The New Global Marketing Reality

298 Pages·2004·1.096 MB·English

by  Richard Brookes, Roger Palmer (auth.)

The New Global
Marketing Reality
Richard Brookes and Roger Palmer
The New Global Marketing Reality
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The New Global
Marketing Realit y
Richard Brookes
and
Roger Palmer
© Richard Brookes and Roger Palmer 2004
Softcover reprint of the hardcover 1st edition 2004 978-1-4039-0520-8
All rights reserved.No reproduction,copy or transmission of this publication may be
made without written permission.
No paragraph of this publication may be reproduced,copied or transmitted save
with written permission or in accordance with the provisions of the Copyright,
Designs and Patents Act 1988,or under the terms of any licence permitting limited
copying issued by the Copyright Licensing Agency,90 Tottenham Court Road,
London W1T 4LP.
Any person who does any unauthorised act in relation to this publication may be
liable to criminal prosecution and civil claims for damages.
The authors have asserted their rights to be identified as the authors of this work in
accordance with the Copyright,Designs and Patents Act 1988.
First published 2004 by
PALGRAVE MACMILLAN
Houndmills,Basingstoke,Hampshire RG21 6XS and
175 Fifth Avenue,New York,N.Y.10010
Companies and representatives throughout the world
PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan
division of St.Martin’s Press,LLC and of Palgrave Macmillan Ltd.Macmillan®is a
registered trademark in the United States,United Kingdom and other countries.
Palgrave is a registered trademark in the European Union and other countries.
ISBN 978-1-349-50979-9 ISBN 978-0-230-50857-6 (eBook)
DOI 10.1057/9780230508576
This book is printed on paper suitable for recycling and made from fully managed
and sustained forest sources.
A catalogue record for this book is available from the British Library.
A catalog record for this book is available from the Library of Congress.
Editing and origination by
Curran Publishing Services,Norwich
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C
ONTENTS
List of figures ix
List of tables x
Acknowledgements xi
Introduction 1
The Changing Nature of Marketing 1
Why Another Book on Marketing,Then? 3
Out Target Audience 4
How This Book was Put Together 5
Did You Feel the Earth Move? 8
Our Central Message 11
The Structure of the Book 13
Chapter 1 Understanding Business Today 19
Chapter Objectives 19
The Pressure of Pressure 19
Uncovering Practical Theory 21
A Model of Contemporary Marketing Practices 28
The Dynamic Nature of Relationships 34
Chapter 2 Explanations of Marketing:Evolving,Changing or
Competing? 45
Chapter Objectives 45
The Evolution of Marketing 45
No New Customers 50
The Momentum for Relationship Marketing 51
A Synthesis of Relationship Marketing 54
The Nordic School of Services 54
The IMP Tradition 55
The Anglo-Australian Approach 57
Mid-Range Perspectives 60
Relationship Marketing in Practice 62
Researching Relationship Marketing 65
Relationship and Managerial Dimensions 66
Chapter 3 The New Business Reality 71
Chapter Objectives 71
v
vi Contents
The Pressures to Grow 71
How the Goths Got to the Gates of the General Motors
Empire 73
Chapter 4 Growth and Value 99
Chapter Objectives 99
The Attraction of External Growth Strategies 100
The Hard Lesson of M&As 101
The Lesson of DaimlerChrysler 103
Honda:A Better Bet,and Sloan’s Fourth Wave? 105
The Pressure to Deliver Value 106
Strategy and the Art of Creating Value 108
The New Marketing Reality 120
Creating Value in the Knowledge Economy 122
What Do Customers Now Want? 124
Chapter 5 Finding and Creating Advantage 129
Chapter Introduction 129
The Strategy Debate 129
Structure,Conduct,Performance 130
Resources 131
Emergent Strategy and Game Theory 134
Marketing Advantage 137
The Consumer Franchise 137
The Customer Franchise 140
Network Efficiency 145
The Interaction of Power and Advantage 148
Chapter 6 Organizational Transformation 155
Objectives 155
Creating the Future 155
The View From the Top 158
Inflection Points 160
Did Compaq Miss an Inflection Point? 161
Compaq’s Strategy Comes Unstuck 162
Now,it’s Hewlett-Packard’s Time 164
Information Technologies 166
IT and Early Predictions of an Organizational
Tranformation 167
Now,the Digital Revolution and the Internet as an
Inflection Point 168
Contents vii
Organizing for the Internet 172
What Became of IBM? 173
The Impacts of IT-Enabled Interactivity on Marketing
Practices 176
Does the Internet Really Change Everything? 178
Chapter 7 Contemporary Marketing and the Five Changes
Challenge 183
Objectives 183
All Companies Face Change 184
Change 1:Financial Accountability,Loyalty and
Customer Value Management 185
Change 2:Increasing Emphasis on Service Aspects of All
Products 192
Change 3:Organizational Transformation 197
Change 4:Retailer Power and Systemic Relationships 200
Change 5:Interactive Media and Mass Customization 204
Integrating the Five Changes 207
Chapter 8 Pluralism in Marketing Practice 211
Chapter Introduction 211
Challenging the Paradigm 211
The Role of Research 213
The Contemporary Marketing Practice Study 214
Contemporary Marketing Practice Findings 218
International Comparisons 221
Pluralistic Marketing Practice 223
Marketing Practice and Business Sector 228
Buyer and Seller Interaction 230
Managerial Implications 233
Chapter 9 The Future of Marketing 237
Objectives 237
IT and Predictions of Organizational Transformation 238
The Internet,IT-Enabled Interactivity and Organizational
Transformation 239
Differing Views on the Extent of ITImpacts on Marketing
Practices 241
The Internet and B2B Relationships 242
IT-Enabled Interactivity and CRM 244
Internal Relationship Marketing 246
viii Contents
IT and Internal Relationship Marketing 248
Managing Change Processes 249
The CMP Study of Managers’Perceptions of the Roles of IT 253
Has the Internet Really Changed Everything? 258
Managerial Implications 258
Internal RelationshipManagement and Change
Management 261
References 263
Index 285
L F
IST OF IGURES
I.1 Elements of a simple business model 6
I.2 The new pluralism in contemporary marketing practices 12
I.3 The change model and pressures on marketing 13
I.4 The structure of the book 14
1.1 Model of contemporary marketing 29
1.2 The relationship continuum 35
1.3 The relationship spiral 37
1.4 The relationship triangle 41
2.1 The evolution of marketing 46
2.2 Global automotive industry – rationalization over time 51
2.3 The six market model 58
3.1 Automobile company value propositions 74
4.1 Direction for strategic development 102
4.2 The drivers of value in a business 109
4.3 The value net 124
5.1 From strategy to implementation 136
5.2 Marketing advantage 137
5.3 Power within the supply chain 150
5.4 Power and advantage 151
5.5 Types of decision involvement units 152
6.1 The new computer industry 175
7.1 Integrating the five changes (telecommunications company) 185
7.2 Retail consolidation in Europe,market share of top three retailers 201
7.3 Forecast of European retailer concentration:expected share of
the top five food retailers in Europe in 2005 203
8.1 Elements of a research strategy 214
8.2 The marketing domain hierarchy 217
8.3 Transactional and relational marketing correlations 220
8.4 Correlations between five marketing practices 224
8.5 Argentina:marketing practice and firm archetypes 228
8.6 The buyer–seller interaction model 232
8.7 Marketing practice and the underpinning role of IT 235
ix