Assignment Resources

Sample Report Format

1. Introduction
Background of the report
Aims
2. Market orientation
Market orientation theories
Role of market orientation
3. ABC Company and market orientation
Overview of ABC Company
Market orientation
Customer orientation
Inter-functional coordination
Competitor orientation
3.
Recommendations
4.
Conclusion
5.
References

Goal of the report:

This paper include several purposes which are:
- To draw a definition about market orientation wide range of literature.
Assignment Resources, Marketing Management; Prepared by Zaved Mannan
1 | Page

- To prove the important role of market orientation

- To analyze the market orientation in ABC company
- To provide some advice to help ABC company to become more market oriented

Market orientation theories

In the 1990s, the marketing concept as market orientation was begun

recognizing
In the marketing literature, according to Kohli and Jaworski (1990), one of
the major concepts is market orientation which refers to the extent to how
the marketing concepts are implemented by organizations.
Market orientation facilitates a firms ability to capitalize, react to, and
anticipate on changes of environment which is base to create superior

performance.
Moreover, market orientation constitutes a business culture that supports
firms in creating superior customer value which is a part of sustainable

competitive advantage (Narver and Slater, 1990).

Nowadays, market orientation has been approached by two ways which have
been

commonly

adopted.

There

are

three

components

which

are

distinguished in the first approach: 1. organization-wide generation of market

information about current and future customer needs, 2. dissemination of
such information across departments and individuals within the marketoriented

firm;

and

3.

an

organization-wide

responsiveness

to

the

disseminated information (Jaworski and Kohli, 1990; 1993).

The second approach is different in conceptual market orientation but it also
uses three components (Narver and Slater, 1990, 1995).

Customer

orientation is the first component of this approach, which reflects that

activities for capturing and disseminating information about customers needs
are extremely necessary. Competitor orientation is also an important
component of this approach which focuses on collect and disseminates
information about competitors. Inter-functional coordination is the third
component which involves . . .the businesss coordinated efforts. . .to create
superior value for them continuously (Narver and Slater, 1995)
Assignment Resources, Marketing Management; Prepared by Zaved Mannan
2 | Page

Role of market orientation

Market

organizations.
In fact, a right strategy of market-orientation is not only able to retain

orientation

has

strong

link

with

the

performance

of

existing customers by keeping them satisfied and loyal, but it also play a
vital role in supporting organizations to reach to the desired level of
growth and market share by attracting more potential customers

(Homburg and Plesser, 2000).

A company can have a clear understanding about target buyer and
continuously

create

superior

value

for

them

through

customer

orientation.
When marker competition become fierce, understanding competitor play a
crucial role in the success of company. This understanding can be
achieved by competitor orientation which aims to realize current
principal and potential competitors, their weaknesses, strengths, and

capabilities.
Superior value which will be created by the coordinated use of resources
is result of inter-functional coordination. Market orientation is a capability
and the principal cultural foundation of learning organizations (Deshpand

and Farley 1998; Slater and Narver 1995).

Through constant acquisition of information relating to customers and
competitors and the sharing of this information within an organization,
market-oriented firms are well positioned to develop an organizational

memory, a key ingredient for developing a learning organization.

Furthermore, a focus on continuously improving the firms process and
systems and a culture of experimentation are encouraged by market
orientation. This implies that firms capabilities will become far more
distinctive when firms market orientation is constantly developed and

improved.
Besides, market orientation also brings about some outcomes such as
behavioral outcome, performance outcome.

Assignment Resources, Marketing Management; Prepared by Zaved Mannan

3 | Page

In fact, feelings of contributing, direction, and a sense of belonging

towards satisfying customer needs which will lead to greater esprit de

corps, can be provided to employees by market orientation.

Though market orientation, employees can receive

psychological benefits and enhances esprit de corps and teamwork.

Group cohesiveness is an outcome of esprit de corps. According to
Greenberg

and

Baron

(1997),

cohesiveness

is

social

constituted

and

several

elements such as a sense of belonging to a group, anesprit de corps, we

feeling.
Accepting group goals more readily and less absent from work are
benefits when employees feel themselves as members of cohesive groups
(Cartwright, 1968; Dunham and Pierce, 1989), and organizations will

have more loyal employees (George and Bettenhausen, 1990).

Level of their contribution to groups performance will be increased when
willingness of members of cohesive group to conform to group norms and

work together will reach to higher level (Shaw, 1981).

