Ebook The marketing book: Part 2

Ebook The marketing book: Part 1 includes the following chapters: Chapter 11 managing the marketing mix; chapter 12 new product development; chapter 13 pricing; chapter 14 selling and sales management; chapter 15 brand building; chapter 16 the integration of marketing communications; chapter 17 promotion; chapter 18 sales promotion; chapter 19 integrating customer relationship management and supply chain management; chapter 20 controlling marketing and the measurement of marketing effectiveness; chapter 21 marketing implementation, organizational change and internal marketing strategy; chapter 22 what are direct marketing and interactive marketing? chapter 23 the marketing of services.

Part Three Managing the Marketing Function This Page Intentionally Left Blank CHAPTER 11 Managing the marketing mix PETER DOYLE Introduction Managing the marketing mix is the central task of marketing professionals The marketing mix is the set of marketing tools – often summarized as the ‘four Ps’: the product, its price, promotion and place – that the firm uses to achieve its objectives in its target market (McCarthy, 2001) The key elements in the marketing mix are shown in Figure 11.1 The design of the marketing mix normally forms the core of all marketing courses and the textbooks that support them The central assumption is that if marketing professionals make and implement the right decisions about the features of the product, its price, and how it will be promoted and distributed, then the business will be successful Unfortunately, marketers have ignored the tautological nature of this view What is the ‘right’ decision when it comes to making these choices concerning the marketing mix? Most marketing professionals would answer that the right marketing mix is the one that maximizes customer satisfaction and results in the highest sales or market share But a moment’s reflection reveals the fallacy of this approach Customer satisfaction and sales can always be increased by offering more product features, lower prices than competition, higher promotional budgets and the immediate availability of the product, of outstanding customer service and support But inadequate margins and excessive investment requirements would make this strategy a quick route to bankruptcy Some writers have tried to get around this problem by stating that the objective is to devise a marketing mix that provides superior customer satisfaction at a profit to the company Price List price Discounts Allowances Trade margins Payment terms Credit Trade-in Product Brand Quality Design Features Variety Packaging Service Support Guarantees Target Market Promotion Sales force Direct marketing Sales promotion Advertising Public relations Exhibitions Internet Figure 11.1 Place Distribution channels Coverage Assortments Locations Inventories Transport The marketing mix 288 But profit is an ambiguous goal Are managers to aim at short- or long-term profits? Should they seek to maximize profits or achieve some satisficing goal? Each alternative would lead to radically different recommendations for marketing mix decisions It is fair to conclude that most of the writing on marketing has described the marketing mix but not provided a rational framework for managing it In line with the new concept of valuebased management, we define the objective of marketing as the development and implementation of a marketing mix that maximizes shareholder value This definition has two advantages First, it aligns marketing decisionmaking to the goals of the board and top management The board is not interested in sales or market share per se, but rather with marketing strategies that will enhance the company’s value Corporate value is determined by the discounted sum of all future free cash flows Second, shareholder value provides rational and unambiguous criteria for determining the marketing mix The ‘right’ marketing mix is the one that maximizes shareholder value This chapter focus on marketing mix decisions for private sector firms whose major objective is creating value for shareholders In non-profit and public sector organizations, the objective is not shareholder value maximization but attracting enough funds to perform their social tasks The chapter explains the logic of this new approach to the marketing mix and illustrates its application to typical decisions about product development, pricing, promotion and distribution The traditional approach to the marketing mix Marketing professionals have normally been taught a four-step approach to marketing mix decisions Step one is to define the product’s (or The Marketing Book service’s) strategic objective This emerges from an analysis of its strengths, weaknesses, opportunities and threats Marketers have found the strategic matrices developed by consultants such as the Boston Consulting Group and McKinsey to be useful (for a good summary of these matrices see Grant, 2000, and the comments of Robin Wensley in Chapter 4) Typically, a strategic matrix has market growth or market attractiveness as one dimension and competitive advantage as the other A product in a highly attractive market with a strong competitive advantage would normally have as its strategic objective rapid sales growth A product in a poor market with no competitive advantage would be targeted for divesting Step two is a detailed analysis of the target market to assess the nature of the opportunity What is its size and potential? How strong is the competition and how is it likely to evolve in the future Step three is research into the needs of prospective customers What is it that customers actually want? Today, this goes beyond merely asking customers what they are looking for, but creatively seeking to discover needs that customers cannot articulate because they are unaware of the possibilities offered by new technologies and the changing environment (see, e.g., Hamel and Prahalad, 1991) To most marketing professionals the marketing mix is designed to meet these customer needs and wants Each element of the mix is designed to meet a customer need Lauterborn (1990) articulated this with the concept of the four Cs Consumers have certain needs, which can be grouped into four Cs – a customer solution, cost, convenience and communication According to this popular view, the function of the four Ps is to match each of these Cs Four Cs Four Ps Customer solution Customer cost Communication Convenience Product Price Promotion Place Managing the marketing mix An effective marketing mix is then one which offers a product that solves the customer’s problem, that is of low cost to the customer, that effectively communicates the benefits, and that can be purchased with the utmost convenience The problem with this ‘marketing’ view of the marketing mix is that it ignores whether the mix makes economic sense for the company While it maximizes value for customers it can easily minimize value for shareholders For example, the product that gives the best customer solution is likely to be one individually tailored to a specific customer, incorporating all the features of value to that customer But for the company, this would require a very broad product line with high manufacturing costs and substantial investment requirements Unfortunately, what customers also want is low cost, which in most situations will mean offering them low prices Similarly, the unconstrained pursuit of convenience and communication of the brand’s benefits also involves higher costs and investment The formula of low prices, high operating costs and high investment in promotion and distribution is not one that builds successful businesses A striking example of the problems of the marketing-led approach to the marketing mix has been the collapse of the Japanese economic miracle (Porter et al., 2000) Until the early 1980s, the Japanese were held as the paragons of successful marketing (e.g Ohmae, 1985; Hamel and Prahalad, 1994) Japanese companies such as Nissan, Matsushita, Mitsubishi, Komatsu and Canon appeared set to dominate their markets Their formulas were similar: an overwhelming focus on investing in market share, and a marketing mix based on fullyfeatured products, low prices, aggressive promotion and an extensive network of dealers The strategy did lead to gains in market shares as consumers appreciated the superior value that Japanese companies were offering But the profit margins and return on investment earned by these companies were very poor For a time, the support of the Japanese banks disguised 289 their inadequate economic performance But in the 1980s the bubble burst, investors lost confidence in the ability of Japanese companies to earn an economic return on capital and Japan entered a two-decade recession The dot.com ‘bust’ of 2000 illustrated the same sort of weaknesses These start-ups made market share their sole priority Products and services were given away free or below cost Huge sums were spent on advertising and promotion in the belief that if they achieved a dominant market position in the ‘new economy’ everything else would fall into place The result was large number of visitors to their sites, but the companies generated no profit and eventually they ran out of cash In 2002, Yahoo! counted its global users in millions, but it worked out the average spend per head amounted to less than a cup of coffee annually It was hardly surprising that, despite its dominant market share and brand leadership, the value of the company collapsed by 90 per cent Successful businesses understand that building brands that satisfy consumers is necessary but not sufficient Without generating an economic return to shareholders, a marketing mix is not sustainable The accounting approach to the marketing mix Faced with poor returns, some companies, especially in the UK, adopted an accounting approach to marketing The marketing mix was seen not as an instrument for gaining and retaining customers, but rather as a tool for directly increasing the return on investment Return on investment can be increased in four ways – increasing sales, raising prices, reducing costs or cutting investment The marketing mix is the central determinant of each of these levers For example, cutting back on the number of product variants offered to customers will reduce costs and investment Raising prices 290 The Marketing Book will usually increase profitability in the