1. Imperatives for Market-Driven Strategy

2. Markets and Competitive Space

3. Strategic Market Segmentation

4. Strategic Customer Relationship Management

5. Capabilities for Learning about Customers and Markets

6. Market Targeting and Strategic Positioning

7. Strategic Relationships

8. Innovation and New Product Strategy

9. Strategic Brand Management

10. Value Chain Strategy

11. Pricing Strategy

12. Promotion, Advertising and Sales Promotion

Strategies

13. Sales Force, Internet, and Direct Marketing Strategies

14. Designing Market-Driven Organizations

15. Marketing Strategy Implementation And Control

Strategic Marketing

Imperatives for Market-Driven Strategy

Pivotal role of market-driven strategy in designing and implementing business/marketing strategies

Links between business/marketing strategy and corporate strategy

Challenges in the modern environment

1. Becoming market-oriented

2. Determining distinctive

capabilities

3. Types of capabilities

4. Creating value for customers

5. Becoming Market Driven

Achieving SuperiorPerformance

DeterminingDistinctive

Capabilities

CustomerValue/

CapabilitiesMatch

Becoming Market-Orientation

Becoming market-oriented (Superior Value

Creation)

Customer focus (Know your customers)

Competitor intelligence

Cross-functional coordination

Performance implications (empirical

support)

Information Acquisition

Cross-Functional Analysis of Information

Shared Diagnosis and Coordinated Action

Delivery of Superior Customer Value

“Capabilities are complex bundles of skills and accumulated knowledge, exercised through organizational processes, that enable firms to coordinate activities and make use of their assets.”

George S. Day, Journal of Marketing, October 1994, p.38.

Step 2: DETERMINING DISTINCTIVE CAPABILITIES

DesirableCapabilitiesDesirable

Capabilities

Applicable to Multiple

Competition Situations

Difficult toDuplicate

Superior to the Competition

Outside-In Processes(connects with the external environment to know customer requirement)

Inside-Out Processes(activities to satisfy customer value requirements)

Spanning Processes

Spanning Processes

Outside-In Processes

Inside-Out Processes

EXTERNAL EMPHASIS

INTERNAL EMPHASIS

Market sensing Customer linking Channel bonding Technology

monitoring

Customer order fulfillment

Pricing Purchasing Customer service

delivery New product/service

development Strategy development

Financial management Cost control Technology

development Integrated logistics Manufacturing/

transformation processes

Human resources management

Environment health and safety

Value Requirements

Distinctive Capabilities

Customer Value: Value for buyers consists of the benefits

less the costs resulting from the purchase of products.

Creating Value:“Customer value is the outcome of a process that begins with a business strategy anchored in a deep understanding of customer needs.”

Benefits Costs

CustomerValue

Monetary costs

Time

Psychic and physic costs

Product

Services

Employees

Image

Benefits

Costs(sacrifices)

Value(gain/loss)

Marketing sensing capabilities Customer linking capabilities Aligning structure and processes

Corporate, Business &

Marketing Strategy

CORPORATE STRATEGY

Deciding the Scopeand Purpose ofthe Business

Business Objectives

Actions and Resources for Achieving Objectives

Deciding corporate vision Objectives Resources Business Composition Structure, System & Processes

Business and marketing strategy relationships

Strategic marketing

MARKETING STRATEGY PROCESS

Markets,SegmentsAnd Value

Market-DrivenProgram

Development

Implementingand ManagingMarket-Driven

Strategy

DesigningMarket-Driven

Strategies

1. Markets, segments and customer value▪ Markets and competitive space▪ Strategic market segmentation▪ Strategic customer relationship management▪ Capabilities for continuous learning about

markets

▪ Market targeting and strategic positioning

▪ Strategic relationships

▪ Innovation and new product strategy

▪ Strategic brand management

▪ Value chain strategy

▪ Pricing strategy

▪ Promotion strategy

Designing market-driven organizations Marketing strategy implementation and

control

Escalating globalizationTechnology diversity and

uncertaintyThe Web 2.0Ethical behavior and corporate

social responsiveness