The Oxford Textbook of Marketing

Part 5: Issues in Implementing Marketing Strategies

The anatomy of a brand

Brand proposition

Positioning and personality

Functional attributes

Symbolic values

The five loyalty profiles

The committed

Active loyalist

Habitual buyer

Constrained switcher

Promiscuous switcher

The branding cycle

Communication mix Brand name Marketing mix Product

Strapline
Packaging The consumer

Price
Communication Distribution

Physical needs Psychological needs Buying power

Brand proposition Positioning Personality

Research

Brand franchise matrix

International markets MARKET DEVELOPMENT New domestic markets

New segments

Current markets

Current products

Line extensions

New products

PRODUCT DEVELOPMENT

The global brand strategy matrix

PRODUCT B R A N D P R O P O S I T I O N STANDARDIZED

STANDARDIZED

ADAPTED

Fully global strategy

Product-adaptive strategy

ADAPTED

Proposition-adaptive strategy

Fully adaptive strategy

Production and consumption processes in physical-product and service contexts

Production and consumption of physical products (outcome consumption):
M A R K E T I N G

Production

Product Consumption

The service (production) process and service consumption (process consumption):

Service process Service Consumption

MARKETING???

The perceived service quality model

(a)

Expected service

Perceived Service Quality

Experienced Service

Image

Technical quality: what

Source: Gronroos (1982:41;1990:41)

Functional quality: how

The perceived service quality model

(b) Perceived Service Quality

Expected Service

Experienced Service

Giving promises

Image

- Market communication - Image - Word of mouth - Customer needs

Technical quality: what

Functional quality: how

Source: Gronroos (1982:41;1990:41)

The augmented service offering

The service concept The core service

Accessibility of the service

Facilitating services (and goods)

Supporting services (and goods)

Interactions

Customer participation
Source: Gronroos (1990a:77)

The gap analysis model

CONSUMER

Personal needs Expected service

GAP 5

Word of mouth communications

Past experience

Perceived service External Service delivery (including pre- and GAP 4 communications to consumers post-contacts

MARKETER GAP 3

GAP 1 GAP 2

Translation of perceptions into service quality specs. Management perceptions of consumer expectations

Source: Zeithaml et al (1998:36)

Three types of marketing

Customer

INTERACTIVE MARKETING Keeping promises

EXTERNAL MARKETING Making promises

Employees

Corporate INTERNAL MARKETING Enabling promises

Associations between transactional and relational marketing

Strong positive relationship

Transaction marketing

Database marketing

Strong negative relationship

Network marketing

Strong positive relationship

Interaction marketing

Strong positive relationship

Relationship Marketing in Consumer Markets

Challenges to the traditional view of marketing Defining relationship marketing Differences between transactional and relationship marketing Major trends in marketing practice Types of marketing in practice Future marketing practice Consumer products Industrial products Services

Relationship Marketing in Consumer Markets

The increasing importance of relationship marketing to consumer products Future trends Service aspects of consumer products Financial accountability, loyalty, and consumer value management Organizational transformation Retailers and systematic relationships Interactive media and mass customization

Evaluation of potential partners

Low
Facilitative

Integrative

Operating risk
Loser High Developmental

Low
Value added to partner

High

Empirical models of buyer-seller relationships

Reputation Performance satisfaction Trust Social bonds Comparison level of alternatives Mutual goals Interdependence and power

Empirical models of buyer-seller relationships

Shared technology Non-retrievable investments Adaptation Structural bonds Co-operation Commitment

Relationship building process

Partner selection Defining purpose Boundary definition Creating relationship value Relationship maintenance

The new-product development process

Stage 1 - Idea generation External Sources Internal Sources Stage 2 - Idea screening Stage 3 - Concept evaluation Stage 4 - The business case

The new-product development process

Stage 5 - Product development and testing Stage 6 - Market testing and validation How much testing? Market testing in consumer markets Market testing in industrial marketed Stage 7 - Market launch

New-service development

Impact of service intangibility Effect of simultaneity Impact of service variability

Entrepreneurship and marketing practice in small firms

Marketing in practice in small firms Industry norms Small firms exporting difficulties and barriers
Influence of the entrepreneur Motivations Difficulties Stages of internationalisation Short cuts Overall barriers

A classification of export motives

INTERNAL EXTERNAL

PROACTIVE

Managerial urge Foreign markets Growth and profit goals Change agents Marketing advantages Economies of scale Unique product/technology competence Unsolicited orders Risk diversification Small home market Extend sales of a seasonal Stagnant or product Excess capacity of resources declining home market

REACTIVE

Fundamental aspects of small-firm marketing

Personal-contact networks Marketing competencies

Alternative marketing for small firms

Alternative marketing 1: export marketing Alternative marketing 2: customer versus profit orientation Alternative marketing 3: scientific versus natural marketing research

Alternative marketing for small firms

Alternative marketing 4: small-firm selling Alternative marketing 5: small-firm distribution Alternative marketing 6: small-firm pricing Alternative marketing 7: the small-firm marketing plan

Assessment of the quality of marketing decision-making in small firms

Marketing quality assessment: pricing quality Marketing quality assessment: delivery quality Marketing quality assessment: selling quality

Customer lifetime value

Calculating the LTV of individual customers The benefits of LTV analysis Assigning acquisition allowances Choosing media for initial customer acquisition Setting selection criteria for retention marketing Investing in the reactivation of lapsed customers Assigning an asset value to the marketing database

Customer Acquisition
Objectives Segmentation and profiling Targeting Lifestyle lists Geodemographic lists Choosing a list Other sources of prospects

Customer Acquisition
Media selection Direct mail Telemarketing Direct Response Press Advertising (DRPA) Door-to door distribution Direct Response Television Advertising (DRTV) Inserts The Internet and electronic media

Customer Acquisition
Communication of the offer Fulfilment Response Analysis

Building a customer database

Three ways of producing a database Purchasing or leasing a software package Using proprietary software Designing a custom database What information should be stored?

The acquisition pyramid

MGMs Former Customers Unconverted enquiries Selective media

Broadscale media