Malcolm Mcdonald

Cranfield University

Purpose There are many challenges facing senior marketing people, and this commentary paper, based on the author’s consultancy experience, teaching expertise and observations of the business-to-business (B2B) environment, aims to address the causal relationship between marketing expenditure and results, which is holding back marketers from inclusio...

This chapter concerns with what is sold to the customers-the 'product'-and it will quickly be made clear that it is impossible to separate the product itself from the way it is delivered. The vital aspects of product management are concerned with the nature of products, product lifecycles, how products make profits, the concept of the product portf...

This chapter expands on the 'Determine the value proposition' step and spells out how to set marketing objectives and strategies within the strategic marketing plan. The key input to creating value proposition process is the analysis of customer needs, and the relative attractiveness of different customer segments. Setting objectives is a mandatory...

This introduction presents an overview of key concepts discussed in the subsequent chapters of this book. The book explains what is required at each stage of the strategic marketing planning process. Worksheets are provided to enable users to build their plan as they proceed. The book considers all forms of communication, especially advertising, di...

Personal selling has an important strategic role to play in communicating between a company and its customers. Most organizations had an organized sales force long before they introduced a formal marketing activity of the kind described throughout this text. In spite of this fact, sales force management has traditionally been a neglected area of ma...

This chapter justifies the need for a wholly new approach to measuring the effectiveness of marketing. It also sets out marketing accountability framework developed in the Cranfield Research Clubs. The wider understanding of what 'marketing' is really all about has had a number of consequences. First, the classic textbook treatment of strategic iss...

This chapter discusses channel strategy: what channel combinations are used for the customer journey across marketing, sales and customer service. Once these channels are in place, people then have the challenge of developing relationships with individual customers through these channels. The chapter also discusses the mechanisms that all but the s...

This chapter puts the difficult process of marketing planning into the context of the relevant environment in which it will be taking place. It points out some of the more obvious facts and pitfalls of marketing planning system. Assuming that marketing planning is acceptable at something deeper than a cosmetic level, it becomes possible to see how...

This chapter discusses how to form a multichannel strategy. It describes how to choose communication channels and reviews simple steps which the marketer can take to develop a more rational channel strategy. They are based on Cranfield's work over a number of years with the blue-chip members of the Cranfield Customer Management Forum, such as HSBC,...

The marketing planning is a multifaceted, complex, cross-functional activity that touches every aspect of organizational life. This chapter explains some of these pan-company issues by focusing on the process of marketing planning. Research into the efficacy of formalized marketing planning has shown that marketing planning can make a significant c...

This chapter addresses the issue of pricing as a separate element of the marketing mix because this is the only sensible way that all the complex issues relating to pricing can be discussed. In spite of product positioning, most products have competitors, and it goes without saying that these must be carefully considered. This brings into sharp foc...

This chapter shows how markets are defined and segmented. Market segmentation is fundamental to the matching process. In order to understand market segmentation, it is first necessary to appreciate the difference between customers and consumers, the meaning of market share and the phenomenon known as the Pareto effect. Successful segmentation is ba...

This chapter explores the central area of marketing objectives and strategies, gives attention to the question of how people communicate with customers, both current and potential. The number of ways of communicating with customers is increasing all the time, though it is still possible to distinguish the following two main categories: impersonal c...

This chapter spells out the essential components of a customer and market audit. It enables people to complete the section headed strengths, weaknesses, opportunities and threats (SWOT) analyses. A SWOT is a very useful way of converting all significant amounts of data into intelligence as part of the strategy development process. The lessons to be...

This chapter contains a step-by-step system for completing: a strategic marketing plan, a tactical marketing plan, and a consolidated multi-strategic business unit (SBU) strategic marketing plan. The marketing planning system is in three sections. First section takes people through a step-by-step approach to the preparation of a strategic marketing...

This chapter describes the role of strategic account plan in strategic account management. The key account plan should pull together all the knowledge and thinking around each customer to identify powerful and affordable value recipes for them. The plan needs to address how the value recipe will be converted into action and that must be made suffic...

