Marketing Strategy

by Ferrell, O. C.; Hartline, Michael

• ISBN13: 9780324201406
• ISBN10: 0324201400
• Edition: 3rd
• Format: Paperback
• Copyright: 2004-04-06
• Publisher: South-Western College Pub

Summary

Marketing Strategy is presented from a perspective that guides strategic marketing management in the social, economic, and technological arenas in which businesses function today. This text helps to develop a customer-oriented market strategy and market plan.

Author Biography

Michael D. Hartline is Associate Professor, Chair of the Marketing Department, and the Charles A. Bruning Professor of Business Administration in the College of Business at Florida State University (FSU). O. C. Ferrell is Professor of Marketing and Creative Enterprise Scholar at the Anderson Schools of Management at the University of New Mexico.

Table of Contents

CHAPTER 1: Marketing in the New Economy	1	(21)
Introduction	1	(1)
The Challenges and Opportunities of Marketing in the New Economy	2	(1)
Basic Marketing Concepts	3	(7)
What Is a Market?	5	(1)
What Is Exchange?	6	(1)
What Is a Product?	7	(3)
Major Marketing Activities and Decisions	10	(7)
Strategic Planning	10	(1)
Research and Analysis	11	(1)
Developing Goals and Objectives	11	(1)
Developing and Maintaining Customer Relationships	12	(1)
Marketing Strategy Decisions	12	(1)
Market Segmentation and Target Marketing	13	(1)
Product Decisions	14	(1)
Pricing Decisions	14	(1)
Distribution and Supply Chain Decisions	15	(1)
Promotion Decisions	15	(1)
Implementation and Control	16	(1)
Social Responsibility and Ethics	16	(1)
Taking on the Challenges of Marketing Strategy	17	(2)
Lessons from Chapter 1	19	(1)
Questions for Discussion	20	(1)
Exercises	21	(1)
CHAPTER 2: Strategic Marketing Planning	22	(24)
Introduction	22	(1)
The Strategic Planning Process	23	(9)
Organizational Mission versus Organizational Vision	24	(5)
Corporate or Business-Unit Strategy	29	(1)
Functional Goals and Objectives	30	(1)
Functional Strategy	30	(1)
Implementation	31	(1)
Evaluation and Control	31	(1)
The Marketing Plan	32	(8)
Marketing Plan Structure	32	(5)
Using the Marketing Plan Structure	37	(1)
Purposes and Significance of the Marketing Plan	38	(1)
Organizational Aspects of the Marketing Plan	38	(2)
Strategic Planning in the Market-Oriented Organization	40	(2)
Moving Ahead	42	(1)
Lessons from Chapter 2	42	(2)
Questions for Discussion	44	(1)
Exercises	45	(1)
CHAPTER 3: Situation Analysis: Collecting and Analyzing Marketing Information	46	(27)
Introduction	46	(1)
Conducting a Situation Analysis	47	(2)
Analysis Alone Is Not the Solution	47	(1)
Data and Information Are Not the Same	48	(1)
The Benefits of Analysis Must Outweigh the Costs	48	(1)
Conducting a Situation Analysis Is a Challenging Exercise	48	(1)
The Internal Environment	49	(3)
Review of Current Objectives, Strategy, and Performance	50	(1)
Availability of Resources	51	(1)
Organizational Culture and Structure	51	(1)
The Customer Environment	52	(1)
Who Are Our Current and Potential Customers?	52	(4)
What Do Customers Do with Our Products?	54	(1)
Where Do Customers Purchase Our Products?	54	(1)
When Do Customers Purchase Our Products?	55	(1)
Why (and How) Do Customers Select Our Products?	55	(1)
Why Do Potential Customers Not Purchase Our Products?	56	(1)
