ORDER MARKETING MANAGEMENT PLAN

ORDER MARKETING MANAGEMENT PLAN

Module 8 Discussion Forum –
Question: Discuss the phrase “let the buyer beware” and its relationship to an ethical marketing perspective.

Instructions:

1.The required length for your original posting is 400 above words, and 2 replies for your classmate discussions, replies should be a minimum of 250 words. (Classmate discussions are provided below)

2.APA format

3. Two references must under discussion

Materials

Below is the Textbook PDF format

Reading Assignment

Read Chapter 9

Supplemental Resources
Designing a social media marketing campaign- https://www.socialmediaexaminer.com/social-media-campaign-elements/

Classmate 1:

by Sanghamitra Shirolkar – Sunday, 9 August 2020, 5:57 PM

Number of replies: 0

Displaying is from an overall perspective an ethical activity that hopes to find ways to deal with satisfy customers demands and needs, thusly stretching out their chance and duty to their social accomplishment. In this remarkable circumstance, the articulation, “let the purchaser be cautious” implies that the customer of express things will when all is said in done predict the peril of dissatisfaction of what they are going to purchase to meet the acknowledged wants or may considering the way that the thing has a couple of break provisos.

As communicated by Moser, (2016) a social and good system of advancing oversees concentrating tries of attracting customers, who need to have an advantageous result in their purchasing rehearses. It incorporates with all the speculators of the business, with a ultimate objective to propel a strong advancing approach. Henceforth, the articulation is stressed to the theory of ‘stipulation emptor’ where the customers can’t recover from the setback realized in the wake of purchasing the thing and organization that doesn’t fits in to their longing. Moreover, it will in general be portrayed as a chief model in return or a lawfully restricting appreciation among customers and trader.

The standard is incepted basically from the conflicting information that occurs between a customer and a seller. This information is deceitful one as the business own will by and large have a bigger number of information about the thing than the customers. Along these lines, the customer successfully acknowledge the peril of likely deformations present inside a bought thing.

This thus alerts business promoters get some answers concerning their shortcoming in things or organization. This articulation, was a standard considered by John F Kennedy in the year 1962 of each a proposal of four unmistakable customer rights including, security to covered defects, to teach about noteworthy data or revelation, additionally pick over the varying assortment accessible inside the genuine condition and to re address to make them heard or fathom.

Utilization of the norm

The standard can be realized to the obtaining of any things or organization, yet it is commonly applied in case of land trade. In this industry by far most of the customer care trade in various experts that are compelled by dishonest custom fitted acts, while the stipulation emptor theory is losing its likelihood (Reibstein, 2017). Regardless of what may be normal, cash related affiliation are a not proper to the rule, as the regulators requires people who offers budgetary things to reveal anyway much as information as could be relied upon to the customers. Regardless, in case of cash related affiliation merchant can’t give debased information to customers, therefore authoritative to moral standards.

Classmate 2:

by Shafaq Kazi – Saturday, 8 August 2020, 5:42 PM

Number of replies: 2

The expression “let the purchaser be careful” is gotten from the Latin language. It tells that the client ought to be dependable before buying any item by researching that item like its condition, Quality, lifetime, not to confront any kind of moral issues later on (Anilowski Cain, Fleischman, Macias, and Sanchez, 2017). This term is commonly utilized in the ongoing situation when a client is buying any merchandise, items, or administrations. The main role of this expression is to maintain a strategic distance from the contention among the purchaser and vendor, as the dealer will know more data about the Quality, condition, and lifetime of the item or administration that he’s going to sell. On the off chance that a client purchases any item, for example, a bicycle from Michelle, at that point it is the base duty of the vender to gather the vital applicable data about the condition, Quality, lifetime of that bicycle. In the event that we don’t get some information about the bicycle, for example, what a number of kilometers it has gone, regardless of whether any mishaps happened with that bicycle, are there any harmed parts, is it in legitimate condition. On the off chance that he just purchases that bicycle, at that point, the vender isn’t capable if any harms happen later on.

