is
in demand during Ramadan, and they face
the foundation of all our Ramadan offers,”
the challenge of satisfying the large number
said Farid Faraidooni, executive vice presiof customers queuing in lines, particularly
dent, Commercial, du. “As a telecom proright before Iftar time. Of course, the price
vider with strong local roots, we know the
of television ads skyrockets during the month
high value all residents place on staying in
as a result of family gatherings in front of the
touch. Our unique offers give customers
television after Iftar, to watch programs and
the peace of mind that comes with affordsoap operas. As a result, companies intenability, plus the flexibility and convenience
sify their advertising campaigns during the
of exceptional calling benefits during a very
month, in anticipation of increased demand
special time of year.” du’s main offer during
and viewership.
the night time aims to serve customers who
have been fasting during the day, through
exclusive price cuts during the month of Sources: “Ramadan Continues to Inspire the Faithful
Ramadan. Customers get 1 fils free credit Throughout the Arab World,” Maktoob Research,
for every international call made during the 2008, www.maktoob-research.com/PR-Maktoob%20
night time. No matter how far away family Research-Ramadan-English-FINAL.pdf; “Special
members are, du provides the same price Ramadan Offers from du,” BI-ME, August 18, 2009,
www.bi-me.com/main.php?id=39691&t=1; Safaa
deductions on calls.
Abdoun, “The Spirit of Giving During Ramadan,”
Another interesting consumer behavior
The Daily News Egypt, September 19, 2008, www.
during the holy month of Ramadan is the thedailynewsegypt.com; Amira Howeidy, “Made
special types of foods that are demanded to Measure,” Al Ahram Weekly, September 10–16,
during that time. For example, stores selling 2009, Issue No. 964, http://weekly.ahram.org.
Eastern desserts, such as Konafa, Basbousa, eg/2009/964/eg5.htm.
29/08/11 9:21 PM
184
Part Three
| Designing a Customer-Driven Strategy and Mix
in front of Mac fans and they’ll go into ecstasy about the superiority of the brand. Put
two MacHeads together and you’ll never shut them up. “The Mac [comes] not just as a
machine in a box, it [comes] with a whole community,” notes one observer. Such fanatically loyal users helped keep Apple afloat during the lean years, and they are now at the
forefront of Apple’s rapidly growing empire.11
Other consumers are somewhat loyal—they are loyal to two or three brands of a given
product or favor one brand while sometimes buying others. Still other buyers show no
loyalty to any brand. They either want something different each time they buy or they buy
whatever’s on sale.
A company can learn a lot by analyzing loyalty patterns in its market. It should start by
studying its own loyal customers. For example, by studying Mac fanatics, Apple can better
pinpoint its target market and develop marketing appeals. By studying its less-loyal buyers, the
company can detect which brands are most competitive with its own. By looking at customers
who are shifting away from its brand, the company can learn about its marketing weaknesses.
Using Multiple Segmentation Bases
Marketers rarely limit their segmentation analysis to only one or a few variables. Rather,
they often use multiple segmentation bases in an effort to identify smaller, better-defined
target groups. Thus, a bank may not only identify a group of wealthy retired adults but
also, within that group, distinguish several segments based on their current income, assets,
savings and risk preferences, housing, and lifestyles.
Such segmentation provides a powerful tool for marketers of all kinds. It can help
companies to identify and better understand key customer segments, target them more
efficiently, and tailor market offerings and messages to their specific needs.
Segmenting Business Markets
Consumer and business marketers use many of the same variables to segment their markets. Business buyers can be segmented geographically, demographically (industry, company size), or by benefits sought, user status, usage rate, and loyalty status. Yet, business
marketers also use some additional variables, such as customer operating characteristics, purchasing approaches, situational factors, and personal characteristics. By going after segments
instead of the whole market, companies can deliver just the right value proposition to each
segment served and capture more value in return.
Almost every company serves at least some business markets. For example, Visa targets businesses in one of the four merchant levels based on Visa transaction volumes over
a 12-month period. Level one are merchants processing over six million Visa transactions
annually, level two are merchants channel-processing one to six million Visa transactions per
year, level three are merchants processing 20,000 to one million Visa e-commerce transactions
per year, and so on, for every level of merchant. The overall business offering is variable: the
higher the level, the more privileges are offered, and the lower rates the merchant pays.12
Many companies set up separate systems for dealing with larger or multiple-location
customers. For example, IBM first segments customers into main industries, including banking, and aviation. Next, company salespeople work with independent partners to handle
smaller, local, or regional customers in each segment. But many national, multiple-location
customers have special needs that may reach beyond the scope of individual partners. So
IBM uses national account managers to help its dealer networks handle its national accounts.
Within a given target industry and customer size, the company can segment by purchase approaches and criteria. As in consumer segmentation, many marketers believe that
buying behavior and benefits provide the best basis for segmenting business markets.13
Segmenting International Markets
Few companies have either the resources or the will to operate in all, or even most, of the
countries that dot the globe. Although some large companies, such as Coca-Cola or Sony,
sell products in more than 200 countries, most international firms focus on a smaller set.
M07_KOTL5681_01_SE_C07.indd 184
29/08/11 9:21 PM
Chapter 7
| Customer-Driven Marketing Strategy: Segmentation, Targeting, and Positioning
Intermarket segmentation
Forming segments of consumers who
have similar needs and buying behavior
even though they are located in different
countries.
185
Operating in many countries presents new challenges. Different countries, even those that
are close together, can vary greatly in their economic, cultural, and political makeup. Thus,
just as they do within their domestic markets, international firms need to group their world
markets into segments with distinct buying needs and behaviors.
Companies can segment international markets using one or a combination of several variables. They can segment by geographic location, grouping countries by regions such as Western
Europe, the Pacific Rim, the Arab world, or Africa. Geographic segmentation assumes that
nations close to one another will have many common traits and behaviors. Although this is
often the case, there are many exceptions. For example, companies in the Arab world face the
challenge of classifying customers across the region, and they need to effectively segment the
market in a way that allows them to satisfy varied customers’ needs. It does not make sense
to group countries such as Qatar (with small population and high income) with a country
such as Sudan (with large population and low income). Also, it would be strange to group
countries in North Africa (Tunisia, Algeria, and Morocco) with Gulf countries given the differences in language and culture.
World markets can also be segmented on the basis of economic factors. For example,
countries might be grouped by population income levels or by their overall level of economic development. A country’s economic structure shapes its population’s product and
service needs and, therefore, the marketing opportunities it offers. Countries can be segmented by political and legal factors such as the type and stability of government, receptivity to foreign firms, monetary regulations, and amount of bureaucracy. Cultural factors can
also be used, grouping markets according to common languages, religions, values and attitudes, customs, and behavioral patterns.
An important aspect in the Arab world is the availability of media channels that are
being watched by consumers through satellite broadcasting. Companies targeting consumers of different countries in the region benefit from that; yet they face the challenge of sending consistent messages to all countries. As a result, they attempt to find attractive regional
intermarket segments.
Segmenting international markets based on geographic, economic, political, cultural,
and other factors assumes that segments should consist of clusters of countries. However, as
new communications technologies, such as satellite television and the Internet, connect consumers around the world, marketers can define and reach segments of like-minded consumers no matter where in the world they are. Using intermarket segmentation (also called
cross-market segmentation), they form segments of consumers who have similar needs and
buying behaviors even though they are located in different countries. For example, CocaCola creates special programs to target teens, core consumers of its soft drinks the world over.
Coca-Cola wants to relate to the world’s teens. To accomplish that, the global soft
drinks marketer needed to figure out what the majority of teens finds appealing.
The answer: music. So, throughout the world, Coca-Cola links itself with the local
pop music scene. For example, in the United States, Coke is the official sponsor of
American Idol, the country’s number-one television show and a teen magnet. In the
Arab world, Coca-Cola commercials feature Arab pop stars, such as Nancy Ajram—
Coca-Cola even sponsors her world tour. In Europe, Coke has created the Coca-Cola
Music Network, which features signed and unsigned musicians online at CokeMusic.
com, on stage, and in podcasts. And in Uganda, Coca-Cola sponsored the search for
a new MTV VJ. The winner, Carol Mugasha, became host of the weekly music chart
show MTV Coca-Cola Chart Express.14
Requirements for Effective Segmentation
Clearly, there are many ways to segment a market, but not all segmentations are effective.
For example, buyers of table salt could be divided into blond and brunette customers. But
hair color obviously does not affect the purchase of salt. Furthermore, if all salt buyers
bought the same amount of salt each month, believed that all salt is the same, and wanted
to pay the same price, the company would not benefit from segmenting this market.
M07_KOTL5681_01_SE_C07.indd 185
29/08/11 9:21 PM
186
Part Three
| Designing a Customer-Driven Strategy and Mix
To be useful, market segments must be:
The ‘Leftie’ segment can be hard to identify and measure.
As a result, few companies tailor their offers to left-handers.
However, some nichers such as Anything Left-Handed
in the United Kingdom target this segment.
•
Measurable: The size, purchasing power, and profiles of the
segments can be measured. Certain segmentation variables
are difficult to measure. For example, there are many lefthanded people in the world. Yet few products are targeted
toward this left-handed segment. The major problem may be
that the segment is hard to identify and measure. There is little
data on the demographics of ‘lefties.’ Private data companies
keep reams of statistics on other demographic segments but
not on left-handers.
•
Accessible: The market segments can be effectively reached
and served. Suppose a fragrance company finds that heavy
users of its brand are single men and women who stay out late
and socialize a lot. Unless this group lives or shops at certain
places and is exposed to certain media, its members will be
difficult to reach.
•
Substantial: The market segments are large or profitable enough to serve. A segment
should be the largest possible homogeneous group worth pursuing with a tailored
marketing program. It would not pay, for example, for an automobile manufacturer
to develop cars especially for people whose height is greater than two meters.
•
Differentiable: The segments are conceptually distinguishable and respond differently
to different marketing mix elements and programs. If married and unmarried women
respond similarly to a sale on perfume, they do not constitute separate segments.
•
Actionable: Effective programs can be designed for attracting and serving the segments.
For example, although one small airline identified seven market segments, its staff was
too small to develop separate marketing programs for each segment.
Author Now that we’ve divided
Comment the market into segments,
Market Targeting (pp 186–192)
it’s time to answer that first seemingly
simple marketing strategy question we
raised in Figure 7.1: Which customers
will the company serve?
Market segmentation reveals the firm’s market segment opportunities. The firm now has to
evaluate the various segments and decide how many and which segments it can serve best.
We now look at how companies evaluate and select target segments.
Evaluating Market Segments
In evaluating different market segments, a firm must look at three factors: segment size
and growth, segment structural attractiveness, and company objectives and resources. The
company must first collect and analyze data on current segment sales, growth rates, and
expected profitability for various segments. It will be interested in segments that have the
right size and growth characteristics.
But ‘right size and growth’ is a relative matter. The largest, fastest-growing segments
are not always the most attractive ones for every company. Smaller companies may lack the
skills and resources needed to serve the larger segments. Or they may find these segments
too competitive. Such companies may target segments that are smaller and less attractive,
in an absolute sense, but that are potentially more profitable for them.
The company also needs to examine major structural factors that affect long-run segment attractiveness.15 For example, a segment is less attractive if it already contains many
strong and aggressive competitors. The existence of many actual or potential substitute products may limit prices and the profits that can be earned in a segment. The relative power of
buyers also affects segment attractiveness. Buyers with strong bargaining power relative to
sellers will try to force prices down, demand more services, and set competitors against one
another—all at the expense of seller profitability. Finally, a segment may be less attractive
M07_KOTL5681_01_SE_C07.indd 186
29/08/11 9:21 PM
Chapter 7
| Customer-Driven Marketing Strategy: Segmentation, Targeting, and Positioning
FIGURE | 7.2
Marketing Targeting Strategies
This figure covers a pretty broad range of
targeting strategies, from mass marketing
(virtually no targeting) to individual
marketing (customizing products and
programs to individual customers). An
example of individual marketing: At
myMMs.com you can order a batch of
M&Ms with your face and personal
message printed on each little candy.
Undifferentiated
(mass) marketing
Differentiated
(segmented)
marketing
Concentrated
(niche)
marketing
187
Micromarketing
(local or individual
marketing)
Targeting
narrowly
Targeting
broadly
if it contains powerful suppliers who can control prices or reduce the quality or quantity of
ordered goods and services.
Even if a segment has the right size and growth and is structurally attractive, the company must consider its own objectives and resources. Some attractive segments can be dismissed quickly because they do not mesh with the company’s long-run objectives. Or the
company may lack the skills and resources needed to succeed in an attractive segment. For
example, given current economic conditions, the economy segment of the automobile market
is large and growing. But given its objectives and resources, it would make little sense for
luxury-performance carmaker BMW to enter this segment. A company should enter only segments in which it can create superior customer value and gain advantages over competitors.
Selecting Target Market Segments
Target market
A set of buyers sharing common needs or
characteristics that the company decides
to serve.
Undifferentiated (mass) marketing
A market-coverage strategy in which a
firm decides to ignore market segment
differences and go after the whole
market with one offer.
Differentiated (segmented)
marketing
A market-coverage strategy in which a firm
decides to target several market segments
and designs separate offers for each.
After evaluating different segments, the company must decide which and how many segments it will target. A target market consists of a set of buyers who share common needs
or characteristics that the company decides to serve. Market targeting can be carried out
at several different levels.
Figure 7.2 shows that companies can target very broadly
(undifferentiated marketing), very narrowly (micromarketing), or somewhere in between
(differentiated or concentrated marketing).
Undifferentiated Marketing
Using an undifferentiated marketing (or mass-marketing) strategy, a firm might
decide to ignore market segment differences and target the whole market with one offer.
This mass-marketing strategy focuses on what is common in the needs of consumers rather
than on what is different. The company designs a product and a marketing program that
will appeal to the largest number of buyers.
As noted earlier in the chapter, most modern marketers have strong doubts about this
strategy. Difficulties arise in developing a product or brand that will satisfy all consumers.
Moreover, mass marketers often have trouble competing with more focused firms that do a better job of
satisfying the needs of specific segments and niches.
Differentiated Marketing
Differentiated marketing: Procter & Gamble markets six different laundry
detergents, including Tide—each with multiple forms and formulations—
that compete with each other on store shelves.
M07_KOTL5681_01_SE_C07.indd 187
Using a differentiated marketing (or segmented
marketing) strategy, a firm decides to target several market segments and designs separate offers
for each. General Motors tries to produce a car for
every “purse, purpose, and personality.” Procter
& Gamble markets six different laundry detergent
brands, which compete with each other on supermarket shelves.
By offering product and marketing variations
to segments, companies hope for higher sales and
a stronger position within each market segment.
Developing a stronger position within several segments creates more total sales than undifferentiated
marketing across all segments.
But differentiated marketing also increases the
costs of doing business. A firm usually finds it more
29/08/11 9:21 PM
188
Part Three
| Designing a Customer-Driven Strategy and Mix
expensive to develop and produce, say, 10 units of 10 different products than 100 units of
one product. Developing separate marketing plans for the separate segments requires extra
marketing research, forecasting, sales analysis, promotion planning, and channel management. And trying to reach different market segments with different advertising campaigns
increases promotion costs. Thus, the company must weigh increased sales against increased
costs when deciding on a differentiated marketing strategy.
Concentrated Marketing
Concentrated (niche) marketing
A market-coverage strategy in which a
firm goes after a large share of one or a
few segments or niches.
Using a concentrated marketing (or niche marketing) strategy, instead of going after a
small share of a large market, the firm goes after a large share of one or a few smaller segments or niches. For example, Bindawood, a local supermarket chain in the Kingdom of
Saudi Arabia, has many stores in different areas in Mecca and Madinah that target mainly
the visitors of the holy sites.
Through concentrated marketing, the firm achieves a strong market position because
of its greater knowledge of consumer needs in the niches it serves and the special reputation
it acquires. It can market more effectively by fine-tuning its products, prices, and programs
to the needs of carefully defined segments. It can also market more efficiently, targeting its
products or services, channels, and communications programs toward only consumers that
it can serve best and most profitably.
Whereas segments are fairly large and normally attract several competitors, niches
are smaller and may attract only one or a few competitors. Niching lets smaller companies
focus their limited resources on serving niches that may be unimportant to or overlooked
by larger competitors. Many companies start as nichers to get a foothold against larger,
more resourceful competitors and then grow into broader competitors. Aramex offers new
services such as “Shop and Ship” for the customers in the Arab world willing to buy products from online shops in the United States and Europe, in order to differentiate itself from
large competitors such as DHL, UPS, and FedEx.
In contrast, as markets change, some megamarketers develop niche markets to create
sales growth. For example, in recent years, Pepsi has introduced several niche products, such
as Seven-Up with Lemon, Pepsi Twist, and Miranda Tangerine. Today, the low cost of setting
up shop on the Internet makes it even more profitable to serve seemingly miniscule niches.
Small businesses, in particular, are realizing riches from serving small niches on the web.
Concentrated marketing can be highly profitable. At the same time, it involves higher-thannormal risks. Companies that rely on one or a few segments for all of their business will suffer
greatly if the segment turns sour. Or larger competitors may decide to enter the same segment
with greater resources. For these reasons, many companies prefer to diversify in several market
segments. In the Arab world, there is a clear need for Islamic banking services. As a result, a variety
of banks, led by HSBC, introduced Islamic banking initiatives in the region. Real Marketing 7.2
highlights the concept of Islamic banking and its application in the Arab world.
Micromarketing
Micromarketing
The practice of tailoring products and
marketing programs to the needs and
wants of specific individuals and local customer groups—includes local marketing
and individual marketing.
Local marketing
Tailoring brands and promotions to
the needs and wants of local customer
groups—cities, neighborhoods, and even
specific stores.
M07_KOTL5681_01_SE_C07.indd 188
Differentiated and concentrated marketers tailor their offers and marketing programs to
meet the needs of various market segments and niches. At the same time, however, they do
not customize their offers to each individual customer. Micromarketing is the practice of
tailoring products and marketing programs to suit the tastes of specific individuals and locations. Rather than seeing a customer in every individual, micromarketers see the individual
in every customer. Micromarketing includes local marketing and individual marketing.
Local Marketing. Local marketing involves tailoring brands and promotions to the
needs and wants of local customer groups—cities, neighborhoods, and even specific stores.
For example, McDonald’s introduced a new sandwich, McArabia, which suited the local
culture in the Arab world.
Advances in communications technology have given rise to a new high-tech version
of location-based marketing. By coupling mobile phone services with GPS devices, many
marketers are now targeting customers wherever they are with what they want.16
29/08/11 9:22 PM
Chapter 7
Real
| Customer-Driven Marketing Strategy: Segmentation, Targeting, and Positioning
189
Marketing 7.2
Islamic Banking
A significant type of behavioral targeting taking place in the Arab world is Islamic banking.
A recent report by Morgan Stanley analyzing
Dubai Islamic Bank and Kuwait Finance House
has concluded that Islamic assets will have
increased to 18 percent of total assets in the
GCC’S banking system by 2012. Currently,
there are 22 Islamic banks that possess more
than US$300 billion of sharia-compliant assets.
An analyst at Morgan Stanley says: “There
are a number of reasons why the sector is
growing, and will continue to grow, strongly.
A buoyant macro-economic backdrop and
increased infrastructure spending, and continued diversification from oil economies are driving the banking sector generally . . . In terms of
factors behind the growth in Islamic finance, a
greater focus on Islamic identity, government
backing for the development and promotion
of Islamic banking, low penetration, and competition among conventional banks makes
Islamic banking more attractive, and more
favorable industry dynamics are all likely to
fuel the growth.”
Despite the expected growth in that
behavioral segment, which fosters the Islamic
identity, there are some obstacles to the concept. The main difficulty remains that the
product is not a regular one that can easily be
identified. As such, Islamic banks are subject
to more than one regulatory body, such as
the local Central Banks as well as the Shari’a
Supervisory Board (SSB), which must be
established by the banks to advise them and
ensure that all their activities are compliant
with Shari’a Islamic rules principles, in order
to formulate Islamic services. Another issue is
the fact that people tend to be less familiar
with how the system works compared with
the regular banking systems. There are also
some aspects in Islamic banking that are not
welcomed by other financial institutions and
customers, such as not allowing hedging
(fixing currency value for long periods in the
currency exchange market). A 2008 Morgan
Stanley report, however, suggests an exponential growth for the sector.
Islamic banking mainly targets ‘devout
Muslims’ in Muslim communities and
Muslim minorities in non-Muslim countries. In addition, it attracts non-Muslim
individuals and societies that demand
ethical financial solutions. Islamic financial
institutions were established in the 1960s
and 1970s. Since that time Islamic bank-
M07_KOTL5681_01_SE_C07.indd 189
Islamic banking has gained a strong reputation in the past few years,
especially after the financial crisis in 2008 which revealed many of the defects
in international banking systems.
ing has sprawled in several Islamic countries primarily in the Arab world, South
and Southeast Asia, and in the West where
Muslim minorities live. Now Bahrain is the
most flourishing country in the Islamic
finance field; other non-Arab cities enjoyed
growth in the field, including Kuala Lumpur
and London. Islamic banks are available in
different formats, including “commercial
banks, investment banks, investment and
finance companies, insurance (Takaful)
companies, and financial service companies.” However, they pursue distinct
banking models: private organizations in a
traditional economy (in the GCC and the
West), national banking institutions (such
as those in Sudan, Iran, and Pakistan), and
dual banking systems (such as in Malaysia
and the UAE). Moreover, they are present
in different models: fully Islamic institutions, Islamic subsidiaries of traditional
banking groups, and Islamic banking ‘windows’ inside traditional banks.
