Marketing Management Chapter 2 Developing Marketing Strategies and Plans PDF

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Summary

❖ The Value Delivery ProcessMarketing is the process of Value Exchange. Value actually represents the exchange of tangiblegoods, services, ideas, time and maybe other intangibles between buyers and sellers. In fact, thekey to a successful exchange is that each party has some value desired by the oth...

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❖ The Value Delivery Process Marketing is the process of Value Exchange. Value actually represents the exchange of tangible goods, services, ideas, time and maybe other intangibles between buyers and sellers. In fact, the key to a successful exchange is that each party has some value desired by the other.

Most pragmatically, the Value Delivery Process is a Strategic Marketing approach that differentiates a customer-oriented organization from the traditional brand making and selling.

The value delivery process breaks into three distinct phases: A) Choosing the value: Doing homework or research on market segmentation, market selection, value positioning. B) Providing the value: Identification of features, prices, distribution. C) Communicating the value: Use the internet, advertising, sales force and other communication tools.

❖ The Value Chain The value chain analysis is a process where a firm identifies its • • •

primary & supportive activities that add value to its final product and then analyze these activities.

VAC helps in • •

maintaining long term competitive position of an organization. to sustain value for money (competitive advantage) in its products services.

➢ Primary Activities Primary activities are directly concerned with creating and delivering a product. • • • • •

Inbound logistics Operations Outbound logistics Marketing and sales Service

Each of these primary activities is linked to support activities which help to improve their effectiveness or efficiency.

1. Inbound Logistics •

It refers to sourcing raw materials from various suppliers to be used for producing the end product.

2. Operation • •

In this stage, raw material acquired in the last stage is processed to convert in final product. The idea is to obtain operational efficiency and save wastage.

3. Outbound logistics • • •

Once the products have been manufactured, they are ready to be distributed to distribution centers, wholesalers and retailers Distribution of finished goods is known as outbound logistics. It’s time to decide choosing right channel members, channel type, channel levels.

4. Marketing and Sales • •

Marketing must make sure that the product is targeted towards the correct customer group Organization must establish the right marketing mix for the product.

5. Services • •

After the product/service has been sold organization must ensure that customers get all support services. This may come in the form of after sales services guarantees and warranties.

➢ Supporting Activities Support activities assist the primary activities in helping the organization achieve its competitive advantage. There are four main areas of support activities: 1. 2. 3. 4.

Procurement Human resource management Technology development (including R&D) Infrastructure.

1. Procurement •

This department must source raw materials for the business and obtain the best price for doing so.

2. Human Resource Management •

The department will have to recruit, train and develop the correct people for the organization to be successful.

3. Technology Development •

The use of technology to obtain a competitive advantage is very important in today's technological driven environment.

4. Firm Infrastructure •

Every organization needs to ensure that their finances, legal structure and management structure work efficiently and helps drive the organization forward.

❖ Core Competencies A core competency is something an organization does so well that it can be viewed as a competitive advantage. A core competency has three characteristics: 1. It is a source of competitive advantage and makes a significant contribution to perceived customer benefits; 2. It has applications in a wide variety of markets; and 3. It is difficult for competitors to imitate....