1.5Narver&Slater (1998). Customer led and market oriented, let’s not confuse the two

Question 1

responsive MO (customer-led)
Orientation:
style:
focus:
objective:
learning type:
learning:
processes:
focus:

Answer 1

Orientation: expressed wants
style: responsive
focus: short-term
objective: customer satisfaction
learning type: adaptive
learning: customer serveys
processes: key account/focus groups
focus: statisfaction and realtionships, stable environments

Question 2

proactive mo
(market-oriented)
Orientation:
style:
focus:
objective:
learning type:
learning:
processes:
focus:

Answer 2

Orientation: latent needs
style: proactive
focus:log term
objective:customer value
learning type: generative
learning: observation
processes: leas-users/experiment
focus: innovation and unserved markets, turbulent environments

Question 3

why did slater and narver write this article ?

Answer 3

Christensen and Bower (1996) report the results of a study of how customer power contributes to the failure of leading firms during a period of industry discontinuity. They conclude that developing a customer orientation appears not to be wise advice under these conditions

Question 4

An organization has a foundation for sustained competitive advantage when it possesses

Answer 4

skills or resources that provide superior value to customers and that are difficult to imitate

Question 5

Customer-led philosophy: Primarily concerned with

Answer 5

satisfying customers’ expressed needs, and is typically short term in focus and reactive in nature.

Question 6

Customer-led business may also develop close relationships with important customers to gain

Answer 6

gain deeper insight into those customers’ desires (example: Retail banking).

Question 7

The problem of customer led business (3) and leads to (3)

Answer 7

• reactive
• short term
• leads to adaptive learning
  this leads to
• manager only see world through current customers eyes.
• existing customers can constrain a business innovations
• implicit needs cant be articulated, so other approaches are needed

Question 8

Market-Oriented philosophy

Answer 8

Goes beyond satisfying expressed needs to understanding and satisfying customers’ latent needs and, thus, is longer term in focus and proactive in nature.

Question 9

Compared to customer-led businesses, market-oriented businesses

Answer 9

scan the market more broadly, have a longer-term focus, and are much more likely to be generative learners, - critical to innovation

Question 10

Although market- oriented businesses use many of the same traditional market research techniques as customer- led businesses, they also

Answer 10

they combine these with other techniques to discover customers’ latent needs and to drive generative learning

Question 11

market oriented: lead users:

Answer 11

These are customers, or potential customers, who have needs that are advanced compared to other market members and who expect to benefit significantly from a solution to those needs.

Question 12

A true lead user should be a

Answer 12

window into the future and not an anchor in the past

Question 13

For generative learning, market-oriented business conduct

Answer 13

conduct market experiments, learn from the results of those experiments, and modify their offerings based on the new knowledge and insights.

Question 14

Market-oriented businesses also escape the ‘’tyranny of the served market’’ by

Answer 14

searching for unserved markets. The unserved market represents potential - those who might be customers.

Question 15

• This research supports the conclusion that

Answer 15

market orientation is essential to success

Question 16

• Custumer-led can be successful in relatively predictable environments, but in a dynamic environment

Answer 16

will rarely lead to a position of competitive advantage (provides insufficient stimulus for innovation that discontinuous change requires)

Question 17

To achieve sustainable competitive advantage in all types of markets (3)

Answer 17

• Essential activities are innovation & marketing together
• Recognize that different customers provide different types of information
• Commitment to continuous market learning (discover latent needs, unserved markets, organization-wide mobilization of resources)