PhiLip

Kevin Lane

Mairead

MalcoLm

forben

Marketing ManagementPEARSON

PrenticeHall

Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Singapore • Hong Kon

Tokyo • Seoul • Taipei • New Delhi • Cape Town - Madrid • Mexico City - Amsterdam • Munich ••Paris • Mila

Guided tourPrefaceAcknowledgementsPublisher's acknowledgements

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PART 1 UNDERSTANDING MARKETING MANAGEMENTVideo documentary for Part 1

Chapter 1 Introduction to marketing

The importance of marketingThe scope of marketing

Understanding marketsHow is marketing practised?

The European marketing environment: company andconsumer challenges

Understanding the philosophy of marketingOverview of marketing management

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Chapter 2 Understanding marketing management

What is management?Four core features of management

Understanding marketing managementContemporary marketing management challengesContemporary marketing management skills

Managing within a global marketing environment:the global marketing manager

Deciding whether to go abroadDeciding which markets to enterEvaluating potential marketsDeciding on the marketing mix programme

Managing in developing marketsConclusion

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Chapter 3 Developing marketing strategies and plans

Marketing and customer valueBusiness environment paradigm changeThe value delivery processThe value chainCore competenciesA holistic marketing orientation and customer valueThe central role of strategic planning

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Jtiv CONTENTS

Corporate and divisional strategic planning 88Defining the corporate mission 88Defining the business 90Assigning resources to each SBU 91Assessing growth opportunities 92Relationship between missions and visions 96Organisation and organisational culture 97Marketing innovation 97

Business unit strategic planning 101The business mission 101SWOT analysis 101Critique of conventional SWOT analysis 104Goal formulation 105Strategic formulation 105Programme formulation and implementation 107Feedback and control 108

The nature and content of a marketing plan 109Contents of the marketing p,lan 109

Sample marketing plan: Euromart 110Introduction - 110

Chapter 4 Managing digital technology in marketing 116

Digital technology in marketing 118The range of ICTs in marketing' 118

The Internet 120Gaining competitive advantage from using the Internet 121

' The influence of the Internet on industry structure andcompetition 122

Digital marketing communication 124Consumer digital interactivity and eWOM 125Social networking 125Email marketing 129Permission marketing 129Viral marketing 130Other digital communication channels 131

Consumer digital shopping behaviour 135Perspectives on consumer digital shopping behaviour 136Cultural influence on digital shopping behaviour 139Company-customer interactivity 140ICI and internal decision making 142

Future developments in digital technologies 144Biometrics 144The cashless future 145

PART 2 CAPTURING MARKETING INSIGHTS 151Video documentary for Part 2

Chapter 5 The changing marketing environment andinformation management 152

The company environment 154The marketing environment 154

Analysing the macroenvironment 154

CONTENTS XV

The socio-cultural and demographic environment 157The economic environment 163The social-cultural environment 164The ecological and physical environment 165The technological environment 169The political-legal environment 171

Managing the marketing information system 172Components of a modern marketing

information system 172Internal records 174The marketing intelligence system 174Databases, data warehousing and data mining 177

Chapter 6 Managing market research and forecasting 188

The marketing research system 190The marketing research process 191

Step 1: define the problem, the decision alternativesand the research objectives 191

Step 2: develop the research plan 192Step 3: collect the information 205Step 4: analyse the information 206Step 5: present the findings 207Step 6: make the decision 208Overcoming barriers to the use of

marketing research 209Measuring marketing productivity 211

Marketing,-mix modelling 211Forecasting and demand measurement 212

The measures of market demand 212A vocabulary for demand measurement 213Estimating current demand 215Estimating future demand 218

Chapter 7 Analysing consumer markets \ 222

The study of consumer behaviour 224Culture 224Social groups 227The individual consumer 230The interaction between dimensions 236

Key psychological processes 237Motivation: Freud, Maslow, Herzberg 237Perception 239Learning 240Memory 241

Perspectives on consumer behaviour 243The buying decision process: the five-stage model 246

Problem recognition 247Information search 247Evaluation of alternatives 249Purchase decision 251Post-purchase behaviour 253

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Other theories of consumer decision making 255Level of consumer involvement 255Decision heuristics and biases 257Mental accounting 259Profiling the customer buying decision process 260

Chapter 8 Analysing business markets 266

What is organisational buying? 268The business market versus the consumer market 268Buying situations . 271Systems buying and selling 274

Participants in the business buying process 274The buying centre 274Buying centre influences 275Buying centre targeting 277

The purchasing/procurement process 278Purchasing department perceptions 278Purchasing organisation and administration 279

Stages in the buying process 279Problem recognition 280General need description and product specification 280Supplier search 280Proposal solicitation 282Supplier selection 283Order-routine specification 286Performance review 287

Managing business-to-business relationships 287The need for managing business-to-business relationships 287The role of uncertainty in business relationships 287Transaction cost economics 289Network theory 290Vertical coordination 291