The External Environment	56	(9)
Competition	58	(2)
Economic Growth and Stability	60	(1)
Political Trends	61	(1)
Legal and Regulatory Issues	61	(1)
Technological Advancements	62	(1)
Sociocultural Trends	63	(2)
Collecting Environmental Data and Information	65	(5)
Secondary Information Sources	65	(3)
Primary Data Collection	68	(2)
Overcoming Problems in Data Collection	70	(1)
Lessons from Chapter 3	70	(2)
Questions for Discussion	72	(1)
Exercises	72	(1)
CHAPTER 4: SWOT Analysis: A Framework for Developing Marketing Strategy	73	(27)
Introduction	73	(2)
Directives for a Productive SWOT Analysis	75	(4)
Stay Focused	75	(1)
Search Extensively for Competitors	76	(1)
Collaborate with Other Functional Areas	76	(1)
Examine Issues from the Customers' Perspective	77	(1)
Look for Causes, Not Characteristics	78	(1)
Separate Internal Issues from External Issues	79	(1)
The Elements of SWOT Analysis	79	(4)
Strengths and Weaknesses	80	(2)
Opportunities and Threats	82	(1)
SWOT-Driven Strategic Planning	83	(8)
Analysis of the SWOT Matrix	84	(2)
Leveraging Competitive Advantages	86	(4)
Establishing a Strategic Focus	90	(1)
Developing Marketing Goals and Objectives	91	(5)
Developing Marketing Goals	92	(1)
Developing Marketing Objectives	93	(3)
Moving Beyond Goals and Objectives	96	(1)
Lessons from Chapter 4	96	(2)
Questions for Discussion	98	(1)
Exercises	99	(1)
CHAPTER 5: Managing Customer Relationships	100	(34)
Introduction	100	(1)
Understanding Consumer Buying Behavior	101	(7)
The Consumer Buying Process	101	(5)
Factors Affecting the Consumer Buying Process	106	(2)
Understanding Business Buying Behavior	108	(5)
Unique Characteristics of Business Markets	110	(1)
The Business Buying Process	111	(2)
Managing Customer Relationships	113	(4)
Developing Relationships in Consumer Markets	114	(2)
Developing Relationships in Business Markets	116	(1)
Quality and Value: The Keys to Developing Customer Relationships	117	(7)
Understanding the Role of Quality	117	(2)
Delivering Superior Quality	119	(1)
Understanding the Role of Value	120	(3)
Competing on Value	123	(1)
Customer Satisfaction: The Key to Retaining Customers Over the Long Term	124	(4)
Satisfaction versus Quality versus Value	124	(1)
Customer Satisfaction and Customer Retention	125	(2)
Customer Satisfaction Metrics	127	(1)
Lessons from Chapter 5	128	(4)
Questions for Discussion	132	(1)
Exercises	133	(1)
CHAPTER 6: Market Segmentation, Target Marketing, and Positioning	134	(26)
Introduction	134	(1)
Market Segmentation Strategies	135	(7)
Traditional Approaches to Market Segmentation	135	(4)
Emerging Approaches to Market Segmentation	139	(3)
Criteria for Successful Segmentation	142	(1)
Bases for Segmenting Consumer Markets	142	(6)
Behavioral Segmentation	143	(2)
Demographic Segmentation	145	(1)
Psychographic Segmentation	146	(2)
Geographic Segmentation	148	(1)
Bases for Segmenting Business Markets	148	(1)
Target Marketing Strategies	149	(2)
Differentiation and Positioning	151	(5)
Differentiation Strategies	151	(3)
Positioning Strategies	154	(2)
Lessons from Chapter 6	156	(3)
Questions for Discussion	159	(1)
Exercises	159	(1)
CHAPTER 7: Product Strategy	160	(27)
Introduction	160	(1)
Product Classification	161	(5)
Consumer Product Classifications	161	(2)
Business Product Classifications	163	(1)
