Marketing Concepts and Strategies, Eighth Edition
By Sally Dibb, Lyndon Simkin, William M. Pride and O.C. Ferrell
Contents
NOTE: Each chapter contains a summary, key links to other parts of the book, a list of important terms, discussion and review questions, recommended readings, a web task, group tasks and an applied mini-case.
Preface x
Acknowledgements xi
About the authors xii
Credits xiv
Part One
Marketing defined and marketing in context 1
1 The marketing concept 4
Your meals on wheels 5
Marketing explained and defined 6
The definitions of marketing explored 11
The marketing process 14
The importance of marketing 15
Topical insight Ireland: marketing a country 17
The marketing concept and its evolution 18
Topical insight An alternative view of the scope for marketing: social marketing 22
The essentials of marketing 23
The organization of this book 31
Case study Sweden’s IKEA marches on 36
2 Marketing strategy and understanding competitors 38
Driverless vehicles are coming this way 39
Marketing strategy defined 40
Organizational mission, goals and corporate strategy 45
Organizational opportunities and resources 47
Strategic objectives and strategic focus 50
Marketing tools and techniques Practitioners’ use of SWOT Analysis 52
Target market strategy and brand positioning 54
Competitive advantage 55
Competitive positions and differential advantage 56
Marketing tools and techniques Practitioners’ use of competitor intelligence: the Dibb/ Simkin competitive positions
proforma 62
Marketing objectives 65
Marketing mix decisions 65
Implementation and performance monitoring 66
Case study St Andrew’s Healthcare: a charity’s marketing strategy 71
3 T he marketing environment 73
Regulatory influence: the EU single market 74
Examining and responding to the marketing environment 75
Marketing tools and techniques Practitioners’ assessment of the macro marketing environment 76
Political forces 79
Legal forces 80
Regulatory forces 81
Societal forces 83
Technological forces 85
Topical insight Brands and consumers embrace Fairtrade 86
Economic and competitive forces 90
The micro marketing environment 96
The marketing environment and strategic opportunities 99
Case study The world of rice: external challenges for Tilda’s marketers 106
4 Marketing in international markets and globalization 108
Global growth by acting locally 109
Involvement in international marketing 110
International marketing intelligence 113
Environmental forces in international markets 114
Building customer relationships A crosscultural comparison of colour and international branding 115
Regional trade alliances and markets 120
Alternative market entry strategies 123
Topical insight Much more than understanding customers’ behaviours and culture 126
Customization versus the globalization of international marketing strategies 127
Case study Carrefour’s ‘G4’ and international growth strategy 132
Part one postscript 134
Strategic case Understanding and managing fast-changing markets: creating a marketing strategy 135
Part Two
Understanding and targeting customers 139
5 Consumer buying behaviour 142
Raleigh cycles to stay in touch with consumers 143
Types of consumer buying behaviour 143
Topical insight Point-of-sale moves into the changing room 145
The consumer buying decision process 145
Personal factors influencing the buying decision process 150
Psychological factors influencing the buying decision process 152
Social factors influencing the buying decision process 159
The impact of new thinking and new technologies 163
Building customer relationships Teenage trends, Twilight and the power of reference groups 165
Understanding consumer behaviour 166
Case study Crayola: colouring in the 21st century 171
6 Business markets and business
buying behaviour 173
Shaping tomorrow with you 174
Types of business market 175
Dimensions of business buying 177
Business buying decisions 184
Marketing tools and techniques Practitioners’ use of the buying behaviour theory: the Dibb/Simkin buying proforma
186
Selection and analysis of business markets 192
Topical insight Insurance brokers reflect influences on clients’ decision-making 193
Marketing’s variations in business markets 197
Case study Nynas: in the black and leading 202
7 S egmenting markets 204
Rice . . . not all grains seem the same 205
What are markets? 206
What is market segmentation? 207
Segmenting, targeting and positioning 210
Segmentation variables 211
Topical insight Targeting fashion 214
Building customer relationships Profiling and targeting customers with ACORN 220
Segmentation effectiveness 225
Customer relationship management (crm) and retention 226
Case Study Marriott: getting down to business with business travellers 231
8 Targeting and positioning 233
Targeting strategies for business schools 234
Segmentation targeting strategies 235
Target market attractiveness and opportunity selection 240
Building customer relationships Innocent goes mumsy 241
Evaluating markets and forecasting sales 246
Marketing programmes 247
Positioning 247
Marketing tools and techniques Practitioners’ use of brand positioning theory 250
Case study Iams understands people who love pets 257
9 Marketing research 259
Mobile devices generate rich consumer insights 260
The importance of marketing research 261
Marketing tools and techniques Citizen summits give people a voice 263
The marketing research process 264
Step 1: locating and defining problems or research issues 265
Step 2: designing the research 265
Step 3: collecting data 267
