Christian Homburg, Sabine Kuester

and Hariey Krohmer

MARKETING MANAGEMENT A Contemporary Perspective

Mc Grauu Hill

McGraw-Hill Higher Education

London Boston Burr Ridge, IL Dubuque, IA Madison, Wl New York San Francisco St. Louis Bangkok Bogota Caracas Kuala Lumpur Lisbon Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto

Detailed Table of Contents

Preface Guided Tour Technology to Enhance Learning and Teaching Acknowledgements About the Authors

1 Setting the Scene for Marketing

xiii xvi

xviii xxi

xxii

1 1.1 Markets as Focal Points of Marketing 2 1.2 Development and Scope of the

Marketing Concept 1.3 How this Book is Structured Key Terms References

5 8

11 11

PART ONE Laying the Groundwork: Shaping Marketing Strategies

2 The Key Aspects of Marketing Strategy 15 2.1 An Initial Overview of the

Marketing Strategy Concept 16 2.2 The 'Classics' of Strategic Success

Factor Research 22 2.3 The Marketing Strategy

Development Process 31 Summary 33 Case Study: Everything Under Control - Microsoft's Product Life Cycle Policy 33 Key Terms 34 References 35

3 Analysis of the Initial Strategic Situation 37 3.1 Issues and Key Methods in

Analyzing the Initial Strategic Situation 38

3.2 Scanning the Scene: Analysis of the Global Company Environment 39

3.3 Assessing the Microenvironment: Analysis of the Relevant Market 46

3.4 Reading the Market's Mind: Analysis of the Company Situation 56

Summary 61

Case Study: Primark, Stylish and Cheap 62 Case Study: Apple, the Architect of the Digital Age 63 Key Terms 65 References 65

4 Formulation, Evaluation and Selection of Marketing Strategies 67 4.1 Central Questions for the

Formulation of Marketing Strategies 68

4.2 Supporting Concepts for the Formulation of Marketing Strategies 83

4.3 Evaluating Marketing Strategy 89 Summary 90 Case Study: Achieving Service Excellence Cost-effectively 90 Key Terms 92 References 93

End of Part 1 Case Study -Tesla Motors, Inc.: Silicon Valley is Getting Started to E-nable Mobility for the Masses 95

PART TWO The Marketing Mix

5 Product Decisions 107 5.1 Areas of Product Decisions 108 5.2 Defining the Product 108 5.3 Innovation Management 112 5.4 Management of Established

Products 132 5.5 Brand Management 139 Summary 152 Case Study: Lego's Turnaround 152 Key Terms 153 References 154

6 Pricing: Making Profitable Decisions 159 6.1 The Key Aspects of Determining

Prices in a Complex Setting 160 6.2 The Theoretical Foundations of

Pricing Decisions 164

IX

Detailed Table of Contents Continued

6.3 Understanding Customers, Costs and Competition: Approaches to Pricing

Summary Case Study: Apple Revolutionizes Media Consumption Key Terms References

7 Sales Decisions 7.1 Basic Terms, Concepts and

Overview 7.2 The Design and Structure of

the Sales System 7.3 The Design and Structure of

Relationships with Sales Partners and Key Accounts

7.4 The Design of Selling Activities 7.5 Sales Logistics Summary Case Study: Conflict Management with Sales Partners at Google Key Terms References

8 Communication Decisions 8.1 'Who Says What in Which

Channel, to Whom and with What Effect?'

8.2 Understanding the Audience 8.3 Another W: 'What Are We Going

to Spend?' 8.4 Making the Audience Receptive 8.5 Making a Splash? Monitoring

the Impact of Communication Summary Case Study: Woods Loses Endorsement Deals as a Result of Marital Scandal Key Terms References

9 Tying the Knot with Customers 9.1 From Customer Satisfaction to

Customer Loyalty

179 190

190 192 193

195

196

196

208

9.2

9.3

9.4

9.5

9.6

9.7

Creating the Customer Relationship The Power of Belonging to Customer Clubs Retaining Customers via Customer Cards Cross-selling: a Tool for Relationship Building Dealing with Customer Complaints Winning back Customers: on the Road to Customer Recovery

Summary Case Study: Lufthansa's Miles & More Program Key Terms References

298

301

304

307

309

312 314

314 316 316

215 221 228

228 230 231

235

237 239

242 250

280 285

285 286 288

295

296

End of Part 2 Case Study -Jägermeister: Teaching an Old Brand New Tricks 319

PART THREE Marketing in Specific Contexts

10 Business-to-Business Marketing 327 10.1 Business-to-Business Marketing:

Setting the Scene 328 10.2 Marketing Strategy: Specific

Characteristics in Business-to-Business Marketing 335

10.3 Specific Characteristics of Marketing Mix Instruments in Business-to-Business Marketing 336

Summary 347 Case Study: Boeing Lets Airlines Browse 'Dreamliner' Showroom 347 Key Terms 349 References 350

11 Marketing of Services 353 11.1 Marketing of Services:

What are Services? 354 11.2 Designing and Managing

Service Quality 358

x

Detailed Table of Contents Continued

11.3 Specific Characteristics of Services Marketing 369

11.4 An Expanded Marketing Mix in Services Marketing 370

11.5 Retailing 379 Summary 396 Case Study: Cruise Lines Drop Prices to Fill Cabins 397 Key Terms 398 References 399

12 International Marketing 405 12.1 International Marketing:

An Introducton 406 12.2 Specific Characteristics of

International Market Research 424 12.3 Specific Characteristics of

International Marketing Strategies 427

12.4 Specific Characteristics of Elements in the Marketing Mix in International Marketing 436

Summary 447 Case Study: P&G Enters Emerging Markets 448 Key Terms 449 References 451

End of Part 3 Case Study -How Amazon Establishes a Global Reach in E-Tailing 455

PART FOUR Marketing Implementation

13 Marketing and Sales Organization 465 13.1 How to Specialize: An

Introduction to the Concept of Specialization 466

13.2 How to Coordinate: An Introduction to the Concept of Coordination 476

Summary 485 Case Study: Cross-Functional Thinking at BMW 485

Key Terms 486 References 487

14 Marketing and Sales Information Systems 489 14.1 Basic Information about

Marketing and Sales Information Systems 490

14.2 Components of Marketing and Sales Information Systems 499

Summary 505 Case Study: Chico's Comeback 505 Key Terms 507 References 507

15 Marketing and Sales Management Control 509 15.1 Tasks and Roles of Marketing

and Sales Management Control 510

15.2 Marketing and Sales Planning 511 15.3 Marketing and Sales Controls 514 15.4 Analytical Tools Used in

Marketing and Sales Management Controlling 516

Summary 527 Case Study: Cost and Profitability Accounting Tools/Activity-Based Costing 527 Key Terms 529 References 529

16 Human Resource Management in Marketing and Sales 531 16.1 Personnel Management in

Marketing and Sales 533 16.2 Personnel Supervision in

Marketing and Sales 549 Summary 552 Case Study: The War for Talents has Begun 552 Key Terms 553 References 554

XI

Detailed Table of Contents Continued

17 Market Orientation 17.1 Definitions of Market

Orientation 17.2 Market Orientation within

a Company Summary Key Terms References

557

558

561 576 576 577

End of Part 4 Case Study - Nespresso: How Market Orientation Helps Create and Protect an Iconic Brand 581

End of Part 4 Case Study • Reinvented Itself

How IBM

Appendix: Theories and Techniques Index

589

595 620

xii