To get a better understanding about this, please start reading from the first post of the series.
THESIS: The Marketing Communication Strategy of Blue Bird Taxi To Maintain Market Leader Position After Using The Highest Tariff:
- Introduction & Book Cover : Part 1
- Research Originality Statement and Acknowledgement : Part 2
- Abstract : Part 3
- Table of Contents : Part 4
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CHAPTER II
THEORETICAL FRAMEWORK
The
following theories are
chosen to support
the analysis and explanation about the
marketing communication strategy to
maintain market leader position after using the highest tariff.
2.1
Literature Review
Treacy
and Wiersema, (1993) mentions in the Harvard Business Review journal, that
there are 3 paths for a company to achieve market leadership. These 3 paths are
value discipline strategies which are Operational Excellence, Customer Intimacy
and Product Leadership. Operational excellence focuses on leading the industry
in terms of price and convenience. Customer Intimacy focuses on long term
customer loyalty and customer profitability. Product leadership focuses on
quick commercialization of new idea. Value discipline is considered a
competitive strategy because each discipline tries to be the market leader in a
certain area.
Product leadership strategy delivers value
by offering leading edge products and services, providing new products and
services in the market, creatively adapting to changing market conditions and
finding new solutions for its customers. This
is backed up by a company that works quickly, supported by a good financial
system and has good talented staff. Since this strategy is centered on bringing
new product and services the price strategy use is a higher market pricing. The
Blue Bird Group taxi company uses the product leadership as their main value
discipline.
2.2 Marketing
Kotler
& Keller (2006:6) defines marketing as a societal process by which individuals and groups obtains what they
need and want through creating, offering, and freely exchanging products and
services of value with others.
Marketing deals with identifying and meeting
human and social needs. Exchange, which is the core concept of marketing, is
the process of obtaining a desired product from someone by offering something
in return. Value, the central marketing concept, can be seen as primarily a
combination of quality, service and price (qsp), called the “customer value
triad”. Value increases with quality and service, and decreases with price although
other factors can also play an important role.
2.3
Customer Buying Decision Process
The consumer passes through five stages of
buying decision process: problem recognition, information search, evaluation of
alternatives, purchase decision, and post purchase behavior as seen on figure
2.1. (Kotler & Keller, 2006:191) However, customers may skip or reverse some
stages. This model provides a frame of reference when a customer faces
involving a new purchase.
Figure 2.1
Five Stage Model of the
Consumer Buying Process
Problem Recognition is when the buyer
recognizes a problem or need; such as hunger, thirst or sex, or aroused by an
external stimulus such as seeing a TV ad or people using a product. Marketers
can develop a marketing strategy that triggers customer’s interest.
Information search is where the arouse
customer search for more information. Four groups of information sources are:
personal, commercial, public and experiential. Personal groups include family,
friends, neighbors, acquaintances. Commercial includes advertisement, web
sites, sales person, dealers, packaging, and displays. Public groups include
mass media, consumer rating organizations. Experiential includes handling,
examining, using the product.
Evaluation of alternatives is where the
customer process competitive brand information and make a final value. Customer
sees each product as satisfying a need, providing a certain benefit and as a
bundle of attributes. Customer will pay the most attention to attributes that
deliver the sought-after benefits.
Purchase decision execution can have five
sub-decision: brand, dealer, quantity, timing and payment method. The purchase
decision can be intervene by attitudes of others and unanticipated situational
factors such as risks.
Post purchase behavior of the customer can be a
dissonance experience. Therefore marketers must monitor post purchase
satisfaction, post purchase actions, and post purchase product uses.
