markman chapter 2

• Harvard’s Michael Porter proposed the value chain as a tool for identifying ways to create more customer value
• The value chain involves bringing materials into the business, converting materials into final products, and shipping out final products
• The market-sensing process involves all the activities in gathering and acting upon information about the market
• The customer acquisition process involves all the activities in defining target markets and prospecting for new customers
• The customer relationship management process includes all the activities in building deeper understanding, relationships, and offerings to individual customers
• The fulfillment management process includes all the activities in receiving and approving orders, shipping the goods on time, and collecting payment
• Many companies today have partnered with specific suppliers and distributors to create a superior value delivery network, also called a supply chain
• Value exploration involves how a company identifies new value opportunities
• Value creation involves how a company efficiently creates more promising new value offerings
• The marketing plan is a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives
• Value delivery involves how a company uses its capabilities and infrastructure to deliver the new value offerings more efficiently
• Most large companies consist of four organizational levels: corporate, division, business unit, and product
• The marketing plan is the central instrument for directing and coordinating the marketing effort, operating at strategic and tactical levels
• The strategic marketing plan lays out the target markets and the firm’s value proposition, based on an analysis of the best market opportunities
• The marketing plan should open with a table of contents and brief summary for senior management of the main goals and recommendations
• The tactical marketing plan specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service
• The situation analysis section of the marketing plan presents relevant background data on sales, costs, the market, competitors, and the various forces in the macroenvironment
• A niche strategy focuses on one or more narrow market segments, getting to know them intimately, and pursuing either cost leadership or differentiation within the target segment
• The marketing strategy section of the marketing plan defines the mission, marketing and financial objectives, and needs the market offering is intended to satisfy as well as its competitive positioning
• Holistic marketing maximizes value exploration by understanding the relationships between the customer’s cognitive space, the company’s competence space, and the collaborator’s resource space
• Financial projections in the marketing plan include a sales forecast, an expense forecast, and a break-even analysis
• Market-oriented strategic planning is the managerial process of developing and maintaining a viable fit between the organization’s objectives, skills, and resources and its changing market opportunities
• A risk analysis is a more complex method of estimating profit in the marketing plan
• Implementation controls - The last section of the marketing plan outlines the controls for monitoring and adjusting the implementation of the plan
• Corporate strategy establishes the framework within which the divisions and business units prepare their strategic plans
• The value delivery process includes choosing (or identifying), providing (or delivering), and communicating superior value
• Holistic marketing maximizes value exploration by understanding the relationships between the customer’s cognitive space, the company’s competence space, and the collaborator’s resource space
• Market-oriented strategic planning is the managerial process of developing and maintaining a viable fit between the organization’s objectives, skills, and resources and its changing market opportunities
• Corporate strategy establishes the framework within which the divisions and business units prepare their strategic plans
• The new-offering realization process. All the activities in researching, developing, and launching new high-quality offerings quickly and within budget
• mission statements to share with managers, employees, and (in many

  cases) customers.
• Assessing growth opportunities includes planning new businesses, downsizing, and terminating older businesses.
• INTENSIVE GROWTH Corporate management’s first course of action should be a review of opportunities for improving existing businesses.
• INTEGRATIVE GROWTH A business can increase sales and profits through backward, forward, or horizontal integration within its industry.
• DIVERSIFICATION GROWTH Diversification growth makes sense when good opportunities exist outside the present businesses—the industry is highly attractive and the company has the right mix of business strengths to succeed.
• corporate culture - “the shared experiences, stories, beliefs,

  and norms that characterize an organization.”
• Innovation in marketing is critical.
• marketing opportunity is an area of buyer need and interest that a company has a high probability of profitably satisfying. There
• environmental threat is a challenge posed by an unfavorable trend or development that, in the absence of defensive marketing action, would lead to lower sales or profit.
• Once the company has performed a SWOT analysis, it can proceed to goal formulation, developing specific goals for the planning period.