Market orientation

Market orientation

Market orientation perspectives include the decision-making perspective (Shapiro, 1988), market intelligence perspective (Kohli and Jaworski, 1990), culturally based behavioural perspective (Narver and Slater, 1990), strategic perspective (Ruekert, 1992) and customer orientation perspective (Deshpande et al., 1993).

The two most prominent conceptulizations of market orientation are those given by Kohli and Jaworski (1990)and Narver and Slater (1990). While Kohli and Jaworski (1990) considers market orientation as the implementation of the marketing concept, Narver and Slater (1990) considers it as an organisational culture.

Kohli and Jaworski (1990) defined market orientation as "the organization-wide generation of market intelligence, dissemniation of the inteligence across departments and organization-wide responsiveness to it" [1]

According to them, the marketing concept is a business philosophy, whereas the term market orientation refers to the actual implementation of the marketing concept. They added that "a market orientation appears to provide a unifying focus for the efforts and projects of individuals and departments within the organization."

On the other hand, Narver and Slater (1990) consider market orientation as an organisational culture consisting of three behavioral components, namely, i) customer orientation, ii) competitor orientation and iii) interfunctional coordination.

Market orientation measurement scales

In order to measure market orientation, the two most widely used scales are MARKOR [2] and MKTOR [3]

The mktor scale is a 15-item, 7-point Likert-type scale, with all points specified. In this measure, market orientation is conceptualised as a one dimensional construct, with three components, namely: customer orientation, competitor orientation, and interfunctional coordination. The simple average of the scores of the three components is the market orientation score.

On the other hand, the markor scale is a 20-item, 5-point Likert scale, with only the ends of the scale specified. Here market orientation is again composed of three components as well, namely: intelligence generation, intelligence dissemination, and responsiveness.

References

  1. ^ Kohli, A. K. and Jaworski, B.J. (1990). Market Orientation: The Construct, Research Propositions, and Managerial Implications. The Journal of Marketing, 54(2),1-18.
  2. ^ Kohli AK ; Jaworski BJ & KumarA.(1993). MARKOR: A measure of market Orientation. Journal of Marketing Research, 30(4), 467-477.
  3. ^ Narver, J.C. and Slater, S.F. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54(4), 20-34.

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