A game theory approach to selecting marketing-mix strategies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mansour Abedian ◽  
Atefeh Amindoust ◽  
Reza Maddahi ◽  
Javid Jouzdani
Keyword(s):  
Game Theory ◽  
Nash Equilibrium ◽  
Marketing Strategy ◽  
Equilibrium Model ◽  
Marketing Mix ◽  
Marketing Strategies ◽  
Theory Approach ◽  
Market Place ◽  
Content Type ◽  
The Game Theory

PurposeAdopting efficient marketing strategies is a challenging task in a competitive market place involving complex marketing planning, techniques and mechanisms to identify the best course of action under these circumstances and finding optimal solutions or stable outcomes. Decisions and strategies of competitors in the market influence the selection of the appropriate marketing strategy. The main purpose of this paper is to develop a mathematical methodology based on the game theory approach for planning optimal marketing-mix strategies in dynamic competitive markets, taking into account strategic foresight and interaction effects.Design/methodology/approachThe game theory approach, as a decision-making tool in conflict situations, is suggested for planning and adopting optimal marketing strategy. The main intellectual attraction of the game theory is essentially a question of how to act in gaming situations against highly rational opponents A kind of static, finite and non-cooperative game analytics approach has been developed for this issue, and the proposed model has been implemented to design optimal marketing strategies for two top brands of the automotive parts market in Iran.FindingsThe findings of this study show that the optimal marketing-mix strategy for brand A is pricing and for brand B is the product strategy.Practical implicationsGame theory and the Nash equilibrium model can provide a practical approach to find and adopt the right strategy, know competitors' movements and strategies and get more profit.Originality/valueThe integration of the game theory approach into the marketing mix framework has been adopted as a generalized model for marketing strategy planning and analysis as well as to resolve some shortcomings of the marketing mix framework. The Nash equilibrium model has been used to analyze the results. The incorporation of game theory into marketing models has the potential to enrich the scope of marketing modeling.

scholarly journals Analisis Game Theory pada Strategi Bersaing Alfamart dan Indomaret di Kebumen

2021 ◽  
Vol 3 (2) ◽  
pp. 251-259
Author(s):  
An Nisa Nur Laila ◽  
Kabul Trifiyanto
Keyword(s):  
Game Theory ◽  
Marketing Strategy ◽  
Marketing Mix ◽  
Marketing Strategies ◽  
Sales Volume ◽  
Validity And Reliability ◽  
Product Price ◽  
Physical Evidence ◽  
Promotion Strategies ◽  
Product Strategies

Alfamart and Indomaret are the market rulers in Indonesia. According to research firm Nielsen, Alfamart and Indomaret take 87% market share (Gumiwang, 2019). Both retailers compete in opening their outlets which can influence marketing strategies and increase sales volume. This study aims to determine the optimal marketing strategy through game theory that is oriented towards the advantages of company facilities that are prioritized by customers and to find out what strategies are appropriate to be improved and maintained so that customers are more satisfied. Using the SPSS 24 Version tool to calculate the level of validity and reliability of each attribute given and also to determine a Cartesian chart to determine Importance Performance Analysis and use the POM-QM 4 software to determine what strategy is superior to Alfamart and Indomaret. The elements of the marketing mix used are Product , price, Promotion, Place, People, physical evidence and process. The purpose of this research is to get an optimal marketing strategy through game theory that is oriented to the advantages of company facilities that are prioritized by customers and to find out what strategies are appropriate to improve so that customers are more satisfied. The results showed that Alfamart was superior in implementing promotion strategies and Indomaret was superior in implementing product strategies.

scholarly journals Using the mathematical apparatus of game theory in strategic marketing

1970 ◽  
pp. 116-123
Author(s):  
Є.А. Івченко ◽  
M.M. Бучнєв
Keyword(s):  
Mathematical Model ◽  
Game Theory ◽  
Marketing Strategy ◽  
Optimal Strategies ◽  
Marketing Strategies ◽  
Strategic Marketing ◽  
Mathematical Apparatus ◽  
The Game Theory ◽  
Marketing Activities ◽  
The Cost