The connection between Ethical showcasing and Let the purchaser be the main decision-maker

Moral showcasing truly implies the method of promoting with the duty of coming clean about the item or administration to the clients. Numerous organizations need to manufacture a decent connection with their clients, but since of their exploitative advertising, they never prevailing with regards to building up a decent holding with them. It is the obligation of the organization to tell the upsides and downsides of their item or administration with the goal that the client will be effectively ready to know whether he needs to buy or not. He will come to realize that your organization is certified, and he consequently draws into your organization. Moral promoting and the expression let the purchaser be careful legitimately identified with one another in light of the fact that it is the client’s obligation to assemble information about the item he’s going to buy (Breman, 2018). The dealer ought to be answerable for giving the right Quality products or administrations, at that point just both the client and the vendor won’t face any issues, and the merchant will get pulled in to the clients.

Customer decision that is completely human is perfect towards which publicizing ought to morally point. This implies such a decision must be educated as well as unforced, that is, liberated from unnecessary weight. Once more, there are zones where what considers excessive weight isn’t generally self-evident.

One might be clear enough about physical compulsion or about wearing clients out through sheer depletion, as has been claimed of some time-share deals specialists. It is additionally fascinating that broad dismissal of subconscious publicizing emerges from worry that impact is being worked out, actually, beneath the limit of individuals’ cognizance, which is hence viewed as an attack, not currently of their physical, yet of their mystic security.

The equivalent might be said of controlling individuals in the feeling of getting them to accomplish something without their monitoring it or of why they are doing it. For instance, how moral is it to support motivation purchasing?

However, there must likewise be a spot for due impact, as in any human trade. There is therefore moral degree for practicing effect on others on a rising scale, starting with straight data and continuing to the recommendation, support, and influence, before arriving at the exploitative outrageous of control.

Playing on individuals’ sentiments and feelings to impact their choices and decisions and to make sure about their understanding and assent is a typical piece of social association. All things considered, we are not PCs, to the conceivably lose faith in regards to market analysts, and our decisions are not founded just on objective or coherent grounds. They are likewise impacted by our sentiments of being pulled in or repulsed by something on offer, or by an introduction, bundle or advert featuring its capacity to fulfill our different needs.

strategic-marketing

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Andrew Whalley

Strategic Marketing

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Strategic Marketing 1st edition © 2014 Andrew Whalley & bookboon.com ISBN 978-87-7681-643-8

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Strategic Marketing

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Contents

Contents

Preface 7

1 So what is marketing? 9 1.1 The Three levels of Marketing 9 1.2 The value of Marketing; Needs, Utility, Exchange Relationships & Demand 11 1.3 The Theoretical basis of competition 17 1.4 Alternative Frameworks: Evolutionary Change and Hypercompetition 32 1.5 The Marketing Concept 35

2 What can be marketed? 40 2.1 Core Benefit Product 44 2.2 Basic product 44 2.3 Augmented product 45 2.4 Perceived product 45 2.5 A note on branding 45 2.6 Summary of the Chapter 45

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Contents

3 Marketing’s role in the business 47 3.1 Cross-functional issues 47 3.2 Strategic issues 49 3.3 Forecasting market and sales 64 3.4 Implementation, Analysis, Control & Evaluation 64 3.5 Objectives setting 66

4 Segmentation, Targeting & Positioning 67 4.1 Segmentation 69 4.2 Targeting 71 4.3 What is positioning? 72 4.4 Positioning and Perception 73 4.5 Perceptual Mapping 75 4.6 Strategies for Product Positioning 78 4.7 Product Re-positioning 79 4.8 Corporate Positioning 79 4.9 Chapter Summary 79

5 Branding 81 5.1 Why do we brand products? 81 5.2 Chapter summary 85

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Contents

6 The Marketing Mix 86 6.1 Price 88 6.2 Place 91 6.3 Product 92 6.4 Promotion 96 6.5 Physical Evidence 98 6.6 People 99 6.7 Process 100

