Redefining Marketing by Creating Exceptional Value for Both Shareholders and Customers
EXECUTIVE SUMMARY
This report redefines marketing in terms of share holders and
customers as:
“Marketing is a management process that seeks to maximize return to
shareholders by developing and implementing strategies to build
customer relationships of trust with high value customers and creating
a competitive advantage.”
The report also tells us how value can be created for customers and
shareholders by using value based marketing principle and taking
Cadbury Schweppes as an example which became successful by creating
value proposition for both customers and shareholders. Cadbury
Schweppes followed the four principles by setting the right ambition,
distinctive advantage, selective resource allocation, finding win-win
for customer and shareholder.
Creating shareholder value is then essentially about building a
sustainable competitive advantage-a reason why customer prefer to buy
from one company rather then the other. The only route to more
shareholder value is to create more value for customers. The value to
customer is created by using value proposition which are Customer
Benefit- Customer must see value to them in their own terms, Unique-
Customer must recognize their benefit.
Profitable- The Company has to deliver at a profit; Sustainable- The
advantage should be difficult to copy.
The report also tells us how BCG matrix can be used as a guide for
companies to think about different investment needs and Ansoff model
to develop competitive strategies since they relate to actions
regarding products and markets which are to be implemented to achieve
the most specific objectives of the organization.
TABLE OF CONTENTS
INTRODUCTION.. ……………………………….4
FINDINGS. ……………………………………….5
I. New definition of marketing. ……………5
II. Setting the Right Ambition. ……………….8
III. Distinctive Advantage. ……………………8
IV. Selective Resource Allocation. ……………8
V. Increase Both Customer and Shareholder Value …..9
VI. Properties Of a Winning Value Proposition……....10
CONCLUSION.. 14
REFERECES. 15
APPENDIX.. 17
INTRODUCTION
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This report redefines marketing in terms of creating exceptional value
Lance, B. K., Irons, D. B., Kendall, S. J., and McDonald, L. L. (2001) An evaluation of
Note: This is accessible when one has internet access. This article was accessed through a database. The database site was very easy to use and it is reliable.
Marketing at the Vanguard Group. In light of an evolving market, faced with new competitors, and after a careful analysis of their current customers, the Vanguard Group (hereinafter referred to as “Vanguard”) realizes it must rethink its entire marketing strategy. However, in order to protect and leverage their competitive advantage, which is their low management fees, and to optimize the loyalty that their customers continuously demonstrate toward their organization, they must now target the most profitable segment for them, and develop the best way to serve and delight these customers. SITUATION ANALYSIS Highlighted SWOT Strengths Low fees strategy - a good idea.
also point out that: “Literature reviews helps to develop and expand your research ideas, and although you may have some knowledge of your research topic, the literature review ensures you are familiar with recent developments and have a complete understanding of the relevant topics” (Hair et al, 2007, p.94). Even though we already have some knowledge about GBR, a literature review has helped us with expanding our ideas about what areas we needed to focus on, and what to include in the thesis. And in addition we also discovered a great deal of significant material that became crucial for the research.
Sroufe. L. A., Egeland, B. E., Carlson, E. A., & Collins, W. A. (2005). The development of the
There are so many marketing techniques that companies use in today’s world. There are also many competitions that companies face because of the advancement of marketing and different kind of brands. Old spice does a great job advertising and campaigning by using classical conditioning. Old Spice is an American brand that males use for grooming, they do a great job marketing the product and presenting them to consumers. Classical conditioning is when theorists teach either animal or human certain behaviors passively through repetition. After the theorist teach the animals, the theorist measure and see what the response. One of the most important thing about classical conditioning is to see something repetitively, and learning how to behave. Old Spice uses classical conditioning to influence consumers’ attitude because it shows the commercials repetitively. Classical conditioning also involves unconditioned stimulus, conditioned stimulus, conditioned and unconditioned response. Old spice’s commercials have everything included. Response campaign was a huge success because it involved everyone; it included mass media such as TV, print and digital ads.
Introduction The Coca-Cola Company was founded in 1892. Since its inception, the organization has seen a steady increase in its market share over the years, and to this day has operations in over 200 countries worldwide. To achieve such success in its competitive market, Coca-Cola has employed sound strategies that have helped it become among the leaders in its industry. The Coca-Cola Company utilizes Market Based Management (MBM) techniques as well as Value Driven Management (VDM) techniques within the organization and in its market to help the firm sustain its stronghold in the market. Market Based Management is premised upon a free market system, as described by Jones and George (2014).
An outlet store is a retail channel which allows the manufacturers to sell stocks directly to consumers (Wikipedia,2013). Although people may hold the misperception that products in outlet stores do not have the same quality as good as those sold in the department store, a research conducted by Fowler and Clodfelter (2001) indicates that besides the prices, there are hardly any differences between products sold in the two channels.
Recommendations to achieve a sustained competitive advantage: Online, mobile, and store purchase will certainly increase customer traffic with the online and store combinations gives Target Corporation with a best possible low-cost price. A best-cost provider strategy allows Target to position itself and compete with low-cost providers such as Walmart. In addition, it employs a competitive strategy with a designer label along with superior supply chain, increased operational capabilities, and skilled employees. . The strategy of sending coupons are huge for a customer, so increase discount based on their purchase history and use the store brand credit card to attract more customers.
Marketing is not a static construct, but it grows and develops over time to become what is known as marketing today. “The marketing revolution divides neatly into four separate eras’, eras’ which parallel rather closely the classic pattern of development in the marketing revolution.” (Keith, 1960). The first of these 4 eras was until the 1930’s and was production and profit orientated, and are considered to be outdated. During this era “the new product decision was product oriented not marketing orientated.” (Keith, 1960). “The second era was a sales oriented era, whereby marketing was seen as a series of activities designed to produce profit through ascertaining, creating, stimulating, and satisfying the needs/wants of a selected segment of the market.” (Eldridge, 1970, p. 4). The 3rd and 4th eras are a representation of what
Compare and contrast two marketing strategies: 4Ps and value approaches to marketing. The 4Ps approach to marketing was introduced in 1950s and is now viewed as a traditional approach to marketing. Unlike the value approach, which is more focused on delivering value to a fantastic read the customer, the 4Ps approach is more focused on the product itself.
In this essay I will describe the main characteristics of CBT, explore the advantages and disadvantages of using CBT, different points of view regarding this model and a brief description of my practice using the skills gained in preparation for live assessments.
The findings are then summarised and accordingly stated with the help of standard methodologies which are then concluded providing with the various limitations and the recommendations.
Marketing is a fundamental aspect of all businesses, whether they are set out to make a profit, or charitable organisations - they will have to carry out marketing research of some description. It has been described as being, “the management process responsible for identifying, anticipating and satisfying customer requirements profitably.” (Chartered Institute of Marketing) This essay will explore the role of marketing in a marketing oriented business and different aspects of the external environment that a smartphone company should be aware of. The points raised throughout will be supported using relevant journals, textbooks and newspaper articles.