SCHOOL OF BUSINESS AND MANAGEMENT

INSTITUT TEKNOLOGI BANDUNG

BLEMBA XXX – Marketing Management
Saturday, 23 October 2021

Marketing Strategy and

Competition
Agung Wicaksono
Lecturer at SBM ITB
agung.wicaksono@sbm-itb.ac.id
IG: @agungwicak.agw
 Journey of An Academia
Into Government & Corporation

2007 - 2016 2009 - 2016 2016 - 2018 2018 – 2020

From the world of PRACTICE, for the benefit of classroom LEARNING.

By maintaining being a LEARNER, to maintain “SANITY” in reality.

Center for Policy and Public

Management,
SBM ITB (2020-2021) Jababeka Infrastruktur
(starting 1 Oktober 2021)
 Practitioners’ Teaching Team:
The USP (Unique Selling Proposition) of MBA ITB Jakarta

‘Alex’ Iriawan Satya Aditya Dr. Jacky Dr. Agung

Ibarat Wibowo Mussry Wicaksono

Guest Lecturers
by MarkPlus Inc.

Iwan Ardhi
Setiawan Ridwansyah Yosanova Savitry
 Special Session by
Honourable Guest Lecturer

Half Hour with

Minister for Tourism & Creative Economy
Dr. Sandiaga Salahuddin Uno
Introduction(?) to Marketing

5
 Agenda

1. Final Exam

2. Discussion: What is Strategy

3. Discussion: Marketing Myopia

 9 MARKETING PRINCIPLES
(LEGACY MARKETING)

• STRATEGY: Segmentation – Targeting – Positioning (STP)

• TACTIC: Differentiation – Marketing Mix (4P) – Selling
• VALUE: Brand – Service – Process
 12 Cs of New Wave Marketing
(Kartajaya, 2008)

8
 Final Exam on
New Wave Marketing
▪ Each group find cases of 4 companies applying 4 Cs of the
New Wave Marketing
▪ Finalize on 7 November and create a video to be
submitted by 20 November.

Group Task 1 Task 2 Task 3 Task 4

1 Communitiza- Confirming Clarifying Coding
tion

2 Co-Creation Currency Communal Conversation

Activation

3 Commerciali- Character Caring Collaboration

zation
 Content of Video
(max 10 minutes for each C)

▪ Brief profile of the company

▪ How does it apply a particular concept of a C in New

Wave Marketing?

▪ How does it differ from Legacy Marketing approach

in the corresponding concept?

▪ Low-budget high-impact marketing: does it really

apply to this case?
 What Is Strategy?
(Porter, 1996)

• Why operational effectiveness is not a

strategy?
• The Origins of Strategic Positions:
– Variety-based positioning
– Needs-based positioning
– Access-based positioning
• Achieving Strategic fit for competitive
advantage and sustainability
– Simple consistency
– Reinforcing activities
– Optimization of effort
 PRODUCTIVITY FRONTIER:
The Limit to Operational Effectiveness

• Civic changed rear disc

brakes to drum brakes and
cheaper backseat’s fabric
• Corolla unpainted bumper
and cheaper seats.
• Customer unhappy! Cheaper
cost has a limit to quality.
12
 Strategy ≠ Being BETTER
Strategy = Being DIFFERENT

Not just any kind of DIFFERENCE, but must be a

difference that has VALUE for customers through 13
STRATEGIC POSITIONS.
 WHICH POSITIONING is….?
$ $

a b

Variety-based positioning? Needs-based positioning?

14
 IKEA: Simple
Consistency of Reinforcing Activities

“Recreational” Impact

15
Cost Efficiency
 Positioning LCC: Result
of Reinforcing Activities

*) Filiz McNamara and Vicki Troftgruben, “Air Asia The Worlds Lowest Cost Airline,” (2012). Retrieved from 16
http://www.academia.edu/1508051/AirAsia_The_Worlds_Lowest_Cost_Airline
 Strategic Fit requires
TRADE-OFFS
Continental Airlines’ Continental Lite’s
BusinessFirst Low Cost Carrier

Continental
+ = acquired
by
BusinessFirst Seats
United Airlines
(2012)

17
BusinessFirst In-flight Meal RIP (1993-1995)
 Marketing Myopia
(Levitt, 1960)

• What happened to US railway industry? Why?

• How about the Indonesian railway?

• What is the key for Indonesian railway

transformation?
What Industry Are They In?

19
 Marketing Myopia
(Levitt, 1960)

• The stories of:

– Petroleum industry
– Electronic industry
– Convenience store vs supermarket
– Ford

• Business myths drive obsolescence:

– Population Growth ensures Growth
– No Substitute Availability
– Mass Production is Key
– Preoccupation with Product
 The Industries Levitt
Warned Against Myopia
Perils of Petroleum Automotive Electronic Product
ICE Provincialism

Top mgmt with engineering-

science-production orientation

21
 Marketing Myopia
“The belief that there is no competitive substitute for the industry’s
major product” (Theodore Levitt, 1960)

“Businesses will do better in the end if they

concentrate on meeting customers’ needs
rather than on selling products”

22