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Market Orientation - page 1
Keywords: Marketing product orientation Kohli and Jaworski Barriers to Market Orientation
By Rifa Motin on 22/11/2009
Level: Foundation Degree
Page Number: 1 of 4 pages: 1 2 3 4Marketing
Task One
Market Orientation
This assignment explores market orientation and analyses the competitive advantages a market orientated approach can bring to an organisation and its customers. The assignment also identifies the barriers to market orientation within a department at NFU Mutual. The purpose of the assignment is to explain how market orientation can give an organisation a competitive advantage and describe four barriers to market orientation within the Claims Department at NFU Mutual.
NFU Mutual
NFU Mutual was first formed in 1909 originally known as Stratford upon Avon and District Farmers Union. The company was formed by seven local farmers as a scheme to entice members to the union by providing insurance at cost price. To date NFU Mutual have 420,000 farming customers, however as the company has grown and expanded, they have attracted 450,000 commercial & consumer customers. The company began with providing insurance to just farmers but has now expanded into other financial services including Investments, Pensions and Protection plans.
Definition of marketing
“The management process responsible for identifying, anticipating and satisfying customer requirements profitably”
(CIM, 2009)
The purpose of Marketing is to meet the needs of the customer. To meet these needs, organisations can develop their new products with a marketing orientated approach or a product orientated approach.
A product orientated approach is when the business develops its products based on what they are experts specialise in, rather than what the customer wants. However this strategy can often fail because of unsuccessful products.
A market orientated approach is when the business delivers what the customer wants and therefore meets their needs.
“According to Kohli and Jaworski (1990), the marketing concept is a business philosophy, whereas the term market orientation refers to the actual implementation of the marketing concept.”
(Find articles, 2000)
The purpose of marketing is also to make the organisation “profitable”.
Marketing orientation encourages profitable actions which can give a business competitive advantage.
These actions have been identified by Narver and Slater (1990) and have broken down into three categories:
(Extract from Emerald Insight, 2009)
Customer Orientation
The organisation understands the needs of its target buyers and creates a product or service which is of value for them. The organisation will increase the benefits to the buyer in relation to the price they are paying – or reduce the price the customer pays so it is of benefit to the customer. A customer orientated organisation will understand the value to the customer.
As Marketing Orientation requires the organisation
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