Ebook Marketing management - A relationship approach (2nd edition): Part 2

(BQ) Part 2 book Marketing management - A relationship approach has contents: Segmentation, targeting, positioning and competitive strategies; CSR strategy and the sustainable global value chain; establishing, developing and managing buyer–seller relationships; product and service decisions; pricing decisions,...and other contents.

M08_HOLL6830_02_SE_C08.QXD 16/1/10 2:14 pm Page 282 Find more at www.downloadslide.com CHAPTER Segmentation, targeting, positioning and competitive strategies LEARNING OBJECTIVES After studying this chapter you should be able to: understand the importance and meaning of market segmentation explain the principle of STP identify and discuss the various bases for segmenting B2C markets and B2B markets outline how firms select target segments explain the differences between various strategic approaches to target marketing, undifferentiated, differentiated and concentrated marketing comprehend what is involved in positioning a product or service against competitors explain the difference between positioning in the B2C market and B2B markets 8.1 INTRODUCTION Market segmentation has long been considered one of the most fundamental concepts in marketing Ever since Smith (1956) published his article in the Journal of Marketing, market segmentation has become a dominant concept both in marketing theory and in real-world applications It not only provides one of the major ways of implementing the marketing concept but also directs a firm’s marketing strategy and resource allocation among different markets and products Market segmentation is the process of dividing a market into distinct groups of buyers with similar requirements It has become increasingly important in the development of marketing strategies for at least three reasons M08_HOLL6830_02_SE_C08.QXD 16/1/10 2:14 pm Page 283 Find more at www.downloadslide.com CHAPTER SEGMENTATION, TARGETING, POSITIONING AND COMPETITIVE STRATEGIES 283 Brand extension Population growth has slowed, and more product markets are maturing This, in turn, Using a successful brand name to launch a new or modified product in a new category STP-approach sparks more intense competition as firms seek growth via gains in market share as well as in an increase of brand extensions There is an important trend toward micro-segmentation (one-to-one marketing) This trend has been accelerated in some industries by new technology such as computer-aided design, which has enabled firms to mass customise many products such as designer jeans and cars For example, many car companies are using a flexible production system that can produce different models on the same production line This enables the company to make cars to order More specialised media have also sprung up to appeal to narrow interest groups, e.g special interest magazines, radio programmes, cable TV, Internet (Schmid et al., 2008) Expanding disposable incomes, higher educational levels, and more awareness of the world have produced customers with more varied and sophisticated needs, tastes and lifestyles than ever before This has led to an increase in goods and services that compete with one another for the opportunity of satisfying some groups of consumers Principle of segmentation, targeting and positioning in order to select a distinct group of consumers who require a special marketing mix Generally, marketers cannot use averages Instead, they use the STP-approach to define unique customer groups, select those they wish to serve, and then integrate the marketing mix to establish a unified image of the product relative to the competition (Jonk et al., 2008) Micro-segmentation Segmentation according to choice criteria, decision-making unit structure, decisionmaking process, buying class, purchasing structure and organisational innovativeness Pitfalls with segmentation Despite all the advantages with market segmentation there are also problems involved (Gibson, 2001) Segmentation is descriptive not predictive Segmentation and the research to implement it are designed to describe markets as they exist today In contrast decisions are based on the expectation of a certain favourable future outcome, and the only information useful to the decision maker is information about the likelihood of that expected outcome In short, a description of the market as it currently exists, before a decision is made, is irrelevant to making a decision about future events Segmentation assumes homogeneity Segmentation asserts that customers are so different they cannot be averaged and therefore must be classified into segments However, within defined segments, it assumes customers are not different and can be averaged In fact, the fundamental assumption of customer heterogeneity is true, radically true Customers are different not only at the market level, but at the segment level This heterogeneity is apparent to anyone looking at the individual respondents in any study The fact that we seldom look prevents us from seeing and accepting this reality Segmentation assumes competition-free segments Competitors are considered when choosing the target segment, and segments with strong competitors are disqualified However, once the target segment is selected, competitors are ignored The consequences of ignoring competitors can be dangerous For example, Coca-Cola found that cola drinkers preferred sweeter cola Repeated paired product comparison tests showed the new sweeter Coca-Cola was preferred over regular Coke Yet, the new sweeter Coca-Cola failed because the market already had a sweeter cola – Pepsi Cola Segmentation may define the wrong segment The target segments finally selected in traditional segmentation research may exclude significant numbers of real prospects and include significant numbers of non-prospects M08_HOLL6830_02_SE_C08.QXD 16/1/10 2:14 pm Page 284 Find more at www.downloadslide.com 284 PART III DEVELOPING MARKETING STRATEGIES Section 8.1 Introduction Section 8.3 Segmentation in the B2B market Section 8.2 Segmentation in the B2C market Section 8.4 Target marketing Section 8.6 Generic competitive strategies Section 8.5 Positioning Section 8.7 Offensive and defensive competitive strategies Section 8.8 Summary Figure 8.1 Chapter outline It is a feature of segmentation that when any one segment is selected as a target, prospects in the other segments are excluded (Raynor and Weinberg, 2004) Because of the segmentation, targeting and positioning are critical You simply cannot be a leading-edge marketer without these three steps The activities required to accomplish each stage are described in the following sections The structure of Chapter is shown in Figure 8.1 A market segment is a homogeneous group of customers with similar needs, wants, values and buying behaviour Each segment is an arena for competition Market segmentation is the process by which a market is divided into distinct customer subsets of people with similar needs and characteristics that lead them to respond in similar ways to a particular product offering and strategic marketing programme Each segment will vary in size and opportunity Since it may be difficult to appeal successfully to each segment, companies select certain ones for emphasis and will try to satisfy them more than competitors – this is called target marketing Positioning means creating an image, reputation or perception in the minds of consumers about the organisation or its products relative to the competition The company appeals to customers in the target segments by adjusting products, prices, promotional campaigns, service and distribution channels in a way consistent with its positioning strategy These three decision processes – market segmentation, market targeting and positioning – are closely linked and have strong interdependence (see Figure 8.2) All must be well considered and implemented if the firm is to be successful in managing a given product–market relationship M08_HOLL6830_02_SE_C08.QXD 16/1/10 2:14 pm Page 285 Find more at www.downloadslide.com CHAPTER SEGMENTATION, TARGETING, POSITIONING AND COMPETITIVE STRATEGIES 285 Market Segmentation via macro/micro variable Step 1: Market segmentation (Sections 8.2 and 8.3) 10 Profile/attractiveness of each segment 10 Step 2: Target marketing (Section 8.4) Choose a target marketing strategy: • undifferentiated • differentiated • concentrated In this case: • choice of concentrated marketing • selection of best target: Segment Segment Positioning chart for segment 7: • Position of existing products Quality A A = Possible position of the new product A: high perceived price + Price high perceived quality Step 3: Product