Additional Information
Book Details
Abstract
Marketing Management: A Relationship Approach, Third Edition, takes the unique and innovative approach of linking relationship marketing to the traditional market planning models that are used by most marketers today. As globalisation progresses, the need for creating and maintaining off-line and on-line relationships with the company’s customers, suppliers, stakeholders and personnel has become increasingly vital in today’s business environment.
Now in its third edition, this best-selling text bridges the gap between relationship marketing and traditional marketing, integrating this approach with the process of developing effective marketing plans. Drawing on a varied and extensive range of international examples, Hollensen demonstrates how companies such as Zalando, Spotify, Bosch and Hunter Boots make use of relationship marketing theory in order to gain competitive advantage.
New to this edition:
- Focus on hot topics such as customer value creation & value capture, experiential marketing, on-line business models, smartphone marketing and social media marketing, plus a chapter on corporate social responsibility, ensure coverage of the latest and most relevant issues in marketing management.
- New case studies in every chapter plus video cases, available on the Companion Website at www.pearsoned.co.uk/hollensen, and linked to each part of the book bring the subject matter vividly to life.
- Striking colour design adds visual interest and helps to illustrate and emphasize key points and concepts.
Marketing Management: A Relationship Approach is invaluable reading for undergraduates studying marketing management in their final year or at postgraduate level and to practitioners and those studying for professional qualifications in marketing management.
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.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Cover | Cover | ||
| Title | iii | ||
| Copyright | iv | ||
| Contents | vii | ||
| Guided tour | xvi | ||
| Preface | xxi | ||
| About the author | xxviii | ||
| Author's acknowledgements | xxix | ||
| Publisher's acknowledgements | xxx | ||
| 1 Introduction | 1 | ||
| Learning objectives | 1 | ||
| 1.1 Introduction | 2 | ||
| 1.2 The marketing management process | 2 | ||
| 1.3 The traditional (transactional) marketing (TM) concept versus the relationship marketing (RM) concept | 8 | ||
| 1.4 Balancing the transactional and relationship concepts throughout the book | 13 | ||
| 1.5 How the RM concept influences the traditional marketing concept | 13 | ||
| 1.6 Different organisational forms of RM | 16 | ||
| 1.7 Summary | 17 | ||
| Case study 1.1: Hunter Boot Ltd: the iconic British brand is moving into exclusive fashions | 18 | ||
| Questions for discussion | 20 | ||
| References | 20 | ||
| PART I: ASSESSING THE COMPETITIVENESS OF THE FIRM (INTERNAL) | 23 | ||
| Part I: Video case study: Tata Nano - competitiveness of the world's cheapest car | 24 | ||
| Introduction to Part I | 28 | ||
| 2 Identification of the firm's core competences | 29 | ||
| Learning objectives | 29 | ||
| 2.1 Introduction | 30 | ||
| 2.2 Roots of competitive advantage | 30 | ||
| 2.3 The resource-based view (RBV) | 31 | ||
| Exhibit 2.1: Honda's competences in small engines | 33 | ||
| 2.4 Market orientation view (MOV) compared to the resource-based view | 35 | ||
| 2.5 The value chain-based view (VBV) | 38 | ||
| Exhibit 2.2: Nike's value chain | 40 | ||
| Exhibit 2.3: The value chain of Acme Axles, Inc. | 45 | ||
| 2.6 Value shop and the 'service value chain' | 47 | ||
| 2.7 Internationalising the value chain | 51 | ||
| 2.8 The virtual value chain | 53 | ||
| 2.9 Experiential marketing | 55 | ||
| Exhibit 2.4: IKEA's use of AR | 57 | ||
| 2.10 Summary | 58 | ||
| Case study 2.1: Zalando: how can the online apparel retailer turn financial losses into positive profits? | 59 | ||
