Business homework
gjunki
1Chap001StrategicMarketing.pptxMarket-Driven Strategy
Chapter 01
Market-driven strategy
Corporate, business, and marketing strategy
Challenges of a new era for strategic marketing
Learning Objectives
1-‹#›
Characteristics of market-driven strategies
Classifying capabilities
Creating value for customers
Becoming customer driven
Market-Driven Strategy
1-‹#›
Becoming market oriented
Customer focus
Competitor intelligence
Cross-functional coordination
Performance implications
Determining distinctive capabilities
Characteristics of Market-Driven Strategies
1-‹#›
Exhibit 1.3 – Classifying Capabilities
Source: Chart from George S. Day, “The Capabilities of Market-Driven Organizations,” Journal of Marketing, October 1994, 41. Reprinted with permission of the American Marketing Association.
1-‹#›
Value for buyers consists of the benefits and costs resulting from the purchase and use of products
Value is perceived by the buyer
Capabilities and Customer Value
1-‹#›
Customer lifetime value (CLV)
Provides a long-term measure of the future profits generated by a customer, adjusted based on the time value of money
Customer satisfaction
Indicates how well the product use experience compares to the buyer’s value expectations
Creating Value for Customers
1-‹#›
A customer-driven organization must identify:
Which capabilities to develop
Which investment commitments to make
Becoming Customer Driven
1-‹#›
Becoming Customer Driven
Market Sensing Capabilities
Involve more than collecting information
Must be interpreted to determine what actions need to be initiated
Customer Linking Capabilities
Offer advantages to both buyer and seller through information sharing and collaboration
Reduce the possibility of a customer shifting to another supplier
Aligning Structure and Processes
Require changing the design of the organization
Require cross-functional coordination and involvement
1-‹#›
Corporate, business, and marketing strategy
Components of corporate strategy
Corporate strategy framework
Business and marketing strategy
The marketing strategy process
Corporate, Business, and Marketing Strategy
1-‹#›
Choosing high performance strategies in this environment requires:
Vision
Sound strategic logic
Commitment
Corporate, Business, and Marketing Strategy
1-‹#›
Exhibit 1.4 - Corporate, Business, and Marketing Strategy
1-‹#›
Exhibit 1.5 - Components of Corporate Strategy
Resource allocation addresses the division of limited resources across businesses and opportunities.
Scope is concerned with resolving questions about the business the firm should be in, where it should focus, and its enduring strategic purpose.
Corporate objectives indicate the dimensions of performance upon which to focus and the levels of achievement required.
Corporate strategies are concerned with how the company can achieve its growth objectives in current or new business areas.
Synergies highlight competencies, resources, and capabilities that drive efficiency and effectiveness in the business.
1-‹#›
Useful basis for examining corporate strategy consists of:
Management’s long-term vision for the corporation
Objectives that serve as milestones toward the vision
Resources
Businesses in which the corporation competes
Structure, systems, and processes
Gaining corporate advantage through multimarket activity
Corporate Strategy Framework
1-‹#›
Strategy paradigms propose:
Re-engineering the corporation
Total quality management
Building distinctive competencies
Reinventing the organization
Supply chain strategy
Strategic partnering
Business and Marketing Strategy
1-‹#›
The chief marketing executive’s business strategy responsibilities include:
Participating in strategy formulation
Developing marketing strategies that are:
Consistent with business strategy priorities
Integrated with other functional strategies
Business and Marketing Strategy Relationships
1-‹#›
1-‹#›
Strategic Marketing
A market-driven process of strategy development, taking into account a constantly changing business environment and the need to deliver superior customer value
Exhibit 1.6 - Marketing Strategy Process
1-‹#›
Activities include:
Markets and competitive space
Strategic market segmentation
Strategic customer relationship management
Capabilities for continuous learning about markets
Markets, Segments, and Customer Value
1-‹#›
Identify market opportunities
Define market segments
Evaluate competition
Assess the organization’s strengths and weaknesses
Strategies include:
Market targeting and strategic positioning
Strategic relationships
Innovation and new product strategy
Designing Market-Driven Strategies
1-‹#›
Marketing program (mix) strategies implement:
Strategic brand management
Value-chain strategy
Pricing strategy
Promotion strategy
Market-Driven Program Development
1-‹#›
Designing market-driven organizations
Marketing strategy implementation and control
Preparing the marketing plan and budget
Implementing the plan
Using the plan in managing and controlling the strategy on an ongoing basis
Implementing and Managing Market-Driven Strategy
1-‹#›
Escalating globalization
Technology diversity and uncertainty
Internet dynamics
Ethical behavior and corporate social responsiveness
Challenges of a New Era for Strategic Marketing
1-‹#›
