Marketing Strategy and Competitive Positioning

585 Pages·2017·13.557 MB·English

by  Hooley, Graham

MARKETING STRATEGY & COMPETITIVE POSITIONING
Sixth Edition
Marketing Strategy and Competitive Positiowning 6e deals with the process of developing and
implementing a marketing strategy. The book focuses on competitive positioning at the heart of Sixth Edition
marketing strategy and includes in-depth discussion of the processes used in marketing to achieve
competitive advantage.
MARKETING STRATEGY
The book is primarily about creating and sustaining superior performance in the marketplace.
It focuses on the two central issues in marketing strategy formulation – the identification of
target markets and the creation of a differential advantage. In doing that, it recognises the emergence M & COMPETITIVE
of new potential target markets born of the recession and increased concern for climate change;
A
and it examines ways in which firms can differentiate their offerings through the recognition of
R
environmental and social concerns. K
POSITIONING
E
T
I
N
New to this edition
G
(cid:127)
Updated to reflect the on-going global economic crisis and its impact on business and marketing. S Graham Hooley
(cid:127) T
New coverage including the impact of emerging market on innovation, the perverse customer as a
R
market force, the new realities in competing through services and market analysis and segmentation. A Nigel F. Piercy
(cid:127) T
Updated chapters on strategic customer management and strategic alliances.
E
(cid:127) Increased emphasis on competing through innovation including new business models such as G Brigitte Nicoulaud
Uber, Netflix and new types of retailing. Y
John M. Rudd
(cid:127) &
Updates vignettes at the beginning of chapters focusing on companies such as Amadeus,

Mastercard and Samsung Pay and including discussion questions. C
(cid:127) O
New cases throughout the book including Ryanair, Amazon and Lego.
M
(cid:127)
Up-dated online resources include an Instructor’s Manual and PowerPoint slides for instructors,
P
along with additional case studies for students. E
(cid:127) T
The book is ideal for undergraduate and postgraduate students taking modules in Marketing
I
Strategy, Marketing Management and Strategic Marketing Management. T
I
V
E

P
Graham Hooley is Emeritus Professor of Marketing at Aston University. He is a past President of O
the European Marketing Academy, Fellow of the Chartered Institute of Marketing, British Academy S
of Management, EMAC and the Higher Education Academy. I
T
I
Nigel F. Piercy was previously Professor of Marketing & Strategic Management & Associate O
Dean at Warwick Business School, Warwick University. N
I
N
Brigitte Nicoulaud is Senior Teaching Fellow at Aston Business School.
G
John M. Rudd is a Professor of Marketing and Head of the Marketing Group at Warwick
Business School.
Sixth
Edition
NH
io
c
o
o
l
ue
Cover photograph: Ben Pruchnie/Getty Images www.pearson-books.com ly
a
u
P
d
i
e
Rr
c
uy
d
d
CVR_HOOL7310_06_SE_CVR.indd 1 14/12/2016 12:31
Marketing Strategy
& CoMpetitive
poSitioning
A01_HOOL7310_06_SE_FM.indd 1 04/01/2017 18:30
A01_HOOL7310_06_SE_FM.indd 2 04/01/2017 18:30
Sixth edition
Marketing Strategy
& CoMpetitive
poSitioning
Graham Hooley Nigel F. Piercy
• •
Brigitte Nicoulaud John M. Rudd
•
Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong
Tokyo • Seoul • Taipei • New Delhi • Cape Town • São Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan
A01_HOOL7310_06_SE_FM.indd 3 04/01/2017 18:30
Pearson Education Limited
Edinburgh Gate
Harlow CM20 2JE
United Kingdom
Tel: [phone]
Web: www.pearson.com/uk
First published in 1993 as Competitive Positioning: The key to market success (print)
Second edition published 1998 by Prentice Hall Europe (print)
Third edition 2004 (print)
Fourth edition 2008 (print)
Fifth edition 2012 (print)
Sixth edition published 2017 (print and electronic)
© Prentice Hall International (UK) Ltd 1993, 1998
© Pearson Education Limited 2004, 2008, 2012, 2017 (print and electronic)
The rights of Graham Hooley, Nigel Piercy, Brigitte Nicoulaud and John M. Rudd to be identified as
authors of this work has been asserted by them in accordance with the Copyright,
Designs and Patents Act 1988.
