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ole T5c Fig. e. The customer as the controlling function and marketing as the integrative function Customer Marketing Production Determinants of Customer Delivered Value Product value Services value Personnel value Image value Moary cost Time cost Energy cost Total customer value T6 Psychic cost Total customer cost Customer delivered value T6 Fig. The Generic Value Chain Fig. T7 Primary Activities Support Activities Firm infrastructure Human resource management Technology development Procurement Inbound logistics Outbound logistics Marketing and sales Service Opera tions Levi Strauss’ ValueDelivery Network T8 Order Du Pont (Fibers) Milliken (Fabric) Levi’ s (Apparel) Sears (Retail) Competition is between works, not panies. The winner is the pany with the better work. Fig. Customer Order Order Order Delivery Delivery Delivery Delivery Levels of Relationship Marketing Fig. T9 Many customers/ distributors Medium number of customers/ distributors Few customers/ distributors Accountable Proactive Partnership Proactive Accountable Reactive Accountable Reactive Basic or reactive High margin Medium margin Low margin The Profit Triangle Fig. T10 Profit Competitive advantage Strategic Planning, Implementation, and Control Process T11 Corporate planning Division planning Business planning Product planning Organizing Implementing Measuring results Diagnosing results Taking corrective action Fig. Planning Implementation Control The Boston Consulting Group’ s GrowthShare Matrix T12 3 ? 10x 4x 2x 1x 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0 Market growth rate Relative market share Stars Cash cow Question marks Dogs ? 5 4 2 1 6 8 7 .5x .4x .3x .2x .1x Fig. Market Attractiveness: Competitive Position Portfolio Classification Fig. T13 Strong Medium Weak BUSINESS STRENGTH MARKET ATTRACTIVENESS Low Medium High Hydraulic pumps Joints Clutches Flexible diaphragms Aerospace fittings Fuel pumps Relief valve Invest/grow Selectivity/earnings Harvest/divest The StrategicPlanning Gap Fig. T14 Desired sales Diversification growth Integrative growth Intensive growth Current portfolio Sales Time (years) Strategic planning gap 10 5 0 Three Intensive Growth Strategies: Ansoff’ s Product/Market Expansion Grid T15 1. Market peration strategy (Diversification strategy) 3. Product development strategy 2. Market development strategy Current markets New markets Current products New products Fig. Opportunity Matrix T16a 1 4 2 3 High Low High Low Attractiveness Success Probability Fig