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Page 1: :PlulBaihes, Chris Fill, •|i1ci Kelly Page · • Case Insight: Orange 246 Introduction 247 Market Development 248 The Changing Nature of World Markets 250 International Market

2ND EDITION

iccadillylircus ^asatmmnF

:PlulBaihes, Chris Fill,•|i1ci Kelly Page

OXFORD-UNIVERSITY- PRESS

Page 2: :PlulBaihes, Chris Fill, •|i1ci Kelly Page · • Case Insight: Orange 246 Introduction 247 Market Development 248 The Changing Nature of World Markets 250 International Market

> Parti: Marketing Fundamentals i

1 Marketing Principles and Society 3• Case Insight: Systembolaget 4

Introduction 5

What is Marketing? 5

The Principal Principles of Marketing 13

Marketing in Context 25

What Impact Does Marketing Have on Society? 29

Chapter Summary 37

Review Questions • 38

Worksheet Summary , 38

Discussion Questions 38

References 39

Additional lecturer material

Online Case StudyWritten by Dr Paul Baines, Cranfield School ©f Management, Cranfield University

CIM: The Problem of 'Marketing' Marketing

Academic Insight

Guest Lecture by Professor Michael Saren, School of Management, University of Leicester

Why is it Important to be Critical in Marketing?

2 The Marketing Environment 41

• Case Insight: Michelin Tyres 42

Introduction 43

Understanding the External Environment 43

Understanding the Performance Environment 62

Understanding the Internal Environment 67

Chapter Summary 73

Review Questions 74

Worksheet Summary ' 74

Discussion Questions 74

References 75

Additional lecturer material

Online Case Study

Written by Professor Phil Harris, University of Otago, New Zealand

The Self-Regulation and Development of the Chemical Industry in Europe

Academic InsightDr Paul Baines, Cranfield School of Management, Cranfield University

Why Analysing the Marketing Environment is the Key to Marketing Success

Page 3: :PlulBaihes, Chris Fill, •|i1ci Kelly Page · • Case Insight: Orange 246 Introduction 247 Market Development 248 The Changing Nature of World Markets 250 International Market

Detailed Contents

Consumer Buying Behaviour 78

• Case Insight: BRAND sense agency 79

Introduction 80

Consumer Behaviour: Rational or Emotional? 81Proposition Acquisition 82Perceptions, Learning, and Memory 89

Personality 94

Motivation 98The Importance of Social Contexts 101Chapter Summary 113

Review Questions 113Worksheet Summary 114

Discussion Questions 114

References 115

Additional lecturer material

Online Case StudyWritten by Lorna Stevens, University of Ulster

Red Magazine: Women Consumers, Lifestyle Trends and the New Zeitgeist

Academic InsightProfessorjagdish Sheth, Emory University, USA

The Consumer Buying Psyche

Marketing Research ' 117

• Case Insight: i to i research 118

Introduction 119

Definitions of Marketing Research 120

Marketing Information Systems 122

Commissioning Marketing Research 124

The Marketing Research Process 128

Market Research Online 142

Market and Advertisement Testing 144

Marketing Research and Ethics 146

International Marketing Research 147

Chapter Summary 151

Review Questions 152

Worksheet Summary 152

Discussion Questions 152

References 153

Additional lecturer material

Online Case StudyWritten by Nigel Bradley, Westminster Business School, University of Westminster

Research projects: Insight at Mary Holidays

Written by Dr Paul Baines, Cranfield School of Management, Cranfield University

Writing Research Proposals: The Case of Pol Media

Page 4: :PlulBaihes, Chris Fill, •|i1ci Kelly Page · • Case Insight: Orange 246 Introduction 247 Market Development 248 The Changing Nature of World Markets 250 International Market

Detailed Contents

Academic InsightNigel Bradley, Westminster Business School, University of Westminster

The Marketing Research Mix

Dr Kelly Page, Cardiff Business School

How the world's best companies use market research effectively

Part 2: Principles of Marketing Management 155

5 Marketing Strategy 157

• Case Insight: Innocent Drinks 158

Introduction 159

Influences on Strategic Marketing Planning 164

Implementation 180

Managing and Controlling Marketing Programmes 196

Marketing Planning 197

Chapter Summary ' 199

Review Questions 200

Worksheet Summary 201

Discussion Questions 201

References 201

Additional lecturer materialOnline Case Study

Written by Dr Paul Hughes, Loughborough University and Professor Robert Morgan, Cardiff

