代写 assignment MKTG 1501

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  • 代写 assignment  MKTG 1501

    MKTG 1501
    Week 2
    Creating Value and
    Competitive Advantage
    After today you should be able to…
    1. Explain how customer value is delivered.
    2. Define customer value, customer satisfaction,
    and customer retention as the central concepts in
    delivering value to customers.
    3. Discuss competitor analysis.
    4. Explain the fundamentals of competitive
    strategies and competitive positions.
    MKTG1501 - Week 2: Creating Value and Competitive Advantage  2
    Recapping from last week:
    MARKETING CONCEPT
    • Holds the key to achieving organisational goals.
    • Places the consumer as the focal point.
    Has four premises
    1. Consumer orientation
    2. Continuous marketing research
    3. All organisational activities and strategies are
    integrated
    4. Aims to convert satisfied consumers into loyal
    consumers.
    3  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Is marketing just another
    word for selling?
    4
    Inside-out approach
    Focuses on existing
    products and heavy selling.
    The aim is to sell what the company
    makes, rather than making what
    the customer wants
    MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Outside-in approach
    Focuses on the customer
    Alternative management
    philosophies and cultures
    • The production philosophy.
    • The product philosophy.
    • The selling philosophy.
    What are some of the issues with these
    philosophies?
    5  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Delivering value to customers
    • Market-oriented culture is the overarching culture
    that focuses on markets – the belief that the
    purpose of business is to create superior customer
    value.
    Strong market-oriented culture = Strong business
    performance / profits.
    Strong market-oriented culture is reflected by:
    1. Deep understanding of customers
    2. Awareness and knowledge of competitors
    3. Strong collaboration across all functions of the firm
    4. Leadership actions that focus on the customer
    6  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Customer value
    Customer Value: The difference between the
    benefits the customer gains from owning and using a
    product and the cost of obtaining the product.
    代写 assignment  MKTG 1501
     
    Example – Buying a Toyota Prius
    Benefits
    low running costs, fuel efficiency,
    compact size, warm-fuzzy feeling, socially
    responsible image, freedom to travel at
    any time, privacy & safety by avoiding
    public transport.
    These benefits (may) outweigh the
    costs of obtaining the product.
    $52,000
    $23,750
    OR
    Customers are value maximisers
    • Customers will buy from the firm that they believe can
    provide them with the highest customer delivered value
    (or the difference between total customer value and total
    customer cost).
    • When customers decide on the value they get from a
    product or service, they will only consider the features that
    are important to them.
    • Customers’ perceptions of the value of a product or service
    is a strong predictor of purchase and their experience with
    the product will influence future choice.
    • An important part of the experience is customer
    satisfaction.
    8  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    So is value equal to price?
    Your turn… this is your turn to talk!
    Write down your last major product purchase
    and discuss with your colleague next to you.
    1. Did you buy the cheapest alternative? Why or
    why not?
    2. What did you use to compare the value between
    the product you actually bought and the
    alternatives?
    3. Are you satisfied with your purchase?
    4. Did you think about whether you actually made
    the best choice after you got home?
    9  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    How much for a coffee?
    Rank these three coffees in order of quality.
    10  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Is it better coffee or do customers just think it is
    better? How do you value these?
    Do customers value  ALL the features
    of a product?
    • Features = attributes of a product
    • Benefits = are attributes you will use
    Which provides the value for the customer?
    Think about all the features your phone has:
     How many do you actually use?
     How many do you see as a benefit?
     Why did you buy all those extra features?
     Were you ripped off?
     Would you buy the product again?
    11  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Quality / Customer satisfaction:
    Are they the same?
    Take a look at these
    restaurants
    Would these be
    quality restaurants?
    Are you satisfied
    with the dining
    experience?
    12  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Customer satisfaction
    Customer satisfaction is the customer’s conscious evaluation of a
    product or service feature, or of the product or service itself.
    Satisfaction judgments are influenced by many factors:
    13  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Generally, customer satisfaction
    depends on the product’s performance
    relative to the buyer’s expectations.
    • Past experiences
    • The information and promises
    made by marketing organisations
    • Company’s competitors or
    competing products
    • What seems like fair value
    Customer satisfaction
    The extent to which a product’s perceived
    performance matches a buyer’s expectations:
    • If a product exceeds our expectations, we are
    satisfied with it. If the product fails to meet our
    expectations, we are dissatisfied.
    • It is important for companies to ensure that
    customer expectations are matched by the
    performance of products or services.
    • Satisfaction is closely linked to quality.
    Do you need to experience the product to be
    satisfied with it?
    14  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Complex mix buyer needs
    15  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Buyers’
    Level of
    Satisfaction
    63% Level of Influence
    On Buyers’ Satisfaction
    37% Level of Influence
    On Buyers’ Satisfaction
    Functional
    Attributes
    Psychological
    Attributes
    “Must-Haves”
    “Delighters”
    Meeting Standards
    Operating trouble free
    Performing as expected
    Product uniformity
    Eager to satisfy
    Ability to respond to requests
    Consideration for the customer
    Being innovative
    Measuring customer satisfaction
    and loyalty
    Tools for assessing, measuring and tracking customer
    satisfaction and loyalty are continually increasing in
    sophistication and may include:
    • Customer satisfaction and loyalty surveys.
    • Complaint and suggestion systems.
    • Mystery shopping and customer interviews.
    • Lost customer analysis.
    16  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Retaining customers by building
    customer relationships
    Totally satisfied customers are more likely to be loyal
    customers.
    BUT
    17  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    1. The relationship between
    satisfaction and loyalty
    varies across industries and
    competitive situations.
    2. Satisfaction alone does
    not achieve loyalty.
    Relationship marketing
    • As companies shift their focus
    from single sales encounters,
    they are beginning to develop
    strategies and actions that recognise how
    ongoing relationships contribute
    to customer retention.
    • The focus is on retaining profitable
    customers often known as
    ‘key customers’ and holding their
    loyalty by totally satisfying them.
    • Some customers do not want a relationship with a
    company, for example, in the case of impulse buying.
    18  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Relationship levels
    19  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    It is possible to identify five different levels of
    relationships that can be formed with customers who
    have purchased a product.
    Partnership
    Proactive
    Accountable
    Reactive
    Basic
    Relationship ties:  Financial benefits
    • Financial benefits are one method that can be
    used to assist in developing closer relationship
    levels with consumers.
    • An organisation might offer consumers financial
    benefits to build closer relationships – e.g.
    Loyalty programs
    • Cafes
    • Woolworths
    • Frequent Flyers
    20  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Relationship ties:  Social benefits
    • As many financial benefits can be imitated by
    competitors, a company may choose to focus on
    adding social benefits.
    • An organisation that does this will choose to focus on
    the social bonds with customers by learning about
    their customers’ needs and then individualising these
    and personalising their products and services.
    • For example, if you have a preference for a window
    seat, the airline may offer you one when it
    distinguishes a pattern in your seating allocation.
    21  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Relationship ties:  Structural ties
    • Not every organisation wants close ties with
    consumers
    • Structural ties refer to the links that an
    organisation may provide to a consumer to
    assist with its own business, such as software
    for inventory or orders. Customers may be able
    log into a website to check their order status.
    • How organisations use each of these methods
    will vary depending on how close they want to
    be with their customers.
    22  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Retention and customer profitability
    Marketing is the art of attracting and keeping
    profitable customers.
    • 20-40% of customers do not represent profitable
    sales (So why keep them?)
    • Many new companies now view marketing as an
    investment rather than an expense, which has
    resulted in the development of better measures of
    return on marketing investment (ROMI or
    marketing ROI).
    23  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Customer lifetime value
    • Customer lifetime value is the amount by which
    revenues from a given customer over time will exceed
    the company’s costs of attracting, selling and servicing
    that customer.
    • Note how the definition highlights lifetime revenues
    and costs, not profit from a single transaction.
    Does this mean that a long-term customer
    is more viable than a short term one?
    24  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Strategies for competitive advantage
    Competitive advantage = satisfying target customers
    needs better than your competitors
    1. First step: competitor analysis
    2. Then develop competitive marketing strategies
    25  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Competitor analysis
    Who are your competitors?
    • Direct competitors e.g. Pepsi/Coke
    • Indirect competitors e.g. Pepsi/Mt Franklin
    What are their objectives?
    • Why are Coles selling milk for $1/litre
    http://www.youtube.com/watch?v=bvaevUxtcO8
    Identify competitors strategies
    • What strategies do Target have?
    • Are they the same as David Jones?
    Assess their strengths and weaknesses
    26
    What drives industry competitiveness?