The article discusses the use of the mathematical apparatus of game theory in strategic marketing. The use of the game theory toolkit in the formation of the marketing strategies of an enterprise has been investigated. According to the results of the study, it has been established that the introduction of game theory methods into marketing activities will make it possible to analyze complex socio-economic systems for solving strategic problems. Game theory models can be thought of as games of strategies or actions, such as setting prices, setting the size of output, determining the cost of advertising, or determining the cost of promoting products to the market. It is noted that game theory can predict the results of competitive situations and help choose optimal strategies. For practical work in strategic marketing, it is of particular importance that game theory allows you to choose optimal strategies that can improve the structure and outcome of the game. The use of the conceptual apparatus of the theory in economic theory is analyzed using the example of quantitative models of duopoly and the concept of equilibrium. The description of the mathematical model of strategic interaction is formalized, which reflects the inherent features of the conflict. The procedure for applying game theory in the formation of marketing strategies of enterprises is analyzed and the main stages of the procedure for choosing an optimal marketing strategy using game theory are highlighted. An algorithm for applying the mathematical apparatus of game theory in marketing activities is proposed. When developing a marketing strategy for an enterprise, general marketing goals are considered, depending on the level of strategic management and goals concerning individual elements of the marketing mix. A "tree of goals" of an enterprise for a marketing complex is proposed when forming a marketing strategy of an enterprise using the mathematical apparatus of game theory. A payment matrix has been formed, which makes it possible to determine possible optimal strategies and options for the game. The problems of using the mathematical apparatus in the formation of the marketing strategies of the enterprise are highlighted. The conceptual apparatus has been determined and basic tasks have been formulated, with the help of which the game theory toolkit allows making decisions in the marketing activities of an enterprise. Keywords: game theory, strategy, strategic marketing, marketing strategy, strategic decisions, mathematical model, decision making.

scholarly journals IMPLEMENTASI STRATEGI PEMASARAN JASA PENDIDIKAN DI SMP MUHAMMADIYAH 1 DEPOK YOGYAKARTA SERTA PENINGKATAN PELAYANAN PENDIDIKAN

2021 ◽  
pp. 37
Author(s):  
Muhammad Muhammad Iqbal Muhammad Iqbal
Keyword(s):  
High School ◽  
Marketing Strategy ◽  
Junior High School ◽  
Junior High ◽  
Geographical Location ◽  
Services Marketing ◽  
Marketing Mix ◽  
Marketing Strategies ◽  
Educational Services ◽  
Theory Approach

Abstrak Penelitian ini difokuskan di SMP Muhammadiyah 1 Depok, ketika tahun 2009 SMP ini mengalami keterpurukan. Jika sekolah tidak mampu menerima anak-anak lebih dari 10 siswa maka SMP ini terancam akan ditutup. Faktor keterpurukan SMP ini disebabkan oleh marketing yang gagal dan pelayanan jasa pendidikan yang menurun. Dengan menerapkan implementasi strategi pemasaran jasa pendidikan, SMP Muhammadiyah 1 Depok ini mampu bangkit dari keterpurukan. Sehingga konsumen, orang tua, dan masyarakat kembali yakin dan percaya untuk menyekolahkan anaknya di SMP ini. Penelitian ini bertujuan untuk mengetahui implementasi strategi pemasaran jasa pendidikan dalam meningkatkan pelayanan pendidikan SMP Muhammadiyah 1 Depok Yogyakarta. Penelitian ini adalah penelitian kualitatif dengan menggunakan pendekatan teori strategi pemasaran jasa pendidikan. Data dikumpulkan melalui: (1) observasi, (2) dokumentasi, dan (3) wawancara mendalam kepada kepala sekolah, waka humas, waka kesiswaan, orang tua siswa dan siswa. Teknik validasi dan keabsahan data dengan triangulasi sumber dan triangulasi teknik. Hasil penelitian menunjukkan implementasi strategi pemasaran jasa pendidikan dalam meningkatkan pelayanan pendidikan SMP Muhammadiyah 1 Depok yaitu: (1) melakukan strategi pemilihan pasar dengan melakukan segmentasi pasar, targeting dan positioning. (2) menetapkan marketing mix dengan cara menerapkan produk-produk yang berkualitas dari SMP ini, menonjolkan letak geografisnya yang cukup strategis, menerapkan harga yang bersaing, dan juga melakukan langkah-langkah promosi serta langkah-langkah lainnya. Kata Kunci: Implementasi Strategi Pemasaran, Pelayanan Pendidikan, Marketing mix. Abstract This research focused on SMP 1 Muhammadiyah Depok Sleman Yogyakarta, in 2009 this junior high school experienced adversity. If the school was unable to receive more than 10 students, this school would be closed. This SMP downturn is caused by failed marketing and declined educational services. By applied implementation the marketing strategy of educational services, SMP 1 Muhammadiyah Depok able to rise from adversity. So that consumers, parents and the community would trust and believe in sending their children to this junior high school. This study was aimed at determining the implementation of educational services marketing strategies in improving educational services in SMP 1 Muhammadiyah Depok Yogyakarta. This research was a qualitative research used the marketing strategy theory approach to educational services. Data were collected through: (1) observation, (2) documentation, and (3) in-depth interviews with principals, public relations staff, student affairs, parents of students, and students. Data validation and validity techniques were undertaken by using source triangulation and technical triangulation. The results of the study indicated the implementation of marketing services marketing strategies in improving education services in SMP 1 Muhammadiyah Depok, namely: (1) implementing market selection strategies by segmenting the market, targeting and positioning. (2) establishing the marketing mix by applying quality products from this junior high school, highlighting its geographical location that is quite strategic, applying competitive prices, and also taking promotional steps and other steps. Keywords: Marketing Strategy Implementation, Educational Services, Marketing mix.

