1709

Problem

Using the marketing strategy center concept as a guide, describe how a strategy that is entirely appropriate for a particular target market might fail because of poor implementation in the logistics and technical service areas.

Step-by-step solution

Show all steps

Step 1/4

Marketing strategy center approach emphasizes the importance of the cross-functional relationships between departments in executing marketing strategies.

It is a concept that integrates various departments into decision making process.

Cross-functional relationship refers to the relationships between the inter-dependent departments such as marketing and operations or marketing and logistics.

Step 2/4

Strategy formulation is the first step of strategy implementation in an organization. Sometime company develops strategies using various strategy centric concepts appropriate for targeting a particular market.

This may include option such as quick delivery of the product, 30 minutes delivery of pizza, one day delivery of cell phones etc.

Step 3/4

Effective logistics management helps the company to distribute the product and services at right time and right place.

If company implements a marketing strategy to increase demand of the product without considering the logistics and supply chain capabilities, company can end in a state if complete despair.

Because of extensive marketing there will be a demand in market but company will not be able to deliver on time.

Instead of boosting the revenue, this situation often destroys the company’s image in the new market.

Step 4/4

Example: If someone orders a product for a special occasion but company deliver’s it on the next day due to insufficient operational and logistics capacity.

This situation will create a bad name due to word-of-mouth publicity by the customer. Additionally, company will lose the customer for lifetime.