| Questions for discussion | 66 | ||
| References | 66 | ||
| 3 Development of the firm's competitive advantage | 69 | ||
| Learning objectives | 69 | ||
| 3.1 Introduction | 70 | ||
| 3.2 General sources of competitive advantage | 70 | ||
| 3.3 Introduction of a holistic model of competitiveness: from macro to micro level | 73 | ||
| 3.4 Analysis of national competitiveness (the Porter diamond) | 76 | ||
| 3.5 Competition analysis in an industry | 80 | ||
| 3.6 Value chain analysis | 84 | ||
| 3.7 Blue ocean strategy and value innovation | 91 | ||
| Exhibit 3.1: Value innovation at hotel chain Formule 1 | 93 | ||
| 3.8 Outsourcing – a strategic decision framework based on customers' evaluation | 95 | ||
| Exhibit 3.2: Sony, an outsourcing company | 98 | ||
| 3.9 Summary | 100 | ||
| Case study 3.1: Nintendo Wii: Nintendo's Wii took first place on the world market – but it didn't last | 102 | ||
| Questions for discussion | 107 | ||
| References | 107 | ||
| PART II: ASSESSING THE EXTERNAL MARKETING SITUATION | 111 | ||
| Part II: Video case study: Müller - Müller yogurts are penetrating the US market | 112 | ||
| Introduction to Part II | 113 | ||
| 4 Customer behaviour | 115 | ||
| Learning objectives | 115 | ||
| 4.1 Introduction | 116 | ||
| 4.2 Consumer B2C decision making | 119 | ||
| 4.3 Influences on consumers' decision making | 124 | ||
| Exhibit 4.1: Example of loyalty: store loyalty versus brand loyalty | 129 | ||
| Exhibit 4.2: Brand-switching strategy in times of recession – the case of Skoda Superb | 131 | ||
| 4.4 Organisational B2B decision making | 131 | ||
| 4.5 Influences on the buying process | 141 | ||
| 4.6 Customer-perceived value and customer satisfaction | 145 | ||
| 4.7 Customisation – tailoring the offer to the individual customer | 148 | ||
| 4.8 Summary | 151 | ||
| Case study 4.1: Spotify: the online music-streaming company is expanding globally | 153 | ||
| Questions for discussion | 159 | ||
| References | 159 | ||
| 5 Competitor analysis and intelligence | 161 | ||
| Learning objectives | 161 | ||
| 5.1 Introduction | 162 | ||
| 5.2 Who are our competitors? | 165 | ||
| 5.3 How are the competitors interacting? | 167 | ||
| Exhibit 5.1: McDonald's and Burger King in an asymmetric interaction | 168 | ||
| 5.4 How do we learn about our competitors? | 169 | ||
| 5.5 What are the strengths and weaknesses of our competitors? | 171 | ||
| 5.6 Market commonality and resource commonality | 173 | ||
| 5.7 What are the objectives and strategies of our competitors? | 174 | ||
| 5.8 What are the response patterns of our competitors? | 176 | ||
| Exhibit 5.2: Role play in CI as a predictor of competitive behaviour | 177 | ||
| 5.9 Six steps to competitor analysis | 178 | ||
| 5.10 How can we set up an organisation for competitor analysis and CI? | 180 | ||
| Exhibit 5.3: Counterintelligence done by Johnson Controls against Honeywell | 181 | ||
| 5.11 Summary | 182 | ||
| Case study 5.1: Cereal Partners Worldwide (CPW): The no. 2 world player is challenging the no. 1 – Kellogg | 183 | ||
| Questions for discussion | 190 | ||
| References | 190 | ||
| 6 Analysing relationships in the value chain | 192 | ||
| Learning objectives | 192 | ||
| 6.1 Introduction | 193 | ||
| Exhibit 6.1: Value chain of Braun (Oral-B) electric toothbrush | 194 | ||
| 6.2 The value net | 196 | ||
| Exhibit 6.2: Value net of Braun (Oral-B) electric toothbrush | 197 | ||
| 6.3 Relationships with customers | 198 | ||
| Exhibit 6.3: Speedo's relations with its retailers | 209 | ||
| 6.4 Relationships with suppliers | 215 | ||
| 6.5 Relationships with complementors/partners | 218 | ||
| Exhibit 6.4: Irn-Bru's distributor alliance (Y coalition) with Pepsi Bottling Group (PBG) in Russia | 219 | ||
| 6.6 Relationships with competitors | 223 | ||
| Exhibit 6.5: Value net – cooperation/coopetition between competitors within each airline alliance. The three alliances are competing against each other | 225 | ||
