CONTENTS
PART Ⅰ BUSINESS AND MARKETING STRATEGIES = 1
CHAPTER 1 The Marketing Organization = 3
The Competitive Environment = 4
Market Diversity : Dimensions of Change = 4
Global Competitive Challenges = 5
Viewing Change as an Opportunity = 9
The Customer Focus = 10
Factors Impacting Customer Satisfaction = 10
Finding Competitive Advantage = 12
Customer-Driven Business Strategies = 13
Escalating Influence of Technology = 13
Important Characteristics = 14
Product and Service Quality = 16
Information Technology = 17
Environmental Responsibility = 18
Deciding How To Compete = 18
Strategic Vision = 20
Creating Competitive Advantage = 21
Organizational Effectiveness = 21
Relationships With Other Organizations = 22
The Marketing Organization = 23
The Customer - Focused Organization = 23
Strategic Targeting = 24
Role of the Marketing Function = 24
Summary = 26
CHAPTER 2 Business Strategy and Competitive Advantage = 30
Changing Patterns of Global Competition = 31
Analyzing the Forces of Change = 31
Strategic Responses = 32
What is a Business Strategy? = 34
Competitive Advantage = 35
The Concept of Competitive Advantage = 36
Advantage Analysis = 37
Sustaining Competitive Advantage = 38
Market Entry Barriers = 39
Business Strategy = 41
Deciding Corporate Mission = 41
Corporate Development Alternatives = 44
Business Composition = 46
Corporate Strategy = 48
Strategic Analysis and Strategy Selection = 49
Assessing Situational Advantage = 49
Strategy Classification Models = 50
Generic Strategies = 52
PIMS Research = 55
Developing the Strategic Plan for Each Business = 56
Summary = 60
CHAPTER 3 Strategic Partnership = 64
What Drives Interorganizational Relationships = 66
Environmental Turbulence and Diversity = 66
Skill and Resource Gaps = 67
Types of Organizational Relationships = 70
Vertical Relationships = 70
Strategic Alliances = 73
Global Relationships among Organizations = 77
The Strategic Role of Government = 79
Developing Effective Relationships between Organizations = 81
Purpose of the Relationship = 81
Relationship Management Guidelines = 83
Summary = 85
CHAPTER 4 Marketing Strategy and Planning = 89
The Role and Scope of Marketing = 90
Marketing form a Corporate Perspective = 90
Business Unit Strategies = 91
Strategic Marketing Activities = 91
Marketing Situation Analysis = 94
Market Definition and Analysis = 94
Market Segmentation = 95
Analyzing Competition = 96
Marketing Information Systems and Research = 96
Marketing strategy Design = 97
Marketing Targeting and Positioning Strategy = 98
Marketing Strategy Selection = 100
New-Product Strategies = 102
Marketing Program Development = 102
Product/Service Strategy = 103
Distribution, Price, and Promotion Strategies = 104
Targeting and Positioning Strategy Illustration = 105
Implementing and Managing Marketing Strategy = 105
Designing the Marketing Organization = 106
Implementation and Control = 106
Preparing the Marketing Plan and Budget = 107
Planning Relationships and Frequency = 107
Planning Considerations = 107
Preparing the Marketing Plan = 108
Summary = 111
APPENDIX 4A : FINANCIAL ANALYSIS FOR MARKETING PLANNING AND CONTROL = 115
CASES FOR PART Ⅰ
Case 1-1 Autodesk, Inc. = 124
Case 1-2 Telefonos De Mexico, S. A. = 131
Case 1-3 Euro Disney = 135
Case 1-4 Southwest Airlines = 144
PART Ⅱ MARKETING SITUATION ANALYSIS = 149
CHAPTER 5 Defining and Analyzing Markets = 151
Defining Product - Markets = 152
Matching Needs with Product Benefits = 153
Alternative Product - Market Boundaries = 154
Determining Product - Market Boundaries = 154
Considerations in Forming Product - Markets = 154
Factors Affecting market Complexity = 158
Market Opportunity Analysis = 159
Defining Product-Market Boundaries and Structure = 160
Describing and Analyzing End-Users = 162
Industry and Value-Added System Analyses = 164
Analysis of the Key Competitors = 167
Market Size Estimation = 168
Geographical Scope of Markets = 170
Consumer and Organizational Markets = 171
Market Analysis, Customer Segments, and Targeting = 171
Customer Segments = 172
Segment Requirements = 172
