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Market-driven versus driving markets

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Abstract

The purpose of this article is to discuss two approaches to being market oriented—a market-driven approach and a driving-markets approach.Market driven refers to a business orientation that is based on understanding and reacting to the preferences and behaviors of players within a given market structure.Driving markets, on the other hand, implies influencing the structure of the market and/or the behavior(s) of market players in a direction that enhances the competitive position of the business. There are three generic ways of changing the structure of a market: (1) eliminating players in a market (deconstruction approach), (2) building a new or modified set of players in a market (construction approach), and (3) changing the functions performed by players (functional modification approach). Market behavior can be modified directly or, alternatively, indirectly by changing the mind-set of market players (e.g., customers, competitors, and other stakeholders).

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The Monitor Company

Bernard Jaworski is the Markets Chair at the Monitor Company. He has researched and taught extensively in the areas of brand management, marketing control, market orientation, and marketing strategy. He obtained his Ph.D. from the University of Pittsburgh and has taught at Arizona and the University of Southern California.

Ajay K. Kohli is the Isaac Hopkins Chair of Marketing in the Goizueta Business School at Emory University. A widely cited scholar, his areas of interest include market orientation, sales force management, and marketing strategy. He obtained his Ph.D. from the University of Pittsburgh and taught at the University of Texas before moving to Emory.

Arvind Sahay is an assistant professor of marketing and international business at the London Business School. He has published in the areas of technology marketing, international marketing, E-commerce, and marketing strategy. He obtained his Ph.D. form the University of Texas.

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Jaworski, B., Kohli, A.K. & Sahay, A. Market-driven versus driving markets. J. of the Acad. Mark. Sci. 28, 45–54 (2000). https://doi.org/10.1177/0092070300281005

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