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 MARKETING
REAL PEOPLE, REAL DECISIONS

MyLab and Mastering, Pearson’s leading online learning products, deliver customisable content and
highly personalised study paths, responsive learning tools, and real-time evaluation and diagnostics.
Used by over ten million students and educators across the globe, MyLab and Mastering products give
educators the ability to move each student toward the moment that matters most—the moment of
true understanding and learning.

FOR STUDENTS
Ě 3HUVRQDOLVHGVWXG\SODQ MyMarketingLab gives you the opportunity to test yourself on key
concepts and skills, and generates a study plan based on topics you have not yet mastered. The
study plan links to interactive exercises with guidance, to give you help when you need it most.
Ě 3HDUVRQH7H[W the Pearson eText gives students access to an ebook that can be used on the go,
and allows them to highlight, search and take notes as they read online. Access to the ebook
depends on the package the student has bought.
Ě 0LQLVLPXODWLRQV move beyond the basics with interactive simulations that place you in a realistic
marketing situation and require you to make decisions based on marketing concepts.
Ě 9LGHRV interviews with top executives and marketing managers from a wide range of companies,
including many of the ones you’ll read about in this book, provide you with the opportunity to
test your knowledge and apply the theory to real-world scenarios.

FOR EDUCATORS
Ě 2QOLQHDVVLJQPHQWVWHVWVTXL]]HV you can easily create homework assignments, quizzes or tests
and assign these to students.
Ě ,QFHQWLYLVHGUHDGLQJ easily assign chapters from the eText and monitor student interaction with
resources.
Ě *UDGHERRNassignments are automatically graded and visible at a glance.
Ě ,QVWUXFWRUďV0DQXDODQG3RZHU3RLQWVOLGHV additional instructor material is also available from
www.pearsoned.co.uk/solomon

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A student access code card may have been included with your textbook at a reduced cost. If you do
not have an access code, you can you can buy access online.

To buy access or register with your code, visitZZZSHDUVRQHGFRXNP\PDUNHWLQJODE

For educator access, contact your Pearson account manager.

3UDLVHIRUWKHILUVW(XURSHDQHGLWLRQRI0DUNHWLQJ
5HDO3HRSOH5HDO'HFLVLRQV
“Seen through the lens of real-life situations and people, it captures the mood, direc-
tion and reality of marketing today . . . it is very much a text of the noughties; modern,
youthful with a particular emphasis on the technologically-enabled times in which we
live. It is a feet-on-the-ground text, which comprehensively covers all the standard
marketing theories, updates them to modern living, but, MOST IMPORTANTLY acknowl-
edges that despite all the theory, reality is different and challenging. It reflects the fact
that studying marketing is much more than learning theories and rules, that there is
a requirement to make decisions, that there are always a number of choices available,
and that a key element of implementing marketing is accountability, measurement and
learning from the practical outcome, whether or not that was as intended. It is a text
which brings marketing to life and brings life to marketing.”
Marilyn Hunt, University of Worcester

“A treasure trove of information and insight”

Yvonne McGivern, Market Research Society

“The way the real cases are used in this text is an innovative attempt to engage and
inspire students”
Fiona Syson, Edgehill University

“How refreshing to see a text that combines real life views of practitioners with those
of academics and students”
Janet Hull, Institute of Practioners of Advertising

“A highly engaging marketing textbook with up-to-date coverage of marketing

concepts, a broad range of European marketing applications and lots of opportunities
for student discussion and problem-solving.”
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“Up-to-date, interesting and relevant cases and scenarios which challenge students to
put themselves in the shoes of modern marketing decision makers.”
Matthew Wood, University of Brighton

“Engages students with real world business issues and challenges them to come to
decisions”
Colin Mason, University of Strathclyde
Pearson Education Limited

Edinburgh Gate
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Essex CM20 2JE
England

and Associated Companies throughout the world

Visit us on the World Wide Web at:

www.pearson.com/uk

Authorised adaptation from the United States edition, entitled Marketing: Real People, Real Choices, seventh edition,
ISBN: 978-0-13-217684-2 by Michael R. Solomon, Greg W. Marshall and Elnora W. Stuart, published by Pearson
Education, Inc., publishing as Prentice Hall, copyright © 2012.
First published 2009
Second edition published 2013

© Pearson Education Limited 2013

The rights of Michael R. Solomon, Greg W. Marshall, Elnora W. Stuart, Vince Mitchell and Bradley Barnes to be identi-
fied as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act
1988.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any
form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written
permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright
Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London ECIN 8TS.

