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 2 018 E D I T I O N | P R I D E & F E R R E L L

MARKETING

WILLIAM M. PRIDE
Texas A & M University

O. C. FERRELL
Auburn University

Australia • Brazil • Mexico • Singapore • United Kingdom • United States

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 Marketing, 2018 © 2018, 2016 Cengage Learning®
William M. Pride, O.C. Ferrell ALL RIGHTS RESERVED. No part of this work covered by the copy-
Vice President, General Manager, Social ­ right herein may be reproduced or distributed in any form or by
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Printed in the United States of America

Print Number: 01 Print Year: 2016

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 To Nancy, Allen, Carmen, Gracie, Mike, Ashley, Charlie, J.R.,
and Anderson Pride

To James Collins Ferrell and George Collins Ferrell

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72896_fm_hr_i-xxxii.indd 4 22/11/16 7:30 pm
 brief contents

Part 1: Marketing Strategy and Customer Relationships 1

1. An Overview of Strategic Marketing 2
2. Planning, Implementing, and Evaluating Marketing Strategies 32

Part 2: Environmental Forces and Social and Ethical Responsibilities 63

3. The Marketing Environment 64
4. Social Responsibility and Ethics in Marketing 96

Part 3: Marketing Research and Target Market Analysis 129

5. Marketing Research and Information Systems 130
6. Target Markets: Segmentation and Evaluation 164

Part 4: Buying Behavior, Global Marketing, and Digital Marketing 193

7. Consumer Buying Behavior 194
8. Business Markets and Buying Behavior 228
9. Reaching Global Markets 256
10. Digital Marketing and Social Networking 294

Part 5: Product Decisions 327

11. Product Concepts, Branding, and Packaging 328
12. Developing and Managing Products 364
13. Services Marketing 390

Part 6: Distribution Decisions 419

14. Marketing Channels and Supply-Chain Management 420
15. Retailing, Direct Marketing, and Wholesaling 458

Part 7: Promotion Decisions 495

16. Integrated Marketing Communications 496
17. Advertising and Public Relations 528
18. Personal Selling and Sales Promotion 558

Part 8: Pricing Decisions 595

19. Pricing Concepts 596
20. Setting Prices 626

Available only online:

Appendix A: Financial Analysis in Marketing A-1
Appendix B: Sample Marketing Plan B-1
Appendix C: Careers in Marketing C-1
v

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 contents

Preface xvii

Part 1: Marketing Strategy and Customer Relationships 1

Chapter 1: An Overview of Strategic 1-7h Marketing Offers Many Exciting Career

Marketing 2 Prospects 23
Going Green: Lego: Building with Bio-Plastics 23
Marketing Insights: Airbnb Facilitates the Sharing Lodging
Experience 3 Summary 24
Important Terms 25
1-1 Defining Marketing 4
Discussion and Review Questions 25
1-1a Marketing Focuses on Customers 5 Video Case 1.1 Cruising to Success: The Tale of
1-2 Marketing Deals with Products, Distribution, New Belgium Brewing 26
Promotion, and Price 6 Case 1.2 Dollar Shave Club: The Company for Men 27
1-2a The Product Variable 6
1-2b The Distribution Variable 7
1-2c The Promotion Variable 8 Chapter 2 Planning, Implementing,
1-2d The Price Variable 8 and Evaluating Marketing Strategies 32
1-3 Marketing Creates Value 9 Marketing Insights: Dressbarn Dresses Up Its Strategy 33
1-3a Marketing Builds Relationships with Customers 2-1 The Strategic Planning Process 34
and Other Stakeholders 11 2-2 Establishing Mission, Goals, and Strategies 35
1-4 Marketing Occurs in a Dynamic Environment 12 2-2a Developing Organizational Mission
1-5 Understanding the Marketing Concept 13 and Goals 35
Entrepreneurship in Marketing: Protein Bar Restaurant: 2-2b Developing Corporate and Business-Unit
Satisfying Consumers 15 Strategies 36
1-5a Evolution of the Marketing Concept 15 2-3 Assessing Organizational Resources
1-5b Implementing the Marketing Concept 16 and Opportunities 41
1-6 Customer Relationship Management 17 2-3a SWOT Analysis 42
1-6a Relationship Marketing 17 Marketing Debate: Should Drugstores Sell Tobacco
1-6b Customer Lifetime Value 18 Products? 43
Snapshot: Top Marketing Challenges 18 2-3b First Mover and Late-Mover Advantage 43
1-7 The Importance of Marketing in Our Global 2-4 Developing Marketing Objectives and Marketing
Economy 19 Strategies 44
1-7a Marketing Costs Consume a Sizable Portion Going Green: Campbell Soup’s Recipe for Sustainability
of Buyers’ Dollars 19 and Transparency 45
1-7b Marketing is Used in Nonprofit 2-4a Selecting the Target Market 45
Organizations 19 2-4b Creating the Marketing Mixes 46
1-7c Marketing Is Important to Businesses 2-5 Managing Marketing Implementation 47
and the Economy 19 2-5a Organizing the Marketing Unit 47
1-7d Marketing Fuels Our Global Economy 20 2-5b Coordinating and Communicating 48
1-7e Marketing Knowledge Enhances Consumer 2-5c Establishing a Timetable for Implementation 49
Awareness 20 2-6 Evaluating Marketing Strategies 49
1-7f Marketing Connects People through 2-6a Establishing Performance Standards 49
Technology 20 2-6b Analyzing Actual Performance 50
1-7g Socially Responsible Marketing: Promoting Snapshot: How much do companies spend
the Welfare of Customers and Stakeholders 21 on marketing? 52

iv

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 Contents vii

2-6c Comparing Actual Performance with Video Case 2.1 BoltBus Offers Affordable Transportation
Performance Standards and Making for Tech-Savvy Consumers 57
Changes, If Needed 52 Case 2.2 Netflix Uses Technology to Change How We
2-7 Creating the Marketing Plan 53 Watch Videos 58
Strategic Case 1 Sseko Designs: Using Marketing for Social
Summary 54 Impact 59
Important Terms 56
Discussion and Review Questions 56

Part 2: Environmental Forces and Social and Ethical Responsibilities 63

Chapter 3: The Marketing Environment 64 Video Case 3.1 Apple vs. Samsung: Gloves Are Off 90
Case 3.2 Volkswagen Hits a Bump in the Road 91
Marketing Insights: Pepsi: A Healthier Alternative 65
3-1 Examining and Responding to the Marketing
Chapter 4: Social Responsibility and Ethics
Environment 66
3-1a Environmental Scanning and Analysis 66 in Marketing 96
Emerging Trends in Marketing: Making Trade Fair 67 Marketing Insights: Starbucks Goes Grande on Job
3-1b Responding to Environmental Forces 67 Opportunities 97
3-2 Competitive Forces 69 4-1 The Nature of Social Responsibility 98
3-2a Types of Competitors 69 4-1a The Dimensions of Social Responsibility 99
3-2b Types of Competitive Structures 70 4-1b Social Responsibility Issues 102
3-2c Monitoring Competition 71 Going Green: The Walmart Supply Chain Goes Green 105
3-3 Economic Forces 71 4-2 Marketing Ethics 106
3-3a Economic Conditions 72 4-2a Ethical Issues in Marketing 107
3-3b Buying Power 73 4-2b Ethical Dimensions of Managing
3-3c Willingness to Spend 74 Supply Chain Relationships 109
3-4 Political Forces 75 4-3 The Nature of Marketing Ethics 110
3-5 Legal and Regulatory Forces 76 4-3a Individual Factors 110
3-5a Procompetitive Legislation 76 4-3b Organizational Relationships 111
3-5b Consumer Protection Legislation 78 Snapshot: How Much Time Do Employees Waste
3-5c Encouraging Compliance with Laws at Work? 111
and Regulations 78 4-3c Opportunity 112
Entrepreneurship in Marketing: Second City Brings Ethics
3-5d Regulatory Agencies 79
Training to Life 113
3-5e  Self-Regulatory Forces 81
4-4 Improving Marketing Ethics 113
3-6 Technological Forces 82
4-5 Incorporating Social Responsibility and Ethics
3-6a Impact of Technology 82
Into Strategic Planning 116
Snapshot: Consumer Ownership of Digital Devices 83
4-5a Social Responsibility and Ethics Improve
3-6b Adoption and Use of Technology 84
Marketing Performance 118
3-7 Sociocultural Forces 85
3-7a Demographic and Diversity Characteristics 85 Summary 119
Marketing Debate: Should the FDA ban trans fats from food Important Terms 121
products? 85 Discussion and Review Questions 121
Video Case 4.1 Theo Chocolate Makes a Sweet
3-7b Cultural Values 86
Difference 121
3-7c Consumerism 88
Case 4.2 Blue Bell Creameries Moo’ves Ahead after
Summary 88 Listeria Crisis 122
Important Terms 89 Strategic Case 2 REI: An Ethical Consumer
Discussion and Review Questions 90 Cooperative 123

Part 3: Marketing Research and Target Market Analysis 129

Chapter 5: Marketing Research and 5-1 The Importance of Marketing Research 132
Information Systems 130 5-2 Types of Research 133
5-2a Exploratory Research 134
Marketing Insights: SamplingLab: Marketing Research Goes
5-2b Conclusive Research 135
Retail 131

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 viii Contents

5-3 The Marketing Research Process 136 6-3 Step 1: Identify the Appropriate Targeting Strategy 168
5-3a Locating and Defining Problems 6-3a Undifferentiated Targeting Strategy 168
or Research Issues 137 6-3b Concentrated Targeting Strategy through
5-3b Designing the Research Project 137 Market Segmentation 168
5-3c Collecting Data 138 Going Green: 1 Hotel Stands for Green Luxury 170
5-3d Interpreting Research Findings 147 6-3c Differentiated Targeting Strategy through
5-3e Reporting Research Findings 148 Market Segmentation 171
Snapshot: Top 10 Challenges for Marketing 6-4 Step 2: Determine Which Segmentation Variables
Researchers 149 to Use 172
5-4 Using Technology to Improve Marketing Information 6-4a Variables for Segmenting Consumer
Gathering and Analysis 149 Markets 172
5-4a Marketing Information Systems 150 Marketing Debate: Facial Recognition and Privacy 176
5-4b Databases 150 Snapshot: Who buys from food trucks? 178
5-4c Big Data 151 6-4b Variables for Segmenting Business
5-4d Marketing Analytics 153 Markets 178
Emerging Trends in Marketing: Marketing Research Embraces 6-5 Step 3: Develop Market Segment Profiles 180
Analytics 153 6-6 Step 4: Evaluate Relevant Market Segments 180
5-4e Marketing Decision Support Systems 154 6-6a Sales Estimates 180
5-5 Issues in Marketing Research 154 6-6b Competitive Assessment 181
5-5a The Importance of Ethical Marketing 6-6c Cost Estimates 182
Research 154 6-7 Step 5: Select Specific Target Markets 182
5-5b International Issues in Marketing 6-8 Developing Sales Forecasts 182
Research 155 6-8a Executive Judgment 183
Marketing Debate: Anonymous Data Can Still Find You 155 6-8b Surveys 183
Summary 157 6-8c Time Series Analysis 183
Important Terms 158 6-8d Regression Analysis 184
Discussion and Review Questions 158 6-8e Market Tests 184
Video Case 5.1 Big Boom Theory: Marketing Research 6-8f Using Multiple Forecasting Methods 185
Targets Baby Boomers 159
Summary 185
Case 5.2 Largest Toymaker in the World: Lego Builds on
Important Terms 186
Past Success 160
Discussion and Review Questions 187
Video Case 6.1 Family-Owned Ski Butternut Targets Family
Chapter 6: Target Markets: Segmentation Skiers 187
and Evaluation 164 Case 6.2 Mattel Uses Market Segmentation to Stay
Marketing Insights: Carnival’s Ten-Brand Targeting on Top 188
Strategy 165 Strategic Case 3 Home Depot Builds on Research,
6-1 What Are Markets? 166 Segmentation, and Targeting 189
6-2 Target Market Selection Process 167

