Implementing Marketing Strategy Through a Market Orientation

The adoption of specific marketing strategies is related to several factors in an organization including the organization's mission, objectives, resources, and market orientation. We report an exploratory study in which we define relationships between market orientation and marketing strategy in a high technology environment - the telecommunications industry in the United States. Market orientation is defined as a culture that influences how employees think and act. Our results indicate that a market orientation provides a context for the implementation of specific marketing strategies by serving as a moderator of operational marketing strategy. For example, those organizations who possess a strong market-oriented culture (high-spirited cultures) engage in value creation strategies such as market segmentation, developing new products/services for new markets, and product or service customisation. Those organizations possessing low market orientations (ineffectual cultures) generally practice less aggressive and internally focused strategies such as charging lower prices, providing limited customer service, product/service standardization, and undertake limited market research.     

Strategic orientation and firm risk

Entrepreneurial orientation (EO) and market orientation (MO) have received substantial conceptual and empirical attention in the marketing and management literature and both orientations have consistently been linked to stronger financial performance. Yet the way in which market-oriented firms seek to achieve superior rents is substantively different from that of entrepreneurially oriented firms which could lead to differential impacts of EO and MO on firm risk. In this study, the authors employ a text mining technique to assess firms' EO and MO and examine the impact of these two strategic orientations on shareholder risk outcomes. The results show that while EO increases idiosyncratic risk, MO decreases it. However, only EO decreases systematic risk. Overall, the results of this study demonstrate that a firm's decisions regarding strategic orientation should be examined in light of both likely risks and returns in order to make appropriate resource allocation decisions.     

Impact of Market Orientation and ICT on the Performance of Rural Smaller Service Enterprises*

Market orientation (MO) is considered as a competitive strategy for the smaller service enterprises based in rural locations. A model is proposed and validated for the rural tourism sector that encompasses the effects of MO and of the use of information and communications technology (ICT) on business activity, taking into account the business's financial results, improvements to the rural location, and the more personal, intangible impact on the local entrepreneur. ICT is found to have a positive impact on MO and outcomes, whereas, similarly, the adoption of MO is found to have a positive effect on outcomes.     

The Complementary Effects of Market Orientation and Entrepreneurial Orientation on Profitability in Small Businesses*

Market orientation (MO) and entrepreneurial orientation (EO) are correlated, but distinct constructs. MO reflects the degree to which firms' strategic market planning is driven by customer and competitor intelligence. Entrepreneurial orientation reflects the degree to which firms' growth objectives are driven by the identification and exploitation of untapped market opportunities. When modeled separately, research has reported direct effects of both constructs on firm profitability. When modeled simultaneously, however, the direct effect of EO has disappeared. This has led some scholars to postulate that EO is an antecedent of MO. The results of this study contradict this presumption and suggest that EO and MO complement one another, at least in small businesses, to boost profitability. The major difference between this and previous studies is the inclusion of innovation success, which captures an indirect effect of EO on profitability. At least in small firms, the results suggest that EO complements MO by instilling an opportunistic culture that impacts the quality and quantity of firms' innovations.     

An examination of the relationships among market orientation,innovation resources,reputational resources,and company performance in the transitional economy of Slovenia

We investigated relationships among market orientation, innovation and reputational resources, and their impact on market performance and financial performance within the transitional economy of Slovenia. Market orientation related positively to market and financial performance of firms indirectly through innovation and reputational resources. Reputational resources associated positively with loyalty, market share, and sales volume, innovation resources associated positively with market share, and sales volume indirectly through customer loyalty. Selected marketing resources related positively to financial performance indirectly through customer loyalty, market share, and sales volume. The implications of these findings for theory and practice are considered. Copyright © 2007 ASAC. Published by John Wiley & Sons, Ltd.     

The quality of market-oriented behaviors: Formative index construction

Current measures of market orientation do not systematically capture the quality of market-oriented behaviors [MOBs] (Jaworski BJ, Kohli AK. Market orientation: review, refinement, roadmap. Journal of Market Focused Management 1996;1[2]:119-135). In a bid to address this issue, the authors develop formative indices of the key factors underlying market-oriented behavior quality, and empirically validate the indices using survey data from a sample of 253 marketing managers. Findings suggest that optimal market-oriented behavior involves many distinct activities, such as speed and formalization of information generation, dissemination and response, quantity of information generated, comprehensive information dissemination, and extent of information use, to name a few. For researchers, the findings expand the platform from which to generate fresh understanding of MOBs' antecedents and consequences. The indices also have diagnostic capabilities which can help managers understand how to improve the quality of market orientation within the firm.     

