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Chapter 2Putting the end-customer first Content The marketing perspective Key issue The marketing perspective Marketing is a philosophy that integrates the disparate activities and functions that take place within the network. Satisfied [end] customers are seen as the only source of profit, growth and security. (Doyle,1994) The Challenge… The marketing perspective The marketing perspective Two pairs of concepts The marketing perspective Rising customers expectation The marketing perspective The information revolution Content Segmentation Key issue Segmentation Market can be segmented in many ways Demographic: such as age, gender and education Geographic: such as urban vs. country, types of house and region Technical: the use that customers are going to make of a product Behavioral: such as spending pattern and frequency of purchase Segmentation Segmentation Fragmentation of Markets and Product Variety Are the requirements of all market segments served identical? Are the characteristics of all products identical? Can a single supply chain structure be used for all products / customers? No! A single supply chain will fail different customers on efficiency or responsiveness or both. Segmentation Activity 1 Try to compare the segmentation strategies between Dell and Lenovo in computer market. What logistics strategy should Dell make to fit its market segmentation? So what about Lenovo? Segmentation Content Quality of service Key issues Quality of service Quality of service Quality of service Customer loyalty=Customer satisfaction Value disciplines Operational excellence Product leadership Customer intimacy Customer relationship management Bow tie Diamond Content Setting logistics priorities Key issues Setting logistics priorities Product style Agile design, not pilot design Employ many cool hunters Production system 50% production at headquarters, 20% imported from low-cost countries (Asia), 30% in other region of Spain or Europe Spare production capacity: production
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