Page 130 - MYM 2016

Measuring and Managing Market Alignment Risk
of the business in delivering the value to customers that is promised by the marketing of the company’s brand.
new ones through innovative and pre-emptive strategies. e last two traits provide the cultural leverage to reduce risk and increase pro t. ese seven traits or disciplines are the foundation for managing Market Alignment Risk and marketing plays a crucial role.
is identi es a business’s ability to leverage its
resources and advantages across its organization
to deliver di erentiated value. It highlights the
risks of loss of customers and risin“g costs through
breakdowns in value delivery resulting from lack of
knowledge and collaboration with other functions.
ese risks impact customer a company’s satisfaction, sales growth, pro t
growth and pro tability. competitive
strengths and
risks
By de nition, a compa- ny’s competitive strengths
and weaknesses exist only
in comparison to those of
its competitors. e Market Responsiveness Index (MRI) tool is used to measure relative strengths and weaknesses. e MRI benchmarks as percentiles rather than raw scores on each of the seven cultural behaviors.
By identifying and measur-
ing the business’s strength on
these seven cultural traits, mar- weaknesses exist keters will, through detection only in comparison and preventative action, reduce to those of its
market alignment risk and
increase pro tability. A business
must have the rst ve traits competitors.
above to embed customer-cen-
tric behaviors across an organization. Customer
insight and foresight are at the heart of customer
centricity and risks associated with customer losses
and gains. Competitor insight and foresight provide
the capability to retain and gain new customers
against competitors. Peripheral vision provides the
capability to defend existing businesses and create
Step 2: risk assessment: Measure, benchmark and detect Market alignment
e MRI measurement tool uses a survey com- pleted by all relevant sta in a company or in one or more business units. e result is a snapshot
of where the overall company and each business unit stand in terms of their alignment with current and future customer needs compared with a large number of similar businesses. is measurement
tool, and how it was developed, is described in detail in e Customer Cul- ture Imperative
Customer insight and foresight are
at the heart of risks associated with customer losses and gains, while competitor insight and foresight allow businesses to retain and gain new customers.
130 | MINd YOUr MarkETING OCTOBEr 2016