100709 Lecture Posting

100709 Lecture Posting - Market Orientation ENG 185A and...

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Market Orientation ENG 185A and 285A October 7, 2009 Karen Smith Bogart
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Today DELL Case Market orientation Innovation Life Cycles
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Why has the direct sales model worked for Dell in the US? What are the limitations to the direct model in China? What are the issues in managing both the “marketplace” and “marketspace” at the same time? What issues should other companies consider when embarking on global electronic commerce programs?
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Company’s Value Chain Inbound logistics Operations Marketing and sales Services Outbound logistics Company infrastructure Human resource management Technology development Procuremen t Profit Marketing and sales Operations Services Outbound logistics Inbound logistics
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Internal Competitive Assessment Ranking relative to “best in industry” Operations/manufacturing Operations/manufacturing Marketing Marketing Research and development Research and development and engineering and engineering Customer service/satisfaction Customer service/satisfaction Management Management Financial resources Financial resources Major weakness Major weakness Major strength Major strength
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Value Chains: Part of a Total Value System Supplier Value Chain Firm Value Chain Channel Value Chain Upstream Value Perform valuable activities that complement the firm’s activities Buyer Value Chain Each firm must eventually find a way to become a part of some buyer’s value chain Ultimate basis for differentiation is positioning in a buyer’s value chain This creates VALUE!! Value chains vary for firms in an industry, reflecting each firm’s unique qualities No “Middleman” Customer Feedback
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Product Life Cycle Importance of Value Chain Management Importance of Value Chain Management
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Intel - Product / Strategy Life Cycle
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High Technology Marketing Characteristics: Market Uncertainty Technological Uncertainty Competitive Volatility Other Characteristics?
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Market Uncertainty Consumer fear, uncertainty and doubt (FUD) Customer needs change rapidly and unpredictably Customer anxiety over the lack of standards and dominant design Uncertainty over the pace of adoption Uncertainty over/inability to forecast market size
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Technology Uncertainty Uncertainty over whether the new innovation will function as promised Uncertainty over timetable for new product
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100709 Lecture Posting - Market Orientation ENG 185A and...

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