Marketing Management: European Edition

929 Pages·2009·39.65 MB·English

by  Philip Kotler

Praise for the First European Edition of Kotler
PPhhiilliipp
Marketing Management
Keller
Brady
This is a much longed-for edition of the classic Marketing Management. The European
Goodman
co-authors have done a committed job to adapt the text – not an easy task, which requires
balanced judgment and wisdom. A large number of cases have been skilfully selected to
Hansen KKeevviinn
make European students feel at home. The theoretical framework is basically unchanged but
has been supplemented with seminal contributions from Europe. Lane
Professor Evert Gummesson, Stockholm University School of Business, Sweden

The scope and range of marketing continues to move at a pace in today’s modern world. This
M
textbook demonstrates admirably this scope and range of concepts and issues that students
of marketing must prepare and perform against. This text examines traditional aspects of
marketing and blends these with modern and future concepts. At the same time it bridges the
a
Atlantic in perspective with excellent examples of interest to all marketers. Students studying
Mairead
marketing will do well to make this a must read. r
Professor David Carson, Ulster Business School, University of Ulster
k
e
An excellent up-to-date, comprehensive and broadly structured text, this book represents a
serious attempt to adapt Kotler’s ideas to the wider views of the marketing world, not the
t
reverse, from Nordic relationships and Chinese guanxi to French post-modernism.
i
Michael Saren, Professor of Marketing, University of Leicester, England n
Malcolm
g
Marketing Management exhibits all the qualities of a true marketing classic: accessibility,
state-of-the-art overviews, theoretical rigour and managerial relevance. This multi-purpose

textbook is a ‘must-have’ for academics and practitioners.
M
Martin Wetzels, Professor of Marketing and Supply Chain Research, Maastricht University,
The Netherlands

a
The fi rst European edition of the seminal work Marketing Management is a welcome n
Torben
addition to the growing body of work in this important discipline. The authors have recognised
the strong contribution of European academics to relationship marketing, as well as recent a
developments in the service dominant logic, digital marketing, and marketing metrics.
g
This will become a standard text for both undergraduate and postgraduate marketing
programmes across the continent.
e
Professor Graham Hooley, Deputy Vice-Chancellor, Aston University
m

The fi rst European edition of Marketing Management provides students and practitioners of
marketing with an innovative perspective on the classic American original. This outstanding
e
book synthesises contemporary marketing thought, presents fresh European examples and
illustrates the need to stay alert in a continuously changing society. Marketing Management
n
Karin M. Ekström, Professor in Marketing, University of Borås, Sweden
t
www.pearson-books.com
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Marketing Management
“Marketing editions work best when they are localized to bring in stories and ideas appropri-
ate to those markets. Pearson Education’s innovative global publishing program gives me the
advantage of working with highly regarded marketing coauthors in such countries as Canada,
France, Germany, Italy, India, China, Singapore and so on, because they each bring in new
relevant perspectives, some of which we incorporate into the US edition of Marketing
Management.”
Philip Kotler
Kellogg School of Management, Northwestern University, USA
“Today’s students and marketers are learning about and managing marketing theory and
practice in a global marketplace. The global publishing concept enables marketing to ‘leap
offthe page’. It enables students and professionals to gain a firm understanding of how
marketing practice relates to the pursuit of customer value in both the familiar domestic
andoften quite surprisingly different, international marketplaces.”
Mairead Brady
Trinity College, University of Dublin, Ireland
Malcolm Goodman
Durham University, UK
Torben Hansen
Copenhagen Business School, Denmark
Introducing Pearson One
Each title in the Pearson One series is part of a collaborative global editorial development