Global marketing strategy modeling of high tech products

This study considers the role of global marketing strategy and its relation to market orientation, international experience, and performance in the high tech products context. Knowledge of this important domain of global marketing strategy and performance remains limited. In this respect, the study raises a number of important questions concerning how market orientation, international experience and global marketing strategy impact performance. The study empirically tests predictions of relationships by using mail survey data from 172 business units of high tech firms. Findings from the research sample support the argument that market orientation, international experience, and global marketing strategy are the key antecedents of organizational performance. Market orientation and international experience influence global marketing. The article concludes with theoretical and managerial implications of the research findings.     

Determining Relationship Quality in the Development of Business-to-Business Financial Services

ABSTRACT

The quality of relationships built with customers during the New Service Development (NSD) process is a current concern of researchers in relationship marketing (and NSD) and is particularly important in a highly competitive environment characterised by rapidly changing customer needs like the one of financial services. The primary relationship analyzed in relationship marketing is the one between seller and buyer, but the focal type of relationship for new product and service development is the one termed “the knowledge relationship” (Gummesson 2002), a relationship used to create knowledge. This paper reports the results of in depth qualitative research on the factors that impact on the quality of such relationships developed between new service developers and their customers during the NSD process of business-to-business financial services. Results show that the most important factors that affect relationship quality are: communication quality of the relationship; the development of strong relationship bonds; the quality of relationship partners; a strong customer orientation in NSD based on a proactive approach of relationship partners during the NSD process, and proficiency in knowledge brokering.     

Toward a greater understanding of the market orientation and internal market orientation relationship

The study explores the relationship between market orientation (MO) and internal market orientation (IMO) using the process model of MO development. Data from 370 nonprofit organizations were analyzed using structural equation modeling with maximum likelihood estimation technique. The comprehensive CFA marker method was used to partial out the influence of social desirability bias on the substantive relationships. The study finds that MO works through IMO to elicit desirable employee outcomes, which also contributes to performance outcomes. IMO does not offer direct performance benefits, but it partially mediates the effect of MO on employee-related outcomes. Competing models offering alternative explanations are ruled out empirically by the superior fit of the theoretical model with the data. The study integrates IMO in Kohli and Jaworski’s model of antecedent and consequences of MO and encourages practitioners to embed IMO in their MO development plans.     

The role of entrepreneurial marketing in new technology ventures first product commercialisation

This paper sheds light on the importance of entrepreneurial marketing (EM) in the context of new technology ventures (NTVs) first product commercialisation. This study explores the role of EM expressed as the degree of complementarity between entrepreneurial orientation (EO) and market orientation (MO) in driving firms’ innovation activities including competence exploration and exploitation in achieving first product performance (FPP). The results of a survey drawn from Indian NTVs identify a significant effect for the complementarity of EO–MO on exploratory and exploitative innovation activities. Furthermore, the findings indicate a positive effect of both exploratory and exploitative activities in enhancing FPP and the contingency role of marketing capabilities (MCs) in enhancing the impact of competence exploration and exploitation in first product commercialisation.     

Strategic orientation and new product performance: The roles of technological capability

Although prior research has examined the linkage between strategic orientation and new product performance, existing empirical evidence suggests exploration of the effects of a firm's internal factors on this linkage is required. This study aims to fill the marketing literature gap by addressing how technological capability moderates the strategic orientation‐new product performance relationship. This study measures new product performance as a two‐dimensional construct to avoid the oversimplified bias. Research hypotheses are tested using a sample of 121 information system product projects and a hierarchical regression approach is utilized. Results show that (a) technological capability strengthens the market orientation‐performance relationship and (b) technological capability affects the financial performance effects of market and technology orientations via market performance. Copyright © 2014 ASAC. Published by John Wiley & Sons, Ltd.     

Market orientation in the context of SMEs: A conceptual framework

A number of studies in the marketing literature have examined the construct of market orientation (MO). These studies generally show a positive link between MO and organizational performance. This paper examines MO specifically in the context of small and medium sized enterprises (SMEs). An in-depth review of the extant literature is used to develop a conceptual framework by exploring the major antecedents of MO, the MO–Performance relationship, and the key mediators and environmental moderators of this relationship. This paper also examines several studies on SMEs with respect to various aspects of this framework and offers suggestions for future research in order to understand more thoroughly how MO influences SME performance.     

The Methuselah Market Part II: Decision making and the older consumer

This is the second of two papers on the Methuselah Market, defined as those people within five years of retirement age. The first paper discussed the size, characteristics and potential of the market and identified product areas of particular interest. This second paper reviews the literature on the decision making behaviour of the older consumer and suggests marketing strategies which are particularly relevant to the Methuselah Market.     