Marketing tools and techniques The intrigues of ‘ mystery shopper’ research programmes 278
Step 4: analyzing and interpreting research findings 280
Step 5: reporting research findings 281
Using technology to improve marketing information gathering and analysis 281
The importance of ethical marketing research 284
Case study Focus group interviewing: in-depth views from group discussions 289
Part two postscript 291
Strategic case Youngsters spend more time online than viewing television 293
Part Three
Marketing programmes – products and services, brands, place and channels, promotion and marketing
communications, digital and pricing 295
10 Product decisions 299
Innocent product development 300
What is a product? 301
Product life cycles 307
Topical insight Great things can happen when you sacrifice a cigarette 309
Why some products fail and others succeed 310
Building customer relationships Upgrading service for competitive advantage 312
Case study Heineken’s portfolio of brands 316
11 Branding and packaging 318
Polos: are you a sucker? Or are you a cruncher? 319
Branding 320
Brand personality, values and attributes 325
Marketing tools and techniques Practitioners’ use of the brand development theory: the brand personality grid 326
Marketing tools and techniques Who thought of that name?! 331
Packaging and labelling 336
Case study Rebranding Macmillan 346
12 D eveloping products and managing product portfolios 348
Virgin Money: a haven on the high street 349
Organizing to manage products 350
New product development 351
Product adoption process 356
Product life cycle management 358
Topical insight Telebanking, tv banking, ebanking, texting and now banking apps: what next? 360
Tools for managing product portfolios 363
Marketing tools and techniques Practitioners’ use of the directional policy matrix (dpm) 367
Case study Sellotape or adhesive tape? Increasing market penetration – a classic tale 374
13 T he marketing of services 376
Marketing a solution to today’s stresses 377
The nature and importance of services 378
Classification of services 382
Developing marketing strategies for services 383
Service quality 386
Building customer relationships Providing pet services for nations of dog lovers 387
Building customer relationships People’s performance is inconsistent . . . Good lecture? 389
Non-profit marketing 391
Case study Marketing for charities 401
14 Marketing channels 403
BA’s focus on e-channels and digital 404
The nature of marketing channels and supply chain management 405
9 Marketing research 259
Mobile devices generate rich consumer insights 260
The importance of marketing research 261
Marketing tools and techniques Citizen summits give people a voice 263
The marketing research process 264
Step 1: locating and defining problems or research issues 265
Step 2: designing the research 265
Step 3: collecting data 267
Marketing tools and techniques The intrigues of ‘ mystery shopper’ research programmes 278
Step 4: analyzing and interpreting research findings 280
Step 5: reporting research findings 281
Using technology to improve marketing
information gathering and analysis 281
The importance of ethical marketing research 284
Case study Focus group interviewing: in-depth views from group discussions 289
Part two postscript 291
Strategic case Youngsters spend more time online than viewing television 293
Part Three
Marketing programmes – products and services, brands, place and channels, promotion and marketing
communications, digital and pricing 295
10 Product decisions 299
Innocent product development 300
What is a product? 301
Product life cycles 307
Topical insight Great things can happen when you sacrifice a cigarette 309
Why some products fail and others succeed 310
Building customer relationships Upgrading service for competitive advantage 312
Case study Heineken’s portfolio of brands 316
11 Branding and packaging 318
Polos: are you a sucker? Or are you acruncher? 319
Branding 320
Brand personality, values and attributes 325
Marketing tools and techniques Practitioners’ use of the brand development theory: the brand personality grid 326
Marketing tools and techniques Who thought of that name?! 331
Packaging and labelling 336
Case study Rebranding Macmillan 346
12 D eveloping products and managing product portfolios 348
Virgin Money: a haven on the high street 349
Organizing to manage products 350
New product development 351
Product adoption process 356
Product life cycle management 358
Topical insight Telebanking, tv banking, ebanking, texting and now banking apps: what next? 360
Tools for managing product portfolios 363
Marketing tools and techniques Practitioners’ use of the directional policy matrix (dpm) 367
Case study Sellotape or adhesive tape? Increasing market penetration – a classic tale 374
13 T he marketing of services 376
Marketing a solution to today’s stresses 377
The nature and importance of services 378
Classification of services 382
Developing marketing strategies for services 383
Service quality 386
Building customer relationships Providing pet services for nations of dog lovers 387
Building customer relationships People’s performance is inconsistent . . . Good lecture? 389
Non-profit marketing 391
Case study Marketing for charities 401
14 Marketing channels 403
BA’s focus on e-channels and digital 404
The nature of marketing channels and supply chain management 405
Functions of marketing channels 407
Building customer relationships Tesco’s multi-channel approach to market leadership 410
Types of channel 411
Channel integration 414
