CP-103 : MARKETING MANAGEMENT

Objectives:
The purpose of this course is to develop an understanding of the basic concepts of Marketing
and acquire marketing operation related skills for products and services.
Course outline:
1.Marketing Concept, Role of Marketing in Corporate & Society; Marketing Environment.
2. Market mix, Strategic marketing planning
3. Market Segmentation, Selection Target setting, Positioning
4. Market Measurement and forecasting, Marketing Research and Information System.
5. Meaning and Importance of Buyer Behaviour, Determinants and consumer Behaviour
6. Buying Decision Process, Industrial Buyer Behaviour
7. Product Life Cycle; Product Mix Strategies
8. Branding and Packing Decision; New Product Development; Consumer Adoption Process.
9. Pricing Objectives; Price Determinants; Pricing Methods.
10. Pricing Policies and Strategies.
11. Nature and importance of Distribution channels; Patterns of Distribution Channels,
12. Determinants of Channels Design; Determining Intensity of Distribution
13. Selecting Motivating and Evaluating Channel Members, Physical Distribution Task
and Approaches.
14. Marketing communication Process, Promotion Mix and its Determinants
15. Role of Advertising, Sales Promotion and Personal Selling; Promotion Budget.
16. Contemporary Issues; Direct Marketing, Marketing of Services, Marketing Research,
17. Sales Distribution Management
18. Retailing Brand Management, E- Marketing, Customer Relationship Marketing.
Kotler on
Marketing
It is more
important to do
what is
strategically right
than what is
immediately
profitable.

4-2
 Topic Objectives
• In this topic, we will examine the following
questions:
– How is strategic planning carried out at the corporate
and division levels?
– How is planning carried out at the business unit
level?
– What are the major steps in the marketing process?
– How is planning carried out at the product level?
– What does a marketing plan include?

4-3
Strategic Planning: Three Key Areas
and Four Organization Levels
• Strategic Marketing plan
• Tactical Marketing plan
• Marketing plan

4-4
Functions of management –.pptx
 Strategic Planning: Three Key Areas
and Four Organization Levels
• Strategic Marketing plan
• (lays out the target markets & the value proposition that will be offered)

• Tactical Marketing plan

• (specifies the marketing tactics, including product features, promotion,
merchandising, pricing,sales channels & services)

• Marketing plan
• (operational i.e. customized in nature)

4-6
 Figure
The Strategic-Planning, Implementation, and Control Process

4-7
 Marketing & Promotions Process Model
Target Market
Marketing Promotion
Strategy & Marketing Planning Target
to the
Analysis Process Program Market
Final Buyer
development
Opportunity Identifying Product
Markets Decisions Promotional
Analysis
Decisions

Pricing >Advertising
Market Decisions >Direct
Promotion Ultimate
Segmentation Marketing
Consumer
>Interactive to trade
Competitive
Marketing
Analysis >Consumers
Selecting >Sales
Channels Re- >Business
a Promotion
of sellers
Target Market >Publicity &
Distribution
decisions Public
Positioning Relations
thru >Personal
Target Marketing Selling
Marketing Strategies
01/06/11 Purchase 8
 Corporate and Division
Strategic Planning
• All corporate headquarters undertake four
planning activities
1. Defining the Corporate Mission
2. Establishing Strategic Business Units (SBUs)
3. Assigning resources to each SBU
4. Planning new businesses, downsizing, or
terminating older businesses

4-9
 Corporate and Division
Strategic Planning
•1.Defining the Corporate Mission
– Mission statements define which competitive scopes the
company will operate in
• Industry scope
• Products and applications scope
• Competence scope
• Market-segment scope
• Vertical scope
• Geographical scope

4-10
 VISION
SHRI TARSEM GARG
FOUNDER PRESIDENT AND HON’BLE CHANCELLOR
MISSION STATEMENT
GOALS
Can you name a company that has
recently changed its product scope
or market segment scope in a very
public way? Was this an expansion
or contraction of scope?

