3.4 Closing the Marketing Capabilities Gap

Question 1

The marketing capability gap is the difference between

Answer 1

resources required (market complexity and velocity) and resources available (heterogeneity and adaptability of marketing capabilities.

Question 2

To close the widening gap between the accelerating complexity of the markets and the limited ability of the organization to respond, we need new thinking about marketing capabilities. Three adaptive capabilities are needed:

Answer 2

1. Vigilant marketing learning 2. Adaptive market experimentation3. Open marketing

Question 3

1. Vigilant marketing learning

Answer 3

enhances deep market insights with an advance warning system to anticipate market changes and unmet needs

Question 4

2. Adaptive market experimentation

Answer 4

that continuously learns from experiments (Homburg capabilities)

Question 5

3. Open marketing

Answer 5

that forges relationships with those at the forefront of new media and social networking technologies ad mobilizes the skills of current partners (Marketing network/network paradigm)

Question 6

adaptive versus dynamic marketing capabilities
What is the difference?

Answer 6

Adaptive capabilities are proactive instead of reactive.

Question 6

adaptive versus dynamic marketing capabilities
What is the difference?

Answer 6

Adaptive capabilities are proactive instead of reactive.

Question 7

Inside-out approach to strategy: 2

Answer 7

• Resource-based view of the firm- Dynamic capabilities

Question 8

• Resource-based view of the firm

Answer 8

scarce, inimitable, and valuable resources exist to be used, and the task of management is to improve and fully exploit these resources

Question 9

• Dynamic capabilities

Answer 9

Define managerial traits, management systems, and organizational design that will keep the organization alert to opportunities and threats, enable it to execute on new opportunities, and then constantly morph to stay on top.

Question 10

Outside-in approach to strategy  market as a starting point 2

Answer 10

• Capabilities of market-driven organizations - Adaptive marketing capabilities

Question 11

• Capabilities of market-driven organizations

Answer 11

: emphasize the exploitative use of existing assets through the coordination of activities.

Question 12

• Adaptive marketing capabilities

Answer 12

driven by necessity and enabled by technology advances.
Which of the capabilities is more important? You need all of them so a mix!

Question 13

What new marketing capabilities will be needed? How will they be built? How will they help make the entire organization more adaptive? 3 steps

Answer 13

1. First, organizations need to acquire or enhance their adaptive marketing capabilities (vigilant market learning, adaptive experimentation, and open marketing).
2. Second, these capabilities have greater leverage when they are used by an adaptive business model and housed in a supportive organization that has a robust market orientation and is structured to be aligned with the market.
3. Third, the familiar marketing-mix capabilities must become more dynamic and supportive of an adaptive strategy