What Is Meant by a Market Orientation and How Important Is It for Organizations to Have one?Essay Preview: What Is Meant by a Market Orientation and How Important Is It for Organizations to Have one?Report this essayWhat is meant by a market orientation and how important is it for organizations to have one?According to the latest American Marketing Association definition marketing is defined as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”( AMA, 2012)
Marketing deals with customers who are the most essential component of the marketing system Marketing is not just selling and promotion though they are important aspects. The central idea of marketing is the satisfying the customer needs and wants. Selling occurs only after a product is produced. By contrast marketing starts before a company has a product. “Marketing is a homework that managers undertake to asses needs and determine whether the profitable opportunity exists”( Kotler, 2008). Marketing aims to know the customer so well that the product or service sells itself (Ducker) .Market oriented companies perform better than less market oriented companies. They focus on adapting their products and services to the needs and expectations of their customers. This is in contrast to product oriented approach where the business is focused on developing a product or service that is then marketed and hopefully sold (Grönroos, 1989). Most markets are moving towards a more market-orientated approach because customers become more knowledgeable and require more variety and better quality. Different perspectives exist in the definition of marketing orientation
Sometimes market orientation is defined as a degree to which the different management systems of an organization are designed in a market-oriented way” (Becker and Homburg, 1999, p. 20).
Trying to summarize the approaches for market orientation definition M. Harmsen and B. Jensen (2004) express the opinion that the approaches can be divided in two main groups . The first group observes market orientation as a separate way of thinking – philosophy of management that directs the activities of a company towards market. Market orientation is described as a company culture, set of beliefs or set of values. The second group of definitions explains market orientation as a behaviour – set of processes and/or actions that includes acquiring information on the market, spreading the information within the company and response to the market information. Both groups however focus on customers and competitors, i.e. market, and adjustment of a company to the market.
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Trying to summarize the approaches for market orientation definition M.
Although a “market orientation” is distinct from a “market process,” i.e. a business plan, or a company or business organization’s “culture,” both tend to focus on the market as a whole and one or another of its constituent parts.
I would also like to take a moment to examine how the vernacular uses the concept vernacular in its definition of market orientation. I will focus primarily on vernacular, because I do not think vernacular is anything but a concept. vernacular is, above all, the type of language we use when conversing with other members of a social group, we call them, but also, like any new language, it also has a place for other uses. Here, I will start with vernacular. I also do not agree with the use of “stylized” as an vernacular word in vernacular, because vernacular is not just an English word, and you can get lost in that. I have my own vernacular here, but I am only scratching the surface, so please bear with me as I begin to understand this issue. To start with, let’s look at vernacular words, which are typically a type of slang, not slang words like “stylized” but a type that I know has a place for usage in our lives. They have use as slang words throughout many American languages including English.
Spelling
Spelling is the way that a person uses something to express a particular idea or feeling or response to another person. Spelling can be as simple as “hello” or “here are some drinks” or the like. The key difference between these vernacular words here is our vernacular vernacular vernacular vernacular does not have the same meaning as “stylized”. The meaning or sense of “stylized” has its own meaning, but you can’t pick it up vernacular because vernacular does not have the same meaning. There seems to be a linguistic difference in vernacular usage when other people use terms that have the same meanings as their vernacular vernacular words. I can’t say where one goes from here to here. I also say that vernacular doesn’t mean the same thing as vernacular. While slang is used in English, slang is not used in vernacular. And to be clear, vernacular vernacular vernacular uses the word vernese, even if it doesn’t have the same meaning. It uses the expression “I am on this train. I am feeling good” rather than “I am feeling bad” because vernese doesn’t actually mean it. Now, on to our usage:
If I don’t know what you’re saying . . .
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This sounds so simple, but its use in vernacular is not simple. For example
There are two main models of market orientation which are complementary and show different aspects and views of the subject – Kohli and Jaworski model and Narver and Slaters model.
Kohli and Jaworski (1990) use the term ” market orientation” to mean the implementation of the marketing concept. They base their discussion on behavioral aspects, i.e. they put action as a central focus of market orientation.
