Transcript Marketing 504

Understanding
Market Orientation
What is Marketing?
What is Market-Driven?
What is marketing?
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Gathering, monitoring, analyzing information
– Environment
– Customers
– Competitors
Interacting with all areas of organization, sharing
information
Developing, implementing, and controlling strategic
marketing plan, based on information
Creating satisfying exchanges
External environment
Internal environment
Marketing
& Sales
Competition
Consultants
& Advisors
R&D
Consumers
Other
Organizations
Retailers &
Wholesalers
Other internal
information
sources
Marketing
Manager
Other
Publics
Suppliers
Production
Finance &
Accounting
What is Market Orientation?
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Superior ability to understand, attract,
and keep valuable customers.
Externally oriented culture
Capabilities in market sensing,
market relating, and anticipatory
strategic thinking
Adaptable and coherent organizational
configuration of culture, capabilities, and
processes
Elements of Market Orientation
Competitors
Customers
Culture
is
externally
oriented
Shared
Knowledge
Base
Configuration
Focus on superior
customer value
Coherence of structure
& systems
Capabilities
Adaptability
Market sensing
Market relating
Strategic thinking
Channels
Superior
Ability to
Understand,
Attract, and
Keep
Valuable
Customers
Collaborators
Advantages of Market Orientation
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Customer
Satisfaction &
Retention
Market-Based Strategy
Market Orientation
Why does market orientation lead
to greater profits?
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Cost and investment efficiency
Employee satisfaction
Price premium
Revenue growth
Competitive preemption
But….
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Have to be truly market driven!!
Superior ability to understand
markets
Sense emerging opportunities
Anticipate competitors’ moves
Make fact-based decisions
Superior ability to attract and keep customers
Deliver superior value
Encourage loyalty
Leverage market investments
Impediments to Being
Market Driven
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Being oblivious to market
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Becoming compelled by the market
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Feeling superior to the market
Market Driven Culture
Market-Driven Organization
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Self-Centered Organization
All decision start with the
customer and opportunities for
advantage
Quality is defined by customers
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We’ll sell to whoever will buy
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The best ideas come from living
with customers
Employees are customer
advocates
Customer knowledge is a
valuable asset and channels are
value adding partners
Customer loyalty is key to
profitability
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Quality is conformance to
internal standards
Customers don’t know what
they want
Customer relations are
problems for the marketing dept
Customer data are a control
mechanism and channels are
conduits
New accounts (conquests) are
what matters
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Market Driven Culture
Market-Driven Organization
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No sacred cows—cannibalize
yourself
Learn from mistakes
Market research is decision
insurance
Paranoia about competitors is
healthy
The behavior of competitors can
be anticipated and influenced
We know more than the
competitors
Self-Centered Organization
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Protect the existing revenue
stream
Avoid mistakes
Market research is a justification
tool
We can live with our
competitors
Competitors are unpredictable
If competition does it, it must be
good
Culture Dimensions
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Flexibility/spontaneity vs. control, order
stability
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Internal maintenance vs. external
positioning