PERFORMANCE EXCELLENCE IN MARKETING, SALES AND PRICING : leveraging change, lean and innovation... management

The increasing interconnection and the unlimited exchange of data and information has led to a maximized transparency of globally offered and sold products and services. The desires, needs and wants of the consumer are the critical issues today in creating new or offering existing products and services. This book outlines successful marketing and sales strategies with a clear focus on practical relevance. It provides a systematic overview and description of selling, pricing and negotiation concepts which enable the reader to apply the best-case scenario in their company. Tools such as the marketing mix or marketing strategies are well explained for practical application in industry. The book also integrates elements of change, lean and innovation management as drivers for performance excellence. Featuring industry case studies, this book is a practical guide for marketing professionals, academics and policy makers to enable enterprises to achieve long-term competitive advantages through best-in-class marketing, sales and pricing activities. Preface Contents List of Figures List of Tables About the Author Acronyms and Abbreviations 1: Marketing, Sales and Pricing: Introduction 1.1 Definition of Marketing and Sales Management 1.1.1 Early Developments of Marketing 1.1.2 Needs and Demands as the Trigger for Marketing 1.1.3 Integrated Marketing Concepts (IMC) 1.2 Sales Management 1.3 Pricing Management 1.4 Differences Between Marketing and Sales 1.4.1 Introduction to the Differences of Marketing and Sales 1.4.2 Process of Marketing and Sales 1.4.3 Goals of Marketing and Sales 1.4.4 Tools and Resources of Marketing and Sales 1.5 Case Study: Marketing and Sales Strategy of Louis Vuitton 1.5.1 Introduction to Louis Vuitton 1.5.2 Marketing Mix of Louis Vuitton 1.5.3 Product Strategy of Louis Vuitton 1.5.4 Distribution and Pricing of Louis Vuitton 1.5.5 Promotion and Advertising Louis Vuitton References 2: Marketing Management as Part of the Corporate Strategy 2.1 Levels of Strategy 2.1.1 Corporate Strategy 2.1.2 Business Strategy 2.1.3 Functional Strategy 2.1.4 Alignment of Strategies 2.2 Strategic Triangle 2.3 Strategic Analysis 2.3.1 Analysing Important Factors 2.3.2 Analysing the Environment 2.3.3 Analysing the Industry 2.3.4 Analysing the Strengths and Weaknesses 2.3.5 Analysing the Core Competencies 2.4 Strategic Choice 2.4.1 Generic Strategies 2.4.2 Boston Consulting Matrix (BCG-Matrix) 2.4.3 Ansoff Matrix 2.4.4 Blue and Red Ocean Strategies 2.5 Strategic Implementation 2.5.1 Assessment of Suitability, Acceptability and Feasibility 2.5.2 Suitability 2.5.3 Acceptability 2.5.4 Feasibility 2.6 Strategic Pyramid 2.6.1 Mission and Vision 2.6.2 Goals and Objectives 2.6.3 Core Competencies 2.6.4 Strategies 2.6.5 Strategic Architecture 2.6.6 Control and Execution 2.7 Core Values 2.7.1 Strategies Must Focus on Value Creation 2.8 Case Study: McDonald’s Marketing Strategy 2.8.1 Global Player 2.8.2 Brand Awareness 2.8.3 Multi-method Advertising References 3: Marketing Concepts 3.1 Marketing Concepts 3.2 Production-Oriented Marketing Concept 3.3 Product-Related Marketing