Thomas Bieger - Marketing Concept - The St. Gallen Management Approach

utb 4464

[1] Eine Arbeitsgemeinschaft der Verlage

Brill | Schöningh – Fink · Paderborn

Brill | Vandenhoeck & Ruprecht · Göttingen – Böhlau

Verlag · Wien · Köln Verlag Barbara Budrich · Opladen · Toronto

facultas · Wien

Haupt Verlag · Bern

Verlag Julius Klinkhardt · Bad Heilbrunn

Mohr Siebeck · Tübingen

Narr Francke Attempto Verlag – expert verlag · Tübingen

Ernst Reinhardt Verlag · München

transcript Verlag · Bielefeld

Verlag Eugen Ulmer · Stuttgart

UVK Verlag · München

Waxmann · Münster · New York

wbv Publikation · Bielefeld

Wochenschau Verlag · Frankfurt am Main

[3] Thomas Bieger

2nd, revised edition

Haupt Verlag

[4] Thomas Bieger, Prof. Dr., full professor of Business Administration with special emphasis on tourism. Dean of the Faculty of Management at the University of St. Gallen (2003–2005). President of the University of St. Gallen (2011–2020).

The second edition of this book is congruent with the third edition of the German version (Das Marketingkonzept im St. Galler Management-Modell):

978-3-8252-5091-1 (Print),

978-3-8463-5091-1 (E-Book)

2nd edition: 2021

1st edition: 2015

detailed bibliographic data is available at the

Deutsche Nationalbibliothek: http://dnb.dnb.de

All rights reserved.

Copyright © 2021 Haupt

This book, including all of its parts, is protected by copyright. Every kind of use beyond the limits of the narrow restrictions of the law of copyright is not allowed without the explicit consent of the editor. Noncompliance to these restrictions are inadmissible and criminal. This applies equally for the duplication, translation, microfilming as well as for digital storage and subsequent processing of the book or any of its parts.

Cover design: Atelier Reichert, Stuttgart

www.haupt.ch

UTB number: 4464

ISBN 978-3-8252-5752-1 (Print)

ISBN 978-3-8463-5752-1 (E-Book)

[5] The St. Gallen Management Model created a comprehensive orientation framework for the management of companies and organizations of all kinds. Business processes play a special role in the model. They enable the real core function that justifies the existence of a company or organization, which is to deliver goods and services to third parties, usually for money.

This book is guided by the St. Gallen Management Model and, therefore, focuses on business processes. It also follows the approach of the marketing concept as an overall planning and designing approach, not just for marketing, but for all business functions. The content of this book thus offers an introduction to marketing as well as the design of business processes as a whole.

The book addresses two targets and thus two target groups: To begin with, it serves as a basis for the introduction to business administration as part of the Marketing Management curriculum during the Assessment Year at the University of St. Gallen. It covers the subject areas of marketing, performance and innovation.

At the same time, it is designed to appeal to the public at large as a basic text for study or practice. It serves as an introduction to or an update of knowledge in the areas of marketing and performance provision/performance process, while also presenting the marketing concept as a pragmatic approach of thought and action used by generations of (marketing) managers.

The outline of the book follows the usual structure of a marketing concept and is also the basis for the division into six lecture blocks at the University of St. Gallen:

1. Business Processes and Marketing Concept within the St. Gallen Management Model — an Introduction

2. Market Analysis — from a Static to a Dynamic Point of View

3. Marketing Strategy — from Market Segmentation to Positioning Strategy

[6]

4. Marketing Tool Application 1: Product Design and Performance

5. Marketing Tool Application 2: Pricing, Promotion and Distribution

6. Innovation and Controlling — Meta Processes of Business Activity

As a topical guide for decision-makers and as teaching material on a university level, the book’s aim is not maximum depth and the transfer of detailed knowledge. Rather, the goal is contextual knowledge and new perspectives in thinking. As a textbook, it primarily points out key sources.

At the same time, the integrative approach cultivated at the University of St. Gallen is taken into account. This results from a focus on the St. Gallen Management Model as well as from methodically including the approach of networked thinking in the market-analysis section and by cross-referencing other disciplines, especially economics and law.

In part, this book is based on principles, concepts and sections of the book “Einführung in die Managementlehre” by Dubs, Euler, Rüegg-Stürm and Wyss (2009), which was used previously as a textbook at the University of St. Gallen and to which the author also contributed. The following authors also worked on the previous book in the area of business processes: Günther Schuh, Thomas Friedli, Torsten Tomczak, Fritz Fahrni and Sven Reinecke.

I wish to thank Mrs. Margareta Brugger for transcribing the manuscript, student assistant Jessica Schulten-Baumer for revising and editing the text, and my wife Barbara for critical reading. I also thank Samuel Heer for his valuable support, not only in revising this book but also in our efforts to offer actual and method-oriented lectures on the Assessment level of the University of St. Gallen. I also thank my colleagues o. Univ. Prof. Dr. Johannes Rüegg-Stürm and assistant professor Dr. Simon Grand for stimulating discussions, the good cooperation, and many valuable inputs.

May 2015

Thomas Bieger

[7] After six years of use in the first semester at the University of St. Gallen, a new edition of the “Marketing Concept” became necessary. This second edition integrates the latest developments of the St. Gallen Management Model as well as some important developments of the discipline, such as business model concepts.

I would like to thank Simon Kuster for his care in handling the process and his contributions. Thanks also go to Pietro Beritelli and Jay Binneweg for providing feedback on the English version. The second edition of this book is congruent with the third edition of the German version (Das Marketingkonzept im St. Galler Management-Modell).

July 2021

Thomas Bieger

[13] Fig.1: Example of a value-creation chain

Fig.2: Enterprise systems, value-creation networks, value-creation chains

Fig.3: Value-creation chain, transaction interfaces and enterprise

Fig.4: Management cycle according to Fayol

Fig.5: First generation of the St. Gallen Management Model

Fig.6: Stakeholders of an enterprise

Fig.7: St. Gallen Management Model, latest development of the third generation, business perspective on organizational value creation

Fig.8: Triple bottom line

Fig.9: Contents of the three meaning horizons

Fig. 10: Primary processes or business processes, according to Porter

Fig. 11: Business processes and markets

Fig. 12: Perceived customer value

Fig. 13: Conceptual relation between customer value, value creation and enterprise value; as an example of a profitability link according to Larivière, 2008