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Giáo trình chiến lược Marketing cho nhà quản trị, theo chương trình học của Đại học Kinh tế Thành phố Hồ Chí Minh (UEH) Hoạch định chiến lược marketing hiệu quả trong thời đại bùng nổ của công nghệ. Since the sixth edition of this book, published in 2017, many economies around the world have continued to feel the aftershocks of the deepest recession since the Great Depression of the 1930s, which started with the wellpublicised ‘credit crunch’. Despite continuing academic debate about the causes and extent, there is now little doubt that climate change and global warming is beginning to have a significant impact on our physical environment. Technology and the evergrowing acceptance and use of social media are having a profound effect on customer expectations, experience and behaviour. Despite ongoing economic difficulties and turbulence, climate change has not been ignored, and it presents significant challenges and opportunities for businesses. Sustainable energy technologies, such as wind, solar, wave and thermal biomass, are now being pursued more vigorously and attempts to reduce energy consumption (of cars, buildings and airplanes) are creating new business opportunities. Increasingly, companies, public sector organisations, individuals and nations are adopting and implementing measures, such as sourcing more raw materials locally to reduce ‘carbon miles’ and limiting the use of highemission travel options to reduce their carbon footprint.
MARKETING STRATEGY AND COMPETITIVE POSITIONING SEVENTH EDITION GRAHAM HOOLEY BRIGITTE NICOULAUD JOHN M RUDD NICK LEE MARKETING STRATEGY AND COMPETITIVE POSITIONING At Pearson, we have a simple mission: to help people make more of their lives through learning We combine innovative learning technology with trusted content and educational expertise to provide engaging and effective learning experiences that serve people wherever and whenever they are learning From classroom to boardroom, our curriculum materials, digital learning tools and testing programmes help to educate millions of people worldwide – more than any other private enterprise Every day our work helps learning flourish, and wherever learning flourishes, so people To learn more, please visit us at www.pearson.com/uk Seventh edition MARKETING STRATEGY AND COMPETITIVE POSITIONING Graham Hooley • Brigitte Nicoulaud • John M Rudd • Nick Lee Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong Tokyo • Seoul • Taipei • New Delhi • Cape Town • São Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan PEARSON EDUCATION LIMITED KAO Two KAO Park Harlow CM17 9SR United Kingdom Tel: +44 (0)1279 623623 Web: www.pearson.com/uk First published in 1993 as Competitive Positioning: The key to market success (print) Second edition published 1998 by Prentice Hall Europe (print) Third edition published 2004 (print) Fourth edition published 2008 (print) Fifth edition published 2012 (print) Sixth edition published 2017 (print and electronic) Seventh edition published 2020 (print and electronic) © Prentice Hall International (UK) Ltd 1993, 1998 (print) © Pearson Education Limited 2004, 2008, 2012 (print) © Pearson Education Limited 2017, 2020 (print and electronic) The rights of Graham Hooley, Brigitte Nicoulaud, John M Rudd and Nick Lee to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988 The print publication is protected by copyright Prior to any prohibited reproduction, storage in a retrieval system, distribution or transmission in any form or by any means, electronic, mechanical, recording or otherwise, permission should be obtained from the publisher or, where applicable, a licence permitting restricted copying in the United Kingdom should be obtained from the Copyright Licensing Agency Ltd, Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN The ePublication is protected by copyright and must not be copied, reproduced, transferred, distributed, leased, licensed or publicly performed or used in any way except as specifically permitted in writing by the publishers, as allowed under the terms and conditions under which it was purchased, or as strictly permitted by applicable copyright law Any unauthorised distribution or use of this text may be a direct infringement of the authors’ and the publisher’s rights and those responsible may be liable in law accordingly All trademarks used herein are the property of their respective owners The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners Pearson Education is not responsible for the content of third-party internet sites The Financial Times With a worldwide network of highly respected journalists, The Financial Times provides global business news, insightful opinion and expert analysis of business, finance and politics With over 500 journalists reporting from 50 countries worldwide, our in-depth coverage of international news is objectively reported and analysed from an independent, global perspective To find out more, visit www.ft.com/pearsonoffer ISBN: 978-1-292-27654-0 (print) 978-1-292-27657-1 (PDF) 978-1-292-27655-7 (ePub) British Library Cataloguing-in-Publication Data A catalogue record for the print edition is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Hooley, Graham J., author | Nicoulaud, Brigitte, author | Rudd, John M., author Title: Marketing strategy & competitive positioning / Graham Hooley, Brigitte Nicoulaud, John M Rudd, Nick Lee Other titles: Marketing strategy and competitive positioning Description: Seventh edition | Harlow ; New York : Pearson, 2020 | Includes bibliographical references and index | Summary: “Since the sixth edition of this book, published in 2017, many economies around the world have continued to feel the aftershocks of the deepest recession since the Great Depression of the 1930s, which started with the well-publicised ‘credit crunch’ Despite continuing academic debate about the causes and extent, there is now little doubt that climate change and global warming is beginning to have a significant impact on our physical environment Identifiers: LCCN 2019050392 (print) | LCCN 2019050393 (ebook) | ISBN 9781292276540 (print) | ISBN 9781292276557 (epub) | ISBN 9781292276571 (PDF) Subjects: LCSH: Target marketing | Marketing—Management Classification: LCC HF5415.127 H66 2020 (print) | LCC HF5415.127 (ebook) | DDC 658.8/02—dc23 LC record available at https://lccn.loc.gov/2019050392 LC ebook record available at https://lccn.loc.gov/2019050393 10 24 23 22 21 20 Cover: © echo3005/Shutterstock Print edition typeset in 10/12pt Sabon MT Pro by SPi Gobal Print edition printed in Slovakia by Neografia NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION BRIEF CONTENTS Preface Acknowledgements Publisher’s acknowledgements xi xiv xv PART MARKETING STRATEGY MARKET-LED STRATEGIC MANAGEMENT STRATEGIC MARKETING PLANNING PART COMPETITIVE MARKET ANALYSIS 28 55 THE CHANGING MARKET ENVIRONMENT 56 CUSTOMER ANALYSIS 94 COMPETITOR ANALYSIS 114 UNDERSTANDING THE ORGANISATIONAL RESOURCE BASE 140 PART IDENTIFYING CURRENT AND FUTURE COMPETITIVE POSITIONS 169 SEGMENTATION AND POSITIONING PRINCIPLES 170 SEGMENTATION AND POSITIONING RESEARCH 202 SELECTING MARKET TARGETS 230 PART COMPETITIVE POSITIONING STRATEGIES 255 10 CREATING SUSTAINABLE COMPETITIVE ADVANTAGE 256 11 COMPETING THROUGH THE EVOLVING MARKETING MIX 287 12 COMPETING THROUGH INNOVATION 