The Status of Marketing in the UK Service Industries

This article describes the status of marketing in the UK service industries based on a sample of 320 service companies. It draws comparisons between service marketing companies and product marketing companies in terms of marketing orientation and marketing practice. Some significant differences are found between the two types of companies and it is suggested that there is scope for increased marketing professionalism in many service industries; and a greater sensitivity to market needs is required as markets become more competitive.     

Current Marketing Practices and Market Orientation in the Context of an Emerging Economy: The Case of Uruguay

This research explores the link between contemporary marketing practices, market orientation (MO), and business performance in Uruguay, an emergent country that has recovered from an economic crisis. These approaches seem to be related but there is no existing evidence to confirm this impression. Lessons can be learned from understanding how effective the adoption of marketing practices is under a crisis scenario. Using data from interviews with 143 micro and small firms' managers, we identify three clusters dependant on the combination of marketing practices: a multimarketing cluster, a medium‐level relationship marketing cluster, and a transactional cluster. A model relating MO components and various performance measures is tested for the three clusters, showing that the multimarketing and transactional clusters are more effective in translating efforts and resources into business outcomes.     

Market orientation and customer-based corporate brand equity (CBCBE): a dyadic study of Indian B2B firms

The relationship between market orientation (MO) and one of its most important consequences – firm performance – has received considerable attention in marketing research. Performance has been largely judged through financial or objective measures. This paper connects assimilation of MO in firms with corporate brand performance since academics have not used judgmental or market-based measures in assessing performance. We have introduced customer-based corporate brand equity to obtain a rounded idea of firm performance. This is achieved through a dyadic study, instead of self-assessment, wherein the marketing chiefs of B2B firms and their respective organisational customers are surveyed to gauge the effects of incorporating MO. We have shown that corporate brand performance is enhanced significantly in the presence of organisational innovativeness. From a practitioner’s perspective, the study details the organisational actions to be taken to assimilate MO and how those can be exploited to enhance corporate brand performance.     

Marketing planning: Operationalising the market orientation strategy

Abstract

Despite strong empirical validation of the relationship between market orientation and business performance, the literature is inconclusive on the implementation of the strategy. This paper reviews the implementation of market orientation, and investigates the associations between market orientation and marketing planning and their associations with business performance. A survey of 216 Australian larger business organisations was conducted to find evidence of these relationships. The results highlight a close association between market orientation and marketing planning, with virtually the same level of association between them, and the business performance measures used. This evidence suggests that they arguably represent the same domain. The results suggest that marketing practitioners may use the marketing planning technique as an intangible productive resource to operationalise the market orientation strategy, and use it to design a specific style and magnitude of market orientation suitable for an organisation.     

Market Orientation in a Sample of Food and Beverage Processing Firms in the Western Province,Sri Lanka

This study empirically investigates the market orientation strategy of firms operating in the food and beverage industry in the Western Province of Sri Lanka. Market orientation was conceptualized through three sets of activities: intelligence generation, intelligence dissemination, and responsiveness. Firms were grouped based on the level of market orientation and were compared. It was revealed that one group had a separate marketing division with specialized marketing personnel and a positive top management philosophy toward market orientation. Firms in this group showed a greater level of performance compared to firms in other groups.     

Strategic consequences of self-service technology evaluations

This article develops a conceptual model of self-service technology (SST) evaluations on customer-centric (loyalty, trust, and word of mouth) and firm-centric (profitability and enterprise value) strategic consequences to guide future research and help practitioners better understand the potential benefits and risks associated with satisfied (dissatisfied) SST customers. An SST evaluation is a post-use assessment of service quality and performance perceptions during an SST service encounter. This article synthesizes prior research to develop generalizations about conceptual relationships with and among the outcomes of SST evaluations. Iterative positive (negative) SST encounters cumulatively improve (diminish) customer relationships and the marketer’s financial success. Given the phenomenal rise and anticipated growth in SST use, this model provides a much-needed framework to organize the emerging literature into a coherent structure that summarizes past research and guides new discoveries about the implications of SST service evaluations through a set of research propositions based in marketing theory.     

The impact of market orientation on patient loyalty: the mediation of relationship quality

In health services, how to establish good relationships with patients and enhance patient loyalty has been crucial for service managers. We explore the impact that patients’ perceptions of market orientation direct effect on patient loyalty to a hospital as well as indirect effect via the mediation of relationship quality. Self-administered questionnaires were employed to collect data from outpatients. 450 questionnaires were valid. Results showed that market orientation had a direct positive impact on patient loyalty to the hospital and an indirect positive impact via the mediation of relationship quality and patient loyalty to a physician.