1. Understanding Market Orientation
What is Marketing?
What is Market-Driven?

2. “The business enterprise has only two basic functions — marketing and innovation.”
Peter Drucker

3. “Marketing today is not a function; it’s a way of doing business.”
Regis McKenna

4. What 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

5. External environment Internal environment
Marketing
& Sales
Competition
Consultants
& Advisors
R & D
Consumers
Marketing
Manager
Other internal
information
sources
Other
Organizations
Retailers &
Wholesalers
Finance &
Accounting
Other
Publics
Production
Suppliers

6. What 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

7. Elements of Market Orientation
Customers
Competitors
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

8. Advantages of Market Orientation
$ $
Customer
Satisfaction &
Retention
Market-Based Strategy
Market Orientation

9. Why does market orientation lead to greater profits?
Cost and investment efficiency
Employee satisfaction
Price premium
Revenue growth
Competitive preemption

10. But…. 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

11. Impediments to Being Market Driven
Being oblivious to market
Becoming compelled by the market
Feeling superior to the market

12. Market 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
We’ll sell to whoever will buy
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

13. Market Driven Culture Market-Driven Organization
Self-Centered Organization
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
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

14. Culture Dimensions
Flexibility/spontaneity vs. control, order stability
Internal maintenance vs. external positioning