Slide business process

Business Process
Trần Văn Trang, Ph.D.
Business Operation Dept.

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Contents
• Chapter 1: Overview about business
process
• Chapter 2: Customer Satisfaction, Value,
and Retention
• Chapter 3: Implementing and Controlling
Business Plans

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Chapter 1 Overview about business process
• Sales Concept, Marketing Concept and Customer
Concept
• Old Economy vs. New Economy
• Business process
• Basic concepts about marketing:

• Target marketing.
• Four Ps in a marketing mix and 7 Ps for services

• Difference between a marketing strategy, a marketing
•

plan, and a marketing program.
Customer equity and why business planners seek to
increase it.
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Contrasts Between the Sales Concept
and the Marketing Concept

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Company Orientations Toward
the Marketplace
The Customer Concept

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Old Economy vs. New Economy
Old Economy

New Economy

Organize by product units
Focus on profitable transactions
Look primarily at financial
scorecard
Focus on shareholders
Marketing does the marketing

Build brands through advertising
Focus on customer acquisition
No customer satisfaction
measurement
Overpromise, underdeliver

Organize by customer segments
Focus on customer lifetime value
Look also at marketing scorecard
Focus on stakeholders
Everyone does the marketing
Build brands through behavior
Focus on customer retention and
growth
Measure customer satisfaction and
retention rate
Underpromise, overdeliver

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Adapting Marketing to the New
Economy
– Everyone does the marketing
– Build brands through performance,
not just advertising
– Customer retention rather
than customer acquisition
– From none to in-depth customer satisfaction
measurement

– From over-promise, under-deliver to underpromise, over-deliver
– The New Hybrid
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The difference between target marketing and
mass marketing

Production-oriented manager sees
everyone as basically similar and
practices “mass marketing”

Marketing-oriented manager sees
everyone as different and
practices “target marketing”
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Business management process
• The business management process refers to the
planning, implementation, and control of
business activities. These activities are
continuous, and decisions made in the past in
one area can have implications on the other
areas as well

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Business management process

• Planning : required because business managers must
seek new opportunities.
• Implementation: the process of putting business plans
into action.
• Control: assessing and evaluating business
performance.
– When performance falls short of expectations, the business
manager must take corrective action.

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Discussion Question
• Which is more important:
good planning or good
implementation? Explain

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Business management process

Marketing
Planning

Control Marketing Plan(s)
and Program

Whole-Company
Strategic

Management
Planning

Implement Marketing
Plan(s) and Program

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The Marketing Plan Guides Implementation and
Control

Target
Market

+
Marketing
Mix

=

Marketing
Strategy

+
TimeRelated
Details

=

Marketing
Plan

+
Other
Marketing
Plans

=

A Firm’s
Marketing
Program

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What is Marketing Strategy Planning?

The
marketing mix

C

•Marketing strategy: specifies a target
market and a related marketing mix;
provides a “big picture” of what the
firm will do.
•Target market : a fairly
homogeneous (similar) group of

customers to whom a company
wishes to appeal.
• Marketing mix: the controllable
variables the company puts together
to satisfy the target market.
Discussion Question: Why doe the
customer (C) appear in the center of
the diagram of a marketing strategy?

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Discussion Question
• Why doe the customer (C)
appear in the center of the
diagram of a marketing
strategy?

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Developing Marketing Mixes for Target Markets

Product

Place
C

Price

Promotion

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Discussion Question
• The customer is not part of
the marketing mix. Why??

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All Four Ps Contribute to the Whole

Product
Place
Promotion

Selection
of Target
Market

Price
Understanding the Target Market Leads to Good Strategies!
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Discussion Question
• Choose a product or service and
discuss how the elements of the

marketing mix interact with each
other. For example, how do product
decisions affect decisions about
place, promotion, and price?

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Focusing Marketing Strategy with Segmentation
and Positioning

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