1-1 McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved C H A P T E R ONE Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies 1

1-2 IBM Not Low Cost Vendor Differentiate R&D Open Source Advertising Personal Selling Trouble PCs Servers Main Frames

1-3 Sold PC Business New e-business EmphasisEmphasis Hook old databases to online systemsdatabases Integrate Web Technology Develop & run company Web sitessites Embrace Smaller businesses Scaled down versions Reorganized internallyinternally

1-4 Discussion Question 1.Companies often talk about their strategies. What does strategy mean? A fundamental pattern of present and planned objectives, resource deployments, and interactions of an organization with markets, competitors, and other environmental factors.

1-5  Scope  Goals and objectives  Resource deployments  Identification of sustainable competitive advantage  Synergy Exhibit 1.3 Components of Strategy

1-6

1-7 Discussion Question 2.What do marketers mean when they say their firms are market oriented?

1-8 Discussion Questions 3.Does having a market orientation make sense? What are the advantages and drawbacks?

1-9  Successes  Chrysler Mini Van  Compaq’s PC network server  Failures  Edsel Edsel  New CokeCoke  McDonald’s McLeanMcLean

1-10 Iomega  New Technology  External Storage device  Too Pricy  Too Heavy  Too Complicated  Zip DriveDrive  Shorter PLC

1-11 Discussion Question 4.What must marketing managers understand to engage in effective marketing practice?

1-12 Discussion Question 5.Which should come first – the customer need or the product idea?

1-13 Discussion Question 6.Why do some firms lack orientation towards the market?

1-14 Why aren’t firms Market oriented?  Orientation  Product  Production  Sales  Different stages of development across Industries and Global Markets  Strategic Inertia

1-15 Discussion Question 7.What sort of decisions must marketing managers make to effectively serve customer needs?

1-16 Other Issues affecting Marketing  Globalization  Growth of the Service Sector  Rapid development of new information and communications technologies  Growing importance of relationships

1-17 Discussion Question 8.So, if one were to plan the various things to be done to market a new product, what are the basic elements that such a plan would consist of?

1-18 Discussion Questions 9.Are planned results always delivered in most organizations? What else might you want to include?

1-19  Executive summary  Current situation and trends  Performance review  Key issues  Objectives Exhibit 1.10 Contents of a Marketing Plan (1of 2 slides)

1-20  Marketing strategy  Action plans  Projected profit-and-loss statement  Controls  Contingency plans Exhibit 1.10 Contents of a Marketing Plan (2 of 2 slides)

Cs  Company’s internal resources, capabilities and strategies  The environmental Context  Relative strengths and weaknesses of Competitors  The needs wants of Customers

1-22 Consulting with Elton II.Market Analysis A. Company Analysis B. Context Analysis C. Competitor Analysis D. Customer Analysis

1-23 Company Analysis What are your goals and objectives? What products and services do you sell? What key concept(s) differentiate your firm? What are your firm’s strengths and weaknesses?

1-24 Company Analysis What is unique about your firm and its products? What kind of image do you want to portray? What position in the market do you want to hold? What is your current or projected market share? Is your market share increasing, decreasing, or static?

1-25 Context Analysis An analysis of the economic, social, governmental, and technological environments that might influence customers, company, competitors, or suppliers. (Porter’s Five Forces Model may serve as an approach to present the latter information in this section.) This section addresses these questions: What is the state of the markets’ economic environment?

1-26 Context Analysis Does government regulation have any impact? Do social or ethical issues that play a factor? What is the rate of technological change? What is the risk of entry of new competitors, where might they come from and who might you anticipate them to be?

1-27 Context Analysis What degree of power do suppliers possess? What degree of power do buyers possess? Do substitute products pose a threat? What is the degree of rivalry within the market?

1-28 Competitor Analysis A complete analysis of the capabilities and likely future moves of key competitors. This section addresses these questions: Who are your major competitors? Where are they located and what are their markets? Why do customers buy their products? What are their strengths and weaknesses? Is their market share increasing,decreasing, or static?

1-29 Customer Analysis A thorough analysis of customers and potential customers in terms of their needs, product related behaviors, attitudes, and lifestyles.  This section addresses these questions:  Who is your current target customer?  What their primary sources of information?  Why would a customer buy your product or service?

1-30 Customer Analysis  What unique or exclusive products and services do you provide your customers?  How often do they buy your product?  How might you impact them to buy more?  Are there other products or services they would like to be able to buy from you?