short term because higher margins will offset the volume loss Cutting advertising and promotional budgets will also boost short-term profits Finally, savings on distribution and service will normally have positive effects on profitability, even though customers may suffer some inconvenience As illustrated in Figure 11.2, the accounting approach leads to a completely opposite marketing mix to the marketing approach While the marketing focus, which puts the customer first, normally leads to broader product ranges, lower prices and more spending on promotion and distribution, the accounting one leads to the opposite pressures The cost of the marketing approach is lower profitability and cash flow, the cost of the accounting approach is the longer-term loss of market share resulting from the lack of customer focus Marketers need to be aware that there are other important problems in considering profits as the objective of the business Marketing Objectives Target Market Segment Marketing Plan ᭹ ᭹ ᭹ Buyer Expectations Marketing Mix Financial Variables Performance Design Choice Product Strategy Sales Costs Inventory Price Value Discounts Pricing Margins Sales Debt Profit Objectives Budgets Service Delivery Credit Distribution and Service Sales Assets Expenses Information Image Security Advertising and Promotion Sales Expenses Assets Marketing-led approach Figure 11.2 Short- or long-term profits Most managers are conscious of the dangers of focusing on short-term profits Cutting projects to boost this year’s results can lead to permanent erosion of the firm’s ability to compete But emphasizing long-term profits does not help much because they are so ill-defined Are long-term profits defined over 3, or 20 years? How does one deal with the time value of money? Maximum or acceptable profits Should managers be seeking to maximize (short- or long-term) profits or achieving an acceptable level, e.g the average return in the industry? Each would give quite different recommendations when it comes to the marketing mix How would shareholders respond to managers consciously accepting sub-optimal returns? Ambiguity of profit measurement Unlike cash flow, profits are a matter of judgement Different, but equally legally acceptable treatments of depreciation, stocks and the costs of restructuring lead to vastly different Alternative approaches to the marketing mix Return on Investment Accounting-led approach 291 Managing the marketing mix ᭹ reported profits Profits also fail to incorporate the cost of capital So a company can be growing profits, but declining in value because it is not achieving a return above its cost of capital on new investment Finally, profits exclude the added investments in working and fixed capital needed to support the company’s growth So a company can be profitable but rapidly running out of cash Alternative measures of profitability Most companies set objectives not in terms of absolute profits, but express them as a ratio such as return on assets, return on investment, return on equity or earnings per share All these measures, because they have profits in the numerator, suffer the same problems as outlined above There are even added problems since measures of assets, investment and equity are equally ambiguous For example, should assets be valued at cost or replacement value? Should R&D spending be treated as investment or as a cost? Disney’s overriding objective is to create shareholder value by Walt Disney Corporation Our governing objective is growth in share owner value Cadbury Schweppes plc Why value-based management? Value-based management says that decisions have to be made which maximize the wealth of the company’s shareholders Today, these shareholders are not the bloated capitalists of socialist propaganda, but rather the pension funds and insurance companies responsible for managing the savings of ordinary people It is the financial value of the companies in their portfolios that will determine the future quality of life for most of us The key arguments for value-based management are: Value-based marketing A value-based approach to the marketing mix reconciles the marketing and accounting approaches in an optimal manner The key principle is the optimum marketing mix is that which maximizes shareholder value The concept of value-based management – that the job of the board and its senior executives is to maximize shareholder value – has become almost universally accepted in major businesses As a recent Business Week (2000) study concluded, ‘the fundamental task of today’s CEO is simplicity itself: get the stock price up Period.’ Most companies – even those with a strong marketing orientation – now have the goal enshrined in their mission statements; for example: We exist to create value for our shareholders on a long term basis this is our ultimate commitment Coca-Cola Corporation Ownership rights In a market-based economy, companies are owned by their shareholders The central responsibility of management is to maximize shareholder value and to so legally and with integrity Managers have neither the legitimacy nor the expertise to pursue other social goals Social objectives are the function of government or other social institutions Pressure from capital markets Today, chief executives have little choice Unless shareholders believe top management are pursuing strategies to create shareholder value, executives will not retain their jobs In recent years, a stream of CEOs from major companies have been ousted for allowing their company’s share price to slide As the Financial Times (2000) commented, ‘the model of capitalism, which emphasizes shareholder value, is the yardstick on which global capital markets are converging.’ Consistency with other stakeholders’ interests A company seeking to maximize shareholder value cannot neglect other stakeholders In 292 The Marketing Book today’s knowledge-intensive businesses, satisfying the interests of the knowledge workers is essential for the business’ long-run health No company can ignore the needs of customers if it is interested in retaining long-term cash flows Conversely, all stakeholders – workers, customers, suppliers and the community – become vulnerable if the business fails to generate shareholder value Ultimately, the needs of all the stakeholders depend upon the firm’s ability to generate sufficient cash to meet them Focus on long-term performance Marketing people often think of the shareholder value orientation as creating a short-term focus, discouraging long-term investments in brands and market development Nothing could be further from the truth As we shall see, short-term movements in profits have little impact on shareholder value The first years of profits and cash flow rarely account for more than one-third of a company’s value The shareholder value approach encourages a long-term perspective about marketing mix decisions – as long as these investments promise to generate a return above the cost of capital Strong intellectual rational The key reason why marketing management has failed to develop as an intellectual discipline is its lack of a clear objective Without a rational goal it is impossible to develop a framework for optimizing marketing mix decisions As we have noted, maximizing market share or customer satisfaction makes no sense Nor is a focus on maximizing profits or return on investment any better Optimizing shareholder value, a framework that lies at the heart of modern finance, offers the basis for redefining marketing in a precise and rational manner It provides a powerful tool for optimizing the marketing mix Key principles Value-based marketing is based on the belief that management should evaluate marketing mix options in the same way that shareholders Shareholders assess companies on their potential to create shareholder value The company’s share price reflects investors’ evaluations of how much value management’s current strategy will create We need to review how investors estimate value and evaluate value-creating strategies The concept of value is founded on four financial principles First, cash flow is the basis of value – it is the amount left over for shareholders after all the bills have been paid Without the expectation of free cash flow passing into investors’ hands, an asset cannot have value Most of the dot.com companies founded in the 1990s collapsed because investors could not see how free cash flow was going to be created The amount being spent looked to permanently exceed the revenues coming in Next, cash flow has a time value: money today is worth more than money coming in the future This is because investors can earn a return on cash they get today Typically, £1000 received in 10 years time is ‘worth’ only about £385 today (£1000/(1 + r)10, where r is the discount rate; here r is taken to be 10 per cent) Third, the opportunity cost of capital is the return investors could obtain if they invested elsewhere in companies of similar risk Essentially this means that investors will find risky marketing strategies appealing only if the expected rewards are greater Finally, the net present value concept brings these principles together It shows that the value of an asset (e.g a company) is the total of all the future free cash flows that asset generates after discounting these future sums by the appropriate opportunity cost of capital The task of marketing – and managers generally – is to put in place strategies that maximize the net present value of the business The optimal marketing mix is that combination of product, price, promotion and distribution that maximizes the net present value To calculate the value of an asset, or to assess whether a strategy is likely to create value, management has to forecast the future 293 Managing the marketing mix cash flows that result from their decisions, i.e net present value (NPV): ϱ NPV = ⌺ i CFi (1 + r)i This is calculated by dividing the company’s net operating profit after tax (NOPAT) by the cost of capital: (11.1) where CF is free cash flow and r is the discount rate or opportunity cost of capital for shareholders Clearly, analysts or investors cannot forecast cash flow decades ahead Instead, the time period is split between a feasible forecast period, typically of 5–7 years, and a continuing value representing the value of the business at the end of the forecast period (for a comprehensive discussion, see Brearley and Myers, 