The following are the proposals for the firm to be market-oriented.
According to M.F.
Porter (1990), Market-oriented culture is a form of organizational structure, which covers the whole business and provides greater customer value. It is also known that marketing orientation tends to provide the very best solution for a many operating business globally or locally around the world. Marketing oriented culture tends to use marketing concepts when conducting business. According to this marketing oriented culture drives to meet and satisfy the needs of customers more effectively more than its competitors, therefore its considered to be the best comparing to production oriented which minimize costs of production. Hence the following are the proposals on how the firm can change to market-oriented:
Well organized structure should be created; this will utilize the processes that are tested for gathering of information from all functions on the business. By creating the structure, reviewing of the company structure is more important. Is it in line with the needs demanded recently and wants.
Adjust strategies; this will enable the firm reaching the highest position. The recently used strategies should be eliminated and the new ones made so as to make sure the firms reach the highest position according to the objectives of the company. One of the strategies that the company should use is marketing concept since marketing concept, demands that strategic decisions made by the company should be taken keeping the customer in mind especially the needs and wants of the customers. One of the strategies is for the firm to deliver the best value proposition compared to its competitors.
Creation of relationship marketing: Since the auditing department concluded that the company is product oriented, the need to emphasize on different services allows for the customer relationship/ intimacy. Customers taste are important to the company.
The following are the recommendation of the firm regarding market-oriented culture:
Marketing intelligence systems are designed to be used by marketing managers, to collect and interpret information for the purpose of accurate decision making in determining marketing penetration strategy, marketing development and marketing opportunity. These systems obtain data like business intelligence. Marketing managers must create reports that visualize data. There are designed to use marketing managers and sometimes viewed by employees. It consists department that performs market intelligence and competitor analysis roles. The following are the steps taken by a company to improve marketing intelligence.
Motivate Distributors: Experts are hired by companies to gather marketing intelligence This is done to measure production quality, the way employees are behaving with customers, quality of facilities on how there are provided. Firms can also assess the quality of customers experience with their shops using data obtained by experts. So if the company does not pay special attention to the suppliers like give them a raise, when they do a splendid job and make sure resources reach in time for the production of goods.
Customer advisory panel should be developed: one of the roles of marketing intelligence is to obtain information from the customers. Hence the companies can set up panel consisting of the biggest customers or representatives of customers. Most of the university consists of alumni who provide their knowledge, the ideas provided by the alumni help to develop some of the courses needed.
Use of information bought from external suppliers: there are agencies that use data that can prove to be helpful to other organizations. For example radio channels will require data or information that will generate data and provide to other firms or companies that need it. Such information can be number of ratings, number of viewers and other different programs. Suppliers are people who provide resources for the production of commodities. Policies generated by the suppliers have an impact on the marketing managers’ decisions.
Usage of government resources: Every government in almost all countries provide annual reports regarding the population trends, demographic characteristics and information on agricultural production and a lot of other such data. These data can help to formulate policies for the companies. These policies guide the company to make strategies which will enable the company to provide services to the target market. Using the population data from the government, a company may be able to know which region or place is more profitable for the firm to provide its services to satisfy needs and wants of customers.
Creation of online customer feedback: the point of view of costumers is important for any company since it’s the costumer who is buying hence the input is more important for the development of the company. Examples of platforms are chartrooms, blogs. It enables the firm to know about customers impressions and experience regarding the product produced by the firm. The firms produce services and goods so as to meet customers and satisfy their demands needs and wants, hence they need customer perception regarding the product, and this will enable them to satisfy their demands on time.
Develop a sales force: In a company a sales force is important since it enables documentation of information about the trends of products happening currently in the market. These information or facts can be able to help marketing managers know if there are improvements needed regarding their products and services supplied by the company. Due to this information marketing or sales manager can know about consumer’s suppliers to and activities regarding the firm or company of the competitors.
The following are how the firm can create barriers to how the firm can be competitive:
Barriers to entry are the existence of obstacles that prevent the new competitors from entering into a new area of business. Examples are benefits obtained from tax which will increase demand in the market. There are classification of brand; natural and artificial barriers of entry. Some of them are high advertisement, strong brand which make customers to be loyal, contracts and switching costs which make customers unable to switch brands. Barriers are more important in creation of market and increase of competition. The firm can create barriers to remain competitive by performing the following;
Set up referral incentive scheme: by setting referral incentives scheme allows for your existing customers and other stakeholder, shareholder to benefit by recommending your company to new customers. Market segmentation: is the process of dividing the market so as to consume them”. According to Philip Kotler, “It is the subdividing of market into homogenous subsets of consumers where any subset may be selected as a market target to be reached with distinct Marketing Mix”. By segmenting the market, you create value for your product and services thus products for most income levels.
Develop cost advantages: price is one of the most sensitive aspects of any product or services. Set price that will attract many customers towards provision of services in the company. This will differentiate the company and your core competitors.
Having a clear understanding about tangible assets: These tangible assets include patents, trade secret and business solution. An understanding of these assets will lead to the formation strategies so as to protect them from other competitors. It’s important for one to know what assets the company owns.
- I.I. Berry and Bendapudi, Clueing in Customers,’ Harvard Business Review, vol 81, no 2 (February 2003): 100-106
- M.F.Porter, Competitive Strategy: Techniques for analyzing industries and competitors (New York; Free Press, 1980
- M. A. Hatt and R.D. Ireland, competing on capabilities: The New Rules of corporate Strategy,” Harvard Business Review, vol, 70, no 2 (1992): 57-69