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Part 1

1.1Define Market Driven Strategy

Market- Driven Strategy (MDS) is very essential in formulating business strategy. This approach
used is always market-oriented and customer-oriented. Next, understanding what the customers
do, understanding the customers behaviors and measuring the interaction among customers.
Therefore, the main point is always orienting to the market and customers in every business
activity performed.
By focusing on the consumer first, companies can gain great advantages that aid in the marketing
and sales of their products or services. Developing a market-driven strategy involves aligning
internal operations as well as external communications in order to affect every aspect of
customer value, and therefore is not a short-term solution. However, when done correctly, a
market-driven strategy can provide excellent results and even reduce long-term costs.
Focus on benefits, not features. Features are relative to your product or service while benefits
relate directly to your customers experience. Think of cell phones as an example. The
advertisers do not say the phone has a 1540 mAh capacity battery (feature), they say you get up
to 480 minutes of talk time (benefit).
1.2.Characteristics of market-driven companies
1. Strategically selecting the market(s) and segments you serve
2. Understanding the problems, challenges and opportunities prospective buyers in your
market are dealing with
3. Knowing the trends and future issues prospective buyers in your target market(s) will
face in the next 1-3 years
4. Listening to and understanding what your customers are telling you about whats really
going on in their business, not just what new feature/function enhancements they want
5. Using reliable fact-based research data and industry/market analysis amongst several
inputs for making strategic go-to-market decisions
6. Making strategic decisions across all areas of the company for which market(s) youre
going to serve and the key value propositions your company drives to market

7. Always using the outside-in perspective

8. Your solutions genuinely create value for your customers
9. Focusing on where and how your company can excel in selected markets rather than just
having a presence in many markets
10. Developing a corporate mindset of being a trusted advisor for customers and prospects
rather than just another vendor of stuff and/or services
11. All functional areas in the company are aligned around the same go-to-market strategy
12. Understanding and responding to the buyers process while sales retain control of moving
the buyer to a decision
13. Developing long-term customers who want to do business with your company
14. Using a balanced scorecard approach to measure marketing performance across multiple
15. Marketing is the strategic leader in the company and central to the success of the business
1.3.Differences Between Market-driving and Market-driven Companies
Market-driving companies rule the future they push the envelope of possibility and consistently
surprise customers by introducing unique value in exceptional brand new products and services.
Market driven companies are doomed to fall increasingly further behind as they react to
customer needs that will surely change by the time they deliver the ultimately out of date
A Current Example
Consider Apple vs. Microsoft. Apple is a market-driving company anticipating trends and taking
risk to consistently amaze and surprise customers with delivered value. Microsoft is a marketdriven company missing trends and failing to take risk which forces it to react after dramatic
market shifts have already occurred. Invariably, one can predict the fate of Zune vs. iTunes, or
understand the relative adoption of Windows mobile vs. the iPhone. Its not hard to see which
approach is also more cost-effective.


1.4.Approach Makes Them Different

Market-driven companies perform exhaustive market research to fully understand an existing
customer need. They perform multiple validation cycles with heavy documentation of
requirements and written detailed specifications of features and benefits. A serially laborious
process is then followed through multiple cycles of develop-and-test until a differentiated
product or service is identified. For some, static well-defined market segments, perhaps this
approach can still work. Procter and Gamble for many products, is a good example of being
driven by these static segments.
Market-driving companies focus on a vision for the future, unhampered by traditional thinking
and industry norms for product development. Market-driving companies are poised to make
discontinuous leaps in innovation in terms of customer value (not just incremental capability and
technology). These companies also have a mission to build unique value networks and engage in
a bigger business ecosystem through technology and business model innovation. Apples iPod
with iTunes is a good example of a value network in a business ecosystem.
1.5.Nine(9) Ways to Differentiate
In pondering what it takes, or how one can observe and more deeply characterize one type of
company from another, lets look at these key differentiators.



