Nexus

Nexus Between
Between Market
Market
Driving
Driving and
and Customer
Customer
Orientation
Orientation

Mukhtar
Mukhtar Halliru
Halliru
Department
Department of
of Business
BusinessAdmin
Admin and
and
Entrepreneurship.
Entrepreneurship.
Bayero
Bayero University
University Kano
Kano
 Background
 Value creation and value
appropriation are connected in the
discourse and practice of marketing
 Invisible antennas help feel the
market and get signals required to aid
understanding customer needs, value
expectation and how it should be
delivered.
 Background…
 Success or failure of marketers is
determined by control
mechanism inherent in the
market
 The customer is the business as
argued by both Peter Drucker
and Theodore Levitt
Marketing Concept and Market Orientation

 The main thrust of the marketing

concept is the premise that
determination of needs and wants are
central to organizational success
 Market orientation has a positive
correlation with new product / service
success
 So what is “Market Orientation”?
Marketing Concept and Market Orientation

 Withinthis framework,
organizations can either be
“market driven” or better
choose to engage in “market
driving”.
 Market Driven Behaviour

 Responding to the needs of the

customer i.e. being reactive.
 Existing markets: For example, LG is
able to attract and retain customers
due to its good feedback mechanism
and the fact that their products evolve
and are quite dynamic.
 Market Driven Behaviour…

 Learning from the customer and there is

heavy reliance on marketing research
 In essence market driven behaviour
centers on following the customer and
keeping abreast of competition
 Market Driving Behaviour

 Leading the customer in new directions

i.e. being proactive
 When market does not exist or is being
radically redefined and the competitive
rules are being changed
 The firm strives to change the structure,
preferences and behaviours of all
market stakeholders
Market Driving Behaviour…

 In essence there could be fundamental

market modification and creation of a
new market
 There is high levels of learning on the
part of various members of the value
chain since they are exposed to a new
competitive landscape and leap in value
proposition
Market Driving Behaviour…
 Initially, there is need to learn from the
customer plus industry participants and
embark on marketing research to
understand how the value chain works
 The main thrust of market driving
behaviour centers on ability to teach
and expose all stakeholders to
completely different needs and
preferences
 Distinguishing Market Driven and Market
Driving
Characteristic Market-Driven Market-Driving

Focus Customer Industry participants

Customer Needs Expressed / Observed Expressed / Latent

Behaviour Towards Customer led, reactive, Create new customers,

Customer proactive

Behaviour Towards Competitor positioning Competition, alliances, and

Competitors cooperation

Market Behaviour Learning, understanding Proactively change

and responding to perceptions and behaviour
stakeholders of stakeholders
Distinguishing Market Driven and Market
Driving
Characteristic Market-Driven Market-Driving

Marketing Objectives Superior ability to Quantum leap increase

understand, satisfy and in value proposition
retain valuable
customers
Marketing Strategy Differentiation, Entrepreneurial mindset,
segmentation, targeting, opportunity focus
positioning
Capabilities Inside out Outside in

Innovation Focus Incremental, Radical, disruptive

dynamically continuous innovation
 Jaworski, Kohli and Sahay (2000)

Drive market either by,

 Modifying market structure or

 Modifying market behaviour

Why will this appeal to you?
Why will this appeal to you?
Modifying Market Structure
 Deconstruction: Eliminate players in the value
chain which enables one provide superior value
– (Startimes, Multichoice, Co Location, INT and
IHS Towers Limited)
 Construction: Adding new players to the value
chain – VTU, Easy recharge, e-top up in
telephony
 Functional: Change market player functions:
Dangote owns sugar plantation in Numan
(Backward integration). Gaskiya textile used to
own distribution stores (Forward integration).
Modifying Market Behaviour
 Directly:
 Building customer constraints – e.g.
fixed shopping routes
 Removing customer constraints –
access to price comparison and
customers- examples searching for
private property to buy –
www.privateproperty.com.ng; olx.com
Modifying Market Behaviour…

 Building competitor constraints –. Mobile

Electricity: New technology, MTN in
partnership with Lumos – exclusively for
MTN subscribers..
Modifying Market Behaviour…

 Remove constraints through technology,

lobbying or influencing legislation –
Blackberry and BBM provision, SMS rate,
Mobile Number Portability in GSM
 In 2 years, 452,107 lines ported
 Etisalat 28,164 out, 92,946 in
 MTN 96,496 out, 16,434 in