320 13 COMPETING THROUGH SUPERIOR SERVICE AND CUSTOMER RELATIONSHIPS 354 PART IMPLEMENTING THE STRATEGY 385 14 STRATEGIC CUSTOMER MANAGEMENT AND THE STRATEGIC SALES ORGANISATION 387 15 STRATEGIC ALLIANCES AND NETWORKS 423 vi BRIEF CONTENTS 16 STRATEGY IMPLEMENTATION AND INTERNAL MARKETING 452 17 CORPORATE SOCIAL RESPONSIBILITY AND ETHICS 485 PART CONCLUSIONS 18 MARKETING IN THE TWENTY-FIRST CENTURY References Index 521 522 544 569 CONTENTS Preface Acknowledgements Publisher’s acknowledgements xi xiv xv MARKETING STRATEGY CHAPTER Introduction 1.1 The marketing concept and market orientation 1.2 The resource-based view of marketing 1.3 Organisational stakeholders 1.4 Marketing fundamentals 1.5 The role of marketing in leading strategic management Summary Case study: LEGO builds new dimension with digital vision COMPETITIVE MARKET ANALYSIS CHAPTER PART MARKET-LED STRATEGIC MANAGEMENT PART 12 14 19 23 25 25 CHAPTER STRATEGIC MARKETING PLANNING 28 Introduction 2.1 Defining the business purpose or mission 2.2 The marketing strategy process 2.3 Establishing the core strategy 2.4 Creation of the competitive positioning 2.5 Implementation Summary Case study: Amazon eyes online sales boost through ‘Fire’ smartphone 29 30 THE CHANGING MARKET ENVIRONMENT 56 Introduction 3.1 A framework for macro-environmental analysis 3.2 The economic and political environment 3.3 The social and cultural environment 3.4 The technological environment 3.5 Changes in marketing infrastructure and practices 3.6 New strategies for changing macro-environments 3.7 The Five Forces model of industry competition 3.8 The product life cycle 3.9 Strategic groups 3.10 Industry evolution and forecasting 3.11 Environmental stability 3.12 SPACE analysis 3.13 The Advantage Matrix Summary Case study: Dyson: A British inventor pivots to Asia 57 58 59 61 65 68 70 72 76 78 81 83 85 87 89 90 33 34 44 47 50 51 CHAPTER CUSTOMER ANALYSIS Introduction 4.1 What we need to know about customers 4.2 Marketing research 4.3 The marketing research process 4.4 Organising customer information Summary Case study: Amazon and Google lead way on virtual assistant dealmaking at CES 94 95 95 98 106 107 111 111 viii CONTENTS CHAPTER COMPETITOR ANALYSIS 114 Introduction 5.1 Competitive benchmarking 5.2 The dimensions of competitor analysis 5.3 Choosing good competitors 5.4 Obtaining and disseminating competitive information Summary Case study: Adidas kicks off US drive to close in on Nike 115 116 118 131 133 136 137 CHAPTER UNDERSTANDING THE ORGANISATIONAL RESOURCE BASE Introduction 6.1 Marketing resources as the foundation for differentiation 6.2 Value-creating disciplines 6.3 The resource-based view of the firm 6.4 Creating and exploiting marketing assets 6.5 Developing marketing capabilities 6.6 Dynamic marketing capabilities 6.7 Resource portfolios 6.8 Developing and exploiting resources Summary Case study: Why Ford is stalling in China while Toyota succeeds 140 141 142 143 145 149 158 159 161 163 164 164 PART IDENTIFYING CURRENT AND FUTURE COMPETITIVE POSITIONS Introduction 7.1 Principles of competitive positioning 7.2 Principles of market segmentation 7.3 The underlying premises of market segmentation 7.4 Bases for segmenting markets 7.5 Segmenting consumer markets 7.6 Segmenting business markets 7.7 Identifying and describing market segments 7.8 The benefits of segmenting markets 7.9 Implementing market segmentation 198 199 CHAPTER SEGMENTATION AND POSITIONING RESEARCH Introduction 8.1 A priori segmentation approaches 8.2 Post hoc/cluster-based segmentation approaches 8.3 Qualitative approaches to positioning research 8.4 Quantitative approaches to positioning research Summary Case study: How millennials became the world’s most powerful consumers 202 203 205 208 215 217 225 226 CHAPTER SELECTING MARKET TARGETS Introduction 9.1 The process of market definition 9.2 Defining how the market is segmented 9.3 Determining market segment attractiveness 9.4 Determining current and potential strengths 9.5 Making market and segment choices 9.6 Alternative targeting strategies Summary Case study: No-frills Ryanair faces test with Business Plus 230 231 233 235 236 244 246 248 250 251 PART COMPETITIVE POSITIONING STRATEGIES CHAPTER SEGMENTATION AND POSITIONING PRINCIPLES Summary Case study: Turning right: First-class air travel is in decline 170 171 173 175 175 177 177 189 193 194 195 CHAPTER 10 CREATING SUSTAINABLE COMPETITIVE ADVANTAGE Introduction 10.1 Using organisational resources to create sustainable competitive advantage 10.2 Generic routes to competitive advantage 10.3 Achieving cost leadership 10.4 Achieving differentiation 10.5 Sustaining competitive advantage 10.6 Offensive and defensive competitive strategies 256 257 257 259 260 263 272 274 CONTENTS Summary Case study: Volvo’s heart will ‘remain in Sweden’ 285 286 CHAPTER 11 COMPETING THROUGH THE EVOLVING MARKETING MIX Introduction 11.1 The market offer 11.2 Pricing strategies 11.3 Communications strategies 11.4 Distribution strategies 11.5 The extended marketing mix – people, processes and physical evidence 11.6 New businesses and business models 11.7 The connected marketing mix Summary Case study: How ABB FIA Formula E championship built a fan base from scratch 288 288 300 305 311 314 315 317 317 318 COMPETING THROUGH INNOVATION 320 Introduction 12.1 Innovation strategy 12.2 New products 12.3 Planning for new products 12.4 The new product development process 12.5 Speeding new product development 12.6 Organising for new product development Summary Case study: Apple moves into fashion business with Watch launch 321 322 337 340 342 348 349 351 352 CHAPTER 13 Introduction 13.1 The goods and services spectrum 13.2 Service and competitive positioning 13.3 Relationship marketing 13.4 Customer service 13.5 Providing superior service 13.6 Customer relationship management 13.7 E-service quality 13.8 Measuring and monitoring customer satisfaction Summary Case study: Property portals hand control to homeowners PART IMPLEMENTING THE STRATEGY CHAPTER 14 287 CHAPTER 12 COMPETING THROUGH SUPERIOR SERVICE AND CUSTOMER RELATIONSHIPS ix 354 355 359 361 364 369 370 373 375 377 380 381 STRATEGIC CUSTOMER MANAGEMENT AND THE STRATEGIC SALES ORGANISATION Introduction 14.1 Priorities for identifying strategic sales capabilities 14.2 The new and emerging competitive role for sales 14.3 The strategic sales organisation 14.4 Strategic customer management tasks 14.5 Managing the customer portfolio 14.6 Dealing with dominant customers Summary Case study: Power of the ‘mummies’ key to Nestlé’s strategy in DR Congo 387 388 391 394 397 404 406 408 419 420 CHAPTER 15 STRATEGIC ALLIANCES AND NETWORKS 423 Introduction 15.1 Pressures to partner 15.2 The era of strategic collaboration 15.3 The drivers of collaboration strategies 15.4 Network forms 15.5 Alliances and partnerships 15.6 Strategic alliances as a competitive force 15.7 The risks in strategic alliances 15.8 Managing strategic alliances Summary Case study: UPS and FedEx turn focus to consumer behaviour 424 425 429 430 434 436 440 442 443 448 449 CHAPTER 16 STRATEGY IMPLEMENTATION AND INTERNAL MARKETING Introduction 16.1 The strategy implementation challenge in marketing 16.2 The development of internal marketing 16.3 The scope of internal marketing 16.4 Planning for internal marketing 16.5 Cross-functional partnership as internal marketing 16.6 Implementation