FOURTH EDITION Marketing Management A RELATIONSHIP APPROACH INSTRUCTORS MANUAL Svend Hollensen This is a publication by Pearson Benelux BV, Amsterdam Website: www.pearson.com/nl Email: [email protected] Cover image: © jamesteohart/Shutterstock First published 2003 This edition published 2019 © Pearson Benelux 2019 The right of Svend Hollensen to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. Pearson Education is not responsible for the content of third party Internet sites. All rights reserved. Permission is hereby given for the material in this publication to be reproduced for OHP transparencies and student hand-outs, without express permission of the Publishers, for educational purposes only. In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without either the prior written permission of the Publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd. Saffron House, 6-10 Kirby Street, London EC1N 8TS. This book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published, without the prior consent of the Publishers. Svend Hollensen, Marketing Management, 4th Edition, Instructor’s Manual Contents Contents 3 PREFACE 5 FOREWORD Some teaching guidelines 7 CHAPTER 1 Introduction 20 PART I Assessing the competitiveness of the firm (internal) 24 Part I Video case: BYD electrical cars 24 CHAPTER 2 Identification of the firm’s core competences 27 CHAPTER 3 Development of the firm’s competitive advantage 31 PART II Assessing the external marketing situation 37 Part II Video case: Müller Yoghurt – Penetrating the US market 37 CHAPTER 4 Customer behaviour 38 CHAPTER 5 Competitor analysis and intelligence 44 CHAPTER 6 Analysing relationships in the value chain 48 PART III Developing marketing strategies 55 Part III Video case: Nivea – Segmentation of the sun care market 55 CHAPTER 7 SWOT analysis, strategic marketing planning and portfolio analysis 57 CHAPTER 8 Segmentation, targeting, positioning and competitive strategies 64 CHAPTER 9 CSR strategy and the sustainable global value chain 70 PART IV Developing marketing programmes 74 Part IV Video case: Tequila Avión – A premium tequila is introduced into the US market and worldwide 74 CHAPTER 10 Establishing, developing and managing buyer–seller relationships 75 CHAPTER 11 Product and service decisions 81 CHAPTER 12 Pricing decisions 87 CHAPTER 13 Distribution decisions 91 CHAPTER 14 Communication decisions 96 PART V Organising, implementing and controlling the marketing effort 101 Part V Video case: Pret A Manger – How to control the expansion of an international restaurant chain 101 CHAPTER 15 Organising and implementing the marketing plan 102 CHAPTER 16 Budgeting and controlling 107 APPENDIX Market research and decision support system 111 3 © Pearson Benelux 2019 Svend Hollensen, Marketing Management, 4th Edition, Instructor’s Manual Supporting resources Visit www.VitalSource.com to find valuable online resources: For students • Full versions of the video case studies at the start of each part opener • Multiple choice questions to test your learning • Weblinks For instructors • A complete, downloadable Instructor’s Manual • PowerPoint slides that can be downloaded and used for presentations • Extra online case material For more information please contact your local Pearson sales representative or visit www.VitalSource.com or www.pearsoned.co.uk/hollensen 4 © Pearson Benelux 2019 Svend Hollensen, Marketing Management, 4th Edition, Instructor’s Manual PREFACE INTRODUCTORY COMMENTS The textbook ‘Marketing Management – A relationship approach’ has been written for lecturers teaching courses or executive education programmes in Marketing Management. The book is structured according to five main decision phases that companies face in the marketing management process. The schematic outline of the book in the figure below shows how the different parts fit together. As is seen in this figure, ‘marketing research’ will be regarded as a support system for all five phases of the decision process. The figure above regards the marketing planning system as a hierarchical approach, but if we look at the planning system as more iterative we can illustrate it as the following figure: 5 © Pearson Benelux 2019 Svend Hollensen, Marketing Management, 4th Edition, Instructor’s Manual This Instructor’s Manual (IM) has been especially prepared for adopters of the textbook. The principal objective of the IM is to help instructors create an exciting, informative and successful classroom experience for their students. The material has been written to allow you the flexibility to design a course tailored to your own objectives, methods and conceptual framework. This IM helps busy marketing lecturers in their job of teaching the subject. It is not intended to suggest that there is ‘one way’ of using the textbook, ‘one way’ of analysing the case studies and discussion questions, and ‘one way’ of teaching global marketing. In short, it is intended to supplement your creative skills in teaching marketing. Together with the textbook, the IM forms a package of materials designed to facilitate course development and execution. The IM follows the ordering of the material in the book. This means that each chapter in this IM contains the following: • Teaching notes on the 21 cases included in the book (an end-of-chapter case for each of the sixteen cases and a video case study for each of the five parts). These case notes are not intended to be exhaustive, but are rather starting points for the instructor’s own preparation. • Model answers to ‘discussion questions’. The ‘Questions for discussion’ can be used in a variety of ways. They can be used as essay questions to test students’ knowledge and understanding of the subject matter. Some of them may form the focus of a tutorial discussion. You may also wish to encourage students to use them as self-administered tests of knowledge and understanding of each chapter as they read the textbook. I hope that you will find the material in this IM helpful, and that it will assist you in developing a course that meets your needs and the objectives for your students. I look forward to receiving your comments on the textbook itself and on the Instructor’s Manual. Svend Hollensen E-mail: [email protected] 6 © Pearson Benelux 2019 Svend Hollensen, Marketing Management, 4th Edition, Instructor’s Manual FOREWORD Some teaching guidelines DIFFERENT LEVELS OF LEARNING Learning concerns changing behaviour through a permanent change of knowledge, skills or attitudes. The lecturer in international marketing may have different sets of teaching objectives including the development of: • Knowledge: Understanding the basic material. The lecturer may encourage the understanding of the many, often conflicting, schools of thought and facilitate gaining insight into the assumptions, possibilities and limitations of each theory or model. • Skills: A higher level of learning. Learn how to simultaneously perform a number of elements requiring understanding of the entirety rather than the individual component. • Attitude: Ability to: • evaluate the usefulness of some specific practice; • instill a critical, analytical, flexible and creative mind-set. Hence, a learning situation must encourage students to be critical, must challenge them to be analytical, must force them to be mentally flexible and must demand creativity and unconventional thinking. In short, students cannot be instructed but must learn the art of strategy by thinking and acting themselves. The role of the lecturer is to create the circumstances for this learning. We therefore refer to this type of teaching as facilitative. TEACHING OBJECTIVES When translating the teaching objectives, approach and format into a course setup, the lecturer must consider a large number of ‘design variables’. In other words, international, global marketing course structures can significantly differ from one another on quite a few dimensions. Some design variables can be determined by the lecturer, while others must be taken as given. Some of the most important ones are: • Course scope: Professors/lecturers must decide whether to cover all chapters in the book and whether to skip, or even add, particular articles. • Class session sequence: The order in which topics will be covered must also be determined. Following the chapters in their numerical sequence is a logical choice. So it is probably ideal for most students to study the text in the order in which it is presented. As a general suggestion, instructors who assign chapters in an order that differs from the text order should consider explaining to students briefly but explicitly the logic for the selected structure. The instructor who sees the ‘big picture’ can have very good reasons for selecting a particular order, but students going through the material for the first time may wonder what the special value of the structure might be. • Class session length: The length of class sessions can vary from 45 minutes to much more, although this is usually not determined by the lecturer. • Class session frequency: The number of class sessions can vary (typically ten to twenty sessions) but is usually also difficult to influence.