4-14
 Android is an operating system for mobile devices such as cellular phones, tablet
computers and netbooks.
Android was developed by Google and is based upon the Linux kernel and GNU software
.
It was initially developed by Android Inc. (a firm later purchased by Google) and lately
broadened to the Open Handset Alliance. According to NPD Group, unit sales for Android
OS smartphones ranked first among all smartphone OS handsets sold in the U.S. in the
second quarter of 2010, at 33%.BlackBerry OS is second at 28%, and iOS is ranked third
with 22%.

The Linux kernel is an operating system kernel used by the Linux family of Unix-like operating
systems..It is one of the most prominent examples of free and open source software.
 Corporate and Division
Strategic Planning
•1.Defining the Corporate Mission
– Mission statements define which competitive scopes the
company will operate in
• Industry scope
• Products and applications scope
• Competence scope
• Market-segment scope
• Vertical scope
• Geographical scope

4-18
 Corporate and Division
Strategic Planning
•1.Defining the Corporate
Mission
• To define the mission , a company must address
Peter Drucker’s classic questions::::
a. What is our business?
b. Who is the customer?
c. What is the value to the customer?
d. What will our business be?

4-19
http://www.lg.com/in/about-lg/corporate-information/overview/vision.jsp
 Corporate and Division
Strategic Planning
• All corporate headquarters undertake four
planning activities
1. Defining the Corporate Mission
2. Establishing Strategic Business Units (SBUs)
3. Assigning resources to each SBU
4. Planning new businesses, downsizing, or
terminating older businesses

4-21
 2. Establishing Strategic Business Units
• Strategic Business Unit or SBU(SBUs)
is understood as a business unit
within the overall corporate identity which is distinguishable from other
business because it serves a defined external market where
management can conduct strategic planning in relation to products and
markets.

•The unique small business unit benefits that a firm aggressively

promotes in a consistent manner.

When companies become really large, they are best thought of as being
composed of a number of businesses (or SBUs).

In the broader domain of strategic management, the phrase "Strategic

Business Unit" came into use in the 1960s, largely as a result of General
Electric's many units.
 2. Establishing Strategic Business Units
(SBUs)
These organizational entities(i.e.SBU’s) are large enough and
homogeneous enough to exercise control over most strategic factors
affecting their performance.

They are managed as self contained planning units for which discrete
business strategies can be developed.

 A Strategic Business Unit can encompass an entire company,

company or can
simply be a smaller part of a company set up to perform a specific task.

The SBU has its own business strategy, objectives and competitors and
these will often be different from those of the parent company.

Research conducted in this include the BCG Matrix.

 2. Establishing Strategic Business Units
This approach entails the creation of(SBUs)
business units to address each market in
which the company is operating.

The organization of the business unit is determined by the needs of the

market.

An SBU is an operating unit or planning focus that groups a distinct set of
products or services, which are sold to a uniform set of customers, facing a
well-defined set of competitors.
The external (market) dimension of a business is the relevant perspective for
the proper identification of an SBU.
(uses Industry information and Porter five forces analysis.)

Therefore, an SBU should have a set of external customers and not just an
internal supplier.]

Companies today often use the word “Segment” or “Division” when referring to
SBU’s, or an aggregation of SBU’s that share such commonalities.
 Figure
The Strategic-Planning, Implementation, and Control Process

4-25
 Marketing & Promotions Process Model
Target Market
Marketing Promotion
Strategy & Marketing Planning Target
to the
Analysis Process Program Market
Final Buyer
development
Opportunity Identifying Product
Markets Decisions Promotional
Analysis
Decisions

Pricing >Advertising
Market Decisions >Direct
Promotion Ultimate
Segmentation Marketing
Consumer
>Interactive to trade
Competitive
Marketing
Analysis >Consumers
Selecting >Sales
Channels Re- >Business
a Promotion
of sellers
Target Market >Publicity &
Distribution
decisions Public
Positioning Relations
thru >Personal
Target Marketing Selling
Marketing Strategies
01/06/11 Purchase 26
Case Study-Tata Group

