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Marketing Management, 3rd edn
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Table of Contents

Contents Guided tour Preface About the author Author's acknowledgements Publisher's acknowledgements 1 Introduction 1.1 Introduction 1.2 The marketing management process 1.3 The traditional (transactional) marketing (TM) concept versus the relationship marketing (RM) concept 1.4 Balancing the transactional and relationship concepts throughout the book 1.5 How the RM concept influences the traditional marketing concept 1.6 Different organisational forms of RM 1.7 Summary Case study 1.1 Hunter Boot Ltd: the iconic British brand is moving into exclusive fashions Questions for discussion References PART I ASSESSING THE COMPETITIVENESS OF THE FIRM (INTERNAL) Part 1 Video case study Tata Nano: competitiveness of the world's cheapest car Introduction to Part I 2 Identification of the firm's core competences Learning objectives 2.1 Introduction 2.2 Roots of competitive advantage 2.3 The resource-based view (RBV) Exhibit 2.1 Honda's competences in small engines 2.4 Market orientation view (MOV) compared to the resource-based view 2.5 The value chain-based view (VBV) Exhibit 2.2 Nike's value chain Exhibit 2.3 The value chain of Acme Axles, Inc. 2.6 Value shop and the 'service value chain' 2.7 Internationalising the value chain 2.8 The virtual value chain 2.9 Experimental marketing Exhibit 2.4 Ikea's use of AR 2.10 Summary Case study 2.1 Zalando: how can the online apparel retailer turn financial losses into positive profits? Questions for discussion References 3 Development of the firm's competitive advantage Learning objectives 3.1 Introduction 3.2 General sources of competitive advantage 3.3 Introduction of a holistic model of competitiveness: from macro to micro level 3.4 Analysis of national competitiveness (the Porter diamond) 3.5 Competition analysis in an industry 3.6 Value chain analysis 3.7 Blue ocean strategy and value innovation Exhibit 3.1 Value innovation at hotel chain Formule 1 3.8 Outsourcing - a strategic decision framework based on customers' evaluation Exhibit 3.2 Sony, an outsourcing company 3.9 Summary Case study 3.1 Nintendo Wii: Nintendo's Wii took first place on the world market - but it didn't last Questions for discussion References PART II ASSESSING THE EXTERNAL MARKETING SITUATION Part II Video case study Muller: Muller yoghurts are penetrating the US market Introduction to Part II 4 Customer behaviour Learning objectives 4.1 Introduction 4.2 Consumer B2C decision making 4.3 Influences on consumers' decision making Exhibit 4.1 Example of loyalty: store loyalty versus brand loyalty Exhibit 4.2 Brand-switching strategy in times of recession - the case of Skoda Superb 4.4 Organisational B2B decision making 4.5 Influences on the buying process 4.6 Customer-perceived value and customer satisfaction 4.7 Customisation - tailoring the offer to the individual customer 4.8 Summary Case study 4.1 Spotify: the online music-streaming company is expanding globally Questions for discussion References 5 Competitor analysis and intelligence Learning objectives 5.1 Introduction 5.2 Who are our competitors? 5.3 How are the competitors interacting? Exhibit 5.1 McDonald's and Burger King in an asymmetric interaction 5.4 How do we learn about our competitors? 5.5 What are the strengths and weaknesses of our competitors? 5.6 Market commonality and resource commonality 5.7 What are the objectives and strategies of our competitors? 5.8 What are the response patterns of our competitors? Exhibit 5.2 Role play in CI as a predictor of competitive behaviour 5.9 Six steps to competitor analysis 5.10 How can we set up an organisation for competitor analysis and CI? Exhibit 5.3 Counterintelligence done by Johnson Controls against Honeywell 5.11 Summary Case study 5.1 Cereal Partners Worldwide (CPW): the number two world player is challenging the number one - Kellogg Questions for discussion References 6 Analysing relationships in the value chain Learning objectives 6.1 Introduction Exhibit 6.1 Value chain of Braun (Oral-B) 6.2 The value net Exhibit 6.2 Value net of Braun (Oral-B) 6.3 Relationships with customers Exhibit 6.3 Speedo's relations with its retailers 6.4 Relationships with suppliers 6.5 Relationships with complementors/partners Exhibit 6.4 Irn-Bru's distributor alliance (Y coalition) with