Strategic Marketing Management

Strategic Marketing Management : Contents

Detailed Contents

Part One: Introduction to Strategic Marketing

1. STRATEGIC MARKETING MANAGEMENT – AN INTRODUCTION 3
Marketing 4
Concepts in Marketing 5
Role of Marketing in Business 5
Definition of Strategy 6
Components of a Strategy 7
Levels of Strategy 9
Evolution of Strategic Management 12
Phase I 12
Phase II 13
Phase III 13
Phase IV 14
Components of Strategic Management 14
Strategic Marketing 17
Advantages of Strategic Marketing 17
Strategic Marketing Process 18

2. MARKETING STRATEGY AND PLANNING 26
Deciding How to Compete 27
Vision 27
Identifying the Competitive Advantage 31
Market-Orientation 33
Components of Market-orientation 34
Developing Market-orientation 35
Business Strategy and Marketing 36
Marketing Situation Analysis 37
Analyzing Markets and Competitors 37
Segmenting Markets 38
Continuous Learning about Markets 38
Designing Marketing Strategy 38
Targeting and Positioning Strategy 39
Implementing a Marketing Strategy 39
Marketing Planning and Marketing Plans 41
Strategic Marketing Planning and Tactical Marketing Planning 41
Marketing Planning 42
Marketing Plan 48

3. BUSINESS STRATEGY AND COMPETITIVE ADVANTAGE 53
Organizational Change 54
Business Strategy 54
Organizational Restructuring 55
Competitive Advantage 56
Obtaining Competitive Advantage 57
Analysis of Competitive Position 60
Developing a Sustainable Competitive Advantage 65
Market Entry Barriers 69
Business Strategy 72
Corporate Mission 72
Core Competence 73
Corporate Development Alternatives 76
Composition of a Business 79
Strategy Analysis and Choice 80
Strategic Analysis in an SBU 83

Part Two: Marketing Analysis

4. MARKETING AUDIT AND SWOT ANALYSIS 87
Marketing Audit 88
Benefits of Marketing Audit 89
Variables of Marketing Audit 89
Evolution of Marketing Audit 91
First Stage 91
Second Stage 92
Third Stage 93
Fourth Stage 93
Fifth Stage 94
Marketing Audit in the 21st Century 95
Components of Marketing Audit 98
Marketing Environment Audit 98
Marketing Strategy Audit 99
Marketing Organization Audit 100
Marketing Systems Audit 100
Marketing Productivity Audit 101
Marketing Function Audit 102
Problems and Pitfalls in Marketing Audit 103
SWOT Analysis 105
Purpose and Use of SWOT Analysis 106
Developing a SWOT Analysis 108

5. MARKETING COSTS AND FINANCIAL ANALYSIS 113
Analysing Marketing Costs 114
Marketing Costs 114
Importance of Analyzing Marketing Costs 115
Types of Costs 116
Steps Involved In Marketing Cost Analysis 116
Challenges In Marketing Cost Analysis 117
Measuring Marketing Productivity 117
Customer Profitability Analysis 117
Process of Customer Profitability Analysis 118
Financial Situation Analysis 119
Key Financial Ratios 119
Contribution Analysis 123
Financial Analysis Model 128
Productivity 129

Part Three: Analysis of Marketing Situation

6. MARKET AND ENVIRONMENTAL ANALYSIS 133
The Nature and Structure of Marketing Environment 134
Structure of the Marketing Environment 135
Environmental Scanning and Analysis 140
Process of Environmental Scanning 141
Evolution of Environmental Scanning 143
Environmental Scanning Models 143
Pest Framework 144
Political (and Legal) Factors 145
Economic Factors 145
Social Factors 146
Technological Factors 146
Benefits of Environmental Scanning 146
Barriers to Effective Scanning 147

7. COMPETITOR ANALYSIS 150
Competitive Forces 151
Threats from New Entrants 151
Bargaining Power of the Suppliers 152
Bargaining Power of the Buyers 153
Threat of Substitute Products 153
Rivalry among Competitors 153
Types of Competition 153
Competitor Analysis 154
Importance of Competitor Analysis 154
Components of Competitor Analysis 156
Information Gathering 158
Observation 158
Secondary Data 159
Primary Data 159
Analyzing the Competition 159
Identifying the Competitors' Objectives 160
Types of Competitors 161
Process of Competitor Analysis 162
Competitive Information System (CIS) 163
Pitfalls in the Use of Competitive Intelligence 164

