Distinctive Capabilities

A close examination of a market-driven firm will reveal two particularly important capabilities: market sensing and customer linking. First, the market-sensing capability concerns how well the organization is equipped to continuously sense changes in its markets and to anticipate customer responses to marketing programs. Market-driven firms spot market changes and react well in advance of their compititors. Second, the customer-linking capability comprises the particular skills, abilities, and processes that an organization has developed to create and manage close customer relationships.

Customer-goods firms demonstrate these capabilities in working with powerful retailers, multifunctional teams in both organizations work together by sharing delivery and product movement information and by jointly planning promotional activity and product changing. While evident in manufacturer-reseller relations in the consumer-goods market, strong customer-linking capabilities are crucial in the business market where close buyer-seller relationships prevail.

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