7 Product Management 102

8 Marketing Communications or MarCom or Integrated Marketing Communications (IMC) 104

8.1 The Marketing Communications Mix 104 8.2 The Marketing Communication Process 105 8.3 Marketing Related Messages 106 8.4 The development of Marcoms 107

9 Expanding marketing’s traditional boundaries 109

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Preface

Preface This book is aimed to give an overview of what marketing really means in the contemporary business environment. It’s not a “how to guide” it’s more a background/reference document to help stimulate some thinking and discussion about marketing, which is an essential part of any higher education course covering Marketing.

Let’s start with the premise that despite its importance, Marketing is the least well understood of all the business disciplines, both by those working within business and by the public at large. It is invisible to right-wing economists, whose credo is that prices carry all the information about supply and demand that markets, need to produce the goods and services that people want; the works of Adam Smith, Friedrich Hayek, Milton Friedman, Gary Becker, all leading economists in their field of their time have no mention of marketing whatsoever.

The left-wing socialists, social scientists, journalists, and popular mass media programme makers do at least acknowledge marketing as being real. But their views often present marketing as little more than manipulative, exploitative, hard-sell advertising used by greedy and morally bankrupt corporations in pursuit of their next set of bonuses. Both views are at best incomplete in terms of truly understanding markets from the key perspective – that of the customers and suppliers who interact to make the markets.

All commercial enterprises have products and services to sell and these are both the result of, and the reason for, marketing activities. Goods & Services, collectively called Products, are developed to meet customer needs and so those needs must be researched and understood. Each product can then be targeted at a specific market segment and a marketing mix developed to support its desired positioning. Product, Brand or Marketing Managers have to design marketing programmes for their products and develop good customer relationships to ensure their brands’ ongoing success

Marketing has arguably become the most important idea in business and the most dominant force in culture. Today mass media encapsulates our lives, satellite TV, broadband internet access, instant communications via web and mobile phone, all of which mean messages can reach you virtually at any time and place. This means that marketing pervades society not on a daily basis but on a second by second basis.

There are several good reasons for studying marketing. First of all, marketing issues are important in all areas of the organisation – customers are the reasons why businesses exist! In fact, marketing efforts (including such services as promotion and distribution) often account for more than half of the price of a product. As an added benefit, studying marketing often helps us become wiser consumers and better business people.

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Preface

Marketing is also vital to understanding businesses of any sort, thus any study of business that excludes an appreciation of marketing is incomplete. In particular at the highest levels marketing becomes an integrating holistic culture that drives integrated, co-ordinated and focussed business practices with the interests of the customer as its heart – a combination that makes such businesses difficult to beat in the market.

Some of the main issues involved include:

• Marketers help design products, finding out what customers want and what can practically be made available given technology and price constraints.

• Marketers distribute products – there must be some efficient way to get the products from the factory to the end-consumer.

• Marketers also promote products, and this is perhaps what we tend to think of first when we think of marketing. Promotion involves advertising – and much more. Other tools to promote products include trade promotion (store sales and coupons), obtaining favourable and visible shelf-space, and obtaining favourable press coverage.

• Marketers also price products to “move” them. We know from economics that, in most cases, sales correlate negatively with price – the higher the price, the lower the quantity demanded. In some cases, however, price may provide the customer with a “signal” of quality. Thus, the marketer needs to price the product to (1) maximise profit and (2) communicate a desired image of the product.

• Marketing is applicable to services and ideas as well as to tangible goods. For example, accountants may need to market their tax preparation services to consumers.

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So what is marketing?

1 So what is marketing? Marketing is commonly misunderstood as an ostentatious term for advertising and promotion; in reality it is far more than that. This perception isn’t in many ways unreasonable, advertising and promotion are the major way in which most people are exposed to marketing. However, the term ‘marketing’ actually covers everything from company culture and positioning, through market research, new business/product development, advertising and promotion, PR (public/press relations), and arguably all of the sales and customer service functions as well;

• It is systematic attempt to fulfil human desires by producing goods and services that people will buy.

