How a Strategic Marketing BE Effective

8/3/2019 How a Strategic Marketing BE Effective

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Session: 1

Introductions and Course Orientation


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WELCOME TO

STRATEGIC MARKETING


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Market-driven strategy-role inbusiness

Process of becoming Market Oriented

Capabilities of market drivenorganizations

Creating value for customers

Initiatives & challenges of becomingMarket driven

Learning Objectives


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Market-Driven Strategy

Becomemarketoriented

Determine

distinctivecapabilities

Matchingcustomer

valuerequiremen

ts tocapabilities

Achieving

superiorperformance

Characteristics of Market-Driven Strategies

1. Become Market Oriented

2. Determine capabilities3. Matching customer value requirements

to capabilities4. Achieving Superior Performance


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Why pursue a Market Driven strategy ?

Blurring boundaries

Innovative business models

High pace of market change

Uncertainty of business environment

New forms of competition

Marketing Driven Strategy Pivotal role in Business


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Becoming Market Oriented

Process of becoming Market-Oriented:

A customer focus

Competitor intelligence

Coordination among business functions

Make changes in:

i. Culture,ii. Processes

iii. Interrelated actions are requirediv. including information acquisitionv. Sharing information in organizationvi. Inter-functional assessmentsvii. Shared diagnosisviii. Decision making

AND

TopManagement

Middlemanagement

Customer

Customers

Middlemanagement

TopManagement

Customerfocus

Competitorintelligence

Businessfunctions

Integration

Make Otherchanges

Customer


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Organizational

Capabilities

SkillsKnowledge

Functionalcoordination

Assets

Capabilities are Organizational processes which:

1. Enable firms to coordinate related activities2. To employ assets and3. Using skills & accumulated knowledge

Capabilities


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Identifying Distinctive Capabilities

A distinctive Capability offers1. Disproportionately higher contribution to customer value2. Enable delivery of customer value at lower cost

Criteria to evaluate Distinctive capabilities: Be superior to competition Difficult to copy Applicable to multiple competitive situations

Companies start assessments of theircurrent capabilities (competence)

Examples:1. Wapdas Distribution Network2. ?3. ?

Superior tocompetitors

Difficult to copy

Applicable in Multiplecompetitive situations


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Types of Capabilities

Outside-in processes (External emphasis) Market sensing Customer linking Channel bonding

Technology monitoring

Inside-out processes (Internal emphasis) Financial management Cost control Manufacturing

Technology development

Spanning Processes Customer order fulfillment Pricing Customer service delivery

Outside-in Inside-out

Spanning Processes


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Matching Capabilities to Value Opportunities

A Market oriented company identifies value opportunities by :1. Market sensing processes2. Shared Diagnosis processes3. Cross-functional decision making


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Creating Customer Value

Customer value trickles down as a result from a process of anchoringbusiness strategy with customer needs

Customers form value expectations and decide to purchase goods andservices

Providing Customer Value: Distinctive capabilities are used to deliver value to customer by:

Differentiating the product offer Offering lower prices, relative to competitors brands or Combination of both above

Value Initiatives: Analyzing customer needs and instilling customer-focused behavior

in frontline employees

Analyzing target markets and boosting service quality Others


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Becoming Market-DrivenThe process is characterized by three stages or steps:

Becoming market-oriented Indentifying and leveraging distinctive capabilities Matching Distinctive capabilities to customers value requirements

Market-oriented Distinctivecapabilities

Matchcapabilities

to customersvalue

requirements

Superior

CustomerValue


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Becoming Market-DrivenCharacteristics of becoming market driven

Market sensing and customer linking capabilitiesi. Effective market sensing processes that spread cross functionally in

organizations

ii. Information is collected and analyzed and shared cross sectionaliii. Information analysis defines the role of each department in beingmarket driven

Customer linking capabilitiesi. Helpful in preventing customer churnii. Can lead to stronger customer bondsiii. Can create a better customer feedback formal and informal

Aligning structures and processesi. Companies need to take customer value initiatives i.eii. Redesign or align current structure with customer value requirementsiii. Redesign or align current processes with customer value requirements


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Challenges of a new era for Strategic MarketingCharacteristics of becoming market driven

Escalating Globalizationi. Global marketplace is dynamic and complexii. Globalization affects the competitiveness of economies

iii. High risks of being outmaneuvered by rising globalization

Technology diversity and uncertaintyi. Rapid technological advancements are changing the basis of many

marketsii. Many new opportunities emergeiii. Many established markets are being sidelined by the emerging

technology

Ethical Behavior and social responsibility

i. Escalating need for a ethical behavior on the part of the managersii. Need for escalating transparencyiii. Emphasis on Corporate citizenship


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Re-cap

Escalating Globalizationi. Global marketplace is dynamic and complexii. Globalization affects the competitiveness of economiesiii. High risks of being outmaneuvered by rising globalization

Technology diversity and uncertaintyi. Rapid technological advancements are changing the basis of many

marketsii. Many new opportunities emergeiii. Many established markets are being sidelined by the emerging

technology

Ethical Behavior and social responsibility

i. Escalating need for a ethical behavior on the part of the managersii. Need for escalating transparencyiii. Emphasis on Corporate citizenship

Documents

How a Strategic Marketing BE Effective