Competitive Advantage = 173
Summary
APPENDIX 5A : FORECASTING GUIDELINES = 176
CHAPTER 6 Market Segmentation = 183
Segmentation, Targeting, and Positioning = 184
Segmentation and Competitive Advantage = 185
Targeting Practices = 185
Segmentation and Competitive Advantage = 185
Identifying Market Segments = 187
Purpose of Segmentation Variables = 187
Characteristics of People and Organizations = 188
Use-Situation Segmentation = 189
Buyers' Needs and Preferences = 190
Purchase Behavior = 192
Forming Segments = 193
Requirements for Segmentation = 194
Customer Group Identification = 195
Forming Groups Based on Response Differences = 197
Segmentation Application = 201
Selecting a Segmentation Method = 204
Strategic Analysis of Market Segments = 205
Customer Analysis = 205
Analysis of Competitive Advantage = 208
Positioning analysis = 209
Estimating Financial and Market Attractiveness = 209
Segmentation in the Changing Environment of the 1990s = 211
Macro/Microsegmentation = 211
Geographic Segmentation = 212
Single/Multiple Product Segments = 212
Segmentation Dynamics = 212
Mass Customization = 213
Summary = 213
CHAPTER 7 Analyzing Competition = 216
Defining the Competitive Arena = 217
Sources of Competition = 217
Industry Structure and Characteristics = 219
Strategic Group analysis = 225
Selecting Dimensions for Group Formation = 225
Mapping Strategic Groups = 227
Using strategic Group Analysis = 229
Identifying, Describing, and Evaluating Competitors = 230
Describing the Competitor = 230
Evaluating the Competitor = 232
Anticipating Competitors' Actions = 237
Estimating Future Strategies = 237
Identifying New Competitors = 239
Competitor Intelligence Systems = 240
Information Collection and Analysis = 240
Assigning Responsibility = 241
Benchmarking = 241
Summary = 242
CHAPTER 8 Marketing Research and Information Systems = 245
Information and Competitive Advantage = 246
How Information Creates Competitive Advantage = 246
Information, Analysis, and Action = 250
Marketing Research Information = 252
Collecting Existing Information = 252
Standardized Information Services = 254
Special Research Studies = 256
Computerized Information Systems = 257
Management Information Systems = 258
Database Systems = 260
Decision-Support Systems = 260
Artificial Intelligence and Expert Systems = 262
Artificial Intelligence = 262
Designing Expert Systems = 263
Issues in Managing Information = 264
Information Technology and Organizations = 264
Shared Information Systems = 265
Invasion of Privacy = 266
Corporate Intelligence = 266
Summary = 267
CASES FOR PART Ⅱ
Case 2-1 Tupperware = 271
Case 2-2 Yaohan International Group = 276
Case 2-3 Gillette Co. = 280
Case 2-4 Gap, Inc. = 286
PART Ⅲ DESIGNING MARKETING STRATEGY = 293
CHAPTER 9 Market Targeting and Positioning Strategies = 295
Market Target Strategy = 296
Targeting Strategies = 296
Factors Influencing Targeting Decisions Strategy = 298
Selecting a Targeting Strategy = 301
Selecting the Positioning Concept = 303
The Positioning Process = 303
Selecting the Positioning Concept = 304
Choosing the Positioning Strategy = 308
Factors Affecting the Positioning Strategy = 308
Positioning Application = 310
Considerations about Targeting / Supporting Activities = 310
Combining the Positioning Components = 311
Marketing Program Decisions = 311
Effort-to-Response Relationship = 314
Determining Position = 315
Customer and Competitor Research = 315
Test Marketing = 316
Positioning Models = 317
Positioning Effectiveness = 317
Strategic Brand Concept = 318
Positioning and Segmentation Strategies = 319
Determining Positioning Feasibility = 319
Summary = 319
CHAPTER 10 Marketing Strategies for Different Market and Competitive Environments = 323
Considerations in Strategy Selection = 324
Approach to Strategy Selection = 324
Market Entry Barriers = 325
Strategy Choice Criteria = 327
Strategies for entering New Product - Markets = 328
Market Definition and Analysis = 328
Market Segmentation = 329
Industry Structure and Competition = 329
Strategy for Competitive Advantage = 330
Targeting and Positioning Strategies = 331
Strategies for Growth Markets = 333
Market Definition and Analysis = 333
Market Segmentation = 333
Industry Structure and Competition = 334
Strategy for Competitive Advantage = 334
Targeting and Positioning Strategies = 335
Strategies for Mature and Declining Markets = 337
Market Analysis and Segmentation = 337
Industry Structure and Competition = 338
Strategy for Competitive Advantage = 339
Targeting and Positioning Strategies = 340
Restructuring in Mature Markets = 341
Changing Strategic Leverage = 341
Strategies for Declining Markets = 343
Competing in Global Markets = 343
Aspects of Global Competition = 345
Industry Structure and Competition = 347
Global Marketing Strategy Alternatives = 349
Market-Entry Strategies = 350
International Planning Process = 351
Summary = 351
CHAPTER 11 Planning for New Products = 356
Product Planning as a Customer Satisfaction Process = 357
Corporate and business Strategies = 358
Finding Customer Satisfaction Opportunities = 358
Quality Function Deployment = 359
Success Criteria = 361
Steps in New-Product Planning = 362
Deciding Which Customer Needs to Target = 362
New-Product Planning Process = 363
Idea Generation = 364
Sources of Ideas = 365
Methods of Generating Ideas = 366
Screening, Evaluating, and Business Analysis = 369
Screening = 369
Evaluation = 370
Business Analysis = 370
Development and Testing = 373
Product Development = 373
Marketing Strategy and Test Marketing = 377
Marketing Decisions = 377
Market Testing Options = 378
New-Product Models = 381
Commercialization = 382
The Marketing Plan = 382
Monitoring and Control = 384
New-Product Planning Issues = 384
Product Planning for Services = 384
Interfunctional Teamwork = 385
Globalization and Product Standardization = 385
Environmental and Ethical Concerns = 386
Summary = 386
CASES FOR PART Ⅲ
Case 3-1 Intuit Corporation = 390
Case 3-2 U. S. Surgical Corporation = 399
Case 3-3 Stop N Go = 404
Case 3-5 Apex Chemical Company = 409
PART Ⅳ MARKETING PROGRAM DEVELOPMENT = 413
CHAPTER 12 Product, Branding and Customer Service Strategies = 415
Product Quality and Competitive Advantage = 416
Product Quality and Cost Relationship = 416
Quality Improvement Strategy = 417
Product Success Depends on Other Decisions = 418
Marketing's Role in Product Strategy = 419
The Strategic Analysis of Existing Products = 420
Analysis Objectives = 420
Product Life Cycle Analysis = 422
Product Portfolio analysis = 424
Positioning Brands = 424
Other Product Analysis Methods = 424
Developing Product Strategies = 425
Setting Priorities = 426
Strategies for Existing Products = 427
Product Mix Modifications = 430
Who Manages Products? = 431
Branding Strategy = 433
Branding Strategies = 433
Brand Equity = 436
Gaining Strategic Advantage through Brand Identity = 437
Customer Service Strategy = 439
Defining Customer Service = 439
Responsibility for Customer Service = 440
Summary = 440
CHAPTER 13 Distribution Strategy = 444
Strategic Role of Distribution = 445
Distribution functions = 445
Physical Distribution = 447
Direct Distribution by Manufacturers = 448
Channel of Distribution Strategy = 450
Type of Channel = 450
Distribution Intensity = 453
Channel Configuration = 455
Selecting the Channel Strategy = 457
Strategies at Different Channel Levels = 459
Managing the Channel = 459
Channel Leadership = 460
Management Structure and Systems = 460
Channel Relationships = 460
Conflict Resolution = 462
Channel Performance = 463
Legal and Ethical Considerations = 463
International Channels = 463
Analyzing International Distribution Patterns = 464
Factors Affecting Channel Selection = 466
Strategic Alliances = 466
Strategic trends in Distribution = 466
New Retailing Concepts = 467
Expanding Importance of Channel Power = 467
Direct Marketing = 468
Improving distribution Productivity = 468
Summary = 469
CHAPTER 14 Pricing Strategy = 472
Strategic Role of Price = 473
Price in the Marketing Mix = 474
Pricing Situations = 475
Use of Price - Positioning Strategy = 475
Pricing strategy = 477
Pricing Objectives = 478
Analyzing the Pricing Situations = 479
Product-Market Responsiveness to Price = 479
Cost analysis = 481
Competitor Analysis = 485
Legal and Ethical Considerations = 485
Selecting the Pricing Strategy = 486
How Much Flexibility Exists? = 486
Price Positioning and Visibility = 488
Competitive Strategy and Positioning = 489
Determining Specific Prices and Policies = 490
Determining Specific Prices = 490
Establishing Pricing Policy and Structure = 492
Special Pricing Considerations = 494
Summary = 495
CHAPTER 15 Promotion Strategy = 498
Promotion Strategy = 499
The Components of Promotion Strategy = 499
Developing the Promotion Strategy = 501
Communications Objectives = 502
Role of the Promotion - Mix Components = 505
Budgeting Approaches = 505
Integrating Promotion Strategies = 507
Advertising Strategy = 509
Advertising's Role in Promotion Strategy = 509
Setting Advertising Objectives and Budgeting = 511
Media/Programming Strategy = 514
Implementing the Advertising Strategy and Measuring Its Effectiveness = 515
Developing and Implementing Sales Force Strategy = 516
The Role of Selling in Promotion Strategy = 517
Illustrative Roles for the Sales Force = 517
Defining the Selling Process = 519
Sales Channels = 520
Designing the Sales Organization = 521
Managing the Sales Force = 523
Sales Force Evaluation and Control = 525
Sales Promotion Strategy = 526
Nature and Scope of Sales Promotion = 527
Sales-Promotion Activities = 527
Advantages and Limitations of Sales Promotion = 529
Sales - Promotion Strategy = 530
Summary = 530
CASES FOR PART Ⅳ
Case 4-1 Du Pont Company = 534
Case 4-2 Cincinnati Milacron Inc. = 545
Case 4-3 Procter & gamble company = 549
Case 4-4 Hampton Inns = 549
PART Ⅴ MARKETING ORGANIZATION AND CONTROL = 557
CHAPTER 16 Designing Effective Marketing Organizations = 559
Considerations in Organization Design = 560
Internal and External Organizations = 560
Vertical Structure = 560
Horizontal Relationships = 561
Speed of Response = 562
Managing the Operating Environment = 562
Organizational Design Options = 563
Traditional Designs = 564
New Forms of Marketing Organizations = 568
Selecting an Organization Design = 568
Structure-Environment Match = 571
Organizing Concepts = 573
Organizing the Sales Force = 573
Marketing's Links to Other Functional Units = 575
Global Dimensions of Organizations = 576
Issues in Organizing Global Marketing Strategies = 576
Coordination and Communication = 578
Summary = 579
CHAPTER 17 Marketing Strategy Implementation and Control = 583
The Marketing Plan = 584
How the Marketing Plan Guides Implementation = 584
Contents of the Marketing Plan = 548
Implementing the Plan = 586
The Implementation Process = 587
Improving Implementation = 589
Internal Strategy - Structure Fit = 590
Integrating Marketing throughout the Organization = 590
Strategic Evaluation and Control = 592
Overview of Evaluation Activities = 593
The Strategic Marketing Audit = 594
Performance Criteria and Information Needs = 598
Selecting Performance Criteria and Measures = 598
Determining Information Needs = 599
Performance Assessment and Action = 602
Opportunities and Performance Gaps = 602
Determining Normal and Abnormal Variability = 604
Deciding What Actions to Take = 604
Summary = 605
CASES FOR PART Ⅴ
Case 5-1 Lee Co. = 608
Case 5-2 Wm. Wrigley Jr. Co. = 614
Case 5-3 Digital Equipment corporation = 618
Case 5-4 Deprenyl Research Ltd. = 622
PART Ⅵ COMPREHENSIVE CASES = 629
Case 6-1 Jaguar Cars Inc. = 631
Case 6-2 Lands' End, Inc. = 638
Case 6-3 Playboy Enterprises, Inc. = 650
Case 6-4 Pier 1 Imports Inc. = 664
Case 6-5 Highlights for Children, Inc. = 673
Case 6-6 The North Face = 684
Case 6-7 Food Lion, Inc. = 701
Case 6-8 Barro Stickney, Inc. = 714
Case 6-9 Norsk Kjem A/S = 720
Case 6-10 Knowles Products = 729
Case 6-11 Ryan's Family Steak Houses, Inc. = 743
Case 6-12 TenderCare Disposable Diapers = 757
Case 6-13 W. L. Gore & Associatives, Inc. = 767
Case 6-14 Makhteshim Chemical Works = 784
Case 6-15 Ohmeda Monitoring Systems = 796
NAME INDEX = Ⅰ1
SUBJECT INDEX = Ⅰ5