Islamic banking services range from commercial banking to syndicated transactions and
equities, and have recently moved into debt
issuance and structured products. The growth
in the segment is attributed to the growing
economy of oil-producing countries. Thus,
this made the Islamic financial services highly
demanded by a large number of people.
Let’s take a look at an example of an
international bank that has adapted to
the needs of the Islamic segment. HSBC
Amanah—Islamic Financial Solutions was
“established to serve the particular financial
needs of Muslim communities.” According
to HSBC’s mission, “Amanah is committed to
improving the lives of our customers worldwide by providing them with the highest quality Islamic banking solutions.” Accordingly,
there is commitment to Shari’a to the greatest extent. HSBC Islamic banking services
are present in several GCC countries, including Bahrain, UAE, Saudi Arabia, Qatar, and
other non-Arab Muslim countries, including
Bangladesh, Brunei, Indonesia, Malaysia, and
other countries as well.
HSBC Amanah is supervised by the
Global Shari’a Advisory Board (GSAB) and
Regional Shari’a Committees (RSC). Moreover,
HBSC has a team of professionals who are
there to guarantee that Shari’a are applied
in ‘letter’ and ‘spirit.’ GSAB pursues continuous updating of the Islamic financial services.
The board consists of delegate scholars from
all RSC of HSBC Amanah and other Shari’a
scholars from all around the world. HSBC
depends on known scholars from different
origins to ensure the convention of all scholars on its Islamic financial matters.
Amanah has different Islamic services all
using the same principles, yet they are based
on the needs of the various types of customers. There are three common Islamic financial
instruments, which are:
•
Mudaraba: An investment partnership, whereby an agreement
takes place between an investor
(or financer) and an entrepreneur
or investment manager, called the
Mudarib. They both divide risks
Continued on next page
29/08/11 9:22 PM
190
Part Three
Real
•
| Designing a Customer-Driven Strategy and Mix
Marketing 7.2 Continued
and profits. When there are profits,
they earn their agreed-upon shares.
When there are losses, the investor
incurs a loss of capital, whereas the
Mudarib loses time and effort.
Ijara, which means an Islamic lease.
The financial institution buys an
asset and leases it to a customer
in return for a set monthly fee. The
•
lessee has the choice to purchase
the asset at the end of the lease.
Murabaha, which is a sale at an
agreed-upon profit. In this transaction, the bank buys something
from a third party and sells it to
a client at a set profit on a deferred
payment system. Murabaha ensures
that the client buys something
without taking interest on a loan.
Sources: Justin Smith, “Morgan Stanley Initiates Coverage on Islamic Banking Stocks,” BI-ME, February
19, 2008, www.bi-me.com/main.php?id=17576&t=1&c=34&cg=; “Our Vision,” “The Industry,” “Shariah
Supervision,” and “Financial Instruments,” HSBC Amanah, www.hsbcamanah.com/amanah/about-amanah/
islamic-banking.
Location. Location. Location. This is the mantra of the real-estate business.
But it may not be long before marketers quote it, too. “Location-based technology allows [marketers] to reach people when they’re mobile, near their
stores, looking to make a decision,” says one marketing expert. “When
customers get information—even advertising information—linked to their
location, research shows that’s often perceived as value-added information, not as an advertisement.” For example, Starbucks recently launched
a store locator service for mobile devices, which allows people to use their
phones and in-car GPS systems to search for the nearest Starbucks shop. A
consumer sends a text message to “MYSBUX” (697289) including his or her
postal code. Within 10 seconds, Starbucks replies with up to three nearby
store locations. Starbucks plans to expand the service to include a wider
range of text-messaging conversations with local customers that will “showcase Starbucks as a brand that truly listens.” Such location-based marketing
will grow astronomically as the sales of GPS devices skyrocket.
Local marketing has some drawbacks. It can drive up manufacturing and
marketing costs by reducing economies of scale. It can also create logistics problems as companies try to meet the varied requirements of different regional and
local markets. Further, a brand’s overall image might be diluted if the product
and message vary too much in different localities.
Local marketing: By coupling mobile phone
Still, as companies face increasingly fragmented markets, and as new supportservices with GPS devices, marketers such
as Starbucks are now targeting customers
ing technologies develop, the advantages of local marketing often outweigh the
wherever they are with what they want.
drawbacks. Local marketing helps a company to market more effectively in the
face of pronounced regional and local differences in demographics and lifestyles.
It also meets the needs of the company’s first-line customers—retailers—who prefer more
finely tuned product assortments for their neighborhoods.
Individual marketing
Individual Marketing. In the extreme, micromarketing becomes individual marketing—
Tailoring products and marketing programs to the needs and preferences of
individual customers—also labeled ‘oneto-one marketing,’ ‘customized marketing,’ and ‘markets-of-one marketing.’
tailoring products and marketing programs to the needs and preferences of individual customers. Individual marketing has also been labeled one-to-one marketing, mass customization,
and markets-of-one marketing.
The widespread use of mass marketing has obscured the fact that for centuries consumers
were served as individuals: The tailor custom-made the suit, the cobbler designed shoes for
the individual, the cabinetmaker made furniture to order. Today, however, new technologies
are permitting many companies to return to customized marketing. More powerful computers, detailed databases, robotic production and flexible manufacturing, and interactive communication media such as cellphones and the Internet—all have combined to foster ‘mass
customization.’ Mass customization is the process through which firms interact one-to-one with
masses of customers to design products and services tailor-made to individual needs.
Dell creates custom-configured computers. Visitors to Nike’s NikeID website can personalize their sneakers by choosing from hundreds of colors.
Marketers are also finding new ways to personalize promotional messages. Service
providers such as Vodafone have been sending customers personalized office stationery,
M07_KOTL5681_01_SE_C07.indd 190
29/08/11 9:22 PM
Chapter 7
| Customer-Driven Marketing Strategy: Segmentation, Targeting, and Positioning
191
calendars, and giveaways showing their names and titles. Newsletters
from different providers have mapped customer interests to make
their material more relevant and personal.
Business-to-business marketers are also finding new ways to customize their offerings. For example, John Deere manufactures seeding
equipment that can be configured in more than two million versions
to individual customer specifications. The seeders are produced one
at a time, in any sequence, on a single production line. Mass customization provides a way to stand out against competitors.
Unlike mass production, which eliminates the need for human
interaction, one-to-one marketing has made relationships with
customers more important than ever. Just as mass production was
the marketing principle of the past century, interactive marketing
is becoming a marketing principle for the twenty-first century. The
world appears to be coming full circle—from the good old days
when customers were treated as individuals, to mass marketing
John Deere manufactures a wide range of seeding equipment
and other planting equipment that matches the various needs
when nobody knew your name, and back again.
of customers’ specifications.
The move toward individual marketing mirrors the trend in consumer self-marketing. Increasingly, individual customers are taking more
responsibility for shaping both the products they buy and the buying experience. Consider two
business buyers with two different purchasing styles. The first sees several salespeople, each
trying to persuade him to buy his or her product. The second sees no salespeople but rather
logs on to the web. She searches for information on available products; interacts online with
various suppliers, users, and product analysts; and then decides which offer is best. The second
purchasing agent has taken more responsibility for the buying process, and the marketer has
had less influence over the buying decision.
As the trend toward more interactive dialogue and less marketing monologue continues, marketers will need to influence the buying process in new ways. They will need to
involve customers more in all phases of the product development and buying processes,
increasing opportunities for buyers to practice self-marketing.
Choosing a Targeting Strategy
Companies need to consider many factors when choosing a market-targeting strategy. Which
strategy is best depends on company resources. When the firm’s resources are limited, concentrated marketing makes the most sense. The best strategy also depends on the degree of product
variability. Undifferentiated marketing is more suited for uniform products such as grapefruit
or steel. Products that can vary in design, such as cameras and automobiles, are more suited to
differentiation or concentration. The product’s life-cycle stage also must be considered. When a
firm introduces a new product, it may be practical to launch only one version, and undifferentiated marketing or concentrated marketing may make the most sense. In the mature stage of
the product life cycle, however, differentiated marketing begins to make more sense.
Another factor is market variability. If most buyers have the same tastes, buy the same
amounts, and react the same way to marketing efforts, undifferentiated marketing is appropriate. Finally, competitors’ marketing strategies are important. When competitors use differentiated or concentrated marketing, undifferentiated marketing can be suicidal. Conversely, when
competitors use undifferentiated marketing, a firm can gain an advantage by using differentiated or concentrated marketing, focusing on the needs of buyers in specific segments.
Socially Responsible Target Marketing
Smart targeting helps companies to be more efficient and effective by focusing on the segments
that they can satisfy best and most profitably. Targeting also benefits consumers—companies
serve specific groups of consumers with offers carefully tailored to their needs. However, target
marketing sometimes generates controversy and concern. The biggest issues usually involve
the targeting of vulnerable or disadvantaged consumers with controversial or potentially
harmful products.
M07_KOTL5681_01_SE_C07.indd 191
29/08/11 9:22 PM
192
Part Three
| Designing a Customer-Driven Strategy and Mix
For example, over the years, marketers in a wide
range of industries—from cereal and toys to fast food and
fashion—have been heavily criticized for their marketing
efforts directed toward children. Critics worry that premium
offers and high-powered advertising appeals presented
through the mouths of lovable animated characters will
overwhelm children’s defenses. Other problems arise when
the marketing of adult products spills over into the child
segment—intentionally or unintentionally. Some critics have
even called for a complete ban on advertising to children.
The growth of the Internet and other carefully targeted
direct media has raised fresh concerns about potential targeting
abuses. The Internet allows increasing refinement of audiences
and, in turn, more precise targeting. This might help makers of
questionable products or deceptive advertisers to more readily
Not only does Colgate offer a wide selection of products targeting children, but also it holds many campaigns for children in the Arab world
victimize the most vulnerable audiences. Unprincipled marketto increase awareness about the importance of brushing their teeth.
ers can now send tailor-made deceptive messages directly to
the computers of millions of unsuspecting consumers.17
Not all attempts to target children, minorities, or other
special segments draw such criticism. In fact, most provide benefits to targeted consumers. For example, Pantene markets Relaxed and Natural hair products to women of color.
Samsung markets the Jitterbug phone directly to seniors who need a simpler cellphone
that is bigger and has a louder speaker. And Colgate makes a large selection of toothbrush
shapes and toothpaste flavors for children. Such products help make tooth brushing more
fun and get children to brush longer and more often.
Thus, in target marketing, the issue is not really who is targeted but rather how and
for what. Controversies arise when marketers attempt to profit at the expense of targeted
segments—when they unfairly target vulnerable segments or target them with questionable products or tactics. Socially responsible marketing calls for segmentation and targeting
that serve not just the interests of the company but also the interests of those targeted.
Author At the same time that it’s
Comment answering the first sim-
ple-sounding question (Which customers will we serve?), the company must
be asking the second question (How
will we serve them?). For example,
Ritz-Carlton serves the top 5 percent
of corporate and leisure travelers. Its
value proposition is ‘The Ritz-Carlton
Experience’—one that “enlivens the
senses, instills a sense of well-being,
and fulfills even the unexpressed
wishes and needs of our guests.”
Product position
The way the product is defined by consumers on important attributes—the
place the product occupies in consumers’
minds relative to competing products.
M07_KOTL5681_01_SE_C07.indd 192
Differentiation and Positioning (pp 192–198)
Beyond deciding which segments of the market it will target, the company must decide
on a value proposition—on how it will create differentiated value for targeted segments and
what positions it wants to occupy in those segments. A product’s position is the way the
product is defined by consumers on important attributes—the place the product occupies in
consumers’ minds relative to competing products. “Products are created in the factory, but
brands are created in the mind,” says a positioning expert.18
Tide is positioned as a powerful, all-purpose family detergent. At Subway restaurants,
you “Eat Fresh.” In the automobile market, Mercedes and Cadillac are positioned on luxury, and Porsche and BMW on performance. Volvo positions powerfully on safety. And
Toyota positions its fuel-efficient, hybrid Prius as a high-tech solution to the energy shortage. “How far will you go to save the planet?” it asks.
Consumers are overloaded with information about products and services. They
cannot reevaluate products every time they make a buying decision. To simplify the
buying process, consumers organize products, services, and companies into categories
and ‘position’ them in their minds. A product’s position is the complex set of perceptions, impressions, and feelings that consumers have for the product compared with
competing products.
Consumers position products with or without the help of marketers. But marketers
do not want to leave their products’ positions to chance. They must plan positions that will
give their products the greatest advantage in selected target markets, and they must design
marketing mixes to create these planned positions.
29/08/11 9:22 PM
Chapter 7
FIGURE | 7.3
Positioning Map:
Large Luxury Sport
Utility Vehicles
| Customer-Driven Marketing Strategy: Segmentation, Targeting, and Positioning
193
160
Price (thousands of $)
Escalade
Escalade ESV
Hummer H1
120
Hummer H2
Infiniti QX56
Range Rover
Lexus LX470
Navigator
80
Land Cruiser
40
Luxury
Performance
Orientation
The location of each circle shows where consumers position
a brand on two dimensions: price and luxury-performance
orientation. The size of each circle indicates the brand’s
relative market share in the segment. Thus, Toyota's Land
Cruiser is a niche brand that is perceived to be relatively
affordable and more performance oriented.
Positioning Maps
In planning their differentiation and positioning strategies, marketers often prepare perceptual positioning maps, which show consumer perceptions of their brands versus competing
products on important buying dimensions.
Figure 7.3 shows a positioning map for the
U.S. large luxury sport utility vehicle market.19
Choosing a Differentiation and Positioning Strategy
Some firms find it easy to choose a differentiation and positioning strategy. For example, a
firm well known for quality in certain segments will go for this position in a new segment if
there are enough buyers seeking quality. But in many cases, two or more firms will go after
the same position. Then, each will have to find other ways to set itself apart. Each firm must
differentiate its offer by building a unique bundle of benefits that appeals to a substantial
group within the segment.
Above all else, a brand’s positioning must serve the needs and preferences of welldefined target markets. For example, Mobinil is positioning itself in the Egyptian market
as the competent local service provider, and builds its communication campaigns on the
concept of patriotism. On the other hand, Vodafone is positioning itself as an international
and professional brand.
The differentiation and positioning task consists of three steps: identifying a set of differentiating competitive advantages upon which to build a position, choosing the right
competitive advantages, and selecting an overall positioning strategy. The company must
then effectively communicate and deliver the chosen position to the market.
Identifying Possible Value Differences and Competitive Advantages
Competitive advantage
An advantage over competitors gained
by offering greater customer value, either
through lower prices or by providing more
benefits that justify higher prices.
M07_KOTL5681_01_SE_C07.indd 193
To build profitable relationships with target customers, marketers must understand customer needs better than competitors do and deliver more customer value. To the extent
that a company can differentiate and position itself as providing superior customer value,
it gains competitive advantage.
But solid positions cannot be built on empty promises. If a company positions its product as offering the best quality and service, it must actually differentiate the product so
29/08/11 9:22 PM
194
Part Three
| Designing a Customer-Driven Strategy and Mix
that it delivers the promised quality and service. Companies must do much
more than simply shout out their positions in ad slogans and taglines. They
must first live the slogan.
To find points of differentiation, marketers must think through the customer’s
entire experience with the company’s product or service. An alert company can find
ways to differentiate itself at every customer-contact point. In what specific ways
can a company differentiate itself or its market offer? It can differentiate along the
lines of product, services, channels, people, or image.
Through product differentiation brands can be differentiated on features, performance, or style and design. Thus, Panasonic positions its Toughbook PCs,
designed to stand up to rugged use on the road or in the field. The Toughbook
website offers “Tough Stories,” complete with pictures of battered and abused
Toughbooks still functioning well.
Beyond differentiating its physical product, a firm can also differentiate the services that accompany the product. Some companies gain services
differentiation through speedy, convenient, or careful delivery. For example,
Al-Baraka Bank has positioned itself as “the commercial Islamic Bank”—it
offers retail, corporate and investment banking, and treasury services which
should abide by the principles of Islamic Shari’a.20 Others differentiate their
service based on high-quality customer care. Lexus makes fine cars but is
perhaps even better known for the quality service that creates outstanding
ownership experiences for Lexus owners.
Firms that practice channel differentiation gain competitive advantage through
Toughbook is positioned as the durable, reliable,
wireless notebook that can protect the customer’s
the way they design their channel’s coverage, expertise, and performance. Amazon.
work even in the toughest environments.
com and GEICO set themselves apart with their smooth-functioning direct channels. Companies can also gain a strong competitive advantage through people
differentiation—hiring and training better people than their competitors do. And Singapore
Airlines enjoys an excellent reputation, largely because of the grace of its flight attendants.
People differentiation requires that a company select its customer-contact people carefully and
train them well. For example, the entertainment company Disney trains its theme park people
thoroughly to ensure that they are competent, polite, and friendly—from the hotel check-in
agents, to the monorail drivers, to the ride attendants, to the people who sweep its parks. Each
employee is carefully trained to understand customers and to “make people happy.”
Even when competing offers look the same, buyers may perceive a difference based on
company or brand image differentiation. A company or brand image should convey the product’s distinctive benefits and positioning. Developing a strong and distinctive image calls
for creativity and hard work. A company cannot develop an image in the public’s mind
overnight using only a few advertisements. If Ritz-Carlton means quality, this image must
be supported by everything the company says and does.
Symbols—such as the McDonald’s golden arches, the Nike swoosh, or Google’s colorful logo—can provide strong company or brand recognition and image differentiation. The
company might build a brand around a famous person, as Nike did with its Air Jordan basketball shoes and Tiger Woods golfing products. Some companies even become associated
with colors, such as IBM (blue), UPS (brown), or Coca-Cola (red). The chosen symbols, characters, and other image elements must be communicated through advertising that conveys
the company’s or brand’s personality.
Choosing the Right Competitive Advantages
Suppose a company is fortunate enough to discover several potential differentiations that
provide competitive advantages. It now must choose the ones on which it will build its
positioning strategy. It must decide how many differences to promote and which ones.
How Many Differences to Promote. Many marketers think that companies should aggressively promote only one benefit to the target market. Ad man Rosser Reeves, for example, said
a company should develop a unique selling proposition (USP) for each brand and stick to it. Each
M07_KOTL5681_01_SE_C07.indd 194
29/08/11 9:22 PM
Chapter 7
| Customer-Driven Marketing Strategy: Segmentation, Targeting, and Positioning
195
brand should pick an attribute and tout itself as ‘number one’ on that attribute. Buyers tend to
remember number one better, especially in this overcommunicated society. Thus, Wal-Mart promotes its always low prices and Burger King promotes personal choice—“have it your way.”
Other marketers think that companies should position themselves on more than one
differentiator. This may be necessary if two or more firms are claiming to be best on the same
attribute. Today, in a time when the mass market is fragmenting into many small segments,
companies are trying to broaden their positioning strategies to appeal to more segments.
For example, S.C. Johnson recently introduced a new Pledge multi-surface cleaner. Known
mainly as a brand for cleaning and dusting wood furniture, the new Pledge is positioned as a
cleaner that works on wood, electronics, glass, marble, stainless steel, and other surfaces. Says
its website, “No need to keep switching products—this multi-surface cleaner is perfect for a
quick and easy cleanup of the whole room!” Clearly, many buyers want these multiple benefits. The challenge was to convince them that one brand can do it all. However, as companies
increase the number of claims for their brands, they risk disbelief and a loss of clear positioning.
Which Differences to Promote. Not all brand differences are meaningful or worthwhile; not every difference makes a good differentiator. Each difference has the potential to
create company costs as well as customer benefits. A difference is worth establishing to the
extent that it satisfies the following criteria:
•
Important: The difference delivers a highly valued benefit to target buyers.
•
Distinctive: Competitors do not offer the difference, or the company can offer it in a
more distinctive way.
•
Superior: The difference is superior to other ways that customers might obtain the
same benefit.
•
Communicable: The difference is communicable and visible to buyers.
•
Preemptive: Competitors cannot easily copy the difference.
•
Affordable: Buyers can afford to pay for the difference.
•
Profitable: The company can introduce the difference profitably.
Many companies have introduced differentiations that failed one or more of these
tests. When the Westin Stamford Hotel in Singapore once advertised that it is the world’s
tallest hotel, it was a distinction that was not important to most tourists—in fact, it turned
many off. Thus, choosing competitive advantages upon which to position a product or service can be difficult, yet such choices may be crucial to success.
Selecting an Overall Positioning Strategy
Value proposition
The full positioning of a brand—the
full mix of benefits upon which it is
positioned.
The full positioning of a brand is called the brand’s value proposition—the full mix of
benefits upon which the brand is differentiated and positioned. It is the answer to the
customer’s question “Why should I buy your brand?” Volvo’s value proposition hinges on
safety but also includes reliability, roominess, and styling, all for a price that is higher than
average but seems fair for this mix of benefits.
Figure 7.4 shows possible value propositions upon which a company might position its products. In the figure, the five green cells represent winning value propositions—
differentiation and positioning that gives the company competitive advantage. The red
cells, however, represent losing value propositions. The center yellow cell represents at
best a marginal proposition. In the following sections, we discuss the five winning value
propositions upon which companies can position their products: more for more, more for
the same, the same for less, less for much less, and more for less.
