Principles of marketing

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Principles of marketing H Ali V Talwar MN3 141 2013 Undergraduate study in Economics Management Finance and the Social Sciences This is an extract from a subject guide for an undergraduate course offered as part of the


This guide was prepared for the University of London International Programmes by. H Ali BSc Hon MPhil Ph D Lecturer in Marketing Open University Business School. V Talwar B Eng PGDBA Ph D Assistant Professor Lecturer in Marketing Henley Business. School University of Reading Visiting Faculty The London School of Economics and Political. Chapters 1 2 4 9 11 and 13 contain some material originally written by Rafael Gomez. This is one of a series of subject guides published by the University We regret that due. to pressure of work the authors are unable to enter into any correspondence relating to. or arising from the guide If you have any comments on this subject guide favourable or. unfavourable please use the form at the back of this guide. University of London International Programmes,Publications Office. Stewart House,32 Russell Square,London WC1B 5DN,United Kingdom. www londoninternational ac uk,Published by University of London. University of London 2013,Reprinted with minor revisions 2015. The University of London asserts copyright over all material in this subject guide except where. otherwise indicated All rights reserved No part of this work may be reproduced in any form. or by any means without permission in writing from the publisher We make every effort to. respect copyright If you think we have inadvertently used your copyright material please let. Chapter 1 Introduction 1,1 1 Route map to the guide 1.
1 2 Introduction to the subject area 2,1 3 Syllabus 2. 1 4 Aims of the course 2,1 5 Learning outcomes for the course 2. 1 6 Overview of learning resources 3,1 7 Examination advice 14. Chapter 2 An overview of marketing history and theory 17. 2 1 Introduction 17, 2 2 Definitions and a brief introduction to the history of marketing 18. 2 3 A brief history of marketing theory 19,2 4 Exchange 20.
2 5 History of business orientations the triumph of marketing 21. 2 6 Marketing problems 25, 2 7 Looking ahead the marketing framework and the ultimate aim of production 26. 2 8 Overview of chapter 26,2 9 Reminder of your learning outcomes 26. 2 10 Test your knowledge and understanding 26,Chapter 3 The marketing environment 29. 3 1 Introduction 29,3 2 Types of environment 31,3 3 Customers consumers or clients 31. 3 4 Stakeholders 33,3 5 Overview of chapter 37,3 6 Reminder of learning outcomes 37.
3 7 Test your knowledge and understanding 37,Chapter 4 Consumer behaviour 39. 4 1 Introduction 39, 4 2 Tastes and constraints in explaining differences and changes in behaviour 41. 4 3 Prospect theory 44, 4 4 The social psychological approach to consumer buyer behaviour 46. 4 5 The role of social networks 49, 4 6 A cognitive versus behavioural approach to consumer decision making 50. 4 7 Mechanisms of behavioural habitual explanation 52. 4 8 Applications of behavioural and cognitive principles in marketing 52. 4 9 Alternative based and attribute based search strategies 54. 4 10 Information control 55,4 11 Types of buying behaviour 56.
4 12 The case of advertising cognitive versus behavioural approaches 58. 4 13 Overview of chapter 58,4 14 Reminder of learning outcomes 59. 4 15 Test your knowledge and understanding 59,MN3141 Principles of marketing. Chapter 5 Organisational buyer behaviour 61,5 1 Introduction 61. 5 2 Characteristics of business markets 63,5 3 The importance of risk 65. 5 4 What is risk 65,5 5 Overview of chapter 69,5 6 Reminder of learning outcomes 69.
5 7 Test your knowledge and understanding 70, Chapter 6 Market segmentation targeting and positioning 71. 6 1 Introduction 71,6 2 Importance of segmentation 73. 6 3 Market segmentation targeting and positioning 74. 6 4 Problems in implementing segmentation 76,6 5 Positioning 78. 6 6 Overview of chapter 80,6 7 Reminder of learning outcomes 81. 6 8 Test your knowledge and understanding 81,Chapter 7 Customer relationship marketing CRM 83.