• It is where the cutting edge of human nature meets the versatility of technology. • Marketing-oriented companies help us discover desires we never knew we had, and ways of

fulfilling them we never imagined could be invented.

1.1 The Three levels of Marketing

Almost every marketing textbook has a different definition of the term “marketing.” The better definitions are focused upon customer orientation and satisfaction of customer needs;

• The American Marketing Association (AMA) uses the following: “The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”

• Philip Kotler uses, “Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.”

• The Chartered Institute of Marketing (CIM), “Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably.”

In a January 1991, Regis McKenna published an article in the Harvard Business Review (HBR) entitled “Marketing Is Everything.” In the article the McKenna states, “Marketing today is not a function; it is a way of doing business.” Indeed we now call this the top level of Marketing – Marketing as a business philosophy. So yes, marketing is everything. In essence it’s the process by which a company decides what it will sell, to whom, when & how and then does it!

This brings us to the second level of Marketing; Marketing as Strategy. This entails understanding the environment the business is operating in; customers, competitors, laws, regulations, etc. and planning marketing strategy to make the business a success. This second layer is about segmenting (S) the market, deciding which customers to target (T) and deciding what messages you want the targets to associate with you; what is called Positioning (P). The overall process is usually referred to as; segmentation- targeting-positioning (STP) which is covered in Chapter Three.

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So what is marketing?

STP however is not alone at this level; it is closely allied with the concept of Branding, which is not just about logos and names. Brands are now about image – or more correctly its perception, branding is a link between the attributes customers associate with a brand and how the brand owner wants the consumer to perceive the brand: the brand identity. Over time, or through poorly executed marketing or through societal changes in markets, a brand’s identity evolves gaining new attributes from the consumer’s perspective.

Not all of these will be beneficial from the brand owner’s perspective and they will seek to bridge the gap between the brand image and the brand identity, by trying to change the customers perceptions – brand image – to be closer to what’s wanted brand identity; sometimes this necessitates a brand re-launch. A central aspect to brand is the choice of name. Effective brand names build a connection between the brand’s personality as it is perceived by the target audience and the actual product/service, by implication the brand name should be on target with the brand demographic, i.e. based in correct segmentation and targeting. Level two of Marketing can thus be summarised as STP + Branding; Branding is covered in Chapter Four.

The third level of marketing is about the day to day operational running of marketing, it encompasses the control of the Marketing Mix and the processes within a business that help create and deliver that company’s products and services to the customer. This level spans all aspects of a business and across all customer contact points including:

• A company’s web site; • How they answer the phones; • Their marketing and PR campaigns; • Their sales process; • How customer contact staff present themselves (in person and on the phone); • How a business delivers its services; • How a business “manages” its clients • How a business solicits feedback from its clients.

These operational issues are covered in Chapters Five, Six and Seven.

From the above we see that:

• Marketing involves an ongoing process. The environment is “dynamic.” This means that the market tends to change – what customers want today is not necessarily what they want tomorrow.

• This process involves both planning and implementing (executing) the plan.

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So what is marketing?

To summarise then we can see that a simple definition of marketing would be, “The right product, in the right place, at the right time, at the right price,” Adcock et. al. This is a succinct and practical definition that uses Borden/McCarthy’s 4Ps – Product, Price, Place & Promotion, which are covered in Chapter Five.

1.2 The value of Marketing; Needs, Utility, Exchange Relationships & Demand

It is a fundamental idea of marketing that organisations survive and prosper through meeting the needs and wants of customers. This important perspective is commonly known as the Marketing Concept which as we saw earlier at its highest is a philosophy and business orientation about matching a company’s capabilities with customers’ wants. This matching process takes place in what is called the marketing environment and involves both strategic and tactical marketing within the organisation’s structure. A truly marketing oriented business is actually structurally designed to facilitate the Marketing Concept as a philosophy and as a way of operating.

