Upload
phuong-pham
View
14
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Marketing strategy
Citation preview
McGraw-Hill/Irwin Series in Marketing
Alreck & SettleThe Survey Research HandbookThird Edition
Alsem & WittinkStrategic Marketing: A Practical ApproachFirst Edition
Anderson, Beveridge, Lawton & ScottMerlin: A Marketing SimulationFirst Edition
AreasContemporary AdvertisingTenth Edition
Arnould, Price & ZinkhanConsumersSecond Edition
Bearden, Ingrain & LaForgeMarketing: Principles & PerspectivesFourth Edition
Belch & BelchAdvertising & Promotion: An IntegratedMarketing Communications ApproachSixth Edition
Bingham & GomesBusiness MarketingThird Edition
Cateora & GrahamInternational MarketingTwe~/th Edition
Cole & MishlerConsumer and Business CreditManagementEleventtt Edition
Cooper & SchindlerMarketing ResearchFitwt Edition
Cravens & PiercyStrategic MarketingEighth Edition
Cravens, Lamb & CrittendenStrategic Marketing Management CasesSeventh Edition
Crawford & Di BenedettoNew Products ManagementEighth Edition
DuncanPrinciples of Advertising and IMCSecond Edition
Dwyer & TarmerBusiness MarketingThird Edition
EisenmannInternet Business Models: Text and CasesFirst Edition
Etzel, Walker & StantonMarketingThirteenth Edition
ForrestInteract Marketing IntelligenceFirst Edition
FutrellABCs of Relationship SellingEighth Edition
FutrellFundamentals of SellingNinth Edition
Gourville, Quelch & RanganCases in Health Care MarketingFirst Edition
Hair, Bush & OrtinauMarketing ResearchThird Edition
Hawkins, Best & ConeyConsumer BehaviorNinth Edition
JohanssonGlobal MarketingFototh Edition
Johnston & MarshallChmchill/FordP&lkers Sales ForceManagementEighth Edition
Johnston & MarshallRelationship Selling and SalesManagementFirst Edition
Kerin, Hartley & RudeliusMarketing: The CoreFirst Edition
Kerin, Berkowitz, Hartley & RudeliusMarketingEighth Edition
Lehmann &WinerAnalysis for Marketing PlanningSixth Edition
Lehnamm &WinerProduct ManagementFoorth Edition
Levy & WeitzRetailing ManagementF(/lh Edition
Mason & PerreaultThe Marketing Game!Third Edition
McDonaldDirect Marketing: An Integrated ApproachFirst Edition
Mohammeck Fisher, Jaworski & Paddisonlnternet Marketing: Building Advantage in aNetworked EconomySecond Edition
MolinariMarketing Research Project ManualFirst Edition
MonroePricingThird Edition
Mullins, Walker, Boyd & Larrdch~Marketing Management: A StrategicDecision-Making ApproachF(fth Edition
Nentl & MillerSimSeries Simulations:SimSellSimSales ManagementSimMarketingSimMarketing ResearchSImCRMFirst Edition
Perreault &/VlcCarthyBasic Marketing: A Global ManagerialApproachF(/?eenth Edition
Perreanlt & McCarthyEssentials of Marketing: A GlobalManagerial ApproachTenth Edition
Peter & DonnellyA Preface to Marketing ManagementTenth Edition
Peter & DonnellyMarketing Management: Knmvledgeand SkillsSeventh Edition
Peter & OlsonConsumer BehaviorSeventh Edition
Pnrvis & BurtonWhicb Ad Pulled Best?Ninth Edition
Quelch, Rangan & LalMarketing Management Text and CasesFirst Edition
Rayport & JaworskiIntroduction to e-CommerceSecond Edition
Rayport & Jaworskie-CommerceFirst Edition
Rayport & JaworskiCases in e-CommerceFirst Edition
RichardsonInternet MarketingFirst Edition
RobertsInternet Marketing: Integrating Onlineand Offline StrategiesFirst Edition
Spiro, Stanton & RichManagement of a Sales ForceEleventh Edition
Stock & LambertStrategic Logistics ManagementFourth Edition
Ulrich & EppingerProduct Design and DevelopmentThird Edition
Walker, Mullins, Boyd & Larr~ch~Marketing Strategy: A Decision-FocusedApproachFfth Edition
Weitz, Castleberry & TannerSelling: Building PartnershipsF!fth Edition
Zeithaml & BitnerServices MarketingFourth Edition
Marketing Strategy
A Decision-Focused Approach Fifth Edition
Orville C. Walker, Jr.James D. Watkins Professor of Marketing,Emeritus
University of Minnesota
John W. MullinsAssociate Professor of Management Practice
London Business School
Harper W. Boyd, Jr.Donaghey Distinguished Professorof Marketing
University of Arkansas--Little Rock
Jean-Claude Larr~ch~Alfred H. Heineken Professor of Marketing
European Institute of Business Administration
INSEAD
McGraw-HillIrwin
Boston Burr Ridge, IL Dubuque, IA Madison, Wl New York San Francisco St, LouisBangkok Bogotg~ Caracas Kuala Lumpur Lisbon London Madrid Mexico CityMilan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto
McGraw-Hill/Irwin Series in Marketing
Alreck & SettleThe Survey Research HandbookThird Edition
Alsem & WittinkStrategic Marketing: A Practical ApproachFirst Edition
Anderson, Beveridge, Lawton & ScottMerlin: A Marketing SimulationFirst Edition
AreasContemporary AdvertisingTenth Edition
Arnould, Price & ZinkhanConsumersSecond Edition
Bearden, Ingrain & LaForgeMarketing: Principles & PerspectivesFourth Edition
Belch & BelchAdvertising & Promotion: An IntegratedMarketing Communications ApproachSixth Edition
Bingham & GomesBusiness MarketingThird Edition
Cateora & GrahamInternational MarketingTwe~/th Edition
Cole & MishlerConsumer and Business CreditManagementEleventtt Edition
Cooper & SchindlerMarketing ResearchFitwt Edition
Cravens & PiercyStrategic MarketingEighth Edition
Cravens, Lamb & CrittendenStrategic Marketing Management CasesSeventh Edition
Crawford & Di BenedettoNew Products ManagementEighth Edition
DuncanPrinciples of Advertising and IMCSecond Edition
Dwyer & TarmerBusiness MarketingThird Edition
EisenmannInternet Business Models: Text and CasesFirst Edition
Etzel, Walker & StantonMarketingThirteenth Edition
ForrestInteract Marketing IntelligenceFirst Edition
FutrellABCs of Relationship SellingEighth Edition
FutrellFundamentals of SellingNinth Edition
Gourville, Quelch & RanganCases in Health Care MarketingFirst Edition
Hair, Bush & OrtinauMarketing ResearchThird Edition
Hawkins, Best & ConeyConsumer BehaviorNinth Edition
JohanssonGlobal MarketingFototh Edition
Johnston & MarshallChmchill/FordP&lkers Sales ForceManagementEighth Edition
Johnston & MarshallRelationship Selling and SalesManagementFirst Edition
Kerin, Hartley & RudeliusMarketing: The CoreFirst Edition
Kerin, Berkowitz, Hartley & RudeliusMarketingEighth Edition
Lehmann &WinerAnalysis for Marketing PlanningSixth Edition
Lehnamm &WinerProduct ManagementFoorth Edition
Levy & WeitzRetailing ManagementF(/lh Edition
Mason & PerreaultThe Marketing Game!Third Edition
McDonaldDirect Marketing: An Integrated ApproachFirst Edition
Mohammeck Fisher, Jaworski & Paddisonlnternet Marketing: Building Advantage in aNetworked EconomySecond Edition
MolinariMarketing Research Project ManualFirst Edition
MonroePricingThird Edition
Mullins, Walker, Boyd & Larrdch~Marketing Management: A StrategicDecision-Making ApproachF(fth Edition
Nentl & MillerSimSeries Simulations:SimSellSimSales ManagementSimMarketingSimMarketing ResearchSImCRMFirst Edition
Perreault &/VlcCarthyBasic Marketing: A Global ManagerialApproachF(/?eenth Edition
Perreanlt & McCarthyEssentials of Marketing: A GlobalManagerial ApproachTenth Edition
Peter & DonnellyA Preface to Marketing ManagementTenth Edition
Peter & DonnellyMarketing Management: Knmvledgeand SkillsSeventh Edition
Peter & OlsonConsumer BehaviorSeventh Edition
Pnrvis & BurtonWhicb Ad Pulled Best?Ninth Edition
Quelch, Rangan & LalMarketing Management Text and CasesFirst Edition
Rayport & JaworskiIntroduction to e-CommerceSecond Edition
Rayport & Jaworskie-CommerceFirst Edition
Rayport & JaworskiCases in e-CommerceFirst Edition
RichardsonInternet MarketingFirst Edition
RobertsInternet Marketing: Integrating Onlineand Offline StrategiesFirst Edition
Spiro, Stanton & RichManagement of a Sales ForceEleventh Edition
Stock & LambertStrategic Logistics ManagementFourth Edition
Ulrich & EppingerProduct Design and DevelopmentThird Edition
Walker, Mullins, Boyd & Larr~ch~Marketing Strategy: A Decision-FocusedApproachFfth Edition
Weitz, Castleberry & TannerSelling: Building PartnershipsF!fth Edition
Zeithaml & BitnerServices MarketingFourth Edition
Marketing Strategy
A Decision-Focused Approach Fifth Edition
Orville C. Walker, Jr.James D. Watkins Professor of Marketing,Emeritus
University of Minnesota
John W. MullinsAssociate Professor of Management Practice
London Business School
Harper W. Boyd, Jr.Donaghey Distinguished Professorof Marketing
University of Arkansas--Little Rock
Jean-Claude Larr~ch~Alfred H. Heineken Professor of Marketing
European Institute of Business Administration
INSEAD
McGraw-HillIrwin
Boston Burr Ridge, IL Dubuque, IA Madison, Wl New York San Francisco St, LouisBangkok Bogotg~ Caracas Kuala Lumpur Lisbon London Madrid Mexico CityMilan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto
About the Authors
McGraw-HillIrwin
MARKETING STRATEGY: A DECISION-FOCUSED APPROACH
Published by McGraw-Hill/frwin, a business unit of The McGraxv-Hill Companies, Inc., 1221 Avenue of the
Americas, New York, NY, 10020. Copyright 2006, 2003, 1999, 1996, 1992 by The McGraw-Hill Companies,
Inc. All rights reserved. No part of this publication may be reproduced o1" distributed in any form or by any
means, or stored in a database or retrieval system, without the prior writteu consent of The McGraw-Hill Coln-
panies, Inc., inclnding, but not limited to, in any network or other electronic storage or transmission, or broad-
cast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the
United States.
