Tuesday, February 13, 2007

Marketing management -- Chapter 2

developing marketing strategies and plans



The value delivery process involves choosing (or identifying), providing (or delivering), and communicating superior value. The value chain is a tool for identifying key activities that create value and costs in a specific business.



Strong companies develop superior capabilities in managing core business processes such as new product realization, inventory management, and customer acquisition and retention. Managing these core process of effectively means creating a market network in which the company works closely with all parties in the production and distribution chain, from suppliers of raw materials to retail distributors. Companies no longer compete -- marketing networks do.



According to one view, holistic marketing maximizes value exploration by understanding the relationships between the customers cognitive space, the companies competence space, and the collaborators resource space; maximizes value creation by identifying new customer benefits from the customers cognitive space, utilizing core competencies from its business domain, and selecting and managing business partners from its collaborated networks; and maximizes value delivery by becoming proficient at customer relationship management, internal resource management, and business partnership management.



Market oriented strategic planning is the managerial process of developing and maintaining a viable fit between the organization's objectives, skills, and resources and it's changing market opportunities. The aim of strategic planning is to shape the company's businesses and products said that they yield target profit and growth. Strategic planning takes place at four levels: corporate, division, business unit, and product.



The corporate strategy establishes the framework within which the divisions and business units prepare their strategic plans. Setting a corporate strategy entails for activities: defying the corporate mission, establishing strategic business units (SBUs), assigning resources to each SBU based on its market attractiveness and business strength, and planning new businesses and downsizing older businesses.



Strategic planning for individual businesses entails the following activities:

defining the business mission

analyzing external opportunities and threats

analyzing internal strengths and weaknesses

formulating goals

implementing the program's

and gathering feedback in exercising control.



Each product level with in a business unit must develop a marketing plan for achieving its goals. The marketing plan is one of the most important outputs of the marketing process.





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