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Strategic Marketing in Practice 2006–2007 Strategic Marketing in Practice 2006–2007 Ashok Ranchhod and Ebi Marandi AMSTERDAM(cid:1)BOSTON(cid:1)HEIDELBERG(cid:1)LONDON(cid:1)NEWYORK(cid:1)OXFORD PARIS(cid:1)SANDIEGO(cid:1)SANFRANCISCO(cid:1)SINGAPORE(cid:1)SYDNEY(cid:1)TOKYO Butterworth-HeinemannisanimprintofElsevier Butterworth-HeinemannisanimprintofElsevier LinacreHouse,JordanHill,OxfordOX28DP,UK 30CorporateDrive,Suite400,Burlington,MA01803,USA Firstedition2006 Copyrightª2006,ElsevierLtd.Allrightsreserved Nopartofthispublicationmaybereproduced,storedinaretrievalsystem ortransmittedinanyformorbyanymeanselectronic,mechanical, photocopying,recordingorotherwisewithoutthepriorwrittenpermission ofthepublisher PermissionsmaybesoughtdirectlyfromElsevier’sScienceandTechnologyRights DepartmentinOxford,UK:phone:(+44)(0)1865843830;fax:(+44)(0)1865853333; e-mail:[email protected] onlineviatheElsevierwebsiteathttp://elsevier.com/locate/permissions,andselecting ObtainingpermissiontouseElseviermaterial Notice Noresponsibilityisassumedbythepublisherforanyinjuryand/ordamagetopersons orpropertyasamatterofproductsliability,negligenceorotherwise,orfromanyuse oroperationofanymethods,products,instructionsorideascontainedinthematerial herein.Becauseofrapidadvancesinthemedicalsciences,inparticular,independent verificationofdiagnosesanddrugdosagesshouldbemade BritishLibraryCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary LibraryofCongressCataloging-in-PublicationData AcatalogrecordforthisbookisavailablefromtheLibraryofCongress ISBN-13:978-0-7506-8012-7 ISBN-10:0-7506-8012-1 ForinformationonallButterworth-Heinemannpublications visitourwebsiteatbooks.elsevier.com TypesetbyIntegraSoftwareServicesPvt.Ltd,Pondicherry,India www.integra-india.com PrintedandboundinItaly 06 07 08 09 10 10 9 8 7 6 5 4 3 2 1 Working together to grow libraries in developing countries www.elsevier.com | www.bookaid.org | www.sabre.org Contents Preface Welcome to the CIM coursebooks vii Unit 1 Introduction 1 Introduction 1 Marketing drives the business agenda 2 ‘Models’ of marketing 3 Marketing contexts 4 Strategic marketing activities 5 Plans and planning processes 5 The role of strategic marketing 6 Aims and outcomes for strategic marketing in practice 8 Unit 2 What is meant by case study analysis? 15 A brief overview 15 Analysing a case study 16 The analyses 16 SPACE analysis 19 Key issues 23 Example analysis of the mini-case 26 Unit 3 Understanding the direction and management of marketing activities 30 Introduction 30 Business Intelligence 30 The role of information technology 38 The learning organization and market-based learning 39 The internationalization process of firms 43 Globalization 46 Unit 4 Contemporary issues in marketing 49 Introduction 49 Relationship marketing 50 Key Account Management 56 Introduction 56 What is key account management? 57 The key account development cycle 59 Identifying key accounts 60 Serving key accounts: KAM activities 62 Servicing key accounts: Developing a KAM infrastructure 65 The relevance of KAM to relationship marketing 68 Sustainability and Strategy 70 Introduction 70 Understanding environmental marketing 71 The life cycle analysis (LCA) concept – life cycle thinking 76 Green marketing strategies 89 Corporate Identity 93 Branding 96 v Contents Internal marketing 103 Social Marketing Utilizing Internet Marketing Campaigns 105 Introduction 105 Previous studies 106 Theories and models of social change 107 Adopting an Ecological Perspective on social marketing 107 Cognitive-behavioural models 108 The ‘Stages of Change’ model 108 The ‘Health Belief’ model 109 Research methodology 111 Online social marketing – a theoretical framework 114 Concluding remarks 115 Unit 5 Effective customer orientation 119 Introduction 119 Valuing customers 122 Financial analysis and marketing measures 126 Unit 6 The examination 138 The examination 138 An examiner’s point of view 144 Unit 7 Case study 148 Appendices 1 Specimen answers and examiners’ marking scheme 268 2 Examples of other analyses 346 3 Curriculum information and reading list 365 Index 370 vi Preface welcome to the CIM coursebooks About the authors Ashok Ranchhod is Faculty Professor in Marketing at Southampton