Finally within individual business units marketing designs strategies for

Finally within individual business units marketing

This preview shows page 6 - 8 out of 19 pages.

Finally, within individual business units, marketing designs strategies for reaching the unit’s objectives. Once the unit’s objectives are set, marketing’s task is to help carry them out profitably. In addition to customer relationship management , marketers must also practise partner relationship management. They must work closely with partners in other company departments to form an effective internal value chain that serves customers. Moreover, they must partner effectively with other companies in the marketing system to form a competitively superior external value delivery network. We now take a closer look at the concepts of a company value chain and a value delivery network. Partnering with Other Company Departments Each company department can be thought of as a link in the company’s internal value chain . That is, each department carries out value-creating activities to design, produce, market, deliver, and support the firm’s products. Marketing department actions can increase purchasing costs, disrupt production schedules, increase inventories, and create budget headaches. Thus, other departments may resist the marketing department’s efforts. Partnering with Others in the Marketing System In its quest to create customer value, the firm needs to look beyond its own internal value chain and into the value chains of its suppliers, distributors, and, ultimately, its customers.
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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 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. Consumers are in the centre. 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. 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.
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