Analysis for Strategic Marketing

Citation

Rich, M.K. (1998), "Analysis for Strategic Marketing", Journal of Business & Industrial Marketing, Vol. 13 No. 2, pp. 186-189. https://doi.org/10.1108/jbim.1998.13.2.186.1

This is the second of two reviews of books designed to move marketing from its historic “art” status to the current scientific approach required for survival in the marketplace today. The last review, Marketing Engineering: Computer‐Assisted Marketing Analysis and Planning, by Lilien and Rangaswamy, revealed their objectives as similar to those of our present authors, Rao and Steckel. Books should be evaluated on their own merits, free from comparison with other offerings that might appear as similar on the surface. Since no comparison was offered with the last review, the same courtesy will be extended to this effort.

To assist in a realistic evaluation of this work, a recent non‐traditional MBA graduate was asked to read it and indicate her reaction to its content. This will provide a practitioner’s viewpoint concerning the book’s viability as a resource in finding solutions for today’s marketing challenges. Her views of the work will be integrated with mine as various characteristics are analyzed. From an academic perspective, this work would seem to fit between a marketing research course and an advanced marketing management offering at the graduate level. Most universities might have difficulty finding a specific course for this work within an undergraduate marketing discipline although current trends in the field would dictate there is a need to extend beyond a basic marketing research course. This work would add such an extension by providing the student with a detailed discussion of proper research applications for various marketing information needs.

Overview of the book

The book (in paperback form) consists of eight chapters of strategic marketing material development and a final chapter of actual case examples. The 403 pages for chapters two through nine results in an average chapter length of 50 pages: somewhat long by textbook standards, but organized in such a manner as to accommodate easy absorption and written in a style that holds the interest of the reader. The first 17 pages, representing chapter one, is more of a positioning effort for the remainder of the work. The case examples in chapter nine are linked nicely to the early chapters and crystalize the reader’s understanding of the material. The conclusion of the book offers four complete cases to demonstrate various applications discussed previously in the material.

Specifically, the first chapter is somewhat brief compared to the subsequent offerings but its main purpose is only to help the reader understand the boundaries of strategic marketing and develop a classification system for various strategic situations. The first chapter also reviews basic judgmental biases that often exist within strategic marketing decisions while pointing out and explaining why a thorough analysis does not always lead to good outcomes. This chapter also provides an effective model for illustrating not only the framework of the book, but the basic properties surrounding strategic marketing. This model (Figure 1.5, page 18) links the chapters that discuss the concepts indicated in the diagram. As the model indicates, the text is structured around four key themes:

(1) the current marketplace;

(2) the company;

(3) forecasting; and

(4) resource allocation.

Chapter two asks, who are the potential customers? This is followed with chapter three addressing the question, are there any customers not being served adequately? Identifying potential competitors is the subject of chapter four while chapters five and six ask, what factors in the external environment influence how the firm will perform? Chapter seven analyzes the bases of a firm’s advantage over its competitors while chapter eight deals with how much emphasis to place on each market in which a firm participates. Chapter nine offers a series of actual case examples to further emphasize the points developed throughout the book. Finally, we are provided with four detailed cases (Regent Rubber Company, The US Athletic Footwear Industry with Reebok’s Marketing Strategy for the 1990s, The Compact Disk Market, and Xerox Corporation’s Customer Satisfaction Program) to further illustrate the points covered in the text. To assist in using the book as a reference and research work, a well developed name and subject index are included at the end.

An MBA graduate’s view

The MBA graduate found the first chapter easy to read (as well as the next two) and the material very comprehensible. The information was well organized and progressed in a logical sequence for her to follow. She appreciated the manner in which chapters were organized with terms and techniques being introduced in italics followed by a succinct definition which was backed up by examples and comments from the authors. She felt that the examples were generally familiar and helped in understanding how the techniques could be applied in actual practice. She felt that the frameworks and methodologies on identifying the competitor in chapter four were current yet the integration of basic concepts and research techniques using algebraic equations became somewhat confusing. From her perspective, the chapter seemed to jump into algebraic equations that were difficult to understand and their presentation became a distraction. She felt there was good explanation of the influence of market research but limited discussion on how these inputs and information supply marketing managers with the required information for strategic decision making. This resulted in the view that there was not sufficient information on practical application of the methodologies and frameworks to marketing practices. Her view was that the level of presentation in this chapter would be difficult for the undergraduate student to understand. She felt that chapters five and six covered the subject of the external environment in depth, examining the demographic, economic, technologic, political, and social factors’ effects on business. Her view was that the chapters could be easily adapted by current marketers and students. She felt that the chapters would assist in developing the ability to translate marketing research into useful information and the effect this information has on company decision making. She especially appreciated Appendix 5B with its exhaustive listing of information sources for marketing strategy analysis. Chapter seven addressed methods for a company to determine strengths and weakness of itself and competitors in various marketing segments of interest. She commented on how the authors developed this concept by applying previous information on the customer, competitor, and the environment as in information source to determine competitive advantage as well as the need to identify other elements of competitive advantage. The authors offered a variety of methods and sources, complete with checklists, to assist in identifying various forms of competitive advantage. She felt the use of the Xerox Customer Satisfaction Questionnaire helped in comprehending the concepts presented. Her evaluation of chapter eight was that it provided both mathematical and graphical portfolio approaches to the company’s allocation of resources in implementing a marketing strategy. She felt that it helped her to grasp the complexities of marketing strategies and the analysis necessary to understand their role in business. She summarized her views with a comment concerning the use of case scenarios. Their use in the early chapters aided her understanding of the material but their absence in later chapters was at the detriment of later comprehension.

A faculty member’s perspective

From an academic perspective, this work would be meaningful as a text since much of the information presented could be the basis for class discussion and further explanation by the instructor to reduce or eliminate the points of concern as expressed previously by the MBA graduate. The instructor could determine how much of the quantitative material the student would be required to absorb and recall since its elimination does not detract from the learning experience provided the class objective is more of a survey process of strategic marketing. Conversely, the amount of quantitative material presented is not sufficient for developing a marketing researcher in the strategic realm. For greater clarity of points presented in a given chapter, the authors have thoughtfully provided a total of 11 appendices to permit an instructor the option of pursuing specific issues in greater detail depending on the objective of the course and the demonstrated understanding of the class. These appendices vary from additional examples to explanations of mathematical properties. Personally, I found this work to be relatively easy to read with material being developed in a logical, thoughtful manner. The writing style held my interest and the examples given accomplished their purpose ‐ to enhance the reader’s understanding of the previous theoretical concepts. The more difficult and detailed materials were relegated to box displays, appendices, or end‐of‐text cases. The result was an insightful read of meaningful and relevant material. This book would be ideal for the “gut‐feel” marketing manager who recognizes that the marketplace demands more sophisticated methods for survival today and for academics desiring to better equip their students to meet the challenges that will confront them shortly after graduation.