and internal marketing Summary 452 453 457 460 461 471 473 480 481 INDEX living patterns and lifestyles 64 lobby groups and CSR 505–6 location factors in cost leadership 263 Lockheed Martin 441 Long, Carola 202–3 Loof, Torbjorn 482–4 The Lord of the Rings (LOTR) 298 L’Oréal loss leaders 304 low-interest finance 304 low service strategy 362–3 loyal buyers 189 loyalty in CRM 367–8 financial benefits 367 social benefits 367–8 Lucozade 249–50 Luxottica 440 luxury car market 80–1 luxury innovators 189 macro-environments 58–9 marketing strategies 71 new strategies 70–2 Mahindra & Mahindra 336 Maignan, I and Ferrell, O.C 494 major account orientation 408, 409 major account resource commitment 408–9 major accounts, customers as 407, 408 management strength and depth in target markets 246 managerial interface in customer analysis 109 managerial segmentation 195–6 managerial skills for sustainable competitive advantage 285 managers 16 managers and CSR 507 perceptions of 515 Mansfield, Sarah 273 Manson, Katrina 420–2 Marconi 417 Marcus, Stanley 233 margins, market attractiveness 239 market attractiveness 44–5 market boundaries blurring of 431 changes in 244 market complexity 431–2 market domination in customer-based marketing assets 154 market entry threats in Five Forces model 73–4 market environment, changes 56–93 Advantage Matrix 87–9 competition 58 economic and political environment 59–61 European Single Market 60–1 internationalisation and globalisation 61 environmental stability 83–5 Five Forces model of competition 72–6 buyers’ bargaining power 75 competitiveness drivers 75–6 market entry threats 73–4 rivalry 72–3 substitution threats 74 suppliers’ bargaining power 74–5 industry evolution and forecasting 81–3 macro-environment 58–9 new strategies 70–2 marketing strategies 71–2 marketing infrastructure and practices 68–70 globalisation of markets 68–9 role of marketing 69–70 PEST analysis 58–9 product life cycle (PLC) 76–8 social and cultural environment 61–5 demographic change 62 grey market 62 living patterns and lifestyles 64 multi-ethnic societies 63–4 pressures on organisations 64–5 youth market 62–3 SPACE analysis 85–7 strategic groups 78–81 technological environment 65–8 commercialisation times 65–6 Internet of Things (IoT) 66–7 pressures on organisations 66–8 market expansion for sustainable competitive advantage 274–5 market factors in market attractiveness 238–9 market launching 347–8 market maintenance for sustainable competitive advantage 278 market management organisation 49 market models for customer analysis 108–9 market niche strategies for sustainable competitive advantage 282–3 choice of niche 282–3 focusing effort 283 market offer in marketing mix 288–300 diffusion of innovation 290–2 impact of Internet 297–300 atom-based products 297 bit-based products 298 customer service and support 298–9 key product/service concepts 289 product life cycle 292–7 product/service choice criteria 289–90 product/service differentiation 290 market orientation 145 assessment 10–12 components and context heightened 531 high levels 18 in internal planning 471 networked operations 446–7 market performance measures 49 financial 50 Market Research Society 180, 181 581 582 INDEX market segmentation 170–201 autonomous vehicles (AV) 170–1 bases for 177 benefits of 194–5 business markets 189–93 attitudinal characteristics 191–2 background company characteristics 190–1 behavioural characteristics 192–3 summary 193 consumer markets 177–89 background customer characteristics 177–86 customer attitudinal characteristics 186–7 customer behavioural characteristics 187–9 distinction with competitive positioning 171–3 identifying and describing 193–4 implementation of 195–8 scope and purpose 195 sources of problems 196–8 strategic, managerial and operational levels 195–6 in internal marketing 472 principles 175 selecting market targets 235–6 underlying premises 176–7 implementation of strategies 177 methodology 176 robustness, testing 176 strategic decisions 177 market segments attractiveness, in selecting targets 236–44, 247 change, impact of 242–4 competitive factors competitive intensity 239–40 differentiation, degree of 240 quality of competition 239–40 substitution, threat of 240 criteria, clear and explicit 242 economic and technological factors 237–8 bargaining power of suppliers 239 barriers to entry 238 barriers to exit 238–9 investment 239 level of technological utilisation 239 margins available 239 general business environment 240–2 economic fluctuations, exposure to 240 political and legal factors, exposure to 240 regulation, degree of 240–1 social acceptability and physical environment impact 241 market factors 237–8 bargaining power of customers 238 predictability 238 price elasticity and sensitivity 238 seasonality and cyclicality of demands 238 segment growth rate 237 size of segment 237 stage of industry evolution 237–8 first- and second-order 194 making choices 246–8 market-sensing capability 160 market share, rate of change 245 market strategy 471 market-targeting capabilities 161 market targets 230–52 alternative strategies 248–50 concentrated marketing 248, 249–50 customised marketing 250 differentiated marketing 248, 249 undifferentiated marketing 248 capability profile 245–6 clear, tight definition of 273 in competitive positioning 44–5 core business 232 current and potential strengths 244–6 current market position 244–5 economic and technological position 245 making segments choices 246–8 market definitions 233–4, 233–5 competitor-defined markets 233–4 customer-defined markets 233–4 different 233 ecosystem marketing 235 jobs-to-be-done theory 235 product-customer matrix 234 market segment attractiveness 236–44, 247 change, impact of 242–4 competitive factors 239–40 criteria, clear and explicit 242 economic and technological factors 238–9 general business environment 240–2 market factors 237–8 market segmentation 235–6 market or markets served 235–6 marketing to communities 236 products or services offered 235 strategic traps dead-end business 231 illusion business 231 peripheral business 231 market testing of new products 347 marketing alignment with sales 389 to communities 236 competitive arena, changing 525–9 business environment, changes in 525–7 markets, changes in 527–8 competitive positioning strategies 534–41 customised 540–1 differentiated benefits 538–40 innovation 536–7 price 535 quality 535–6 service 538 concept 6–10 definitions 6–8 fundamentals 19–23 and change 22–3 competitive advantage 20 INDEX everyone’s job 21 focus on customers 19–20 market heterogeneity 21–2 product benefits 20–1 infrastructure and practices 68–70 role of marketing 69–70 misconceptions about 21 in network organisations 447 organisational change 529 orientation 8–10 definitions resource-based view of 12–14 role of in marketing infrastructure 69–70 scrutiny of activities 389–90 in strategic management 23–5 strategy, fundamentals of heightened market orientation 531 key customers, closer relationships 532–3 learning organisation 530–1 marketing role, rethinking 533–4 positioning assets, capabilities and competencies 531–2 superior customer value 530–1 marketing analytics for customer analysis 109 marketing and sales in value-chain analysis 126 marketing assets 148, 149–58, 531–2 alliance-based 157–8 company-based brands 151–3 company name and reputation 150–1 customer-based