Tata Group Sustainability Strategy.doc

P r e s e n t Y e a r 1 Y e a r 2 Y e a r 3 Y e a-1r04

•S u s t a in a b ilit•Oy n g o in g •T a t a •T S S e x t e r n a •Tl a r g e-vt ahluigeh

Cred o r e n e w a b le p sou ws t ea rin a b ilit
c o yn s u lt in g s u s t a in a b ilit y
•E s t a b lis h T Sa Sn a ly s i s so ftw a re c e r t if ic a t io n s ( F a ir
•I n t-cr oa m p a n y•T a t a T e a S t r •Ta taet ga yM o t o r s Tra d e, LEED )
s u s t a in a b ilit•Ny e w s o c ia l E L V p r o j e c t
•W o r k e r s t a np dh ailar dn st h r o p •y E x p a n s io n o f
•T aHj o t e l e ffo rts T r a ile r / T r u c k
c o n s e r v a t io n p ro gram
•S t e e l e n e r g y
e f f ic ie n c y
Organisational Structure and Controls.ppt

From slide 26-57

Tata_Group_presentation.pdf
 Corporate and Division
Strategic Planning
• All corporate headquarters undertake four
planning activities
1. Defining the Corporate Mission
2. Establishing Strategic Business Units (SBUs)
3. Assigning resources to each SBU
4. Planning new businesses, downsizing, or
terminating older businesses

4-32
3. Assigning resources to each SBU

i.e. doing ------Internal Analysis

Strategy II-Evnl Analysis.pptx

From slide----160-184 &

277-310
 Corporate and Division
Strategic Planning
• All corporate headquarters undertake four
planning activities
1. Defining the Corporate Mission
2. Establishing Strategic Business Units (SBUs)
3. Assigning resources to each SBU
4. Planning new businesses, downsizing, or
terminating older businesses
 Corporate and Division
Strategic Planning
• Critique of Portfolio Models
• Planning New Businesses,
Downsizing Older Businesses

4-35
Figure : The Strategic-Planning Gap
Corporate and Division
Strategic Planning
• Intensive Growth

4-37
Figure : Three Intensive Growth Strategies: Ansoff’s
Product-Market Expansion Grid
Pizza Hut’ home page: Customers can request a catalog of Pizza Hut
products,
CCD’ home page: Customers can request a catalog of CCD products,
subscribe to a newsletter, and shop online
 Corporate and Division
Strategic Planning
• Integrative Growth (forward/backward)
• Diversification Growth (new business)
• Downsizing Older Businesses (closing sick SBU’s)
 Give an example of a market
segment where integrative growth
would be preferable to growth
through diversification. Explain
why one approach is better
than the other.

4-42
Business Unit Strategic Planning
Figure : The Business Strategic-Planning Process
Business Unit Strategic Planning
• Business Mission
• SWOT Analysis
– External Environment Analysis (Opportunity &
Threat Analysis)
• Marketing Opportunity
– Buying opportunity more convenient or efficient
– Meet the need for more information and advice
– Customize an offering that was previously only available
in standard form
 Give some examples of companies
that have grown to dominate their
market segment by using technology
to make buying opportunities more
convenient and efficient.

