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Designed for marketing undergraduates or the first part of an MBA, this book traces the evolution of marketing strategy over 30 years from systems that stressed competition to the present focus on the customer. It argues that business strategy must be customer-driven to be successful.

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• Chapter 1 Marketing''s Influence on Strategic Thinkingconsumer Orientation
• The Marketing Concept
• Criticisms of the Marketing Concept
• Should You Ignore Your Customers?
• Technology-Driven Companies
• Faith, Instinct, and Determination
• Action Versus Analysis Paralysis
• Planning Versus Doing
• Strategy''s Response
• In Defense of the Marketing Concept
• Production-Oriented Firms
• A Competitor Focusdual Consumer and Competitor Orientations Toward Markets
• Mini-Case: GatoradeMini-Case: Diet Rite Cola Versus Coke and Diet Pepsi
• The Power of External Events
• Technological ChangeDemographic ShiftsSocial ChangesGovernment Deregulation
• Special Resourcesmarketing as a Boundary-Spanning Function
• Notes
• Chapter 2 A Brief History of Marketing Strategy
• Definition and Scope of Marketing Strategy
• Milestones in ihe History of Marketing Strategy
• 1950s: Budgeting and the Search for Overall Strategy
• 1960s: The Decade of Long-Range Planning
• The Decline of Long-Range Planning
• 1970s: The Decade of Portfolio Planning
• The Decline of Formula Planning
• 1980s: Porter''s Generic Strategies
• 1990s: Restructuring, Customer Satisfaction, and Speed as Strategy
• Current Trends in Marketing Strategy
• 1 Strategic Thinking: From Elitism to Egalitarianism
• 2 From Calculation to Creativity
• 3 From Precision in Planning to Learning and Adaptation
• Connections with the Past
• Notes
• Chapter 3 Assessing Competitive Intensity
• Economic Models of Competition
• The Assumptions of Perfect Competition
• Monopoly Power Is RareTypes of Imperfect Competition
• Factors Affecting Competitive Intensity
• 1 Barriers to Entry
• 2 Intensity of Rivalry
• 3 Competition from Substitutes
• 4 Bargaining Power of Customers
• 5 Bargaining Power of Suppliers
• Uses of Competitive Analysis
• 1 Fitting the Current Environment
• 2 Anticipating Market Changes
• 3 Picking a Market to Enter
• 4 Reconfiguring the Rules of Competition
• 5 Protecting the Status Quo
• Notes
• Chapter 4 Competing on Costs: The Rise and Fall of Experience Effects and the Growth-Share Matrix
• Experience Effects
• Experience Effects Versus Economies of Scale
• Experience Effects Versus Learning Effects
• Sources of Experience Effects
• The Experience Curve
• The Case of Pocket Calculators
• The Relationship Between Costs and Prices
• The Merits of Market Share and Market Growth
• The Growth-Share Matrix
• The Source and Use of Funds
• Strategic Prescriptions of the Growth-Share Matrix
• The Path to SuccessThree Paths to Failure
• Criticisms of the Growth-Share Matrix
• 1 The Success of Low-Share Firms
• 2 The Futility of Market Share Gained
• 3 Success of Low-Growth Markets
• 4 Should Dogs Be Divested?
• 5 Harvesting Bread-and-Butter Products
• 6 Importance of Business "Relatedness"
• 7 Pursuing Experience Effects Hinders Innovation
• 8 The Confounding Effects of Shared Experience
• 9 Lower Prices Versus Market Share: Which Causes Which?
• 10 Internal Cash Flow
• 11 A Mechanical Response Instead of a Creative Solution
• 12 No Consideration of Product Differentiation
• 13 One Way to Win: An Obsession with Low Costs
• The Return of Cost Competitiveness
• Notes
• Chapter 5 Generic Strategiesporter''s Three Generic Strategies
• Low-Cost Low-Price SellingProduct Differentiation
• Market Segmentation
• Stuck in the Middle
• Treacy and Wierseman''s Three Value Disciplines
• Operational Excellence
• Customer Intimacy
• Product Leadership
• The Relationship Between Strategic Choice and Target Market
• Should Firms Pursue Only One Generic Strategy?Notes
• Chapter 6 Competing On Priceconditions that Favor Selling on Price
• When the "Gouge Gap" Is Too Wide
• Mini-Case: The Battle Between National Brands and Private Labels
• When There is a Shift in the Point of Differentiation
• Mini-Case: Hallmark Cards -- A Shift In Buying Behavior Leads to a Diminution of Competitive Advantage
• When Products Become Commodities
• When Markets Are Deregulated
• When the Low-Price Formula Can Be Applied in a New Arena
• Mini-Case: Staples -- The Office-Supply Superstore
• How to Compete on Price
• Ruthless Cost Cuffing Through Reengineering
• Stressing Equal Quality at Lower Prices
• Specialization and Lower Prices
• Copying and Cutting Prices
• Letting Prices Dictate Costs
• The Effects of Low-Cost Competition
• Notes
• Chapter 7 Differentiation Strategies Basis of Differentiation