Foreword vii Preface and acknowledgements ix An important note to the reader from the authors xi List of figures xv List of tables xix 1 Market segmentation the bedrock of successful marketing 1 2 Preparing for segmentation additional guidelines for success 21 3 Fast tracking through the segmentation process 47 4 Determining the scope of a segmenta...

As the business environment takes on a global perspective for many business-to-business organisations, so the area of Global Account Management has become an increasingly important issue for both researchers and practitioners. This working paper outlines a research project 2 on the role of the Global Account Manager in managing global business-to-b...

Now in its 7th edition, Marketing Plans is a highly renowned international bestseller. The book has been thoroughly revised with special attention to the latest developments in marketing. To accomplish this, Professor Malcolm McDonald has been joined in this edition by Professor Hugh Wilson, a leading expert on CRM and multichannel strategy as well...

The theory and practice of key account management, including practical tools addressing many aspects of the approach. With new chapters on transitioning to KAM and performance and rewards in KAM.

This has long been the one book that students can rely on to get them thinking critically and strategically about branding. This new fourth edition is no exception. THE definitive introductory textbook for this crucial topic, it is highly illustrated and comes packed with over 50 brand-new, real examples of influential marketing campaigns. Bullets:...

This paper reviews the state of marketing theory and practice. A early reviewer of this paper was inclined to "criticise the title on the grounds of obscurity", but concluded it would do as it was. In an academic culture in which the average journal contents page is hardly less obfuscatory, our attempt at irony in the title and introduction seems t...

Purpose – This paper aims to review previous work in the domain of marketing accountability, an issue which has become of increasing concern to chief executive and financial officers. It principal purpose is to attempt an elementary epistemology, with a view to setting a research agenda for scholars in finance, microeconomics or marketing. Design/m...

Follow up to “Comment‐Corporate culture: is it really a barrier to marketing planning?” by Jim Saker and Richard Speed.

Given the amount of academic scholarship and attempts at implementation in the world of practice over the 54 years since Wendell Smith first raised the consciousness of the community to the importance of market segmentation, it is surprising that so little progress has been made. In 2005, Christensen, Cook and Hall, in the Harvard Business Review,...

Excellent marketing has always emanated from a deep understanding of consumer needs and expectations, combined with their right to be informed, protected and their right to quality of life. Evidence for this fundamental bedrock of marketing is provided. The problem is that in 2009 "marketing" just doesn't mean "good marketing", or even "honest mark...

In capital markets, success is measured in terms of shareholder value added, having taken account of the risks associated with future strategies, the time value of money and the cost of capital. Such value is created by managing assets strategically. The problem, however, is that most of these assets are not on the balance sheet, as they are intang...

Purpose This research aims to undertake a business theory application into the political marketing context, examine the degree and nature of its theoretical and practical compatibility, and develop a preliminary conceptual marketing communications (MCs) framework for small political parties (SPPs) in developed countries. Design/methodology/approac...

Der internationale Lehrbuchklassiker zum prüfungs- und berufsvorbereitenden Lernen für Studierende im BWL-Pflichtfach Marketing für Bachelor-Master-Studiengänge! Schritt für Schritt werden die Prozesse der Marketingplanung aus der Sicht des Marketingexperten erläutert, die zugehörigen Ansätze und Verfahren konzeptionell überzeugend aufbereitet, did...

Purpose To show how the marketing discipline has lost its boardroom credibility by its own short sightedness over the past half century, and suggest how the situation might be redeemed. Design/methodology/approach Personal reflection, based on long, broad and deep experience. Findings Whereas success is measured in capital markets in terms of sha...

Purpose – The purpose of this paper is to offer a rejoinder to Michael Thomas's Viewpoint, “The malpractice of marketing management”. Design/methodology/approach – The paper offers a “comradely counterpoint” to Thomas's Viewpoint, discussing such topics as consumer sovereignty, marketing ethics, advertising, consumerism, distribution of wealth, an...

