Market Orientated Businesses

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Last updated: May 31, 2019

FACULTY:Original Work – 25th October 2010 NAME:Daniel Crickmore Discuss, with reference to current authors, what is meant by a “marketing orientation” and/or a “marketing oriented company. ” Illustrate your answer with examples of products or brands of your choice. “Because the purpose of business is to create and keep customers, it has only two central functions – marketing and innovation. The basic function of marketing is to attract and retain customers at a profit. ” (Dricker. P.

E. (1999) Taken from Principles and Practice of Marketing 6th Edition, Page 3, McGraw-Hill)Today’s society is always on the look out for the next best product, the next best brand and the next best style. For businesses all over the UK, and around the world, adapting to changes is vital to be successful in the long term in this student’s opinion. Market orientation is just that. Businesses should constantly be looking at the market for what their customers, their target market wants from them with their goods or services. They have to know what their customer’s attitudes are, views are, styles are and loyalties are.Retaining and attracting customers through marketing is not the only central function as Dricker, P.

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E states. “A market orientation is a business culture in which all employees are committed to the creation of superior value for customers. ” (Narver.

C. J /. Slater.

F. S / Tietje. B, Creating a Market Orientation, Journal of Marketing) This comment shows us that employees are just as important. Personnel play a vital role and are the most valuable asset a business can own due to the skills and unique personalities.Customer service plays an essential role in keeping and retaining customers, maybe even more affective than marketing, due to the fact they are the front of the business, what customers see day to day. Market Orientation: Figure 1: (Jobber. D (2010) Page 5) Figure 1 shows us that businesses rely on customer’s needs to innovate new products, and then again they rely on customers buying the products/service in order to make a profit.

Businesses need to establish their place in the market, and to do this need to listen to their target market.The external environment for businesses is the key to be a successfully market oriented company, due to the fact that external factors cannot be controlled. These factors are broken down into four groups known as S.

T. E. P (Cheeseman.

A. (2010) Lecturer, University of Lincoln). First is Socio-Cultural Environment which is the demographic of your target market as well as people’s views, influences and general tastes/demands. Secondly is Technological Forces, being up to date with recent innovation, expanding or extending products life cycle.Thirdly would be Economic and Competitive Influences upon the business.

Taxation, interest rates as well market structure (whether it’s a monopoly, oligopoly or perfect competition) will all influence a businesses marketing mix. Finally there is Political and Regulatory Influences which is the laws, regulatory bodies that control the market in such ways as advertising standards, stock markets, and financial services authority. All four of these factors influence how businesses operate within certain markets, and paying less attention to one will have a grave affect upon your business. Though assessment of customers needs is the cornerstone of a market orientation, defining customers may not be simple. ” (Kohli. A.

K & Jaworski. B. J (April 1990) Journal of Marketing, Volume 54) Finding out about customer’s needs is known as segmentation, breaking up the market into demographical groups; such as age, location, sex, hobbies. Businesses need to then pick who their product is aimed at, say men aged 25-40, targeting a certain section of society. Positioning your brand within the market is the final step before creating your marketing mix.

Determining your price of the product and how exclusive will determine your market share, whether you go for the mass market, the undifferentiated strategy, or the concentrated strategy, selecting certain customer attributes, such as large disposable incomes groups. Marketing is mainly all about the four P’s; Price, Place, Product and Promotion (Hall. S, Jones. R, Raffo C, Anderton. A (2008) Page 190-192).

Having the right mix is essential for any business operating in highly competitive markets. Your mix must come from the research and classification of that research to determine exactly what your market wants from your brand.A fantastic example of a business that has got this right time and time again is the famous brand of Cadburys. “Cadbury, a brand known and loved around the world, had humble beginnings. ” (www. bbc.

co. uk, Accessed on 15/10/2010) Having such a huge influence within the UK market, as many brands do, (Kunde. J (2002) Page 22) Cadburys needs to ensure their marketing mix is 100% right. Their Pricing is set along side other competitors such as Galaxy, Nestle and Mars meaning they are all directly competing for the quality of the products.To ensure quality remains high, yet costs are kept low, Cadburys can rely on economies of scale due to the size of their business, and therefore can maximise its pricing competitiveness within its market. Being such a large corporation, Cadburys has a vast array of products from; Hot Chocolate, Cream Eggs, Chocolate Bars, Jelly Babies and many more. All of their Products are well known throughout the UK due to their quality as well as the companies brand image.

