Today we are going to talk about the last step of company-wide strategic planning and its four steps which is planning marketing: partnering to build customer relationship. In our previous post we discussed about designing the business protfolio you might want to see it too.

Planning marketing: Partnering to build customer relationships

The company strategic planning explains what kind of business the
planning marketing and build customer relationship
company will perform and objectives for each one. Then detail planning for each unit takes place. The major department which must work together to accomplish strategic objectives are—marketing, finance, accounting, purchasing, human resources and others. Marketing plays the lead role in the company strategic planning. Marketing provides a guideline—the marketing concept—which suggest that companies should focus on building profitable customer relationship with the important consumer group. Marketing also helps strategic planner by identifying attractive market, opportunities and assessing company’s potential to take advantage of them. Within every individual business unit marketing design strategies to reach its objective in a profitable way.

Customer value is the key ingredient which decides whether a marketing formula is failure or success. Marketing alone cannot provide that superior value to the customers. Even if it plays the lead role, it can only act as a partner in attracting, keeping and growing target customers. Marketers must work closely with other internal department of the company to form an effective internal value chain that serves superior value chain to the customers. Marketers also need to partner with other companies to form a superior external value delivery network. We will now take a closer look at the value chain and value delivery network.

Partnering with other company departments

Each department of a company acts as a link in the company’s internal value chain. Each department plays an important role in designing, producing, marketing, delivering, and supporting the firm products. A firm’s success doesn’t only depends on how well every department performs their work, but also how well every department coordinates their activities.

For example, let’s talk about Walmart. We all know Walmart goal is to create customer value and satisfaction by providing products they want at the lowest possible price. Marketers of Walmart’s plays lead role here. They analyze what customers want and fills store shelves with desired product at the lowest possible price. They prepare advertising program and help shoppers with the much-needed customer service. Through these and other activities, Walmart’s marketer’s help delivers desired value to the customers. But, the marketing department of Walmart needs help from other department’s to deliver the desired satisfaction. Walmart’s ability to offer the right product at the lowest possible price depends on the skill of purchasing department of Walmart. They find the needed suppliers and buy the product from them at the lowest price. Walmart’s information technology department must provide fast and accurate information about the trending product and its operation people must provide effective, low-cost merchandise handling.
Like, Walmart every organization must form an effective internal value chain because success depends on how well every department performs their work and coordinates the activities.

Partnering with others in the marketing system

To create superior customer value, an organization needs to look above its own internal value chain and needs to look at its value delivery network such as suppliers, distributors and ultimately its customers. Almost every organization of today’s world partnering with other members of their supply chain—suppliers, distributors, and ultimately customers—to improve the performance of their customer value delivery network. 

For example, let’s talk about L’Oreal a well-known cosmetics manufacturing company. L’Oreal knows the importance of maintaining good relationships with their extensive network of suppliers who supply everything from polymer to packaging. Their suppliers play crucial role in their success. L’Oreal treats its suppliers as a respected partner and closely work with them to meet its standards. L’Oreal works to build long-term customer relationship based on mutual benefit and growth as a result almost 75 percent of its supplier are working with them for 10 years. In today’s world competition does not take place between individual competitors rather it takes place between entire value delivery networks. So every organization should work closely with their supplier to create an effective value delivery network.
Planning marketing: Partnering to build customer relationships
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