In order to explore the complexities of developing a strategic marketing plan, this article is written in three parts.The first describes the strategic marketing planning process itself and the key steps within it. It also deals with implementation issues and barriers to marketing planning.The second part provides guidelines for the marketer which...

This paper address the marketing side of demand management by exploring the potentials of multi channel approaches for customer interactions. We suggest various frameworks for suppliers to consider when developing a strategy for investment with the right mix of channels.

Today's marketer is faced with a bewildering mix of IT-enabled channels to the customer — websites, e-hubs, call centres and so on — to complement traditional channels. Where once the route to market was a straightforward matter of standard industry practice — `in our industry we sell via distributors' or `we serve our customers via a direct sales...

Extensive qualitative report into whether and how KAM is profitable strategy for suppliers, investigating the extent of knowledge, attitudes and viable techniques for gaining information on customer profitability

This paper reviews the state of marketing after 50 years of theory and practice. It examines the role of practitioners, consultants and academics and concludes that marketing has been largely relegated to the relatively minor role of promotion and has been sidelined as a contributor to corporate strategy making. The paper then proposes a future age...

Marketing's current malaise is a symptom of the discipline's deepening disconnectedness from the real world of commerce. It has, in many cases, become less of a beacon and more of a business bolt-on. While factors such as heightened competition, global forces and technological developments have all but redefined the marketing challenge, they have a...

The use of information systems (IS) in marketing is maturing, as previous piecemeal systems are replaced by CRM suites, which provide a unified view of the customer. However, research and practice in this domain suffer from the lack of a commonly accepted map of the marketing process, let alone of the potential marketing IS applications which suppo...

The importance of effective customer relationships as a key to customer value and hence shareholder value is widely emphasised. In order to enhance these relationships, the application of IT to marketing through customer relationship management (CRM) software, e-commerce and other initiatives is growing rapidly. This study examines the factors that...

IT support for marketing planning can aid in the use of marketing tools, facilitate group planning, and support moves towards continuous planning based on a live marketing model of the business. But, amongst other factors, achieving these benefits depends on the style of support provided by the system. After a review of relevant decision support sy...

In the new economy companies must integrate marketing processes throughout the business and embrace a single-minded focus on customer value. To achieve this, marketing needs to fully understand and seize the opportunities provided by IT. This new report from Cranfield School of Management sets out in clear, accessible terms the essential applicatio...

Examines the issues associated with the creation and development of service brands in corporate branding. Initially considers the increasing importance of the services sector, the appropriateness of corporate versus individual branding and how service organisations have challenged the traditional approach to business. By analysing the success and f...

Extensive qualitative research report on the identification, selection and categorisation of key accounts; strategic planning for key accounts; and key customer profitability

An essential input for the successful implementation of every business fad, matrix guru, paper, course and initiative is a detailed understanding of customers and how they segment. Customer segmentation, therefore, has a profound impact on business strategy and getting it right cannot be left to chance. But what is `right'?It is the contention of t...

Key Account Management (KAM) is a natural development of customer focus and relationship marketing in business-to-business markets. It can offer critical opportunities for profit enhancement for both the seller and the buyer, if it is managed with integrity and imagination. The scope of KAM is widening and at the same time becoming more complex. Th...

Despite the last thirty years of marketing education, much of the theory of marketing remains poorly understood and patchily applied by practitioners. While there are numerous reasons, we put some of the blame at the door of the prescriptive literature itself which tends to treat marketing techniques individually, without making clear their relatio...

This is the third edition of one of world's most respected and successful books on branding. Written by an internationally acclaimed branding expert and author of From Brand Vision to Brand Evaluation, it has been comprehensively revised and updated with a raft of new cases and examples. The book gives the professional and the student a deep unders...

The structuring of markets into clearly defined segments is undoubtedly a key input for the company’s marketing plan. Segmentation not only identifies the customer groups your company should focus its resources into, but also (through the detailed analysis required in a professionally conducted segmentation process) identifies vitally important ele...

This chapter is Step 3 in the process of developing a segmentation structure for your market. It breaks down the current activity in the market into four categories: what is bought; where it is bought; when it is bought; and how it is bought.

