Benefits of market orientation3
Barriers to marketing orientation5
Market orientation concept for new business:6
Effects of market orientation on the existing business:7
Role of mass marketing in developing tactical action programmes8
Advantages of Mass Marketing:9
Limitations of mass marketing9
Advantages of Market segmentation11
Disadvantages of Market segmentation11
Mass marketing versus Market segmentation12
The first half of the assignment deals with the adoption of market orientation as a key principle for guiding the new business as well as the existing one. It gives a clear picture of the role of market orientation in the business industry and how it helps to achieve the business goals and the objectives. The second half of the assignment looks at the advantages and the disadvantages of the mass marketing and the market segmentation. It analyses how both these forms of marketing helps in the business context.
The needs of the customer have got a great importance in the market oriented business. A market oriented business identifies the needs of the customer and will start the process of production of that service or goods which will fulfil the customer needs. In today’s business environment, the company gives much importance to the consumer and will try to identify the needs and wants of the customer. The company will circle around the customer needs (Williams, 1992)
Market orientation can be described as the organisation’s information on the customer tastes and preferences. Market orientation can be defined as a “set of cross-functional processes and activities directed and created at satisfying the customers through continuous needs-assessment” (Deshpande, 1999).
Market orientation helps the company to know about their competitor’s strategy and will accordingly help them to implement plans which help the company to maintain their customer strength.
(source: speed et al,2003).
Benefits of market orientation:
The term market orientation implies an extended view giving equal importance to the customers and the competitors (Kotler and Armstrong, 1994). Market orientation helps the company to achieve some benefits which are as follows:
• Improved business performance:
A market oriented company fulfils the expectations of the customer by communicating and identifying about their needs. The company implements the right process and steps in order to develop the product or service. The market orientation helps the company to be in a very good position in the competitive business environment. The company or the organisation will conduct research to identify the opportunities in the market. Communication is the best possible way to identify the needs of the customers. The organisation with market oriented approach conducts research to know about the strategies of their competitors and the needs of the customers as well. The company implements the plan accordingly to fulfil the customers needs and thereby increasing the profitability of the company(Slater and naver,1992).
• Improved customer perceptions and loyalty:
The customer needs are giver the prior importance than the production process in a market oriented organisation. This helps the organisation to identify the needs of the customer and implement plans accordingly. In this way the production needs and the marketing needs are linked. The market oriented approach helps the company to be more responsible to meet the demands of the customer in order to stay in the competitive market environment (Narver and slater, 1992). The best example of an...