The print publication is protected by copyright. Prior to any prohibited reproduction, storage
in a retrieval system, distribution or transmission in any form or by any means, electronic,
mechanical, recording or otherwise, permission should be obtained from the publisher or,
where applicable, a licence permitting restricted copying in the United Kingdom should be obtained
from the Copyright Licensing Agency Ltd, Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN.
The ePublication is protected by copyright and must not be copied, reproduced, transferred,
distributed, leased, licensed or publicly performed or used in any way except as specifically
permitted in writing by the publishers, as allowed under the terms and conditions under which
it was purchased, or as strictly permitted by applicable copyright law. Any unauthorised distribution
or use of this text may be a direct infringement of the authors’ and the publisher’s rights and those
responsible may be liable in law accordingly.
All trademarks used herein are the property of their respective owners. The use of
any trademark in this text does not vest in the author or publisher any trademark
ownership rights in such trademarks, nor does the use of such trademarks imply any
affiliation with or endorsement of this book by such owners.
Pearson Education is not responsible for the content of third-party internet sites.
ISBN: 978-1-292-01731-0 (print)
978-1-292-01734-1 (PDF)
978-1-292-17145-6 (ePub)
British Library Cataloguing-in-Publication Data
A catalogue record for the print edition is available from the British Library
Library of Congress Cataloging-in-Publication Data
A catalog record for the print edition is available from the Library of Congress
10 9 8 7 6 5 4 3 2 1
20 19 18 17 16
Print edition typeset in 10/12pt Sabon MT Pro by SPi Global
Print edition printed and bound in Slovakia by Neografia
NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION
A01_HOOL7310_06_SE_FM.indd 4 04/01/2017 18:30
Brief Contents
Preface xi
Acknowledgements xiii
Publisher’s acknowledgements xiv
PArt 1 MARKETING STRATEGY
3
1 MARKET-LED STRATEGIC MANAGEMENT 4
2 STRATEGIC MARKETING PLANNING 28
PArt 2 COMPETITIvE MARKET ANALYSIS
53
3 THE CHANGING MARKET ENvIRONMENT 54
4 CUSTOMER ANALYSIS 88
5 COMPETITOR ANALYSIS 106
6 UNDERSTANDING THE ORGANISATIONAL RESOURCE BASE 130
PArt 3 IDENTIFYING CURRENT AND
FUTURE COMPETITIvE POSITIONS
157
7 SEGMENTATION AND POSITIONING PRINCIPLES 158
8 SEGMENTATION AND POSITIONING RESEARCH 188
9 SELECTING MARKET TARGETS 214
PArt 4 COMPETITIvE POSITIONING STRATEGIES
237
10 CREATING SUSTAINABLE COMPETITIvE ADvANTAGE 238
11 COMPETING THROUGH THE NEW MARKETING MIx 268
12 COMPETING THROUGH INNOvATION 298
13 COMPETING THROUGH SUPERIOR SERvICE
AND CUSTOMER RELATIONSHIPS 332
PArt 5 IMPLEMENTING THE STRATEGY
363
14 STRATEGIC CUSTOMER MANAGEMENT AND THE STRATEGIC
SALES ORGANISATION 365
15 STRATEGIC ALLIANCES AND NETWORKS 400
A01_HOOL7310_06_SE_FM.indd 5 04/01/2017 18:30
vi Brief contents
16 STRATEGY IMPLEMENTATION AND INTERNAL MARKETING 429
17 CORPORATE SOCIAL RESPONSIBILITY AND ETHICS 460
PArt 6 CONCLUSIONS
499
18 TWENTY-FIRST CENTURY MARKETING 500
References 521
Index 545
A01_HOOL7310_06_SE_FM.indd 6 04/01/2017 18:30
Contents
Preface xi PArt 2
Acknowledgements xiii COMPETITIvE MARKET
Publisher’s acknowledgements xiv
ANALYSIS
PArt 1 ChAPter 3
MARKETING STRATEGY THE CHANGING MARKET ENvIRONMENT 54
Introduction 55
