Summary: Closing The Marketing Capabilities Gap A3Mcm

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• 2 A Widening Gap: recognising the gap

• The article speaks of a 'widening gap', what is the cause of this gap between the market and the capabilities of the organisations?

  It is caused by the fast moving complexity of demands of the markets and the size, capacity, of marketing organisations to understand and cope with this complexity.

• What does the gap, due to 'the disruptive effects of technology-empowered customers' demand from marketing organisations?

  New thinking about marketing capabilities.

• What is the 'widening gap' costing firms?

  1. Now: profitability; 
     
  2. Future: competitiveness.

• What is market fragmentation? And give an example of forces of such fragmentation.

  It is when many organisations offer a specific product or service. An example would be traditional communication vehicles, phone market.

• What is a suggestive evidence of the reason why companies cannot keep up with market complexity?

  Due to an overload of data - information, it is difficult for organisations to make decisions, to process the data and prioritise tasks resulting in them not being able to keep up with market complexity.

• 2.1 Barriers to Adapting

• Organisational rigidities is named by the authors as one of the barriers to adapting. Organisational rigidities means that an organisation holds on to a capability that once was a succes, but now has reached the point of being obsolete. Name 3 reasons why this prevents an organisation from exploring and innovating?

  1. 'Path dependency and lock-in': capabilities are created through path-dependent learning experiences, however, such experiences are held on too long which will eventually lead to organisations no longer being open to other approaches.
  2. 'Inertia (traagheid)and complacency (zelfgenoegzaamheid)': mastering the use of an activity takes away the 'necessary sensing, experimentation and exploration' that is the core of a 'dynamic capability'.
  3. 'Structural insularity': even though specialisation and focus has many benefits, an organisation with (isolated ) silo's (metaphor of the authors) prohibits inter-functional dialogue and learning which leads to new ideas.

• What is a multiplier effect of the widening gap between the complexity of markets and the companies?

  There are not enough highly qualified people to fulfil important positions within the organisations

• Even if an organisation would have the necessary employees who would be able to keep up with the growing market they most likely cannot use this efficiently, why would companies most likely still not be able to fill the gap?

  Because the marketing capabilities are not growing proportional with the challenge.

• 3.1 Dynamic Capabilities Theory

• What does the Dynamic Capability focus on?

  It is the capacity to which a firm can create, extend or change (modify) the resource base. Allows firms to stay in line with market changes and ahead of competition.

• 3.2 Are Marketing Capabilities Dynamic?

• What is the relation between Market Orientation and a dynamic firm?

  Market Orientation liberates capabilities - as it focuses on the alignment of bringing resources into action and the market - which leads to it making a firm dynamic.