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STRUCTURE OF THE BOOK

PART ONE The Changing Role of Marketing


The role of marketing in the firm and in a market economy
CHAPTER ONE

From marketing to market-driven management


CHAPTER TWO

PART TWO Understanding Customer Behaviour


The customer choice behaviour
CHAPTER THREE

The marketing information system


CHAPTER FOUR

The customers response behaviour


CHAPTER FIVE

PART THREE Market-driven Strategy Development


Needs analysis through market segmentation
CHAPTER SIX

Market attractiveness analysis


CHAPTER SEVEN

Competitiveness analysis
CHAPTER EIGHT

Formulating a market strategy


CHAPTER NINE

The strategic marketing plan


CHAPTER TEN

PART FOUR Market-driven Management Decisions


Market-driven new product decisions
CHAPTER ELEVEN

Market-driven distribution decisions


CHAPTER TWELVE

Market-driven pricing decisions


CHAPTER THIRTEEN

Market-driven communication decisions


CHAPTER FOURTEEN

Market-driven advertising decisions


CHAPTER FIFTEEN

PART FIVE Ten Case Studies in Market-driven Management


1.The Lander Company W.J. Stanton 2.The WILO Corporation R. Khler 3.TV: Cold Bath for French Cinema A. Riding 4.Ecover D. Develter 5.Volvo Truck Belgium J.J. Lambin 6.The Petro-equipment Company J.J. Lambin 7.Sierra Plastics Company W.J. Stanton 8.Tissex G. Marion 9.Newfood G.S. Day et al. 10.SAS: Meeting Customer Expectations D.L. Kurtz and K.E. Clow

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

Figure 1.2

The role of marketing in the firm

MARKET ANALYSIS

Inter-functional co-ordination

R&D ACTIVITIES

Unfilled needs and wants

New product ideas

Is it feasible? (response marketing)

Is there a need? (supply marketing)

STRATEGIC MARKETING

Target segment(s) Marketing programme Investment programme

OPERATIONAL MARKETING

Production planning

PRODUCTION MANAGEMENT

Marketing expenses and sales revenue

Investment and operating costs

FINANCE MANAGEMENT

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

Figure 1.3

The integrated marketing process

STRATEGIC MARKETING Needs analysis and segmentation Attractiveness Competitiveness Primary demand Sales forecast

OPERATIONAL MARKETING Target market/segment Marketing mix budget Market share objective

SALES OBJECTIVE (in volume)

MARKETING PROGRAMME (product, distribution, price, advertising, sales force) SALES REVENUE OBJECTIVE GROSS PROFIT OBJECTIVE MARKETING EXPENDITURE

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

Figure 1.4

The role of marketing in a market economy

(2)

Demand and supply analysis Mass media advertising (4)


Personal selling Trade promotion

(1)

PRODUCER
Price Supply curve

BUYER
Price Demand curve

(3)

DISTRIBUTION

(5)

Indirect flow

State Time Space

Quantity (7)

Direct flow

Quantity

Satisfaction/Dissatisfaction Physical flow Communication flow

(6)

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

Figure 1.5

The virtuous circle of development triggered by strategic marketing

Adapted products Demand

New investments and economies of scale Productivity Cost reductions

Price reductions

Enlargement of the market

New groups of buyers

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

Figure 1.6

Typical organisation of a product-oriented company

GENERAL MANAGEMENT

OPERATIONS DEPARTMENT Production management Product politics (Market studies) Physical distribution After-sales service

ADMINISTRATION AND FINANCE DEPARTMENT Administration management Finance management COMMERCIAL SERVICE Sales administration Logistics distribution

HUMAN RESOURCES DEPARTMENT Personnel management Recruitment, Selection, Sales force training

ADVERTISING AGENCY

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

Figure 1.7

Typical organisation of sales-oriented company

GENERAL MANAGEMENT

OPERATIONS DEPARTMENT Production management Product politics After-sales service

ADMINISTRATION AND FINANCE DEPARTMENT Administration management Finance management Sale price Expectations Commercial Budgets

SALES DEPARTMENT Commercial management Sales net organisation Physical distribution Advertising promotion Sales administration Market studies

HUMAN RESOURCES DEPARTMENT Personnel management

ADVERTISING AGENCY

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

Figure 1.9

Typical organisation of a marketing-oriented company

GENERAL MANAGEMENT RESEARCH AND DEVELOPMENT

OPERATIONS DEPARTMENT Production management

ADMINISTRATION AND FINANCE DEPARTMENT Administration management Finance management

MARKETING DEPARTMENT Marketing management Forecasting: Market research Sales objectives Strategic decisions: Product-market Distribution channels Tactical decisions: Price Advertising Sales force Sales promotion Control

HUMAN RESOURCES DEPARTMENT Personnel management

ADVERTISING AGENCY

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press

Figure 1.10

The traditional marketing department

GENERAL MANAGEMENT

Marketing

R&D

Production

Human Resources

Finance and Control

Marketing management

Marketing research Product manager A

Sales

Advertising

Sales promotion

Product manager B

Sales inspectors

Sales administration

Product manager C

Sales representatives

Jean-Jacques Lambin, 2000. Market-driven Management, published by Macmillan Press