Market Orientation

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Market Orientation

• Dr. Dennis Pitta
• University of Baltimore

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Market orientation" the implementation of the
marketing concept
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What is the marketing concept?An example.
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Of what value are dogs?
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Dogs are...

• ________________
• ________________
• ________________
• ________________
• ________________
• ________________

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Why would Pitta want a dog?
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Market wants are.

• Diverse
• Can be really unique
• Not always identified easily
• Great - great motivators

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The result..

• Two just to be sure!!

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What should marketers focus on?It depends on
their orientation.
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Production Orientation

• Production emphasized
• Company focus
• Consumer often ignored

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Sales Orientation

• Company Focus
• Sales (volume) Emphasized
• Stress on Selling Tactics

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Marketing Orientation

• Focus the Consumer
• Profit Orientation
• Integration of the Firm (coordination within the
  firm)

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More on Marketing Orientation
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Operationalizing the Marketing Concept

• Intelligence generation
• Intelligence dissemination
• Responsiveness
• Integration

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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.

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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

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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

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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

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How does one measure Marketing Orientation?

• Using the MARKOR scale

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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.

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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