Marketing Management: A relationship approach

Front Cover
Brief Contents
Contents
Guided tour
Preface
Digital resources
Chapter 1: Introduction
	1.1: Introduction
	1.2: The marketing management process
		Marketing strategy
		Marketing plan
		Strengths of the hierarchical approach to marketing planning
		Weaknesses of the hierarchical approach to marketing planning
	1.3: The traditional (transactional) marketing (TM ) concept versus the relationship marketing (RM ) concept
		The traditional (transactional) marketing concept
		The relationship marketing (RM) concept
		Importance of customer retention: a case study of how to bridge the gap between TM and RM
	1.4: Balancing the transactional and relationship concepts throughout the book
	1.5: How the RM concept influences the traditional marketing concept
		Product
		Price
		Distribution
		Communication (promotion)
	1.6: Different organisational forms of RM
	1.7: Summary
	Case study 1.1: Hunter Boot Ltd: the iconic British brand is moving into exclusive fashion
Part I: Assessing the competitiveness of the firm (internal)
	Part I: Video case study: BYD electrical cars: the Chinese electric car manufacturer is considering sales worldwide
		Introdution to Part I
	Chapter 2: Identification of the firm’s core competences
		2.1: Introduction
			From capability to advantage
		2.2: Roots of competitive advantage
		2.3: The resource-based view (RBV)
			Resources
			Competence
			Exhibit 2.1: Honda’s competences in small engines
		2.4: Market orientation view (MOV) compared to the resource -based view
			Exploitation versus exploration
		2.5: The value chain-based view (VBV)
			The value chain
			Exhibit 2.2: Nike’s value chain
			Customer value proposition (CVP)
			Exhibit 2.3: The value chain of Acme Axles, Inc.
		2.6: Value shop and the ‘service value chain’
			Combining the ‘product value chain’ and the ‘service value chain’
		2.7: Internationalising the value chain
			International configuration and coordination of activities
		2.8: The virtual value chain
			Online customer value proposition (OCVP)
		2.9: Experiential marketing
			Augmented reality (AR)
		2.10: Artificial intelligence (AI) and its influence on marketing
			Exhibit 2.4: IKEA’s use of AR
		2.11: Summary
			Exhibit 2.5: Harley-Davidson’s use of AI in New York
		Case study 2.1: Electrolux
	Chapter 3: Development of the firm’s competitive advantage
		3.1: Introduction
		3.2: General sources of competitive advantage
			Economies of scale (efficiencies of global scale and volume)
			Economies of scope (transfer of resources, experience, ideas and successful concepts across products and markets)
			Time-based competition (TBC)
		3.3: Introduction of a holistic model of competitiveness: from macro to micro level
			Individual competitiveness and time-based competition
		3.4: Analysis of national competitiveness (Porter’s diamond)
			Factor conditions
			Demand conditions
			Related and supporting industries
			Firm strategy, structure and rivalry
			Government
			Chance
			The ‘double diamond’ and ‘multiple diamond’ framework
		3.5: Competition analysis in an industry
			Market competitors
			Suppliers
			Buyers
			Substitutes
			New entrants
			Strategic groups
			The collaborative ‘five sources’ model
		3.6: Value chain analysis
			The competitive triangle
			Competitive benchmarking
		3.7: Blue ocean strategy and value innovation
			Value innovation
		3.8: The sharing economy
			Exhibit 3.1: Value innovation at hotel chain Formule 1
		3.9: Summary
			Analysis of national/regional competitiveness
			Competition analysis
			Value chain analysis
		Case study 3.1: Nintendo Switch: Is this the ‘Blue Ocean’ come-back
Part II: Assessing the external marketing situation
	Part II: Video case study: Müller yogurts are penetrating the US market by the Muller Quaker Joint Venture and exit again two years later
		Introduction to Part II
	Chapter 4: Customer behaviour
		4.1: Introduction
			Types of E-Commerce
		4.2: Consumer B2C decision making
			Determinants of consumer involvement
			The consumer buying process
		4.3: Influences on consumers’ decision making
			Needs
			Perception
			Memory
			Attitudes
			Socio-demographic variables
			Family life cycle (FLC)
			Social networks
			Exhibit 4.1: Example of loyalty: store loyalty versus brand loyalty
		4.4: Organisational B2B decision making
			Identifying buyers in organisational markets
			Buying situations
		4.5: Influences on the buying process
			Environmental forces
			Organisational forces
			Group forces
			Individual forces
		4.6: Customer-perceived value and customer satisfaction
			Measuring customer satisfaction/customer value
			Customer satisfaction, loyalty and bonding
			Increasing customer skills through investments in customers
		4.7: Customisation – tailoring the offer to the individual customer
			The challenges of customisation
		4.8: 3-D Printing – a possible new industrial revolution in customisation
		4.9: Gamification and its use for marketers
			Exhibit 4.2: Coca Cola Israel increases its sales of their mini bottle through a ‘Mini Me ’3-D Print campaign
		4.10: Summary
			Exhibit 4.3: Niantic brings ‘Pokémon Go’ games to McDonald’s and Starbucks
		Case study 4.1: Spotify: The online music-streaming company is growing fast but is suffering financial imbalance
	Chapter 5: Competitor analysis and intelligence
		5.1: Introduction
		5.2: Who are our competitors?