Business School

Blackberry: Lessons in Strategic Positioning

Written by Dr Charles Denis, Brunei University

Promoting the Promoters: Outdoor Advertising ofJC Decaux

Academic Insight

Professor Nigel Piercy Warwick Business School

The Rhetoric and Realities of Marketing Strategy

Professor Malcolm McDonald, Cranfield School of Management, Cranfield University

Why Some Marketing Programmes Fail and Others Do Not

6 Market Segmentation and Positioning 204

• Case Insight: Stagecoach 205

Introduction 206

The STP Process 207

The Concept of Market Segmentation 208

The Process of Market Segmentation 211

Market Segmentation in Consumer Markets 213

Segmentation in Business Markets 225

Target Markets 230

Segmentation Limitations 233

Page 5: :PlulBaihes, Chris Fill, •|i1ci Kelly Page · • Case Insight: Orange 246 Introduction 247 Market Development 248 The Changing Nature of World Markets 250 International Market

Detailed Contents

Positioning 234

Chapter Summary 240

Review Questions 241

Worksheet Summary 242

Discussion Questions 242

References 243

Additional lecturer material

Online Case StudyWritten by Professor Emeritus Malcolm McDonald, Cranfield School of Management, Cranfield

University

Globaltech: How Market Segmentation Improved Profitability in a Global Company's Aftersales

Service Operations

Academic InsightGareth Smith, Loughborough University Business School

Market Positioning and the UK Automobile Industry

International Market Development 245

• Case Insight: Orange 246

Introduction 247

Market Development 248

The Changing Nature of World Markets 250

International Market Development 252

International Competitive Strategy 255

Drivers of International Market Development 260

International Market Selection 264

International Marketing Environment 267

Market Entry Method 275

Chapter Summary 281

Review Questions ' 282

Worksheet Summary 283

Discussion Questions 283

References 283

Additional lecturer material

Online Case StudyWritten by Dr Kelly Page, Cardiff Business School

Cargill: Localization in the Chinese Food Market

Academic InsightProfessor Stan Paliwoda, University of Strathclyde

Do Global Consumers Really Exist?

Page 6: :PlulBaihes, Chris Fill, •|i1ci Kelly Page · • Case Insight: Orange 246 Introduction 247 Market Development 248 The Changing Nature of World Markets 250 International Market

• Detailed Contents WWi

Part 3: The Marke t ing M ix Principle 285

8 Developing Products and Brands 287

• Case Insight: 3M 288

Introduction 290

Product Levels 292

Classifying Products 293

Product Range, Line, and Mix 298

Product Lifecycles 298

New Product Development 302

New Service Development 307

Stages of Product/Service Innovation Development 307

The Process of Adoption ' 310

Branding 312

Chapter Summary 324

Review Questions 326

Worksheet Summary 326

Discussion Questions 326

References 327

Additional lecturer material

Online Case StudyWritten by Professor Simon Knox, Dr Paul Baines, Cranfield School of Management, Cranfield

University and Gary Smith, Rolls Royce

Building the 7E7: NPD at Boeing

Academic InsightDr Stuart Roper, Manchester Business School

A Brief History of Branding

9 Price Decisions 328

• Case Insight: P&O Ferries 329

Introduction 330

The Concept of Pricing and Cost 331

The Relationship between Pricing and Proposition Costs 332

Pricing and Transactional Management 350

Chapter Summary 361

Review Questions 362

Worksheet Summary 363

Discussion Questions 363

References 363

Page 7: :PlulBaihes, Chris Fill, •|i1ci Kelly Page · • Case Insight: Orange 246 Introduction 247 Market Development 248 The Changing Nature of World Markets 250 International Market

Detailed Contents

Additional lecturer material

Online Case StudyWritten by Tom Chapman, University of Portsmouth

Apple Inc — the Significance of 'iPricing'

Academic Insight

Tom Chapman, University of Portsmouth

Pricing: Marketing's Forgotten Holy Grail

10 An Introduction to Marketing Communications 366

• Case Insight: London Eye 367

Introduction 368

Introducing Marketing Communications 369

Communication Theory 371

Personal Influences 377

The Role of Marketing Communications 380

What is Marketing Communications? 384

The Tasks of Marketing Communications . 386

Marketing Communication Messages 387

The Marketing Communications Mix 388

Word-of-Mouth . 389

How Marketing Communications Works 390

The Strong and the Weak Theories of Advertising 391

A Composite Approach . 392

Cultural Aspects of Marketing Communications 396

Chapter Summary 398

Review Questions 399

Worksheet Summary 400

Discussion Questions 400

References 400

1 Additional lecturer material

Online Case Study

Written by Martin Evans, Cardiff Business School

Dr and the Ghostly Persuaders: Multi-step Flows of Communication in Medical Markets

Academic InsightChris Fill, Managing Director of Fill Associates, formerly Principal Lecturer at the University of

Portsmouth.

