MS THESIS PROPOSAL
Relationship between market orientation and CRM
Submitted By:
Nida Abid: 19072
DEPARTMENT OF BUSINESS ADMINISTRATION
Relationship of CRM and market orientation
1. Introduction:
1.1 Background of the study
Today business environment is going toward increasingly globalization of services.trade in worldwide services grew faster than trade in merchandise during 1990s(Javalgi and White, 2002). Concept of marketing orientation is believed to be far reaching effects on organizations as it influence how employee act and think . market orientation is valuable because it focuses first on organization,continuously collect target customers information need and capabilities of competitors and then using this
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Market orientation has three behavioral components( Narver and Slater (1990) customer and competitor orientation and interfunctional co-ordination. And also on two decision criteria;s long term profitability and focus. Deshpande´ et al. (1993) define customer orientation as set of belief that puts customer interest first . George Day (1994) also define market orientation as it represent superior skills in understanding and satisfying customers. The concept of market oriented culture is important to all level of the organizations (Day, 1990; Deshpande´ and Webster, 1989; Narver and Slater, 1990; Shapiro, 1988). Narver and Slater (1990) finding is that there is positive relationship between market orientation and profitability . and also they conclude that the business in which there are highest degree of market orientation is the business that associated with highest profitability . Slater and Narver (1994) says that market oriented business are understand revenues and cost dynamics of not only current but also future target customers. This is achieved by spending considearable time on meeting and talking with customers formally and informally. Market driven business
| Societal marketing orientation is the idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve individuals’ and society’s long-term best interests.
* Marketing orientation – Ensuring that you are marketing your design toward the correct audience. This could mean taking into consideration your audience when designing and making sure the design is appropriate.
The Marketing Concept. This is a business philosophy that challenges the above three business orientations. Its central tenets crystallized in the 1950s. It holds that the key to achieving its organizational goals (goals of the selling company) consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its selected target customers. The Marketing Concept represents the major change in today’s company orientation that provides the foundation to achieve competitive advantage. This philosophy is the foundation of consultative selling.
This essay will start to explore and define the meaning of customer orientation in depth. The marketing concept and the marketing mix will help discover after what it means to be a customer focused firm. This will occur through the scrutiny of the term in respect to product, price, place and promotion.
A market orientated company is one that organizes its activities, products and services around the needs and requirements of its customers. Burton Snowboards use market orientation because it is Customer focused. Jake Burton creates Burton Snowboards for the love of the sport. He practically invented snowboarding and transforms it to a world-class sport. The company focused in riders for its products developments and always wanting feedbacks from them to satisfy customer's needs and wants.
Businesses can develop new products based on either a marketing orientated approach or a product orientated approach. According to Jaworski and Kohli (1993), marketing orientation is ‘the organization-wide generation of market intelligence pertaining to current and
“Companies with a marketing orientation focus on customer needs as the primary drivers of organizational performance”
Marketing concept is a business management philosophy that propagates the organization wide orientation to focus on customer and competitor to provide a coordinated response to the customer needs (Kohli and Jaworski, 1990; Kotler, 2003).
Cited by Sorensen (2009), Stoelhorst and van Raaij (2004) described market orientation as marketing’s explanation of performance differentials between companies. The strategic MO provides some advantages: being able to respond to the market better, especially
Market orientation refers to how the end market receives the value added product. To be successful a value chain must be receptive to the demands of the market orientation. This can be monitored through customer feedback processes. (Sturgeon, 2001)
The purpose of this paper is to analyze the current status of Club 24 Gyms’ CRM system and how it currently views customer orientation. The analysis of the model currently being used and recommendations on how to improve this model are included in the findings. One of the major findings is that there is no real CRM system in place. Also, Club 24 Gyms believed that it was operating for the customer but they do not currently have a good method of delivering quality customer orientation.
Firms today can benefit greatly from market-orientations. This allows for greater flexibility in generating and integrating crucial information into the business. Internal structures and systems that have the ability to process knowledge from external boundaries can positively influence internal responses to marketplace changes and requirements, dramatically improving the ability of the organization to learn and adapt (Malmgren,
The second support to be identified in the evolutionary framework of IM is the element of market orientation inside the organization. Taking into the consideration of George (1977) that satisfied customers need encouraged employees and some writers in the area of the marketing literature have defined the need and techniques to make employees aware of customer-awareness and sale mindedness in order to support and enhance the service quality because of the overall performance (for expamle Berry, 1981; Bonoma, 1984; Crainer, 1990; Dyson and Foster, 1982; Flipo, 1986; Grönroos, 1985, Gummesson, 199; Piercy and Morgan, 1991a; Wilson et al.,1992).
The 5 marketing management orientations are production concept, product concept, sales concept, marketing concept and social marketing concept.
It is widely accepted that with the development of commodity economy, marketing is becoming more and more significant for companies in terms of competition. It is generally believed that marketing can be characterized into many types, for example, consumer orientation, marketing orientation (MO), demand orientation and product orientation(PO). Nevertheless, most companies are in face of some problems when they transform their business strategy from PO to MO. This essay aims to present these problems and give some recommendations to deal with them. This essay is divided into three main sections, firstly, it will describe the concept of MO and PO respectively, then it will analyze the dominant problems for companies to implement MO in place of PO. Finally some conclusions will be drawn as to determine the role of MO in business and find out the solutions for companies to perform better in the future.