		5.3: How are the competitors interacting?
		5.4: How do we learn about our competitors?
			Proactive or reactive CI
			Formal or informal CI
			Exhibit 5.1: McDonald’s and Burger King in an asymmetric interaction
			Why the internet is a good source of CI
			Types of CI available
		5.5: What are the strengths and weaknesses of our competitors?
		5.6: Market commonality and resource commonality
		5.7: What are the objectives and strategies of our competitors?
			Assessing competitors’ current strategies
			The four Ps
		5.8: What are the response patterns of our competitors?
			Exhibit 5.2: Role play in CI as a predictor of competitive behaviour
		5.9: Six steps to competitor analysis
			1: Identifying your company’s competitors
			2: Identifying the information required and the information sources of competitor intelligence
			3: Analysing strengths and weaknesses of competitors with respect to the market requirements
			4: Assessing the company’s competitive position vis-à-vis key competitors
			5: Investigating the goals and long-term strategies of competitors
			6: Selecting the company strategies to compete against the competitor, locally and globally, taking into account possible competitor reactions
		5.10: How can we set up an organisation for competitor analysis and CI?
			Exhibit 5.3: Counterintelligence done by Johnson Controls against Honeywell
			Expanded human resources/single responsibility
		5.11: Summary
		Case study 5.1: Cereal Partners Worldwide (CPW): The no. 2 world player is challenging the no. 1 – Kellogg
	Chapter 6: Analysing relationships in the value chain
		6.1: Introduction
		6.2: The value net
			Exhibit 6.1: Value chain of Braun (Oral-B) electric toothbrush
		6.3: Relationships with customers
			Exhibit 6.2: Value net of Braun (Oral-B) electric toothbrush
			Developing buyer–seller relationships – the marriage metaphor
			Buyer–seller relationships in a cross-cultural perspective
			Distance reduction in international strategic alliances
			The nature of the customer and the behaviour spectrum
			Implications for relationship marketing strategies
			Behavioural conditions in buyer–seller relationships
			Exhibit 6.3: Speedo’s relations with its retailers
			Relationships in B2B markets versus B2C markets
			One-to-one marketing relationships
			Bonding in buyer–seller relationships
		6.4: Relationships with suppliers
			Reverse marketing
		6.5: Relationships with complementors/partners
			Y coalitions
			Exhibit 6.4: Irn-Bru’s distributor alliance (Y coalition) with Pepsi Bottling Group (PBG in Russia
			X coalitions
			Co-branding
			Ingredient branding
		6.6: Relationships with competitors
			Exhibit 6.5: Value net – cooperation/coopetition between competitors within each airline alliance. The three alliances are competing against each other
		6.7: Internal marketing (IM ) relationships
		6.8: Summary
		Case study 6.1: ARM : challenging Intel in the world market of computer chips
Part III: Developing marketing strategies
	Part III: Video case study: Nivea: Segmentation of the sun-care market
		Introduction to Part III
	Chapter 7: SWOT analysis, strategic marketing planning and portfolio analysis
		7.1: Introduction
		7.2: Corporate mission
		7.3: Swot analysis
			Conditions for an effective and productive SWOT analysis
			SWOT-driven strategic marketing planning
		7.4: Corporate objectives
		7.5: Corporate growth strategy
			Market penetration
			Market development
			Geographic expansion
			Product development
			Diversification
		7.6: SBU marketing strategy/portfolio analysis
			Product life cycle (PLC)
		7.7: Introduction to portfolio models
		7.8: The Boston Consulting Group’s growth–share matrix – the BCG model
			Market growth rate
			Relative market shares
			Strategy implications of BCG
			The relationship between the BCG model and the concept of PLC
			The advantages of the BCG model
			The disadvantages of the BCG model
		7.9: General electric market attractiveness –business position matrix (ge matrix)
			Compiling the GE matrix
			Advantages and disadvantages of the GE matrix
		7.10: International portfolio analysis
		7.11: Portfolio analysis of supplier relationships
			Why are there so many advocates of the relationship focus in marketing?
