Strategic Marketing : Market-Oriented Corporate and Business Unit Planning

This textbook gives a clear and comprehensive overview of the process of strategic marketing planning. The authors provide a systematic framework that helps to structure the vast and complex marketing knowledge, thus making it more accessible and easier to use for strategic marketing planning. Many short case reports and examples serve to illustrate the key aspects of the marketing planning process. Contents The information basis of marketing planning Market-oriented corporate planning Market-oriented business unit planning Planning the marketing mix Marketing implementation and management control The authors Prof. Dr. Torsten Tomczak is Director of the Institute for Customer Insight at the University of St. Gallen (ICI-HSG) and Professor of Marketing at the University of St. Gallen. Prof. Dr. Sven Reinecke is Director of the Institute of Marketing at the University of St. Gallen (IfM-HSG). Prof. Dr. Alfred Kuss is Professor (em.) at the Marketing Department of Freie Universität Berlin Preface to the English edition of “Marketing Planning” 5 Contents 6 About the Authors 10 1 Introduction 11 1.1 The Marketing Concept 11 1.1.1 From Production Orientation to Marketing Orientation 11 1.1.2 Definitions of the Marketing Concept 14 1.1.3 Features of Marketing 16 1.1.4 Strategic Marketing 18 1.2 The Process of Marketing Planning – An Overview 20 1.2.1 The Marketing Mix 21 1.2.2 The Role of Brands 24 1.2.3 The Process of Marketing Planning and the Structure of this Textbook 26 References 27 2 The Information Basis of Marketing Planning 29 2.1 General Information Basis of Marketing Planning 29 2.1.1 The Product Lifecycle 29 2.1.2 The Experience Curve 33 2.1.3 Economies of Scale and Economies of Scope 35 2.1.4 Success Factors 38 2.2 Environmental and Industry Analysis 40 2.2.1 Environmental Analysis 41 2.2.2 Industry Analysis 43 2.2.3 Competitive Analysis 47 2.3 Corporate Analysis 49 2.3.1 Strengths and Weaknesses 49 2.3.2 Value Chain Analysis 50 2.4 Market Research and Aspects of Buyer Behaviour 52 References 57 3 Market-Oriented Corporate Planning 59 3.1 Competition and Competitive Advantages 59 3.1.1 Basic Principles 59 3.1.2 Characteristics of Markets and Resources as the Basis for the Success of a Firm 61 3.1.3 Development and Effects of Competitive Advantages 64 3.2 Guidelines Derived from Strategic Corporate Planning 67 3.3 Definition of Business and Market Activities 69 3.3.1 Relevant Markets, Market Areas and Market Segments 69 3.3.2 Abell’s Approach for Defining Markets 71 3.3.3 Strategic Business Units 73 3.3.4 Limits to the Vertical Integration of Companies 75 3.4 Market Selection and Target Portfolio (Where and in Which Direction?) 77 3.4.1 From the Current to the Target Portfolio 77 3.4.2 Portfolio Standard Strategies 82 3.5 Fundamental Market Strategy Options (How?) 85 3.5.1 Overview 85 3.5.2 Differentiation 87 3.5.3 Comprehensive Cost Leadership 89 3.5.4 Concentration on Special Segments 90 3.5.5 Outpacing Strategies 91 3.6 Timing Aspects of Marketing (When?) 92 3.6.1 Early or Late Market Entry 92 3.6.2 Strategic Windows 96 3.7 Corporate Brand Management 97 3.7.1 Basic Principles 97 3.7.2 Brand Portfolio Management 98 3.7.3 Brand Architecture 100 3.7.4 Expansion of Brand Competence via Brand Extension 102 References 103 4 Market-oriented Business Unit Planning 106 4.1 Interdependencies Between Corporate Planning, Business Unit Planning and Marketing Mix Planning 106 4.2 Determining the Growth Strategy 109 4.2.1 Overview 109 4.2.2 The Basic Concept of the Task-Oriented Approach 110 4.2.3 Core Tasks in Marketing 112 4.3 Core Task Profiles 128 4.3.1 Types of Core Task Profiles 129 4.3.2 Competition-Beating Core Task Profiles 132 4.4 Cooperations and Networks 136 4.5 Positioning 139 4.5.1 Overview 139 4.5.2 Relationship Between Brand Identity and Brand Positioning 141 4.5.3 The Classical Positioning Model 142 4.5.4 Active Positioning 145 4.5.5 Positioning in the Markets of the End Customer and the Intermediary 149 4.5.6 Positioning Strategy on Business Unit Level 151 References 175 5 Planning the Marketing Mix 180 5.1 Overview: Elements and Effects of the Marketing