Marketing

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What Is Marketing?

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Alvin J. Silk

Content Adviser

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Harvard Business School Press Boston, Massachusetts

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What Is Marketing?

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Copyright 2006 Harvard Business School Publishing Corporation All rights reserved Printed in the United States of America 11 10 09 07 06 5 4 3 2 1 No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to permissions@hbsp.harvard.edu, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163. ISBN-13: 978-1-4221-0460-6

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Library of Congress Cataloging-in-Publication Data What is marketing? p. cm. — (What is ? series) ISBN-13: 978-1-4221-0460-6 1. Marketing. I. Harvard Business School Press. HF5415.W483 2006 658.8—dc22 2006021351

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Contents

Introduction

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1. Marketing Strategy

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Part I Analyzing Marketing Opportunities

Appendix to Chapter 1, Basic Marketing Mathematics

2. Understanding Consumer Behavior

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4. Product Policy

Part II Developing Marketing Strategies
3. Market Segmentation, Target Market Selection, and Positioning 85 97 111 115

Appendix to Chapter 4, Brand Valuation

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5. Going to Market

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vi

Contents

6. Marketing Communications and Promotions 7. Optimal Pricing

133 149

8. Personal Selling and Sales Management 9. Managing Customers Index 199

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169 185

Part III Implementing Marketing Strategies

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Introduction

purpose: to create a customer . . . [Therefore], any business enterinnovation. They are the entrepreneurial functions. Marketing is the distinguishing, the unique function of the business.”1 This book explores what marketing is and how an enterprise can differentiate itself from others in attracting and retaining customers. do to create and exchange value with customers. In this sense, marketing has a major role to play in setting a firm’s strategic direcIn general terms, marketing refers to what an organization must

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N THE PRACTICE OF MANAGEMENT, PETER F. DRUCKER

wrote, “There is only one valid definition of business

tion. Successful marketing requires both a deep knowledge of customers, competitors, and collaborators and great skill in deploying an organization’s capabilities so as to serve customers profitably. Marketing, thus defined, is a broad general management responsibility, not just a function delegated to specialists. Anyone with career interests that lead to the setting and the execution of the

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strategy of an organization, regardless of its type or size, will require marketing skills and insight. Therefore, this book provides the foundation on which to begin developing those skills and insights vii

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prise has two—and only these two—basic functions: marketing and

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viii

Introduction

applicable in a wide variety of...
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