Table Of Content

Strategic Marketing Torsten Tomczak · Sven Reinecke · Alfred Kuss Strategic Marketing Market-Oriented Corporate and Business Unit Planning Torsten Tomczak Alfred Kuss Institute for Customer Insight Marketing Department University of St. Gallen Freie Universität Berlin St. Gallen Berlin Switzerland Germany Sven Reinecke Institute of Marketing University of St. Gallen St. Gallen Switzerland ISBN 978-3-658-18416-2 ISBN 978-3-658-18417-9 (eBook) https://doi.org/10.1007/978-3-658-18417-9 Library of Congress Control Number: 2017951075 Springer Gabler © Springer Fachmedien Wiesbaden GmbH 2018 Translation from the German language edition: Marketingplanung, 7. Aufl. by Torsten Tomczak, Alfred Kuss and Sven Reinecke, © Springer Fachmedien Wiesbaden 2014. Springer Fachmedien Wiesbaden is a part of Springer Science+Business Media. All rights reserved. This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broad- casting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or here- after developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Lektorat: Barbara Roscher Printed on acid-free paper This Springer Gabler imprint is published by Springer Nature The registered company is Springer Fachmedien Wiesbaden GmbH The registered company address is: Abraham-Lincoln-Str. 46, 65189 Wiesbaden, Germany Preface to the English edition of “Marketing Planning” Eighteen years after the publication of the first edition, the seventh edition of our introduc- tory textbook on marketing planning is now available in English. The basic concept of the book, which appears to be well received among students, remains unchanged. Our aim is to present the key elements of the marketing planning process, as well as their relationships, in a way that is concise and easy to understand. The focus tends to lie on integrating approaches from strategic management and marketing rather than on a detailed examination of special points. Numerous aspects of marketing planning have undergone enormous changes in both theory and practice, which has been taken into account throughout the previous editions of this textbook. Reverting back to the book’s basic concept, the seventh edition has been updated and streamlined to achieve greater clarity of presentation. In preparing the English edition, the authors were actively supported by Verena Facundo, Carmen Maier and Annabelle Scharvey who updated the references. The whole book was translated into English by Michael Dollman, with support from the authors as well as Lam Ngo, Gerhard Pikali, Ingrid Schmid and Selina Wilke. Renata Schilling did an excellent job in optimizing and polishing the final translation. Barbara Roscher from Springer-Ver- lag encouraged and supported the authors in her very own way. The three authors prepared this edition in a spirit of friendly cooperation and, of course, take responsibility for any remaining errors and imperfections. April 2017 Torsten Tomczak (University of St. Gallen) Alfred Kuss (Free University Berlin) Sven Reinecke (University of St. Gallen) V Contents 1 Introduction ....................................................... 1 1.1 The Marketing Concept .......................................... 1 1.1.1 From Production Orientation to Marketing Orientation ........... 1 1.1.2 Definitions of the Marketing Concept ......................... 4 1.1.3 Features of Marketing ..................................... 6 1.1.4 Strategic Marketing ....................................... 8 1.2 The Process of Marketing Planning – An Overview .................... 10 1.2.1 The Marketing Mix ....................................... 11 1.2.2 The Role of Brands ....................................... 14 1.2.3 The Process of Marketing Planning and the Structure of this Textbook .......................................... 16 References .................................................... 17 2 The Information Basis of Marketing Planning .......................... 19 2.1 General Information Basis of Marketing Planning ..................... 19 2.1.1 The Product Lifecycle ..................................... 19 2.1.2 The Experience Curve ..................................... 23 2.1.3 Economies of Scale and Economies of Scope ................... 25 2.1.4 Success Factors .......................................... 28 2.2 Environmental and Industry Analysis ............................... 30 2.2.1 Environmental Analysis .................................... 31 2.2.2 Industry Analysis ......................................... 33 2.2.3 Competitive Analysis ...................................... 37 2.3 Corporate Analysis .............................................. 39 2.3.1 Strengths and Weaknesses .................................. 39 2.3.2 Value Chain Analysis ...................................... 40 2.4 Market Research and Aspects of Buyer Behaviour ..................... 42 References .................................................... 47 3 Market-Oriented Corporate Planning ................................. 49 3.1 Competition and Competitive Advantages. . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 VII VIII Contents 3.1.1 Basic Principles ......................................... 49 3.1.2 Characteristics of Markets and Resources as the Basis for the Success of a Firm .................................. 51 3.1.3 Development and Effects of Competitive Advantages ............ 54 3.2 Guidelines Derived from Strategic Corporate Planning ................ 57 3.3 Definition of Business and Market Activities ........................ 59 3.3.1 Relevant Markets, Market Areas and Market Segments .......... 59 3.3.2 Abell’s Approach for Defining Markets ...................... 61 3.3.3 Strategic Business Units .................................. 63 3.3.4 Limits to the Vertical Integration of Companies ................ 65 3.4 Market Selection and Target Portfolio (Where and in Which Direction?) .. 