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.