 Marketing Management, 4/e Harper W Boyd
Orville C Walker, Jr
John W Mullins
Jean-Claude Larreche
Market-Oriented Perspectives Underlie Successful Corporate and Business Strategies
Chapter Overview- Marketing perspectives lie at the heart of strategic decision making, whether at the corporate, business-unit, or product-market levels. All managers who aspire to general management roles need marketing concepts and tools in their repertoire.
- Market-oriented firms—those that plan and coordinate company activities around the primary goal of satisfying customer needs—tend to outperform other firms on a variety of dimensions, including sales growth, return on assets, and new product success.
- Unethical behaviour by a firm’s employees can damage the trust between a firm and its suppliers and customers, thereby disrupting the development of long-term relationships and reducing sales and profits over time.
- The four major paths to corporate growth—market penetration, market development, product development, and diversification strategies—imply differences in a firm’s strategic scope, require different competencies and marketing actions, and involve different types and amounts of risk. Decisions about which path(s) to pursue should consider all of these factors.
- The ultimate goal in formulating business-unit strategies is to establish a basis for a sustainable competitive advantage that provides superior value to customers. Doing so requires the development of resources—often marketing resources, such as brand names, marketing information systems and databases, long-term customer relationships, and so on—that other firms do not have and that are hard to acquire.
- Successful new firm formation typically requires a competitive strategy that delivers superior value to a narrowly defined target segment in a way that either avoids direct confrontation with established competitors or is difficult for them to emulate. Therefore, market sensing and analysis, market segmentation and targeting, and market positioning skills are usually crucial in helping new firms surmount the long odds against survival.
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