positioning (Section 8.5) Basic assumption: there are customer preferences (potential market at A ) Section 8.6 and 8.7: competitive strategies Marketing mix/communication strategy (Part IV of the book) Figure 8.2 The three-step STP It is important to keep the distinction between product differences and market segments in mind Market segments should not be defined by product names or characteristics Markets are made up of customers (people and organisations) Factors favouring market segmentation A firm has the option of adopting a market aggregation strategy or a segmentation strategy Most companies adopt the latter A market aggregation strategy is appropriate where the total market has few differences in customer needs or desires, especially when the product can be standardised It is also appropriate where it is operationally difficult to develop distinct products or marketing programmes to reach different customer segments; that is, not all segmentation schemes can be used M08_HOLL6830_02_SE_C08.QXD 16/1/10 2:15 pm Page 286 Find more at www.downloadslide.com 286 PART III DEVELOPING MARKETING STRATEGIES The benefits of segmentation more than offset the difficulties involved in identifying individual market segments These factors favouring segmentation fall into three main categories Better strategic allocation of marketing resources The strategic benefits of segmentation are sometimes overlooked Targeted plans and programmes, based on identified needs and habits of specific markets, result in better allocation of company resources and higher profits Most successful business strategies are based on market segmentation and a concentration of resources in the more attractive segments Segmentation should focus on subdividing markets into areas in which investments can gain a long-term competitive advantage Creation of more effective marketing programmes Segmentation helps in the design of marketing programmes that are most effective for reaching homogeneous groups of customers The seller can create separate marketing programmes aimed at more completely satisfying the needs of different buyers This creates a competitive advantage (Ashton et al., 2003) Better opportunities for new product or market development The seller is in a better position to spot and compare new product or market opportunities as well as potential threats Often, a careful analysis of various segments reveals one or more groups whose specific needs and concerns are not being satisfied by existing competitive offerings Such open segments may represent attractive opportunities for development of new products or innovative marketing approaches; for example, the laptop computer When a firm seeks to expand its volume, effective market segmentation analysis will uncover the degree of customer satisfaction by comparing each segment’s needs against the offering of other suppliers Low current satisfaction indicates a marketing opportunity, assuming the firm can better than its competitors and produce an acceptable profit When a firm merely wants to maintain market share, constant surveillance of individual market segments will usually spot competitive or environmental threats Factors discouraging market segmentation Special organisational and environmental problems may discourage market segmentation Not every perceived opportunity becomes a profitable venture Some of the specific instances in which segmentation in business markets is not useful are as follows: Heavy users or buyers make up such a large proportion of the sales volume that they appear to be the only relevant target Public utilities consume such large quantities of coal for generating electricity that they dwarf other users of coal The market is so small that marketing to a portion of it is not profitable Therefore, a brand or product would have to appeal to all segments and level of users Requirements for effective market segmentation An effective and useful segmentation scheme should define market segments according to five criteria Adequate size Marketers evaluate the degree to which the segments are large or profitable enough to be worth considering for separate marketing cultivation It involves a trade-off between customer homogeneity and scale effects M08_HOLL6830_02_SE_C08.QXD 16/1/10 2:15 pm Page 287 Find more at www.downloadslide.com CHAPTER SEGMENTATION, TARGETING, POSITIONING AND COMPETITIVE STRATEGIES 287 Measurability Marketers evaluate the degree to which information on particular buyer characteristics exists or can be obtained There is often a need for a combination of specific (e.g age) and abstract segmentation variables Accessibility Marketers evaluate the degree to which the firm can effectively focus its marketing efforts on chosen segments Segmentation variables must identify members in ways that facilitate their contact Responsiveness Marketers assess the degree to which segments respond differently to different marketing mix elements, such as pricing or product features Segmentation variables must maximise behavioural differences between segments Compatibility Marketers evaluate the degree to which the firm’s marketing and business strengths match the present and expected competitive and technological state of the market Thus, the art of market segmentation involves identifying groups of consumers that are sufficiently large, and sufficiently unique, to justify a separate marketing strategy The competitive environment of the market segment is also a factor that must be analysed Business firms segment their markets primarily to allocate their resources more effectively and to maximise return on investment Unfortunately, a segmentation strategy involves added costs in obtaining and analysing data, and in developing and implementing separate marketing and manufacturing plans to serve each segment effectively The strategy must therefore result in additional sales volume and profits to justify its costs Before implementing a segmentation strategy, the marketer should develop an estimate of the costs versus the benefits Two common segmenting methods Top-down method A forecasting/planning approach based on objectives and works down to product/market estimates Bottom-up method A sales forecasting method that starts with small-scale estimates (e.g product estimates) and works up to largerscale ones Segmentation can be quite complicated because most markets are complex There are many different types of customers, and, as we have seen, literally thousands of variables can be used to segment them Marketers typically use one of two approaches in selecting variables and grouping customers The top-down method starts with all consumers and seeks meaningful variables for subdividing the entire market The bottom-up method starts with a single potential customer and adds others with similar characteristics Anyone without those characteristics is placed in a new segment, and the process continues In other words, rather than the whole market, the focus is on one segment at a time The following is based on the top-down method Identifying segmentation variables The total market is heterogeneous, meaning it has many types of buyer Market segmentation divides the total market into homogeneous subgroups, or clusters with similar characteristics We then can inspect each subgroup in greater detail Without a well-focused picture of the market, it is virtually impossible to create a powerful marketing strategy How is segmentation done? First, the marketer must select a way of categorising potential customers into subgroups A segmentation variable is any descriptive characteristic that helps separate all potential purchasers into groups Examples include gender, age and income Variables are then subdivided into categories For example, within the gender variable, the two categories are male and female Categories may be very broadly or very narrowly defined M08_HOLL6830_02_SE_C08.QXD 16/1/10 2:15 pm Page 288 Find more at www.downloadslide.com 288 PART III DEVELOPING MARKETING STRATEGIES There are many ways of dividing a market into segments These ways of dividing a market (segmentation variables) can vary from the B2C market to the B2B market The next two sections deal with segmentation in: the B2C market the B2B market Once the segmentation scheme is developed, you need to describe, or profile, each group in more detail The market segment profile compiles information about a market segment and the amount of opportunity it represents The profile may include: the number of current and potential buyers; the potential number of products these buyers may purchase; the amount of revenue the segment may provide; and the expected growth rate In addition