MGT-519 STRATEGIC MARKETING AAMER SIDDIQI

LECTURE 5

R E - 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

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 R E - CAP (C ONT ’ 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 R E - CAP (C ONT ’ 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 R E - CAP (C ONT ’ D )

W HAT CAN BE M ARKETED 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, – On purchase of a service don’t gain ownership Goods and services not discrete categories but a continuum

T HE 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”

D IFFERENTIATION OF G OODS AND S ERVICES 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

Separability: – 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 D IFFERENTIATION OF G OODS AND S ERVICES (C ONT ’ D )

M ARKETER ’ S P ERSPECTIVE ON G OODS & S ERVICES 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

S ERVICE D OMINANT L OGIC (SDL) Service Dominant Logic (SDL) approach to marketing Focuses on providing services with a good. Also called Augmented Product

P RODUCT ‘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

T HE T OTAL P RODUCT O FFERING 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

TPO consists of four levels 1.The Core 2.The Basic product 3.The Augmented product 4.The Perceived product T HE T OTAL P RODUCT O FFERING (C ONT ’ D )

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 S UMMARY (C ONT ’ D )

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