1999) For a high performing business the forecast period can be called the differential advantage period It is the number of years the business expects to maintain a market advantage over competitors allowing it to earn supernormal profits (i.e above the cost of capital) However, for virtually all companies, competition, the changing environment and new technologies mean that eventually profitability erodes It is relatively rare for this differential advantage period to exceed or years (Rappaport and Mauboussin, 2001) After that, companies are fortunate to earn normal profits In summary, we can rewrite the value of a company (Equation 11.1) as: Continuing value = r (11.3) To calculate the present value of the continuing value, this figure has to be discounted back the appropriate number of years For example, if the net operating profit at the end of a 7-year differential period is £8 million and the cost of capital is 10 per cent, then the continuing value is £80 million and the present value is £80 million divided by (1 + 0.1)7 or £41 million (for a complete discussion, see Doyle, 2000, pp 32–66) Uses of value-based marketing Value-based marketing – the philosophy that the task of marketing management is to maximize the financial value of the business for shareholders – transforms almost every aspect of marketing strategy Here are some examples of where it can be used: ᭹ Present value of cash flow during differential advantage period + NPV = Present value of cash flow after differential advantage period (11.2) ᭹ There are a number of ways of calculating the latter term representing the continuing value of the business at the end of the forecast period (Copeland et al., 2001, pp 285–331) The most common one is the perpetuity method that assumes the business just maintains a return on investment equal to its cost of capital NOPAT Developing the marketing mix A value-based approach leads to quite different decisions about products, price, promotion and distribution For example, as is illustrated below, the price that maximizes shareholder value is invariably higher than that which maximizes customer satisfaction and lower than that which maximizes short-term profits A value-based approach offers managers a more rational method of decision-making and one which is more consistent with the goals of the board of directors Evaluating alternative marketing strategies Top managers commonly have to choose between major options Should they focus on being a premium brand or go for a mass market? Should they diversify the product range or ‘stick to the knitting’? Value-based marketing provides a rigorous approach to analysing these alternatives The right strategy is one 294 ᭹ ᭹ ᭹ that is most likely to maximize the present value of future cash flows available for shareholders Justifying marketing budgets When companies are under pressure, marketing budgets are usually the first to be cut (IPA, 2000; Doyle, 2001) Boards appear to believe that cuts in marketing spend offer a ready means of boosting short-term profits with limited long-term risks Marketing directors have lacked the analytical tools for demonstrating the dangers of such a view Value-based analysis allows marketing managers to demonstrate the positive impact of marketing spending on the company’s share price Valuing brands The key difference between today’s and yesterday’s businesses is that the modern firm’s real value lies in its intangible assets – its brands, the knowledge and skills of its people, and its management – rather than its tangible assets – the factories, buildings and equipment that appear on the balance sheet It is these intangibles that provide the differential advantage and which are difficult for competitors to copy In marketing, brands are the central assets Brand names like Coca-Cola, Microsoft and IBM – cultivated by consistent marketing investment – are the foundations of strong share prices Value-based analysis provides the tools for valuing brands and demonstrating marketing’s contribution Assessing acquisition opportunities Acquisitions have proved an appealing avenue for companies seeking growth They have certain advantages over internal growth: they offer a faster way into new markets; they can be cheaper than costly battles for market share; some strategic assets such as famous brand names and patents simply cannot be achieved internally, and an established business is typically less risky than developing a new one from scratch Yet the evidence convincingly demonstrates that most acquisitions fail to generate value for the acquirer They pay too much or fail to achieve the cost and revenue synergies that were anticipated Again a value-based analysis takes the guesswork out of acquisitions, The Marketing Book providing a clear framework for calculating how much a prospect is worth and what needs to be done to make the acquisition succeed The marketing mix and shareholder value Value-based management is of great importance to marketing because it clarifies the central role of marketing in determining the value of the business The marketing mix is the key driver of the share price To understand this we need to look at the determinants of shareholder value The value of the business and its share price are determined by the discounted sum of future cash flows (Equation 11.1) Examining this equation, we see that there are four ways of creating shareholder value Increasing the level of cash flow This is the most important way of creating shareholder value A business’ free cash flow is cash in less cash out, or specifically in any year i, cash flow is: CFi = Sales revenue i – Operating costs i – Taxi – Investmentsi (11.4) This in turn means there are four ways of increasing the level of cash flow Increasing sales Selling more will create shareholder value as long as the increased sales are not offset by disproportionate increases in costs, taxes or investment It can be shown (Rappaport, 1998, pp 51–55) that additional sales increase shareholder value as long as the operating profit margin exceeds a threshold margin: Threshold margin = Incremental investment × Cost of capital (1 + Cost of capital) (1 – Tax rate) (11.5) 822 Market share, 6, 174, 619 Ansoff matrix, 518 BCG matrix, 59–60 e-marketing, 653 Japanese companies, 289 pricing, 303 ROI relationship, 71–2, 73 share of voice relationship, 521–2 SMEs, 761 value-adding, 508 Market-focus, 507–9 Market-orientation, 247, 499–500 Marketing audit, 91–3, 99, 100, 103, 104, 105, 112 Marketing concepts: definitions of marketing, 3–15, 120, 288 marketing in context, 766–8 marketing function, 9–11, 15 value-based marketing, 288, 291–4, 312 Marketing department, 9, 88, 89, 536, 606–7 Marketing director, 743 Marketing mix, 9–10, 15, 142, 287–313 see also Four Ps; Mix management paradigm; Seven Ps accounting approach, 289–91 cause-related marketing, 676 cross-elasticities, 67 decision-making, 298–311 e-marketing, 655–63 enhanced, 459 evaluation, 174 green marketing, 746–52 interdependence, 198 international marketing, 629, 630–1 linear programming, 233 market segmentation, 256, 277 positioning, 278–9 sales promotion, 461, 464, 469, 474–5 services, 598–606, 607 shareholder value, 288, 289, 291–2, 293, 294–8, 312 SMEs, 765 social marketing, 700, 714–19 traditional approach, 288–9 Marketing organization, 533, 536–43, 557 Marketing orientation, 5–7, 8, 9, 10, 79, 366, 606, 607 Marketing public relations (MPR), 422–3 Marketing research see Market research Markets: attractiveness, 288 BCG matrix, 59–60 business-to-business, 142, 143, 144, 147, 166 communications strategy, 308 Index concentration, 147 defining, 88, 89 e-marketing, 653–4 efficient, 32 emergent, 77 entry barriers, 509–11, 512, 733 evolution, 69, 80, 81, 105, 106 external auditing, 92 feasibility analysis, 765–6 fragmentation, 171, 246, 247, 611 global, 611, 613, 615, 620–1, 626, 627–30, 801 green marketing, 736 growth of, 726 information, 322–5, 330, 338, 619 internal marketing, 552 internationalization, 102, 612–13 maturity, 7, 101, 102, 309 networks, 57–8, 65, 75–6, 78 new product development, 317 portfolio analysis, 106–7 price elasticity, 352 rapid response, 82 relationship marketing, 37–9 spoiling, 615 understanding, 487–8 Markets as networks perspective, 57–8, 65, 75–6, 78 Markov model, 224 Marks & Spencer, 477, 519, 783, 784 acquisitions, 801 credit services, 798 own brands, 792 Marlboro, 511, 519 Marn, M., 345 Marone, M., 172 Marriage metaphor, 42–3 Marriott, 463, 552–3 Mars bar, 403 Mars group method, 386 Marsh, H., 273 Marshall, A., 344, 345 Maslow, Abraham, Mason, Tim, 687 Mass consumption, 19 Mass customization, 247, 500 Mass marketing, 405, 406 Mass production, 5, 6, 19, 247 Matalan, 785 Materialism, Mathews, B P., 343 Matrix organizational structure, 335, 337, 411 Mattel Inc., 462 Mattsson, L G., 14, 58, 76, 163, 612 Maximum likelihood latent structure analysis (MLLSA) software, 201 May & Co., 783 Mayle, P., 442 Mazanec, J A., 223 Mazudmar, T., 343 Meades, Jonathan, 25, 26 Measurement: see also Metrics; Quantitative methods; Statistical methods advertising effectiveness, 430, 431, 449–51 attitudes, 186–9 cause-related marketing, 685–6 direct marketing, 577 eco-performance, 746–7 linear programming, 232 LISREL, 235 market segmentation, 248 marketing effectiveness, 504–30 marketing objectives, 94 performance, 494, 505, 515–18, 525, 529, 665 problems, 197 profit, 290–1 research process, 184–6 Mechanization, Media, 397, 402, 404 see also Magazines; Posters; Television ACORN classification, 261 cause-related marketing, 676, 685 e-marketing, 640–2 expenditure, 513 fragmentation, 404 green marketing, 731 heuristic programming, 237 international marketing, 626 new media, 420–2, 424 planning, 433–6 publicity, 419 scheduling, 237, 434, 435 selection, 233, 434, 435 social criticism of advertising, 453 social marketing, 697, 717, 718–19 Media advocacy, 717, 718–19 Media buyers, 434, 435 Media owners, 434, 441, 445, 446, 447–8, 453 Media planners, 434 ‘Media test’, 685 Meidan, Arthur, 197–245 Memory, 123, 124–5 Mental mapping, 382 see also Cognitive Mercedes, 307 Merchandising, 224, 420, 425, 796 Merck, 308, 368 Mergers, 405, 671 see also Acquisitions Messages, advertising consumer decision-making, 136–7 content, 396, 398–9, 401, 408, 409–10, 430 decoding, 472 delivery, 433–6 design of, 309 developing, 432–3 Metatheory, 11 823 Index Metcalf, L E., 160 Methodology: postmodern research, 24, 25–7, 28 research, 