Discussion Questions 1

Assignment 1

Marketing Discussion Questions

Anonymous Student #1

Professor John Stockmyer

MKT517 WEB/Tuesdays 7:00-9:30

What is Marketing, and how and why has the definition changed?

According to the American Marketing Association(AMA), marketing is now defined has, “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, partners, and society at large.” This is the latest in a series of definition changes to stay in stride with the ever evolving and often rapidly changing competitive business and marketing climate where the stakeholders have been redefined and relationship between producer and consumer is now based on reciprocity and learning continuums. Marketing is expansive and affects everyone to some degree.

The first marketing definition was created in 1935 and adopted by the AMA in 1948 which stated, “Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers.” This definition was in line with the focus on the function and meeting the goals of getting the product to the consumer. The consumers’ preferences were considered as an afterthought. The definition remained for 50 years until a change in 1985, where that definition read, “Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy the individual and organizational objectives.” The complexity and importance of marketing to the corporate institution and the focus on customer satisfaction was realized. Then in 2005, the definition changed to: “Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.” Marketing became integrated into corporate functionality where maintaining an ongoing relationship with the customer was realized has the utmost of importance.

What is Business Strategy?

There are four dimensions that define a business strategy and indicate where and how to compete; 1) product-market investment strategy, 2) customer value proposition, 3) assets and competencies, and 3) functional strategies and programs. Implementing and executing all four of these is required for a well rounded business strategy.

Product- Market Investment Strategy: This dimension is based on the scope of the business in relation as to where to compete; in essence to diversify or not to diversify, the allocation of funds, investments, resources, and management, or to withdrawal resources and close out non-performing products.

Customer Value Proposition: To enhance the product an offering or value proposition must be made which appeals to customers. Some examples include accessibility, value, customer service, a lifestyle activity, suburb quality, selection/variety, consistency, or a specific product attribute.

Assets and Competencies:A strategic asset is a resource that out performs or is stronger than that of a competitor such as a brand name or trademark. A strategic competency is something a business does well like manufacturing or R&D. The combination of assets and competencies can be used as synergies to provide a sustainable competitive advantage.

Functional Strategies and Programs: A set of support or functional program strategies should be implemented that evolve from the customer value proposition or from the assets and competencies. These should enable the delivery of the value proposition and strengthen the assets or competencies. Some examples may include: a quality program, a customer relationship program, a manufacturing strategy, or a distribution strategy.

What does Marketing Myopia have to do with Business Strategy?

The American Heritage Dictionary defines myopia has, “Short sightedness in thinking or planning.” As with marketing, it is the inability to foresee, plan, and respond to the changes of customers’ needs or preferences, changes in the economy, or emerging competitor threats.

For example, historically many companies focused solely on single item mass production and market saturation, believing this would sustain longevity. However, growth did not prevent substitute products from entering the market, keep competitors from expanding on new market possibilities, prevent the advancement of technology, or the changing of customer needs. This head in the sand attitude prevented management from implementing successful business strategies resulting in loss of market share or in some cases inevitable extinction. They did not or were unable to diverse, invest, enhance, or capitalize on the opportunities when they were made available.

Perhaps a concrete example or two would be helpful here.

What is SCA and what leads to SCA?

Sustainable Competitive Advantage (SCA) derives from one or more elements of a business strategy that enables a company to have a long lasting prominent or a distinctive advantage over existing or future competitors. Some SCA examples may be location, value, simplicity, accessibility, culture or advanced technology.

The path to SCA is begins with the four dimensions of business strategy; the way you compete, basis of competition, what you offer, and where you compete. Functional strategies and programs determine how you will compete; for example a distribution or manufacturing strategy. Assets and competencies are the basis of competition and should represent the most sustainable strategy. Wal-Mart’s locations and delivery system is an example of an SCA, enabling the company to offer low prices. What a company offers is derived from the value proposition. The key to a successful value proposition SCA is connecting the offering to the market positioning. A visible brand can communicate the product and have lasting impressions on customers. Deciding where to compete and choice of competitor are also factors of a successful SCA. The product market needs to support the value proposition whereas identifying and measuring assets and competencies of competitors are helpful to identify strengths and weaknesses.

What are the hallmarks of Strategic Market Management?

The main goal of Strategic Market Management is to develop, change, or maintain business strategies and create a strategic vision through external and internal analysis.

The hallmarks of Strategic Market Management are:

External Analysis: Analyze external elements that affect an organization; customers, competitors, markets, and environment.

Internal Analysis: Analyze internal aspects of an organization; performance metrics, strengths and weaknesses.

Analysis Outputs: Identify opportunities, strengths, weaknesses, or constraints.

Create, Adapt, and Implement Strategy: Select, implement, review, and adapt strategy.

With the objectives to:

Foresee and recommend possible strategic options in a timely manner.
Aid in dealing with and responding to opportunities or threats.
Enforce a long-range view or strategic vision.
Manage resource allocation.
Analyze information for decision making.
Control and maintain focus on the strategy
Communicate strategy status.

In summary to lead the strategic analysis, support growth, manage and develop strategies.

Overall Score: 97/100

Nice job!