When it comes to Place, Cadburys is in every corner shop, supermarket, wholesalers, petrol station and even clothes stores like Top Shop.Cadburys has such a large scale of contact with consumers on a daily basis. Promotion of the brand and its many produce for Cadburys is quite a challenge seeing as there are many substitute products out there.

TV is a powerful tool; millions of people watch it everyday, however it is the most expensive form of marketing within the UK. For Cadburys this is not an issue, and their latest advertising campaigns have been among the best adverts on TV ever in this student’s personal opinion. After their famous advert involving the drumming Gorilla, sales of Dairy Milk rose by 10% (Cheeseman.

A. (2010) Lecturer University of Lincoln). Cadburys marketing mix is definitely one that is well planned, well executed, and is highly successful; due to the fact its marketers are up to date with the markets needs and views. S. T.

E. P is at the heart of their entire marketing mix to ensure sales are steady, and its products life cycles do not die. Product oriented businesses tend to lack behind market oriented businesses in many ways; from iconic advertising, to well designed, appealing stores.

Take for example M&S, they were the No. retailer in the UK for twenty years (Cheeseman. A. (2010) Lecturer University of Lincoln), then they stopped listening to the market.

Without listening to the market, M&S fell behind important competitors such as Next, Gap, Top Shop and Ware House. Something had to be done to change this, so they looked at their market, came up with a new S. T.

P (Segmentation, Targeting and Positioning), and formed a new marketing mix with successful advertising campaigns and launching of new, improved products. Their 2009 Christmas TV advert was simple (M&S Christmas Advert (2009) www. outube. com, Accessed on 22/10/2010), yet affective, showing that M&S are still at the top of their game, and haven’t lost their traditional style, or panache with their food or clothing products. Creating a recognisable style of advertising that people can relate to time and time again. Honda did the exact same thing. They looked at consumer perception of the brand, and found it was dull, boring and not their first choice when going to buy a car. Honda looked at this, and designed new products to suit an undifferentiated market such as the Accord, Civic and Jazz.

One of their most recent adverts focusing on the whole business (Honda Impossible Dream, www. youtube. com, Accessed on 22/10/2010), not just cars, shows at the end a balloon rising from a waterfall, representing the brand rising up to achieve new things. Businesses need to focus on what consumers want, or they will, like M&S and Honda, fall behind competitors in such competitive markets where brand recognition is so highly influential on consumer behaviour.

Advertising for businesses is essential to raise brand awareness and let the public know what you offer, and who you are offering it to.Take the AA advert with the tune “You’ve got a friend. ” (www. visit4info. com, Accessed on 15/10/2010) This advert focuses on families mainly, saying ‘look if you break down, we will always be here for you’. When buying breakdown service, that’s what you want, it ties into people’s emotions and gets them interested in the company and what they have to offer on a more personal level.

The AA have looked at the type of people who by their product/service and created promotions to suit their worries, and offering them a simple solution. Virgin, one of the biggest companies in Britain, has very iconic dvertising style which appeals to its type of consumers. Using vibrant, bright and sexy red that makes the brand standout and appealing to customers; really vitalising and making the brand. They have created an iconic advert that everyone within their target market will relate to. “Virgin Atlantic has launched a ? 6m campaign celebrating its 25th anniversary with a retro TV ad. ” (Sweney.

M, www. gurdian. co. uk, Accessed on 10/10/2010) Virgin Cabin crew, showing off their bright uniform, standing out from the rest of the crowd and recent troubles shown in a dull, 1980’s setting.Sir Richard Branson (Founder and Head of Virgin) wants to show his airline is different, exiting, more reliable than all his competitors, his airline is the flag ship carrier of Britain. “The chairmen of Virgin Group is a walking brand, with enormous value. ” (Kunde. J (2002) Page 22) He is the status of the business through what he has achieved and portrays his business to be.

