Ebook The marketing book: Part 1 includes the following chapters: Chapter 1 one more time – what is marketing? chapter 2 postmodern marketing: everything must go! chapter 3 relationship marketing; chapter 4 the basics of marketing strategy; chapter 5 strategic marketing planning: theory and practice; chapter 6 consumer decision making: process, level and style; chapter 7 business-to-business marketing: organizational buying behaviour, relationships and networks; chapter 8 marketing research; chapter 9 quantitative methods in marketing; chapter 10 market segmentation.
The Marketing Book This Page Intentionally Left Blank The Marketing Book Fifth Edition Edited by MICHAEL J BAKER OXFORD AMSTERDAM BOSTON LONDON NEW YORK PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO Butterworth-Heinemann An imprint of Elsevier Science Linacre House, Jordan Hill, Oxford OX2 8DP 200 Wheeler Road, Burlington MA 01803 First published 1987 Reprinted 1987, 1990 (twice) Second edition, 1991 Reprinted 1992, 1993 Third edition, 1994 Reprinted 1995, 1997 Fourth edition 1999 Reprinted 2000, 2001 Fifth edition, 2003 Copyright © 2003 Michael Baker All rights reserved Copyright © 2003 contributors of individual chapters All rights reserved The right of Michael Baker and the individual contributors to be identified as the authors of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988 No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1T 4LP Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publisher British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data A catalogue record for this book is available from the Library of Congress ISBN 7506 5536 For information on all Butterworth-Heinemann publications visit our website at: www.bh.com Composition by Genesis Typesetting, Rochester, Kent Printed and bound in Great Britain Contents List of illustrations List of tables List of contributors Preface to the fifth edition Part One Organization and Planning for Marketing xv xix xxiii xxxiii One more time – what is marketing? Michael J Baker Introduction Marketing as a managerial orientation Marketing myopia – a watershed Life cycles and evolution Marketing misunderstood The marketing function Relationship marketing Summary References Further reading 11 14 15 15 Postmodern marketing: everything must go! Stephen Brown 16 Grand opening offer No down payment Money back guarantee Batteries not included Limited time only One careful owner This way up Open other side Closing down sale References Further reading 16 17 18 19 22 24 25 27 28 29 31 vi Contents Relationship marketing Lisa O’Malley and Caroline Tynan 32 Introduction Relationship marketing defined History of relationship marketing Focal relationships Models of relationship development Critique and emerging issues Conclusion References 32 33 34 39 40 44 47 48 The basics of marketing strategy Robin Wensley 53 Strategy: from formulation to implementation The nature of the competitive market environment The codification of marketing strategy analysis in terms of three strategies, four boxes and five forces The search for generic rules for success amidst diversity Models of competition: game theory versus evolutionary ecology Characterizing marketing strategy in terms of evolving differentiation in time and space Research in marketing strategy: fallacies of free lunches and the nature of answerable research questions The recourse to processes, people and purpose in marketing as well as strategy as a whole The new analytics: resource advantage, co-evolution and agent-based modelling Conclusions: the limits of relevance and the problems of application References and further reading 53 55 Strategic marketing planning: theory and practice Malcolm McDonald Summary Introduction The marketing planning process Guidelines for effective marketing planning Barriers to marketing planning Summary References Further reading Part Two The Framework of Marketing 58 60 62 66 70 75 80 81 82 87 87 87 90 101 109 115 116 116 117 Consumer decision making: process, level and style Gordon R Foxall 119 Introduction The consumer decision process Levels of consumer involvement 119 121 125 Contents vii Consumers’ decision styles Implications for marketing management Summary and conclusion References Further reading 127 132 138 138 140 Business-to-business marketing: organizational buying behaviour, relationships and networks Peter W Turnbull and Sheena Leek 142 Introduction The realities of business markets Organizational buying structures Models of organizational buying behaviour Conclusion References Further reading 142 144 144 152 165 166 169 Marketing research John Webb 171 Introduction Definitions of the role of marketing research Types of research The process of marketing research Secondary data Quantitative primary data Questionnaires and their design Qualitative research methods The research process and measurement Attitudes and their measurement Sampling Analysis of the results Presentation of the final report Conclusion References 171 172 173 174 175 177 180 180 184 186 189 192 194 195 195 Quantitative methods in marketing Luiz Moutinho and Arthur Meidan 197 Introduction Multivariate methods Regression and forecasting techniques Statistical decision theory or stochastic methods Deterministic operational research methods Causal models Hybrid models Network programming models 197 200 206 219 226 235 236 237 viii 10 Contents Conclusion References Further reading 240 241 244 Market segmentation Martin Evans Chapter objectives Introduction Historical perspective Segmentation criteria and categories ‘Traditional’ segmentation bases Data-driven segmentation Targeting Positioning Conclusions Review questions References Further reading 246 246 246 247 248 249 258 276 278 280 280 281 282 Part Three Managing the Marketing Function 285 11 Managing the marketing mix Peter Doyle 287 Introduction The traditional approach to the marketing mix The accounting approach to the marketing mix Value-based marketing The marketing mix and shareholder value Making marketing mix decisions Summary References Further reading 287 288 289 291 294 298 311 312 313 New product development Susan Hart 314 Introduction The process of developing new products The stages of the new product development process Usefulness of models The multiple convergent approach Managing the people in NPD Summary References Further reading 314 314 316 322 331 333 338 338 341 12 Contents 13 14 15 16 ix Pricing Adamantios Diamantopoulos 342 Introduction Is price really that important? The drivers of profit: price, volume and cost Price from the customer’s perspective Understanding price sensitivity Conclusion References 342 344 345 348 351 356 356 Selling and sales management Bill Donaldson 360 Introduction The changing role of salespeople The costs of personal selling What we expect salespeople to – the sales process Sales management issues Conclusion References Further reading 360 360 362 363 366 369 370 370 Brand building Leslie de Chernatony 372 Introduction Spectrum of brand interpretations A model for strategically building brands Summary References Further reading 372 373 383 392 393 394 The integration of marketing communications Tony Yeshin 395 The blurring of the edges of marketing communications The strategic challenges facing organizations Strategic marketing communications The integration of marketing communications Defining integrated marketing communications The impact of external factors on marketing communications The driving forces behind the growth of integrated marketing communications The impact on marketing communications Relationship marketing The benefits of integrated marketing communications 395 396 396 397 397 400 404 405 406 407 ... 10 .5 10 .6 10 .7 10 .8 11 .1 11. 2 11 .3 11 .4 11 .5 11 .6 11 .7 12 .1 12.2 12 .3 12 .4 12 .5 12 .6 13 .1 13.2 15 .1 15.2 15 .3 15 .4 15 .5 15 .6 15 .7 15 .8 15 .9 15 .10 15 .11 15 .12 15 .13 15 .14 15 .15 17 .1 17.2 17 .3 17 .4... xx 9 .13 9 .14 10 .1 10.2 10 .3 10 .4 10 .5 10 .6 10 .7 10 .8 11 .1 11. 2 11 .3 11 .4 11 .5 12 .1 12.2 12 .3 12 .4 12 .5 13 .1 13.2 14 .1 15 .1 17 .1 17.2 17 .3 17 .4 17 .5 18 .1 18.2 18 .3 20 .1 20.2 20.3 21. 1 21. 2 21. 3... applicable in marketing (the methods, advantages, limitations and when recommended to use) 12 20 23 26 26 42 43 92 96 10 2 11 0 13 3 13 5 15 0 15 1 15 3 15 7 17 5 207 209 210 211 211 211 214 217 220 225