Strategic Marketing
LECTURE -1 (MARKETING IN THE NEW ECONOMY)
The Commodity Hell
Starbucks experience
Zong
Challenges and Opportunities
In the New Economy
Power Shift to Customers ( e.g. Reviews, Feedback.)
Massive Increase in Product Selection ( e.g. Online Retailing)
Audience and Media fragmentation ( e.g. social media) Easier to target and segment
Changing Value Propositions (e.g. Amazon Kindle)
Shifting Demand Patterns (e.g. Netflix)
Privacy, Security, and Ethical Concerns (e.g. PayPal)
Unclear legal Jurisdiction (e.g. for online transactions)
Discussion Question
The fact that customers have more power is one of the
major shifts taking place in the new economy. In what ways
have you personally experienced this shift in power? Is this
shift uniform across all industries and markets? How so?
Basic Marketing Concept
Marketing (AMA definition):
“Marketing is an organizational function and a set of
processes for creating, communicating, and delivering
value to customers and for managing customer
relationships in ways that benefit the organization
and its stakeholders”
Basic Marketing Concepts
Market:
◦ A collection of buyers and sellers
Marketspace:
◦ Electronic marketplaces that are not bound by time or space
Metamarket:
A cluster of closely related goods and services that centre around a specific consumption activity
Metamediary:
Provides a single access point where buyers can locate and contact many different sellers in the
metamarket. E.g. Ebay, Alibaba
What is Exchange?
Exchange:
Process of obtaining something of value by offering something in return
Five Conditions for Exchange:
(1) There must be at least two parties to the exchange.
(2) Each party has something of value to the other party.
(3) Each party must be capable of communication and delivery.
(4) Each party must be free to accept or reject the exchange.
(5) Each party believes it is desirable to exchange with the
other party.
What is a Product ?
Product:
◦ Something that can be acquired via exchange to satisfy a need or a want.
◦ Goods ( tangible)
◦ Services (intangible)
◦ Ideas (issues aimed at promoting a benefit for customer)
◦ Information (e.g. customer review websites)
◦ Digital Products (tangible/intangible)
◦ People (such as; celebrities)
◦ Places
◦ Experiences and Events (Disney, Universal studios)
The Concept of Utility
Utility:
◦ Ability of a product to satisfy a customer’s desires.
Five Types of Utility:
◦ (1) Form Utility - Products high in form utility have attributes or features that set them apart from the
competition. For example ?
◦ (2) Time Utility - Products high in time utility are available when customers want them.
◦ (3) Place Utility - Products high in place utility are available where customers want them.
◦ (4) Possession Utility - Possession utility deals with the transfer of ownership or title from marketer to
customer. Combining supplemental services with tangible goods to increase possession utility.
◦ (5) Psychological Utility - Products high in psychological utility deliver positive experiential or
psychological attributes that customers find satisfying. Such as; sporting events.
Discussion Question/Group activity
Through exchange, marketing creates four different types of utility for customers. Is it possible
to excel in all four types of utility? Consider a case of car industry.
Major Marketing Activities and
Decisions
Strategic Planning (Strategy and Tactical Planning)
Social Responsibility and Ethics
Research and Analysis
- Internal Analysis
- Competitive Intelligence
- Environmental Scanning
- Situation Analysis
Developing Competitive Advantage
Major Marketing Activities and
Decisions
Marketing Strategy Decisions
- Market Segmentation and Target Marketing
Product Decisions
- Product positioning (concept of customer perception)
Pricing Decisions
- Leads to revenue and profit
- Directly connected to customer demand
- Easy to change
- Major quality cue for customers
Major Marketing Activities and
Decisions
Distribution and Supply Chain Decisions
Promotion Decisions
- Integrated Marketing Communications (IMC)
Implementation and Control
- Marketing Implementation
Social Responsibility and Marketing Ethics
Developing and Maintaining Customer
Relationships
.
Questions
