Page 79 - Marketing Management

56 PART 1 UNDERSTANDING MARKETING MANAGEMENT

With budgets, they can compare planned expenditures with actual expenditures for a given period.
Schedules allow management to see when tasks were supposed to be completed and when they
actually were. Marketing metrics track actual outcomes of marketing programs to see whether the
company is moving forward toward its objectives.

Summary

1. The value delivery process includes choosing (or identify- 4. Market-oriented strategic planning is the managerial
ing), providing (or delivering), and communicating superior process of developing and maintaining a viable fit
value. The value chain is a tool for identifying key activities between the organization’s objectives, skills, and
that create value and costs in a specific business. resources and its changing market opportunities. The
aim of strategic planning is to shape the company’s
2. Strong companies develop superior capabilities in man-
businesses and products so they yield target profits
aging core business processes such as new-product
and growth. Strategic planning takes place at four lev-
realization, inventory management, and customer acqui-
els: corporate, division, business unit, and product.
sition and retention. Managing these core processes
effectively means creating a marketing network in which 5. The corporate strategy establishes the framework
the company works closely with all parties in the pro- within which the divisions and business units prepare
duction and distribution chain, from suppliers of raw their strategic plans. Setting a corporate strategy
materials to retail distributors. Companies no longer means defining the corporate mission, establishing
compete—marketing networks do. strategic business units (SBUs), assigning resources to
each, and assessing growth opportunities.
3. According to one view, holistic marketing maximizes
value exploration by understanding the relationships 6. Strategic planning for individual businesses includes
between the customer’s cognitive space, the company’s defining the business mission, analyzing external oppor-
competence space, and the collaborator’s resource tunities and threats, analyzing internal strengths and
space; maximizes value creation by identifying new cus- weaknesses, formulating goals, formulating strategy,
tomer benefits from the customer’s cognitive space, formulating supporting programs, implementing the pro-
utilizing core competencies from its business domain, grams, and gathering feedback and exercising control.
and selecting and managing business partners from its 7. Each product level within a business unit must develop
collaborative networks; and maximizes value delivery by a marketing plan for achieving its goals. The marketing
becoming proficient at customer relationship manage- plan is one of the most important outputs of the
ment, internal resource management, and business marketing process.
partnership management.

Applications

Marketing Debate Marketing Discussion
What Good Is a Mission Statement? Marketing Planning
Mission statements are often the product of much delibera- Consider Porter’s value chain and the holistic marketing
tion and discussion. At the same time, critics claim they orientation model. What implications do they have for mar-
sometimes lack “teeth” and specificity, or do not vary much keting planning? How would you structure a marketing plan
from firm to firm and make the same empty promises. to incorporate some of their concepts?
Take a position: Mission statements are critical to a
successful marketing organization versus Mission state-
ments rarely provide useful marketing value.