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Business Performance, Market Orientation and the Firm’s Attitude Arie Maharshak, Ort Braude Engineering College, Israel David Pundak Ort Braude Engineering College, Israel Kinneret College, Israel
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Business Performance Profits Market share Growth rate Innovation leadership New Markets Solid Portfolio Business Co-operations
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Market Orientation according to the scientific approach Market Segmentation Target Market Customers’ Needs Market Research Differentiation Positioning Firm’s Concept and Attitude
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Naïve vs. Scientific ScientificNaïve Understanding customer needsThe firm knows better what the customer needs A different product for each segment One product fits everybody The firm tailors a “custom made” product The client buys a shelf product A satisfied customer ensures the firm’s long term prosperity Good sellers ensure the firm’s long term prosperity MarketingSelling
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The Research Goal Developing a diagnostic tool for evaluating a firms’ attitude in terms of market orientation
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The development method Collecting layman vs. professional typical statements regarding marketing. Design a preliminary diagnostic tool: –Questionnaire's structure - multiple selling/marketing statements –Tool’s validation by peers –Tool’s reliability
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Main aspects of the diagnostic tool 1.Concentration on customer needs. 2.Planning tool in the organization. 3.Inborn versus acquired ability. 4.Work ethic in the organization. 5.Promoting sales. 6.Ongoing commitment.
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Research Diagnostic Tool - illustrative statements RankStatementNo. 1 2 3 4 5 In order to succeed in marketing, it is necessary to understand what the customer wants. 1 1 2 3 4 5 In a firm’s work plan, marketing dictates timetables for the other departments. 2 1 2 3 4 5 Good marketing is seen mainly in the sales representative’s abilities. 3 1 2 3 4 5 When planning a new product, you should first check with the firm’s engineers to see if they like it. 4
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Identifying the firms’ decision-making group Interviewing: –directors –managers –workers –secretaries Identifying the 5-8 decision-makers of the firm.
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Implementation Identifying a firm’s decision-making group Administrating the diagnostic tool to this group. Data analysis Firm’s diagnosis in terms of market orientation rate
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Demonstrative Findings: individual level
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Current Status: firm’s level Crystallizing mathematical model, for processing the decision makers individual views in order to get the MO rate of the firm.
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Future research - Prognosis Individual level Firm’s level
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