Concept 3.4 Sales-Oriented Marketing Concept 3.5 Marketing-Oriented Marketing Concept 3.6 Social Marketing-Oriented Marketing Concept 3.7 Case Study: PepsiCo’s Product-Oriented Marketing 3.7.1 Introduction to PepsiCo 3.7.2 Positioning and Segmentation 3.7.3 Investments in Marketing 3.7.4 Product Innovations References 4: B2B and B2C Marketing 4.1 B2B and BC2 Marketing 4.1.1 B2B Marketing 4.1.2 B2C Marketing 4.1.3 C2B Marketing 4.1.4 C2C Marketing 4.1.5 Differences in B2B and B2C Marketing 4.2 Case Study: Telekom B2B Service References 5: Sales Management 5.1 Definition of Sales Management 5.2 Sales Management Process 5.2.1 Introduction to the Sales Management Process 5.3 Sales Strategy 5.4 Sales Operations 5.5 Sales Organization 5.6 Sales Technology 5.7 Sales Incentives 5.8 Sales Performance 5.9 Benefits of Structured Sales Management 5.10 Sales Funnel 5.10.1 Purpose of the Sales Funnel 5.10.2 Awareness 5.10.3 Interest 5.10.4 Consideration 5.10.5 Intent 5.10.6 Evaluation 5.10.7 Purchase 5.11 Case Study: Marketing and Sales Strategy in Porsche 5.11.1 Introduction of Porsche 5.11.2 Porsche Marketing Mix 5.11.3 Porsche Marketing Strategy References 6: Economic Pricing, 3C-Pricing and Cost-Estimation Concepts 6.1 Economic Pricing Model 6.1.1 Introduction: Supply and Demand 6.1.2 Understanding Supply and Demand 6.1.3 Demand 6.1.4 Supply 6.1.5 Supply and Demand Curves 6.1.6 Shifts Versus Movements 6.1.7 Equilibrium Price 6.1.8 Impacts on Supply and Demand 6.2 3C Pricing Model 6.2.1 Introduction to the 3C Pricing Model 6.2.2 Customer 6.2.3 Competitors 6.2.4 Costs 6.3 Cost-Plus Pricing 6.4 Cost Estimation 6.5 Case Study: Product Strategy and Premium Pricing of Mercedes 6.5.1 Product Strategy of Mercedes 6.5.2 Premium Pricing of Mercedes References 7: Value-Based and Cost-Based Pricing Concepts 7.1 Value-Based Pricing 7.1.1 Definition of Value-Based Pricing 7.1.2 Characteristics of Value-Based Pricing 7.1.3 Examples of Value-Based Pricing 7.2 Cos-Based Pricing 7.2.1 Definition of Cost-Based Pricing 7.2.2 Advantages of Cost-Based Pricing 7.2.3 Drawbacks of Cost-Based Pricing 7.3 Cost-Based Versus Value-Based Pricing 7.4 Case Study: H&M’s Value Proposition Strategy References 8: Service Marketing and Service Sales Management 8.1 Importance of Service Sector 8.2 Service Marketing and Sales 8.3 Characteristics of Services 8.3.1 Characteristics of Services 8.3.2 Intangibility 8.3.3 Perishability 8.3.4 Inseparability 8.3.5 Heterogeneity 8.3.6 Lack of Ownership 8.3.7 Variability 8.3.8 Difficulty to Measure Quality of Services 8.4 Marketing and Sales Strategies for Services 8.4.1 Understanding the Customers’ Needs 8.4.2 Applying a Service-Based Strategy 8.4.3 Value Creation 8.4.4 Make Services Tangible 8.4.5 Establish a Brand Loyalty 8.4.6 Personalize Services 8.4.7 Set Up a Relationship 8.5 Lean as a Revenue Driver in the Service Industry 8.6 Case Study: McDonald’s Lean Kitchen Area References 9: Marketing Mix 9.1 Introduction to the Marketing Mix 9.2 Marketing Mix: The 7Ps 9.2.1 Introduction to the 7Ps 9.2.2 Product 9.2.3 Price 9.2.4 Place 9.2.5 Promotion 9.2.6 People 9.2.7 Process 9.2.8 Physical Evidence 9.2.9 Planet (8Ps) 9.3 Case Study: Marketing Mix at McDonald’s 9.3.1 