174, 177 Metrics: brand evaluation, 391–2 e-marketing performance measurement, 665, 666 quantitative methods, 198 segmentation, 246, 248, 249, 256, 266–72, 280 Micro-management, 384 Micro-marketing, 469, 790 Micro-segmentation, 102 Microeconomics, 38, 39, 58 MicroMarketing (company), 582 Microsoft, 294, 298, 301, 519 international marketing, 614, 631 sales promotion, 462, 473, 480 Middle East, 616 Migros, 781 Miller, G., 375 Mills, Terry, 690 Military analogy, 61, 64–5, 95 Mingers, J., 78 Mini-depth interviews, 182 Mintzberg, Henry, 54, 55, 74, 77 Mission, 89, 515 Mission statement, 90, 96, 107, 291, 507 Mitchell, Alan, 22, 275, 276, 374 Mitchell, Jeremy, 786 Mitsubishi, 462 Mix management paradigm, 32, 37, 38, 44–5 see also Marketing mix Mixed-mode buying, 641–2, 658 MLLSA see Maximum likelihood latent structure analysis software Mobile phones, 315, 643 Modelling and experimentation, 428–9 Models: AIDA, 450, 451, 472 Booz Allen Hamilton model, 315, 317, 322, 324, 325, 327, 328 brand building, 383–92 causal, 200, 235–6, 241 LISREL, 200, 235–6, 241 path analysis (PA), 200, 235, 236 cause-related marketing, 676–80 CHAID (CHi-squared Automatic Interaction Detector), 269–72, 280, 571 decision process, 153, 538 e-marketing, 651–3 generalized linear models, 206–12 log-linear analysis, 212 logistic regression, 210–12 ordinary least squares regression, 208–10, 212 hybrid, 200, 236–7, 238, 240 dynamic programming, 236, 238 heuristic programming, 237, 238, 240–1 stock control models, 237 molecular, 593 network programming, 200, 237–40, 241 new product development, 315, 322–31 non-linear, 234, 239, 240 organizational buying, 152–65, 166 portfolio, 164 pricing, 343 process, 538–40 regression, 790 simulation, 81, 198, 213–15, 217, 240–1, 321–2 SME marketing, 773–4 stochastic processes, 224 transportation model, 233–5, 241 variable precision rough set, 227–9 Moderators, 181, 182 Modernism, 17, 20, 21, 26, 27 Modernity, 18 Modulation, 430, 431, 440 Molecular model, 593 Moller, ă K., 11, 14, 33, 34, 38, 43, 44 Moments of truth, 638 Monaert, R K., 329 Monahan, J L., 718 ‘Money managers’, 132 Monitoring: brand, 384, 392 cause-related marketing, 685–6 competitors, 104 continuous, 109 customer satisfaction, 108 delivering value, 88 e-marketing, 645, 665 performance, 174, 494 Monopoly, 5, 10, 14, 602 Monopoly pricing, 306 Monroe, K B., 342, 343, 344, 348, 350, 353 Montoya-Weiss, M., 319–20 Moore, W L., 322 Moorthy, J S., 62 Morgan, Delyth, 689 Morgan, R M., 33, 37, 39, 40, 44 Morley, K., 407–8, 409 Morris, G., 342, 348–9, 350, 351–2, 353, 355 Morris, M H., 342, 348–9, 350, 351–2, 353, 355 MOSAIC, 258, 268, 269, 711 Motivation, 158, 369, 384, 408 Moutinho, Luiz, 197–245 Movies, 23 MPR see Marketing public relations Mrs Fields’ Cookies, 475 MS see Multidimensional scaling Mulani, N., 201 Mulhall, D., 731 Mulhern, F J., 739 Multi-product marketing, 233 Multibrand purchasing, 119, 134 Multichannel integration, 492–3 Multichannel marketing, 567 Multiculturalism, 171 Multidimensional scaling (MS), 201, 202–3, 204, 207, 240, 279 Multinational corporations, 396, 615, 616, 619, 671, 731, 801 Multipacks, 462 Multiple convergent approach, 331–3 Multiple regression, 206 Multiples, 779 Multistage sampling, 190–1 Multivariate analysis, 194, 198, 200–6, 207, 240 cluster analysis, 201–2, 207, 221, 222, 223 conjoint analysis, 203–4, 207 correspondence analysis, 204–6, 207, 240, 279 factor analysis, 200, 201, 207 latent analysis, 200–1, 207 multidimensional scaling, 201, 202–3, 204, 207, 240, 279 OLS regression, 208–9 Music, 17, 23 Mutuality, 40, 43 Nagle, T., 344, 349, 351, 352–4, 355, 356 Nambarrie, 676, 687–8 Napster, 659 Narver, J C., 79 Nash equilibrium, 306 National Car Rental, 580 National Census see Census data Neelakanta, P S., 221 Nescaf´e, 403 Nestl´e, 406, 495 Net operating profit after tax (NOPAT), 293, 295 Net present value, 292–3, 295–6, 297, 309, 524 Network marketing, 770–2, 773 Network programming models, 200, 237–40, 241 Networks: definition, 161 interorganizational relationships, 12–13 market evolution, 81 markets as, 57–8, 65, 75–6, 78 network organizations, 537, 538, 541–2, 557 relationship marketing, 34, 36, 40, 44, 76, 161–3, 165 SMEs, 770–2 824 Neural networks, 198, 219, 220, 221, 223 ‘New’ lifestyle segmentation, 263–4 ‘New marketing’, 28, 246, 308, 396 New media, 420–2, 424, 573, 640–2 New for old promotions, 679 New product development (NPD), 102, 120, 314–41 added value, 308 brand value, 300, 301 conjoint analysis, 203, 204 e-marketing, 654 early adopters, 297 multiple convergent approach, 331–3 qualitative research, 181 stages of, 316–22 strategy, 316–18 usefulness of models, 322–31 New Zealand, 412, 779 Newly industrialising countries, 15 News media, 453 Newsgroups, 641 Newsom-Smith, N., 175 Newspapers, 430, 452, 719 Next, 567, 783 Next Directory, 802 NGOs see Non-governmental organizations Niche marketing, 63, 64, 65–6, 171, 396 competitive advantage, 101, 103 green, 736 SMEs, 761 Nike, 301, 316, 379, 385, 694, 731 Nilson, T S., 396 Nine Ps, 474 Nisa/Today, 780 Nissan, 495 NMS see Non-metric multidimensional scaling Nominal scales, 186 Non-comparative rating scales, 187 Non-governmental organizations (NGOs), 731, 734, 735 Non-linear models, 234, 239, 240 Non-metric multidimensional scaling (NMS), 203 Non-price competition, 778 Non-price instruments, 349 Non-probability sampling techniques, 191–2 Non-profit marketing, 697–8 Non-profit organizations, 288 Non-task-related models, 152 Non-verbal communications, 403 NOP, 421 NOPAT see Net operating profit after tax Nortel, 320 Novak, G J., 406 Index Novak, T P., 641 Novelli, Bill, 696 NPD see New product development Numeric merchandising, 796 Objective-and-task method, 429 Objectives, 89, 110, 112, 369, 449 see also Targets brand, 387–8, 392 cause-related marketing, 670, 674, 681, 682, 683 communications strategy, 308 e-marketing, 648–50, 665 financial, 505, 506–7, 515, 516, 517, 528 integrated marketing communications, 406 linear programming, 232 market research, 181, 184 organizational buying, 152 sales promotion, 461, 478 social, 291 social marketing, 700, 708 strategic marketing plan, 90, 93–4, 95, 96, 107 Objectivity, 173 Observation, 173, 179–80 O’Donoghue, Dan, 400 O’Donohue, S., 22 O’Driscoll, T., 319–20 Oechsle, S., 385 Office layout, 387 Ogilvy, David, 460 Ohmae, Kenichi, 58, 611, 612, 615 Older people, 402 Oligopoly, 10, 352 Olins, Woolf, 409 OLS see Ordinary least-squares regression Olsen, R F., 164 Olympus Sportsworld, 788 O’Malley, Lisa, 32–52 On-line promotions, 461, 468, 469, 476, 479 On-line purchasing, 643, 644, 658 On-line value proposition (OVP), 655, 661 On-pack promotion, 748–9 One-2-One, 476 One-to-one marketing, 77, 89, 165, 246, 248, 272–7, 402 customer intimacy, 308 Dell Computers, 311 e-marketing, 641 micromarketing, 790 transactional data, 266 Opal Fruits, 403 Operational excellence, 308 Operational planning, 97, 99, 100, 110, 113–14 Operational research see Deterministic operational research methods Operations managers, 606 Opinion leadership, 247, 256, 277 Opportunism, 769 Opportunities, 172, 174 competitor analysis, 528 customer relationship management, 540 e-marketing, 637 foreign markets, 621 strategic objectives, 288 SWOT analysis, 90, 93, 96, 99, 100, 104 venture marketing organization, 543 Opportunity cost of capital, 292, 295, 297–8 Optimality, 79 Order fulfilment, 488–9 Ordinal scales, 186 Ordinary least-squares (OLS) regression, 208–10, 212 Organic structures, 335 Organizational buying, 142–70 models, 152–65 structures, 144–52 Organizational (corporate) culture, 368, 497, 534, 536 see also Culture branding, 374–5, 380, 384, 386–7, 392 changing, 551, 556 corporate branding, 374–5, 380 internal marketing, 553, 558 Organizational stretch, 533, 534–6, 557 Organizational structure, 334–6, 506, 537 customer-based, 543 decision-making, 153 integrated marketing communications, 411, 413 marketing finance managers, 528 restructuring, 542, 651 strategic marketing planning, 111–12, 115 Osgood, C E., 188 Otker, T., 127 Otto Versand, 802 Ottum, B D., 322 Outdoor advertising, 430 Outsourcing, 15, 143, 163, 390, 665, 751 see also Subcontracting Ovaltine, 22 Overplanning, 110, 112–13 Overriders, 97 OVP see On-line value proposition Own brands, 792–3, 794 Ownership, 591, 594, 618 Oxenfeldt, A R., 344, 345 825 Index PA see Path analysis Packaging, 420, 463 emotional values, 377 green, 747–8, 750 innovations, 477 Packard, V., 452 Page, A L., 325, 336, 337 Paired interviews, 182 Palda, K S., 450 Paliwoda, Stanley J., 610–36 Pallister, J., 131 Palmer, Adrian, 585–609 Panasonic, 619 Panel research, 178–9 Paradigm shifts, 536 Parallel exports/imports, 626, 630 Parallel processing, 327, 331 Parasuraman, A., 165 Pareto, Vilfredo, 569–70 Pareto’s principle, 569–71, 580 Parker, P M., 352 Parsons, S., 231 Part-time marketeers, 35, 46, 532, 603 Participative structures, 335 Partnerships, 40, 495, 541, 583 see also Alliances; Co-operation; Collaboration; Joint ventures cause-related marketing, 670, 676–7, 680–6, 687–8, 689–90, 692 e-marketing, 651, 659 green marketing, 731, 733 Parvatiyar, A., 37, 44 Pascale, Richard, 74 Past Times, 567 Path analysis (PA), 200, 235, 236 Paul Masson, 463 Pawlak, Z., 226, 227 Payment, 132, 349, 462 Payne, Adrian, 485–503 Peapod, 637 Pearl, J., 230 Pears, 480 Peattie, Ken, 458–84, 726–56 Peattie, Sue, 458–84 Peer pressure, 183 Peer-to-peer services, 659 Penetration pricing, 303, 304 People (seven Ps) see also Employees e-marketing, 662–3 international marketing, 621 marketing mix, 311 new product development, 333–8 services, 596–7, 598, 599, 603–4 PEP see Political Economy Paradigm Pepsi-Cola, 22, 308, 543, 631 franchising, 781 sales promotion, 463, 464, 467, 474, 476, 480 Perception, 122, 138, 279, 401 brand image, 381 organizational buying, 154 of quality, 35 retail image, 786–8 of risk, 148, 149, 150, 154–5, 376, 508–9 use value, 528 Percy, L., 421 Perfect competition, 510 Performance: see also Key performance indicators brand, 384 cause-related marketing, 685–6 e-marketing, 642, 665, 666 eco-performance, 735–6, 737, 738–9, 740, 741–2, 746–7 evaluating salespeople, 369 marketing audit, 91–3 measurement, 494, 505, 515–18, 525, 529, 665 monitoring, 174 risk, 376, 391 sales, 361–2 strategy relationship, 87 SWOT analysis, 90, 93, 96, 99, 100 technologists, 146 value-based marketing, 292 variance, 82 Performance evaluation and review (PERT), 200, 237, 238, 239 Perishability, 591, 594 Permission marketing, 