1. Disruptive


1. Innovative


2. Dynamic














Market Driven Vs Marketing Driving

To get a better understanding of these criteria, lets explore them in more detail in the
comparisons that follow.

Market-driving companies are disruptive to markets surprising customers with value.

Market-driven companies are reactive to clear shifts that are late and underwhelming.

Market-driving companies are discontinuously innovative introducing radical efficiency.

Market-driven companies are incremental in adding features to automate existing

Market-driving companies bring creative solutions to difficult customer challenges.

Market-driven companies bring insignificant responses leaving customer questions

Market-driving companies create massive value to delight customers.

Market-driven companies add expected features that fall short of customer expectation
set by competition.

Market-driving companies are agile in their ability to pivot both vision and strategy.
Market-driven companies are rigid, and unable to modify past decisions even for coursecorrecting good reason.

Market-driving companies are recognized as competitive by early activity. Market-driven

companies are perceived as tentative, by their late reactivity.

Market-driving companies are decisive in quantifying and taking measured risk. Marketdriven companies are unsure in researching and over-analyzing seemingly irrelevant risk.

Market-driving companies are clear in articulating new business model value to

customers in simple terms. Market-driven companies are confused in their positioning
and value messages to the market.

Market-driving companies are dynamic in regularly creating new and growing markets.
Market-driven companies are static and can only serve existing often declining markets.

2.1. How to become Market Driven
2.2.Becoming Market Oriented
A market orientation is a business perspective that placed the customer as the center of a
companys total operations. This concepts is basically holds the same idea as the
marketingconcept. However, for a business to achieve market orientation, it involves the use of
superior organizational skills in understanding and satisfying customers.
A market-oriented organization always gathers
information about its customers, competitors, and the
markets; analyze it from a total business perspective,
decides how to deliver superior customer value, and
finally takes actions to provide value to customers.
(Characteristics of Market Orientation)

Customer focus


Customer focus basically stands for understand the customer needs, wants, and responses
towards the products delivered. The market-oriented organization understands customers
preferences and requirements and effectively deploys the skills and resources of the entire
organization to satisfy customers. Becoming customer oriented requires finding out what values
buyers want to help them satisfy their purchasing objectives. Buyers decisions are based on the
attributes and features of the product that offer the best value for the buyers use situation. The
buyers experience in using the product is compared to his or her expectations to determine
customer satisfaction.
Dell Computers direct contact with its buyers is an important information
source for guiding actions to provide superior customer value. The direct,
built-to-order process used by Dell avoids the stocking of computers that
may not contain state-of-the-art technology. Also, each computer contains
the specific features requested by the buyer. Competitors of Dell that
market their computers through distributors and retailers have higher costs
because price reductions in purchased components (e.g., chips) cannot be utilized for computers
in inventory.

Competitor intelligence

A market-oriented organization recognizes the importance of understanding its competition as

well as the customer. Failure to identify and respond to competitive threats can create serious
consequences for a company.
Example: Western Union did not define its competitive area as telecommunications,
concentrating instead on telegraph services, and eventually the 100-year-old company was
outflanked by fax technology. Had Western Union been market oriented, its management might
have better understood the changes taking place, recognized the competitive threat, and
developed strategies to counter that threat.

Cross-Functional Coordination: Market-oriented companies are effective in getting all

business functions to work together to provide superior customer value. These

organizations are successful in removing the walls between business functions-marketing

talks with manufacturing and finance. Cross-functional teamwork guides the entire
organization toward providing superior customer value.

Distinctive Capabilities

Identifying an organisations distinctive capabilities is a crucial part of market-driven strategy.