Part 4: Buying Behavior, Global Marketing, and Digital Marketing 193

Chapter 7: Consumer Buying Behavior 194 7-2a Consumer Decision Making 199
Marketing Insights: Need Another Holiday? Marketers
7-2b Consumer Level of Involvement 201
at Amazon and Alibaba Think So 195 7-3 Situational Influences on the Buying Decision
7-1 Consumer Buying Decision Process 196 Process 201
7-1a Problem Recognition 197 7-4 Psychological Influences on the Buying Decision
7-1b Information Search 197 Process 203
7-1c Evaluation of Alternatives 198 7-4a Perception 203
7-1d Purchase 198 7-4b Motives 205
7-1e Postpurchase Evaluation 199 7-4c Learning 207
7-2 Types of Consumer Decision Making and Level 7-4d Attitudes 207
of Involvement 199 7-4e Personality and Self-Concept 209

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 Contents ix

Entrepreneurship in Marketing: What’s a “Glam Bag?” Ipsy 8-5 Reliance on the Internet and other Technology 246
Knows 210 Summary 248
7-4f Lifestyles 210 Important Terms 250
7-5 Social Influences on the Buying Decision Discussion and Review Questions 250
Process 211 Video Case 8.1 Will Apple Pay Pay Off for Retailers? 250
7-5a Roles 211 Case 8.2 General Electric Goes Social to Reach Business
7-5b Family Influences 211 Buyers 251
Snapshot: How much would you pay for good coffee? 211
7-5c Reference Groups 213
7-5d Opinion Leaders 214 Chapter 9: Reaching Global Markets 256
7-5e Social Classes 214 Marketing Insights: Developing Countries Prove Lucrative
7-5f Culture and Subcultures 216 for Unilever 257
Emerging Trends in Marketing: How Global Brands Mark the 9-1 The Nature of Global Marketing Strategy 258
Lunar New Year 219 9-2 Environmental Forces in Global Markets 259
7-6 Consumer Misbehavior 219 9-2a Sociocultural Forces 259
Summary 220 Going Green: A Recipe for Biofuels: Algae 260
Important Terms 222 9-2b Economic Forces 261
Discussion and Review Questions 222 Snapshot: Top 15 Happiest Countries 261
Video Case 7.1 How Ford Drives Future Innovation 222 9-2c Political, Legal, and Regulatory Forces 264
Case 7.2 Disney Markets to the Young and the Young 9-2d Ethical and Social Responsibility Forces 266
at Heart 223 9-2e Competitive Forces 268
9-2f Technological Forces 269
9-3 Regional Trade Alliances, Markets,
Chapter 8: Business Markets and Agreements 269
and Buying Behavior 228 9-3a The North American Free Trade
Marketing Insights: Why Live Oak Bank Targets Small Agreement (NAFTA) 270
Businesses 229 9-3b The European Union (EU) 270
8-1 Business Markets 230 9-3c The Southern Common Market
8-1a Producer Markets 230 (MERCOSUR) 272
8-1b Reseller Markets 231 9-3d The Asia-Pacific Economic Cooperation
8-1c Government Markets 232 (APEC) 272
8-1d Institutional Markets 233 9-3e Association of Southeast Asian Nations
8-2 Using the North American Industry Classification (ASEAN) 273
System to Identify and Assess Business Customers 233 9-3f The World Trade Organization (WTO) 274
8-3 Dimensions of Marketing to Business Customers 235 9-4 Modes of Entry into International Markets 274
8-3a Characteristics of Transactions with Business 9-4a Importing and Exporting 275
Customers 235 9-4b Trading Companies 276
8-3b Attributes of Business Customers 236 9-4c Licensing and Franchising 277
8-3c Primary Concerns of Business 9-4d Contract Manufacturing 277
Customers 236 9-4e Joint Ventures 278
Going Green: Government Buyers Go-Go-Go for Greener 9-4f Direct Ownership 279
Buses 238 9-5 Global Organizational Structures 280
8-3d Methods of Business Buying 239 9-5a Export Departments 280
8-3e Types of Business Purchases 239 9-5b International Divisions 281
8-3f Demand for Business Products 240 9-5c Internationally Integrated Structures 282
Emerging Trends in Marketing: LP Revival Boosts Vinyl Record 9-6 Customization Versus Globalization of International
Manufacturers 241 Marketing Mixes 283
8-4 Business Buying Decisions 242 Emerging Trends in Marketing: Can Netflix Conquer the World? 285
8-4a The Buying Center 242 Summary 285
8-4b Stages of the Business Buying Decision Important Terms 286
Process 243 Discussion and Review Questions 286
Snapshot: How much is sole sourcing used? 245 Video Case 9.1 Alibaba and Global E-Commerce: Should
8-4c Influences on the Business Buying Amazon Be Afraid? 287
Decision Process 245 Case 9.2 NFL Goes Global: From Soccer
to Football? 288

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 x Contents

Chapter 10: Digital Marketing 10-5a Product Considerations 310

10-5b Distribution Considerations 311
and Social Networking 294 Entrepreneurship in Marketing: Instacart: New Way to ‘Bring
Marketing Insights: GE: E-Connecting the World 295 Home the Bacon’ 312
10-1 Defining Digital Marketing 296 10-5c Promotion Considerations 312
10-2 Growth and Benefits of Digital Marketing 297 10-5d Pricing Considerations 312
10-3 Types of Consumer-Generated Marketing and Digital 10-6 Ethical and Legal Issues 313
Media 298 10-6a Privacy 313
10-3a Social Networks 299 10-6b Online Fraud 315
Emerging Trends in Marketing: Iceland’s Cool Play to Drive 10-6c Intellectual Property 315
Tourism 299
Summary 316
Snapshot: Cost per Facebook Click 301 Important Terms 317
10-3b Blogs and Wikis 302 Discussion and Review Questions 318
10-3c Media-Sharing Sites 303 Video Case 10.1 Zappos Drives Sales through Relationship
10-3d Virtual Gaming Sites 305 Building on Social Media 318
10-3e Mobile Marketing 305 Case 10.2 The Challenges of Intellectual Property in Digital
10-3f Applications and Widgets 307 Marketing 319
10-4 Changing Digital Media Behaviors of Consumers 308 Strategic Case 4 Eaton Corporation: Experts at Targeting
10-4a Online Consumer Behavior 308 Different Markets 320
10-5 E-Marketing Strategy 310

Part 5: Product Decisions 327

Chapter 11: Product Concepts, 11-7 Packaging 351

11-7a Packaging Functions 351
Branding, and Packaging 328 11-7b Major Packaging Considerations 352
Marketing Insights: Shinola Is “Built in Detroit” and Is No 11-7c Packaging and Marketing Strategy 353
Longer Shoe Polish 329 11-8 Labeling 355
11-1 What is a Product? 330
Summary 357
Snapshot: Are You Buying Less Music? 331
Important Terms 358
11-2 Classifying Products 331 Discussion and Review Questions 358
11-2a Consumer Products 332 Video Case 11.1 GaGa: Not Just a Lady 359
11-2b Business Products 334 Case 11.2 Hilton Worldwide Expands to New Brands
11-3 Product Line and Product Mix 336 and New Markets 360
11-4 Product Life Cycles and Marketing Strategies 337
11-4a Introduction 337
11-4b Growth 338
Chapter 12: Developing and Managing
11-4c Maturity 339 Products 364
11-4d Decline 340 Marketing Insights: Prettie Girls! A One World Vision 365
Emerging Trends in Marketing: Marketing Marvel’s Cinematic 12-1 Managing Existing Products 366
Universe 341 12-1a Line Extensions 366
11-5 Product Adoption Process 341 12-1b Product Modifications 367
11-6 Branding 342 12-2 Developing New Products 369
11-6a Value of Branding 343 12-2a Idea Generation 370
Marketing Debate: Should the Public Know Who’s Funding 12-2b Screening 371
Research and Advocacy? 343 12-2c Concept Testing 371
11-6b Brand Equity 344 12-2d Business Analysis 372
11-6c Types of Brands 346 12-2e Product Development 373
11-6d Selecting a Brand Name 347 Entrepreneurship in Marketing: Jessica Alba’s Honest
11-6e Protecting a Brand 348 Company Launches Affordable and Safe Beauty
11-6f Branding Strategies 349 and Wellness Products 373
11-6g Brand Extensions 349 12-2f Test Marketing 374
11-6h Co-Branding 350 12-2g Commercialization 375
11-6i Brand Licensing 351 Snapshot: Recent Top 5 Most Memorable Products 377