The Changing Nature of Marketing CommunicationsChris Fill, Managing Director of Fill Associates, formerly Principal Lecturer at the University of

Portsmouth.

The Role of Marketing Communications in Relationship Marketing

11 Marketing Communications: Tools, Media, and Planning . 402

• Case Insight: ZSL London Zoo 403

Introduction 405

The Role and Purpose of the Marketing Communications Mix 405

Selecting the Right Mix of Tools 409

Page 8: :PlulBaihes, Chris Fill, •|i1ci Kelly Page · • Case Insight: Orange 246 Introduction 247 Market Development 248 The Changing Nature of World Markets 250 International Market

Detailed Contents

The Media 411

Other Promotional Methods and Approaches 420

Marketing Communications Planning 422

Managing Communications Activities 428

Integrated Marketing Communications 429

Chapter Summary 433

Review Questions 434

Worksheet Summary 435

Discussion Questions 435

References 435

Additional lecturer material

Online Case StudyWritten by Dr Yasmin Sekhon, University of Bournemouth

Talking to Heidi: Choosing the Right Communications Mix

Written by Dr Yasmin Sekhon, University of Bournemouth

Planning to Sell Waterbeds: Aqua Style Waterbeds' Strategic Planning

Academic Insight

Beth Rogers, University of Portsmouth

Issues in Sales Management and Planning

Professor Denis Sadler, Pace University, USA

Planning and Implementing a Marketing and Communications Campaign (Ambush Marketing)

John Egan, Middlesex University Business School

To Integrate or not to Integrate your Marketing Communications?

12 Retailing and Channel Management 437

• Case Insight: HMV 438

Introduction 439

Place 440

Distribution Channel Management 442

Member Channel Functions 445

Distribution Channel Strategy 447

Members of Channel Intermediaries 452

Intensity of Channel Coverage 455

Managing Relationships in the Channel 458

Logistics Management 460

Retailing 464

Chapter Summary 471

Review Questions 472

Worksheet Summary 472

Discussion Questions 473

References 473

Additional lecturer material

Online Case Study

Written by Professor Leigh Sparks, University of Stirling

Seven-Eleven Japan: 'Life Infrastructure'

Academic InsightDr Fiona Ellis-Chadwick, Loughborough

How IT Has Transformed Retail Marketing

Page 9: :PlulBaihes, Chris Fill, •|i1ci Kelly Page · • Case Insight: Orange 246 Introduction 247 Market Development 248 The Changing Nature of World Markets 250 International Market

g >

Detailed Contents

> Part 4: Principles of Relational Market ing 475

13 Services Marketing 477

• Case Insight: MOLLY MAID 478

Introduction 479

What is a Service? 480

The Nature of Services 482

The Service Mix 490

The Service Marketing Mix 493

Service-Dominant Logic 495

Service Encounters 496

Key Dimensions of Services Marketing 498

Service Quality and Performance 503

Chapter Summary 509

Review Questions 510

Worksheet Summary 510

Discussion Questions 510

References 511

Additional lecturer material

Online Case StudyWritten by Dr Steve Oakes, University of Liverpool

Lewington's: Designing the Department Store Musicscape By Zone—How Music Influences

Consumers in Service Environments

Academic InsightProfessor Christine Ennew, Nottingham University Business School

The Importance of Quality and Experience in Services Marketing

14 Business-to-Business Marketing 513

• Case Insight: Reed Smith 514

' Introduction 515

What is Business-to-Business Marketing? 516

Characteristics of Business Markets 517

Types of Organizational Customers 521

Types of Business Goods and Services 525Organizational Buyer Behaviour 526Decision-Making Units: Characteristics 527

The Decision-Making Unit: Processes 529The Role of Purchasing in Organizations 534

Customer Portfolio Matrix 536

Key Account Management (KAM) 538

Key Account Relationship Cycles 540A Comparison of B2B and B2C Buying Characteristics 542

Chapter Summary 548

Review Questions • 549

Worksheet Summary 549

Discussion Questions 549

References 550

Page 10: :PlulBaihes, Chris Fill, •|i1ci Kelly Page · • Case Insight: Orange 246 Introduction 247 Market Development 248 The Changing Nature of World Markets 250 International Market