process that aligns the talent and expertise of Pearson authors, editors,
and production people from all over the world. Titles in the Pearson One
series will offer students increased understanding of the global business
environment through content and cases, with both local and global
relevance.
The First in the Pearson One Series
Marketing Managementis the first European adaptation of Philip Kotler and Kevin Keller’s
international best seller. Their US title has been translated into 26 different languages and also
adapted into other English language editions for Canada, Asia, Africa, the Middle East, South
Asia, Australia and China. The current edition was simultaneously developed and produced to
launch around the world through an innovative publishing model that brought our authors and
editors together in a truly global endeavor.
Readers of the European edition will benefit from these local perspectives and
expertise through our international case studies, authored by our partners worldwide.
These cases will be identified by a marginal note in each chapter, linked to relevant
content and available through links on our Companion Website
www.pearsoned.co.uk/marketingmanagementeurope
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We work with leading authors to develop the
strongest educational materials in marketing
bringing cutting-edge thinking and best learning
practice to a global market.
Under a range of well-known imprints, including
Prentice Hall, we craft high-quality print and electronic
publications which help readers to understand and
apply their content, whether studying or at work.
To find out more about the complete range of our
publishing, please visit us on the World Wide Web at:
www.pearsoned.co.uk.
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KoPhiliptler
Kevin Lane
Keller
BrMairaead dy
GoodmMalcolm an
Hansen
Torben