An entrepreneur realised that the feedback his company was getting had begun to show less and less positive results over the past twelve months. This period happened to coincide with an expansion of the business and a significant increase in the number of staff, form what had been before a relatively small team. Looking deeper a key issue seemed to be that customers where no longer finding the business easy and flexible to deal with.

The entrepreneur hit on a novel solution. He split his staff into those roles were to directly serve customers, e.g. Customer service, Sales, Marketing and those whose roles were to support the company, e.g. Accounting, Logistics, HR. Once complete a meeting was called and as the staff assembled he personally gave small blue button badges to the support group, he proudly wore his own to show commitment, and small green button badges to those directly serving the customers.

Once assembled he explained the reason for the meeting and that he had reached a solution; the badges. “From this moment on we only have two rules that I want you all to bear in mind at all times. Those of you wearing a green badge – it is your job to say yes to a customer and find a way to do it. Those of you wearing a blue badge – when someone wearing a green badge comes to you and says I need to do this for a customer, your job is to find a way to say yes and to then do it”.

Now that’s the Marketing Concept as a cultural philosophy for a business.

Example 1: Management by Button Badge

Businesses do not undertake marketing activities alone. They face threats from competitors, and changes in the political, economic, social and technological aspects of the macro-environment. All of which have to be taken into account as a business tries to match its capabilities with the needs and wants of its target customers. An organisation that adopts the marketing concept accepts the needs of potential customers as the basis for its operations, and thus its success is dependent on satisfying those customer needs.

So to understand customers better – which as students striving to be better marketers we need to do, we should actually define what we mean by wants and needs, rather than just use such terms loosely;

• A “need” is a basic requirement that an individual has to satisfy to continue to exist.

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So what is marketing?

Source: Maslow (1943) Figure 1: A Representation of Maslow’s Hierarchy of Needs

Maslow’s hierarchy of needs is depicted as a five level pyramid. The lowest level is associated with physiological needs, with the peak level being associated with self-actualisation needs; especially identity and purpose.

The higher needs in this hierarchy only come into focus when the lower needs in the pyramid are met. Once an individual has moved upwards to the next level, needs in the lower level will no longer be prioritized. If a lower set of needs is no longer being met, i.e. they are deficient; the individual will temporarily re-prioritize those needs by focusing attention on the unfulfilled needs, but will not permanently regress to the lower level.

People have basic needs for food, shelter, affection, esteem and self-development. Indeed many of you should recognise a link here to the work of Abraham Maslow and his hierarchy (figure 1) of needs in explaining human behaviour through needs motivation. In fact many of these needs are created from human biology and the nature of social relationships, it is just that human society and marketers have evolved many different ways to satisfy these basic needs. All humans are different and have different needs based on age, sex, social position, work, social activities etc. As such each person’s span of needs is likely to be unique and this it follows that customer needs are, therefore, very broad.

• A “want” is defined as having a strong desire for something but it not vital to continued existence.

Consumer wants are shaped by social and cultural forces, the media and marketing activities of businesses; as such a want is much more specific and goes beyond the basic to include aspirational values as well as the need satisfaction.

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So what is marketing?

Thus, whilst customer needs are broad, customer wants are usually quite narrow. Consider this example: Consumers need to eat when they are hungry. What they want to eat and in what kind of environment will vary enormously. For some, eating at McDonalds satisfies the need to meet hunger, others wouldn’t dream of eating at McDonalds or any other fast food restaurant. Some are perfectly happy with a microwaved ready-meal, others will only countenance a scratch cooked meal with organic ingredients. Equally there are those who are dissatisfied unless their food comes served alongside a bottle of fine Chablis or Claret, or is served silver service by waiters in evening wear or has to be ordered from menus written in French.