His character and personality really shows off in the business, and he is highly respected throughout his business by staff and fellow businessmen (Lamping. T, University of Lincoln, 04/10/2010).Virgin has positioned its self as an exclusive brand, who wants to attract the right customers to its business. Take Rolex, people would not call it cheap, its marketing mix has been carefully organised to attract the right people, and display the image of its brand. Being a market oriented business is not all about creating the right advert, the right poster or offer; products/services play a vital role in every business. Apple, famous for its innovation, convenience, style, branding and simplistic ways thinks of its products highly.

In April 2010, Apple finally overtook its main rival, Microsoft, in terms of turnover. “Apple’s capitalization closed at $222bn compared to Microsoft’s $219bn. ” (Stokdyk. J, www. accountingweb. co. uk, Accessed on 10/10/2010) The brand has diversified from being something whereby your whole CD collection can be in one object, to the I-Phone, which can hold your CD collection, as well as let you ring mum, play games, check stocks, Facebook and thousands of other things.

“New technologies create new markets and opportunities. (Armstrong/Kotler (2005) Page 89) Some businesses don’t just follow change in the market, some businesses go out there and make the change; they place their products at the forefront so others have to catch up. Like Apple does with its entire range of products, continually developing its products further enhances the brand. “Consumer behaviour lies at the heart of modern marketing. The successful marketer is one who effectively develops products and brands that are of value to consumers, and who effectively presents these products and brands to consumers in appealing and persuasive ways. (Runyon. K. E & Stewart.

D. W (1987) Page 7) This view is essential to all businesses. Look at all of the top brands in the UK; Coca Cola, Top Shop, Next, Waitrose, they all look at their customers needs and create adverts, or offers to suit them and their current trends and opinions. Businesses cannot control S.

T. E. P, they can only Segment the market, Target who they want, Position themselves where they wish to be in the market, and adapt/create a marketing mix reflecting their findings/decisions. AA Member Service – The AA You Got A Friend, http://www. visit4info. om/advert/The-AA-You-Got-A-Friend-AA-Member-Services/30639, Accessed on 15/10/2010, Uploaded on 03/03/2006 Armstrong/Kotler (2005) Marketing: An Introduction 7th Edition, Page 89, Pearson – Prentice Hall Cheeseman.

A, Lecturer, University of Lincoln, Brayford Pool, Lincoln, Lincolnshire, LN6 7TS Dricker. P. E. (1999) Taken from Principles and Practice of Marketing 6th Edition, Page 3, McGraw-Hill Hall. S, Jones. R, Raffo C, Anderton.

A (2008) Business Studies, A Level, AQA, Forth Edition, Page 190-192, Pearson – Longman Honda Impossible Dream, http://www. youtube. com/watch? =0vbqN9bB1MI, Accessed on 22/10/2010 Jobber. D (2010) Principles and Practice of Marketing 6th Edition, Page 5, Figure 1. 3, McGraw-Hill Kohli. A. K & Jaworski.

B. J (April 1990) Market Orientation: The Construct, Research Propositions, and Managerial Implications, Journal of Marketing, Volume 54 Kunde. J (2002) The Brand is the Company Driver in the New Value Economy, Page 22, Prentice Hall (Financial Times) Lamping.

T, University of Lincoln Lecturer, BBC Documentary from 2003 shown in Lecture on 04/10/2010 between 9am – 10am M&S Christmas Advert 2009, http://www. youtube. com/watch? =0vbqN9bB1MI, Accessed on 22/10/2010 Narver.

C. J /. Slater. F. S / Tietje.

B (1990) Creating a Market Orientation, Journal of Marketing Revenue recognition switch helps Apple overtake Microsoft, http://www. accountingweb. co. uk/topic/financial-reporting/recognition-switch-helps-apple-overtake-microsoft/428644, Accessed on 10/10/2010, Stokdyk.