to size and growth, other criteria used to select targets include competitive factors, cost and efficiency factors, the segment’s leadership qualities, and the segment’s compatibility with the company’s vision, objectives, and resources 8.2 SEGMENTATION IN THE B2C MARKET Secondary data Data which already exist but were collected in the first instance for another purpose Psychographics The characteristics of individuals that describe them in terms of their psychological and behavioural make-up Primary data Data collected for the first time for the specific purpose of a particular market research study Figure 8.3 lists the categories and variables commonly used for segmentation in the B2C market The left side of Figure 8.3 shows the trade-off problem of using segmentation variables from the different categories of segmentation variables The use of the sociodemographic variables results in a high degree of measurability (easy and cheap to use, often based on secondary data or desk research), but they would perhaps only have low relevance for marketing planning As we move down the list in Figure 8.3 to psychographic and ‘benefit sought’ variables, the implications for the formulation of marketing strategies and plans become more relevant and meaningful But all the various variables are important and would be likely to be used to some extent in the segmentation of a given market Thus, marketers might try to define segments using a combination of benefit, behavioural and physical factors, even though this requires the combination of primary data (field research) – see also the Appendix The sociodemographic variables Variables like gender, age, family life cycle, household type and income are used in demographic segmentation This type of information is readily available Demographics are very useful in categorising different tastes and preferences An added benefit is that it is relatively easy to measure and project the composition and size of demographic segments for the next 5, 10 or 15 years (high degree of measurability in Figure 8.3) Consequently, this kind of segmentation is an excellent tool for long-range strategic planning as well as short-term marketing Different locations vary in their sales potential, growth rates, customer needs, cultures, climates, service needs and competitive structures, as well as purchase rates for a variety of goods Consequently, one of the most common ways to segment a market is by geography City Segmentation by city is often used by global companies Coca-Cola knows that soft drink consumption relates to population size With the exception of New York City and Los Angeles, all metropolitan areas of more than 10 million are located outside the USA So it is no mystery why Coca-Cola markets globally A city’s population size alone does not always provide enough segmentation information, so marketers think about other factors Some metropolitan areas are known for their industry expertise: in Hollywood it is films; in Silicon Valley, computer software M08_HOLL6830_02_SE_C08.QXD 16/1/10 2:15 pm Page 289 Find more at www.downloadslide.com CHAPTER SEGMENTATION, TARGETING, POSITIONING AND COMPETITIVE STRATEGIES Segmentation variables Examples High Degree of measurability Sociodemograhic variables Behaviouristic Psychographic Benefits sought Age Under 2, 2–5, 6–11, 12–17, 18–24, 25–34, 35–49, 50–64, 65 and over Gender Male, female Geography Regions, countries, cities, metropolitan areas, counties and blocks Lifecycle family Young, single; newly married, no children; couples with youngest child under 6; youngest child or over; older couples with dependent children; older couples without dependent children; older retired couples; single Income Under £15,000, £15,000–24,999, £25,000–74,999 etc Occupation Professional, manager, clerical, sales, supervisor, blue collar, homemaker, student, unemployed Education Some high school, graduated high school, some college, graduated college Events Birthdays, graduations, anniversaries, national holidays, sporting events Race and ethnic origin Anglo-Saxon, African American, Italian, Jewish, Scandinavian, Hispanic, Asian Religion Protestant, Catholic, Jewish, Muslim Social class Lower-lower, upper-lower, lower-middle, middle, upper-middle, lower-upper, upper-upper Readiness Unaware, aware, interested, knowledgeable, desirous, intend to buy, trial Media and shopping habits Magazine subscriber, cable user, mall, convenience stores, Internet-shopper Ability and experience None, novice, expert, professional, non-user, first-time user, regular user, former user Loyalty Switcher, moderate, high loyalty Usage frequency Heavy (daily), weekly (medium), light (monthly) Innovativeness Innovators, early adopters, early majority, late majority, laggards Lifestyl e Actualiser, fulfiller, achiever, experiencer, believer, striver, maker, struggler Personality Compliant, aggressive, detached, sensory, intuitive, thinking, feeling Delivery Convenience, speed, flexibility Product features Safety, reliability, taste, packaging Price/service Low, medium, high Low Figure 8.3 Segmentation criteria for the B2C market 289 M08_HOLL6830_02_SE_C08.QXD 16/1/10 2:15 pm Page 290 Find more at www.downloadslide.com 290 PART III DEVELOPING MARKETING STRATEGIES Events These include a varied set of activities ranging from national holidays, sports and back-toschool week, to personal events such as birthdays, anniversaries and weddings Each requires a specific marketing programme Race and ethnic origin More and more companies are targeting three segments via specialised marketing programmes Motorola has run separate advertising campaigns for its papers and mobile phones to African Americans, Asian Americans, and Hispanics Spiegel and Ebony magazine have combined to produce a direct-mail catalogue designed to provide clothing that meets the style, colour and fit of African Americans Efforts, so far, have been successful However, it is important to remember that ethnic segments are not homogeneous There are demographic differences within ethnic groups For many people, race has nothing to with their buying behaviour Consequently, other forms of segmentation may work much better Social class Every social class has its status groupings based largely on similarities in income, education and occupation Because researchers have long documented the values of the various classes, it is possible to infer certain behaviour concerning a given product For example, the middle classes tend to place more value on education, family activities, cleanliness and being up to date than lower-class families In the international field, one has to be careful in using social class as a segmentation variable since the differences among classes can become blurred, as they in the Scandinavian countries In the USA, many of the criteria used to define class status seem to some to be no longer applicable as the nation becomes increasingly fragmented into dozens of distinct subcultures, each with its own unique tastes and ambitions Behaviouristic variables These variables reflect the behaviour of customers towards a specific product Behaviouristic segmentation categorises consumers based on people’s awareness, product and media uses, and actions Past behaviour is one of the best predictors of future behaviour, so these variables require an understanding of what consumers have previously done The variables include purchase volume, purchase readiness, ability and experience, loyalty, media habits and shopping behaviours Segmentation by readiness For many products, potential users go through a series of stages that describe their readiness to purchase These stretch all the way from being unaware of a product, through trial, leading up to loyalty Readiness is a useful segmentation variable, particularly for new products This scheme is often used in adjusting the communications mix Segmentation by media and shopping habits A broad range of media and shopping habits can be used to categorise shoppers For example, some people subscribe to cable, others not; some prefer shopping at department stores or on the Internet and so forth These variables focus on accessibility of target customers Those who shop only in malls are accessed differently from those who prefer Internet shopping or catalogue shopping at home Segmentation by ability and experience The performance of products is determined by the ability and experience of its user Consequently, ability is an excellent segmentation variable for almost any skill-based product For M08_HOLL6830_02_SE_C08.QXD 16/1/10 2:15 pm Page 291 Find more at www.downloadslide.com CHAPTER SEGMENTATION, TARGETING, POSITIONING AND COMPETITIVE STRATEGIES 291 