Market Orientation, Customer Satisfaction And Firm Financial Performance

1448 Words6 Pages
Introduction:

Purpose: To critically analyze the following statement: "There is increasing evidence that firms which do well in the marketplace also do well financially , adding to the value of the firm for shareholders. Homburg and Pflesser perform better financially that those who do not. Many other studies have also shown direct link between market orientation, customer satisfaction and firm financial performance.

Hooley, G., Plercy, N., and Nicoulaud, B., (2012) Marketing Strategy and Competitive Positioning, 5th ed., FT Prentice Hall, p18.

Customers buy products because it provides value, product performance, access, experience, and cost (Kothari and Lackner, 2006, p.243). Companies that can understand on how customers define
…show more content…
Companies usually have difficult time in breaking their products due to emerging of alternative products.

Furthermore, as the company gets older, it becomes more difficult to have ideas on how to expand their business and they are stuck with cutting price down. Marketing concept is the main ingredient in successful organization 's culture (Baker et al, 1994; Houston, 1986; Hunt and 1995; Lusch and Laczniak, 1987; Peterson, 1989; Slater and Narver, 1995; Wong and Saunders, 1993) In this presentation, we are going to support the statement.

Main body
 A considerable amount of literature has been published on the importance of marketing concept for the organization 's financial performance. One of these studies is Bonobo Marketing, which is 'a concept of spreading love and treating customers with absolute empathy, altruism, compassion, kindness, patience, and sensitivity (the key characteristics of bonobo) ' (Srivastava, 2014). According to IBM studies that included 500 marketing managers across 15 different industries, Whitler (2013) finds that the two substantial elements of merchant nowadays are gaining the number of customers (46% respondents) and maintaining loyalty customers (36% respondents). Understanding the link between marketing concept and customer 's satisfaction will help the organization to perform better in their finance sector.

Since it was reported in 1953 by Neil Borden, 4P
Open Document