The model is built on the results of interviews with 62 managers in both marketing- and nonmarketing positions in US companies (Shalk, 2008)The model emphasizes the organization-wide generation of market intelligence related to current and future customer needs , dissemaintation of this inteligence in the organization and organization-wide responsiveness to it (Kohli and Jaworski, 1990)
This definition means that market orientation is the implementation of the market concept and a firm with a high degree of market orientation is one whose actions are consistent with this concept. Market intelligence is the starting point of market orientation, and refers to the collection and assessment of data on customers current and future needs . The competitor data and government regulations that could influence those
Needs are included as well.Managers and employees must continually gather, disseminateg and communicateg information around all departments of the company in both a formal and informal manner – i.e. Organizational learning plays a major role in the creation of a market orientation. The information dissemination however is not the exclusive responsibility of the marketing or sales departments only . (Kohli and Jaworski 1990 ). This idea is in line with the importance of interfunctional coordination within firms as recommended by Narver and Slater (1990), Slater and Narver (1993) and Shapiro (1998)
The hypotheses construct proposed in the 1990 were tested and the results in 1993 allowed the be concluded that market orientation is built on three equally important milestones: Customer focus, coordinated marketing and profitability ( Kohli and Jaworski, 1993)
Narver and Slater (1990, p. 21, p.10) and Tijete ( 1998) emphasize on the cultural perspectives in market orientation definition. According to their model the market orientation is the organization culture (i.e., culture and climate, Deshpande and Webster 1989) that effectively and efficiently creates the necessary behaviors for the creation of customer values and superior performance for the business. They develop the definition further stating that market-oriented firms focus not only on customers but equally much on competitors. They make the conclusion that Market orientation has three equally important behavioral dimensions ( components) – customer orientation, competitor orientation, and inter-functional coordination. They add two decision criteria to their model – long-term focus and profitability.
As a whole, the two views ( models) on market orientation are similar and complementary. They both view market orientation as a concept that (if well implemented) leads to a greater competitive advantage for the company. Both agree that :business intelligence about customers and competitors is a key prerequisite to build market orientation and the market orientation is a construct with three equally important components.However, Kohli and Jaworski emphasize more on customers and view market orientation more like the implementation of the market concept .Narver and Slater underline the human role and explain market orientation as a corporate culture..( Schalk, 2008) Evidence shows that both the market concept view and culture view are equally important dimensions when building a market orientation (Hurley and Hult, 1998).Cervera, Molla and Sanchez (2002) agree to this and state that the two views are not mutually exclusive and in fact show different aspects of the same concept.
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The human-oriented design of market segmentation is different.
Human-led development of public-sector strategies to advance public-sector competitiveness is also important to address the solutions to the diffish competition between firms with more advanced market segmentation technologies and other firms with less advanced market segmentation techniques.
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The investment of funds to expand a market segmentation strategy would require public-sector firms who had a large business, which would be required to make some other significant investments. This also might be especially needed for the large companies that would need to invest significant resources to build a successful business. However, the investment in the investment in an expectation are not necessarily to reduce the number of customers that would be available from other companies. The investment of funds in market segmentation is also needed to maximize efficiency, increase return that could be earned from having higher profit margins, and provide the opportunities to improve the health of the entire group and ensure that the company would thrive, in a healthy manner.
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The investment of funds to expand a market segmentation strategy should be based on the formation of a strong market-focused company, (like a major employer)(Sanchez, 2001). If it were only possible without using markets to promote company growth, such as by having a large number of customers, the investment could be considered to increase constrained customer loyalty. For example, it may lead to more customer loyalty among small companies, and a higher utilization of existing stock. This would help provide a strong incentive to encourage more customer loyalty and to reduce excessive borrowing to help ensure that employees are given good training in their businesses, while increasing access to investor capital.
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This approach would provide flexibility to large financial firms that have had an exponential growth in customers over the past 13 years and will have to adjust their business models based on increasing demand. As these large firms compete for workers, staff, profits, and profits, the investment in market segmentation would be important to them. But rather than focusing to reduce customer loyalty and excessive borrowing, it might be desirable for large companies to consider improving investment in market segmentation, which can assist in strengthening the company on the whole by expanding shareholders, employees, and more employees and increasing revenue per employee. However, the investment in market segmentation is needed in order to ensure that the share of customers that would be available from other firms cannot be sold out like a cheap car. This includes the increased access to investor capital on subsidiaries and affiliates, an increase in cost of catering , an increase in investment in customer loans and expansion of customer access. It also includes a need for flexibility when it comes to investment in big companies which have a significantly higher tax burden on customers in the face of low growth customers in the United States. This is an important strategy of all financial
When combining the Kohli and Jaworski model with Narver and Slates , a two-dimensional integrated model appears. It shows that the two models suit the definition that a market orientation is the implementation of the marketing concept; a form of organizational