67 3.4.1 From the Current to the Target Portfolio ...................... 67 3.4.2 Portfolio Standard Strategies ............................... 72 3.5 Fundamental Market Strategy Options (How?) ....................... 75 3.5.1 Overview .............................................. 75 3.5.2 Differentiation .......................................... 77 3.5.3 Comprehensive Cost Leadership ............................ 79 3.5.4 Concentration on Special Segments .......................... 80 3.5.5 Outpacing Strategies ..................................... 81 3.6 Timing Aspects of Marketing (When?) ............................. 82 3.6.1 Early or Late Market Entry ................................ 82 3.6.2 Strategic Windows ....................................... 86 3.7 Corporate Brand Management .................................... 87 3.7.1 Basic Principles ......................................... 87 3.7.2 Brand Portfolio Management ............................... 88 3.7.3 Brand Architecture ....................................... 90 3.7.4 Expansion of Brand Competence via Brand Extension ........... 92 References ................................................... 93 4 Market-oriented Business Unit Planning .............................. 97 4.1 Interdependencies Between Corporate Planning, Business Unit Planning and Marketing Mix Planning ......................... 97 4.2 Determining the Growth Strategy ................................. 100 4.2.1 Overview .............................................. 100 4.2.2 The Basic Concept of the Task-Oriented Approach .............. 101 4.2.3 Core Tasks in Marketing .................................. 103 4.3 Core Task Profiles ............................................. 119 4.3.1 Types of Core Task Profiles ................................ 120 4.3.2 Competition-Beating Core Task Profiles ...................... 123 4.4 Cooperations and Networks ...................................... 127 4.5 Positioning ................................................... 130 4.5.1 Overview .............................................. 130 Contents IX 4.5.2 Relationship Between Brand Identity and Brand Positioning ..... 132 4.5.3 The Classical Positioning Model ........................... 133 4.5.4 Active Positioning ...................................... 136 4.5.5 Positioning in the Markets of the End Customer and the Intermediary .................................... 140 4.5.6 Positioning Strategy on Business Unit Level ................. 142 References .................................................. 166 5 Planning the Marketing Mix ....................................... 171 5.1 Overview: Elements and Effects of the Marketing Mix ............... 171 5.2 Product ..................................................... 175 5.2.1 Functions of Products and Services ......................... 175 5.2.2 Structure and Scope of the Product Range or Assortment ........ 177 5.2.3 Decisions on Individual Products and Services ................ 179 5.2.4 Individualisation vs. Standardisation of Products and Services ... 180 5.3 Price ....................................................... 182 5.3.1 Functions and Mechanisms of Pricing ....................... 182 5.3.2 Pricing Goals .......................................... 183 5.3.3 Price Setting ........................................... 185 5.3.4 Price Differentiation and Variation ......................... 189 5.4 Communication .............................................. 191 5.4.1 Functions and Instruments of Communication ................ 191 5.4.2 Communication Instruments .............................. 194 5.4.3 Integrated Marketing Communication ....................... 197 5.5 Distribution ................................................. 198 5.5.1 Functions and Management of Distribution .................. 198 5.5.2 Distribution Organs ..................................... 199 5.5.3 Management of Distribution Channels ...................... 201 5.6 Planning the Marketing Mix .................................... 204 5.6.1 Planning the Marketing Mix as a Complex Decision-Making Problem .............................................. 204 5.6.2 Problems of Optimising the Marketing Mix .................. 207 5.6.3 Guideline Planning of the Marketing Mix .................... 210 5.6.4 Detailed Planning of the Marketing Mix ..................... 216 5.7 Summary ................................................... 218 References .................................................. 218 6 Marketing Implementation and Management Control .................. 223 6.1 Marketing Implementation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 6.1.1 Characterisation of the Implementation Challenge ............. 223 6.1.2 Marketing Organisation .................................. 225 6.1.3 The Marketing Budget ................................... 229 6.1.4 Corporate Culture and Employees .......................... 232 X Contents 6.2 Marketing Management Control ................................. 234 6.2.1 Marketing Management Control as Quality Assurance for Management ........................................ 234 6.2.2 Tasks of Marketing Management Control .................... 234 6.3 The Balanced Scorecard as an Aid for Implementation and Control. . . . . . 239 References .................................................. 243 Further Readings ................................................... 245 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247 About the Authors Prof. Dr. Torsten Tomczak is Director of the Institute for Customer Insight (FCI-HSG) and Professor of Marketing at the University of St. Gallen. Prof. Dr. Sven Reinecke is Director of the Institute of Marketing at the University of St.Gallen (IfM-HSG). Prof. Dr. Alfred Kuss is Professor (em.) at the Marketing Department of Freie Universität Berlin. XI