MARKET-LED MANAGEMENT

Market-Led Management



Market-Led Management

Explain what you understand from the marketing literature about what it means to adopt a market-led approach to managing organisations.

The market-led approach to valuing a business is defined as the estimation method, based on market information. Otherwise it is called comparative, since it takes into account current actions of buyers and sellers, analyzing sales of comparable sites. This is the most common method of determining the value of the company and its foundation is to compare the financial evaluation of the business to him with similar market units (Piercy, 1997).

The advantages of the comparative approach are that the assessment is based on objective indicators - this is due to the fact that the appraiser focuses on the real market price of similar companies. All other methods used in evaluating complex calculations, and, consequently, are the norm small deviations of calculated parameters from the real ones. However, a comparative approach and drawbacks, chief among which is that it does not take into account the prospects for the future development of the company. In addition, the comparative approach is particularly justified in circumstances where there is available an active stock market, which is due to the fact that business analysis is based on the information on completed transactions in shares. Therefore, if an active stock market or if there is no financial information is confidential and cannot be found in the public domain, using the market-led approach valuation of the business is difficult. Therefore, this approach is most often used in the West and in post-Soviet countries and if he is used, it is quite rare - and the result of poorly developed stock market, and (in some areas of the market) of a small number of peers. Among the main methods of forming a market-led approach estimates operating business, is to provide separately such as: the method of capital markets, sales method and the method of roaring industry ratios (Egan, and Thomas 1998). To become a market leader in the 21st century, an organisation has to progress from 'marketing department marketing' to a value-driven culture that incorporates market orientation throughout the business. Piercy (1997) explains that the move from a marketing plan to a market culture involves managing relationships that are beyond the control of the marketing department. These relationships are key to adding value to the firm's product/service offering and, ultimately, to the success of the company (I am using success here rather than profitability because, as I have discussed, there are some organisations that do not have profit-making objectives). You have probably heard the term 'relationship marketing', which has emerged as common terminology in the 1990s. It has been used to describe everything from the handful of loyalty cards in your credit card case and the monthly sales call of the office supply salesperson, to the unsolicited junk mail that falls through your letterbox. It has evolved from the vast expansion of customer profiling data (lifestyle and census data), financial data, and to the increasing ...