3.1 A framework for macro-environmental analysis 56
ChAPter 1 3.2 The economic and political environment 57
MARKET-LED STRATEGIC MANAGEMENT 4 3.3 The social and cultural environment 59
Introduction 5 3.4 The technological environment 63
3.5 Changes in marketing infrastructure
1.1 The marketing concept and market orientation 6
1.2 The resource-based view of marketing 12 and practices 64
3.6 New strategies for changing
1.3 Organisational stakeholders 14
1.4 Marketing fundamentals 19 macro-environments 66
3.7 The Five Forces model of industry
1.5 The role of marketing in leading strategic
management 23 competition 68
Summary 25 3.8 The product life cycle 72
Case study: Lego builds new dimension 3.9 Strategic groups 75
with digital vision 25 3.10 Industry evolution and forecasting 78
3.11 Environmental stability 80
3.12 SPACE analysis 82
ChAPter 2
3.13 The Advantage Matrix 84
STRATEGIC MARKETING PLANNING 28 Summary 85
Introduction 29 Case study: Food group shifts strategy
2.1 Defining the business purpose or mission 30 to volume growth 86
2.2 The marketing strategy process 33
2.3 Establishing the core strategy 34 ChAPter 4
2.4 Creation of the competitive positioning 43 CUSTOMER ANALYSIS 88
2.5 Implementation 46
Summary 50 Introduction 89
Case study: Amazon eyes online sales 4.1 What we need to know about customers 89
boost through ‘Fire’ smartphone 50 4.2 Marketing research 92
4.3 The marketing research process 100
4.4 Organising customer information 102
Summary 104
Case study: Balderton plugs into teenagers’
attention spans 105
A01_HOOL7310_06_SE_FM.indd 7 04/01/2017 18:30
viii contents
ChAPter 5
Summary 185
COMPETITOR ANALYSIS 106
Case study: Nestlé refines its arsenal
Introduction 107 in the luxury coffee war 186
5.1 Competitive benchmarking 108
5.2 The dimensions of competitor analysis 110 ChAPter 8
5.3 Choosing good competitors 122 SEGMENTATION AND POSITIONING
5.4 Obtaining and disseminating
RESEARCH 188
competitive information 124
Summary 127 Introduction 189
Case study: Adidas kicks off US drive 8.1 A priori segmentation approaches 190
to close in on Nike 128 8.2 Post hoc/cluster-based segmentation
approaches 194
8.3 Qualitative approaches to positioning
ChAPter 6
research 200
UNDERSTANDING THE ORGANISATIONAL
8.4 Quantitative approaches to positioning
RESOURCE BASE 130
research 202
Introduction 131 Summary 211
6.1 Marketing resources as the foundation Case study: A passion that became a brand 212
for differentiation 132
6.2 value-creating disciplines 133 ChAPter 9
6.3 The resource-based view of the firm 135 SELECTING MARKET TARGETS 214
6.4 Creating and exploiting marketing assets 139
6.5 Developing marketing capabilities 147 Introduction 215
6.6 Dynamic marketing capabilities 149 9.1 The process of market definition 216
6.7 Resource portfolios 151 9.2 Defining how the market is segmented 218
6.8 Developing and exploiting resources 152 9.3 Determining market segment attractiveness 220
Summary 153 9.4 Determining current and potential strengths 227
Case study: Family tradition in domestic 9.5 Making market and segment choices 229
partnership 154 9.6 Alternative targeting strategies 231
Summary 233
Case study: No-frills Ryanair faces
test with Business Plus 234
PArt 3
IDENTIFYING CURRENT
PArt 4
AND FUTURE COMPETITIvE
COMPETITIvE POSITIONING
POSITIONS
STRATEGIES
ChAPter 7
SEGMENTATION AND POSITIONING ChAPter 10
PRINCIPLES 158 CREATING SUSTAINABLE COMPETITIvE
ADvANTAGE 238
Introduction 159
