CHAPTER 2

MARKET ORIENTATION AND ITS IMPLICATIONS
CHAPTER OBJECTIVES
1. To define the term ‘market orientation’.
2. To describe the development of the concept of market orientation
3. To explain why European organizations were slower than those in
America to accept the concept.
4. To set out the characteristics of organizations that are market
orientated.
5. To consider how a market orientation can be implemented in an
organization.
CHAPTER SUMMARY
This chapter begins with a definition of market orientation and then looks
at its historical development. In looks in detail at the development of
market orientation in Europe. It then investigates the organizational and
managerial characteristics of market orientated companies and looks at
how market orientation can be implemented.
ANNOTATED LECTURE OULINE
Point 1 - Introduction.
Market orientation is the implementation of the marketing concept.
Being marketing orientated is more than just being customer-led. It
requires the full support of the organization to be fully implemented in
the long term and, indeed, may need a complete change in an
organization’s culture.
Point 2 - Defining market orientation.
The text gives a number of the most frequently used classifications and
states that market orientation is the implementation of the marketing
concept; a form of organizational culture.
Point 3 - The historical development of market orientation.
Here a parallel can be drawn between the development of an organization
and that of a national economy. Market orientation develops through
stages, principally, production, sales and market orientation and can be
related to supply and demand relationships and competitive conditions.
Tutors can take students through the historical development of these
orientations.
Point 4 - Market orientation in the USA and Europe.
The development of market orientation was different between the USA
and Europe, the former, by the end of the 1950’s, was beginning to
recognise the need to put the customer first. In Europe, on the other hand,
development of marketing was later due to two world wars, delayed
market integration, heavy regulations, public sector involvement, strong
national identities, projectionist tendencies, language differences, local
business traditions and practices and a dilatory approach to marketing
education.
Point 5 - Organizational and managerial characteristics of market-
orientated companies
Here the dilemma of satisfying customer needs and the organizations
need should be explored. Research has identifies two types of
organizations and market orientation: A-type and B-type. It must also be
recognised that the management of a company play a critical role in
market orientation and further more there is a strong relationship between
marketing orientation and the learning organisation.
Point 6 - Implanting market orientation in organizations.
Here the role of management in market orientation can be more fully
explored. Market orientation needs strategic commitment from the entire
organization. It may also require several changes which will need to be
managed. The guidelines and action plan for implementing market
orientation can then be explored.
Point 7 - Conclusion.
Business organizations may be classified according to their orientation.
Some are described as production or sales orientated others may be called
market orientated. To be marketing orientated organizations place an
emphasis on the marketplace and their operations are directed towards or
centred around their customers. Market orientation requires a strong and
decisive lead from the top and a continuous, strategic commitment. Areas
of possible future research into this area can be discussed.
Answers to the discussion questions:-
1. Here there is an opportunity for students to discuss market orientation
from the point of view of their own experiences as shoppers. They
can also discuss degrees of orientation and whether perceptions agree
with reality. They can also assess whether there is any link between
marketing orientation and business success.
2. This promotes discussion of the involvement of the whole
organisation in marketing orientation and that it takes a cultural shift
to implement successfully. As Levitt states it is a lifetime
commitment.
3. This question should lead students to understand the link of market
orientation to the development of national economies and the macro-
economic factors that effect it.
4. Hopefully, students should agree with this statement! Here the notion
of relationship marketing can be introduced and students should be
aware of the importance of being customer focused and that without
customers organizations cease to exist. They should also understand
that being market orientated is more than being customer led.
5. Sources for these can come from the shopping mall or centre, or local
and national businesses or from newspapers or business magazines.
6. It is perfectly feasible for organizations who pride themselves on
being market orientated today to become production orientated
through not being aware of changes that are occurring in the market
place. Discussion here can be of B-type companies versus A-type.
Suggested activities:
1. In groups, prepare a presentation on two organizations, one which you
consider to be market-orientated and one that you think is production
or sales orientated, and highlight their similarities and differences, and
the possible reasons behind their orientation.
2. Using the characteristics given in Box 2.3 (pp30) identify an
organization, with which you are familiar, that is A type and one that
is B type. How can the A type avoid becoming a B type and how can
the B type become like an A type?
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uctIon oIun, IoIIowIng tIe guIdeIInes gIven In SectIon 5.4 |oo35) oI tIe text
book, stutIng Iow tIey couId become more murket orIentuted.

