The Marketing Book This Page Intentionally Left Blank The Marketing Book Fifth Edition Edited by MICHAEL J BAKER OXFORD AMSTERDAM BOSTON LONDON NEW YORK PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO Butterworth-Heinemann An imprint of Elsevier Science Linacre House, Jordan Hill, Oxford OX2 8DP 200 Wheeler Road, Burlington MA 01803 First published 1987 Reprinted 1987, 1990 (twice) Second edition, 1991 Reprinted 1992, 1993 Third edition, 1994 Reprinted 1995, 1997 Fourth edition 1999 Reprinted 2000, 2001 Fifth edition, 2003 Copyright © 2003 Michael Baker All rights reserved Copyright © 2003 contributors of individual chapters All rights reserved The right of Michael Baker and the individual contributors to be identified as the authors of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988 No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1T 4LP Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publisher British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data A catalogue record for this book is available from the Library of Congress ISBN 7506 5536 For information on all Butterworth-Heinemann publications visit our website at: www.bh.com Composition by Genesis Typesetting, Rochester, Kent Printed and bound in Great Britain Contents List of illustrations List of tables List of contributors Preface to the fifth edition Part One Organization and Planning for Marketing xv xix xxiii xxxiii One more time – what is marketing? Michael J Baker Introduction Marketing as a managerial orientation Marketing myopia – a watershed Life cycles and evolution Marketing misunderstood The marketing function Relationship marketing Summary References Further reading 11 14 15 15 Postmodern marketing: everything must go! Stephen Brown 16 Grand opening offer No down payment Money back guarantee Batteries not included Limited time only One careful owner This way up Open other side Closing down sale References Further reading 16 17 18 19 22 24 25 27 28 29 31 vi Contents Relationship marketing Lisa O’Malley and Caroline Tynan 32 Introduction Relationship marketing defined History of relationship marketing Focal relationships Models of relationship development Critique and emerging issues Conclusion References 32 33 34 39 40 44 47 48 The basics of marketing strategy Robin Wensley 53 Strategy: from formulation to implementation The nature of the competitive market environment The codification of marketing strategy analysis in terms of three strategies, four boxes and five forces The search for generic rules for success amidst diversity Models of competition: game theory versus evolutionary ecology Characterizing marketing strategy in terms of evolving differentiation in time and space Research in marketing strategy: fallacies of free lunches and the nature of answerable research questions The recourse to processes, people and purpose in marketing as well as strategy as a whole The new analytics: resource advantage, co-evolution and agent-based modelling Conclusions: the limits of relevance and the problems of application References and further reading 53 55 Strategic marketing planning: theory and practice Malcolm McDonald Summary Introduction The marketing planning process Guidelines for effective marketing planning Barriers to marketing planning Summary References Further reading Part Two The Framework of Marketing 58 60 62 66 70 75 80 81 82 87 87 87 90 101 109 115 116 116 117 Consumer decision making: process, level and style Gordon R Foxall 119 Introduction The consumer decision process Levels of consumer involvement 119 121 125 Contents vii Consumers’ decision styles Implications for marketing management Summary and conclusion References Further reading 127 132 138 138 140 Business-to-business marketing: organizational buying behaviour, relationships and networks Peter W Turnbull and Sheena Leek 142 Introduction The realities of business markets Organizational buying structures Models of organizational buying behaviour Conclusion References Further reading 142 144 144 152 165 166 169 Marketing research John Webb 171 Introduction Definitions of the role of marketing research Types of research The process of marketing research Secondary data Quantitative primary data Questionnaires and their design Qualitative research methods The research process and measurement Attitudes and their measurement Sampling Analysis of the results Presentation of the final report Conclusion References 171 172 173 174 175 177 180 180 184 186 189 192 194 195 195 Quantitative methods in marketing Luiz Moutinho and Arthur Meidan 197 Introduction Multivariate methods Regression and forecasting techniques Statistical decision theory or stochastic methods Deterministic operational research methods Causal models Hybrid models Network programming models 197 200 206 219 226 235 236 237 viii 10 Contents Conclusion References Further reading 240 241 244 Market segmentation Martin Evans Chapter objectives Introduction Historical perspective Segmentation criteria and categories ‘Traditional’ segmentation bases Data-driven segmentation Targeting Positioning Conclusions Review questions References Further reading 246 246 246 247 248 249 258 276 278 280 280 281 282 Part Three Managing the Marketing Function 285 11 Managing the marketing mix Peter Doyle 287 Introduction The traditional approach to the marketing mix The accounting approach to the marketing mix Value-based marketing The marketing mix and shareholder value Making marketing mix decisions Summary References Further reading 287 288 289 291 294 298 311 312 313 New product development Susan Hart 314 Introduction The process of developing new products The stages of the new product development process Usefulness of models The multiple convergent approach Managing the people in NPD Summary References Further reading 314 314 316 322 331 333 338 338 341 12 Contents 13 14 15 16 ix Pricing Adamantios Diamantopoulos 342 Introduction Is price really that important? The drivers of profit: price, volume and cost Price from the customer’s perspective Understanding price sensitivity Conclusion References 342 344 345 348 351 356 356 Selling and sales management Bill Donaldson 360 Introduction The changing role of salespeople The costs of personal selling What we expect salespeople to – the sales process Sales management issues Conclusion References Further reading 360 360 362 363 366 369 370 370 Brand building Leslie de Chernatony 372 Introduction Spectrum of brand interpretations A model for strategically building brands Summary References Further reading 372 373 383 392 393 394 The integration of marketing communications Tony Yeshin 395 The blurring of the edges of marketing communications The strategic challenges facing organizations Strategic marketing communications The integration of marketing communications Defining integrated marketing communications The impact of external factors on marketing communications The driving forces behind the growth of integrated marketing communications The impact on marketing communications Relationship marketing The benefits of integrated marketing communications 395 396 396 397 397 400 404 405 406 407 822 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, ¨ 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, 132–3, 135, 137–8, 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 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