Strategic vision of meeting the needs of customers. This helps define the role of employees more clearly. Marketers must perform diligent research to uncover needs and convey messages that explain benefits. Production should focus on fine-tuning products to meet the needs of customers. Support and service should have openness to customer feedback to report back to production and research. Company leadership must set the tone by making customers the priority. When companies have a good understanding of what the market needs or wants, they have better ability to market effectively to them.
Marketers research the market well to understand not only what is needed, but how to convey messages that clarify how their products align with those needs. Consistently understanding and delivering what the marketplace wants leads to long-term profitability. Companies can turn one-time buyers into repeat customers, with an ultimate goal of developing many loyal customers. Loyal customers buy more frequently and in larger volumes. They are also less susceptible to competition and more willing to pay higher prices.
All of these business benefits mean the company has much better ability to remain viable and successful as long as it retains the marketing concept. Financial Performance There have been positive relationships found between market orientation and a range of financial performance measures including business profitability, operating profits, profit-sales ratio, cash flow, return on investment, return on assets, and long run financial performance. Being able to demonstrate the impact of market orientation on a company’s bottom line is important if funds are going to be devoted to developing a market orientation.
The impact of a market orientation on a company’s financial performance stems from the provision of superior customer value. If an organization offers a product with period customer value, then they will have more satisfied customers, more repeat sales, and therefore greater sales revenue. If customers are satisfied they will also be a source of word-of-mouth recommendations, hence increasing sales and profits further. Much of the improvement in financial performance may come about from the organization being integrated in its approach to satisfying customer needs.
Implementing a market orientation program can act as an initiative to eliminate activities and processes that do not add value to the customer. As information is disseminated, activities that are performed in duplicate are also identified and eliminated. This reduces internal costs and impacts on operational efficiency and the beet level 4 marketing principles assignment By lawpuiying2516 By adopting the marketing concept, companies have all functions aligned with the Employee Satisfaction An organizational commitment to a market orientation has been found to have benefits for employees as well as customers.
An important component of developing a market orientation involves making employees aware of the common goal they are trying to achieve (customer focus), and understanding what their individual role is in this process. This decreases role ambiguity and demonstrates to employees that they are making a positive contribution to the organization. Employees derive a sense of pride in their own work and in belonging to an organization with a positive focus. Therefore, accomplishing this objective leads to Job satisfaction, commitment to the organization, and trust in senior management.
Subsequently, a better work environment for employees and increased productivity leads to overall organizational success. From the organization’s viewpoint additional benefits of developing a market orientation include increased productivity, worker satisfaction, employee quality of ark life, lower turnover and absenteeism, and improved international teamwork. When employees identify with the norms and values of an organization (such as market orientation), they are less inclined to be discouraged with their work and resign. Therefore, the costs associated with hiring new employees are minimized. Employees aware of the common goal they are trying to achieve customer focus, and and in belonging to an organization with a positive focus. Therefore, accomplishing this objective leads to Job satisfaction, commitment to the organization, and trust in senior management. Subsequently, a better work environment for employees and increased productivity leads to overall organizational success. From the organization’s viewpoint additional benefits of developing a market orientation include increased productivity, worker satisfaction, employee quality of work life, lower turnover and absenteeism, and improved international teamwork.
When employees identify with the norms and values of an organization such as market orientation, they are less inclined to be discouraged with their work and resign. Product Innovation There are two conflicting viewpoints on whether market oriented companies are ore proficient at releasing successful new products than non-market oriented companies. A company can be market-focused and develop successful new products. Research and development and stifle creativity. They believe that if firms were to rely on customer opinions then products such as the microwave oven would never have been invented, as customers cannot perceive what doesn’t exist.
This view suggests that customers are unable to express their latent needs or think outside of improvements to existing products. The opposing notion is that if a company focuses on generating market information it s more likely to identify relevant latent customer needs and act on market opportunities they identify. This suggests that an organization can be both market- oriented and entrepreneurial simultaneously. Research by Lukas and Farrell (2000) has added support to this notion by identifying that a customer oriented company is more likely to develop radical new product innovations.
Market Orientation and Market Share Although the evidence stacks up in favor of a strong relationship between market orientation and business performance, the issue is not black and white and some conflicting results have been found. A large number of published studies have examined the relationship between market orientation and performance. Dates (2000) summarized the findings of relevant Journal articles published from 1990 – 1999 and found that 30 of the 36 studies found a positive relationship between market orientation and performance Relational Marketing The basic marketing transaction is that between the seller and a buyer.
