Product development Company growth by offering modified or new products to

Product development company growth by offering

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Product development : Company growth by offering modified or new products to current market segments. Diversification: Company growth through starting up or acquiring businesses outside the company’s current products and markets. In addition to customer relationship management, marketers must also practice partner relationship management
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Value chain: The series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm’s products. The firm’s success depends not only on how well each department performs its work but also on how well the various departments coordinate their activities Success depends on how well each department performs its work of adding customer value and on how the company coordinates the activities of various departments. 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. The strategic plan defines the company’s overall mission and objectives. Marketing’s role is shown in Figure 2.4, which summarizes the major activities involved in managing a customer-driven marketing strategy and the marketing mix. Marketing strategy: The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships. Market segmentation: Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs. Market segment: A group of consumers who respond in a similar way to a given set of marketing efforts. Market targeting: The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. Most companies enter a new market by serving a single segment; if this proves successful, they add more segments. For example, Nike started with innovative running shoes for serious runners. Large companies eventually seek full market coverage. Nike now makes and sells a broad range of sports
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products for just about anyone and everyone, with the goal of “helping athletes at every level of ability reach their potential. Positioning: Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Differentiation: Actually differentiating the market offering to create superior customer value. Marketing mix: The set of tactical marketing tools—product, price, place, and promotion—that the firm blends to produce the response it wants in the target market. An effective marketing program blends each marketing mix element into an integrated marketing program designed to achieve the company’s marketing objectives by delivering value to consumers.
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