4-45
Business Unit Strategic Planning
– Marketing Opportunity Analysis (MOA)
• Can the benefits be articulated to a target market?
• Can the target market be reached with cost-effective
media and trade channels?
• Does the company have the critical capabilities to
deliver the customer benefits?
• Can the company deliver these benefits better than
any actual or potential competitors?
• Will the rate of return meet the required threshold of
investment?
Figure : Opportunity and Threat Matrices
Business Unit Strategic Planning
• Internal Environmental Analysis
(Strength/Weakness Analysis)
• Goal Formation
• Strategic
Formulation
– Strategy
Business Unit Strategic Planning

• Porter’s Generic Strategies

– Overall cost leadership
– Differentiation
– Focus

4-49
Travelocity India’s Web site helps the consumer plan the whole vacation
– flights, lodging, and car rental.com
 Business Unit Strategic Planning

• Operational Effectiveness and Strategy

– Strategic group
– Strategic alliances

4-51
Business Unit Strategic Planning
• Marketing Alliances
– Product or service alliances
– Promotional alliances
– Logistical alliances
– Pricing collaborations
• Partner Relationship Management, PRM
• Program Formulation and Implementation

4-52
Figure :
McKinsey 7-S
Framework
Business Unit Strategic Planning

• Feedback and Control

4-54
 Managing The Marketing
Process

Types of Control • Responsibility of

marketing controller
• Annual plan • Examines where
• Profitability the company is
• Efficiency making and losing
money
• Strategic
 Managing The Marketing
Process

Types of Control • Responsibility of line

& staff and / or
marketing controller
• Annual plan • Evaluates and
• Profitability attempts to improve
spending efficiency of
• Efficiency marketing
• Strategic expenditures
 Managing The Marketing
Process
• Responsibility of top
Types of Control
management and
marketing auditor
• Annual plan • Examines whether
• Profitability company is pursuing
• Efficiency its best opportunities
• Strategic
 Managing The Marketing
Process
• Strategic controls should be conducted
periodically via:
– Marketing-effectiveness reviews
– Marketing audits
• Additional reviews to consider:
– Marketing excellence review
– Ethical and social responsibility review
The Marketing Process
• The Value Delivery Sequence
Figure 4-9: Two Views of the Value-Delivery Process
 The Marketing Process
• Steps in the Planning Process
– The marketing process
• Analyzing Market Opportunities
• Developing Marketing Strategies
• Planning Marketing Programs
• Managing the Marketing Effort
– Annual-plan control
– Profitability control
– Strategic control
Figure 4-10:
Factors
Influencing
Company
Marketing Strategy
Product Planning: The Nature and
Contents of a Marketing Plan
• Contents of the Marketing Plan
– Executive Summary
– Current Marketing Situation
– Opportunity and issue analysis
– Objectives
– Marketing strategy
– Action programs
– Financial projections
– Implementation controls
4-62
 Product Planning: The Nature and
Contents of a Marketing Plan
• Sample Marketing Plan: Sonic Personal Digital
Assistant
– Current Marketing Situation
– Opportunity and Issue Analysis
– Objectives
– Action Programs
– Financial Projections

4-63
Product Planning: The Nature and
Contents of a Marketing Plan
– Implementation Controls
– Marketing Strategy
• Positioning
• Product Management
• Pricing
• Distribution
• Marketing Communications
• Marketing Research

4-64
CUSTOMER VALUE
Customer Value-Delivery Process
Value Creation and Delivery
Sequence
Porter Value Chain
Competitive Advantage
Holistic Marketing Orientation
 CUSTOMER VALUE
Value Creation and Delivery Sequence

The task of any business is to deliver CV at a

profit.
A company win only by fine tuning the value
delivery process & choosing, providing &
communicating superior value.
TRADITIONAL VALUE DELIVERY
PROCESS???
 CUSTOMER VALUE
Traditional Value Delivery Process:

Make the product Sell the product

Advertise/ Distribute Service

Design Procure Make Price Sell Promote
product
 CUSTOMER VALUE
Value Creation and Delivery Sequence

Communicate the
Choose the value Provide the Value
Value
SourcingDistributing
Market Product
Customer Value Service Sales Sales
Selection/ Develop. Pricing Advertising
Segmentation positioning Develop. Force Promn
focus
Making Servicing

