market orientation by chiligum strategies

MARKET ORIENTATION @chiligum 2013

photo: Helga Weber

MARKET ORIENTATION – ARE YOU READY? WWW.CHILIGUM.COM

"A market driven culture supports the value of thorough market intelligence and the necessity of functionally coordinated actions directed at gaining a competitive advantage.” Day 1994

Purpose

To explore the concept of market orientation based on scholarly research

To define evaluation criteria and questionnaire design

To outline major implications

To guide the practical adaptation

1. DEFINITION 2. EVALUATION 3. IMPLICATIONS 4. TAKE AWAY

DEFINITION

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Behavioral View: Making Things Happen!

Photo: Helga Weber

“Market orientation is the organizationwide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organizationwide responsiveness to it.” Kohli, Jaworski 1990

Behavioral View: Kohli & Jaworski 1990

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Cultural View: Living It Up!

Photo: Helga Weber

“Market orientation it the organization culture that most effectively and efficient creates the necessary behaviours for the creation of superior value for buyers and, thus, continuous superior performance for the business.” Narver, Slater 1990

Cultural View: Narver & Slater 1990

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Putting it all together …

Photo: Helga Weber

“Market orientation is the implementation of a corporate culture or philosophy which encourages behaviours aimed at gathering, disseminating and responding to information on customers, competitors and the wider environment in ways that add value for shareholders, customers and other stakeholders.” Gray, Hooley 2002

Synthesis: Gray & Hooley 2002

EVALUATION

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Now, how to figure it out?!

Photo: Helga Weber

Evaluation is best applied with focus on the business unit ... So, ask your team?!

Cultural View 1/3

Sales regularly shares infos within our business concerning competitor activities?

Our business objectives are driven primarily by customer satisfaction?

We rapidly respond to competitive actions that threaten us?

We constantly monitor our orientation to serving customer needs?

Top management from every function regularly visits current and prospective customers?

Cultural View 2/3

We freely share infos about successful and unsuccessful customer experience?

Our strategies for competitive advantage are based on understanding customer needs?

All of our functions are integrated in serving the needs of our target markets?

Our business is driven by our beliefs about how we can create greater value for our customers?

We measure customer satisfaction systematically and frequently?

Cultural View 3/3

We give close attention to after-sales service?

Top management regularly discusses competitors' strengths and strategies?

All of our managers understand how everyone in our business can contribute to creating customer value?

We target customers where we have an opportunity for competitive advantage?

We share resources with other business units?

Behavioral View 1/4

We meet with customers regularly to find out about future needs?

We do a lot of in-house market research?

We quickly detect changes in our customers' preferences?

We poll customers regularly to assess the quality of our products or services?

We quickly detect fundamental shifts in our industry?

Behavioral View 2/4

We frequently review the likely effect of changes in our business environment?

We have cross-functional meetings at least once a quarter to discuss market trends?

Marketing staff discusses customers' future needs with other functions?

When something important happens to a major customer or market, the whole business unit knows about it shortly?

Data on customer satisfaction are regularly shared at all levels?

Behavioral View 3/4

When one unit finds out something important about competitors, it quickly alerts others?

We quickly decide how to respond to our competitors' price changes?

We are quickly aware of changes in customers' needs?

We periodically review RND efforts to ensure alignment with customer needs?

Several functions get together to plan a response to changes in our environment?

Behavioral View 4/4

If a major competitor launches a big campaign, we quickly implement a response?

The activities of the different departments are well coordinated?

Customer complaints are dealt with a lot of care?

If we come up with a great marketing plan, we are able to implement it quickly?

When customers would like to modify a product or service, the units involved make concerted efforts?

IMPLICATIONS

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Market Orientation Matters!

Photo: Helga Weber

Thrusts

customer orientation (focus on superior customer value, current and future needs)

competitor focus (monitoring competitor activity, changes in external environment)

cooperation (cross-functional collaboration, sharing of information)

responsiveness (quickly responding to relevant market changes)

strategy for competitive advantage (profitability, differentiation)

TAKE AWAYS

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Major implications …

Photo: Helga Weber

Summary

Since the 90s, a major body of research outlines the concept of market orientation

Major thrusts lay on customer value, competitor focus, collaboration, responsiveness and competitive advantage

Research suggests straightforward questionnaire design to evaluate market orientation based on certain criteria

Various studies empirically proove the impact on profitability and competitiveness

Teeuwsen B (2004)

1. Adapt questionnaire design 2. Evaluate across teams/units 3. Discuss and share findings 4. Respond to it!

MANY THX! ANY QUESTION OR SUGGESTION?! LOOKING FORWARD! BENJAMIN TEEUWSEN benjamin@chiligum.com www.chiligum.com

Day G. S. (1994) ‘The capabilities of market-driven organizations’, Journal of Marketing, Vol. 58, No. 4, pp. 37-52

Deshpande R., Farley J. U. (1998) ‘Measuring Market Orientation: Generalization and Synthesis’ Journal of Market-Focused Management, Vol. 2, pp. 213-232

Gray B. J., Hooley G. H. (2002) ‘Market orientation and service firm performance - a research agenda’ European Journal of Marketing, Vol.36, No. 9/10; pp. 980-989

Narver J. C., Slater S. F. (1990) ‘The effect of a market orientation on business profitability’, Journal of Marketing, Vol. 54, No. 4, pp. 20-36

References

Good, Better, Great Readings: Check Readinglist at Amazon!

Kohli A. K., Jaworski B. J. (1990) Market Orientation: The Construct, Research Propositions, and Managerial Implications, Journal of Marketing, Vol. 54, No. 2, pp. 1-18

Teeuwsen B (2004) 'Market Orientation' Individual Assignment, Marketing Strategy, University of Wollongong

References

Good, Better, Great Readings: Check Readinglist at Amazon!

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