This book is printed on acid-free paper.
34567890DOW/DOW0987
ISBN- 13:978-0-07-111674-9
ISBN-10:0-07-111674-5
Orville C. Walker, Jr.Orville C. Walker, Jr. is Professor Emeritus in the University of Minnesotas Carlson
School of Management, where he served until recently as the James D. Watkins Professor
of Marketing and Director of the PhD Program. He holds a Masters degree in social psy-
chology from the Ohio State University and a PhD in marketing from the University of
Wisconsin-Madison.Orville is the co-author of tinco books and has published more than 50 research articles
in scholarly and business journals. He has won several awards for his research, including
the ODell award from the Journal qfiMarketing Research, the Maynard award from the
Journal of Marketing, and a lifetime achievement award from the Sales Management Inter-
est Group of the American Marketing Association.
Orville has been a consultant to a number of business firms and not-for-profit organi-
zations, and he has taught in executive development programs around the world, including
programs in Poland, Switzerland, Scotland, and Hong Kong. Perhaps his biggest business
challenge, however, is attempting to turn a profit as the owner-manager of a small vineyard
in western Wisconsin.
John W. MullinsJohn M,llins is Associate Professor of Management Practice at London Business School,
where he heads the entrepreneurship group. He earned his MBA at the Stanford Graduate
School of Business and, considerably later in life, his PhD in marketing from the Univer-
sity of Minnesota. An award-winning teacher, Jotm brings to his teaching and research 20
years of executive experience in high-growth firms, including two ventures he founded,
one of which he took public. Since becoming a business school professor in 1992, John
has published more than 30 articles in a variety of outlets, including Ha~a,ard Business
Review, the Journal of Product hmovation Management, and the Journal of Business Ven-
turing. His research has won national and international awards fiom the Marketing Science
Institute, the American Marketing Association, and the Richard D. Irwin Foundation. He
is also co-author of Marketing Management: A Strategic Decision-Making Approach, 5th
edition. His recent trade book, The New Business Road Test: What Entrepreneurs and
Executives Should Do Before Writing a Business Plan, is the definitive work on the assess-
ment and shaping of market opportunities.
wwxv.mhhe.com
Harper W. Boyd Jr.The late Harper W. Beyd Jr. was the Donaghey Distinguished Professor Emeritus of Mar-
keting at the University of Arkansas at Little Rock. He was internationally known in the
areas of marketing strategy and marketing research. He authored, co-authored, or edited
more than 50 books and monographs and 100 articles, cases, and other teaching materials,
and served as editor of the Journal of Marketing Research. He taught on the faculties of
several prominent business schools around the world, including Stanford, Northwestern,
Tulane, and 1NSEAD; and he received an honorary Doctorate of Letters from the Edin-
burgh Business School in Scotland. He also consulted extensively with both consumer and
industrial products companies around the world.
About the Authors
McGraw-HillIrwin
MARKETING STRATEGY: A DECISION-FOCUSED APPROACH
Published by McGraw-Hill/frwin, a business unit of The McGraxv-Hill Companies, Inc., 1221 Avenue of the
Americas, New York, NY, 10020. Copyright 2006, 2003, 1999, 1996, 1992 by The McGraw-Hill Companies,
Inc. All rights reserved. No part of this publication may be reproduced o1" distributed in any form or by any
means, or stored in a database or retrieval system, without the prior writteu consent of The McGraw-Hill Coln-
panies, Inc., inclnding, but not limited to, in any network or other electronic storage or transmission, or broad-
cast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the
United States.
This book is printed on acid-free paper.
34567890DOW/DOW0987
ISBN- 13:978-0-07-111674-9
ISBN-10:0-07-111674-5
Orville C. Walker, Jr.Orville C. Walker, Jr. is Professor Emeritus in the University of Minnesotas Carlson
School of Management, where he served until recently as the James D. Watkins Professor
of Marketing and Director of the PhD Program. He holds a Masters degree in social psy-
chology from the Ohio State University and a PhD in marketing from the University of
Wisconsin-Madison.Orville is the co-author of tinco books and has published more than 50 research articles
in scholarly and business journals. He has won several awards for his research, including
the ODell award from the Journal qfiMarketing Research, the Maynard award from the
Journal of Marketing, and a lifetime achievement award from the Sales Management Inter-
est Group of the American Marketing Association.
Orville has been a consultant to a number of business firms and not-for-profit organi-
zations, and he has taught in executive development programs around the world, including
programs in Poland, Switzerland, Scotland, and Hong Kong. Perhaps his biggest business
challenge, however, is attempting to turn a profit as the owner-manager of a small vineyard
in western Wisconsin.
John W. MullinsJohn M,llins is Associate Professor of Management Practice at London Business School,
where he heads the entrepreneurship group. He earned his MBA at the Stanford Graduate
School of Business and, considerably later in life, his PhD in marketing from the Univer-
sity of Minnesota. An award-winning teacher, Jotm brings to his teaching and research 20
years of executive experience in high-growth firms, including two ventures he founded,
one of which he took public. Since becoming a business school professor in 1992, John
has published more than 30 articles in a variety of outlets, including Ha~a,ard Business
Review, the Journal of Product hmovation Management, and the Journal of Business Ven-
turing. His research has won national and international awards fiom the Marketing Science
Institute, the American Marketing Association, and the Richard D. Irwin Foundation. He
is also co-author of Marketing Management: A Strategic Decision-Making Approach, 5th
edition. His recent trade book, The New Business Road Test: What Entrepreneurs and
Executives Should Do Before Writing a Business Plan, is the definitive work on the assess-
ment and shaping of market opportunities.
wwxv.mhhe.com
Harper W. Boyd Jr.The late Harper W. Beyd Jr. was the Donaghey Distinguished Professor Emeritus of Mar-
keting at the University of Arkansas at Little Rock. He was internationally known in the
areas of marketing strategy and marketing research. He authored, co-authored, or edited
more than 50 books and monographs and 100 articles, cases, and other teaching materials,
and served as editor of the Journal of Marketing Research. He taught on the faculties of
several prominent business schools around the world, including Stanford, Northwestern,
Tulane, and 1NSEAD; and he received an honorary Doctorate of Letters from the Edin-
burgh Business School in Scotland. He also consulted extensively with both consumer and
industrial products companies around the world.
vi About the Authors
Jean-Claude Larr6ch6Jean-Claude Larr~ch~ is Alfred H. Heineken Professor of Marketing and Director of the
Competitiveness Fitness of Global Firms Initiative at the European Institute of Business
Administration, INSEAD, in Fontainebleau, France. He holds an MBA from 1NSEAD
and a PhD in marketing from the Stanford University Graduate School of Business. A
consultant to several major international firms, Jean-Claude has worked with top manage-ment teams in Europe, North America, and Asia. He is chairman and founder of StratX, apublisher of marketing simulations and other tools for strategic marketing. An award-winning teacher, Jean-Claude is also a two-time winner of the overall case competition ofthe European Case Clearing House. He is co-author of Marketing Management: A SOate-gic Decision-Making Approach, 5th edition.
Brie( Contents
Preface xiii
SECTION ONEIntroduction to Strategy 1
1 Market-Oriented Perspectives UnderlieSuccessful Corporate, Business, and
Marketing Strategies 1
2 Corporate Strategy Decisions and TheirMarketing Implications 31
Business Strategies and Their MarketingImplications 57
SECTION TWOOpportunity Analysis
4
5
6
7
83
Understanding Market Opportunities
Measuring Market Opportunities:Forecasting and Market Knowledge
Targeting Attractive Market
Segments 133
Differentiation and Positioning 153
85
111
9
10
11
SECTION THREEFormulating Marketing Strategies 173
8 Marketing Strategies for New MarketEntries 175
Strategies for Growth Markets 203
Strategies for Mature and DecliningMarkets 227
Marketing Strategies for the NewEconomy 257
13
SECTION FOUR
Implementation and Control
12 Organizing and Planning for EffectiveImplementation 287
Marketing Metrics for MarketingPerformance 313
285
Name Index 337
Subject Index 341
vii
vi About the Authors
Jean-Claude Larr6ch6Jean-Claude Larr~ch~ is Alfred H. Heineken Professor of Marketing and Director of the
Competitiveness Fitness of Global Firms Initiative at the European Institute of Business
Administration, INSEAD, in Fontainebleau, France. He holds an MBA from 1NSEAD
and a PhD in marketing from the Stanford University Graduate School of Business. A
consultant to several major international firms, Jean-Claude has worked with top manage-ment teams in Europe, North America, and Asia. He is chairman and founder of StratX, apublisher of marketing simulations and other tools for strategic marketing. An award-winning teacher, Jean-Claude is also a two-time winner of the overall case competition ofthe European Case Clearing House. He is co-author of Marketing Management: A SOate-gic Decision-Making Approach, 5th edition.
Brie( Contents
Preface xiii
SECTION ONEIntroduction to Strategy 1
1 Market-Oriented Perspectives UnderlieSuccessful Corporate, Business, and
Marketing Strategies 1
2 Corporate Strategy Decisions and TheirMarketing Implications 31
Business Strategies and Their MarketingImplications 57
SECTION TWOOpportunity Analysis
4
5
6
7
83
Understanding Market Opportunities
Measuring Market Opportunities:Forecasting and Market Knowledge
Targeting Attractive Market
Segments 133
Differentiation and Positioning 153
85
111
9
10
11
SECTION THREEFormulating Marketing Strategies 173
8 Marketing Strategies for New MarketEntries 175
Strategies for Growth Markets 203
Strategies for Mature and DecliningMarkets 227
Marketing Strategies for the NewEconomy 257
13
SECTION FOUR
Implementation and Control
12 Organizing and Planning for EffectiveImplementation 287
Marketing Metrics for MarketingPerformance 313
285
Name Index 337
Subject Index 341
vii
Preface xiii
SECTION ONEINTRODUCTION TO STRATEGY 1
Chapter 1Market-Oriented Perspectives UnderlieSuccessful Corporate, Business, and
Marketing Strategies 3
Strategic Challenges Addressed in Chapter 1 6Three Levels of Strategy: Similar Components but
Different Issues 71. What Is a Strategy? 7
2. The Components qf Strategy 8
3. The Hierarchy of Strategies 8
4. Corporate Strategy 8
5. Business-Level Strategy 11
6. Marketing Strategy 11
What Is Marketings Role in Formulating and
Implementing Strategies? 11
1. Market-Oriented Management 12
2. Do Customers Always Know What They ~l{mt? 13
3. Does Being Market-Oriented Pay? 14
4. Factors That Mediate Marketings Strategic
Role 16
5. Recent Developments Affecting the Strategic Role
of Marketing 18
6. The Future Role qf Marketing 21
Formulating and Implementing Marketing Strategy--
An Overview of the Process 21
1. A Decision-Making Focus 21
2. Analysis Comes First 21
3. hltegrating Marketing Strategy with the Firms Other
Strategies and Resotoces 22
4. Market OpportuniO~ Analysis 23
5. Formulati,g Marketing Strategies for Spec!fic
Situations 24
6. hnplementation and Control qf the Marketing
Strategy 24
7. The Marketing Plan--A Blueprint
for Action 25
viii
Chapter 2
Corporate Strategy Decisions and Their
Marketing Implications 31
Strategic Challenges Addressed in Chapter 2 33
Corporate Scope Defining the Firms Mission 351. Market h!fluences on the Corporate Mission 35
2. Criteria for De.fi, ing the Corporate
Mission 35
3. Social Values and Ethical Principles 36
4. Wto, Are Ethics Important? The Marketing
hltplications of Ethical Standards 3 7
Corporate Objectives 37
1. Enhancing Shareholder 14thte: The Ultimate
Ob.jective 38
2. The Marketing hnplications of Corporate
Objectives 40
Gaining a Competitive Advantage 41
Corporate Growth Strategies 42
1. Expansion by hwreasing Penetration qfl Current
Product-Markets 42
2. EaT)ansion by Developing New Productsfor Cmrent
Cttstomers 43
3. Expansion by Selling Existing Products to New
Segments o1" Countries 43
4. Expansion by Divers{~,ing 43
5. Expansio~t by Diversi~,ing through Organizational
Relationships or Networks 44
Allocating Corporate Resources 44
1. Portfolio Models 45
2. Vahte-Based Planning 48
Sources of Synergy 511. Knowledge-Based Synergies 51
2. Corporate IdentiO, and the Corporate Brand as a
Source of Synergy 51
3. Corporate Branding Strategy--When Does a Strong
Corporate Brand Make Sense? 52
4. Synergyfiom Shared Resources 53
Chapter 3
Business Strategies and Their MarketingImplications 57Strategic Challenges Addressed in Chapter 3 58
Strategic Decisions at the Business-Unit Level 59
1. How Should Strategic Business Units Be
Designed? 60
2. Business-Unit Objectives 61
3. Allocating Resources within the Business Unit 61
How Do Businesses Compete? 62
1. Generic Business-Level Competitive Strategies 63
2. Do the Same Competitive Strategies Work for Single-
Business Firms and Start-ups? 64
3. Do the Same Competitive Strategies Work for Service
Busi,esses? 65
4. Do the Same Competitive Strategies Work for Global
Competitors? 66
5. Will the htternet Change Evem.,thing? 67
How Do Competitive Strategies Differ from One
Another? 68
1. Differences in Scope 68
2. Diffbrences in Goals and Objectives 69
3. D!fferences in Resource Deployment 70
4. D!fferences in Sources qf Synergy 70
Deciding When a Strategy Is Appropriate:
The Fit between Business Strategies and the
Environment 71
1. Appropriate Conditions.for a Prospector Strategy 71
2. Appropriate Comtitions for an Analyzer Strategy 71
3. Appropriate Conditions.for a Dgfender
Strateg~ 73
How Different Business Strategies Influence
Marketing Decisions 74
1. Prodact Policies 75
2. Pricing Policies 76
3. Distribution Policies 76
4. Promotion Policies 77
What If the Best Marketing Program for a
Product Does Not Fit the Businesss Competitive
Strategy? 77
SECTION TWOOPPORTUNITY ANALYSIS 83
Chapter 4Understanding Market Opportunities 85Strategic Challenges Addressed in Chapter 4 86
Markets and Industries: Whats the Difference? 87Assessing Market and Industry Attractiveness 88
Macro Trend Analysis: A Framework for Assessing
Market Attractiveness, Macro Level 881. The Demographic Em,iromnent 88
2. The Sociocultural Em,iromnent 91
Contents ix
3. The Economic Em,ironment 92
4. The Regulator3, Em&omnent 92
5. The Technological Em~iromnent 93
6. The Natural Em,ironment 94
Your Market Is A~ractive: What About Your
Industry? 951. Porter ~ Five Competitive Forces 95
2. A Five Forces Analysis qf the Celhdar Phone
Sere,ice bMustW 98
Challenges in Macro-Level Market and Industry
Analysis 99
1. b(ormation Sources for Macro-Level Analysis 99
Understanding Markets at the Micro-Level 100
Understanding Industries at the Micro-Level 102
The Team Domains: The Key to the Pursuit of
A~ractive Opportunities 103
1. Mission, Aspirations, and Risk Propensity 103
2. Abili~ to Execute on the Industrys Critical
Success Factors 103
3. Its ~to You ~ow, Not What You ~ow 104
Putting the Seven Domains to Work 104
Anticipating and Responding to Enviro~ental
Change 105
Swiping Upstream or Downstream: An Important
Strategic Choice 106
Chapter 5
Measuring Market Opportunities:Forecasting and Market Knowledge 111
Strategic Challenges Addressed in Chapter 5 113Every Forecast Is Wrong! 113
A Forecasters Toolkit: A Tool for Every Forecasting
Setting 113
1. Statistical and Other Qaantitative Methods 114
2. Obsem,ation 115
3. Smweys or Focus Groups 116
4. Analogy 116
5. Judgment l l 7
6. Market Tests 118
7. Mathematics Entailed in Forecasting 118
Rate of Diffusion of Innovations: Another Perspective
on Forecasting 1181. The Adoption Process 119
2. The Rate of Adoption 120
3. Adopter Categories 120
4. bnplications qf D{ffitsion qf bmovation Theow
for Forecasting Sales qf New Products and New
Firms 121
Preface xiii
SECTION ONEINTRODUCTION TO STRATEGY 1
Chapter 1Market-Oriented Perspectives UnderlieSuccessful Corporate, Business, and
Marketing Strategies 3
Strategic Challenges Addressed in Chapter 1 6Three Levels of Strategy: Similar Components but
Different Issues 71. What Is a Strategy? 7
2. The Components qf Strategy 8
3. The Hierarchy of Strategies 8
4. Corporate Strategy 8
5. Business-Level Strategy 11
6. Marketing Strategy 11
What Is Marketings Role in Formulating and
Implementing Strategies? 11
1. Market-Oriented Management 12
2. Do Customers Always Know What They ~l{mt? 13
3. Does Being Market-Oriented Pay? 14
4. Factors That Mediate Marketings Strategic
Role 16
5. Recent Developments Affecting the Strategic Role
of Marketing 18
6. The Future Role qf Marketing 21
Formulating and Implementing Marketing Strategy--
An Overview of the Process 21
1. A Decision-Making Focus 21
2. Analysis Comes First 21
3. hltegrating Marketing Strategy with the Firms Other
Strategies and Resotoces 22
4. Market OpportuniO~ Analysis 23
5. Formulati,g Marketing Strategies for Spec!fic
Situations 24
6. hnplementation and Control qf the Marketing
Strategy 24
7. The Marketing Plan--A Blueprint
for Action 25
viii
Chapter 2
Corporate Strategy Decisions and Their
Marketing Implications 31
Strategic Challenges Addressed in Chapter 2 33
Corporate Scope Defining the Firms Mission 351. Market h!fluences on the Corporate Mission 35
2. Criteria for De.fi, ing the Corporate
Mission 35
3. Social Values and Ethical Principles 36
4. Wto, Are Ethics Important? The Marketing
hltplications of Ethical Standards 3 7
Corporate Objectives 37
1. Enhancing Shareholder 14thte: The Ultimate
Ob.jective 38
2. The Marketing hnplications of Corporate
Objectives 40
Gaining a Competitive Advantage 41
Corporate Growth Strategies 42
1. Expansion by hwreasing Penetration qfl Current
Product-Markets 42
2. EaT)ansion by Developing New Productsfor Cmrent
Cttstomers 43
3. Expansion by Selling Existing Products to New
Segments o1" Countries 43
4. Expansion by Divers{~,ing 43
5. Expansio~t by Diversi~,ing through Organizational
Relationships or Networks 44
Allocating Corporate Resources 44
1. Portfolio Models 45
2. Vahte-Based Planning 48
Sources of Synergy 511. Knowledge-Based Synergies 51
2. Corporate IdentiO, and the Corporate Brand as a
Source of Synergy 51
3. Corporate Branding Strategy--When Does a Strong
Corporate Brand Make Sense? 52
4. Synergyfiom Shared Resources 53
Chapter 3
Business Strategies and Their MarketingImplications 57Strategic Challenges Addressed in Chapter 3 58
Strategic Decisions at the Business-Unit Level 59
1. How Should Strategic Business Units Be
Designed? 60
2. Business-Unit Objectives 61
3. Allocating Resources within the Business Unit 61
How Do Businesses Compete? 62
1. Generic Business-Level Competitive Strategies 63
2. Do the Same Competitive Strategies Work for Single-
