The Role of Marketing in Business

Marketing Process and Strategy

Marketing is the management process that describes how products move from concept until they reach the intended consumer. Marketing involves the integration of 4 P’s; that is selecting the product, setting the price, distribution of the product until they reach the consumer’s place, and implementation of a promotional strategy (Hill & Jones, 2009). On the other hand, the marketing strategy is a described as a plan to realize the set objectives by the firm. Marketing tactics ensure there is a blueprint for the development of a marketing plan and research (Hill & Jones, 2009). The approach aids the business to focus their assets on the best openings to grow their trading options.

Importance of a Mission

A defined mission is critical because it describes the business, the products they are offering, and the customers they are targeting. A mission statement allows a company to differentiate itself from its competitors. An organization with a defined statement can understand the customers they are dealing with and design products that are preferable and in line with their business competitors (Hill & Jones, 2009). An individual also needs a purpose statement to have a mantra that is imprinted in their heart and mind to monitor their course of action. It helps them achieve plans and activities.

The Importance of Understanding the External Environment to Think Strategically

Understanding the external environment is critical because it enables the business to understand the political, technological, cultural, and physical environment surrounding the organization. For example, under political analysis, the organization can access and know the political stability of the country and all legal procedures requires before setting up a business. The economic environment enables the firm to understand the economic systems of the company and the government involvement in the market, the efficiency of the financial markets, and the quality of infrastructure and workforce (Hill & Jones, 2009). The social environment enables the business to understand the demographics, education, social class, and the cultural environment surrounding the people. Furthermore, the technical analysis is critical because it enables the organization to be aware of the recent technological advancements and knows how to integrate it to the system to cater for consumer needs (Hill & Jones, 2009).

The Significance of Superior Efficiency

Superior efficiency is essential for the business to achieve a competitive advantage and know the methods of keeping it. It enables the firm to offer the consumers a higher value of goods at a lower price than their competitors. Again, a company may achieve the superior efficiency by providing quality products at a price higher than that of the competitors. The management strives to acquire a status that cannot be imitated by the others (Mooney, 2010). The company has to have a gap between the perceived value and the cost of the goods higher than the competition.

Change of Threats and Opportunities

The phases of business progression are comprised of four phases; that is, introduction, growth, maturity, and decline. The model has been used to explain how existing opportunities and threats in a firm can change over time. Introduction of firms in the market may affect existing business because they can act as competitors who pose a threat. However, a company should have a competitive advantage for it to survive in the market. A business is expected to undergo growth and an increase in its sales with existing and favorable opportunities such as stable markets and finances. Thirdly, the industry can reach maturity where it is recognized as a stable firm (Paulino, 2016). However, when threats are facing the firm, a decline is expected especially when there are increased competition and political instability.

Business-Level Strategies and Competitive Advantage Over Actual and Potential Rivals

Businesses can use the business-level policies to establish a better plan over others by exploiting their strengths in a particular market section. For example, a company may implement the specific and generic strategies to help them gain an advantage over their competitors. For example, a company that is recognized as the best internet providers may use the approach to gain strength and acquire the market better than their rivals (Mooney, 2010). A firm that is recognized globally is likely to have a broad market share.

Four Building Blocks of Competitive Advantage

Demand advantage is the first building block of competitive advantage. This enables the company to have customer captivity. For example, the Android software providers have captured the consumers because many people prefer to use the android on their phones. Secondly, supply advantage enables a company to gain competitive advantage. For example, Samsung is known for the supply of phones, computers, and electronics such as televisions. Thirdly, economies of scale enable a company to gain a competitive advantage in that it can buy large quantities of good at low prices and thus sell it to the consumers at a relatively reduced price than their rivals. Government protection enables a company to have an advantage because of the financial and physical support it gets from the country (Mooney, 2010). The competitors are unable to set prices as compared to the government because of the security government-owned companies have.

A Firm That Has Achieved a Distinctive Competency In Efficiency

Toyota is a firm that achieved distinctive competency in innovation, quality, and responsiveness to its customers in lean manufacturing. Their core competencies in the line of business enable them to operate and meet their customers’ expectations and demands. Their use of technology and innovative strategies enable them to make products that are unique and meet the consumers’ expectations (Mooney, 2010). The efficiency of transport and delivery of their goods has made the Toyota Company stand out among its rivals.

How Tangible and Intangible Resources and Capabilities Can Lead to Distinctive Competencies

Tangible and intangible resources create different geographical dimensions that provide an implication of the market boundaries. Reputations and brands are made to target a specific group of consumers. For example, hearing aids are provided for the particular group of consumers who have a hearing problem. Again, innovation-based competitive advantage dictates the market positions and choice (Hill & Jones, 2009). They affect the supplier relationships and the demand for goods and services.

Cognitive Biases That Individual Decision Makers Experience

The halo effect is an example of the bias that dictates the overall impression of a person and how they make the customer feel or think about the product. For example, the physical attractiveness of a good may influence whether the customer is going to purchase or not. Secondly, the self-serving bias blames the external forces when bad things happen and credits one for the good happenings. For instance, when the business makes profit one can attribute the success to their efforts while when a loss is experienced they blame the employees. Lastly, the attention bias is the tendency to pay attention to some things while ignoring others (Strough, Karns, & Schlosnagle, 2013). For example, when buying a car, one may look at the exterior structures overlooking the gas mileage.

References

Hill, C., & Jones, G. (2009). Strategic Management Theory: An Integrated Approach. Cengage Learning.

Mooney, A. (2010). Core Competence, Distinctive Competence, and Competitive Advantage: What Is the Difference? Journal for Education and Business, 110-115.

Paulino, S. (2016). Industry structure and disruptive innovations: the satellite industry. Journal of Innovation Economics & Management, 230.

Strough, J., Karns, T. E., & Schlosnagle, L. (2013). Decision-making heuristics and biases across the life span. Journal of Academic Science, 57–74.