Marketing
Chapter 1 – Marketing principles and practice...........................................14
1. Introduction.........................................................................................14
2. What is marketing?.............................................................................14
2.1 What is the difference between customers and consumers?.........15
2.2 Market orientation.........................................................................15
2.3 Marketing’s intellectual roots.........................................................16
2.4 Difference between sales and marketing......................................17
2.5 What do marketers do?..................................................................18
2.6 Marketing as exchange..................................................................19
2.7 The marketing mix and the 4P’s....................................................19
3. The extended marketing mix..............................................................20
3.1 Relationship marketing, service-dominant logic, and co-creation. 21
4. Marketing in context...........................................................................22
4.1 The consumer goods perspective..................................................22
4.2 The service perspective.................................................................23
4.3 The business-to-business perspective...........................................24
5. Marketing’s impact on society............................................................24
Chapter 2 – The marketing environment....................................................26
1. Introduction.........................................................................................26
2. Understanding the external environment...........................................26
2.1 The political environment..............................................................27
2.2 The economic environment...........................................................28
2.3 The sociocultural environment......................................................29
2.4 The technological environment.....................................................29
2.5 The legal environment...................................................................30
2.6 The ecological environment...........................................................31
3. Environmental scanning.....................................................................31
4. Understanding the performance environment....................................32
4.1 Analysing industries.......................................................................33
4.1.1 New entrants...........................................................................33
4.1.2 Substitutes..............................................................................34
4.1.3 Buyers.....................................................................................34
1
, 4.1.4 Suppliers.................................................................................35
4.1.5 Competitors.............................................................................35
4.1.5.1 Who are our competitors?.................................................35
4.1.5.2 What are their strengths and weaknesses?.......................36
4.1.5.3 What are their strategic goals?.........................................36
4.1.5.4 Which strategies are they following?.................................37
4.1.5.5 How are they likely to respond?........................................37
4.1.6 Suppliers and distributors.......................................................38
4.1.7 Challenging an industry..........................................................38
5. Understanding the internal environment............................................38
5.1 Portfolio analysis............................................................................39
5.1.1 Portfolio issues........................................................................39
6. Marketing audit...................................................................................40
7. Marketing performance metrics..........................................................40
Chapter 3 – Consumer buying behaviour...................................................42
1. Introduction.........................................................................................42
2. Consumer behaviour: between rationality, irrationality and hedonism
................................................................................................................42
3. Proposition acquisition........................................................................43
3.1 Motive development......................................................................43
3.2 Information gathering....................................................................44
3.3 Proposition evaluation...................................................................44
3.4 Proposition selection......................................................................45
3.5 Acquisition / purchase....................................................................45
3.6 Re-evaluation.................................................................................45
4. Perceptions, learning, and memory....................................................46
4.1 Perceptions....................................................................................47
4.2 Learning and memory....................................................................47
5. Personality..........................................................................................48
5.1 The trait approach........................................................................48
5.2 The self-concept approach.............................................................49
6. Motivation...........................................................................................49
6.1 Theory of planned behaviour.........................................................50
7. The importance of social contexts......................................................51
7.1 Opinions, attitudes, and values.....................................................51
7.2 Group influence.............................................................................51
7.3 Social grade...................................................................................52
2
, 7.4 Lifestyle.........................................................................................52
7.5 Life stage.......................................................................................53
7.6 Culture and ethnic groups.............................................................53
Chapter 4 – Business-to-business marketing.............................................55
1. Introduction.........................................................................................55
2. What is business-to-business marketing?...........................................55
3. The characteristics of business markets.............................................56
3.1 The nature of demand...................................................................56
3.2 The buying processes....................................................................56
3.3 International dimensions...............................................................57
3.4 Relationships.................................................................................57
4. Types of B2B customers, goods, and services....................................58
5. Organizational buying behaviour........................................................58
6. Decision- making units........................................................................59
6.1 The characteristics of decision-making units.................................59
6.2 The processes of decision-making units........................................60
6.2.1 New task..................................................................................60
6.2.2 Modified rebuy.........................................................................61
6.2.3 Straight rebuy.........................................................................61
6.3 Buyphases.....................................................................................61
6.3.1 Need / problem recognition.....................................................61
6.3.2 Product specification...............................................................62
6.3.3 Supplier and proposition search..............................................62
6.3.4 Evaluation of proposals...........................................................62
6.3.5 Supplier selection....................................................................63
6.3.6 Evaluation...............................................................................63
6.4 Buygrids.........................................................................................64