country of origin (COO) 153–4 market domination 154 superior products and services 154 internal marketing support copyrights and patents 157 corporate culture 157 cost advantages 156 existing customer base 156 franchises and licenses 157 information systems and market intelligence 156 partnerships 157 production expertise 157 technological skills 156–7 supply chain delivery lead-time and security of supply 155 distribution control 154–5 distribution networks 154 distribution uniqueness 155 pockets of strength 155 supply network 155 marketing capabilities 158–9 advertising, promotion and selling 159 distribution 159 pricing and tendering 159 product and service management 158–9 marketing challenge in strategy implementation 457–60 marketing channel networks 436 marketing decision support systems (MDSS) 108, 110 characteristics of 110 data-orientated 110 model-orientated 110 ‘marketing department marketing’ misconception 21 marketing evaluation 473 marketing exchange companies 436 marketing information system (MIS) 107, 109 marketing-led strategic management 4–27 competitive positioning 24 identification of customer requirements 24 marketing concept 6–10 marketing fundamentals 19–23 marketing orientation 8–10 marketing strategy 24–5 organisational stakeholders 14–19 contribution of marketing to stakeholder objectives 18–19 resource-based marketing 12–14 marketing metrics 50 marketing mix 43, 287–319, 297 4Cs 317 4Ps of 288 communications strategies 305–11 AIDA model 306 decisions 306–7 Internet use 308–11 process 305 tools 307–8 competitors 124–5 connected 317 in consumer markets 188 distribution strategies 311–13 channels 311–12 effects of Internet 312–13 extended mix 314–15 people 314 physical evidence 315 processes 314–15 market offer 288–300 diffusion of innovation 290–2 impact of Internet 298–300 key product/service concepts 289 product life cycle 292–7 product/service choice criteria 289–90 product/service differentiation 290 new businesses and models 315–17 Internet pioneers 315–16 Internet pragmatists 316–17 unicorn companies 317 pricing strategies 300–5 considerations 300–1 customer value 302–3 effects of the Internet 304–5 methods 303–4 price elasticity of demand 302 promotional 304 in strategic marketing planning 47–8 marketing objectives 41–2 583 584 INDEX marketing organisation of competitors 125 marketing programmes 472–3 marketing research 95, 98–106 company records 98–9 off-the-peg research 100–1 process 106–7 analysis and interpretation 107 exploratory research 106–7 problem definition 106 quantitative research 107 tailor-made research 101–6 marketing resources 142–3 capabilities 148–9 dynamic capabilities 149 dynamic marketing capabilities 159–61 exploitable 245 marketing assets 148, 149–58 marketing capabilities 158–9 marketing strategies 71–2 and CSR 490–2 differentiation 71 leverage 71, 72 measuring success 71 marketing strategy process 33–4 marketing strength in target markets 246 marketing turbulence 83, 84 markets adjustments in 333 analysis of 38–40 changes in 233, 242–3, 527–8 competitor-defined 233–4 current position exploitable marketing resources 245 market share, rate of change 245 relative market share 244 unique and valued products and services 245 customer-defined 233–4 differences from industries 57–8 economic and technological position 245 globalisation 68–9 and industries, compared 233 reinventing of 243–4 Marks & Spencer 536 Maroto, Luis 94 Marriott 462 Mars 32 Martini 185 MasterCard 423–4 maturity phase of product life cycle 77–8, 294 mavericks 343 Mayfield, Sir Charlie 18 McDonald, Malcolm 195 McDonald’s 287–8 and CSR 485–6 employee buy-in 454–5 McLibel case 486 strategic alliances 433 McKinsey/GE Business Screen 246 Mercedes 439 Merck 441 Microsoft and CRS 511–12 standards on employee diversity 491 Microsoft Office 88 middle markets, customers as 407 migrators in value innovation 331 millennials (case study) 226–9 Millennium Commission 30 Milne, Richard 25–7, 482–4 Mishkin, Sarah 51–2 mission defining 30–3 formulation 31–3 mission statements 31–3 distinctive competencies of organisations 33 market definition 33 positioning 33 strategic intent 32 value of organisation 32 MIT team 511 mobile defence for sustainable competitive advantage 280–1 modifications in new product innovation 341–2 Moncler 140–1 Monster 435 Montagne, Amy 202, 203 Mooney, Andy 39 Moore, G.A 291–2, 537 MoreThan 320–1 Moss Kanter, Rosabeth 487 most valuable customers, service to 366 Motorola 454 Movebubble 382 multi-channel customer management 312–13 multi-ethnic societies 63–4 multi-mode marketing 71 multi variable segmentation research 207–8 multidimensional analysis in quantitative positioning 219–25 market segment locations 224–5 perception, dimensions of 222–4 product positions 221 mutually beneficial exchanges National Trust 224 natural environment 16–17, 65 NCR Corporation 437 Nespresso 269 Nest Laboratories 441, 511 Nestlé 310, 337, 505, 514 case study 420–2 Netflix 524 networks 429 characteristics 429–30 commitment and interdependence 442 damage by association 443 forms 434–6 inter-organisational ties 430 management of 444–6 components 445 INDEX drivers 445 facilitators 445 market orientation and customer service 445–6 marketing 447 network effectiveness 445 organisational change 445 partners, choice of 445 power 442 sharing model 431–2 social norms 442–3 trust 442 Uber 431–2 see also strategic alliances and networks New Line Cinema 298 new product chasm 292 new product development see products; new new product lines 342 new-to-the-world products 342 niche strategies for sustainable competitive advantage 282–3 Nike 126, 270–1 brand differentiation 271 brand establishment 273–4 case study 137–9 and CSR 494 female footwear 202–3 negative criticism 455 Nokia 186 North American Standard Industrial Classification System (NASICS) 206 Norton Antivirus 299 Novartis 441 observation techniques 104 Ocado 427, 434 off-road vehicles 43 off-the-peg research 100–1 primary research 100 secondary desk research 100 shared research 101 syndicated research 100–1 offensive strategies for sustainable competitive advantage 274–85 old economy 316 O’Leary, Michael 252, 362, 453 omnibus research 101 omnichannel 313 One Laptop Per Child (OLPC) project 511 one-to-one marketing 250, 540–1 Oneworld 439 open source innovation 335 operational excellence in value disciplines 143–4 operational segmentation 195–6 operational systems as market segmentation problem 197 operations in value-chain analysis 125 opportunity networks 436 organic farming 498 organisation structure as market segmentation problem 197 organisational approaches in strategic marketing planning 48–9 585 organisational assets 147 organisational capabilities 147 organisational change 529 organisational creep 348 organisational culture 8, 12 organisational drag 400 organisational learning 530–1 organisational resource base 140–67 developing and exploiting 163 dynamic marketing capabilities 159–61 absorptive marketing learning 160–1 market-sensing 160 adaptive marketing customer relationship management 161 market-targeting and positioning 161 innovative marketing 161 marketing assets 149–58 alliance-based 157–8 customer-based brands 151–3 company name and reputation 150–1 country of origin (COO) 153–4 market domination 154 superior products and services 154 internal marketing support 155–7 copyrights and patents 157 