Capabilities can be defined as complex bundles of skills and accumulated knowledge, exercised
through organizational processes, that enable firms to coordinate activities and make use of their
The Major components of distinctive capabilities are:
1. Organizational Processes
2. Skills and Accumulated Knowledge
3. Coordination of Activities
4. Assets
For example: Zaras new-product development process, which illustrates the retailers distinctive
capabilities, where the new-product development applies the skills of their design team and
benefits from the teams accumulated knowledge; the coordination of activities across business
functions during new-product development is facilitated by information and technology (the
product designs take into account the manufacturing requirements as well as offering high
fashion products). The asset is the strong brand image possessed by Zara which helps the
launching of the new product.
2.3. Creating Value for Customers
Customer Value is the outcome of a process that begins with a business strategy anchored in a
deep understanding of customer needs The creation of customer value is an important challenge
for the managers, since it is an ongoing competitive challenge in maintaining successful marketdriven strategies Being able to overcome these challenge, the organization is believed to be able
to successfully deliver the customer value; hence fulfilled their goals.
Superior customer value occurs when the buyer has a very positive use experience compared to
his/her expectations as well as the value offerings of competitors.

Furthermore, it was stated that the values could be product differentiation, lower prices than
competing brands, or a combination of lower cost and differentiation.
Through the deep understanding of this concept, ability to implement and manage all the
elements, as well as the constant management and updates of the strategy, it is believed that the
organization will able to achieve it goals.
2.4.Market Driven companies focuses on Six Cs
When developing marketing and communications plans and tactics, applying the "Six C's" of
market driven companies is a key to the success of programs for all business to business
companies. Advertising, public relations, email marketing, branding strategy, trade shows, and
internet marketing strategies will be more effective if the needs of the customer and market
segment are researched and understood, both by the business and the agency. This knowledge
drives the creation and implementation of the most successful marketing programs.
There are significant contrasts between a market driven company and an inside out approach to
business, much as there are contrasts between an agency that is market driven (external focus) or
creatively driven (internal focus). Many business and agency managers are internally focused
and could achieve a better understanding of their customers and markets by implementing the
"Six C's" approach.
1.Customer Segment:
To be market driven, thinking and actions begin with an understanding of customer market
segments, their requirements, and unmet and emerging needs.
Market driven B2B companies study the products, services and performance of their competitors
to determine their strengths and weaknesses
3.Capabilities:Market driven organizations actively evaluate their technologies and capabilities
in light of changing market conditions. They quickly adapt (before their competitors) products
and services to meet the needs of the target market segments.


4.Cost: To be market driven companies must constantly strive to improve costs and efficiency
and increase value to their customers and shareholders
5.Continual Improvement:
By constantly learning and seeking to improve in all operational areas, market driven companies
improve customer value, response time, productivity and also their own profitability
6.Cross-Functional Teams:
Utilizing cross functional teams with responsibility to implement business plans leads to better
decisions, response, and service to the target markets
Part 3

3.1.Real life example of Rahimafrooz Batteries Limited (RBL) initiating Market- driven
Market- driven strategies plays a pivotal role in determining the success of organizational
performance. In context market orientation, RBL consider the following things:

RBLs business objectives are driven by customer satisfaction.

RBL monitor their level of commitment and orientation to serve customers needs.

Their strategy for competitive advantage is based on understanding of customer needs.

RBL measure customer satisfaction systematically and frequently.

RBL responds to competitive actions that threaten them.


RBL target customers and customer groups where they have, or can develop a
competitive advantage.

The top management of RBL regularly discusses competitors strengths and strategies.

They communicate information about their successful and unsuccessful customer

experiences across all business functions.

All of RBL business functions are integrated in serving the needs of their target markets.

All of their managers understand how everyone in the company can contribute to creating
customer value.