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 Contents xi

12-3 Product Differentiation through Quality, Design, 13-2e Client-Based Relationships 395
and Support Services 377 13-2f Customer Contact 396
12-3a Product Quality 377 Emerging Trends in Marketing: How USAA Delivers Services
12-3b Product Design and Features 378 through Mobile Apps 396
12-3c Product Support Services 379 13-3 Developing and Managing Marketing Mixes
Going Green: Bambike: World’s Greenest Bicycle 379 for Services 397
12-4 Product Positioning and Repositioning 380 13-3a Development of Services 398
12-4a Perceptual Mapping 380 13-3b Distribution of Services 399
12-4b Bases for Positioning 381 13-3c Promotion of Services 400
12-4c Repositioning 382 Entrepreneurship in Marketing: Helping Girl Scouts Hone
12-5 Product Deletion 382 Entrepreneurial Skills 402
12-6 Organizing to Develop and Manage Products 383 13-3d Pricing of Services 402
Snapshot: Airlines are charging higher add-on fees 403
Summary 384
Important Terms 385
13-4 Service Quality 403
Discussion and Review Questions 386 13-4a Customer Evaluation of Service Quality 404
Video Case 12.1 Sriracha Heats Up the Hot Sauce 13-4b Delivering Exceptional Service Quality 406
Market 386 13-4c Analysis of Customer Expectations 406
Case 12.2 Quesalupa! Crunchy and All that Cheese from 13-5 Nonprofit Marketing 408
Taco Bell 387 13-5a How Is Nonprofit Marketing Different? 408
13-5b Nonprofit Marketing Objectives 409
Chapter 13: Services Marketing 390 13-5c Developing Nonprofit Marketing
Strategies 409
Marketing Insights: McDonald’s Markets All-Day Breakfast,
Finally! 391 Summary 411
Important Terms 412
13-1 The Growth and Importance of Services 392
Discussion and Review Questions 412
13-2 Characteristics of Services 393 Video Case 13.1 Mike Boyle’s Services Are Not
13-2a Intangibility 393 for Everyone 413
13-2b Inseparability of Production and Case 13.2 American Express Delivers Service with
Consumption 394 Calls, Tweets, and Apps 414
13-2c Perishability 394 Strategic Case 5 Nike Runs the Innovation Race
13-2d Heterogeneity 395 Every Day 415

Part 6: Distribution Decisions 419

14-4 Strategic Issues in Marketing Channels 435
Chapter 14: Marketing Channels and 14-4a Competitive Priorities in Marketing
Supply-Chain Management 420 Channels 435
Marketing Insights: Farmgirl Flowers Speeds Blooms 14-4b Channel Leadership, Cooperation,
from Farm to Vase 421 and Conflict 436
14-1 Foundations of the Supply Chain 422 14-4c Channel Integration 439
14-2 The Role of Marketing Channels in 14-5 Physical Distribution in Supply-Chain
Supply Chains 424 Management 440
14-2a The Significance of Marketing Channels 425 14-5a Order Processing 442
14-2b Types of Marketing Channels 426 14-5b Inventory Management 442
Emerging Trends in Marketing: While Some Tourist Seek 14-5c Materials Handling 443
Adventure, Others Want to Go Shopping 428 Snapshot: Greatest Concern about Distribution
14-2c Selecting Marketing Channels 431 Risks 444
14-3 Intensity of Market Coverage 433 14-5d Warehousing 444
14-3a Intensive Distribution 433 14-5e Transportation 445
14-3b Selective Distribution 434 Marketing Debate: Online Retailing and the
14-3c Exclusive Distribution 435 Environment 447

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 xii Contents

14-6 Legal Issues in Channel Management 448 Emerging Trends in Marketing: See It on Social Media? Buy It
14-6a Restricted Sales Territories 449 on Social Media 469
14-6b Tying Agreements 449 Snapshot: How do you use your smartphone when
14-6c Exclusive Dealing 450 you shop? 470
14-6d Refusal to Deal 450 15-3c Retail Positioning 470
Summary 450 15-3d Store Image 470
Important Terms 452 15-3e Category Management 472
Discussion and Review Questions 452 15-4 Direct Marketing, Direct Selling, and Vending 472
Video Case 14.1 Taza Cultivates Channel Relationships 15-4a Direct Marketing 472
with Chocolate 453 15-4b Direct Selling 475
Case 14.2 Procter & Gamble Tunes Up Channels 15-4c Automatic Vending 476
and Transportation 454 15-5 Franchising 476
15-6 Wholesaling 478
Chapter 15: Retailing, Direct 15-6a Services Provided by Wholesalers 479
Entrepreneurship in Marketing: Counter Culture Coffee Brews
Marketing, and Wholesaling 458 up Wholesale Success 479
Marketing Insights: Gulp! 7-Eleven Slurps up Convenience 15-6b Types of Wholesalers 480
Store Business 459
Summary 484
15-1 Retailing 460 Important Terms 486
15-2 Major Types of Retail Stores 461 Discussion and Review Questions 487
15-2a General-Merchandise Retailers 461 Video Case 15.1 L.L.Bean: Open 24/7, Click or Brick 487
15-2b Specialty Retailers 465 Case 15.2 Dick’s Sporting Goods Scores with Stores within
15-3 Strategic Issues in Retailing 466 Stores 488
15-3a Location of Retail Stores 466 Strategic Case 6 IKEA Makes the Most of Its Marketing
15-3b Retail Technology 468 Channels 489

Part 7: Promotion Decisions 495

Chapter 16: Integrated Marketing 16-5 Selecting Promotion Mix Factors 510
Communications 496 16-5a Promotional Resources, Objectives,
and Policies 510
Marketing Insights: Relax and Recline: La-Z-Boy’s
16-5b Characteristics of the Target Market 511
IMC Strategy 497
16-5c Characteristics of the Product 511
16-1 The Nature of Integrated Marketing
16-5d Costs and Availability of Promotional
Communications 498
Methods 512
16-2 Promotion and the Communication Process 499
16-5e Push and Pull Channel Policies 513
16-3 The Role and Objectives of Promotion 501
16-6 The Impact of Word-of-Mouth Communications
16-3a Create Awareness 502
on Promotion 514
16-3b Stimulate Demand 503
Emerging Trends in Marketing: Mattress Direct: Sleep Goes
16-3c Encourage Product Trial 504 Viral 516
16-3d Identify Prospects 504 16-7 Product Placement as Promotion 516
16-3e Retain Loyal Customers 504 16-8 Criticisms and Defenses of Promotion 517
16-3f Facilitate Reseller Support 504 16-8a Is Promotion Deceptive? 517
16-3g Combat Competitive Promotional Efforts 505 16-8b Does Promotion Increase Prices? 517
16-3h Reduce Sales Fluctuations 505 Snapshot: Top Brands Featured in Movies 517
16-4 The Promotion Mix 506 16-8c Does Promotion Create Needs? 518
16-4a Advertising 506 16-8d Does Promotion Encourage Materialism? 518
16-4b Personal Selling 507 16-8e Does Promotion Help Customers without
16-4c Public Relations 508 Costing Too Much? 519
16-4d Sales Promotion 509 16-8f Should Potentially Harmful Products
Entrepreneurship in Marketing: How to Get “Ginned Up”
Be Promoted? 519
at Home 510

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 Contents xiii

Summary 519 18-2e Overcoming Objections 565

Important Terms 520 18-2f Closing the Sale 565
Discussion and Review Questions 521 18-2g Following Up 565
Video Case 16.1 Napoletana: Taking a Bite at WOM 18-3 Types of Salespeople 565
Promotion 521
18-3a Sales Structure 565
Case 16.2 Because You’re Worth It: IMC at L’Oréal 522
18-3b Support Personnel 566
18-4 Team Selling and Relationship Selling 567
Chapter 17: Advertising and Public
18-4a Team Selling 567
Relations 528 18-4b Relationship Selling 567
Marketing Insights: POM Wonderful: Crazy Healthy 529 18-5 Sales Force Management 568
17-1 The Nature and Types of Advertising 530 18-5a Establishing Sales Force Objectives 569
Marketing Debate: Is Native Advertising Trustworthy? 532 Snapshot: Top Challenges for Inside Sales
17-2 Developing an Advertising Campaign 533 Managers 569
17-2a Identifying and Analyzing the Target 18-5b Determining Sales Force Size 570
Audience 534 18-5c Recruiting and Selecting Salespeople 570
17-2b Defining the Advertising Objectives 534 18-5d Training Sales Personnel 571
17-2c Creating the Advertising Platform 535 18-5e Compensating Salespeople 573
17-2d Determining the Advertising 18-5f Motivating Salespeople 575
Appropriation 535 18-5g Managing Sales Territories 576
17-2e Developing the Media Plan 536 18-5h Controlling and Evaluating Sales
Snapshot: Top Ten Advertisers 538 Force Performance 577
17-2f Creating the Advertising Message 540 18-6 Sales Promotion 577
Going Green: Natural Claims for Cigarettes: Blowing
18-7 Consumer Sales Promotion Methods 578
Smoke? 542
18-7a Coupons 578
17-2g Copy 542
18-7b Cents-Off Offers 580
17-2h Artwork 543
18-7c Money Refunds 581
17-2i Executing the Campaign 544
18-7d Rebates 581
17-2j Evaluating Advertising Effectiveness 544
18-7e Shopper, Loyalty, and Frequent-User
17-3 Who Develops the Advertising Campaign? 546
Incentives 581
17-4 Public Relations 547
Marketing Debate: The Advantages of Customer-Loyalty
17-5 Public Relations Tools 548
Programs 582
17-6 Evaluating Public Relations Effectiveness 549
18-7f Point-of-Purchase Materials and
17-6a Dealing with Unfavorable Public
Demonstrations 582
Relations 550
18-7g Free Samples 583
Summary 551 18-7h Premiums 583
Important Terms 552
18-7i Consumer Contests 583
Discussion and Review Questions 552
18-7j Consumer Games 583
Video Case 17.1 Scripps Networks Interactive: An Expert
at Connecting Advertisers with Programming 553 18-7k Sweepstakes 584
Case 17.2 Greenwashing Harms Companies and 18-8 Trade Sales Promotion Methods 584
Consumers 554 18-8a Trade Allowances 584
18-8b Cooperative Advertising and Dealer
Chapter 18: Personal Selling and Sales Listings 585
Promotion 558 18-8c Free Merchandise and Gifts 585
18-8d Premium Money 585
Marketing Insights: Who Knew? The Success of Product
Sampling 559 18-8e Sales Contest 586
18-1 The Nature and Goals of Personal Selling 560 Summary 586
Entrepreneurship in Marketing: Scentsy: The Sweet Smell of Important Terms 587
Success 561 Discussion and Review Questions 587
18-2 Steps of the Personal Selling Process 562 Video Case 18.1 Nederlander Gives Audiences a Reason
18-2a Prospecting 562 for a Standing Ovation 588
Case 18.2 Mistine’s Mystique: Great Promotional
18-2b Preapproach 563
Strategies 589
18-2c Approach 564 Strategic Case 7 Patagonia Climbs into the World
18-2d Making the Presentation 564 of IMC 590