Different levels of market coverage 416
Choosing distribution channels 418
Building customer relationships A mutli-channel strategy for retailer John Lewis 419
Behaviour of channel members 421
Legal issues in channel management 424
Case study first direct’s innovative banking channels 428
15 C hannel players and physical distribution 430
Multi-channel changes the rules 431
The nature and importance of wholesaling 432
The activities of wholesalers 432
Classifying wholesalers 434
Building customer relationships Coca-Cola seeks more control over distribution channels 441
Facilitating agencies 441
Retailing 444
Innovation and change Retail technology innovations changing customer experiences 448
Physical distribution 450
Case study Today’s cash and carry megadepots depend on effective stockholding and physical distribution 465
16 A n overview of marketing communications 466
Making children safer 467
The role of promotion 468
The communication process 470
Promotion and the product adoption process 473
Aims of promotion 475
The promotional mix 477
Topical insight A web presence: now routine behaviour 478
Topical insight Facebook can be a marketer’s best friend and her worst enemy 483
Case study Häagen-Dazs: everyday made extraordinary 493
17 Advertising, public relations and sponsorship 494
Cancer—advertising helps fight the early signs of cancer 495
The nature of advertising 496
Innovation and change First ambient and now ‘live’ advertising 496
The uses of advertising 498
Developing an advertising campaign 503
Who develops the advertising campaign? 514
Publicity and public relations 515
Innovation and change Blogs and tweets in PR 519
Sponsorship 522
Case study Textbook pr and a classic tale: public relations and the Perrier crisis 527
18 S ales management, sales promotion, direct mail, direct marketing and the web 529
Sampling nappies: parents’ early exposure to Pampers 530
The nature of personal selling and sales management 531
Building customer relationships face-to-face Not everything is possible digitally 533
Elements of the personal selling process 534
Innovation and change eCommerce sales promotion 536
Types of sales people 537
Management of the salesforce 537
Key account management 544
Sales promotion 544
Sales promotion methods 546
Direct mail 552
The internet and digital marketing 555
Digital marketing, mobile and social media 557
Direct marketing 558
Case study A marketing classic – promoting free flights and how Hoover came unstuck 565
19 Digital marketing 567
Following the shopper across channels 568
Digital marketing 569
Topical insight Changing behaviours in a connected world 570
Changing consumer behaviour 570
Applying digital marketing 571
Social media strategy 574
Mobile marketing 576
Innovation and change Big data insights 577
Big data and analytics 578
Managing multiple channels 580
Case study Digital and university choices 584
20 Pricing 585
What price for a great day out? 586
The characteristics and role of price 587
Price and non-price competition 588
Factors affecting pricing decisions 590
Pricing for business markets 596
Marketing tools and techniques Business-tobusiness pricing using evc analysis 599
Stages for establishing prices 600
Topical insight The rise of the price comparison website 609
Case study Order just about anything from Amazon at a reasonable price 617
21 Modifying the marketing mix for business markets, services and in international marketing 619
Global brands 620
Characteristics of business marketing mixes 620
Amending the marketing mix for services 629
Marketing tools and techniques Delivering executive training and change management consultancy 631
Topical insight Targeting self-centred teenagers 635
Strategic adaptation of marketing mixes for international markets 638
Case study Tata’s Nano evolving to an electricvehicle (ev)? 648
Part three postscript 650
Strategic case How to launch a vision? 653
Part Four Marketing Management 655
22 Marketing planning and forecasting sales potential 657
Planning for growth 658
Marketing planning 659
Marketing tools and techniques Jcb’s adoption of marketing planning 668
Market and sales potential and sales forecasting 669
Topical insight Harley rides into India 673
The marketing audit 676
Case study Dell has to plan for a new future 684
23 Implementing strategies, internal marketing relationships and measuring performance 686
‘I’m lovin’ it’: McDonald’s keeps tight control 687
Organizing marketing activities 688
Marketing implementation 695
Marketing tools and techniques Practitioners’ implementation management of marketing planning: the Dibb/Simkin
checklists 700
Concepts related to marketing implementation 702
Controlling marketing activities 707
Marketing tools and techniques The Dibb/ Simkin implementation audit as applied to a b2b company 710
Methods of evaluating performance 712
Case study Timex stands the test of time 722
24 R esponsible marketing 724
Responsible marketing approaches challenge the rise in fast fashion 725
Social responsibility 726
Topical insight Tax shaming damages reputation 727
Marketing ethics 733
Topical insight Charity gap uses behaviour change to promote sustainable living 735
Incorporating social responsibility and ethics into marketing decisions 742
Social marketing 744
Current hot topics in the marketing discipline 746
Case study Recession piles on the pressure 750
Part four postscript 752
Strategic case Ethical concerns, cultural clashes and regulatory pressures: what next for Coca-Cola? 753
Notes 755
Glossary 776
Index 801