576, 656 Perpetuity method of valuing, 296, 298 Perrier, 403 Persil, 23, 301, 318, 579, 678, 690 Person-situation segmentation, 256–8 Personal data, 246, 249 Personal interviews, 177 Personal selling, 255, 361, 362–3, 369, 422, 798 definition, 420 green marketing, 749 innovative marketing, 772 Personal service, 589, 603, 765, 767 Personality: brand, 377–8, 382, 390, 391, 410 entrepreneurs, 759 measures, 128–9 Webster-Wind model, 158 Personalization, 273, 575, 576 PERT see Performance evaluation and review PEST (Political, Economic, Social and Technological) analysis, 642 Peters, Tom J., 54, 73, 632 Pettigrew, A M., 54 Pettijohn, C., 362 Petty, R E., 707 Phelps, J., 406 Physical evidence, 605–6, 663 Piercy, Nigel F., 27, 427, 531–61 Piggy-back promotions, 463, 477 PIMS (Profit Impact of Market Strategy) project, 71, 72, 87, 88 Pine, B J II, 587 Pinto, J K., 329, 333 Pinto, M B., 329, 333 Piotrowski, C., 184 Pitts, M., 88 Pizza Express, 301 Place (four Ps), 94, 95, 108, 437, 602–3 see also Location e-marketing, 657–9 international marketing, 621, 625–6 marketing mix, 9–10, 287, 288–9 SMEs, 765 social marketing, 714, 716–17 Planet Hollywood, 25, 26 Planned Behaviour, Theory of, 124 Planner role, 114–15 Planning: see also strategic marketing planning brand, 383–4 cause-related marketing, 681–2 creative, 432–3 critical path analysis, 237–9 cycle, 91, 93, 94, 113 e-marketing, 642–66 financial, 515–19 formalization, 98 integrated marketing communications, 399 interaction approach, 160–1 international marketing, 621 management separation, 548 media, 433–6 new product development, 317 pre-call planning, 364 promotional plan, 437–9 sales promotion, 461–5 SMEs, 760 social marketing, 695, 700 Plant, R., 654–5 Pluralism, 27 Point of Purchase (POP), 467, 468 Point-of-sale (POS) merchandising, 420, 425 see also Electronic point-of-sale systems Policy maker role, 145 Political Economy Paradigm (PEP), 38, 39 Political issues: green marketing, 729, 731–2 social marketing, 715 Political risk, 616 Politics, internal, 115, 413, 553 Pollution, 728, 730, 732, 735, 747 Polman, Paul, 466 Pontin, A J., 65–6 POP see Point of Purchase Porras, J., 385 Portals, 646, 654 826 Porter, Michael E., 276, 350, 611–12, 653 greening, 735, 736, 749 marketing strategy, 53, 54, 58–9, 60, 63, 68 new economy, 804 value chain, 60, 739 Portfolio analysis/management, 106–7, 108, 163–5, 166, 606 Portfolio matrix, 96 Portfolio of relationships, 44, 45, 47, 161 POS see Point-of-sale merchandising Positioning, 105, 108, 246, 278–80, 520 branding, 374, 376–7, 380, 381 competitive, 67–8 consumer decision-making, 135, 137 correspondence analysis, 204 dynamic, 583 e-marketing, 650, 653, 654–5 international marketing, 621 network approach, 163 postmodernism, 17 price, 307, 401 retailing, 788–9 sales promotion, 481 SOMs, 223 strategic intent, 545 Post-decisional evaluation, 124 Post-industrial society, Post-purchase activities, 121, 124 Posters, 429–31, 454 Postmodern marketing, 16–31 Postmodernity, 17, 19, 171 Poverty, 301, 695, 709, 720 Power, 46, 621 PR see Public relations Prahalad, C K., 54, 385 Pre-call planning, 364 Pre-purchase activities, 119, 121, 135 Precedents, 622 Predator companies, 176 Premium prices, 296, 350, 354, 737, 749 Presentations, 364–5 Pressure groups, 731 Preston, I L., 450 Price discrimination, 305, 307, 601 Price wars, 476 Priceline.com, 566, 657 PricewaterhouseCooper, 646 Pricing, 108, 296, 307, 311, 342–59 benchmarking, 527 BMW example, 437 cost plus pricing, 342, 617, 749 customer perspective, 348–51 customized pricing, 304–5 direct marketing, 567 discounting, 97 e-marketing, 654, 657 elasticity, 344, 345, 351–3 Every Day Low Price concept, 466, 794, 795 Index game theory, 224–6 green products, 737, 749–50 internal marketing, 552, 554, 555 international marketing, 614–15, 621, 624–5 limited differentiation, 407 marketing mix, 9–10, 287, 288–90, 312 marketing strategy, 94, 95 objectives, 94 optimizing decisions, 302–8 positioning, 401 premium, 296, 350, 354, 737, 749 price competition, 5, 305–6, 344, 345, 347, 405, 624 price sensitivity, 307, 351–6, 624, 629 profit drivers, 345–8 retailing, 777, 793–4, 795 sales promotions, 459, 466, 476, 481 services, 591, 598, 600–2 SMEs, 761, 763, 765 social marketing, 714, 716 strategic intent, 545 transfer pricing, 616, 617, 624 Primark, 785 Primary data, 177–80 Primary research, 175, 176 Priminime, 783 Prince, 23 Principle of Insufficient Reason, 230 Principles (company), 783 Prioritization, 107 Prisoner’s Dilemma, 305–6 Prisunic, 783 Privacy, 47, 263 Prize draws, 679 Probability: Dempster–Shafer theory, 229, 230, 231 rough set theory, 227 sampling techniques, 190–1, 192 variable precision rough sets, 227, 228–9 Problem-solving: dynamic programming, 236 expert systems, 218–19 heuristic programming, 237 organizational buying, 155 Process thinking, 102 Process-orientation, 343 Processes: e-marketing, 663 high-level business, 487–90 international marketing, 621 marketing, 75, 79 services, 604–5 Proctor & Gamble (P&G), 424, 496, 497, 791 sales promotion, 466, 467, 473, 474, 476, 479 social marketing, 697 vertical restructuring, 542 Proctor, T., 174–5 Procurement savings, 143 Producer services, 595 Product advantage, 318 ‘Product enthusiasts’, 132 Product life cycle (PLC), 6–7, 66, 69–70, 102, 108 costing, 505, 526–8 early adopters, 297 green marketing, 745–6, 751 innovations, 126 international marketing, 614 market segmentation, 255 marketing assets, 514 marketing audit, 91, 93 strategic intent, 545 Product mix, 233 Product orientation, 6, 247 Product service system (PSS), 751, 752 Product-service mix, 777 Production, 5, 9, 14 costs of, 752 economic performance, 732 reversed, 20, 21, 29 services, 589, 596, 601, 602, 604, 605–6 sustainability, 728 Production managers, 606 Products, 108, 143, 407, 460 see also Fast moving consumer goods; New product development; Product life cycle Ansoff matrix, 518 BMW example, 436 conjoint analysis, 203, 204 consumer decision-making, 136 differentiation, 5, 8, 103, 247 e-marketing, 643, 654, 656–7, 657–8 ease of comparison, 354 evaluation criteria, 151 evolution, 105, 106 green marketing, 734, 741, 744–5, 746–7, 751 innovation, 512–13, 524, 772, 792–3 internal marketing, 552, 554, 555 international marketing, 621, 623–4, 625 marketing mix, 9–10, 287, 288–9, 469 marketing strategy, 94, 95 new, 125–6, 127, 128–9, 135, 136 new for old, 679 objectives, 94 organizational buying, 148, 151, 154–5 portfolio analysis, 106–7 postmodern advertising, 19 product-based strategy, 525–8 pure goods, 588, 589, 592, 607 rejuvenation, retailing, 791 samples, 462, 468, 472, 479 827 Index service marketing mix, 599–600 SMEs, 765 social marketing, 703–5, 706–7, 714–16 strategic intent, 545 testing, 120, 321, 793 trial, 463 uniqueness, 354 Professionalism, 108, 143 Profit: marketing mix, 287–8, 290–1, 312 monitoring, 174 postmodernism, 18 prices, 302–3, 305, 345–8 relationship marketing, 33 shareholder value, 507 super profit, 504, 509–11, 513–14, 520, 525–6, 527–8 value-based marketing, 293 Profit Impact of Market Strategy (PIMS), 54 Profitability: customer account profitability, 505, 522–5 customer retention, 497–8 direct product profitability, 526, 796 integrated marketing communications, 404 market segmentation, 248, 276–7 marketing mix, 290–1 price, 296 procurement savings, 143 Progressive Enterprises, 779 Projective research techniques, 183–4 Promotion, 5, 108, 419–57 see also Sales promotion actors, 439–41 agency selection, 443–5 budget, 426–9, 439, 448 campaign effectiveness, 449–51 cause-related marketing, 676 e-marketing, 659–62 expenses, 97 green, 748–9 in-store, 137, 461, 468, 479 integrated communications, 308 international marketing, 621, 626 market segmentation, 247 marketing mix, 9–10, 287, 288–9 marketing strategy, 94, 95 message delivery, 433–6 message development, 432–3 promotional mix, 419–26, 429–32 remuneration of agencies, 445–9 services, 591, 598, 602 SMEs, 765 social marketing, 714, 717 synergy, 436–7 working relationships, 441–3 Prosumers, 656 Protectionism, 612 Protests, 19, 671–3, 675, 690, 731 Prudential, 253, 409, 567, 651 PSS see Product service system Psychographic segmentation, 254–5, 264, 438, 623, 706, 710–11 Psychological distance, 627 Psychological risk, 376 Psychology, 67, 307, 797 Public relations (PR), 422–3, 660, 676–7, 796 green marketing, 749 integrated marketing communications, 398, 399 Public sector, 288 Public services, 601–2 Publicity, 422, 423–4, 426, 431 definition, 419 international marketing, 621 social marketing, 718, 719 Purchase frequency, 353 Purchase triggered donations, 678 Purchaser role, 145–6 Pure goods, 588, 589, 592, 607 Purposive sampling, 191 Push/pull factors, 316–17, 318, 640–1, 716, 800 QFD see Quality function deployment Quaker, 468 Qualitative methods, 35, 174, 175, 180–4, 322 demand measurement, 355 market research, 584 path analysis, 235 postmodern research, 25, 27, 28 Quality, 8, 107–8, 331, 517 see also Total quality management certification systems, 631 control, 590, 591, 596 differentiation, 103 international marketing, 625 price relationship, 345, 348, 350, 355 process thinking, 102 relationship marketing, 35 sales promotion, 476 services, 35, 587, 588–90, 596, 598, 604 e-marketing, 654 internal marketing, 532, 551 retailing, 797, 798 supplier choice, 486 Quality function deployment (QFD), 327 Quantitative methods, 70–1, 174, 175, 197–245 market research, 584 primary data, 177–80 taxonomy, 199 Quantity discounts, 97 Quantity increases, 462 Quelch, J A., 475, 645 Queree, A., 657 Questionnaires, 177–8, 180, 193 Queuing, 219–21, 225, 241 Quick response logistics, 496 Quota sampling, 191–2 QXL, 651 R&D (research & development), 6, 9, 327, 329 R-strategies, 63–4 RAC, 389, 433 Rackham, N., 364–5 Radas, S., 173 Radio, 402, 424 Radio Authority, 424, 453 Random sampling, 190 Rangun, V K., 697, 705, 716 Rank order scales, 188 Rao, V R., 350 Rapp, Stan, 565, 566, 569 Ratio scales, 186 Rationality, 62, 79 Re-marketing, 745 Reader’s Digest, 431 Real options, 60, 298, 524–5 Reasoned Action, Theory of, 124 Rebating, 447–8 Recession, 15, 309, 778 Reciprocity, 40, 43 Recruitment and selection, 366–7, 375 Recycling, 732, 734, 741, 743, 747, 748, 751 Red Cross, 385–6 Red Nose Day, 690 Redinger, R., 239 Rees, R D., 427 Reference prices, 349 Referrals, 524, 576 Refunds, 462 Regionalization, 613 Regression techniques, 198, 206–13, 214, 790 automatic interaction detection, 212–13, 214 discriminant