A three-level supply chain with warranty services, pricing and marketing decisions

2019 ◽  
Vol 14 (3) ◽  
pp. 686-716 ◽  
Author(s):  
Ata Allah Taleizadeh ◽  
Mahtab Sherafati
Keyword(s):  
Game Theory ◽  
Cooperative Games ◽  
Maintenance Cost ◽  
Theory Approach ◽  
Content Type ◽  
Agent Based ◽  
Warranty Period ◽  
Service Contracts ◽  
The Game Theory ◽  
Optimal Maintenance

Purpose This paper aims to present various three-level service contracts among the following three participants: a manufacturer, an agent and a customer. The interaction between the aforementioned participants will be modeled using the game theory approach. Under non-cooperative and cooperative games, the optimal sale price, warranty period and warranty price for the manufacturer and the optimal maintenance cost (repair cost) and marketing expenditure for the agent are obtained by maximizing their profits. The satisfaction of the customer is also maximized by being able to choose one of the suggested options from the manufacturer and the agent, based on the risk parameter. Design/methodology/approach Three-echelon supply chains with marketing and warranty services are studied. Game-theoretic approaches (non-cooperative and cooperative) are presented. The non-cooperative approaches are static (NE) and dynamic (Stakelberg) models. The cooperative approach is related to bargaining models (Nash bargaining games). The authors develop a sensitivity analysis of some parameters and their effect. Findings Based on the mentioned drawbacks (i.e. lack of a model containing warranty, marketing and pricing), despite their importance, a developed model is proposed in this research to cover one of the research gaps. In addition, main contributions of this paper that differentiate it from the existing papers are regarding inventory, lost sale and lost goodwill, which are significant in the comparison environment. Another advantage of this study is related to the solution approach, the game theory. Twofold of the games theoretical, i.e. cooperative (in three forms) and non-cooperative are considered, because of their importance. Three types of non-cooperative games are presented as follows: Nash equilibrium – each echelon decides respectively and simultaneously; manufacturer-Stackelberg – the manufacturer has more power than the agent and the agent has more power than the customer; and customer-Stackelberg – customer is leader of the agent and the agent is the leader of manufacturer. The involved cooperative game in this paper is the bargaining problem that the participants can determine how to share the additional profits. Originality/value In this paper, various three-level service contracts will be presented among the following three participants: a manufacturer, an agent and a customer. The interaction between the aforementioned participants will be modeled using the game theory approach. Under non-cooperative and cooperative games, the optimal sale price, warranty period and warranty price for the manufacturer and the optimal maintenance cost (repair cost) and marketing expenditure for the agent are obtained by maximizing their profits. The satisfaction of the customer is also maximized by being able to choose one of the suggested options from the manufacturer and the agent, based on the risk parameter. Several numerical examples are used to illustrate the models presented in this paper. Finally, the authors develop a sensitivity analysis of some parameters and their effects on the objective functions.