• 1 Superior Performance
• 2 Superior Design and StylingMini-Case: Oakley Sunglasses
• 3 A Product for Every Purpose
• 4 "On-the-Edge" Product Innovations
• 5 Luxury Goods and Services
• 6 Popular Mass-Market Brand Names
• 7 Exceptional Service
• 8 Greater Reliability and Durability
• 9 Convenience
• 10 Unique Distribution Channels
• Price as a Point of Differentiation
• The History of Product Differentiation
• Monopolistic CompetitionConsumers'' Preference for Variety
• Real Versus Contrived Differences
• What to Differentiate
• Core Product Features
• Incidental Product Features
• Product Intangibles
• Accounting for Intangibles
• Requirements for Successful Differentiation
• Support Premium Prices with Sufficient Marketing
• Keep the Gouge Gap Reasonable
• Embrace Innovation
• Keep Copycats at Bay Protect Against the "Squeeze Play"
• Notes
• Chapter 8 Segmentation Strategiesthe Difference between Differentiation and Segmentation
• The Argument for Alternative Strategies
• Claims for Complementary Strategies
• Reconciling the Relationship Between Differentiation and Segmentation
• Segmentation Strategies
• 1 Go for the Largest Segment
• 2 Sell Multiple Products in Multiple Segments
• 3 Sell a Single Product to All (or Most) Segments
• 4 Focus on a Small Segment
• 5 Create a New Segment
• 6 Break Segments Into Even Finer Subsegments
• The Basis of Segmentation
• A Regional Focus
• Demographics
• Product Usage
• Quality Niches
• The Individual Consumer
• Market Research and Segmentation
• Questions about Segmentation
• Are Segments Created or Discovered?
• To What Extent Do Segments Overlap?
• Are Segments Stable?
• Is Countersegmentation a Viable Option?
• Is Segmentation for Small Firms Only?
• Notes
• Chapter 9 Competitive Dynamicscompetition Between Price Points
• Venical Differentiation112
• 1 Drawing Customers Up-Market with Higher QualityMini-Case: Gillette''s Sensor Razor Versus the Low-Priced Disposables
• 2 Luring Customers Down-Market with Lower Prices
• 3 Pushing Products Up-Market
• 4 Pushing Products Down-MarketMini-Case: The American Express CardCollisions in Vertically Integrated MarketsIntensity of Rivalry in Venically Differentiated Markets
• Increasing Product Valuecompetition Between Differentiators
• Horizontal DifferentiationShifting Points of Differentiation
• Mini-Case: Nike Versus Reebok
• Competition Between Low-Cost Producers
• A Succession of Low-Cost Producers
• Mini-Case: Microwave Ovens -- A Succession of Low-Cost Producers
• Price Shifting
• Everyday Low Prices Versus High-Low Promotional Pricing
• Competition Between Segmenters and Mass Marketers
• When a Segment Grows Larger and More Attractive
• Mini-Case: Brian Maxwell''s PowerBars
• When Segmenters Steal Share from Market Leaders
• Mini-Case: Specialty Coffees Versus Folgers and Maxwell House
• Mini-Case: Microbreweries Versus Anheuser-Busch and Miller
• Within-Segment Competition
• Notes
• Chapter 10 Market-Share Strategiesgaining Market Share
• When to Gain Share
• How to Gain Share
• Holding Share
• How to Hold Share
• Harvesting Strategies
• Sustained HarvestingSevere Harvesting
• How to Harvest
• Abandonment
• Poor Market Position
• A Poor Fit with the Firm''s Other Products
• Notes
• Chapter 11 The Evolution of Products, Markets, and New Technologiestypes of Innovations
• Incremental Innovations
• New-to-the-World Innovations
• Theories of Product EV

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CHOICE Review

Schnaars (Baruch College of the City University of New York; author of Megamistakes: Forecasting and the Myth of Rapid Technological Change, 1989) has produced a well-written book stressing that business strategy must be customer-driven to be successful. He begins by explaining marketing's influence on business strategy and then gives a brief history of marketing strategy, followed by a very adequate discussion of the Boston Consulting Group's growth share matrix, M. Porter's three generic strategies, the standardization-customization debate within a global perspective, the ongoing empirical study, PIMS (profit impact of market strategies) and product life cycle (product and market evolution). Other subjects covered include market share, assessing competition, product differentiation, market segmentation, quality, and speed (shorter cycles) as strategy. The book concludes with a discussion of long-term customer satisfaction. End-of-chapter references are adequate, and graphics are uncluttered and clearly presented. The style and organization of the material make the volume extremely easy to follow and understand. Recommended for upper-division and graduate students and business managers. -J. J. Bardsley, Pembroke State University