analysis, 212, 214 generalized linear models, 206–12 log-linear analysis, 212 logistic regression, 210–12 ordinary least squares regression, 208–10, 212 multiple regression, 206 Regulation: see also Legal issues advertising, 120, 423–4 e-tailing, 803 environmental, 730, 731–2, 733, 735, 744 freeports, 626 international, 623, 629 promotion, 449, 451, 453, 454 sales promotion, 461 services, 602 828 Reichheld, F F., 297, 497 Reichmann, T., 348 Reintermediation, 645, 653, 659 Relational segmentation, 274 Relationship marketing, 11–14, 32–52, 89, 274, 523 see also Customer Relationship management; Relationships alliances, 542 business-to-business, 142, 144, 161–3, 165 cause-related marketing, 673 communications, 406–7 customer lifetime value, 524 definitions, 33–4, 40 direct marketing, 568, 582–3 history of, 34–9 IBM example, 540 international marketing, 612 salespeople, 362 segmentation, 248, 249, 272 strategy, 57–8, 76–7 supply chain management, 296–7, 489, 497, 501 Relationship portfolio analysis, 163–5, 166 Relationships, 34, 38, 39–40, 48, 274–5, 630 see also Customer relationship management; Relationship marketing agency-client, 408, 411–12, 414, 441–3 branding, 300, 382–3 business-to-business, 143–4 buyer-colleague, 152 buyer-seller, 36, 152, 158, 159, 160, 586–7, 596, 607 cause-related marketing, 672–3, 675, 677–8, 691 Dell Computer, 311 development of, 40–4 dissolution, 44, 45 e-marketing, 654 instability, 197 integrated marketing communications, 408 interfunctional, 540–1 internal market perspective, 532 relationship portfolio analysis, 163–5 research, 36–7 retailers, 791 sales management, 360, 361–2, 365, 366, 369 sales promotion, 473–4 seeking, 45–6 supplier-customer, 144, 161–5, 166, 494–6, 733 Religion, 623, 626 Remuneration, 368–9, 445–9, 516 Repeat purchases, 361, 471, 475, 480, 584 Index Representation, crisis of, 25 Reputation, 163, 381, 401, 513 cause-related marketing, 672, 674, 676, 683, 686, 691–2 green marketing, 749 SMEs, 767 suppliers, 151 Research & development (R&D), 6, 9, 327, 329 Research studies: see also Data; Market research atmospherics, 796 cause-related marketing, 674, 675, 680 consumer decision-making, 119, 128, 132 experiential, 627 green marketing, 736–7, 738, 753 marketing strategy, 70–5, 79, 81 postmodern methods, 24, 25–7, 28 relationship marketing, 34, 35, 36, 37, 38, 45–6 sales promotion, 460–1, 479–80 social marketing, 719 Resource commitment, 628 Resource-based view of the firm, 66, 68, 80, 299, 300 Resources, 110, 111, 233–5, 535 business relationships, 162, 163 competitive advantage, 103 e-marketing, 650, 661, 665–6 natural, 728 partitioning, 80–1 resource advantage, 80 resource dependence theory, 38, 39 SMEs, 758, 761 social marketing, 708 transportation model, 233–5 Retail life cycle, 778 Retail parks, 783 Retailing, 57, 525, 776–805 co-operation, 495 direct marketing, 566 e-tailing, 802–4 evolution of, 777–8 functions, 790–9 integrated marketing communications, 405, 407, 412, 414 internationalization, 613, 799–801 loyalty schemes, 406–7 major formats, 781–5 non-store, 802–4 queuing, 219–21 strategy, 785–90 types of retail organization, 779–81 Retraining, 198 Retrospection, 22–3 Return on investment (ROI), 71–2, 73, 289, 507–9, 687–8 market segmentation, 267 monitoring, 174 profit, 291 Reve, T., 38 Reversed production, 20, 21, 29 Rewards, 368–9 RFM analysis, 277, 280 Rickards, T., 175 Riebel, P., 348 Riek, R F., 317, 325 Ries, A., 377 Rio Earth Summit (1992), 726 Risk, 60, 152, 318, 507–9 advertising, 476 brand as risk reducer, 376, 391 category width, 136 cause-related marketing, 683 e-marketing, 664 financial evaluation, 506, 507, 512 international marketing, 615–18, 628 organizational buying, 148 perception of, 148, 149, 150, 154–5, 376 product attributes, 715 reducing, 297–8, 311 sales promotion, 470 services, 597, 602 social marketing, 719 ‘Risky shift’, 148 Ritchie, K., 250 Ritter, H., 222–3 Ritualism, 110, 113 Roberto, E L., 696, 703–5 Robertson, T S., 125 Robinson, Joan, 5, 10 Robinson, P., 149, 153 Robinson, W A., 475 ROI see Return on investment Rokeach, M., 385 Rolex, 301 Roman, Ken, 479 Roos, Annika, 649 Rosenbluth International, 532 Rosiello, R., 345 Ross, Paula, 410 Rothwell, R., 327 Rough set theory (RST), 226–7 Rover, 473, 495 Royal Bank of Scotland, 254, 567 RS Components, 651, 654 RST see Rough set theory Rubin, D S., 176, 188, 193, 194 Ryanair, 650 Saatchi & Saatchi, 425–6, 466–7 Safeway, 405, 414, 477 Sainsbury’s, 19, 405, 475, 522, 535–6, 792 St Ivel, 438–9, 480 St Michael, 522 829 Index Sales, 5, 294–6, 360–71 after-sales, 391, 442, 589 cash flow, 297 demand elasticity, 351 e-marketing, 648, 649, 664 forecasting methods, 198, 213 internal ratios, 428, 429 investment in communications, 309 management issues, 366–9 monitoring, 174 process, 363–5 profit drivers, 345–8 queuing, 219–21 salesperson role, 360–2, 369 web customers, 89–90 Sales promotion, 422, 423, 426, 458–84 above-the-line activity, 465–7 annual expenditure, 425 cause-related marketing, 676, 678–80 communicating through, 471–2 consumers, 469–71 definition, 420, 458–9 future of, 477–9 green marketing, 749 growing importance, 467–9 integrated marketing communications, 398, 399, 404 marketing mix, 461, 464, 469, 474–5 mismanagement, 475–7 objectives, 94, 96 relationship building, 473–4 retailing, 796 strategic intent, 545 types of, 462–3 Sales psychology, 307 Salespeople, 219–20, 360–2, 363–9, 473, 516–17, 798 Samples of products, 462, 468, 472, 479 Sampling techniques, 176, 179, 189–92, 194 Sandvik Steel, 649 Sanyo, 463 Saren, M S., 327 Sasser, W E., 599 Satellite television, 403 Satisfaction, 8, 108, 227, 287 cause-related marketing, 686 CRM, 497, 498 e-marketing, 666 green marketing, 741 integrated marketing communications, 397, 399 low prices, 306–7 Saxena, R., 625 SC Johnson, 742 Scales, 185–6, 187, 188–9, 194 Scase, Richard, 77 Schlegelmilch, B B., 171, 203 Schools, 253 Schultz, D E., 396–7, 398, 405–8, 411, 412–14, 416, 541 Schwartz, Beverly, 698 Schwartz, G., 697 Schweitzer, George, 399–400 SCM see Supply chain management Scotland, 713, 718 Screening, 319, 324 Search engines, 641, 660, 662 Search and evaluation, 122–3, 135, 150–1 Seasonal sales, 794 Secondary data, 173, 175–6, 185 Secondary markets, 147 Secondary service, 599 Sega, 467 Segmentation, 88, 108, 246–83 see also Targeting benefit, 256, 257, 712–14 biographic, 264–6, 280 buying behaviour, 134, 135, 137 cluster analysis, 201 cognitive style, 130, 131 correspondence analysis, 204 criteria and categories, 248–9 customer account profitability, 523 data-driven, 256, 258–77, 280 decentred subjects, 21 demand heterogeneity, 61 demographic, 250–4, 257, 261, 401–2, 631, 709–10 differentiation, 66–9 e-marketing, 650, 654 failure of, 534 geodemographic, 258–63, 269, 272, 277–8, 710, 711 green marketing, 736–7 historical perspective, 247–8 international marketing, 620–1, 623–4 latent analysis, 201 metrics, 246, 248, 249, 256, 266–72 micro-segmentation, 102 one-to-one, 246, 248, 266, 272–7 payment methods, 132 pricing, 305, 307, 601 psychographic, 254–5, 264, 438, 623, 706, 710–11 regression analysis, 214 risk perception, 376 sales presentations, 365 SMEs, 761 social marketing, 700, 706, 708–14 socio-demographic, 261, 438, 706, 711, 736–7 strategic marketing planning, 105, 106 targeting, 246–7, 256, 258, 267–72, 276–8 traditional segmentation bases, 249–58 Selectivity, 124–5 Self, 20 Self, Will, 19 Self-actualization, Self-liquidating promotions, 679 Self-organizing maps (SOMs), 221–3 Self-service, 494, 605, 662 Sell-side e-commerce, 638, 645–6 Sellitz, C., 187 Semantic assessment, 215 Semantic differential scales, 188–9 Semi-structured interviews, 182 Senge, Peter, 54 Separation, 651 September 11th attacks, 15 Serrano Cimca, C., 223 Service concept, 599 Service encounters, 34, 35, 604 Service profit chain, 494 Service sector, 4, 11, 23, 613, 757 Service-orientation, 592–3 Services, 11, 12–13, 585–609, 596 brand management, 372, 390 classification of, 591–8 consumer value, 587–8 definition, 588–91 design, 35 development of service economy, 585–7 e-marketing, 638, 646, 647, 656, 663 green marketing, 751 internal marketing, 558 loyalty, 43 marketing effort, 606–7 marketing mix, 598–606, 607 quality, 35, 587, 588–90, 596, 598, 604 e-marketing, 654 internal marketing, 532, 551 retailing, 797, 798 supplier choice, 486 relationship marketing, 34–5, 38, 48 SMEs, 757, 763, 766, 772 strategic intent, 545 SERVQUAL gap model, 35, 45, 798 SET see Social exchange theory Seven Ps (product, price, place, promotion, people, physical evidence, processes) see also Four Ps cause-related marketing, 682 e-marketing, 655–63 services marketing, 34, 598–606, 607 Seven-Eleven, 781 Seymour, D T., 342 Shafer, G., 230, 231 Shankleman, E., 145, 146–7 Shapiro, B P., 164 Share of market (SOM), 521–2 see also Market share Share of voice (SOV), 521–2 830 Shareholder value, 504, 507–9, 516, 517–18 brands, 300, 301, 302 communications, 309–10 customer relationship management, 490, 494 marketing mix, 288, 289, 291–2, 293, 294–8, 312 net present value, 309 price, 302, 303, 307 Shaw, M J., 216 Shaw, R., 275 Shell, 385, 735 Shelton, Robert, 742 Shepherdson, N., 250 Sherry, J F., 22 Sheth, J N., 37, 44, 147, 148, 154–5 Shoemaker, R W., 352 Shopping centres, 18, 782, 783, 798 Short-term, 11, 275 financial planning, 515 international marketing, 611 operational planning, 97, 99, 113–14 planning for SMEs, 760 social change, 702 Shostack, G L., 592, 593, 604 Shubik, M., 281 Shugan, S., 173 Shultz, D E., 475 Signifiers, 20 Signs, 20 SIGs see Special Interest Groups Simon, H., 79, 343, 344, 346, 350–1, 352–3, 355 Simonin, B L., 617 Simple Minds, 23 Simple random sampling, 190 Simplexity, 78 Simulation methods, 81, 198, 213–15, 217, 240–1, 321–2 Sinfonia Marketing Systems, 477 Single sourcing, 495 Sinkovics, R., 171 Situation specific marketing, 764 Situational analysis, 618–21 see also Market research e-marketing, 642–8 social marketing, 700 Situational influences, 130, 131, 155 Skills, 276, 532, 540, 549 see also Competencies competitive advantage, 101, 103 entrepreneurs, 769 green marketing, 742, 743 lack of, 110, 111, 115 marketing implementation, 541 professionalism, 108 specialists, 412, 413 Skimming pricing, 303, 304 Slater, S F., 79 SLEPT, 618 Sloans Supermarket, 476 Index Small to medium sized enterprises (SMEs), 101, 613, 757–75 characteristics, 758–9 e-marketing, 654 high-tech, 630 incompatibility of marketing theory, 760–1 model of, 