8. CUSTOMER ANALYSIS 167
Buyer Behavior Model 168
The Buying Decision Process 169
Identifying the Problem 169
Searching for Information 170
Evaluating the Alternatives 171
Purchase Processes and Post Purchase Analysis 172
Roles in the Consumer Buying Decision Process 173
Types of Buying Behavior 173
Understanding Buying Behavior 174
Factors influencing Consumer Buying Decision Process 175
Organizational Buying Behavior 178
Buying Center 178
Stages of Buying Decision Process 180
Factors influencing Organizational Buying Behavior 180
Dimensions of Organizational Buying Behavior 183
Characteristics of Organizational Transactions 183
Major Concerns of Organizational Buyers 184
Methods of Organizational Purchases 184
Types of Organizational Buying 185
Influence of the Product on Marketing Strategy 186
Relationship Marketing 186
Importance of Relationship Marketing 188
Developing Relationship Marketing 188

9. LEARNING IN MARKETING ORGANIZATION 191
Learning Process About Markets 192
Open Approach to Learning 193
Organization’s Information Network 194
Information Evaluation and Interpretation 195
Information Storage 195
Right Knowledge of the Markets 195
The Learning Organization 197
Types of Organizational Learning 198
Organizational Learning Process 199
Sources of Information and its Analysis 202
Marketing Research 202
Information Systems 203
Competitor Intelligence System 204
Marketing Information System 204
Purpose of Marketing Information Systems 205
Elements of Marketing Information System 206
Marketing Research Information 207
Computerized Information Systems 208
Management Information Systems 209
Database Systems 210
Decision Support Systems 211

Part Four: Formulating Marketing Strategy

10. SEGMENTING MARKETS 217
Markets and Marketing Approaches 218
Segmentation, Targeting, and Positioning 219
Market Segmentation 220
Approaches for Segmenting Markets 222
Requirements for Effective Segmentation 222
Developments of Segments 223
Niche Marketing 224
Bases for Segmentation 225
Geographic and Geo-demographic Segmentation 225
Demographic Segmentation 226
Behavioral Segmentation 228
Psychographic Segmentation 229
Multi-Attribute Segmentation 230
Segmenting Industrial Markets 231
Strategic Analysis of Market Segments 232
Customer Analysis 232
Competitor Analysis 233
Positioning Analysis 233

11. TARGETING AND POSITIONING STRATEGIES 235
Market Targeting Strategy 236
Targeting Strategies 237
Factors Affecting Targeting Decisions 238
Ethics in Targeting 238
Deciding on Segments To Enter 238
Emerging Markets 240
Growth Markets 240
Mature and Declining Markets 241
Global Markets 242
Positioning 242
Positioning Concept 244
Types of Positioning Strategies 246
Choosing the Positioning Strategy 247
Positioning Process 247
Selecting a Positioning Strategy 249
Determining Positioning Effectiveness 249
Problems in Positioning 250

12. RELATIONSHIP STRATEGIES 252
Interorganizational Relationships 253
Diverse and Turbulent Environment 254
Skills and Resource Disparities 255
Interorganizational Arrangements 256
Basis for Entering into Collaborative Relationships 257
Types of Interorganizational Relationships 259
Distribution Channel Relationships 260
End-user/Customer Relationships 260
Relationships within the Organization 261
Collaborative Learning 261
Strategic Alliances 262
End Results of Alliances 263
Making Strategic Alliances Work 265
Joint Ventures 266
Global Relationships Among Organizations 267
Hollow Corporation 268
Trading Company 268
Host Government Intervention in MNCs 268