Institutional and government markets 295

Chapter 9 Dealing with competition 302

Competitive forces 304Identifying competitors 305Analysing competitors 308

Strategies 308Objectives 309Strengths and weaknesses 310Selecting competitors 311Selecting customers 312

Competitive strategies for market leaders 312Other competitive strategies 321

Market-challenger strategies 322Market-follower strategies 324Market-nicher strategies 325

Balancing customer and competitor orientations 327Competitor-centred companies 327Customer-centred companies 328

CONTENTS XVii

PART 3 CONNECTING WITH CUSTOMERSVideo documentary for Part 3

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Chapter 10 Indentifying, analysing and creating target marketdifferentiating and positioning strategies 332

Levels of market segmentation 334Segment marketing 334Niche marketing 334Local marketing 335Individual marketing 338

Bases for segmenting consumer markets 341Geographic segmentation 341Demographic segmentation 342Psychographic segmentation 349Behavioural segmentation 351

Bases for segmenting business markets 355Market targeting 356

Effective segmentation criteria 357Evaluating and selecting the market segments 357Additional considerations 359

Creating differentiation and positioning strategies 360Positioning 361Establishing category membership 365Choosing POPs and PODs 366Creating POPs and PODs 367

Perceptual or positioning mapping 369What can positioning analysis do for a company's business? 369Positioning maps 369Developing a positioning strategy 370

Repositioning 370Developing and communicating a differentiation strategy 371

Cost leadership 371Distinctive superior quality 372Cost leadership and differentiation v 372

Differentiation strategies 372The purpose of positioning 374

Chapter 11 Creating customer value, satisfaction and loyalty

Building customer valueCustomer-perceived value

Building customer satisfactionCustomers want loyalty, not perfectionTotal customer satisfactionMonitoring satisfactionCustomer satisfactionProduct and service quality

Maximising customer lifetime valueCustomer profitabilityCustomer lifetime value - conceptual dream

or real-time activity?

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Cultivating customer relationships 396Customer relationship management 397Attracting and retaining customers 399

Building customer loyalty 401Improving loyalty 401

Attracting and retaining customers 403Recapturing customers 408

The experience economy 408The value experience 408The empowered customer 412Interactive marketing 413Complexity of markets 413Emotional turn 414

PART k BUILDING STRONG BRANDS 421Video documentary for Part 4

Chapter 12 Creating and managing brands and brand equity 422

Understanding branding 425What is a brand? 425The role of brands 428

Strategic brand management 429Creating and managing brand identities: names,

logos, slogans and images 431Co-branding and ingredient branding 431Criteria for choosing brand names 434Branding decisions: individual or house brands 436Brand reinforcement and revitalisation 443

Managing and measuring brand equity 446Brand valuation 446

Branding issues: branding of services,co-creation and brand touchpoints 451

Services branding * 451Co-creation and customisation 452Managing the brand touch points 454

Chapter 13 Devising a contemporary branding strategy 458

What is a global brand and how is it managed? 460Global services branding 462Iconic brands 464Factors leading to increased global branding for

European products and services 464Understanding global communities and tribes 470

Understanding branding in an ICT-based environment 474The challenges of branding in developing economies 476Celebrity branding 478

The advantages of celebrity endorsements 479Issues arising from celebrity branding 481

Countries and places as brands 481

CONTENTS XIX

PART 5 SHAPING THE MARKET OFFERING 487Video documentary for Part 5

Chapter 14 Designing, developing and managingmarket offerings 488

Product life-cycle marketing strategies 490Product life cycles 490Style, fashion and fad life cycles 491Marketing strategies: the introduction stage

and the pioneer advantage 491Marketing strategies: the growth stage 495Marketing strategies: the maturity stage 497Marketing strategies: the decline stage 501

Evidence on the product life cycle concept 502Critique of the product life cycle concept 503Market evolution 504

Emergence 504Growth 504Maturity 504Decline 505

Product characteristics and classifications 505Product levels: the customer-perceived

value hierarchy 506Product classifications 507

Differentiation 510Product (market offering) differentiation 510Design 514Service differentiation 514

Product and brand relationships 515The product hierarchy 516Product systems and mixes 516Product-line analysis 517Product-line length 518Product-mix pricing 523Co-branding and ingredient branding 524

Packaging, labelling, warranties and guarantees 526Packaging 526Labelling 530Warranties and guarantees 531

Chapter 15 Introducing new market offerings 536

New product options 538Make or buy? 538Types of new products 538

Challenges in new product development 539The innovation imperative 539New product success 540New product failure 541

Organisational arrangements 542Budgeting for new product development 545Organising new product development 545

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Managing the development process I: ideas 547Process stages 547Idea generation 547Idea screening 552

Managing the development process II: concept to strategy 555Concept development and testing 555Marketing strategy development 558Business analysis 558

Managing the development process III: development tocommercialisation 560

Product and market development 560Market testing 561Commercialisation and new product launch 564

The consumer adoption process 567Stages in the adoption process 567Factors influencing the adoption process 567

