is some type of utility that a company and its products provide its customer.
is the want-satisfying power of a good or service
The four types of utility:
how much a customer likes the product.
A firms goal is a long term relationship, satisfied customers isn’t enough to ensure the relationship is going to last.
an innovation, service, or feature intended to make a company or product attractive to customers.
must be strong enough to move customers past mere satisfaction and into a commitment to a company and its products and brands for the long run.
Such a commitment reflects a high level of customer loyalty, which increases customer retention and reduces customer switching.
is the activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organization has with a customer and continues throughout the entire lifetime of a relationship.
The value chain serves as a means for firms to identify ways to create, communicate, and deliver more customer value within a firm.
Every organisation represents a synthesis of activities involved in designing, producing, marketing, delivering, and supporting its products.
Peters nine value creating activities –
The five primary activities:
1. Inbound logistics – how the firm goes about sourcing raw materials for production.
2. Operations – how the firm converts the raw materials into final products.
3. Outbound logistics – how the firm transports and distributes the final products to the marketplace.
4. Marketing and sales – how the firm communicates the value proposition to the marketplace.
5. Service – how the firm supports customers during and after the sale.
Peters nine value creating activities –
The four support activities:
1. Firm infrastructure – how the firm is set up for doing business; are the internal processes aligned and efficient?
2. Human resource management – how the firm ensures it has the right people in place, trains them, and keeps them.
3. Technology development – how the firm embraces technology usage for the benefit of customers.
4. Procurement – how the firm deals with vendors and quality issues.
Refers to profit made by the firm.
the ongoing process of developing and implementing market driven strategies for an organisation.
At the strategic level, Marketing (Big M):
serves as a core driver of business strategy. That is, an understanding of markets, competitors, and other forces, coupled with attention to internal capabilities, allows a form to successfully develop strategies for the future.
At the functional or operational level, marketing (little m):
represents the specific programs and tactics aimed at customers and other stakeholder groups and includes everything from brand image, to the message salespeople and advertisements deliver, to service, to packaging and product features.
aims to outdo competitors in the mobile phone applications business with marketing and planning that is both strategic and tactical.
It will soon offer a product with the capability to pinpoint the location of customers when they’re using applications on their phone; this will support geo-targeting.
Effective marketing planning:
– Everyone in organisation, regardless of their position or title, must understand and support the concept of customer orientation, which places the customer at the core of all aspects of the enterprise. Firms that promote and practise a high level of customer focus are often referred to as customer-centric organisations.
– To operationalise a customer-centric approach, all internal organisational processes and systems must be aligned around the customer. A firms internal structure and systems cannot be allowed to become an impediment to a customer orientation. Anyone who has ever placed a phone call for service and been driven through a maze of phone transfers with a string of people or machines unable to help knows how poor structure and systems can impact customer satisfaction and loyalty.
Framework for marketing planning:
Strategic business unit
Each GE business has its own SBU-leve strategic plan, and part of
views SBUs and sometimes even product lines as a series of investments from which it expects maximisation of returns, is one tool that can contribute to strategic planing in a multi business corporation.
Boston consulting group (BCG) Growth share matrix: