Strategic Marketing Planning

643 Pages·2006·5.43 MB·English

Strategic Marketing Planning
Dedication
This book is dedicated to the authors’ wives – Rosie and Gillian – and to Ben Gilligan for their
support while it was being written.
Strategic Marketing
Planning
Colin Gilligan
Professor of Marketing
Sheffield Hallam University
and
Richard M. S. Wilson
Professor of Business Administration
The Business School
Loughborough University
AMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORD
PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO
Butterworth-Heinemann
An imprint of Elsevier
Linacre House, Jordan Hill, Oxford OX2 8DP
200 Wheeler Road, Burlington, MA 01803
First published 2003
Copyright © 2003 Colin Gilligan and Richard M. S. Wilson. All rights reserved
The right of Colin Gilligan and Richard M. S. Wilson to be
identified as the authors of this work has been asserted
in accordance with the Copyright, Designs and Patents Act 1988
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British Library Cataloguing in Publication Data
Gilligan, Colin
Strategic marketing planning
1. Marketing – Planning 2. Marketing – Management
I. Title II. Wilson, R. M. S. (Richard Malcolm Sano), 1946–
658.8'02
Library of Congress Cataloguing in Publication Data
Gilligan, Colin.
Strategic marketing planning/Colin Gilligan and Richard M. S. Wilson. – 1st ed.
p.cm.
Includes bibliographical references and index.
ISBN 0 7506 2246 6 (alk. paper)
1. Marketing – Management. I. Wilson, R. M. S. (Richard Malcolm Sano) II. Title.
HF5415.13.G49 2003
658.8'02–dc21 2003045188
ISBN 0 7506 2246 6
For information on all Butterworth-Heinemann publications
visit our website at www.bh.com
Composition by Genesis Typesetting, Rochester, Kent
Printed and bound in Italy
Contents
Preface xi
Overview of the book’s structure xiii
1 Introduction 1
1.1 Learning objectives 3
1.2 The nature of marketing 3
1.3 The management process 8
1.4 Strategic decisions and the nature of strategy 10
1.5 The marketing/strategy interface 19
1.6 Summary 39
2 Strategic marketing planning and the marketing plan 41
2.1 Learning objectives 43
2.2 Introduction 43
2.3 The role of strategic marketing planning 43
2.4 So what is marketing strategy? 53
2.5 The three dimensions of planning 56
2.6 Summary 72
Stage One: Where are we now? Strategic and marketing analysis 75
3 Marketing auditing and the analysis of capability 77
3.1 Learning objectives 79
3.2 Introduction 79
3.3 Reviewing marketing effectiveness 84
3.4 The role of SWOT analysis 88
3.5 Competitive advantage and the value chain 107
3.6 Conducting effective audits 114
3.7 Summary 124
vi CONTENTS
4 Segmental, productivity and ratio analysis 127
4.1 Learning objectives 129
4.2 Introduction 129
4.3 The clarification of cost categories 130
4.4 Marketing cost analysis: aims and methods 131
4.5 An illustration of segmental analysis 137
4.6 An alternative approach to segmental analysis 139
4.7 Customer profitability analysis 140
4.8 Marketing experimentation 155
4.9 The nature of productivity 156
4.10 The use of ratios 158
4.11 Analysing ratios and trends 160
4.12 Ratios and interfirm comparison 163
4.13 A strategic approach 167
4.14 Summary 170
5 Approaches to competitor analysis 173
5.1 Learning objectives 175
5.2 Introduction 175
5.3 Against whom are we competing? 182
5.4 Identifying and evaluating competitors’ strengths and weaknesses 188
5.5 Evaluating competitive relationships and analysing how organizations compete 195
5.6 Identifying competitors’ objectives 201
5.7 Identifying competitors’ likely response profiles 202
5.8 Competitor analysis and the development of strategy 204
5.9 The competitive intelligence system 206
5.10 The development of a competitive stance: the potential for ethical conflict 210
5.11 Summary 217
6 Approaches to customer analysis 219
6.1 Learning objectives 221
6.2 Introduction 221
6.3 A simple model of buyer behaviour 223
6.4 Factors influencing consumer behaviour 225
6.5 The buying decision process 235
6.6 The rise of the new consumer and the implications for marketing planning 243
6.7 Organizational buying behaviour 248
CONTENTS vii
6.8 The growth of relationship marketing 263
6.9 Summary 277
Appendix: The drivers of consumer change 278
Stage Two: Where do we want to be? Strategic direction and strategy formulation 285
7 Missions and objectives 289
7.1 Learning objectives 291
7.2 Introduction 291
7.3 The purpose of planning 294
7.4 Establishing the corporate mission 298
7.5 Influences on objectives and strategy 311
7.6 Guidelines for establishing objectives and setting goals and targets 316
7.7 The development of strategies 334
7.8 Summary 337
8 Market and environmental analysis 339
8.1 Learning objectives 341
8.2 Introduction 341
8.3 Analysing the environment 343
8.4 The nature of the marketing environment 351
8.5 The evolution of environmental analysis 361
8.6 The political, economic, social and technological environments 364
8.7 Coming to terms with industry and market breakpoints 375
8.8 Coming to terms with the very different future: the implications for
marketing planning 379
8.9 Approaches to environmental analysis and scanning 387
8.10 Summary 393
9 Market segmentation, targeting and positioning 395
9.1 Learning objectives 397
9.2 Introduction 397
9.3 The nature and purpose of segmentation 398
9.4 Approaches to segmenting markets 404
9.5 Factors affecting the feasibility of segmentation 406
9.6 Approaches to segmentation 408
9.7 The bases for segmentation 411
viii CONTENTS
9.8 Geographic and geodemographic techniques 412
9.9 Demographic segmentation 416
9.10 Behavioural segmentation 422
9.11 Psychographic and lifestyle segmentation 425
9.12 Approaches to segmenting industrial markets 430
9.13 Market targeting 434
9.14 Deciding on the breadth of market coverage 436
9.15 Product positioning 440
9.16 Summary 444
10 The formulation of strategy 1: analysing the product portfolio 447
10.1 Learning objectives 449
10.2 Introduction 449
10.3 The development of strategic perspectives 449
10.4 Models of portfolio analysis 454
10.5 Market attractiveness and business position assessment 461
10.6 Criticisms of portfolio analysis 468
10.7 Summary 471
11 The formulation of strategy 2: generic strategies and the significance
of competitive advantage 473
11.1 Learning objectives 475
11.2 Introduction 475
11.3 Types of strategy 476
11.4 Porter’s three generic competitive strategies 478
11.5 Competitive advantage and its pivotal role in strategic marketing planning 486
11.6 Summary 515
12 The formulation of strategy 3: strategies for leaders, followers, challengers
and nichers 517
12.1 Learning objectives 519
12.2 Introduction 519
12.3 The influence of market position on strategy 519
12.4 Strategies for market leaders 521
12.5 Marketing strategy and military analogies: lessons for market leaders 532
12.6 Strategies for market challengers 540
12.7 Strategies for market followers 557
CONTENTS ix
12.8 Strategies for market nichers 560
12.9 Military analogies and competetive strategy: a brief summary 562
12.10 The inevitability of strategic wearout (or, the law of marketing gravity
and why dead cats only bounce once) 573
12.11 The influence on strategy of product evolution and the product life cycle 578
12.12 Achieving above-average performance and excellence 584
12.13 Summary 590
Bibliography 593
Index 609