Business Firms and Start-ups? 64
3. Do the Same Competitive Strategies Work for Service
Busi,esses? 65
4. Do the Same Competitive Strategies Work for Global
Competitors? 66
5. Will the htternet Change Evem.,thing? 67
How Do Competitive Strategies Differ from One
Another? 68
1. Differences in Scope 68
2. Diffbrences in Goals and Objectives 69
3. D!fferences in Resource Deployment 70
4. D!fferences in Sources qf Synergy 70
Deciding When a Strategy Is Appropriate:
The Fit between Business Strategies and the
Environment 71
1. Appropriate Conditions.for a Prospector Strategy 71
2. Appropriate Comtitions for an Analyzer Strategy 71
3. Appropriate Conditions.for a Dgfender
Strateg~ 73
How Different Business Strategies Influence
Marketing Decisions 74
1. Prodact Policies 75
2. Pricing Policies 76
3. Distribution Policies 76
4. Promotion Policies 77
What If the Best Marketing Program for a
Product Does Not Fit the Businesss Competitive
Strategy? 77
SECTION TWOOPPORTUNITY ANALYSIS 83
Chapter 4Understanding Market Opportunities 85Strategic Challenges Addressed in Chapter 4 86
Markets and Industries: Whats the Difference? 87Assessing Market and Industry Attractiveness 88
Macro Trend Analysis: A Framework for Assessing
Market Attractiveness, Macro Level 881. The Demographic Em,iromnent 88
2. The Sociocultural Em,iromnent 91
Contents ix
3. The Economic Em,ironment 92
4. The Regulator3, Em&omnent 92
5. The Technological Em~iromnent 93
6. The Natural Em,ironment 94
Your Market Is A~ractive: What About Your
Industry? 951. Porter ~ Five Competitive Forces 95
2. A Five Forces Analysis qf the Celhdar Phone
Sere,ice bMustW 98
Challenges in Macro-Level Market and Industry
Analysis 99
1. b(ormation Sources for Macro-Level Analysis 99
Understanding Markets at the Micro-Level 100
Understanding Industries at the Micro-Level 102
The Team Domains: The Key to the Pursuit of
A~ractive Opportunities 103
1. Mission, Aspirations, and Risk Propensity 103
2. Abili~ to Execute on the Industrys Critical
Success Factors 103
3. Its ~to You ~ow, Not What You ~ow 104
Putting the Seven Domains to Work 104
Anticipating and Responding to Enviro~ental
Change 105
Swiping Upstream or Downstream: An Important
Strategic Choice 106
Chapter 5
Measuring Market Opportunities:Forecasting and Market Knowledge 111
Strategic Challenges Addressed in Chapter 5 113Every Forecast Is Wrong! 113
A Forecasters Toolkit: A Tool for Every Forecasting
Setting 113
1. Statistical and Other Qaantitative Methods 114
2. Obsem,ation 115
3. Smweys or Focus Groups 116
4. Analogy 116
5. Judgment l l 7
6. Market Tests 118
7. Mathematics Entailed in Forecasting 118
Rate of Diffusion of Innovations: Another Perspective
on Forecasting 1181. The Adoption Process 119
2. The Rate of Adoption 120
3. Adopter Categories 120
4. bnplications qf D{ffitsion qf bmovation Theow
for Forecasting Sales qf New Products and New
Firms 121
x Contents
Cautions and Caveats in Forecasting 1221. Keys to Good Forecasting 122
2. Common Sources of Error in Forecasting 123
Why Data? Why Marketing Knowledge? 123
Market Knowledge Systems: Charting a Path
toward Competitive Advantage 124
1. Internal Records ~stems 1242. Marketing Databases 125
3. Competitive Intelligence Systems 127
4. Client Contact and SalesJbrce Automation
Systems 127
Marketing Research: A Foundation for Strategic
Decision Making 129
What Users of Marketing Research Should
Ask 129
Chapter 6
Targeting Attractive Market Segments 133
Strategic Challenges Addressed in Chapter 6 134
Why Do Market Segmentation and Target Marketing
Make Sense? 135
1. Most Markets Are Heterogeneous 135
2. Today "s Market Realities Qften Make
Segmentation hnperative 136
How Are Market Segments Best
Defined? 137
1. Who They Are." Demographic Descriptors 137
2. Where The), Are. Geographic Descriptors 138
3. Geodemographic Descriptors 139
4. How They Behave: Behavioral Descriptors 140
5. hmovative Segmentation: A Key to Marketing
Breakthroagks 142
Choosing Attractive Market Segments:
A Five-Step Process 143
1. Step 1." Select Market-Attractiveness
and Competitive-Position Factors 144
2. Step 2. Weight Each Factor 146
3. Step 3: Rate Segments on Eack Factor; Plot Results
on Matrices 146
4. Step 4: Project Futare Position for Each
Segment 147
5. Step 5. Choose Segments to Target, Allocate
Resources 148
Different Targeting Strategies Suit Different
Opportunities 148
1. Niche-Market Strategy 149
2. Mass-Market Strategy 149
3. Growth-Market Strategy 150
Global Market Segmentation 150
Chapter 7
Differentiation and Positioning 153Strategic Challenges Addressed in Chapter 7 154
Differentiation: One Key to Customer Preference
and Competitive Advantage 154
1. D(fferentiation in Business Strategies 155
2. Diffbrentiation among Goods" and Se~a,ices 155
Physical Positioning 156
1. Limitations qf Ph),sical Positioning 156
Perceptual Positioning 157
Levers Marketers Can Use to Establish
Positioning 157
Preparing the Foundation for Marketing Strategies:
The Positioning Process 158
1. Step 1: Ident(]j, a Relevant Set qf Competitive
Products 159
2. Step 2: ldent([j, Determinant Attributes 160
3. Step 3: Collect Data about Customers Perceptions
for Products in the Competitive Set 161
4. Step 4: Analyze the Current Positions qf Products
in the Competitive Set 161
5. Step 5: Determine Customers Most Preferred
Combination of Attributes 164
6. Step 6. Consider Fit of Possible Positions
witk Custonwr Needs and Segment Attractiveness 165
Z Step 7." Write Positioning Statement of Valae
Proposition to Guide Development of Marketing
Strategy 166
Some Caveats in Positioning Decision Making 169Analytical Tools for Positioning Decision
Making 169
SECTION THREEFORMULATING MARKETING
STRATEGIES 173
Chapter 8Marketing Strategies for New MarketEntries 175Strategic Challenges Addressed in Chapter 8 176
Sustaining Competitive Advantage over the Product
Life Cycle 1771. Market and Competitive hnplications of Product Life
Cycle Stages 178
2. Strategic Implications of the Product Life Cycle 1823. Limitations of the Product Life Cycle
Framework 183
New Market Entries--How New Is New? 183
Objectives of New Product and Market
Development 184
Market Entry Strategies: Is It Better to Be a Pioneer
or a Follower? 186
1. Pioneer Strategy 186
2. Not All Pioneers Capitalize on Their Potential
Advantages 188
3. Follower Strategy 189
4. Determinants of Success for Pioneers and
Followers 190
Strategic Marketing Programs for Pioneers 192
1. Mass-Market Penetration 192
2. Niche Penetration 192
3. Ski"mining and Early Withdrawal 194
4. Marketing Program Components.for a Mass-Market
Penetration Strategy 194
5. Marketing Program Components for a Niche
Penetration Strategy 199
6. Marketing Program Conlponents for a Skinuning
Strategy 199
Chapter 9Strategies for Growth Markets 203Strategic Challenges Addressed in Chapter 9 204
Opportunities and Risks in Growth Markets 2051. Gaining Sllare Is Easier 205
2. Share Gains Are Worth More 207
3. Price Competition Is Likely to Be
Less Intense 207
4. Early Ento, Is Necessaiy to Maintain
Technical Expertise 208
Growth-Market Strategies for Market Leaders 209
1. Marketing Objectives for Share Leaders 209
2. Marketing Actions and Strategies to Achieve Share-
Maintenance Objectives 209
3. Fortress, or Position Defense, Strategy 211
4. Flanker Strategy 214
5. Col!fiontation Strategy 214
6. Market Expansion Strategy 215
7. Contraction, or Strategic Withdrawal, Strategy 216
Share-Growth Strategies for Followers 216
1. Marketing Objectives for Followers 216
2. ivIarketing Actions and Strategies to Achieve Share
Growth 216
3. Deciding Wkom to Attack 218
4. Frontal Attack SOategy 220
5. Leapfrog Strategy 221
6. Flanking and Encirclement Strategies 222
7. Guerilla Attack 223
8. Supporting Evidence 223
Contents xi
Chapter 10Strategies for Mature and DecliningMarkets 227Strategic Challenges Addressed in Chapter 10 228
1. Challenges in Mature Markets 228
2. Challenges #1 Declining Markets 229
Shakeout: The Transition from Market Growth
to Maturity 229
1. Characteristics of the Transition Period 229
2. Strategic Traps during the Transition 229
Strategic Choices in Mature Markets 230
1. Strategies for Maintaining Competitive
Advantage 231
2. Methods of D~ferentiation 232
3. Methods of Maintaining a Low-Cost
Position 237
4. CustomersSatisfaction and LoyalO~ Are Crucial
for Maximizing Their Lifetinle Value 238
Marketing Strategies for Mature Markets 241
1. Strategies for Maintaining Cttrrent Market
Share 241
2. Strategies for Extending Volume Growth 242
Strategies for Declining Markets 2481. Relative Attractiveness of Declining Markets 248
2. Divestment or Liquidation 251
3. Marketing Strategies for Remaining
Competitors 251
Chapter 11
Marketing Strategies for the New
Economy 257Strategic Challenges Addressed in Chapter 11 258
Does Every Company Need a New-Economy
Strategy? 258
Threats or Opportunities? The Inherent Advantages
and Disadvantages of the New Economy
for Marketers 261
1. The Syndication of h!formation 261
2. Increasing Returns to Scale o~f Network
Products 262
3. The Ability to Efficiently Personalize and Customize
Market Offerings 262
4. Disintermediation and Restructlwing of Distribution
Channels 263
5. Global Reach, 24X7 Access, and hlstantaneous
Delively 264
6. Are These New-Economy Attributes Opportunities o1"
Threats? 264
7. First-MoverAdvantage: Fact or Fiction? 266
x Contents
Cautions and Caveats in Forecasting 1221. Keys to Good Forecasting 122
2. Common Sources of Error in Forecasting 123
Why Data? Why Marketing Knowledge? 123
Market Knowledge Systems: Charting a Path
toward Competitive Advantage 124
