Who is Trap-Ease America’s competition? placed advertising in Good Housekeeping (after all, the trap had
5. Who is Trap-Ease America’s competition? placed advertising in Good Housekeeping (after all, the trap had
6. How would you change Trap-Ease’s marketing strategy? What earned the Good Housekeeping Seal of Approval) and in other
kinds of control procedures would you establish for this strategy?
Part 1: Defining Marketing and the Marketing Process (Chapters 1–2) Part 2: Understanding the Marketplace and Consumers (Chapters 3–6) Part 3: Designing a Customer-Driven Strategy and Mix (Chapters 7–17) Part 4: Extending Marketing (Chapters 18–20)
3 the basic concepts of market- ships. To develop effective marketing strategies, you must first under-
Analyzing the Marketing
Environment
Chapter Preview threats, and affect the company’s ability to build customer relation-
In Part 1, you learned about
ing and the steps in the marketing process for building profitable rela- stand the environment in which marketing operates. tionships with targeted consumers. In Part 2, we’ll look deeper into the
We start by looking at an American icon, Xerox. A half-century first step of the marketing process—understanding the marketplace
ago, this venerable old company harnessed changing technology to and customer needs and wants. In this chapter, you’ll see that market-
create a whole new industry—photocopying—and dominated that in- ing operates in a complex and changing environment. Other actors in
dustry for decades. But did you know that, barely a decade ago, Xerox this environment—suppliers, intermediaries, customers, competitors,
was on the verge of bankruptcy? Don’t worry, the company is once publics, and others—may work with or against the company. Major
again sound. But Xerox’s harrowing experience provides a cautionary environmental forces—demographic, economic, natural, technologi-
tale of what can happen when a company—even a dominant market cal, political, and cultural—shape marketing opportunities, pose
leader—fails to adapt to its changing marketing environment.
Xerox: Adapting to the Turbulent Marketing Environment
X generic for copying (as in “I’ll Xerox this for you”). Through the competitors. Instead of selling copiers to equipment purchasing
erox introduced the first plain-paper office copier in Frankfurt, weave them into colorful, customized showpieces in
50 years ago. In the decades that followed, the company San Francisco, and print them on demand in London—even alter- that invented photocopying flat-out dominated the in-
ing for American spelling.
dustry it had created. The name Xerox became almost As digital technology changed, so did Xerox’s customers and
years, Xerox fought off round after round of rivals to stay atop the managers, Xerox found itself developing and selling document fiercely competitive copier industry. In 1998, Xerox’s profits were
management systems to high-level information technology man- growing at 20 percent a year, and its stock price was soaring.
agers. Instead of competing head-on with copy machine competi- Then things went terribly wrong for Xerox. The legendary
tors like Sharp, Canon, and Ricoh, Xerox was now squaring off company’s stock and fortunes took a stomach-churning dive. In
against information technology companies like HP and IBM. only 18 months, Xerox lost some $38 billion in market value. By
Xerox’s large and long-respected sales force—made up of mid-2001, its stock price had plunged from almost $70 in 1999 to
people in toner-stained shirts trained to sell and repair copy under $5. The once-dominant market leader found itself on the
machines—simply wasn’t equipped to deal effectively in the brink of bankruptcy. What happened? Blame it on change or—
brave new world of digital document solutions. Xerox, the rather—on Xerox’s failure to adapt to its rapidly changing mar-
iconic “copier company,” just wasn’t cutting it in the new dig- keting environment. The world was quickly going digital, but
ital environment. Increasingly, Xerox found itself occupying Xerox hadn’t kept up.
the dusty and dying “copy machine” corner of the analog In the new digital environment, Xerox customers no longer
office.
relied on the company’s flagship products—stand-alone copiers— Since those dark days on the brink, however, Xerox has to share information and documents. Rather than pumping out
rethought, redefined, and reinvented itself. The company has and distributing stacks of black-and-white copies, they created
undergone a remarkable transformation. Xerox no longer de- digital documents and shared them electronically. Or they popped
fines itself as a “copier company.” In fact, it doesn’t even make out copies on their nearby networked printer. On a broader level,
stand-alone copiers anymore. Instead, Xerox bills itself as a lead- while Xerox was busy perfecting copy machines, customers were
ing global document-management and business-process tech- looking for more sophisticated “document management solu-
nology and services enterprise. It wants to help companies and tions.” They wanted systems that would let them scan documents
people “be smarter about their documents.”
