[2] Market Orientation

Question 1

What is the Marketing Concept? (From week 1)

Answer 1

The achievement of corporate goals through meeting early and exceeding customer needs and expectations better than the competition (Jobber and Ellis-Chadwick, 2019)

Question 2

What does market orientation focus on? (4)

Answer 2

Customer needs. Competitors. Technology. Political/legal forces.

Question 3

M.O Assumptions [Marketing Concept] (4) ANAGRAM

&

Author + Yr

Answer 3

VBAN,C
MO:
Value 
Norms
Artefacts
Behaviour

Cadogan 2003

Question 4

MO Values x3 egs

How is customer value maximised?

Answer 4

Values that need to run through the entire organization, from management to customer support (e.g. customer satisfaction, customer value, doing better than competitors)
Integrated effort: all staff needs to take responsibility for creating customer value

Question 5

MO Norms explanation

x3 eg

Answer 5

Implicit or explicit norms that characterise the organization (rules and procedures)

Examples:
Customer service-related procedures

Periodic meetings with members from multiple departments (Marketing, Production, Logistics, HR, …)

Information storing and sharing rules/procedures

Question 6

MO Artefacts explanation
what is it crucial for?

x2 eg?

Answer 6

“Objects” that allow the company to act in a Market-Oriented way

Crucial for the implementation of MO!

Example:

Information systems that allow the firm to store and disseminate relevant information about customers, competitors’ actions, market trends, etc.

Technology that allows the firm to manufacture products that effectively meet customers’ needs

Question 7

MO Behaviour & 3 Necessary Components

Answer 7

Approach to market intelligence

companies need all 3!:
Market-Focused Information Generation

Market-Focused Information Dissemination

Market-Focused Information Responsiveness

Question 8

Market-Focused Information Generation & Author

Answer 8

systematic gathering of information on customers and competitors, both present and potential, and other factors that can or may influence customers’ needs and preferences (Hunt and Morgan 1995).

Question 9

Market-Focused Information Dissemination & Author

Answer 9

communication, dissemination and / or sale of the information generated to relevant departments in the organization
(Kohli and Jaworski 1990)

Question 10

Market-Focused Information Responsiveness & Author

Answer 10

systematic analysis of information, to develop knowledge, and use of that knowledge to guide strategy (recognition, creation, selection, implementation, modification) (Hunt and Morgan 1995).

Question 11

Traits of Market Oriented Companies [6]

Answer 11

The focus of the business is the customer

The business strategy, research and development and even the production system are shaped according to what customers want

There is constant consideration of what competitors do (trying to anticipate market moves)

There is considerable allocation of ££ to market research

The business tries to uncover and serve latent markets (making the most of strategic windows)

Strive for competitive advantage

Question 12

What is Superior value for customers

Answer 12

Firms that consistently ID and respond to customer needs and preferences, and can anticipate future needs and preferences, are better placed

Question 13

What is Superior marketing strategy in MOB

Answer 13

MOB provides informational advantages, making firms wiser than less market-oriented competitors

Question 14

Source of sustainable competitive advantage [in reality…]

Answer 14

MOB’s informational capabilities are intangible (cannot simply purchase in marketplace), socially complex, the components are highly interconnected, contain significant tacit dimensions. Evidence suggests firms with strong MOB capabilities are rare

Question 15

The Market Orientation-Performance Relationship

Resource-Based Review

Answer 15

There is a linear and positive relationship between market orientation and a company’s performance

Question 16

The Market Orientation-Performance Relationship
Contingency theory (x3 factors)

Answer 16

There is a relationship between market orientation and a company’s performance, but it’s non-linear AND moderated by contingent factors:

Commodity vs. non-commodity
Market dynamism
Internationalisation

Question 17

Commodity vs. non-commodity [2]

Answer 17

U-shaped for commodities (i.e. non-customised products)

Positive and linear relationship for non-commodities (i.e. highly customised products)

Question 18

Market dynamism x2

Answer 18

More dynamic markets (i.e. customers needs changing quickly) imply rapid shrinkage of any competitive advantage  that’s when MO will be vital for survival
If dynamism level is HIGH  GREATER impact of MO on the company’s performance
If dynamism level is LOW  SMALLER impact of MO on the company’s performance

Question 19

Internationalisation x2

Answer 19

Highly internationalised companies (serving many markets) need more complex marketing strategies for succeeding > MO becomes fundamental
If internationalisation is HIGH > GREATER impact of MO on the company’s performance
If internationalisation is LOW > SMALLER impact of MO on the company’s performance