1. Internal Records ~stems 1242. Marketing Databases 125
3. Competitive Intelligence Systems 127
4. Client Contact and SalesJbrce Automation
Systems 127
Marketing Research: A Foundation for Strategic
Decision Making 129
What Users of Marketing Research Should
Ask 129
Chapter 6
Targeting Attractive Market Segments 133
Strategic Challenges Addressed in Chapter 6 134
Why Do Market Segmentation and Target Marketing
Make Sense? 135
1. Most Markets Are Heterogeneous 135
2. Today "s Market Realities Qften Make
Segmentation hnperative 136
How Are Market Segments Best
Defined? 137
1. Who They Are." Demographic Descriptors 137
2. Where The), Are. Geographic Descriptors 138
3. Geodemographic Descriptors 139
4. How They Behave: Behavioral Descriptors 140
5. hmovative Segmentation: A Key to Marketing
Breakthroagks 142
Choosing Attractive Market Segments:
A Five-Step Process 143
1. Step 1." Select Market-Attractiveness
and Competitive-Position Factors 144
2. Step 2. Weight Each Factor 146
3. Step 3: Rate Segments on Eack Factor; Plot Results
on Matrices 146
4. Step 4: Project Futare Position for Each
Segment 147
5. Step 5. Choose Segments to Target, Allocate
Resources 148
Different Targeting Strategies Suit Different
Opportunities 148
1. Niche-Market Strategy 149
2. Mass-Market Strategy 149
3. Growth-Market Strategy 150
Global Market Segmentation 150
Chapter 7
Differentiation and Positioning 153Strategic Challenges Addressed in Chapter 7 154
Differentiation: One Key to Customer Preference
and Competitive Advantage 154
1. D(fferentiation in Business Strategies 155
2. Diffbrentiation among Goods" and Se~a,ices 155
Physical Positioning 156
1. Limitations qf Ph),sical Positioning 156
Perceptual Positioning 157
Levers Marketers Can Use to Establish
Positioning 157
Preparing the Foundation for Marketing Strategies:
The Positioning Process 158
1. Step 1: Ident(]j, a Relevant Set qf Competitive
Products 159
2. Step 2: ldent([j, Determinant Attributes 160
3. Step 3: Collect Data about Customers Perceptions
for Products in the Competitive Set 161
4. Step 4: Analyze the Current Positions qf Products
in the Competitive Set 161
5. Step 5: Determine Customers Most Preferred
Combination of Attributes 164
6. Step 6. Consider Fit of Possible Positions
witk Custonwr Needs and Segment Attractiveness 165
Z Step 7." Write Positioning Statement of Valae
Proposition to Guide Development of Marketing
Strategy 166
Some Caveats in Positioning Decision Making 169Analytical Tools for Positioning Decision
Making 169
SECTION THREEFORMULATING MARKETING
STRATEGIES 173
Chapter 8Marketing Strategies for New MarketEntries 175Strategic Challenges Addressed in Chapter 8 176
Sustaining Competitive Advantage over the Product
Life Cycle 1771. Market and Competitive hnplications of Product Life
Cycle Stages 178
2. Strategic Implications of the Product Life Cycle 1823. Limitations of the Product Life Cycle
Framework 183
New Market Entries--How New Is New? 183
Objectives of New Product and Market
Development 184
Market Entry Strategies: Is It Better to Be a Pioneer
or a Follower? 186
1. Pioneer Strategy 186
2. Not All Pioneers Capitalize on Their Potential
Advantages 188
3. Follower Strategy 189
4. Determinants of Success for Pioneers and
Followers 190
Strategic Marketing Programs for Pioneers 192
1. Mass-Market Penetration 192
2. Niche Penetration 192
3. Ski"mining and Early Withdrawal 194
4. Marketing Program Components.for a Mass-Market
Penetration Strategy 194
5. Marketing Program Components for a Niche
Penetration Strategy 199
6. Marketing Program Conlponents for a Skinuning
Strategy 199
Chapter 9Strategies for Growth Markets 203Strategic Challenges Addressed in Chapter 9 204
Opportunities and Risks in Growth Markets 2051. Gaining Sllare Is Easier 205
2. Share Gains Are Worth More 207
3. Price Competition Is Likely to Be
Less Intense 207
4. Early Ento, Is Necessaiy to Maintain
Technical Expertise 208
Growth-Market Strategies for Market Leaders 209
1. Marketing Objectives for Share Leaders 209
2. Marketing Actions and Strategies to Achieve Share-
Maintenance Objectives 209
3. Fortress, or Position Defense, Strategy 211
4. Flanker Strategy 214
5. Col!fiontation Strategy 214
6. Market Expansion Strategy 215
7. Contraction, or Strategic Withdrawal, Strategy 216
Share-Growth Strategies for Followers 216
1. Marketing Objectives for Followers 216
2. ivIarketing Actions and Strategies to Achieve Share
Growth 216
3. Deciding Wkom to Attack 218
4. Frontal Attack SOategy 220
5. Leapfrog Strategy 221
6. Flanking and Encirclement Strategies 222
7. Guerilla Attack 223
8. Supporting Evidence 223
Contents xi
Chapter 10Strategies for Mature and DecliningMarkets 227Strategic Challenges Addressed in Chapter 10 228
1. Challenges in Mature Markets 228
2. Challenges #1 Declining Markets 229
Shakeout: The Transition from Market Growth
to Maturity 229
1. Characteristics of the Transition Period 229
2. Strategic Traps during the Transition 229
Strategic Choices in Mature Markets 230
1. Strategies for Maintaining Competitive
Advantage 231
2. Methods of D~ferentiation 232
3. Methods of Maintaining a Low-Cost
Position 237
4. CustomersSatisfaction and LoyalO~ Are Crucial
for Maximizing Their Lifetinle Value 238
Marketing Strategies for Mature Markets 241
1. Strategies for Maintaining Cttrrent Market
Share 241
2. Strategies for Extending Volume Growth 242
Strategies for Declining Markets 2481. Relative Attractiveness of Declining Markets 248
2. Divestment or Liquidation 251
3. Marketing Strategies for Remaining
Competitors 251
Chapter 11
Marketing Strategies for the New
Economy 257Strategic Challenges Addressed in Chapter 11 258
Does Every Company Need a New-Economy
Strategy? 258
Threats or Opportunities? The Inherent Advantages
and Disadvantages of the New Economy
for Marketers 261
1. The Syndication of h!formation 261
2. Increasing Returns to Scale o~f Network
Products 262
3. The Ability to Efficiently Personalize and Customize
Market Offerings 262
4. Disintermediation and Restructlwing of Distribution
Channels 263
5. Global Reach, 24X7 Access, and hlstantaneous
Delively 264
6. Are These New-Economy Attributes Opportunities o1"
Threats? 264
7. First-MoverAdvantage: Fact or Fiction? 266
xii Contents
Developing a New-Economy Strategy: A Decision
Framework 267
1. Marketing Applications for New-EcononO, Tools 267
2. Developing New-Econono, Marketing Strategies: The
Critical Questions 275
Developing Strategies to Serve New-Economy
Markets 279
1. What Lessons Can We Learn from the Dot-Corn
Crash? 279
2. What htdustries Will Be Next to Get the Dot-Corn
Treatment? 279
3. What Are the Key Success Factors in Serving the Dot-
Corn Markets of Tomorrow? 280
SECTION FOURIMPLEMENTATION AND CONTROL 285
Chapter 12Organizing and Planning for Effective
Implementation 287
Strategic Challenges Addressed in Chapter 12 289
Designing Appropriate Administrative Relationships
for the Implementation of Different Competitive
Strategies 2901. Business- Unit Autonomy 291
2. Shared Programs and Facilities 2923. Evaluation and Reward Systems 293
Designing Appropriate Organizational
Structures and Processes for Implementing
Different Strategies 2931. Functional Competencies and Resource
Allocation 293
2. Additional Considerations for Se~a,ice
Organizations 295
3. Organizational Structures 295
4. Recent Trends in Organizational Design 300
5. Organizational Adjustments as Firms Grow
and Markets Change 300
6. Organizational Designs for Selling in Global
Markets 301
Marketing Plans: The Foundation for Implementing
Marketing Actions 303
1. The Situation Analysis 306
2. Key Issues 308
3. Objectives 308
4. Marketing Strategy 308
5. Action Platts 308
6. Projected Profit-and-Loss Statement 309
7. Contingency Plans 309
Chapter 13
Marketing Metrics for Marketing
Performance 313
Strategic Challenges Addressed in Chapter 13 314
Designing Marketing Metrics Step by Step 3151. Setting Standards of Performance 316
2. Speci~4ng and Obtaining Feedback Data 320
3. Evaluating Feedback Data 321
4. Taking Corrective Action 322
Design Decisions for Strategic MonitoringSystems 322
1. Ident!/j~ing Key Variables 323
2. Tracking and Monitoring 3233. Strategy Reassessment 323
Design Decisions for Marketing Metrics 3241. Who Needs What It!formation? 3242. ~lqwn and How Often Is the InformationNeeded? 328
3. In What Media and in What Format(s)or Levels qfiAggregation Should the InformationBe Provided? 3294. Does Your System of Marketing MeOicsMeasure Up? 3295. What Contingencies Should Be Plamwd for? 3306. Global Marketing ConOol 332
A Tool for Periodic Assessment of Marketing
Performance: The Marketing Audit 3331. ~,pes qflAudits 333
Name Index 337
Subject Index 341
WHY THIS COURSE?The best of the leading business schools and other executive education programs offer cap-stone or other elective courses in marketing whose strategic perspective challenges stu-
dents to "pull it all together" and integrate what they have learned in earlier courses--including those in marketing and other disciplines--in making strategic marketing
decisions. Whether called Marketing Strategy, Strategic Market Planning, Strategic BrandManagement, Marketing in the New Economy, or something else, such courses typicallyask students to apply what they learn to decision making in cases that bring alive real mar-keting situations. Many also ask students to complete a term-long project of some kind,such as the development of a marketing plan for a new or existing product or a new ven-ture. We have written this text to serve exactly these kinds of capstone and advanced elec-tive courses.