corporate culture 157 cost advantages 156 existing customer base 156 franchises and licenses 157 information systems and market intelligence 156 partnerships 157 production expertise 157 technological skills 156–7 supply chain 154–5 delivery lead-time and security of supply 155 distribution control 154–5 distribution networks 154 distribution uniqueness 155 pockets of strength 155 supply network 155 marketing capabilities 158–9 advertising, promotion and selling 159 distribution 159 pricing and tendering 159 product and service management 158–9 marketing resources 142–3 isolating mechanisms 142–3 sustainable competitive advantage (SCA) 142 resource-based view of the firm 145–9 dynamic capabilities 147–9 theoretical foundations 146–7 resource portfolios 161–2 value-creating disciplines 143–5 organisational resources 34–8 organisational stakeholders 14–19 contribution of marketing to stakeholder objectives 18–19 organisational support for innovation 350 586 INDEX organisational values 32 organisations distinctive competencies 33 positioning 33 pressures on 64–5, 66–8 original equipment manufacturer (OEM) 446 O’Shaughnessy, J 122 ostriches, new product category 337 Otis 538 outbound logistics in value-chain analysis 125–6 outside-in competencies 532, 540 outsourcing 437–8 over-positioning 174, 175 over-servicing 363–4 overheads 127 Oxfam 105 packaging for product differentiation 267 palm oil 310, 514, 518–19 Palma, Stefania 90–3 Palmatier, R and Sridhar, S 205 Palmisano, Samuel 395, 427 paranoids, technology customers 291 Paris Climate Conference (COP21) 17 Parker, Mark 270–1 Parker Pens 31 part-time marketers 455, 461 partners, services to 366 partnerships and alliances 436–40 joint ventures 439–40 outsourcing 437–8 vertical integration 440 characteristics of 438–9 pressure for 425–9 partnerships in internal marketing support assets 157 patents in internal marketing support assets 157 pearls, new product category 337 people in extended marketing mix 314 in triple bottom line 65 People for the Ethical Treatment of Animals (PETA) 502–3, 506 PeopleMeters 104 Pepsi 78–9, 152, 441 perceived value pricing 303 perception and preferences segmentation in consumer markets 186 perception, dimensions of in quantitative positioning 222–4 perceptual blocks to innovation 349 perceptual mapping techniques 107 perceptual maps 222, 223, 224 performance assessment of strategic alliances 447–8 performance measures financial 50 market 49 peripheral business 231 Persil 281 personal brands 152 personal interviews 103 personal relationships versus analysis mindset 477 personal selling 307 personality characteristics in segmentation 184 personality inventories 207 perverse customers 332–3 medicine 332–3 privacy 333 train fares 332 PEST analysis 58–9 pet insurance 320–1 Pew Research Center 227, 228 pharmaceuticals industry 323 fines for companies 389 philanthropy 495, 514 Phillips 517 physical environment 16–17, 65 physical environment impact and market attractiveness 241 physical evidence in marketing mix 315 Piercy, N.F 232, 326 Piercy, N.F and Morgan, N.A 176, 197 pioneers for build strategies 285 technology customers 290 in value innovation 331 PitPat 320–1 planet, in triple bottom line 65 PlanetTran 514–15 planning for internal marketing 471–3 Plimmer, Gill 56–7 pockets of strength in the supply chain assets 155 policy choices in cost leadership 262 political environment 59–61 political factors and market attractiveness 240 Polman, Paul 497 Pooler, Michael 90–3 pop-up advertising 309 Porsche 540 Porter, M.E and Kramer, M.R 496, 503, 508–9, 510, 514 Porter, Michael 12–13, 126–7, 256 competitive convergence trap 144, 145 market targets 232 portfolio analysis 35–6, 37 portfolio matrices 246 portfolio planning in core strategy 36–8 allocation of resources 37 analysing portfolio balance 37 business strategies 37 portfolios of resources 161–2 position defence for sustainable competitive advantage 278 positioning capabilities 161 positioning research qualitative approaches 215–17 projective techniques 216 stimuli 216–17 quantitative approaches 217–25 alternative algorithms 225 attribute profiling methods 218–19 multidimensional positioning analysis 219–25 INDEX market segments locations 224–5 perception, dimensions of 222–4 product positions 221 post hoc/cluster-based approaches to segmentation boundaries, setting 209–10 data analysis 211–13 data collection 210–11 implementation 214–15 validation 213–14 postal surveys 103, 104 potential product 264, 269 Powell, Matt 137 power as risk in strategic alliances 442 power structures, segmentation by 191 pre-emptive defence for sustainable competitive advantage 280 pre-launch phase of product life cycle 293 predictability, market attractiveness 238 predictive expectations 370 PREFMAP 223, 224, 225 pressure groups 65 Pret A Manger 4, 105 price comparison websites 528 price differentiation 270 price elasticity of demand in pricing strategies 301, 302 market attractiveness 238 price element of internal marketing 467–8 price fixing 488 price positioning 535 price-seekers 189 pricing capability 159 pricing strategies in marketing mix 300–5 considerations competitor pricing levels 301 corporate objectives 301 desired competitive positioning 301 economic value to customer (EVC) 301 price elasticity of demand 301 production costs 300–1 customer value 302–3 effects of the Internet 304–5 methods 303–4 cost plus pricing 303 going rate pricing 303 perceived value pricing 303 sealed bids 304 price elasticity of demand 302 promotional 304 Primark 501 business model 512 primary research 100 privacy 333 private jets 201 proactive cannibalisation 330–1 process improvement 23 processes in extended marketing mix 314–15 Procter & Gamble 125, 334, 335 collaboration 426–7 customer business development 388 merger with Gillette 418 open innovation 335 strategic alliances 426, 434 product and service management capability 158–9 product application, segmentation by 191 product (brand) management 48 product-customer matrix 234 product development in new product innovation 346–7 product differentiation in sustainable competitive advantage 263–9, 290 augmentation 266 bases for 268–9 branding 267 core and expected product 264–5 design 267 packaging 267 quality 266–7 service 267–8 product element of internal marketing 467 product-feature preferences, internal market segmentation 472 product improvement 23 product leadership in value disciplines 144 product life cycle (PLC) 36, 76–8, 292–7 decline phase 78, 294–5 growth phase 77, 294 introduction phase 76–7, 294 launch 293–4 maturity phase 77–8, 294 pre-launch 293 reverse positioning 296 stealth positioning 297 tunnel vision 296 turning points 295–6 product portfolio in core strategy 35–6 product positions in quantitative positioning 221 product push marketing 13 product status and volume, segmentation by 192–3 production costs in pricing strategies 300–1 products atom-based 297, 312 bit-based 298, 312 in marketing mix choice criteria 289–90 key concepts 289 new 337–40 categories 337, 341–2 development process 342–8 business analysis 346 commercialisation 347–8 idea generation 342–4 market testing 347 product development 346–7 screening 344–6 failures 339–40 market knowledge and marketing proficiency 338 organising for new product development 349–51 587 588 INDEX products (continued ) planning for 340–2 process 340–2 speeding