    27
    Selecting competitors to attack and to avoid
    • Strength of competitors
    • Customer Value Analysis
    28  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Competitive Analysis (taken from sample marketing plan on Blackboard)
    Competitor  House of
    Fabrics
    Warehouse
    Fabrics
    JoAnn's  Interior
    Designers
    Design
    Specific Ltd
    Product and/or Service
    Quality  7  8  6  2  6
    Selection  6  7  3  1  8
    Price  5  8  2  2  8
    Location and Physical Appearance
    Visibility  8  7  8  3  6
    Convenience Factors  6  6  6  3  8
    Added Value Factors
    Pre and Post Sales Service  5  4  5  8  9
    Experience  4  4  4  7  7
    Expertise  6  5  6  9  8
    Reputation  2  8  6  8  8
    Image  3  3  3  6  8
    Other Marketing Activities
    Established Sales Channels  6  6  4  3  6
    Advertising  6  7  4  5  7
    Total  78  87  69  68  112
    Competitive strategies
    29  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    1. Overall cost leadership
    • Can offer lower price than competitors
    e.g. Coles current strategy
    2. Differentiation
    • Concentrate on highly differentiated products
    e.g. Apple ipad
    3. Focus
    • Concentrate on a small piece of the
    market
    e.g. Shannons Motoring Insurance
    Supermarket strategies:
    30  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Cheap prices vs. Quality
    31  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Benchmarking
    Fuji Xerox  iPhone
    New Entries Brand Value 2013
    Brand Top 10 2012
    31
    32
    The Generic Value Chain (Porter, 1985)
    Competitive positions
    Market leader
    • Largest market share.
    • Leads others in price changes, new products,
    promotional spend
    Market challenger
    • Usually 2 nd biggest firm on the market
    • Fighting hard to increase market share
    Market follower
    • Wants to hold market share without rocking the boat
    Market nicher
    • Serves small segments not served by other firms
    33  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Competitive positions
    MARKET LEADER
    • Holds the largest market share.
    • Typically leads other firms in price changes, new product introductions, distribution coverage
    and promotion spending.
    • A leader should constantly maintain a vigil on its competitors since they try to challenge its
    strengths or try to take advantage of its weaknesses!
    To remain the number one necessitates three actions:
    1. Expanding the total market: Can expand market share by developing new users, new uses
    and more usage of its products. This can be either increasing usage applications, or increasing
    usage frequency (e.g. hand sanitisers: not just in bathroom but in kitchen, around play areas,
    office reception desks).
    2. Protecting market share: Leaders can protect their market share from competitors by working
    on their weaknesses, keeping costs down and prices in line with consumer’s perceived value
    of the brand. They should be involved in continuous innovation.
    3. Expanding market share: Market leaders should increase their market share to retain their
    supremacy. For example a 1 % growth of market share in soft drinks is worth $500 million!
    34  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Competitive positions
    MARKET CHALLENGER
    A market challenger tries aggressively to expand market share by attacking the market. Firms
    that are second and third or lower in an industry usually adopt market challenger strategies.
    • Can attack the market leader - a high risk with potentially high-gain strategy. Suitable if the
    leader is not serving the market well.
    • Success requires some kind of sustainable competitive advantage over the leader- a cost
    advantage leading to lower prices or the ability to provide better value at a premium price.
    For example, Samsung entered the market late, as a challenger, but quickly became the market
    leader.
    • Challengers can also attack firms of its own size or smaller, local and regional firms to increase
    market share and build incremental market dominance.
    • Market challengers may launch a full frontal attack, matching the competitor’s product,
    advertising, price and distribution efforts. They attack the competitor’s strengths rather than
    weaknesses.
    • Can also make an indirect attack at the competitor’s weaknesses or gaps in the market
    coverage. It might target new geographic markets or poorly served segments.
    35  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Competitive positions
    MARKET FOLLOWER
    Allows dominant firms to lead the way and keeps close tabs on the leader’s
    activities in order to copy (or improve) upon the leader's product releases
    and marketing efforts
    Market follower firms fall into one of three types:
    1. The cloner closely copies the leader’s products, distribution, advertising
    and other marketing moves
    2. The imitator copies some things from the leader but maintains some
    differentiation in terms of packaging, advertising, pricing and other factors
    3. The adaptor builds on the leader’s products and marketing programs,
    often improving them
    36  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    Competitive positions
    MARKET NICHER
    • Slow but growing rate of sales and market share
    • Relatively low market impact, aims to attract minimal attention of competition in
    the market
    • Gets to know the target group so well it can meet its needs better than other
    firms that casually sell to this niche
    Areas in which to niche:
    37  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    End-use specialist  Customer size specialist
    Specific customer specialist  Geographical specialist
    Product or feature specialist  Quality—price specialist
    Service specialist
    Summary of key points from today
    • Customers base their choices as to what they buy and what
    they will re-buy on their perceptions of quality, value and
    service.
    • Customer satisfaction is the customer’s fulfilment response
    regarding a product or service feature of the product or service
    itself.
    • Delivery of value requires a series of activities inside and
    outside the company.
    • A marketing system should sense, serve and satisfy consumer
    needs and improve the quality of consumers’ lives.
    • Firms will always have competitors and so must develop
    strategies to suit their situation and potential reactions.
    • Firms will take different positions in the market depending on
    market share or target market.
    38  MKTG1501 - Week 2: Creating Value and Competitive Advantage
    代写 assignment  MKTG 1501