The document discusses how organizations can become truly customer-driven. It emphasizes that modern marketing originated in the 1960s with a focus on giving customers what they want. However, flaws emerged where customer needs were not fully understood. The document also discusses the importance of purchasing management in achieving competitive advantage through close business collaborations and ensuring the right strategies are implemented. Finally, it stresses that motivating employees and understanding customer value are key factors for organizations to gain a sustainable competitive edge.

1. Is your organization really customer driven? KKB

2. The Evolution

3. The Marketing Concept- Revisited…. The Basic Concept was – Make things Customer Wants Modern Marketing was developed during 60’s During 1850’s There were marketing researches, Pricing Policies During 1900 it became a subject to be studied The flaws came out in 1957 with Ford

4. The Marketing Concept of ages

5. Factors Enhancing the role of Purchasing

6. Purchasing is Complex because

7. The Changing Face of Purchasing Until the mid 1980s, it had never been considered as a major player Now it is considered as a strategic weapon to achieve competitive advantage The emphasis is not just on doing things right but on making sure that the right things are being done in the first place Today's buyers are more proactive The objective is to have close business collaborations

8. The Role of Purchasing Management… Direct and Indirect Material Costs Vertical Integration Technological Change Cost of Capital Quality Competitive Structure

9. Purchasing Task is a Complex One Rapid Fluctuation of Demand and Supply Price Volatility of Raw Materials Constant Innovations Continuous Shifts in Currency Values Government Intervention

10. How Do Purchasing Policies Impact on KCRM High 3. Guarantees of Availability 1. Technical Cooperation Supply Risk 4. Efficient Order Processing 2. Optimization of Savings Potential Low/ Standard Product Value Low High Figure: Supply Risk & Financial Implication Matrix

11. Selling Strategies….

12. Customer Driven Marketing

15. Distinctive Competence Strategy Results from: Innovation Responsiveness to customer needs Superior service The objective here is to create a unique position for the company in the Market. Distinctive competence permits premium prices. Profitability depends in part on the sustainability of Competitive advantage.

16. Value Driven Strategy Key to stability and gain with key customers. How much value the customer is getting over and above the price that is paid.

17. Issues to be addressed…..

18. Pitfalls of going for superior value Creating difference that buyers do not value. Pricing in excess of values delivered. Failure to understand the real cost of differentiation. Looking only to the core product as the basis of differentiation.

19. How To Develop Competitive Advantage

20. Steps to competitive advantage

21. Motivation? Who Needs it? Motivation is the internal condition that activates behavior and gives it direction; energizes and directs goal-oriented behavior. Allowing incentives and letting the employees feel “I am an important part of the organization” are considered significant motivational facts. Awarding employees their due credits strengthens their motivation. Motivation begins with keeping employees in the know of corporate successes. Informing and motivating employees should be continuous, dynamic, instant and fun! For example: Jaguar Cars

22. What Employees have to do Understand that they are serving customers. Be customer driven because they all have customers, either internal or external. Acquire the proper understanding of the company morale “Delight” customers and retain them profitably.

23. Factors contributing to competitive service edge

24. What is malaise and recovering from it Malaise is dissatisfaction, depression, discomfort, etc. Occurs due to dissatisfying job and increment systems and other social pressure Organizations can go for performance based payment systems enabling ‘value’ or ‘value additions’ to the basic salary. Create awareness activities and greater bonding.

25. Getting rid of management myopia

26. The End