Marketing Strategy at McDonald’s 9.3.2 Marketing Mix (7Ps) at McDonald’s References 10: Market Segmentation, Targeting, Differentiation and Positioning 10.1 Value Proposition 10.2 Market Segmentation 10.2.1 Definition of Market Segmentation 10.2.2 Geographic Segmentation 10.2.3 Demographic Segmentation 10.2.4 Psychographic Segmentation 10.2.5 Behavioural Segmentation 10.3 Other Segmentation Concepts 10.3.1 Attitudinal Segmentation 10.3.2 Generational Segmentation 10.4 Targeting 10.5 Positioning 10.6 Differentiation 10.6.1 Definition of Differentiation 10.6.2 Product Differentiation 10.6.3 Service Differentiation 10.6.4 Channel of Differentiation 10.6.5 People Differentiation 10.6.6 Image Differentiation 10.6.7 Ethics Differentiation 10.7 Case Study: Image Differentiation of Hennessy Cognac References 11: Direct and Indirect Marketing, Sales Promotion and Public Relations 11.1 Promotion Tools and Concepts (Fig. 11.1) 11.2 Direct and Indirect Marketing 11.2.1 Direct Marketing 11.2.2 Advantages of Direct Marketing 11.2.3 Disadvantages of Direct Marketing 11.2.4 Indirect Marketing 11.2.5 Advantages of Indirect Marketing 11.2.6 Disadvantages of Indirect Marketing 11.3 Sales Promotion 11.4 Public Relations 11.5 Case Study: Public Relations in Siemens Reference 12: Selling Concepts 12.1 Selling Concepts 12.1.1 Introduction to Selling Concepts 12.1.2 Characteristics of Selling Concepts 12.2 Social Selling 12.2.1 Introduction to Social Selling 12.2.2 Establishing a Personal Brand 12.2.3 Finding the Right People 12.2.4 Dealing with Knowledge 12.2.5 Building Relationships 12.3 Cross-Selling 12.4 Upselling 12.5 Deep Selling 12.6 Consultative Selling 12.7 Virtual Selling 12.8 Visual Selling 12.9 Case Study: Activities in Amazon to Boost Cross-Selling Activities References 13: Pricing Strategies and Discount Policy 13.1 Introduction to Pricing Strategies 13.2 Price and Value Considerations 13.3 Pricing Strategies and Concepts 13.3.1 Introduction and Definition of Pricing Strategies 13.3.2 Value-Based Pricing 13.3.3 Cost-Based Pricing 13.3.4 Break-Even Pricing 13.3.5 Dynamic Pricing 13.3.6 Loss Leader-Based Pricing 13.3.7 Competition-Based Pricing 13.3.8 Premium-Based Pricing 13.3.9 Target Pricing 13.3.10 Everyday Low Pricing (EDLP) 13.3.11 Good Value Pricing 13.3.12 Freemium Pricing 13.3.13 Seasonal Pricing 13.3.14 Penetration Pricing 13.3.15 Skimming Pricing 13.3.16 Price Bundling 13.3.17 High-Low Pricing 13.3.18 Markup Pricing 13.4 Important Aspects to Pricing 13.5 Discount Policy 13.6 Case Study: Pricing Strategy in Starbucks 13.6.1 Premium Pricing 13.6.2 Menu at Starbucks 13.6.3 Starbucks’ Branding Strategy 13.6.4 Starbuck’s Promotion Strategy References 14: Sales Channels and Sales Partners 14.1 Introduction to Sales Channels 14.2 Sales Channels 14.2.1 Zero Levels Channels: Producer-Consumer 14.2.2 One Level Channels: Producer-Retailer-Consumer 14.2.3 Two Level Channels: Producer-Wholesaler- Retailer-Consumer 14.2.4 Three Level Channels: Producer-Agent-Wholesaler- Retailer-Consumer 14.3 Direct Sales Channels 14.4 Channel Sales and Indirect Sales Channels 14.5 Indirect Sales Channels 14.6 Case Study: Direct and Indirect Sales Channels at Apple References 15: Innovation Management