1. “Needs, value, satisfaction and relationships are among the most important core marketing concepts.” a. Briefly define each of these concepts and discuss their importance to marketing. b. How can marketers influence customers’ perceptions of value and their level of satisfaction?
Marketing objectives of Marks and Spencer is to ensure consumers are better informed about the products/services they provide. Evidently, M&S provide financial services in addition with products from home and clothing. Therefore, depending of the marketing strategy whether it is regional, national or international promotional activity will differentiate accordingly. Promoting a product as mentioned before allows the business to inform the market, increase demand and differentiate the product. For M&S to use integrated marketing they can boost the performance of sales of a particular product during specific times.
The durability of competitive advantage depends on the ease or difficulty to imitate distinctive competencies. The factors that make this task difficult is called barriers of limitation. A company needs to always present or act as if rivals are continually trying to nullify its source of advantage. So, these four building blocks will help companies lower cost and achieve differentiation. Efficiency is based on the cost of inputs required to produce a given output.
Smoothie King has identified several different market entry strategies they could use to pave their way to success in selling their world renowned smoothies in the Slovenian market. They are aware that the smoothie industry still remains a niche market with constant opportunities for growth and enhancement in this ever-increasing market. However, Smoothie King needs to take into consideration that choosing a market entry strategy can have a profound impact on their global strategy. (Gillespie et al 2007) The mode of entry into any foreign market is often influenced by country risk, cultural distance, company assets, international experience and advertising intensity in the potential country. (Zhao et al 2004) Smoothie King needs to look at all of these factors and has to evaluate all of their options prior to choosing the most appropriate market entry strategy for smoothies in Slovenia.
We will discuss which part of the marketing mix was instrumental for the success of iTune. Marketing Mix • Product (Customer needs and wants) • Price (cost to customer) • Place (conveyance) • Promotion (communication) Analysis of Marketing Mix Tool: Product: Let us define the characteristics of the product (service) that meets the needs of the customers. The customer needs are as follows; a. Owning rather than listening, sharing or renting. b.
How do they have effect (if any) on your marketing plan for your product? c) Competitor environments, describing your main competitors, the products they offer, their plans, experiences, and strengths and weaknesses. d) Company environments, describing your situation in your company or company-to-be and the resources that you have available. 2. The target market.
(4 marks) ANSWER: The barriers to entry that faced by potential firms intending to enter monopolistic competition market structure is brand loyalty. The existing firms try to establish brand loyalty so that firm can gain some market power. For instance, L’Oreal establish brand loyalty through approach to customer wants and needs and ensures consumer will receive positive outcome after product usage. This can build trust with the customers and hence brand loyalty can establish. The other barrier to entry faced by potential firms is product differentiation such as differentiate their products through packaging or secret ingredient in order to persuade customers that their products are more unique and superior than rival brand.
Supply chain management is the complex process of managing systems to ensure that products are where they should be when they should be there, while minimizing costs and creating opportunities for profit. It is the strategic linkage and collaboration of all departments in a firm that enhances the product flow through the firm, which eventually adds value to the customer. Firms can lower costs, positively differentiate their services, constantly perform value-added services, increase flexibility and responsiveness, and engage in constant process innovation by incorporating best-practice supply chain management into their system. Not all supplier-buyer relationships are equal in value, and therefore, it is important to segment customers based on service needs and develop the appropriate relationship for that particular requirement. Robert J. Trent discusses four types of relationship management in his article “Why Relationships Matter.” Counterproductive relationships have no value because each organization is working against the other, this is often called a lose-lose relationship.
An example of product innovation by Riordan Manufacturing would be a new product invention, changes to a current product with the inclusion of new components, materials, or previously desired features for an already existing product. Riordan Manufacturing should use a differentiation strategy. Differentiation strategy would allow Riordan Manufacturing to develop a competitive advantage through supplying and marketing a product that is in some way different to what the competition is doing. If Riordan Manufacturing develops the product successfully the differentiation strategy will potentially reduce price sensitivity and improve brand loyalty from customers. SWOTT Analysis The SWOTT analysis should be used to measure Riordan Manufacturing’s strategies effectiveness.
Does advertising create artificial wants? Your answer should discuss John Kenneth Galbraith’s “dependence effect” and F.A. Hayek’s response. Advertising is a way of promoting products and services. Advertisements inform consumers about new products and at the same time try to get their attention and sell the products.