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 xiv Contents

Part 8: Pricing Decisions 595

Chapter 19: Pricing Concepts 596 Chapter 20: Setting Prices 626
Marketing Insights: Smells like a Rat: The Gray Market Marketing Insights: Primark Profits from Low Prices and Fast
for Luxury Perfumes 597 Fashion 627
19-1 The Importance of Price in Marketing 598 20-1 Development of Pricing Objectives 628
Marketing Debate: Surge Pricing: Is 20-1a Survival 629
Uber Expensive? 599 20-1b Profit 629
19-2 Price and Nonprice Competition 599 20-1c Return on Investment 629
19-2a Price Competition 599 20-1d Market Share 629
19-2b Nonprice Competition 600 20-1e Cash Flow 630
19-3 Demand Curves and Price Elasticity 601 20-1f Status Quo 630
19-3a The Demand Curve 601 20-1g Product Quality 630
19-3b Demand Fluctuations 602 20-2 Assessment of the Target ­Market’s Evaluation
19-3c Assessing Price Elasticity of Demand 602 of Price 631
Snapshot: Family Spending on Gasoline 604 Snapshot: More Money, More Fun at the Magic
19-4 Demand, Cost, and Profit Relationships 604 Kingdom? 631
19-4a Marginal Analysis 604 20-3 Evaluation of Competitors’ Prices 632
19-4b Break-Even Analysis 607 20-4 Selection of a Basis for Pricing 632
19-5 Factors that Affect Pricing Decisions 608 20-4a Cost-Based Pricing 633
19-5a Organizational and Marketing 20-4b Demand-Based Pricing 634
Objectives 609 Entrepreneurship in Marketing: On the Clock
19-5b Types of Pricing Objectives 609 at Ziferblat 635
19-5c Costs 609 20-4c Competition-Based Pricing 636
19-5dMarketing-Mix Variables 610 20-5 Selection of a Pricing Strategy 636
19-5e Channel Member Expectations 611 20-5a Differential Pricing 636
19-5f Customers’ Interpretation and 20-5b New-Product Pricing 638
Response 611 20-5c Product-Line Pricing 639
19-5g Competition 613 20-5d Psychological Pricing 640
Emerging Trends in Marketing: Harley-Davidson ‘Light’: 20-5e Professional Pricing 643
The Econo Model 613 20-5f Promotional Pricing 644
19-5h Legal and Regulatory Issues 615 Emerging Trends in Marketing: Millennial Homebuyers:
19-6 Pricing for Business Markets 616 Are They Looking for Less, for Less? 644
19-6a Price Discounting 616 20-6 Determination of a Specific Price 645
19-6b Geographic Pricing 617 Summary 645
19-6c Transfer Pricing 618 Important Terms 647
Discussion and Review Questions 647
Summary 618
Video Case 20.1 Warby Parker Puts Affordable
Important Terms 620
Eyewear in Focus 647
Discussion and Review Questions 620
Case 20.2 Under Armour Uses Pricing in the
Video Case 19.1 Louis Vuitton Bags the Value
Race for Market Share 648
Shopper 621
Strategic Case 8 To Rent or to Own? That Is the
Case 19.2 CVS: Continuous Value Strategy 622
Question 649

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 available only online: B-7 Performance Evaluation B-7
B-7a Performance Standards and Financial
Appendix A: Financial Analysis in Marketing Controls B-7
A-1 The Income Statement A-1 B-7b Measuring Actual Performance B-8
A-1a Performance Ratios A-5
A-1b Operating Ratios A-5 Appendix C: Careers in Marketing C-1
A-1c Inventory Turnover Rate A-5 C-1 Career Choices are Major Life Choices C-1
A-1d Return on Investment A-7 C-1a Personal Factors Influencing Career
A-2 Price Calculations A-7 Choices C-1
A-2a Markups A-7 C-2 Job Search Activities C-2
A-2b Markdowns A-9 C-3 Planning and Preparation C-4
C-4 The Résumé C-4
Appendix B: Sample Marketing Plan B-1 C-4a The Job Interview C-6
B-1 Executive Summary B-1 Snapshot: Most Common Mistakes at Job Interviews C-6
B-2 Environmental Analysis B-1 C-4b After the Interview C-7
B-2a The Marketing Environment B-1 C-4c After the Hire C-7
B-2b Target Market(s) B-2 C-5 Types of Marketing Careers C-8
B-2c Current Marketing Objectives and C-5a E-Marketing and Customer Relationship
Performance B-3 Management C-8
B-3 Swot Analysis B-3 C-5b Social Media Manager C-9
B-3a Strengths B-3 C-5c Marketing Research C-9
B-3b Weaknesses B-3 C-5d Sales C-10
B-3c Opportunities B-4 C-5e Industrial Buying C-11
B-3d Threats B-4 C-5f Public Relations C-12
B-3e Matching Strengths to Opportunities/ C-5g Distribution Management C-12
Converting Weaknesses and Threats B-4 C-5h Product Management C-13
B-4 Marketing Objectives B-5 C-5i Advertising C-13
B-5 Marketing Strategies B-5 C-5j Retail Management C-14
B-5a Target Market(s) B-5 C-5k Direct Marketing C-15
B-5b Marketing Mix B-6
B-6 Marketing Implementation B-6 Glossary 654
B-6a Marketing Organization B-6 Name Index 666
B-6b Activities, Responsibilities, and Organization Index 668
Timetables for Completion B-6 Subject Index 672

xv

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72896_fm_hr_i-xxxii.indd 16 22/11/16 7:30 pm
 Preface

MARKETING: A KEY TO SUCCESS

This edition of Marketing has been completely revised and updated to reflect dynamic changes
in marketing and its environment. Marketing knowledge is important to every student’s success,
regardless of their career path. There is significant evidence that marketing is becoming a more
important function in organizations, and students will need to be prepared to understand oppor-
tunities and challenges from a marketing perspective. This new edition provides the concepts,
frameworks, and engagement in decision-making experiences that will prepare students for
their careers. It is not enough to learn terminology and memorize concepts. To support success
we provide a portfolio of learning devices to advance learning and critical thinking skills.
Active learning requires a holistic understanding with examples, exercises, and cases facil-
itated by MindTap, our online teaching experience. MindTap provides relevant assignments
that guide students to analyze, apply, and improve thinking, allowing them to measure skills
and outcomes with ease. This means that students using this book should develop respect for
the importance of marketing and understand that the learning of marketing requires in-depth
knowledge and the mastering of essential concepts. We have made the learning experience as
fresh as possible with available research, new examples and boxes, as well as illustrations.
We address how technology is changing the marketing environment. As students prepare
for the new digital world, they will also need to practice developing communication skills,
especially teamwork, that go beyond their personal interaction with digital devices. Digital
media can lower costs, generate awareness, build better relationships with customers, and
achieve improved marketing research. Apps that connect consumers with products are creating
opportunities for closer relationships. Buyers and sellers are entering zones of interdependency
and co-creation of products. The sharing economy, defined as an economic concept harnessing
peer-to-peer power and sharing underutilized resources such as automobiles, boats, and houses
to earn income, is exploding. For example, Airbnb—a website that links people with renters
of lodging accommodations—now has significantly more bookings each evening than Hilton.
We also provide numerous ancillary materials to aid in student comprehension of market-
ing concepts as well as to increase instructor resources for teaching this important material.
Online materials include quizzes, PowerPoint presentations, videos, and flashcards. Our mar-
keting video case series enables students to learn how real-world companies address market-
ing challenges. Our video series has been expanded to include YouTube videos that can bring
engagement and excitement to the classroom. Our Interactive Marketing Plan Worksheets and
video program provide students with practical knowledge of the challenges and the planning
process of launching a new product. Together these revisions and additional materials will
assist students in gaining a full understanding of pertinent marketing practices.
Online social networking has become an increasingly powerful tool for marketers. Most
discussions about marketing today bring up issues such as how digital media can lower costs,
improve communications, provide better customer support, and achieve improved marketing
research. All elements of the marketing mix should be considered when using digital media
and social networking. We discuss how digital media and social networking tools can create
effective digital marketing strategies that can enhance marketing efforts. In addition, the entire
book integrates important digital marketing concepts and examples where appropriate.
xvii

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 xviii Preface

We have paid careful attention to enhancing all key concepts in marketing and have built
this revision to be current and to reflect important changes in marketing. Our book is a market
leader because students find it readable and relevant. Our text reflects the real world of market-
ing and provides the most comprehensive coverage possible of important marketing topics.
Specific details of this extensive revision are available in the transition guide in the
Instructor’s Manual. We have also made efforts to improve all teaching ancillaries and stu-
dent learning tools. PowerPoint presentations continue to be a very popular teaching device,
and a special effort has been made to upgrade the PowerPoint program to enhance classroom
teaching. The Instructor’s Manual continues to be a valuable tool, updated with engaging
in-class activities and projects. The authors and publisher have worked together to provide
a comprehensive teaching package and ancillaries that are unsurpassed in the marketplace.
The authors have maintained a hands-on approach to teaching this material and revising
the text and its ancillaries. This results in an integrated teaching package and approach that is
accurate, sound, and successful in reaching students. The outcome of this involvement fosters
trust and confidence in the teaching package and in student learning outcomes. Student feed-
back regarding this textbook is highly favorable.

WHAT’S NEW TO THIS EDITION?

Our goal is to provide the most up-to-date content—concepts, examples, cases, exercises, and
data—possible. Therefore, in this revision there are significant changes that make learning
more engaging and interesting to the students. The following highlight the types of changes
that were made in this revision.
• Foundational content. Each chapter has been updated
MARkEting inSightS with the latest knowledge available related to frameworks,
Airbnb Facilitates the Sharing Lodging Experience concepts, and academic research. These additions have
been seamlessly integrated into the text. Many examples
are new and a review of footnotes at the ends of chapters
will reveal where new content has been added. Many of
the new examples and content changes have been updated
to 2016.
• Opening vignettes: Marketing Insights. All of the chap-
ter-opening vignettes are new or updated. They are writ-
ten to introduce the theme of each chapter by focusing on
actual entrepreneurial companies and how they deal with
real-world situations.
Letuve/Dreamstime.com

Airbnb has come far in the eight years it and Airbnb takes 3 percent of the booking
has been in business. The company started price when the property is rented out.
when founders Brian Chesky and Joe Geb- Despite its immense success, Airbnb
bia turned their apartment into a bed and believes it can create more value for more
Top Marketing Challenges
breakfast so they could afford to pay rent. customers. For instance, it began to offer
The founders had identified an unmet cus- Business Travel on Airbnb to concentrate 27% 27% 27%
27%
SNAPSHOT

tomer need: the desire to stay in less expen- on corporate clients. Airbnb claims it has
sive but homier lodgings. They launched the signed up 700 businesses including Google
• Boxed features. Each chapter includes two new or
Airbnb website in 2007 to connect travel- and Salesforce.com. It is especially popular 26%
updated boxed features that highlight green marketing,
ers to people in the area willing to rent out among new employees who are being put 26%
their couch or extra room. Like Uber, the car- up by an employer until they find a more
marketing entrepreneurs, emerging trends in marketing,
sharing service, Airbnb embraces the shar- permanent location.
25% 25%
ing economy concept that promotes the Not all stakeholders are happy about 25%
or controversial issues in marketing. The majority of the
renting of underutilized human and physi- Airbnb, however. Some cities and regula-
boxed features are new to this edition; a few have been
cal resources. It sells more rooms per night
than Hilton.
tors believe Airbnb encourages owners
of multiple properties to rent them in the
24%
significantly updated and revised to fit the themes of this
The target market was initially confer- short-term rather than turning them into New Quality Remaining Customer Quantifying Integration
ence attendees but soon expanded to all long-term residences—thus causing a dis- Business of Up-to-Date Acquisition Marketing’s of Marketing
edition.
types of travelers. Today Airbnb connects ruption in urban housing. However, Airbnb Development Leads with Marketing ROI Tools/Systems
travelers to lodgings in 34,000 cities across contends that it is creating customer value Technology
• New Snapshot features. The Snapshot features are new
190 countries. Those who wish to rent an in the form of less-expensive lodging for
n = +5,000 global marketers
and engage students by highlighting interesting, up-to-
extra room or house can set their own prices, travelers and additional income for renters.1

date statistics that link marketing theory to the real world. Source: Salesforce.com, 2015 State of Marketing Survey, p. 6.