All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not
vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trade-
marks imply any affiliation with or endorsement of this book by such owners.

Pearson Education is not responsible for the content of third-party internet sites.

ISBN 978-0-273-75816-7

British Library Cataloguing-in-Publication Data

A catalogue record for this book is available from the British Library

Library of Congress Cataloging-in-Publication Data

Marketing : real people, real decisions / Solomon . . . [et al.]. — 2nd European ed.
p. cm.
ISBN 978-0-273-75816-7
1. Marketing—Vocational guidance. I. Solomon, Michael R.
HF5415.35.S65 2013
658.8—dc23
2012038513

10987654321
17 16 15 14

Typeset in 10/12.5 Goudy by 73

Printed and bound by L.E.G.O. S.P.A., Italy
 To Gail, Amanda, Zachary, Alexandra, Orly, Squishy,
and Kelbie Rae – my favourite market segment
M.S.

To Patti and Justin

G.M.

To Sonny, Patrick, Gabriela, and Marge

E.S.

This book is dedicated to my mother, Elizabeth Mitchell, who

died 1 July 1988, for her unfailing belief in and support
for me during my academic studies
V.M.

To my family, friends and colleagues, thanks for the continued support!

B.B.
This page intentionally left blank
 %ULHIFRQWHQWV

Preface xiv
Guided tour of the book xviii
Guided tour of MyMarketingLab xx
About the authors xxii
Publisher’s acknowledgements xxiv

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Appendix A Sample marketing plan: The B&V Smoothie Company 577
Appendix B Marketing maths 591
Appendix C Marketing in a recession case 599
Glossary 601
Index 619
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Preface xiv
Guided tour of the book xviii
Guided four of MyMarketingLab xx
About the authors xxii
Publisher’s acknowledgements xxiv

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Real people, real decisions: Meet Steve Perry, Commercial Director of Visa Europe 2
Objectives 4
Welcome to a branded world 4
The value of marketing 9
When did marketing begin? The evolution of a concept 13
What can be marketed? 27
‘Something of value’ to whom? 29
Marketing as a process 36
Real people, real decisions: How it worked out at Visa Europe 40
Chapter summary 41
Key terms 42
Chapter review 42
Real people, real surfers: Exploring the web 44
Marketing in action case: Real decisions at Ocado 45
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 CONTENTS L[

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Real people, real decisions: Meet Kevin Parkin, a decision maker at DavyMarkham 48
Objectives 50
Business planning: composing the big picture 50
The three levels of business planning 51
Strategic planning: framing the picture 53
The global marketing environment 55
Marketing planning: selecting the camera setting 75
Creating and working with a marketing plan 82
Playing on an international stage: the complicated world of global marketing 84
How global should a global marketing strategy be? 89
Product-level decisions: choosing a marketing mix strategy 91
Real people, real decisions: how it worked out at DavyMarkham 93
Chapter summary 95
Key terms 97
Chapter review 97
Real people, real surfers: Exploring the web 100
Marketing in action case: Real decisions at Mattel Toys 101

3 0DUNHWLQJUHVHDUFK 
Real people, real decisions: Meet Ryan Garton, Consumer Insights Director at Discover
Financial Services 104
Objectives 106
Knowledge is power 106
Steps in the marketing research process 116
Real people, real decisions: How it worked out at Discover Financial 138
Chapter summary 140
Key terms 141
Chapter review 141
Real people, real surfers: Exploring the web 143
Marketing in action case: Neuromarketing – taking a peek inside the consumer’s mind 145

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Real people, real decisions: Meet Julie Cordua, Vice President of Marketing at (RED) 148
Objectives 150
Decisions, decisions 150
Steps in the consumer decision process 151
Influences on consumers’ decisions 159
Consumer-to-consumer e-commerce 177
Real people, real decisions: How it worked out at (RED) 179
Chapter summary 180
Key terms 181
Chapter review 181
Real people, real surfers: Exploring the web 183
Marketing in action case: Real decisions at ASDA 185
[ CONTENTS

