Analyse Market Orientation on a Company

Topics: Customer, Brand, Consultative selling Pages: 3 (584 words) Published: November 9, 2008
Explain how a market orientation affects a company. Critically evaluate alternative orientations. Illustrate your answer with relevant examples.

A market orientated organisation embraces activities geared towards understanding the customers needs and developing products, solutions and delivering services achieve superior customer satisfaction. In order to achieve a market orientated organisation, all business units must work and act together towards the one common goal of achieving long-term profits and ultimately delivering shareholder value. Marketing must be embedded from the shop floor through to the CEO. Organisations which are not market orientated are either product, production or sales (or a combination of all). Below explores these different orientations and how this may affect different organisations.

Types of orientation
Product oriented - an organisation which is product orientated focuses on innovation and creating products which may or may not satisfy customers needs. They are focused on development and the heart of the organisation would be the research and development unit. Organisations such as 3M develop and launch a wide variety of products under many different brand names. It uses the last technology to come up with what they believe consumers want. It might be the case with many of their products that the saying "the customer doesn't know what they want until we give it to them" would apply with products developed by 3M.

Production orientated - companies which focus on production are interested in producing large quantities of products, they are focused on economies of scale in order to achieve financial gain. They are often driven by costs and the centre of the organisation might sit between the finance and manufacturing departments. They may have only one product or a range of products. Companies manufacturing electronic parts would sit in this orientation.

Sales orientated - these organisations are driven by...
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