Product Lines and Product Mixes	164	(2)
New Product Development	166	(2)
Product Strategy throughout the Life Cycle	168	(7)
Development Stage	168	(2)
Introduction Stage	170	(1)
Growth Stage	171	(1)
Maturity Stage	172	(2)
Decline Stage	174	(1)
Branding Strategy	175	(5)
Key Issues in Branding	176	(3)
Packaging and Labeling	179	(1)
Marketing Strategy for Services	180	(3)
Product Issues in Services	180	(1)
Pricing Services	181	(1)
Promoting Service Benefits	182	(1)
Distributing Services	182	(1)
Lessons from Chapter 7	183	(2)
Questions for Discussion	185	(1)
Exercises	186	(1)
CHAPTER 8: Pricing Strategy	187	(27)
Introduction	187	(1)
The Role of Pricing in Marketing Strategy	188	(4)
The Seller's Perspective on Pricing	188	(2)
The Buyer's Perspective on Pricing	190	(1)
A Shift in the Balance of Power	190	(1)
The Relationship Between Price and Revenue	191	(1)
Major Determinants of Pricing Strategy	192	(3)
Pricing Objectives	192	(1)
Supply and Demand	192	(1)
The Firm's Cost Structure	193	(1)
Competition and Industry Structure	193	(1)
Stage of the Product Life Cycle	194	(1)
Other Elements of the Marketing Mix	195	(1)
Price Elasticity of Demand	195	(6)
Situations That Increase Price Sensitivity	196	(2)
Situations That Decrease Price Sensitivity	198	(1)
Price Elasticity and Yield Management	199	(2)
Pricing Strategies	201	(5)
Base Pricing Strategies	201	(2)
Adjusting Prices in Consumer Markets	203	(2)
Adjusting Prices in Business Markets	205	(1)
Fixed versus Negotiated Pricing	206	(2)
Legal and Ethical Issues in Pricing	208	(1)
Price Discrimination	208	(1)
Price Fixing	208	(1)
Predatory Pricing	208	(1)
Deceptive Pricing	209	(1)
Lessons from Chapter 8	209	(3)
Questions for Discussion	212	(1)
Exercises	212	(2)
CHAPTER 9: Distribution and Supply Chain Management	214	(20)
Introduction	214	(1)
Distribution and Supply Chain Concepts	214	(4)
Marketing Channel Functions	214	(3)
Channel Effectiveness and Efficiency	217	(1)
Strategic Issues in Distribution and Supply Chain Management	218	(3)
Marketing Channel Structure	218	(2)
Channel Integration	220	(1)
Creating and Enhancing Value in the Supply Chain	221	(1)
Conflict and Collaboration in the Supply Chain	221	(4)
The Basis of Conflict in the Supply Chain	222	(1)
Collaborative Supply Chains	223	(2)
Trends in Marketing Channels	225	(4)
Advancing Technology	225	(1)
Shifting Power in the Channel	226	(1)
Outsourcing Channel Functions	226	(2)
The Growth of Direct Distribution and Nonstore Retailing	228	(1)
The Growth of Dual Distribution	228	(1)
Legal and Ethical Issues in the Supply Chain	229	(2)
Dual Distribution	229	(1)
Exclusive Channel Arrangements	229	(1)
Tying Arrangements	230	(1)
Counterfeit Products	230	(1)
Lessons from Chapter 9	231	(2)
Questions for Discussion	233	(1)
Exercises	233	(1)
CHAPTER 10: Integrated Marketing Communications	234	(23)
Introduction	234	(1)
Strategic Issues in Integrated Marketing Communications	235	(2)
Advertising	237	(5)
Types of Advertising	238	(2)
Determining the Advertising Budget	240	(1)
Evaluating Advertising Effectiveness	241	(1)
Public Relations	242	(4)
Public Relations Methods	243	(1)
Negative Public Relations	244	(2)
Personal Selling and Sales Management	246	(4)
The Sales Management Process	247	(2)
The Impact of Technology on Personal Selling	249	(1)
