Table Of Content

The Marketing Book This Page Intentionally Left Blank The Marketing Book Fifth Edition Edited by MICHAEL J. BAKER OXFORD AMSTERDAM BOSTON LONDON NEW YORK PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO Butterworth-Heinemann An imprint of Elsevier Science Linacre House, Jordan Hill, Oxford OX2 8DP 200 Wheeler Road, Burlington MA 01803 First published 1987 Reprinted 1987, 1990 (twice) Second edition, 1991 Reprinted 1992, 1993 Third edition, 1994 Reprinted 1995, 1997 Fourth edition 1999 Reprinted 2000, 2001 Fifth edition, 2003 Copyright © 2003 Michael Baker. All rights reserved Copyright © 2003 contributors of individual chapters. All rights reserved The right of Michael Baker and the individual contributors to be identified as the authors of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988 No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1T 4LP. Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publisher British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data A catalogue record for this book is available from the Library of Congress ISBN 0 7506 5536 4 For information on all Butterworth-Heinemann publications visit our website at: www.bh.com Composition by Genesis Typesetting, Rochester, Kent Printed and bound in Great Britain Contents List of illustrations xv List of tables xix List of contributors xxiii Preface to the fifth edition xxxiii Part One Organization and Planning for Marketing 1 1 One more time – what is marketing? 3 Michael J. Baker Introduction 3 Marketing as a managerial orientation 4 Marketing myopia – a watershed 5 Life cycles and evolution 7 Marketing misunderstood 8 The marketing function 9 Relationship marketing 11 Summary 14 References 15 Further reading 15 2 Postmodern marketing: everything must go! 16 Stephen Brown Grand opening offer 16 No down payment 17 Money back guarantee 18 Batteries not included 19 Limited time only 22 One careful owner 24 This way up 25 Open other side 27 Closing down sale 28 References 29 Further reading 31 vi Contents 3 Relationship marketing 32 Lisa O’Malley and Caroline Tynan Introduction 32 Relationship marketing defined 33 History of relationship marketing 34 Focal relationships 39 Models of relationship development 40 Critique and emerging issues 44 Conclusion 47 References 48 4 The basics of marketing strategy 53 Robin Wensley Strategy: from formulation to implementation 53 The nature of the competitive market environment 55 The codification of marketing strategy analysis in terms of three strategies, four boxes and five forces 58 The search for generic rules for success amidst diversity 60 Models of competition: game theory versus evolutionary ecology 62 Characterizing marketing strategy in terms of evolving differentiation in time and space 66 Research in marketing strategy: fallacies of free lunches and the nature of answerable research questions 70 The recourse to processes, people and purpose in marketing as well as strategy as a whole 75 The new analytics: resource advantage, co-evolution and agent-based modelling 80 Conclusions: the limits of relevance and the problems of application 81 References and further reading 82 5 Strategic marketing planning: theory and practice 87 Malcolm McDonald Summary 87 Introduction 87 1 The marketing planning process 90 2 Guidelines for effective marketing planning 101 3 Barriers to marketing planning 109 Summary 115 References 116 Further reading 116 Part Two The Framework of Marketing 117 6 Consumer decision making: process, level and style 119 Gordon R. Foxall Introduction 119 The consumer decision process 121 Levels of consumer involvement 125 Contents vii Consumers’ decision styles 127 Implications for marketing management 132 Summary and conclusion 138 References 138 Further reading 140 7 Business-to-business marketing: organizational buying behaviour, relationships and networks 142 Peter W. Turnbull and Sheena Leek Introduction 142 The realities of business markets 144 Organizational buying structures 144 Models of organizational buying behaviour 152 Conclusion 165 References 166 Further reading 169 8 Marketing research 171 John Webb Introduction 171 Definitions of the role of marketing research 172 Types of research 173 The process of marketing research 174 Secondary data 175 Quantitative primary data 177 Questionnaires and their design 180 Qualitative research methods 180 The research process and measurement 184 Attitudes and their measurement 186 Sampling 189 Analysis of the results 192 Presentation of the final report 194 Conclusion 195 References 195 9 Quantitative methods in marketing 197 Luiz Moutinho and Arthur Meidan Introduction 197 Multivariate methods 200 Regression and forecasting techniques 206 Statistical decision theory or stochastic methods 219 Deterministic operational research methods 226 Causal models 235 Hybrid models 236 Network programming models 237 viii Contents Conclusion 240 References 241 Further reading 244 10 Market segmentation 246 Martin Evans Chapter objectives 246 Introduction 246 Historical perspective 247 Segmentation criteria and categories 248 ‘Traditional’ segmentation bases 249 Data-driven segmentation 258 Targeting 276 Positioning 278 Conclusions 280 Review questions 280 References 281 Further reading 282 Part Three Managing the Marketing Function 285 11 Managing the marketing mix 287 Peter Doyle Introduction 287 The traditional approach to the marketing mix 288 The accounting approach to the marketing mix 289 Value-based marketing 291 The marketing mix and shareholder value 294 Making marketing mix decisions 298 Summary 311 References 312 Further reading 313 12 New product development 314 Susan Hart Introduction 314 The process of developing new products 314 The stages of the new product development process 316 Usefulness of models 322 The multiple convergent approach 331 Managing the people in NPD 333 Summary 338 References 338 Further reading 341 Contents ix 13 Pricing 342 Adamantios Diamantopoulos Introduction 342 Is price really that important? 344 The drivers of profit: price, volume and cost 345 Price from the customer’s perspective 348 Understanding price sensitivity 351 Conclusion 356 References 356 14 Selling and sales management 360 Bill Donaldson Introduction 360 The changing role of salespeople 360 The costs of personal selling 362 What we expect salespeople to do – the sales process 363 Sales management issues 366 Conclusion 369 References 370 Further reading 370 15 Brand building 372 Leslie de Chernatony Introduction 372 Spectrum of brand interpretations 373 A model for strategically building brands 383 Summary 392 References 393 Further reading 394 16 The integration of marketing communications 395 Tony Yeshin The blurring of the edges of marketing communications 395 The strategic challenges facing organizations 396 Strategic marketing communications 396 The integration of marketing communications 397 Defining integrated marketing communications 397 The impact of external factors on marketing communications 400 The driving forces behind the growth of integrated marketing communications 404 The impact on marketing communications 405 Relationship marketing 406 The benefits of integrated marketing communications 407