1. 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

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

3. 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 R&D Budget now focused on solving business problems rather than improving hardware Reorganized internallyinternally

4. 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.

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

6. 1-6

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

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

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

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

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

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

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

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

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

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

17. 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?

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

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

20. 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)