On performance outcome, there is a significant and positive link between
organizational performance and the marketing concept which is stated by

Lusch and Laczniak (1987).

In the face of intensifying competition, market orientation is a thing which
can provide a winning philosophy to organization. It will increase the

probability of an organizations survival.

According to recent study of Lado and Maydeu-Olivares (2001), market
orientation has significant influence on innovation that has been proven
that a greater innovative flair comes from companies with more marketoriented.

Market Oriented Company

There are many priorities within an organisation, but if it is truly marketing
orientated, many of the following principles will be high on its agenda:

Customer Satisfaction
Customer Perception
Customer needs and expectation
Generating income or profit
Assignment Resources, Marketing Management; Prepared by Zaved Mannan
4 | Page

Satisfactory Growth
Coordinating marketing activities
Awareness of change
Awareness of legal constraints
Analysis of the competition

The market oriented company wants to know that customers are satisfied by doing
market research to see what customers need/want. It is important that the
company take into account customer perception because if the customers feel that
they arent getting good quality products, and value for money then customers
might leave the company. Companies should have clear understanding of their
competitors and what benefits they are offering to their customer.
An organisation also sets itself objectives, to establish its position in the market
place. Some of these objectives include:

Making profit
Survival- beating the competition
Increasing sales and market share
Providing quality goods and services
Developing a skilled workforce
Maintaining a good relationship with actual and potential customers and other
stakeholders i.e. suppliers, shareholders and employees.

Overview of ABC Company

When it established?
How it established?
Type of ownership.
How long in the business?
What kind of industry?
What kind of products or services?
Its position in the market.
How successful they are.
Its business strategy.
Mission or vision of the company.

Market orientation of ABC Company

Determine its level of market orientation using slater model.
To a
To a
To an
To a very To a small moderate considerableTo a great extreme
slight
extent
extent
extent
extent
extent
Not at all extent
Assignment Resources, Marketing Management; Prepared by Zaved Mannan
5 | Page

4
Marketing
Director

5
Marketing
Manager

6
Finance
Manager

7
Sales
Director

1. Our business objectives

are driven by customer
satisfaction.

2. We monitor our level of

commitment and
orientation to serving
customers needs.

3. Our strategy for

competitive advantage
is based on our
understanding of
customer needs.

4. Our business strategies

are driven by our
beliefs about how we
can create greater
value for customers.

5. We measure customer
satisfaction
systematically and
frequently.

6. We give close attention

to after-sales service.

7. Our salespeople share

information within our
business concerning
competitors strategies.
Assignment Resources, Marketing Management; Prepared by Zaved Mannan
6 | Page

8. We respond to
competitive actions
that threaten us.

9. We target customers
and customer groups
where we have, or can
develop, a competitive
advantage.

10.

We target
customers and
customer groups where
we have, or can
develop, a competitive
advantage.

10.

The top
management team
regularly discusses
competitors strengths
and strategies.

11.

Our top
managers from every
function visit our
current and prospective
customers.

12.

We communicate
information about our
successful and
unsuccessful customer
experiences across all
business functions.

13.

All of our business

functions (eg.
marketing/sales,

Assignment Resources, Marketing Management; Prepared by Zaved Mannan

7 | Page

manufacturing, R&D,
finance/accounting,
etc.) are integrated in
serving the needs of
our target markets.
14.

5.8

5.6

5.7

5.9

All of our
managers understand
how everyone in our
company can
contribute to creating
customer value.

Average

You need to decide which approach you want to follow to describe the market
orientation of ABC Company.
Consumer orientation of ABC Company

What kind of customer service? Explain it by the slater model/survey.

Is it a great extent or an extreme extent? Which one?
For any product, quality is always a basic criterion for customer when
they intend to buy. Do ABC focus on this point? How? Show evidence
by providing some data. For example, ABC invested large amount of
money in equipment or technology. Aim to satisfy requirement of
customers in term of quality.
Do ABC has any research department to understand their customer
need? What kind of need they identified? For example, ABC Company
has built centers for research and develop product with nearly 100
employees, including 50 designers which gather the biggest names in
fashion industry in Bangladesh, such as Baby shop or Reshmi
Boutique.
How many products ABC launch in the market every year? Any new
pattern? New design?
What are the level of monitoring their level of commitment and
orientation to serving customers needs? What was your finding from
the survey?
What is ABCs target market? For example, ABC is targeting women 22
- 45 years
Assignment Resources, Marketing Management; Prepared by Zaved Mannan
8 | Page

