Ans: Meaning of Market Driven
Market-Driven means that the company always tried to provide the best services to their customers, and obtain immediate feedback as to the quality of the service provided. It also strongly influenced by needs of potential customers using market knowledge to determine the corporate strategy of a company. A market-driven help us to determine a customer focus, together with awareness of competitors, and an understanding of the market. Market Driven Strategy is simple but powerful. As Peter F. Ducker, (Presidential Medal of Freedom winner) said: "The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself." Practices of the Market Driven
The practices of maket driven company can be evaluate by Understanding what the company do, and how they measure the bottom line consequences of their orientation to their markets. Also the most of the company had start adopting the market- driven strategy to understand the logic that all busineess strategic deciosion should start with the distinct & clear understanding the market , customer and the competitors. it requires a customer focus, intelligence about competitors, and cross-functional cooperation and involvement. This initiative extends beyond the marketing function in an organization. Objectives of the Market driven:
Market-oriented companies is effective in getting all business functions to work together to provide superior customer value. This objective of the business process helps to improve the overall level of product quality, reduce costs, and also improve service delivery.
A market-driven strategy is built with an understanding of the market and the customers that form the market. The characteristics of market-driven strategies include developing a Market-orientation, leveraging distinctive capabilities, finding a match between customers Value and organizational capabilities, and obtaining superior performance by providing superior Customer value.
Superior customer value occurs when the buyer has a very favorable use experience compared to his or her expectations and the value offerings of competitors
Distinctive capabilities are a key part of developing a market-driven strategy. Distinctive capabilities are superior to the competition, difficult to duplicate, and applicable to multiple competitive situations. Capabilities need to be identified and analyzed, market sensing and customer linking capabilities and necessary organizational changes implemented.
The major dimension of market-driven strategy is to provide an essential view relating to the development of business and marketing strategies.
Evaluating the customer and competitors:
The two largest sides to the market equation are the customers and competitors. If your organization is evaluating itself in terms of customers, they should determine who will be your customers, what the customer’s value & how you will compete, and how your customers perceive you. It may choose to take a more competitor-focused approach, with the objective of beating your competition in cost, functionality or quality.
To achieve superior customer value, company requires superior understanding of what creates value for customers. Customer satisfaction Indicates how well the product use experience compares to the buyer’s value expectations. Superior customer value results from a very favorable use experience compared to expectations and the value offerings of competitors.
The drawback with the customer approach is not paying enough attention to the competition. The drawback with the competitive approach is not being customer oriented enough. How will you compete? A company can be market-oriented only if it completely understands its...