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 Preface xix

• New research. Throughout the text we have updated content with the most recent research
that supports the frameworks and best practices for marketing.
• New illustrations and examples. New advertisements from well-known firms are
employed to illustrate chapter topics. Experiences of real-world companies are used to
exemplify marketing concepts and strategies throughout the text. Most examples are new
or updated to include digital marketing concepts as well as several new sustainable mar-
keting illustrations.
• End-of-chapter cases. Each chapter contains two cases, including a video case, profiling
firms to illustrate concrete application of marketing strategies and concepts. Many of our
video cases are new to this edition and are supported by current and engaging videos.

FEATURES OF THE BOOK

As with previous editions, this edition of the text provides a comprehensive and practical
introduction to marketing that is both easy to teach and to learn. Marketing continues to be
one of the most widely adopted introductory textbooks in the world. We appreciate the confi-
dence that adopters have placed in our textbook and continue to work hard to make sure that,
as in previous editions, this edition keeps pace with changes. The entire text is structured to
excite students about the subject and to help them learn completely and
efficiently.
• An organizational model at the beginning of each part provides a “road
map” of the text and a visual tool for understanding the connections
among various components.
• Objectives at the start of each chapter present concrete expectations
about what students are to learn as they read the chapter.
• Every chapter begins with an opening vignette. This feature provides an
example of the real world of marketing that relates to the topics covered
in the chapter. After reading the vignette, the student should be moti-
vated to want to learn more about concepts and strategies that relate to
the varying topics. Students will be introduced to such companies as
Airbnb, Primark, Farmgirl Flowers, and Dressbarn.
• Boxed features—Emerging Trends in Marketing and Going Green—
capture dynamic changes in marketing. These changes are influenc-
ing marketing strategies and customer behavior. Strong feedback from
adopters indicated the need for coverage in these areas.
The Marketing Environment | Chapter 3 67

• The Emerging Trends boxes cover such

EmErging TRENdS IN MARKETING marketing phenomena as fair trade, market-
Making Trade Fair ing analytics, and shopping tourism. Fea-
Fair Trade–certified organizations require factories to Consumers are embracing Fair Trade apparel and tured companies include Harley-Davidson,
meet different conditions. They must pay their workers a home goods as well. For instance, Bed Bath & Beyond
minimum wage in the country in which they are employed, quickly sold out of back-to-school supplies labeled as Fair
USAA, Marvel, and Netflix.
with the intention of working toward a “livable wage.” Trade–certified. This demonstrates consumers’ increased
A livable wage allows workers to afford basic necessi- concern for how goods are manufactured. In particular,
ties. Additionally, brands must pay a premium to factory Fair Trade certification focuses on improving the labor
workers. These premiums are placed in a collective bank conditions of factory workers.
account and are used for bonuses or to address commu- Although fair trade certification costs brands 1–5
nity needs. percent of what companies pay to factories, it is clear
The Fair Trade trend is gaining traction among fashion that demand is on the rise. Fair trade apparel and home
and home furnishings. After the Bangladesh factory col- furnishings have increased fivefold in the past few years,
lapsed in 2013, many apparel and home furnishing brands spurring more factories to work toward achieving certifica-
made a commitment to improve factory conditions. Twenty tion. Marketers monitoring the environment are finding the
brands have chosen to become Fair Trade certified. costs of Fair Trade well worth the benefits.a

© Stockphoto.com/CTR design LLC

sources such as business, trade, government, and general-interest publications; and marketing
research. The Internet has become a popular scanning tool because it makes data more acces-
sible and allows companies to gather needed information quickly. Environmental scanning
gives companies an edge over competitors in allowing them to take advantage of current trends.
However, simply gathering information about competitors and customers is not enough; com-
panies must know how to use that information in the strategic planning process. Managers must
be careful not to gather so much information that sheer volume makes analysis impossible.
Environmental analysis is the process of assessing and interpreting the information gath-
ered through environmental scanning. A manager evaluates the information for accuracy, tries
to resolve inconsistencies in the data, and, if warranted, assigns significance to the findings.
Evaluating this information should enable the manager to identify potential threats and oppor-
tunities linked to environmental changes. Understanding the current state of the marketing
environment
72896_fm_hr_i-xxxii.indd 19 and recognizing threats and opportunities that might arise from changes within it 22/11/16 7:30 pm
help companies in their strategic planning. A threat could be rising interest rates or commodity
 An Overview of Strategic Marketing | Chapter 1 23

Marketing Offers

BsWei/Shutterstock.com
1-7h
Many Exciting Career
Prospects
xx Preface From 25 to 33 percent of all civilian workers in
the United States perform marketing activities.
Planning, Implementing, and Evaluating MarketingThe marketing
Strategies field2 offers a variety
| Chapter 43 of interesting
and challenging career opportunities throughout
the world, such as personal selling, advertising,
packaging, transportation, storage, marketing • The Marketing Debate marginal feature discusses
Marketing Debate research, product development, social media
management, wholesaling, and retailing. All controversial issues related to drugstores selling
industries have marketing positions, including
ISSUE: Should Drugstores Sell Tobacco Products?
health care, sports, consumer products, nonprof- tobacco products, banning trans fat from food
When CVS announced it would stop selling tobacco prod- its, government,
can do is address the root causes as well
and help smokers as agriculture and com-
quit.” products, facial recognition and privacy, the truth-
ucts in 2014, the company acknowledged that this change Walgreen’s and other drug modities
stores sell such as the
numerous oil and gas industry. When
smoking-
in policy would cost it $2 billion in annual revenues. Still, cessation products, but they unemployment
also tend to displayis high,
packs sales
of positions remain fulness of native advertising, and surge pricing.
CVS wanted to highlight its commitment to helping cus- cigarettes near checkout counters,
among where they can
the most catch
attractive job opportunities.
tomers stay healthy—and, in fact, it renamed the company the eye of shoppers. Marketing positions are among the most secure
CVS Health to spotlight that mission. Some health advo- Even if CVS’s competitors decidebecause
positions to stop selling
of the need to manage customer Marketing Connects People through Technology
cates and state attorneys general praised the move and tobacco products, the change in policy might not makemany individuals work- Consumers can now wear the Internet on the go in the form of smart watches.
relationships. In addition,
called on CVS’s competitors to follow suit by dropping a huge difference in smoking rates because more ciga- Smart watches allow users to make calls, receive notifications, search for
ing for nonbusiness organizations engage in mar- directions, and surf the Internet.
cigarettes, cigars, and other tobacco products. rettes are sold at gas stations and convenience stores
However, Walgreens and other drug retailers have not
keting activities to promote political, educational,
than in drug stores. Still, should stores that specialize
followed CVS’s lead. According to a Walgreen’s statement: in health-related goods andcultural,
services church,
continue civic,
to mar-and charitable activities.
“We believe that if the goal is to truly reduce tobacco use ket tobacco products, which It is
area legal
mistake to believe
but proven to bethat the only way to contribute to society is to work for a nonprofit.
in America, then the most effective thing retail pharmacies unhealthy?a Without businesses the economic system that supports jobs and contributes to a standard of
living would not exist otherwise. Consider that 5 percent of charitable contributions are corpo-
rate donations from companies such as Walmart. Many large companies also form foundations
© Stockphoto.com/CTR design LLCFoundations donate 15 percent of all charitable contributions in
to serve their communities.
from reaching its objectives. Threats must be acted upon to prevent them from limiting the
organization’s capabilities. Opportunities and threats can stem from many sources within the
• The Going Green boxes introduce stu-
environment. When a competitor’s introduction of a new product threatens a company, a firm
may require a defensive strategy. If the company can develop and launch a new product that
dents to such topics as bio-plastics, algae
meets or exceeds the competition’s offering, it can transform the threat into an opportunity. GoinG Green
It is important to use SWOT analysis to explore the internal organization and the marketing
biofuels, and natural claims on cigarette
environment without judgment, focusing on issues that could lead to the greatest possibilities
Lego: Building with Bio-Plastics
of success. This means using some resources for open-minded examination rather than looking
packaging. Featured companies include
for information to confirm current beliefs.18
The Lego Company has announced its most daring move million toward developing the Lego Sustainable Materi-
Campbell’s, Walmart, and 1 Hotel.
2-3b First Mover and Late-Mover Advantage
yet in its sustainability efforts: getting rid of plastic. The als Centre in Denmark. In particular, Lego is looking for
Lego Company makes 60 billion blocks a year using the oil- a substitute for oil-based plastics and believes bio-based
An important factor that marketers must consider when identifying organizational resources based plastic ABS. It is estimated that Lego goes through plastics may be the key.
and opportunities is whether the firm has the resources to cultivate a first-mover advantage, or 6,000 tons of plastic annually. The company has made a Unfortunately, not everyone is confident Lego will
is in a position to choose between developing a first-mover or late-mover advantage. strategic decision toward sustainability in its products. succeed. ABS plastic is easily moldable, and it is an
A first-mover advantage is the ability of an innovative company to achieve long-term competitive Lego has set the strategic goal of eliminating ABS plas- ideal composition for ensuring that each Lego piece fits
advantages by being the first to offer a certain product in the marketplace. Being the first to tics by 2030. The company estimates that about 75 percent together. Early forays into plant-based plastics show that
enter a market helps a company build a reputation as a pioneer and market leader. Amazon and
of its carbon emissions come from extracting and refining this type of bio-plastic has difficulty clicking, sticking, and
eBay were both first-mover start-ups that remain leaders as they grow and innovate ahead of
the competition. For a first mover, the market is, for at least a short period, free of competition
oil for its toys. Eliminating this type of plastic would there- maintaining its shape. However, Lego is confident that its
as potential competitors work to develop a rival product. Because consumers have no choice fore make a significant impact on the firm’s environmental commitment will pay off. It views its goal as customer-
footprint.| Chapter 1 oriented because it©will
Stockphoto.com/CTR design LLC
help create a more sustainable
initially, being a first mover also helps establish customer brand loyaltyAn in Overview
cases when first-mover advantage The 15
switch- Marketing
of Strategic
ing to another brand later may be costly or difficult. The first to develop a new product can also Legoofrealizes
ability it will
an innovative not be easy to completely redesign
company planet for future children.b
protect secrets and technology through patents. itstomost iconic
achieve product.
long-term com- That is why it is committing $150
There are risks, however, of being the first to enter a market. There are usually high cost petitive advantages by being the
first to offer a certain product in • The Entrepreneurship in Marketing feature focuses
Entrepreneurship in Marketing
outlays associated with creating a new product, including market research, product develop-
the marketplace
ment, production, and marketing—or buyer education—costs. Also, early sales growth may
not match predictions if the firm overestimates demand or fails to target marketing efforts cor- late-mover advantage The on the role of entrepreneurship and the need for
ability of later market entrants
Protein
rectly. Bar Restaurant:
The company Satisfying
runs the risk Consumers
that the product will fail due to market uncertainty, or that
the product might not completely meet consumers’ expectations or needs.
to achieve long-term competi- creativity in developing successful marketing
tive advantages by not being
Founder: Matt Matros
A late-mover advantage is the ability of later market entrants to achieve long-term com-
include burritos, salads, breakfast items,
the first rawajuices,
to offer certain strategies by featuring successful entrepreneurial
petitive advantages
Business: Protein by
Bar not being the first to offer a certain product
Restaurant and sideindishes.
a marketplace.
Matros chose product in a these
prices for marketplace
products
Founded: 2009, in Chicago, IL that would be reasonable for on-the-go consumers who companies like Protein Bar, Second City, Instacart,
Success: The Protein Bar restaurant has been featured in did not want to spend time making their own protein
numerous newspapers and has expanded to four cities. shakes. 72896_ch01_hr_001-031.indd 23 Honest Company, Counter Culture Coffee, and 7/29/16 4:53 PM