example, the marketing of software games for PCs, skis, tennis rackets and golf equipment is targeted to ability segments This is due in large part to the performance requirements of these products As performance requirements increase, new technologies produce products with higher performance capabilities but which generally require more skill Segmentation by loyalty As we have discussed, a key goal of firms is to create brand loyalty Some consumers are naturally loyal to particular product categories There are many ways to look at loyalty, but the most popular seems to be the most straightforward It looks at switchers, moderately loyal and highly loyal categories Switchers may select a different brand with nearly every purchase They may actually seek variety or they simply not care which brand they buy Moderately loyal customers have a preference for a brand but will switch if it is convenient to so Loyal buyers have strong preferences Not all buyers are loyal to a single brand within a product class Some people have two or three that are equally acceptable Usage frequency This is important because in many markets a small proportion of potential customers makes a high percentage of all purchases (the ‘80–20’ rule, 20 per cent of buyers purchase 80 per cent of the volume of any product) It is amazing how true this is for many products Heavy users can be extremely important to companies Consequently, most marketers divide the market into heavy, moderate and light users, and then they look for characteristics that may explain why some people consume vastly greater amounts Therefore, the marketing costs are lower per unit of sales Still, marketing strategists need to realise that competition for heavy users can be extreme If medium or light users are being ignored, they may provide a marketing opportunity For example, giants like Coca-Cola and Pepsi are always targeting students They spend a great deal of money to be represented on campus in order to ‘capture’ students Innovativeness Adoption process The mental and behavioural stages through which a consumer passes before making a purchase or placing an order The stages are awareness, interest, evaluation, trial and adoption Benefit segments Dividing the market into groups according to the different benefits that consumers seek from the product This is concerned with how individuals and organisations vary in their capacity and desire to innovate This is particularly true for the adoption process of new products There are substantial differences between early and late adopters Thus, each of the various adopter groups can be considered as a segment All too frequently, current customers are not considered an important segment despite their value over time and their being easy to identify Psychographic variables Segmentation by lifestyle, or personality, groups consumers on the basis of their activities, interests and opinions From such information it is possible to infer what types of product and service appeal to a particular group, as well as how best to communicate with individuals in the group Lifestyle has been used to describe, for example, the benefit segments for sportswear Psychographic and lifestyle segmentation links geographic and demographic descriptors with a consumer’s behavioural and psychological decisions Psychographic variables used alone are often not very useful to marketers; however, they can be quite useful when joined with demographic, geographic and other data Lifestyle is a person’s distinctive mode of living It describes how time and money are spent and what aspects of life are important The choice of products, patterns of usage, and the amount of enjoyment a person gains from being a consumer are all part of a lifestyle Consider the difference between people who are physically fit from exercise and proper nutrition and those who are out of shape from highfat diets and sedentary living Since there are so many lifestyles, the trick is to identify them in the context of your company’s marketing strategy Z03_HOLL6830_02_SE_IND.QXD 1/18/10 4:26 PM Page 646 Find more at www.downloadslide.com 646 INDEX market (continued) segmentation 109, 284, 627 share, relative 252–3, 623 space 627 structures of B2B and B2C different 144 targeting 284 value-based pricing 441–2 see also marketing marketing 38, 39 audit 6, 368, 534, 627 cause related 623 database 140, 624 direct 498, 506–8, 520 external see external marketing green 625 information system (MIS) 5, 618–19, 627 internal see internal marketing international see international marketing management xix, 2–7, 627 mass 8, 627 mix, Ps of 6, 77, 170, 345–6, 355, 622 myopia 627 niche 627 objectives 245, 537–8, 627 plan/planning 1, 2, 4, 5–6, 533–64, 627 budgets 438 building see building marketing plan controlling see under budgeting and controlling hierarchical approach to 6–7 implementation and control 538, 544–6 marketing audit 6, 368, 534, 627 objectives and goals 537–8 resources see marketing under organisation strategies and programmes 538 video case study of Pret A Manger xxiii, 531–2 see also strategic marketing planning; Triumph underwear programme, controlling 6, 578–85, 627 annual plan control 581–2 design of control system 578–80 feedforward control 580, 581, 625 global profit control 583–4 Jordan toothbrushes case study 586–90 overall economic value with successful CRM 584–5 see also developing marketing programmes; key areas of marketing control; market relationship (RM) 203, 205, 629 reverse 210–11, 630 social xxiv, 328–9, 329, 344–9 strategies 4, 232–358 Nivea face cream video case study xxiii, 234–6 See also CSR strategy; segmentation; SWOT analysis tele 631 test 631 trade 630 undifferentiated 631 vertical system 631 see also market; sales; transactional marketing; viral marketing Markowitz, H 251 Marks & Spencer 56, 312, 413, 553, 556, 557, 558, 562 mark-ups 440, 627 Marlboro 213 Marquis Jet Programme 385, 386, 387, 388 marriage metaphors 191–3, 195–6, 198, 627 Mars Inc 548–9 Mars-Wrigley and Mars bar 424–8 passim, 485, 486 Marsh, G 435 Maruti Suzuki India 26 Mascarenhas, O A 193, 373 Maslow, A 117–18, 335–7 mass customisation 11, 205, 496–8, 520, 627 mass marketing 8, 301, 627 Massad, V J 453 Mateschitz, D 269–70, 278 Matsushita 93 Mattel 213 Matthyssens, P 445 Mauborgne, R 82–3, 84, 85 Mauritania 106 Mauritius 106 Maxwell, S 338 Maxwell Industries: Daisy Dee 559 Mead, J 338 measurement 138–9, 287, 611–12 media advertising and promotion 501–3 Meenaghan, T 504 mega market relationships 186 Mela, C F 571 Melitta coffee 51, 53, 56 membership -based customer retention 574 distribution and channels of 462–3, 623 private jet 386 memory and customer behaviour 117, 118 Méndez, J L 202 Menon, A and A 341 Mercedes/Mercedes-Benz 213–14, 311 Mercer, G A 497 Meridol toothbrushes 590 message, advertising 501 Metcalfe, J 531 Metro-Group 558 Mexico 278, 555, 561 Miceli, G N 140 Michaelidou, N 613 Micheaux, A 593 micro-environment 103, 186, 627 micro-segmentation 283, 627 Microsoft 93, 94, 171, 385 world sales 96 X box 92, 95, 97–8 Middle East 456 boilers 147 cars 24, 26, 219–27 cereals 179 soft drinks 278 Triumph underwear 550 Mikkelsen, O S 208 Millier, P 298 Milligan, R 455 Milliman, J F 504 Millman, T 378 Minogue, K 561 Mintel 557 Mintzberg, H MIS (marketing information system) 5, 618–19, 627 Miskie, R 398 mission statement 3, Mitchell, V.-W 298, 299 Mitki, Y 164 Mitri, M 473 Mitsubishi Belting Co 300 Mittal, V 198, 292 Miu (drink) 279 m-marketing (mobile marketing) 478–9 mobile defence 313 Mobile Energy Team 274 mobile phones 104, 478–9, 524 modified rebuy 125, 627 modularity 400–2, 418 Molineux, P 42 moments of truth 362, 627 Mon Amour 559 Monaco 277, 523, 524 Monarch Beverage Company 276 Monitor Group 292–4 monopoly 440, 627 Z03_HOLL6830_02_SE_IND.QXD 1/18/10 4:26 PM Page 647 Find more at www.downloadslide.com INDEX Monster (drink) 277 Montgomery, C A 29 Moore, P 94 Morehouse, J 306 Morgado, A 191 Morgan, D 416 Morocco 105, 317, 550, 551 Mortimer, R 505 Moss, G D 411 motorcycles xxv, 31, 248 Harley-Davidson xxv 308, 353, 454–8 Italy 416–17, 456, 457, 458 Japan 4–5, 26, 64, 68, 454–5, 456, 457 Motorola 290 Mouzas, S 140, 360 MOV see orientation view under market Mozambique 106 Mr Coffee 51, 52 MTS Group boilers 147 Mudambi, S 108 Mueller, B 503 Mui, C 575 Mullins, J W 130, 509 multiclient studies 615 multidimensional segmentation 294–5 multi-level selling 510 multiple branding 412, 415 multiple channel strategy 471, 472, 627 multiple convergent process model 400, 401 multiple distribution channel 471–2 Munsingwear 561 Murphy’s Law 545 Muskopf, T 371 mystery shopping 481–2 NAFTA 186 Nagle, T T 35, 441 Nair, A 71 Namibia 106 Nanfu batteries 309 nano-relationships 