Title: Understanding Market Orientation
1Understanding Market Orientation
- What is Marketing?
- What is Market-Driven?
2What is marketing?
- 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
-
3External environment
Internal environment
Marketing Sales
Competition
R D
Consultants Advisors
Consumers
Marketing Manager
Other internal information sources
Other Organizations
Retailers Wholesalers
Finance Accounting
Other Publics
Production
Suppliers
4What is Market Orientation?
- 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
5Elements of Market Orientation
Competitors
Customers
Culture is externally oriented
Superior Ability to Understand, Attract, and Keep
Valuable Customers
Configuration Focus on superior customer
value Coherence of structure
systems Adaptability
Shared Knowledge Base
Capabilities Market sensing Market
relating Strategic thinking
Channels
Collaborators
6Advantages of Market Orientation
Customer Satisfaction Retention
Market-Based Strategy
Market Orientation
7Why does market orientation lead to greater
profits?
- Cost and investment efficiency
- Employee satisfaction
- Price premium
- Revenue growth
- Competitive preemption
8But.
- 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
9Impediments to Being Market Driven
- Being oblivious to market
- Becoming compelled by the market
- Feeling superior to the market
10Market Driven Culture
Market-Driven Organization
Self-Centered Organization
- All decision start with the customer and
opportunities for advantage - Quality is defined by customers
- 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
- Well sell to whoever will buy
- Quality is conformance to internal standards
- Customers dont 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
11Market Driven Culture
Market-Driven Organization
Self-Centered Organization
- No sacred cowscannibalize 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
- 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
12Culture Dimensions
- Flexibility/spontaneity vs. control, order
stability - Internal maintenance vs. external positioning