Pepsi Bottling Group (PBG) in Russia 6.6 Relationships with competitors Exhibit 6.5 Value net - cooperation/competition between competitors within each airline alliance. The three alliances are competing against each other 6.7 Internal marketing (IM) relationships 6.8 Summary Case study 6.1 ARM: challenging Intel in the world market of computer chips Questions for discussion References PART III DEVELOPING MARKETING STRATEGIES Part III Video case study Nivea: segmentation of the sun-care market Introduction to Part III 7 SWOT analysis, strategic marketing planning and portfolio analysis Learning objectives 7.1 Introduction 7.2 Corporate mission 7.3 SWOT analysis 7.4 Corporate objectives 7.5 Corporate growth strategy 7.6 SBU marketing strategy/portfolio analysis 7.7 Introduction to portfolio models 7.8 The Boston Consulting Group's growth-share matrix - the BCG model 7.9 General Electric market attractiveness - business position matrix (GE matrix) 7.10 International portfolio analysis 7.11 Portfolio analysis of supplier relationships 7.12 Summary Case study 7.1 Red Bull: the global market leader in energy drinks is considering further market expansion Questions for discussion References 8 Segmentation, targeting, positioning and competitive strategies Learning objectives 8.1 Introduction Exhibit 8.1 Segmentation in the pet food market 8.2 Segmentation in the B2C market Exhibit 8.2 Segmentation in work (salty snacks in the workplace) 8.3 Segmentation in the B2B market 8.4 Target marketing 8.5 Positioning Exhibit 8.3 Bjoern Borg's brand positioning and business modelling in the international apparel market 8.6 Generic competitive strategies Exhibit 8.4 Good-enough markets in China - the case of Duracell batteries 8.7 Offensive and defensive competitive strategies 8.8 Summary Case study 8.1 LEGO Friends: the world's third largest toy manufacturer is moving into the girls' domain Questions for discussion References 9 CSR strategy and the sustainable global value chain Learning objectives 9.1 Introduction 9.2 Different levels of ethical behaviour 9.3 Social marketing as part of CSR 9.4 Cause-related marketing Exhibit 9.1 Examples of cause marketing campaigns 9.5 Identification of stakeholders in CSR 9.6 Drivers of CSR 9.7 The sustainable global value chain (SGVC) 9.8 CSR and international competitiveness 9.9 Poverty (BOP market) as a 'market' opportunity Exhibit 9.2 Grameen Danone Foods opens plant in Bangladesh 9.10 The 'green' market as a business opportunity Exhibit 9.3 Unilever's introduction of 'Comfort One Rinse' saves water 9.11 Summary Case study 9.1 YouthAIDS: social marketing in a private, non-profit organisation Questions for discussion References PART IV DEVELOPING MARKETING PROGRAMMES Part IV Video case study Tequila Avion: a premium tequila is introduced 10 Establishing, developing and managing buyer-seller relationships Learning objectives 10.1 Introduction 10.2 Building buyer-seller relationships in B2B markets 10.3 Relationship quality 10.4 Building buyer-seller relationships in B2C markets Exhibit 10.1 Husqvarna's consumer wheel Exhibit 10.2 Employee commitment drives value at Southwest Airlines 10.5 Managing loyalty Exhibit 10.3 Developing service loyalty at Volkswagen Exhibit 10.4 Best Buy's approach to loyalty, compared to competitor Circuit City 10.6 The CRM path to long-term customer loyalty and advocacy 10.7 Key account management (KAM) 10.8 Summary Case study 10.1 Dassault Falcon: the private business jet, Falcon, is navigating in the global corporate business sector Questions for discussion References 11 Product and service decisions Learning objectives 11.1 Introduction 11.2 The components of the product offer 11.3 Service strategies 11.4 New product development (NPD) 11.5 The product life cycle Exhibit 11.1 Threadless T-shirt crowdsourcing business 11.6 New products for the international market 11.7 Product cannibalisation 11.8 Product positioning 11.9 Branding Exhibit 11.2 Roundup - a global brand for multiple markets Exhibit 11.3 Kellogg is under pressure to produce Aldi's own-label goods 11.10 Brand equity 11.11 Implications of the Internet for product decisions Exhibit 11.4 Ducati motorcycles - product development through Web communities 11.12 'Long tail' strategies 11.13 Summary Case study 11.1 British American Tobacco (BAT): launch of the e-cigarette Vype Questions for discussion References 12 Pricing