5 %XVLQHVVWREXVLQHVVPDUNHWLQJ 
Real people, real decisions: Meet Paul Baxter-Gibson, a decision maker at Lucore 190
Objectives 193
Business markets: buying and selling when the stakes are high 193
Characteristics that make a difference in business markets 194
Business-to-business demand 196
Types of business-to-business markets 198
The nature of business buying 200
Business-to-business e-commerce 211
Real people, real decisions: How it worked out at Lucore 213
Chapter summary 215
Key terms 216
Chapter review 216
Real people, real surfers: Exploring the web 217
Marketing in action case: The Filter 218

6 6HJPHQWDWLRQWDUJHWLQJSRVLWLRQLQJDQG&50 
Real people, real decisions: Meet Jochen Barth, a decision maker at &samhoud 220
Objectives 223
Target marketing strategy: selecting and entering a market 223
Step 1: Segmentation 223
Step 2: Targeting 234
Step 3: Postioning 238
Customer relationship management 242
Real people, real decisions: How it worked out at &samhoud 247
Chapter summary 249
Key terms 250
Chapter review 250
Real people, real surfers: Exploring the web 251
Marketing in action case: Real decisions at PizzaExpress 253

7 &UHDWLQJWKH3URGXFW 
Real people, real decisions: Meet Fraser Chisholm, Head
of Media Propositions and Communications, Royal Mail 256
Objectives 258
Build a better mousetrap: the value proposition 258
‘New and improved!’ The process of innovation 268
Developing new products 272
Adoption and diffusion 280
Real people, real decisions: How it worked out at Royal Mail 289
Chapter summary 291
Key terms 292
Chapter review 292
Real people, real surfers: Exploring the web 293
Marketing in action case: Real decisions at Starbucks 295
 CONTENTS [L

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Real people, real decisions: Meet Mads Kjaer, CEO and Chairman of the board
of Kjaer Group 298
Objectives 300
Product planning: taking the next step 300
Using product objectives to decide on a product strategy 301
Marketing throughout the product life cycle 312
Creating product identity: branding decisions 316
Creating product identity: packaging and labelling decisions 325
Organising for effective product management 330
Real people, real choices: How it worked out at the Kjaer Group 331
Chapter summary 333
Key terms 334
Chapter review 334
Real people, real surfers: Exploring the web 336
Marketing in action case: Real decisions at Diageo 337

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Real people, real decisions: Meet Karen Wosskow, a decisions maker
at KBW Management 340
Objectives 342
Marketing what isn’t there 342
Providing quality service 356
Marketing people, places and ideas 362
Real people, real decisions: How it worked out at KBW Management 365
Chapter summary 366
Key terms 366
Chapter review 367
Real people, real surfers: Exploring the web 368
Marketing in action case: The music industry 370

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Real people, real decisions: Meet Mike Blundell, a decision maker
and Senior Director at Blundells Estate Agents 374
Objectives 376
Yes, but what does it cost? 376
Developing pricing objectives 376
Step 1: Develop sales or market share objectives 377
Step 2: Estimate demand 379
Step 3: Determine costs 385
Step 4: Evaluate the pricing environment 391
Step 5: Choose a price strategy 393
Step 6: Develop pricing tactics 398
Pricing and electronic commerce 401
Psychological issues in pricing 402
Legal and ethical considerations in pricing 404
Real people, real decisions: How it worked out at Blundells 407
 [LL CONTENTS

Chapter summary 408

Key terms 409
Chapter review 409
Real people, real surfers: Exploring the web 411
Marketing in action case: Low cost, big profit, really low price? The case of low-cost airlines 413

11 ,QWHJUDWHGPDUNHWLQJFRPPXQLFDWLRQV 
Real people, real decisions: Meet James Dalton, Managing Director
of Fonemedia Ltd 416
Objectives 418
Tailoring marketing communications to customers 418
The communications model 419
Marketing communication strategy and the promotion mix 423
Integrated marketing communications 431
Real people, real decisions: How it worked out at Fonemedia 447
Chapter summary 448
Key terms 449
Chapter review 449
Real people, real surfers: Exploring the web 451
Marketing in action case: Groupon keeps one buzz ahead 452

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Real people, real decisions: Meet Anthony Levy, Chairman of the Fresh Produce Consortium 456
Objectives 458
Advertising: the image of marketing 458
Developing the advertising campaign 463
Public relations 478
Real people, real decisions: How it worked out at Eat in Colour 485
Chapter summary 486
Key terms 486
Chapter review 487
Real people, real surfers: Exploring the web 488
Marketing in action case: Real decisions on viral marketing 490

