1. Chapter 1 Market-Oriented Perspectives Underlie Successful Corporate, Business, and Marketing Strategies

2. Fundamental pattern of:
What is a Strategy?
Fundamental pattern of:
Present and planned objectives
Resource deployments
Interactions of an organization with markets, competitors, and other environmental factors

3. Components of Strategy
Scope
Goals and objectives
Resource deployments
Identification of sustainable competitive advantage
Synergy
Scope – Breadth of its strategic domain.
Number and types of industries.
Product lines.
Market segments it competes in or plans to enter.
Goals and objectives
Should detail desired levels of accomplishment on one or more dimensions of performance.
Resource deployments
Deciding how the resources are to be obtained and allocated across businesses.
Identification of a sustainable competitive advantage
Specification of how the organization will compete in each business and product market within its domain.
Synergy
Enables the total performance of the related businesses to be greater than it would otherwise be.

4. The Hierarchy of Strategies
Three major levels of strategy
Corporate strategy
Business-level strategy
Functional strategy
Corporate strategy
Managers must coordinate the activities of multiple business units.
Essential questions at this level
What business(es) are we in?
What business(es) should we be in?
What portion of our total resources should we devote to each of these businesses to achieve the organization’s overall goals and objectives?
Business-level strategy
How a business unit competes within its industry is the critical focus.
Major issue is that of sustainable competitive advantage.
Marketing strategy
Effectively allocates and coordinates marketing resources and activities to accomplish the firm’s objectives within a specific product market.

5. Variations in Marketing’s Strategic Influence
Strength of influence exerted by marketing managers
varies across organizations
Variables that impact marketing's influence
Amount of focus on R and D activities
Customer connecting capabilities

6. Market-Oriented Management
Marketing concept: Planning and coordinating all
company activities around satisfying customer needs
Effective means to attain and sustain a competitive advantage and achieve company objectives
Consistent focus by personnel in all departments and at all levels

7. Market-Oriented Management
Adopts different organizational procedures and structures to:
Improve the responsiveness of decision making

8. 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.

9. 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

10. Does Being Market-Oriented Pay?
Pays dividends in a developed economy
Has a positive effect on various dimensions of
performance
Organizations can enhance, accelerate, and reduce the volatility and vulnerability of their cash flows by:
Paying careful attention to customer needs and competitive threats and acting upon them carefully.
Focusing on activities across all functional departments.

11. Factors that Mediate a Firm’s Market Orientation
Competitive conditions
Different levels of economic development across
industries or countries
Strategic inertia
Product oriented or production-oriented
Focus attention and resources on:
Product and process engineering.
Production.
Finance in order to acquire and manage the resources necessary to keep pace with growing demand.
Sales oriented response
Aims to maintain market share and hold down unit costs with aggressive promotional activities
Hiring more salespeople.
Increasing advertising budgets.
Offering frequent price promotions.
Focuses on selling what the firm wants to make rather than on customer needs.

12. Exhibit 1.6 - Differences between Production-Oriented and Market-Oriented Organizations

13. Recent Developments Affecting the Strategic Role of Marketing
Globalization
Increased importance of service
Information technology
Relationships across functions and firms
Globalization
International markets account for a large and growing portion of the sales of many organizations.
Increased importance of service
Service businesses account for two-thirds of all economic activity in the United States.
Fastest-growing sector of most other developed economies around the world.
Information technology
New technologies are making it possible for firms to collect and analyze more detailed information about potential customers and their:
Needs, preferences, and buying habits
Competitors’ offerings and prices.
Open new channels for communications and transactions between suppliers and customers.
Relationships across functions and firms
Cooperative relationships are emerging inside companies as firms seek mechanisms for more effectively and efficiently coordinating across functional departments.

14. Exhibit 1.8 - Categories of E-Commerce

15. 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

16. 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
Instructor: See Exhibit 1.9
4 Cs
Company’s internal resources, capabilities, and strategies.
Environmental context - Broad social, economic, and technology trends in which the firm will compete.
Relative strengths and weaknesses of competitors and trends in the competitive environment.
Needs, wants, and characteristics of current and potential customers.
Market segments: Distinct subsets of people with similar needs, circumstances, and characteristics that lead them to respond in a similar way to a particular product or service offering or to a particular strategic marketing program.

17. Formulating and Implementing Marketing Strategy Process
Formulating marketing strategies for specific
situations
Implementation and control of the marketing
strategy

18. Details current situation with respect to:
The Marketing Plan
Details current situation with respect to:
Customers
Competitors
The external environment
Provides guidelines for:
Objectives
Marketing actions
Resource allocations

19. Contents of a Marketing Plan
Executive summary
Current situation and trends
Performance review
Key issues
Objectives
Marketing strategy
Action plans
Projected profit-and-loss statement
Controls
Contingency plans