Rahimafrooz Batteries Limited (RBL) pursues a model which drives them to be market-driven.
This model is illustrated below:

Rahimafrooz Batteries Limited (RBL) put organization-wide intelligence management and

responsiveness to it at the heat of the construct and form of specific culture which includes
distinctive management practices, organizational infrastructure, systems, human resources and
technology support as organizational entities (leverages) enabling implementation.
Market orientation is specifically often understood as the all-encompassing strategic orientation
that raises the probability of market performance of RBL which encompass customer,
competitor, intra-functional, profit, distributor and environmental orientation. We understand
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customer focus as a focus on customer needs; providing and continuously improving perceived
value, quality and satisfaction within a long-term time horizon with a view to achieving superior
market performance.
RBL follows a model consists of six dimensions representing key organizational leverages through which customer focus is implemented. Market (customer) orientation is therefore not a
separate dimension, but is reflected in all organizational leverages. The first dimension of the
model is strategic deployment. Discrete strategic leverage is important organization-wide
orientation of RBL because it concerns top management factors (barriers), the strategy building
process and necessary resources. RBL considers strategic deployment as a first leverage.
Through this leverage, market orientation should be manifested as a visible senior management
commitment, as the presence of it in the RBLs mission, as alignment with business strategy and
as provision of adequate resources.
The second dimension of the model is internal integration leverage. RBL focus focus on internal
environment and intra-functional coordination. Under this dimension, RBL coordinated
utilization of company (capital and human) resources and full departmental alignment and
balancing internal orientation with external. Internal integration leverage is implemented in RBL
through activities leading to efficient and satisfied employees such as training, internal
communications, empowering, motivating, rewarding, but also through internal quality
management and efficient inter-departmental cooperation.
The third dimension of the model is market knowledge management. RBL emphasis on
information handling (analysis, generating, disseminating) and additional activities like
interpretation and use of marketing knowledge. RBL more focused on learning as a form of
information generating where all important information for marketing decisions and also
balanced metrics of market performance.
As the fourth dimension of the model, an organizational infrastructur. In RBL, different
organizational elements and systems such as organizational structure, centralization, information
technology and communication systemsm play important factors of market orientation.
The fifth distinctive dimension of the model is customer interface design. AS a market oriented
organization, RBL always close contacts with customers.They believes that the importance of the
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interaction with the customers also lies in the fact that a customers value is largely produced
during their interaction with employees, other customers and organizational systems. Therefore,
frontline communication and interaction points with customers should be managed as a coherent
whole. As market orientation is concerned with sources of customer value, customer interface
design should therefore be one of its key leverages. Customer interface is a relatively
independent organizational entity and it requires distinctive management emphasis and
operationalized as the extent of customization, fulfillment of expectations, management of
emotional, social, technological and environmental elements of interaction, but also through long
term, relationship impacting activities.
Finally, organizational culture is the sixth dimension of the success of RBL. Organizational
culture is an important factor of driving RBL as an market-driven organization in this field which
encompasses tangible elements such as behaviours and artifacts, and intangible elements, such as
values, beliefs and norms. Customer orientation as a set of beliefs which puts customer interests
first. RBL focuses greatly on customer needs information which are more deeply rooted values
and beliefs that are likely to support customer focus and permeate the RBL.
3.2.To be Market-driven, RBL has to be market oriented
RBL are focusing on customers. Getting closer to the customer, Rahimafrooz associates directly
with distributors, retailers and also buyers to know what drives customer satisfaction, identify
customer needs, and use those needs to target markets where the business can achieve a
sustainable and significant competitive advantage in this field. RBL understands customers
preferences and requirement and offering superior value products.

RBL develops a centralized Customer Feedback & Query (CFQ) CELL. Total
commitment to customer satisfaction is one of their values. Listening to what customers
say in a continual systematic way is a key tool to comprehend their needs and
requirements and to satisfy them achieving excellence in their products and services
All individuals of Rahimafrooz Group interact with customers and members of the public
everyday and do hear, receive, or learn about their comments, complaints, views, etc on
the products, services, and dealings of the company.
A systematic and organized way of managing these feedbacks and queries will surely
strengthen their total commitment to customer satisfaction.
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3.2.2.Customer Satisfaction and RBL