7 1 Introduction 83,7 2 The development of relationship marketing 85. 7 3 Building customer relationships and customer equity 86. 7 4 Planning marketing partnering to build customer relationships 86. 7 5 The role of trust in relationships 86, 7 6 Using relationships instead of markets or hierarchies 87. 7 7 Networks and relationships 94,7 8 Overview of chapter 96. 7 9 Reminder of learning outcomes 97,7 10 Test your knowledge and understanding 97. Chapter 8 Branding and product development 99,8 1 Introduction 99.
8 2 Value 102,8 3 Co creation and value 103,8 4 Quality in marketing 104. 8 5 Branding 108,8 6 New product development 114,8 7 Organisational adoption of innovation 114. 8 8 Common design by users 116,8 9 Introduction to services marketing 117. 8 10 Overview of chapter 120,8 11 Reminder of your learning outcomes 120. 8 12 Test your knowledge and understanding 120, Chapter 9 Product innovation and the life cycle approach 123.
9 1 Introduction 123,9 2 Product innovation 125, 9 3 Modelling the rate of adoption of an innovation 129. 9 4 Economic perspectives on product success 130,9 5 Informational cascades 133. 9 6 What is a product life cycle 137,9 7 Overview of chapter 141. 9 8 Reminder of your learning outcomes 142,9 9 Test your knowledge and understanding 142. Chapter 10 Promotion 143,10 1 Introduction 143,10 2 What is promotion 145.
10 3 Advertising 148,10 4 Sales promotions 149,10 5 Personal selling 151. 10 6 Word of mouth 152,10 7 Digital marketing communications 152. 10 8 Communications and relationships 153,10 9 Overview of chapter 154. 10 10 Reminder of your learning outcomes 154,10 11 Test your knowledge and understanding 154. Chapter 11 Pricing 155,11 1 Introduction 155,11 2 Why is pricing important 156.
11 3 Pricing policies and strategy 166,11 4 Summarising pricing policy in theory 167. 11 5 Overview of chapter 169,11 6 Reminder of your learning outcomes 169. 11 7 Test your knowledge and understanding 169,Chapter 12 Distribution 171. 12 1 Introduction 171,12 2 Why firms use distribution channels 172. 12 3 The functions performed by marketing channel members 173. 12 4 The importance of power in channel member relationships 177. 12 5 Coordination in channel relationships 179,12 6 Channel design and management decisions 180.
12 7 Relationship specific investments in distribution 181. 12 8 Fairness in distribution channels 182,12 9 Overview of chapter 183. 12 10 Reminder of your learning outcomes 183,12 11 Test your knowledge and understanding 184. Chapter 13 Corporate social responsibility CSR 185. 13 1 Introduction 185, 13 2 What ethical and social problems is marketing accused of causing 187. 13 3 Marketisation 193,13 4 Societal marketing revisited 194. 13 5 Definitions and a brief history of corporate social responsibility CSR 194. 13 6 Overview of chapter 200,13 7 Reminder of your learning outcomes 200.
13 8 Test your knowledge and understanding 200,Appendix 1 Sample examination paper 201. Appendix 2 Activity feedback 203,Chapter 2 203,Chapter 3 203. Chapter 4 204,Chapter 5 205,MN3141 Principles of marketing. Chapter 7 206,Chapter 8 207,Chapter 10 207,Chapter 12 208. Chapter 13 208,Chapter 1 Introduction,Chapter 1 Introduction.
