Theories of Marketing - 6314M0185Y
Masters in Business Administration - Mandatory course for all tracks
Week 2 Lecture 1:
Market orientation Articles 1 & 2
History of marketing as a business philosophy: the marketing concept represents how to become
successful as a business, how you produce more effectively but now we see that when you listen carefully
to the customer you can actually create something that makes a lot of value for you customer in
comparison to your competitor.
- Start with the customer rather than what you can create with your ingredients.
Market orientation: (Narver and slater 1990)
- Development in marketing thinking
- Looking for scientific proof on management concepts that were already flying around.
- It is important to measure because they want to measure this and know how effective it is, and
you need more quantitative proof. Also gives you if you know how to measure it you know how
to influence it so you know how to become more market-oriented.
Market orientation as a culture
- The whole idea of MO is the set of beliefs that puts customers' interests first.
MO as behavior:
-basically, the article tells that there are 3 dimensions to generate, disseminate and use superior
information about customers and competitors.
Interfunctional coordination- is coordinating all the functions within the company, get the data in and then
the whole company needs to be working on that. → this is important because everyone is working
towards a common goal, and is aligned to work towards this.
Reading questions (see Perusall):
• What is the core of this definition and how is it related to marketing and the
marketing concept?
• Why is it important to measure this concept?
• Can you explain why some companies benefit more from (investments in) Market
Orientation than others?
Statement: Marketing Orientation is the implementation of the marketing concept.
→ Marketing concept: when you start thinking from the market, very similar to MO, however MO gives
you the actual behavior necessary to actually do that. The term marketing concept does not refer to four P
and so, but the marketing concept refers to starting from the consumer not from our own production
process.
,Article 1: Narver Slater 1990
Important and classic article that has generated a broad stream of research on Market
Orientation
1) measurement of Market Orientation
• New measure development
• Reliability
• Construct validity
2) effect on profitability
• Differences between (non)commodity markets
• Inclusion of control variables
,Commodity market is different because they are raw materials, are very similar and they only compete on
price, and have very little to differentiate. If you invest a little bit in market orientation you will only
increase your costs but your differentiation is not going to be a lot.
There is a U shape for the commodity market because If you don't do anything you are more successful
than if you don't do anything or you do the whole way and if you start differentiating massively in a
market that was only differentiating on price. It requires quite an investment and a change in the system.
Non Commodity markets can create superior value more easily, since they can adapt generic products to
create customer value. And can play into customer orientation easily.
Article 1: Market orientation-
Effect of MO over time
Did market orientation become obsolete?
A lot of people don't know what they want until you show them, originally marketing orientation was
thinking that they should ask the customer what they wanted. So just listening might not be the best rule
to pursue and at that point in time there were so many innovative ideas to pursue.
Article 2: different views on MO
, Responsive view MO- customer led- asking people what they want
Proactive view MO- market oriented
An example of this can be wireless headphones, ipads, iphones, apple watches, fax machines and a lot of
technological advances. People cannot even imagine that they need it until it is there.
- Sometimes it pays off to think ahead and how something can help people even before they realize
they have a problem.
→ When you are very proactive (market oriented) you can't show the numbers, you can't show the
evidence that people want something because you are targeting something that people don't even know
they want. A lot of times people might not believe it.
Is one more important than the other?
- It really depends on the industry
- Is there a downside of always being the proactive one? →
- EXAMPLE: Apple were the first to take the first mobile phones until the smart phone
arrived, which was a totally new way of thinking. The mp3 market was already there but
there were big barriers to using it.
- However this came at a downside, when you held the phone a certain way the antenna
would not work.
Masters in Business Administration - Mandatory course for all tracks
Week 2 Lecture 1:
Market orientation Articles 1 & 2
History of marketing as a business philosophy: the marketing concept represents how to become
successful as a business, how you produce more effectively but now we see that when you listen carefully
to the customer you can actually create something that makes a lot of value for you customer in
comparison to your competitor.
- Start with the customer rather than what you can create with your ingredients.
Market orientation: (Narver and slater 1990)
- Development in marketing thinking
- Looking for scientific proof on management concepts that were already flying around.
- It is important to measure because they want to measure this and know how effective it is, and
you need more quantitative proof. Also gives you if you know how to measure it you know how
to influence it so you know how to become more market-oriented.
Market orientation as a culture
- The whole idea of MO is the set of beliefs that puts customers' interests first.
MO as behavior:
-basically, the article tells that there are 3 dimensions to generate, disseminate and use superior
information about customers and competitors.
Interfunctional coordination- is coordinating all the functions within the company, get the data in and then
the whole company needs to be working on that. → this is important because everyone is working
towards a common goal, and is aligned to work towards this.
Reading questions (see Perusall):
• What is the core of this definition and how is it related to marketing and the
marketing concept?
• Why is it important to measure this concept?
• Can you explain why some companies benefit more from (investments in) Market
Orientation than others?
Statement: Marketing Orientation is the implementation of the marketing concept.
→ Marketing concept: when you start thinking from the market, very similar to MO, however MO gives
you the actual behavior necessary to actually do that. The term marketing concept does not refer to four P
and so, but the marketing concept refers to starting from the consumer not from our own production
process.
,Article 1: Narver Slater 1990
Important and classic article that has generated a broad stream of research on Market
Orientation
1) measurement of Market Orientation
• New measure development
• Reliability
• Construct validity
2) effect on profitability
• Differences between (non)commodity markets
• Inclusion of control variables
,Commodity market is different because they are raw materials, are very similar and they only compete on
price, and have very little to differentiate. If you invest a little bit in market orientation you will only
increase your costs but your differentiation is not going to be a lot.
There is a U shape for the commodity market because If you don't do anything you are more successful
than if you don't do anything or you do the whole way and if you start differentiating massively in a
market that was only differentiating on price. It requires quite an investment and a change in the system.
Non Commodity markets can create superior value more easily, since they can adapt generic products to
create customer value. And can play into customer orientation easily.
Article 1: Market orientation-
Effect of MO over time
Did market orientation become obsolete?
A lot of people don't know what they want until you show them, originally marketing orientation was
thinking that they should ask the customer what they wanted. So just listening might not be the best rule
to pursue and at that point in time there were so many innovative ideas to pursue.
Article 2: different views on MO
, Responsive view MO- customer led- asking people what they want
Proactive view MO- market oriented
An example of this can be wireless headphones, ipads, iphones, apple watches, fax machines and a lot of
technological advances. People cannot even imagine that they need it until it is there.
- Sometimes it pays off to think ahead and how something can help people even before they realize
they have a problem.
→ When you are very proactive (market oriented) you can't show the numbers, you can't show the
evidence that people want something because you are targeting something that people don't even know
they want. A lot of times people might not believe it.
Is one more important than the other?
- It really depends on the industry
- Is there a downside of always being the proactive one? →
- EXAMPLE: Apple were the first to take the first mobile phones until the smart phone
arrived, which was a totally new way of thinking. The mp3 market was already there but
there were big barriers to using it.
- However this came at a downside, when you held the phone a certain way the antenna
would not work.
