Market Orientation

Examples of Market Orientation in the following topics:

• Marketing Orientation

  • Kohli in the "Journal of Marketing", marketing orientation is the, "The organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments and organization wide responsiveness to it. "
  • Marketing-oriented companies revolve around internal business processes that gather, synthesize, and package market intelligence into integrated marketing communications programs (i.e., advertising campaign, new product launch, promotional offer, etc.).
  • Competitive analysis is also a significant component of market orientation.
  • Since its introduction, marketing orientation has been reformulated and repackaged under numerous names including customer orientation, marketing philosophy, and customer intimacy.
  • As stated, the most important focus in a market-orientated business is the customer.

• Generating Needs

  • Prospecting starts with defining a narrow target market, identifying the customer's wants, and then offering custom solutions.
  • Where the potential market is very wide, there are significant advantages to limiting oneself to just one or two specialized market segments.
  • Having decided on a specific market, the salesperson should try to limit their prospecting to remain within that market.
  • lack of sufficient research and market knowledge to produce market-proved ideas.
  • Further communication with consumers validate the final definition of a market-based product or service.

• The History of the Marketing Concept

  • The marketing concept has evolved through many different definitions over time.
  • One marketing standard chronology (Bartels, 1974; Dawson, 1969; Keith, 1960; Kotler and Keller, 2006) subdivides marketing history as follows:
  • Throughout history, marketing has changed considerably in conjunction with consumer tastes.
  • Marketing: needs and wants of customers 1970 to present day; the marketing orientation is perhaps the most common orientation used in contemporary marketing.
  • It involves a firm essentially basing its marketing plans around the marketing concept; and thus supplying products to suit new consumer tastes.

• Product Orientation

  • Similar to production orientation, the product orientation of marketing focuses solely on the product a company intends to sell.
  • As soon as a competing company can offer a product more oriented to the satisfaction of customers' needs and desires, the companies undertaking product orientation will lose most if not all of its market share.
  • Companies adopting a product orientation of marketing focus on product quality and therefore emphasize research and development.
  • Describe the basis for a company using product orientation as its marketing premise

• Selling Orientation

  • Approaching marketing with a selling orientation was popular for companies in the 1950s and 1960s.
  • A marketing orientation centered around sales represented a major milestone in modern business.
  • In today's realm of marketing, selling has developed into a holistic business system required to effectively develop, manage, enable, and execute a mutually beneficial, interpersonal exchange of goods and services for equitable value.

• Production Orientation

  • The evolution from production-oriented organizations to marketing-oriented organizations was driven by a shift toward a marketplace that catered to meeting customer wants and needs rather than strictly delivering product features and functionality.
  • In the decades since its introduction, marketing orientation has been the model of choice for brands looking to sell products that compete effectively for consumer attention and brand loyalty.
  • This business practice can also be explained by Say's Law , which states that "products are paid for with products" and that "production of commodities creates, and is the one and universal cause which creates a market for the commodities produced. "
  • Marketing - spreading the cost of advertising over a greater range of output in media markets
  • Demonstrate the characteristics of production orientation from an economic and marketing perspective

• The Benefits of a Good Brand

  • Orientation of the whole organization towards its brand is called brand orientation.
  • Brand orientation is developed in response to market intelligence.
  • Benefits of good brand recognition include facilitating of new product acceptance, enabling market share penetration by advertising, and resisting price erosion.

• Multiple Sources of Advantage

  • One of the main goals of marketing planning and strategy is to produce multiple sources of competitive advantage in the marketplace.
  • For most businesses, one of the primary goals of implementing a marketing strategy is producing multiple sources of competitive advantage.
  • Sellers must assess factors including business objectives, target audience and market conditions before choosing the competitive strategy most appropriate for their brand.
  • Customer-Orientation Strategy - Customer-orientation competitive strategies focus on making customers happy through outstanding customer service.
  • McDonald's cost leadership strategy, which enables it to offer low cost food consistent across multiple locations, makes it the market leader in fast food.

• Employee Orientation

  • Orientation tactics exist to provide new employees enough information to adjust, resulting in satisfaction and effectiveness in their role.
  • Orientation is a reasonably broad process, generally carried out by the human resources department, that may incorporate lectures, videos, meetings, computer-based programs, team-building exercises, and mentoring.

• Organizing Tasks

  • More powerful change happens when there are clear design objectives driven by a new business strategy or forces in the market that require a different approach to organizing resources.