Chap001 Market Planning

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What is a strategy?

A strategyis a fundamental pattern

of present and planned objectives,

resource deployments, and

interactions of an organization withmarkets, competitors, and other

environmental factors


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Scope

Goals and objectives

Resource deployments

Identification of sustainable

competitive advantage

Synergy

Components of Strategy


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The Hierarchy of Strategies

Three major levels of strategy are:

Corporate strategy

Business-level strategy

Marketing strategy


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Market-Oriented Management

Follows a business philosophy

commonly called marketing concept

Consistent focus by personnel in all

departments and at all levels

Adopts a variety of organizational

procedures and structures:

To improve the responsiveness ofdecision making


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Exhibit 1.5

Guidelines for Market-Oriented

Management

Create customer focus throughout the

business

Listen to the customer

Define and nurture your distinctive

competence

Define marketing as market intelligence

Target customers preciselyManage for profitability, not sales volume

Make customer value the guiding star

Let the customer define quality


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Exhibit 1.5

Guidelines for Market-Oriented

Management (continued)

Measure and manage customerexpectations

Build customer relationships and loyalty

Define the business as a service businessCommit to continuous improvement andinnovation

Manage culture along with strategy and

structureGrow with partners and alliances

Destroy marketing bureaucracy


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Exhibit 1.7

Differences between Production-Oriented

and Market-Oriented Organizations

Business Activityor Function

ProductionOrientation

MarketingOrientation

Product offeringCompany sells what

it can make

Company makes

what it can sell

Product line Narrow Broad

Pricing

Based on

production and

distribution costs

Based on

perceived benefits

provided

Research

Focus on productimprovement and

cost cutting in

the production

process

Focus on

identifying newopportunities and

applying new

technology to

satisfy

customer needs


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Exhibit 1.7

Differences between Production-Oriented

and Market-Oriented Organizations

(continued)BusinessActivity or

Function

Production

Orientation

Marketing

Orientation

Packaging Protection for the

product;minimize costs

Designed for

customerconvenience; a

promotional tool

Credit A necessary evil;

minimize bad debt

losses

A customer service;

a tool to attract

customers

Promotion Emphasis on

product features,

quality, and price

Emphasis on

product benefits and

ability to satisfy

customers needs or

solve problems


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Exhibit 1.8

Categories of E-Commerce

Source: Adapted from A Survey of E-Commerce: Shopping Around the Web, The Economist, February 26, 2000, p. 11.

Business Consumer

Business-to-Business(B2B)

Business-to-Consumer (B2C)

Business Examples:

Purchasing sites of

Ford, Oracle, Cisco

Supply chain networks

linking producersanddistribution channel

members, such as 3M

and Wal-Mart

Examples:

E-tailers, such as E*Trade,

Amazon, iTunes

Producers direct sales sites, such

as Dell, Ryanair, Safital Hotels Web sites of traditional retailers,

such as

Sears, Lands End, Marks &

Spencer

Consumer-to-Business

(C2B)

Consumer-to-Consumer (C2C)

Consumer Examples:

Sites that enable

consumers to bid on

unsoldairline tickets and

other goods and services,

such as Priceline

Examples:

Auction sites, such as eBay, QXL

Blogs praising /criticizing

companies or

brands


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Formulating and Implementing

Marketing Strategy Process

Decision-Making Focus

Analysis of the four Cs

Integrating firm's marketing strategy

with other strategies and resources

Market opportunity analysis

Understanding Market Opportunities

Measuring Market OpportunitiesMarket Segmentation, Targeting, and

Positioning Decisions


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Formulating and Implementing

Marketing Strategy Process

(Continued)Formulating strategies for specific

market situations

Implementation and control


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The Marketing PlanA Blueprint

for Action

A marketing planis a written

document detailing the current situation

with respect to customers, competitors,

and the external environment


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Chap001 Market Planning

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