Marketing Strategy Process
State the three dimensions of market orientation. Kohl’ and Gasworks (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: Marketing Strategy By sys. Encourage. 56
+ Shared Diagnosis Action: orientation, management must make use of superior organizational skills to help them understand and satisfy customers.
1. 4. 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 organization 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 organization 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 organization to interpret and devise appropriate responses to changing conditions. This serves the purpose of promoting an organization-wide priority that allows identifying and exploiting of opportunities as well as neutralizing threats in the marketplace. In other words, market orientation captures an organization’s ability to anticipate, react to, and capitalism on changes that are bound to occur in the fast-moving marketplace.
Just as you now know that market orientation is concerned with organization-wide issues, marketing orientation reflects a functional focus. We can add that marketing orientation as a philosophy extends beyond the marketing function in an organization. Define Strategic Orientation Strategic orientation is defined as “how an organization uses strategy to adapt and/or change aspects of its environment for a more favorable alignment” that through the years, managers have been focusing too much on operational effectiveness rather than strategy development. Management tools such as Total Quality Management (TXT), benchmarking and outsourcing have taken the limelight away from strategy. Granted that both operational effectiveness and strategy are important for superior organizational performance – both play different roles.
Operational effectiveness is performing similar activities better than competitors, while strategy requires us to perform different activities from competitors or performing similar activities in different ways. Companies are mainly interested in always pushing productivity as high as possible – ND although this is admittedly necessary for superior performance – it is surely not adequate for overall competitiveness. Therefore, strategy is equally, if not more important. Why? Strategy is important because organizational goals can only be achieved satisfactorily through the correct use of strategies.
1. 2 (Page 9) Do you agree with Porter’s contention that managers have forsaken strategy in favor of operational effectiveness? Provide an example of a company to illustrate your agreement or disagreement.
1. 7. WHY STRATEGY? SELF-CHECK
1. 5 In your own words, define strategy Grant (1995) defines strategy as “the overall plan for deploying resources to establish a favorable position”.
Adding a competitive dimension, Field and Gilligan (1998) define strategy as “the broad statement of the way in which the organization sets out to achieve its objectives. Included within this would be a series of decisions on the markets in which the organization will operate, the type of products/services it will offer and the basis of the competitive stance”. To put it simply, a strategy is a roadman that directs the organization towards the attainment of its long-term goals and objectives.
The Components of Strategy Scope: + Goals and Objectives:
*Resource Deployments: + Sustainable Competitive Advantage (SAC)
*Synergy The choice of strategy is influenced firstly by objectives and secondly by the resources available. For example developing superior products depends on having excellent research and development facilities and skilled manpower – or at least it depends on having the money to buy facilities and also the time to recruit and build an R team.
1. 8. MARKETING STRATEGY (Page 11-12) SELL-CHECK 1. (Page 12)
Marketing strategy is a combination of what type of decision? A marketing strategy expects decisions about the specific customers the organization wants to target and the marketing mix the organization wishes to develop to appeal to the said target market. We can of course organism many combinations of marketing mix decisions and target markets – but the idea is not Just to come up with any strategy. The real challenge is to zero in on the best strategy.
1. 3 (Page 12) markets and the marketing mix strategies that it uses to further its organizational goals. .
9. MARKETING STRATEGY PROCESS
What are the four main steps outlined in a marketing strategy process? The strategic situation analysis examines market and competitor analysis, market segmentation and continuous learning about markets. Designing marketing strategy allows us to look at customer targeting and positioning strategies, marketing relationship strategies and planning for new products. Marketing programmer development consists of product, price, distribution, and promotion strategies designed and executed to meet the value requirements of targeted customers.
Strategy implementation and management look at organizational design and marketing strategy implementation and control. Overview of the marketing process A good way of looking at marketing strategy planning is as a narrowing-down process. This marketing strategy process is illustrated below: organization’s resources and its objectives. The single most important factor for a successful marketing strategy is a clear understanding of who your customers are and what their needs are.
It SSL lour ability to satisfy these customers’ needs better than your competitors that can help you build customer loyalty and increase your sales.
SUMMARY (Page 15-16)
We start off by talking about the subject of strategic marketing as a process of evolving market-driven strategy that is needed to confront a competitive marketplace and a fast-changing environment, as an approach to deliver superior The focus of strategic marketing is rightly on organizational performance. ? We also introduce market orientation as a business philosophy that is developed to explain organizational performance. We explain that market orientation is about creating and fostering an organization- wide culture that encourages us to not only focus on customers and delivering that superior customer value, but also in gathering and distribution market information cross all business functions within that organization for the purpose of coming out with suitable responses as a way of exploiting opportunities that we have identified as well as to counter any threats that may have arisen.