Market-Based Challenges in Modern Organizations



Market-Based Challenges in Modern Organizations

Introduction

Market based management is an important phenomenon is present day business world. It aims at serving the market from all perspectives. Doing so requires a complete transformation from the traditional philosophies and adapting a market based orientations and everything you do. Market bases approach it not just a matter of motivating staff of the company to be closer to the customer or the market (Koch, 2006). Developing a market orientation means:

Perfectly understanding the markets and the people who are the users of our products or services

All functions and divisions of the company are involved in strategic decisions and marketing tactics.

All functions and divisions of the company acquire a commitment to meet marketing goals and to work together to make maximum use of market opportunities and optimize the use of company resources.

Market Orientation as a Management Philosophy

In today's competitive environment, every business realizes the importance of market. Hardly anyone doubts that the focus of all business activities is on the needs of the buyer or user (Best, 2000). The company with market based philosophy will be confronted with the need to build a network-driven market, the appearance and actions of which are correlated with the concept of marketing.

Customer Focus, Customer Performance

Customer Focus and customer performance is the first element of market based management. Creating superior customer value at a profit is far more than a marketing function. It is the goal of all activities of the organization and not just one department. In other words, strategic marketing is an essential element for a market oriented company and it employs the concept of internal customers (Rogers, 2001). Market orientation means the direction of efforts at all levels of the organization to create value for the customer, understanding and prediction of its needs. Orientation to the intermediate customer implies a willingness to treat because traders are not as mere intermediaries, but to their customers, i.e. it is desirable to take into account their specific needs.

Market Analysis

Market analysis is the second broad function of market based management. Market Analysis one of the very important processes in the marketing process; it is a thorough study to determine the forces and factors influencing the market. The companies aim to gauge the market potential, demand of the market, market share, customer experience, market segments, competitive positions and sources of advantage. Orientation to the competition involves clarification of strengths and weaknesses of competitors, determination of their strategy to react better to their reactions (Moschis, 1994). It analyzes the sectors, potential of the customers, competition, and input areas. The analysis should start by studying the consumer, because they are the ones for to whom the business intends to serve, the company must decide what prices to sell, where and how to advertise the product, which channels distribution to be employed.

The importance of market analysis lie in the fact that markets are rapidly evolving and thus, it require an ongoing analysis of the same in order to identify and evaluate ...