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Preface to the Second Edition ix
Overview of the Book's Structure xi
1 Introduction 1
1.1 Learning Objectives 1
1.2 The Nature of Marketing (or, 'Delivering Value and Winning Customer Preference') 1
1.3 The Management Process 6
1.4 Strategic Decisions and the Nature of Strategy 8
1.5 The Marketing/Strategy Interface 16
1.6 Summary 39
2 Strategic Marketing Planning and the Marketing Plan 41
2.1 Learning Objectives 41
2.2 Introduction 41
2.3 The Role of Strategic Marketing Planning 42
2.4 So What is Marketing Strategy? 49
2.5 The Three Dimensions of Planning 54
2.6 Summary 69
Stage 1 Where Are We Now? Strategic and Marketing Analysis 73
3 Marketing Auditing and the Analysis of Capability 77
3.1 Learning Objectives 77
3.2 Introduction 77
3.3 Reviewing Marketing Effectiveness 84
3.4 The Role of SWOT Analysis 85
3.5 Competitive Advantage and the Value Chain 102
3.6 Conducting Effective Audits 104
3.7 Summary 109
4 Segmental, Productivity and Ratio Analysis 111
4.1 Learning Objectives 111
4.2 Introduction 111
4.3 The Clarification of Cost Categories 113
4.4 Marketing Cost Analysis: Aims and Methods 114
4.5 An Illustration of Segmental Analysis 119
4.6 An Alternative Approach to Segmental Analysis 121
4.7 Customer Profitability Analysis 121
4.8 Marketing Experimentation 135
4.9 The Nature of Productivity 136
4.10 The Use of Ratios 138
4.11 Analysing Ratios and Trends 142
4.12 Ratios and Interfirm Comparison 144
4.13 A Strategic Approach 147
4.14 Summary 150
5 Market and Environmental Analysis 153
5.1 Learning Objectives 153
5.2 Introduction 153
5.3 Analysing the Environment 155
5.4 The Nature of theMarketing Environment 161
5.5 The Evolution of Environmental Analysis 167
5.6 The Political, Economic, Social and Technological Environments 170
5.7 Coming to Terms with Industry and Market Breakpoints 178
5.8 Coming to Terms with the Very Different Future: The Implications for Marketing Planning 182
5.9 Approaches to Environmental Analysis and Scanning 189
5.10 Summary 194
6 Approaches to Customer Analysis 197
6.1 Learning Objectives 197
6.2 Introduction 197
6.3 Coming to Terms with Buyer Behaviour 198
6.4 Factors Influencing Consumer Behaviour 202
6.5 The Buying Decision Process 211
6.6 The Rise of the New Consumer and the Implications for Marketing Planning 217
6.7 Organizational Buying Behaviour 221
6.8 The Growth of Relationship Marketing 229
6.9 Summary 243
Appendix: The Drivers of Consumer Change 244
7 Approaches to Competitor Analysis 251
7.1 Learning Objectives 251
7.2 Introduction 251
7.3 Against Whom Are We Competing? 259
7.4 Identifying and Evaluating Competitors' Strengths and Weaknesses 265
7.5 Evaluating Competitive Relationships and Analysing How Organizations Compete 271
7.6 Identifying Competitors' Objectives 276
7.7 Identifying Competitors' Likely Response Profiles 277
7.8 Competitor Analysis and the Development of Strategy 279
7.9 The Competitive Intelligence System 280
7.10 The Development of a Competitive Stance: The Potential for Ethical Conflict 284
7.11 Summary 289
Stage 2 Where do We Want to Be? Strategic Direction and Strategy Formulation 293
8 Missions and Objectives 297
8.1 Learning Objectives 297
8.2 Introduction 297
8.3 The Purpose of Planning 300
8.4 Establishing the Corporate Mission 303
8.5 Influences on Objectives and Strategy 316
8.6 Guidelines for Establishing Objectives and Setting Goals and Targets 317
8.7 The Development of Strategies 332
8.8 Summary 336
9 Market Segmentation, Targeting and Positioning 339
9.1 Learning Objectives 339
9.2 Introduction 339
9.3 The Nature and Purpose of Segmentation 341
9.4 Approaches to Segmenting Markets 344
9.5 Factors Affecting the Feasibility of Segmentation 346
9.6 Approaches to Segmentation 347
9.7 The Bases for Segmentation 348
9.8 Geographic and Geodemographic Techniques 349
9.9 Demographic Segmentation 352
9.10 Behavioural Segmentation 357
9.11 Psychographic and Lifestyle Segmentation 361
9.12 Approaches to Segmenting Industrial Markets 365
9.13 Market Targeting 367
9.14 Deciding on the Breadth of Market Coverage 369
9.15 Product Positioning: The Battle for the Mind 372
9.16 Summary 377
10 The Formulation of Strategy 1: Analysing the Product Portfolio 379
10.1 Learning Objectives 379
10.2 Introduction 379
10.3 The Development of Strategic Perspectives 379
10.4 Models of Portfolio Analysis 384
10.5 Market Attractiveness and Business Position Assessment 392
10.6 Criticisms of Portfolio Analysis 398
10.7 Summary 401
11 The Formulation of Strategy 2: Generic Strategies and the Significance of Competitive Advantage 403
11.1 Learning Objectives 403
11.2 Introduction 403
11.3 Types of Strategy 404
11.4 Porter's Three Generic Competitive Strategies 407
11.5 Competitive Advantage and Its Pivotal Role in Strategic Marketing Planning 413
11.6 Summary 453
12 The Formulation of Strategy 3: Strategies for Leaders, Followers, Challengers and Nichers 455
12.1 Learning Objectives 455
12.2 Introduction 455
12.3 The Influence of Market Position on Strategy 455
12.4 Strategies for Market Leaders 457
12.5 Marketing Strategy and Military Analogies: Lessons for Market Leaders 468
12.6 Strategies for Market Challengers 483
12.7 Strategies for Market Followers 495
12.8 Strategies for Market Nichers 497
12.9 Military Analogies and Competitive Strategy: A Brief Summary 498
12.10 The Inevitability of Strategic Wear-out (or, The Law of Marketing Gravity and Why Dead Cats Only Bounce Once) 506
12.11 The Influence of Product Evolution and the Product Life Cycle on Strategy 510
12.12 Summary 518
Bibliography 519
Index 537
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