Strategic Marketing 9th edition David w Cravens and Nigel F Piercy Chapter 1 Exp

Question

Strategic Marketing 9th edition David w Cravens and Nigel F Piercy

Chapter 1

Explain fully superior customer value and synergies.

1.    Explain fully corporate strategy and all the components of corporate strategy.

2.    Explain fully strategic business unit.

3.    Explain fully market segmentation and market segments.

4.    Explain fully the designing of market driven strategy.

Chapter 2

6.    Identify and explain fully each of Porter’s 5 Forces.

7.    Explain fully relative market position and market potential.

Chapter 3

8.    Explain fully marketing segmentation including the bases for segmentation.

9.    Explain fully marketing sizing, market targeting, and market niche.

Chapter 4

10.  Explain fully the CRM levels and the integration of CRM.

11.  Explain fully how a CRM supported customer responsive strategy results in competitive advantage.

12.  Explain fully the steps to developing a CRM strategy.

Explanation / Answer

Corporate strategy and its components
corporate strategy can be briefly explained as the complete scope and the direction of a corporation and the different ways in which the various operations related to business interact to achieve the particular goals or the ultimate goal of the company. It is of utmost importance that a corporation has a well-formulated corporate strategy in order to succeed in the long run. the corporate strategy will be formulated on the basis of the Vision, the mission And the goals of the corporation. The corporate strategy may require the corporation to invest in resources valuable for the goals, design a business portfolio, properly design the best organization structure, function as well as systems to bring out the best output through optimal inputs. corporate strategies to bring in a competitive advantage over the others. for example: cost leadership, vertical/ Horizontal integration, product differentiation are strategies to bring in competitive advantages.
strategic business unit
strategic business unit or SBU is the fully functional and unique unit of a corporation that has its own strategic vision and goals. it is a very important part of a corporation.SBU's are independently managed division of the corporation these units are commonly referred to as the profit centers. Strategic units can be aimed at specific products of the company and liable for each and every strategy/ decision that is to be taken for that particular products.
market segmentation and market segments.
Market segmentation is the division of the market population into different classes/groups/parts based on different factors. The entire Market population is divided into groups and subgroups on the basis of the customer's characteristics. These divided groups will have a population with the same characteristics and have more common and similar characteristics i.e each group of customers may have identical needs, wants and demands. market segmentation enables the company to design specific and distinct marketing mix to suit their respective expectations and demands of each category.
Market segmentation helps because not all people have the similar needs. For eg: The needs and wants of a male and female are different from the very early stages of life.segmentation helps in easily identifying the specific needs and wants of the people. So it helps in designing specific and distinct strategies and products for the segments of the market. Hence the company is able to push the right product to the right customer, thereby enabling the corporation to reach a wider customer audience and to get the best results.
The market can be segmented basically into four. they are:
1.behavioral
2.demographic
3.Psychographic
4.geographical.

1.Behavioral segmentation
it is the division of the customers/market on the basis of the customer's purchase behavior. Behavioral segmentation is carried out on the basis of customers usage, frequency, benefits sought, brand loyalty etc. it aims to understand the customer's purchase habits, usage habits and spending habits like money, time and the other resources.
Behavioral segmentation hence can be further divided on the basis of
benefits sought
purchase occasion
purchase frequency
usage
perceptions and beliefs
spending habits

2.demographic
it is the segmentation on the basis of

3.psychographic Segmentation

4.Geographic segmentation
it is the division based on geography. It divides the market area into

Market-driven strategy
it is very important in creating a business strategy. This approach emphasizes on the market and is customer oriented. Understanding what the customer's needs help in creating a successful product. A good business strategy will always begin with a good understanding of the market, the customers and also the important competitors. The market and its customers should be the focus factors while formulating a business strategy. the main characteristics of a MDS are determining distinctive capabilities, customer value match and achieving superior performance.
Benefits of MDS

Porters five forces
competitors in the industry
it focusses on the number of competitors that exist in an industry and their ability to threaten the company. If there exist a large number of competitors and a large number of products and services, the power of this company will be less. Customers are always in search of the best deals and they will always go to the competitor if the company cannot strike a suitable deal. But when the competition is low, the company has greater power and can achieve higher sales and profits.
the potential of new entrants
There will always be new entrants into the market. It is always necessary a constant check is done and to make survival difficult for the new company. It does not require large money and time for a new entrant. But if a new entrant grows out to become an effective competitor the company's position will be weakened.
power of suppliers
when the number of suppliers is less, the power of the supplier will be huge. With no possible substitute suppliers, suppliers will have more power on the deals. The company will have to be satisfied with the poor service and huge price.
power of customers
The customer holds great power. They are in constant lookout for the best deals. If another company provides a better deal they will shift. If the competitor provides the product at a cheaper price the customer may shift.
a threat of substitute products
Substitute products are always a threat to the company. It depends upon the customers to purchase the product. the customer may shift to a substitute product if he finds the product has a better value.

CRM
CRM or customer relation management is the system which helps in managing the company's interaction with the customers. It helps to maintain relations with the current customers and to build relations with new customers. It utilizes technology to organize, synchronize sales, automate, marketing and promotion, technical support and customer service.
the different types of CRM are
operational
analytical
collaborative

Steps of developing a CRM Strategy
developing a vision for the CRM strategy
forming a CRM team
gather information
Assess the actual state and the expected state and find out the difference.
identify value opportunities
Link value opportunities to strategic CRM capabilities
define CRM project and requirements
develop business case
develop the rollout strategy

Benefits
allows registering your leads and contacts
enables to track customer interaction
reveals possibilities
updated customer data

Enabling Competitive advantage
provides the sales department the tools needed to succeed.
it provides personal service
Streamline and automates the process
centralizes information
provides service anytime, Anywhere

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