7.1 Principles of competitive positioning 160 Introduction 239
7.2 Principles of market segmentation 163 10.1 Using organisational resources
7.3 The underlying premises to create sustainable competitive
of market segmentation 163 advantage 239
7.4 Bases for segmenting markets 164 10.2 Generic routes to competitive advantage 241
7.5 Segmenting consumer markets 165 10.3 Achieving cost leadership 242
7.6 Segmenting business markets 176 10.4 Achieving differentiation 245
7.7 Identifying and describing market segments 180 10.5 Sustaining competitive advantage 253
7.8 The benefits of segmenting markets 181 10.6 Offensive and defensive competitive
7.9 Implementing market segmentation 182 strategies 255
A01_HOOL7310_06_SE_FM.indd 8 04/01/2017 18:30
contents ix
PArt 5
Summary 266
Case study: volvo’s heart will ‘remain IMPLEMENTING
in Sweden’ 267 THE STRATEGY
ChAPter 11
ChAPter 14
COMPETING THROUGH THE NEW
STRATEGIC CUSTOMER MANAGEMENT
MARKETING MIx 268
AND THE STRATEGIC SALES
Introduction 269 ORGANISATION 365
11.1 The market offer 270
11.2 Pricing strategies 280 Introduction 366
14.1 Priorities for identifying strategic
11.3 Communications strategies 285
11.4 Distribution strategies 290 sales capabilities 369
14.2 The new and emerging competitive
11.5 The extended marketing mix – people,
processes and physical evidence 292 role for sales 372
11.6 New businesses and business models 293 14.3 The strategic sales organisation 375
Summary 295 14.4 Strategic customer management tasks 382
Case study: Sensory ploys and the scent 14.5 Managing the customer portfolio 384
of marketing 296 14.6 Dealing with dominant customers 386
Summary 397
Case study: Power of the ‘mummies’ key
ChAPter 12 to Nestlé’s strategy in DR Congo 398
COMPETING THROUGH INNOvATION 298
ChAPter 15
Introduction 299
STRATEGIC ALLIANCES AND NETWORKS 400
12.1 Innovation strategy 300
12.2 New products 314 Introduction 401
12.3 Planning for new products 317 15.1 Pressures to partner 402
12.4 The new product development process 320 15.2 The era of strategic collaboration 406
12.5 Speeding new product development 326 15.3 The drivers of collaboration strategies 407
12.6 Organising for new product development 326 15.4 Network forms 411
Summary 329 15.5 Alliances and partnerships 413
Case study: Apple moves into fashion 15.6 Strategic alliances as a competitive force 417
business with Watch launch 330 15.7 The risks in strategic alliances 419
15.8 Managing strategic alliances 420
ChAPter 13 Summary 425
Case study: UPS and FedEx turn focus
COMPETING THROUGH SUPERIOR
SERvICE AND CUSTOMER to consumer behaviour 426
RELATIONSHIPS 332
ChAPter 16
Introduction 334
STRATEGY IMPLEMENTATION
13.1 The goods and services spectrum 337
AND INTERNAL MARKETING 429
13.2 Service and competitive positioning 339
13.3 Relationship marketing 342 Introduction 430
13.4 Customer service 347 16.1 The strategy implementation challenge
13.5 Providing superior service 347 in marketing 433
13.6 Customer relationship management 351 16.2 The development of internal marketing 436
13.7 E-service quality 352 16.3 The scope of internal marketing 437
13.8 Measuring and monitoring customer 16.4 Planning for internal marketing 447
satisfaction 354 16.5 Cross-functional partnership as internal
Summary 357 marketing 450
Case study: Property portals hand control 16.6 Implementation and internal marketing 456
to homeowners 358 Summary 457
A01_HOOL7310_06_SE_FM.indd 9 04/01/2017 18:30