Business School. Ashok has published extensively on e-marketing in Journals such as the International Journal of Advertising and the Journal of Information Technology. He has undertaken consultancy work for major organizations and has written case studies on companiesinseveraldifferentsectorsofindustryfortheCharteredInstituteofMarketing.Prior to his work in academia, he was the managing director of a small biotechnology company based in Derbyshire. In addition to the published papers he has received prizes for his papers at the Academy of Marketing and The British Academy of Management. Currently his research is into e-commerce and the marketing of biotechnology companies. He leads a team of research students. Ashok is a Senior Examiner for the Chartered Institute Marketing (CIM) and is a Visiting Professor at the University of Angers in France. He is also a Fellow of the Chartered Institute of Marketing. He has generated substantial research funds for the Business School. Ebi Marandi is a Senior Lecturer and the Programme Leader of MA International Marketing Management at Bournemouth University. He is also the Deputy Senior Examiner for CIM’s SMiP paper. vii Preface An introduction from the academic development advisor Professional Postgraduate Diploma in Marketing ↓ Professional Diploma in Marketing ↓ Professional Certificate in Marketing ↓↓ Introductory Certificate in Marketing Studynote#CIM2006 The authoring team, Elsevier Butterworth-Heinemann and I have all aimed to rigorously revise and update the coursebook series to make sure that every title is the best possible study aid and accurately reflects the latest CIM syllabus. This has been further enhanced through independent reviews carried out by CIM. We have aimed to develop the assessment support to include some additional support for the assignment route as well as the examination, so we hope you will find this helpful. TheauthorsandindeedSeniorExaminersintheseriesarecommissionedfortheirCIMcourse teaching and examining experience, as well as their research into specific curriculum-related areas and their wide general knowledge of the latest thinking in marketing. We are certain that your will find these coursebooks highly beneficial in terms of the content andassessmentopportunitiesandastudytoolthatwillprepareyouforbothCIMexaminations and continuous/integrative assessment opportunities. They will guide you in a logical and structured way through the detail of the syllabus, providing you with the required underpinning knowledge, understanding ad application of theory. The editorial team and authors wish you every success as you embark upon your studies. Karen Beamish Academic Development Advisor About MarketingOnline Elsevier Butterworth-Heinemann offers purchasers of the coursebooks free access to MarketingOnline (www.marketingonline.co.uk), our premier online support engine for the CIM marketing courses. On this site you can benefit from: viii Preface o Fullycustomizableelectronicversionsofthecoursebooksenablingyoutoannotate,cut and paste sections of text to create your own tailored learning notes. o The capacity to search the coursebook online for instant access to definitions and key concepts. o Useful links to e-marketing articles, provided by Dave Chaffey, Director of Marketing Insights Ltd and a leading UK e-marketing consultant, trainer and author. o A glossary providing a comprehensive dictionary of marketing terms. o A Frequently Asked Questions (FAQs) section providing guidance and advice on common problems or queries. Using MarketingOnline Logging on Before you can access MarketingOnline you will first need to get a password. Please go to www.marketingonline.co.uk and click on the registration button where you will then find registration instructions for coursebook purchasers. Once you have got your password, you will need to log on using the onscreen instructions. This will give you access to the various functions of the site. If you have specific queries about using MarketingOnline then you should consult our fully searchableFAQssection,accessiblethroughtheappropriatelinkinthetoprighthandcornerof any page of the site. Please also note that a full user guide can be downloaded by clicking on the link on the opening page of the website. ix