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

2. Chapter One: Introduction to Strategy Learning Objectives
Understand the meaning and value of strategic planning
Gain a historical perspective regarding strategic planning
Learn the structural component framework of strategy
Discern the hierarchy of strategy development
Gain an appreciation of the role of analytical thinking
Understand the contents of a marketing plan
Dwight D. Eisenhower said it best: "Plans are nothing, planning is everything." While your strategic planning activities will result in a document, the document itself matters less than the process of collecting and analyzing input, and thoughtful discussion and debate.

3. The Evolution of Strategic Planning
For the past two or three decades, popular strategic formulations have focused on competitors rather than customers, i.e., succeed by gaining a competitive advantage with strong brand names (brand awareness), distribution strongholds (# of salespeople, distribution channels), promotional muscle, cost efficiencies, etc. This perspective became especially popular with Michael Porter’s 1980 Competitive Strategy, which primarily deals with how to deal with competition. Competitive strategy often implies a sense of warfare, and many modern formulations, such as by Ries and Trout, incorporate such concepts.
Customers
Competition
STRATEGY
Special Capabilities
External Environment
1950s Budget, corporate planning (rather than functional planning)
1960s Long Range Planning (objectives, forecasting)
1970s Portfolio Planning
1980s Generic Strategies (lower costs, differentiation)
1990s Quality (more creativity; learning and adapting)
2000s “Value Disciplines” (e.g., Treacy and Wiersema)
1) Operational Excellence 2) Customer Intimacy ) Product Leadership

4. Strategic Planning Failure

5. Planning, Implementation, Control
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.

6. Exhibit 1.3 Components of Strategy
-A strategy is a plan-
What are you planning? (Area)
What do you want to accomplish? (Goals)
What resources are available? (Constraints)
How can you get an edge? (Leverage a differential advantage)
How can the plan come together? (Parts fit)
Scope
Goals and objectives
Resource deployments
Identification of sustainable competitive advantage
Synergy
Examples:
Blackjack Strategies Interview Strategies

7. The Hierarchy of Strategies
Scope
The Hierarchy of Strategies
Resource Allocation
Markstrat Goals?

8. What is effective marketing strategy?
There are many success “metrics,” but what are the sources of competitive advantage?
SCAs of 248 Businesses
1 Reputation for Quality
2 Customer service/product support
3 Name recognition/high profile
4 Good management/staff
5 Low cost production
6 Financial resources
7 Customer orientation/research
8 Product-line breadth
9 Technical superiority
10 Base of satisfied customers
11 Segmentation/focus
12 Brand characteristic/differentiation
13 Continuing product innovation
14 Market share
15 Size/location of distribution
16 Lowprice/high value offering
17 Knowledge of business
18 Pioneer/early entrant in industry
19 Efficient, adaptable to customers
20 Effective sales force
21 Overall marketing skills
22 Shared vision/culture
23 Strategic goals
1 Leadership (120 pts.)
1.1 Organizational Leadership (70 pts.)
1.2 Social Responsibility (50 pts.)
2 Strategic Planning (85 pts.)
2.1 Strategy Development (40 pts.)
2.2 Strategy Deployment (45 pts.)
3 Customer and Market Focus (85 pts.)
3.1 Customer and Market Knowledge (40 pts.)
3.2 Customer Relationships and Satisfaction (45 pts.)
4 Measurement, Analysis, Knowledge Management (90 pts.)
4.1 Measurement and Analysis of Organizational Performance (45 pts.)
4.2 Information and Knowledge Management (45 pts.)
5 Human Resource Focus (85 pts.)
5.1 Work Systems (35 pts.)
5.2 Employee Learning and Motivation (25 pts.)
5.3 Employee Well-Being and Satisfaction (25 pts.)
6 Process Management (85 pts.)
6.1 Value Creation Procsses (50 pts.)
6.2 Support Processes (35 pts.)
7 Business Results (450 pts.)
7.1 Customer-Focused Results (75 pts.)
7.2 Product and Service Results (75 pts.)
7.3 Financial and Market Results (75 pts.)
7.4 Human Resource Results (75 pts.)
7.5 Organizational Effectiveness Results (75 pts.)
7.6 Governance and
Baldridge Awards

9. Exhibit 1.10 Contents of a Marketing Plan
Executive summary
Current situation and trends
Performance review
(for an existing good/service only)
Key issues
Objectives
Marketing strategy
Action plans
Projected profit-and-loss statement
Controls
Contingency plans
From Wikipedia
A Marketing Plan is a written document that details the actions necessary to achieve a specified marketing objective(s). It can be for a product or service, a brand, or a product line. A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use.