1 this chapter, we will address he following — How does marketing affect customer value? How is strategic planning carried out at different levels of the organization? ; What does a marketing plan include? nqDeveloping Marketi | Strategies and Pleas” Ss ey ingrodients of the marketing mana gement proces strategies and plans th: i re insight, creat K Plans that can guide marketing activities, volo en marketing 1@ right marketing 9 strategy over time requires a blend of disci y iscipline and flexbilit ty to ies ew ways to constantly improve it, increasing, aa ar otto tat st as fr : range a Products and services within the organization rie Must also develop airline, Emirates Aitine, for instance, must continually design and imple a suceesstul at many levels and for many units of the organization Implement marketing acttes Emirates Airtine is one of the most important giobat re * airlines in the ae a om employees, ie aircraft, and around 100 destinations a ee ee fs Airlne's chairman, HH Sheikh Ahmed bin Saeed Al Maktoum we cig ee a = es ‘n the airline's marketing strategy, to aliterentate itso itn corp ie ee vps are one of the best ways fo connect with our passenger," he 'ar@ and support their interests and to build a closer relations en." th fact, Emirates Airline has been committed to sponsorship for more mann than 20 years. tmz! ve 3 2 ban a sponsor of FIFA, AC Milan, Paris Saint this chapter begins by examini sim Ar Ee a ae feams. It’s also a sonsor of vari-gparketing implications in San eae vane we on ene ms vconn ane anon sec racing, Powerboat racing, at several perspectives on planning and describe oi Ce t , tennis, 19, and many others. up a formal marketing plan. 7 Marketing and Customer Value ants, The task of any business is to deliver th increasingly rational buyers faced with he value delivery process and choosing, ‘Marketing is about satisfying consumers’ needs and w. ier value at a profit*In a competitive econc The Value Delivery Process lls it, In this view, be to this view have not rm makes something and then s wrocess. Companies that subscrit ‘ced by goods shortages where consumers are basic staple goods in developing markets, ‘will not work in economies where divided into. several micro-markets, criteria, The smart ‘competitor must ion has inspired a new femphasiz~ aticting takes place in the second half of the pi he best chance of succeeding in economies mat! Picky about quality, features, or style; for example, hhis traditional view of the business process, however People face many choices. There, the ‘mass market is actually win wants, perceptions, preferences, and buying © design and deliver offerings for well-defined target markets ‘This rezation has ie View of business processes that places marketing at ing of planning) Insteac he beginnit a Fig and seling, eompanies now see themselves s pat of 2 vvalue delivery procPATER Cu hes acca ATi sivery sequence can be divided int three phases. the fr delivery segue which marketing must do ber any prod thefmarketing staff must s the market, select the appropriate market target, nd 4 Te ern sale positioning The formule of segment Ee positioning coe of strategic marketing, Onee the business unit has ehosen second pha Jarketing mustdi rine pecifeerouet features, rice and di iba ‘onmniimiicating the value by utilizing the sales force, sales print? Miujs to announce and promote the product rath 4 a the case that the value delivery process begins? ted and after it becomes available the value ereation and Ss aooving the value, represent the hom task in the thitd phase advertising, and other communi ‘alae phases has vost implications, TEs there fea predct ant continues while itis being develops ation 2 Nilce citi of ike often complain thats shoes cost aost natirg Jet cost the consumer so much. TUe, he rt materials and manufacturing sneaker are reatively cheap, Dut marketing the product to the consumer ise aerial, abo, shipping, equipment, import dues, and suppliers’ costs generally ttl less ta ‘apa, Compensating the sales team, distributors, “administration, and endorsers, 28 well 2s avetsng pus esearch and development, ads $150 90 Nike's total. Nike sell is producto formake a poft of $7. The ele therefore pays roughly 47 10 put a pai of Nikes on the shel. Ft inthe retaler’s overhead (ypicaly $30 covering human resources, tease, and equipment), arg {$10 profit, the shoe costs the consumer over $80. London Busines Schon’ Nirmalva Kumar has put orb 3D approach to matecg (ideline the vale segment