Marketing management : a relationship approach

Cover......Page 1
Title......Page 4
Copyright......Page 5
Contents......Page 8
Guided tour......Page 17
Preface......Page 22
About the author......Page 29
Author's acknowledgements......Page 30
Publisher's acknowledgements......Page 31
 Learning objectives......Page 38
 1.2 The marketing management process......Page 39
 1.3 The traditional (transactional) marketing (TM) concept versus the relationship marketing (RM) concept......Page 45
 1.5 How the RM concept influences the traditional marketing concept......Page 50
 1.6 Different organisational forms of RM......Page 53
 1.7 Summary......Page 54
 Case study 1.1: Hunter Boot Ltd: the iconic British brand is moving into exclusive fashions......Page 55
 References......Page 57
PART I: ASSESSING THE COMPETITIVENESS OF THE FIRM (INTERNAL)......Page 60
 Part I: Video case study: Tata Nano - competitiveness of the world's cheapest car......Page 61
 Introduction to Part I......Page 65
  Learning objectives......Page 66
  2.2 Roots of competitive advantage......Page 67
  2.3 The resource-based view (RBV)......Page 68
   Exhibit 2.1: Honda's competences in small engines......Page 70
  2.4 Market orientation view (MOV) compared to the resource-based view......Page 72
  2.5 The value chain-based view (VBV)......Page 75
   Exhibit 2.2: Nike's value chain......Page 77
   Exhibit 2.3: The value chain of Acme Axles, Inc.......Page 82
  2.6 Value shop and the 'service value chain'......Page 84
  2.7 Internationalising the value chain......Page 88
  2.8 The virtual value chain......Page 90
  2.9 Experiential marketing......Page 92
   Exhibit 2.4: IKEA's use of AR......Page 94
  2.10 Summary......Page 95
  Case study 2.1: Zalando: how can the online apparel retailer turn financial losses into positive profits?......Page 96
  References......Page 103
  Learning objectives......Page 106
  3.2 General sources of competitive advantage......Page 107
  3.3 Introduction of a holistic model of competitiveness: from macro to micro level......Page 110
  3.4 Analysis of national competitiveness (the Porter diamond)......Page 113
  3.5 Competition analysis in an industry......Page 117
  3.6 Value chain analysis......Page 121
  3.7 Blue ocean strategy and value innovation......Page 128
   Exhibit 3.1: Value innovation at hotel chain Formule 1......Page 130
  3.8 Outsourcing – a strategic decision framework based on customers' evaluation......Page 132
   Exhibit 3.2: Sony, an outsourcing company......Page 135
  3.9 Summary......Page 137
  Case study 3.1: Nintendo Wii: Nintendo's Wii took first place on the world market – but it didn't last......Page 139
  References......Page 144
PART II: ASSESSING THE EXTERNAL MARKETING SITUATION......Page 148
 Part II: Video case study: Müller - Müller yogurts are penetrating the US market......Page 149
 Introduction to Part II......Page 150
  Learning objectives......Page 152
  4.1 Introduction......Page 153
  4.2 Consumer B2C decision making......Page 156
  4.3 Influences on consumers' decision making......Page 161
   Exhibit 4.1: Example of loyalty: store loyalty versus brand loyalty......Page 166
  4.4 Organisational B2B decision making......Page 168
  4.5 Influences on the buying process......Page 178
  4.6 Customer-perceived value and customer satisfaction......Page 182
  4.7 Customisation – tailoring the offer to the individual customer......Page 185
  4.8 Summary......Page 188
  Case study 4.1: Spotify: the online music-streaming company is expanding globally......Page 190
  References......Page 196
  Learning objectives......Page 198
  5.1 Introduction......Page 199
  5.2 Who are our competitors?......Page 202
  5.3 How are the competitors interacting?......Page 204
   Exhibit 5.1: McDonald's and Burger King in an asymmetric interaction......Page 205
  5.4 How do we learn about our competitors?......Page 206
  5.5 What are the strengths and weaknesses of our competitors?......Page 208
  5.6 Market commonality and resource commonality......Page 210
  5.7 What are the objectives and strategies of our competitors?......Page 211
  5.8 What are the response patterns of our competitors?......Page 213
   Exhibit 5.2: Role play in CI as a predictor of competitive behaviour......Page 214
  5.9 Six steps to competitor analysis......Page 215
  5.10 How can we set up an organisation for competitor analysis and CI?......Page 217
   Exhibit 5.3: Counterintelligence done by Johnson Controls against Honeywell......Page 218
  5.11 Summary......Page 219
  Case study 5.1: Cereal Partners Worldwide (CPW): The no. 2 world player is challenging the no. 1 – Kellogg......Page 220
  References......Page 227
  Learning objectives......Page 229
  6.1 Introduction......Page 230
   Exhibit 6.1: Value chain of Braun (Oral-B) electric toothbrush......Page 231
  6.2 The value net......Page 233
   Exhibit 6.2: Value net of Braun (Oral-B) electric toothbrush......Page 234
  6.3 Relationships with customers......Page 235
   Exhibit 6.3: Speedo's relations with its retailers......Page 246
  6.4 Relationships with suppliers......Page 252
  6.5 Relationships with complementors/partners......Page 255