Marketing Management
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Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
Visit us on the World Wide Web at:
www.pearsoned.co.uk
First published 2009
© Pearson Education Limited 2009
The rights of Philip Kotler, Kevin Lane Keller, Mairead Brady, Malcolm Goodman and Torben
Hansen to be identified as authors of this work have been asserted by them in accordance
with the Copyright, Designs and Patents Act 1988.
Authorised adaptation from the United States edition, entitled Marketing Management,
13th Edition, ISBN: 978-0-136-00998-6 by Philip Kotler and Kevin Lane Keller, published
by Pearson Education, Inc., publishing as Prentice Hall, Copyright © 2009.
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 EC1N 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 trademarks imply any affiliation
with or endorsement of this book by such owners.
ISBN 978-0-273-71856-7
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 management / Philip Kotler...[et al.]. — 1st European ed.
p. cm.
Inspired by the American ed. of same title.
Includes bibliographical references and index.
ISBN 978-0-273-71856-7 (cased : alk. paper) 1. Marketing—Europe—Management.
2. Marketing—Management. I. Kotler, Philip. II. Kotler, Philip. Marketing management.
HF5415.13.M35224 2009
658.8—dc22
2008053888
10 9 8 7 6 5 4 3 2 1
13 12 11 10 09
Typeset in 10/12 pt Garamond 3by 73
Printed and bound by Rotolito Lombarda, Italy
The publisher’s policy is to use paper manufactured from sustainable forests.
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Dedication
This book is dedicated to my wife and best friend, Nancy, with love.– PK
This book is dedicated to my wife, Punam, and my two daughters, Carolyn and Allison, with
much love and thanks.– KLK
Many thanks to those who helped so much along the way especially Martin, Mum, Bernard
and Cam.– MR
This work is dedicated to my wife, Jill, my daughter Abigail, son David and to the memory of
my father.– MRVG
To Ulla and my parents.– TH
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About the authors
Philip Kotleris one of the world’s leading authorities on marketing. He is the S. C. Johnson
& Son Distinguished Professor of International Marketing at the Kellogg School of Manage-
ment, Northwestern University. He received his Master’s degree at the University of Chicago
and his PhD at MIT, both in economics. He did postdoctoral work in mathematics at Harvard
University and in behavioural science at the University of Chicago.
Dr Kotler is the co-author of Principles of Marketing andMarketing: An Introduction.
His Strategic Marketing for Nonprofit Organizations, now in its seventh edition, is the
best seller in that specialised area. Dr Kotler’s other books include Marketing Models;
The New Competition; Marketing Professional Services; Strategic Marketing for Educa-
tional Institutions; Marketing for Health Care Organizations; Marketing Congregations;
High Visibility; Social Marketing; Marketing Places; The Marketing of Nations; Marketing
for Hospitality and Tourism; Standing Room Only – Strategies for Marketing the Perform-
ing Arts; Museum Strategy and Marketing; Marketing Moves; Kotler on Marketing;
Lateral Marketing: Ten Deadly Marketing Sins; and Corporate Social Responsibility.
In addition, he has published more than one hundred articles in leading journals,
including the Harvard Business Review, Sloan Management Review, Business
Horizons, California Management Review, the Journal of Marketing, the Journal of
Marketing Research, Management Science, the Journal of Business Strategy, and
Futurist. He is the only three-time winner of the coveted Alpha Kappa Psi award for
the best annual article published in the Journal of Marketing.
Professor Kotler was the first recipient of the American Marketing Association’s (AMA)
Distinguished Marketing Educator Award (1985). The European Association of Marketing Con-
sultants and Sales Trainers awarded him their Prize for Marketing Excellence. He was cho-
sen as the Leader in Marketing Thought by the Academic Members of the AMA in a 1975
survey. He also received the 1978 Paul Converse Award of the AMA, honouring his original
contribution to marketing. In 1995, the Sales and Marketing Executives International (SMEI)
named him Marketer of the Year.In 2002, Professor Kotler received the Distinguished Educator
Award from The Academyof Marketing Science. He has received honorary doctoral degrees
from Stockholm University, the University of Zurich, Athens University of Economics and
Business, DePaul University, the Cracow School of Business and Economics, Groupe H.E.C.
in Paris, the Budapes t School of Economic Science and Public Administration, and the Uni-
versity of Economics and Business Administration in Vienna.
Professor Kotler has been a consultant to many major US and foreign companies, includ-
ing IBM, General Electric, AT&T, Honeywell, Bank of America, Merck, SAS Airlines, Michelin,
and others in the areas of marketing strategy and planning, marketing organisation, and
international marketing. He has been Chairman of the College of Marketing of the Institute of
Management Sciences, a Director of the American Marketing Association, a Trustee of the
Marketing Science Institute, a Director of the MAC Group, a member of the Yankelovich Advi-
sory Board and a member of the Copernicus Advisory Board. He was a member of the Board
of Governors of the School of the Art Institute of Chicago and a member of the Advisory Board
of the Drucker Foundation. He has travelled extensively throughout Europe, Asia and South
America, advising and lecturing to many companies about global marketing opportunities.
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Kevin Lane Kelleris the E. B. Osborn Professor of Marketing at the Tuck School of Busi-
ness at Dartmouth College. Professor Keller has degrees from Cornell, Carnegie-Mellon, and
Duke universities. At Dartmouth, he teaches MBA courses on marketing management and
strategic brand management and lectures in executive programmes on those topics.
Previously,ProfessorKellerwasonthefacultyoftheGraduateSchoolofBusinessatStan-
fordUniversity,wherehealsoservedastheheadofthemarketinggroup.Additionally,
hehasbeenonthemarketingfacultyattheUniversityofCaliforniaatBerkeleyandthe
UniversityofNorthCarolinaatChapelHill,beenavisitingprofessoratDukeUniversity
andtheAustralianGraduateSchoolofManagement,andhastwoyearsofindustry
experienceasMarketingConsultantforBankofAmerica.
Professor Keller’s general area of expertise lies in marketing strategy and plan-
ning, and branding. His specific research interest is in how understanding theories
and concepts related to consumer behaviour can improve marketing strategies. His
research has been published in three of the major marketing journals – the Journal
of Marketing, the Journal of Marketing Research, and the Journal of Consumer
Research. He also has served on the Editorial Review Boards of those journals. With
over 60 published papers, his research has been widely cited and has received
numerous awards. Two of his articles, ‘Consumer evaluations of brand extensions’
and ‘Conceptualizing, measuring, and managing customer-based brand equity’
were named by INFORMS Society for Marketing Science in March 2007 to its list of
Top 20 marketing science papers written in the past 25years that have most affected
the practice of marketing science. Professor Keller is acknowledged as one of the interna-
tional leaders in the study of brands, branding and strategic brand management. Actively
involved with industry, he has worked on a host of different types of marketing projects. He
has served as a consultant and advisor to marketers for some of the world’s most successful
brands, including Accenture, American Express, Disney, Ford, Intel, Levi Strauss, Procter &
Gamble and SAB Miller. Additional brand consulting activities have been with other top com-
panies such as Allstate, Beiersdorf (Nivea), BlueCross BlueShield, Campbell’s, Eli Lilly,
ExxonMobil, General Mills, Goodyear, Kodak, Mayo Clinic, Nordstrom, Shell Oil, Starbucks,
Unilever and Young & Rubicam. He has also served as an academic trustee for the Marketing
Science Institute. A popular speaker, he ha s conducted marketing seminars to top executives
in a varietyof forums.
Professor Keller is currently conducting a variety of studies that address strategies to
build, measure and manage brand equity. His textbook on those subjects, Strategic Brand
Management, has been adopted at top business schools and leading firms around the world
and has been heralded as the ‘bible of branding’.
An avid sports, music and film enthusiast, in his so-called ‘spare time’, he has served as
executive producer for one of Australia’s great rock and roll treasures, The Church, as well as
American power-pop legends Dwight Twilley and Tommy Keene. He is also on the Board of
Directors for The Doug Flutie, Jr. Foundation for Autism. Professor Keller lives in Etna, New
Hampsire with his wife, Punam (also a Tuck marketing professor), and his two daughters,
Carolyn and Allison.
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viii ABOUT THE AUTHORS
Mairead Bradyis a lecturer in Marketing at the School of Business, Trinity College Dublin.
She holds a PhD from the University of Strathclyde in Scotland, which she completed under
the supervision of Professors Michael Saren and Nikolaos Tzokas.
She lectures at undergraduate to post-experience Masters level and supervises PhD stu-
dents. She is a lead lecturer on the Master in International Business, a joint
Trinity College and Enterprise Ireland programme targeted at high potential
Irish businesses. She also lectures at the IMI (Irish Management Institute) to
business practitioners. She provides marketing expertise to innovators and
entrepreneurs within universities in Ireland through her work with the Innova-
tion Centre at Trinity College.
As a sought-after consultant, Dr Brady provides consulting and marketing
advice to multinational blue chip companies as well as small start-ups and
Irish government agencies. Her clients range from Vodafone’s Global Brand
Academy to small start-ups supported by regional Enterprise boards.
Dr Brady’s research focuses on the assimilation of information and commu-
nication technologies (ICT) into contemporary marketing practice (CMP) and
along global supply networks (GSN). She is also interested in redesigning
global services supply networks, understanding the level of preparedness for
ICT innovations along GSN, and how consumers interface with the GSN tech-
nology and brands.
Dr Brady is also a member of an international research group, www.cmpnetwork.
intranets.com, which includes researchers from the University of Nottingham, Cranfield
School of Management, University of Auckland, Eindhoven University of Technology, Univer-
sidad Torcuato Di Tella, Argentina, and Georgia State University. This research group pub-
lishes comparative studies into marketing practiceworldwide.
With over 70 publications including journal articles and international conference papers
and presentations, Dr Brady is the author of many journal articles in publications like the
Journal of Marketing Management, the Journal of Business and Industrial Marketing,
International Journal of Technology Marketing, Irish Marketing Review, Irish Journal of Manage-
ment and Management Decision. She has been guest editor of the Creativity and Innovation
Management Journal, IrishJournal of Managementand the Journal of Business and Industrial
Marketing, which she jointly edited with Professor Rod Brodie of the University of Auckland.
She served as chair of the Irish Academy of Management Conference hosted by Trinity
College Dublin in 2004, which attracted the highest ever delegate attendance. She was also
on the organising committee of the 11th International Product Development Management
Conference held at Trinity College in 2004. She is also a reviewer and/or track chair for the
following conferences: European Marketing Academy Conference (EMAC), IEEE/INFORMS

