Ways to identify a suitable value propositionProviding a value proposition is a central part of a firm’s offering in the marketplace. A value proposition helps differentiate firms and brands by having something unique about their “offering”.In marketing terms, an “offering” is the collection of benefits that is available to potential customers from transacting with the […]
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The strategy hierarchy is often taught in business and marketing schools today, stating that a strategy can be formulated at three different levels: corporate level, strategic business unit level (SBU), and functional (or departmental) level. It is important concept to understand because at these different levels, different strategic issues are addressed. Therefore, it will give
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The societal marketing concept builds upon the same philosophy as the marketing concept by adding the focus on giving back to the society by offering products or the business practices that will improve society overall.The marketing conceptAs the marketing concept is the basis of the societal marketing concept, it is worthwhile exploring this quickly first.
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Understanding the production conceptMarketing textbooks usually describe five main eras, or philosophies, of how marketing evolved. The first accepted phase is the production era in marketing, which is based upon the assumption that consumers prefer available and affordable products. With this philosophy, broad distribution and cost leadership were winning strategy combinations.This concept dates from the
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Understanding the product conceptFollowing the production era of reduced production and distribution costs in order to deliver better value to consumers, firms had success with adopting a different philosophy – the product concept – which took the view that a good product will create its own market or consumers were willing to pay a little
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Also known as the selling concept, the sales/promotion era is based upon the assumption that a customer will not buy, on his/her own, enough products or services from a certain company. Therefore, any organization needs to set up an aggressive and efficient selling and promotional system on an ongoing basis.It is one of the five
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Most marketing textbooks will include a discussion, generally in chapter 1, of how marketing has evolved over the last hundred years or so. In this discussion they talk about various concepts, philosophies or eras. The exact terminology slightly various between the major marketing textbooks, but generally they address these five main marketing eras or philosophies:Production
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Service marketing is a different subject in university and/or the different chapter in a marketing textbook because there are distinct challenges in marketing services as opposed to marketing physical products (goods).When marketing courses and textbooks were first developed, they primarily focused on the marketing efforts of manufacturers selling a physical product through a distribution channel
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When you study services marketing as part of your business degree, you quickly learn that services represent 70 – 80% of gross domestic product in most developed countries.Over the past 50 years or so, service sectors have grown significantly, relative to manufacturing, to become the dominant aspect of many economies throughout the world.The size of
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In the study of services marketing, retailers are classified as service providers. One of the questions I am often asked by university students is why retailers are service firms. After all, retailers generally sell a physical product – so why are they service providers?
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