CIM Coursebook 06 07 Strategic Marketing Decisions (CIM Coursebook) (CIM Coursebook)

319 Pages·2006·2.74 MB·English

by  Isobel Doole

Strategic Marketing Decisions
2006–2007

Strategic Marketing
Decisions
2006–2007
Isobel Doole and Robin Lowe
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
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Contents
Preface Welcome to the CIM coursebooks ix
Unit 1 Introduction to strategic marketing decisions 1
Introduction 4
Changing dimensions of competitive advantage 5
The changing dimensions of strategic marketing decisions 8
The role of life cycles 9
How organizations compete to achieve customer preference 12
The role of competitive relationships 13
Unit 2 Challenging traditional strategic thinking 17
Drivers for realignment in strategic thinking 19
Significance and application of new marketing thinking to strategic decisions 21
The concept of Value-based marketing 25
Alternative approaches to strategic marketing decisions 27
Issues of strategic marketing decision-making in small- and medium-sized
enterprises 28
Unit 3 Competitive strategy as a learning process 32
Competitive strategy as an emergent learning process 34
The role of knowledge management 37
Building a knowledge management system 43
An effective learning organization 44
The role of Internet-based strategies in developing a sustainable competitive
advantage 44
Unit 4 Developing corporate-wide marketing innovation 49
The nature and impact of innovation 51
Categories of innovation and the marketing implications 53
Sources of innovation and opportunity identification 55
The innovation process 58
Risk-taking in bureaucratic and entrepreneurial organizations 61
Managing innovation and creating the right culture 62
Customer-led Internet marketing 62
Unit 5 Decisions for a new strategic marketing direction 68
Strategy evaluation: the reasons for marketing strategy failure and wear-out 70
The reasons for strategy failure and underperformance 70
Redefining the business 73
Generic decisions for a successful strategy 75
STP decisions 76
Alternative marketing approaches 81
Adopting the right competitive stance 83
v
Contents
Unit 6 Strategic decisions for global development 88
Building competitive advantage through globalization 90
Leveraging capability in global markets 93
The lessons of best (and worst) practices in global firms 94
Programme and process standardization 94
Leveraging corporate learning across geographically diverse markets 98
Building competitive capability in SMEs for global markets 99
Unit 7 Developing innovative strategies to achieve global fast growth 105
Entrepreneurial and fast growth strategies 106
Strategy decisions for a new direction 110
e-Business innovations 115
Unit 8 Building portfolio value: branding, products and services 123
Adding value through branding 125
Product and service portfolio decisions 132
New product and service developments (NPD) 135
Success and failure in NPD 137
Unit 9 Integrated communications and relationship development 141
The purpose of communications 142
The integration of communications 144
Success and failure in marketing communications 146
Marketing communications planning 147
Developing profitable long-term marketing relationships 153
Unit 10 Using the extended organization to add portfolio value 159
The value-chain and supply-chain management 160
Distribution channel management 162
Routes to market 165
Extending the organization through alliances and network marketing 167
Pricing and costing 168
Pricing decisions 170
Portfolio integration decisions 173
Unit 11 Financial appraisal for strategic marketing decisions 177
Assessing owner/shareholder value 178
Financial analysis for long-term decision-making 180
Financial analysis for short-term decision-making 183
Financial techniques for evaluating performance 186
Unit 12 Achieving a sustainable competitive advantage 190
Approaches to measuring performance 191
Managing stakeholder expectations 196
Issues of corporate social responsibility 198
Ethical implications of decision-making 199
vi
Contents
Appendices
1 Guidance on examination preparation 203
2 Answers and debriefings 215
3 Sample exam questions and answers 250
4 Past examination papers and examiners’ reports 273
5 Curriculum information and reading list 295
Index 304
vii

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.
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
way through the details of the syllabus, providing you with the required underpinning knowl-
edge, understanding and application of theory.
The editorial team and the 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.
Each unit of this coursebook contains a selection of the following standard elements:
o Learning objectives tell you what you will be excepted to know, having read the unit.
o Syllabus references outline what part of the syllabus is covered in the module.
o Study guides tell you how long the unit is and how long its activities take to do.
ix