Value chain The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products. A company’s value chain is only as strong as its weakest link. Success depends on how well each department performs its work of adding customer value and on how the company Partnering with Others in the Marketing System More companies today are partnering with other members of the supply chain— suppliers, distributors, and, ultimately, customers—to improve the performance of the customer value delivery network .
Value delivery network The network made up of the company, its suppliers, its distributors, and, ultimately, its customers who partner with each other to improve the performance of the entire system. 4 MARKETING STRATEGY AND THE MARKETING MIX The goal is to create value for customers and build profitable customer relationships. Next comes marketing strategy —the marketing logic by which the company hopes to create this customer value and achieve these profitable relationships. The company decides which customers it will serve (segmentation and targeting) and how (differentiation and positioning). It identifies the total market and then divides it into smaller segments, selects the most promising segments, and focuses on serving and satisfying the customers in these segments. - Marketing strategy The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships. Guided by marketing strategy, the company designs an integrated marketing mix made up of factors under its control—product, price, place, and promotion (the four Ps). To find the best marketing strategy and mix, the company engages in marketing analysis, planning, implementation, and control. Through these activities, the company watches and adapts to the actors and forces in the marketing environment. We will now look briefly at each activity. Customer-Driven Marketing Strategy But before it can satisfy customers, a company must first understand customer needs and wants. Thus, sound marketing requires careful customer analysis. requires careful customer analysis. Companies know that they cannot profitably serve all consumers in a given market —at least not all consumers in the same way. There are too many different kinds of consumers with too many different kinds of needs. Most companies are in a position to serve some segments better than others. Thus, each company must divide up the total market, choose the best segments, and design strategies for profitably serving chosen segments. This process involves market segmentation, market targeting, differentiation , and positioning
Figure 2.4 pg 53 Market Segmentation The market consists of many types of customers, products, and needs. The marketer must determine which segments offer the best opportunities. Consumers can be grouped and served in various ways based on geographic, demographic, psychographic, and behavioural factors. The process of dividing a market into
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- Winter '16
- Simon P. Sigué
- Marketing, SBUs