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Basic Marketing: A Marketing Strategy Planning Approach
William D. Perreault, Joseph P. Cannon, E. Jerome McCarthy
In a sentence
A foundational textbook that teaches managerial marketing through the four Ps and a target-market-centered marketing strategy planning process.
Basic Marketing, 16th edition, is the market-leading introductory marketing text built on three foundation pillars: the four Ps framework, a managerial orientation, and a strategy planning focus. It teaches readers to see marketing through the eyes of the marketing manager, showing how to narrow down from broad opportunities to a specific target market and a blended marketing mix (Product, Place, Promotion, Price) that delivers superior customer value, satisfies customers profitably, and builds customer equity. With hundreds of real-world examples spanning profit and nonprofit organizations, domestic and international settings, e-commerce, and services, the book equips students to analyze marketing situations and develop exceptional, integrated marketing strategies rather than just memorize lists.
The four lenses
- Science
- Statistics
- Systems
- Strategy
The model
A managerial causal framework in which a firm narrows down from broad opportunities by selecting a target market and blending the four Ps into a marketing mix that creates superior customer value, drives customer satisfaction and retention, and builds customer equity and profit.
Target Market Selectiondesign lever
The managerial choice of a fairly homogeneous group of customers to whom the firm wishes to appeal, narrowing down from broad market opportunities to a specific, attractive segment that fits the firm's resources.
Product Mix Decisionsdesign lever
Decisions about developing the right good or service for the target market, including features, quality, branding, packaging, service levels, and product lines that satisfy customer needs.
Place (Distribution) Decisionsdesign lever
Decisions about getting the right product to the target market's place through channels of distribution, including channel type, market exposure, logistics, transporting, and storing.
Promotion Decisionsdesign lever
Decisions about telling the target market and channel members about the right product, blending personal selling, mass selling (advertising and publicity), and sales promotion to communicate value and acquire or retain customers.
Price Decisionsdesign lever
Decisions about setting the right price given competition, costs of the whole marketing mix, customer reaction, markups, discounts, and terms of sale so that customers accept the offering.
Marketing Orientationcontextual condition
An organizational philosophy of carrying out the marketing concept by aiming all company efforts at satisfying customers at a profit through total company effort rather than a production orientation.
Competitive and External Environmentcontextual condition
The competitive, economic, technological, political, legal, and cultural conditions external to the firm that shape which opportunities and marketing mixes can succeed.
Customer Valuepsychological state
The customer's perceived difference between the benefits seen in a market offering and the total costs of obtaining those benefits; higher when benefits exceed costs by a larger margin relative to competitors.
Customer Satisfactionpsychological state
The extent to which a firm fulfills a customer's needs, desires, and expectations before, during, and after the purchase, leading to repeat buying and loyalty.
Customer Retention and Relationshipbehavioral pattern
The ongoing behavioral pattern of customers continuing to purchase from the firm and deepening the relationship over repeat transactions because their needs are satisfied.
Customer Equityoutcome metric
The expected earnings stream (profitability) of a firm's current and prospective customers over some period of time, which top management expects marketing strategy planning to increase.
Firm Profit and Survivaloutcome metric
The difference between the firm's revenues and total costs, serving as the bottom-line measure of the firm's success and ability to survive and grow.
How they connect
- target market selection → influences customer value
- product decisions → influences customer value
- place decisions → influences customer value
- promotion decisions → influences customer value
- price decisions − influences customer value
- customer value → predicts customer satisfaction
- customer satisfaction → predicts customer retention
- customer retention → predicts customer equity
- customer equity → predicts firm profit
- customer value → mediates customer equity
- marketing orientation → moderates customer value
- competitive environment − moderates customer value
A candidate measure
Basic Marketing: A Marketing Strategy Planning Approach — derived measurement candidates
Target Market Selection
documented target profiles; segment size estimates; fit-with-resources assessments
self-report suitability: medium
Product Mix Decisions
product attribute records; brand recognition; warranty terms
self-report suitability: medium
Place (Distribution) Decisions
number/type of outlets; percent of dealers covered; delivery service levels
self-report suitability: medium
Promotion Decisions
promotion spend; media reach; sales call activity
self-report suitability: medium
Price Decisions
price levels; discount depth; markup percentages
self-report suitability: low
Marketing Orientation
orientation attitude ratings; integration practices; customer-focus indicators
self-report suitability: high
Competitive and External Environment
number of competitors; market growth rates; regulatory indices
self-report suitability: low
Customer Value
perceived benefit ratings; perceived cost ratings; relative preference scores
self-report suitability: high
Customer Satisfaction
satisfaction scores; complaint rates; recommendation likelihood
self-report suitability: high
Customer Retention and Relationship
retention rate; customer tenure; share of wallet
self-report suitability: medium
Customer Equity
customer lifetime value; aggregate customer profitability; earnings projections
self-report suitability: none
Firm Profit and Survival
net profit; profit margin; firm valuation
self-report suitability: none
The story
The reader A student or aspiring marketing manager who wants to understand marketing and develop the skills and confidence to create successful marketing strategies.
External problem
They must figure out how to satisfy customers profitably by choosing a target market and blending a marketing mix in dynamic, competitive markets.
Internal problem
They feel overwhelmed by the many variables and fear making the kind of strategy mistakes that doom products and dot-com firms.
Philosophical problem
It's just plain wrong to reduce marketing to selling and advertising or to push out whatever a firm happens to make instead of serving real customer needs.
The plan
- Learn what marketing is and why it matters at micro and macro levels.
- Adopt the marketing concept: satisfy customers at a profit through total company effort.
- Select a specific target market rather than aiming at everyone.
- Blend the four Ps—Product, Place, Promotion, Price—into a coherent marketing mix.
- Write a marketing plan, implement it, and control it with feedback.
- Build customer value and customer equity through profitable long-term relationships.
Success
- The reader can analyze marketing situations and develop exceptional, integrated marketing strategies with confidence.
- They deliver superior customer value, satisfy and retain customers, and grow customer equity and profits.
At stake
- They fall into production-oriented thinking, ignore customer needs, and waste resources on me-too imitation.
- Their products fail, customers defect, and the firm loses to competitors who offer superior value.
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