Sales Promotion	250	(3)
Sales Promotion in Consumer Markets	251	(1)
Sales Promotion in Business Markets	252	(1)
Lessons from Chapter 10	253	(2)
Questions for Discussion	255	(1)
Exercises	256	(1)
CHAPTER 11: Marketing Implementation and Control	257	(35)
Introduction	257	(1)
Strategic Issues in Marketing Implementation	258	(7)
The Link Between Strategic Planning and Implementation	258	(3)
The Elements of Marketing Implementation	261	(4)
Approaches to Marketing Implementation	265	(3)
Implementation By Command	265	(1)
Implementation Through Change	266	(1)
Implementation Through Consensus	267	(1)
Implementation as Organizational Culture	267	(1)
Internal Marketing and Marketing Implementation	268	(4)
The Internal Marketing Approach	268	(2)
The Internal Marketing Process	270	(2)
Putting Internal Marketing into Action	272	(1)
Evaluating and Controlling Marketing Activities	272	(7)
Formal Marketing Controls	273	(4)
Informal Marketing Controls	277	(1)
Scheduling Marketing Activities	278	(1)
Lessons from Chapter 11	279	(2)
Questions for Discussion	281	(1)
Exercises	281	(2)
Appendix: Assessing the Financial Impact of the Marketing Plan	283	(9)
Introduction	283	(1)
The Financial Assessment Process	284	(9)
Contribution Analysis	284	(1)
Response Analysis	285	(1)
Systematic Planning Models	286	(6)
CHAPTER 12: Marketing Ethics and Social Responsibility	292	(24)
Introduction	292	(1)
The Role of Ethics and Social Responsibility in Marketing Strategy	293	(5)
Dimensions of Social Responsibility	293	(2)
Marketing Ethics and Strategy	295	(2)
The Challenges of Being Ethical and Socially Responsible	297	(1)
Deceptive Practices in Marketing	298	(3)
Deceptive Communication and Promotion	299	(1)
Regulating Deceptive Marketing Practices	300	(1)
Organizational Determinants of Marketing Ethics and Social Responsibility	301	(4)
Codes of Conduct	302	(2)
Marketing Ethics and Leadership	304	(1)
Ethics, Social Responsibility, and Marketing Performance	305	(2)
Incorporating Ethics and Social Responsibility Into Strategic Planning	307	(3)
Lessons from Chapter 12	310	(2)
Questions for Discussion	312	(1)
Exercises	312	(4)
CASES
1. Napster 2.0: The Cat Is Back	316	(14)
2. Saturn	330	(9)
3. Mattel, Inc.	339	(12)
4. CART: Championship Auto Racing Teams	351	(7)
5. DoubleClick, Inc.	358	(8)
6. The Gillette Company	366	(10)
7. The Sunbeam Corporation: Coming Back from the Brink of Failure	376	(10)
8. Bass Pro Shops	386	(9)
9. The National D-Day Memorial and Bedford, Virginia	395	(7)
10. New Belgium Brewing Company: Environmental and Social Responsibilities	402	(6)
11. USA Today: The Nation's Newspaper and the World's Online News Source	408	(11)
12. J. Petermans Living Two Dreams	419	(7)
13. FedEx Corporation	426	(7)
14. Kentucky Fried Chicken and the Global Fast-Food Industry	433	(25)
15. Marketing at the Vanguard Group	458	(20)
16. Singapore Airlines: Customer Service Innovation (A)	478	(26)
17. Cola Wars In China: The Future Is Here	504	(17)
18. McDonald's and the Hotel Industry	521	(9)
19. Prosoft Systems Canada (A)	530	(15)
20. Prosoft Systems Canada (B)	545	(2)
APPENDIX A: Marketing Plan Worksheets	547	(14)
APPENDIX B: Example Marketing Plans	561	(36)
Endnotes	597	(12)
Company and Brand Index	609	(8)
Name Index	617	(2)
Subject Index	619