1 1 Route map to the guide, This subject guide should be used as a guide to reading and research. as opposed to a replacement for it In the Essential reading section of. every chapter we identify at least one and sometimes more Essential. readings from the Kotler and Armstrong textbook see Section 1 6 2 This. along with the subject guide should form the backbone of your study. Apart from that we encourage you to seek out the Further readings and. electronic sources such as websites which provide additional material of. relevance to the subject,In order to succeed in the course you should. Work through the subject guide and Essential reading in each of these. identify the relevant chapter and sections of Kotler and Armstrong that. you need to read, As you read the subject guide chapters take note of the Further. reading and references listed and follow up with information from. electronic sources to gain a fuller appreciation of ideas and concepts. which appear in each chapter of the guide and textbook. When you have finished your readings you should examine the. learning outcomes in the subject guide and check to see if you have. understood the material You may also find it useful to check your. understanding by attempting the Sample examination questions at the. end of each chapter, In the next couple of paragraphs we will attempt to show how you can. get the best out of this subject guide Kotler and Armstrong and the other. Essential readings In order to illustrate this discussion we will take. Chapter 5 from the subject guide as an example but the principles raised. here are relevant to other chapters as well, Chapter 5 of the subject guide deals with organisational buyer behaviour.
and the Essential reading from Kotler and Armstrong is Chapter 6 The. Kotler and Armstrong chapter provides a useful introduction to the. topic which is full of business examples The chapter then highlights the. features of business markets and then deals with aspects of business buyer. behaviour such as the types of buying situation and the business buying. process You ll note that the explanation is essentially descriptive The. text explains what marketers generally do This is particularly useful since. many marketing students who do not work in marketing may sometimes. wonder about the business relevance of concepts that they are studying. However there is a fundamental limitation with Kotler and Armstrong s. coverage The textbook does not critically examine various concepts and. issues The subject guide complements this approach and examines the. extent to which the often cited differences between consumer and. business markets are valid The subject guide then moves onto examining. one of the factors that influences business buyer behaviour risk This. concept is considered in some detail and reference is made to a variety. of journal articles The section also considers how marketers can seek to. manage risk This discussion serves a further use since it helps to inform. the discussion on relationships in Chapter 7 of the subject guide. MN3141 Principles of marketing, This approach will ensure that you are not only familiar with a breadth of. marketing topics through your reading of Kotler and Armstrong but that. you also gain some in depth insights into key concepts. 1 2 Introduction to the subject area, As the title of the course indicates the emphasis in this subject guide is on. the principles that is the models theories concepts and frameworks. rather than just the practice of marketing, Although attention will naturally be paid to marketing based concepts. such as pricing promotion distribution and branding the predominant. theoretical insights will be drawn from several disciplines such as. management economics and psychology Overall the approach will be. conceptual and will better enable you to apply your learning to a broad. range of marketing problems,1 3 Syllabus,General introduction. An overview of marketing history and theory,The marketing environment.
Consumer behaviour,Organisational buyer behaviour,Market segmentation targeting and positioning. Customer relationship marketing CRM,Branding and product development. Product innovation and the lifecycle approach,Distribution. Corporate social responsibility CSR,1 4 Aims of the course. This course aims to, introduce you to the fundamental principles of marketing.
give you a broad understanding of consumers and the marketing. behaviour of firms, explore the relevance of other academic disciplines to marketing. encourage you to question the limitations of marketing management and. to suggest ways of overcoming its many problems, develop your practical skills by applying learned theories to real world. organisational problems,1 5 Learning outcomes for the course. This course is ideally suited to those who wish to develop a sophisticated. and critical understanding of marketing theory At the end of this course and. having completed the Essential reading and activities you should be able to. Chapter 1 Introduction, discuss the function and effect of advertising promotion from an. organisational perspective, describe the pricing behaviour of firms in an uncertain environment.