6.5 Purchasing in organizations...........................................................64
6.5.1 Customer sophistication..........................................................65
6.5.2 Increasing competition............................................................65
6.5.3 Digital technology...................................................................65
6.5.4 Branding..................................................................................66
6.5.5 Strategic issues.......................................................................66
7. Developing a customer portfolio matrix.............................................67
8. Key account management (KAM)........................................................67
8.1 Changes in the competitive environment......................................68
8.2 Changes in industry structure........................................................69
3
, 8.3 Key account relationship cycles.....................................................69
8.4 Managing key accounts.................................................................69
9. Corporate social responsibility............................................................70
10. Professional services marketing........................................................71
Chapter 5 – Services and relationship marketing.......................................72
1. Introduction.........................................................................................72
2. The unique characteristics of services................................................73
2.1 Intangibility....................................................................................73
2.2 Perishability...................................................................................73
2.3 Variability.......................................................................................74
2.4 Inseparability.................................................................................75
2.5 Lack of ownership..........................................................................75
3. Service processes...............................................................................76
4. Key dimensions of services marketing................................................76
5. Measuring service quality and performance.......................................77
6. Service failure and recovery...............................................................78
7. The principles of relationship marketing.............................................79
8. Loyalty and retention..........................................................................79
8.1 Relationship trust, commitment, and satisfaction.........................80
8.2 Customer satisfaction....................................................................81
8.3 Customer experiences...................................................................82
8.4 Experience quality.........................................................................83
8.5 Customer engagement..................................................................83
Chapter 6 – Marketing strategy..................................................................84
1. Introduction.........................................................................................84
2. The strategic context..........................................................................85
3. Strategic marketing planning..............................................................86
3.1 Defining mission, vision, and values..............................................86
4. Process and activities..........................................................................87
4.1 Strategic market analysis..............................................................87
4.1.1 SWOT analysis.........................................................................87
4.2 Strategic marketing goals..............................................................88
4.3 Strategic market action.................................................................89
4.3.1 Competitive advantage...........................................................90
4.3.2 Generic strategies...................................................................90
4.3.3 Competitive positioning..........................................................91
4.3.3.1 Competing.........................................................................91
4
Chapter 1 – Marketing principles and practice...........................................14
1. Introduction.........................................................................................14
2. What is marketing?.............................................................................14
2.1 What is the difference between customers and consumers?.........15
2.2 Market orientation.........................................................................15
2.3 Marketing’s intellectual roots.........................................................16
2.4 Difference between sales and marketing......................................17
2.5 What do marketers do?..................................................................18
2.6 Marketing as exchange..................................................................19
2.7 The marketing mix and the 4P’s....................................................19
3. The extended marketing mix..............................................................20
3.1 Relationship marketing, service-dominant logic, and co-creation. 21
4. Marketing in context...........................................................................22
4.1 The consumer goods perspective..................................................22
4.2 The service perspective.................................................................23
4.3 The business-to-business perspective...........................................24
5. Marketing’s impact on society............................................................24
Chapter 2 – The marketing environment....................................................26
1. Introduction.........................................................................................26
2. Understanding the external environment...........................................26
2.1 The political environment..............................................................27
2.2 The economic environment...........................................................28
2.3 The sociocultural environment......................................................29
2.4 The technological environment.....................................................29
2.5 The legal environment...................................................................30
2.6 The ecological environment...........................................................31
3. Environmental scanning.....................................................................31
4. Understanding the performance environment....................................32
4.1 Analysing industries.......................................................................33
4.1.1 New entrants...........................................................................33
4.1.2 Substitutes..............................................................................34
4.1.3 Buyers.....................................................................................34
1
, 4.1.4 Suppliers.................................................................................35
4.1.5 Competitors.............................................................................35
4.1.5.1 Who are our competitors?.................................................35
4.1.5.2 What are their strengths and weaknesses?.......................36
4.1.5.3 What are their strategic goals?.........................................36
4.1.5.4 Which strategies are they following?.................................37
4.1.5.5 How are they likely to respond?........................................37
4.1.6 Suppliers and distributors.......................................................38
4.1.7 Challenging an industry..........................................................38
5. Understanding the internal environment............................................38
5.1 Portfolio analysis............................................................................39
5.1.1 Portfolio issues........................................................................39
6. Marketing audit...................................................................................40
7. Marketing performance metrics..........................................................40
Chapter 3 – Consumer buying behaviour...................................................42
1. Introduction.........................................................................................42
2. Consumer behaviour: between rationality, irrationality and hedonism