Implementing capabilities-based quality management and marketing strategies to improve business performance

2016 ◽  
Vol 33 (8) ◽  
pp. 1124-1137 ◽  
Author(s):  
Satish Mehra ◽  
Joshua T. Coleman
Keyword(s):  
Quality Management ◽  
Marketing Strategy ◽  
Organizational Performance ◽  
Management Practices ◽  
Retail Banking ◽  
Marketing Strategies ◽  
Content Type ◽  
Quality Management Practices ◽  
Study Results ◽  
The Impact

Purpose The purpose of this paper is to study the impact of successfully coordinating infrastructural capabilities, such as technology, and structural capabilities, such as people, on the performance of service businesses. Effective coordination of these two types of capabilities is shown to impact the implementation of quality management practices and the design of marketing strategy, both of which when utilized properly, lead to enhanced organizational performance. Design/methodology/approach The authors surveyed retail banking firms for this study to analyze empirical data on infrastructural and structural capabilities. Results were corroborated on the basis of in-depth interviews with several banking managers to provide real world verification of the findings. Findings Results indicate that both infrastructural and structural capabilities positively impact the design of marketing strategy, while only structural capabilities impact the implementation of quality management practices. Both, successfully implemented quality management ideals and a well-designed marketing strategy, are shown to enhance overall organizational performance. Research limitations/implications Research was conducted on a specific sector of the service industry, the banking sector. Also, the relatively small size of the study sample may have impacted the outcome of research applicability in some large businesses. Continuously emerging financial regulations could not be incorporated in the study. On the positive side, strong managerial feedback provides guidance toward adopting the study results, and lays the foundation for future research. Originality/value As today’s rapidly evolving society pushes people out of service encounters, replacing them with efficient and cost-saving technology, roles of both the people and the technology in an organization must be fully understood. This paper shows that, despite the exponential growth of technological innovation, both people and technology are critical to enhancing organizational performance through sound quality management practices and supportive marketing strategies.

scholarly journals International marketing strategies of emerging market firms

2018 ◽  
Vol 35 (2) ◽  
pp. 202-214 ◽  
Author(s):  
Nathaniel Boso ◽  
Yaw A. Debrah ◽  
Joseph Amankwah-Amoah
Keyword(s):  
Marketing Strategy ◽  
Emerging Market ◽  
International Marketing ◽  
Marketing Strategies ◽  
Future Research ◽  
Special Issue ◽  
Content Type ◽  
Theoretical Perspectives ◽  
International Marketing Strategy ◽  
Emerging Market Firms

Purpose The purpose of this paper is twofold: to publish scholarly works that extend knowledge on the drivers, consequences and boundary conditions of international marketing strategies employed by emerging market firms of all sizes and types; and to advance a narrative for future research on emerging market firms’ international marketing activities. Design/methodology/approach To achieve this agenda, the authors invited scholars to submit quality manuscripts to the special issue. Manuscripts that addressed the special issue theme from varied theoretical perspectives and methodological approaches were invited. Findings Out of 70 manuscripts reviewed, 7 are eventually accepted for inclusion in this special issue. The papers touched on interesting research topics bothering on international marketing practices of emerging market firms using blend of interesting theoretical perspectives and variety of methods. Key theoretical perspectives used include resource-based theory, internationalization theory, institutional theory and corporate visual identity theory. The authors employed unique sets of methods including literature review, surveys, panel data, and process-based qualitative and case-study enquiries. The authors used some of the most advanced analytical techniques to analyze their data. Originality/value This introduction to the special issue provides a review of the extant literature on the international marketing strategy of emerging market firms, focusing on summarizing key empirical contributions on the topic over the last three decades. Subsequently, the authors discuss how each paper included in this special issue helps advance the agenda to develop scholarly knowledge on emerging market firms’ international marketing strategy.