where information may be limited or wrong, describe and analyse the marketing behaviour of firms and consumers. These themes run throughout the course You will be expected to acquire a. knowledge and critical understanding of these and other important themes. as well as the sub topics that form a part of each major theme. 1 6 Overview of learning resources,1 6 1 The structure of the guide. This subject guide has three main areas of study, A general introduction to marketing giving the historical foundations. of the subject as well as the scope of what marketing is all about. A focus on understanding consumer and buyer behaviour This is an. essential element since the hallmark of marketing as opposed to. other management disciplines is the belief in the sovereignty of the. consumer and ultimate strength to an organisation of structuring. managerial strategies with the end user in mind, A focus on the organisation and on understanding its particular. marketing behaviour,1 6 2 Reading advice, There are many textbooks that cover most of the major themes related to.
the principles of marketing found in this guide However the Kotler and. Armstrong text listed under Essential reading is the book most often. used in university programmes around the world It also has the virtue of. having a dedicated international edition and one of the longest print runs. in academic history As such although our guide is structured thematically. quite differently from the Essential reading textbook all the chapters of. the subject guide have corresponding ones in the textbook Our subject. guide is therefore a complement to and not a substitute for this Essential. Essential reading, Kotler P and G Armstrong Principles of marketing Upper Saddle River. NJ Pearson Prentice Hall 2012 14th international edition ISBN. 9780273752431, Detailed reading references in this subject guide refer to the editions of the. set textbooks listed above New editions of one or more of these textbooks. may have been published by the time you study this course You can use. a more recent edition of any of the books use the detailed chapter and. section headings and the index to identify relevant readings Also check. the virtual learning environment VLE regularly for updated guidance on. Essential journal articles, Gaski J F The theory of power and conflict in channel of distribution Journal. of Marketing 48 3 1984 pp 9 29, Greatorex M V W Mitchell and R Cunliffe A risk analysis of industrial buyers. the case of mid range computers Journal of Marketing Management 8. 1992 pp 315 33,MN3141 Principles of marketing, Mitchell V W Buy phase and buy class effects on organisational risk perception.
and reduction in purchasing professional services Journal of Business and. Industrial Marketing 13 6 1998 pp 461 78, Noordhoff C S K Kyriakopoulos C Moorman P Pauwels and B G C Dellaert. The bright side and dark side of embedded ties in business to business. innovation Journal of Marketing 75 2011 pp 34 52, Ring P S and A H Van de Ven Structuring cooperative relationships between. organisations Strategic Management Journal 13 6 1992 pp 483 98. Wilson D F Why divide consumer and organisational buyer behaviour. European Journal of Marketing 34 7 2000 pp 780 96, Yilmaz C E E Telci M Bodur T E Iscioglu and T Eker Source characteristics. and advertising effectiveness International Journal of Advertising 30 5. 2011 pp 889 914,Further reading, As well as the Essential reading you will find that each subject guide. chapter has a reference to Further reading Usually the texts referred to. as Further reading are linked to an activity in that chapter of the subject. guide and you are expected to read the relevant parts of the cited article. and answer the questions that are asked You will need to support your. learning by reading as widely as possible and by thinking about how. these principles apply in the real world To help you read extensively you. have free access to the VLE and University of London Online Library see. Other useful texts for this course include, Aldrich H and D A Whetten Organisation sets action sets and networks.
making the most of simplicity in Nystrom P C and W H Starbuck eds. Handbook of organisational design Vol 1 Oxford Oxford University Press. 1981 ISBN 9780198272410 pp 385 408, Baker M J Marketing strategy and management Basingstoke Palgrave. Macmillan 2007 sixth edition ISBN 9781403986276, Bauer R A Consumer behaviour as risk taking in Cox D ed Risk taking. and information handling Boston MA Division of Research Graduate. School of Business Administration Harvard University 1967 ISBN. 9780875840635 pp 22 33, Boissevain J Friends of friends Networks manipulators and coalitions Oxford. Basil Blackwell 1974 ISBN 9780631149705, Chesbrough H Open innovation the new imperative for creating and. profiting from technology Boston MA Harvard Business School Press. 2003 ISBN 9781578518371, Cox D F Risk taking and information handling in consumer behaviour an.
