comm1180 exam notes part 1 PDF

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Value and market opportunities: 

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Value propositions -is the set of beliefs or values it promises to deliver to consumers to satisfy their needs. They need to design strong value propositions to give them a greater advantage to competitors. The Value Chain Analysis: - Primary activities Relate the production and distribution of the firm’s products and services, thus creating value for which customers are willing to pay. (examples are inbound logistics, operations, outbound logistics, marketing & sales and services). - Support activities Do not add value directly to the firm’s products and services, but support the primary activities (examples infrastructure, human resource management, research and development and procurement). Value

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proposition canvas – is a tool created to break the problem of identifying the value proposition down to discrete parts.

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Marketing – is the process by

which marketing organisations engage customers, build strong customer relationships and create customer value in order to capture value from customers in return. - A social and marginal process - By which individual's and organisations obtain what they need and want - Through creating and exchanging value with others 

Types of value that can be created: - Functional/ instrumental value – product has desired characteristics, is useful, or performs a desired function - Experiential/hedonic value – the extent to which a product creates appropriate experiences, feelings and emotions for customers - Symbolic/expressive value – the extent to which customers attach or associate psychological meaning to a product - Cost/sacrifice value – minimising transaction costs

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Role of marketing is to create, communicate, deliver, sustain and capture value for an organisation.

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Types of markets: business to consumer (B2C), Business to business (B2B), consumer to consumer (C2C), Business to Government (B2G)

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Diverse of market – hierarchy of needs

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Segmentation, targeting, Positioning (STP) - Segmentation – based on groups of customers with different needs (which needs can our organisation fill?) - Targeting – greatest value creation potential (which segment is priority for the marketer?). It is usually based on market attractiveness and company fit. - Positioning – the image of our brand in customers minds

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The Ansoff Matrix (strategic options for market opportunities):

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Creeping elegance product designers implement complex and costly features that are not necessarily being paid for by the customer. Value engineering looks at the capital cost of a project and determines whether the function and quality of the results is equal to the perceived

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value. 

Value from customer experience – is a multidimensional construct focusing on a customer’s cognitive, emotional, behavioural, sensorial and social responses to a firm’s offerings during the customers entire purchase journey

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Creating value – understanding customer needs + organisational capabilities = market opportunity

Value of technology: 

Information systems - Products - Methods - Inventions - Standards - It drives development of new IS - IT components = hardware + software + data - IS = IT + procedures + people

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Competitive strategy – A statement that identifies a business’s approach to compete, goals and plans and policies required to carry out those goals.

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Porter’s Competitive Forces Model:

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Competitive advantage – what makes an entity’s goods or services superior to all of the customer’s other choices. - Cost leadership – produce products and/or services at the lowest cost in the industry - Differentiation – offer different products, services or product features to competitors - Innovation – introduce new products and services, add new features to existing products and services, or develop new ways to produce them - Operational effectiveness – improve the manner in which internal business processes are executed so that a firm performs similar activities better than its rivals can - Customer orientation – concentrate on making customers happy Resource based view (RBV) helps understand why some organisations are competitively more successful than others. Resources refer to a bundle of firm-specific assets and organisational capabilities. They can also provide competitive advantage: valuable and Rare (short term), Imitable and non-substitutable (suitability of the competitive advantage).

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IS resources and strategy: - IT assets: tradeable and nonspecific firm assets - Capabilities: capacity to deploy assets using organisation processes (firm specific assets

Performance measurement: 

A measure is the quantification of the dimension, size, or capacity of any object of interest based on comparing it to a standard or defined scale or measurement system.

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Why is measuring performance important - Communication (of organisational performance for stakeholders and helps communicate strategy and business plans) - Tracking performance - Evaluate employees’ performance and use as the basis of rewards - Guide and develop future strategies and performance

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Critical success factors (CSF) are key strategic or operational goal or objective that capture an aspect of performance vital to the organisation’s success Key performance indicators (KPI) are then developed to make these CFS more concrete and quantifiable. They are simple but accurate measures of an employee’s or business units’ progress.

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Integrated reporting framework (IR) – Measurement of value Value created, preserved or eroded by organisations over time manifests itself in increases, decreases or transformations of the capitals caused by the organization’s business activities and outputs. These capitals are: - Financial capital - Manufactured capital - Intellectual capital - Human capital - Social and relational capital - Natural capital

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Types of performance measures: - Financial measures and non-financial measures - Quantitative measures and qualitative measures Characteristics of effective measures include objective, accurate, reliable, lack ambiguity, cost effective, consistent, sensitive and functional.

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Developing measures of value creation - Define value - Determine the critical success factors that capture the firm’s success in creating stakeholder value - Develop measure that indicate the progress of a person/unit/firm’s progress or results against the CSF

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Dysfunctional consequences – undesirable side effects, which occur when measures actually create incentives for individuals to do things the organisation doesn’t want them to do (common types - behavioural displacement, gamesmanship (creation of slack resources and data manipulation), operational delays and negative attitudes)...