| 6.7 Internal marketing (IM) relationships | 226 | ||
| 6.8 Summary | 227 | ||
| Case study 6.1: ARM: challenging Intel in the world market of computer chips | 229 | ||
| Questions for discussion | 233 | ||
| References | 233 | ||
| PART III: DEVELOPING MARKETING STRATEGIES | 239 | ||
| Part III: Video case study: Nivea: segmentation of the sun-care market | 240 | ||
| Introduction to Part III | 243 | ||
| 7 SWOT analysis, strategic marketing planning and portfolio analysis | 245 | ||
| Learning objectives | 245 | ||
| 7.1 Introduction | 246 | ||
| 7.2 Corporate mission | 246 | ||
| 7.3 SWOT analysis | 246 | ||
| 7.4 Corporate objectives | 252 | ||
| 7.5 Corporate growth strategy | 254 | ||
| 7.6 SBU marketing strategy/portfolio analysis | 256 | ||
| 7.7 Introduction to portfolio models | 258 | ||
| 7.8 The Boston Consulting Group's growth-share matrix – the BCG model | 259 | ||
| 7.9 General electric market attractiveness – business position matrix (GE matrix) | 265 | ||
| 7.10 International portfolio analysis | 268 | ||
| 7.11 Portfolio analysis of supplier relationships | 271 | ||
| 7.12 Summary | 275 | ||
| Case study 7.1: Red Bull: the global market leader in energy drinks is considering further market expansion | 277 | ||
| Questions for discussion | 285 | ||
| References | 286 | ||
| 8 Segmentation, targeting, positioning and competitive strategies | 288 | ||
| Learning objectives | 288 | ||
| 8.1 Introduction | 289 | ||
| Exhibit 8.1: Segmentation in the pet food market | 294 | ||
| 8.2 Segmentation in the B2C market | 295 | ||
| Exhibit 8.2: Segmentation in work ('salty snacks in the workplace') | 300 | ||
| 8.3 Segmentation in the B2B market | 302 | ||
| 8.4 Target marketing | 307 | ||
| 8.5 Positioning | 310 | ||
| Exhibit 8.3: Björn Borg's brand positioning and business modelling in the international apparel market | 312 | ||
| 8.6 Generic competitive strategies | 313 | ||
| Exhibit 8.4: Good-enough markets in China – the case of Duracell batteries | 315 | ||
| 8.7 Offensive and defensive competitive strategies | 316 | ||
| 8.8 Summary | 320 | ||
| Case study 8.1: LEGO Friends: the world's third-largest toy manufacturer is moving into the girls' domain | 322 | ||
| Questions for discussion | 326 | ||
| References | 326 | ||
| 9 CSR strategy and the sustainable global value chain | 329 | ||
| Learning objectives | 329 | ||
| 9.1 Introduction | 330 | ||
| 9.2 Different levels of ethical behaviour | 331 | ||
| 9.3 Social marketing as part of CSR | 333 | ||
| 9.4 Cause-related marketing | 334 | ||
| Exhibit 9.1: Examples of cause-related marketing campaigns | 334 | ||
| 9.5 Identification of stakeholders in CSR | 335 | ||
| 9.6 Drivers of CSR | 336 | ||
| 9.7 The sustainable global value chain (SGVC) | 336 | ||
| 9.8 CSR and international competitiveness | 337 | ||
| 9.9 Poverty (BOP market) as a 'market' opportunity | 339 | ||
| Exhibit 9.2: Grameen Danone Foods opens plant in Bangladesh | 343 | ||
| 9.10 The 'green' market as a business opportunity | 344 | ||
| Exhibit 9.3: Unilever's introduction of 'Comfort One Rinse' saves water | 345 | ||
| 9.11 Summary | 349 | ||
| Case study 9.1: YouthAIDS: social marketing in a private, non-profit organisation | 350 | ||
| Questions for discussion | 355 | ||
| References | 355 | ||
| PART IV: DEVELOPING MARKETING PROGRAMMES | 357 | ||
| Part IV: Video case study: Tequila Avión - a premium tequila is introduced | 358 | ||
| Introduction to Part IV | 359 | ||
| 10 Establishing, developing and managing buyer–seller relationships | 362 | ||
| Learning objectives | 362 | ||
| 10.1 Introduction | 363 | ||
| 10.2 Building buyer–seller relationships in B2B markets | 363 | ||
| 10.3 Relationship quality | 365 | ||
| 10.4 Building buyer–seller relationships in B2C markets | 366 | ||
| Exhibit 10.1: Husqvarna's consumer wheel | 367 | ||
| Exhibit 10.2: Employee commitment drives value at Southwest Airlines | 370 | ||
