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Market-Driven Organizations
Displays a deep and enduring commitment
to the principle that the purpose of a
business is to attract and satisfy customers
at a profit.
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Market-Driven Organizations
 Market-Sensing
 Centered on customers.
 Take an outside-in view of strategy.
 Demonstrate an ability to sense market trends.
 Market monitoring is frequent and intensive.
 Customer-Linking
 Possess special skills for creating and managing
close customer relationships.
 Special attention is given to the choice of which.
customers to serve collaboratively.
 Develop
 The appropriate structural linkages.
 Information systems.
 Management processes.
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Dimensions of Market-Driven Management
This orientation is achieved
and sustained by making
appropriate moves along four
interlocking dimensions.
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CUSTOMER INTERFACE
CORE STRATEGY
STRATEGIC RESOURCES
VALUE NETWORK
Fulfillment & Support
Information & Insight
Relationship Dynamics
Pricing Structure
Business Mission
Product/Market Scope
Basis for Differentiation
Core Competencies
Strategic Assets
Core Processes
Suppliers
Partners
Coalitions
EFFICIENT / UNIQUE / FIT / PROFIT BOOSTERS
The major components of the business concept are tied
together by three important “bridge” elements: customer
benefits, configuration, and company boundaries.
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Core Strategy—Three Elements
1. The business mission describes the overall
objective of the strategy, sets a course of direction,
and defines a set of performance criteria that will be
used to measure progress.
2. Product/market scope defines where the firm
competes.
3. Basis for differentiation captures the essence of
how a firm competes differently than its rivals.
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Strategic Resources
1. Core competencies are the set of skills, systems, and
technologies that creates uniquely high value for
customers.
2. Strategic assets are the more tangible requirements
for advantage. Strategic assets are brands, customer
data, distribution coverage, patents.
3. Core processes are the methodologies and routines
that companies use to transform competencies, assets,
and other inputs into value for customers.
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Fulfillment
and support
Information
and insight
Customer Interface
Pricing
structure
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Relationship
dynamics
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Three Major Levels of Strategy
1. Corporate strategy defines the business in
which a company will compete.
2. Business-level strategy centers on how a
firm will compete in a given industry and will
position itself.
3. Functional strategy centers on how
resources allocated to the various functional
areas can be used more efficiently and
effectively.
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Marketing is perhaps best understood as
1. The customer-produce connection—linking the
customer to the focal offering.
2. The customer-service delivery connection—the
design and delivery actions involved in providing a
firm’s goods and services.
3. The customer-financial accountability connection.
Activities and processes that link customers to
financial outcomes.
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A Collective Action Perspective of the Strategy Formulation Process
This approach applies to
strategic decisions that
1. Cut across functional areas.
2. Involve issues related to the
organization’s long-term
objectives.
3. Involve the allocation of
resources.
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New products or services that require customers to dramatically change their
past behavior, with the promise of gaining equally-dramatic new value.
Discontinuous Innovation Strategies
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Cross-Functional Connections Explores the Interrelationships Between
Marketing and Four Business Functions
Formulating Business Marketing Strategy:
Vital Cross-Functional Connections
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