J in Financial Reporting, Technology, accountingweb Runyon. K. E & Stewart. D. W (1987) Consumer Behaviour Third Edition, Page 7, Merrill Publishing Company Timeline: Cadburys Long History, http://news. bbc.

co. uk/1/hi/england/8467489. tm, Accessed on 15/10/2010, Story from BBC News, Published on 19/01/1020 Virgin Atlantic goes back to 1984 – Rubik’s Cubes and all – for 25th birthday TV ad, http://www. gurdian.

co. uk/media/2009/jan/05/virgin-atlantic-1980s-rubiks Accessed Online on 10/10/2010, Sweney. M, MediaGuardian Advert first aired in January 2009 Links to Adverts Mentioned: Cadburys: Gorilla Advert: http://www. youtube. com/watch? v=TnzFRV1LwIo&feature=&p=747141F39FD2B44A&index=0&playnext=1 AA: I’m Yours Advert: http://www.

youtube. com/watch? v=N9tRyWEgTbg M&S: Christmas 2009 Advert: http://www. youtube.

com/watch? v=0vbqN9bB1MIHonda: Impossible Dream Advert: http://www. youtube. com/watch? v=fB_1gPRCLCo Virgin: 25th Anniversary Advert: http://www. youtube.

com/watch? v=6cM4EOeJzHA Bibliography: • Armstrong/Kotler (2005) Marketing: An Introduction 7th Edition, Page 89, Pearson – Prentice Hall • Chessman. A, Lecturer, University of Lincoln, Brayford Pool, Lincoln, Lincolnshire, LN6 7TS • Dricker, P. E. (1999) Taken from Principles and Practice of Marketing 6th Edition, Page 3, McGraw-Hill • Hall. S, Jones. R, Raffo C, Anderton. A (2008) Business Studies, A Level, AQA, Forth Edition, Page 190-192, Pearson – Longman • Jobber.D (2010) Principles and Practice of Marketing 6th Edition, Page 5, Figure 1.

3, McGraw-Hill • Kenneth E. Runyon & David W. Stewart (1987) Consumer Behaviour Third Edition, Page 7, Merrill Publishing Company • Kunde J (2002) The Brand is the Company Driver in the New Value Economy, Page 22, Prentice Hall (Financial Times) • Lamping. T, Lecturer, University of Lincoln, Brayford Pool, Lincoln, Lincolnshire, LN6 7TS • Runyon. K. E & Stewart. D.

W (1987) Consumer Behaviour Third Edition, Page 7, Merrill Publishing Company • Kohli. A. K & Jaworski. B.J (April 1990) Market Orientation: The Construct, Research Propositions, and Managerial Implications, Journal of Marketing, Volume 54 • Narver. C. J /.

Slater. F. S / Tietje. B (1990) Creating a Market Orientation, Journal of Marketing • http://www. accountingweb. co.

uk/topic/financial-reporting/recognition-switch-helps-apple-overtake-microsoft/428644 • http://news. bbc. co. uk/1/hi/england/8467489. stm http://www. gurdian. co. uk/media/2009/jan/05/virgin-atlantic-1980s-rubiks • http://www.

honda. co. uk/cars/? s3campaign=Cars_09_Brand_Single_Term&s3advertiser=Google_PPC&s3banner=honda • http://www. hetimes100. co. uk/theory/theory–market-product-orientation–211.

php • http://www. visit4info. com/advert/The-AA-You-Got-A-Friend-AA-Member-Services/30639 • http://www. youtube.

com/watch? v=0vbqN9bB1MI • http://www. youtube. com/watch? v=6cM4EOeJzHA • http://www. youtube. com/watch? v=fB_1gPRCLCo • http://www.

youtube. com/watch? v=N9tRyWEgTbg • http://www. youtube. com/watch? v=TnzFRV1LwIo&feature=&p=747141F39FD2B44A&index=0&playnext=1 ———————– Customer Needs Marketing products and services Potential market opportunities Customers

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