Strategic Marketing Tactical marketing

 CUSTOMER VALUE
Implications of Value Delivery process
• Choosing the Value: represents the home work
marketing must do before any product exists.
• The formula –Segmentation, Targeting &
Positioning (STP) is the essence of Strategic
Marketing.
• The value delivery process begins before there
is a product and continues while it is being
developed and after it becomes available
 CUSTOMER VALUE

Japanese Concept :
Zero Customer feedback time (continuous feedback fro
improvement)

Zero product Improvement time (evaluation of all product

improvement ideas)

Zero purchasing time( just-in-time inventory)

Zero Setup time (immediate manufacturing without facing high set up
time/costs)

Zero defects (products free from flaws)

CUSTOMER VALUE

Porter Value Chain

 CUSTOMER VALUE
Value Chain
• Given by Michael Porter
• Potent tool for identifying ways to create more
customer value.
• Every firm is a synthesis of activities performed to
 Design
 Produce
 Market
 Deliver and
 Support its product.
Contd.
Value Chain Analysis
 Ma
in rg in
rg
Ma
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rvi
Value Chain Analysis

Se
Activities
Primary Activities
ng
eti
rk s
Ma Sale
&
nd
ou
tb tics
Ou gis

Primary
Lo
ns
io
at
er
Op
d
un s
bo tic
In gis
Lo
Value Chain Analysis
AA
C
SS T
C Procurement
T
U

Ma
U II
PP V
V Human Resource Management

rg
PP I
I

in
O
R
O TT Technology Development
R II
TT E
E Procurement
SS

Ma
Ma Sale
Op

Ou gis

Se
In gis

&
Lo

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bo tic

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tb tics

rk s

g
rvi

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at

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Primary
Primary Activities
Activities
 CUSTOMER VALUE
Value Chain:

Ma
Firm Infrastructure

rg
Human Resource Management

ins
Technology Development
Procurement

Operns. Outbound Mktng.&

M
Inbound
Service

ar
Logistics Logistics Sales

g in
s
Contd.
 The Value Chain
Support
activities

Primary activities
Inbound logistics Materials receiving, storing, and distribution to manufacturing
premises
Operations Transforming inputs into finished products.
Outbound logistics Storing and distributing products
Marketing and Sales Promotions and sales force
Service Service to maintain or enhance product value
Corporate infrastructure Support of entire value chain, e.g. general management
planning,
financing, accounting, legal services, government affairs, and
QM
 Porter’s Value Chain
(in IT company)

Administrative Coordination and Support Services

SIS: Collaborative Work Systems

Human Resources Management

SIS: Employee Skills Database Systems
Support
Process Technology Development
SIS: Computer-Aided Engineering and Design
es
Procurement of Resources
SIS: Electronic Data Interchange with Suppliers
Competitive
Outboun Marketin Advantage
Inbound Operatio d g and Custome
Logistics ns Logistics Sales r Service

Primary SIS: SIS: SIS: SIS: SIS: Help

Automate Computer Online Interactiv Desk
Business
d Just-in- -Aided Point-of- e Expert
Processe Time Flexible Sale and Targeted System
s Warehous Manufac- Order Marketing
ing turing Processin
g
 CUSTOMER VALUE
There are Nine value creating activities in VC:
• Five Primary Activities
• Four support activities
Support Activities

Firm Infrastructure
Human Resource Management
Technology Development
Procurement

Outbound Mktng
Inbound Operns Logistics Sales Servic
Logistics . e

Primary Activities
Contd.
 Porter’s Value Chain

Primary Activities:
• Inbound Logistics: ‘Inbound’ activities to receive, store and
distribute inputs to the product, such as material handling, inventory
control, warehousing and contact with suppliers.
• Operations: Production activities to create the product such as
machining, packaging, printing and testing.
• Outbound Logistics: ‘Outbound’ activities to store and distribute the
product to customers, including warehousing, order processing and
vehicle scheduling.
• Marketing and Sales: Activities associated with providing a means
by which buyers can purchase the product and be included to do so
(advertising, selling, pricing, merchandising and promotion).
• Service: Activities for providing service or maintaining product value,
including installation and training.
 Porter’s Value Chain

Support Activities:

• Procurement: Purchasing input.

