Is mar­ket ori­en­ta­tion still rel­e­vant?

Finweek English Edition - - ADVERTISING&MARKETING -

THE NO­TION of mar­ket ori­en­ta­tion places cus­tomer needs at the cen­tre of all com­pany ac­tiv­ity. Ac­cord­ing to this phi­los­o­phy, prod­ucts and ser­vices are de­vel­oped purely to meet cus­tomer needs. Narver and Slater (1990) iden­tify three be­havioural char­ac­ter­is­tics re­lat­ing to mar­ket ori­en­ta­tion. Cus­tomer ori­en­ta­tion refers to un­der­stand­ing the po­ten­tial cus­tomer’s needs so as to cre­ate ad­di­tional value on an on­go­ing ba­sis. Com­peti­tor ori­en­ta­tion means that strengths, weak­nesses, ca­pa­bil­i­ties and strate­gies of a com­pany’s key com­peti­tors are un­der­stood. In­ter-func­tional co­or­di­na­tion uses the com­pany’s re­sources to cre­ate added value for tar­get cus­tomers. Mar­ket-ori­ented com­pa­nies are bet­ter placed to iden­tify and cap­i­talise on new op­por­tu­ni­ties and it seems that a clear link be­tween mar­ket ori­en­ta­tion and per­for­mance ex­ists. Does your com­pany mea­sure up? Pel­ham (2000) and Schayer (2008) have sug­gested com­pa­nies use a seven-item ques­tion­naire to eval­u­ate the level of mar­ket ori­en­ta­tion. Each of the seven state­ments of­fers five op­tions, an­chored by de­scrip­tive phrases. Give it a try - cir­cle the op­tion that com­pletes the sen­tence so as to best de­scribe your com­pany: 1. Our firm gives a (mod­er­ate 1 2 3 4 5 ex­treme)

amount of at­ten­tion to af­ter sales ser­vice. 2. Our firm is (some­what slow 1 2 3 4 5 very fast) in de­tect­ing fun­da­men­tal changes in cus­tomer pref­er­ences, com­pet­i­tive strate­gies, and other ma­jor changes in our in­dus­try. 3. Our firm re­sponds (some­what slowly 1 2 3 4 5 very fast) to neg­a­tive cus­tomer sat­is­fac­tion in­for­ma­tion. 4. Our firm mea­sures cus­tomer sat­is­fac­tion

(oc­ca­sion­ally 1 2 3 4 5 sys­tem­at­i­cally). 5. Our sales­peo­ple (oc­ca­sion­ally 1 2 3 4 5 fre­quently) share com­peti­tor in­for­ma­tion with all of the other de­part­ments of the com­pany. 6. We (oc­ca­sion­ally 1 2 3 4 5 sys­tem­at­i­cally) take ad­van­tage of tar­geted op­por­tu­ni­ties to take ad­van­tage of com­peti­tors’ weak­nesses. In our firm we un­der­stand how the en­tire busi­ness can con­trib­ute to cre­at­ing cus­tomer value (dis­agree 1 2 3 4 5 agree). Com­bine the scores of all the sen­tences to get a sense of your com­pany’s mar­ket ori­en­ta­tion. The higher the score, the higher the mar­ket ori­en­ta­tion level of your com­pany.

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