773–4 nature of marketing, 761–4 segmentation, 106 strengths, 759, 764, 765–72 SMART objectives, 682, 683 SMEs see Small to medium sized enterprises Smith, Adam, 14, 77, 585 Smith, D., 182 Smith, P R., 398, 426, 642, 648, 663 Smith, Wendell, 247 SmithKline Beecham, 657 Snelson, P., 337 Snickers, 403 Social causes, 301 Social customs, 619, 623 Social distance, 42 Social Exchange Theory (SET), 36, 37, 38, 39, 40, 43 Social marketing, 137, 694–725 commercial marketing distinction, 703–8 definition, 696, 697–703 development of, 695–7 marketing mix, 700, 714–19 segmentation, 700, 706, 708–14 Social objectives, 291 Social responsibility, 671–2, 674–5, 691, 692, 697, 732 Social risk, 376, 391 Social status, 252, 259–62, 438, 711 Societal marketing, 697, 727 Socio-cultural distance, 627, 628 Socio-demographic segmentation, 261, 438, 706, 711, 7367 Soderlund, ă M., 46 Software, 131, 1323, 135, 1378, 582 conjoint analysis, 203 CRM, 266–72 MLLSA, 201 multidimensional scaling, 203 on-line catalogues, 478 price analyses, 344 SPSS, 200 Software Warehouse, 566 Solomon, M R., 399, 598 SOM see Share of market Somerfield, 477 SOMs see Self-organizing maps Sony, 308, 318, 325, 463, 476, 487, 748 SOSTAC (Situation, Objectives and Strategy, Tactics, Action and Control) framework, 642 Souder, W E., 329 Southern Comfort, 480 Southern, J., 185 SOV see Share of voice Soviet Union, 10 ‘Spadspend’, 467 Spar group, 779–80 Spatial competition, 66, 68, 70, 81 Spears, Britney, 22 Special deals, 349 Special Interest Groups (SIGs), 610 Special package features, 462 Specialist companies, 395, 404, 406, 409, 411 Specialists, 10, 64, 335, 413, 442, 758 Specialization, 147 Spencer, R., 161 Spillers, 480 Spin-offs, 651 Sponsorship, 256, 424, 431–2, 468 annual expenditure, 425 BMW example, 437 cause-related marketing, 677, 689 definition, 420 e-marketing, 660, 664 green marketing, 749 public relations, 422 retailing, 796 Sports games analogy, 61, 64–5 Sports sponsorship, 431, 432 Spreadsheets, 344 Springsteen, Bruce, 23 SPSS see Statistical Package for Social Science Sri Lanka, 696 Srinivasan, V., 321 Stage-Gate process, 315, 316, 327 Stakeholders: branding, 374, 380, 381 cause-related marketing, 672–4, 680, 683, 684–5, 692 green marketing, 744, 745 social marketing, 717 value-based marketing, 291–2 Standardization, 5, 69–70, 650 global/international marketing, 403, 415, 612, 615, 617, 626, 629 market evolution, 81 Stanford Innovation Project, 329 Stapel scale, 189 Stapleton, J., 437 Starbucks, 543 Starburst, 403 Starch, D., 450 Statistical decision theory, 198, 224, 225 Statistical methods, 192–3, 194, 197–245 see also Quantitative methods Statistical Package for Social Science (SPSS), 200 Stead, Martine, 694–725 Steiner, G A., 450 Stereotyping, gender, 251–2 831 Index Stern, L W., 38 Stevenson, Adlai, 419 Stewart, I., 78 Stewart, Thomas, 532 Stochastic methods, 198, 219–26, 240 game theory, 224–6 queuing, 219–21, 225 self-organizing maps, 221–3 statistical decision theory, 198, 224, 225 stochastic processes, 223–4, 225 Stock control models, 237 Stockouts, 575 Stonegate Egg, 462 Strang, Roger, 477 Strategic gaps, 544–7, 557 Strategic intent, 544, 545, 546, 547, 557 Strategic marketing planning, 87–116 barriers to, 109–15, 116 guidelines, 99, 101–9, 116 interaction approach, 160–1 process, 90–101, 116 Strategic matrix, 288 Strategic Planning Institute, 87 Strategic triangle, 58, 59 Strategy, 53–86 Ansoff matrix, 518, 519 brand-led, 505, 519–22 cluster analysis, 201–2 communications, 308–9 customer relationship management, 490, 491–2 customer-led, 522–5 e-marketing, 647, 650–5 financial planning, 515, 517 formulation-implementation dichotomy, 532, 533–4, 552, 557 green marketing, 734–5 implementation, 534–5, 544–7, 548, 549, 557–8 internal marketing, 532, 533, 550–6, 557, 558 launch, 130, 134, 321, 322, 323 marketing planning, 87, 93–4, 95, 96, 107 media, 435, 436 new product development, 316–18 product-based, 525–8 relationship marketing, 47 retailing, 785–90 strategic gaps, 544–7, 557 value-based marketing, 293–4 Stratified random sampling, 190, 192 Strauss, G., 155, 158 Strengths: SMEs, 759, 764, 765–72 strategic objectives, 288 SWOT analysis, 90, 93, 96, 99, 100, 104, 105 Stretch strategy, 535–6 Structuration, 78 Structured-direct survey methods, 177, 182 Stubbs, John, 664 Subcontracting, 439, 440, 442–3 see also Outsourcing Subjective norm, 123–4 Subjectivity, 21 Subliminal messages, 121–2 Subsidiaries, 148 Substitutes, 353, 732–3 Success: definition, 81–2 financial evaluation, 506 foreign markets, 621, 631 market information, 330 Sultan, Ralph, 71 Summated scales, 188 The Sun, 688 Sun Maid raisins, 22 Sunlight Soap, 669 Super profit, 504, 509–11, 513–14, 520, 525–6, 527–8 Supermarkets, 405, 605, 778, 784, 785, 792 Superstores, 784 Suppliers: backward integration, 104 brand value, 301 category management, 791 customer relationship, 144, 161–5, 166, 494–6, 733 Dell Computers, 311, 583 differentiation, 66 e-marketing, 638, 640 forward integration, 104 good relations, 146 green marketing, 733 innovation, 333 interaction approach, 36 knowledge of customers, 147, 148 marketing communications expenditure, 412 partnerships, 40 psychological distance, 627 relationship marketing, 40, 42 searching for information, 150–1 selecting, 151, 791 Supply chain: see also Channels brand value, 300, 301 competitor analysis, 528 e-marketing, 638, 639, 646 relationship marketing, 297 sales operations, 360 strategy, 57 value chain distinction, 60 Supply chain management (SCM), 162, 300, 751 CRM integration, 485–503 retailing, 798–9 Surveys, 173, 174, 177–8, 193 advertising, 454–5, 466 budgeting methods, 429 cause-related marketing, 678–9, 748 e-tailing, 804 green marketing, 738 Internet use, 421 ‘new’ lifestyle segmentation, 263–4 on-line, 639 Sustainability, 81, 726–8, 734, 738–9, 741–2, 749, 751–3 Swedish companies, 146 Switching behaviour, 69 Switching costs, 76, 354–5 see also Exit barriers SWOT (strengths, weaknesses, opportunities, threats) analysis, 90, 93, 96, 99, 100, 107, 642 Symbols, 20, 21 Syndicated research, 178–9 Synergy, 308, 318, 362, 533, 541 cause-related marketing, 681 e-marketing, 641 global competition, 405 integrated marketing communications, 406 promotional mix, 436–7 strategy, 535–6 Systematic approach, 173, 174 Szmigin, I., 132 3Cs (customers, competitors, channels), 56, 79 30R approach, 39, 40 Tabrizi, B N., 328 Tabulation, 193 Tacit know-how, 628 Tactics, 95, 655–64 Tango, 646 Targeting, 246–7, 256, 258, 276–8 see also Segmentation segmentation metrics, 267–72 social marketing, 703, 706 Targeting, interaction, control and continuity (TICC), 572–3, 574 Targets: see also Objectives internal marketing, 554, 555 planning cycle, 94 sales, 366, 369 sales promotion, 460, 471–2 Task specialization, 4, 333 Task-related models, 152 Tax issues, 617, 624, 684 green taxes, 732, 750 licensing, 677 sales promotion, 476–7 Taylor, C J., 237 Taylor, D., 442 Taylor, J R., 173, 177, 186 Taylor Nelson’s Applied Futures, 254–5 TCA see Transaction Cost Analysis 832 Teams: branding, 390 cross-functional, 488 design, 335 integrated marketing communications, 412 multifunctional, 335–6, 337, 338 venture, 336 venture marketing organization, 543 Technological distance, 42 Technologists, 145, 146, 149 Technology: see also Computers; Information technology coupons, 477 data, 246 e-marketing, 638 e-tailing, 803, 804 effect on labour, front-office/back-office, 493–4 global companies, 611 high-tech goods, 614 industrial revolution, 586 innovation, 5, 171 market evolution, 81 new product development, 318 personal targeting, 273 product life cycle costing, 526 relationship marketing, 37–8, 47 sales promotion, 481 SMEs, 773–4 Technology push, 316–17, 318 Technology transfer, 161 Telephone interviews, 177–8 Television, 402, 403 advertising, 423–4, 435, 466 children, 253 digital, 638, 643 dot.com advertising, 573, 574 Terminology, 112 Tesar, G., 627 Tesco, 405, 415, 519, 522, 779, 784 cause-related marketing, 676, 678, 686–7 Clubcard, 273, 568, 569 Computers for Schools, 301, 676, 678, 686–7 distribution, 308 e-marketing, 646 e-tailing, 804 international retailing, 800 opening hours, 798 own brands, 792 sales promotion, 472 strategy, 535–6 Test marketing, 224, 321–2, 324, 327 Testing: advertising, 433, 449–50 concepts, 319–20, 327, 328 products, 120, 321, 793 Index Tetley, 410, 415 Thain, D H., 145 Theme parks, 19 Theory, 81 Theory of Planned Behaviour, 124 Theory of Reasoned Action, 124 Theory of Trying, 124 Third World, 8, 615, 626, 696, 720 Thomas, Michael, 171, 437, 614, 624 Thompson, C J., 22 Thompson, J Walter, 397 Thorson, E., 411, 450 Threats, 172, 174, 288 competitor analysis, 528 e-marketing, 637 foreign markets, 621 SWOT analysis, 90, 93, 96, 99, 100, 104 Threshold margin, 294–5 Through the line methods, 425–6 Thrust marketing, TICC see Targeting, interaction, control and continuity Tiger economies, 11 Time issues: compressed horizons, 102 differentiation, 66, 69–70 green marketing, 744–5 international marketing, 611 late market introduction, 325 market research, 189 marketing plan, 90 planning horizons, 99 price modification, 345 product/market evolution, 105 retail pricing, 794 risk, 376, 391 sales promotion, 467–9, 478 time distance, 42 time pressure, 155 time to market, 629 time-based competition, 498–9 Time value, 292 Time-series forecasting methods, 213 Times, 480 Timmers, P., 651 TK Maxx, 785 Toffler, Alvin, 8, 656 Tonality, 718 Top management: see also Chief executives marketing director, 743 new product development, 316 organizational buying, 145 strategic marketing planning, 90, 101, 110, 111, 113, 115 strategy, 546–7 Topology, 222 Tordjman, A., 784 Torgerson, W S., 185 Total product concept, 595, 747 Total quality improvement, 497 Total quality management (TQM), 162, 741–2, 743 Tourism, 730, 736, 741, 763, 767 Tower Records, 273 Toyota, 436, 584, 679 Toys ‘R’ Us, 788 TQM see Total quality management Trade, 624, 629 Trade promotions, 461–4, 473, 480 Trademarks, 373, 625 Traditional marketing theory, 144 Training: e-marketing, 663 planning, 111 relationship marketing, 45 retailing, 798, 799 salespeople, 368 service sector staff, 605, 606 strategic, 318 Webster-Wind model, 158 Transaction Cost Analysis (TCA), 38, 39 Transaction costs, 575, 596 Transactional data, 264–6, 268–9, 271, 275, 280–1 Transfer pricing, 616, 617, 624 Transparency of prices, 353 Transport costs, 233 Transportation model, 233–5, 241 Trebor Bassets, 480 