TOPIC 1: MARKET-DRIVEN STRATEGY
1.1 THE STUDY OF STRATEGIC MARKETING (Page 2-3)
ACTIVITY 1.1 (Page 3)
Research a Malaysian company that you believe has been adopting market-driven strategies. Identify those strategies. Why do you consider this company to be successful? SEFF-CHECK 1.1 (Page 3)
In your own words, define strategic marketing.
Strategic marketing is a “market-driven process of strategy development, taking into account a constantly changing business environment and the need to deliver superior customer value” (Cravens and Piercy, 2006, p 30). (Page 2) 1.2. MARKET-DRIVE STRATEGY (Page 3-4)
SEFF-CHECK 1.2 (Page 4)
1. Looking at your own organization, do you believe that it promotes a market-driven strategy? 2. Is the market-driven strategy relevant to governmental and non-profit organizations? Explain. 1.3. MARKET ORIENTATION AS A PHILOSOPHY (Page 5-7)
SEFF-CHECK 1.3 (Page 7)
1. In your own words, define market orientation.
“A business is market-oriented when its culture is systematically and entirely committed to the continuous creation of superior customer value” (Narver and Slater, 1994, p 22). 2. State the three dimensions of market orientation.
Kohli and Jaworski (1990) define market orientation in terms of three dimensions:
3. State the three tasks that a market-oriented organization is involved in. The primary objective is to deliver superior customer value. To fulfill this objective, the organization must engage in the following tasks: + Information Acquisition:
+ Cross-Functional Assessement:
+ Shared Diagnosis Action:
From the above, it becomes obvious that for an organization to embrace market orientation, management must make use of superior organizational skills to help them understand and satisfy customers.
1.4. DISTINCTION BETWEEN MARKET ORIENTATION AND MARKETING ORIENTATION (Page 7-8) SEFF-CHECK 1.4 (Page 8)
Identify the two main distinctions between market orientation and marketing orientation.
Market orientation is different from marketing orientation. If you can recall, marketing orientation is when an organisation puts its total focus on the customer, and where the delivery of customer satisfaction at a profit, is their primary motivation.
On the other hand, a market-oriented organisation is much more than just acknowledging the importance of customers as a key driver to deliver superior customer value.
More than that, it encourages the methodical collection and sharing of market information from customers, competitors and other stakeholders, in order for the organisation to interpret and devise appropriate responses to changing conditions.
This serves the purpose of promoting an organisation-wide priority that allows identifying and exploiting of opportunities as well as neutralising threats in the marketplace.
In other words, market orientation captures an organisation’s ability to anticipate, react to, and capitalise on changes that are bound to occur in the fast-moving marketplace. Just as you now know that market orientation is concerned with organisation-wide issues, marketing orientation reflects a functional focus. We can add that marketing orientation as a philosophy extends beyond the marketing function in an organisation.
1.5. STRATEGIC ORIENTATION AS A SECOND CONCEPT (Page 8)
Define Strategic Orientation
Strategic orientation is defined as “how an organisation uses strategy to adapt and/or change aspects of its environment for a more favourable alignment” (Manu and Sriram, 1996, p 79).
1.6. WHY STRATEGY DEVELOPMENT IS IMPORTANT
Porter (1996) states, that through the years, managers have been focusing too much on operational effectiveness rather than strategy development. Management tools such as Total Quality Management (TQM), benchmarking and outsourcing have taken the limelight away from strategy....
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