186, 627 Narayandas, D 452 Naspal, A 292 NASSCOM (National Association of Software and Service Companies), India 70 national account 627 national competitiveness, analysis of (Porter’s Diamond/fiveforces model) 65, 67–71, 92, 99, 628–9 chance 70–1 demand conditions 68 factor conditions 67–8 firm strategy, structure and rivalry 69 government 70 related and supporting industries 68–9 Nayle, T T 443 Neal, W 409 needs 361, 367 Maslow’s classification of 117–18 recognition 126–7 Nellore, R 134, 267 Nelsons (firm) 18 Nespresso 51, 54 ‘nested approach’ in B2B market 296–8 Nestlé, 548 breakfast cereals 176–7, 178 chocolate 55, 56, 425, 485, 486, 487 net marketing contribution to budgeting 569 net present value 570, 627, 628 net profit before tax 569–70 net value see under value Netherlands boilers 147 chewing gum 424–5 and China 309 coffee makers 53, 54 KLM 316, 317 soft/energy drinks 212, 270, 277 toothbrushes 587 Netjets Inc 381, 385, 386, 387 Netto 169–70 networks 16 social 49, 122–3, 186 value 42 Neves, M F 187 New, C 398 new customers 372, 509 New Delhi car sales 24 new entrants and competition analysis 73–4 new product development 400–2 acceptance 509 for international market 405–7 multiple convergent process model 400, 401 pricing decisions 443–5 product platform/modularity 400–2 see also international market New Yorker (German store) 553 New Zealand 270, 277, 550 new-task buying 125, 627 newspaper advertisements 502 Next 555, 556 niche marketing 170, 303, 627 Nielsen, A.C (firm) 160, 615 Niger 106 Nigeria 106, 587 Nike 39, 410, 411, 416, 420 647 Nintendo 96–7, 96, 97, 171 see also ‘Blue Ocean’; Wii Nipkow, J 52 Nippondenso 300 Nissan 26, 221, 300 Nivea face cream video case study xxiii, 234–6 Nomura Research Institute 93 non-probability sampling 607, 608 non-response problem 610–11 non-tariff trade barriers 440, 628 Normann, R 40 North America 147, 277, 456 see also Canada; United States North Korea 104 Norway: toothbrushes see Jordan not-for-profit organisations 108, 628 NPD see new product development NPV (net present value) 570, 627, 628 Nutra Sweet 215 nylon 247 objectives 4, advertising 499, 622 of competitors, understanding 168–71 corporate growth 245 marketing 245, 537–8, 627 profit 245 quantifiable 244 retailing 480, 481 societal 630 and task approach 500–1, 628 see also goals; SWOT analysis O’Brien, J M 94, 95 observation in primary research 605 Ocean boilers 151 O’Connor, P J 514 OCVP (online customer value proposition) 49–50 OEM (original equipment manufacturer) 108, 628 offensive investment 464 offensive strategies 310–12, 314, 464 off-peak pricing 450 Oh, S 192 Ohlsson, B 320 Ojasalo, J 373 O’Kane, B 25 Old El Paso 176 Old Navy 555 O’Leary, M 316, 317, 318, 321 oligopoly 440, 628 Oliver, G 162 Olsen, R F 5, 264 O’Mahoney, P 306 omnibus studies 615, 628 Z03_HOLL6830_02_SE_IND.QXD 1/18/10 4:26 PM Page 648 Find more at www.downloadslide.com 648 INDEX one-to-one marketing and mass customisation 496–8 relationship 203, 205 target 301, 303 Onex jets 383 Onkvisit, S 411–12, 506 online customer value proposition 49–50 primary research methods 612–14 social networks 122 see also Internet open tendering 125 open-ended questions 628 operating/operational control 582 costs reduced 576 level capabilities, developing 375–6 statement see profit-and-loss statement variables in B2B market 296, 297 opinion leadership 123, 492–3, 628 opportunity business, ‘green’ market as 340–3 to see (OTS) 501, 628 see SWOT analysis Oral-B toothbrushes 590 Orascom Telecom case study xxiii, 104–5 order point 628 organic food (Duchy Originals) xxiv, 17–20 organisation/organisational/organising buying behaviour 628 culture 543–4, 628 customisation 418 decision making, B2B, influences on 123–32 forms of relationship marketing 15–17 implementing and controlling marketing effort 528–91 case studies see Jordan; Pret A Manger; Triumph see also budgeting and controlling; marketing plan influence on buying process 133–5 marketing resources 539–44 bureaucratic or adaptive 540 centralised or decentralised 540 forms, organisational 540–2 structure 539 transition from product focus to customer focus 542–3 vertical or horizontal organisation 539–40 markets, buyers in 124–5 not-for-profit 108, 628 structure development 375 original equipment manufacturer (OEM) 108, 628 Oronamin (drink) 279 Orsay 553 Ortiz, M J 320 Osborn, D 365 Oticon 69 OTS (opportunity to see) 501, 628 Otsuka (Japan) 276, 279 Ottesen, O 21, 493 Otto 558 outdoor advertisements 503 outsourcing 86–91, 628 advantages and disadvantages 91 definition and example 86 framework 87–9 reasons for 87 salesforce 511–12 Sony 64, 89–90 stages 87–9 own label products 628 Oysho 553 packaging 124, 628 Pakistan 104 Palumbo, F 398 Pan American World Airways 380 paradigm 9, 628 parallel importing 443, 628 Pardo, C 135 parity, competitive 500, 623 Parker pens 494 Parkhe, A 193 participants in distribution 462–3 in marketing mix 354 in trade shows 514–15 partners 5, 266 KAM stage 378 Swiss cereal business 175–83 in value chains 188, 189, 211–16 Parvatiyar, A 10 Pass, L 359 Passionata 561 passive decision making/learning 112, 113 Patek watches 521 Pavoni, D 52 Payne, A 8–9, 12 Peattie, K 341 Peck and Cloppenburg 555 penetration 628 customer 139 market 627 price 440, 443–5, 628 Penrose, E 29 people see human resources Peppers, D 10, 203, 303, 374 Pepsi/Pepsi Cola 160, 161, 182, 212, 276, 277–8, 283 percentage of sales 628 perception/perceived 628 customer behaviour 117, 118 differences 195–8 product 466 risk 112, 628 value 34–7, 137–40, 628 advantage 76–7, 76 net present 570, 627, 628 Perfetti Van Melle 424, 427 performance evaluation in buying process 115 improvements 34–5 indicators, early 581 Peri-dent Ltd 586 perishability 394–5, 479 see also food Perry Ellis 560 personal characteristics see personality personal competences 33 personal contact in primary research 607 personal interviews 606–7 personal selling 89, 498, 508–13, 520, 628 approach 508–9 closing deal and loyalty building 510–11 different from advertising 510–11 effectiveness, assessing 51 functions 509 international 512–13 outsourced salesforce 511–12 planning 508 relationship building 509–10 personalisation 191 personality of customers 108–9, 113, 297, 298 personnel see human resources Peter, J P 328 Peugeot 223 Pfizer 444 Pham, C T 46 pharmaceutical industry 69, 174 Phelps, M 523 Philip Morris 63, 313, 494 Philippe watches 521 Philips 189 coffee maker 51, 53, 55, 56 mocked by spoof ‘Quintippio’ campaign 519–20 and Sony (CD format) 90 Philipsen, K 200 Phillips, C 503 Z03_HOLL6830_02_SE_IND.QXD 1/18/10 4:26 PM Page 649 Find more at www.downloadslide.com INDEX physical address, lack of 613 physical evidence in marketing mix 77, 355 physical product pricing 442–3 Piercy, N F 547 Pillsbury Doughboy 176 PIMS (profit impact of marketing strategy) 253, 628 Pirog, S F 467 Pitt, B 522 Pitt, L F 572, 573 Pitta, D A 335, 337, 415, 496 place in marketing mix 170 planning annual plan control 581–2 gap 245 marketing 1, 2, 4, 5–6, 627 budgeting 438, 538 see strategic marketing planning portfolio 629 sampling 607–8, 607 top-down method 631 see also portfolio planning PlayStation 170 Playtex 55, 558, 560 PLC see life cycle under product Pocari Sweat 279 Pohlen, T L 584 point-of-sale displays 505, 628 Poland 550, 555, 558, 590 Polaroid 240 political environment 103 Poole, I 503 poor people see ‘bottom of the pyramid’ Popper, E T 404 population see demographics Porsche cars 308, 523–4 portable phones 104, 478–9, 524 portal 302, 628 Porter, M E buyer bargaining power 73 buyer purchasing criteria 34–5 competitive strategies Competitive Advantage of Nations 67, 157 generic 74, 82, 83, 306–9 diamond/five forces model see national competitiveness value chains 37, 38, 42, 48, 75, 78–9, 332 portfolio planning and analysis 249, 251 distributor 463–4 product 250, 629 see also strategic marketing planning; SWOT analysis Portugal 52, 270, 413, 450 positioning 284, 303–6, 314, 629 and customer behaviour 117 defence 312 international apparel and Björn Borg 305–6 product 408 see also targeting under segmentation post-purchase activities 116, 369, 595 post-testing 629 potential market 401, 627 see also foreign market potential potential suppliers 128–9 Potterton heaters 145 poverty see ‘bottom of the pyramid’ Powers, T L 295 Powertrain Group (General Motors) 451 Prahalad, C K 90, 191, 415 core competences identified 30, 31–2, 40 CSR strategy and sustainable global value chain 334–5, 338 Pratt & Whitney 385 pre-emptive defence 313 preference inputs 401 Premier jets 383 premiums, price 575, 576–7 pre-sale contact and B2B customer file 595 Pressey, A D 197, 198 Preston, S 208 Pret A Manger case study xxiii, 531–2 