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- Tanya Agrawal

Characteristics of Market Oriented Organization

Stay close to the customers Ahead of the competitors Principle To attract and satisfy customers at a profit

Factors Affecting Market Orientation

Customers, employees, shareholder, suppliers and intermediaries Satisfy minimum expectation Shared Value Customer First Superior Product Quality &Service Eg- HUL,Infosys


Structure- to have minimum layers between lower employees and CEO Policies- employees close to customer are given more authority Culture-aims to delight

Long term objectives Participative approach info from top down and bottom up sources Flexible to rapidly changing environment


Market-oriented strategic planning

Market-oriented strategic planning is the managerial process of developing and maintaining a viable fit between the organization's objectives, skills and resources and its changing market opportunities.

Hierarchy of Strategies
Corporate (Strategic Management)

Corporate Office

Business Units/ SBU (Strategic Management)




Functional (Operational Management)




Role of Marketing in an Organization

Organizational Level/Formal Name Corporate (Corporate Marketing) Business Units (Strategic Marketing) Role of Marketing

Provide information on competition & customer ,and advocate customer orientation for developing long term corporate strategy Provide competition and customer analysis for developing long term business strategy, including competitive advantage Develop segmenting, targeting and positioning strategies Take product-line decision Evolve and implement marketing mix strategy in short term to achieve business unit objectives Coordinate marketing activities Allocate resources

Functional (Marketing management)

Strategic Planning at Corporate level


Developing corporate mission and objectives Defining strategic business units (SBUs) Allocation of resources to SBUs Developing corporate strategies to fill the strategic planning gap




Corporate Mission Statement

A mission or the purpose is defined as the CEOs conception of the companys existence or what it should work towards. Providing companys employees with a shared sense of purpose, direction and opportunity Guiding geographically dispersed employees to work independently and yet collectively towards realizing the companys business mission Providing a vision and direction for the company

Corporate Mission Statement

Factors shaping a Companys Mission
Company History Current Preference Market Environment Companys Resources Companys Core competence
History of objective, strategies and achievement A firm must not depart too much from its past history

Personal goals and vision of the management and owners should be considered
Analysis of the major opportunities and threats faced by the company as a part of the market environment should be considered Viability of a mission is determined by the available resources of the company Provides access to a wide variety of market, makes significant contribution to perceived customer benefits & difficult for competitors to imitate

Corporate Objectives and Goals

An Objective is a broad statement of intent that is not quantified and not limited by a time period. An Goal is a measurable or quantifiable objective at a specific time period. A corporate objective is translated into specific goals.


General statement of companys outlook with respect to

Shareholders : Profitability ,Growth Environment : Environment clean control pollution

Expectation of corporate public Value system of top management Corporate resources Performance of SBUs External Environment

Defining Strategic Business Units (SBUs)

Purpose of defining businesses is to manage then strategically hence different business units are called SBUs Characteristics of SBUs It has an independent product or product lines with a set of competitors and markets It can have a separate business strategy It is headed by a senior executive responsible to achieve long term & short term business objectives and goals

Allocation of resources to SBUs

Corporate offices ,reviews the strategic plans of SBUs and decides which of them should be maintained, expanded ,phased out and new business to be pursued. Based on these decision allocation of resources is done. Analytical tools Boston Consulting Group (BCG) Model, called Growth Share Matrix General Electric (GE) Model, called Business Screen Matrix

Allocation of resources to SBUs

BCG Model: Growth-Share Matrix
Market Growth rate

Growing Rapidly


Question Mark

Growing Slowly

Large Percentage

Small Percentage

Relative Market Share

Allocation of resources to SBUs

GE Model: Multifactor Portfolio Matrix
Business Strength High Market Attractiveness High Invest/Grow Medium Invest/Grow Low Selectivity/ earnings Harvest/Divest



Selectivity/ earnings Harvest/Dives t


Selectivity/ earnings


Developing Corporate Strategies

The Gap between the future desired sales and the projected sales over the same period is called Strategic Planning Gap. This Gap can be filled by three alternatives strategies Intensive Growth Integrative Growth Diversification Growth

Developing Corporate Strategies

Intensive Growth Strategy Corporate Management reviews for further opportunities to achieve growth with the companies current businesses. These are identified using the Product Market Expansion Grid Current New Product Product Current Market New Markets
Market Penetration Strategy Market development Strategy Product development strategy (Diversification Strategy)

Developing Corporate Strategies

Integrative Growth Strategy

A companys sales & profit can be increased by

Backward Integration Forward integration Horizontal Integration

Diversification Strategy

When good opportunities are found outside the present businesses i.e. product market, this strategy is considered Good opportunities relates to business strengths and core competencies also

Strategic Planning Process At Business Unit Level

Steps for developing business strategy by the business unit head
(1) (2) (3) (4)

Defining the business units mission

Scanning the external environment (opportunities & threats analysis) Analyzing the internal Environment (Strengths and weakness assessment) Developing Objectives and Goals Formulating strategies for achieving the goals

(6) (7) (8)

Preparing programme or action-plan from the strategies

Implementing the strategies and action-plans Monitoring results and taking corrective action (controls)

Business Unit Mission


Business of the company & business unit intend to pursue Unique methods which would distinguish it from the competitors Social Standing of the organization as a business What Business the company id in ? entity Customer groups Customer needs or functions Technologies Used

Scanning the external environment (opportunities & threats analysis)

Necessary because the environment is continuously changing
Types of External Environment

Political Environment Economic Environment Social Environment Technological Environment Legal or Regulatory

Analyzing the internal Environment (Strengths and weakness assessment)

Strengths are the competitive advantages which a company can use to gain leverage in the market place Weaknesses are the constraints that hinder movement in certain directions. Methods to calculate Strengths & Weakness Current Marketing Strategy Past performance Market effectiveness or orientation Marketing environment

Developing SBUs Objective & goals

Survival Objective & goals Growth Objective & goals Constraint Objective & goals

Formulating Strategies at Business Unit Level

Types of Strategy summarized by Michael Porter
Industry wide Strategic Target

Overall cost leadership

Particular Segment only Uniqueness perceived by customer


Low Cost Position

Strategic Advantage

Developing Business Marketing Plan

A marketing plan is prepared by the head of the marketing planning process including following steps


Analysing marketing opportunities Segmenting and selecting target market segment Developing market strategies Implementing and controlling the market plan

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