Indeed it is this diversity of wants and needs that allows a variety of ‘solutions’ to be developed in any market and that directly leads to the need to think carefully about how and what can satisfy wants and needs. It is this approach we will explore at 1.3.2 later in this Chapter when examining Porter’s Five Forces model.

This leads onto another important concept – that of demand. Demand is a want for a specific product/ service supported by the ability and willingness to pay for it, i.e. there is a market of customers who both want and can pay for the product/service. For example, many consumers around the globe want a Ferrari car, but relatively few are able and willing to actually buy one.

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So what is marketing?

The concept of demand is absolutely fundamental to marketing, and is what much marketing research is actually aimed at; establishing the level of demand, and what Product Managers & Planners in many businesses spend their time trying to predict – patterns of demand and how they change as new products and services come to market and the needs/wants of the consumers and customers in the market evolve.

Indeed the concept of demand is how we in marketing actually define a market – a group of potential customers with a shared need that can be satisfied through an exchange relationship to the mutual satisfaction of the potential customers and the supplier. Indeed looking at this you should be able to see that this very neatly brings together the Marketing concept with more traditional views on exchange, utility, needs and wants.

We can also take this a step further. Remember we earlier talked about STP, well in fact the process we use to segment a market is one of demand assessment via grouping potential customers together by their shared need and/or wants that can be fulfilled through an exchange relationship. This grouping through understanding shared needs is fundamental to effective marketing, but is also a major area of contention within most businesses because it is easy to get wrong. Good use of STP leads to a segmentation of the market into groups that are homogenous by need, these groups can then be prioritised by their potential return and one or more is then chosen to be served – it/they become a target market – and a marketing mix is chosen to do just that.

So to summarise;

• A firm’s marketers carefully study of the needs individuals and businesses in order to asses the potential of a market.

• A market consists of people with purchasing power, willingness to buy, and authority to make purchase decisions.

• A target market – The group of people toward who an organization markets its products or ideas with a

strategy designed to satisfy their specific needs and preferences. – Customer needs and wants vary considerably, and no single organization has the

resources to satisfy everyone.

Businesses therefore have not only to make products that consumers want, but they also have to make them affordable to a sufficient number to create profitable demand. Businesses do not create customer needs or the social status in which customer needs are influenced. It is not Burger King or KFC that make people hungry, nor Budweiser or Coco-cola that make them thirsty.

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So what is marketing?

However, businesses do try to influence demand by designing products and services that are;

• Attractive • Work well • Are affordable • Are available

From what we’ve looked at so far it should be evident that Marketing also fundamentally involves an exchange process, that is marketing involves two or more parties trading something of value with each other. If you go to a restaurant you exchange money for food and service. If we travel to another city and stay at a hotel, we exchange money or more commonly credit through the use of a credit card, for the use of the room and services of the hotel. The meal and the services of the hotel & restaurant in these examples are products passed onto us in an exchange of money or credit.

So to understand Marketing we need to understand the exchange process;

• There must be two parties, each with unsatisfied needs or wants. This want, of course, could be money for the seller.

• Each must have something to offer. Marketing involves voluntary “exchange” relationships where both sides must be willing parties. Thus, a consumer who buys a soft drink in a vending machine for £1.00 must value the soft drink, available at that time and place, more than the money. Conversely, the vendor must value the money more. (It is interesting to note that money is, strictly speaking, not necessary for this exchange to take place. It is possible, although a bit weird, to exchange two ducks for a pair of shoes.)

• The parties must be able to communicate. This could be through a display in a store, an infomercial, or a posting on eBay.

• An exchange process exists when two or more parties benefit from trading something of value. Because of marketing, the buyer’s need for a certain product is satisfied, and the seller’s business is successful.

• Marketing can contribute to the continuing improvement of a society’s overall standard of living.

So we can see that Marketing is said to have a positive effect on an economy and helps satisfy needs by bringing supplier and customer together, it facilitates the exchange transaction.