Rahimafrooz Batteries Limited is customer-driven firms who are constantly monitoring and
analyzing customer satisfaction. A key objective is identifying the product/service attributes that
influence customer satisfaction. Rahimafrooz Batteries Limited successfully competed with
others global competitors in Asia by designing durable and quality batteries to meet specific
users' requirements. Rahimafrooz targets specific customer groups. The company is very service
oriented and quick to respond to customer needs.
Understanding customer satisfaction Rahimafrooz engage in accurate tracking of the needs and
wants of all participants in the entire distribution chain, including suppliers, manufacturers,
middlemen, and end users. All members of the Rahimafroozs distribution network is striving to
satisfy the individual or organization that ultimately consumes the product or service. Teamwork
is playing the significant in Rahimafrooz to meeting buyers' needs. For this, RBL is measuring of
customer satisfaction regularly to know buyer needs or preferences and identifying whether
changing or not. An important part of the monitoring task is identifying buyers' future needs.
Within the organization, marketing professionals of Rahimafrooz are evaluating the changing
requirements of end users and channel members. For these they involve all personnel in contact
with customers to evaluate activities. And also for improving customer satisfaction include the
product/service delivery system, performance of the product/service, the image of the
company/product/brand, customers' perceived price-value relationship of the product/service,
employees' level of performance, and study of competitors' advantages and weaknesses.
We consider RBL as a market-oriented company because it completely understands its markets
and the people buy its products or services. Gaining these-

RBL is gathering proactive information and analysis and they have a wealth of
information is available in company records, information systems, and employees.
A key part of information acquisition, RBL is learning from experience where they
encourage open-minded inquiry, widespread information dissemination, and the use of
mutually informed managers visions about the current market and how it is likely to
change in the future.
Rahimafrooz has commissioned a third party research firm to survey Rahimafrooz
customers of all SBUs, and products and services, to provide them key learning on how
to further strengthen their customer service. They make a GITC team who are working
tirelessly to put in place a Customer Relationship Management (CRM) system to help
them get closer to their customers for both acquisition and retention programs.

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A market-oriented organization RBL recognizes the importance of understanding its competition
as well as the customer.

The key questions of RBL management are which competitors, and what technologies,
and whether target customers perceive them as alternate satisfiers.
RBL believe superior value requires that the seller identify and understand the principal
competitors short-term strengths and weaknesses and long term capabilities and
strategies which make the RBL market leader in the market.

RBL is getting all business functions effectively to work together to provide superior customer
value. They are successful in removing the walls between business functionsmarketing talks
with manufacturing and finance.

RBL build a Cross-functional teamwork guides the entire organization toward providing
superior customer value. RBL are focusing on improving internal efficiencies.
RBL has set in motion the process of assessing their current business processes using an
"Integrated Business Planning" model called MRPII. This is expected to coordinate and
bring continuous improvement and alignment between sales, marketing, manufacturing,
business planning, forecasting, financial planning, and HR planning.
RBL pursues an approach named THE DEEP DIVING APPROACH which continually
swimming around looking for new clients, customers, solutions, best practices, they
could work within the group and gradually built it up.
RBL can choose to build up a Rahimafrooz Group wide community of like-minded
marketing individuals. By continually benchmarking and evaluating themselves, RBL
create a group of intensely committed and steadfast marketers.