   Exhibit 6.4: Irn-Bru's distributor alliance (Y coalition) with Pepsi Bottling Group (PBG) in Russia......Page 256
  6.6 Relationships with competitors......Page 260
   Exhibit 6.5: Value net – cooperation/coopetition between competitors within each airline alliance. The three alliances are competing against each other......Page 262
  6.7 Internal marketing (IM) relationships......Page 263
  6.8 Summary......Page 264
  Case study 6.1: ARM: challenging Intel in the world market of computer chips......Page 266
  References......Page 270
PART III: DEVELOPING MARKETING STRATEGIES......Page 276
 Part III: Video case study: Nivea: segmentation of the sun-care market......Page 277
 Introduction to Part III......Page 280
  Learning objectives......Page 282
  7.3 SWOT analysis......Page 283
  7.4 Corporate objectives......Page 289
  7.5 Corporate growth strategy......Page 291
  7.6 SBU marketing strategy/portfolio analysis......Page 293
  7.7 Introduction to portfolio models......Page 295
  7.8 The Boston Consulting Group's growth-share matrix – the BCG model......Page 296
  7.9 General electric market attractiveness – business position matrix (GE matrix)......Page 302
  7.10 International portfolio analysis......Page 305
  7.11 Portfolio analysis of supplier relationships......Page 308
  7.12 Summary......Page 312
  Case study 7.1: Red Bull: the global market leader in energy drinks is considering further market expansion......Page 314
  Questions for discussion......Page 322
  References......Page 323
  Learning objectives......Page 325
  8.1 Introduction......Page 326
   Exhibit 8.1: Segmentation in the pet food market......Page 331
  8.2 Segmentation in the B2C market......Page 332
   Exhibit 8.2: Segmentation in work ('salty snacks in the workplace')......Page 337
  8.3 Segmentation in the B2B market......Page 339
  8.4 Target marketing......Page 344
  8.5 Positioning......Page 347
   Exhibit 8.3: Björn Borg's brand positioning and business modelling in the international apparel market......Page 349
  8.6 Generic competitive strategies......Page 350
   Exhibit 8.4: Good-enough markets in China – the case of Duracell batteries......Page 352
  8.7 Offensive and defensive competitive strategies......Page 353
  8.8 Summary......Page 357
  Case study 8.1: LEGO Friends: the world's third-largest toy manufacturer is moving into the girls' domain......Page 359
  References......Page 363
  Learning objectives......Page 366
  9.1 Introduction......Page 367
  9.2 Different levels of ethical behaviour......Page 368
  9.3 Social marketing as part of CSR......Page 370
   Exhibit 9.1: Examples of cause-related marketing campaigns......Page 371
  9.5 Identification of stakeholders in CSR......Page 372
  9.7 The sustainable global value chain (SGVC)......Page 373
  9.8 CSR and international competitiveness......Page 374
  9.9 Poverty (BOP market) as a 'market' opportunity......Page 376
   Exhibit 9.2: Grameen Danone Foods opens plant in Bangladesh......Page 380
  9.10 The 'green' market as a business opportunity......Page 381
   Exhibit 9.3: Unilever's introduction of 'Comfort One Rinse' saves water......Page 382
  9.11 Summary......Page 386
  Case study 9.1: YouthAIDS: social marketing in a private, non-profit organisation......Page 387
  References......Page 392
PART IV: DEVELOPING MARKETING PROGRAMMES......Page 394
 Part IV: Video case study: Tequila Avión - a premium tequila is introduced......Page 395
 Introduction to Part IV......Page 396
  Learning objectives......Page 399
  10.2 Building buyer–seller relationships in B2B markets......Page 400
  10.3 Relationship quality......Page 402
  10.4 Building buyer–seller relationships in B2C markets......Page 403
   Exhibit 10.1: Husqvarna's consumer wheel......Page 404
  10.5 Managing loyalty......Page 407
   Exhibit 10.3: Developing service loyalty at Volkswagen......Page 410
   Exhibit 10.4: Best Buy's approach to loyalty, compared to competitor Circuit City......Page 412
  10.6 The CRM path to long-term customer loyalty and advocacy......Page 413
  10.7 Key account management (KAM)......Page 415
  10.8 Summary......Page 421
  Case study 10.1: Dassault Falcon: the private business jet, Falcon, is navigating in the global corporate business sector......Page 422
  References......Page 430
  Learning objectives......Page 433
  11.1 Introduction......Page 434
  11.3 Service strategies......Page 435
  11.4 New product development (NPD)......Page 443
  11.5 The product life cycle......Page 445
   Exhibit 11.1: Threadless T-shirt crowdsourcing business......Page 450
  11.6 New products for the international market......Page 451
  11.8 Product positioning......Page 453
  11.9 Branding......Page 454
   Exhibit 11.2: Roundup – a global brand for multiple markets......Page 458
   Exhibit 11.3: Kellogg is under pressure to produce Aldi's own-label goods......Page 459
  11.10 Brand equity......Page 461
  11.11 Implications of the Internet for product decisions......Page 462
   Exhibit 11.4: Ducati motorcycles – product development through Web communities......Page 463
  11.12 'Long tail' strategies......Page 466
  11.13 Summary......Page 467
  Case study 11.1: British American Tobacco (BAT): launch of the e-cigarette Vype......Page 469
  References......Page 473
  Learning objectives......Page 477
  12.2 Pricing from an economist's perspective......Page 478
   Exhibit 12.1: Johnnie Walker whisky faced positive price elasticity in Japan......Page 480
  12.3 Pricing from an accountant's perspective......Page 481
  12.4 A pricing framework......Page 482
  12.5 Market value-based pricing versus cost-based pricing......Page 486
   Exhibit 12.2: Value-based pricing in Bossard – the '15/85 rule'......Page 488
  12.6 Pricing services versus physical products......Page 489
  12.7 Pricing new products......Page 490
  12.8 Price changes......Page 492
  12.9 Experience curve pricing......Page 493
  12.10 Product line pricing......Page 494
  12.12 Pricing for different segments......Page 496
  12.13 Relationship pricing......Page 498
  12.14 Pricing on the Internet......Page 500
  12.16 Summary......Page 501
  Case study 12.1: Harley-Davidson: is the image justifying the price level in a time of recession?......Page 502
  References......Page 506
  Learning objectives......Page 508
  13.1 Introduction......Page 509
  13.2 The basic functions of channel participants......Page 510
  13.3 Distributor portfolio analysis......Page 511
  13.4 Developing and managing relationships between manufacturer and distributor......Page 512
  13.5 External and internal determinants of channel decisions......Page 513
  13.6 The structure of the channel......Page 515
  13.7 Multiple distribution-channel strategy......Page 518
  13.8 Managing and controlling distribution channels......Page 519
  13.9 Implications of the Internet for distribution decisions......Page 524
  13.10 Online retail sales......Page 525
  13.11 Smartphone marketing......Page 526
  13.12 Channel power in international retailing......Page 528
   Exhibit 13.1: The ' banana split' model......Page 529
  13.13 Mystery shopping in retailing......Page 532
  13.14 Summary......Page 533
  Case study 13.1: Bosch Indego: how to build B2B and B2C relationships in a new global product market – robotic lawnmowers......Page 534
  Questions for discussion......Page 537
  References......Page 538
  Learning objectives......Page 540
  14.1 Introduction......Page 541
  14.2 The communication process......Page 542
  14.3 Communication tools......Page 548
   Exhibit 14.1: LEGO Ninjago's 360-degree marketing communication......Page 553
   Exhibit 14.2: Ambush marketing strategy – Dutch brewery vs Anheuser Busch's Budweiser during the FIFA World Cup 2010......Page 557
  14.4 Personal selling......Page 560
  14.5 Trade fairs and exhibitions......Page 565
  14.6 Social media marketing......Page 567
   Exhibit 14.3: Generating buzz in the pre-communication stage for BMW 1 Series M Coupé......Page 574
  14.7 Developing a viral marketing campaign......Page 575
  14.8 Summary......Page 577
  Case study 14.1: Orabrush Inc.: how a 'pull' B2C YouTube marketing strategy helped consumers to focus on the 'bad breath' problem......Page 578
  References......Page 581
PART V: ORGANISING, IMPLEMENTING AND CONTROLLING THE MARKETING EFFORT......Page 584
 Part V: Video case study: Pret A Manger - how to control the expansion of an international restaurant chain......Page 585
 Introduction to Part V......Page 587
  Learning objectives......Page 589
  15.2 Marketing audit......Page 590
  15.3 Building the marketing plan......Page 591
  15.4 Organising the marketing resources......Page 595
  15.5 Implementation of the marketing plan......Page 601
  15.6 The role of internal marketing......Page 602
   Exhibit 15.1: Merger of Mars' European food, pet care and confectionery divisions......Page 604
  15.7 Summary......Page 605
  Case study 15.1: Triumph: how to manoeuvre as a modern brand in the global underwear market......Page 606
  Questions for discussion......Page 618
  References......Page 619
  Learning objectives......Page 620
  16.2 Budgeting......Page 621
  16.3 Social media metrics......Page 626
  16.4 Customer profitability and customer lifetime value......Page 630
   Exhibit 16.1: Simulation of firm X's customer value (cumulative sales for firm X over periods 1 to 10) with different retention rates......Page 636
  16.5 Controlling the marketing programme......Page 637
  16.6 Summary......Page 644
  Case study 16.1: Sony Music Entertainment: new worldwide organisational structure and the marketing, planning and budgeting of Pink's new album......Page 645
  References......Page 651
 Learning objectives......Page 653
 A.2 Data warehousing......Page 654
 A.4 The customer information file......Page 655
 A.5 Linking market research to the decision-making process......Page 657
 A.6 Secondary research......Page 659
 A.7 Primary research......Page 663
 A.8 Online (Internet) primary research methods......Page 674
 A.9 Other types of market research......Page 676
 A.10 Setting up a marketing information system (MIS)......Page 680
 A.11 Marketing research based on Web 2.0......Page 681
 A.12 Summary......Page 682
 References......Page 683
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