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As we have explained, pricing an offering, for example, will involve a company’s finance and accounting departments in addition to the marketing department. The marketing planA document that is designed to communicate the marketing strategy for an offering. Once this information is gathered and digested, the planners can then work to create the right offering.
Following the material on offerings, we explore the decisions associated with building the value chain.
Once a customer has decided that her personal value equation is likely to be positive, then she will decide to purchase the product.
At the beginning of this chapter, we mentioned that the view of marketing has changed from a static set of four Ps to a dynamic set of processes that involve marketing professionals as well as many other employees in an organization.
What is the relationship between social responsibility, sustainability, service-dominant logic, and the global business environment?
Apple’s engineers began working on the iPod by looking at the available technology and thinking about how customers would like to have their music more available, as well as more affordable, through downloading. Note that they all refer to their customers, either directly or by making references to relationships with them. Note Apple’s mission statement: “Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. The purpose of the plan is to influence executives, suppliers, distributors, and other important stakeholders of the firm so they will invest money, time, and effort to ensure the plan is a success. Products and services are developed, bundled together at a price, and then tested in the market. Once an offering is designed, the company has to be able to make it and then be able to get it to the market. The way business is being conducted today is changing, too, and marketing is changing along with it.
SustainabilityAn example of social responsibility that involves engaging in practices that do not diminish the earth’s resources. Within a company, marketing might be the title of a department, but some marketing functions, such as sales, might be handled by another department.
Note also how these are written to inspire employees and others who interact with the company and may read the mission statement.


Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications.
Marketers want to know their customers—who they are and what they like to do—so as to uncover this information.
Decisions have to be made as to when to alter the offerings, add new ones, or drop old ones. That’s because of service-dominant logic, the approach to business that recognizes that consumers want value no matter how it is delivered—whether through a tangible product or through intangible services. The price of oil, for example, is a global concern that affects everyone’s prices and even the availability of some offerings.
The essential components of the plan are understanding customers, creating an offering that delivers value, communicating the value to the customer, exchanging with the customer, and evaluating the firm’s performance. Once a company has decided what business it is in and expressed that in a mission statement, the firm then develops a corporate strategy. Generally, this requires marketing researchers to collect sales and other related customer data and analyze it.
These decisions are the focus of the next set of chapters and are the second step in marketing planning.
As exchanges occur, marketing planners then refine their plans based on the feedback they receive from their customers, what their competitors are doing, and how market conditions are changing. Coca-Cola, for example, is working with governments in Africa to ensure clean water availability, not just for manufacturing Coke products but for all consumers in that region.
That emphasis on value is what drives the functional approach to value that we’ve taken—that is, creating, communicating, delivering, and exchanging value. Earlier in our discussion of the marketing plan, we explained that customers communicate via transactions. A marketing plan is influenced by environmental trends such as social responsibility, sustainability, service-dominant logic, the increased availability of data and effective metrics, and the global nature of the business environment.
The mission of the company then became the one shown in Figure 1.4 "Mission Statement of Deere and Company". This mission statement reflects a product orientation, or an operating philosophy based on the premise that Apple’s success is due to great products and that simply supplying them will lead to demand for them.
Marketing strategists subsequently use the corporate strategy and mission and combine that with an understanding of the market to develop the company’s marketing plan.


These companies created and sold loans (products) that could only be paid back under ideal circumstances, and when consumers couldn’t pay these loans back, the entire economy suffered greatly.
Further, the company seeks to engage American consumers in participating by offering opportunities to contribute to clean water programs.
Although this sounds both simple and obvious, better information technology has given us a much more complete picture of each exchange.
But Coke also has to be concerned with distribution systems in areas with poor or nonexistent roads, myriads of government policies and regulations, workforce availability, and so many different issues in trying to sell and deliver Coke around the world. The challenge, of course, is how to create a “great” product without thinking too much about the customer’s wants and needs.
Right now, companies do not have to engage in these practices, but because firms really represent the people behind them (their owners and employees), forward-thinking executives are seeking ways to reduce the impact their companies are having on the planet.
Cabela’s, for example, combines data from Web browsing activity with purchase history in order to determine what the next best offer is likely to be. Even companies with smaller markets source some or all their offerings from companies in other countries or else face some sort of direct competition from companies based in other countries. Apple, and for that matter, many other companies, have fallen prey to thinking that they knew what a great product was without asking their customers.
Figure 1.5 "Steps in Creating a Marketing Plan" shows the steps involved in creating a marketing plan.
However, whereas ethics require that you only do no harm, the concept of social responsibilityThe idea that companies should manage their businesses not just to earn profits but to advance the well-being of society. Using data from many sources, we can build more effective metrics that can then be used to create better offerings, better communication plans, and so forth. Every business professional, whether marketing or otherwise, has to have some understanding of the global environment in which companies operate. In fact, Apple’s first attempt at a graphic user interface (GUI) was the LISA, a dismal failure. Today, people are demanding businesses take a proactive stance in terms of social responsibility, and they are being held to ever-higher standards of conduct.



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