Company X is one of the fastest growing and technologically innovative companies in Korea. The company became a leader in the high-tech equipment industry, supplying smart factories around the world with over 50-60% of global market share through its main business line. The company did not want to slow down. They were aggressively investing into new product lines, products for new market segments, and expanding sales into more countries (primarily the US market) to become a $1 billion company in the near future. How does Company X reach this ambitious growth goal?
For an ambitious fast-moving innovator, international expansion was critical. However, what worked for them in the past, would not take them into the future. Company X needed a fast track for growth. BDMT Global partnered with them to help adopt the best practices needed to sustain its growth rate and improve its ability to attract prospects with unmet needs outside of its customer base. By helping the company to transform from a product-driven company to market-driven one, they were able to prepare this quickly and strategically.
How is the market-driven approach different from product-driven approach? Why is marketing transformation urgent and critical for a company’s growth in the global market?
Don’t find customers for your products, find products for your customers.
Product-driven companies build products to find markets for them. They use their own expertise to fill a gap or reach a new customer base. It is a short-term strategy that can move a company forward in big steps but makes it difficult to compete in more mature markets.
Market-driven companies build products that many prospects want to buy. Seth Godin says, “Don’t find customers for your products, find products for your customers.” Companies usually benefit from consistent growth and strong customer/partner relationships because this approach requires knowing their market, customers, and the competition to filter out unnecessary requests and focus on products that can be successful.
Focus on what problems your company solves in the market you are in.
Market-driven companies monitor competitors, new emerging technologies, and market changes. The companies analyze market intelligence, and use it in both their long-term and daily decision-making.
After Intel completed its transformation from a product-driven to a market-driven and customer-centric organization and focused on market and customers’ needs, it greatly increased its revenue, customer satisfaction, and loyalty as well as brand equity dramatically.
Pay attention to demands from the market (not just your customers)
Collecting needs from customers and prospects is a good start. Asking customers what they want during the sales-process is not listening to the market. Nokia had over 40% of the global market for mobile phones in 2003. Unfortunately for Nokia, the market shifted significantly in smart phone preferences (e.g. touch screens). Obtaining strong market knowledge and implementing the best organizational planning and practices to be driven by and aligned with the external market forces is critical.