This is a summary of 11 chapters of the Strategic Marketing Management book by Alexander Chernev. I summarised the text of the book and concluded some images to make things more clear. The summary is short, mostly with bulletpoints so that it is organised. The bulletpoints are explained with enough...
Business model: outlines the architecture of value creation by defining the entities,
factors, and processes involved in delivering and capturing value in the marketplace
Business models are:
- Value-focused
- Intangible
- universal
Strategy:
identifies the market in which the company operates
defines the value exchanges among the key market entities
outlines the ways in which an offering will create value for the relevant
participants in the market exchange
Tactics: describe a set of activities = market mix
execute a given strategy
2.2 – Marketing strategy: defining the value exchange
Five Cs: defines in which market a company’s offerings competes in
1) Target customers => potential buyers – typically defined by the needs the
company aims to fulfil with its offerings
2) Company => organization managing the offering
If an organization compromises a diverse portfolio: “Company” = particular
business unit of the organization (= strategic business unit)
3) Collaborators => entities that work with the company to create value for
target customers
4) Competitors => entities with offerings that target the same customers and
aim to fulfil the same customer needs
5) Context => the relevant aspects of the environment in which the company
operates
Value proposition: the value that an offering aims to create for the relevant
participants in the market
Value exchange: value-based relationship among the different entities in a given
market (=> key to understand and to design a meaningful value proposition)
6-V framework: defined by the interactions among these
four entities (customer, company, competitor, collaborator)
,Optimal value: the value is balanced across three entities (customers, company,
collaborators)
an offering creates value for its target customers and
collaborators in a way that enables the company to achieve its
strategic goals
2.3 – Marketing tactics: designing the marketing mix
7 Ts: define the 7 tactical aspects of the offering – 7 tools that managers use to
create value for target customers, the company, and collaborators
1) Product: reflects its functional characteristics
2) Service: reflects its functional characteristics – do not imply change in
ownership, customers obtain the right to use the service for a period of time
3) Brand: set of unique marks and associations that identify the offering and
create value beyond the product/service aspects of the offering
4) Price: amount of money a company charges its customers and collaborators
for the benefits provided by the offering
5) Incentives: tools used to selectively enhance the value of the offering for its
customers, collaborators, and/or employees
6) Communication: process of informing current and potential buyers about the
specifics of the offering
7) Distribution: defines the channels through which the offering is delivered to
customers
2.4 – business model dynamics
The development of a business model can follow different paths:
1) Top-down analysis: start with a broader consideration of the target market
and the relevant value exchange, followed by designing a specific offering
commonly follows one of two alternative paths
1. Starting with a customer analysis that seeks to identify a need that has not
been fulfilled by the competition
2. Starting with an analysis of company resources that aims to identify core
competencies and strategic assets that could potentially lead to a
sustainable competitive advantage
2) Bottom-up analysis: designing the specific aspects of the offering, followed
by identifying the target market and optimal value proposition
, Chapter 3 – The marketing plan
3.1 – The G-STIC framework for marketing
planning
Goal-Strategy-Tactics-Implementation-Control
framework (G-STIC): cornerstone of market
planning and analysis
Goal: identifies the ultimate criterion for
success that guides all company marketing
activities
Involves two decisions:
1. Identifying the focus of the
company’s actions
2. Defining the specific quantitative
and temporal performance
benchmarks to be achieved
Strategy: outlines the logic of the company’s value-creation model
Involves two decisions:
1. Identifying target market
2. Develop the offering’s value proposition
Tactics: a set of specific activities employed to execute a given strategy
Implementation: outlines the logistics of executing the company’s strategy
and tactics
Involves three key components:
1. Defining the business infrastructure
2. Designing business processes
3. Setting the implementation schedule
Control: defines the criteria for evaluating the company’s goal process
Two types of goals can be distinguished
1) Monetary: monetary outcomes – maximizing net income, earnings per share,
and return on investments
2) Strategic goals: nonmonetary outcomes that are of strategic importance to
the company
Performance benchmarks: define the ultimate criteria for success
Two types:
1) Quantitative benchmarks: define the specific milestones to be achieved by
the company with respect to its focal goal
2) Temporal benchmarks: identify the time frame for achieving a particular
milestone
Market objectives: delineate specific changes in the behaviour of the relevant
market factors that will enable the company to achieve its ultimate goal:
Different types of market objectives:
- Customer objectives: aim to elicit changes in the behaviour of target
customers that will enable the company to achieve its ultimate goal
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