Where Growth is Hot but

3. Customer Value and
Strategic Planning
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Holistic Marketing and
Customer Value
Outline
Value Exploration
Value Creation
Value Delivery
Marketing and Customer Value
Corporate Strategic Planning
Business Unit Strategic Planning
Marketing Process
Shan-Yu Chou
Example: Starbucks
The average customer education levels and
income↓
Commoditized the brand and diluted the
customer experiences
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Value Exploration
Value Creation
Customer’s Cognitive Space
Company’s Core Competence Space
Collaborator’s Resource Space
Shan-Yu Chou
Identify customer benefits
Utilize core competence
Business realignment may be necessary.
Select and manage partners
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Value Delivery
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Strategic Planning
Customer Relationship Management
Internal Resource Management
Business Partnership Management
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Shan-Yu Chou
Corporate strategic planning
Business unit strategic planning
The marketing process
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Corporate
Strategic Planning
What is Strategic Planning?
“The process of developing and maintaining a
strategic fit between the organization’s goals
and capabilities and its changing marketing
opportunities.”
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Portfolio Design
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Figure 2-2:
Growth-Share Matrix
Analyze the current business portfolio
BCG matrix
Shape the future business portfolio
Product-market matrix
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Defining the corporate mission
Establishing strategic business units
(SBUs)
Assigning resources to each SBU
Planning growth strategies
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The Future Role of Each SBU
Figure 4-4: The Strategic-Planning Gap
Build
Hold
Harvest
Divest
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Growth Strategies
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Figure 4-5: Three Intensive Growth Strategies: Ansoff’s
Product-Market Expansion Grid
 Intensive
Growth
 Integrative Growth
 Diversification Growth
 Downsizing Older Businesses
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Business Unit Strategic
Planning
Business Unit
Strategic Planning
Figure 4-6: The Business Strategic-Planning Process

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Travelocity’s Web site helps the consumer plan the
whole vacation – flights, lodging, and car rental.com
Porter’s Generic Strategies
 Overall cost leadership
 Differentiation
 Focus
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Marketing Alliances
Product or service alliances
Promotional alliances
Logistic alliances
Pricing collaborations
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Marketing Process
Planning Marketing

Analyzing marketing opportunities;
Researching and Selecting target markets;
Designing marketing strategies;
Planning marketing programs;
Implementing and Controlling.
Marketers must
practice Customer
Relationship
Management (CRM)
and Partner
Relationship
Management.
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The Value-Delivery Process
Design
product Procure Make
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The Marketing Plan
(a) Traditional physical process sequence
Make the product
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Executive Summary & Table of Contents
Sell the product
Current Marketing Situation
Price Sell Advertise/
promote Distribute Service
Opportunity & Issue Analysis
Objectives
(b) Value creation & delivery sequence
Marketing Strategy
Choose the Value Provide the Value Communicate the Value
Action Programs
Projected Profit-and-loss
Strategic marketing
Tactical marketing
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Controls
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Factors Influencing Company
Marketing Marketing Strategy
intermediaries
Demographic/
economic
environment
Technical/
physical
environment
Product
Suppliers
Place
Target Price
customers
Publics
Promotion
Political/
legal
environment
Social/
cultural
environment
Competitors
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