More for More. ‘More-for-more’ positioning involves providing the most upscale product or service and charging a higher price to cover the higher costs. Ritz-Carlton Hotels,
Mont Blanc writing instruments, Mercedes automobiles—each claims superior quality,
craftsmanship, durability, performance, or style and charges a price to match. Not only is the
market offering high in quality, it also gives prestige to the buyer. It symbolizes status and a
loftier lifestyle. Often, the price difference exceeds the actual increment in quality.
M07_KOTL5681_01_SE_C07.indd 195
29/08/11 9:22 PM
196
Part Three
| Designing a Customer-Driven Strategy and Mix
FIGURE | 7.4
Possible Value Propositions
More
Benefits
More
The same
Less
These are losers.
More
for
more
Price
The same
More
for the
same
Less
More
for
less
These are winning
value propositions.
The same
for
less
Less for
much
less
Sellers offering ‘only the best’ can be found in every product and service category,
from hotels, restaurants, food, and fashion to cars and household appliances. Consumers
are sometimes surprised, even delighted, when a new competitor enters a category with
an unusually high-priced brand. Starbucks coffee entered as a very expensive brand in a
largely commodity category. When Apple premiered its iPhone, it offered higher-quality
features than a traditional cellphone, with a hefty price tag to match.
In general, companies should be on the lookout for opportunities to introduce a ‘morefor-more’ brand in any underdeveloped product or service category. Yet ‘more-for-more’
brands can be vulnerable. They often invite imitators who claim the same quality but at a
lower price. Luxury goods that sell well during good times may be at risk during economic
downturns when buyers become more cautious in their spending.
More for the Same. Companies can attack a competitor’s more-for-more positioning by
introducing a brand offering comparable quality but at a lower price. For example, Toyota
introduced its Lexus line with a ‘more-for-the-same’ value proposition versus Mercedes and
BMW. Its first ad headline read: “Perhaps the first time in history that trading a $72,000 car
for a $36,000 car could be considered trading up.” It communicated the high quality of its
new Lexus through rave reviews in car magazines and through a widely distributed videotape showing side-by-side comparisons of Lexus and Mercedes automobiles. It published
surveys showing that Lexus dealers were providing customers with better sales and service
experiences than were Mercedes dealerships. Many Mercedes owners switched to Lexus,
and the Lexus repurchase rate has been 60 percent, twice the industry average.
The Same for Less. Offering ‘the same for less’ can be a powerful value proposition—
everyone likes a good deal. Hypermarkets, such as Carrefour, also use this positioning.
They don’t claim to offer different or better products. Instead, they offer many of the same
brands as department stores and specialty stores but at deep discounts based on superior purchasing power and lower-cost operations. Other companies develop imitative but
lower-priced brands in an effort to lure customers away from the market leader. For example, AMD makes less-expensive versions of Intel’s market-leading microprocessor chips.
Less for Much Less. A market almost always exists for products that offer less and therefore cost less. Few people need, want, or can afford ‘the very best’ in everything they buy. In
many cases, consumers will gladly settle for less than optimal performance or give up some
of the extra features in exchange for a lower price. For example, Nokia has a series of mobile
phones with limited features for lower prices targeting consumers who are not willing to pay
for features they will not use.
‘Less-for-much-less’ positioning involves meeting consumers’ lower performance or
quality requirements at a much lower price. For example, Chinese products have invaded
the Arab world markets with relatively low quality products, but at very low prices, which
have attracted a large number of consumers.
M07_KOTL5681_01_SE_C07.indd 196
29/08/11 9:22 PM
Chapter 7
| Customer-Driven Marketing Strategy: Segmentation, Targeting, and Positioning
197
More for Less. Of course, the winning value proposition would be to offer
‘more for less.’ Many companies claim to do this. And, in the short run, some
companies can actually achieve it. Several mobile operators have built consumption segments where the more minutes a user consumes talking on the
phone, the cheaper each minute becomes. For example, Zain, a mobile operator in Kuwait, offers unlimited communication at a fixed price based on the
duration of users’ subscription. For a one-day unlimited usage, the user pays
US$5.4 per day; if the user subscribes for a week, they pay US$3.6 per day,
and if the user subscribes for 30 days, they pay US$2.8 per day.21
Yet in the long run, companies will find it very difficult to sustain
such best-of-both positioning. Offering more usually costs more, making it
difficult to deliver on the ‘for-less’ promise. Companies that try to deliver
both may lose out to more focused competitors.
All said, each brand must adopt a positioning strategy designed to
serve the needs and wants of its target markets. ‘More for more’ will draw
one target market, ‘less for much less’ will draw another, and so on. Thus,
in any market, there is usually room for many different companies, each
successfully occupying different positions. The important thing is that
each company must develop its own winning positioning strategy, one
that makes it special to its target consumers.
Developing a Positioning Statement
Company and brand positioning should be summed up in a positioning
statement. The statement should follow the form: To (target segment and
need) our (brand) is (concept) that (point-of-difference).22 For example: “To
busy, mobile professionals who need to always be in the loop, BlackBerry
is a wireless connectivity solution that gives you an easier, more reliable
way to stay connected to data, people, and resources while on the go.”23
Note that the positioning first states the product’s membership in a
Home Centre in Egypt was one of the first movers in the
category (wireless connectivity solution) and then shows its point-of-difdirection of ‘more for less’ offers after the revolution in
January 2011.
ference from other members of the category (easier, more reliable connections to data, people, and resources). Placing a brand in a specific category
suggests similarities that it might share with other products in the category. But the case for
the brand’s superiority is made on its points of difference.
Positioning statement
Sometimes marketers put a brand in a surprisingly different category before indicating
A statement that summarizes company or
the points of difference. Nestlé’s Nescafé brand has several products in the instant coffee
brand positioning—it takes this form: To
market, including Nescafé Gold, positioned as better instant coffee, and Nescafé Espresso,
(target segment and need) our (brand) is
positioned as the Italian instant coffee (instant coffee that looks better and tastes like
(concept) that (point-of-difference).
espresso). The positioning of Nescafé Espresso as gourmet coffee puts it in a completely
different category versus the other instant coffee products in the market.
Communicating and Delivering
the Chosen Position
Once it has chosen a position, the company must take strong steps to deliver and communicate the desired position to target consumers. All the company’s marketing mix efforts
must support the positioning strategy.
Positioning the company calls for concrete action, not just talk. If the company decides to
build a position on better quality and service, it must first deliver that position. Designing the marketing mix—product, price, place, and promotion—involves working out the tactical details of
the positioning strategy. Thus, a firm that seizes on a more-for-more position knows that it must
produce high-quality products, charge a high price, distribute through high-quality dealers, and
advertise in high-quality media. It must hire and train more service people, find retailers who
have a good reputation for service, and develop sales and advertising messages that broadcast its
superior service. This is the only way to build a consistent and believable more-for-more position.
M07_KOTL5681_01_SE_C07.indd 197
29/08/11 9:22 PM
198
Part Three
| Designing a Customer-Driven Strategy and Mix
Companies often find it easier to come up with a good positioning strategy than to
implement it. Establishing a position or changing one usually takes a long time. In contrast,
positions that have taken years to build can quickly be lost. Once a company has built the
desired position, it must take care to maintain the position through consistent performance
and communication. It must closely monitor and adapt the position over time to match
changes in consumer needs and competitors’ strategies. However, the company should
avoid abrupt changes that might confuse consumers. Instead, a product’s position should
evolve gradually as it adapts to the ever-changing marketing environment.
REVIEWING Objectives AND KEY Terms
In this chapter, you’ve learned about the major elements of a
customer-driven marketing strategy: segmentation, targeting,
differentiation, and positioning. Marketers know that they cannot appeal to all buyers in their markets, or at least not to all
buyers in the same way. Buyers are too numerous, too widely
scattered, and too varied in their needs and buying practices.
Therefore, most companies today practice target marketing—
identifying market segments, selecting one or more of them, and
developing products and marketing mixes tailored to each.
by business consumer demographics (industry, company size),
operating characteristics, purchasing approaches, situational factors, and personal characteristics. The effectiveness of segmentation analysis depends on finding segments that are measurable,
accessible, substantial, differentiable, and actionable.
OBJECTIVE 3 Explain how companies identify attractive
market segments and choose a market-targeting strategy.
(pp 186–192)
OBJECTIVE 1 Define the major steps in designing a
customer-driven marketing strategy: market segmentation,
targeting, differentiation, and positioning. (p 177)
Customer-driven marketing strategy begins with selecting which
customers to serve and deciding on a value proposition that
best serves them. It consists of four steps. Market segmentation is the act of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors who might
require separate products or marketing mixes. Once the groups
have been identified, market targeting evaluates each market
segment’s attractiveness and selects one or more segments to
serve. Market targeting consists of designing strategies to build
the right relationships with the right customers. Differentiation
involves actually differentiating the market offering to create
superior customer value. Positioning consists of positioning the
market offering in the minds of target customers.
OBJECTIVE 2 List and discuss the major bases for segmenting consumer and business markets. (pp 178–186)
There is no single way to segment a market. Therefore, the marketer
tries different variables to see which give the best segmentation
opportunities. For consumer marketing, the major segmentation
variables are geographic, demographic, psychographic, and behavioral. In geographic segmentation, the market is divided into different geographical units such as nations, regions, provinces, parishes,
cities, or neighborhoods. In demographic segmentation, the market
is divided into groups based on demographic variables, including
age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. In psychographic
segmentation, the market is divided into different groups based on
social class, lifestyle, or personality characteristics. In behavioral segmentation, the market is divided into groups based on consumers’
knowledge, attitudes, uses, or responses to a product.
Business marketers use many of the same variables to segment their markets. But business markets also can be segmented
M07_KOTL5681_01_SE_C07.indd 198
To target the best market segments, the company first evaluates
each segment’s size and growth characteristics, structural attractiveness, and compatibility with company objectives and resources.
It then chooses one of four market-targeting strategies—ranging
from very broad to very narrow targeting. The seller can ignore segment differences and target broadly using undifferentiated (or mass)
marketing. This involves mass producing, mass distributing, and
mass promoting about the same product in about the same way
to all consumers. Or the seller can adopt differentiated marketing—
developing different market offers for several segments.
Concentrated marketing (or niche marketing) involves focusing on
only one or a few market segments. Finally, micromarketing is the
practice of tailoring products and marketing programs to suit the
tastes of specific individuals and locations. Micromarketing includes
local marketing and individual marketing. Which targeting strategy is
best depends on company resources, product variability, product lifecycle stage, market variability, and competitive marketing strategies.
OBJECTIVE 4 Discuss how companies differentiate and
position their products for maximum competitive advantage in the marketplace. (pp 192–198)
Once a company has decided which segments to enter, it must
decide on its differentiation and positioning strategy. The differentiation and positioning task consists of three steps: identifying a
set of possible differentiations that create competitive advantage,
choosing advantages upon which to build a position, and selecting an overall positioning strategy. The brand’s full positioning is
called its value proposition—the full mix of benefits upon which
the brand is positioned. In general, companies can choose from
one of five winning value propositions upon which to position
their products: more for more, more for the same, the same for
less, less for much less, or more for less. Company and brand positioning are summarized in positioning statements that state the
target segment and need, positioning concept, and specific points
of difference. The company must then effectively communicate
and deliver the chosen position to the market.
29/08/11 9:22 PM
Chapter 7
| Customer-Driven Marketing Strategy: Segmentation, Targeting, and Positioning
199
KEY Terms
Market segmentation (p 177)
Market targeting (targeting) (p 177)
Differentiation (p 177)
Positioning (p 177)
Psychographic segmentation (p 181)
Behavioral segmentation (p 181)
Occasion segmentation (p 181)
Benefit segmentation (p 182)
Intermarket segmentation (p 185)
Concentrated (niche)
marketing (p 188)
Micromarketing (p 188)
Local marketing (p 188)
Individual marketing (p 190)
OBJECTIVE 2
OBJECTIVE 3
OBJECTIVE 4
Geographic segmentation (p 178)
Demographic segmentation (p 180)
Age and life-cycle segmentation (p 180)
Gender segmentation (p 181)
Income segmentation (p 181)
Target market (p 187)
Undifferentiated (mass)
marketing (p 187)
Differentiated (segmented)
marketing (p 187)
Product position (p 192)
Competitive
advantage (p 193)
Value proposition (p 195)
Positioning statement (p 197)
OBJECTIVE 1
DISCUSSING & APPLYING THE Concepts
Discussing the Concepts
1. Briefly describe the four major steps in designing a customerdriven marketing strategy.
2. Name and describe the four major sets of variables that might
be used in segmenting consumer markets. Which segmenting
variable(s) do you think Starbucks is using?
3. Explain how marketers can segment international markets.
4. Compare and contrast undifferentiated, differentiated, concentrated, and micromarketing targeting strategies. Which
strategy is best?
5. What is a product’s ‘position’ and how do marketers know
what it is?
6. Name and define the five winning value propositions
described in the chapter. Which value proposition describes
Wal-Mart? Explain your answer.
Applying the Concepts
1. The chapter described psychographics as one major variable
used by marketers when segmenting consumer markets. SRI
Consulting has developed a typology of consumers based
on their values and lifestyles; specifically it places U.S. adult
consumers into one of eight segments. Go to the website
(www.sric-bi.com), and click on the VALS survey in the right
side of the page. Take the test. How accurately do the VALS
types describe you? What amendments to the survey would
you need to make in order for it to be more appropriate to
your country’s adult consumers. How would the survey results
be affected if your changes were made?
2. Assume you work at a regional university in your country. The
traditional market for the university is post-secondary school
students in your region who have attained sufficiently high
qualifications. However, the university’s target market is
shrinking. In addition, it will decrease by around 5 percent
over the course of the next 10 years. Recommend other
potential market segments the university could pursue, and
discuss the criteria it should consider to ensure that the
segments you identified are effectively targeted.
3. Form a small group and create an idea for a new reality
television show. Using the format provided in the chapter,
develop a positioning statement for this television show. What
competitive advantage does the show have over existing shows?
How many and which differences would you promote?
FOCUS ON Technology
Have you noticed that ads on websites seem to reflect your interests? Do you ever wonder if someone is watching your Internet
behavior? Well, someone (that is, a computer) probably is watching
and tracking you. Marketers use such tracking information to send
targeted ads to consumers —it’s called behavioral targeting. You’ve
no doubt heard of ‘cookies,’ the files deposited on your computer
when you visit a website. If you’ve ever given personally identifying information at a site, it remembers you when you return—it’s
all stored in the cookie file. But even if you don’t give personally
identifying information on a website, Internet protocol addresses
(IP addresses) can be tracked to follow where you go and where
you’ve been on the Internet. This tracking lets marketers tailor web
pages, information, offers, and prices to individuals based on their
M07_KOTL5681_01_SE_C07.indd 199
behavioral characteristics. Behavioral targeting is coveted because
it allows marketers to implement micromarketing strategies.
1. TACODA is a behavioral targeting ad network. Visit www.
tacoda.com to learn more about this company. Explore this
website to learn how it lets marketers send Internet ads to
targeted consumers. Then, write a brief report explaining
behavioral targeting and how marketers are using it.
2. Many individuals are concerned that Internet behavioral
tracking violates their privacy. Most websites have access to
users’ IP addresses. Do IP addresses alone qualify as ‘user
identifiable’ information? Learn more about this issue and
write a brief report about it.
29/08/11 9:22 PM
200
Part Three
| Designing a Customer-Driven Strategy and Mix
FOCUS ON Ethics
The increasing number of infomercials and advertisements in the
Arab world for weight control pills has started to trigger reactions in
society. People have been bombarded with advertisements featuring beautiful bodies in revealing clothing, sitting lazily and ingesting multiple food supplements, and ending up looking like movie
stars. The vast majority of these supplements are not approved by
any formal authority or regulated by any government. There is no
authority that places standards on what should or could be shown
to the masses and what message it should communicate.
Many of these products turn out to be a scam, with no actual
value. The organizations offering these products are able to advertise them on television to the majority of the Arab world because
of the lack of regulatory authority. Critics argue that the ads are
misleading the customers about what could be a health-damaging
product, and also that the resulting aspiration for achieving the
perfect body through instant, non-effective, and non-healthy means
requires some supervision and management.
The channels showing these ads have also been criticized for
their role in promoting them. Some channels have taken the initiative of managing the material being advertised. That has resulted
in new satellite channels which use a business model of plugging
in the infomercials into entertainment programs to overcome the
limitations of the television channels and also to save the cost of
their advertisement.
1. Do you think the channels that show the infomercials have
any form of liability?
2. Give an example of an organization or a governmental
authority that has taken the responsibility of managing the
honesty of a television advertisement.
MARKETING BY THE Numbers
China’s fast-paced economic growth and the Chinese’s increasing levels of disposable income have had a major impact on the
pet industry. The latest research suggests that pet ownership
is on the rise in China. The demand for pet food products in
the country is also growing. Although the pet food market in
China is still small by Western standards, it offers high growth
potential.
1. Refer to Appendix 2: Marketing by the Numbers. Carry out
research to estimate what the potential market for dog food
in China might be.
2. What big, overseas pet food companies are already doing
business in China?
3. How does the Mexican market for pet food compare with
China’s pet food market?
VIDEO Case
Meredith
The Meredith Corporation has developed an expertise in building customer relationships through segmentation, targeting,
and positioning. Amazingly, however, it has done this by focusing on only half of the population—the female half. Meredith
has developed the largest database of any U.S. media company
and uses that database to meet the specific needs and desires
of women.
Meredith is known for leading titles such as Better Homes and
Gardens, Family Circle, and Ladies’ Home Journal. But that list has
grown to a portfolio of 14 magazines and more than 200 special
interest publications. Through these magazines alone, Meredith
regularly reaches about 30 million readers. By focusing on core
categories of home, family, and personal development, Meredith
has developed a product mix designed to meet various needs of
women. This creates multiple touch points as individual women
engage with more than one magazine, as well as with specialty
books and websites.
After viewing the video featuring Meredith, answer the following questions about segmenting, targeting, and positioning:
1. On what main variables has Meredith focused in segmenting
its markets?
2. Which target marketing strategy best describes Meredith’s
efforts? Support your choice.
3. How does Meredith use its variety of products to build relationships with the right customers?
COMPANY Case
The Arab Online World—
Microsoft Maren
The Arab world has become more and more lucrative for the
international market over the years. It is one of the largest
M07_KOTL5681_01_SE_C07.indd 200
growing regions in the world and provides many organizations with huge growth potential. The Arab world alone has
63,240,946 Internet users as of 2010, out of a total population of 212,336,924. That means that more than 29 percent of
the population are Internet users. The North Africa region has
40,356,400 Internet users as of 2010, out of a total population
29/08/11 9:22 PM
Chapter 7
| Customer-Driven Marketing Strategy: Segmentation, Targeting, and Positioning
of 205,716,142, equivalent to 19 percent of the population.
Over the last 10 years, Internet usage in the Arab world has
shown growth of around 1,825 percent compared with 432
percent for the rest of the world.
The Arabic language is the seventh most spoken language
worldwide. It is estimated that 18 percent of Arabic speakers are
Internet users. Between 2000 and 2010 the amount of online
content in the Arabic language grew by 2,501 percent, far outstripping the rest of the world and making the potential for marketing in the region huge.
The Internet has become the life blood of many organizations. Companies such as Microsoft, Google, Yahoo!, Amazon,
and Facebook make their living when more people are online,
and it is not a modest living by any means. As a result of the
nature and the culture of the region, the product offering to
the Arab world has to be customized to meet their lifestyle and
expectations.
BARRIERS
One of the barriers to increasing Internet usage in the Arab world
is language. The rich culture of the Arab world is not yet matched
by the content and usage online. Many companies have started
building Arabic versions of their products, which are strictly targeted at the lucrative, growing region.
With all these companies being in the interactive business,
they faced problems communicating with the users in their language. Even where the products were in Arabic, the user had
several challenges in using them.
Microsoft launched its Arabic language support in the early
1990s, allowing users to type in their native language within
the Microsoft products and online. The language plug-in was
highly appreciated, but left the customer with much to desire.
Keyboards did not have Arabic support, and the users were unaccustomed to the letter layout.
The users were so familiar with the QWERTY keyboard that
learning a new keyboard layout was very challenging for many
of them. The first attempt to break that barrier was with typing
teachers. Many were published, downloaded, and used. But typing
teachers were insufficient and required a great deal of effort on the
part of the user. Another approach was the virtual keyboard, in the
Arabic alphabet, but this required continuous switching between
applications to produce the Arabic text the user desired.
THE MOVEMENT OF THE PEOPLE
Independently, the users resorted to transliteration: this
involves using Roman characters to spell out Arabic words
phonetically. This approach creates what is known as Arabish
(also known as ‘Aralish,’ ‘Franco-Arabic, or Arabizi’). This
character encoding of Arabic to the Roman alphabet and the
Hindu-Arabic numerals is also known as Arabic Chat Alphabet
because it is most commonly used to communicate on online
chat services. Some users have also developed special notations to use in place of letters that don’t exist in the Roman
alphabet. For example:
The user types: ana raye7 el gam3a el sa3a 3 el 3asr.
Meaning: “‫ ﺍﻟﻌﺼﺮ‬3 ‫”ﺍﻧﺎ ﺭﺍﻳﺢ ﺍﻟﺠﺎﻣﻌﻪ ﺍﻟﺴﺎﻋﻪ‬
English translation: “I’m going to college at 3pm.”
The user types: kif sa7tak, chou 3am ta3mil?.
Saying: “‫ ﺷﻮ ﻋﻤﺘﻌﻤﻞ؟‬،‫”ﻛﻴﻒ ﺻﺤﺘﻚ‬
English translation: “How is your health, what are you doing?”
M07_KOTL5681_01_SE_C07.indd 201
201
As soon as organizations became aware of the massive trend
of Arabish, wanting to tap into this market, they started advertising and communicating in this language form. Ads using the
Arabish language began to appear online, on television, on products and even in movie posters.
ARABISH IS NOT ENOUGH
After capitalizing on the Arabish language, and as Internet
usage grew tremendously, controversy started. There was a
backlash against Arabish, with some believing it was changing
the heritage of the Arab world. Reacting to this controversy,
by knowing their customers well, companies such as Microsoft
began to offer actual Arabic text in order to assure the maximum reach, acceptance, and adoption of their products by all
sectors of society.
A team at Microsoft’s Innovation Lab, led by Mostafa Ashour,
started to build a product that translated Arabish into Arabic.
Microsoft Maren, though not the first of its kind, was the most
impressive. Microsoft Maren seamlessly integrated into Windows
and allowed users to capitalize on their familiarity with the
QWERTY keyboard, and still produce Arabic text. For example, if a
user typed “saba7 el kheir” meaning “good morning”, ‫ﺻﺒﺎﺡ ﺍﻟﺨﻴﺮ‬
would appear on the screen.
The advantage Maren had over rival products was that it was
built into the users’ system, and logging in to websites, typing,
copying, and pasting were no longer required.
The product was welcomed by online users. Now the users’
chat, blogs, posts, and comments were perfectly accessible to
all their target audience. There were more than 250,000 downloads of Maren from Microsoft pages alone, in addition to those
downloaded from other sources. Mostafa Ashour, program
manager at Microsoft, says, “This is a real life scenario where
communicating in your own language makes all the difference.
Expressing your intense feelings of joy or sorrow is better served
using your native tongue. Maren helps you communicate efficiently in Arabic if you lack access to an Arabic keyboard or you
are not familiar with one.”
The evolution of products for the Arab world is very interesting to observe, by knowing the market, not least because companies can trap into the huge potential for sales in the region.
Questions for Discussion
1. Using www.internetworldstats.com select one country in
the Arab world and analyze the market demographics,
then select a lucrative market segment and explain your
choice.
2. For that segment propose a product offering based on
Internet usage that delivers value to the customer.
3. Define the positioning that you will offer to your customers
based on what you know about the behavior of the selected
segment.
4. How does the launch of Maren affect the business of
Microsoft in the Arab world?
Sources: “Internet World Stats: Usage and Population Statistics,”
2011, www.internetworldstats.com; “Your Maren Story,” Miscrosoft
Maren (MSDN Blogs), July 22, 2009, http://blogs.msdn.com/b/maren/
archive/2009/07/22/your-maren-story.aspx; “Arabic chat albhabet,”
wikipedia, http://en.wikipedia.org/wiki/Arabic_chat_alphabet.
This case was provided by Mohamed Radwan, adjunct faculty
member at the American University in Cairo and managing director for
Platinum Partners.
29/08/11 9:22 PM
Glossary
Adapted global marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻌﺎﻟﻤﻲ ﺍﻟﻤﻌﺪﻝ ﺣﺴﺐ ﻛﻞ ﺳﻮﻕ‬
Benchmarking | ‫ﺍﻟﻤﻘﺎﺭﻧﺔ ﺍﻟﻤﺮﺟﻌﻴﺔ‬
An international marketing strategy for adjusting the marketing
strategy and mix elements to each international target market, bearing
more costs but hoping for a larger market share and return.
The process of comparing the company’s products and processes
to those of competitors or leading firms in other industries to
identify “best practices” and find ways to improve quality and
performance.
Administered VMS | ‫ﻧﻈﺎﻡ ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﺮﺃﺳﻲ ﺍﻟﻤﺤﻜﻢ‬
A vertical marketing system that coordinates successive stages of
production and distribution, not through common ownership or
contractual ties, but through the size and power of one of the parties.
Benefit segmentation | ‫ﺗﻘﺴﻴﻢ ﺍﻟﺴﻮﻕ ﻭﻓﻘﺎ ﻟﻠﻔﺎﺋﺪﺓ ﺍﻟﺘﻰ ﻳﺴﻌﻰ ﺇﻟﻴﻬﺎ ﺍﻟﻤﺴﺘﻬﻠﻚ‬
Adoption process | ‫ﻋﻤﻠﻴﺔ ﺗﺒﻨﻲ ﻓﻜﺮﺓ ﺟﺪﻳﺪﺓ‬
Brand equity |
The mental process through which an individual passes from first
hearing about an innovation to final adoption.
Advertising | ‫ﺍﻟﺪﻋﺎﻳﺔ‬
Dividing the market into groups according to the different benefits
that consumers seek from the product.
‫ﺗﻘﺴﻴﻢ ﺍﻟﺴﻮﻕ ﻭﻓﻘﺎ ﻟﻠﻔﺎﺋﺪﺓ ﺍﻟﺘﻰ ﻳﺴﻌﻰ ﺇﻟﻴﻬﺎ ﺍﻟﻤﺴﺘﻬﻠﻚ‬
The differential effect that knowing the brand name has on customer
response to the product or its marketing.
Any paid form of nonpersonal presentation and promotion of ideas,
goods, or services by an identified sponsor.
Brand extension | ‫ﺗﻮﺳﻴﻊ ﺍﺳﺘﺨﺪﺍﻡ ﺍﻟﻌﻼﻣﺔ ﺍﻟﺘﺠﺎﺭﻳﺔ‬
Advertising agency | ‫ﻭﻛﺎﻟﺔ ﺇﻋﻼﻧﺎﺕ‬
Brand personality | ‫ﺳﻤﺎﺕ ﺍﻟﻌﻼﻣﺔ ﺍﻟﺘﺠﺎﺭﻳﺔ‬
A marketing services firm that assists companies in planning,
preparing, implementing, and evaluating all or portions of their
advertising programs.
Advertising budget | ‫ﻣﻴﺰﺍﻧﻴﺔ ﺍﻟﺪﻋﺎﻳﺔ‬
The dollars and other resources allocated to a product or company
advertising program.
Advertising media | ‫ﻭﺳﺎﺋﻞ ﺍﻹﻋﻼﻥ‬
The vehicles through which advertising messages are delivered to
their intended audiences.
Extending an existing brand name to new product categories.
The specific mix of human traits that may be attributed to a particular
brand.
Brand | ‫ﺍﻟﻌﻼﻣﺔ ﺍﻟﺘﺠﺎﺭﻳﺔ‬
A name, term, sign, symbol, design, or a combination of these that
identifies the products or services of one seller or group of sellers and
differentiates them from those of competitors.
Break-even pricing (target profit pricing) |
(‫ﺍﻟﺘﺴﻌﻴﺮ ﻋﻠﻰ ﺃﺳﺎﺱ ﻧﻘﻄﺔ ﺍﻟﺘﻌﺎﺩﻝ )ﺍﻟﺘﺴﻌﻴﺮ ﻋﻠﻰ ﺃﺳﺎﺱ ﺍﻟﺮﺑﺢ ﺍﻟﻤﺴﺘﻬﺪﻑ‬
Advertising objective | ‫ﺍﻟﻬﺪﻑ ﺍﻹﻋﻼﻧﻲ‬
Analysis to determine the unit volume and dollar sales needed to be
profitable given a particular price and cost structure.
A specific communication task to be accomplished with a specific target
audience during a specific period of time.
Business analysis | ‫ﺗﺤﻠﻴﻞ ﺍﻷﻧﺸﻄﺔ ﺍﻟﺘﺠﺎﺭﻳﺔ‬
Advertising strategy | ‫ﺍﺳﺘﺮﺍﺗﻴﺠﻴﺔ ﺍﻟﺪﻋﺎﻳﺔ‬
The strategy by which the company accomplishes its advertising
objectives. It consists of two major elements: creating advertising
messages and selecting advertising media.
Affordable method | ‫ﻣﻴﺰﺍﻧﻴﺔ ﺩﻋﺎﻳﺔ ﻳﻤﻜﻦ ﺗﺤﻤﻠﻬﺎ‬
Setting the promotion budget at the level management thinks the
company can afford.
Age and life-cycle segmentation |
‫ﺍﻟﺘﻘﺴﻴﻢ ﻭﻓﻘًﺎ ﻟﻠﻔﺌﺔ ﺍﻟﻌﻤﺮﻳﺔ ﻭﺍﻟﺪﻭﺭﺓ ﺍﻟﺤﻴﺎﺗﻴﺔ‬
Dividing a market into different age and life-cycle groups.
Alternative evaluation | ‫ﺍﻟﺘﻘﻴﻴﻢ ﺍﻟﺒﺪﻳﻞ‬
The stage of the buyer decision process in which the consumer uses
information to evaluate alternative brands in the choice set.
Approach | (‫ﺍﻟﻤﻘﺎﺑﻠﺔ ﺍﻷﻭﻟﻰ )ﻓﻲ ﻋﻤﻠﻴﺔ ﺍﻟﺒﻴﻊ‬
The step in the selling process in which the salesperson meets the
customer for the first time.
Attitude | ‫ﻣﻮﻗﻒ‬
A person’s consistently favorable or unfavorable evaluations, feelings,
and tendencies toward an object or idea.
Baby boomers | 1964 ‫ﻣﻮﺍﻟﻴﺪ ﻣﺎ ﺑﻌﺪ ﺍﻟﺤﺮﺏ ﺍﻟﻌﺎﻟﻤﻴﺔ ﺍﻟﺜﺎﻧﻴﺔ ﻭﺣﺘﻰ ﻋﺎﻡ‬
The 78 million people born during the baby boom following World
War II and lasting until 1964.
Behavioural segmentation | ‫ﺍﻟﺘﻘﺴﻴﻢ ﻋﻠﻰ ﺃﺳﺎﺱ ﺍﻟﺴﻠﻮﻙ‬
Dividing a market into groups based on consumer knowledge,
attitudes, uses, or responses to a product.
Belief | ‫ﺍﻻﻋﺘﻘﺎﺩ‬
A descriptive thought that a person holds about something.
A review of the sales, costs, and profit projections for a new
product to find out whether these factors satisfy the company’s
objectives.
Business buyer behaviour |
‫ﺳﻠﻮﻙ ﻣﺸﺘﺮﻱ ﻣﻨﺘﺠﺎﺕ ﺃﻭ ﺧﺪﻣﺎﺕ ﺍﻷﻧﺸﻄﺔ ﺍﻟﺘﺠﺎﺭﻳﺔ‬
The buying behavior of the organizations that buy goods and services
for use in the production of other products and services or to resell or
rent them to others at a profit.
Business buying process | ‫ﻋﻤﻠﻴﺔ ﺷﺮﺍء ﺍﻟﺨﺪﻣﺎﺕ ﻭﺍﻟﺴﻠﻊ ﺍﻟﺘﺠﺎﺭﻳﺔ‬
The decision process by which business buyers determine which
products and services their organizations need to purchase, and
then find, evaluate, and choose among alternative suppliers and
brands.
Business portfolio |
‫ﻣﺠﻤﻮﻉ ﺍﻻﻋﻤﺎﻝ ﺍﻟﺘﺠﺎﺭﻳﺔ ﻭ ﺍﻟﻤﻨﺘﺠﺎﺕ ﺍﻟﺘﻲ ﺗﺘﻜﻮﻥ ﻣﻨﻬﺎ ﻭ ﺗﻘﺪﻣﻬﺎ ﺍﻟﺸﺮﻛﺔ‬
The collection of businesses and products that make up the company.
Business promotions | ‫ﺍﻟﻌﺮﻭﺽ ﺍﻟﺘﺮﻭﻳﺠﻴﺔ ﻟﻠﻨﺸﺎﻁ ﺍﻟﺘﺠﺎﺭﻱ‬
Sales promotion tools used to generate business leads, stimulate
purchases, reward customers, and motivate salespeople.
Business-to business (BB) online marketing |
‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻹﻟﻜﺘﺮﻭﻧﻲ ﻓﻴﻤﺎ ﺑﻴﻦ ﺍﻟﻤﺆﺳﺴﺎﺕ ﺍﻟﺘﺠﺎﺭﻳﺔ‬
Businesses using B2B Web sites, e-mail, online catalogs, online
trading networks, and other online resources to reach new business
customers, serve current customers more effectively, and obtain
buying efficiencies and better prices.
Business-to-consumer (BC) online marketing |
‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻹﻟﻜﺘﺮﻭﻧﻲ ﺑﻴﻦ ﺍﻟﺸﺮﻛﺎﺕ ﻭﺍﻟﻌﻤﻼء‬
Businesses selling goods and services online to final consumers.
G1
Z05_KOTL5681_01_SE_GLOS.indd G1
8/31/11 10:31 PM
G2
Glossary
Competitive marketing strategies | ‫ﺍﺳﺘﺮﺍﺗﻴﺠﻴﺎﺕ ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﺘﻨﺎﻓﺴﻴﺔ‬
Buyer-readiness stages |
‫ﺍﻟﻤﺮﺍﺣﻞ ﺍﻟﺘﻲ ﻳﻤﺮ ﺧﻼﻟﻬﺎ ﺍﻟﻤﺴﺘﻬﻠﻚ ﻗﺒﻞ ﻋﻤﻠﻴﺔ ﺇﺗﺨﺎﺫ ﻗﺮﺍﺭ ﺍﻟﺸﺮﺍء‬
The stages consumers normally pass through on their way to
purchase, including awareness, knowledge, liking, preference,
conviction, and purchase.
Buyers | ‫ﺍﻟﻤﺸﺘﺮﻳﻦ‬
Strategies that strongly position the company against competitors
and that give the company the strongest possible strategic
advantage.
Competitive-parity method | ‫ﻃﺮﻳﻘﺔ ﺍﻟﺘﻤﺎﺛﻞ ﺍﻟﺘﻨﺎﻓﺴﻴﺔ‬
Setting the promotion budget to match competitors’ outlays.
The people in the organization’s buying center who make an actual
purchase.
Buying center | ‫ﻣﺮﻛﺰ ﺍﻟﺸﺮﺍء‬
All the individuals and units that play a role in the purchase decision
making process.
Buzz marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺑﻠﻔﺖ ﺍﻻﻧﺘﺒﺎﻩ‬
Cultivating opinion leaders and getting them to spread information
about a product or service to others in their communities.
By-product pricing | ‫ﺗﺴﻌﻴﺮ ﺍﻟﻤﻨﺘﺠﺎﺕ ﺍﻟﻔﺮﻋﻴﺔ‬
Competitor analysis | ‫ﺗﺤﻠﻴﻞ ﺍﻟﺠﻬﺔ ﺍﻟﻤﻨﺎﻓﺴﺔ‬
The process of identifying key competitors; assessing their objectives,
strategies, strengths and weaknesses, and reaction patterns; and
selecting which competitors to attack or avoid.
Competitor-centered company | ‫ﺷﺮﻛﺔ ﺗﺮﻛﺰ ﻋﻠﻰ ﺍﻟﻤﻨﺎﻓﺲ‬
A company whose moves are mainly based on competitors’ actions
and reactions.
Complex buying behaviour | ‫ﺳﻠﻮﻙ ﺍﻟﺸﺮﺍء ﺍﻟﻤﻌﻘﺪ‬
Setting a price for by-products in order to make the main product’s
price more competitive.
Consumer buying behavior in situations characterized by high
consumer involvement in a purchase and significant perceived
differences among brands.
Captive-product pricing | ‫ﺗﺴﻌﻴﺮ ﺍﻟﻤﻨﺘﺠﺎﺕ ﺍﻟﻤﺴﺎﻧﺪﺓ‬
Concentrated (niche) marketing | (‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻤﺮﻛﺰ )ﻣﺘﺨﺼﺺ‬
Setting a price for products that must be used along with a main
product, such as blades for a razor and film for a camera.
A market coverage strategy in which a firm goes after a large share of
one or a few segments or niches.
Causal research |
Concept testing | ‫ﺍﺧﺘﺒﺎﺭ ﺍﻟﻤﻔﺎﻫﻴﻢ‬
‫ﺍﻟﺒﺤﺚ ﺍﻟﺘﺴﻮﻳﻘﻲ ﺍﻻﻋﺘﻴﺎﺩﻱ ﺍﻟﺬﻯ ﻳﺨﺘﺒﺮ ﺍﻟﻔﺮﺿﻴﺎﺕ ﺣﻮﻝ ﺍﻟﻌﻼﻗﺔ ﺑﻴﻦ ﺍﻟﺴﺒﺐ ﻭﺍﻟﺘﺄﺛﻴﺮ‬
Marketing research to test hypotheses about cause-and-effect
relationships.
Chain stores | (‫ﻣﺘﺎﺟﺮ ﻣﺘﻌﺪﺩﺓ ﺍﻟﻔﺮﻭﻉ )ﺳﻠﺴﻠﺔ ﻣﺘﺎﺟﺮ‬
Testing new-product concepts with a group of target consumers to
find out if the concepts have strong consumer appeal.
Consumer buyer behaviour | ‫ﺳﻠﻮﻙ ﺍﻟﻤﺴﺘﻬﻠﻚ ﺍﻟﺸﺮﺍﺋﻲ‬
Two or more outlets that are commonly owned and controlled.
The buying behavior of final consumers—individuals and households
that buy goods and services for personal consumption.
Channel conflict | ‫ﺍﻟﺼﺮﺍﻉ ﺑﻴﻦ ﺍﻟﻘﻨﻮﺍﺕ ﺍﻟﺘﺴﻮﻳﻘﻴﺔ‬
Consumer market | ‫ﺳﻮﻕ ﺍﻟﻤﺴﺘﻬﻠﻚ‬
Disagreement among marketing channel members on goals and
roles—who should do what and for what rewards.
All the individuals and households who buy or acquire goods and
services for personal consumption.
Channel level | ‫ﻣﺴﺘﻮﻯ ﺍﻟﺘﻮﺯﻳﻊ‬
Consumer product | ‫ﻣﻨﺘﺞ ﺍﻻﺳﺘﻬﻼﻛﻲ‬
A layer of intermediaries that performs some work in bringing the
product and its ownership closer to the final buyer
A product bought by final consumer for personal consumption.
Click-and-mortar companies |
Sales promotion tools used to boost short-term customer buying and
involvement or to enhance longterm customer relationships.
‫ﺷﺮﻛﺎﺕ ﺗﻘﻮﻡ ﺑﺘﺴﻮﻳﻖ ﻣﻨﺘﺠﺎﺗﻬﺎ ﺑﺎﻟﻄﺮﻕ ﺍﻟﺘﻘﻠﻴﺪﻳﺔ ﺑﺎﻹﺿﺎﻓﺔ ﺇﻟﻰ ﺍﻹﻧﺘﺮﻧﺖ‬
Traditional brick-and-mortar companies that have added online
marketing to their operations.
Click-only companies | ‫ﺷﺮﻛﺎﺕ ﺗﻘﻮﻡ ﺑﺘﺴﻮﻳﻖ ﻣﻨﺘﺠﺎﺗﻬﺎ ﻋﺒﺮ ﺍﻹﻧﺘﺮﻧﺖ ﻓﻘﻂ‬
The so-called dotcoms, which operate only online without any brickand-mortar market presence.
Closing | ‫ﺍﺗﻤﺎﻡ ﻋﻤﻠﻴﺔ ﺍﻟﺒﻴﻊ‬
The step in the selling process in which the salesperson asks the
customer for an order.
Co-branding | ‫ﻋﻼﻣﺔ ﺗﺠﺎﺭﻳﺔ ﻣﺸﺘﺮﻛﺔ‬
The practice of using the established brand names of two different
companies on the same product.
Cognitive dissonance | ‫ﺍﻟﺸﻌﻮﺭ ﺑﻌﺪﻡ ﺍﻟﺮﺿﺎ ﺑﻌﺪ ﺷﺮﺍء ﺍﻟﻤﻨﺘﺞ‬
Buyer discomfort caused by postpurchase conflict.
Commercial online databases | ‫ﻗﻮﺍﻋﺪ ﺍﻟﺒﻴﺎﻧﺎﺕ ﺍﻟﺘﺠﺎﺭﻳﺔ ﻋﻠﻰ ﺍﻹﻧﺘﺮﻧﺖ‬
Consumer promotions | ‫ﺍﻟﻌﺮﻭﺽ ﺍﻟﺘﺮﻭﻳﺠﻴﺔ ﻟﻠﻌﻤﻴﻞ‬
Consumer-generated marketing | ‫ﺗﺴﻮﻳﻖ ﻳﻘﻮﻡ ﺑﻪ ﺍﻟﻤﺴﺘﻬﻠﻚ ﻟﻠﺴﻠﻌﺔ‬
Marketing messages, ads, and other brand exchanges created by
consumers themselves—both invited and uninvited.
Consumerism | ‫ﺣﻤﺎﻳﺔ ﺍﻟﻤﺴﺘﻬﻠﻚ‬
An organized movement of citizens and government agencies to
improve the rights and power of buyers in relation to sellers.
Consumer-oriented marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻤﻮﺟﻪ ﻟﻠﻤﺴﺘﻬﻠﻚ‬
The philosophy of sustainable marketing that holds that the company
should view and organize its marketing activities from the consumer’s
point of view.