or customers (and their needs); (2)-define the value propos Fa¥ G) define the value network that will deliver the pro = promised service.” Dartmouth’s Frees “Webster views marketing in tecms of{(i)value-def ing processes such as market research ‘company sel-analysisi (2) value-developing sracesses including new-product developm ~ sourcing strategy, and vendor selection; and ( iue-delivering processes such as advertising ‘managing distribution > == ~ WD The Value Chain - 1 Porter of Harvard has proposed thelealue chains a tool for ide departments that carry out value- “vere custom ice Zs Figure 2.1):+ According to this model, every firm is 8 ‘reatung activities to design, pro performed to design, produce, market, pport its product. The values dermis dete and support 3 strategically fies five primary and four support activities value chain the series of aM Fem inastctre furan Rscuce Management etl Tecnology Development Value Chain Analy Prcorerent \ ‘Source: Wicraet £ Porter, Competitne | Aawantoge dusts | | Pectormance (Ne Te prams i ceratons | tbound | are 8 | toposes | brasany | See —SOU TANS are inbound logisticxorPringing materials pranuary activities Hs the pio Tal products; outbound 1nyysHy ot shippaye ne 3 The sett Te Rus nfastncte covers he cts of weed Hanayee Sept. legal and povetmiment afbai Hanne tena eis ts examine Hs cov and eHR OA Hea sah ggg Pincay tape it Manages ould estimate thet competion oan ty a be pfomarks against shih to compare thei ss casts and petFatnange nett ia ihe testo as pratiesof the works ean AM shat TE Data Inc. 16 data has a nations Telecommunicitin i the largest IP-based data cormmunications fim Wy ta ae feta ang lished i ate 2001 asthe data comumunications and ite dao acne nent operator of Egypt. TE Data's strategy hasbeen to alr ts prorlucts cuit yee ach product is unique. It has product-based teams which use a limited number uf uaa Of sung, ut ding clase working relationships. Supplier pers, vay TE Data to use its partners’ expertise in certain areas, ch the market, cutting costs, and improving the potential qua many believes, makes for work efficiency, increas ae involved in the deweopanent ot epg a rsh aly of each product that ee ed productiviy, and higher jf hus eeducingy the buy he firm's success depends not only on how well each department performs its wark, but abe cm how well the company coordinates departmental activities to conduct core busines proces Thesé core business processes include; o + | The market-sensing process. All the activities in gathering market intelligence, disseminating itwithin the organization, and acting on the information. + The new-offering realization process. All the activities in researchi _launching new high-quality offerings quickly and within budget £) Thecustomer-acquistion process. All the activities in defining target markets and prospectin for new customers © The customer relationship-management process. All the activities in building deeper under Value-dolivery network a _. Standing, relationships, and offerings to individual customers. splatter £) The fulfillment management process. All the activities in receiving and approving Orders, ysytners ith specific suppl shipping the goods on time, and collecting payment, eae bing ther to markets ross-functional teams 10 Strong companies are reengineering their work flows and building « beresponsible for each process.{ At Xerox, a Customer Operations Group Tinks sales, shipping, installation, service, \ and biling so these activities flow smoothly into one another Winning companies are those that excel at managing core ines processes through cross-functional teams. Aramex, | DHL, UPS, and LibanPost have reorganized their employ- 6S ito cross-functional teams; and cross-functional teams te aso found in nonprofit and government organizations. i Saudi Aramco, the Targest il corporation in the world, with / 4 ve the largest proven crude oil reserves and production, uses | 2's functional project teams in its operations, which cover “ploration, drilling, refining and distribution, shipping, ‘ad research and development, As a result, the company has ere awards from the Project Management Institut. To be successful, a firm also needs to look for competitive ‘dvaniages beyond lis own operations, in the value chains of 7 peace Apples, distributors, and customers."Many companies today neh tavepartnered with specific suppliers and distributors o create Sauni Aramco ‘ Peror Value delivery network, also called a supply cin. ges business oP