| 10.5 Managing loyalty | 370 | ||
| Exhibit 10.3: Developing service loyalty at Volkswagen | 373 | ||
| Exhibit 10.4: Best Buy's approach to loyalty, compared to competitor Circuit City | 375 | ||
| 10.6 The CRM path to long-term customer loyalty and advocacy | 376 | ||
| 10.7 Key account management (KAM) | 378 | ||
| 10.8 Summary | 384 | ||
| Case study 10.1: Dassault Falcon: the private business jet, Falcon, is navigating in the global corporate business sector | 385 | ||
| Questions for discussion | 393 | ||
| References | 393 | ||
| 11 Product and service decisions | 396 | ||
| Learning objectives | 396 | ||
| 11.1 Introduction | 397 | ||
| 11.2 The components of the product offer | 398 | ||
| 11.3 Service strategies | 398 | ||
| 11.4 New product development (NPD) | 406 | ||
| 11.5 The product life cycle | 408 | ||
| Exhibit 11.1: Threadless T-shirt crowdsourcing business | 413 | ||
| 11.6 New products for the international market | 414 | ||
| 11.7 Product cannibalisation | 416 | ||
| 11.8 Product positioning | 416 | ||
| 11.9 Branding | 417 | ||
| Exhibit 11.2: Roundup – a global brand for multiple markets | 421 | ||
| Exhibit 11.3: Kellogg is under pressure to produce Aldi's own-label goods | 422 | ||
| 11.10 Brand equity | 424 | ||
| 11.11 Implications of the Internet for product decisions | 425 | ||
| Exhibit 11.4: Ducati motorcycles – product development through Web communities | 426 | ||
| 11.12 'Long tail' strategies | 429 | ||
| 11.13 Summary | 430 | ||
| Case study 11.1: British American Tobacco (BAT): launch of the e-cigarette Vype | 432 | ||
| Questions for discussion | 436 | ||
| References | 436 | ||
| 12 Pricing decisions | 440 | ||
| Learning objectives | 440 | ||
| 12.1 Introduction | 441 | ||
| 12.2 Pricing from an economist's perspective | 441 | ||
| Exhibit 12.1: Johnnie Walker whisky faced positive price elasticity in Japan | 443 | ||
| 12.3 Pricing from an accountant's perspective | 444 | ||
| 12.4 A pricing framework | 445 | ||
| 12.5 Market value-based pricing versus cost-based pricing | 449 | ||
| Exhibit 12.2: Value-based pricing in Bossard – the '15/85 rule' | 451 | ||
| 12.6 Pricing services versus physical products | 452 | ||
| 12.7 Pricing new products | 453 | ||
| 12.8 Price changes | 455 | ||
| 12.9 Experience curve pricing | 456 | ||
| 12.10 Product line pricing | 457 | ||
| 12.11 Price bundling | 459 | ||
| 12.12 Pricing for different segments | 459 | ||
| 12.13 Relationship pricing | 461 | ||
| 12.14 Pricing on the Internet | 463 | ||
| 12.15 Communicating prices to the target markets | 464 | ||
| 12.16 Summary | 464 | ||
| Case study 12.1: Harley-Davidson: is the image justifying the price level in a time of recession? | 465 | ||
| Questions for discussion | 469 | ||
| References | 469 | ||
| 13 Distribution decisions | 471 | ||
| Learning objectives | 471 | ||
| 13.1 Introduction | 472 | ||
| 13.2 The basic functions of channel participants | 473 | ||
| 13.3 Distributor portfolio analysis | 474 | ||
| 13.4 Developing and managing relationships between manufacturer and distributor | 475 | ||
| 13.5 External and internal determinants of channel decisions | 476 | ||
| 13.6 The structure of the channel | 478 | ||
| 13.7 Multiple distribution-channel strategy | 481 | ||
| 13.8 Managing and controlling distribution channels | 482 | ||
| 13.9 Implications of the Internet for distribution decisions | 487 | ||
| 13.10 Online retail sales | 488 | ||
| 13.11 Smartphone marketing | 489 | ||
| 13.12 Channel power in international retailing | 491 | ||
| Exhibit 13.1: The ' banana split' model | 492 | ||
| 13.13 Mystery shopping in retailing | 495 | ||
| 13.14 Summary | 496 | ||
| Case study 13.1: Bosch Indego: how to build B2B and B2C relationships in a new global product market – robotic lawnmowers | 497 | ||
| Questions for discussion | 500 | ||
| References | 501 | ||
| 14 Communication decisions | 503 | ||