This first step in developing a segmentation structure for your market consists of two parts. The first requires you to draw a map of the market your business is segmenting and the second determines at which points on this map you should be developing segments.

Now the segments in your market have been defined, it is essential that you determine how attractive each segment is to your company. This, along with an analysis of your competitiveness in each segment (Chapter 10), will help you decide how best to distribute your financial and managerial resources between them.

A key requirement for each concluding segment is the ability to identify clearly which customers are to be found in each of them. This is critical for targeting your segment-specific offers.

This step discusses the procedure required for building the micro-segments back up into market segments. A summary of where this step lies in relation to the process as detailed so far appears in Figure 7.1.

Step 5 puts together the framework that will be used to compare each of the micro-segments with one another. This framework consists of the needs-based buying requirements of the market, identified by referring to the KDFs listed in Step 3 (Chapter 4).

The main purposes of this chapter are: to provide guidance on how to construct a customer base for the market you are segmenting by using the information put together in Step 3; to link this customer base to the profiling information recorded in Step 2.

For this final chapter, we look at the important contribution made by segmentation to a business plan that proved to be a critical turning point for a UK manufacturing company, which had enjoyed enormous success and prosperity but, within a very short time, found itself fighting for survival.

It can now be very tempting to simply focus on those segments obtaining the highest attractiveness ratings (despite the cautionary comments towards the end of Chapter 9), which could also be the chosen strategy of your competitors. This, however, fails to acknowledge that your company’s ability to be successful in each segment will differ according...

In this chapter, we discuss how to arrive at a definition of the market to be segmented and look at some examples which demonstrate the importance of successful segmentation. The chapter also presents a definition of segmentation before moving on to discuss a framework for looking at how companies currently define and segment their markets, some vi...

Chapter 11 defines what marketing objectives are and explains how to set them. The relationship between marketing objectives and corporate objectives is also shown. To assist in the setting of marketing objectives, there is a section on competitive strategies. This chapter also begins to provide the link between segmentation and marketing planning...

To conclude this phase of the segmentation process, the final clusters in Step 6 are individually checked against size, differentiation, reachability and company compatibility If they pass this ‘reality check’, they can then proceed into the second phase of the segmentation process.

Key account management is a natural development of customer focus and relationship marketing in business‐to‐business markets. It offers critical benefits and opportunities for profit enhancement to both sides of the seller/buyer dyad.This paper describes a framework for understanding the development of key account relationships. It has also incorpo...

The study of how organizations segment their markets has traditionally taken a prescriptive and analytical approach. More recently, a number of academics and practitioners have voiced concerns over the evident gap between how such concepts are viewed in theory and how they are applied in practice. These issues have already been raised in academic p...

Previous research with users of a decision support system for marketing planning generated a number of potential benefits and success factors for achieving them. Using a multiple‐case study design, these were tested in four organizations using a range of systems to assess the extent to which the previous results could be generalized. Benefits suppo...

This paper reviews the development of strategic marketing planning from the early 1960s to 1995. Whilst it focuses on the scientific planning model, which dominates research and teaching during this period, it also briefly reviews other planning models. In evaluating the legitimacy of the universal belief in the efficacy of marketing planning, a nu...

No planning procedure can predict the future with complete accuracy. None the less, those managing NHS trusts, like their counterparts in industry and commerce, must somehow try to anticipate it so as to plan appropriately. This is no easy task at the best of times, but during periods of rapid change and uncertainty it is even more difficult. Too m...

Responds to the recent criticism associated with marketing's poor contribution to business success. Reviews the state of marketing in British industry, drawing on previous research and continues by describing the major changes experienced in the business environment, arguing that the future of marketing depends on recognizing these trends and respo...

Few companies use a comprehensive marketing planning process, despite wide agreement on the benefits to be gained. This results from cognitive, procedural, resource, organizational, cultural, informational and environmental problems. While computers in marketing are mainly used for operational tasks, research in other domains suggests that decision...