Consumer-to-business (CB) online marketing |
‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻹﻟﻜﺘﺮﻭﻧﻲ ﻓﻴﻤﺎ ﺑﻴﻦ ﺍﻟﻤﺴﺘﻬﻠﻜﻴﻦ ﻭﺍﻟﻤﺆﺳﺴﺎﺕ ﺍﻟﺘﺠﺎﺭﻳﺔ‬
Online exchanges in which consumers search out sellers, learn about their
offers, and initiate purchases, sometimes even driving transaction terms.
Computerized collections of information available from online
commercial sources or via the Internet.
Consumer-to-consumer (CC) online marketing |
Commercialization | ‫ﺗﻘﺪﻳﻢ ﻣﻨﺘﺞ ﺟﺪﻳﺪ ﻟﻠﺴﻮﻕ‬
Online exchanges of goods and information between final consumers.
‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻹﻟﻜﺘﺮﻭﻧﻲ ﻓﻴﻤﺎ ﺑﻴﻦ ﺍﻟﻤﺴﺘﻬﻠﻜﻴﻦ‬
Introducing a new product into the market.
Contract manufacturing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻹﻟﻜﺘﺮﻭﻧﻲ ﻓﻴﻤﺎ ﺑﻴﻦ ﺍﻟﻤﺴﺘﻬﻠﻜﻴﻦ‬
Communication adaptation |
A joint venture in which a company contracts with manufacturers in a
foreign market to produce the product or provide its service.
‫ﻣﻮﺍﺋﻤﺔ ﺍﻹﻋﻼﻧﺎﺕ ﺍﻟﺘﺠﺎﺭﻳﺔ ﻟﻼﺳﻮﺍﻕ ﺍﻟﻤﺤﻠﻴﺔ ﺍﻟﻤﺨﺘﻠﻔﺔ‬
A global communication strategy of fully adapting advertising
messages to local markets.
Competitive advantage | ‫ﺍﻟﻤﻴﺰﺓ ﺍﻟﺘﻨﺎﻓﺴﻴﺔ‬
An advantage over competitors gained by offering greater customer
value, either through lower prices or by providing more benefits that
justify higher prices.
Z05_KOTL5681_01_SE_GLOS.indd G2
Contractual VMS | ‫ﻧﻈﺎﻡ ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﺮﺃﺳﻲ ﺍﻟﺘﻌﺎﻗﺪﻱ‬
A vertical marketing system in which independent firms at different
levels of production and distribution join together through contracts to
obtain more economies or sales impact than they could achieve alone.
Convenience product | (‫ﺴّﺮ‬
َ ‫ﻣﻨﺘﺞ ﺳﻬﻞ ﺍﻟﻤﻨﺎﻝ )ﻣﻴ‬
A consumer product that customers usually buy frequently,
immediately, and with a minimum of comparison and buying effort.
8/31/11 10:31 PM
G3
Glossary
Convenience store | ‫ﻣﺘﺎﺟﺮ ﺻﻐﻴﺮﺓ‬
Customer-centered company | ‫ﺷﺮﻛﺔ ﺗﺮﻛﺰ ﻋﻠﻰ ﺍﻟﻌﻤﻴﻞ‬
A small store, located near a residential area, that is open long
hours seven days a week and carries a limited line of high-turnover
convenience goods.
A company that pays balanced attention to both customers and
competitors in designing its marketing strategies.
Customer-centered new-product development |
‫ﺗﻄﻮﻳﺮ ﺍﻟﻤﻨﺘﺠﺎﺕ ﺍﻟﺠﺪﻳﺪﺓ ﺍﻟﻤﺴﺘﻬﻔﺔ ﻟﻠﻌﻤﻼء‬
Conventional distribution channel | ‫ﻗﻨﻮﺍﺕ ﺍﻟﺘﻮﺯﻳﻊ ﺍﻟﺘﻘﻠﻴﺪﻳﺔ‬
A channel consisting of one or more independent producers,
wholesalers, and retailers, each a separate business seeking to maximize
its own profits even at the expense of profits for the system as a whole.
New-product development that focuses on finding new ways to solve
customer problems and create more customer satisfying experiences.
Corporate (or brand) website |
The customer’s evaluation of the difference between all the benefits and
all the costs of a marketing offer relative to those of competing offers.
(‫ﺍﻟﻤﻮﻗﻊ ﺍﻹﻟﻜﺘﺮﻭﻧﻲ ﻟﻠﺸﺮﻛﺔ )ﺃﻭ ﺍﻟﻌﻼﻣﺔ ﺍﻟﺘﺠﺎﺭﻳﺔ‬
A website designed to build customer goodwill, collect customer
feedback, and supplement other sales channels, rather than to sell the
company’s products directly.
Corporate VMS | ‫ﻧﻈﺎﻡ ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﺮﺃﺳﻲ ﻟﻠﺸﺮﻛﺎﺕ‬
A vertical marketing system that combines successive stages of
production and distribution under single ownership—channel
leadership is established through common ownership.
Cost-based pricing | ‫ﺍﻟﺘﺴﻌﻴﺮ ﺍﻟﻘﺎﺋﻢ ﻋﻠﻰ ﺍﻟﺘﻜﻠﻔﺔ‬
Setting prices based on the costs for producing, distributing, and
selling the product plus a fair rate of return for effort and risk.
Customer-perceived value | ‫ﺍﻟﻘﻴﻤﺔ ﺍﻟﻤﺪﺭﻛﺔ ﻟﻠﻤﺴﺘﻬﻠﻚ‬
Customer relationship management (CRM) |
‫ﺍﺩﺍﺭﺓ ﻋﻼﻗﺎﺕ ﺍﻟﻤﺴﺘﻬﻠﻜﻴﻦ‬
Managing detailed information about individual customers and
carefully managing customer ‘touch points’ in order to maximize
customer loyalty.
Customer-value marketing | ‫ﻗﻴﻤﺔ ﺍﻟﻤﺴﺘﻬﻠﻚ ﺍﻟﺘﺴﻮﻳﻘﻴﺔ‬
A principle of sustainable marketing that holds that a company should
put most of its resources into customer value-building marketing
investments.
Deciders | ‫ﺃﺻﺤﺎﺏ ﺍﻟﻘﺮﺍﺭ‬
Adding a standard markup to the cost of the product.
People in the organization’s buying center who have formal or
informal power to select or approve the final suppliers.
Countertrade | (‫ﺍﻟﺘﺠﺎﺭﺓ ﻋﻦ ﻃﺮﻳﻖ ﺗﺒﺎﺩﻝ ﺍﻟﺴﻠﻊ ﺑﺪﻻ ﻣﻦ ﺍﻟﻤﺎﻝ )ﺍﻟﻤﻘﺎﻳﻀﺔ‬
Decline stage | ‫ﻣﺮﺣﻠﺔ ﺍﻟﺘﺪﻫﻮﺭ‬
International trade involving the direct or indirect exchange of goods
for other goods instead of cash.
The product life-cycle stage in which a product’s sales decline.
Deficient products | ‫ﺍﻟﻤﻨﺘﺠﺎﺕ ﺍﻟﻤﻌﻴﺒﺔ‬
Creative concept | ‫ﻣﻔﻬﻮﻡ ﺍﻹﺑﺪﺍﻉ‬
Products that have neither immediate appeal nor long-run benefits
Cost-plus pricing | ‫ﺍﻟﺘﺴﻌﻴﺮ ﻋﻠﻰ ﺃﺳﺎﺱ ﺍﺟﻤﺎﻟﻲ ﺍﻟﺘﻜﻠﻔﺔ ﻭﺍﻟﺮﺑﺢ‬
The compelling “big idea” that will bring the advertising message
strategy to life in a distinctive and memorable way.
Cultural environment | ‫ﺍﻟﺒﻴﺌﺔ ﺍﻟﺜﻘﺎﻓﻴﺔ‬
Demand curve | ‫ﻣﻨﺤﻨﻰ ﺍﻟﻄﻠﺐ‬
A curve that shows the number of units the market will buy in a given
time period, at different prices that might be charged.
Institutions and other forces that affect society’s basic values,
perceptions, preferences, and behaviors.
Demands | ‫ﺍﻟﻤﺘﻄﻠﺒﺎﺕ‬
Culture | ‫ﺍﻟﺜﻘﺎﻓﺔ‬
Demographic segmentation | ‫ﺍﻟﺘﻘﺴﻴﻢ ﺍﻟﺪﻳﻤﻮﻏﺮﺍﻓﻲ‬
The set of basic values, perceptions, wants, and behaviors learned by a
member of society from family and other important institutions.
Dividing the market into groups based on variables such as age,
gender, family size, family life cycle, income, occupation, education,
religion, race, generation, and nationality.
Customer database | ‫ﻗﻮﺍﻋﺪ ﺑﻴﺎﻧﺎﺕ ﺍﻟﻌﻤﻼء‬
Human wants that are backed by buying power.
An organized collection of comprehensive data about individual
customers or prospects, including geographic, demographic,
psychographic, and behavioral data.
Demography | (‫ﺍﻟﺪﻳﻤﻐﺮﺍﻓﻴﺎ )ﻋﻠﻢ ﺩﺭﺍﺳﺔ ﺍﻟﺴﻜﺎﻥ‬
Customer equity | ‫ﻗﻴﻤﺔ ﺍﻟﻌﻤﻴﻞ‬
Department store | ‫ﻣﺘﺎﺟﺮ ﻛﺒﺮﻯ‬
The total combined customer lifetime values of all of the company’s
customers.
A retail organization that carries a wide variety of product lines—
each line is operated as a separate department managed by specialist
buyers or merchandisers.
Customer insights | ‫ﺭﺅﻯ ﺍﻟﻌﻤﻼء‬
The study of human populations in terms of size, density, location,
age, gender, race, occupation, and other statistics.
Fresh understandings of customers and the marketplace derived from
marketing information that become the basis for creating customer
value and relationships.
Derived demand | ‫ﺍﻟﻄﻠﺐ ﺍﻻﺷﺘﻘﺎﻗﻲ‬
Customer lifetime value | ‫ﺍﻟﻘﻴﻤﺔ ﺍﻟﺪﺍﺋﻤﺔ ﻟﻠﻌﻤﻴﻞ‬
Descriptive research | ‫ﺍﻟﺒﺤﺚ ﺍﻟﻮﺻﻔﻲ‬
The value of the entire stream of purchases that the Customer would
make over a lifetime of patronage.
Marketing research to better describe marketing problems, situations,
or markets, such as the market potential for a product or the
demographics and attitudes of consumers.
Customer relationship management | ‫ﺇﺩﺍﺭﺓ ﻋﻼﻗﺎﺕ ﺍﻟﻌﻤﻼء‬
Business demand that ultimately comes from (derives from) the
demand for consumer goods.
Managing detailed information about individual customers and
carefully managing customer “touch points” in order to maximize
customer loyalty.
Desirable products | ‫ﺍﻟﻤﻨﺘﺠﺎﺕ ﺍﻟﻤﺮﻏﻮﺑﺔ‬
Customer sales force structure | ‫ﻫﻴﻜﻞ ﻗﻮﻯ ﺍﻟﺒﻴﻊ ﻟﻠﻌﻤﻼء‬
Differentiated (segmented) marketing | (‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻤﺘﻨﻮﻉ )ﺍﻟﻤﺠﺰﺃ‬
A sales force organization under which salespeople specialize in
selling only to certain customers or industries.
A market-coverage strategy in which a firm decides to target several
market segments and designs separate offers for each.
Customer satisfaction | ‫ﺭﺿﺎ ﺍﻟﻤﺴﺘﻬﻠﻚ‬
Differentiation | ‫ﺍﻟﻤﻔﺎﺿﻠﺔ‬
The extent to which a product’s perceived performance matches a
buyer’s expectations.
Actually differentiating the market offering to create superior
customer value.
Customer value analysis | ‫ﺗﺤﻠﻴﻞ ﺍﻟﻔﻮﺍﺋﺪ ﺍﻟﺘﻰ ﻳﻌﺘﺒﺮﻫﺎ ﺍﻟﻌﻤﻴﻞ ﻗﻴﻤﺔ‬
Differentiation | ‫ﺍﻟﻤﻔﺎﺿﻠﺔ‬
Analysis conducted to determine what benefits target customers value
and how they rate the relative value of various competitors’ offers.
Actually differentiating the market offering to create superior
customer value.
Z05_KOTL5681_01_SE_GLOS.indd G3
Products that give both high immediate satisfaction and high longrun
benefits.
8/31/11 10:31 PM
G4
Glossary
Direct investment | ‫ﺍﺳﺘﺜﻤﺎﺭ ﻣﺒﺎﺷﺮ‬
Environmentalism | ‫ﺣﻤﺎﻳﺔ ﺍﻟﺒﻴﺌﺔ‬
Entering a foreign market by developing foreign-based assembly or
manufacturing facilities.
An organized movement of concerned citizens and government
agencies to protect and improve people’s current and future living
environment.
Direct marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻤﺒﺎﺷﺮ‬
Direct connections with carefully targeted individual consumers to
both obtain an immediate response and cultivate lasting customer
relationships—the use of direct mail, the telephone, direct response
television, e-mail, the Internet, and other tools to communicate
directly with specific consumers.
E-procurement | ‫ﺍﻟﺸﺮﺍء ﺍﻹﻟﻜﺘﺮﻭﻧﻲ‬
Purchasing through electronic connections between buyers and
sellers—usually online.
Ethnographic research | ‫ﺍﻟﺒﺤﺚ ﺍﻹﺛﻨﻮﻏﺮﺍﻓﻲ‬
A marketing channel that has no intermediary levels.
A form of observational research that involves Sending trained
observers to watch and interact with consumers in their “natural
habitat.”
Direct-mail marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻤﺒﺎﺷﺮ ﻋﺒﺮ ﺍﻟﺒﺮﻳﺪ‬
Event marketing | ‫ﺗﺴﻮﻳﻖ ﺍﻟﺤﺪﺙ‬
Direct marketing by sending an offer, announcement, reminder, or
other item to a person at a particular physical or virtual address.
Creating a brand marketing event or serving as a sole or participating
sponsor of events created by others.
Direct-response television marketing |
Exchange | ‫ﺗﺒﺎﺩﻝ‬
Direct marketing channel | ‫ﻗﻨﻮﺍﺕ ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻤﺒﺎﺷﺮ‬
‫ﺍﻟﺘﺴﻮﻳﻖ ﺑﺎﻻﺳﺘﺠﺎﺑﺔ ﺍﻟﻤﺒﺎﺷﺮﺓ ﻋﺒﺮ ﺍﻟﺘﻠﻴﻔﺰﻳﻮﻥ‬
Direct marketing via television, including direct-response television
advertising (or infomercials) and home shopping channels.
Discount | ‫ﺍﻟﺨﺼﻢ‬
The act of obtaining a desired object from someone by offering
something in return.
Exclusive distribution | ‫ﺍﻟﺘﻮﺯﻳﻊ ﺍﻟﺤﺼﺮﻱ‬
A straight reduction in price on purchases during a stated period of time.
Giving a limited number of dealers the exclusive right to distribute the
company’s products in their territories.
Discount store | ‫ﻣﻌﺮﺽ ﻟﻠﺴﻠﻊ ﺍﻟﻤﺨﻔﻀﺔ‬
Exclusive distributor | ‫ﺍﻟﻤﻮﺯﻉ ﺍﻟﺤﺼﺮﻱ‬
A retail operation that sells standard merchandise at lower prices by
accepting lower margins and selling at higher volume.
A representative who buys, stocks, and sells the products ofaforeign
company to a retailer and wholesaler in his or her territory.
Disintermediation | ‫ﺣﺬﻑ ﺍﻟﻮﺳﻄﺎء‬
Execution style | ‫ﺃﺳﻠﻮﺏ ﺍﻟﺘﻨﻔﻴﺬ‬
The cutting out of marketing channel intermediaries by product or
service producers, or the displacement of traditional resellers by
radical new types of intermediaries.
The approach, style, tone, words, and format used for executing an
advertising message.
Dissonance-reducing buying behavior |
The drop in the average per-unit production cost that comes with
accumulated production experience.
‫ﺳﻠﻮﻙ ﺍﻟﻤﺸﺘﺮﻱ ﻋﻨﺪ ﺷﺮﺍء ﻣﻨﺘﺞ ﺑﺎﻫﻆ ﺍﻟﺜﻤﻦ ﻣﻊ ﻭﺟﻮﺩ ﺑﻀﻌﺔ ﺍﺧﺘﻼﻓﺎﺕ ﺑﻴﻦ ﺍﻟﻤﺎﺭﻛﺎﺕ‬
Consumer buying behaviour in situations characterized by high
involvement but few perceived differences among brands.
Distribution center | ‫ﻣﺮﻛﺰ ﺗﻮﺯﻳﻊ‬
A large, highly automated warehouse designed to receive goods from
various plants and suppliers, take orders, fill them efficiently, and
deliver goods to customers as quickly as possible.
Diversification | ‫ﺍﻟﺘﻨﻮﻳﻊ‬
A strategy for company growth through starting up or acquiring
businesses outside the company’s current products and markets.
Experience curve (learning curve) | (‫ﻣﻨﺤﻨﻰ ﺍﻟﺨﺒﺮﺓ )ﻣﻨﺤﻨﻰ ﺍﻟﺘﻌﻠﻢ‬
Experimental research | ‫ﺍﻟﺒﺤﺚ ﺍﻟﺘﺠﺮﻳﺒﻲ‬
Gathering primary data by selecting matched groups of subjects,
giving them different treatments, controlling related factors, and
checking for differences in group responses.
Exploratory research | ‫ﺍﻟﺒﺤﺚ ﺍﻻﺳﺘﻜﺸﺎﻓﻲ‬
Marketing research to gather preliminary information that will help
define problems and suggest hypotheses.
Exporting | ‫ﺍﻟﺘﺼﺪﻳﺮ‬
Downsizing | ‫ﺍﻟﺘﻘﻠﻴﺺ‬
Entering a foreign market by selling goods produced in the company’s
home country, often with little modification.
Reducing the business portfolio by eliminating products of business units
that are not profitable or that no longer fit the company’s overall strategy.
Factory outlet | ‫ﻣﻨﺎﻓﺬ ﺑﻴﻊ ﺍﻟﻤﺼﻨﻊ‬
Dynamic pricing | ‫ﺍﻟﺘﺴﻌﻴﺮ ﺍﻟﺪﻳﻨﺎﻣﻴﻜﻲ‬
Adjusting prices continually to meet the characteristics and needs of
individual customers and situations.
Economic community | ‫ﺍﻟﻤﺠﺘﻤﻊ ﺍﻻﻗﺘﺼﺎﺩﻱ‬
A group of nations organized to work toward common goals in the
regulation of international trade.
An off-price retailing operation that is owned and operated by a
manufacturer and that normally carries the manufacturer’s surplus,
discontinued, or irregular goods.
Fad | ‫ﺯﻳﺎﺩﺓ ﻣﺆﻗﺘﺔ ﻓﻰ ﺍﻟﻤﺒﻴﻌﺎﺕ ﻧﺘﻴﺠﺔ ﻟﺸﻬﺮﺓ ﻣﻨﺘﺞ ﺃﻭ ﻋﻼﻣﺔ ﺗﺠﺎﺭﻳﺔ ﻣﺎ‬
A temporary period of unusually high sales driven by consumer
enthusiasm and immediate product or brand popularity.
Fashion | ‫ﻣﻮﺿﺔ‬
Economic environment | ‫ﺍﻟﻤﻨﺎﺥ ﺍﻻﻗﺘﺼﺎﺩﻱ‬
A currently accepted or popular style in a given field.
Factors that affect consumer buying power and spending patterns.
Fixed costs (overhead) | (‫ﺍﻟﺘﻜﺎﻟﻴﻒ ﺍﻟﺜﺎﺑﺘﺔ )ﺍﻟﻤﺒﺎﺷﺮﺓ‬
Engel’s laws | ‫ﻗﻮﺍﻧﻴﻦ ﺍﻧﺠﻞ‬
Costs that do not vary with production or sales level.
Differences noted over a century ago by Ernst Engel in how
people shift their spending across food, housing, transportation,
health care, and other goods and services categories as family
income rises.
FOB-origin pricing | ‫ﺍﻟﺘﺴﻌﻴﺮ ﻋﻠﻰ ﺃﺳﺎﺱ ﻣﻜﺎﻥ ﺍﻟﺘﺴﻠﻴﻢ‬
Environmental sustainability | ‫ﺍﻻﺳﺘﺪﺍﻣﺔ ﺍﻟﺒﻴﺌﻴﺔ‬
A management approach that involves developing strategies that both
sustain the environment and produce profits for the company.
Environmental sustainability | ‫ﺍﻻﺳﺘﺪﺍﻣﺔ ﺍﻟﺒﻴﺌﻴﺔ‬
A management approach that involves developing strategies that both
sustain the environment and produce profits for the company.
Z05_KOTL5681_01_SE_GLOS.indd G4
A geographical pricing strategy in which goods are placed free on
board a carrier; the customer pays the freight from the factory to the
destination.
