Chapter 22: Managing Marketing, Implementation, Organization and Control

Question 1

from strategy to action

Answer 1

Designing marketing strategies and positioning plans that meet market
requirements is a necessary but not a sufficient condition for success.
▪ What and Why something should happen…
▪ Both need to be translated into action through effective
implementation.
▪ Who, How, When and Where…
▪ Without a well-organized implementation, even the best strategy is
likely to fail.

Question 2

Model of superior value creation - Commoditization

Answer 2

Commoditization
▪ Occurs when differentiated products lose their uniqueness and no longer stand
out in the marketplace → significant problem for value-based business longterm sustainability
▪ Early signs: increasing price sensitivity, competitors frequently cutting prices,
consolidation across the industry

Question 3

Model of superior value creation - Profit squeeze

Answer 3

▪ Profit squeeze
▪ Occurs when firms aims to keep providing highly differentiated offers. So, sales
growth and profits are squeezed due to price drops needed to maintain market
share.
▪ In the long-term, only the lowest-cost operators survive

Question 4

model of superior value creation - co creation of value

Answer 4

▪ Market-orientated firms should actively find ways to restore
differentiation by increasing the value proposition
* Price reductions are not the way to solve the problem…
▪ Solutions: Supply chain alignment, management alignment
▪ Clear signs about the need for the company to serve customers

Question 5

Superior value

Answer 5

Several ways
* Augmenting services to increase customization → stronger ties with customers
* Product innovation
* Process and services innovation that make the competition irrelevant
* Identifying specialist niches