decisions Learning objectives 12.1 Introduction 12.2 Pricing from an economist's perspective Exhibit 12.1 Johnny Walker whisky faced positive price elasticity in Japan 12.3 Pricing from an accountant's perspective 12.4 A pricing framework 12.5 Market value-based pricing versus cost-based pricing Exhibit 12.2 Value-based pricing in Bossard - the '15/85 rule' 12.6 Pricing services versus physical products 12.7 Pricing new products 12.8 Price changes 12.9 Experience curve pricing 12.10 Product line pricing 12.11 Price bundling 12.12 Pricing for different segments 12.13 Relationship pricing 12.14 Pricing on the Internet 12.15 Communicating prices to the target markets 12.16 Summary Case study 12.1 Harley-Davidson: is the image justifying the price level in a time of recession? Questions for discussion References 13 Distribution decisions Learning objectives 13.1 Introduction 13.2 The basic functions of channel participants 13.3 Distributor portfolio analysis 13.4 Developing and managing relationships between manufacturer and distributor 13.5 External and internal determinants of channel decisions 13.6 The structure of the channel 13.7 Multiple distribution-channel strategy 13.8 Managing and controlling distribution channels 13.9 Implications of the Internet for distribution decisions 13.10 Online retail sales 13.11 Smartphone marketing 13.12 Channel power in international retailing Exhibit 13.1 The 'banana split' model 13.13 Mystery shopping in retailing 13.14 Summary Case study 13.1 Bosch Indego: how to build B2B and B2C relationships in a new global product market - robotic lawnmowers Questions for discussion References 14 Communication decisions Learning objectives 14.1 Introduction 14.2 The communication process 14.3 Communication tools Exhibit 14.1 LEGO Ninjago's 360-degree marketing communication Exhibit 14.2 Ambush marketing strategy - Dutch brewery vs Anheuser Busch's Budweiser during the FIFA World Cup 2010 14.4 Personal selling 14.5 Trade fairs and exhibitions 14.6 Social media marketing Exhibit 14.3 Generating buzz in the pre-communication stage for BMW 1 Series M Coupe 14.7 Developing a viral marketing campaign 14.8 Summary Case study 14.1 Orabrush Inc.: how a 'pull' B2C YouTube marketing strategy helped consumers to focus on the 'bad breath' problem Questions for discussion References PART V ORGANISING, IMPLEMENTING AND CONTROLLING THE MARKETING EFFORT Part V Video case study Pret A Manger: how to control the expansion of an international restaurant chain 15 Organising and implementing the marketing plan Learning objectives 15.1 Introduction 15.2 Marketing audit 15.3 Building the marketing plan 15.4 Organising the marketing resources 15.5 Implementation of the marketing plan 15.6 The role of internal marketing Exhibit 15.1 Merger of Mars' European food, pet care and confectionery divisions 15.7 Summary Case study 15.1 Triumph: how to manoeuvre as a modern brand in the global underwear market Questions for discussion References 16 Budgeting and controlling Learning objectives 16.1 Introduction 16.2 Budgeting 16.3 Social media metrics 16.4 Customer profitability and customer lifetime value Exhibit 16.1 Simulation of firm X's customer value (cumulative sales for firm X over periods 1 to 10) with different retention rates 16.5 Controlling the marketing programme 16.6 Summary Case study 16.1 Sony Music Entertainment: new worldwide organisational structure and the marketing planning and budgeting of Pink's new album Questions for discussion References Appendix Market research and decision support system Learning objectives A.1 Introduction A.2 Data warehousing A.3 Data mining A.4 The customer information file A.5 Linking market research to the decision-making process A.6 Secondary research A.7 Primary research A.8 Online (Internet) primary research methods A.9 Other types of market research A.10 Setting up a marketing information system (MIS) A.11 Marketing research based on Web 2.0 A.12 Summary Questions for discussion References Glossary Index

About the Author

Svend Hollensen is Associate Professor of International Marketing at the University of Southern Denmark and has worked as a marketing consultant for several international companies and organisations. His other Pearson Education books include - among others - Global Marketing, Sixth Edition, also published in 2014.

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