An explanation as to why it is important for a firm to have a marketing perspective on strategy.

1. Outside-In Versus
Inside-Out Strategy
Adopting a Market Orientation
William Baker Consulting
Marketing Strategy
Communication Strategy
Branding
Advertising
Award Winning Author, Professor and Consultant
619-402-3990, wbaker@uakron.edu
Google Scholar Page: https://scholar.google.com/citations?
hl=en&user=If0w9hoAAAAJ

2. My Brief Definition of Marketing
The process of maximizing customer commitment for firms’
offerings (usually at a profit).
•This is done through Innovation, Branding and Relationships
•It is implemented through the marketing mix: product, pricing,
promotion and distribution

3. Market Orientation
Inside-Out Thinking Outside-In Thinking
Profits are gained through an
efficient use of resources and
capabilities
Profits are gained through
implementing superior value
propositions
We seek to confront our
competitors on all that they do
We seek to compete in spaces
without direct competitors
Superior quality is defined by
internal standards
Superior quality is defined by
customers
Expanding the customer base is
the key to profitability
Customer loyalty is the key to
profitability

4. Outside-In Thinking
Less About You More About Your Customer
Grow our North American market
share in the medical device market
Alleviate pain, restore health and
extend life (Medtronic)
Source superior coffee from the
world’s best global production
regions
To inspire and nurture the human
spirit – one person, one cup and
one neighborhood at a time
(Starbucks)
Grow our occupancy rate by 10%
over 2 years
Ladies and Gentlemen serving
Ladies and Gentlemen (Ritz-Carlton)

5. The Consequences of Inside-Out
Thinking is IgnoringExternal Events
“There are not enough Indians in the world to
defeat the Seventh Cavalry!”
O George Armstrong Custer

6. The Consequences of Inside-Out
Thinking is Ignoring External Events
O “Who the hell wants to hear actors talk?”
O H. M. Warner, Warner Brothers, 1927

7. The Consequences of Inside-Out
Thinking is Ignoring External Events
O “…We have a perfect record over the last 40
years in predicting where we will use military
force next. We’ve never once gotten it right.”
O Former Secretary of Defense, Robert Gates,
PBS, January 14, 2014

8. The Consequences of Inside-Out
Thinking is Ignoring External Events
O 44% of lawyers would NOT recommend that at young
person pursue a career in law
O 83% of mergers and acquisitions failed to create any
value for shareholders
O 60% of executives said that bad decisions are as
common as good ones by executives in their
company

10. A Firm’s Strategic Marketing Orientation and
Company Performance
A firm’s market orientation refers to making customer satisfaction an
organizing principle of the firm.
Develop and innovate products through an advanced understanding of:
(1) Customers (e.g., likes and dislikes, satisfaction, perceptions, etc.)
(2) The environmental factors that influence customers (e.g., technology, competition, the
economy, socio-cultural trends, etc.)

11. Market
Information
Responsiveness
Market
Information
Dissemination
Market
Information
Generation
Market
Orientation
The Synergy between the
Marketing Concept and a
Learning Culture

12. Flawed View of the World?
The effectiveness of a strong market orientation is
compromised by corporate belief systems that are flawed
or obsolete because they have not been updated to
correspond to the market.
Obsolete beliefs within the organization can constrain action:
O We have only one key competitor.
O Our customers value ‘low price’ over ‘superior customer
service’
O Our customers’ value benefit ‘X’ over Benefit ‘Y’.

13. Commitment
to Learning
Shared Vision
Open-
Mindedness
Learning
Orientation
The Synergy between the
Marketing Concept and a
Learning Culture

14. Market
Orientation
Learning
Orientation
▲ Market Share

15. Interaction with Relative Market Share
▲ MS
Weak MO Strong MO
Strong
LO
Strong LO

16. Inside -Out Outside In
Weak Market Orientation Strong Market Orientation
Push products into Market Fit products into Market
Emphasis on Efficiency Emphasis on Customer
Satisfaction
Attack the Competition Out Flank the Competition
Expand the Customer Base Maximize Customer Loyalty
SUMMARY