NCC 2016 Report

Modifying Market Behaviour…
 Indirectly:
 Create new preference- introduce new
concept/benefit to existing product
(Digital camera as against use of film;
Blackberry –phone and browser)
 Exploit existing preference by changing
from negative to positive evaluation of
product (Sunlight, Adidas etc)
Modifying Market Behaviour…

 New competitor preference – Glo’s

Unique Selling Proposition – Pay by the
second strategy
 Reverse existing preference

Etisalat entry strategy of number selection

Negotiating Commission on Turnover
(COT) in banks
Kumar, Schear and Kotler (2000)

 Leap in customer value proposition –

either from superior marketing or
technological capabilities. Sony drove
markets in videos –betamax; walkman;
floppy disks; video game etc.
 Unique business system – mode of
service delivery.
Carrillat, Jaramillo and Locander (2004)

 Transformational leadership
Bill Hewlett and Dave Packard put
a leadership system in place which
provided FOUR guiding principles
for the company (HP) considered
to be one of the most successful
companies.
HPs Guiding Principles “Four Musts”

1. MUST attain profitable growth

2. MUST make its profits through
technological contribution
3. MUST recognize and respect
personal worth of employees, and
allow them to share in the success
of the company
4. MUST operate as a responsible
citizen of the general community
GT Bank Visionary Leadership

Adefola Adeola

Late Olutayo Aderinokun

 GT Bank Orange Rules
Simplicity We are straightforward, direct and easy to deal
with, making the complex uncomplicated.
Complexity leads to confusion, discouragement and
a feeling of helplessness.
Simplicity brings clarity, understanding and
progress

Service Our major strength, we're constantly improving on

our ability to delight our customers.
Lend a hand. Be there when you're needed. Bend
over backwards to please and serve.

Excellence We stand out from the crowd, always refreshing,

always beyond the ordinary. Excellence is the
ability to strive for the best, never to settle for
average. It is being best in class, a benchmark, an
inspiration
 GT Bank Orange Rules
Social We care, we believe in building and
Responsibility sharing for the good of all. Give back to
society.

Professionalism We are thorough and efficient, always

inspiring confidence. People have
tremendous respect for professionals.
They are relied on, trusted and believed
in.
Friendliness We enjoy working together to fulfill customers'
needs, building mutually rewarding relationships.
Unfriendliness is often seen as a sign of
disrespect.
But a friendly person warms the heart and is a
pleasure to do business with.
 GT Bank Orange Rules
Trustworthiness We are reliable, what we say is what we
do; trust us to always do what is right. Be
honest.
Be trusted with information and money Be
a confidant
Innovation We evoke inspiration and respect, our
originality is second to none, we are bold,
classy and always setting the pace. Tread a
fresh path. Chart a bold new course. Set the
standard. Become the yardstick
Carrillat, Jaramillo and Locander (2004)

Intellectual stimulation:
encourage followers to re-
examine assumptions about
their work and find ways of
improving performance. Could
achieve this by fostering
creativity:
Carrillat, Jaramillo and Locander
(2004)
 Organizational culture – values and norms
within context of organization
 Ford Motors – People and products ahead
of profits (In essence, the following are
central: Quality improvement; employee
involvement and customer satisfaction)
 SPDC Experience and culture change
 Warren Edward Buffet, CEO Berkshire Hathaway,
Omaha compare with UBA of 1997 and GT Bank
 GT Bank Executive Teller, MTN Back to shop/floor
Carrillat, Jaramillo and Locander
(2004)

 Capacity to innovate through

interactive learning –first from
market then get them to learn
from you
Customers easily get bored and
desire new things
 Innovation…
Conventional wisdom is an
enemy of innovation.
Organizations need to move
against the tide.
Consider the following:
 CNN and Starcomms
 Innovation: Learn and then Teach
Traditional Rosary Digital Rosary
 GT Bank Innovation
 Provision of shields at ATMs to protect PIN
 ATMs with cash deposit provision
 Drive through banking and GT Bank on wheels
 First to issue Naira denominated mastercard
 Exploited correspondence bank in Nigeria (Habib)
 Fast track for deposits and withdrawals
 Postage stamp launched by NIPOST to mark the
bank’s 20th anniversary
 First Nigerian company to be treated as a case study at
Harvard Business School
GT Bank Innovation: Brick ?
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Major Requirements for Innovation
 Be sure to hire the correct
employees with passion and fit
 Generate data base of customers
and make best use of such data
 Evaluate customer satisfaction on a
regularly basis