International Conference on Service Operations and Logistics, and Informatics, Academy of
Marketing, The Irish Academy of Marketing, American Marketing Association and the Ameri-
can Academy of Management.
Additionally, Dr Brady regularly serves as reviewer for journals such as European Journal
of Marketing, Journal of Marketing Management, Qualitative Market Research: An International
Journal, Journal of the Irish Academy of Management, Journal of Business and Industrial Market-
ing and Management Research News. She has contributed book chapters to a selection of
books including two chapters to Marketing Graffitiwritten by Professor Michael Saren.
Her many conference publications include the European Academy of Management
(EURAM), American Academy of Management (AM), the British Academy of Management
(BAM), the Irish Academy of Management, the Academy of Marketing (UK and Ireland), the
European Academy of Marketing (EMAC), Australian and New Zealand Marketing Academy
(ANZMAC), IEEE/Informs, the European Group in Organisational Studies (EGOS) and the Acad-
emy of International Business. She was the communications director for the technology and
innovation special interest group of the American Marketing Association.
With a busy work and home life, Mairead still makes the time to enjoy travel and cooking.
She particularly likes socialising with friends at dinner parties. She is actively involved with a
range of charities and particularly enjoys her work with economically disadvantaged children
in Dublin’s inner city. Bringing educational and social support to these children through
activities such as homework clubs and playgroups is both rewarding and fun.
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ABOUT THE AUTHORS ix
Malcolm Robert Victor Goodmanteaches both undergraduates and postgraduates at the
University of Durham in the UK. His specialist subjects are business creativity, organisational
change and marketing. He is an external examiner for the Edward de Bono Institute of Cre-
ativity at the University of Malta.
He graduated in economics after submitting a practical marketing study on the
cricket bat and ball industries of Britain designed to explore the gap between theo-
retical knowledge and its application to the real world. This became the springboard
for a lifetime interest in the practical application of marketing concepts and tech-
niques. Professor Goodman also holds the Diploma from the UK’s Chartered Insti-
tute of Marketing.
The paradigm change in many markets, both in Europe and further afield, from
sellers’ to buyers’ markets sparked his fascination with the problems that many
organisations face as they seek to come to terms with the challenges presented by
mounting global competition. This has led to him developing a keen interest in busi-
ness creativity and organisational change. The pursuit of business success now
requires a holistic integration of creative management and marketing management
skills and this challenges organisations to pursue and adopt new attitudes and skills.
Publications include original texts on The Cricket Bat and Ball Industries of Britain
and Creative Management. He also contributed a chapter titled ‘Managing in times of
change: avoiding management myopia’ in Strategy and Performance: Achieving Com-
petitive Advantage in the Global Market edited by Abby Ghobadian, Nicholas O’Regan, David
Gallear and Howard Viney, which has been translated into Chinese. Professor Goodman has
produced several papers for academic, trade and industry publications. He has also authored
and contributed to distance learning courses in marketing for Durham University Business
School and tutored on the UK’s Open University Creative Management course.
Before entering the academic profession, Professor Goodman gained experience in the
practical application of creative management and marketing skills in executive posts in
British Leyland (where he was market planner for British Leyland France); for General
Motors; Lucas Industries and the Tube Investments Group. He also served as Marketing
Director for Lindley Lodge, a charity charged with the provision of development training pro-
grammes for young people, which provided useful experience in getting results with a very
small budget. Training courses run for the coal and steel industries were balanced by the pio-
neering of programmes for national retailers such as Boots and Marks & Spencer.
During his career, management briefs have covered both consumer and business-to-
business assignments. These have included product and market planning posts that have
provided a wealth of experience in working with outside professional agencies. Professor
Goodman has worked on several international assignments and has conducted on-the-spot

