Table Of Content

Strategic Marketing: Planning and Control This page intentionally left blank Strategic Marketing: Planning and Control Third edition Graeme Drummond John Ensor Ruth Ashford AMSTERDAM• BOSTON• HEIDELBERG• LONDON• NEWYORK• OXFORD PARIS• SANDIEGO• SANFRANCISCO• SINGAPORE• SYDNEY• TOKYO Butterworth-Heinemann is an imprint of Elsevier Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP 30 Corporate Drive, Suite 400, Burlington, MA01803, USA First edition 1999 Second edition 2001 Copyright © 1999, 2001, 2008 Published by Elsevier Ltd. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone ((cid:2)44) (0) 1865 843830; fax ((cid:2)44) (0) 1865 853333; e-mail: [email protected]. Alternatively you can submit your request online by visiting the Elsevier web site at http://elsevier.com/locate/permissions, and selecting Obtaining permission to use Elsevier material Notice No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or oper- ation of any methods, products, instructions or ideas contained in the material herein. British Library Cataloguing-in-Publication Data Acatalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Acatalog record for this book is available from the Library of Congress ISBN: 978-07506-8271-8 For information on all Butterworth-Heinemann publications visit our web site at books.elsevier.com Typeset by Charon Tec Ltd (AMacmillan Company), Chennai, India www.charontec.com Printed and bound in Slovenia Contents Preface xi Acknowledgements xvi 1 The strategic perspective 1 About this chapter 3 Introduction 3 What is strategy? 4 Towards strategic management 6 Change – shaping strategy 8 Balanced scorecard approach 9 The role of marketing within strategy 10 What is marketing strategy? 12 Summary 15 Part 1 Strategic Analysis 17 2 External analysis 19 About this chapter 21 Introduction 21 Scanning 22 Macro-environmental analysis 24 Industry analysis 26 Competitor analysis 29 Problems in identifying competitors 33 The market analysis 33 Summary 34 3 Competitive intelligence 37 About this chapter 39 What is competitive intelligence? 39 The CI cycle 41 Sources of competitive information 44 Summary 45 4 Segmentation 47 About this chapter 49 Introduction 49 Why segment? 49 The segmentation process 50 Consumer behaviour 51 Consumer segmentation criteria 57 vi Contents Profile variables 58 Behavioural variables 66 Psychographic variables 69 Organisational/industrial segmentation techniques 73 Organisational buyer behaviour 73 The Webster–Wind framework 76 The Sheth framework 76 Approaches to organisational market segmentation 81 Summary 84 5 Internal analysis 87 About this chapter 89 Introduction 89 Organisational capabilities 90 Organisational assets 90 Organisational competencies 92 Initial corporate wide internal audit 94 The internal marketing audit 95 The innovation audit 96 Auditing tools 101 Summary 107 6 Developing a future orientation 109 About this chapter 111 Introduction 111 Forecasting 111 Trend extrapolation 113 Modelling 114 Intuitive forecasting 114 Consensus forecasting 115 Scenario planning 119 Market sensing 124 Strategic questions 124 People involved 125 Summary 127 Part 2 Formulation of Strategy 129 7 Strategic intent 131 About this chapter 133 Introduction 133 Mission 133 Statement of strategic intent 138 Nature of support for the mission statement 138 Goals and objectives 140 Hierarchy of objectives 142 Long-term versus short-term goals 143 The balanced scorecard 144 Gap analysis 146 Summary 146 Contents vii 8 Strategy formulation 149 About this chapter 151 Strategy formulation – an overview 151 Competitive advantage 152 Identifying sources of competitive advantage 156 Experience and value effects 158 Industry position 160 Product and market strategies 166 Strategic wear-out 172 Difficult market conditions 172 Summary 174 9 Targeting, positioning and brand strategy 177 About this chapter 179 Introduction 179 Evaluating market segments 179 Establishing organisational capability 183 Strategic alignment of assets and competencies (targeting) 185 The strategic nature of making target segment choices 188 Positioning 189 Perceptual mapping 190 Positioning alternatives 193 Creating brand equity 195 Brand valuation 195 Strategic brand management 198 Brand name strategy 201 Combined brand strategies 203 Brand extension 205 Brand stretching 205 Brand revitalisation 206 Brand repositioning 206 Brand extinction 208 Summary 209 10 Product development and innovation 211 About this chapter 213 The strategic agenda 213 The nature of products and product development 213 Why do products fail? 220 Managing innovation 221 Risk and the innovation dilemma 223 Summary 226 11 Alliances and relationships 229 About this chapter 231 Introduction 231 Alliances 231 Relationship marketing 235 Developing relationships 237 Summary 239 viii Contents 12 The strategic marketing plan 241 About this chapter 243 Corporate and marketing plans 243 Corporate planning 243 Marketing plans: strategy or tactics? 245 Why does planning matter? 246 Barriers to successful planning 247 The structure of a strategic marketing plan 249 Approaches to marketing planning 251 Summary 251 Part 3 Strategic Implementation 253 13 Strategic implementation 255 About this chapter 257 Implementation: stressing the importance 257 Success versus failure 257 Fundamental principles 259 Assessing ease of implementation 262 People, power and politics 264 Internal marketing 266 Applying project management techniques 267 Summary 270 14 Control 273 About this chapter 275 Introduction 275 Control: the basic principles 275 What makes an effective control system? 277 Management control 279 Financial control 280 Performance appraisal 285 Benchmarking 286 Controlling marketing performance 287 Summary 289 Part 4 Contemporary Issues in Strategic Marketing 291 15 Customer relationship management 293 About this chapter 295 Introduction 295 Strategic versus operational CRM 299 What makes a strong relationship? 299 Lifetime customer value 301 Summary 301 16 Marketing ethics and strategic marketing decision making 303 About this chapter 305 Introduction 305 Political philosophy and ethical decision making 305 Contents ix Ethical frameworks 307 Moral reasoning 311 Part 5 Teaching strategic marketing 315 17 Problem-based learning 317 About this chapter 319 What is problem-based learning? 319 Applicability of PBLto strategic marketing 321 Writing effective PBLproblems 321 PBLtasks in the classroom 322 Example of PBLfor strategic marketing 322 Index 325