Chapter 16 Developing and managing pricing strategies 572

Understanding pricing 574A changing pricing environment ' 574How companies price 575Consumer psychology and pricing 578

Setting the price 582Step 1: selecting the pricing objective 582Step 2: determining demand 585Step 3: estimating costs 587Step 4: analysing competitors' costs, prices and offers 590Step 5: selecting a pricing method 590Step 6: selecting the final price 596

Adapting the price 598Geographical pricing (cash, countertrade, barter) 598Price discounts and allowances 599Promotional pricing 600Differentiated pricing 601

Initiating and responding to price changes 602Initiating price cuts ' 602Initiating price increases 603Responding to competitors' price changes 604

PART 6 DELIVERING VALUE 611Video documentary for Part 6

Chapter 17 Designing and managing supply networks 612

What is a supply chain or network? 614Designing agile, adaptable, aligned supply networks 620Managing a demand-driven chain or network 623Supply network management 625Modelling the service supply chain 627Channel management and channel

design decisions 627

CONTENTS XXi

Selecting channel members 632Analysing customers' needs 635Establishing channel objectives and constraints 635Deciding on the number of intermediaries 636Terms and responsibilities of channel members 636Selecting channel members: evaluating the major alternatives 637

Managing distribution channels 638Training and motivating channel members 638Gaining cooperation and channel power 638Evaluating channel members 639Modifying channel design and arrangements 641

Understanding the impact of technology 641The Internet as a channel of distribution 641Mobile phones as a channel of distribution 644Self-service technologies - 645

Chapter 18 Managing the service process and the consumerinterface 654

Service process design and management 656Managing people (staff and consumers) during

the service process 663Training customer service personnel 666

Managing technology and particularly self-service technologieswithin the service process 672

The future of self-service technology 677Creating and managing the physical evidence or experience

environment 678Service atmosphere 679Store activities and experiences 679Managing the five senses to create the service environment 680

7 COMMUNICATING VALUE 687Video documentary for Part 7

Chapter 19 Designing and managing marketing communications 688

The role of marketing communications 690The changing marketing communication environment 690Marketing communications, brand equity and sales 691The communications process models 694

Developing effective communications 696Identify the target audience 696Determine the communications objectives 696Design the communications 697Select the communications channels 702Word of Mouth 703

Establishing the total marketing communications budget 706Deciding on the marketing communications mix 708

Characteristics of the marketing communications mix 708Factors in setting the marketing communications mix 711Measuring communication results 713

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Managing the integrated marketing communications process 714Coordinating media 714Implementing IMC 715

Quovadisl 716

Chapter 20 Managing mass and personal communications 720

Developing and managing an advertising programmeSetting objectivesDeciding on the advertising budget and developing

the advertising campaignManaging media mattersEvaluating advertising effectiveness

Sales promotionSetting objectivesAdvertising versus sales promotionMajor decisions

Events, experiences, public and press relationsSetting objectivesMajor sponsorship experiencesCreating experiencesMajor decisions in marketing and public relationsMarketing public relationsMajor decisions in marketing press relations

Direct marketingSetting objectivesThe benefits of direct marketingOverview of the direct marketing mixCatalogue marketingTelemarketingOther media for direct response marketingPublic and ethical issues in direct marketing

Interactive marketingPlacing advertisements and promotions online

Developing and managing the sales forceSetting objectives and strategySales force management issuesKey principles of personal sellingThe six steps of sellingRelationship marketing (RM)

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PART 8 MANAGING MARKETING IMPLEMENTATIONAND CONTROL 767Video documentary for Part 8

Chapter 21 Implementing marketing management 768

Trends in marketing practices 770Internal marketing 770

Critique of internal marketing 771Organising the marketing department 773Relations with other departments 779

CONTENTS XXiii

Building a creative marketing organisation 779Taking the creative approach 779Building a creative culture 781Creativity - a mystical gift for some or something for all? 781Maintaining momentum 782Marketing implementation 783Leadership 783Methodology and madness - the importance of

leaving room for creativity 784Creative marketing 784

Socially responsible marketing 785Corporate social responsibility 785Socially responsible business models 789Cause-related marketing 792Social marketing 794Ethnic marketing 796Green marketing 796

Evaluation and control 800Annual-plan control 800Profitability control .805Efficiency control 808Strategic control 809

The future of marketing 812The marketing manager's key tasks 812A holistic approach to marketing management 813The nature of marketing 813Relationship activity 815Market research 817New product'development 817Marketing communications activity 817

Getting started 817

Chapter 22 Managing marketing metrics 824

The need for marketing metrics 826What marketing metrics should do -- 826The chain of marketing productivity 828'

Measuring marketing performance and productivity 830Counting-based metrics 830Accounting-based metrics 830NPV 831Outcome metrics 831

The balanced scorecard approach 838Marketing dashboards 841

Appendix: Digitel marketing plan and exercises 846Glossary 861Name index 871Organisation and brand index 873Subject index 877