Graham Hooley Nigel F.

Piercy Brigitte Nicoulaud

Financial Times
Prentice Hall
is an imprint of

Harlow, England London New York Boston San Francisco Toronto Sydney Singapore Hong Kong
Tokyo Seoul Taipei New Delhi Cape Town Madrid Mexico City Amsterdam Munich Paris Milan

CONTENTS

Preface
Acknowledgements
Publisher's acknowledgements

PART 2
COMPETITIVE MARKET
ANALYSIS
CHAPTER 3
THE CHANGING MARKET ENVIRONMENT

PART1
MARKETING STRATEGY
CHAPTER 1
MARKET-LED STRATEGIC MANAGEMENT
Puma gives the boot to cardboard shoeboxes .
4
Introduction
5
1.1 The marketing concept and market orientation 6
1.2 The resource-based view of marketing
12
14
1.3 Organisational stakeholders
1.4 Marketing fundamentals
19
1.5 The role of marketing in leading strategic
management
23
Summary
25
Case study: Consumer trust sees John Lewis
set retail pace
25

CHAPTER 2
STRATEGIC MARKETING PLANNING

27

Asos founder turns to online homeware

Introduction
2.1 Defining the business purpose or mission
2.2 The marketing strategy process
2.3 Establishing the core strategy
2.4 Creation of the competitive positioning
2.5 Implementation
Summary
Case study: iPhone

27
28
29
32

Recession-hit Aga trials green energy

Introduction
3.1 A framework for macro-environmental
analysis
.
3.2 The economic and political environment
3.3 The social and cultural environment
3.4 The technological environment
3.5 Changes in marketing infrastructure and
practices
3.6 New strategies for changing macroenvironments
3.7 The Five Forces model of industry
competition
3.8 The product life cycle
3.9 Strategic groups
3.10 Industry evolution and forecasting
3.11 Environmental stability
3.12 SPACE analysis
3.13 The Advantage Matrix
Summary
Case study: Food group shifts strategy to
volume growth

54
54
55
56
57
59
62
64
65
68
71
74
77
79
81
83
84
85

33

CHAPTER 4

42

C U S T O M E R ANALYSIS

87

Audi to relaunch A2 city model with 'apps' for

bespoke features
Introduction

87
88

45
49
49

viii

CONTENTS

4.1 What we need to know about customers

4.2 Marketing research
4.3 The marketing research process
4.4 Organising customer information
Summary
Case study: Balderton plugs into teenagers'
attention spans

91
99
101
103

COMPETITOR ANALYSIS

105

Gatwick seeks greater competition with BAA

Introduction
5.1 Competitive benchmarking
5.2 The dimensions of competitor analysis
5.3 Choosing good competitors
5.4 Obtaining and disseminating competitive
information
Summary
Case study: Football battle between Nike and
Adidas intensifies off pitch

105

Waterstone's links up with Paperchase

Introduction
6.1 Marketing resources as the foundation
for differentiation
6.2 Value-creating disciplines
6.3 The resource-based view of the firm
6.4 Creating and exploiting marketing assets
6.5 Developing marketing capabilities
6.6 Dynamic marketing capabilities
6.7 Resource portfolios
6.8 Developing and exploiting resources
Summary
Case study: Family tradition in domestic
partnership

CHAPTER 7
FORECASTING FUTURE DEMAND AND
MARKET REQUIREMENTS
Airbus talks of rise in demand
Introduction
7.1 Forecasting what?
7.2 Forecasts based on current demand
7.3 Forecasts based on past demand
7.4 Forecasting through experimentation
7.5 Forecasting through intentions and
expert opinion
Summary
Case study: Procter & Gamble raises market
growth forecast

IDENTIFYING CURRENT AND

FUTURE COMPETITIVE
POSITIONS

103

CHAPTER 5

CHAPTER 6
UNDERSTANDING THE ORGANISATIONAL
RESOURCE BASE
.-,

PART 3

106
107
108
121
123
126
127

129
129
130

131
132
134

CHAPTER 8
SEGMENTATION AND POSITIONING
PRINCIPLES
Jaeger targets younger shoppers
Introduction
8.1 Principles of competitive positioning
8.2 Principles of market segmentation
8.3 The underlying premises of market
segmentation
8.4 Bases for segmenting markets
8.5 Segmenting consumer markets
8.6 Segmenting business markets
8.7 Identifying and describing market
segments
8.8 The benefits of segmenting markets
8.9 Implementing market segmentation
Summary
Case study: Nestle refines its arsenal in the
luxury coffee war

CHAPTER 9
SEGMENTATION AND POSITIONING
RESEARCH

182
182
183
184
187
187
188
189
200
204
205
206
209
209

211

138
147
149
151
152
153

154

156
156
157

E-reader market cuts prices again

Introduction
9.1 A priori segmentation approaches
9.2 Post hoc/cluster-based segmentation
approaches
9.3 Qualitative approaches to positioning
research
9.4 Quantitative approaches to positioning
research
Summary
Case study: A passion that became a brand

