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Market Orientation as a Branding Strategy

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Market Orientation as a Branding Strategy
Bachelor’s Thesis Autumn Semester 2007 Department of Business Studies

Market Orientation as a Branding Strategy by Harriet Mellenius

Supervisor: Olivia Kang

ABSTRACT
This paper studies the impact of market orientation strategy on brand awareness. Zara, a Spanish leading fashion retailer and an example of a brand using this strategy, is compared to three other multinational brands operating in Stockholm, Sweden, namely Topshop, Mango and United Colours of Benetton. The latter brands are known to use advertising to create brand awareness.

Fashion magazine attention was used as a measure of brand awareness. Data on the brand awareness was gathered by browsing three leading Swedish fashion magazines – Elle, Glamour and Damernas Värld – and the fashion section of the biggest Swedish tabloid, Aftonbladet.

It was found that market orientation can compete with advertising as a marketing strategy to create brand awareness, but only in part of the market segment. This was concluded from the fact that Zara was featured in some of the magazines, but not all of them.

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ACKNOWLEDGEMENTS

First, I would like to thank my supervisor, Olivia Kang, for all her support. I would also like to thank my former co-writer Charina Montemar Hägglund, for helping me with the data gathering. I also want to thank my classmates for their constructive criticism that has greatly improved this paper. Finally, I would like to thank Mattias Kreku and Erik Mellenius who kindly assisted me with the proofreading.

HARRIET MELLENIUS

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TABLE OF CONTENTS
INTRODUCTION ................................................................................................................................................. 5 THEORETICAL FRAMEWORK ....................................................................................................................... 6 BRAND AWARENESS



References: Aftonbladet’s advertising website n.d. Retrieved December 3, 2007, from http://annonswebb.aftonbladet.se/. Benetton’s website n.d. Retrieved December 3, 2007, from http://www.benetton.com/storelocator/storelocator.jsp. Brand Awareness n.d. Retrieved December 13, 2007, from http://www.investopedia.com/terms/b/brandawareness.asp. Damernas Värld’s division of Bonnier publishing’s website n.d. Retrieved December 3, 2007, from http://www.bonniertidskrifter.se/tidningar/damernas_varld/. DeFleur, M & Dennis, E 1998, Understanding Mass Communication, Houghton Mifflin Company, Boston. Eder-Ekman, K 2007, ”Lyxens globala klassresa” [Swedish], Dagens Nyheter, 28 October. Elle’s website n.d. Retrieved December 3, 2007, from http://www.elle.se/?id=2097. Glamour division of Bonnier publishing’s website n.d. Retrieved December 3, 2007, from http://www.bonniertidskrifter.se/tidningar/glamour/. Heiens, R 2000, “Market Orientation: Toward an Integrated Framework”, Academy of Marketing Science Review, vol. 2000, no. 1, pp. 1-5. Janssen, S 2006, “Fashion reporting in cross-national perspective 1955-2005”, Poetics, vol. 34, no. 6, pp. 383-406. Jaworski, B J & Kohli, A K 1993, “Market Orientation: Antecedents and Consequences”, Journal of Marketing, vol. 57, no. 3, pp. 53-70. Kohli, A K & Jawoski, B J 1990, “The Construct, Research Propositions and Managerial Implications”, Journal of Marketing, vol. 54, no. 2, pp. 1-18. Leiss, W, Kline, S, Jhally, S & Botterill, J 2005, Social Communication in Advertising, 3rd edn, Routledge, New York. Mango’s economic dossier n.d. Retrieved December 3, 2007, from http://www.company.mango.com/e/comunicacion/dossiereconomico.htm. Mazaira, A, González, E & Avendaño, R 2003, “The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case”, Marketing Intelligence & Planning, vol. 21, no. 4, pp. 220229. 27 Narver, J & Slater, S 1990, “The Effect of a Market Orientation on Business Profitability: A Balanced Replication”, Journal of Marketing, vol. 54, no. 4, pp 20-35. The New Age of Brand Awareness 2005. Retrieved December 13, 2007, from http://www.netline.com/Library/article0305.html. Nilsson, M, Forén, P & Carlsvi, S 2004, ”Kulturinverkan på modekonsumenter - en studie av Zara och H&M’s: image i Sverige och Spanien”, BA Thesis, Lund University. Retrieved January 4, 2008, from Lund University Undergraduate theses. Ossiansson, E 2004, Brands, Tailored for Retailers, Studentlitteratur Lund, Sweden. Our Group n.d. Retrieved Nov 15, 2007, from http://www.inditex.com/en/who_we_are/our_group. Press Releases n.d. Retrieved December 3, 2007, from http://www.inditex.com/en/press/press_releases. Russell, T J & Lane, R W 1996, Advertising Procedure, 13th edn, Prentice-Hall, Inc., New Jersey. Slater, S F & Narver, J C 1994, “Market orientation, customer value, and superior performance”, Business Horizons, vol. 37, no. 2, pp. 22-28. SO UK’s website n.d. Retrieved December 3, 2007, from http://www.souk.se/brands.aspx?brand=i15. Website of Marknadsetiska Rådet 1994. Retrieved December 3, 2007, from http://www.marknadsetiskaradet.org/united-colors-of-benetton. Zara: Fast Fashion 2003, CD-ROM, Harvard Business School Publishing, Boston. The Zara Concept at Inditex’ website n.d. Retrieved January 16, 2008, from http://www.inditex.com/en/who_we_are/concepts/zara. 28 APPENDICES Below follow graphics of all individual exposures for each brand and magazine. 29 30 31

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