STRATEGIC

MARKET

MANAGEMENT

GLOBAL

PERSPECTIVES

iPITI

David A. Aaker

Damien McLoughlin

)WILEY

A John Wiley and Sons, Ltd, Publication

CONTENTS

Preface

ix

Acknowledgements

Chapter 1

xiii

Strategic Market Management: An Introduction

and Overview

What is a Business Strategy?

Strategic Market Management

Marketing and its Role in Strategy

1

3

10

15

PART I

STRATEGIC ANALYSIS

19

Chapter 2

External and Customer Analysis

External Analysis

When Should an External Analysis be Conducted?

The Scope of Customer Analysis

Segmentation

Customer Motivations

Unmet Needs

21

21

25

26

26

31

35

Chapter 3

Competitor Analysis

Identifying Competitors - Customer-Based Approaches

Identifying Competitors - Strategic Groups

Potential Competitors

Competitor Analysis — Understanding Competitors

Competitor Strengths and Weaknesses

Obtaining Information on Competitors

41

43

45

46

47

52

58

Chapter 4

Market/Submarket Analysis

Dimensions of a Market/Submarket Analysis

Emerging Submarkets

Actual and Potential Market or Submarket*Size

Market and Submarket Growth

Market and Submarket Profitability Analysis

Cost Structure

Distribution Systems

Market Trends

Key Success Factors

Risks in High-Growth Markets

60

61

61

62

65

68

70

71

72

73

74

vi Contents

Chapter 5

Chapter 6

Environmental Analysis and Strategic Uncertainty

Technology Trends

Consumer Trends

Government/Economic Trends

Dealing with Strategic Uncertainty

Impact Analysis - Assessing the Impact of Strategic

Uncertainties

Scenario Analysis

Internal Analysis

Financial Analysis - Sales and Profitability

Performance Measurement - Beyond Profitability

Strengths and Weaknesses

Threats and Opportunities

From Analysis to Strategy

Cases for the End of Part I

Case 1 - Understanding and Working with Industry

Trends. The Future of Newspapers

Case 2 - Evaluating and Assessing the Implications

of a New Business Model. Spotify - Identifying

a New Value Proposition

Case 3 - Competing Against Industry Giants. Competing

Against Tesco

PART II

79

81

83

89

92

93

95

"

99

100

103

107

109

110

113

113

120

126

CREATING, ADAPTING, AND

IMPLEMENTING STRATEGY

131

Creating Advantage, Synergy, and Commitment

versus Opportunism versus Adaptability

The Sustainable Competitive Advantage

The Role of Synergy

Strategic Commitment, Opportunism, and Adaptability

133

134

139

142

Chapter 8

Alternative Value Propositions

Business Strategy Challenges

Alternative Value Propositions

Superior Quality

Value

. 153

154

156

162

167

Chapter 9

Building and Managing Brand Equity

Brand Awareness

Brand Loyalty

Brand Associations

Brand Identity

175

176

177

179

186

Chapter 7

Contents vu

Chapter 10

Energizing the Business

Innovating the Offering

Energize the Brand and Marketing

Increasing the Usage of Existing Customers

194

195

199

207

Chapter 11

Leveraging the Business

Which Assets and Competences Can Be Leveraged?

Brand Extensions

Expanding the Scope of the Offering

New Markets

Evaluating Business Leverage Options

The Mirage of Synergy

213

214

216

220

221

222

225

Chapter 12

Creating New Businesses

The New Business

The Innovators Advantage

Managing Category Perceptions

Creating New Business Arenas

From Ideas to Market

230

231

233

236

236

241

Chapter 13

Global Strategies

Motivations Underlying Global Strategies

Standardization Versus Customization

Expanding the Global Footprint

Strategic Alliances

Global Marketing Management

246

247

251

255

257

261

Chapter 14

Setting Priorities for Businesses and Brands the Exit, Milk, and Consolidate Options

The Business Portfolio

Divestment or Liquidation

The Milk Strategy

Prioritizing and Trimming the Brand Portfolio

264

265

267

271

274

Chapter 15

From Silos to Synergy - Harnessing the

Organization

Silo-Driven Problems - The Case of Marketing

Addressing the Silo Marketing Issues - Challenges

and Solutions

Organizational Levers and Their Link to Strategy

Structure

Systems

People

Culture

A Recap of Strategic Marketing Management

Cases for the End of Part II

Case 1 - Strategic Positioning. Alltech FEI World

Equestrian Games 2010

282

283

•

285

286

287

290

292

295

299

302

302

viii Contents

Case 2 - Leveraging a Brand Asset. Innocent Drinks

Case 3 - Competing Against the Industry Giant.

HTC - Something Beautiful Is Coming

Case 4 - Creating a New Brand for a New Market.

Tata Nano - Estimating the True Cost of

the Cheapest Car in the World

Case 5 - Transformative Innovation in the Developing

World

306

311

316

322

Appendix: Planning Forms

330

Index

345