211
212
213
217

224

226
234
235

CHAPTER 10
SELECTING MARKET TARGETS

238

169

The public image: Kodak

Introduction
10.1 The process of market definition

238
239
240

172

10.2 Defining how the market is segmented

10.3 Determining market segment attractiveness

242
244

10.4 Determining current and potential strengths

10.5 Making market and segment choices
10.6 Alternative targeting strategies

251
253
255

157
157
159

175
178

CONTENTS

Summary
Case study: B&O

257
258

CHAPTER 14
COMPETING THROUGH SUPERIOR
SERVICE AND CUSTOMER
RELATIONSHIPS

PART 4
COMPETITIVE POSITIONING
STRATEGIES
CHAPTER 11
CREATING SUSTAINABLE COMPETITIVE
ADVANTAGE
Droid takes on iPhone 4
Introduction
11.1 Using organisational resources to create
sustainable competitive advantage
11.2 Generic routes to competitive advantage
11.3 Achieving cost leadership
11.4 Achieving differentiation
11.5 Sustaining competitive advantage
11.6 Offensive and defensive competitive
strategies
Summary
Case study: Volvo's heart will 'remain in Sweden'

Summary
Case study: Gillette

262
262
263

263
265
265

The customer is more right than you know

Introduction
14.1 The goods and services spectrum
14.2 Service and competitive positioning
14.3 Relationship marketing
14.4 The three S's of customer service
14.5 Providing superior service
14.6 Customer relationship management
14.7 E-service quality
14.8 Measuring and monitoring customer
satisfaction
Summary
Case study: Pret a Manger

ix

350
350

352
352
354
355
357
360
364
365
368
369
371
375
375

269
277

278
290
290

PART 5
IMPLEMENTING THE
STRATEGY

CHAPTER 12
COMPETING THROUGH THE NEW
MARKETING MIX
Microsoft Office set to go free online
Introduction
12.1 The market offer
12.2 Pricing strategies
12.3 Communications strategies
12.4 Distribution strategies
12.5 The extended marketing mix - people,
processes and physical evidence
12.6 New businesses and business models
Summary
Case study: Tyrrells

292
292
293
294
304
308
314

315
317
319
320

CHAPTER 15
STRATEGIC CUSTOMER MANAGEMENT
Letting go can cut both ways
Introduction
15.1 Priorities for identifying strategic sales
capabilities
15.2 The new and emerging competitive role
for sales
15.3 The strategic sales organisation
15.4 Strategic customer management tasks
15.5 Managing the customer portfolio
15.6 Dealing with dominant customers
Summary
Case study: Xerox

383
384
385
386
389
392
398
400
402
412
413

CHAPTER 13
COMPETING THROUGH INNOVATION

323

Dyson to double numbers in UK

engineering team
Introduction
13.1 Innovation strategy
13.2 New products
13.3 Planning for new products
13.4 The new product development process
13.5 Speeding new product development
13.6 Organising new product development

CHAPTER 1 6
STRATEGIC ALLIANCES AND NETWORKS

416

323
324
325
335
338
340
346
347

Sony Ericsson on mission to gain

US share
Introduction
16.1 The era of strategic collaboration
16.2 The drivers of collaboration strategies 16.3 Types of network
16.4 Alliances and partnerships
16.5 Strategic alliances as a competitive force

416
417
421
422
425
428
431

CONTENTS

16.6 The risks in strategic alliances

16.7 Competing through strategic alliances
Summary
Case study: Yahoo and ebay

432
434
439
440

CHAPTER 17
STRATEGY I M P L E M E N T A T I O N A N D
INTERNAL M A R K E T I N G
GM backs away from drive to end
use of 'Chevy'
Introduction
17.1 The strategy implementation challenge in
marketing
17.2
17.3
17.4
17.5

442
442
443

447
449
458

17.6 Implementation and internal market scenarios

Summary
Case study: British Airways

466
468
469

Eco-friendly fabrics
Introduction
18.1 Marketing strategy and corporate social
responsibility
18.2 The scope of corporate social
responsibility and corporate citizenship
18.3 Drivers of corporate social responsibility
initiatives

481
485
490
494
498
499
500

445

The development of internal marketing

The scope of internal marketing
Planning for internal marketing
Cross-functional partnership as internal
marketing

CHAPTER 1 8
CORPORATE SOCIAL RESPONSIBILITY

18.4 The other side of corporate social

responsibility initiatives
18.5 Defensive corporate social responsibility
initiatives
18.6 Corporate social responsibility and
innovative competitive advantage
18.7 How companies are responding t o the
CSR mandate
18.8 CSR and customer value
Summary
Case study: Ballantyne, Smythson and others

PART 6
CONCLUSIONS

460

470
470
471
472

CHAPTER 19
TWENTY-FIRST CENTURY MARKETING

504

Hawang sets its e-reader sights high

Introduction
19.1 The changing competitive arena
19.2 Fundamentals of strategy in a changing
world
19.3 Competitive positioning strategies
Summary
Case study: Twitter builds on its character

504
505
505

References
Index

529
551

511
516
527
527

475
478