Michael Porter outlined the value chain model in his book “competitive advantage”.(Here is a link to Google books for this textbook.) Porter’s Value Chain is a model that is sometimes included in a marketing principles textbook, but is more commonly found in a book on marketing strategy.Using Porter’s Value ChainThe value chain is a model […]
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Creating value for customers is a fundamental aspect in marketing success. To aid the process of value creation, Michael Porter developed tool for finding new ways to create customer value, which he refers to as the “the value chain”.Nine components of Porter’s Value ChainPorter’s value chain focuses on nine strategic activities that can create value
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In marketing strategy subjects, you often learn about different strategic models – some of these will include portfolio models, or portfolio matrixes, or portfolio analyses – which are all interchangeable terms for the same concept.What is a business portfolio?A business portfolio is essentially the same concept as a share portfolio for an individual investor. Someone
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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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