Mix 180 5.2 Product 184 5.2.1 Functions of Products and Services 184 5.2.2 Structure and Scope of the Product Range or Assortment 186 5.2.3 Decisions on Individual Products and Services 188 5.2.4 Individualisation vs. Standardisation of Products and Services 189 5.3 Price 191 5.3.1 Functions and Mechanisms of Pricing 191 5.3.2 Pricing Goals 192 5.3.3 Price Setting 194 5.3.4 Price Differentiation and Variation 198 5.4 Communication 200 5.4.1 Functions and Instruments of Communication 200 5.4.2 Communication Instruments 203 5.4.3 Integrated Marketing Communication 206 5.5 Distribution 207 5.5.1 Functions and Management of Distribution 207 5.5.2 Distribution Organs 208 5.5.3 Management of Distribution Channels 210 5.6 Planning the Marketing Mix 213 5.6.1 Planning the Marketing Mix as a Complex Decision-Making Problem 213 5.6.2 Problems of Optimising the Marketing Mix 216 5.6.3 Guideline Planning of the Marketing Mix 219 5.6.4 Detailed Planning of the Marketing Mix 225 5.7 Summary 227 References 227 6 Marketing Implementation and Management Control 231 6.1 Marketing Implementation 231 6.1.1 Characterisation of the Implementation Challenge 231 6.1.2 Marketing Organisation 233 6.1.3 The Marketing Budget 237 6.1.4 Corporate Culture and Employees 240 6.2 Marketing Management Control 242 6.2.1 Marketing Management Control as Quality Assurance for Management 242 6.2.2 Tasks of Marketing Management Control 242 6.3 The Balanced Scorecard as an Aid for Implementation and Control 247 References 251 Further Readings 253 Index 255 This textbook gives a clear and comprehensive overview of the process of strategic marketing planning. The authors provide a systematic framework that helps to structure the vast and complex marketing knowledge, thus making it more accessible and easier to use for strategic marketing planning. Many short case reports and examples serve to illustrate the key aspects of the marketing planning process. Contents The information basis of marketing planning Market-oriented corporate planning Market-oriented business unit planning Planning the marketing mix Marketing implementation and management control The authors Prof. Dr. Torsten Tomczak is Director of the Institute for Customer Insight at the University of St. Gallen (ICI-HSG) and Professor of Marketing at the University of St. Gallen. Prof. Dr. Sven Reinecke is Director of the Institute of Marketing at the University of St. Gallen (IfM-HSG). Prof. Dr. Alfred Kuss is Professor (em.) at the Marketing Department of Freie Universität Berlin Front Matter ....Pages I-XI Introduction (Torsten Tomczak, Sven Reinecke, Alfred Kuss)....Pages 1-18 The Information Basis of Marketing Planning (Torsten Tomczak, Sven Reinecke, Alfred Kuss)....Pages 19-48 Market-Oriented Corporate Planning (Torsten Tomczak, Sven Reinecke, Alfred Kuss)....Pages 49-95 Market-oriented Business Unit Planning (Torsten Tomczak, Sven Reinecke, Alfred Kuss)....Pages 97-170 Planning the Marketing Mix (Torsten Tomczak, Sven Reinecke, Alfred Kuss)....Pages 171-221 Marketing Implementation and Management Control (Torsten Tomczak, Sven Reinecke, Alfred Kuss)....Pages 223-244 Back Matter ....Pages 245-253 Dieses Lehrbuch führt in verständlicher, systematischer und knapper Form in die Problemfelder der Marketingplanung ein. Sowohl die Marketingplanung auf der Unternehmens- und Geschäftsfeldebene als auch die Planung des Marketing-Mix werden behandelt. Mit Hilfe von zahlreichen kurzen Fallbeispielen werden wesentliche Aspekte des Inhaltes veranschaulicht. Die Autoren haben in der 7. Auflage alle Kapitel überarbeitet und diverse neue Praxisbeispiele aufgenommen. Bei der Markenführung wurden einige Grundlagen ergänzt. Dieses Lehrbuch fuhrt in verstandlicher, systematischer und knapper Form in die Problemfelder der Marketingplanung ein. Sowohl die Marketingplanung auf der Unternehmens- und Geschaftsfeldebene als auch die Planung des Marketing-Mix werden behandelt. Mit Hilfe von zahlreichen kurzen Fallbeispielen werden wesentliche Aspekte des Inhaltes veranschaulicht. Die Autoren haben in der 7. Auflage alle Kapitel uberarbeitet und diverse neue Praxisbeispiele aufgenommen. Bei der Markenfuhrung wurden einige Grundlagen erganzt