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How does marketing affect customer value?

How is strategic planning carried out at different levels of the organization?

What does a marketing plan include?

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Successful marketers must focus on delivering value to customers. This is

accomplished by:

Choosing the value – Here marketers do their homework to segment the market, select
the appropriate target, and develop the offerings value proposition.

Providing the value – Entails selecting specific product features, prices, and distribution.

Communicate the value – The third phase, communicating the value, is accomplished
through the use of the sales force, the Internet, advertising, and other communication
methods to announce and promote the product.
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One way that managers can identify ways to create more value is through The Value
Chain, developed by Harvard’s Michael Porter. According to this model, a company is a
collection of activities that are performed to design, produce, market, deliver and
support its products. The Value Chain identifies nine – five primary and 4 support –
activities that create value and cost in a business.

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A firms success depends in part on how well each department performs its role.
However, firms must also coordinate departmental activities to conduct these core
business processes.
Market-sensing – Activities involved in gathering and acting upon information about the
market.

New-offering realization – Research, development, and launch of new high-quality

product offerings quickly and within budgets.

Customer acquisition – All the activities in defining target markets and prospecting for
new customers.

Customer-relationship management – Activities involved in in building deeper

understanding, relationships, and offerings to individual customers.

Fulfillment management process – The activities that related to receiving and approving
orders, shipping the goods on time, and collecting payments.

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Core competencies are the resources and capabilities that comprise the strategic
advantages of a business. Firms must focus on what they do well; things that are the
essence of the business. A core competency must hold the above characteristics.
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Holistic marketing refers to a marketing strategy that considers the whole of a business
and all the different marketing channels as a system. Holistic marketers addresses
three key management questions:

Value Exploration – How the firm identifies new value opportunities.

Value Creation – How efficiently a company creates more promising new value offerings

Value Delivery – How a company uses its capabilities and infrastructure to deliver the
new value offering more efficiently.

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Strategic planning must focus on three key areas: 1) managing a company’s businesses
as an investment portfolio, 2) assessing each business’s strength by considering the
market’s growth rate and the company’s position and fit in that market, and 3)
establishing a strategy.

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Corporate means relating to large companies, or to a particular large company.

A corporation is a form of business organization that doubles as a separate legal entity
from its owners. All corporations are companies, but not all companies are necessarily
corporations.

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A corporate business unit is a separate division within a company that often develops
and implements its own processes independently from the core business or brand while
still adhering to the overall company policies.

The following points highlight the six main objectives of a corporate business unit. The
six-fold objectives are:

1. Organic Objectives
2. Economic Objectives
3. Social Objectives
4. Human Objectives
5. National Objectives
6. Strategic Objective
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Vision:‌It is a mental image of how one wants to see his organization in the future. ‌

Mission: It means what the organization should do to fulfill the vision. ‌

Goal: Goals are broad and long-term milestones that one need to achieve to fulfill the
vision.

Corporate Mission: A corporate mission statement contains the goals and visions that a
company has set for itself and that it strives to achieve.
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In defining the corporate mission, organizations should start by answering Peter

Drucker’s classic questions. What is our business? Who is the customer? What is of
value to the customer? What will our business be? What should our business be? From
these answers the organization can develop a good mission statement.
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A mission statement is a concise explanation of the organization's reason for existence.

The 5 major characteristics of mission statement are……….!

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Strategic goals are the specific financial and non-financial objectives and results a
company aims to achieve over a specific period of time, usually the next three to five
years.
Strategic goals are goals created to identify the intended accomplishment of a business
strategy. When companies create strategic goals, they directly identify what they see as
the outcome of their business efforts.

Strategic goals are most commonly created when a company is mounting a new
strategy.

As an example, a strategic goal example is to enter new markets, so you would set a
goal of getting into X, Y, and Z markets by a certain date. You could also set a goal of
having 15 regional markets in total by a specific date.

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Strategic Business Unit (SBU) implies an independently managed division of a large

company, having its own vision, mission and objectives, whose planning is done
separately from other businesses of the company. It can be a business division,
a product line of the division or even a specific product/brand, targeting a particular
group of customers or a geographical location.

This view often limits a company. A market definition on the other hand describe the
business as a customer-satisfying process.

SBUs can be defined by: 1) Customer needs; Customer groups; and 3) Technology
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A strategic business unit has three characteristics: 1) It is a single business, or a

collection of related businesses, that plan separately from the rest of the company; 2) It
has its own set of competitors; and 3) It has a manager responsible for strategic
planning and profit performance.

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Competitive strategy is a long-term action plan of a company

Directed to gain competitive advantage over its rivals

By evaluating their strengths, weaknesses, opportunities and threats in the industry and
compare it with your own.

Strategic planning requires managers to understand the external and internal

environments. A SWOT analysis allows for these environments to be monitored.

Business units must monitor key macro-environment forces as well as micro-

environment factors. Monitoring the external environment can allow firms to identify
growth opportunities and potential threats to its existing businesses.

To take advantage of opportunities the firm must be aware of its own internal strengths
and weaknesses
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Uniqueness: The thing what makes an entity's products or services more desirable to
customers than that of any other rival.

Productivity: These factors allow the productive entity to generate more sales or
superior margins compared to its market rivals.

Varieties of factor: Competitive advantages are attributed to a variety of factors

including cost structure, branding, the quality of product offerings, the distribution
network, intellectual property, and customer service.

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Cost Advantage – This is a type to sell similar products at lower prices.

Differentiation Advantage – This type can only be achieved using offering products or
services that are unique.

Comparative Advantage – It can be defined as the ability of an organization to

effectively produce goods or services better than its competitors

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Competitive rivalry is a measure of extent of competition among existing firms. It

occurs when two or more firms try and garner favorable market position over its
competitors. Porter’s Five Forces are used in evaluating the competitive rivalry.
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