13. GENERIC STRATEGIES 272
Porter's Five Competitive Forces 274
Potential Entry of New Competitors 274
Threat from Substitutes 275
Bargaining Power of Buyers 275
Bargaining Power of Suppliers 275
Competition between Already Existing Firms 276
Porter's Generic Competitive Strategies 276
Cost Leadership Strategy 276
Differentiation Strategy 280
Focus Strategy 280
Risks Associated with Generic Strategies 281
Deciding on the most Suitable Generic Strategy 282
Some Criticisms against Porter’s Generic Strategies 283
Identifying Potential Competitive Advantages 283
Value Chain Analysis 284
Sustaining the Competitive Advantage 285
Influence of Market Position on Strategy 286
Market Leader Strategies 286
Market Challenger Strategies 290
Market Follower Strategies 292
Market Nicher Strategies 292
Market Pioneer Strategies 293
Strategic Wear-Out 295

14. PLANNING FOR NEW PRODUCTS 297
New Product Development 299
Types of New Products 299
Approaches to New Product Development 302
Prerequisites for Effective New Product Development 302
Need For New Product Development 304
Reduction in the Span of Product Life Cycle 304
Opportunity to Increase Profit 305
Gain Competitive Advantage 305
Risks In New Product Development 305
Reasons For Success of New Products 306
Unique and Better-Quality Product 306
Adequate Knowledge about the Market 307
Capability of the Firm 307
Reasons for Failure of New Products 307
Determine the Market Readiness of the Product 308
Rely Less on Test Marketing Results 309
Ensure Right Packaging 309
Access to Number of Suppliers 309
Product Planning as a Customer Satisfaction Process 310
New Product Strategies 311
Developing a New Product Strategy 312
The New Product Development Process 312
Idea Generation 314
Idea Screening 314
Concept Development and Testing 314
Business Analysis 314
Product Development 315
Test Marketing 315
Commercialization 315
Other Issues in New Product Development 315
Technology Transfer 315
Organizational Structure for New Product Development 316
New Product Adoption 316

Part Five: Marketing Program Development

15. PRODUCT BRANDING AND CUSTOMER SERVICE STRATEGIES 321
Nature of Product 323
The Generic Product 323
The Expected Product 323
The Augmented Product 324
The Potential Product 324
Developing Product Strategies 325
Product Differentiation 325
Product Positioning 325
Product Line Expansion and Contraction 326
Trading Up and Trading Down 326
Product Brand Strategy 326
Managing Existing Products 327
Product Decisions 327
Product Life Cycle and Marketing Strategy 330
Branding Strategy 333
Product Line Branding 334
Corporate Branding 334
Mixed Branding 334
House of Brands 334
Responsibility for Making Product Decisions 336
Product Quality Management 337
Total Quality Management 337
Customer service strategy 340
Branding Strategy and Customer Service 341

16. PRICING STRATEGY 343
Role and Significance of Price 344
Approaches to Price Setting 345
Cost of Production 345
Product Life Cycle 346
Government Regulations in Pricing 347
Nature of Competition 347
Nature of Consumers 348
Pricing Objectives 348
Pricing Strategy 349
Differential Pricing Strategies 350
Competitive Pricing Strategies 351
Product Line Pricing Strategies 352
Methods of Pricing 354
Cost Plus Pricing 354
Target Return Pricing 354
Early Cash Recovery (ECR) Pricing 354
Value Based Pricing 355
Other Considerations in Pricing 355
Study of Consumers 355
Study of Competitors 355
Using Price as a Tactical Weapon 356
Selective Pricing 356
Non-price Measures 357
Preemptive Measures 358
Fight Straight On 358

17. ADVERTISING AND SALES PROMOTION STRATEGIES 360
Promotion Strategy 361
Components of Promotion 362
Developing a Promotion Strategy 363
Budgeting Approaches 365
Advertising Strategy 367
Developing an Advertising Strategy 368
Advertising Objectives 368
Advertising Budgeting 368
Creative Strategy 369
Media Strategy 371
Role of Advertising Agency 374
Sales Promotion Strategies 376
Nature and Scope of Sales Promotion 376
Planning and Managing Sales Promotion 377
Sales Promotion Activities 378
Evaluating the Effectiveness of Sales Promotions 379

18. PUBLIC RELATIONS AND DIRECT MARKETING STRATEGIES 381
Public Relations 382
Public Relations Objectives 382
Public Relations Strategies 383
Public Relations Planning 385
Public Relations in Times of Crises 387
Internet and Public Relations 390
Public Relations Techniques 392
Public Relations Budgets 394
Public Relations – Evaluation and Control 395
Direct Marketing 397
Direct Marketing Objectives 398
Considerations in the Use of Direct Marketing 398
Database: The Key to Direct Marketing 399
Direct Marketing – Evaluation and Control 400