Focus group interviewing |
‫ﻣﻘﺎﺑﻠﺔ ﺗﻀﻢ ﻣﺠﻤﻮﻋﺔ ﻣﻦ ﺍﻷﻓﺮﺍﺩ ﺗﺮﻛﺰ ﻋﻠﻰ ﻣﻮﺿﻮﻉ ﻣﺎ ﺑﺸﻜﻞ ﻣﻌﻤﻖ‬
Personal interviewing that involves inviting six to ten people to
gather for a few hours with a trained interviewer to talk about a
product, service, or organization. The interviewer “focuses” the group
discussion on important issues.
8/31/11 10:31 PM
G5
Glossary
Follow-up | ‫ﺍﻟﻤﺘﺎﺑﻌﺔ‬
Hypermarket | ‫ﻣﺤﻞ ﺗﺠﺎﺭﻯ ﺿﺨﻢ‬
The last step in the selling process in which the salesperson follows up
after the sale to ensure customer satisfaction and repeat business.
Very large stores traditionally aimed at meeting consumers’ total
needs for routinely purchased food and nonfood items. Includes
combined supermarket and discount stores, and category killers,
which carry a deep assortment in a particular category and have a
knowledgeable staff.
Franchise | ‫ﺍﻻﻣﺘﻴﺎﺯ‬
A contractual association between a manufacturer, wholesaler, or
service organization (a franchiser) and independent businesspeople
(franchisees) who buy the right to own and operate one or more units
in the franchise system.
Idea generation | ‫ﺗﻮﻟﻴﺪ ﺍﻷﻓﻜﺎﺭ‬
The systematic search for new-product ideas.
Franchise organization | ‫ﻣﻨﻈﻤﺔ ﺍﻻﻣﺘﻴﺎﺯ‬
Idea screening | ‫ﺗﺼﻔﻴﺔ ﺍﻷﻓﻜﺎﺭ‬
A contractual vertical marketing system in which a channel member, called
a franchiser, links several stages in the production-distribution process.
Screening new-product ideas in order to spot good ideas and drop
poor ones as soon as possible.
Freight-absorption pricing | ‫ﺍﻟﺘﺴﻌﻴﺮ ﻋﻠﻰ ﺃﺳﺎﺱ ﺗﺤﻤﻞ ﻗﻴﻤﺔ ﺍﻟﺸﺤﻦ‬
Income segmentation | ‫ﺗﻘﺴﻴﻢ ﺍﻟﺪﺧﻞ‬
A geographical pricing strategy in which the seller absorbs all or part
of the freight charges in order to get the desired business.
Dividing a market into different income groups.
Gatekeepers | ‫ﻣﻨﺴﻘﻲ ﺗﺪﺍﻭﻝ ﺍﻟﻤﻌﻠﻮﻣﺎﺕ‬
An off-price retailer that is either independently owned and run or is a
division of a larger retail corporation.
People in the organization’s buying center who control the flow of
information to others.
Independent off-price retailer | ‫ﺑﺎﺋﻊ ﺗﺠﺰﺋﺔ ﻣﺴﺘﻘﻞ ﻟﻠﺴﻠﻊ ﺍﻟﻤﺨﻔﻀﺔ‬
Indirect marketing channel | ‫ﻗﻨﻮﺍﺕ ﺍﻟﺘﺴﻮﻳﻖ ﻏﻴﺮ ﺍﻟﻤﺒﺎﺷﺮﺓ‬
Gender segmentation | ‫ﺍﻟﺘﺠﺰﺋﺔ ﻋﻠﻰ ﺃﺳﺎﺱ ﺍﻟﺠﻨﺲ‬
Channel containing one or more intermediary levels.
Dividing a market into different groups based on gender.
Individual marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻔﺮﺩﻱ‬
General need description | ‫ﺍﻟﻮﺻﻒ ﺍﻟﻌﺎﻡ ﻟﻠﺤﺎﺟﺎﺕ‬
The stage in the business buying process in which the company
describes the general characteristics and quantity of a needed item.
Tailoring products and marketing programs to the needs and
preferences of individual customers—also labeled “one-to-one
marketing,” “customized marketing,” and “markets-of-one marketing.”
Generation X | ‫ﺟﻴﻞ ﺇﻛﺲ‬
Industrial product | ‫ﻣﻨﺘﺞ ﺻﻨﺎﻋﻲ‬
The 45 million people born between 1965 and 1976 in the “birth
dearth” following the baby boom.
A product bought by individuals and organizations for further
processing or for use in conducting a business.
Geographic pricing | ‫ﺍﻟﺘﺴﻌﻴﺮ ﺍﻟﺠﻐﺮﺍﻓﻲ‬
Influencers | ‫ﺃﺻﺤﺎﺏ ﺍﻟﺘﺄﺛﻴﺮ‬
Setting prices for customers located in different parts of the country or
world.
People in an organization’s buying center who affect the buying
decision; they often help define specifications and also provide
information for evaluating alternatives.
Geographic segmentation | ‫ﺍﻟﺘﺠﺰﺋﺔ ﺍﻟﺠﻐﺮﺍﻓﻴﺔ‬
Dividing a market into different geographical units such as nations,
states, regions, counties, cities, or neighborhoods.
Global firm | ‫ﺷﺮﻛﺔ ﺩﻭﻟﻴﺔ‬
A firm that, by operating in more than one country, gains R&D,
production, marketing, and financial advantages in its costs and
reputation that are not available to purely domestic competitors.
Good-value pricing | ‫ﺍﻟﺘﺴﻌﻴﺮ ﺍﻟﻤﺒﻨﻲ ﻋﻠﻰ ﻗﻴﻤﺔ ﺍﻟﻤﻨﺘﺞ‬
Offering just the right combination of quality and good service at a
fair price.
Government market | ‫ﺍﻟﺴﻮﻕ ﺍﻟﺤﻜﻮﻣﻲ‬
Governmental units— federal, state, and local—that purchase or rent
goods and services for carrying out the main functions of government.
Group | ‫ﻓﺌﺔ‬
Two or more people who interact to accomplish individual or mutual
goals.
Growth stage | ‫ﻣﺮﺣﻠﺔ ﺍﻟﻨﻤﻮ‬
The product life-cycle stage in which a product’s sales start climbing
quickly.
Information search | ‫ﺍﻟﺒﺤﺚ ﻋﻦ ﺍﻟﻤﻌﻠﻮﻣﺎﺕ‬
The stage of the buyer decision process in which the consumer is
aroused to search for more information; the consumer may simply have
heightened attention or may go into an active information search.
Innovative marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻤﺒﺘﻜﺮ‬
A principle of sustainable marketing that requires that a company seek
real product and marketing improvements.
Inside sales force | ‫ﻗﻮﻯ ﺍﻟﺒﻴﻊ ﺍﻟﺪﺍﺧﻠﻴﺔ‬
Inside salespeople who conduct business from their offices via
telephone, the Internet, or visits from prospective buyers.
Institutional market | ‫ﺍﻟﺴﻮﻕ ﺍﻟﻤﺆﺳﺴﻲ‬
Schools, hospitals, nursing homes, prisons, and other institutions that
provide goods and services to people in their care.
Integrated logistics management | ‫ﺍﻹﺩﺍﺭﺓ ﺍﻟﻤﺘﻜﺎﻣﻠﺔ ﻟﻺﻣﺪﺍﺩﺍﺕ‬
The logistics concept that emphasizes teamwork, both inside the
company and among all the marketing channel organizations, to
maximize the performance of the entire distribution system.
Integrated marketing communications (IMC) |
‫ﺍﻻﺗﺼﺎﻻﺕ ﺍﻟﺘﺴﻮﻳﻘﻴﺔ ﺍﻟﻤﺘﻜﺎﻣﻠﺔ‬
Growth-share matrix | ‫ﻣﺼﻔﻮﻓﺔ ﺣﺼﺔ ﺍﻟﻨﻤﻮ‬
A portfolio-planning method that evaluates a company’s strategic
business units in terms of its market growth rate and relative market
share. SBUs are classified as stars, cash cows, question marks, or dogs.
Carefully integrating and coordinating the company’s many
communications channels to deliver a clear, consistent, and
compelling message about the organization and its products.
Habitual buying behavior | ‫ﺍﻟﺴﻠﻮﻙ ﺍﻟﻤﻌﺘﺎﺩ ﻓﻲ ﺍﻟﺸﺮﺍء‬
Intensive distribution | ‫ﺍﻟﺘﻮﺯﻳﻊ ﺍﻟﻤﻜﺘﻒ‬
Consumer buying behavior in situations characterized by low-consumer
involvement and few significantly perceived brand differences.
Stocking the product in as many outlets as possible.
Handling objections | ‫ﻣﻌﺎﻟﺠﺔ ﺍﻻﻋﺘﺮﺍﺽ ﻋﻠﻰ ﺍﻟﺸﺮﺍء‬
Training service employees in the fine art of interacting with
customers to satisfy their needs.
The step in the selling process in which the salesperson seeks out,
clarifies, and overcomes customer objections to buying.
Horizontal marketing system | ‫ﻧﻈﺎﻡ ﺍﻟﺘﺴﻮﻳﻖ ﺍﻷﻓﻘﻲ‬
A channel arrangement in which two or more companies at one level
join together to follow a new marketing opportunity.
Z05_KOTL5681_01_SE_GLOS.indd G5
Interactive marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﺘﻔﺎﻋﻠﻲ‬
Intermarket segmentation |
‫ﺗﻘﺴﻴﻢ ﺍﻟﻤﺴﺘﻬﻠﻜﻴﻦ ﻃﺒﻘﺎ ﻟﺘﺸﺎﺑﻪ ﻣﺘﻄﻠﺒﺎﺗﻬﻢ ﺍﻟﺸﺮﺍﺋﻴﺔ ﺭﻏﻢ ﺍﺧﺘﻼﻑ ﺑﻼﺩﻫﻢ‬
Forming segments of consumers who have similar needs and buying
behavior even though they are located in different countries.
8/31/11 10:31 PM
G6
Glossary
Intermodal transportation | ‫ﺍﻟﻨﻘﻞ ﻣﺘﻌﺪﺩ ﺍﻟﻮﺳﺎﺋﻂ‬
Market leader | ‫ﺷﺮﻛﺔ ﺭﺍﺋﺪﺓ ﻓﻲ ﺍﻟﺴﻮﻕ‬
Combining two or more modes of transportation.
The firm in an industry with the largest market share.
Internal databases | ‫ﻗﻮﺍﻋﺪ ﺍﻟﺒﻴﺎﻧﺎﺕ ﺍﻟﺪﺍﺧﻠﻴﺔ‬
Market nicher | ‫ﺷﺮﻛﺔ ﻣﺘﺨﺼﺼﺔ ﺗﻌﻤﻞ ﻓﻲ ﺳﻮﻕ ﻻ ﻳﺘﻨﺎﻓﺲ ﻓﻴﻪ ﺍﻟﻜﺜﻴﺮ‬
Electronic collections of consumer and market information obtained
from data sources within the company network.
A firm that serves small segments that the other firms in an industry
overlook or ignore.
Internal marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﺪﺍﺧﻠﻲ‬
Market offering | ‫ﺍﻟﻄﺮﺡ ﻓﻲ ﺍﻷﺳﻮﺍﻕ‬
Orienting and motivating customer-contact employees and
supporting service people to work as a team to provide customer
satisfaction.
Some combination of products, services, information, or experiences
offered to a market to satisfy a need or want.
Introduction stage | ‫ﻣﺮﺣﻠﺔ ﺗﻘﺪﻳﻢ ﺍﻟﻤﻨﺘﺞ ﺇﻟﻰ ﺍﻟﺴﻮﻕ‬
A strategy for company growth by increasing sales of current products
to current market segments without changing the product.
The product life-cycle stage in which the new product is first
distributed and made available for purchase.
Joint ownership | ‫ﻣﻠﻜﻴﺔ ﻣﺸﺘﺮﻛﺔ‬
A joint venture in which a company joins investors in a foreign market
to create a local business in which the company shares joint ownership
and control.
Joint venturing | ‫ﺍﻟﻤﺸﺮﻭﻉ ﺍﻟﻤﺸﺘﺮﻙ‬
Entering foreign markets by joining with foreign companies to
produce or market a product or service.
Learning | ‫ﺍﻟﺘﻌﻠﻢ‬
Market penetration | ‫ﺍﻟﻨﻔﺎﺫ ﺇﻟﻰ ﺍﻷﺳﻮﺍﻕ‬
Market segment | ‫ﺍﻟﺸﺮﻳﺤﺔ ﺍﻟﺴﻮﻗﻴﺔ‬
A group of consumers who respond in a similar way to a given set of
marketing efforts.
Market segmentation | ‫ﺗﺠﺰﺋﺔ ﺍﻟﺴﻮﻕ‬
Dividing a market into distinct groups of buyers who have different
needs, characteristics, or behaviors, and who might require separate
products or marketing programs.
Market targeting (targeting) | (‫ﺍﺳﺘﻬﺪﺍﻑ ﺍﻟﺴﻮﻕ )ﺃﻭ ﺍﻻﺳﺘﻬﺪﺍﻑ‬
Changes in an individual’s behavior arising from experience.
The process of evaluating each market segment’s attractiveness and
selecting one or more segments to enter.
Licensing | ‫ﺍﻟﺘﺮﺧﻴﺺ‬
Market-centered company |
A method of entering a foreign market in which the company enters
into an agreement with a licensee in the foreign market, offering the
right to use a manufacturing process, trademark, patent, trade secret,
or other item of value for a fee or royalty.
A company that pays balanced attention to both customers and
competitors in designing its marketing strategies.
Lifestyle | ‫ﻧﻤﻂ ﺍﻟﻤﻌﻴﺸﺔ‬
‫ﺍﻟﺸﺮﻛﺔ ﺍﻟﺘﻲ ﺗﻌﻴﻦ ﺍﻫﺘﻤﺎﻣﺎ ﻣﺘﺴﺎﻭﻳﺎ ﻟﻌﻤﻼﺋﻬﺎ ﻭﻣﻨﺎﻓﺴﻴﻬﺎ‬
Marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ‬
A person’s pattern of living as expressed in his or her activities,
interests, and opinions.
The process by which companies create value for customers and
build strong customer relationships in order to capture value from
customers in return.
Line extension | ‫ﺗﻮﺳﻴﻊ ﺧﻂ ﺍﻹﻧﺘﺎﺝ‬
Marketing channel (distribution channel) |
Extending an existing brand name to new forms, colors, sizes,
ingredients, or flavors of an existing product category.
Local agents | ‫ﻭﻛﻼء ﻣﺤﻠﻴﻴﻦ‬
(‫ﻗﻨﺎﺓ ﺍﻟﺘﺴﻮﻳﻖ )ﻗﺘﺎﺓ ﺍﻟﺘﻮﺯﻳﻊ‬
A set of interdependent organizations that help make a product or service
available for use or consumption by the consumer or business user.
Act as brokers between the local buyer and the foreign company
Marketing channel design | ‫ﺗﺼﻤﻴﻢ ﻗﻨﺎﺓ ﺗﺴﻮﻳﻘﻴﺔ‬
Local marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻤﺤﻠﻲ‬
Designing effective marketing channels by analyzing consumer needs,
setting channel objectives, identifying major channel alternatives, and
evaluating them.
Tailoring brands and promotions to the needs and wants of local
customer groups—cities, neighborhoods, and even specific stores.
Macroenvironment | ‫ﺍﻟﺒﻴﺌﺔ ﺍﻟﻜﻠﻴﺔ‬
Marketing channel management | ‫ﺇﺩﺍﺭﺓ ﻗﻨﻮﺍﺕ ﺍﻟﺘﺴﻮﻳﻖ‬
The larger societal forces that affect the microenvironment—
demographic, economic, natural, technological, political, and cultural
forces.
Selecting, managing, and motivating individual channel members and
evaluating their performance over time.
Marketing concept | ‫ﻣﻔﻬﻮﻡ ﺍﻟﺘﺴﻮﻳﻖ‬
Madison & Vine | ‫ﻣﺎﺩﻳﺴﻮﻥ ﻭﻓﻴﻦ‬
The marketing management philosophy that holds that achieving
organizational goals depends on knowing the needs and wants of
target markets and delivering the desired satisfactions better than
competitors do.
A term that has come to represent the merging of advertising and
entertainment in an effort to break through the clutter and create new
avenues for reaching consumers with more engaging messages.
Management contracting | ‫ﺍﻟﺘﻌﺎﻗﺪ ﺍﻹﺩﺍﺭﻱ‬
A joint venture in which the domestic firm supplies the management
knowhow to a foreign company that supplies the capital; the domestic
firm exports management services rather than products.
Market | ‫ﺍﻟﺴﻮﻕ‬
The set of all actual and potential buyers of a product or service.
Market challenger | ‫ﻣﻨﺎﻓﺲ ﻗﻮﻱ ﻓﻰ ﺍﻟﺴﻮﻕ‬
A runner-up firm that is fighting hard to increase its market share in
an industry.
Market development | ‫ﺗﻨﻤﻴﺔ ﺍﻷﺳﻮﺍﻕ‬
A strategy for company growth by identifying and developing new
market segments for current company products.
Market follower | ‫ﺷﺮﻛﺔ ﺗﺎﺑﻌﺔ ﻓﻲ ﺍﻟﺴﻮﻕ‬
A runner-up firm that wants to hold its share in an industry without
rocking the boat.
Z05_KOTL5681_01_SE_GLOS.indd G6
Marketing control | ‫ﺍﻟﺮﻗﺎﺑﺔ ﺍﻟﺘﺴﻮﻳﻘﻴﺔ‬
The process of measuring and evaluating the results of marketing
strategies and plans and taking corrective action to ensure that
objectives are achieved.
Marketing environment | ‫ﺍﻟﻤﻨﺎﺥ ﺍﻟﺘﺴﻮﻳﻘﻲ‬
The actors and forces outside marketing that affect marketing
management’s ability to build and maintain successful relationships
with target customers.
Marketing implementation | ‫ﺍﻟﺘﻨﻔﻴﺬ ﺍﻟﺘﺴﻮﻳﻘﻲ‬
The process that turns marketing strategies and plans into
marketing actions in order to accomplish strategic marketing
objectives.
Marketing information system (MIS) | ‫ﻧﻈﺎﻡ ﺍﻟﻤﻌﻠﻮﻣﺎﺕ ﺍﻟﺘﺴﻮﻳﻘﻴﺔ‬
People and procedures for assessing information needs, developing the
needed information, and helping decision makers to use the information
to generate and validate actionable customer and market insights.
8/31/11 10:31 PM
G7
Glossary
Marketing intelligence | ‫ﺍﻻﺳﺘﺨﺒﺎﺭﺍﺕ ﺍﻟﺘﺴﻮﻳﻘﻴﺔ‬
Mission statement | ‫ﻣﻬﻤﺔ ﺍﻟﺸﺮﻛﺔ‬
The systematic collection and analysis of publicly available
information about consumers, competitors, and developments in the
marketing environment.
A statement of the organization’s purpose—what it wants to
accomplish in the larger environment.
Marketing intermediaries | ‫ﺍﻟﻮﺳﻄﺎء ﺍﻟﺘﺴﻮﻳﻘﻴﻴﻦ‬
A business buying situation in which the buyer wants to modify
product specifications, prices, terms, or suppliers.
Firms that help the company to promote, sell, and distribute its goods
to final buyers.
Marketing logistics (physical distribution) |
‫ﺍﻟﺘﻮﺯﻳﻊ ﺍﻟﻤﺎﺩﻱ‬-‫ﺍﻹﻣﺪﺍﺩﺍﺕ ﺍﻟﺘﺴﻮﻳﻘﻴﺔ‬
Modified rebuy | ‫ﺇﻋﺎﺩﺓ ﺍﻟﺸﺮﺍء ﺑﻌﺪ ﺗﻌﺪﻳﻞ ﺍﻟﻤﻨﺘﺞ‬
Motive (drive) | (‫ﺣﺎﻓﺰ )ﺩﺍﻓﻊ‬
A need that is sufficiently pressing to direct the person to seek
satisfaction of the need.
Planning, implementing, and controlling the physical flow of
materials, final goods, and related information from points of origin to
points of consumption to meet customer requirements at a profit.
Multichannel distribution system | ‫ﻧﻈﺎﻡ ﺍﻟﺘﻮﺯﻳﻊ ﻣﺘﻌﺪﺩ ﺍﻟﻘﻨﻮﺍﺕ‬
Marketing management | ‫ﺇﺩﺍﺭﺓ ﺍﻟﺘﺴﻮﻳﻖ‬
Natural environment | ‫ﺍﻟﻌﻮﺍﻣﻞ ﺍﻟﻄﺒﻴﻌﻴﺔ‬
The art and science of choosing target markets and building profitable
relationships with them.
Marketing mix | ‫ﺍﻟﻤﺰﻳﺞ ﺍﻟﺘﺴﻮﻳﻘﻲ‬
The set of controllable tactical marketing tools—product, price, place,
and promotion—that the firm blends to produce the response it wants
in the target market.
Marketing myopia | ‫ﻗﺼﺮ ﺍﻟﻨﻈﺮ ﺍﻟﺘﺴﻮﻳﻘﻲ‬
The mistake of paying more attention to the specific products a
company offers than to the benefits and experiences produced by
these products.
Marketing research | ‫ﺍﻟﺒﺤﺚ ﺍﻟﺘﺴﻮﻳﻘﻲ‬
The systematic design, collection, analysis, and reporting of data
relevant to a specific marketing situation facing an organization.