The basic purpose of all marketing is to use a value exchange process between provider (seller) and buyer to achieve objectives There are however two basic versions of marketing – the traditional (older) Transactional Marketing and the more recent Relational Marketing Strategy. Both still operate today, but one has inherently more Likelihood of longer term success – Relational Marketing Strategy. While Transactional marketing is focused on provider (seller) achieving their objectives, Relational Marketing Strategy, is focused on both buyer and provider (seller) achieving their objectives by working together.
Transactional marketing The primary purpose of Transactional Marketing (TM) is to “make a sale” now or soon; to conduct an exchange which primarily aims to meet the needs and objectives of the supplier/seller. In this TM is an inwards focused (company’s interests) approach. It is an approach that focuses upon developing short term (basically single) transactions with buyers. In most instances, it is only a secondary intention to develop a longer term series of sales. The key approach is centered on a set of single sales (Buy Now! ) rather than a EX..
The TM approach tends to be characterized by an emphasis on relatively short term tactical methods (for example Promotion and Pricing) but there may be a TM focused strategy used as well. Transactional Marketing(TM) usually characterized by predominantly one-way communication methods. The focus is on making a sale of the organizations Product – not creating an on-going customer. There are different degrees of closeness to buyers/consumers “Transactional marketing focuses on maximizing the profit of the company by recruiting more and more customers to purchase the firm’s product. ” (M. W.
Violin, T. O. Moan, 2007, peg 53) There can be many such transactions, but each is seen as a single activity and not part of a planned on-going relationship. The emphasis is on maximizing the efficiency and volume of individual sales rather than developing a relationship with the buyer. It tends to be a long term activity Relational marketing strategies Essentially, transactional marketing focuses on getting the customer to buy a certain product and walk away, whilst relational marketing sees the sale as the first step in the building of a relationship – creating an on-going customer.
The primary purpose of developing Relational Marketing Strategies (ARMS) is to establish, enhance, maintain and commercialism longer term, on-going customer relationships so the objectives of both the parties are met. Relational Marketing Strategy refers to the primary strategic goal (and attendant objectives) of building long-term and mutually beneficial arrangements where both he buyer and seller have an interest in maintaining a more satisfying exchange.
Relational marketing strategies bring customer eccentricity to the spotlight. Thus, if the organization can build a relationship with the customer – find out who he is, what these needs will be – , it will be able to gain a lot more than Just a single sale. Association characterized by purposeful cooperation and mutual dependence and the development of social, as well as structural bonds. Where the customer, rather than a product (goods and services), is the centre of all marketing activities.
As a practice, Relational Marketing Strategy differs from Transactional forms of marketing in that it recognizes and focuses (strategically) on the value of building and maintaining customer relationships as the path to long term success. Differences Transactional Marketing Primary focus on achieving organizational objectives Single purchase Limited to moderate customer contact Focus on both product features and benefits Emphasis on short-term performance Limited customer service Short term goal of customer satisfaction Limited commitment to customer Quality a manufacturing responsibility Focus on customer retention Repeated sales
Product benefit orientation Close/frequent customer contact Greater use of social media Goal of delighting the customer Primary focus on value to customer Emphasis on longer-term activities High level of customer service Providers, who make trading company resources ordinary course of business, are organizations and individuals that provide firm inputs (materials and supplies, machinery, equipment, energy, packaging, labeling, services, financial, informational, etc. ).
Suppliers should look not only to their traditional sense , but as public or private service providers (transport units , repair and maintenance, mail, telephone , eelgrass , internet service providers and suppliers of human resources ( labor distribution offices Jobs, Job fairs organizers, educational and vocational training , head- Hunters ) . Alt is very important on the one hand monitoring of suppliers, on the other hand establishing trust and long term, achieving a mutual interdependence. Customers trading company is the most important component of the company’s micromanagement, the starting point needs to substantiate policy objectives marketing. Depending on their status and the nature of the claims against the company products , customers are final consumers of products who make the arrest for the company’s products , intermediate (rarely used in the productive goods market) and are represented by firms that facilitate promotion, sale and distribution of goods to the final consumer in the form : traders( wholesalers ), physical distribution firms( trade , transport, etc. , marketing service agencies( advertising agencies), financial intermediaries, banks, insurance companies and so on. A customer’s decision to return or not trade company is determined by several factors, emotional, such as: overall satisfaction, intention to return for shopping, intention to recommend a brand, a product or service. The consumer is, at the same time, convenience and risk. Today consumers are aware of and care about what they buy, how to do, what to do and how the product is packaged.
The way consumers gather and share information has changed, customers are connected to the Internet more than ever. Spread information instantly, globally. Sustainability is a business imperative. Consumers want to act and buy sustainable products, but are limited by three key barriers: high price, confusion and lack of confidence, the availability of alternatives.