Chapter 1 Imperatives For Market-Driven Strategy Market Driven strategy -The underlying logic of market driven strategy is that

the market and the customers that from the market should be the starting point in business strategy.importantly,market driven strategy provides a company wide prespective,which mandates more effective integrtiion of activities and process that impact customer value --Characteristic of market driven strategy Becoming market oriented Market orientation is a business perspective that makes the cuatomer the focal point of a companys total operations.the organisatiuon must monitor rapidly changing customer need and wants Customer focus The marketing concept has proposed customer focus for half a century,yet until the 1990s this emphasis has limited impact on manager as a basis for managing a business Competitor Inteligance Failure to identify and respond to competitive threats can create serious consequences for a company.example polaroid management did not defdfine its not competitife area as all forms of photography,concentrating instead on its instant photo monopoly poiution,and eventually the company was outflanked by digital photographgy Cross functional coordination Market oriented companies are effective in getting all business functiuon working together to profide superior customer value Performance implications Companies that are market oriented begin strategic analysis with a penetrating view of the market and competition

--Determining Distinctive Capabilities Identifying an organization distinctive capabilities is a vital part of market driven strategy -organiztion process

-skill and sccumulted knowledge -coordination of activities -assets --Classifying capabilities The process capabilities differ in prupose and focus the outside in process connected the organization to the external environment,providing market feed back and forging external relationship Capabilities and cutomer value Value for buyers of the benefits and cost resulting for the purchse snd use a product.value is perceived by the buyers --Creating value for customers Customer value Offering superior customer value is at the core of the bussines design at the companies as diverse as google,mittal steel,and southwet airline.superior customer value result from very favorable use experience compared to expectation and the value offering of competitors Providing value to customer The organization distinctive capabilities are users to delivery vlue by differentiating,the product over,offering lo and differentiationwest price rltive to competing brandsor a combinating of lower cost --Becoming market driven Market sensing capbililities Customer linking capabilities Aliging structure and processes *Corporate,business,and marketing strategy Corporate strategy consist of the decision made by top management and the resulting action taken to archhieve the object set for the business . esentilt to corporate success is matching the capabilities of the organization with oportiunities to provide long term superior customer value

Components of corporate strategy Challenges to mngement include escalating international competition ,new type and sources of competition,political and economic upheaval,dominance of customer and increasing marketing complexity Corporate strategy framework A useful basis for examining corporate strategy consist of 1management long term vision from the corporation 2objectives which serve as milestonse toward the vision 3resources 4bussiness in wich the corporation competes 5structure system and process 6gaining corporate advantage through multimarket activity Business and marketing strategy -bussiness and marketing strategy relationship The chief markrting executive business strategy responbilities include 1.prticipating in strategy formulation 2.developing marketing strategies that are consistent with bussine strategy prioritie and integrated with other functional strategies -Strategic marketing Marketing strategy consist of the analysis,strategy development and implementation on activities in developing a vision about the market of interest to the organization ,selecting market target strategies setting objectivesnand developing implementing and managing the marketing program positioning strategies designed to meet the value requirements of the customer in each market target The marketing strategy process -Market ,segment and costumer value .market and competitive space .strategic market segmenttion .strategic customer relationship management

.capabilities for continuous learning about markets Designing market driven strategy .market targecting and strategic positioning .strategic relationship .innovation and new product strategy Market driven program development .strtegic brand management .pricing strategy .value chain strategy .promotion strategy

Implementing and market driven strategy .designed market driven organization .marketing strat implementation and control

Challenges of a new era for strategic marketing -Esclating globalization The internazionaliztion of business is well recognized in terms of the importance of export/import trade and the growth of international corporations,particulary in the triad comprising north America,Europe and japan -Technology diversity and uncertainty The skill and vision required to decide which radical innovation opportunities can be successfully commercialized will be extremely demanding,and the risks of failure will be high -The web 2.0 As the impact of the web on business apparent in the 1990s,some authorities argued the internet would make conventional strategies obsolete,more generally,file sharing blogs and social networking services have spawned many new service,including the online ensiclopedia,Wikipedia,and the free internet telephone network,skype -Ethical behviour and corporate social responsiveness The demand on individuls to display high level of personal integrity will likely increase in the future.increasing level of transparency mandate that manager behavior should meet the highest standrts

While in the past corporate ethics and socil responbility may not have been centerstage in corporate and business strategy,this situation has change dramatically