Detailed Contents

Additional lecturer material

Online Case StudyWritten by Beth Rogers, University of Portsmouth

The Personal Touch: How Dal Maschio Sales Engineers Deliver Value to Customers

Academic InsightProfessor Caroline Tynan, Nottingham University Business School

Managing Buyer-Seller Interactions to Achieve Marketing Success

15 Relationship Marketing 552

• Case Insight: RAKBANK 553

Introduction 554

Understanding Perceived Value 554Value Chain 555Supply Chains 557

Principles of Marketing Exchange 558Foundations of Relationship Marketing 560

The Development of Relationship Marketing 562

Relationships Expressed as Value Creation 564- The Economics of Relationship Marketing 567

The Customer Relationship Lifecycle 568

Loyalty, Retention, and Customer Satisfaction 571

Types and Level of Loyalty 573Managing Relationships 576

Chapter Summary ' 585

Review Questions • 586

Worksheet Summary , 586

Discussion Questions ' 586

References 587

Additional lecturer material

Online Case StudyWritten by Drjohn Egan, Middlesex University Business School

When the Relationship is Over: the Case of Disney

Academic InsightProfessor Hugh Wilson, Cranfield School of Marketing, Cranfield University

Actioning Customer Insight: the 6 Is of CRM

16 Not-For-Profit Marketing 589

• Case Insight: Oxfam 590

Introduction 591

Key Characteristics of Not-for-Profit Organizations 594Types of Not-for-Profit Organization 600

Fundraising . 614

Chapter Summary 617

Review Questions 618Worksheet Summary 619

Discussion Questions 619References 620

Page 11: :PlulBaihes, Chris Fill, •|i1ci Kelly Page · • Case Insight: Orange 246 Introduction 247 Market Development 248 The Changing Nature of World Markets 250 International Market

Detailed Contents

Additional lecturer material

Online Case StudyWritten byjacline Abray-Nyman, Queen's School of Business, Queen's University, Canada

Charitable giving in the digital era - a Canadian case

Academic Insight

Claire Routley, University of the West of England

Developing Relationships with Donors

Part 5: Contemporary Market ing Practice 623

17 Digital Marketing 625

• Case Insight: Rage Against the X-Factor 626

Introduction 627

Electronic and Digital Marketing 627

Structural Properties of Digital Resources 629

Marketing's Digital Evolution , 633

Digital Marketing Activities 636

Digital Marketing Considerations 655

Chapter Summary 657

Review Questions 658

Worksheet Summary 658

Discussion Questions , 659

References 659

Additional lecturer material

Online Case StudyWritten by Dr Kelly Page, Cardiff Business School

Warp the Rainbow at Skittles.com

Academic InsightDr Mairead Brady Trinity College Dublin

New Technology and Marketing

18 Postmodern Marketing 662

• Case Insight: Livity 663

Introduction 664

Modernism and Postmodernism 665

Postmodern Marketing 666

Researching Fragmented Markets 679

Semiotics and Deconstruction 680

Marketing: Art or Science? 684

Chapter Summary 686

Review Questions • 688

Worksheet Summary 688

Discussion Questions 688

References 689

Page 12: :PlulBaihes, Chris Fill, •|i1ci Kelly Page · • Case Insight: Orange 246 Introduction 247 Market Development 248 The Changing Nature of World Markets 250 International Market

Detailed Contents

Additional lecturer material

Online Case StudyWritten by Professor Stephen Brown, University of Ulster

Titanic: The Unsinkable Brand

Academic Insight

Dr Pamela Odih, Goldsmiths, University of London

Advertising and Postmodern Consumer Culture

19 Marketing, Sustainability and Ethics 691

• Case Insight: The Co-operative Bank 692

Introduction 693

Sustainable Marketing 694

Corporate Social Responsibility 697

Ethics and Marketing 699

The Ethical Decision-Making Process 705

Distribution Management and Ethics 708

Promotion and Ethics - 709

Products and Ethics 714

Pricing and Ethics 715

Universalism/Relativism in Marketing Ethics 718

Bribery 719

Chapter Summary 721

Review Questions ,. 722.

Worksheet Summary 722

Discussion Questions . 722

References / 723

Additional lecturer material

Online Case StudyWritten by Dr lain Davies, Cranfield School of Management, Cranfield University

Who to Work With: Ethical Dilemmas at Day Chocolate Company

Academic InsightChris Fill, Managing Director of Fill Associates, formerly Principal Lecturer at the University of

Portsmouth

Why Ethics in Marketing is More Important Than Ever Before

Glossary

Index

726748