At 22, entrepreneur Matt Matros decided to drastically

The company has created publicity by recently team-
ing up with Chicago Bears wide receiver Brandon Marshall
Scentsy.
change his life. He lost 50 pounds through a strong regi- to promote a new Protein Bar drink called Crazy Stigma • Key term definitions appear in the margins to help
men
72896_ch02_hr_032-062.indd 43 of exercise and a high-protein diet. Afterward, he Green. For every drink purchased, $1 is donated to the 7/29/16 4:55 PM
decided to start the Chicago-based restaurant Protein Bar. Project 375 Foundation. Protein Bar has also received students build their marketing vocabulary.
To be successful, Matros had to select the right mix coverage in newspapers such as Washington Post and
of product, distribution, promotion, and price. Matros Chicago Tribune. The restaurant has expanded to Wash- • Figures, tables, photographs, advertisements, and
conceived of a casual dining restaurant that would offer ington D.C., Denver, and Boulder, Colorado. Matros has
healthy food options high in protein. Product offerings since become CEO of another company.a Snapshot features increase comprehension and
© Stockphoto.com/CTR design LLC stimulate interest.
1-5a Evolution of the Marketing Concept
• A complete chapter summary reviews the major topics discussed, and the list of important
The marketing concept may seem like an obvious approach to running a business. Yet while sat-
isfied consumers are necessary for business success, historically not all firms were successful
terms provides another end-of-chapter study aid to expand students’ marketing vocabulary.
in implementing this concept. The evolution of marketing has gone through three time periods,
including production, sales, and market orientation. While this is an oversimplification, these
• Discussion and review questions at the end of each chapter encourage further study and
frameworks help to understand marketing over time. There have always been companies that
exploration of chapter content.
embraced the marketing concept and focused on the interests of consumers.

The Production Orientation • Two cases at the end of each chapter help students understand the application of chapter
During the second half of the 19th century, the Industrial Revolution concepts. Oneinof the end-of-chapter cases is related to a video segment. Some examples of
was in full swing
the United States. Electricity, rail transportation, division of labor, assembly lines, and mass
production made it possible to produce goods more efficiently. With companies
new technology and highlighted
new in the cases are Dollar Shave Club, Alibaba, Blue Bell Creameries,
ways of using labor, products poured into the marketplace, where demand for manufactured
goods was strong. Although mass markets were evolving, firms were Mattel,
developingHilton
the abilityWorldwide, Zappos, Theo Chocolate, and CVS.
to produce more products, and competition was becoming more intense.
• A strategic case at the end of each part helps students integrate the diverse concepts that
The Sales Orientation have been discussed within the related chapters. Examples include REI, IKEA, Patagonia,
Sseko Designs, and Eaton. Appendices discuss marketing career opportunities, explore
While sales have always been needed to make a profit, during the first half of the 20th century
competition increased and businesses realized that they would have to focus more on selling
products to many buyers. Businesses viewed sales as the major means financial analysis
of increasing profits, and in marketing, and present a sample marketing plan.
this period came to have a sales orientation. Businesspeople believed that the most important
marketing activities were personal selling, advertising, and •distribution.
A comprehensive
Today, some people glossary defines more than 625 important marketing terms.
incorrectly equate marketing with a sales orientation. On the other hand, some firms still use
a sales orientation.

The Market Orientation

Although marketing history reveals that some firms have always produced products that con-
sumers desired, by the 1950s, both businesses and academics developed new philosophies
and terminology to explain why this approach is necessary for organizational success.22 This

72896_ch01_hr_001-031.indd 15 7/29/16 4:53 PM

72896_fm_hr_i-xxxii.indd 20 22/11/16 7:30 pm

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 ASSEMBLING.
1st.—Mount in order the following parts: fermeture nut, barrel nut,
hand guard, barrel, ejector, spring and cap, feed piece, feed piece
spring.
2nd.—Assemble the trigger, sear and sear spring, and then mount
them in guard.
3rd.—Mount the recoiling parts in receiver.

(a) Assemble extractor with breech block.

(b) Mount the firing pin, bringing it to its rearmost position
and turning head to left behind shoulder in breech block.
(c) Engage piston tang in the under slot of breech block. (Rear
face of tang should abut against the rear wall of slot, and
under tang of firing pin should engage in corresponding
groove in piston tang.)
(d) Turn fermeture nut to the open position by passing first
finger of left hand in ejection slot of receiver. (When in
the open position the ejection slot in the fermeture nut
coincides with the ejection slot in the receiver.)
(e) With the right hand grasp rear of piston assembled with
breech block, placing thumb on head of firing pin so as to
hold it turned to left behind shoulder of breech block.
(f) Insert piston assembled with breech block in rear of
receiver and push it forward with right hand until it
comes to a stop. (Its rear face will now be about 1½ inch
in front of rear of receiver.)
N.B.—It is imperative that the head of firing pin be turned
completely to the left, and that fermeture nut be at the
open position. The mechanism should slip into place
easily, forcing being neither necessary nor permissible.
(g)
 While pressing on the lower end of feed piece with the right
hand so as to bring it to its highest position, push
forward piston with left hand until breech is closed.
4th.—Insert recoil spring in piston and push forward, allowing a
few inches to project to rear of receiver.
5th.—Mount guard.

(a) Grasp pistol grip with right hand as for firing, making sure
that firing gear is properly mounted by pulling trigger
several times.
(b) Engage projecting end of recoil spring in its seat in the
guard.
(c) Bring the guard to a position under receiver so that the two
lugs on its head are opposite their mortises in rear of
receiver, the trunnions at the front being below and
slightly in advance of their sockets in the bottom of
receiver. In order that the end of recoil spring remains
engaged in its seat in the guard it may be held in place by
means of the end of the cocking handle shank.
(d) Engage lugs in their mortises and trunnions in their sockets
by raising guard vertically.
(e) Draw guard to rear until solidly seated in receiver.
(f) Screw up locking screw.
6th.—Mount cocking handle.

(a) Insert shank of cocking handle in opening in guard, the

knob inclined at 45 degrees to right, and push forward to
a stop.
(b) Throw knob to left to a stop.
(c) Push cocking handle forward until home, and then throw
knob to right and down as far as it will go.
In order to replace a defective extractor or firing pin
proceed as follows:—

1st.— Close breech.

2nd. Remove cocking handle.
— Remove guard.
3rd. Withdraw recoil spring.
—
Remove recoiling mechanism.
4th.
— Replace defective part by a spare, and mount by reversing
operations.
5th.
—
The extractor and extractor spring can also be removed without
stripping gun as follows:—

1st.— Insert an empty cartridge case in the ejection slot,

perpendicular to chamber.
2nd. Close breech gently, i.e., by holding it back with cocking
— handle, on to empty cartridge case, thus giving access to
extractor and extractor spring.
3rd. Remove extractor spring and extractor by means of hand
— extractor.
Replace defective part by a spare, cock the gun and withdraw
empty cartridge case.
 POINTS TO BE ATTENDED TO BEFORE
FIRING.
1. Cock gun.
2. Pass cleaning rod down the bore to make sure that barrel is
clear.
3. See that regulators of all available barrels are properly set.
4. Oil mechanism. A moderate quantity of oil will suffice. It is
useless to flood the mechanism. As the essential parts are sufficiently
accessible through the ejection slot and by opening the feed piece
cover, dismounting is not necessary.
5. Test action of both ejector and cartridge stop by pushing on
their points. They should work freely, their springs being elastic but
without stiffness.
6. Test action of mechanism by rapidly opening and closing breech
several times. It should work freely and smoothly.
 OPERATING THE GUN.
In firing, the prone position will be taken ordinarily, the barrel rest
being used to steady the gun.
In high grass or under conditions where more height is desirable,
ammunition boxes may be placed under the barrel rest so as to
increase height.
In short, any sort of rest available may be used, for instance, the
top of a parapet or the limb of a tree.
In going into action the following operations must be performed:—
(1) Set barrel rest.

(a) Free legs from their catches.

(b) Turn legs forward until at right angles to barrel.
(c) Open legs with a sharp movement such that the separators
catch in one another.
(d) Place the feet in desired position and force points into the
ground.
(2) Mount elevating mechanism.

(a) Place elevating mechanism foot on ground in such position

that it is at right angles to axis of gun.
(b) Bring gun to approximately the required elevation by
turning outer elevating screw.
(3) Take firing position.

(a) Take prone position, resting on the elbows.

(b) Grasp pistol grip and trigger with right hand, pressing
stock well into hollow of right shoulder.
(c) Grasp outer elevating screw with left hand.
(d)
 In case elevating gear is not used, left hand grasps stock to
rear of receiver and pulls shoulder strap down solidly
against shoulder.
(4) Cock gun.

(a) Throw cocking handle knob to left to a stop.

(b) Draw cocking handle to rear as far as possible with a sharp
quick movement.
(c) Return cocking handle to its original position, and set at
“R” for single shots, “A” for automatic and “S” for safety.
(5) Loading is ordinarily performed by a second operator, who
takes the prone position to the right of gun, with ammunition
conveniently at hand.