development process 348–9 successful 337–8 technical and production synergies and proficiency 339 uniqueness/superiority 338 offered in market segmentation 235 problem-solving features 20–1 unique and valued 245, 272–3 profit, in triple bottom line 65 profitability improving 43–4 potential 472 project team-functional matrix approach to innovation 350 promiscuity as outsourcing risk 446 promises to customers 371–2 promotion capability 159 promotional differentiation 270–1 promotional pricing in marketing mix 304 cash rebates 304 loss leaders 304 low-interest finance 304 psychological pricing 304 special events 304 propaganda 134 property portals (case study) 381–3 prototypes 347 PSA (case study) 165–6 psychological pricing 304 public relations (PR) 270, 307 public sector recession (2010) 59 publicity material 134 published sources for benchmarking 117 published statistical information on competitors 133 pull strategies 312 purchase behaviour, segmentation by 187 purchasers, role in purchasing 96 purchasing organisation, segmentation by 191 purchasing policies, segmentation by 191 Purplebricks 382–3 purpose, business 30–3 purpose of market segmentation 195 push strategies 312 qualitative research 101, 102–3 approaches to positioning research 215–17 depth interviews 102 group discussions 102 projective techniques brand/company as animal/person 216 friendly martian 216 role-play 216 stimuli animatics 216 association techniques 216 cartoon and story completion 216–17 concept boards 216 visual product mapping 217 quality consumer perception of 266 in product differentiation 266–7 quality control 261–2 quality positioning 535–6 quantitative research 101, 103–6 approaches to positioning research 217–25 alternative algorithms 225 attribute profiling methods 218–19 multidimensional positioning analysis 219–25 market segments locations 224–5 perception, dimensions of 222–4 product positions 221 experimentation 104–5 in marketing research process 107 observation techniques 104 surveys 103–4 quantitative testing, simulated supermarket tests 105 Quinn, J 442 R&D resources 283 marketing and operations functions 478–9 reduced spending on 335 relationship marketing 479 radical innovation 327–8 raw data for customer analysis 108 Red Bull 250 Reebok 299 Reed, John 286 reference groups, internal market segmentation 472 regulation and market attractiveness 240–1 reinvention of modern markets 325, 326 related classificatory systems 183–4 relationship building 71 relationship exploiters 188 relationship marketing 356, 364–9, 532–3 building relationships 367–9 delighted customers, creating 368–9 loyalty 367–8 structural ties and bonds 368 employee involvement and commitment 367 foundations of 366 relationship marketing ladder 364–5 relationship seekers 188 relationship-seeking characteristics, segmentation by 188–9 relative market share 244 relative positioning target markets 245 reliability of services 372, 372–3 Renault 337 renewal of modern markets 325 Reno, Jay 174 repositioning in new product innovation 341 reputation, company 151 research see marketing research resource base see organisational resource base resource-based marketing 12–14 INDEX resource-based view (RBV) of the firm 13, 145–9 capabilities and assets 147 corporate resources 147 criticism of 147 dynamic capabilities 147–9 theoretical foundations 146–7 resource gaps in strategic collaboration 432–3 resource portfolios 161–2 resources see organisational resource base responsible investing 505 responsive CSR 509 responsiveness to customers 373 results versus process mindset 477 retail sector 83–4 retaliation by competitors 73, 130 reverse innovation 337 reverse mentoring 465 reverse positioning 296 revolution of modern markets 325 rich-media advertising 309 Richardson Sheffield Ltd 373 Ries, A and Trout, J 174, 271, 272 risk in strategic alliances 442–3 in strategic collaboration 431–2 rivalry in Five Forces model 72–3 Robertson, David 25, 26 Rogers, Carl 290–1 Rolls-Royce 360–1 alliance with BMW 440 partnerships 427–8 Rosser, Brad 242 Ruffini, Remo 140–1 Ryanair 123, 535 case study 251–2 low service strategy 362 staff strikes 452–3 Rymer, Sarah SAGACITY 183–4 Sainsbury’s 42, 439, 499, 506 sales alignment with marketing 389 competitive role for 394–7 evolution of sales organisation 394–5 shaping forces for sales organisation 395–7 employment 394 pharmaceuticals industry 389 renaissance of 395 repositioning of 389 scrutiny of activities 389–90 sales capabilities 389 see also strategic sales capabilities sales integration in internal marketing 476–8 sales organisation evolution of 394–5 increasing influence of 395 shaping forces for 395–7 see also strategic sales organisation sales promotions 307 salespersons behaviour performance 402 reinventing the salesforce 403 relationship with suppliers 396 Samsung Electronics 256–7 case study 112 Samurai group 79–81 Sanderson, Rachel 140–1 Savitz, Andrew 510 scarcity for sustainable competitive advantage 258 scenario planning 50 sceptics, technology customers 290 Schultz, Dan 460, 473 scope of market segmentation 195 screening in new product innovation 344–6 formalised 346 initial 345 systematic 345 sealed bids 304 seasonality, market attractiveness 238 second-order segmentation 194 secondary desk research 100 security of supply in supply chain assets 155 segment growth rate, market attractiveness 237 segment size, market attractiveness 237 segmental flanking 276 segmentation see market segmentation segmentation research 202–29 decision to segment 204–5 post hoc/cluster-based approaches 203, 208–15 boundaries, setting 209 data analysis 211–13 data collection 210–11 implementation 214–15 tracking 215 validation 213–14 a priori approaches 203, 205–8 multiple variable 207–8 single variable 205–6 self-driving cars 170–1, 323–4 selling capability 159 sensitivity, market attractiveness 238 service and competitive positioning 361–4 low service strategy 362–3 under- and over-searching traps 363–4 three Ss of 369 see also CRM (customer relationship management); superior service service and product differentiation 267–8 service differentiation 290 service-dominant logic (SDL) 360 service fulfilment 375 service in value-chain analysis 126 service positioning 538 service quality 401 service quality and internal marketing 461–3 589 590 INDEX services in marketing mix choice criteria 289–90 key concepts 289 offered in market segmentation 235 unique and valued 245 services spectrum in CRM 359–61 settlers in value innovation 331 SFK 393 Shaeffer 31 Shapiro, P.B 397, 402, 478 shared research 101 shared value model 489 shareholder value 5, 19 long-term creation of shareholders 15 sharing economy 431, 515 Sheila’s wheels 33 Sherwood, Bob 114–15 short-term orientation versus long-term orientation mindset 477 similarities-based multidimensional scaling 221 Simon, H 533 single-person households 64 single variable segmentation research 205–6 Sinopec 433 Sir Kensington (case study) 226 Skandia 16 Skapinker, Michael 354 skills gaps in strategic collaboration 432–3 Skoda 151 SkyTeam 439 sleepers, product type 36 sleepers resources 162 Smarty (Three) 28–9, 56–7 Smit, Tim 30 social acceptability and market attractiveness 241 social class 180–2 social dimensions of competitive context 508 social enterprise 495–6 social environment 61–5 social initiatives 504 social issues 508–9 social media, differentiation 271 