Market Orientation Dr. Dennis Pitta University of Baltimore
Dogs are... • ________________ • ________________ • ________________ • ________________ • ________________ • ________________
Market wants are…. • Diverse • Can be really unique • Not always identified easily • Great - great motivators
The result….. • Two just to be sure!!
What should marketers focus on?It depends on their orientation.
Production Orientation • Production emphasized • Company focus • Consumer often ignored
Sales Orientation • Company Focus • Sales (volume) Emphasized • Stress on Selling Tactics
Marketing Orientation • Focus: the Consumer • Profit Orientation • Integration of the Firm (coordination within the firm)
Operationalizing the Marketing Concept • Intelligence generation • Intelligence dissemination • Responsiveness • Integration
Intelligence generation • the collection and assessment of customer needs/preferences • and the forces (i.e., task and macro environments) that influence the development and refinement of those needs. • Multiple departments should engage in this activity because each has a unique market lens.
Intelligence dissemination • the process and extent of market information exchange within a given organization • should be balanced between both the horizontal (i.e., interdepartmental) and vertical transmission of marketplace information • dissemination of intelligence occurs both formally and informally
Responsiveness • action taken in response to intelligence that is generated and disseminated • focuses on the degree to which marketplace needs influence the assessment of market segments and development of marketing programs • speed and coordination critical
Integration • (1) an expanded focus on market rather than customer intelligence, • (2) an emphasis on a specific form of interfunctional coordination with respect to market intelligence, and • (3) a focus on activities related to intelligence processing rather than the effects of these activities
How does one measure Marketing Orientation? • Using the MARKOR scale
How does one use the MARKOR instrument? • 20-item, MARKOR measure could initially be used to establish a baseline level of market orientation within an SBU. • As intervention programs are implemented, the organization could quantitatively chart its progress.
Why use the MARKOR instrument? • There is a link between MO and company success • The relationship has been found in non-profits; manufacturing firms; service firms; established economies; developing economies