Trial triggered donations, 678 Triangular interviews, 182 Trout, J., 377 Trust: agency-client relationships, 414 branding, 391 business-to-business marketing, 144, 160 consumer privacy, 47 e-marketing, 656 NGOs, 731 organizational culture, 387 relationship marketing, 33, 37, 40, 43, 45, 673 salespeople, 362, 364, 365 social marketing, 718 Trust services, 652 Truste, 652 Trying, Theory of, 124 Tull, D S., 192 Turbulence, 8, 99 Turnbull, Peter W., 142–70 Turnbull Report, 671 Turnover of staff, 367 Tylenol, 480 Tynan, Caroline, 32–52 Tzokas, N., 315, 317, 325, 327 U2, 23 Ulrich, D., 552 Uncertainty, 21, 25, 43 833 Index brand risk, 376 Dempster–Shafer theory, 231 interaction approach, 160 international, 617, 618 involvement, 125 new product development, 325, 326, 329, 338 PERT, 200 Unemployment, 15 Unilever, 275, 403, 435, 467, 479, 489, 495 United Kingdom: advertising, 423, 424, 445, 454 British companies, 146 competition, 10, 11 demographics, 251 health promotion, 708 integrated marketing communications, 412 mail order, 802 retailing, 777, 779, 780, 783–5, 794, 799 sales promotion, 467 service sector, 586 United States: 5-a-Day for Better Health, 708, 709 agencies, 448 cause-related marketing, 670 competition, 10, 11 demographics, 251 environmental issues, 732, 733, 734, 744 law, 623 loyalty cards, 460 mail order, 802 postmodern marketing, 23 production orientation, retailing, 777, 779, 780, 782, 783, 784, 804 sales promotion, 467, 468, 477 September 11th attacks, 15 service sector, 586 Univariate analysis, 194 Unpaid invoices, 97 UPS, 652 Urbany, J E., 343, 348, 355 Users, 145, 146, 149, 158 Valla, J P., 160–1 Value: see also Shareholder value adding, 8, 102, 308, 528 brand, 300–2, 304, 379–80 cause-related marketing, 674, 675, 683 e-marketing, 648 innovative marketing, 772 sales promotion, 460, 475 services, 595 shareholder value, 507–9 brand, 297, 298–302, 379–80, 401, 475, 485, 520 capturing, 518, 519 creating, 300, 490, 492, 518–19 customer, 165, 485, 490, 523–4, 539, 540 delivering, 88, 89, 308, 531, 537, 538, 539 demonstrating, 307 digital, 656 increasing, 460 perpetuity method, 296, 298 preferences, 499–500 price, 303–5, 344, 348, 349–50 process models, 538 sales promotion, 470 services, 587–8 sustainable, 751, 752 understanding, 88, 89 Value chain, 60, 390, 652, 739 Value for money, 404, 511, 545 Value proposition, 88, 89, 492, 653 cause-related marketing, 673, 675 on-line value proposition, 655, 661 retailing, 788–9 Value-based marketing, 288, 291–4, 312 Values: brand, 378–9, 382, 385–6, 390, 391 corporate branding, 374–5 emotional values, 372, 377, 378, 379, 386, 390 integrated marketing communications, 401, 415, 416 cause-related marketing, 672, 674, 681, 691 corporate, 380 green, 742 organizational culture, 387 relationship marketing, 673 retailing, 788 shared, 497 social, 731 Van der Linde, C., 735, 736, 749 Varadajan, P R., 735 Vardar, N., 626 Varey, R., 426 Variability of services, 590–1, 594 Variable precision rough set (VPRS) model, 227–9 Varian Medical Systems, 748 Variety seeking-behaviour, 134, 135 Variety stores, 783–4 Varta, 733 Vauxhall, 646 Vendor management inventory, 496–7 Venkatesh, Alladi, 19, 21, 22, 28–9 Venn diagrams, 208, 209, 267 Venture marketing organization (VMO), 543 Venture teams, 336 VERs see Voluntary Export Restraints Vertical marketing, 556 Vertical Net, 646, 651 Vertical restructuring, 542 Vertinsky, I., 631 Vif, 403 Viral marketing, 576, 660, 666 Virgin, 374, 378, 480, 519 Virgin Atlantic, 386, 433 Virgin Cars, 657 Virtual communities, 651 Virtual organizations, 537 Visa, 624 Vision, 109, 769 brand, 375, 379, 380, 384–6, 392 cause-related marketing, 681 Visual merchandising, 796 Vitamins.com, 476 VMO see Venture marketing organization Vodafone, 463 Voluntary behaviour, 700 Voluntary Export Restraints (VERs), 616 Voluntary groups, 779–80 Volvo, 301, 376 Voucher collection schemes, 678, 686 VPRS see Variable precision rough set model Wagner, S A., 736–7 Wal-Mart, 301, 308, 496–7, 791 Walkers, 678, 688 Walkman, 314–15, 325 Wallace, A., 147 Wallack, L., 700 Walley, P., 230 Walters, D., 785 Walters, G P., 176 Walton, R E., 158 Ward, Keith, 504–30 Warehouse clubs, 784 Warehouse location, 233 Warshaw, P R., 124 Watchdog, 404 Water fluoridation, 704 Waterman, R H., 54, 73 Waterstone’s, 375 Waugh, Simon, 690 Weaknesses: SMEs, 759 strategic objectives, 288 SWOT analysis, 90, 93, 96, 99, 100, 104, 105 Wealth distribution, 15 Webb, John, 171–96 Websites, 89–90, 363, 421 see also Internet affiliate marketing programmes, 573–4 direct marketing, 569 e-coupons, 479 834 Websites – continued e-CRM, 581 e-marketing, 638–9, 640–2, 646–8, 650, 658, 663–4 interactive marketing, 573–6 over-designed, 421–2 response to purchase data, 579 Webster, F E., 145, 146, 150–3, 156–9, 536–7, 541 Weick, K E., 54 Weigand, R., 145, 146, 148, 151 Weitz, B A., 38 Wensley, Robin, 53–86, 288, 611, 629 Wernerfeld, B., 68 Wheel of retailing, 778, 784 Which Web Trader, 652 Whinston, A., 638 White, J., 150, 152 White, R., 149–50, 151, 452 Wiebe, G D., 695 Williams, Robbie, 23 Williamson, O E., 38 Wilson, D T., 33, 42, 43, 45, 46 Index Wilson, J M., 233 Wilson, P N., 230 Win-win situations, 11, 15, 495, 749 Win-win-win situations, 669, 670, 680, 688 Wind, Y., 145, 146, 150, 152, 153, 156–8 Winer, R S., 349 Wittick, D., 67 Women, 251–2 Woolworths, 779, 801 Word-of-mouth, 121 Work simplification, 150, 152 Workman, J P Jr, 329 World Trade Organization (WTO), 616, 629, 731 World Wide Web see Internet Wright, Jerry, 671 WTO see World Trade Organization Wunderman, Lester, 565 Xerox, 489, 732 Xoom, 651 Yahoo!, 289, 646, 652–3 Yao, Y Y., 226–7 Yeshin, Tony, 395–418 Yoon, E., 352 Youth markets, 250, 251 Yuan, Y., 216 Zaichkowsky, J L., 130, 132 Zaltman, G., 195, 694, 695–6, 697, 699–700, 701, 716 Zara, 541 Zeithaml, V A., 350 Zero-order model, 224 Zhou Dongsheng, 631 Ziarko, W., 227, 229 Ziliak, S T., 70 Zirger, B J., 316 Zolkiewski, J M., 164 Zwass, V., 638 Marketing titles from Butterworth-Heinemann Student List Creating Powerful Brands (second edition), Leslie de Chernatony and Malcolm McDonald Direct Marketing in Practice, Brian Thomas and Matthew Housden eMarketing eXcellence, PR Smith and Dave Chaffey Fashion Marketing, Margaret Bruce and Tony Hines Innovation in Marketing, Peter Doyle and Susan Bridgewater Integrated Marketing Communications, Tony Yeshin Internal Marketing, Pervaiz Ahmed and Mohammed Rafiq International Marketing (third edition), Stanley J Paliwoda and Michael J Thomas Key Customers, Malcolm McDonald, Beth Rogers and Diana Woodburn Marketing Briefs, Sally Dibb and Lyndon Simkin Marketing in Travel and Tourism (third edition), Victor T C Middleton with Jackie R Clarke Marketing Plans (fifth edition), Malcolm McDonald Marketing: the One Semester Introduction, Geoff Lancaster and Paul Reynolds Market-Led Strategic Change (third edition), Nigel Piercy Relationship Marketing (second edition), Martin Christopher, Adrian Payne and David Ballantyne Relationship Marketing for Competitive Advantage, Adrian Payne, Martin Christopher, Moira Clark and Helen Peck Relationship Marketing: Strategy & Implementation, Helen Peck, Adrian Payne, Martin Christopher and Moira Clark Strategic Marketing Management (second edition), Richard M S Wilson and Colin Gilligan Strategic Marketing: Planning and Control (second edition), Graeme Drummond and John Ensor Successful Marketing Communications, Cathy Ace Tales from the Market Place, Nigel Piercy The CIM Handbook of Export Marketing, Chris Noonan The Fundamentals of Advertising (second edition), John Wilmshurst and Adrian Mackay The Fundamentals and Practice of Marketing (fourth edition), John Wilmshurst and Adrian Mackay The Marketing Book (fifth edition), Michael J Baker (ed.) The New Marketing, Malcolm McDonald and Hugh Wilson Total Relationship Marketing (second edition), Evert Gummesson Forthcoming Marketing Logistics (second edition), Martin Christopher and Helen Peck Marketing Research for Managers (third edition), Sunny Crouch and Matthew Housden Marketing Strategy (third edition), Paul Fifield Political Marketing, Phil Harris and Dominic Wring Professional List Cause Related Marketing, Sue Adkins Creating Value, Shiv S Mathur and Alfred Kenyon Cybermarketing (second edition), Pauline Bickerton and Matthew Bickerton Cyberstrategy, Pauline Bickerton, Matthew Bickerton and Kate Simpson-Holley Direct Marketing in Practice, Brian Thomas and Matthew Housden e-Business, J A Matthewson Effective Promotional Practice for eBusiness, Cathy Ace Essential Law for Marketers, Ardi Kolah Excellence in Advertising (second edition), Leslie Butterfield Fashion Marketing, Margaret Bruce and Tony Hines Financial Services and the Multimedia Revolution, Paul Lucas, Rachel Kinniburgh and Donna Terp From Brand Vision to Brand Evaluation, Leslie de Chernatony Go to Market Strategy, Lawrence Friedman Internal Marketing, Pervaiz Ahmed and Mohammed Rafiq Marketing Made Simple, Geoff Lancaster and Paul Reynolds Marketing Professional Services, Michael Roe Marketing Strategy (second edition), Paul Fifield Market-Led Strategic Change (third edition), Nigel Piercy The Channel Advantage, Lawrence Friedman, Tim Furey The CIM Handbook of Export Marketing, Chris Noonan The Committed Enterprise, Hugh Davidson The Fundamentals of Corporate Communications, Richard Dolphin The Marketing Plan in Colour, Malcolm McDonald and Peter Morris The New Marketing, Malcolm McDonald and Hugh Wilson Forthcoming Marketing Logistics (second edition), Martin Christopher and Helen Peck Marketing Research for Managers (third edition), Sunny Crouch and Matthew Housden Marketing Strategy (third edition), Paul Fifield Political Marketing, Phil Harris and Dominic Wring For more information on all these titles, as well as the ability to buy online, please visit www.bh.com/marketing ... flow 25 0.0 37.5 125 .0 6.3 31.3 21 .9 6.6 15.3 1.00 15.3 Year 26 2.5 39.4 131.3 6.6 32. 8 23 .0 6.9 16.1 0.87 14.0 27 5.6 41.3 137.8 6.9 34.5 24 .1 7 .2 16.9 0.76 12. 8 28 9.4 43.4 144.7 7 .2 36 .2 25.3... 105.0 10.5 3 .2 7.4 2. 5 4.9 0.909 4.4 110.3 11.0 3.3 7.7 2. 6 5.1 0. 826 4 .2 115.8 11.6 3.5 8.1 2. 8 5.3 0.751 4.0 121 .6 12. 2 3.6 8.5 2. 9 5.6 0.683 3.8 127 .6 12. 8 3.8 8.9 3.0 5.9 0. 621 3.7 Cumulative... Managing the marketing mix PETER DOYLE Introduction Managing the marketing mix is the central task of marketing professionals The marketing mix is the set of marketing tools – often summarized as the