intensive study of two cases in Cox D ed Risk taking and information. handling Boston MA Harvard University Press 1967,ISBN 9780875840635 pp 82 108. Cram T Pricing in Baker M J and S J Hart eds The marketing book. Oxford Butterworth Heinemann 2008 sixth edition,ISBN 9780750685665. Freeman R E Strategic management a stakeholder approach Boston MA. Pitman 1984 and Cambridge Cambridge University Press 2010. ISBN 9780521151740, Galbraith K The affluent society London Penguin 1999. ISBN 9780140285192, Guseman D S Risk perception and risk reduction in consumer services in. Donelly J H and W R George eds in Marketing of Services Proceedings. of the American Marketing Association Chicago IL American Marketing. Association 1981 ISBN 9780877571483 pp 200 04,Chapter 1 Introduction.
Holbrook M B The nature of customer value in Rust R T and R L Oliver. eds Service quality new directions in theory and practice Thousand Oaks. CA Sage Publications 1994 ISBN 9780803949201 pp 21 71. Homburg C S Keuster and H Krohmer Marketing management a. contemporary perspective London McGraw Hill 2009 ISBN. 9780077117245, Kay J A model of product positioning in The foundations of corporate success. Oxford Oxford University Press 1993 and new edition Oxford Oxford. University Press 1995 ISBN 9780198289883 pp 242 50. Klein N No logo no space no choice no jobs taking aim at the brand bullies. Toronto A A Knopf Canada 2000 and Fourth estate 2010 10th edition. ISBN 9780007340774, Kotler P S H Ang S M Leong and C T Tan Marketing management an Asian. perspective Singapore Prentice Hall 1996 and Prentice Hall 2004 third. edition ISBN 9780131066250, Kotler P Marketing management Englewood Cliffs NJ Prentice Hall 1991. seventh edition ISBN 9780135524800, Kuhlmeijer H J Managerial marketing Leiden Stenfert Kroese 1975 ISBN. 9789020704600, Lambin J Market driven management strategic and operational marketing.
Basingstoke Macmillan 2000 ISBN 9780333793190, Lambin J and I Schuiling Market driven management strategic and. operational marketing Basingstoke Palgrave Macmillan 2012 third edition. ISBN 9780230276024, McDonald C Challenging social work the institutional context of practice. Basingstoke Palgrave Macmillan 2006 ISBN 9781403935458 p 115. Nagle T and R K Holden The strategy and tactics of pricing a guide to profitable. decision making Englewood Cliffs NJ Prentice Hall 1994 ISBN. 9780136106814, Nagle T and R K Holden The strategy and tactics of pricing a guide to growing. more profitably Upper Saddle River NJ Prentice Hall 2006. Olson J C Cue utilisation in the quality perceptions process in Venkatesan. M ed Third annual conference of the Association for Consumer Research. Chicago Association for Consumer Research 1972 pp 167 79. Peter J P and J C Olson Consumer behavior and marketing strategy New. York McGraw Hill 2005 and McGraw Hill 2010 ninth edition ISBN. 9780071267816, Puttnam D Movies and money New York Knopf 1998 ISBN. 9780679446644, Rogers E M Diffusion of innovations London Free Press 1983 third.
edition ISBN 0029266505 London Free Press 1995 fourth edition. ISBN 9780029266717 London Free Press 2003 fifth edition ISBN. 9780743222099, Rogers E and R Shoemaker Communication of innovations New York Free. Press 1972 ISBN 0029266807, Rokeach M The nature of human values New York The Free Press 1973. Samuelson P A Economics an introductory analysis New York McGraw. Hill 1994 and McGraw Hill 1998 new edition of 1948 edition ISBN. 9780070747418, Schnaars S P Marketing strategy customers and competition New York Free. Press 1998 second edition ISBN 9780684831916, Trott P Innovation management and new product development Harlow Pearson. 2012 fifth edition ISBN 9780273736561, Webster F E and Y Wind A general model for understanding organisational.
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