Marketing strategy | ‫ﺍﺳﺘﺮﺍﺗﻴﺠﻴﻪ ﺍﻟﺘﺴﻮﻳﻖ‬
The marketing logic by which the business unit hopes to create
customer value and achieve profitable customer relationships.
Marketing strategy development | ‫ﺗﻄﻮﻳﺮ ﺍﺳﺘﺮﺍﺗﻴﺠﻴﺎﺕ ﺍﻟﺘﺴﻮﻳﻖ‬
Designing an initial marketing strategy for a new product based on
the product concept.
A distribution system in which a single firm sets up two or more
marketing channels to reach one or more customer segments.
Natural resources that are needed as inputs by marketers or that are
affected by marketing activities.
Need recognition | ‫ﺍﻟﺸﻌﻮﺭ ﺑﺎﻟﺤﺎﺟﺔ‬
The first stage of the buyer decision process, in which the consumer
recognizes a problem or need.
Needs | ‫ﺍﻻﺣﺘﻴﺎﺟﺎﺕ‬
States of felt deprivation
New product | ‫ﻣﻨﺘﺞ ﺟﺪﻳﺪ‬
A good, service, or idea that is perceived by some potential customers
as new.
New task | ‫ﻣﻬﻤﺔ ﺟﺪﻳﺪﺓ‬
A business buying situation in which the buyer purchases a product or
service for the first time.
New-product development | ‫ﺗﻄﻮﻳﺮ ﺍﻟﻤﻨﺘﺞ ﺍﻟﺠﺪﻳﺪ‬
The development of original products, product improvements,
product modifications, and new brands through the firm’s own
product development efforts.
Nonpersonal communication channels | ‫ﻗﻨﻮﺍﺕ ﺍﻻﺗﺼﺎﻝ ﻏﻴﺮ ﺍﻟﺸﺨﺼﻴﺔ‬
Marketing Web site | ‫ﻣﻮﻗﻊ ﺍﻟﻜﺘﺮﻭﻧﻲ ﻟﻠﺘﺴﻮﻳﻖ‬
Media that carry messages without personal contact or feedback,
including major media, atmospheres, and events.
A website that engages consumers in interactions that will move them
closer to a direct purchase or other marketing outcome.
Objective-and-task method | ‫ﻃﺮﻳﻘﺔ ﺍﻟﻬﺪﻑ ﻭﺍﻟﻤﻬﻤﺔ‬
Market-penetration pricing |
‫ﻭﺿﻊ ﺳﻌﺮ ﻣﻨﺨﻔﺾ ﻟﻤﻨﺘﺞ ﺟﺪﻳﺪ ﺑﻐﻴﺔ ﺟﺬﺏ ﻋﺪﺩ ﻛﺒﻴﺮ ﻣﻦ ﺍﻟﻤﺸﺘﺮﻛﻴﻦ ﻭ ﺍﻟﺤﺼﻮﻝ ﻋﻠﻰ‬
‫ﺣﺼﺔ ﻛﺒﻴﺮﺓ ﻣﻦ ﺍﻟﺴﻮﻕ‬
Setting a low price for a new product in order to attract a large
number of buyers and a large market share.
Market-skimming pricing |
‫ﻭﺿﻊ ﺳﻌﺮ ﺃﻋﻠﻰ ﻟﺰﺑﺎﺋﻦ ﻣﻌﻴﻴﻨﻴﻦ ﻳﺮﻏﺒﻮﻥ ﺑﺪﻓﻊ ﻗﻴﻤﺔ ﺃﻋﻠﻰ ﻣﻘﺎﺑﻞ ﺍﻟﺤﺼﻮﻝ ﻋﻠﻰ ﺍﻣﺘﻴﺎﺯ‬
‫ﺍﻟﺤﺼﻮﻝ ﻋﻠﻰ ﺍﻟﻤﻨﺘﺞ ﺃﻭﻻ‬
Developing the promotion budget by (1) defining specific
objectives; (2) determining the tasks that must be performed to
achieve these objectives; and (3) estimating the costs of performing
these tasks. The sum of these costs is the proposed promotion
budget.
Observational research | ‫ﺍﻟﺒﺤﺚ ﺍﻟﻘﺎﺋﻢ ﻋﻠﻰ ﺍﻟﻤﻼﺣﻈﺔ‬
Gathering primary data by observing relevant people, actions, and
situations.
Occasion segmentation | ‫ﺍﻟﺘﺠﺰﺋﺔ ﻋﻠﻰ ﺃﺳﺎﺱ ﺍﻟﻤﻨﺎﺳﺒﺎﺕ‬
Setting a high price for a new product to skim maximum revenues
layer by layer from the segments willing to pay the high price; the
company makes fewer but more profitable sales.
Dividing the market into groups according to occasions when buyers
get the idea to buy, actually make their purchase, or use the
Maturity stage | ‫ﻣﺮﺣﻠﺔ ﺍﻟﻨﻀﻮﺝ‬
The product life-cycle stage in which sales growth slows or
levels off.
Advertising that appears while consumers are surfing the Web,
including display ads, search-related ads, online classifieds, and other
forms.
Microenvironment | ‫ﺍﻟﺒﻴﺌﺔ ﺍﻟﺘﺴﻮﻳﻘﻴﺔ ﺍﻟﺠﺰﺋﻴﺔ‬
Online focus groups | ‫ﺇﻋﺪﺍﺩ ﻣﺠﻤﻮﻋﺎﺕ ﻧﻘﺎﺵ ﻣﺮﻛﺰﺓ ﻋﻠﻰ ﺍﻹﻧﺘﺮﻧﺖ‬
The actors close to the company that affect its ability to serve its
customers—the company, suppliers, marketing intermediaries,
customer markets, competitors, and publics.
Gathering a small group of people online with a trained moderator
to chat about a product, service, or organization and gain qualitative
insights about consumer attitudes and behavior.
Micromarketing | ‫ ﺗﺴﻮﻳﻖ ﺿﻴﻖ ﺍﻟﻨﻄﺎﻕ‬- ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﺠﺰﺋﻲ‬
Online marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻹﻟﻜﺘﺮﻭﻧﻲ‬
The practice of tailoring products and marketing programs to the
needs and wants of specific individuals and local customer groups—
includes local marketing and individual marketing.
Company efforts to market products and services and build customer
relationships over the Internet.
Millennials (Generation Y) | (‫ﺟﻴﻞ ﺍﻷﻟﻔﻴﺔ )ﺟﻴﻞ ﻭﺍﻱ‬
Collecting primary data online through Internet surveys, online
focus groups, Web-based experiments, or tracking consumers’ online
behavior.
The 83 million children of the baby boomers, born between 1977 and
2000.
Z05_KOTL5681_01_SE_GLOS.indd G7
Online advertising | ‫ﺍﻹﻋﻼﻥ ﻋﻠﻰ ﺍﻹﻧﺘﺮﻧﺖ‬
Online marketing research | ‫ﺑﺤﺚ ﺍﻟﺘﺴﻮﻳﻖ ﻋﺒﺮ ﺍﻹﻧﺘﺮﻧﺖ‬
8/31/11 10:31 PM
G8
Glossary
Online social networks | ‫ﺍﻟﺮﺑﻂ ﺍﻹﺟﺘﻤﺎﻋﻲ ﻋﺒﺮ ﺍﻹﻧﺘﺮﻧﺖ‬
Positioning statement | ‫ﺑﻴﺎﻥ ﺍﻟﺘﻤﺮﻛﺰ‬
Online social communities—blogs, social networking Web sites, or
even virtual worlds—where people socialize or exchange information
and opinions.
A statement that summarizes company or brand positioning— it takes
this form: To (target segment and need) our (brand) is (concept) that (pointof-difference).
Opinion leader | ‫ﻗﺎﺩﺓ ﺍﻟﺮﺃﻱ‬
Postpurchase behaviour | ‫ﺳﻠﻮﻙ ﻣﺎ ﺑﻌﺪ ﺍﻟﺸﺮﺍء‬
Person within a reference group who, because of special skills, knowledge,
personality, or other characteristics, exerts social influence on others.
The stage of the buyer decision process in which the consumers
take further action after purchase, based on their satisfaction or
dissatisfaction.
Optional-product pricing | ‫ﺗﺴﻌﻴﺮ ﺍﻟﻤﻨﺘﺠﺎﺕ ﻏﻴﺮ ﺍﻟﻀﺮﻭﺭﻳﺔ‬
The pricing of optional or accessory products along with a main
product.
Order-routine specification | ‫ﺍﻟﻤﻮﺍﺻﻔﺎﺕ ﺍﻟﺮﻭﺗﻴﻨﻴﺔ ﻟﻠﻄﻠﺒﻴﺎﺕ‬
Pre approach | ‫ﺍﻟﺘﺤﻀﻴﺮ ﺍﻟﻤﺴﺒﻖ‬
The step in the selling process in which the salesperson or company
identifies qualified potential customers.
The stage of the business buying process in which the buyer writes
the final order with the chosen supplier(s), listing the technical
specifications, quantity needed, expected time of delivery, return
policies, and warranties.
Presentation | ‫ﻋﺮﺽ ﺍﻟﻤﻨﺘﺞ‬
Outside sales force (field sales force) |
Price | ‫ﺍﻟﺴﻌﺮ‬
(‫ﻗﻮﻯ ﺍﻟﺒﻴﻊ ﺍﻟﺨﺎﺭﺟﻴﺔ )ﻣﻮﻇﻔﻮ ﺍﻟﺒﻴﻊ ﺍﻟﻤﻴﺪﺍﻧﻴﻴﻦ‬
Outside salespeople who travel to call on customers in the field.
Packaging | ‫ﺍﻟﺘﻌﺒﺌﺔ ﻭﺍﻟﺘﻐﻠﻴﻒ‬
The step in the selling process in which the salesperson tells the “value
story” to the buyer, showing how the company’s offer solves the
customer’s problems.
The amount of money charged for a product or service, or the sum of
the values that customers exchange for the benefits of having or using
the product or service.
The activities of designing and producing the container or wrapper for
a product.
Price elasticity | ‫ﺍﻟﻤﺮﻭﻧﺔ ﺍﻟﺴﻌﺮﻳﺔ‬
Partner relationship management | ‫ﺇﺩﺍﺭﺓ ﺍﻟﻌﻼﻗﺎﺕ ﻣﻊ ﺍﻟﺸﺮﻛﺎء‬
Primary data | ‫ﺑﻴﺎﻧﺎﺕ ﺃﻭﻟﻴﺔ‬
Working closely with partners in other company departments and
outside the company to jointly bring greater value to customers.
Information collected for the specific purpose at hand.
Percent-of-sales method |
The first stage of the business buying process in which someone in the
company recognizes a problem or need that can be met by acquiring a
good or a service.
‫ﺗﺤﺪﻳﺪ ﻣﻴﺰﺍﻧﻴﺔ ﺍﻟﺪﻋﺎﻳﺔ ﻋﻠﻰ ﺃﺳﺎﺱ ﻧﺴﺒﺔ ﻣﻌﻴﻨﺔ ﻣﻦ ﺍﻟﻤﺒﻴﻌﺎﺕ‬
Setting the promotion budget at a certain percentage of current or
forecasted sales or as a percentage of the unit sales price.
Perception | ‫ﺍﻹﺩﺍﺭﻙ‬
The process by which people select, organize, and interpret
information to form a meaningful picture of the world.
Performance review | ‫ﻣﺮﺍﺟﻌﺔ ﺍﻷﺩﺍء‬
The stage of the business buying process in which the buyer assesses
the performance of the supplier and decides to continue, modify, or
drop the arrangement.
Personal communication channels | ‫ﻗﻨﻮﺍﺕ ﺍﻻﺗﺼﺎﻝ ﺍﻟﺸﺨﺼﻲ‬
A measure of the sensitivity of demand to changes in price.
Problem recognition | ‫ﺇﺩﺭﺍﻙ ﺍﻟﻤﺸﻜﻠﺔ‬
Product | ‫ﺍﻟﻤﻨﺘﺞ‬
Anything that can be offered to a market for attention, acquisition,
use, or consumption that might satisfy a want or need.
Product adaptation | ‫ﻣﻮﺍﺋﻤﺔ ﺍﻟﻤﻨﺘﺞ‬
Adapting a product to meet local conditions or wants in foreign
markets.
Product bundle pricing | ‫ﺍﻟﺘﺴﻌﻴﺮ ﻋﻠﻰ ﺃﺳﺎﺱ ﺣﺰﻡ ﺍﻟﻤﻨﺘﺠﺎﺕ‬
Combining several products and offering the bundle at a reduced
price.
Channels through which two or more people communicate directly
with each other, including face to face, on the phone, through mail or
e-mail, or even through an Internet “chat.”
Product concept | ‫ﻣﻔﻬﻮﻡ ﺍﻟﻤﻨﺘﺞ‬
Personal selling | ‫ﺍﻟﺒﻴﻊ ﺍﻟﺸﺨﺼﻲ‬
Product development | ‫ﺗﻄﻮﻳﺮ ﺍﻟﻤﻨﺘﺞ ﻣﻦ ﻓﻜﺮﺓ ﺇﻟﻰ ﻣﻨﺘﺞ ﻓﻌﻠﻲ‬
Personal interactions between a customers and the firm’s sales
force for the purpose of making sales and building customer
relationships.
Developing the product concept into a physical product in order to
ensure that the product idea can be turned into a workable market
offering.
Personality | ‫ﺍﻟﺸﺨﺼﻴﺔ‬
Product development (p 44) | ‫ﺗﻄﻮﻳﺮ ﻣﻨﺘﺠﺎﺕ ﺍﻟﺸﺮﻛﺔ ﻟﺘﺴﺎﻫﻢ ﻓﻰ ﻧﻤﻮﻫﺎ‬
The unique psychological characteristics that lead to relatively
consistent and lasting responses to one’s own environment.
A strategy for company growth by offering modified or new products
to current market segments.
Pleasing products | ‫ﺍﻟﻤﻨﺘﺠﺎﺕ ﺍﻟﻤﻤﺘﻌﺔ‬
Product invention | ‫ﺍﺧﺘﺮﺍﻉ ﺍﻟﻤﻨﺘﺞ‬
Products that give high immediate satisfaction but may hurt
consumers in the long run.
Creating new products or services for foreign markets.
Political environment | ‫ﺍﻟﺒﻴﺌﺔ ﺍﻟﺴﻴﺎﺳﻴﺔ‬
Laws, government agencies, and pressure groups that influence and
limit various organizations and individuals in a given society.
The course of a product’s sales and profits over its lifetime. It involves
five distinct stages: product development, introduction, growth,
maturity, and decline.
Portfolio analysis | (‫ﺗﺤﻠﻴﻞ ﺍﻟﺤﻘﻴﺒﺔ ﺍﻻﺳﺘﺜﻤﺎﺭﻳﺔ )ﺍﻟﻌﻤﻞ ﺍﻟﻤﺆﺳﺴﻲ‬
Product line pricing | ‫ﺗﺴﻌﻴﺮ ﺧﻂ ﺍﻹﻧﺘﺎﺝ‬
The process by which management evaluates the products and
businesses that make up the company.
Setting the price steps between various products in a product line
based on cost differences between the products, customer evaluations
of different features, and competitors’ prices.
Positioning | ‫ﺍﻟﺘﻤﺮﻛﺰ‬
Arranging for a product to occupy a clear, distinctive, and desirable
place relative to competing products in the minds of target
consumers.
Z05_KOTL5681_01_SE_GLOS.indd G8
A detailed version of the new-product idea stated in meaningful
consumer terms.
Product life cycle | ‫ﺩﻭﺭﺓ ﺣﻴﺎﺓ ﺍﻟﻤﻨﺘﺞ‬
Product line | ‫ﺧﻂ ﺍﻹﻧﺘﺎﺝ‬
A group of products that are closely related because they function
in a similar manner, are sold to the same customer groups, are
8/31/11 10:31 PM
G9
Glossary
marketed through the same types of outlets, or fall within given
price ranges.
creating a demand vacuum that “pulls” the product through the
channel.
Product mix (product portfolio) |
Purchase decision | ‫ﻗﺮﺍﺭ ﺍﻟﺸﺮﺍء‬
(‫ﺍﻟﻤﻨﺘﺠﺎﺕ ﺍﻟﻤﺘﻨﻮﻋﺔ ﺍﻟﻤﻌﺮﻭﺿﺔ ﻟﻠﺒﻴﻊ )ﻗﺎﺋﻤﺔ ﺍﻟﻤﻨﺘﺠﺎﺕ‬
The set of all product lines and items that a particular seller offers for sale.
Product position | ‫ﻣﺮﻛﺰ ﺍﻟﻤﻨﺘﺞ‬
The buyer’s decision about which brand to purchase.
Push strategy | ‫ﺍﺳﺘﺮﺍﺗﻴﺠﻴﻪ ﺍﻟﺪﻓﻊ‬
The way the product is defined by consumers on important
attributes—the place the product occupies in consumers’ minds
relative to competing products.
A promotion strategy that calls for using the sales force and trade
promotion to push the product through channels. The producer
promotes the product to channel members who in turn promote it to
final consumers.
Product quality | ‫ﺟﻮﺩﺓ ﺍﻟﻤﻨﺘﺞ‬
Reference prices | ‫ﺍﻷﺳﻌﺎﺭ ﺍﻟﻤﺮﺟﻌﻴﺔ‬
The characteristics of a product or service that bear on its ability to
satisfy stated or implied customer needs.
Prices that buyers carry in their minds and refer to when they look at
a given product.
Product sales force structure |
Retailer | ‫ﺑﺎﺋﻊ ﺍﻟﺘﺠﺰﺋﺔ‬
‫ﻫﻴﻜﻞ ﻗﻮﻯ ﺑﻴﻊ ﺟﺰء ﻣﻦ ﻣﻨﺘﺠﺎﺕ ﺍﻟﺸﺮﻛﺔ ﻟﻠﻌﻤﻼء‬
A sales force organization under which salespeople specialize in
selling only a portion of the company’s products or lines
Product specification | ‫ﻣﻮﺍﺻﻔﺎﺕ ﺍﻟﻤﻨﺘﺞ‬
The stage of the business buying process in which the buying
organization decides on and specifies the best technical product
characteristics for a needed item.
Product/market expansion grid | ‫ﺍﻟﺴﻮﻕ‬/‫ﺷﺒﻜﺔ ﺗﻮﺳﻴﻊ ﺣﺠﻢ ﺍﻟﻤﻨﺘﺞ‬
A portfolio-planning tool for identifying company growth
opportunities through market penetration, market development,
product development, or diversification.
A business whose sales come primarily from retailing.
Retailing | ‫ﺍﻟﺒﻴﻊ ﺑﺎﻟﺘﺠﺰﺋﺔ‬
All activities involved in selling goods or services directly to final
consumers for their personal, non-business use.
Return on advertising investment | ‫ﺍﻟﻌﺎﺋﺪ ﻣﻦ ﺍﻻﺳﺘﺜﻤﺎﺭ ﺍﻹﻋﻼﻧﻲ‬
The net return on advertising investment divided by the costs of the
advertising investment.
Return on marketing investment | ‫ﻋﺎﺋﺪ ﺍﺳﺘﺜﻤﺎﺭ ﺍﻟﺘﺴﻮﻳﻖ‬
The net return from a marketing investment divided by the costs of
the marketing investment.
Production concept | ‫ﻣﻔﻬﻮﻡ ﺍﻹﻧﺘﺎﺝ‬
Sales force management | ‫ﺇﺩﺍﺭﺓ ﻗﻮﻯ ﺍﻟﺒﻴﻊ‬
The idea that consumers will favor products that are available and
highly affordable and that the organization should therefore focus on
improving production and distribution efficiency.
The analysis, planning, implementation, and control of sales force
activities. It includes designing sales force strategy and structure
and recruiting, selecting, training, supervising, compensating, and
evaluating the firm’s salespeople.
Promotion mix (marketing communications mix) |
(‫ﻣﺰﻳﺞ ﺗﺮﻭﻳﺠﻲ )ﻣﺰﻳﺞ ﺍﻻﺗﺼﺎﻻﺕ ﺍﻟﺘﺴﻮﻳﻘﻴﺔ‬
The specific blend of advertising, sales promotion, public relations,
personal selling, and direct-marketing tools that the company uses
to persuasively communicate customer value and build customer
relationships.
Promotional pricing | ‫ﺍﻟﺘﺴﻌﻴﺮ ﺍﻟﺘﺮﻭﻳﺠﻲ‬
Temporarily pricing products below the list price, and sometimes even
below cost, to increase short-run sales.
Proposal solicitation | ‫ﻃﻠﺐ ﺍﻟﻌﺮﻭﺽ‬
The stage of the business buying process in which the buyer invites
qualified suppliers to submit proposals.
Prospecting | ‫ﺍﻟﺒﺤﺚ ﻋﻦ ﺍﻟﻌﻤﻼء‬
The step in the selling process in which the salesperson or company
identifies qualified potential customers.
Psychographic segmentation | ‫ﺍﻟﺘﺠﺰﺋﺔ ﺍﻟﺴﻴﻜﻮﻏﺮﺍﻓﻴﺔ‬
Dividing a market into different groups based on social class, lifestyle,
or personality characteristics.
Psychological pricing | ‫ﺍﻟﺘﺴﻌﻴﺮ ﺍﻟﺴﻴﻜﻮﻟﻮﺟﻲ‬
Sales promotion | ‫ﺍﻟﺘﺮﻭﻳﺞ ﻟﻠﻤﺒﻴﻌﺎﺕ‬
Short-term incentives to encourage the purchase or sale of a product
or service.