			Strategic implications of the supplier’s portfolio
		7.12: Summary
		Case study 7.1: William Demant hearing aids
	Chapter 8: Segmentation, targeting, positioning and competitive strategies
		8.1: Introduction
			Pitfalls with segmentation
			Factors favouring market segmentation
			Factors discouraging market segmentation
			Requirements for effective market segmentation
			Two common segmenting methods
			Identifying segmentation variables
		8.2: Segmentation in the B2C market
			Exhibit 8.1: Segmentation in the pet food market
			The sociodemographic variables
			Behaviouristic variables
			Psychographic variables
			Benefits-sought variables
			Multidimensional segmentation
		8.3: Segmentation in the B2B market
			Exhibit 8.2: Segmentation in work (‘salty snacks in the workplace’)
			Bonoma and Shapiro’s (1983) macro-/micro-segmentation process
			A relationship approach to B2B segmentation
		8.4: Target marketing
			Undifferentiated (mass) marketing
			Differentiated marketing
			Concentrated (niche) marketing
		8.5: Positioning
			Exhibit 8.3: Björn Borg’s brand positioning and business modelling in the international apparel market
		8.6: Generic competitive strategies
			Cost leadership
			Differentiation
			Differentiation focus
			Cost focus
		8.7: Offensive and defensive competitive strategies
			Exhibit 8.4: Good-enough markets in China – the case of Duracell batteries
			Offensive strategies
			Defensive strategies
		8.8: Summary
		Case study 8.1: LEGO Friends: One of the world’s largest toy manufacturer moves into the girls’ domain
	Chapter 9: CSR strategy and the sustainable global value chain
		9.1: Introduction
			Definition of CSR
		9.2: Different levels of ethical behaviour
		9.3: Social marketing as part of CSR
		9.4: Cause-related marketing
		9.5: Identification of stakeholders in CSR
			Exhibit 9.1: Examples of cause-related marketing campaigns
		9.6: Drivers of CSR
			Long-term benefit drivers of CSR
		9.7: The sustainable global value chain (SGV C)
		9.8: CSR and international competitiveness
			CSR benefits
			CSR costs
		9.9 The Triple Bottom Line (TBL)
		9.10: Poverty (BOP market) as a ‘market’ opportunity
			The poor as consumers
			The poor as marketers of products and services
			Exhibit 9.:2: Grameen Danone Foods opens plant in Bangladesh
		9.11: The ‘green’ market as a business opportunity
			Enviropreneur marketing
			Global warming (climate change)
			Exhibit 9.3: Unilever’s introduction of ‘Comfort One Rinse’ saves water
			Segmenting the ‘green’ consumer market
		9.12: Summary
		Case study 9.1: YouthAIDS: social marketing in a private, non-profit organisation
Part IV: Developing marketing programmes
	Part IV: Video case study: Tequila Avión: A premium tequila is introduced
		Introduction to part IV
		The extended marketing mix
			Participants
			Process
			Physical evidence
	Chapter 10: Establishing, developing and managing buyer–seller relationships
		10.1: Introduction
		10.2: Building buyer–seller relationships in B2B markets
		10.3: Relationship quality
		10.4: Building buyer–seller relationships in B2C markets
			Exhibit 10.1: Husqvarna’s consumer wheel
			Exhibit 10.2: Employee commitment drives value at Southwest Airlines
		10.5: Managing loyalty
			Steps in a loyalty-based relationship strategy
			Exhibit 10.3: Developing service loyalty at Volkswagen
		10.6: The crm path to long-term customer loyalty and advocacy
			Stage 1: Customer acquisition (the courtship)
			Stage 2: Customer retention (the relationship)
			Stage 3: Strategic customer care (the marriage)
			Stage 4: Customer advocacy (the marriage)
		10.7: Key account management (kam)
			Implementation of KAM
			Customer-complaint management in KAM
			The dyadic development of KAM
			KAM effectiveness and performance
		10.8: Summary
		Case study 10.1: Dassault Falcon: the private business jet, Falcon, is navigating in the global corporate business sector
	Chapter 11: Product and service decisions
		11.1: Introduction
			What is a product?
