Describe decision making process for market-oriented firm
Please choose and write up any 2 of questions 1 through 4 below below in a well-written, well-structured essay (see the Writing Effectively rubric). E I suggest using concise language and that you choose those questions regarding topics that interest you most. Please limit the resulting document to a total of 5 pages, single-spaced, 10-point font
(1) The Value Chain and Customer Value Creation.
One way that market-oriented firms create value for their customers is by optimizing their value chains. That is, they address the various activities that are required to produce a good or service that satisfies their customers in a strategic and holistic fashion. One of the implications of this is that firms are faced with decisions about which value chain activities they must perform if they are going to create value for their customers.
(i) Describe the decision making process for a market-oriented firm regarding its value chain. How does it determine which value adding activities it should perform? Give examples to illustrate.
(ii) Consider Porter’s “generic strategies”. How do different generic strategies result in different decisions regarding value chain activities? What are the implications for the ability of the firm to succeed in creating sustainable competitive advantages?
(iii)What does this imply for the firm’s resources, their competences and capabilities? What is necessary for superior firm performance?
(2) Customers are said to be value maximizers and will seek to buy from the firm they perceive as delivering the greatest value.
Conversely, companies need to understand which customers are profitable and to extract the maximum life-time value by effectively managing customer relationships. Market-oriented firms that are able to do this effectively may well find themselves in a position that will permit them to achieve superior firm performance.
(i) Define success for the market-oriented firm in the context of the customer. What defining characteristics does the successful market-oriented firm have? How are these attributes used to create marketing success? Please use examples to illustrate the points you make.
(ii)Is there such a thing as an unprofitable customer? How do market-oriented firms make decisions about which markets to pursue and which not to pursue? What should firms do to ensure that their core customers are profitable ones?
(iii) Attracting and retaining customers is at the core of profitability for many firms. What must firms do to be effective at this key task? Again, please illustrate with examples.
(3) The consumer buying process is said to be a “black box” phenomenon, subject to various and sundry influences. The ability of firms to influence consumer buying processes is a necessary but difficult endeavor, sometimes expensive, sometimes ineffective. In a strategic context, the firm’s ability to understand and act on their knowledge of consumer buying processes is essential.
(i) What is at the core of the processes associated with consumer decision making? Why do consumer decisions differ from person to person?
(ii)Consider the various behavioral drivers of consumer decision making (e.g. motivation, situational etc..) and develop a personal theory that reflects your opinion about what has the greatest influence on consumer behavior. Use an example to illustrate how consumer behavior works, according to your theory.
(iii)What is the role of marketing in the consumer decision-making process? Can marketing influence consumer thinking, if yes, how? Explain how firms might be able to achieve their goals by capitalizing on their knowledge of consumer behavior. Use examples to illustrate.
(4)For many firms, segmenting, targeting, and positioning are essential aspects of firm marketing strategy. Effective implementation of the marketer’s understanding of the market may be perceived as a key to firm success.
(i)Explain the rationale behind this process and relate it to the bigger (strategic) marketing picture. What does it mean in terms of the firm’s value chain and strategic orientation? What does it mean in terms of the firm’s resources?
(ii)What is necessary for this strategic process to be effective from the perspective of both the firm and the consumer? How does it support the goals of the market-oriented firm?
(iii)How does effective positioning create customer value? Explain using examples.