................................................................................................................42
3. Proposition acquisition........................................................................43
3.1 Motive development......................................................................43
3.2 Information gathering....................................................................44
3.3 Proposition evaluation...................................................................44
3.4 Proposition selection......................................................................45
3.5 Acquisition / purchase....................................................................45
3.6 Re-evaluation.................................................................................45
4. Perceptions, learning, and memory....................................................46
4.1 Perceptions....................................................................................47
4.2 Learning and memory....................................................................47
5. Personality..........................................................................................48
5.1 The trait approach........................................................................48
5.2 The self-concept approach.............................................................49
6. Motivation...........................................................................................49
6.1 Theory of planned behaviour.........................................................50
7. The importance of social contexts......................................................51
7.1 Opinions, attitudes, and values.....................................................51
7.2 Group influence.............................................................................51
7.3 Social grade...................................................................................52
2
, 7.4 Lifestyle.........................................................................................52
7.5 Life stage.......................................................................................53
7.6 Culture and ethnic groups.............................................................53
Chapter 4 – Business-to-business marketing.............................................55
1. Introduction.........................................................................................55
2. What is business-to-business marketing?...........................................55
3. The characteristics of business markets.............................................56
3.1 The nature of demand...................................................................56
3.2 The buying processes....................................................................56
3.3 International dimensions...............................................................57
3.4 Relationships.................................................................................57
4. Types of B2B customers, goods, and services....................................58
5. Organizational buying behaviour........................................................58
6. Decision- making units........................................................................59
6.1 The characteristics of decision-making units.................................59
6.2 The processes of decision-making units........................................60
6.2.1 New task..................................................................................60
6.2.2 Modified rebuy.........................................................................61
6.2.3 Straight rebuy.........................................................................61
6.3 Buyphases.....................................................................................61
6.3.1 Need / problem recognition.....................................................61
6.3.2 Product specification...............................................................62
6.3.3 Supplier and proposition search..............................................62
6.3.4 Evaluation of proposals...........................................................62
6.3.5 Supplier selection....................................................................63
6.3.6 Evaluation...............................................................................63
6.4 Buygrids.........................................................................................64
6.5 Purchasing in organizations...........................................................64
6.5.1 Customer sophistication..........................................................65
6.5.2 Increasing competition............................................................65
6.5.3 Digital technology...................................................................65
6.5.4 Branding..................................................................................66
6.5.5 Strategic issues.......................................................................66
7. Developing a customer portfolio matrix.............................................67
8. Key account management (KAM)........................................................67
8.1 Changes in the competitive environment......................................68
8.2 Changes in industry structure........................................................69
3
, 8.3 Key account relationship cycles.....................................................69
8.4 Managing key accounts.................................................................69
9. Corporate social responsibility............................................................70
10. Professional services marketing........................................................71
Chapter 5 – Services and relationship marketing.......................................72
1. Introduction.........................................................................................72
2. The unique characteristics of services................................................73
2.1 Intangibility....................................................................................73
2.2 Perishability...................................................................................73
2.3 Variability.......................................................................................74
2.4 Inseparability.................................................................................75
2.5 Lack of ownership..........................................................................75
3. Service processes...............................................................................76
4. Key dimensions of services marketing................................................76
5. Measuring service quality and performance.......................................77
6. Service failure and recovery...............................................................78
7. The principles of relationship marketing.............................................79
8. Loyalty and retention..........................................................................79
8.1 Relationship trust, commitment, and satisfaction.........................80
8.2 Customer satisfaction....................................................................81
8.3 Customer experiences...................................................................82
8.4 Experience quality.........................................................................83
8.5 Customer engagement..................................................................83
Chapter 6 – Marketing strategy..................................................................84
1. Introduction.........................................................................................84
2. The strategic context..........................................................................85
3. Strategic marketing planning..............................................................86
3.1 Defining mission, vision, and values..............................................86
4. Process and activities..........................................................................87
4.1 Strategic market analysis..............................................................87
4.1.1 SWOT analysis.........................................................................87
4.2 Strategic marketing goals..............................................................88
4.3 Strategic market action.................................................................89
4.3.1 Competitive advantage...........................................................90
4.3.2 Generic strategies...................................................................90
4.3.3 Competitive positioning..........................................................91
4.3.3.1 Competing.........................................................................91
4