Opentable as a marketing strategy for modern Muslim funeral product in Indonesia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Witanti Prihatiningsih ◽  
Ninis Agustini Damayani ◽  
Asep Suryana ◽  
Susie Perbawasari
Keyword(s):  
Qualitative Research ◽  
Marketing Strategy ◽  
Design Methodology ◽  
Phenomenological Approach ◽  
Marketing Strategies ◽  
Future Research ◽  
Content Type ◽  
Funeral Home ◽  
Potential Customers ◽  
Practical Implications

Purpose The Opentable strategy is considered a taboo because of its ability to take advantage of peoples’ grief. Therefore, this study aims to explore the Opentable (Exhibition) as a marketing strategy for modern Muslim funeral products, considered a luxury by most people in Indonesia. Design/methodology/approach This is a qualitative research with a phenomenological approach used to collect data from six Memorial Advisors (MAs) through interviews. Findings The result showed that the Opentable strategy was carried out to introduce the concept of a modern Muslim funeral home and its products. Furthermore, MA does not encourage sales during Opentable, rather, it uses the process to obtain complete data from potential customers. Practical implications This research serves as a guidance for MA and other similar professions to socialize products uncommon or considered taboo in society. It also provides a repertory of new marketing strategies, especially for targeted and uncommon products. Originality/value To the best of the knowledge, this is the first research to explore Opentable (Exhibition) as a marketing strategy for modern Muslim funeral products in Indonesia. Therefore, future research is needed on other marketing strategies.

scholarly journals The role of industries’ environmental reputation and competitive intensity on sustainability marketing strategy

2019 ◽  
Vol 23 (1) ◽  
pp. 3-24
Author(s):  
Mohammad Taherdangkoo ◽  
Beikpour Mona ◽  
Kamran Ghasemi
Keyword(s):  
Marketing Strategy ◽  
Structural Equation ◽  
Environmental Concern ◽  
Customer Segmentation ◽  
Influential Factors ◽  
Marketing Strategies ◽  
Competitive Intensity ◽  
Content Type ◽  
Adoption And Implementation ◽  
The Impact

Purpose This paper aims to highlight a model of industry drivers (industries’ environmental reputation and competitive intensity) that affect the sustainability marketing strategy segmentation, targeting and positioning based on customers’ environmental concern and explore the circumstances under which such a strategy affects performance. Design/methodology/approach The authors examined 64 Iranian export companies, which adopted sustainability marketing strategies across seven different industries. Achieved data are analyzed using a structural equation model methodology. Findings The results indicate that industries’ environmental reputation is positively related to the sustainability marketing strategies based on customers’ environmental concern and leads to superior financial and market performance. They also posit that competitive intensity has no significant effect on sustainability marketing strategies. Research limitations/implications This study specifically examines the impact of industry drivers on sustainability marketing strategy and performance. Logically, there might be other factors affecting the sustainability or other value dimensions that are not addressed in this study. Practical implications This paper provides some understanding of how organizations strength their sustainability marketing strategy, and they have to consider what factors to adopt such strategy. This paper also facilitates a better understanding of the customers’ needs and concern as a factor influencing sustainability marketing strategy adoption and implementation. Identifying the customer segmentation and market targeting based on the industry’s environmental can lead to the business will normally tailor the marketing mix (4Ps) with the needs and expectations of the target in mind. Originality/value This paper strengthens the effect of environmental concern of customer to understand what influences the success of the sustainability marketing adoption and implementation by investigating the most influential factors such as industries’ environmental reputation and competitive intensity.

Model of Intrusion Detection Based on the Game Theory

2013 ◽  
Vol 347-350 ◽  
pp. 3971-3974 ◽  
Author(s):  
Heng Xiao ◽  
Cao Fang Long
Keyword(s):  
Game Theory ◽  
Nash Equilibrium ◽  
Network Security ◽  
Intrusion Detection ◽  
Working Group ◽  
Ad Hoc ◽  
Game Model ◽  
The Game Theory ◽  
Network Application ◽  
Stage Game

With the development of network application, network security is facing greater pressure. Based on the characteristics of intrusion detection in the wireless network of the Ad hoc working group, the article introduces the game theory, proposes a game model of network security, concluds the Nash equilibrium in the stage game, repeats game, the pareto Nash equilibrium, more attack both income and payment, so that they get the best choice.

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