B) Support activities:
The firm’s task is to
in eachvalue-creating activity andto look for ways to improveperformance.
Core business processes:
The market sensing process (marketing intelligence).2.
The new offering realization process (research and development).3.
The customer acquisition process (defining target markets and consumers).4.
The customer relationship management process (deeper understanding of consumers).5.
The fulfillment management process (receiving, shipping, and collecting payments).
Strong companies develop superior capabilities in these core business processes.
: Wal-Mart is strong in stock replenishment. Computer system is connected to suppliers, to shipreplacement merchandise at the same rate it moves off the shelf. (Vendor managed inventories system
Strong companies also reengineer the workflows and build cross-functional teams responsible for eachprocess.
: Xerox Customer Operations Group links sales, shipping, installation, service, andbilling smoothly into one another.
Many companies have partnered with suppliers and distributors to create a superior value-deliverednetwork.
C) Value-delivery network (supply chain).
To be successful today, a firm must look for competitive advantages beyond its own operations
to itssuppliers and distributors to create a superior value-delivery network (supply chain).
Companies need resources (labor, materials, energy, etc.)1)
: the essence of the business
outsource if competency is cheaper and available.2)
Competitive advantage: =
(excellence in broader business processes).3)
Competitive advantage: =
A Holistic Marketing Orientation and Customer ValueFigure2.3
shows the interaction between customers, company, collaborators, and value-based activities(value exploration, value creation, and value delivery) to create, maintain, and renew customer valueHolistic marketing addresses three key management questions:1)
identify new value opportunities.2)
create more promising new value offerings.3)
deliver the new value offerings more efficiently.
requires the understanding of the relationships and interactions among these three spaces.
Customer’s cognitive space
(reflects existing and latent needs and includes participation, stability,freedom, and change).
(broad versus focused scope of business and depth physical versusknowledge-based capabilities).
collaborator resource space
(horizontal and vertical partnerships).
Marketer’s need to:
from the customer’s view.
Utilize core competencies.
Select and manage
from its collaborative networks.Business
may be necessary to maximize core competencies.a. (Re) defining the
big idea.b. (Re) shaping the
lines of business.c. (Re) position the
company’s brand identity
What Companies Must Become?Often requires an investment in infrastructure and capabilities.