(Marketing Audit of your Organization)
Bus 623 - Marketing Management
Instructor: Prof. Stephen L. Vargo, Ph.D
AURELIO DOETSCH (VEMBA 4)
PART I Explicate the difference between Marketing (with a capital M) and marketing (with a small m) 3
PART II CHAPTER 1
Marketing Audit - Hill Intl. KEY FACTS & HISTORY OF ORGANIZATION GOALS & OBJECTIVES MARKET ANALYSIS SWOT ANALYSIS PORTFOLIO ANALYSIS MARKETING STRATEGY MARKETING MIX REFERRENCES 8
CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5 CHAPTER 6 CHAPTER 7 CHAPTER 8
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Prof. Stephen L. Vargo distinguished between Marketing (with a capital M) and marketing (with a small m). Likewise, Peter Drucker, who many consider to have been the best business thinker in history, commented “marketing is not only much broader than selling, it is not a specialized activity at all. It compasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customer's point of view.” Explain what you think Drucker and I are trying to convey and what it implies for management of the firm. Be as specific as possible. 1.1 GOODS versus SERVICES Marketing inherited a model of exchange from economics, which had a dominant logic based on the exchange of “goods,” which usually are manufactured output. This dominant logic focused on tangibles, statics, discrete transactions, and operand resources. The first marketing scholars directed their attention toward commodities exchange, a good -centered model. Viewed in this traditional sense, the goods-centered view, focusing largely on operand resources, postulates the following: The purpose of economic activity is to make and distribute things that can be sold. To be sold, these things must be embedded with utility and value during the production and distribution processes and must offer to the consumer superior value in relation to competitors’ offerings. The firm should set all decision variables at a level that enables it to maximize the profit from the sale of output. For both maximum production control and efficiency, the good should be standardized and produced away from the market. The good can then be inventoried until it is demanded and then delivered to the consumer at a profit.
But Over the past several decades, new perspectives have emerged that have a revised logic focused on intangible resources, the cocreation of value, and relationships. This new perspectives are converging to form a new dominant logic for marketing, one in which service provision rather than goods is fundamental to economic exchange. Briefly, marketing has moved from a goods-dominant view, in which tangible output and discrete transactions were central, to Final Exam - BUS 623 Marketing Management 3
vs. marketing (m)
a service-dominant view, in which intangibility, exchange processes, and relationships are central. Whereby, services are defined as the application of specialized competences, such as knowledge and skills, also known as operant resources, and as such are often invisible and intangible; often they are core competences or organizational processes. They are likely to be dynamic and infinite and not static and finite, as is usually the case with operand resources. The service-centered view of marketing can be stated as follows: Identify or develop core competences, the fundamental knowledge and skills of an economic entity that represent potential competitive advantage. Identify other entities (potential customers) that could benefit from these competences. Cultivate relationships that involve the customers in developing customized, competitively compelling value propositions to meet specific needs. Gauge marketplace feedback by analyzing financial performance from exchange to learn how to improve the firm’s offering to customers and improve firm performance.