Transcript MGT-519 STRATEGIC MARKETING

MGT-519
STRATEGIC MARKETING
AAMER SIDDIQI
LECTURE 5
RE-CAP
• Definition of Marketing
• 3 levels of Marketing
• Marketing a way of doing business
• Marketing as Strategy-(STP)
• Marketing Mix – 4 Ps
• The value of Marketing
• Needs, Utility, Exchange Relationships & Demand
• Understanding Needs, Wants and Demands
• The exchange process
• Utility
RE-CAP (CONT’D)
• Competitive advantage
– Porter’s Model
• Creation of Competitive advantage
– Roger’s 5 Adopter characteristics
• Implementation of Competitive advantage
– Porter’s value chain
– Porter’s 3 choices of strategic positioning
• Sustaining Competitive Advantage
• Porter’s 3 conditions
RE-CAP (CONT’D)
• Core competencies and capabilities
– 4 elements for developing strategy
(1) Portfolio of competencies
(2) Products based on competencies
(3) Continuous investment in core competencies or capabilities
(4) Caution: core competencies as core rigidities
• Resource-Based View of the Firm (RBV)
– RBV Framework
– Resources
– Collins and Montgomery 5 tests for a valuable resource
RE-CAP (CONT’D)
• Evolutionary change and Hyper competition
– Evolutionary change
• Competing on the Edge, Eisenhardt & Brown (1998)
– Hyper competition
• Game theory
• The Marketing Concept
– The Production Era
– The Institutional Period and Selling Orientation
– The Marketing Concept
– Relationship Marketing/ Supply Chain Era
– Value Chain Era
• Sales orientation
• Production orientation
• Product orientation
WHAT CAN BE MARKETED
• Goods: physical goods that can be seen and touched
– Having form and substance, e.g. book, a pen,
• Services: intangible items provided by other people, e.g
doctor,
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On purchase of a service don’t gain ownership
Goods and services not discrete categories
but a continuum
THE GOODS AND SERVICES CONTINUUM
• Marketers see relative goods/services composition of total
products
• Determining a product's position on the continuum helps spot
opportunities
• “Goods and services are the outputs offered by businesses to
satisfy the demands of consumer and industrial markets”
DIFFERENTIATION
OF GOODS AND SERVICES
• Differentiated on the basis of four characteristics
• Tangibility: – Goods are tangible products
– They have shape and can be seen and touched such as cars, clothing,
and machinery
– Services are intangible
– do not have physical presence; hair styling, pest control, repairing
• Perishability:
– Goods have some degree of durability beyond the time of purchase
– Services do not; they perish as they are delivered
DIFFERENTIATION
OF GOODS AND SERVICES (CONT’D)
• Separability:
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Goods can be stored for later use
production and consumption are typically separate
production and consumption of services are simultaneous
services and the service provider cannot be separated
• Standardisation:
– Quality of goods can be controlled through standardisation and
grading in the production process.
– The quality of services, is different each time they are delivered
MARKETER’S PERSPECTIVE ON GOODS & SERVICES
• Goods and services are both products
• Same set of principles and skills to market all products,
whether they are apples, oranges or haircuts
For example, a restaurant provides a physical good (prepared
food), but also provides services in the form of ambiance, the
setting and clearing of the table, waiting on table, etc
• To be competitive heavy reliance of services element with
goods
SERVICE DOMINANT LOGIC (SDL)
• Service Dominant Logic (SDL) approach to marketing
• Focuses on providing services with a good. Also called
Augmented Product
PRODUCT
• ‘Product’ as a bundle of attributes or characteristics, example
a bread
• Physical attributes provide different benefits to the buyer
• Attributes may fulfill 1 or more needs (physiological, social
etc)
• Product may have to satisfy many needs to be successful
THE TOTAL PRODUCT OFFERING
• The total package that makes up and surrounds the product
• Including all supporting features such as branding, packaging,
servicing and warranties
• Includes all elements of the marketing mix so that marketers
must design a complete, co-ordinated, cohesive and
congruent package
THE TOTAL PRODUCT OFFERING (CONT’D)
• TPO consists of four levels
1.
2.
3.
4.
The Core
The Basic product
The Augmented product
The Perceived product
SUMMARY (CONT’D)
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What can be marketed
The goods and services continuum
Differentiation of goods and services
Marketer’s perspective on goods & services
Service dominant logic (SDL)
Product
Total product offering
THANKYOU