The Market Driven Organization Understanding, Attracting, and Keeping Valuable Customers

For forty years managers have been exhorted to "stay close to the customer and ahead of the competition." And with good reason Research now shows that market driven organizations outperform their rivals. Given the obvious benefits, why do so many companies fail to become market driven? Because their internal processes, structures, incentives, and controls get in the way, says George Day, one of the world's leading authorities on mar keting Strategy. Building on his pathbreaking bookMarket Driven Strategyand a decade of experience in coaching firms to deliver superior customer value, Day presents for the first time a battle tested hame work for creating the market-driven organization.In eminently readable prose, Day argues that in successful market driven organizations, three key elements -- capabilities, culture, and configuration -- are aligned to the market. Day explores the distinctive market sensing and market relating capabilities that are at the heart of the market-driven companies. He draws on examples of such market-driven firms as Intuit, Wal-Mart, Virgin Airlines, Disney, and Gillette to illustrate how intimate knowledge of their customers and markets gives these firms a powerful advantage over rivals. By contrast, Day shows how failure to align the organization to the market can result in such mishaps as IBM's loss of leadership of the computer market or Motorola's stumble in shifting from analog to digital cellular phone systems.Using case studies of Owens Corning, Sears, and the Eurotunnel, Day provides a concise roadmap to managers who want to strengthen the orientation of their organizations to the market. He concludes with a detailed diagnostic questionnaire to help managers assess their own progress Here at last are all the insights and tools necessary to construct a company with superior skills for understanding, attracting, and keeping valuable customers.

George S. Day holds the Geoffrey T. Boisi Professorship in the Department of Marketing and is Director of the Huntsman Center for Global Competition and Innovation at the Wharton School of the University of Pennsylvania. Professor Day has written more than 125 articles for leading marketing and management journals and fourteen books including Market Driven Strategy, the companion volume to this book. A consultant to leading corporations worldwide, Day is the recipient of the Charles Coolidge Parlin Award for his leadership in the field of marketing and the Paul D. Converse Award for outstanding contributions to the development of the science of marketing. He lives in Bryn Mawr, Pennsylvania.

Contents Introduction: Move to the MarketPart IUnderstanding Market Orientation1. What It Means to Be Market DrivenUnderstanding the Orientation to the MarketAdvantages of a Market OrientationIs Being Market Driven for Everyone?Staying Ahead in Turbulent MarketsMarket Driven Winners2. Misconceptions About Market OrientationWhy Don't More Firms Become Market Driven?Superior to the MarketAvoiding the Pitfalls3. Market Driven CulturesMarket Driven CulturesUnderstanding the CultureSummary: The Defining Role of Culture4. Configuring Around CapabilitiesCulture, Capabilities and ProcessesIdentifying CapabilitiesManaging CapabilitiesIntegrating Culture and Capabilities: How Virgin AtlanticFlies on All EnginesToward a New Concept of the OrganizationPart IIBuilding the Capabilities5. Market SensingSensing the MarketSense MakingImproving Market SensingThe Collective Memory6. The Shared Knowledge BaseSynergistic Information DistributionConverting Information Into Strategic KnowledgeRetaining Knowledge7. Market RelatingRelating for AdvantageBuilding Relationships with the MarketThe Spectrum of RelationshipsSummary: Rethinking Market Relationships8. Competing for Customer RelationshipsCustomer Responsive StrategiesExploiting InteractivitySummary9. Collaborative PartneringPartnering with CustomersChannel BondingSummary: The Advantages of Collaborative PartneringPart IIIAligning the Organization to the Market10. Reshaping the OrganizationTrade-offs and the Search for Optimal DesignThe Emergence of Hybrid OrganizationsWhat Role for Marketing?Achieving Closer Alignment to the Market11. Setting the DirectionMarket Driven Strategic ThinkingThe Capability for Thinking Strategically12. Guiding the ChangeThree Stories of TransformationDesigning the Change ProcessThe Six ConditionsConclusion: Answering the Call to the MarketAppendix:Is Your Organization Market Driven?AcknowledgmentsNotesIndex