and New Product Launches 15.1 Introduction to Innovation Management 15.2 Technical Relevance and Attractivity 15.3 Strategic Relevance of Innovation Management 15.4 Resource Intensity 15.5 Future Potential of Innovations 15.6 Fields and Tasks of Innovation Management 15.7 Product Launches 15.8 Product Launch Roadmap and Process 15.8.1 Roadmap 15.8.2 Data Gathering and Analysis 15.8.3 Milestones and Timing 15.8.4 Implementation and Introduction 15.9 Case Study: Digital Innovation in a Bakery in Tokyo References 16: International Marketing and Sales 16.1 Market Entry Strategies with High and Low Investments 16.2 International Marketing and Sales Strategies 16.2.1 International Sales Entry Concepts 16.2.2 Direct and Indirect Exporting 16.2.3 Licensing 16.2.4 Franchising 16.2.5 Branches and Sales Offices as Own Subsidiary 16.2.6 Joint Venture 16.2.7 Own Subsidiary 16.3 Strategic Alliances and Partnering 16.4 Turnkey Projects 16.5 Glocalization Strategies 16.6 Case Study: Glocal Strategy of Persil References 17: Market Research 17.1 Market Research Process 17.2 Market Research Methodologies 17.3 Primary Research 17.3.1 Surveys 17.3.2 Questionnaires 17.3.3 Phone Interviews 17.3.4 Focus Groups 17.3.5 In-Depth or Depth Interviews 17.3.6 Observations 17.4 Secondary Research 17.5 Case Study: Market Research Toyota Prius in North America References 18: Supply Chain Management and Distribution Channels 18.1 Upstream and Downstream Supply Chain Management (SCM) 18.2 Globalization and Global Supply Networks 18.3 Risks in the Supply Chain 18.4 Supply Risk Prevention and Mitigation 18.5 Method of Global Risk Evaluation 18.6 Fair Trade 18.7 Glocal Supply Chains 18.8 Incoterms 2020 18.9 Distribution Channels 18.9.1 Sales and Physical Distribution Channels (Fig. 18.7) 18.9.2 Channel Members Adding Value (Fig. 18.8) 18.10 Case Study: Lidl’s Glocal Supply and Distribution Strategy 18.10.1 Lidl’s Glocal Supply Strategy 18.10.2 Glocal Distribution Through Network References 19: Promotion and Advertising Strategies 19.1 Introduction to Promotion and Advertising 19.2 Promotion 19.2.1 Objectives of Promotion 19.2.2 Promotions in a Physical Environment 19.2.3 Promotions in Media 19.2.4 Promotions in Digital Media 19.2.5 Promotions through Sponsoring 19.3 Advertising Tools 19.3.1 Print Advertising 19.3.1.1 Periodical Advertising 19.3.1.2 Brochures, Leaflets, Flyers, Handouts and Point-of-Sale Advertising 19.3.1.3 Direct Mail Advertising 19.3.2 Digital Ads 19.3.2.1 Google Ads 19.3.2.2 LinkedIn Advertising 19.3.3 Telephone Advertising 19.3.4 Product Placement Advertising 19.3.5 Guerilla Advertising 19.3.6 Broadcast Advertising 19.3.7 Outdoor Advertising 19.3.8 Public Service Advertising 19.4 Case Study: Promotion and Advertising Strategy of Rolex 19.4.1 Marketing Strategy of Rolex 19.4.2 Rolex Product Strategy 19.4.3 Rolex Promotion and Advertising Activities References 20: Lean Management and Pull as Part of the Marketing Strategy 20.1 Lean Production System 20.1.1 Introduction to the Lean Production System 20.1.2 Pull System 20.1.3 Zero Defect Principle 20.1.4 Production in Line with Customer Tact 20.1.5 Flow Principle 20.1.6 Andon System for Superior Quality 20.1.7 Poka-Yoke 20.1.8 Gemba