Chapter 1
Market-Oriented Perspectives Underlie Successful
Corporate, Business, and Marketing Strategies
What is a Strategy?
• Fundamental pattern of:
• Present and planned objectives
• Resource deployments
• Interactions of an organization with markets, competitors
, and other environmental factors
1-2
Components of Strategy
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Scope
Goals and objectives
Resource deployments
Identification of sustainable competitive advantage
Synergy
1-3
The Hierarchy of Strategies
• Three major levels of strategy
– Corporate strategy
– Business-level strategy
– Functional strategy
1-4
Variations in Marketing’s Strategic Influence
•
Strength of influence exerted by marketing managers
varies across organizations
• Variables that impact marketing's influence
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Amount of focus on R and D activities
Customer connecting capabilities
1-5
Market-Oriented Management
•
Marketing concept: Planning and coordinating all
company activities around satisfying customer needs
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Effective means to attain and sustain a competitive advantage and
achieve company objectives
Consistent focus by personnel in all departments
and at all levels
1-6
Market-Oriented Management
• Adopts different organizational procedures and
structures to:
– Improve the responsiveness of decision making
1-7
Exhibit - 1.4 Guidelines for Market-Oriented Management
Source: Reprinted with permission from Marketing Management, published by the American Marketing Association, Frederick E. Webster Jr., “Executing the New
Marketing Concept,” Marketing Management 3, 1 (1994), p. 10.
1-8
Do Customers Always Know What They Want?
•
Most consumers have little knowledge of scientific
advancements and emerging technologies
•
Do not play role in influencing how firms allocate their basic
research dollars
• Customer focus is critical to development
1-9
Does Being Market-Oriented Pay?
• Pays dividends in a developed economy
• Has a positive effect on various dimensions of
performance
1-10
Factors that Mediate a Firm’s Market Orientation
• Competitive conditions
• Different levels of economic development across
industries or countries
• Strategic inertia
1-11
Exhibit 1.6 - Differences between Production-Oriented
and Market-Oriented Organizations
1-12
Recent Developments Affecting the Strategic Role of
Marketing
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Globalization
Increased importance of service
Information technology
Relationships across functions and firms
1-13
Exhibit 1.8 - Categories of E-Commerce
1-14
Future Role of Marketing
• Firms should be:
– Market-oriented
– Tightly focused on customer needs
– Highly adaptive
• Marketing activities critical for effective performance
– Tracking, analyzing, and satisfying customers’ needs
1-15
Formulating and Implementing Marketing Strategy
• Decision-making focus
• Analysis of the four “Cs”
• Integrating marketing strategy with the firm's other
strategies and resources
• Market opportunity analysis
– Understanding market opportunities
– Measuring market opportunities
– Market segmentation, targeting, and positioning decisions
1-16
Formulating and Implementing Marketing Strategy
Process
• Formulating marketing strategies for specific
situations
• Implementation and control of the marketing
strategy
1-17
The Marketing Plan
• Details current situation with respect to:
– Customers
– Competitors
– The external environment
• Provides guidelines for:
– Objectives
– Marketing actions
– Resource allocations
1-18
Contents of a Marketing Plan
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Executive summary
Current situation and trends
Performance review
Key issues
Objectives
Marketing strategy
Action plans
Projected profit-and-loss statement
Controls
Contingency plans
1-19