Sales quota | ‫ﺣﺼﺔ ﺍﻟﻤﺒﻴﻌﺎﺕ‬
A standard that states the amount a salesperson should sell and how
sales should be divided among the company’s products.
Salesperson | ‫ﻣﻨﺪﻭﺏ ﻣﺒﻴﻌﺎﺕ‬
An individual representing a company to customers by
performing one or more of the following activities: prospecting,
communicating, selling, servicing, information gathering, and
relationship building.
Salutary products |
(‫ ﻭﻟﻜﻨﻬﺎ ﻣﻔﻴﺪﺓ ﻟﻬﻢ ﻋﻠﻰ ﺍﻟﻤﺪﻯ ﺍﻟﺒﻌﻴﺪ‬, ‫ﺍﻟﻤﻨﺘﺠﺎﺕ ﺍﻟﻤﻔﻴﺪﺓ )ﻣﻨﺘﺠﺎﺕ ﺿﺌﻴﻠﻪ ﺍﻟﺠﺎﺫﺑﻴﺔ ﺑﺎﻟﻨﺴﺒﺔ ﻟﻠﻌﻤﻼء‬
Products that have low appeal but may benefit consumers in the long
run.
Sample | ‫ﻋﻴﻨﺔ‬
A segment of the population selected for marketing research to
represent the population as a whole.
A pricing approach that considers the psychology of prices and not
simply the economics; the price is used to say something about the
product.
Secondary data | ‫ﺑﻴﺎﻧﺎﺕ ﺛﺎﻧﻮﻳﺔ‬
Public | ‫ﺍﻟﺠﻤﻬﻮﺭ‬
Segmented pricing | ‫ﺍﻟﺘﺴﻌﻴﺮ ﺍﻟﻤﺠﺰﺉ‬
Any group that has an actual or potential interest in or impact on an
organization’s ability to achieve its objectives.
Selling a product or service at two or more prices, where the difference
in prices is not based on differences in costs.
Public relations | ‫ﺍﻟﻌﻼﻗﺎﺕ ﺍﻟﻌﺎﻣﺔ‬
Selective distribution | ‫ﺍﻟﺘﻮﺯﻳﻊ ﺍﻻﻧﺘﻘﺎﺋﻲ‬
Building good relations with the company’s various publics by
obtaining favorable publicity, building up a good corporate image,
and handling or heading off unfavorable rumors, stories, and events.
The use of more than one, but fewer than all, of the intermediaries
who are willing to carry the company’s products.
Pull strategy | ‫ﺍﺳﺘﺮﺍﺗﻴﺠﻴﻪ ﺍﻟﺴﺤﺐ‬
A promotion strategy that calls for spending a lot on advertising and
consumer promotion to induce final consumers to buy the product,
Z05_KOTL5681_01_SE_GLOS.indd G9
Information that already exists somewhere, having been collected for
another purpose.
Selling concept | ‫ﻣﻔﻬﻮﻡ ﺍﻟﺒﻴﻊ‬
The idea that that consumers will not buy enough of the firm’s
products unless it undertakes a large-scale selling and promotion
effort.
8/31/11 10:31 PM
G10
Glossary
Selling process | ‫ﻋﻤﻠﻴﺔ ﺍﻟﺒﻴﻊ‬
Specialty store | ‫ﻣﺘﺠﺮ ﺍﻟﺼﻨﺎﻋﺎﺕ ﺍﻟﻤﺘﺨﺼﺼﺔ‬
The steps that the salesperson follows when selling, which include
prospecting and qualifying, preapproach, approach, presentation and
demonstration, handling objections, closing, and follow-up.
A retail store that carries a narrow product line with a deep assortment
within that line.
Sense-of-mission marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﻋﻠﻰ ﺃﺳﺎﺱ ﺍﻹﺣﺴﺎﺱ ﺑﺎﻟﻤﺴﺌﻮﻟﻴﺔ‬
An international marketing strategy for using basically the same
marketing strategy and mix in all the company’s international
markets.
A principle of sustainable marketing that holds that a company should
define its mission in broad social terms rather than narrow product
terms.
Standardized global marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻌﺎﻟﻤﻲ ﺍﻟﻤﻮﺣﺪ‬
Store brand (private brand) |
Service | ‫ﺍﻟﺨﺪﻣﺎﺕ‬
Any activity or benefit that one party can offer to another that is
essentially intangible and does not result in the ownership of anything.
Service inseparability | ‫ﺗﻼﺯﻡ ﺍﻟﺨﺪﻣﺎﺕ‬
A major characteristic of services—they are produced and consumed
at the same time and cannot be separated from their providers.
Service intangibility | ‫ﺍﻟﺨﺪﻣﺎﺕ ﻏﻴﺮ ﺍﻟﻤﻠﻤﻮﺳﺔ‬
A major characteristic of services—they cannot be seen, tasted, felt,
heard, or smelled before they are bought.
Service perishability | ‫ﻋﺪﻡ ﻗﺎﺑﻠﻴﺔ ﺗﺨﺰﻳﻦ ﺍﻟﺨﺪﻣﺔ‬
A major characteristic of services—they cannot be stored for later sale
or use.
Service retailer | (‫ﺑﺎﺋﻊ ﺗﺠﺰﺋﺔ )ﺧﺪﻣﺎﺕ‬
A retailer whose product line is actually a service, including hotels,
airlines, banks, colleges, and many others.
Service variability | ‫ﺗﻨﻮﻉ ﺍﻟﺨﺪﻣﺎﺕ‬
A major characteristic of services—their quality may vary greatly,
depending on who provides them and when, where, and how.
Service-profit chain | ‫ﺳﻠﺴﻠﺔ ﺭﺑﺤﻴﺔ ﺍﻟﺨﺪﻣﺔ‬
The chain that links service firm profits with employee and customer
satisfaction.
(‫ﻋﻼﻣﺔ ﺗﺠﺎﺭﻳﺔ ﻣﻤﻠﻮﻛﺔ ﻟﺘﺎﺟﺮ)ﻋﻼﻣﺔ ﺗﺠﺎﺭﻳﺔ ﺧﺎﺻﺔ‬
A brand created and owned by a reseller of a product or service
Straight product extension |
‫ﺗﻮﺳﻴﻊ ﻧﻄﺎﻕ ﺗﺴﻮﻳﻖ ﺍﻟﻤﻨﺘﺞ ﺩﻭﻥ ﺇﺣﺪﺍﺙ ﺍﻱ ﺗﻐﻴﻴﺮ ﻓﻴﻪ‬
Marketing a product in a foreign market without any change.
Straight rebuy | ‫ﺇﻋﺎﺩﺓ ﺍﻟﺸﺮﺍء ﺍﻟﻤﺒﺎﺷﺮ‬
A business buying situation in which the buyer routinely reorders
something without any modifications.
Strategic group | ‫ﺍﻟﻤﺠﻤﻮﻋﺔ ﺍﻹﺳﺘﺮﺍﺗﻴﺠﻴﺔ‬
A group of firms in an industry following the same or a similar strategy.
Strategic planning | ‫ﺍﻟﺘﺨﻄﻴﻂ ﺍﻻﺳﺘﺮﺍﺗﻴﺠﻲ‬
The process of developing and maintaining a strategic fit between
the organization’s goals and capabilities and its changing marketing
opportunities.
Style | ‫ﻧﻤﻂ‬
A basic and distinctive mode of expression.
Subculture | ‫ﺍﻟﺠﻤﺎﻋﺔ ﺍﻟﻔﺮﻋﻴﺔ‬
A group of people with shared value systems based on common life
experiences and situations.
Supermarket | ‫ﺍﻟﺴﻮﺑﺮ ﻣﺎﺭﻛﺖ‬
Share of customer | ‫ﺣﺼﺔ ﺍﻟﻌﻤﻴﻞ‬
A large, low-cost, low-margin, high-volume, self-service store that
carries a wide variety of grocery and household products.
The portion of the customer’s purchasing that a company gets in its
product categories.
Supplier development | ‫ﺗﻄﻮﻳﺮ ﺃﺩﺍء ﺍﻟﻤﻮﺭﺩﻳﻦ‬
Shopping center | ‫ﻣﺮﻛﺰ ﺗﺴﻮﻕ‬
A group of retail businesses planned, developed, owned, and
managed as a unit.
Shopping product | ‫ﻣﻨﺘﺞ ﺷﺮﺍﺋﻲ‬
A consumer product that the customer, in the process of selection and
purchase, usually compares on such bases as suitability, quality, price,
and style.
Systematic development of networks of supplier partners to ensure an
appropriate and dependable supply of products and materials for use
in making products or reselling them to others.
Supplier search | ‫ﺍﻟﺒﺤﺚ ﻋﻦ ﻣﻮﺭﱢﺩ‬
The stage of the business buying process in which the buyer tries to
find the best vendors.
Supplier selection | ‫ﺍﺧﺘﻴﺎﺭ ﺍﻟﻤﻮﺭﺩ‬
Social class | ‫ﻃﺒﻘﺔ ﺇﺟﺘﻤﺎﻋﻴﺔ‬
The stage of the business buying process in which the buyer reviews
proposals and selects a supplier or suppliers.
Relatively permanent and ordered divisions in a society whose
members share similar values, interests, and behaviors.
Supply chain management | ‫ﺇﺩﺍﺭﺓ ﺳﻠﺴﻠﺔ ﺍﻹﻣﺪﺍﺩ‬
Social marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻻﺟﺘﻤﺎﻋﻲ‬
The use of commercial marketing concepts and tools in programs
designed to influence individuals’ behavior to improve their wellbeing and that of society.
Societal marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻤﺠﺘﻤﻌﻲ‬
A principle of sustainable marketing that holds that a company should
make marketing decisions by considering consumers’ wants, the
company’s requirements, consumers’ longrun interests, and society’s
long-run interests.
Societal marketing concept | ‫ﻣﻔﻬﻮﻡ ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻤﺠﺘﻤﻌﻲ‬
Managing upstream and downstream value-added flows of materials,
final goods, and related information among suppliers, the company,
resellers, and final consumers.
Survey research | ‫ﺍﻟﺒﺤﺚ ﺍﻟﻤﺴﺤﻲ‬
Gathering primary data by asking people questions about their
knowledge, attitudes, preferences, and buying behavior.
Sustainable marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻤﺴﺘﺪﺍﻡ‬
A principle of sustainable marketing that holds that a company should
make marketing decisions by considering consumers’ wants, the
company’s requirements, consumers’ longrun interests, and society’s
long-run interests.
The idea that a company’s marketing decisions should consider
consumers’ wants, the company’s requirements, consumers’ long-run
interests, and society’s long-run interests.
SWOT analysis | (‫ﺗﺤﻠﻴﻞ ﺳﻮﺕ )ﻧﻘﺎﻁ ﺍﻟﻘﻮﺓ ﻭﺍﻟﻀﻌﻒ ﻭﺍﻟﻔﺮﺹ ﻭﺍﻟﺘﻬﺪﻳﺪﺍﺕ‬
Spam | ‫ﺍﻟﺒﺮﻳﺪ ﻏﻴﺮ ﺍﻟﻤﺮﻏﻮﺏ‬
Systems selling (solutions selling) | (‫ﺑﻴﻊ ﺍﻷﻧﻈﻤﺔ )ﺑﻴﻊ ﺍﻟﺤﻠﻮﻝ‬
Unsolicited, unwanted commercial e-mail messages
Buying a packaged solution to a problem from a single seller, thus
avoiding all the separate decisions involved in a complex buying situation.
Specialty product | ‫ﻣﻨﺘﺞ ﺧﺎﺹ‬
A consumer product with unique characteristics or brand
identification for which a significant group of buyers is willing to
make a special purchase effort.
Z05_KOTL5681_01_SE_GLOS.indd G10
An overall evaluation of the company’s strengths (S), weaknesses (W),
opportunities (O), and threats (T).
Target costing | ‫ﺍﻟﺘﻜﺎﻟﻴﻒ ﺍﻟﻤﺴﺘﻬﺪﻓﺔ‬
Pricing that starts with an ideal selling price, then targets costs that
will ensure that the price is met.
8/31/11 10:31 PM
G11
Glossary
Target market | ‫ﺍﻟﺴﻮﻕ ﺍﻟﻤﺴﺘﻬﺪﻓﺔ‬
Value chain | ‫ﺳﻠﺴﻠﺔ ﺍﻹﻣﺪﺍﺩﺍﺕ؛ ﺳﻠﺴﻠﺔ ﺍﻷﻧﺸﻄﺔ ﺍﻟﻤﻀﻴﻔﺔ ﻟﻠﻘﻴﻤﺔ‬
A set of buyers sharing common needs or characteristics that the
company decides to serve.
The series of departments that carry out value-creating activities to
design, produce, market, deliver, and support a firm’s products.
Team selling | ‫ﺍﻟﺒﻴﻊ ﺑﻮﺍﺳﻄﺔ ﺍﻟﻔﺮﻕ‬
Value delivery network | ‫ﺷﺒﻜﺔ ﺗﻮﻓﻴﺮ ﺍﻟﻘﻴﻤﺔ‬
Using teams of people from sales, marketing, engineering, finance,
technical support, and even upper management to service large,
complex accounts.
The network made up of the company, suppliers, distributors,
and ultimately customers who “partner” with each other to
improve the performance of the entire system in delivering
customer value.
Team-based new-product development |
‫ﺗﻄﻮﻳﺮ ﻣﻨﺘﺞ ﺟﺪﻳﺪ ﺑﺎﻻﻋﺘﻤﺎﺩ ﻋﻠﻰ ﻓﺮﻳﻖ ﺍﻟﻌﻤﻞ‬
Value proposition | ‫ﻗﻴﻤﺔ ﺍﻟﻤﻨﺘﺞ‬
An approach to developing new products in which various company
departments work closely together, overlapping the steps in the
product development process to save time and increase effectiveness.
The full positioning of a brand—the full mix of benefits upon which it
is positioned.
Technological environment | ‫ﺍﻟﺒﻴﺌﺔ ﺍﻟﺘﻜﻨﻮﻟﻮﺟﻴﺔ‬
Attaching value added features and services to differentiate a
company’s offers and charging higher prices.
Forces that create new technologies, creating new product and market
opportunities.
Telephone marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﻋﻦ ﻃﺮﻳﻖ ﺍﻟﺘﻠﻴﻔﻮﻥ‬
Value-added pricing | ‫ﺍﻟﺘﺴﻌﻴﺮ ﺍﻟﻘﺎﺋﻢ ﻋﻠﻰ ﺍﻟﻘﻴﻤﺔ ﺍﻟﻤﻀﺎﻓﺔ‬
Value-based pricing | ‫ﺍﻟﺘﺴﻌﻴﺮ ﺍﻟﻤﺒﻨﻲ ﻋﻠﻰ ﺍﻟﻘﻴﻤﺔ‬
Using the telephone to sell directly to customers.
Setting price based on buyers’ perceptions of value rather than on the
seller’s cost.
Territorial sales force structure |
Variable costs | ‫ﺍﻟﺘﻜﺎﻟﻴﻒ ﺍﻟﻤﺘﻐﻴﺮﺓ‬
‫ﺍﻟﻬﻴﻜﻞ ﺍﻟﺘﻨﻈﻴﻤﻲ ﻟﻤﻨﺪﻭﺑﻲ ﺍﻟﻤﺒﻴﻌﺎﺕ ﻓﻲ ﻣﻨﺎﻃﻖ ﺟﻐﺮﺍﻓﻴﺔ ﻣﺨﺘﻠﻔﺔ‬
Costs that vary directly with the level of production.
A sales force organization that assigns each salesperson to an exclusive
geographic territory in which that salesperson sells the company’s full
line.
Variety-seeking buying behaviour | ‫ﺳﻠﻮﻙ ﺍﻟﺸﺮﺍء ﺍﻟﻤﺘﺴﻢ ﺑﺎﻟﺘﻨﻮﻉ‬
Test marketing | ‫ﺍﻹﺧﺘﺒﺎﺭ ﺍﻟﺘﺴﻮﻳﻘﻲ‬
Vertical marketing system (VMS) | ‫ﻧﻈﺎﻡ ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﺮﺃﺳﻲ‬
The stage of new-product development in which the product and
marketing program are tested in realistic market settings.
A distribution channel structure in which producers, wholesalers, and
retailers act as a unified system. One channel member owns the others,
has contracts with them, or has so much power that they all cooperate
Third-party logistics (PL) provider | ‫ﻣﻘﺪﻡ ﺍﻟﺨﺪﻣﺎﺕ ﺍﻟﻠﻮﺟﺴﺘﻴﺔ ﺍﻟﻤﺴﺘﻘﻞ‬
An independent logistics provider that performs any or all of the
functions required to get its client’s product to market.
Total costs | ‫ﺍﻟﺘﻜﺎﻟﻴﻒ ﺍﻹﺟﻤﺎﻟﻴﺔ‬
The sum of the fixed and variable costs for any given level of
production.
Trade promotions | ‫ﺍﻟﻌﺮﻭﺽ ﺍﻟﺘﺮﻭﻳﺠﻴﺔ ﺍﻟﺘﺠﺎﺭﻳﺔ‬
Sales promotion tools used to persuade resellers to carry a brand,
give it shelf space, promote it in advertising, and push it to
consumers.
Undifferentiated (mass) marketing | (‫ﺍﻟﺘﺴﻮﻳﻖ ﺍﻟﻤﻔﺘﻮﺡ )ﺍﻟﻤﻮﺳﱠﻊ‬
A market-coverage strategy in which a firm decides to ignore
market segment differences and go after the whole market with
one offer.
Consumer buying behavior in situations characterized by low
consumer involvement but significant perceived brand differences.
Viral marketing | ‫ﺍﻟﺘﺴﻮﻳﻖ ﻋﺒﺮ ﺍﻟﺘﻨﺘﺎﻗﻞ ﺍﻹﻟﻜﺘﺮﻭﻧﻲ‬
The Internet version of word-of-mouth marketing—Web sites, videos,
e-mail messages, or other marketing events that are so infectious that
customers will want to pass them along to friends.
Wants | ‫ﺍﻟﺮﻏﺒﺎﺕ‬
The form human needs take as shaped by culture and individual
personality.
Whole-channel view | ‫ﺍﻟﻤﻨﻈﻮﺭ ﺍﻟﻜﺎﻣﻞ ﻟﻘﻨﻮﺍﺕ ﺍﻟﺘﺴﻮﻳﻖ‬
Designing international channels that take into account the entire
global supply chain and marketing channel, forging and effective
global value delivery network.
Wholesaler | ‫ﺗﺎﺟﺮ ﺍﻟﺠﻤﻠﺔ‬
A firm engaged primarily in wholesaling activities.
Uniform-delivered pricing | ‫ﺍﻟﺘﺴﻌﻴﺮﺓ ﺍﻟﻤﻮﺣﺪﺓ ﻟﻠﺘﻮﺻﻴﻞ‬
Wholesaling | ‫ﺍﻟﺒﻴﻊ ﺑﺎﻟﺠﻤﻠﺔ‬
A geographical pricing strategy in which the company charges
the same price plus freight to all customers, regardless of their
location.
All activities involved in selling goods and services to those buying
for resale or business use.
Unsought product | ‫ﻣﻨﺘﺞ ﻏﻴﺮ ﻣﻄﻠﻮﺏ‬
A consumer product that the consumer either does not know about or
knows about but does not normally think of buying.
Users | ‫ﺍﻟﻤﺴﺘﺨﺪﻣﻮﻥ‬
Members of the buying organization who will actually use the
purchased product or service.
Z05_KOTL5681_01_SE_GLOS.indd G11
Word-of-mouth influence | ‫ﺗﺄﺛﻴﺮ ﺍﻟﻜﻠﻤﺔ ﺍﻟﻤﻨﻄﻮﻗﺔ‬
Personal communication about a product between target buyers and
neighbors, friends, family members, and associates.
Zone pricing | ‫ﺍﻟﺘﺴﻌﻴﺮ ﺣﺴﺐ ﺍﻟﻤﻨﺎﻃﻖ‬
A geographical pricing strategy in which the company sets up two or
more zones. All customers within a zone pay the same total price; the
more distant the zone, the higher the price.
8/31/11 10:31 PM
Principles of
This textbook is accompanied by MyMarketingLab, a powerful online tool that combines assessment,
reporting, and personalized study to help both students and instructors succeed. With its abundant collection
of resources, MyMarketingLab offers students many ways to study, and instructors many ways to save time –
all in one convenient place.
Marketing
Discover what makes a marketing campaign successful in this rapidly developing
region through the Arab edition of this widely acclaimed textbook. Kotler and
Armstrong’s hugely successful approach has been adapted specifically for the Arab
world, using Arab-world business examples, case studies and statistics as well as
cultural and demographic insights. Emphasis is placed on making marketing ideas
and concepts come alive by encouraging readers to apply established marketing
principles to real companies in real situations.
Arab World
Edition
The essential marketing textbook for the Arab region and beyond.
Inside all new copies of this textbook is a pre-paid access code that students can use to access
MyMarketingLab at www.pearsoned.co.uk/awe/kotler.
PRINCIPLES OF
MARKETING
Philip Kotler
Gary Armstrong
Ahmed Tolba
Anwar Habib
Philip Kotle
Gary Armstrong
Ahmed Tolba
Anwar Habib