assignment of market 1.docx

1、assignment of market 1With the development of economic globalization, the markets are changing with high-speed in China, even in the world. The report will analyze the market orientation based on personally experience.BackgroundA garments company situated in Guangzhou South of China. It produces a f

2、ull range of garments from high-end formalwear, including suits, jackets, skirts, and pants, to casual and athletic clothing for both men and women. The company employs about 500 employees, and they focus on China Market. There are some problem with this company CEO decide on what products to make,

3、he doesnt give autonomy or include sales staff to consult market intelligence. The company pay low wages to the sales people. The company need to marketing as a process, and not as a department work.Main bodyBefore analyze the problem of this company, we should know something about what marketing is

4、 and what marketing orientation is. How it works in the organization.What is marketing?One of the most basic comes from the American author of marketing textbooks, Philip Kotler:Marketing is the human activity directed at satisfying needs and wants through an exchange process. ( Kotler, 1980)Since 1

5、980 Kolters definition has become longer:Marketing is a social and managerial process by which individuals and groups obtain what they want and need through creating, offering, and exchanging products of value with others. (Kotler,1991)Peter Drucker once wrote, there is only one valid definition of

6、business purpose: to create a customer. At its simplest, if you dont have any customers for the product or service your organization offers, then there is no reason for continuing existence.From the above concepts we can get a conclusion, the finest aim of marketing is to meet the needs and wants of

7、 customers to get more and more customers.What is marketing orientation ?Market orientation has been classified in different ways by several researchers. The following are the most frequently used classifications: a corporate philosophy; the implementation of the marketing concept; an ideal; a polic

8、y statement; a corporate state of mind; a faith; an organizational culture; a concept of period or stages of development and degree of maturity of an organization that parallels the economic development of the national market within which it operates.Despite these seemingly different classifications

9、 of market orientation, we may conclude that all of the above labels hold true. Market orientation can be a business philosophy held by the management of an organization (MCgee and Spiro 1988),or the implementation of the marketing concept (McGarthy and Perreault 1997). Market orientation can also b

10、e described as a form of organizational culture that:Places the highest priority on the profitable creation and maintenance of superior customer value while considering the interests of other key stakeholders; provides norms for behaviour regarding the organizational development of and responsivenes

11、s to market imformation.As Day(1994: 43) puts it: A market driven culture supports the value of thorough market intelligence and the necessity of functionally coordinated actions directed at gaining a competitive advantage. Essentially the market-oriented culture is externally oriented.Business orga

12、nizations may be classified according to their tendencies or orientations. In business, some companies are described as production or sales oriented, while others may come under the category of market oriented. The first two descriptions indicate an emphasis on production and sales, while latter ind

13、icates an emphasis on the marketplace, indicating that such companies are directed towards or centred around their customers. Some authors add more orientations. For example, Payne(1988) argues that most organizations have a range of conflicting orientations and associated attitudes. Similarly, othe

14、r authors, such as Levitt( 1960), argue that many organizations do not serve their markets satisfactorily because of the fact that their managers are product oriented. Organizational and managerial characteristics of market-oriented companies and the antecedents of this orientation in terms of manag

15、erial implementation issues have been covered in various conceptual and practical studies. In two separate empirical studies by different researchers, similar or very close conclusions were reached about the definitions and constructs of market orientation. Kohli and Jaworski (1990: 2) define market

16、 orientation as the organization-wide generation of market intelligence pertaining to: Current and future customer needs; Dissemination of the information across departments; Organization-wide responsiveness to it.For the A company ,however, the MD decide everything, without the information from the

17、 sales department, how do the MD know the current and future customer needs ? If they can not get the customers, how does the company exit in the market? According to the shareholder value maximization view( Rappaport 1986; McTaggart et al. 1994),no company can create wealth for its shareholders wit

18、hout having very satisfied and loyal customers, yet it is quite possible to do the opposite and to achieve high levels of customer satisfaction and be unable to translate this seeming advantage into adequate returns to shareholders. McTaggart et al.(1994) conclude that the limits to customer satisfa

19、ction should be determined as follows:As long as management invests in higher levels of customer satisfaction that will enable shareholders to earn an adequate return on their investment, there is no conflict between maximizing shareholder value and maximizing customer satisfaction. If, however, the

20、re is insufficient financial benefit to shareholders from attempts to increase customer satisfaction, the conflict should be resolved to avoid diminishing both the financial health and long-term competitiveness of the business. As far back as 1776,Adam Smith, the father of modern economics wrote:Con

21、sumption is the sole end and purpose of all production and the interests of the product ought to be attended to only so far as it may be necessary for promoting those of the customer.Marketing involves everyone in the organization, the people in an organization should be required to understand the f

22、inal customer for their efforts, and thus to have a customer focus in their job.There are two implications of the marketing concept as a focus for an organization. First, it encourages organizations to ask the right questions, and second, it assists the integration of company activities.A organizati

23、on will initially ask the basic questions: Where are we now ? Where do we want to get to ? How do we get there ?A market will ask questions specifically aimed at the future, and place them firmly from the customers perspective. The questions asked by a marketer will therefore be: Who are our existin

24、g/potential customers? What are their current and future needs? How can we satisfy these needs?-Can we offer a product/service the customer would value?-Can we communicate with customers?-Can we deliver a competitive product or service? Why should customers buy from us ?It is the responsibility of m

25、arketing management to find answer to these questions, and thereby develop solutions to market needs, within the constraints of the organizations resources and policies.Everyone in the organization must aim to serve the customer, whether directly or indirectly.(Marketing Principles & Practice ) Denn

26、is AdcockThe marketing-orientated firm produces goods and services, which it has ascertained the prospective customer actually wants to purchase.In a marketing orientated organization, the entire firm appreciates the central importance of the customer and realizes that without satisfied customers th

27、ere will be no business. To be able to progress from a sales to a marketing orientation, senior management in the organization must work to cultivate a company-wide approach to the satisfaction of customer requirements.Market orientation has been classified in different ways by several researchers.

28、The following are the most frequently used classifications: a corporate philosophy; the implementation of the marketing concept; an ideal; a policy statement; a corporate state of mind; a faith; an organizational culture; a concept of period or stages of development and degree of maturity of an orga

29、nization that parallels the economic development of the national market within which it operates.Despite these seemingly different classifications of market orientation, we may conclude that all of the above labels hold true. Market orientation can be a business philosophy held by the management of

30、an organization (MCgee and Spiro 1988),or the implementation of the marketing concept (McGarthy and Perreault 1997). Market orientation can also be described as a form of organizational culture that:Places the highest priority on the profitable creation and maintenance of superior customer value whi

31、le considering the interests of other key stakeholders; provides norms for behaviour regarding the organizational development of and responsiveness to market imformation.As Day(1994: 43) puts it: A market driven culture supports the value of thorough market intelligence and the necessity of function

32、ally coordinated actions directed at gaining a competitive advantage. Essentially the market-oriented culture is externally oriented.Business organizations may be classified according to their tendencies or orientations. In business, some companies are described as production or sales oriented, while others may come under the category of market oriented. The first two descriptions indicate an emphasis on production and sales, while latter indicates an emphasis on the marketplace, indicating that su