Market-Driving Strategies: Turning trials into triumphs

MANILA, Philippines - In the teaser for the latest seminar series his company hosts, marketing guru Josiah Go talks about “market-driving strategies” — a breakthrough approach in winning new customers in times of crisis.

Go, chairman and chief marketing strategist of Mansmith and Fielders Inc., points out that as a relatively new concept in the Philippines, these market-driving strategies could greatly aid companies, specially those struggling in the face of a worldwide recession, to reinvent their businesses.

“Market-driving strategies – as opposed to market-driven strategies – involve the latest development in the marketing discipline. It is regarded as the fourth major type of marketing orientation after sales driven, market-driven and customer-driven orientation,” he notes.

“Unfortunately, most companies are still practicing their traditional ways, still trapped in their old paradigm of customer satisfaction. Instead of focusing on customers, firms must now add another dimension, which focuses on marginal and non-customers. This is where market-driving strategies come into the picture,” Go points out.

He cites the success of Minute Clinic in the US, a quick-stop medical clinic chain that capitalizes on convenience and cost-effectiveness without compromising quality. Targeting patients in self-medication and limiting itself to common family diseases, it has attracted new customers who do not want to wait long for a doctor’s appointment.

“Instead of a long queue and appointment in the doctor’s office, a patient walks in and out within 15 minutes. Instead of a doctor’s office, it locates itself beside drugstores. Instead of following the doctor’s weekday office time, it is open daily. As you can see, instead of patients doing self-medication or consulting their parents or friends, new demand is created by those who want faster, cheaper health services without compromising quality,” Go points out.

Market-driving strategies, he explains, has three pillars. One is value creation, whereby instead of following the traditional logic of industry, firms can learn from the logic of strategy by being different instead of merely being better, breaking industry rules by redefining both the value proposition and marketing activities.

Another is creating new demand, where instead of targeting existing customers and use simplistic brand switching strategies, marginal and non-customers are the ones targeted. This expands the market and/or increase consumption so companies can thrive even in a downturn economy.  

Lastly, instead of focusing on the existing business system, a thorough review of the firm’s end-to-end value chain is included for greater sustainable advantage, bringing back strategic thinking to marketers instead of being trapped in the day-to-day tactical side of the marketing mix. 

“It is possible for firms to increase revenues and profit for 2009 if they know this game-changing innovation and breakthrough marketing thinking with emphasis on business system,” Go notes.

The market-driving strategies will be one of the main topics to be tackled on the “Marketing Breakthroughs Forum” which will be held on March 24-25, 2009 from 1:30 to 5:30 p.m. at the ballroom of the Crown Plaza Hotel in Ortigas with the theme “From Trials to Triumphs”.