and Shop Floor Management 20.2 Shadow Boards 20.2.1 Customers Want to Buy from Companies with Health Standards 20.2.2 Overall Equipment Effectiveness (OEE) 20.2.3 Kanban System 20.2.4 Supermarkets 20.3 Case Study: Porsche Production System References 21: Change Management for Marketing and Sales Activities 21.1 Definition of Change Management 21.2 External and Internal Reasons for Change 21.3 Change Management Concepts 21.3.1 Change Management Concept of Kurt Lewin 21.3.2 Change Management Curve of Elisabeth Kürbler-Ross 21.3.3 Change Management Phase Model of Kotter 21.3.4 ADKAR Change Management Model 21.3.5 McKinsey 7S Model 21.4 Case Study: Change Management in Nissan References 22: Artificial Intelligence (AI) and Cyber Tools in Marketing and Sales 22.1 AI in Marketing and Sales 22.1.1 Introduction to AI in Marketing and Sales 22.1.2 AI-Powered Marketing and Sales Reprint 22.1.3 Task Automation in Marketing and Sales 22.1.4 Machine Learning in Marketing and Sales 22.1.5 Stand-Alone Solution in Marketing and Sales 22.1.6 Integrated Solutions in Marketing and Sales 22.2 Artificial Intelligence (AI) Tools 22.2.1 AI Tools Will Lead to a Competitive Advantage 22.2.2 Autonomous Robots 22.2.3 Virtual Production and Supply Chains 22.2.4 Virtual and Lean Simulations 22.2.5 Systems Integration 22.2.6 Internet of Things 22.2.7 Cybersecurity 22.2.8 Cloud Computing 22.2.9 Additive Manufacturing 22.2.10 Augmented Reality 22.2.11 Big Data 22.3 Industry 4.0 in Lean Management 22.4 Case Study: Google’s Self-Driving Cars References 23: Sales Management Negotiations 23.1 Definition of Negotiations 23.2 A-6 Concept by Dr. Marc Helmold 23.3 The Harvard Negotiation Concept 23.4 The Schranner Negotiation Concept 23.4.1 Concept for Borderline Negotiations 23.4.2 Escape Types 23.4.3 Attacker Types 23.4.4 Mixed Types 23.4.5 Important Steps in the Schranner Negotiation Concept 23.5 Negotiation Personalities 23.5.1 Personalities 23.5.2 Soft Negotiator 23.5.3 Hard Negotiator 23.5.4 Principled Negotiator 23.5.5 Situational Negotiator (Schlagfertig) 23.6 Roles and Responsibilities in Negotiations 23.7 Case Study: EU Negotiation Strategy for COVID-19 Vaccines References 24: Outlook 2030 for Marketing and Sales 24.1 Future Outlook of Marketing 24.2 Marketing Trends 24.2.1 Trend 1: Customer Behaviour-Centric Marketing and Sales Activities 24.2.2 Trend 2: Increased Importance of Influencers in Marketing 24.2.3 Trend 3: Purpose as Success Factor 24.2.4 Trend 4: Marketing Will Become Green and More Ethical 24.2.5 Trend 5: Mobile: Authentic and Inclusive Marketing 24.2.6 Trend 6: Creating an Intelligent and Creative Engine 24.2.7 Trend 7: Customers Without Cookies 24.2.8 Trend 8: Customer-Centric Data Experience 24.2.9 Trend 9: Hybrid and Social Customer Experience 24.2.10 Trend 10: AI-Optimized Marketing and Advertising 24.3 Marketing 4.0 24.3.1 Introduction to Marketing 4.0 24.3.2 Online Versus Offline 24.3.3 Informed Versus Distracted Customers 24.3.4 Negative Versus Positive Defence 24.3.5 Digital Humanization of Marketing Tools 24.3.6 Digital Subcultures: Netizens 24.3.7 Implementing Content Marketing Tools 24.3.8 Engagement Marketing 24.4 Case Study: VR for BMW Customer Experience References