Sagar Patel SID- 18452876 Univ of California Berkeley

Marketing Positioning: It starts with understanding that different kinds of customers buy different kinds of customers buy different kind of value. In general customers fall into three basic categories.

1) Customers want low prices with minimal level of customer service. 2) Customers want state of art service’s 3) Customers constantly want improvement’s and are less sensitive to price.

Important Concepts:

1) The Value proposition represent’s the implicit promise a company makes to deliver a particular combination of values.

2) The Value driven operating model is the compination of operating process, management systems, Business structures and culture that gives a company the capacity to deliver on its value proposition

3) The Value discipline represents on of the three ways that a companies can combine operating model and value propositions to be the best in their markets. Each discipline prodice different kind of value.

Marketing myopia : The commercial processes involved in promoting and selling and distributing a product or service that describes an unnecessarily common affliction among business people.

• Many business people make their decisions based on current circumstances. They do not think about what will likely occur in their industry in the future.

• Because the world is inherently unpredictable, we are all subject to myopia to a certain extent according to Theodore Levitt (1960) who coined the term

• People who focus on Quick Facts about: marketing strategy • Subject Customer's lifetime value can rise above myopia to a certain extent. This can entail the use of

long-term profit objectives (sometimes at the risk of sacrificing short term objectives). • Management with Short vision often fail to recognize that in fact there is no such thing as growth industry • The companies defined their industry in a wrong segment. Eg:- Railroad business

they were railroad oriented instead of transportation oriented. They were product oriented instead of customer oriented.

• Growth is always threatened, slowed or stopped because of the failure of management. • If companies are not customer oriented their new products might have been wrong and their sales

method is useless.

Major factors which made the Industry believe their potential growth. 1) Population myth: The companies believed that profits are assured by and expanding and more affluent population is dear to the heart of every industry. If the product has an automatically expanding market, then you will not give much thought to how to expand it. Eg:- Petroleum industry.Major improvement and Major innovations in the fuel marketing will affect the sales. Oil has never been a superior product for any purpose for very long, but it also shows that the oil industry has never really been a growth industry. It has been the succession of different business that have gone through the usual historic cycles of growth, maturity and decay. There is no guarantee against product obsolescence. 2)Production pressures. Mass production industries are impelled by a great drive to produce all they can. The prospect of steeply declining unit cost as output rises is more than most companies usually resist Mass production does indeed generate great pressure to ”move” the product. But what usually gets emphasized is selling, not marketing. Eg:- FORD MOTORS 3) Based on Research and Development This is a major danger to firms who believe and R&D. When top management is wholly transfixed by the profit possibilities of technical research and development. Eg:- The Electronic Industry (The organization tends to making things rather than satisfying customer needs.

Thursday, May 26, 2005 Assignment by Prof :- Davis