Figure 1'3: Marketing Approaches

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Chapter 1 Market-Led Strategic Management
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The marketing concept and market orientation

• Evolving definitions of marketing
• Marketing is the process of planning and
  executing the conception, pricing, planning and
  distribution of ideas, goods and services to
  create exchanges that satisfy individual and
  organizational objectives.

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Figure 1.1 Mutually Beneficial Exchanges
OFFERS Products, services etc
CUSTOMERS Goals
PROVIDERS Goals
Survival Financial Social Spiritual Ecological et
c
Solutions Benefits Altruism Well being etc
Customer Provider Satisfaction
Purchases, support RESPONSES
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Marketing Involves the following
Organizational Culture
Strategy
Tactics
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Market Orientation

• One or more departments engaging in activities
  geared toward developing an understanding of
  customers current and future needs and the
  factors affecting them
• Sharing of this understanding across departments
• The various departments engaging in activities
  designed to meet select customer needs

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Market orientation
Organization wide generation
Dissemination
Responsiveness to market intelligence
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Figure 1.2 Components and context of market
orientation
Customer Orientation
Market-led Organisational Culture
Competitor Orientation
Inter-functional Co-ordination
Focus on the Long Term
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Components and context of market orientation
Understanding customers well enough continuously
to create superior value for them
Customer Orientation
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Components and context of market orientation
Awareness of the short and long term
capabilities of competitors
Competitor Orientation
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Components and context of market orientation
Using all company resources to create value for
target customers
Interfunctional Co-ordination
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Components and context of market orientation
Linking employee and Managerial behavior to
customer satisfaction
Organizational Culture
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Components and context of market orientation
As the overriding business objective
Long term profit focus
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Figure 1.3 Marketing Approaches
Market Needs
Customer-led Marketing
Resource-based Marketing
Product Push Marketing
Organisational Capabilities
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Figure 1.4 Organisational Stakeholders
Customers
Shareholders
Distributors
Focal Organisation
Suppliers
Managers
Employees
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Organisational Stakeholders

• Shareholders
• Individuals with emotional and long-term personal
  ties to the business
• Individual
• Institutional
• Employees
• Their priorities are generally some combination
  of compensation

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Organisational Stakeholders

• Customers
• Are the ultimate source of shareholder value
• Suppliers and Distributors
• Suppliers reply on the firms they serve to ensure
  the achievement of their own goals.

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Marketing Fundamentals

• Principle 1 Focus on the customer
• Principle 2 Only compete in markets where you
  can
• establish a competitive
  advantage
• Principle 3 Customer do not buy products
• Principle 4 Marketing is too important to leave
  to the
• marketing department
• Principle 5 Markets are heterogeneous
• Principle 6 Markets and customers are
  constantly
• changing

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Marketing Fundamentals

• Principle 1 Focus on the customer
• What business are we in?
• What business could we be in?
• What business do we want to be in?
• What must be do to get into or consolidate in
  that business?

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Marketing Fundamentals

• Principle 2 Only compete in markets where you
  can establish a competitive advantage
• Choose where to compete and where to commit its
  resources
• Many factors will come into the choice of market,
  including how attractive the market appears to
  the firm

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Marketing Fundamentals

• Principle 3 Customer do not buy products
• They buy what the product can do for them
• Customers are less interested in the technical
  features of a product or service than in what
  benefits they get from buying

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Marketing Fundamentals

• Principle 4 Marketing is too important to leave
  to the marketing department
• It is increasingly the case that marketing is
  everyones job in the organization
• The actions of all can have an impact on the
  final customers and the satisfaction the customer
  derives.

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Marketing Fundamentals

• Principle 5 Markets are heterogeneous
• The most markets are mot homogeneous, but are
  made up of different individual customers,
  sub-markets or segments

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Marketing Fundamentals

• Principle 6 Markets and customers are
  constantly changing
• Markets are dynamic and virtually all products
  have a limited life that expires when a new or
  better way of satisfying the underlying want or
  need is found

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Figure 1.5 Marketing and performance outcomes
Marketing Resources
Market Performance
Assets
Market-Oriented Culture
Customer satisfaction loyalty
Financial Performance
Sales volume market share
Capabilities
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Figure 1.6 Product and process improvement
Continuous improvement through Kaizen
Step-change through innovation
Improvement in products and/or processes
Continuous improvement through Kaizen
Step-change through innovation
Continuous improvement through Kaizen
time
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Figure 1.7 The role of marketing in the
organisation
Identify and communicate customer wants and needs
throughout the organisation
Determine the competitive positioning to match
the needs of the customers with company
capabilities
Marshal all relevant organisational resources to
deliver customer satisfaction
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The role of marketing in the organisation
The first critical task of marketing is to
identify the requirements of customers and to
communicate them effectively throughout the
organization.
Identification of customer requirement
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The role of marketing in the organisation
Recognizing that markets are heterogeneous and
typically made up of various market segments
each having different requirement
Deciding on the competitive positioning to be
adopted
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The role of marketing in the organisation
The third key task of marketing is to marshal
all the relevant organizational resources to
plan and execute the delivery of customer
satisfaction
Implementing the marketing strategy