(a) Raise feed piece to its uppermost position by pushing up on

its lower extremity with left hand, placing thumb on feed
piece cover.
(b) With right hand introduce a feed strip into guides, cartridge
side down, and push home until the pawl catches.
N.B.—If gun is operated by but one man, loading will be found
more convenient if the elevating mechanism is not used; the firer
performs both operations of lifting the feed piece and introducing the
strip with the right hand, the left hand meanwhile steadying the gun
by grasping the stock.
(6) Firing.—The gun is fired by pulling the trigger.

(a) Single shots: Set cocking handle at “R” (repetition). One

shot is fired each time trigger is pulled.
(b) Automatic firing: Set cocking handle at “A” (automatic). If
trigger is held back the entire strip of 30 rounds is fired
automatically.
(c) Volley firing: Set cocking handle at “A” (automatic). The
trigger may be released after some 3, 5, or 10 rounds, as
circumstances require, aim quickly altered and firing
 resumed, i.e., the strip of 30 rounds is fired in volleys, as
required.
(d) Safety: Set cocking handle at “S” (safety) and remove strip,
unless firing is to be promptly resumed.
N.B.—The trigger must be released at the end of each strip, so that
the sear will hold the piston at the cocked position during the
introduction of the following strip. Otherwise, as soon as the feed
piece is raised preparatory to loading the breech will close,
necessitating recocking the gun before continuous firing.
(7) Unloading.—In order to remove a partially spent strip, proceed
as follows:—

(a) See that breech is open, cocking if necessary.

(b) Hold claw of pawl free from strip by pushing upon lower
extremity of feed piece with left hand while withdrawing
strip with right.
N.B.—As a live cartridge never remains in the chamber the mere
presence or absence of the strip shows whether the gun is loaded.
RAPID CHANGE OF BARREL IN THE FIELD.
In prolonged firing it is sometimes desirable to replace a hot barrel
by a fresh one, so as to allow the former to cool.
This operation, which is performed without dismounting any part
of the mechanism, requires some 10 to 15 seconds.
Proceed as follows:—
Suppose the gun in the firing position.
The firer unscrews the locking nut one-sixth of a turn with the
right hand, using the dismounting wrench.
While the second operator grasps the legs of the barrel rest, quite
near the barrel, No. 1 separates the barrel from the receiver by
drawing the latter to the rear.
Resting the butt on the ground No. 1 now mounts the fresh barrel
and pushes it home.
Meanwhile No. 2 handles the hot barrel by means of the barrel
rest, which he then detaches as follows:—

(a) Fold the legs.

(b) Turn the legs forward until in line with the barrel.
(c) Pivot the legs half a turn around the lug of the front sight
carrier, thus permitting the separation.
The fresh barrel being mounted, No. 2 attaches the barrel rest and
resets it.
A hot barrel may be carried by means of dismounting wrench.
 COOLING BARREL.
To reduce wear of rifling, the barrel should be kept cool if
circumstances allow.
Water is not harmful, and when available may be copiously applied
to barrel by means of a sponge or rag.
A hot barrel may be dipped in water, but all traces of latter must be
removed from barrel bore and gas cylinder, by blowing through
same, by means of cleaning rod, or by firing two or three loose
cartridges.
Until all water is blown out of gas cylinder, the gas pressure may
be insufficient for ensuring automatic action.
 USE OF THE REGULATOR.
In order that the working of the gun may be regular, sufficient
power must be available to ensure complete recoil of the piston. The
amount of power necessary must vary because of insufficient oiling,
dust, or fouling in the mechanism, &c. Then, again, pressure of the
powder gases may vary because of temperature, deteriorated powder,
or badly worn rifling.
The regulator affords means of varying the power which works the
gun. Under normal conditions it should be set at 25.
To test the automatic action, fire several shots with regulator set at
25 and cocking handle at “R,” and observe:—

(a) One shot should be fired at each pull of trigger. If more

than one shot is fired at a time, it shows that piston does
not recoil sufficiently after each shot to catch on sear.
(b) Claw of pawl should catch in the opening in strip at each
shot. If pawl rides on top of strip instead of catching, it
shows that piston does not recoil sufficiently to throw
feed lever through a complete stroke.
(c) The ejection should be regular and energetic.
If these three points are not satisfactory it may be concluded that
there is a lack of power, and regulator should be screwed up from 5
to 10 divisions.
On the other hand, too much power is not desirable, as the
vibration due to the violent action of the mechanism necessarily
affects accuracy.
 ACCIDENTAL STOPPAGES IN THE
AUTOMATIC ACTION OF THE GUN.
In case of a jam always proceed as follows:—

(a) Open breech completely by means of cocking handle.

(b) Remove jammed cartridge through ejection slot by using
hand ejector or cleaning rod as the case may be, and see
that chamber is clear.
(c) Withdraw the strip if some remedy is to be applied.
Otherwise push it forward, bringing the next cartridge to
the loading position.
 STOPPAGES AND THEIR REMEDIES.
(1) Jam on the first round of a strip.
The strip was probably not pushed completely home before trigger
was pulled. Always push forward strip until pawl catches, so that
both strip and cartridge are positively held in loading position.
(2) Missfire.
Eject defective cartridge by cocking gun, and continue firing.
N.B.—A loose primer falling into the mechanism may cause
repeated missfires. Dismount the piston and breech block so as to
remove primer, which will usually be found either in the piston cams
or in the fermeture nut near the entrance to the chamber.
Missfires may be also due to a weakened recoil spring. In this case
replace the spring with a spare.
(3) Bad introduction.
The cartridge jams at entrance to the chamber when being pushed
forward by breech block. The bullet of the cartridge in question may
have been imperfectly seated due to defective crimping, or the
cartridge insufficiently held by the clips of the feed strip.
In the latter case the strip should be put aside for re-sizing.
Another cause of bad introduction is incomplete feeding due to
lack of power. In this case screw up the regulator 3 to 10 divisions.
(4) Incomplete ejection of the spent cartridge case.
This is due to lack of power. Screw up the regulator 5 to 10
divisions.
 CLEANING AND CARE.
This arm requires the same care as the service rifle. It must be kept
clean and free from rust, and all parts lightly oiled. No gritty
substances or emery should be used.
As soon after firing as practicable the barrel should be thoroughly
cleaned and oiled, particular attention being paid to the chamber.
The gas cylinder should be kept free from fouling by means of the
cleaner so that the regulator can be easily screwed up without using
the dismounting wrench.
When the gun is not in use the breech should be kept closed so as
to avoid weakening the recoil spring.
 FEED STRIPS.
The feed strips hold 30 rounds each. There are three rows of clips
which hold the cartridge near the base, the middle and at the neck. A
stop lug which catches behind the head of the cartridge case prevents
longitudinal motion.
 FEED STRIP FILLING MACHINE.
The feed strip filling machine is constructed for clamping to a
bench or plank, as, for instance, the lid of a cartridge box.
The hopper and clamp are removable for compactness in packing.
The machine must be so placed that the crank can be conveniently
turned with the right hand.
Proceed as follows:—

(a) Fill the hopper with cartridges.

(b) Push a feed strip, stop lugs to the rear, in its guides on the
machine until the feed tooth catches back of the first
middle clip.
(c) Turn the crank. At each complete turn of the crank first a
cartridge is pushed forward into the clips, and then the
feed strip fed ahead one notch into position for the
succeeding cartridge.
(d) When filled remove the feed strip.
This machine is operated most efficiently by two men. One
supplies the machine with feed strips, turns the crank, and removes
filled feed strips; the other supplies the hopper with cartridges.
N.B.—The feed strips may also be readily filled by hand; care
should be taken that the rims of all cartridges bear back against their
stop lugs.
 RE-SIZING THE FEED STRIPS.
When the feed strips have been used repeatedly, the middle clips
sometimes lose their curvature to such an extent that the cartridges
are not firmly held. This is quickly remedied by passing the strips
through the re-sizing tool so as to restore the middle clips to their
original form.
As a rule, very little re-sizing is necessary, slight contact between
the re-sizing roller and the top of the middle clip sufficing.
General.
 DUTIES.
(Referring mainly to the Maxim and Vickers’
Guns.)

Section Officer.

To command his section in accordance with orders and the tactical

situation.
To select gun positions.
To observe and control fire.
To give instructions to range taker.
To act, when brigaded, under instructions of the B.M.G.O.

Sergeant.

Supervise guns coming into action as the section officer will direct.
Be prepared to take command in the event of the officer becoming
a casualty; in fact, act as the officer’s understudy.

Corporal.

Responsible for packing, and contents of limbered wagon·

On the march he will be in rear of it and work brake as required.
Superintend unpacking, and take command in the absence of
officer and sergeant.
See that rifles and packs of Nos. 1, 2, 3 and 4 are put into wagon.
Have spare parts box handy.
Supervise ammunition supply and belt filling.
Direct limbered wagons as required.
 Superintend filling of sandbags and cutting of brushwood.
Watch for signals from section officer.
Take place of sergeant in the event of him becoming a casualty.

No. 1 Firer.

Will personally clean and look after his gun.

Carry tripod into action, place it in position and assist No. 2 in
mounting.
Repeat all orders received.
Observe his own fire.

No. 2.

Assists No. 1 at the gun, carries it into action and mounts it with
the assistance of No. 1.
Attends to the feeding.
Watch for signals from the section officer.

Nos. 3 and 4.

Ammunition carriers.
No. 3 takes first supply to the gun assisted by No. 4 and arranges
that spare parts wallet is brought up to gun position.
He is also responsible that the condenser is in position before
water boils.
No. 4 takes ammunition from limber to No. 3 when a further
supply is required.
Takes condenser complete, and half filled with water to No. 3.

No. 5—Scout.
 Acts as ordered by section officer.

No. 6—Range taker.

Takes ranges and prepares range cards.

The other No. 6, is a spare man and acts according to orders from
his officer.

Drivers.

Remain with wagons and must act on signal from the officer. They
should be taught to fill belts by hand or machine and to act as
ammunition carriers.
 SECTION DRILL (WITH TRANSPORT).

Drill with Limbered Wagons.

The detachment will be formed up in two ranks six paces in rear of

the wagon, facing outwards.
On the command or signal “Action,” the driver dismounts and
stands to his horses. The sergeant and Nos. 5 and 6 double out to the
section officer. The corporal lowers the tail-board and superintends
the unpacking. The remaining numbers ground arms on the word of
command of the senior number, and fall out to the wagon to perform
the duties detailed above.
The corporal selects a suitable covered position for the limbered
wagon, if necessary.
On the command or signal “Dismount guns,” the procedure for
unpacking is reversed, and when completed, detachments fall in and
take up arms by word of command.

Drill with Pack Transport.

Normally mules will be led by Nos. 1, 2, 3, 4, 7 and 8.

