Table Of Content

Marketing Management in Practice 2006–2007 Marketing Management in Practice 2006–2007 John Williams and Tony Curtis AMSTERDAM(cid:2)BOSTON(cid:2)HEIDELBERG(cid:2)LONDON(cid:2)NEWYORK(cid:2)OXFORD PARIS(cid:2)SANDIEGO(cid:2)SANFRANCISCO(cid:2)SINGAPORE(cid:2)SYDNEY(cid:2)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 AcataloguerecordforthisbookisavailablefromtheLibraryofCongress ISBN-13:978-0-7506-8011-0 ISBN-10:0-7506-8011-3 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 Management and marketing roles 1 Management 2 CIM Professional Marketing Standards 2 What form do the CIM Professional Marketing Standards take? 3 What is management? 5 Key marketing roles and tasks 28 Unit 2 Recruiting the team 39 Teams 40 Online recruitment 74 Unit 3 Developing the team 78 Stages of team development 79 Roles in a team 80 Team leadership 83 Unit 4 Managing change 112 Introduction 112 Factors driving change 113 The change problem 126 Making change 127 Change management: The skill requirements 129 Planning for a change programme 130 Change management tools 132 Problem-solving, team-building (PSTB) 134 Internal marketing 135 How to plan for a change programme 139 Unit 5 Project management 142 Introduction 144 What is a project? 144 Feasibility studies 147 Stages of a project 148 Unit 6 Knowledge management and market research 174 Knowledge management 176 Marketing environment 179 Relationship marketing (RM) and customer relationship management (CRM) 182 Stages in the market research process 189 The market research industry 208 v Contents Unit 7 Developing and implementing marketing plans 215 Introduction 216 Marketing plan components 218 Case study 1 – Diamond badges 230 Market analysis 231 Case study 2 – Stormbreaker 233 PESTLE analysis 234 Porter’s five forces analysis 235 Unit 8 Marketing communications and customer service 243 Introduction 244 Formats for a marketing communications plan 244 Designing a communications campaign 245 Determining the marketing communications budget 251 Customer service 270 Appendices 1 Guidance on examination preparation 285 2 Assignment-based assessment 297 3 How to pass the case study exam 314 4 Answers and debriefings 326 5 Past examination papers and examiners’ reports 331 6 Curriculum information and reading list 360 Index 371 vi Preface welcome to the CIM coursebooks An introduction from the academic development advisor 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. Therevisionstotheseriesthisyearincludecontinueddevelopmentat–CertificateinMarketing and Professional Diploma in Marketing, as well as at Professional Postgraduate Diploma in Marketing level. In particular 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. Wearecertainthatyouwillfindthesecoursebookshighlybeneficialintermsofthecontentand assessmentopportunitiesandastudytoolthatwillprepareyouforbothCIMexaminationsand continuous/integrativeassessmentopportunities.Theywillguideyouinalogicalandstructured waythroughthedetailofthesyllabus,providingyouwiththerequiredunderpinningknowledge, understanding and application of theory. The editorial team and authors wish you every success as you embark upon your studies. Karen Beamish Academic Development Advisor How to use these coursebooks Everyone who has contributed to this series has been careful to structure the books with the examsinmind.Eachunit,therefore,coversanessentialpartofthesyllabus.Youneedtowork through the complete coursebook systematically to ensure that you have covered everything you need to know. This coursebook is divided into units each containing a selection of the following standard elements: o Learning objectives – tell you what you will be expected to know, having read the unit. o Syllabus references – outline what part of the syllabus is covered in the module. vii Preface o Study guides – tell you how long the unit is and how long its activities take to do. o Questionsaredesignedtogiveyoupractice–theywillbesimilartothoseyougetinthe exam. o Answers (at the end to the book) – give you a suggested format for answering exam questions.Rememberthereisnosuchthingasamodelanswer–youshouldusethese examples only as guidelines. o Activities – give you a chance to put what you have learned into practice. o Debriefings (at the end of the book) – shed light on the methodologies involved in the activities. o Hintsandtips–aretipsfromtheseniorexaminer,examinerorauthorandaredesigned to help you avoid common mistakes made by previous candidates and give you guidance on improving your knowledge base. o Insights – encourage you to contextualize your academic knowledge by reference to real-life experience. o Key definitions – highlight and explain the key points relevant to that module. o Definitions – may be used for words you must know to pass the exam. o Summaries – cover what you should have picked up from reading the unit. o Furtherstudy–providesdetailsofrecommendedreadinginadditiontothecoursebook. Whileyouwillfindthateachsectionofthesyllabushasbeencoveredwithinthistext,youmight find that the order of some of the topics has been changed. This is because it sometimes makes more sense to put certain topics together when you are studying, even though they might appear in different sections of the syllabus itself. If you are following the reading and other activities, your coverage of the syllabus will be just fine, but don’t forget to follow up with trade press reading! 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: 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. viii Preface 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. Focus of the module This module is assessed by either examination or Integrated Project. The module enables students to practise the development and implemention of marketing plans at an operational levelinorganizations.Akeypartofthemoduleisworkingwithinateamtodeveloptheplanand managing teams, implementing the plan by undertaking marketing activities and projects. Its aim is to assist students in integrating and applying knowledge from all the modules at Professional Diploma in Marketing, particularly as part of a team. The Marketing Management in Practice syllabus requires a broad and practical demonstration of marketing atanoperationallevelandanawarenessofthestrategiccontext.Itprovidesanopportunityfor students to develop and implement an operational marketing plan, so applying, as part of a team,thetheoryofresearch,planningandmarketingcommunicationsprovidedintheprevious threemodules.Thismodulealsoprovidesthefinalassessmentofstudents’abilitytocreatean operational marketing plan. As such, it forms an important measure of the students’ ability to meet organizations’ requirements of an operational marketer. Marketing Management in Practice is about developing and managing teams to add value to the organization’s activities and deliver effective results. Like members of other functions and disciplines within organizations, marketers work towards departmental and broader organizational objectives. They work in teams, both within the marketing function and, importantly, with people in other functions. The context within which marketers are operating is continually changing as a result of both external and internal influences. No organization is detached from international influences, even if the organization does not have to deal with international customers. Organizations source materials from around the globe, access international markets from a desk, compete with other organizations from around the world, and imitate global behaviour. It is therefore appropriate in this module to cover international issues as part of everyday marketing life in organizations.Marketersandmarketingmanagersmustbeabletoworkeffectivelythemselves, for example managing time and problem solving. They must also be able to manage and motivate people and teams to produce results. Using Adair’s model of leadership, effective team performance is contingent on a balance between: o The needs of the task. o The needs of the individuals within the team. o The maintenance needs of the team as a whole. ThesyllabusforthemoduleusesAdair’sconcept.Itprovidesunderpinningtheoryonmanaging teamstohelpwithmanagingindividualneedsandteamneedstogetthemostfromtheteam.It alsoprovidesbasicprojectmanagementtechniquestohelpwithmanagingthetask.Thesetwo elements provide the final skills and knowledge for marketers to develop and implement ix