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Chapter 1

Imperatives for Market-Driven Strategy


Presented by Audacious

Group Members
Name Roll

Shahidul Islam Riazul Karim Khan Ashim Kumar Dey Shafiqul Islam Shipon Kumer Das

04 016 034 058 108

Riazul Karim Khan 016

Market Driven Strategy


Market driven strategy provides a company wide

perspective, which mandates more effective integration of activities and processes that impact customer value.
All business strategy decisions should start with a clear

understanding of markets, customers, and competitors.

The market and the customers that form the market

should be the starting point in shaping business strategy.

Characteristics of a Market-Driven Strategy


Becoming MarketOrientation

Achieving Superior Performance

Determining Distinctive Capabilities

Customer Value/ Capabilities Match

Characteristics of Market-Driven Strategies


Becoming Market Oriented Customer is the focal point of the organization Commitment to continuous creation of superior customer value Superior skills in understanding and satisfying customers Requires involvement and support of the entire workforce Monitor rapidly changing customer needs and wants

Characteristics of Market-Driven Strategies


Customer Focus

What are the customers value requirements? Becoming customer oriented means finding out what are the customers want to satisfy their purchasing objectives
Competitive Intelligence

Understanding the competition as well as the customer, otherwise failure to identify and respond to competitive threats may lead to serious consequences for a company

Characteristics of Market-Driven Strategies


Cross-Functional Coordination

Guides the entire organization toward providing superiors customer value by removing the walls between business functions Performance Implications Market orientation leads to superior organizational performances by doing strategic analysis with a penetrating view of the market and competition.

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Determining Distinctive Capabilities


Capabilities are complex bundles of skills and accumulated knowledge, exercised through organizational processes, that enable firms to coordinate activities and make use of their assets.

Classifying capabilities
The outside- in process connect the organization to the

external environment, providing market feedback and forging external relationship.


The inside out process are the activities necessary to

satisfy customer value requirement (e.g., manufacturing/ operation).

External Emphasis

Classifying capabilities

Internal Emphasis

Outside-In Processes Spanning Processes


Market sensing Customer linking Channel bonding Technology monitoring Customer order fulfillment Pricing Purchasing Customer service delivery New product/service development Strategy development

Inside-Out Processes
Financial management Cost control Technology development Integrated logistics Manufacturing/ transformation processes Human resources management Environment health and safety

CREATING VALUE FOR CUSTOMERS


Customer Value
Value is the expectation of the customers.

Value for buyers consists of the benefits less the costs resulting from the purchase of products.

Providing value to customers


organization's distinctive capabilities are used to deliver

value by differentiating the product offer, offering lower price relative to competitors brand, or a combination of both

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Becoming Market driven


Market Sensing Capabilities
Effective processes for learning about markets Sensing: Collected information needs to be

shared across functions and interpreted to determine proper actions.

Customer Linking Capabilities


Create and maintain close customer relationships

Becoming Market driven


Aligning Structure and Processes Potential change of organizational design Improve existing processes Process redesign Cross-functional coordination and involvement Primary targets for reengineering: Sales and marketing, customer relations, order fulfillment, and distribution

Corporate Business and Marketing Strategy


Corporate Strategy Business and Marketing Strategy

Deciding the scope and

It deals with how, when

Purpose of the business Its objective The initiatives and resources necessary to achieve the objective

and where to compete Guided by the decision of the top management

Corporate Business and Marketing Strategy


This is a two way communication
Corporate Strategy

Strategic direction resource constrains

Market Knowledge Opportunity Threat

Business & Marketing Strategy

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Components of Corporate Strategy


The aim to come closer Challenges: New types of

to the Customer Counter Competition Threat Strengthen Competitive advantages

competition Political and economic up heal Dominance of customer Increasing Marketing complexity

Corporate Strategy Framework


Scope Mission and Strategic Intent

Corporate objective

Strategy

Resource Allocation

Synergies

Corporate Strategy Framework


Deciding corporate vision Defines what the corporation is and what it does and provides important guidelines for managing and improving the corporation.
Objectives objectives need to be set so that the performance of the enterprise can be gauged. It may be established in : marketing,, innovation, resources, productivity, social responsibility and finance.

Corporate Strategy Framework


Resources It is important to place a companys strategic focus on its resources- assets, skills and capabilities.

Business compositions Defining the composition of the business provides direction for both corporate and marketing strategy design.

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Deciding corporate vision


Structure, system and processes

Consider how the organization controls and coordinates the activities of its business units and staff functions.

Business and marketing strategy


Many strategy guidelines are offered by consultants,

executives and academics to guide business strategy formulation. This strategy paradigms propose a range of actions including reengineering the corporation, total quality management, building distinctive competencies, reinventing the organization, supply chain strategy and strategic partnering.

Marketing Strategy Process


Markets, Segments And customer Value Implementing and Managing Market-Driven Strategies Market-Driven Program Development Designing Market-Driven Strategies

Challenges of new era for Strategic Marketing


For new era strategic marketer has to face some challenges. Most important challenges are :

Escalating Globalization Technology, Diversity & Uncertainty The Web Ethical behavior & Corporate Social Responsibility

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