pre-testing 609, 629 price/pricing 77, 595 break-even 622 decisions 432–60 accountant’s perspective 435–7 bundling 448–9, 629 changes 445–6 competitor’s response 434–5 different segments 449–50 economist’s perspective 433–5 experience curve 446–7 framework 437–41 Harley-Davidson case study 454–8 internet 452–3 market value-based versus costbased 441–2 new products 443–5 product line 447–8 relationship 450–2 services versus physical product 442–3 target markets, communication with 453 escalation 439–40, 629 in marketing mix 170 penetration 440, 443–5, 628 649 premium 575, 576–7 product line 629 relationship 14, 450–2 skimming 443–5, 630 supplier’s 130 PriceWaterhouseCoopers 69 Pride, W 328 Prima Donna 561 Primark 557 primary activities 38, 43 primary data 288, 596–7, 629 primary research 601–12 approaches 604–6 contact, medium of 608–11 design 603–4 experiments 605 measurement 611–12 observation 605 online see online primary research problems using 610–12 qualitative 601–3, 602 quantitative 601–3, 601 sampling plan 607–8, 607 surveys 605–6, 610–14 triangulation 602–3 see also contact medium privacy/private 142 brand/label 411, 412, 413, 629 contracting 125 jet membership 386 Private Air 385 probability sampling 607, 608 problems field survey sampling 605–6, 610–12 identification in buying process 113–14 non-response 610–11 primary research 610–12 recognition 126–7 refusal to respond 611 solving 43, 626 see also barriers process 77, 111–12, 354–5 model, multiple convergent 400, 401 Procter & Gamble 31, 55, 420, 588, 590 procurement 38 product 77 -based resource organisation 541–2 brand equity 408–9 cannibalisation 407–8, 623 changes 401 and channel decisions 466 concept 629 convenience 624 development 375 factors and pricing decisions 438–40 -focused business units 543 Z03_HOLL6830_02_SE_IND.QXD 1/18/10 4:26 PM Page 650 Find more at www.downloadslide.com 650 INDEX product (continued) generic 414, 625 gross national 625 life cycle (PLC) 249–51, 255–6, 402–5, 629 levels and limitations 404–5 and time-to-market see TTM line pricing 447–8, 629 in marketing mix 170 offer, components of 394 platform and new product development 400–2 portfolio 250, 629 relationship marketing 14 and service decisions 392–431 brand equity 408–9 cannibalisation 407–8, 623 chewing gum industry 424–8 Fisherman’s Friend case study 422–4 importance of service 393 ‘long tail’ strategies 420–1, 626 offer, components of 394 positioning of product 408 product offer, components of 394 see also branding; new product; positioning; strategies under services and under Internet value chains 44–6 production 39, 186–7, 401 -oriented (upstream) activities 38–9 productive SWOT analysis 239–41 productivity profit -and-loss statement (operating statement/income statement) 566, 629 base 576 before tax, net 569–70 control 582, 583 impact of marketing strategy 253, 628 objectives 245 profitability analysis 566–7, 629 realising full value of customer relationship 571–2 see also profitability under customer promotion (communication) see advertising and promotion ‘Pronto’ toothbrushes 586 proposals (samples) from suppliers 129 proprietariness and competence 31 prospect 629 Prost, A 522 Proton 221 Ps, four see marketing mix psychic distance 194–5, 196, 629 psychographics 289, 291–4, 629 psychological bond between buyer and seller 205 public relations 498, 503–4, 520 public sector tendering 124–5 Puma 560 purchases see buying/purchase push and pull strategies 495–8, 629 Qiu, T 156, 197, 198 Quaker Foods 176, 182 Quaker Oats 276 qualitative research 601–3, 602 quality 130 buyer-seller relationship 362–3 gap in services, determining 395–7 quantifiable objectives 244 quantitative research 601–3, 601 Quelch, J.A 414, 452 question marks in BCG model 253, 254 open-ended 628 questionnaire design 606, 608–9 Quinn, J B 90 ‘Quintippio’ spoof campaign 519–20 R&D (research and development) 39, 186–7 race, segmentation by 290 radio advertisements 502 Rafiq, M 77, 218 Raggio, R D 409 Räikkönen, K 522 Ramaswamy, V 39, 40, 191, 415 Ramirez, R 40 Ranchhod, A 508 Rangaswamy, A 141, 142 Rao, S K 447 Raskin, O 612 Rauch, Roman 269 Ravald, A 75 Ray, P H 18 Raynor, M E 284 Rayport, J 48 Raytheon jets 383, 384, 385 RBV see resource-based view reach (advertising) 501, 629 Reagan, President R 455 Real Gold (drink) 279 realised sales 600 rebuy modified 125, 627 straight 125, 126, 630 recession and brand-switching 123 reciprocity 203 recognition of problem or need 126–7 recruitment market recycling 462 Red Bull energy drinks case study 269–80 advertising and promotion 273–4, 275 and competition 274, 276 described and illustrated 270–2 market 276–80 price and distribution 272–3 red oceans 82, 629 Red Rose 559 Redknapp, L and J 562 reference groups 109, 113, 117, 629 see also family referrals 9, 575, 576, 629 regulations see law Reichheld, F F 370, 371, 571 Reinartz, W 400 relationships and relationship marketing xix–xx, 1, 401, 629 analysis see value chain relationships audit 368 B2B market 298–300 building in personal selling 509–10 chain of 16 concept 8–12 distribution 14–15 focus in exchange 198–200 management 464–5 organisational forms of 15–17 pricing 14, 450–2 product 14 promotion (communication) 15 six-markets model of and traditional marketing 13–17 and transactional marketing 7–13 see also value chain relationships relative cost 77–9, 78, 623 relative market share 252–3, 623 reliability 598, 611–12, 611 Renault 25, 26, 221 repositioning 243, 630 Rese, M 360 research and development 39, 186–7 qualitative and quantitative 601–3, 601, 602 see also primary research; secondary research resellers/reselling see intermediaries resources allocation -based view of core competences 28, 29–34, 50, 630 competence described 30–3 and competitive advantage 32–3 resources defined 29–30 testing 30 centralised/decentralised 540 Z03_HOLL6830_02_SE_IND.QXD 1/18/10 4:26 PM Page 651 Find more at www.downloadslide.com INDEX core competences see -based view above high market commonality 166–8 organisation see organising resources similarity and competitor analysis 166–8 response competitor 171–2, 434–5 consumer 111–12, 481 non-response problem 610–11 and segmentation 287 stimulus/process (SPR) 111 responsibility, social 245, 538, 630 corporate see CSR retailing distribution decisions 462, 479–82 ECR (efficient consumer response) 481 mystery shopping 481–2 objectives 480, 481 panels in longitudinal research 615 trade marketing 479–81 retention, customer 366–7, 372, 571–4, 577, 630 return on investment (ROI) 4, 630 Reve, T 74 revenue generation and growth 87, 576 reverse auction 630 reverse channel 462 reverse marketing 210–11, 630 reverse segmentation 299–300, 299 Rezazadeh, H 224–5 Rhapsody.com 421 Riello Burners 147, 151–2 Ries, A 310 Rigby, D 326 Ringland, G 618 risk 402 perceived 112, 628 Ritter GmbH 486 RM see relationship marketing Roberts, K 344–6 Robertson, D 400–1 Robinson, D A 326 Robinson, P J 127 Rogers, M 10, 374, 516 ROI (return on investment) 4, 630 Rolex watches 308, 521, 523 Rolls Royce 381, 385 Romania 144, 145, 503, 558 Rosenberg, J 550 Ross, W T., Jr 512 Rosson, P J 514 Rossum, E 346 Rosy 559 Rotel coffee machine 52 routine items in Kraljic’s model 32 Rowenta coffee machine 52 Roy, M 332 royalty (remuneration) 630 Rukh Khan, Shah 349, 523 Rukstad, M G 80 Runners stove 553 Russia Baxi boilers 144, 145 car sales 26 cereals 179 soft drinks 212–13, 278 Triumph underwear 550, 554, 555 value chain relationships 212–13 Ruyter, K 376 Rwanda 106 Ryals, L 544 Ryan, T., D and C 316 Ryanair case study xxiv 50, 315–22 calendar (2009) 320, 321 Michael O’Leary 316, 317, 318, 321 Safeway 213 Safran (aerospace) 381 Sainsbury, J./Sainsbury’s 169, 413, 419, 556–7, 562 Saipa cars: case study xxiv, 219–27 Saks Fifth Avenue 556 salary, straight 511, 630 sales 39 forecasting 616, 617 gross 635 increasing, customer lifetime value and 574–5 percentage of 628 promotion see advertising and promotion realised 600 and services 39, 186–7 see marketing salesforce 511–12, 513 Samiee, S 393 Samli, A C 15, 581 sampling field survey 605–6, 610–12 planning 607–8, 607 probability/non-probability 607, 608 San Tomé & Principe 106 Sanchez, F 48 Sandström, M 194 Sara Lee products 248, 556, 559 Senseo coffee pod machine xxi, 22, 51–6 satisfaction see customer satisfaction Saudi Arabia 223, 225, 610 Saunier Duval boilers 151 Sawhney, M 417 Sawiris, N O 104 651 SBUs (strategic business units) 163, 173, 269, 630 marketing strategy/portfolio analysis 249–51, 268 scale see economies of scale Scandinavia 68 class 290 customer behaviour 119, 120 Finland 270, 586 see Denmark; Norway; Sweden scenario/scenario planning 616–18, 616 Schaltegger, S 331 Scheer, L 41 Schefter, P 370, 371 Schick mocked