social media marketing 1.0 310 social media marketing 2.0 310–11 social norms as risk in strategic alliances 442–3 social selling 397 society 16, 17 socio-economic characteristics for segmentation 180–2 SolarCity 511 solutions-orientated packages 432 Song Jung-a 256–7 Sony Corporation 297 outsourcing 438 Southwest Airlines 461–2 SPACE analysis 85–7 components 86 spanning and integrating competencies 532 special events 304 specialised markets in AdVantage Matrix 88–9 speed of new product development 348–9 spin-outs approach to innovation 351 sponsorship 308 staff 314 stages of family life cycle 182–3 stakeholders and CSR 515 customers 16 distributors 16 employees 15–16 natural environment 16–17 non-profit organisations customers 17 employees 17 owners 17 society and community 17 objectives 18–19 shareholders 15 society and community 16 suppliers 16 see also organisational stakeholders stalemate quadrant in AdVantage Matrix 87–8 Standard Industrial Classification (SIC) 206 Stanford Research Institute 208 Star Alliance 439 Starbucks social media 271 tax avoidance policies 491 trademarks dispute with Ethiopia 491 state-owned enterprises (SOEs) 14 statistical techniques for customer analysis 108 stealth positioning 297 Stewart, Thomas 387, 496 storytelling 464 strangers in CRM 356 strategic account investment 414 strategic account management case for 410–11 balancing 418–19 customer and market pressures 411 vulnerabilities 411–19 balance of power 412 challenging the regulator 417 customer attractiveness and competitive intensity 413–14 customer loyalty, reality of 415–16 customer relationship requirements 414–15 dependence, risks of 413 distinguishing large customers from strategic accounts 415 implementation 417 investing in strategic weakness 411–12 rate of change, underestimating 416–17 real buyer-seller relationship 412–13 strategic account investment 414 strategic account management (SAM) 409–19 strategic account partnership 409 INDEX strategic accounts, customers as 407, 408 strategic alliances and networks 423–5 alliances and partnerships 436–40 characteristics of 438–9 changing strategic priorities 443 as a competitive force 440–1 damage by association 443 key issues 425 management of 443–8 core competencies 444 disengaging from 448 networks, management of 444–6 performance assessment 447–8 strategic priorities 444 vigilance 446–7 network forms 434–6 partnerships, pressures for 425–9 business environment, changing 425–6 organisational forms, new 426 transformation of business structure 426 risks in 442–3 strategic collaboration 429–30 drivers of 430–4 learning capabilities 434 market complexity 431–2 risk 431–2 skills and resource gaps 433 supply-change management 433 strategic bundling 368 strategic collaboration 429–34 strategic CSR 509 strategic customer management (SCM) 388–90, 404–6, 408 alignment of sales processes 404–5 customer perspective 406 customer portfolio, managing 406–8 direct channel 406 major accounts 407, 408 middle market 407 strategic accounts 407, 408 domain 405 dominant customers 406, 408–19 sales capabilities 389 sales/marketing strategy interface problems 405–6 strategic account management 409–10 case for 410–11 balancing 418–19 vulnerabilities in relationships 411–17 strategic decision making 398–9 strategic fit 29, 30 strategic focus of competitors 123–4 strategic groups in market environment 78–81 strategic human resource management (SHRM) 475 strategic intent in mission formulation 32 strategic internal marketing (SIM) 456, 460, 466–71 communication 468 distribution 468 price 467–8 product 467 591 strategic internal relationships 428 strategic management, market-led 4–27 strategic marketing planning 28–52 competitive positioning 44–7 differential advantage 45–7 market targets 44–5 control 49–51 core strategy, establishing 34–44 markets served 38–40 organisational resources 34–8 SWOT analysis 40–1 defining the business purpose or mission 30–3 mission formulation and statement 31–3 implementation 47–50 marketing mix 47–8 organisation 48–9 marketing strategy process 33–4 competitive positioning 33 control 33 establishment of core strategy 33 implementation 33 strategic philanthropy 514 strategic planning 30 strategic priorities in management of strategic alliances 444 strategic sales capabilities commoditisation 393 corporate expenditure 393–4 customer relationships 391–2 customer sophistication and complexity 392–3 strategic sales capability 391–4 strategic sales organisation 397–404 end-use market knowledge 399 framework infrastructure 398 integration 397 intelligence 397 internal marketing support 397 involvement 397 infrastructure 402–4 integration across functional boundaries 400–1 intelligence to add value 399–400 internal marketing of customers 401–2 relationships with customers 398–9 resource allocation in customer portfolios 399 shaping factors influence 403 inspiration 403 integrity 403 international 404 strategic decision making 398–9 strategic segmentation 195–6 strategic tasks for sustainable competitive advantage 285 strategic windows 39 strategy implementation 453–7 and internal marketing 480–1 marketing challenge 457–60 capabilities 459–60 executives, evaluation and assessment of 459 execution traps and obstacles 458–9 592 INDEX strategy implementation (continued ) failures of 459 myths 457 pitfalls 458 scenarios implementation-driven strategy 480, 481 integrated strategy 480, 481 management-driven 480, 481 weak 480 strategy, in marketing strengths and weaknesses see SWOT analysis structural ties in CRM 368 subculture as basis for segmentation 179 substitution threats in Five Forces model 74 in market attractiveness 240 Sull, Donald 338 Sun Tzu 115, 116, 137, 230, 280 superior customer value 530–1 superior products and services 154 superior service 370–3 evaluation 372–3 assurance 372 empathy 372 reliability 372 responsiveness 373 tangibles 372 expectations 370–2 communication 372 managing and exceeding 371–2 promises 371–2 reliability 372 suppliers 16 bargaining power in Five Forces model 74–5 market attractiveness 239 and CSR 507 relationship with salespersons 396 strategic importance 412–13 understanding of customers, businesses and end-use markets 399–400 supply chain assets delivery lead-time and security of supply 155 distribution control 154–5 distribution networks 154 distribution uniqueness 155 pockets of strength 155 supply network 155 supply chain management (SCM) 433 in internal markets 479 lean 479 supply networks 155 surveillance 135 surveys 103–4 on customer satisfaction 377 sustainability 501, 505, 510 and innovation 334 sustainability sweet spots 510 sustainable competitive advantage (SCA) 142, 144–5, 146, 256–86 cost leadership 260–3 capacity utilisation 261 economies of scale 260 experience and learning effects 260–1 integration, degree of 262 interrelationships 262 linkages 261–2 location and institutional factors 263 policy choices 262 summary of cost drivers 263 timing 262 differentiation 263–72 brand 271–2 distribution 269–70 price 270 product 263–9 promotional 270–1 enhanced customer linkages 273 established brand and company credibility 273–4 generic routes 259–60 market targets, clear, tight definition of 273 offensive and defensive competitive strategies 274–85 build strategies 274–7 divestment/deletion 284–5 harvesting strategies 283–4 holding and defensive strategies 278–82 market niche strategies 