Chapter 1

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

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What is a Strategy?

Fundamental pattern of:

Present and planned objectives
Resource deployments
Interactions of an organization with

markets, competitors, and other

environmental factors

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Components of Strategy

Scope
Goals and objectives
Resource deployments
Identification of sustainable
competitive advantage
Synergy

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The Hierarchy of Strategies

Three major levels of strategy

Corporate strategy
Business-level strategy
Functional strategy

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Variations in Marketings 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

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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
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Market-Oriented
Management

Adopts different organizational

procedures and structures to:
Improve the responsiveness of decision

making

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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.

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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

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Does Being Market-Oriented Pay?

Pays dividends in a developed
economy
Has a positive effect on various
dimensions of performance

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Factors that Mediate a Firms Market Orientation

Competitive conditions
Different levels of economic
development across industries or
countries
Strategic inertia

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Exhibit 1.6 - Differences between

Production-Oriented and Market-Oriented
Organizations

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Recent Developments Affecting the Strategic Role of Marketing

Globalization
Increased importance of service
Information technology
Relationships across functions and
firms

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Exhibit 1.8 - Categories of E-Commerce

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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
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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

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Formulating and Implementing Marketing Strategy Process

Formulating marketing strategies for

specific situations
Implementation and control of the
marketing strategy

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The Marketing Plan

Details current situation with respect

to:

Customers
Competitors
The external environment

Provides guidelines for:

Objectives
Marketing actions
Resource allocations

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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

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