by spoof campaign 519–20 Schlecker toothbrushes 589 Schmid, K.L 283 Scholl 614 Schroder, B 136 Schurr, P H 191, 192 scope, economies of 61–3, 306, 307–8, 624 Scorsese, M 505 Scotland 212–13, 269, 587 screening 128–9, 400, 630 Scully, J 411 Sea Ray 388 searches, opt-in 478 secondary data and sources 288, 596, 597, 599, 600, 630 secondary research 598–601 see also foreign market potential Seed, S 369 Segil, L 193 segmentation and customer behaviour 117 market 109, 284, 627 micro- 283, 627 and pricing 449–50 reverse 299–300, 299 successful, criteria for 286–7, 624 targeting, positioning and competitive strategies 282–324 common methods 287–8 defensive strategies 312–13 effectiveness, five criteria for 286 favourable and unfavourable factors 285–6 offensive strategies 310–12, 314 pitfalls 283–5 see also B2B; B2C; generic competitive strategies; positioning; target marketing variables 287–8 Sela (Russian retailer) 555 selective competitor 173 Z03_HOLL6830_02_SE_IND.QXD 1/18/10 4:26 PM Page 652 Find more at www.downloadslide.com 652 INDEX selective distribution 467–8, 630 selective strategy 464 selective tendering 125 self-analysis in relationship 197 self-image 112 selling cross- 624 team 510, 631 see also buyer-seller relationship; personal selling Selvarajan, T T 33 Selznick, P 29 Sen, S 349 Senegal 106 Senna, A 522 Seno, D 504 Senseo coffee machine xxiv, 22, 51–6 sequences in commercial relationships 363, 467, 469 Seringhaus, F H 514 services 38, 39 decisions see under product development 375 pricing 442–3 strategies 394–400 after-sales services (AS) 397–8 categories 395, 396 characteristics 394–5 contracts, full service 398–400 customer support 398 full service contracts 398–400 quality gap, determining 395–7 value chain 42–6 7-Up (drink) 160 sexism, Ryanair accused of 320 Seychelles 106 shadow teams 174 Shapiro, B P 295, 296–7 Sharapova, M 522, 523 Sharland, A., 514 Sharma, V M 29 Sharn, L 330 Shaw, J J 411–12, 506 Sheehan, N T 83 Shell 385, 415 Sheth, J N 10 Shoham, A 513 Shostack, G L 393 Sierra Leone 106 Siffert, J 522, 523, 524 Silicon Graphics 93 Siltex 559 Silvera, D H 504 Simon & Schuster 180 Simon, H 449–50 Simonetto, M 445 Singapore 309 Singh, R 310–11, 312 single branding 412, 415 single parents 120 single sourcing 630 situations/situational analysis of marketing plan 536–7, 630 buying/purchase 125–32 factors in B2B market 297–8 hybrid 87 see also external marketing situation Sketcher 553 skimming price 443–5, 630 Skoda 123, 169 Sky Europe 319 Sloggi 552 Slovakia 270 Slovenia 550 small and medium-sized enterprises (SMEs) 7, 630 Smith, A 400 Smith, C 175 Smith, G E 35, 399 Smith, W 282 smoking 213 Snehota, I 16, 210, 299 social bond in buyer-seller relationships 205, 206 social class 115, 119, 290 social influences on customers 109 social marketing xxiv, 328–9, 329, 344–9 social networks 49, 122–3, 186 social objectives 630 social responsibility 245, 538, 630 corporate see CSR socialisation process 578, 630 socio-cultural differences and communication decisions 494 sociodemographic variables 116–17, 119–23, 288–90 socio-political factors 260 Söderquist, K 134, 267 soft drinks 160, 212–13, 279 see also Coca Cola; colas; Pepsi; Red Bull soft services 44 ‘softcore’ screening 128 software see under computer solution selling 361 Somalia 106 Sony 93–4, 171, 240, 248 outsourcing 64, 89–90 Play Station 95, 97 world sales 96 Sorbitol 428 Soroor, J 208 sourcing single 630 see also outsourcing South Africa 98, 105, 550 South America see Latin America South Korea 150, 424 boilers 146, 147, 151 energy drinks 269, 277 South-East Asia 179, 277, 550 Southwest Airlines (US) 316, 317, 365–6 SOV (share of voice) 491 Spain 55, 277, 320, 413, 553 Baxi boilers 144, 145 special market relationships 186 Speedo (swimwear) 201–2 Spiesshofer, J G 550 sponsorship 273–4, 630 sports 273–4, 385 see also energy drinks Sports Authority 553 Sports Export 553 SPR (stimulus/process/response) model 111 Sprite 160 Sri Lanka 550 Stabell, C B 42, 43, 44 Stace, D 373 stakeholders 16, 630 standardised concept 630 Star Alliance 214 Starbucks 487 stars (in BCG model) 253, 254, 630 Sterling, J 191, 295 Still, R 581 stimulus/process/response model 111 stochastic competitor 173 Stockmann 555 straight commission 511, 630 straight rebuy 125, 126, 630 straight salary 511, 630 Strandvik, T 205 strategic alliances, international 16, 193–8, 630 strategic business units see SBUs strategic control 582 strategic customer care 372, 373 strategic implications of supplier relationships 264–6 strategic intelligence 158 strategic management business units see SBUs components defined 2–3, items in Kraljic’s model 32 marketing, profit impact of (PIMS) 253, 628 multiple channel 627 pull and push 629 see also service strategies; strategic alliances; strategic marketing planning Z03_HOLL6830_02_SE_IND.QXD 1/18/10 4:26 PM Page 653 Find more at www.downloadslide.com INDEX strategic marketing planning and portfolio analysis 237–81, 241–3, 538 See also Boston Consulting Group; General Electric; marketing plan; Red Bull; SWOT analysis strategic retreat/withdrawal 313, 464 Strauss, R 345, 409 Stremersch, S 398, 399, 448 strengths/weaknesses 165–6 profile in benchmarking 597 see also SWOT analysis structural bond in buyer-seller relationships 206 subculture see culture/subculture Subrahmanyan, S 337 subscription information services 165 subsidiary 169, 630 substitutes and competition analysis 73 success CRM implementation 584–5 factors, key 87, 165, 626 segmentation 624 Sudan 106 Sumatra 54 Suntory (drink) 279–80 supermarkets see Asda; Sainsbury; Tesco suppliers competition analysis 72 evaluation and routine 129–30 market performance review 130–1 relationships in SWOT analysis 263–7, 268 screening for potential 128–9 value chain analysis of relationships with 188, 189, 208–11 supply chain management xxi, 630 support activities 38–9, 43 surface culture 544 surveys in primary research 605–6, 610–14 sustainability 5, 18–19 of global value chain see CSR Suzuki 26, 454–5, 456, 457 Sviokla, J J 48 Swartz, G 452 Swatch 213–14 Swaziland 106 Sweden 68, 119, 553 cereals consumption 179 chewing gum 425 toothbrushes 586–90 switching brand in recession 123 costs 374, 630 Switzerland 52, 270 Cereal Partners Worldwide 175–83 chewing gum 425 languages 609 Lindt chocolate case study xxv, 353, 483–7 SWOT analysis (strengths, weaknesses, opportunities and threats) 238–43, 268 contact methods 606 corporate mission 238, 268 corporate objectives 244–6 effective and productive, conditions for 239–41 international portfolio 261–3, 268 profile 597 and strategic marketing planning 241–3 see also Boston Consulting Group; corporate growth strategy; corporate objectives; General Electric matrix; SBUs synergy 4, 37–8 synergistic KAM stage 378–9 see economies of scope Syria 221, 587 Szmigin, I 326 tacit knowledge 630 tactical control 582 tactical intelligence 158 TAG Heuer luxury watch xxv, 353, 521–5 Tager, S 326 Tähtinen, J 198 Taisho Pharmaceuticals 269, 276 Tanzania 106 target marketing 284, 300–3, 314, 479 audience xx concentrated/one-to-one 301, 303 and customer behaviour 117 differentiated/undifferentiated 301, 302 see also niche marketing and under segmentation tariff 630 task and objective approach 500–1, 628 Tassimo coffee 53 Tata, R 24 Tata Motors (India) and Tata Nano xxiii, 22, 24–6 taurine in soft drink 270 tax 569–70 tariff 630 TBC see time-based competition 653 Tchibo 54, 55, 56, 553 team cross-functional xxi, 624 selling 510, 631 shadow 174 Techniques d’Avant Garde see TAG technology 38, 260, 509 bond 205 supplier’s 130 see also Internet Tefal 214–15 Teflon 215 telemarketing 203, 511, 631 telephones 608 interviews 606–7 mobile 104, 478–9, 524 telephones, interviewing, computeraided 606–7 television advertisements 502 Tellis, G J 407, 448 temperatures, low 148 tendering procedures 124–5 Tensilica 62 Tesco 49–50, 169, 419, 553, 556, 557, 562 testimonial advertising 631 testing 30, 400 marketing 631 pre-testing and post-testing 609, 629 Texas Instruments 70 TFs see trade fairs Thailand 269, 277 Thakur, R 359 Thales (aerospace) 381 third-party logistics provider 631 Thorelli, H B 408 threats see SWOT analysis Thurman, U 522 Thysses, Akke 53 tiger competitor 173 Timberlake, J 346 time -based competition and competitive advantage 63–4, 631 bond in buyer-seller relationships 205 constraints and online surveys 613 segmentation 450 -to-market (TTM) 63, 403–4, 631 TM see transactional marketing Togo 106 Tommy Hilfinger 560 tools, communication 498–508 direct marketing 498, 506–8, 520 public relations 498, 503–4 sales promotion 498, 504–6, 520 see also advertising; internet Z03_HOLL6830_02_SE_IND.QXD 1/18/10 4:26 PM Page 654 Find more at