On the command “Prepare for action,” Nos. 2, 3, 7 and 8 will link
their mules to those immediately in front of them.
Nos. 7 and 8 will lead Nos. 1 and 4 mules. Nos. 1 and 2 will march
on the tripod and gun sides respectively of No. 1 mule and loosen
straps. Nos. 3 and 4 will march on either side of No. 2 mule.
On the command or signal “Action,” No. 1 will off-load the tripod
and No. 2 the gun; No. 3 will off-load the leading ammunition
animal.
The corporal will select a suitable covered position for the pack
animals. The other duties of the various numbers are as on pages
.
 On the command or signal “Stand to,” Nos. 1, 2 and 3 will reverse
the actions of off-loading. The detachment will then form up for
marching.
 SECTION DRILL (WITHOUT TRANSPORT).
Guns, tripods and ammunition boxes will be placed on the ground,
muzzles to the front and in line, legs to rear, straps round rear legs
buckled, clamps sufficiently tight to prevent legs from hanging loose
when tripod is lifted. Traversing clamp sufficiently loose to enable
gun to be deflected by a sharp tap with the hand on rear crosspiece,
guns on right and not closer to each other than eight paces,
ammunition boxes three paces in rear.
Fall in.—Detachment for the two guns will “fall in” in two ranks,
five paces in front of the interval between guns, sergeant on left of
front rank, corporal covering him in rear.
Front rank will be right gun detachment.
Rear rank will be left gun detachment.
Number.—As in squad drill.
Take Post.—Detachments turn outwards and double to their
respective guns (sergeant and corporal on outer flanks, where they
can superintend). Nos. 1 and 2 fall in on left of tripod; No. 3 on left of
ammunition box. (If ground suitable these numbers should lie
down.)
Nos. 4, 5 and 6 fall in, in single rank, in rear of No. 3.
The gun position and point of aim is then indicated, followed by
command:—
Mount Gun.—No. 1 picks up tripod, having previously seen that
both elevating screws are exposed the same distance, carries and
places it in position indicated. In adjusting, he must ensure that
crosshead and sights are upright, and legs clamped tight. No. 2
should so time his advance that he will arrive immediately the tripod
is adjusted. He will carry gun to right side of tripod, holding rear
crosspiece with left hand, gun muzzle to rear under right arm. Kneels
on left knee, facing tripod, and supporting weight of gun on right
knee, places it on tripod, drives in and turns down crosshead joint
pin, and removes cork plug from steam escape hole.
No. 1 fixes elevating joint pin and directs gun towards the mark.
 No. 2 kneeling and placing ammunition box in position.
No. 3 when he sees gun nearly mounted, will carry ammunition
box forward and place it within reach of No. 2. He then retires to a
position not immediately in rear of the gun.
Load.—No. 1 raises tangent sight, No. 2 passes tag of belt through
feed block. No. 1 turns crank handle on to buffer spring, pulls belt to
left front as far as it will go, and lets go crank handle, releases strain
on belt, then turns crank handle on to buffer spring, again pulls belt
to left front and lets go belt and crank handle. The gun is now ready
to fire.
Single Shot Loading.—Carry out first half of loading motions,
then, without touching belt, turn crank handle on to buffer spring
and let go.
800 (Range).—No. 1 repeats the order and adjusts slide to
elevation required.
At (Object).—No. 2 adjusts traversing clamp if ordered to by No.
1, who lays the gun, raises automatic safety catch with forefinger and
prepares to fire.
When No. 1 is ready No. 2 holds up his hand.
Fire.—No. 1 presses the double button.
Cease Fire.—No. 1 releases automatic safety catch and remains
steady.
Traversing Fire.—No. 1 will lay gun on flank named, press
button, and tap alternately, with the hand, on the rear crosspiece in
the required direction, until limit is reached.
Unload.—No. 1 lowers the sight (not the slide), turns the crank
handle twice in succession on to buffer spring, letting it fly back each
time on to the check lever; then presses up finger pieces on bottom
pawls, No. 2 withdrawing and repacking belt in box. No. 1 clears
ejector tube and lock, and releases lock spring by pressing double
button.
Dismount Gun.—No. 1 removes crosshead and elevating joint
pins. No. 2 replaces cork plug, passes ammunition box to No. 3, and
removes gun to its original position in rear, No. 1 following with
tripod, joint pins will then be pushed home, legs folded and clamped.
Prone Position.

Mount Gun.—No. 1 crawls into position, pushing tripod forward

with right hand, having first adjusted front legs by turning it over
and moving legs round so that they remain in a slightly backward
position over the elevating wheel.
When in the position ordered for mounting, he turns legs down
and adjusts so as to secure a low, upright position of the crosshead.
No. 2 will then move into position, on his back, carrying the gun
across his body, muzzle to the front. On reaching tripod he will push
muzzle towards No. 1 who will assist in mounting, and insert
crosshead joint pin, No. 2 inserting elevating joint pin and removing
cork plug.
No. 1 will then turn into position for firing, supporting himself
against the legs of No. 2.
Adjust sights, load, and fire as ordered.
Out of Action.—No. 1 will unload, Nos. 1 and 2 (in prone
position) will take hold of rear leg (No. 1 with right hand, No, 2 with
left), and draw gun out of action until under cover, when gun will be
dismounted in the usual manner; No. 2 having drawn ammunition
box back with the gun.
 TESTS OF ELEMENTARY TRAINING.
No. of Nature of Test, with Standard Remarks.
Test. Commands. Time.
I. To erect tripod and 20 sec.
mount gun. “Mount
Gun.”
II. To load the gun. 5 sec. All motions distinct. No
“Load.” slurring.
III. To adjust sights and 12 sec. From range being ordered
lay gun “At ... until No. 2 holds up his
(Range) ... Object ...” hand.
IV. To unload the gun. 5 sec. Motions distinct, belt
“Unload.” correctly repacked,
Lockspring released.
V. To dismount the gun. 15 sec. All points as at beginning of
“Dismount Gun.” Test I., and cork plug
replaced.
VI. To bring gun into 40 sec. All points for Tests I., II.
action (Range ... and III. to be fulfilled.
Object ...) “Action.” Time taken until No. 2
holds up his hand.
VII. Horizontal Traversing 3 sec. for each
(Limits of Traverse). complete
“Traversing Fire.” series.
VIII. Diagonal Traversing 4 sec. for each
(Limits of Traverse). series.
“Traversing Fire.”
IX. Rectifying Stoppages. Correct Correct remedy applied and
“Gun Stops.” procedure gun relaid after remedy.
begun, 3 sec.
X. Belt Filling. 1 min. 25 rounds.[1]
12 min. 250 rounds.[1]

1. Placed in a heap. Pass for inspection when filled.

 CHARACTERISTICS OF MACHINE GUN.
The fact that the gun is mounted upon a platform and the personal
factor thus reduced, results in a close grouping of fire, and practically
the same results are obtained in war as in peace, the beaten zone
being about half the area of that of rifle fire. This gives the following
advantages:—
Surprise effect.
Observation of fire for ranging.
Overhead covering fire.
Other advantages of the machine gun are:—
Narrow frontage (a machine gun only occupying the same
frontage as two infantrymen).
Difficult to locate.
Normal rate of fire about 500 rounds per minute. All-round
traverse, which allows gun to be turned in any direction
without moving tripod, and with little exposure.
Mobility: It can go wherever a man can go on foot.
It has, however, the following drawbacks:—
Overheating, and consequent stoppage through too prolonged
fire.
Noise of firing, and steam from barrel casing reveals position.
Narrow and scattered objects are unsuitable targets.
It will be seen therefore that the machine gun is a
weapon of opportunity particularly adapted for surprise
effect, but not for sustained fire action.
 FIRE DIRECTION.
The following methods should be used:—

Ranging Fire.

Bursts of fire limited to from 10 to 20 rounds.

It is unlikely that observation will be obtained with larger bursts.

Rapid Fire.

In groups of from 30 to 50 rounds, the firer pausing slightly

between each group to confirm the alignment of sights.

Traversing Fire.

Distributed laterally, and applied in a series of small groups, the

object being to cover as wide a front as possible, with a minimum of
volume. (Groups should consist of from 5 to 10 rounds only.) A belt
of 250 rounds should cover a frontage of 25 yards in one minute.

Swinging Traverse.

For trench warfare, and against dense targets at close ranges, the
traversing clamp being kept fairly loose and the gun traversed evenly
and smoothly from side to side, both hands retaining their hold on
the traversing handles.

Combined Sights.
 When two or more guns are working together, the depth of the
effective zone can be increased by ordering different elevations for
each gun, both, however, using the same point of aim.
The respective depth and width of effective zones may be taken as
being:—
Range. Mark VI. Mark VII.
Depth. Width. Depth. Width.
Yards. Yards. Feet. Yards. Feet inches.
500 150 4 220 2 6
1,000 70 8 140 5 0
1,500 60 13 70 10 0
2,000 50 19 60 17 6
From this it is apparent that, allowing an error of 10 per cent. in
ascertaining the range, the flatness of trajectory within 800 yards
will insure the target being included in the effective zone, therefore
with Mark VII ammunition combined sights should not be used at
less than 800 yards.

Bracketing.

When only a section is available and the “combined sights” method

does not give sufficient assurance of fire effect, “bracketing” should
be used as follows:—
The range estimated, probable error determined, and the limits
between which it is necessary to search with fire, the maximum and
minimum elevation will be allotted to right and left gun respectively,
who fire a burst and then work inwards (one higher, one lower) by
altering their respective elevations 50 yards each time, eventually
passing each other. If observation of the fire can be obtained, correct
elevation should be immediately ordered.
With Mark VII ammunition this method would not be necessary at
1,000 yards, as with a 10 per cent. error the “combined sights”
method would give a satisfactory result.

Vertical Searching.
 The range to nearest point of objective is taken, sight adjusted and
gun laid on this point.
Sights are then set for the farthest point of the objective. This will
bring the line of sight short of the aiming-point. A series of bursts are
then fired, care being taken that each burst strikes just beyond the
former one, but does not leave any gap between groups.

Overhead Fire.

Can be employed normally from or at a commanding position, or

across a valley, but not when own troops and those of the enemy are
on same plane.
Range of target must be accurate. If 1,000 yards or under, angles
of sight to enemy and own troops must not be less than 30 minutes.
If range is between 1,000 and 1,500 yards, the angle must not be less
than 60 mins.
Overhead fire should not be used at 1,500 yards and over.
The following method of sighting can be used.—
Adjust backsight to correct range of target and lay gun on mark. If
gun is nearer than 900 yards, raise sight by 400 yards, and if further
than 900 yards, raise sight 250 yards.
The new line of sight gives safety angles.
When heads of own troops come into line of sight, cease fire, or
continue to elevate gradually, keeping pace with advance.

Indirect Fire.

Firing from concealed positions at an auxiliary aiming mark.

A machine gun protractor, or graticules cut across the focal plane
of prismatic glasses are most satisfactory. By this means indirect fire
can be applied as easily as direct fire.

Night Firing.