A reply to a recently published report by Coopers & Lybrand, very critical of the state of marketing management in the United Kingdom.

Research, experience and intuition, all indicate that the dominant market leaders — the company that stands out above the rest — has significant advantages in the market which it dominates. These translate into the ability to manage the market and the competition and to return the highest profitability in both the short and long-term.

Chapters 3 and 4 analysed the different types of strategies that enable a firm to compete for the mainstream market and develop as a major force in the industry. In this chapter, attention is turned to niche marketing, where the focus remains narrow and specialised in one or perhaps two segments of the market. The company’s task is to develop a pos...

The previous five chapters of this book provide a basis for analysing competitive marketing strategies of businesses.

The banking industry is a good example of undifferentiated markets in which a number of large competitors exist, none of whom have a dominant share, but all of whom are seeking a leadership position.

The twenty-six cases in this book can be used in a variety of ways to enhance learning by the marketing strategy student and practitioner.

In some industries, a major new strategy has enabled a challenger to attack the largest shareholders in the market, to achieve a strong competitive position and in a few instances market leadership. To achieve this, a company must be aggressive, well focused on objectives and strategies and adopt the offensive attitudes noted in Section 2.

This book is about competitive advantage — establishing, building, defending and maintaining it — and the strategies required to do that in a competitive environment. What those strategies should be will depend upon an organisation’s existing competitive position, where it wants to be in the future, its capabilities and the competitive market envir...

Strategic marketing planning has never been the simple, step-by-step approach described so prolifically in prescriptive texts and courses. Reviews strategic marketing planning in the context of different modes of strategic planning. Defines strategic marketing planning, examines its role in an organization, reviews some of the techniques used in th...

This article explores why, given the acknowledged benefits companies can enjoy carrying out formalized marketing planning, most industrial companies still rely largely on forecasting and budgeting systems as their principal means of addressing the future. Ten barriers to the preparation and implementation of marketing plans are identified: 1. Confu...

Personal selling is still very effective. But despite more professional sales forces today they are badly hampered by poorly-conceived company marketing strategies. Malcolm McDonald advises that carefully-crafted courses for sales directors only can really improve their productivity and contribution to the company's total strategic direction.

This paper examines the marketing planning process of a number of British Companies. It finds that the companies who subscribe to what is described in the paper as a “complete marketing planning process”, are further along an organizational evolutionary development path than their semi‐planning and non‐planning counterparts. While the marketing pla...

This paper serves as a wide‐ranging review of why, given the acknowledged benefits to be enjoyed by companies carrying out formalised marketing planning, most industrial companies still rely largely on forecasting and budgeting systems as their principal means of addressing the future.It identifies ten distinct and major barriers to the preparation...

This paper describes a case history of the development of an Expert System in Strategic Marketing Planning codenamed EXMAR. It traces the evolution of the system from the formation of the DTI club two years ago to the launch of the prototype model. The paper outlines the technical and domain–specific obstacles encountered en route and how these wer...

In his introduction the author expresses surprise that such a potentially rich tool as the Directional Policy Matrix (DPM) appears to be used so infrequently in practice. Many academics share similar feelings about what they perceive as helpful devices or methods which should aid and improve managerial decision‐making. (Why, for example, don't mana...

With the economic rise of the Pacific-Rim countries, the introduction of economic and political liberalisation in Eastern Europe and the Soviet Union, and the onset of a Single Market in Europe, the Coming decades look set to be ones of great opportunity for international marketers. These trends have been widely covered in recent literature. An att...

After nearly a quarter of a century, Artificial Intelligence, in spite of all its promise, has made virtually no progress in the domain of marketing, and whilst most interested parties view it as a potentially powerful way of beating the competition, there are few products and no on-line systems available. This article explores why progress has bee...

Reviews development of marketing planning literature and the success of its prescriptive advice, based on an empirical study of marketing planning practices. The authors call for a change of perspective, from the present state of concentrating almost exclusively on the “medicine” rather than on the “patient”. Stresses the need to recognise that the...