This is as equally true of a charity as it is of a commercial business. A charity takes a donation and the exchange is the feeling of self-gratification the giver of the donation feels for giving. Effective marketing – at all three levels – can increase the value of this self-gratification in the eyes of the donator, e.g. making them feel they are making more of a difference, and thus marketing makes giving easier, i.e. marketing is a facilitator of the exchange by creating utility.

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So what is marketing?

Utility is a concept within economics that is related to marketing. Utility is a measure of the relative satisfaction from, or desirability of, consumption of various goods and services. Given this measure, one may speak meaningfully of increasing or decreasing utility, and thereby explain economic behaviour in terms of attempts to increase one’s utility. The Product and/or service and marketing of the product and/ or service form the foundation of the exchange process and together they create a utility.

In marketing we define utility as the want-satisfying power of a good or service. Richard Buskirk has presented an idea that marketing is an activity that creates from, place, time and ownership utility;

1. Form utility: The usefulness of a product that results form its form; converting raw materials into finished products. Product planning and development activities create form utility.

2. Time utility: making a product available when consumers want to purchase it. After production goods are stored by the manufacturer, wholesalers, retailers, etc until such time, the demand of the product is created and such goods are made available to the customer at the time when they are needed or demanded.

3. Place utility: making a product available in a location convenient for customers, the flow of goods through different distribution channels from producer to consumer from the place of abundant to the place or where they are needed creates place utility.

4. Ownership utility: refers to the orderly transfer of legal title to the product and/or service/s from the seller to the buyer via a sales transaction. Goods may be lying in a reliable state with producer or the manufacturer or their agents until some other person needs them.

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So what is marketing?

The production process creates form utility of a goods or service, whereas time, place, and ownership utility are created by the marketing function; it is the act of offering a goods or service, when (time utility), where (place utility) and via processes that make possession easy, e.g. price/distribution/purchasing terms (ownership utility). Think back to the point made above about how businesses try and increase demand; the four factors stated on how a business does this are ways of increasing the utility of the product/ service. So the greater the utility, the greater the demand and potentially the more successful the business.

Marketing therefore, consists in moving goods to the manufacturers, in a form in which it is required at a time when they required, to the place where they are to be used and for those who are to use them for various purposes.

Marketing functions are the activities that create utility and facilitate the exchange process and include;

• Buying or leasing • Selling or leasing • Transporting • Storing • Standardising or grading • Financing • Risk taking • Information gathering

It is worth noting at this point that the concept of utility overlaps into later points on the Marketing Mix, value chain and on goods versus services marketing.

1.3 The Theoretical basis of competition

It is important to distinguish here between strategy frameworks and strategy models. Strategy models have been used in theory building in economics to understand industrial organisations. However, models are difficult to apply to specific company situations and instead, qualitative frameworks have been developed with the specific goal of better informing business practice.

1.3.1 Generic Strategy: Types of Competitive Advantage

Strategy is fundamentally about two things:

• deciding where you want your business to go, • and deciding how to get there.

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Strategic Marketing

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So what is marketing?

Indeed a strategic plan is often compared to planning a journey; you know where you want to go to and from where you are starting, how you chose to travel depends on the resources and timescales you have in which to complete the journey. This is what a business’s strategic plan does; it lays out where the business is heading for (targets/goals), where in currently is and what resources it intends to use, at what time, with what expected result, to get there.

A more complete definition is based on an understanding of competitive advantage, the mechanisms by which such advantage is created and communicated to the target audience. These are the objects of most corporate strategy:

Competitive advantage grows out of value a firm is able to create for its buyers that exceeds the firm’s cost of creating it. Value is what buyers are willing to pay, and superior value stems from offering lower prices than competitors for equivalent benefits or providing unique benefits that more than offset a higher price. There are two basic types of competitive advantage: cost leadership and differentiation.

– Michael Porter, Competitive Advantage, 1985:3

Figure Two below defines the choices of “generic strategy” a firm can follow.