8/6/2019 STRATEGIES FOR CHAOTIC MARKETS

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ANNOTAT IONS

B y R am y Khodeir

CEO ,A IM Cons ult in g

Marketing S trategies in Chaotic M arketsFO R T HE P AS T FE W Y EA RS , W E H AV E B EE N FA CIN G A TU RBU LE NT E NV IR ON ME NT. TH E W OR LD A RO UN D U S IS

C HA NG IN G R AP ID LY , A S ER IE S O F H EA DU NE S A DD RE SS IN G D IF FE RE NT M A NA G EM E NT A ND S TR AT EG IC D IR EC TIO N S

S UC H A S C RIS IS M AN AG EM EN T, C HA NG E M AN AG EM EN T A ND C HA OS M AN AG EM EN T A RE SE EN EV ER Y D AY . H OW E-

V ER , T H ER E IS N O C LE AR G UID AN CE F OR T HE C ON CE RN ED E XE CU TIV E W HO IS FA CE D W IT H T HE C HA LLE NG E O F

D IR EC TIN G A ND L EA DIN G T HE O RG AN IZ AT IO N , A ND A CH IE VIN G H IS /H ER G O AL S.

Marketing managers are not far behind. They are

even more disturbed with such chaotic market-

places and business environment than any other

function in the organization. They are challenged

to instantly adapt their target based on customer needs in

response to the changing economic environment or conditions.

In such times, organizations are in great need of talented and

manager during a chaotic phase in the marketplace.

G e t R e al :

The first step to adapt the marketing proposition for the

new environment is to get realistic about the marketplace facts..

the target customers' requirements and probable adapting tech-

niques such as spending less on certain items or shifting spend-

skilled marketers with sound and fitting strategies, and the ing habits and priorities. To survive this era managers need

nerve to execute and reflect external environmental changes on to acquire different interpersonal skills such as the ability to

internal policies and strategies. innovate, to anticipate (not forecast through statistics models).

This article is an attempt to structure the actions of a reliable and have the leadership skills to sustain management buy-in for

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8/6/2019 STRATEGIES FOR CHAOTIC MARKETS

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I d en t if y y o u r b e s t f it :

The role of management should be and has always been to

identify the right strategies for the business. Hence, they are

supposed to develop such strategies in light of their organiza-

tional capabilities and what is required and demanded by the

market. Cost cutting or downsizing may not be the right deci-

sion and is always not a strategy for a chaotic marketplace.

This is more like using a pain killer to treat a symptom without

treating the cause, where one may feel better for a short while a guarantee for sound implementation. Therefore, it is always

face a different marketplace. tive manager should consider all the risks, flaws and options to

One of the most effective tactics to kill a good idea is to achieve a revised objective that could be achieved in a chaotic

instill fear in the minds of those who need to approve it. A com- environment, and also build the right approach to achieve them.

mon fear toolkit is to use the phrase, "that proposal is somehow There are many reasons why an idea might fail, and exploring

against our core values and will erode the spirit and foundation them will help achieve the most frtting approach for the firm,

of the company, or this idea is not abiding with the policy ...etc."

Amazingly, core values and policies were initially aimed at con- Ge t p a s si o na t e:

a new and changing approach. To be an active member in the

new environment, the manager should talk to customers, probe

with distributors and use social networks. This will help shortlist

the initiatives that may save the business.

U n d er st an d w h a t c h ao s m e a ns :

We often misinterpret chaos as "crises, change," and "down

turns." A chaotic environment is one where the consistent

relationships between its different variables do not behave the

way we understand. Or even when these relationships disap-

pear totally, like for example, if there is a consistent relation-

ship between price and consumption habits like when the price

drops more people will buy. In a chaotic environment, though

one may decide to drop the price, it does not encourage people

to buy. Besides, in a chaotic environment, a manager drives

his business to achieve some business objectives, while in a

crises management a manager is only supposed to minimize

the losses caused by an external and unexpected situation.

but health gets worse. Instead a visionary, innovative manager

should know how to formulate the most effective strategy to

trolling the business environment and not killing it. Therefore,

in a chaotic environment, there should be more flexibility. If

this kind of accusation is aimed at one's idea, one should resist

becoming defensive. Instead, one should acknowledge that the

company values are important and explain specifically how

one's idea is in line with what the company stands for. After all,

we need a business that survives.

F ac e t h e w h y-n ot g am e :

Any new strategy will face the challenge of convincing

all stakeholders within the organization to get their buy-in as

required to learn how to get one's idea passed internally before

attempting to execute it externally in the marketplace. An effec-

Passion is contagious, and, if expressed and practiced, will

pass on to everyone in the team and reflect on the target cus-

tomers as well. The manager should try to persuade others by

sharing his/her enthusiasm. The team would also need to feel

it as a sanctuary for its external, uncertain and unstable envi-

ronment because it concerns the team as well. ,;._

AIM Consulting, Applied Innovation Management is specialized in Srra-

tegy and Innovation Management.

Address: Building 17, Street 216, Deqla, Maadi, Cairo, Egypt.

Website: www.aimegypt.com Tel: +202 2521 1010

Email: rkhodeir@aimegypt.com

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