www.downloadslide.com 654 INDEX toothbrushes xxv, 189, 586–90 Jordan case study (Norway) 189, 586–90 toothpaste 269 Top Form 561 Top Shop 555 top-down method 631 Töpfer, A 405 Toporiˇsiˇc, A 79 Torres, A M 219 Toshiba 171 total cost 631 total quality management (TQM) 454, 630 tourism: Indian Tourist Board video case study xxiii, 356–7 Toyota 26, 62, 209, 300, 451, 457 TQM see total quality management trade barriers, non-tariff 440, 628 marketing 630 -offs 14, 630 trade fairs, shows and exhibitions 129, 513, 631 participation, arguments for and against 514–15 traditional marketing, and relationship marketing 13–17 transaction 631 basis for profitability computation 568 costs 91, 631 manufacturer and customer 462–3 transactional marketing (TM) xix, xx, 1, 7–13, 17, 198–200, 631 transit advertising 503 travel 478 Trebor Bassett see Cadbury trends 617 international 553, 554–5 Tretton, J 95 triangle, competitive see under competition triangulation in primary research 602–3 Trident chewing gum 425 Trippe, J 380 Triumph underwear case study xxv, 456, 457, 550–63 Asia 550, 551, 553, 554, 555, 558, 559, 560, 561 background 550–2 competition, global 560–2 distribution 552 environmental policy 552 Europe 550, 553, 554, 555, 556–8, 559 international trends 553, 554–5 Latin America/South America 550, 560 men’s 559–60 North America 553, 554, 555–6, 560, 561 positioning 562 prices and retailing 554, 555 vertical integration 553–4 world market 554–9 Trott, P 30 Trout, J 310 trust 202 truth, moments of 627 TTM (time-to-market) 63, 403–4, 631 Tucker, J M 453 Tunisia 104, 106, 558, 561 Turkey 278, 558 Baxi boilers 144, 145 Turner, R 571 2xist 560 Uganda 106 Ulrich, A M D 194 Ulrich, K 400–1 unbranded products 411 Underlines 559 underwear for men 305–6, 560 for women see Triumph undifferentiated marketing 301, 302, 631 Unilever 261, 263, 269, 548 unique selling proposition 501, 631 United Airlines 319 United Arab Emirates 270 United Biscuits 308 United Kingdom 54, 145, 182, 450 air travel 248, 364–5 see also British Airways boilers 146–7 business jets 385 cereals consumption 179 chewing gum 424, 425–6 energy drinks 270, 273, 277 shops 49–50, 169 toothbrushes and teeth care 586, 587 Triumph underwear 554, 555, 556–8 value chain relationships 200–1, 212 United States air transport 319, 380 airlines 316, 317, 365–6 business jets 383, 384, 385, 387 American Marketing Association 7–8 Best Buy stores 371 car sales 24, 25 cereals 174, 175, 176–83 passim chewing gum 424, 426, 427–8 and China 309 class 290 coffee makers 53, 54 competitive advantage 93 competitor analysis 168 Duke of Edinburgh’s Duchy USA 19 DVD market forecast 600–1 energy drinks 7–8, 270, 273 family concept 609 and Indian software 68 and Japan 313 motorcycles 309, 456 own labels 413 subcultures 120 SWOT analysis and portfolio analysis 247 toothbrushes 588 Triumph underwear 553, 554, 555–6 value chain relationships 188, 219, 221 unpredictability 404 up-selling 361–2, 631 upstream activities 38–9, 47–8 Uruguay 550 usage segmentation 450 user customer role 110, 136, 631 USP see unique selling proposition U´´stüner, T 360 Vaaland, T 198 Vaidyanathan, G 83 Vaillant boilers 147, 151 Vajolet 559 validity 611–12, 611 value activation 38 added 402 economic (EVA) 584–5, 625 analysis 128 based view (VBV) see under value chains chain see value chains complementary 44 constellation 40–2 and customer behaviour 137–40 endorsement co-branding 214–15 innovation 83, 631 and blue ocean strategy 82–5, 82 net 188–90 present 570, 627, 628 network 42 perception of see perceived value proposition, online customer 49–50 shop and service value chain 42–6, 42 see also core competences; customer value; value chains Z03_HOLL6830_02_SE_IND.QXD 1/18/10 4:26 PM Page 655 Find more at www.downloadslide.com INDEX value chains Porter on 37, 38, 42, 48, 75, 78–9, 332 relationships analysis 65, 75–82, 185–227 behavioural conditions 200–3 bonding 205–8, 206–8 business jets 385 case study of car firm (Saipa) xxiv, 219–27 competitive triangle see under competition competitors 188, 189, 216–17 complementors/partners 188, 189, 211–16 customers 188, 189, 190–208 encounters 206–7 exchange relations 190–1 of focal firm 186–7 internal marketing (IM) 188, 189, 218–19 internationalisation of encounterbased strategies 207–8 perceived value advantage 76–7, 76 relative cost advantage 77–9, 78, 623 reverse marketing 210–11, 630 suppliers 188, 189, 208–11 value net 188–90 see also benchmarking, competitive; marriage metaphors and value based view (VBV) 12, 28, 29, 34–42, 99, 631 of core competences 28, 29, 34–42 internationalised 46–8 model 38–9, 40–2, 43 and service value chain 42–6 virtual 48–50 see also CSR strategy and sustainable global value chain Van de Velde 561 Van der Wal, F 346 Vandermerwe, S 363–4 Vanity Fair Corporation 559 Vargo, S L 75 variability costs 402, 631 services 442 Variance 559 Vavra, T G 10 VBV see value based view under value chains VCRs 64 Veliyath, R 65 Venezuela 221 ventures see joint ventures vertical integration 470, 471, 553–4, 631 vertical marketing system (VMS) 471, 631 Vesanen, J 33 Vettel, S 274 VF Corp 556 VHS format 64 Victoria’s Secret 2, 553, 555, 556, 561 video case studies xxiii–xxv Indian Tourist Board xxiii, 356–7 Nivea face cream xxiii, 234–6 Pret A Manger xxiii, 531–2 Viessmann boilers 147, 151 Vietnam 277, 550 viral marketing 516–20, 631 advantages and disadvantages 517–18 defined 517 developing campaign 518–19 motives for 517 ‘Quintippio’ spoof campaign 519–20 Virgin Atlantic 312, 364–5 Viros, C 522 virtual value chain 48–50 Visa 415 visible beliefs 544 vision statement 3, Vivendi Games 97 VMS (vertical marketing system) 471, 631 Volkswagen 25, 123, 149 customer loyalty management 369–70 Exclusive Service 370 Volvo 149, 170, 292, 441 Wagner, M 331 Wahyuni, S 197 Walgreens 487 Walker, O C., Jr 130, 509 Wal-Mart 54, 168, 180, 421, 487 Triumph underwear 553, 554, 560 Waluszewski, A 12, 13–14 Wang, C L 16 Wansink, B 369 warehousing data 593–4, 624 Warnaco 559 Warner’s 559 Warren, H B 312 Washburn Crosby Company 176 waste disposal 462 watches xxv, 308, 353, 521, 521–5, 523 Waters, A weaknesses see strengths/weaknesses; SWOT analysis 655 weather see climate Web, World Wide 49–50, 631 Webb, J 31 Weber, M 331, 333 Webster, F E., Jr 136, 360 Weetabix 182 Weigand, R E 448 Weinberg, H S 284 Weis, M J 121 Wellington, F 341 Wensley, R 75 West, C 156, 157 West, D C 500 Wetzels, M 376 Wheeler, C 30 Wheeler, D 34 wholesalers 124, 462, 631 Wii xxiv, 22, 92–7, 171 Williams International 385 Williamson, O E 374 Wilson, A M 482 Wilson, D 17 Wilson, D E 298, 299 Wilson, D T 136, 200 Wilson, J 224 Wilson, K 378 Wind, J 141, 142 Wind, Y 127, 136, 295–6 Wind Telecomunicazioni 104 Winfrey, O 493 Winkelen, C 378 Winslet, K 505 Wisdom Toothbrushes 586, 587 Wise, R 409 Wizz Air 319 Women’s Secret 553 Wonderbra 560 Wong, Y H 203 Woods, Tiger 385, 505,523,533 word-of-mouth advertising 498, 503–4 World Wide Web 49–50, 631 world-class brand 410–11, 631 World-wide Brand Management see Björn Borg Wotkman, J., Jr 543 Wright, L T 616 Wright, S 162 Wrigley’s chewing gum 425, 426, 427, 428 Wuster, T S 415 Wuyts, S 399 Wyner, G A 302 Wynstra, F 266 X coalitions in value chain relationships 211, 213 X Generation 119 Z03_HOLL6830_02_SE_IND.QXD 1/18/10 5:09 PM Page 656 Find more at www.downloadslide.com 656 INDEX Xardel, D 507 Xbox, Microsoft 92, 95, 97–8 Xerox 451 Xevelonakis, E 360 Xiong Dailin 562 Y coalitions in value chain relationships 211, 212–13 Y Generation 119 Yamaha 64, 454–5, 456, 457 Yandi boilers 151 Yao Ming 523 Yeoh, P.-L 473 Yoovidhya, C 269 Yoplait 176 You Tube 523 Yunus, M 336, 337, 339 Yuspeh, S 404 Zahra, S A 65 Zambia 106 Zara 553, 554, 555 Zednickova, J 409 Zenith watches 521 Zidane, Z 339 Zimbabwe 104, 106 Zineldin, M 12 Zooth 187 Z03_HOLL6830_02_SE_IND.QXD 1/18/10 4:26 PM Page 657 Find more at www.downloadslide.com Z03_HOLL6830_02_SE_IND.QXD 1/18/10 4:26 PM Page 658 Find more at www.downloadslide.com Z03_HOLL6830_02_SE_IND.QXD 1/18/10 4:26 PM Page 659 Find more at www.downloadslide.com Z03_HOLL6830_02_SE_IND.QXD 1/18/10 4:27 PM Page 660 Find more at www.downloadslide.com ... graduated college Events Birthdays, graduations, anniversaries, national holidays, sporting events Race and ethnic origin Anglo-Saxon, African American, Italian, Jewish, Scandinavian, Hispanic,... all marketing strategies To be successful, the firm must have a substantial Bypass attack Flanking attack Guerrilla attack Frontal attack Attacker Defender Encirclement Figure 8.9 Attack strategies... in at least one key area of the marketing programme IBM’s attack on the PC market in the early 1980s is a classic example of the frontal attack The market pioneer (Apple) was attacked partly as