In Europe. language differences. production. It must also be recognised that the management of a company play a critical role in market orientation and further more there is a strong relationship between marketing orientation and the learning organisation. strong national identities. development of marketing was later due to two world wars.The historical development of market orientation.Market orientation in the USA and Europe. projectionist tendencies. The text gives a number of the most frequently used classifications and states that market orientation is the implementation of the marketing concept. Tutors can take students through the historical development of these orientations. Market orientation develops through stages. Here a parallel can be drawn between the development of an organization and that of a national economy. by the end of the 1950’s. delayed market integration. on the other hand. a form of organizational culture. Research has identifies two types of organizations and market orientation: A-type and B-type. public sector involvement. was beginning to recognise the need to put the customer first. principally. The development of market orientation was different between the USA and Europe.Point 2 . the former. heavy regulations.Defining market orientation. Point 5 . local business traditions and practices and a dilatory approach to marketing education. . sales and market orientation and can be related to supply and demand relationships and competitive conditions.Organizational and managerial characteristics of marketorientated companies Here the dilemma of satisfying customer needs and the organizations need should be explored. Point 4 . Point 3 .

Areas of possible future research into this area can be discussed. Point 7 . 4. Market orientation requires a strong and decisive lead from the top and a continuous. Market orientation needs strategic commitment from the entire organization. To be marketing orientated organizations place an emphasis on the marketplace and their operations are directed towards or centred around their customers. This promotes discussion of the involvement of the whole organisation in marketing orientation and that it takes a cultural shift to implement successfully. 3. Hopefully.Implanting market orientation in organizations. strategic commitment. . They should also understand that being market orientated is more than being customer led. or local and national businesses or from newspapers or business magazines. It may also require several changes which will need to be managed. Answers to the discussion questions:1. Some are described as production or sales orientated others may be called market orientated. students should agree with this statement! Here the notion of relationship marketing can be introduced and students should be aware of the importance of being customer focused and that without customers organizations cease to exist. Here there is an opportunity for students to discuss market orientation from the point of view of their own experiences as shoppers. The guidelines and action plan for implementing market orientation can then be explored. Here the role of management in market orientation can be more fully explored. 5. 2. Sources for these can come from the shopping mall or centre. As Levitt states it is a lifetime commitment.Point 6 . This question should lead students to understand the link of market orientation to the development of national economies and the macroeconomic factors that effect it. They can also assess whether there is any link between marketing orientation and business success. Business organizations may be classified according to their orientation. They can also discuss degrees of orientation and whether perceptions agree with reality.Conclusion.

It is perfectly feasible for organizations who pride themselves on being market orientated today to become production orientated through not being aware of changes that are occurring in the market place. Using the characteristics given in Box 2. 2. with which you are familiar. one which you consider to be market-orientated and one that you think is production or sales orientated. prepare a presentation on two organizations. and highlight their similarities and differences. Suggested activities: 1. How can the A type avoid becoming a B type and how can the B type become like an A type? &OR A SALES OR PRODUCTION ORIENTATED COMPANY THAT YOU KNOW. Discussion here can be of B-type companies versus A-type. and the possible reasons behind their orientation.6. In groups.3 (pp30) identify an organization. that is A type and one that is B type.

DRAW UP AN ACTION PLAN.

FOLLOWING THE GUIDELINES GIVEN IN 3ECTION  PP OF THE TEXT BOOK.

STATING HOW THEY COULD BECOME MORE MARKET ORIENTATED .

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