Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Chaudhry Muhammad Nadeem Faisal Cell: B- Url:

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Designing and Managing Marketing Strategy Market Situation analysis Implementing and Designing Managing Marketing Marketing Strategies Strategies Marketing Program Development Source: Victoria L. Crittenden, “ Strategic Marketing management ”, McGraw-Hill, NY,2002, p,7.

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Market Driven Strategy: Market-Driven Strategy is very essential in formulating business strategy. Here, the approach used is always market-oriented and customer-oriented. In short Guided by market trends and customer need instead of firms productive capacity or current product. The underlying logic is the market and the customer that form the market should be the starting point in business strategy formulation. “Considerable Progress has been made in identifying market-driven business, understanding what they do, and measuring the bottom-line subsequences of their orientation to the market” Market Driven Strategy

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Market Driven Strategy Becoming Market Oriented Achieving Determining Superior Distinctive Value Capabilities Marketing Customer Value Requirement To capabilities D Cravens, N Piercy, “Strategic Marketing”, 8 th edition, McGraw Hill, 2005, p,2.

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Becoming Market Oriented: The focus on customer need and wants through own product. “A business is market-oriented when its culture is systematically and entirely committed to the continuous creation of superior customer value.” Specifically, this entails collecting and coordinating information on customers, competitors, and other significant market influencers (Stakeholders, suppliers) and superior organizational skills. It demand the ethical behavior within the organization and with customer, supplier and stakeholders. It also require the involvement of entire framework by monitoring the rapidly changes in customer need an wants with (by improving the product ) innovation to satisfy the customer in a efficient way. Market Driven Strategy

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Market Orientation Customer Information Shared Diagnosis and Competitor Coordinated Superior Information Action Customer Value Other Market Information Source: Stanley F. Stater, “Market Orientation, customer value and superior performance”, Business Horizons, March/April 1994, p,22-27, at P,23.

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Characteristics of Market Oriented: A market-oriented organization continuously gathers information about the customers, competitor and market; view the information form total business prospective decide who to deliver superior customer value and take action to provide value to customer. It requires  customer focus.  competitor intelligence.  cross functional corporation and involvement. Market Driven Strategy

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 1 Customer Focus an organizational orientation toward satisfying the needs of potential and actual customers. Customer focus is considered to be one of the keys to business success. Achieving customer focus involves ensuring that the whole organization, and not just frontline service staff, puts its customers first. All activities, from the planning of a new product to its production, marketing, and after-sales care, should be built around the customer. Every department and every employee should share the same customer-focused vision. This can be aided by practicing good customer relationship management and maintaining a customer relations program. Market Driven Strategy

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 2 Competitor Intelligence: Which competitor, and what technology and wither target customer perceive the them as alternative satisfier. In short, CI is the purposeful and coordinated monitoring of your competitor(s), wherever and whoever they may be, within a specific marketplace... Your "competitors" are those firms which you consider rivals in business, and with whom you compete for market share 3 Cross Functional Coordination: Market-oriented companies are effective in getting all business function working together to provide superior customer values. Marketing, R&D, Finance all department in team work guide the organization to provide the superior customer values. 4 Performance Implication: Companies that are market-oriented begin strategic analysis with penetrating view of market and competition. Market Driven Strategy

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Becoming Market-Oriented Organization:  Superior Customer Values ??????????????????????????  Information Acquisition the evaluation of market and customer wither to buy its product and services, It requires the proactive information gathering and analysis, with an effective & systematic approach to gather the relevant information.  Cross-Functional Assessment Getting the Peoples form different function to share the information about the market & work together to develop an innovative product.  Shared Diagnosis & Action  Moving beyond the information gethering & analysis to decide what action take to provide the superior customer value Market Driven Strategy

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Distinctive Capabilities: D-capabilities are the vital part of market-Driven Strategy, Capabilities (competencies), complex bundle of skills, accumulated knowledge exercised though organizational processes, that enable the firm Coordinate the activities activities and make use of their assists. Competencies: means competitive advantage that enable the firm to introduce an array of new product and services Identify the Distinctive Capabilities. During Marketing strategies design the organizational distinctive capabilities are very important, these enable the organization in the new market, provide significant value to customer and create market entry barriers to the potential competitor. As HP is leader in in-jet printer, but with providing ink-jet fax through strategic alliance with Japanese partner, which contributed a distinctive capabilities in the fax technology. Market Driven Strategy

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Distinctive Capabilities Offer high contribution to superior customer value with cost effective Applicable to Superior to Multiple the Competitive competition Situation Difficult to Duplicate Desirable Capabilities D Cravens, N Piercy, “Strategic Marketing”, 8 th edition, McGraw Hill, 2005, p,8. Desirable Capabilities

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Type of Distinctive Capabilities Classifying the organizational capabilities is a useful distinctive capabilities. The outside-in connect to the external environment provide the feedback and relationship while the inside-out are the activities to satisfy the customer value requirements. This processes view of capabilities highlight the interrelated nature of organization processes and points to several important issues  The market driven organization have clear external focus  Capabilities typically span several business function, involving terms of peoples  Processes need to be clearly defined  Information should be share with all processes participants  Processes are interconnected to other and management need to coordinate the linkage. Market Driven Strategy

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Type of Distinctive Capabilities External Internal Emphasis Emphasis Marketing SensingCustomer Order fulfillmentFinancial Management Customer LinkagePricing Cost Control Channel BondingPurchasingTechnology Development Technology MonitoringCustomer Service DeliveryIntegrated Logistics New Product/Service developmentManufacturing / Transformation Strategy developmentProcesses Human Resources Management Environmental Health and Safety Types of Capabilities D Cravens, N Piercy, “Strategic Marketing”, 8 th edition, McGraw Hill, 2005, p,9. Outside-in Processes Inside-Out Processes Spanning Processes

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Value & capabilities Value for buyer consists benefits and costs resulting from the purchase and sue of products. A company use its market sensing processes, shared diagnosis and cross functional decision making to identify and take advantages of superior value opportunities. Management must determine where and how it can offer superior value, directing these capabilities to a customer group Market Driven Strategy

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Boundaries of Strategic Marketing : The word strategy is ubiquitous in common language. It is use not only in conjunction with business as general and marketing as particular. It is associated with politics, military action and sports as well. Market Driven Strategy

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 The core Marketing Concepts:  Need, wants and demand  Target markets, positioning and segmentation  Offering and brands  Value and satisfaction  Marketing channels  Supply chain  Competition  Marketing Environment Market Driven Strategy

Blekinge Institute of Technology SE Karlskrona STRATEGIC MARKETING MANAGEMENT CHAPTER -1 Segmentation, Targeting and Positioning Market Segments Market Targets Positioning Strategy for Each Targets Marketing Program For Each Target Source: Victoria L. Crittenden, “ Strategic Marketing management ”, McGraw-Hill, NY,2002, p,10. Product Market AC B D AD