marketing surveys and management briefs in Europe (particularly France and Germany) and
in the Far East (especially Indonesia, Malaysia, Singapore and Thailand).
He has been a consultant to and been involved in creative management and marketing
training with many organisations including ICI, Lucas, Marks & Spencer, Price Waterhouse,
Royal Navy, Sunderland Association Football Club and Uniroyal. He has also contributed to
the UK Government inspired gifted and talented youth programme (NAGTY) by running two-
week Summer School programmes in practical business skills at the University of Durham.
In his youth Professor Goodman played football and roamed the pitch for the London based
Crystal Palace FC. A lifetime interest in sport – mainly football and cricket – has convinced
him of the importance of taking a holistic and team-based approach to management tasks.
His academic career began with an appointment to teach marketing and management skills
on the Royal Navy Resettlement Programme and to run UK Government sponsored practical
business courses for small businesses (SMEs) at the Portsmouth Management Centre. He
also brought and further developed the retail oriented training programmes that he had pio-
neered at Lindley Lodge. His current activity is characterised by a strong desire to assist
clients and students to practically apply creative management and marketing skills to enable
them to make a difference in highly competitive global markets.
Outside of work he cites his main interests – other than sport – to be camping, creative
thinking, current affairs, and classical music. He is happily married to Jill and has an adult
daughter and son.