13 6DOHVSURPRWLRQVDQGVDOHVPDQDJHPHQW 
Real people, real decisions: Meet James McCaffrey, a decision maker at Towergate 494
Objectives 496
Sales promotion 496
Personal selling 505
Real people, real decisions: How it worked out at Towergate 517
Chapter summary 518
Key terms 518
Chapter review 518
Real people, real surfers: Exploring the web 520
Marketing in action case: Promotions in energy at EDF 521
 CONTENTS [LLL

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Real people, real decisions: Meet Julia Gash, a decision maker at Bag It Don’t Bin It 524
Objectives 526
Place: the final frontier 526
Types of distribution channel 534
Retailing: special delivery 548
B2C e-commerce 556
Real people, real decisions: How it worked out at Bag It Don’t Bin It 566
Chapter summary 567
Key terms 568
Chapter review 569
Real people, real surfers: Exploring the web 571
Marketing in action case: Real decisions, Wal-Mart in Germany 573

Appendix 1 Sample marketing plan: The B & V Smoothie Company 577

Appendix 2 Marketing maths 591
Appendix 3 Marketing in a case 599
Glossary 601
Index 619
 3UHIDFH

Whether you are a student, a managing practitioner choose. You are asked to think about which option
or marketing tutor, what is distinctive about this you would choose and why. Custom-made films have
marketing text book is that it presents marketing been produced and are available which include inter-
from the perspective of the people who actually do views with many of these featured marketers. Each
marketing and make real decisions. In the text, you one discusses his or her role at the company and the
will meet real marketers i.e. those in industry who decision-making process used to solve the dilemma.
make marketing decisions every day. We have care- In the ‘Real People, Other Voices feature’ (includ-
fully focused on specific case scenarios to broaden ing ‘Across the Hall’) students, tutors and industrial
learning and help students consider more real-life practitioners throughout Europe have been consult-
situations, in addition to providing the core essen- ed and asked to provide commentary, discuss the op-
tials relating to the themes of each chapter. tions and select one to help solve the dilemma.
This book has been developed for those who as- Finally, at the end of each chapter, you’ll discover
pire to work in marketing roles, as well as those who the marketer’s ‘real choice’ in a ‘How it Worked Out’
don’t. If you fall into the first category, you’ll soon feature. Many of these features include an explana-
learn the basics, to enable you to understand how tion of how the company uses marketing metrics to
marketers contribute to the creation of value. If you measure its success. Essentially, every chapter offers a
fall into the second category, then hopefully by the situation, a variety of options, and then an outcome,
time you have worked your way through this text, we along with some explanation of why this course of
will have been able to persuade you to move into the action was taken. No other marketing text book has
first category. Even if you don’t the text highlights this structure or emphasis on real decision-making.
the ways in which the principles of marketing apply
to many fields of business, from sports to account-
ing. Regardless of your reasons for studying market-
ing, we have worked hard to develop lively material 5HDO0DUNHWLQJ7RSLFV
in an attempt to stimulate your thinking, allow you
to consider alternative options and make decisions.
and Events
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in decisions. now in the world of marketing. You’ll start by learn-
ing the most recent definition of just what marketing
is. You’ll learn that marketing focuses on creating and
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ensuring that all parties in any marketing transaction
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ing is so important we focus on ethics not just in a in Action mini-case about a real firm, or a real issue
single chapter but throughout the book, providing facing real marketers. Questions at the end let ‘you
coverage in two distinct ways: make the call’ to get the company on the right track,
or consider the problem in greater depth.
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marketing mistakes which have been ‘pulled from
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about ethical or unethical decisions. companies in this book. In developing it, we also were
fortunate to work with a team of exceptionally talent-
ed and creative people at Pearson in Harlow. Rachel
Gear and Tim Parker were instrumental in helping us
$Q(DV\WR)ROORZ0DUNHWLQJ stay on track, meet deadlines and provide invaluable
support when it was most needed – many thanks as
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demand accountability, and marketers respond by 5HYLHZ%RDUG
developing a variety of ‘scorecards’ which show
These reviewers consistently gave thorough feedback
how specific marketing activities directly affect their
throughout the writing process which proved invalu-
company’s return on investment (ROI). In real life
able in the development of the chapters.
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