Table Of Content

Marketing Planning 2005–2006 Marketing Planning 2005–2006 Karen Beamish and Ruth Ashford AMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORD PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO ElsevierButterworth-Heinemann LinacreHouse,JordanHill,OxfordOX28DP 30CorporateDrive,Burlington,MA01803 Firstpublished2005 Copyrightª2005,KarenBeamishandRuthAshford.Allrightsreserved TherightsofKarenBeamishandRuthAshfordtobeidentified astheauthorsofthisworkhasbeenassertedinaccordancewiththe Copyright,DesignsandPatentsAct1988 Nopartofthispublicationmaybereproducedinanymaterialform(including photocopyingorstoringinanymediumbyelectronicmeansandwhether ornottransientlyorincidentallytosomeotheruseofthispublication)without thewrittenpermissionofthecopyrightholderexceptinaccordancewiththe provisionsoftheCopyright,DesignsandPatentsAct1988orunderthetermsof alicenceissuedbytheCopyrightLicensingAgencyLtd,90TottenhamCourtRoad, London,EnglandW1T4LP.Applicationsforthecopyrightholder’swritten permissiontoreproduceanypartofthispublicationshouldbeaddressed tothepublisher PermissionsmaybesoughtdirectlyfromElsevier’sScienceandTechnologyRights DepartmentinOxford,UK:phone:(+44)(0)1865843830;fax:(+44)(0)1865853333; e-mail:[email protected] on-lineviatheElsevierhomepage(http://www.elsevier.com),byselecting ‘CustomerSupport’andthen‘ObtainingPermissions’ BritishLibraryCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary LibraryofCongressCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheLibraryofCongress ISBN0750666471 ForinformationonallElsevierButterworth-Heinemannpublications visitourwebsiteathttp://books.elsevier.com TypesetbyIntegraSoftwareServicesPvt.Ltd,Pondicherry,India www.integra-india.com PrintedandboundinItaly Working together to grow libraries in developing countries www.elsevier.com | www.bookaid.org | www.sabre.org Contents Preface Welcome to the CIM coursebooks ix Unit 1 Introduction to marketing planning 1 Introduction 1 The marketing planning process 2 Marketing Planning in context 2 Understanding the aims and objectives of Marketing Planning and achieving your learning outcomes 4 The importance of reading 5 Approaching the Marketing Planning examination 6 An overview of the strategy and planning hierarchy 7 Corporate planning – what is it? 8 Marketing strategy – what is it? 10 Planning – what is it? 12 Relationship marketing with the wider public and society 15 Marketing and social responsibility 16 Legislation 18 The rise in consumerism 19 Social response to consumerist pressure 19 Ethical issues for consumers and marketers 20 Ethical implications for the marketing mix 21 Unit 2 The marketing audit 25 Introduction 25 Conducting a marketing audit 26 Stage 1 – Analysis of the macro environment 30 Stage 2 – Analysis of the micro environment 35 Identifying key opportunities 46 Developing a marketing information system 49 Unit 3 Marketing planning, implementation and control 53 Introduction 53 How to take the marketing audit to the planning process 54 Stage 3 – The setting of objectives 55 The balanced scorecard 57 Gap analysis 61 Formulation of the marketing strategy 63 Market segmentation and competitive positioning 71 The role of a marketer in positioning 81 The marketing plan 82 Implementation of the marketing plan 83 A supportive and effective marketing structure 87 The control process 94 Unit 4 Promotional operations 101 The marketing mix in the context of marketing planning 101 Profiling marketing segments for promotional activities 103 v Contents Push and pull strategy 103 Promotional operations and the planning framework 104 Aims and objectives of the promotional communications process 105 Branding 106 Brand values 107 The promotional mix 112 Advertising 114 Advertising and the marketing mix 116 Sales promotions 117 Sales promotion techniques 118 Retailer to consumer sales promotions 120 Manufacturer to consumer sales promotions 120 Public relations 123 Public relations and attitude change? 124 Public relations techniques 125 Direct and interactive marketing 126 Objectives of direct marketing 127 Database marketing 128 Direct marketing techniques 129 Telemarketing 130 Sponsorship 132 Personal selling 135 Unit 5 Product operations 139 Product operations 139 Product management 143 The product life cycle 144 Managing the product life cycle 146 Product portfolio planning tools 148 New product development 153 The new product development process 154 The product adoption process 157 Targeting decision-makers 161 Unit 6 Price operations 164 Introduction 164 Price perception and the customer 165 Perspective of price and the organization 165 Pricing in relation to demand 166 Influences on price 166 Correlating price with value 168 Strategic pricing determinants 169 Price sensitive markets as a determinant 170 Pricing objectives and strategies 174 Strategic pricing 175 Tactical pricing strategies 176 Eight stages to establishing a price 178 The route to setting higher prices 178 Unit 7 Place operations 181 Introduction 181 Influences on distribution 182 Marketing issues for distribution 183 Distribution channels 183 Channel members 184 Why use intermediaries? 185 The distribution channel and the customer 187 vi Contents Selecting the channels of distribution 188 Intermediary selection criteria 188 The balance of power within the distribution channel 189 Vertical channel integration 191 Horizontal channel integration 192 Physical distribution management 192 Push and pull strategies 194 The impact of the Internet on channel decisions 195 Evaluating channel effectiveness 200 Unit 8 Managing marketing relationships 203 Introduction 203 Relationship marketing 204 From transactional to relationship marketing 204 The scope of marketing relationships 206 Planning for relationship management 207 Customer retention management 210 The marketing mix for customer retention management 213 Managing internal marketing relationships 214 The relationship marketing plan 217 Unit 9 International marketing 219 Introduction 219 Why go international? 220 Levels of international marketing 220 The international marketing environment 222 Know your markets 225 Understanding the external marketplace 226 Understanding consumer and business buying behaviour 227 International research 227 Developing an international marketing information system 227 Acquiring primary research 230 Potential barriers to entry 232 The implications on marketing plans 233 Globalization 235 Unit 10 Industrial/business-to-business, FMCGs and services marketing (including the services mix) 240 Business-to-business marketing 241 Developing a marketing strategy for FMCGs 251 Marketing of services 255 Unit 11 Not-for-profit, SMEs and virtual marketing 269 Charities – not-for-profit marketing 269 What is a non-profit-making organization? 273 Marketing for SMEs 279 The virtual marketing environment 282 Appendices 1 Guidance on examination preparation 290 2 Assignment-based assessment 302 3 Answers and debriefings 319 4 Sample exam questions and answers 336 5 Past examination papers and examiners’ reports 364 6 Curriculum information and reading list 397 Index 408 vii Preface welcome to the CIM coursebooks An introduction from the academic development advisor Inthelast2yearswehaveseensomesignificantchangestoCIMMarketingqualifications.The changes have been introduced on a year-on-yearbasis, with Certificate changes implemented in 2002, and the Professional Diploma in Marketing being launched in 2003. The Professional PostgraduateDiplomainMarketingwaslaunchedin2004.Thenewqualificationsarebasedon the CIM Professional Marketing Standards developed through research with employers. Professional Postgraduate Diploma in Marketing ↓ Professional Diploma in Marketing ↓ Professional Certificate in Marketing ↓↓ Introductory Certificate in Marketing Studynote#CIM2005 As a result 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 examinations, so we hope you will find this help. ThereareanumberofnewauthorsandindeedSeniorExaminersintheseries,whohavebeen commissioned for their CIM course 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. ix