Sell the product Make the product Design product Advertise/ promote Procure Make Price Sell Distribute Service The Value Delivery Process (a) Traditional physical process sequence The traditional viewof marketing is that the firm makes something and then sells it.
Choose the Value Cust. Segmentation / Market selection or focus / Value potsitioning Provide the Value Product dev. / service dev. / pricing / sourcing&making / distributing&servicing Communicate the Value Sales force / sales promotion / advertising Strategic marketing Tactical marketing (b) Value creation & delivery sequence The value delivery process begins before there is a product and continues while it is being developed and after it becomes available.
Improving Value Delivery the Japanese Way Zero customer feedback time Zero Purchasing time Zero defects Zero Product Improvement time Zero Setup time
Firm Infrastructure Human Resource Management Technology Development Procurement The Generic Value ChainAs a tool for identifiying ways to create more customer value A C T I V I T I E S S U P P O R T Margin Outbound Logistics Marketing and Sales Operations Service Inbound Logistics Primary Activities
Core Competencies It is a source of competitive advantage in that it makes significant contribution to perceived customers benefits. It has applications in awide variety of markets. It is difficult for competitors to imitate.
Holistic Marketing Framework Customer focus Collaborative network Core competiencies Cognitive space Resource space Competency space Value Exploration Value Creation Customer benefits Bussiness partner Business domain Internal resource management Customer relationhip management Business partner management Value Delivery
Strategic-Planning, Implementation, and Control Process Implementation Control Measuring results Diagnosing results Taking corrective action Corporate planning Division planning Business planning Product planning Organizing Implementing Planning
Desired sales Diversificationgrowth Strategic- planning gap Integrative growth Sales Intensive growth Current portfolio 10 5 0 Time (years) The Strategic-Planning Gap
Existing products New products 1. Market penetration 3. Product development Existing markets 2. Market development New markets Three Intensive Growth Strategies: Ansoff’s Product/Market Expansion Grid 4. Diversification
CORE COMPETENCIES Distinctive capabilities tend to refer to areas of special tehnical and production expertise. CORE COMPETENC I ES C HA RACTERI S T I C OF COMPETITIVE ADVANTAGE Distinctive capabilities tend to describe excellence in broader bussiness process. Illustration DISTINCTIVE CAPABILITIES Netflix rent as many DVDs as you want and watch movies instantly on your PC for one low price Netflix has distinctive capabilities that promise to keep the company on top even as competitors like Blockbuster and Walware company masquerading as DVD rental service