WHY THIS BOOK?Why did your instructor choose this book? Chances are, it was for one or more of the fol-lowing reasons:
Among your instructors objectives is to give you the necessary tools and frameworks
to enable you to be an effective contributor to marketing decision making, whether asan entrepreneur or in an established firm. This books focus on decision making sets it
apart from other texts that place greater emphasis on description of marketing phe-nomena than on the strategic and tactical marketing decisions that marketing managers
and entrepreneurs must make each and every day. Your instructor prefers a tightly written text whose strategic perspectives serve as a con-
cise fonndafion around which a broader set of materials, such as case studies or sup-plementary readings that fit the specific theme of the course, are assembled. This textassumes student familiarity with--and thus does not repeat--the basics of buyer behav-ior, the four Ps, and other marketing fundamentals typically covered in earlier courses.
Your instructor wants to use the most current and Web-savvy book available. We inte-grate the latest new-economy developments into each chapter, and we devote an entirechapter~hapter 11--to the development of marketing strategies for the new econ-omy. In addition, we supplement the book with an interactive Web site to help you learnand to help your instructor choose the best case and other materials and in-class activ-
ities. Our goal--and probably that of your instructor, as well--is to make both the lat-est Web-based tools as well as time-tested marketing principles relevant to those of youwho will work in either old- or new-economy companies.
Your instructor appreciates and believes you ~vill benefit from the real-world, globalperspectives offered by the authors of this book. Our combined entrepreneurial, mar-
keting management, and consulting experience spans a broad variety of manufacturing,service, software, and distribution industries and has taken us--and thereby you, thereader--around the world many times over.
As the reader will see from the outset in Chapter 1, marketing decision making is a criti-cal activity in every firm, including start-ups--not just in big companies with traditionalmarketing departments. Further, it is not just marketing managers who make marketingdecisions. People in nearly every role in every company can have a powerful influence on
how happy its customers are--or are not~with the goods and services the company
xii Contents
Developing a New-Economy Strategy: A Decision
Framework 267
1. Marketing Applications for New-EcononO, Tools 267
2. Developing New-Econono, Marketing Strategies: The
Critical Questions 275
Developing Strategies to Serve New-Economy
Markets 279
1. What Lessons Can We Learn from the Dot-Corn
Crash? 279
2. What htdustries Will Be Next to Get the Dot-Corn
Treatment? 279
3. What Are the Key Success Factors in Serving the Dot-
Corn Markets of Tomorrow? 280
SECTION FOURIMPLEMENTATION AND CONTROL 285
Chapter 12Organizing and Planning for Effective
Implementation 287
Strategic Challenges Addressed in Chapter 12 289
Designing Appropriate Administrative Relationships
for the Implementation of Different Competitive
Strategies 2901. Business- Unit Autonomy 291
2. Shared Programs and Facilities 2923. Evaluation and Reward Systems 293
Designing Appropriate Organizational
Structures and Processes for Implementing
Different Strategies 2931. Functional Competencies and Resource
Allocation 293
2. Additional Considerations for Se~a,ice
Organizations 295
3. Organizational Structures 295
4. Recent Trends in Organizational Design 300
5. Organizational Adjustments as Firms Grow
and Markets Change 300
6. Organizational Designs for Selling in Global
Markets 301
Marketing Plans: The Foundation for Implementing
Marketing Actions 303
1. The Situation Analysis 306
2. Key Issues 308
3. Objectives 308
4. Marketing Strategy 308
5. Action Platts 308
6. Projected Profit-and-Loss Statement 309
7. Contingency Plans 309
Chapter 13
Marketing Metrics for Marketing
Performance 313
Strategic Challenges Addressed in Chapter 13 314
Designing Marketing Metrics Step by Step 3151. Setting Standards of Performance 316
2. Speci~4ng and Obtaining Feedback Data 320
3. Evaluating Feedback Data 321
4. Taking Corrective Action 322
Design Decisions for Strategic MonitoringSystems 322
1. Ident!/j~ing Key Variables 323
2. Tracking and Monitoring 3233. Strategy Reassessment 323
Design Decisions for Marketing Metrics 3241. Who Needs What It!formation? 3242. ~lqwn and How Often Is the InformationNeeded? 328
3. In What Media and in What Format(s)or Levels qfiAggregation Should the InformationBe Provided? 3294. Does Your System of Marketing MeOicsMeasure Up? 3295. What Contingencies Should Be Plamwd for? 3306. Global Marketing ConOol 332
A Tool for Periodic Assessment of Marketing
Performance: The Marketing Audit 3331. ~,pes qflAudits 333
Name Index 337
Subject Index 341
WHY THIS COURSE?The best of the leading business schools and other executive education programs offer cap-stone or other elective courses in marketing whose strategic perspective challenges stu-
dents to "pull it all together" and integrate what they have learned in earlier courses--including those in marketing and other disciplines--in making strategic marketing
decisions. Whether called Marketing Strategy, Strategic Market Planning, Strategic BrandManagement, Marketing in the New Economy, or something else, such courses typicallyask students to apply what they learn to decision making in cases that bring alive real mar-keting situations. Many also ask students to complete a term-long project of some kind,such as the development of a marketing plan for a new or existing product or a new ven-ture. We have written this text to serve exactly these kinds of capstone and advanced elec-tive courses.
WHY THIS BOOK?Why did your instructor choose this book? Chances are, it was for one or more of the fol-lowing reasons:
Among your instructors objectives is to give you the necessary tools and frameworks
to enable you to be an effective contributor to marketing decision making, whether asan entrepreneur or in an established firm. This books focus on decision making sets it
apart from other texts that place greater emphasis on description of marketing phe-nomena than on the strategic and tactical marketing decisions that marketing managers
and entrepreneurs must make each and every day. Your instructor prefers a tightly written text whose strategic perspectives serve as a con-
cise fonndafion around which a broader set of materials, such as case studies or sup-plementary readings that fit the specific theme of the course, are assembled. This textassumes student familiarity with--and thus does not repeat--the basics of buyer behav-ior, the four Ps, and other marketing fundamentals typically covered in earlier courses.
Your instructor wants to use the most current and Web-savvy book available. We inte-grate the latest new-economy developments into each chapter, and we devote an entirechapter~hapter 11--to the development of marketing strategies for the new econ-omy. In addition, we supplement the book with an interactive Web site to help you learnand to help your instructor choose the best case and other materials and in-class activ-
ities. Our goal--and probably that of your instructor, as well--is to make both the lat-est Web-based tools as well as time-tested marketing principles relevant to those of youwho will work in either old- or new-economy companies.
Your instructor appreciates and believes you ~vill benefit from the real-world, globalperspectives offered by the authors of this book. Our combined entrepreneurial, mar-
keting management, and consulting experience spans a broad variety of manufacturing,service, software, and distribution industries and has taken us--and thereby you, thereader--around the world many times over.
As the reader will see from the outset in Chapter 1, marketing decision making is a criti-cal activity in every firm, including start-ups--not just in big companies with traditionalmarketing departments. Further, it is not just marketing managers who make marketingdecisions. People in nearly every role in every company can have a powerful influence on
how happy its customers are--or are not~with the goods and services the company
xiv Preface
provides. Stockbrokers must attract new customers. Acconnting and consulting firms mustfind ways to differentiate their services from other providers so their customers have rea-sons to give them their business. Software engineers developing the next great Internet orother technology must understand how their technology can benefit the intended customer,for without such benefits, customers will not buy. Thus, we have written this book to meetthe marketing needs of readers ~vho hope to make a difference in the long-term strategicsuccess of their organizations--whether their principal roles are in marketing or otherwise.
In this brief preface, we want to say a bit more about each of the four distinctive bene-fits--bulleted above--that this book offers its readers. We also point out the key changesin this edition compared to previous ones; and we thank our many students, colleagues, and
others from whom we have learned so much, without whom this book would not have beenpossible.
A FOCUS ON DECISION MAKINGThis fifth edition of Marketing Strategy.A Decision-FocusedApproach retains the strate-gic perspectives that have marked the earlier editions, while providing, in each chapter,
specific tools and frameworks for making marketing decisions that take best advantage
of the conditions in which the firm finds itself--both internally, in terms of the firms ntis-
sion and competencies, and externally, in terms of the market and competitive context inwhich it operates.
This decision-focused approach is important to students and executives who are our read-
ers, because, in most advanced marketing management classes and executive courses, the
students or participants will be asked to make numerous decisions~ecisions in case stud-
ies about what the protagonist in the case should do; decisions in a course project, such as
those entailed in developing a marketing plan; or decisions in a marketing simulation game.
Our decision-focused approach is also important to employers, who tell us they want
todays graduates to be prepared to "hit the ground running" and contribute to the firms
decision making from day one. The ability to bring thoughtful and disciplined tools and
frameworks--as opposed to seat-of-the-pants hunches or blind intuition--to marketing
decision making is one of the key assets todays business school graduates offer their
employers. This book puts the tools in the toolbox to make this happen. In the end, employ-
ers want to know what their new hires can do, not just what they
A CONCISE STRATEGIC FOUNDATIONThis fifth edition serves as a concise foundation for a capstone or advanced elective
course in marketing whose focus is on strategic issues. By combining this book with sup-
plemental readings and!or cases, instructors can design a rich and varied course in which
students learn experientially, as they focus on the various strategic decisions that define
contemporary marketing theory and practice.
Because the book is concise, students learn the key strategic principles quickly, so they
can devote most of their reading and prep time to the application of those principles to cases
or a course project. The books concise strategic focus also helps instructors build special-
ized elective courses--in Strategic Brand Management or in Marketing in the New Econ-
omy, for example--that draw on supplemental readings to complete the thematic picture.
WEB-SAVVY INSIGHTSBecause this book has been written by authors who teach at Web-savvy institutions and
~vork with Web-savvy companies, it brings a realistic, informed, and Web-savvy perspec-
tive to an important question many students are asking: "Has the advent of the Internet
changed all the rules?" Our ans~ver is, "Well, yes and no." On one hand, the Internet has
Preface xv
made available a host of new marketing tools--from banner ads to e-mail marketing todelivery of digital goods and services over the Internet--many of which are available tocompanies in the so-called old and new economies alike. On the other hand, time-testedmarketing fundamentals--such as understanding ones customers and competitors and meet-
ing customer needs in ways that are differentiated from the offerings of those competitorshave become even more important in the fast-moving, dot-corn world, as the many dot-comfailures a few years ago attest.
Thus, throughout the book, we integrate examples of new-economy companies--bothsuccessful and otherwise--to show how both yesterdays and todays marketing tools anddecision frameworks can most effectively be applied. Because the advent of the Internet,mobile telephony, and other new-economy technologies is so important in its own right,however, we also devote Chapter 11 to new-economy strategies, in order to provide formarketers in all kinds of companies a roadmap for decisions about where, when, and howto deploy new-economy tools.
A REAL-WORLD, GLOBAL PERSPECTIVETheory is important, becanse it enhances our understanding of business phenomena andhelps managers think about what they should do. It is in the application of theory--theworld of marketing practice--where we believe this book excels. Our decision focus is allabout application. But we dont just bring an academic perspective to the party, importantas that perspective is.
Two of us on the author team, Jean-Claude Larr~chd and John Mullins, have started suc-cessful entrepreneurial companies. One of these firms has "gone public." Two of us,Orville Walker and John, worked for many years in the United States, at the University of
Minnesota and University of Denver, respectively. Two, Jean-Claude and John, work inEurope, Jean-Claude at 1NSEAD and John at the London Business School. All of us,including Harper Boyd, who passed away in 1999 but whose legacy lives on in this edition,have contributed the fruits of our research to the growing body of knowledge in the mar-keting management, marketing strategy, new products, and entrepreneurship arenas. Theresult of our collective and varied experience and expertise is a book marked by its reapworld, global perspective. The books many examples of real people from around theworld making real strategic marketing decisions include examples of startups and high-growth companies as well as examples of larger, more established firms.
WHATS NEW IN THIS EDITION?Weve also made a few important changes in this edition worth noting to those familiarwith previous editions.
In the fourth edition of this book we brought forward, to Chapter 1, the material that
outlines what a marketing plan is and does, to better support students who are asked, aspart of the capstone or elective course in which this book is used, to develop marketing
plans for either real or hypothetical products, whether existing ones or new. In this edi-tion we go one step further and suggest a set of marketing plan!consulting project exer-cises at the end of each chapter. Your instructor may assign, modify, or supplement theseexercises as a means of providing detailed direction for a course project, and of tying
elements of that project directly to each chapters concepts and tools. We have combined chapters dealing with the market environment and industry and
competitive analysis into a single chapter called "Understanding Market Opportuni-ties." By integrating material dealing with various aspects of the external environment,this new chapter provides a more comprehensive framework for evaluating the attrac-tiveness of industries and markets at both the macro and micro levels.
xiv Preface
provides. Stockbrokers must attract new customers. Acconnting and consulting firms mustfind ways to differentiate their services from other providers so their customers have rea-sons to give them their business. Software engineers developing the next great Internet orother technology must understand how their technology can benefit the intended customer,for without such benefits, customers will not buy. Thus, we have written this book to meetthe marketing needs of readers ~vho hope to make a difference in the long-term strategicsuccess of their organizations--whether their principal roles are in marketing or otherwise.
In this brief preface, we want to say a bit more about each of the four distinctive bene-fits--bulleted above--that this book offers its readers. We also point out the key changesin this edition compared to previous ones; and we thank our many students, colleagues, and
others from whom we have learned so much, without whom this book would not have beenpossible.
A FOCUS ON DECISION MAKINGThis fifth edition of Marketing Strategy.A Decision-FocusedApproach retains the strate-gic perspectives that have marked the earlier editions, while providing, in each chapter,
specific tools and frameworks for making marketing decisions that take best advantage
of the conditions in which the firm finds itself--both internally, in terms of the firms ntis-
sion and competencies, and externally, in terms of the market and competitive context inwhich it operates.
This decision-focused approach is important to students and executives who are our read-
ers, because, in most advanced marketing management classes and executive courses, the
students or participants will be asked to make numerous decisions~ecisions in case stud-
ies about what the protagonist in the case should do; decisions in a course project, such as
those entailed in developing a marketing plan; or decisions in a marketing simulation game.
Our decision-focused approach is also important to employers, who tell us they want
todays graduates to be prepared to "hit the ground running" and contribute to the firms
decision making from day one. The ability to bring thoughtful and disciplined tools and
frameworks--as opposed to seat-of-the-pants hunches or blind intuition--to marketing
decision making is one of the key assets todays business school graduates offer their
employers. This book puts the tools in the toolbox to make this happen. In the end, employ-
ers want to know what their new hires can do, not just what they
A CONCISE STRATEGIC FOUNDATIONThis fifth edition serves as a concise foundation for a capstone or advanced elective
course in marketing whose focus is on strategic issues. By combining this book with sup-
plemental readings and!or cases, instructors can design a rich and varied course in which
students learn experientially, as they focus on the various strategic decisions that define
contemporary marketing theory and practice.
Because the book is concise, students learn the key strategic principles quickly, so they
can devote most of their reading and prep time to the application of those principles to cases
or a course project. The books concise strategic focus also helps instructors build special-
ized elective courses--in Strategic Brand Management or in Marketing in the New Econ-
omy, for example--that draw on supplemental readings to complete the thematic picture.
WEB-SAVVY INSIGHTSBecause this book has been written by authors who teach at Web-savvy institutions and
~vork with Web-savvy companies, it brings a realistic, informed, and Web-savvy perspec-
tive to an important question many students are asking: "Has the advent of the Internet
changed all the rules?" Our ans~ver is, "Well, yes and no." On one hand, the Internet has
Preface xv
made available a host of new marketing tools--from banner ads to e-mail marketing todelivery of digital goods and services over the Internet--many of which are available tocompanies in the so-called old and new economies alike. On the other hand, time-testedmarketing fundamentals--such as understanding ones customers and competitors and meet-
ing customer needs in ways that are differentiated from the offerings of those competitorshave become even more important in the fast-moving, dot-corn world, as the many dot-comfailures a few years ago attest.
Thus, throughout the book, we integrate examples of new-economy companies--bothsuccessful and otherwise--to show how both yesterdays and todays marketing tools anddecision frameworks can most effectively be applied. Because the advent of the Internet,mobile telephony, and other new-economy technologies is so important in its own right,however, we also devote Chapter 11 to new-economy strategies, in order to provide formarketers in all kinds of companies a roadmap for decisions about where, when, and howto deploy new-economy tools.
A REAL-WORLD, GLOBAL PERSPECTIVETheory is important, becanse it enhances our understanding of business phenomena andhelps managers think about what they should do. It is in the application of theory--theworld of marketing practice--where we believe this book excels. Our decision focus is allabout application. But we dont just bring an academic perspective to the party, importantas that perspective is.