			Importance of service
		11.2: The components of the product offer
		11.3: Service strategies
			Characteristics of services
			The Service-Dominant logic (S-D logic)
			Global marketing of services
			Categories of service
			Determining the service quality gap
			Exhibit 11.1: Hilti is selling the ‘use’ – not the product
			After-sales services (AS)
			Full-service contracts
			e-Services
			Service in the business-to-business market
		11.4: New product development (NPD )
			The multiple-convergent process model
			Product platform/modularity in NPD
		11.5: The product life cycle
			Limitations of the product life cycle
			Technological life cycle
			Crowdsourcing
			Exhibit 11.2: Threadless T-shirt crowdsourcing business
		11.6: New products for the international market
			Developing new products/cutting the time-to-market
			Degrees of product newness
		11.7: Product cannibalisation
			Conditions for successful cannibalisation
		11.8: Product positioning
		11.9: Branding
			Branding decisions
			Exhibit 11.3: Roundup – a global brand for multiple markets
			Exhibit 11.4: Kellogg is under pressure to produce Aldi’s own-label goods
		11.10: Brand equity
			Definitions of ‘brand equity’
		11.11: Implications of the internet for product decisions
			Customisation and closer relationships
			Dynamic customisation of product and services
		11.12: Global mobile app marketing
		11.13: Internet of Things (IoT) and its use for marketers
			Exhibit 11.5: Google’s use of IoT in form of the smart thermostat, Nest
			What opportunities does IoT provide for future marketers?
			The marketer’s use of IoT
		11.14: ‘Long tail’ strategies
		11.15: Summary
		Case study 11.1: Tinder – the famous dating app brand is facing increasing competition from e.g. Badoo
	Chapter 12: Pricing decisions
		12.1: Introduction
		12.2: Pricing from an economist’s perspective
			Competitor price response
			Exhibit 12.1: Johnnie Walker whisky faced positive price elasticity in Japan
		12.3: Pricing from an acc ountant’s perspective
			Break-even market share
		12.4: A pricing framework
			Firm-level factors
			Product factors
			Environmental factors
			Market factors
		12.5: Market value-based pricing versus cost-based pricing
			Value-based pricing
			Value pricing based on ‘total cost of ownership’
		12.6: Pricing services versus physical products
		12.7: Pricing new products
			Skimming vs penetration pricing
			Exhibit 12.2: Value-based pricing in Bossard – the ‘15/85 rule’
			Market pricing
		12.8: Price changes
		12.9: Experience curve pricing
		12.10: Product line pricing
			Freemium
		12.11: Price bundling
		12.12: Dynamic pricing for different segments
			Geographic segments
			Usage segments
			Time segments (off-peak pricing)
			Demographic segments
		12.13: Subscription-based pricing
			Subscription pricing strategies
			Exhibit 12.3: Dollar Shave Club
		12.14: Relationship pricing
			Establishing global pricing contracts (GPCs)
		12.15: Pricing on the internet
		12.16: Communicating prices to the target markets
		12.17: Summary
		Case study 12.1: Harley-Davidson: How should the pricing strategy be affected by the new EU tariffs in 2018?
	Chapter 13: Distribution decisions
		13.1: Introduction
		13.2: The basic functions of channel participants
		13.3: Distributor portfolio analysis
		13.4: Developing and managing relationships between manufacturer and distributor
		13.5: External and internal determinants of channel decisions
			Customer characteristics
			Nature of the product
			Nature of demand/location
			Competition
			Legal regulations/local business practices
		13.6: The structure of the channel
			Market coverage
			Channel length
			Control/cost
			Degree of integration
		13.7: From single-channel to omnichannel strategy
		13.8: Managing and controlling distribution channels
			Screening and selecting intermediaries
			Contracting (distributor agreements)
			Motivating
			Controlling
			Termination
		13.9: Implications of the internet for distribution decisions
		13.10: Blockchain technology and its influence on marketing and SCM
			The marketer’s use of the blockchain
			The use of blockchain technology in SCM provides trust
		13.11: Online retail sales
			Exhibit 13.1: Maersk’s use of blockchains in their shipping
		13.12: Smart phone marketing
			Benefits of m-marketing
			Location based app services
		13.13: Channel power in international retailing
			Exhibit 13.2: The ‘Banana Split’ model
		13.14: Mystery shopping in retailing
		13.15: Summary
		Case study 13.1: Bosch Indego: how to build B2B and B2C relationships in a new global product market – robotic lawnmowers
	Chapter 14: Communication decisions
		14.1: Introduction
		14.2: The communication process
			Opinion leadership
			Buyer initiative in the communication process
			Key attributes of effective communication
			Other factors affecting communication
			Push versus pull strategies
			Mass customisation, one-to-one marketing and the push-pull strategy
		14.3: Communication tools
			Advertising
			Public relations
			Exhibit 14.1: LEGO Ninjago’s 360-degree marketing communication
			Exhibit 14.2: Ambush marketing strategy – Dutch brewery vs Anheuser Busch’s Budweiser during the FIFA World Cup 2010
			Sales promotion
			Direct marketing
		14.4: Personal selling
			The steps in personal selling
			Assessing salesforce effectiveness
		14.5: Trade fairs and exhibitions
		14.6: Social media marketing
			Web 2.0
			Social media
			From ‘Bowling’ to ‘Pinball’
			The 6C model of social media marketing
		14.7: Categorisation of social media
			The four Social Media categories
		14.8: The social media funnel
		14.9: Development of the social media marketing plan
			Step 1: Conduct a social media audit (where are we today?)