Parts
» | Marketing: Creating and Capturing Customer Value 3
» | Marketing: Creating and Capturing Customer Value 11
» | Marketing: Creating and Capturing Customer Value 13
» | Marketing: Creating and Capturing Customer Value 25
» | Marketing: Creating and Capturing Customer Value 29
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 37
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 41
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 43
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 51
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 55
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 57
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 63
» | Analyzing the Marketing Environment 65
» | Analyzing the Marketing Environment 71
» | Analyzing the Marketing Environment 73
» | Analyzing the Marketing Environment 77
» | Analyzing the Marketing Environment 79
» | Analyzing the Marketing Environment 81
» | Analyzing the Marketing Environment 85
» | Analyzing the Marketing Environment 87
» | Analyzing the Marketing Environment 89
» | Managing Marketing Information to Gain Customer Insights 97
» | Managing Marketing Information to Gain Customer Insights 99
» | Managing Marketing Information to Gain Customer Insights 103
» | Managing Marketing Information to Gain Customer Insights 109
» | Managing Marketing Information to Gain Customer Insights 111
» | Managing Marketing Information to Gain Customer Insights 113
» | Managing Marketing Information to Gain Customer Insights 115
» | Managing Marketing Information to Gain Customer Insights 127
» | Managing Marketing Information to Gain Customer Insights 131
» | Consumer Markets and Consumer Buyer Behavior 133
» | Consumer Markets and Consumer Buyer Behavior 137
» | Consumer Markets and Consumer Buyer Behavior 141
» | Consumer Markets and Consumer Buyer Behavior 143
» | Consumer Markets and Consumer Buyer Behavior 159
» | Consumer Markets and Consumer Buyer Behavior 163
» | Business Markets and Business Buyer Behavior 165
» | Business Markets and Business Buyer Behavior 175
» | Business Markets and Business Buyer Behavior 179
» What is Eaton’s value proposition?
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 189
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 193
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 197
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 203
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 205
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 207
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 209
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 211
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 213
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 219
» | Products, Services, and Brands: Building Customer Value 223
» | Products, Services, and Brands: Building Customer Value 225
» | Products, Services, and Brands: Building Customer Value 229
» | Products, Services, and Brands: Building Customer Value 237
» | Products, Services, and Brands: Building Customer Value 245
» | Products, Services, and Brands: Building Customer Value 247
» | Products, Services, and Brands: Building Customer Value 249
» | Products, Services, and Brands: Building Customer Value 251
» | Products, Services, and Brands: Building Customer Value 257
» | New Product Development and Product Life-Cycle Strategies 259
» | New Product Development and Product Life-Cycle Strategies 271
» | New Product Development and Product Life-Cycle Strategies 273
» | New Product Development and Product Life-Cycle Strategies 279
» | New Product Development and Product Life-Cycle Strategies 281
» | Pricing: Understanding and Capturing Customer Value 289
» | Pricing: Understanding and Capturing Customer Value 291
» | Pricing: Understanding and Capturing Customer Value 295
» | Pricing: Understanding and Capturing Customer Value 299
» | Pricing: Understanding and Capturing Customer Value 305
» | Pricing: Understanding and Capturing Customer Value 307
» | Marketing Channels: Delivering Customer Value 339
» | Marketing Channels: Delivering Customer Value 347
» | Marketing Channels: Delivering Customer Value 351
» | Marketing Channels: Delivering Customer Value 367
» | Retailing and Wholesaling 373
» | Retailing and Wholesaling 377
» | Retailing and Wholesaling 379
» | Retailing and Wholesaling 393
» | Retailing and Wholesaling 395
» | Retailing and Wholesaling 397
» | Retailing and Wholesaling 401
» | Retailing and Wholesaling 405
» | Communicating Customer Value: Integrated Marketing Communications Strategy 407
» | Communicating Customer Value: Integrated Marketing Communications Strategy 411
» | Communicating Customer Value: Integrated Marketing Communications Strategy 413
» | Communicating Customer Value: Integrated Marketing Communications Strategy 415
» | Communicating Customer Value: Integrated Marketing Communications Strategy 429
» | Communicating Customer Value: Integrated Marketing Communications Strategy 433
» | Advertising and Public Relations 435
» | Advertising and Public Relations 439
» | Advertising and Public Relations 441
» | Advertising and Public Relations 443
» | Advertising and Public Relations 445
» | Advertising and Public Relations 447
» | Advertising and Public Relations 449
» | Advertising and Public Relations 453
» | Personal Selling and Sales Promotion 463
» | Personal Selling and Sales Promotion 469
» | Personal Selling and Sales Promotion 471
» | Personal Selling and Sales Promotion 481
» How is the sales force at Nestlé Waters structured? outsells its top competitors.
» | Direct and Online Marketing: Building Direct Customer Relationships 495
» | Direct and Online Marketing: Building Direct Customer Relationships 499
» | Direct and Online Marketing: Building Direct Customer Relationships 507
» | Direct and Online Marketing: Building Direct Customer Relationships 509
» | Direct and Online Marketing: Building Direct Customer Relationships 515
» | Direct and Online Marketing: Building Direct Customer Relationships 525
» | Creating Competitive Advantage 527
» | Creating Competitive Advantage 529
» | Creating Competitive Advantage 537
» | Creating Competitive Advantage 549
» | The Global Marketplace 551
» | The Global Marketplace 553
» | The Global Marketplace 561
» | The Global Marketplace 573
» | Sustainable Marketing: Social Responsibility and Ethics 581
» | Sustainable Marketing: Social Responsibility and Ethics 583
» | Sustainable Marketing: Social Responsibility and Ethics 587
» | Sustainable Marketing: Social Responsibility and Ethics 595
» | Sustainable Marketing: Social Responsibility and Ethics 603
» | Sustainable Marketing: Social Responsibility and Ethics 605
» | Marketing by the Numbers A21
» | Marketing by the Numbers A27
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