The product? the ABC Company has shaped the current key products
such as, Plain, Jacquard Fabric, silk, brocade, voiles ,Silk shirts, etc.
ABC Company may target customer where they can develop a
competitive advantage. Evidence? What is the result of the survey?
Besides, ABC may keep a continuous change in their stores which help
them to achieve a scarcity-opportunity feeling. This competitive
advantage is hard to copy by their competitors. This is due to the fact
that the success does not simply come from the technical issue, but it
also originates in the companys strong identification with the values of
market orientation.

Inter-functional coordination

In ABC Company, all of their business functions have a common aim which is

serving the needs of their target markets.

Market research team of ABC Company may work on several sources such as

trade fairs, television serials, competitors stores, fashion centers.

In addition, they may collect information through every day checking
products success and examine the trends which are suggested by the store

managers.
Transmit findings/data to the purchase department, the design department
and the production department. All three departments organize their work as

a response to this continuous customer feedback.

By this way, the information is disseminated throughout the organization and

brings forth immediate response.

In price strategy, they may have a team to collect information about the
price consumers which consumers are ready to pay and collect the price of

similar products in other accessible competitor stores.

Through sales department, prices will be established for each article

accordingly.
Show evidence as much as possible. Use survey result.

Competitor orientation

Who are ABCs competitors?

Assignment Resources, Marketing Management; Prepared by Zaved Mannan

9 | Page

To obtain market share and achieve success, ABC Company must have

understanding about their competitor.

What is the score of question 7 & 8?
Discussion about competitors strengths and responding to competitive action

that threatens them.

Through survey, capture the strategies of competitor.
Does the top management team organize the meeting regularly? How often?
ABC Company may have action to respond to their competitors.
Did ABC launched any product recently as a response to the competitors?

What are they? How good they are? Sale rate?

Besides , to obtain more market share and protect itself from the fierce
competition, what kind of action ABC took? What was the result? For
example, recently, ABC Company has released research quality product line,
which is distinctive from the competition high and increasing human emotion,
friendly environment. These have proven that ABC Company built a good
competitor orientation for itself.

References for Assignment

Below you will find links to some useful references for undertaking Assignment 1.

Jaworski, B. and A. Kohli (1993), Market Orientation: Antecedents and

Consequences, Journal of Marketing, 57, 53-70.
http://ezproxy.csu.edu.au/login?
url=http://search.ebscohost.com/login.aspx?
direct=true&db=ufh&AN=9310123953&site=ehost-live

Kohli, A. and B. Jaworski (1990), Market Orientation: The Construct,

Research Propositions, and Managerial Implications, Journal of Marketing,
54, 1-18.
http://ezproxy.csu.edu.au/login?
url=http://search.ebscohost.com/login.aspx?
direct=true&db=ufh&AN=9602205182&site=ehost-live

Narver, J. and Slater, S., 1990. The Effect of a Market Orientation on

Business Profitability, Journal of Marketing, 54, 20-35.

Assignment Resources, Marketing Management; Prepared by Zaved Mannan

10 | P a g e

http://ezproxy.csu.edu.au/login?
url=http://search.ebscohost.com/login.aspx?
direct=true&db=ufh&AN=9102183223&site=ehost-live

Gebhardt, G.F., Carpenter, G.S. and Sherry, J.F. (2006), Creating a Market
Orientation: A Longitudinal, Multifirm, Grounded Analysis of Cultural
Transformation, Journal of Marketing, 70(4), 37-55.
http://www.atypon-link.com/AMA/doi/pdf/10.1509/jmkg.70.4.37

Homburg C. and Pflesser C., (2000), A Multiple-Layer Model of MarketOriented Organizational Culture: Measurement Issues and Performance
Outcomes. Journal of Marketing Research, 37, 449-462.
http://www.atypon-link.com/doi/pdf/10.1509/jmkr.37.4.449.18786

Ruekert, R.W. (1992) Developing a Market Orientation: An Organisational

Strategy Perspective,
http://ezproxy.csu.edu.au/login?url=http://dx.doi.org/10.1016/01678116(92)90019-H

Prepared by
Zaved Mannan
Assistant Professor

Assignment Resources, Marketing Management; Prepared by Zaved Mannan

11 | P a g e