Driving markets: A typology and a seven-step approach

• Published in: Industrial marketing management 2020-11, Vol.91, p.142-151
• Main Authors: Jaworski, Bernard J., Kohli, Ajay K., Sarin, Shikhar
• Format: Article
• Language: English
• Subjects: Driving markets; Innovation marketing; market orientation; Market-driving strategy
• ISSN: 0019-8501; 1873-2062
• DOI: 10.1016/j.indmarman.2020.08.018

We identify four distinct market-driving processes based on the level of the entity driving the market and the type of change being driven: The Pied Piper; the Guild; the Evangelist; and the Apostles. Following this, we describe a seven-step approach for the Pied Piper process (individual firm driving functional change). The approach builds on prior work on driving markets, and introduces the concept of staggered waves of target customers and ecosystems. In addition, it introduces the role of potential obstructers and calls for developing plans to counter them prior to implementing a market-driving effort. Briefly, the seven-step process includes: (1) articulation of a value proposition for a fairly well-defined set of customers, (2) developing a vision of the ecosystem for delivering the proposed value to target customers, (3) stress testing the value proposition, target customers and ecosystem vision against macro trends and industry forces, (4) identifying “wave 1” customers, ecosystem actors, and potential obstructers, (5) developing a give-get matrix for the “wave 1” customers and ecosystem actors, a go-to-market plan that also addresses potential obstructers, (6) implementing the “wave 1” plan with agility, (7) cascading to subsequent waves of customers, ecosystem actors, and potential obstructers. •Develops a four-fold typology of market-driving processes based whether they are (a) Individualistic vs. Collaborative and (b) focus on Functional vs. Cultural changes.•Describes a seven-step approach for the one of the four market-driving processes—the Pied Piper process (individual firm driving functional change).•Illustrates the seven-step approach for driving markets using two B2B case studies.