Contents
Preface xi
Acknowledgements xiv
Abbreviations xv
Part 1 Marketing Strategy 1
1 Market-led strategic management 3
Introduction 3
1.1 The marketing concept and market orientation 6
1.2 The resource-based view of marketing 14
1.3 Organisational stakeholders 16
1.4 Marketing fundamentals 21
1.5 The role of marketing in leading strategic management 25
1.6 Summary 27
Case study: Psion 27
2 Strategic marketing planning 29
Introduction 29
2.1 Defining the business purpose or mission 31
2.2 The marketing strategy process 34
2.3 Establishing the core strategy 35
2.4 Creation of the competitive positioning 46
2.5 Implementation 50
2.6 Summary 54
Case study: iPhone 55
Part 2 Competitive Market Analysis 57
3 The changing market environment 59
Introduction 59
3.1 A framework for macro-environmental analysis 60
3.2 The economic and political environment 61
3.3 The social and cultural environment 63
3.4 The technological environment 67
3.5 Changes in marketing infrastructure and practices 68
3.6 New strategies for changing macro-environments 70
3.7 The Five Forces Model of industry competition 73
3.8 The product life cycle 78
3.9 Strategic groups 79
3.10 Industry evolution and forecasting 82
3.11 Environmental stability 85
3.12 SPACE analysis 87
3.13 The Advantage Matrix 89
3.14 Summary 91
Case study: Virgin Megastores 92
4 Customer analysis 94
Introduction 94
4.1 What we need to know about customers 95
4.2 Marketing research 98
4.3 The marketing research process 107
4.4 Organising customer information 109
4.5 Summary 112
Case study: Procter & Gamble 113
5 Competitor analysis 115
Introduction 115
5.1 Competitive benchmarking 116
5.2 The dimensions of competitor analysis 118
5.3 Choosing good competitors 133
5.4 Obtaining and disseminating competitive information 136
5.5 Summary 140
Case study: Emap 141
6 Understanding the organisational
resource base 143
Introduction 143
6.1 Marketing resources as the foundation for differentiation 144
6.2 Value-creating disciplines 146
6.3 The resource-based view of the firm 148
6.4 Creating and exploiting marketing assets 153
6.5 Developing marketing capabilities 164
6.6 Dynamic marketing capabilities 166
6.7 Resource portfolios 169
6.8 Developing and exploiting resources 170
6.9 Summary 171
Case study: Miele 172
7 Forecasting future demand and market
requirements 176
Introduction 176
7.1 Forecasting what? 177
7.2 Forecasts based on current demand 177
7.3 Forecasts based on past demand 179
7.4 Forecasting through experimentation 191
7.5 Forecasting through intentions and expert opinion 195
7.6 Summary 198
Case study: Boeing 201
Part 3 Identifying Current and Future
Competitive Positions 203
8 Segmentation and positioning principles 205
Introduction 205
8.1 Principles of competitive positioning 207
8.2 Principles of market segmentation 210
8.3 The underlying premises of market segmentation 211
8.4 Bases for segmenting markets 212
8.5 Segmenting consumer markets 213
8.6 Segmenting business markets 226
8.7 Identifying and describing market segments 230
8.8 The benefits of segmenting markets 232
8.9 Implementing market segmentation 232
8.10 Summary 236
Case study: Internet Exchange 237
9 Segmentation and positioning research 240
Introduction 240
9.1 A priori segmentation approaches 243
9.2 Post hoc/cluster-based segmentation approaches 248
9.3 Qualitative approaches to positioning research 256
9.4 Quantitative approaches to positioning research 259
9.5 Summary 269
Case study: Asianet, Zee TV, Namaste and more 270
10 Selecting market targets 272
Introduction 272
10.1 The process of market definition 274
10.2 Defining how the market is segmented 277
10.3 Determining market segment attractiveness 279
10.4 Determining current and potential strengths 288
10.5 Making market and segment choices 290
10.6 Alternative targeting strategies 293
10.7 Summary 295
Case study: B&O 296
Part 4 Competitive Positioning Strategies 299
11 Creating sustainable competitive advantage 301
Introduction 301
11.1 Using organisational resources to create sustainable
competitive advantage 301
11.2 Generic routes to competitive advantage 304
11.3 Achieving cost leadership 305
11.4 Achieving differentiation 308
11.5 Sustaining competitive advantage 318
11.6 Offensive and defensive competitive strategies 319
11.7 Summary 332
Case study: Nokia 333
12 Competing through the new marketing mix 335
Introduction 335
12.1 The market offer 336
12.2 Pricing strategies 348
12.3 Communications strategies 354
12.4 Distribution strategies 361
12.5 The extended marketing mix - people, processes
and physical evidence 363
12.6 New businesses and business models 365
12.7 Summary 367
Case study: Tyrrells 368
13 Competing through innovation 371
Introduction 371
13.1 New product success and failure 372
13.2 Planned innovation 376
13.3 The new product development process 379
13.4 Speeding new product development 386
13.5 Organising for new product development 387
13.6 Summary 390
Case study: Gillette 391
14 Competing through superior service
and customer relationships 393
Introduction 393
14.1 The goods and services spectrum 395
14.2 Relationship marketing 397
14.3 The three Ss of customer service 402
14.4 Providing superior service 402
14.5 Measuring and monitoring customer satisfaction 406
14.6 Summary 410
Case study: Pret a Manger 411
Part 5 Implementing the Strategy 415
15 Strategic customer management 419
Introduction 419
15.1 Priorities for identifying strategic sales capabilities 420
15.2 The new and emerging competitive role for sales 424
15.3 The strategic sales organisation 427
15.4 Strategic customer management tasks 434
15.5 Managing the customer portfolio 436
15.6 Dealing with dominant customers 438
15.7 Summary 451
Case study: Xerox 452
16 Strategic alliances and networks 455
Introduction 455
16.1 The era of strategic collaboration 458
16.2 The drivers of collaboration strategies 459
16.3 Types of network 463
16.4 Alliances and partnerships 467
16.5 Strategic alliances as a competitive force 471
16.6 The risks in strategic alliances 472
16.7 Competing through strategic alliances 475
16.8 Summary 481
Case study: Yahoo and eBay 482
17 Strategy implementation and
internal marketing 484
Introduction 484
17.1 The strategy implementation challenge in marketing 487
17.2 The development of internal marketing 489
17.3 The scope of internal marketing 491
17.4 Planning for internal marketing 501
17.5 Cross-functional partnership as internal marketing 503
17.6 Summary 511
Case study: British Airways 512
18 Corporate social responsibility 514
Introduction 514
18.1 Marketing strategy and corporate social responsibility 515
18.2 The scope of corporate responsibility and
corporate citizenship 521
18.3 The drivers of corporate social responsibility initiatives 524
18.4 Defensive corporate social responsibility initiatives 527
18.5 Corporate social responsibility and
competitive advantage 532
18.6 Summary 537
Case study: Ballantyne, Smythson and others 537
Part 6 Conclusions 539
19 Twenty-first century marketing 541
Introduction 541
19.1 The changing competitive arena 542
19.2 Fundamentals of strategy in a changing world 549
19.3 Competitive positioning strategies 556
19.4 Summary 568
Case study: Trend-spotting at the Henley Centre
and elsewhere 569
References 572
Indices 599
By author 000
By company/brand 000
By subject 000

Thoroughly updated with new examples and the latest research findings, this new edition also boasts case studies in each chapter, taken from recent editions of the Financial Times, that illustrate the practical implications of the issues raised.