3.2.6.Core Competence
Core competencies are the most significant value-creating skills within the corporation and key
areas of expertise which are distinctive to the company and critical to the company's long term
growth. RBL's core competencies are they are offering better quality and durable batteries than
competitors in the Bangladesh and also other countries like India.
3.2.7.Sustainable Competitive Advantage
Sustainable competitive advantage allows the maintenance and improvement of the enterprise's
competitive position in the market. It is an advantage that enables business to survive against its
competition over a long period of time. The opportunity for Rahimafrooz to sustain its
competitive advantage is determined by its capabilities of two kinds distinctive capabilities and
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reproducible capabilities - and their unique combination to create superior customer value. They
are focusing on strengthening our core business. New investments in core businesses include
RBL's expansion of capacity. RBL is investing in expansion of its nationwide distribution
network. To make UBC (used battery collection) a success, greater teamwork is working among
the concerned SBUs and the dealers/distributors which give a competitive advantage. RBL are
focusing on improving financial management. For this, they introduced the Balanced Scorecard
to measure financial performance and ascertain optimal mechanisms for a group procurement
policy, potentially leading to centralized procurement. The Rahimafrooz Financial Leadership
Team (FLT) is attempting to cut operating costs by 20% against budget with the same top line
target by eliminating unnecessary expenses.
RBL are focusing on improving internal efficiencies. They have set in motion the process of
assessing their current business processes using an "Integrated Business Planning" model called
MRPII. This is expected to coordinate and bring continuous improvement and alignment
between sales, marketing, manufacturing, business planning, forecasting, financial planning, and
HR planning. Recently, RBL kicked off the group-wide QMS process to build process focus
both at RBL and at all SBUs. Various IT system enhancements are being planned by GITC.
The resource-based view of the firm has seen an increased emphasis on competing on
capabilities, both tangible and intangible. Capabilities have been defined as: complex bundles
of skills and collective learning, exercised through organizational processes that ensure superior
coordination of functional activities. Distinctive capabilities are the basis of companys
competitive advantage. According to the new resource-based view of the company, sustainable
competitive advantage is achieved by continuously developing existing and creating new
resources and capabilities in response to rapidly changing market conditions. Among these
resources and capabilities, knowledge represents the most important value-creating asset.
Distinctive capabilities of RBL are:

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Part 4

4.1.The Payoff for being market-driven

Why is it important to be market-driven? The superior abilities of the market driven firm lead to
bottom-line benefits from improved performance. Although managers have been exhorted to
stay close to customers, and put the customer at the top of the organization chart for at least
40 years, this advice had to be taken on faith until recently. Now, a growing body of research has
found that market driven firms usually are more profitable than their rivals, a conclusion that has
been sustained with a variety of measures and methods.
Although these studies have not been able to trace the precise reasons why a market orientation
enhances profitability, clues from other sources indicate the benefits of a market orientation are
the result of:
Superior cost and investment efficiency:
Not all customers are equally attractive, and loyal customers are considerably more profitable
than others. A market-driven firm is better able to identify and keep its profitable accounts, and
understands the pay-off from its marketing investments.
Employee satisfaction:
Satisfied employees are both a cause and consequence of customer satisfaction. They are also
more committed and enthusiastic about the firm, more productive, and because they are more
loyal, the costs of recruiting, selecting, and training are lower. The cost of employee turnover is
also lower not only the direct costs of hiring the replacement, but the indirect costs of lower
productivity as replacements learn their jobs and broken relationships are repaired.
Price premium:
A market orientation contributes to a more powerful value proposition, which translates into
greater value that usually is rewarded with a price premium.
Revenue growth:
Here the evidence is not so conclusive, but we expect that a superior ability to anticipate
changing market requirements and target innovation efforts more effectively should have topline benefits.

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Competitive preemption:
With highly satisfied customers, the firm has erected switching barriers that competitors cannot
easily breach. These could be psychological (the customer is comfortable in the relationship and
resists changing) or economic (there is a large perceived cost or risk to making a switch).

Constant Improvement
A market orientation helps drive constant improvement in company processes and systems
because it promotes a "culture of experimentation." Company leaders and functional departments
perpetually explore opportunities to improve upon product and service offerings to adapt to
current and future needs of customers.

These bottom-line benefits are derived from a set of inherent advantages market-driven firms
have over more internally focused rivals. These advantages, are drawn from a superior ability to
understand markets and a superior ability to attract and retain customers. The market-driven
organization is better able understand markets by sensing emerging opportunities, anticipating
competitors moves and making fact-based decisions. It is also better able to keep customers by
delivering superior value, encouraging loyalty and leveraging its market investments.

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