282–3 matching managerial skills to strategic tasks 285 organisational resources customer value, creating 257–8 inimitability 258–9 uniqueness or scarcity 258 unique and valued products 272–3 sustainable marketing 15 sustaining technologies 328, 329 Swatch 439 SWOT analysis 40–1 Synack 387–8 syndicated research 100–1 synergy in customer satisfaction 463 systematic screening 345 tacitness 147 tactics, in marketing tailor-made research 101–6 qualitative research 101, 102–3 quantitative research 101, 103–6 tangible elements of goods and services 359–60 tangibles of professional competence 372 Tapscott, Don 335 Target Corporation 504 target markets of competitors 123 tariffs 230–1 taskforce approach to innovation 350 tax avoidance 488 INDEX technical fit 148 technological environment 65–8 technological factors in market attractiveness 238–9 technological market position 245 technological position in target markets 245 technological skills in internal marketing support assets 156–7 technology readiness 290–1 technology utilisation, market attractiveness 239 Teece et al 148 telephone interviews 103 television business 329 tendering capability 159 Tepilo 383 Tesco 309, 499 Clubcard 99 online shopping 316 Ribena sales 506 suppliers 412 Tesla 90, 91, 92, 332, 511 test marketing campaigns 104–5 Third Age Research 208 third-party logistics providers (3PLs) 438 Thomas Cook 179 Thompson, Daley 249 Thomson, Emma 310 Three 28–9 three Ss of service 369 service strategy 369 staff 369 systems 369 timing in cost leadership 262 TNK-BP 440 tobacco industry 498–9 today’s breadwinners, product type 35, 36 tomorrow’s breadwinners, product type 35, 36 Tomorrow’s Company: The Role of Business in a Changing World (RSA) 525 total integrated marketing 400 total quality management (TQM) 360 Toyota (case study) 166–7 toys-to-life sector 25–6 tracking in segmentation research 215 training 314 transactional marketing 356 transactions-based marketing 71 trickle-up innovation 337 triple bottom line 15, 65 true friends in CRM 356 Trump, President Donald 61, 64, 230, 231 trust as risk in strategic alliances 442 trust in e-service quality 376 trusted adviser business model 273 TSB 84–5 Twitter (case study) 542–3 Uber 324–5 car-sharing model 431–2 593 Ulwick, Tony 235 under-performers, service to 366 under-positioning 174 under-servicing 363–4 undifferentiated marketing 248 unicorn companies 317 Unilever 4–5, 226, 227, 514 Pureit machine 496–7 sustainable living plan 497 unique products for sustaining competitive advantage 272–3 uniqueness for sustainable competitive advantage 258 UPS (case study) 448–50 users, role in purchasing 96 value to customers 302–3 types of propositions all benefits 516 favourable points of difference 516 resonating focus 516 value-added network 435 value chain analysis 259 of competitors 125–7 inbound logistics 125 marketing and sales 126 operations 125 outbound logistics 125–6 service 126 value chain collaboration 428 value chain social impacts 508 value-creating disciplines 143–5 customer intimacy 144 operational excellence 143–4 product leadership 144 value creation 257–8, 327 value innovation 331–2 value proposition 174 valued products for sustaining competitive advantage 272–3 Values and Lifestyles (VALS) 208 vanguard companies 497 venture marketing organisation 49 venture team approach to innovation 351 vertical disaggregation 429–30 vertical integration in strategic alliances 440 vertical markets networks 436 Vickrey auctions 303 video industry 82 vigilance in strategic alliances 446–7 viral marketing 310 Virgin Group 242 virtual assistants (case study) 111–13 virtual corporations 429, 435 virtual network 435 Volkswagen 187, 330 damage to reputation 493, 500 volume quadrant in Advantage Matrix 88 Volvo 123 case study 286 594 INDEX von Moltke, Helmuth 459 Voyage 170–1 VRIN (value, rarity, inimitability and non-substitutability) 147, 148 vulnerability of competitors 130 Walker, Kate 318–19 Walker, Richard 518, 519 Walker, Sir Malcolm 519 Walmart 309 culture clash in Germany 363–4 Warner index of status characteristics 180, 181 Warwick Castle 220, 221, 223, 224 Waters, Richard 352–3 Webster, F.E 7, 429 Wells Fargo 473 W.H Smith 70–1 Whipp, Lindsay 137–9 Whole Foods Market 509–10 Wikinomics 335 Wikipedia 526 Williams, Evan 543 Wingate, Stewart 115 Woburn Abbey and Safari Park 220, 221, 222, 223, 224 Woodford, Neil 382–3 Woods, Tiger 152 World Class Sales Excellence Research Report (2006) (Challey) 396 Worldport 450 Wright, Robert 448–50 wrong-servicing 363 Xerox 280, 335 Yamaha 539–40 yesterday’s breadwinners, product type 35, 36 young consumers 4–5 youth market 62–3 Zara 148–9, 440 zone of tolerance 370 SEVENTH EDITION MARKETING STRATEGY AND COMPETITIVE POSITIONING Understand and formulate rigorous marketing strategies and differential advantage in today’s marketplace Marketing Strategy and Competitive Positioning, 7th Edition by Hooley, Nicoulaud, Rudd and Lee provides a deep understanding of the process of developing and implementing a rigorous marketing strategy This book focuses on competitive positioning at the heart of any marketing strategy, and includes in-depth discussions of the processes used within marketing to achieve competitive advantage in a business environment — by creating and sustaining superior performance in the marketplace The key approach used in this book is to focus on two central issues in marketing strategy formulation — the identification of target markets, and the creation of a differential advantage In doing so, it recognises the emergence of potential new target markets born of the recession, increased concern for climate change and disruption from ongoing technological advances It helps you examine ways in which firms can differentiate offerings through recognition of environmental and social concerns and innovation This book is ideal for undergraduate and postgraduate students taking modules in Marketing Strategy, Marketing Management and Strategic Marketing Management NEW TO THIS EDITION Updated content to reflect on-going economic turbulence and its impact on business and marketing Coverage of the impact of emerging markets on issues of marketing and innovation, and new realities of competing through services, market analysis and segmentation Increased emphasis on competing through innovation, including new business models / new types of retailing Increased emphasis on competing globally in a digital world Updated vignettes at the beginning of most chapters, and new case studies in many of the chapters Updated online resources, including an Instructor’s Manual and PowerPoint slides for instructors GRAHAM HOOLEY is Emeritus Professor of Marketing at Aston University He is a past President of the European Marketing Academy, Fellow of the Chartered Institute of Marketing, British Academy of Management, EMAC and the Higher Education Academy BRIGITTE NICOULAUD is Deputy Head of the Marketing and Strategy Department at Aston Business School JOHN M RUDD is a Professor of Marketing and Head of the Marketing Group at Warwick Business School NICK LEE is a Professor of Marketing at Warwick Business School He is an Honorary Life Member of the Academy of Marketing, Fellow of the Higher Education Academy and the Association for Professional Sales Pearson, the world’s learning company Front cover image © echo3005/Shutterstock www.pearsoned.co.uk