• Technology Development: Not just machines and

processes but also expertise, procedures and systems.
• Human Resource Management: Activities involved in
recruiting, training and staff development.
• Infrastructure: General management, finance, planning and
quality assurance. Infrastructure supports the whole value
chain.
 Porter’s Value System

SUPPLIER FIRM CHANNEL BUYER

VALUE VALUE VALUE VALUE
CHAINS CHAIN CHAINS CHAINS

n the “value system” supplier, firm, distributor, and buyer value chains overlap.

The supplier’s outbound logistics is the firm’s inbound logistics. The

Distributor’s inbound logistics is the firm’s outbound logistics, etc.
 Value Chain Analysis
Importance of value-chain analysis is
that it provides a framework for
identifying or developing a distinctive
competence.
 CUSTOMER VALUE
• The firms task is to examine its cost & performance in
each value creating activity and to look for ways to
improve it.
• The firm also analyses its competitor’s &
performance as benchmarks against which to
compare its own cost & performance.
• The firms success depends not only on how well each
department performs its work, but also
on how well the various departmental activities are
coordinated to conduct core business processes
Contd.
 CUSTOMER VALUE
Core Business Processes
 The Marketing Sensing Process
(activities involved in market intelligence, disseminating it & acting on it)
 The New Offering Realization process
(activities involved in researching, developing & launching new high quality
offerings quickly & within the budget)
 The Customer acquisition process
(activities involved in defining target markets & prospecting for new customers)
 The Customer relationship Management process
(activities involved in deeper understanding, relationships & offering to customers)
 The Fulfillment Management Process
(activities involved in receiving & approving orders, shipping goods on time &
collecting payment)
Contd.
EVERY PROCESS ADDS VALUE
 CUSTOMER VALUE
Winning companies are those that excel at managing
core business processes through cross functional teams.
 Cross functional teams are also found in non profit &
government organizations as well
 To be successful & to gain more competitive
advantages beyond it own operations, firm also looks
into the value chains of:
• Suppliers
• Distributors &
• Customers

Cross Functional Team: Group of People with different functional Expertise

viz; Mktng, Fin.,HR, Operns,- working towards a common objective.
Cross functional teams are self directed teams
 Porter value Chain –in Home building

Firm infrastructure
(e.g.Financing, Planning, Investor relations)
Human resource mgt.
(e.g. recruiting, training. Compensation system)

Technology Development
(e.g. Product design, testing, Process Design<materials research, Market res.
Procurement
(e.g. Materials, Subcontracted labor, Advertising )
Land Acquistion &Dev. Construction Mktng & Sales Closing After Sales
(Identify attractive (Design eng, (lead genrn,model (Customer Service
markets, secure land, schedule & home display, sales financing, (warranties,
procure entities & manage constn force.Cust.selcn. contract, customer
Permit, prepare site process of personalized title closing complaints)
options
 Exercise No.3

Company
FedEx
Wal-Mart Amazon.com And/or MasterCard
UPS
Value Chain

For each Company and

Value Chain combination that Inbound
x
is checked, write a paragraph Logistics
explaining how that company
company uses technology to
support that portion of the
value chain. For example, Operations x x
explain how Wal-Mart uses
technology to support the
Inbound Logistics portion of
the value chain. There
should be six short Outbound
x
paragraphs in total. Logistics

Submit this
Marketing
assignment. and x
Sales

This is an individual
assignment. Service x
 IT managers also care about these models because:

The models provide a “map” to help

managers

•Find where they are •Find where they

should go

You are here

The road to competitive advantage

Goal
“How you gather, manage, and use
information will determine whether you
win or lose”
- Bill Gates
CUSTOMER VALUE

Competitive Advantage
 CUSTOMER VALUE

COMPETITIVE ADVANTAGE:

Competitive advantage =

Core Competencies + Distinctive Capabilities

 CUSTOMER VALUE
CORE COMPETENCIES:
To carry out business, company needs resources viz:
>Labor power
>Materials
>Machines
>Information &
>Energy.
Traditionally companies owned & controlled the resources that entered their
businesses
But this situation is changing.
Now-a-days, companies outsource less critical resources, if they can be obtained at
better quality or lower cost.
THE KEY:
OWN & NURTURE
“RESOURCES & COMPETENCIES”
That make up the essence of the business.
e.g. NIKE
 CUSTOMER VALUE
NIKE:
DOES NOT MANUFACTURE ITS OWN
SHOES.
Nurtures its superiority in:
 SHOE DESIGN &
 SHOE MERCHANDISING
(its two core competencies)
 CUSTOMER VALUE
Core competency has three characteristics:
(also called as competitive advantage)
1.It is a source of competitive advantage
(in that it makes a significant contribution to perceived customer benefits)
2. It has applications in a wide variety of market
3.It is difficult for competitors to imitate.

 Core competencies refer to areas of Technical & production expertise.

 To maximize core competencies, business realignment may be necessary & it
involves three steps:
1.(re)defining the business concept
2.(re)shaping the business scope
3.(re)positioning the company’s brand identity.
(e.g.Kodak)
 CUSTOMER VALUE
DISTINCTIVE CAPABILITIES:
Describes excellence in broader business processes viz:
(mainly operational expertise ???)
• Market sensing
• Customer linking
• Channel bonding
 Companies having distinctive capabilities also possess
competitive advantage.
 CUSTOMER VALUE
Competitive advantage ultimately derives from
how well the company has fitted its :
Core Competencies &
Distinctive capabilities
Into tightly interlocking “Activity Systems”
Competitors find it hard to imitate companies.
viz: IKEA, Dell,
 CUSTOMER VALUE

Holistic Marketing Orientation

 CUSTOMER VALUE
Holistic Marketing:
• Marketers succeed by managing a superior
value chain that delivers a high level of
product quality, service & speed.
In HM,CV is generated by integrating:::
• VALUE EXPLORATION
• VALUE CRAETION
• VALUE DELIVERY
 CUSTOMER VALUE
Core
Customer Competencies Collaborative
focus network

Value Cognitive Competency Resource

Exploration Space Stage Space

Value Customer Business Business

Creation Benefits Domain Partners

Value Customer Internal Business

Delivery Relationship Resource Partner
Management Management Management
 CUSTOMER VALUE
• VALUE EXPLORATION:
i.e. “How can a company identify new value opportunities”
Value flows within & across markets that are them selves dynamic & competitive.
Companies need a well defined strategy for value exploration i.e. CS,CS & RS.
Cognitive Space: reflects existing & latent needs and includes dimensions such as
need for
-participation
-stability
-freedom &
-change
Competency Stage:-can be described in terms of
-breadth---broad versus focussed scope of business
-depth---physical versus knowledge based capabilities
Resource Space:- involves :
-Horizontal partner ships—companies choose partnerships based on their ability
to exploit related market opportunities
-Vertical partnerships– companies choose partners based on their ability to serve
their value creation.
 CUSTOMER VALUE
Value Creation:
• Marketers needs to identify new customer
benefits from the customer’s view
• Utilize core competencies from its business
domains
• Select & manage business partners from its
collaborative network
 CUSTOMER VALUE
Value Delivery:
Delivering value means substantial investment in infrastructure & capabilities.
i.e. the company must become be proficient at
CRM,IRM &PRM
CRM: Customers
Who,
How they behave
What they need /want.
Company needs to respond appropriately, coherently & quickly to different
customer opportunities
Int.Res.Mgt: to integrate major business processes
(viz-oder processing, execution, payroll, production etc)
PRM: handling complex relationships with its trading partners to source,
process & deliver products.
Questions ?