| Learning objectives | 503 | ||
| 14.1 Introduction | 504 | ||
| 14.2 The communication process | 505 | ||
| 14.3 Communication tools | 511 | ||
| Exhibit 14.1: LEGO Ninjago's 360-degree marketing communication | 516 | ||
| Exhibit 14.2: Ambush marketing strategy – Dutch brewery vs Anheuser Busch's Budweiser during the FIFA World Cup 2010 | 520 | ||
| 14.4 Personal selling | 523 | ||
| 14.5 Trade fairs and exhibitions | 528 | ||
| 14.6 Social media marketing | 530 | ||
| Exhibit 14.3: Generating buzz in the pre-communication stage for BMW 1 Series M Coupé | 537 | ||
| 14.7 Developing a viral marketing campaign | 538 | ||
| 14.8 Summary | 540 | ||
| Case study 14.1: Orabrush Inc.: how a 'pull' B2C YouTube marketing strategy helped consumers to focus on the 'bad breath' problem | 541 | ||
| Questions for discussion | 544 | ||
| References | 544 | ||
| PART V: ORGANISING, IMPLEMENTING AND CONTROLLING THE MARKETING EFFORT | 547 | ||
| Part V: Video case study: Pret A Manger - how to control the expansion of an international restaurant chain | 548 | ||
| Introduction to Part V | 550 | ||
| 15 Organising and implementing the marketing plan | 552 | ||
| Learning objectives | 552 | ||
| 15.1 Introduction | 553 | ||
| 15.2 Marketing audit | 553 | ||
| 15.3 Building the marketing plan | 554 | ||
| 15.4 Organising the marketing resources | 558 | ||
| 15.5 Implementation of the marketing plan | 564 | ||
| 15.6 The role of internal marketing | 565 | ||
| Exhibit 15.1: Merger of Mars' European food, pet care and confectionery divisions | 567 | ||
| 15.7 Summary | 568 | ||
| Case study 15.1: Triumph: how to manoeuvre as a modern brand in the global underwear market | 569 | ||
| Questions for discussion | 581 | ||
| References | 582 | ||
| 16 Budgeting and controlling | 583 | ||
| Learning objectives | 583 | ||
| 16.1 Introduction | 584 | ||
| 16.2 Budgeting | 584 | ||
| 16.3 Social media metrics | 589 | ||
| 16.4 Customer profitability and customer lifetime value | 593 | ||
| Exhibit 16.1: Simulation of firm X's customer value (cumulative sales for firm X over periods 1 to 10) with different retention rates | 599 | ||
| 16.5 Controlling the marketing programme | 600 | ||
| 16.6 Summary | 607 | ||
| Case study 16.1: Sony Music Entertainment: new worldwide organisational structure and the marketing, planning and budgeting of Pink's new album | 608 | ||
| Questions for discussion | 614 | ||
| References | 614 | ||
| Appendix: Market research and decision support system | 616 | ||
| Learning objectives | 616 | ||
| A.1 Introduction | 617 | ||
| A.2 Data warehousing | 617 | ||
| A.3 Data mining | 618 | ||
| A.4 The customer information file | 618 | ||
| A.5 Linking market research to the decision-making process | 620 | ||
| A.6 Secondary research | 622 | ||
| A.7 Primary research | 626 | ||
| A.8 Online (Internet) primary research methods | 637 | ||
| A.9 Other types of market research | 639 | ||
| A.10 Setting up a marketing information system (MIS) | 643 | ||
| A.11 Marketing research based on Web 2.0 | 644 | ||
| A.12 Summary | 645 | ||
| Questions for discussion | 646 | ||
| References | 646 | ||
| Glossary | 648 | ||
| A | 648 | ||
| B | 648 | ||
| C | 649 | ||
| D | 650 | ||
| E | 651 | ||
| F | 651 | ||
| G | 652 | ||
| H | 652 | ||
| I | 652 | ||
| J | 653 | ||
| K | 653 | ||
| L | 653 | ||
| M | 653 | ||
| N | 654 | ||
| O | 654 | ||
| P | 655 | ||
| Q | 656 | ||
| R | 656 | ||
| S | 657 | ||
| T | 658 | ||
| U | 658 | ||
| V | 658 | ||
| W | 659 | ||
| Index | 660 | ||
| A | 660 | ||
| B | 661 | ||
| C | 662 | ||
| D | 666 | ||
| E | 667 | ||
| F | 668 | ||
| G | 668 | ||
| H | 669 | ||
| I | 669 | ||
| J | 671 | ||
| K | 671 | ||
| L | 671 | ||
| M | 672 | ||
| N | 674 | ||
| O | 674 | ||
| P | 675 | ||
| Q | 677 | ||
| R | 677 | ||
| S | 679 | ||
| T | 681 | ||
| U | 682 | ||
| V | 683 | ||
| W | 683 | ||
| X | 683 | ||
| Y | 683 | ||
| Z | 683 |