The paper "Importance of Market Orientation" is an outstanding example of marketing coursework. Researchers have continuously asserted that market orientation is a very significant approach to achieving better organizational performance. Market orientation is defined as a firm’ s wide generational propagation and its responsiveness towards market intelligence. Market orientation is involved in allowing the wants or needs of customers in driving various organizational strategic decisions. It is evident that organizational culture is committed to establishing strong customer value. Market orientation is also known as consumer focus or marketing concept (Peruvemba, 2002).
This approach comprises of several components namely customer and competitors’ orientation whereby each component connects widely to organizational performance. This study will mainly focus on understanding what market orientation, its importance within an organizational performance, analyze an Australian company determining how market orientation is integrated into this organization and finally recommendation based on how the company can be made more market-oriented. The construct of market orientation is one which is centralized in the marketing field since it acts as the cornerstone of the marketing field. Research further indicates market orientation is widely connected to the firm’ s profitability, proper customer services, retention, sales growth, the launching of new products, employee satisfaction and growth in sales revenues.
From these descriptions it is clear to say that market orientation rest upon three main pillars mainly profitability, coordinating marketing and customer focus. An organizational capability in establishing a positive orientation based on its three pillars widely depends on its internal culture and structure (Peruvemba, 2002). Types of orientation Literature review The concept related to market orientation was developed between the late 60s and early 70s at Harvard University focusing on improving companies’ profitability margin.
This approach replaced what was known as sale orientation which was more prevalent in the mid-50s and production orientation which was mainly predominant prior in mid-50s. Sale orientation was done away with due to the fact that it shows little concern on the general marketing function whereas production orientation brought the idea customers wanted something which was of more quality or one that is unique. It is very essential to clearly understand the three pillars of market orientation since they form the basis of finding out what importance is linked to marketing orientation (Clark, 2000). Pillars of market orientation Customer focus Traditionally, most organizations greatly emphasize on either market share or profitability as the main guiding orientations.
The major responsibility of any organization is mainly focused on increasing shareholder values. With increased globalization, competitions and branded goods companies have been focused to strategize on customer focus (Liu, 2003). These factors are forcing major international and local companies to shift on this orientation so as to meet customer satisfaction from one which is of profitability growth, customer to products. Customer centricity is one major concern towards a positive customer focus thus creating future strong organizational strategies. Coordinated marketing For any organization to have a perfect market orientation, it has to narrowly confine the tactical 4P framework so as to transform wider discipline within your company.
Simply, for a company should be focused on coordinating cross-disciplinary function. For this discipline, there is a need for a broader responsibility it widely quantitatively measure of market orientation outcome. It is evident that measurement of coordination in marketing orientation poses a greater challenge for more marketers (Martin, 2003).
Marketer through the use of marketing orientation has currently refused to acknowledge that consumers are not solely responsible for organizational profitability. These factors installed in a company market orientation become coordinating activities that widely involves organizational departments such as operations, human resource and finance.
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Clark,D. (2000). “Implementation Issues in Core Competence Strategy Making”, Strategic Change, Vol. 9: 115- 127.
Liu, S. (2003), “Market-oriented organizations in an emerging economy: A study of missing links”, Journal of Business Research, Vol.56: 481-491.
Martin, J. (2003). “Using Supply Chain Management to Leverage a Firm’s Market Orientation”, Industrial Marketing Management, Vol. 32: 25-38.
Lane, N. (2002). “Market Orientation and Retail Operative’s Expectations”, Journal of Business Research, Vol. 55: 261-273.
Chow, R. (2003). “Market Orientation and Business Performance in a Chinese Business Environment”, Journal of Business Research, Vol. 56: 227-239.
Steinman, C.(2000). Beyond market orientation: When customers and suppliers disagree. Journal of the academy of Marketing Science 28, 109-119.
Cadogan, J. (2000). The interaction between market orientation, industry environment and business success: evidence from an exporting context. Australasian marketing journal 8, 55-67.
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