19. SALES FORCE STRATEGIES 402
Developing and Implementing Sales Force Strategy 404
Role of Sales Force 404
Defining the Selling Process 406
Sales Channels 409
Mail Order or Catalogs 410
Tele-Marketing 410
Teleshopping 410
Direct Response through Media 410
Designing the Sales Organization 411
Line Organization 411
Line and Staff Organization 411
Functional Organization 411
Horizontal Organization 411
Product-based Sales Force Specialization 412
Geographic Sales Force Specialization 412
Market Based Sales Force Specialization 412
Role of Sales Force in Sales Organization 413
Managing the Sales Force 413
Selection 413
Training 414
Performance Measurement 414
Motivation 415
Evaluating the Sales Force Performance 417
Personal Selling 419
Personal Selling Objectives 420

20. DISTRIBUTION STRATEGY 422
Strategic Issues in Distribution 423
Issues Related to Marketing Decisions 424
Product Issues 424
Issues Related to Channel Relations 424
Types of Distribution Channels 425
Reverse Channel of Distribution 426
Flexible Distribution Channels 427
Considerations in Distribution Channels 428
Middlemen Considerations 428
Customer Considerations 429
Product Considerations 429
Price Considerations 431
Setting up a Distribution Channel 431
Distribution Intensity 432
Exclusive Coverage 433
Selective Coverage 433
Intensive Coverage 433
Determinants of Distribution Intensity 433
Conflict and Control in Distribution Channels 435
Identifying Channel Conflict 436
Avoidance of a Channel Collapse 436
Managing the Channel 438
Functions Associated with Distribution Management 438
Management of the Distribution Channel 438
International Channels 440
Problems with Local Channel Partners 440

Part Six: Implementing and Managing Marketing Strategy

21. STRATEGIC ISSUES IN MARKETING 447
Organizational Pressures 448
Increasing International Competition 448
Fast Paced Innovations 449
Organizational Restructuring and Mergers and Acquisitions 451
Increased Quality Consciousness 452
Lack of Skilled Workforce 452
Changing Demographics of Consumers 452
Corporate Sustainability 453
Sustainable Development 454
Corporate Social Responsibility 454
Stakeholder Theory 454
Corporate Accountability 454
Problems in the Marketing Department 454
Human Relations Problems 455
Marketing Performance Assessment Problems 455
Coordination Problems 455
Problems in Obtaining Marketing Feedback 458
Problems in Information Handling 458
Issues Related to Marketing Cost 459
Management Issues Associated with Marketing Cost 459
Marketing-Orientation 460
Organization-specific Characteristics of Marketing-orientation 460
Market-specific Characteristics of Market-orientation 461
Planning Orientation 461
Marketing Planning Objectives 461
Marketing Planning Process 461
Organizational Issues 463
Functional and Business Level Marketing Issues in Network Organizations 463
Corporate and Enterprise Level Marketing Issues in Network Organizations 465

22. DESIGNING AN EFFECTIVE MARKETING ORGANIZATION 467
Considerations in Organization Design 468
Internal and External Organizations 469
Vertical Structure 469
Horizontal Relationships 470
Speed of Response 471
Managing the Operating Environment 471
Organizational Design Options 472
Traditional Marketing Organizations 472
New Forms of Marketing Organizations 476
Selecting an Organization Design 478
Organizing Marketing Activities and Structure 478
Marketing Environment and Structure 479
Innovativeness and Structure 480
Global Dimensions of Organizations 480
Considerations in Global Organizations 482
Types of Global Organization Structures 483

23. MARKETING STRATEGY IMPLEMENTATION AND CONTROL 486
Marketing Plan 487
Lack of Adequate Support from Top Management 488
Lack of Support from Line Management 488
Isolating Marketing Planning from Corporate Planning 488
Perceived as Once-a-Year Activity 488
Marketing Strategy Implementation 490
Prerequisites for Effective Implementation 490
Barriers to the Implementation of Marketing Strategy 492
Strategic Evaluation and Control 493
Strategic Marketing Audit 494
Marketing Control 498
Types of Control 498
Corrective Measures 499