			Step 2: Create social media marketing objectives
			Step 3: Choose the most relevant social media platforms to work with
			Step 4: Get social media inspiration from industry leaders, competitors and key opinion leader in the online community
			Step 5: Create a content and time plan for the company’s social media efforts
			Step 6: Test, evaluate and adjust your social media marketing plan
		14.10: Developing a viral marketing campaign
		14.11: Summary
			Exhibit 14.3: Fox Business (Trish Regan) is selling a political statement
		Case study 14.1: Orabrush Inc.: how a ‘pull’ B2C YouTube marketing strategy helped consumers to focus on the ‘bad breath’ problem
Part V: Organising, implementing and controlling the marketing effort
	Part V: Video case study: Pret A Manger: How to control the expansion of an international restaurant chain
		Introduction to part V
	Chapter 15: Organising and implementing the marketing plan
		15.1: Introduction
		15.2: Marketing audit
		15.3: Building the marketing plan
			Title page
			Table of contents
			Executive summary
			Introduction
			Situational analysis
			Marketing objectives and goals
			Marketing strategies and programmes
			Budgets
			Implementation and control
			Conclusion
		15.4: Organising the marketing resources
			Organisational structure
			Vertical or horizontal organisation?
			Centralised or decentralised organisation?
			Bureaucratic or adaptive organisation?
			Organisational forms
			Transition from a product-focused to a customer-focused structure
			Organisational culture
		15.5: Implementation of the marketing plan
			Issues in marketing implementation
			Planning and implementation are interdependent processes
		15.6: The role of internal marketing
			The internal marketing approach
			The internal marketing process
			Implementing an internal marketing approach
			Exhibit 15.1: Merger of Mars’ European food, pet care and confectionery divisions
		15.7: Summary
		Case study 15.1: DJI Technology Co. Ltd.
	Chapter 16: Budgeting and controlling
		16.1: Introduction
		16.2: Budgeting
			Profitability analysis
			Customer-mix budgets
		16.3: Social media metrics
			Non-financial social metrics
			Other ‘operational’ non-financial social metrics
			Financial social metrics
			Other ‘operational’ financial social metrics
		16.4: Customer profitability and customer lifetime value
			Realising the full profit potential of a customer relationship
			Customer retention
			Increasing CLTV
			Acquisition costs
		16.5: Controlling the marketing programme
			Exhibit 16.1: Simulation of firm X’s customer value (cumulative sales for firm X over periods 1 to 10) with different retention rates
			Design of a control system
			Feedforward control
			Key areas for control in marketing
			Overall economic value with successful implementation of CRM
		16.6: Summary
		Case study 16.1: Huawei smartphones: expanding into the international markets for smartphones
Appendix: Market research and decision support system
	A.1: Introduction
	A.2: Data warehousing
	A.3: Data mining
	A.4: The customer information file
	A.5: Linking market research to the decision-making process
	A.6: Secondary research
		Advantages of secondary research
		Disadvantages of secondary research
		Internal data sources
		External data sources
		Secondary data used for estimation of foreign market potential
	A7: Primary research
		Qualitative and quantitative research
		Triangulation: mixing qualitative and quantitative research methods
		Research design
		Problems with using primary research
	A.8: Online (internet) primary research methods
		Advantages of online surveys
		Disadvantages of online surveys
		Online quantitative market research (email and Web-based surveys)
		Online qualitative market research
	A.9: Other types of market research
		Ad-hoc research
		Continuous research (longitudinal designs)
		Sales forecasting
		Scenario planning
	A.10: Setting up a marketing information system (MIS)
	A.11: Marketing research based on Web 2.0
	A.12: Summary
Glossary
Index
Back Cover