Marketing Strategy Notes for Cravens/Piercy Book

Chapters 1-5

Chapter 1- Market Driven Strategy

Know the what and why on all of these:

Market driven Strategy = the market and the customers that form the market should be the starting point in business strategy formulation.

See page 3.

What does this mean for the auto business, a restaurant, a college or university, what would they do?

Related topics foundational for a market driven strategy:

Marketing Concept or Orientation – says that the key to success in business is to identify and satisfy needs and wants of the buyer. The customer is king.

This contrast to the production orientation/concept which focuses on how to make the product at low cost, and the selling concept/orientation which focuses on promoting what you want to sell.

In the production and selling orientations the company makes what it wants to make and tries to get the consumer to buy it. With the marketing orientation the company first figures out what people want to buy, then makes it, and then tells them about it.

Market Oriented/ Market Orientation – see page 4.
Means:
Customer is focal point of company’s total operations Customer Focus Cross Functional Coordination Competitor Intelligence Result – superior performance

Creating Value – must deliver benefits in excess of costs (value), the greater the excess the better. (Auto and college as examples)

Note that we can’t do all things for all people:

Thus: We use Segmentation and target marketing based on core competencies/distinctive capabilities

Basically what we want to do is identify and target those markets and segments of markets where our /competencies/capabilities offer the most benefit compared to competition

Desired distinctive capabilities will be applicable to multiple competitive situations, difficult to