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
XVi CONTENTS
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
XX CONTENTS
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
XXii CONTENTS
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