This document summarizes a business strategy session on crafting market strategy. It discusses several key topics: 1) The resource-based view of organizations and how resources like core competencies, capabilities, brands, and partnerships can provide competitive advantages if they are valuable, rare, inimitable, and non-substitutable. 2) Three fundamental value-based strategies for organizations: product leadership, customer intimacy, and operational excellence. 3) The importance of aligning an organization's offerings with market needs through an effective go-to-market strategy that balances methodological and radical planning with execution. 4) Key components of the marketing strategy process including situation analysis, program development, implementation, and review

1. Business Strategy Session 6
Crafting Market Strategy
Oct 22nd , 2016
Lecturer: Anik Saha

2. © Anik Saha2
Business Strategy As The Context
Business Strategy A Key Driver for
Marketing Strategy & Executions

3. © Anik Saha3
Resource Based View of Organization
Collection of Physical, Intangible assets and Capabilities
Knowledge, Skills Employees Equipment Capital
External Market Tests for Resources for Sustained Competitive Advantage
1. Inimitability 2. Durability
3. Appropriability 4. Substitutability
5. Competitive Superiority

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Resource Based View of Organization
1. Core Competencies 2. Capabilities
3. Brand 4. Alliance with Partners
• Potential access to wide variety of Mkt
• Significant contributor to perceived
customer benefits
• Difficult to Imitate
• Technological superiority or Expertise
• A set of business process strategically
understood
• Impacts entire value chain
• Visible to customer
• Capability contributing significantly to
customer’s perceived value
• Driving cost effective solutions
• Means to differentiate over others
• Consistency in delivering superior
performance & functionality
• Brand Equity: brand value which customer
pays importance over other offerings
• Collaborative relationships to leverage
extended resources
• Complementary value props, resources,
geo locations, spread/ reach to market

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Fundamental Value Based Strategies: What Market Perceives as Superior Value?
1. Product Leadership 2. Customer Intimacy
3. Operational Excellence
• Offer leading solutions consistently
• Enhance customer’s usage/ experience
• Continuous innovations, leverage
technology to enhance offerings
• Variety based positioning with multiple
offerings at highest quality
• Efficient target market segmentation
• Adapt offerings to customer’s demands
• Understanding and anticipating changes
in customer's requirement
• Need-based positioning: Tailor activities
for targeted customer, generate value
• Higher Wallet share indicator of
successful customer intimacy
• Efficient delivery model at competitive price
• Leverage operational efficiency to drive lower cost and
better customer experience
• Performing different activities than competition
resulting lower cost delivery model

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Making Effective Go-to-Market Strategy
Go-to-Market Strategy: A Process of creating
‘A fit’ between Customer Needs and Offerings
Org’s
Offerings
Market
Needs
Methodological/ Organized Planning
Disruptive/ Radical Planning
Balance between Methodological & Radical Executions
• Who drives Strategy?
• The purpose that drives strategy
• The methodological and radical approach

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Mediates the disparities between fin performance
& Market place executions
Closer to Market place; Faces Challenges of Execution
Responsible for Financial Performance
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Who Drives it? Top-Down and Bottom Up Planning
Sr. Mgmt
Lower
Mgmt
Middle
Mgmt
• Sets the goal/objective
• Exec sponsor of GTM development & execution
• Measured by Profitability
• Drives importance of strategy into the org
• On-field execution
• Communicates with customer, addresses challenges
• Measured by sales closures, operational execution etc.
• Bridges the gap of executional challenges
• Captures on-field sentiments and builds mitigation plan
• Ensures adaptability of strategic changes
• Strikes balance between momentum and chaos
• Measured by execution on strategic plans, change mgmt etc

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Defining the Purpose of Strategy building
• Scope/Vision and Intent
• Objectives/Goals
• Capabilities
• Business Composition
• Structure/System/Processes
• Resources
• Corporate Competitive Advantages
• Business Definitions
• Progress Report with
Management Systems
• Market & Customer Analysis
• Competitive Analysis
• Objectives/Strategy/Programs
• Fin. Projections
Effective Execution is the KEY!
Corporate Business/Marketing
© Anik Saha

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Corporate Strategy Components
Vision • Direction of Future Growth
• Area of Focus/Diversification
• Responsibilities to Stockholders/Employees
• Extent of Specialization/Technological Innovations
Objectives • Business Objectives
• Performance Measures (Rev/Profitability/EPS)
• Timelines
Business Composition & Capability
• Analyzing Strength/ Distinctive Capabilities
• Single Product or Different Segments
• Build Product/Solution & Market relationships
• Why and how to build Successful SBUs?
Structure/System/Processes & Resources • Business Objective to Org. Structure
• Processes aligned to Structure and business needs
Corporate Competitive Advantage • Is Divestment necessary?
• Organic or Inorganic growth?
© Anik Saha

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Execution of Radical Strategy with Limited Resources
Ambitious Goals Attained Through Radical
Planning & Executions
Organizations Pushed for Radical Strategy gradually settles to build new positioning
Customers
Internal drive or
Interaction with External
Events
Competition
Business Customers
Push for dramatic
change
Organization’s
repositioning
© Anik Saha

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Marketing Strategy Process
Situation Analysis, Market
Sensing, Competition Study
etc.
Marketing Program
Development
Designing Marketing Strategy
Implementing and
Managing/Reviewing
Marketing Strategy Actions
Problem Identification/ Set
The Goal or Objective
© Anik Saha

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Marketing Strategy Process
Strategic Situation Analysis
• Analyze Market dynamics relevant to Problem
• Study on competition
• Segmenting Markets
• Continuous Learning about Markets on
upcoming trends (if any)
Market Vision, Structure and Analysis
• Market Targeting and Strategic Positioning
• Marketing Relationship Strategies
• Devise go-to-market plans and actions
• Planning for New Products (If applicable)
Market-Driven Prog Development
• Strategic Brand Management
• Build Value-Chain, Price & Promotion Strategies
• Strengthen Business Model
• Incentivize stakeholders as applicable
Implementing and Managing Market-Driven Strategy
• Go-to-Market Strategy Implementation and
Control
• Constant review and set corrective actions in
case falling short
Identify Problem and Set Goals/Objectives • Review Business Performance and Identify
Problem
• Set realistic business goals, objectives to fix
problem area
© Anik Saha

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Characteristics of Market Driven Strategies
Business
Goal
BecomeMarket
Oriented
Determine
Distinctive
CapabilitiesAlignCustomer
Needsto
capabilities
Achieve Superior
Performance
• Customer focus
• Insight gathering
• Cross functional coordination
• Diagnosis/ Performance implications
• Align to Org. processes
• Skills/Knowledge
• Coordination of Activities
• Assets
• Market Sensing (Analytics)
• Customer Linking capabilities (CRM)
• Aligning Structure and Processes
Inside OutOutside In
Spanning Process
• Value Capabilities
• Providing value to customer
• Value initiatives
• Customer Value
• Providing Value to customers
• Value Initiatives
© Anik Saha

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The Strategy Implementation Blocks
Step 1: Devise Strategic Priorities to Address Goals/Objectives or Business Problem
Step 2: Build Implementation Plan Aligned to Strategic Priorities
Devise Action
Plans
Assign
Ownership
Time to Complete
Actions
Measurable
Success Criteria
Periodic
Review
Supported by Resources, Capabilities, Competencies or Alliances
© Anik Saha

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Acknowledgement
Buisness Market Management by James C. Anderson &
James A. Narus, Published by Pearson Education
© Anik Saha