Two of us on the author team, Jean-Claude Larr~chd and John Mullins, have started suc-cessful entrepreneurial companies. One of these firms has "gone public." Two of us,Orville Walker and John, worked for many years in the United States, at the University of
Minnesota and University of Denver, respectively. Two, Jean-Claude and John, work inEurope, Jean-Claude at 1NSEAD and John at the London Business School. All of us,including Harper Boyd, who passed away in 1999 but whose legacy lives on in this edition,have contributed the fruits of our research to the growing body of knowledge in the mar-keting management, marketing strategy, new products, and entrepreneurship arenas. Theresult of our collective and varied experience and expertise is a book marked by its reapworld, global perspective. The books many examples of real people from around theworld making real strategic marketing decisions include examples of startups and high-growth companies as well as examples of larger, more established firms.
WHATS NEW IN THIS EDITION?Weve also made a few important changes in this edition worth noting to those familiarwith previous editions.
In the fourth edition of this book we brought forward, to Chapter 1, the material that
outlines what a marketing plan is and does, to better support students who are asked, aspart of the capstone or elective course in which this book is used, to develop marketing
plans for either real or hypothetical products, whether existing ones or new. In this edi-tion we go one step further and suggest a set of marketing plan!consulting project exer-cises at the end of each chapter. Your instructor may assign, modify, or supplement theseexercises as a means of providing detailed direction for a course project, and of tying
elements of that project directly to each chapters concepts and tools. We have combined chapters dealing with the market environment and industry and
competitive analysis into a single chapter called "Understanding Market Opportuni-ties." By integrating material dealing with various aspects of the external environment,this new chapter provides a more comprehensive framework for evaluating the attrac-tiveness of industries and markets at both the macro and micro levels.
xvi Preface
THANKS!
Weve moved our overview of the product life cycle and its strategic implications tothe begilming of Section Three, where it serves as the foundation for Chapters 8, 9,
and 10, which discuss marketing strategies for product-markets in different stages ofdevelopment.
Weve added several Discussion Questions at the end of each chapter to facilitate yourreview of the material and provide a possible focus for class discussion. However, thebooks interactive Web site at www.mhhe.eom/walker06 continues to provide addi-tional self-diagnostic questions for students--as well as answers for the discussionquestions~o enable you to test your understanding of the tools and decision frame-works covered in each chapter. For instructors, the Web site offers suggested activitiesand assignments for each chapter, in order to aid instructors who seek to build interac-tive classroom environments. The Web site also suggests the "best of the best" decision-focused cases including international ones, dot-corns, and companies in services andmanufacturing industries--and other supplemental readings to help instructors findthe best teaching materials to train graduates for the local economies in which they arelikely to work and to most effectively nail down the learning in each chapter.
In reality, though, no chapter has escaped untouched. All have been updated, although thebasic flow, sequence, and strategic focus of the book have remained unchanged.
Simply put, this book is not solely our work--far from it. Many of our students, colleagues,
and those with whom we work in industry have made contributions that have significantlyshaped our perspectives on marketing decision making. We are grateful to all of them.
We wish to give special thanks, though, to Barbara Jamieson of Edinburgh BusinessSchool in Scotland and to Abi Murthy. Barbaras instructional expertise is reflected in theInstructors Manual and the other teaching materials, which together comprise a standout
package of instructor support. Abis research skills, together with her extensive businessexperience on three continents, have been instrumental in identifying many of the globalexamples that bring the books real-world perspective to life.
We also thank a small army of talented people at McGraw-Hill/Irwin for their work thathas turned our rough manuscript into an attractive and readable book. In particular, oureditors, Barrett Koger and Jill OMalley, have been instrumental in giving birth to this edi-tion. Without them, wed probably still be writing!
Finally, we thank Harper Boyd, without whom this book would not exist, and our par-ents, ~vithout whom, of course, none of us would be here. To all of you we extend our love,our respect, and our gratitude for passing on to us your curiosity and your passion forlearning. We therefore dedicate this book to Harper Boyd, to Jeannette and Orville Walker
Sr., to Jack and Alice Mullins, and to Odette and Pierre Larrdch&
01a,ille C. Walker J~:
Jean-Claude Larr6ch6
Minneapolis, London, and Fontainebleau."
Spring 2005
xvi Preface
THANKS!
Weve moved our overview of the product life cycle and its strategic implications tothe begilming of Section Three, where it serves as the foundation for Chapters 8, 9,
and 10, which discuss marketing strategies for product-markets in different stages ofdevelopment.
Weve added several Discussion Questions at the end of each chapter to facilitate yourreview of the material and provide a possible focus for class discussion. However, thebooks interactive Web site at www.mhhe.eom/walker06 continues to provide addi-tional self-diagnostic questions for students--as well as answers for the discussionquestions~o enable you to test your understanding of the tools and decision frame-works covered in each chapter. For instructors, the Web site offers suggested activitiesand assignments for each chapter, in order to aid instructors who seek to build interac-tive classroom environments. The Web site also suggests the "best of the best" decision-focused cases including international ones, dot-corns, and companies in services andmanufacturing industries--and other supplemental readings to help instructors findthe best teaching materials to train graduates for the local economies in which they arelikely to work and to most effectively nail down the learning in each chapter.
In reality, though, no chapter has escaped untouched. All have been updated, although thebasic flow, sequence, and strategic focus of the book have remained unchanged.
Simply put, this book is not solely our work--far from it. Many of our students, colleagues,
and those with whom we work in industry have made contributions that have significantlyshaped our perspectives on marketing decision making. We are grateful to all of them.
We wish to give special thanks, though, to Barbara Jamieson of Edinburgh BusinessSchool in Scotland and to Abi Murthy. Barbaras instructional expertise is reflected in theInstructors Manual and the other teaching materials, which together comprise a standout
package of instructor support. Abis research skills, together with her extensive businessexperience on three continents, have been instrumental in identifying many of the globalexamples that bring the books real-world perspective to life.
We also thank a small army of talented people at McGraw-Hill/Irwin for their work thathas turned our rough manuscript into an attractive and readable book. In particular, oureditors, Barrett Koger and Jill OMalley, have been instrumental in giving birth to this edi-tion. Without them, wed probably still be writing!
Finally, we thank Harper Boyd, without whom this book would not exist, and our par-ents, ~vithout whom, of course, none of us would be here. To all of you we extend our love,our respect, and our gratitude for passing on to us your curiosity and your passion forlearning. We therefore dedicate this book to Harper Boyd, to Jeannette and Orville Walker
Sr., to Jack and Alice Mullins, and to Odette and Pierre Larrdch&
01a,ille C. Walker J~:
Jean-Claude Larr6ch6
Minneapolis, London, and Fontainebleau."
Spring 2005
Case Vignette
These vignettes have been chosen to increase
the books global focus and international
perspective.
Strategic Issues
Highlight critical information and crucial
questions throughout each chapter.
xviii
Marketing Strategies for theNew EconomyChocolate Company Sweetens the Web"
Yhorntons Goes Online
How Sweet Are the Rewards?
Strategic IssueThe marketing objec-tives and st,ategy for aparticular product-market entry nlust beachievable with thecolnpanys available re-sources and capabilitiesand consistent with thedirection and allocationof resources inherent inthe firms corporate andbusiness-level slaategies.
stead, the
achievabl
dhection
strategies
elementsponents ~managee
MarkeA major
egy elem
Expansion by Increasin,Product-Markets
One way for a company to expm
ically requires actions such as m
prices, or outspending competit(
combination of all these actions
Global PerspectiveInterneE IconsIdentify global examples as well aseffective Internee marketing for both
new and economic marketers.
and
Latin America.:
While developing nations retinfrastructure goods and service:
making them attractive potentialEven developed nations can repr
on newly elnerging teclmologies
of e-retailers such as Amazon.cc
Marketing Plan
Exercises
End-of-chapter exercises putimportant concepts from eachchapter into action.
Marketing Identil-y an appropriate marketing strategy consistent with the products stage in its 1)roduct life cycleand the market and competitive conditions it laces, drawing on Chapters 8, 9, and/or 10 as appro-priate. Identify the strategies key eolnpetitors are using, and develop a rationale for the strategy youhave chosen.
xix
Case Vignette
These vignettes have been chosen to increase
the books global focus and international
perspective.
Strategic Issues
Highlight critical information and crucial
questions throughout each chapter.
xviii
Marketing Strategies for theNew EconomyChocolate Company Sweetens the Web"
Yhorntons Goes Online
How Sweet Are the Rewards?
Strategic IssueThe marketing objec-tives and st,ategy for aparticular product-market entry nlust beachievable with thecolnpanys available re-sources and capabilitiesand consistent with thedirection and allocationof resources inherent inthe firms corporate andbusiness-level slaategies.
stead, the
achievabl
dhection
strategies
elementsponents ~managee
MarkeA major
egy elem
Expansion by Increasin,Product-Markets
One way for a company to expm
ically requires actions such as m
prices, or outspending competit(
combination of all these actions
Global PerspectiveInterneE IconsIdentify global examples as well aseffective Internee marketing for both
new and economic marketers.
and
Latin America.:
While developing nations retinfrastructure goods and service:
making them attractive potentialEven developed nations can repr
on newly elnerging teclmologies
of e-retailers such as Amazon.cc
Marketing Plan
Exercises
End-of-chapter exercises putimportant concepts from eachchapter into action.
Marketing Identil-y an appropriate marketing strategy consistent with the products stage in its 1)roduct life cycleand the market and competitive conditions it laces, drawing on Chapters 8, 9, and/or 10 as appro-priate. Identify the strategies key eolnpetitors are using, and develop a rationale for the strategy youhave chosen.
xix
Online LearningCenter
Favorite cases and supplementaryreadings selected by the authors can befound at www.mhhe.corrdwalker06.
Instructors ResourceCD-ROM
The instructor package provides everything anew or experienced marketing strategyinstructor needs to hit the ground running.
Instructors Manual
Contents include PowerPoint slides and Web-based instructor supp