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Chapter 2

BU354 Chapter Notes - Chapter 2: Human Resource Management, Customer Relationship Management, Operational Excellence


Department
Business
Course Code
BU354
Professor
Chet Robie
Chapter
2

Page:
of 9
!
1
BU352- CHAPTER 2: DEVELOPING MARKETING STRATEGIES AND A MARKETING
PLAN
Famoso Case
1. What are the needs and wants of Famoso’s consumers?
a. Need: food, hunger, they need to eat
i. Don’t have time, so go out for a restaurant meal
b. Want: fresh food, casual dining, atmosphere, the experience, have a higher quality
food, it is made higher quality because they use fresh ingredients, strict standards for
the pizza which makes it better tasting
2. How does Famoso satisfy consumer needs? (OR, look at preferably how does Famoso satisfy
consumer wants?)
a. Has the option to go, make it inviting for you to want to stay there
WHAT IS A MARKETING STRATEGY?
Marketing Strategy: identifies a firm’s target market(s), a related marketing mix- the four
P’s, and the bases upon which the firm plans to build a sustainable competitive advantage
Marketing strategy identifies:
o A firm’s target market(s)
o A related marketing mix- the four P’s
o The bases upon which the firm plans to build a sustainable competitive advantage
What possible sustainable competitive advantages exist and who do they
appeal to
What group is going to be interested in our product, and how do we put that
into action
Sustainable Competitive Advantage
Sustainable Competitive Advantage: something the firm can persistently do better than
its competitors that is not easily copied and thus can be maintained over a long period of
time
o Acts like a wall that the firm has built around its position in a market
o This wall makes it hard for competitors to contact customers inside
o Establishing a sustainable competitive advantage is key to long-term financial
performance
Strong brand
Technology
Strong customer base
Loyal customers
Developing Customer Value
How you can focus on a sustainable competitive advantage
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2
Customer Excellence
Customer excellence: focuses on retaining loyal customers and excellent customer service
Achieved when firms develop value-based strategies for retaining loyal customers and
provides outstanding customer service
Retaining Loyal Customers
Having a strong brand, unique merchandise, and superior customer service all help solidify a
loyal customer base
Loyalty is more than preferring to purchase from one firm instead of another
It means that customers are reluctant to patronize competitive firms
Viewing customers with a lifetime value perspective, rather than on a transaction-by-
transaction basis is key to modern customer retention programs
Create an emotional attachment through loyalty programs
o Loyalty programs which constitute part of an overall customer relationship
management program, prevail in many industries
Customer Service
Build sustainable competitive advantage by offering excellent customer service, though
consistently offering excellent service can prove difficult
Customer service is provided by employees
Providing better customer service than the competitors
Thinking about a company that makes a competitive advantage around successes
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3
Operational Excellence
Operational excellence: achieved through efficient operations and excellent supply chain
and human resource management
Achieved through their efficient operations, excellent supply chain management, and strong
relationships with their suppliers
All marketers strive for efficient operations to get their customers the merchandise they want,
when they want it, in the required quantities, and at a lower delivered cost than that of their
competitors
By doing so they ensure good value to their customers, earn profitability for themselves, and
satisfy their customers’ needs
Firms achieve efficiencies by developing sophisticated distribution and information systems as
well as strong relationships with vendors
Firms with strong relationships may gain exclusive rights to
o Sell merchandise in a particular region
o Obtain special terms of purchase that are not available to competitors
o Receive popular merchandise that may be in short supply
Example: Walmart- built its whole bread and butter around operational excellence
o Getting the best product in the quickest most efficient way to the stores at the best
price
Ef#icient)
operations)
Excellent)
supply)chain)
management)
Strong)
supplier)
relationships)
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