MARKET ORIENTATION: AN INTERDISCIPLINARY AND
COMPLEX CONCEPT
Pandelică Amalia
University of Piesti, Faculty of Economic Science, amalia.pandelica@upit.ro
Pandelică IonuĠ
University of Pitesti, Faculty of Economic Science, ionut.pandelica@upit.ro
Negulescu Cristian
University of Pitesti, Faculty of Economic Science
From ’90s many researchers was interested in a new concept: market orientation. First academics, which
studied this concept was Kohli and Jaworski (1990), Narver and Slater (1990). Beginning whit their
theories, many others academics and practitioners show a growing interest for this concept and for how
the implementation of this concept can improve the performance. Marketing literature contains many
definitions of the concept some of them being divergent concerning whit what is market orientation and
how could be implemented in the organization. This proves the complexity of the market orientation
concept. Beginning from the most important researches from the field, through this article, we propose to
emphasis the most important element that show the interdisciplinary and complexity of the concept.
Key wards: market orientation, marketing concept, interdisciplinary approach
Marketing and management researchers pointed out, beginning whit ’90s, the benefits of implementation of
a new business philosophy – market orientation. The concept was the topic for many researches from
different economic fields, like as: marketing (Nerver and Slater, 1990), strategic management (Piercy,
1997), marketing management (Dozle and Wong, 1998), human resources strategic management
(Atuahene- Gima, 1996), organizational culture (Harris and Ogbonna, 1999) and public sector (Stokes,
2002).
Even if, the concept has an interdisciplinary approach, all academics and managers started from the same
point – market orientation is a business philosophy, which connects all the functional areas of the
organization to environment in which operates and ensures long-term profitability.
Market orientation was defined in many ways, thus:
1.” We use market orientation for emphasize the implementation of marketing concept whitin the
organization” (Kholi and Jaworski, 1990).
2. “Market orientation is a business philosophy which finally ensures superior value creation for the
customer” (Narver and Slater,1990).
3. „We can say that a firm is market orientated when firm’s culture is governed by values which systematic
ensure superior value creation for customer. Practically, this mean gathering the information about
customers and competitors and using this information for building superior value for the customers” (
S.Slater, 1994).
4. Market orientation is a source of building competitive advantage. If in the past it was considered that
competitive advantage is the result of a higher power on the market, economy of scale or the diversity of
products range, today it is considered that building and delivering superior value is the key of obtaining
competitive advantage. Slater, through his researches, demonstrated that firms which have market orientate
culture better manage to build and deliver superior value to the customers.
5. The newest approach of the concept refers to the market orientation from value chain point (Baker,
1999, Grunert, 2002, Simpson, 2001). Market orientation degree of one member from the chain could
affect market orientation degree of the others members of the chain. The competitiveness of the entire
chain in serving the customers depends on implication of all chain’s members in gathering the information
about consumers needs and uses this information for building superior value.
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6. In 1996, Tuominen and Moller, pointed out the necessity of an interdisciplinary approach to emphasis
the complexity of the concept. They consider that there are many directions in approaching the market
orientation, thus: market orientation as a business philosophy, market orientation as inter-functional
coordination, market orientation as gathering the information about consumers and competitors and
dissemination of the information to all functional areas, market orientation as source of organizational
learning.
8. Quintana and Beeril (2001) and Hernandez (2002) emphasised that there are five directions in
approaching the concept, thus: as business philosophy, as management process concerning whit the market
information, as inter-functional coordination referring to dissemination of market information to all
departments from the organization, as an organizational learning source and as a competitive strategy.
9. An extensive definition of the concept was developed by Lado (1998) who considers market orientation
as a „competitive strategy that involves all functional areas and levels of the organization and embraces the
different market participants”.
10. Because market orientation concept has been defined as an orientation of whole organization to meet
consumers’ needs it could be considered as an antecedent of the paradigm of relational marketing. This is
sustained by the definition of relational marketing developed by Reinares and Ponzoa (2004) who consider
relational marketing as „different actions and initiatives developed by a business towards different agents
(consumers, clients, distribution, shareholders, employees or others), or toward a determined group or
segment of it, focused on obtaining their satisfaction by offering products and services adjusted to their
needs and expectation, including the creation of stable relational channels, created for exchanging
communication and value added.....”
11. Reinares Lara and Gutierrez de Mesa created a complex approach framework to analyse the concept,
thus:
Different approaches
Characteristics
Market orientation as business philosophy
Market orientation is a business philosophy, which
generate behaviours and actions. At the same time,
this philosophy is a set of abilities and practices
which transform this philosophy into strategies and
effective behaviours within the organization
Market orientation from marketing point
This orientation refers to gathering of information
about needs and desires of the consumers and
about the evolution of the others factors of the
environment. The information will be disseminated
to all departments within the organization.
Adaptation of all functional areas from the
organization for meeting the consumer needs and
for obtaining consumers loyalty.
Inter-functional coordination of information
Market orientation has five dimensions from this
point of view:
Customer orientation
Competitors orientation
Inter-functional coordination
Long-term orientation
Emphasising the benefits
Managerial approach
The managerial approach points out five
dimensions:
Organization that contemplates the definition of
the structure and its processes
The information system, which refers to gathering
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the information, the dissemination of information
in the organization and storage of the information.
Planning of the environment and its alternatives
Control of the external and internal elements and
the analysis and control of the deviations among
the results obtained and planned.
Human resources management by objectives.
Resources and capacities approach
Market orientation improves some higher
capacities to understand and satisfy clients, thus:
Creation of superior value for customers
Gathering information and its dissemination
among the assembly of agents related to the
business: clients, competitors, suppliers
Give priority to response to change in the
consumer needs and in the activities of
competitors, taking advantage of opportunities and
avoiding threats
The relationship between market orientation and marketing concept
Because our purpose is to emphasise the complexity of the concept, we will try to explain the relationship
between market orientation and marketing concept.
All approaches of market orientation presented in this article show that some researchers consider market
orientation the result of implementation of marketing concept within the organization. So, from this point
of view market orientation is a popular term used by marketing practitioners as an indicator of the extent to
which a firm implements marketing concept. „A market oriented firm is presumed to have a superior
market-sense and consumer-linking capabilities, and these capabilities are presumed to assure them higher
profits in comparison with firms that are less market-oriented”(Pedro Reinares Lara and Emma Gutierrez
de Mesa Vasquez, 2004).
Marketing concept, considered the basement of modern marketing, show that a firm obtains log-term
profitability if identifies consumers needs and satisfies them better then competitors. The advocates of
marketing concept argued concerning whit the purpose of market concept – to obtain a satisfied consumer.
In the last decades, consider R. A. Heiens, marketing concept was just a controversial topic then a practice
for managers. Beginning from the theory of marketing concept, researchers developed the theory of market
orientation. As Kohli and Jawroski (1990) demonstrated, marketing concept is a business philosophy,
while market orientation refers to implementation to this concept within the organization.
An important part of market orientation literature is dedicated to study the degree of implementation of
marketing concept. According whit marketing concept the most important element of market orientation is
customer orientation. Even if, academics emphasis the importance of consumer orientation, in firms
practice managers tend to focus their attention on competitors, so they are competitors oriented. This
divergent focusing between academics and managers shows the luck of consensus concerning whit what
are the components of market orientation and the importance degree of each component.
On the other hand, some researchers consider that market orientation concept is broader then consumer
orientation and includes some external factors which play an important part in shaping the consumers
needs, for instance, the competitors or the government regulations. Conforming whit this opinions, market
orientation implies whole organization while marketing concept refers mostly to marketing activities and to
marketing department.
From this analyze we can figure that market orientation is a complex concept which can be successful
implement within the organization only if the organization operate compliance marketing concept. Also,
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we can figure that an organization which operates compliance whit marketing concept is not necessary
market oriented.
“In reality, no firms are 100% market orientated. Indeed, the theories on market orientation are idealistic
and even then not without flaws (K. Gotthelf, 2005). We are not necessary agree whit the affirmation that
market orientation theory is idealistic because many researches demonstrate the importance of market
orientation for the long-term profitability and success, but we are agree that the analyzing of this concept
don’t have to be “or-or” type. This mean that the firms aren’t only to types: market oriented and others. We
consider that firms have different degrees of implementation of market orientation concept.
R. A. Heiens (2005) from University of Sought Carolina Aiken, developed a market orientation typology
matrix to emphasis that firms can decide to focus primarily on either competitors or consumers. The
proposed matrix includes four different approaches (degrees) to market orientation: customer focussed,
marketing warriors, strategically integrated and strategically inept.
Firms which put the consumer first are considered “consumer preoccupied”. As we said, marketing concept
promotes putting the interests of consumers first and because of this, consumer orientation is considered
the most important element of market orientation. Firms which are consumer focus are interested in longterm business success and are not focus on short-term profits.
As we said, if academics consider consumer orientation the most important element of market orientation,
managers are usually competitors oriented. Firms that focus on competitors in their markets analyses are
considered “marketing warriors”. First, these “warriors” identify the target rivals, second they identify their
own strengths and weaknesses and finally decide if will keep pace or will stay ahead of the rest of the field.
Heiens uses “strategically integrated” term for firms which are focus to the collection, dissemination, and
use of both customer and competitor intelligence. In many researches is suggested that the key of success is
a balance between the two perspectives, “and firms should seek to remain sufficiently flexible to shift
resources between consumer and competitor emphasis as market condition change in short run”
“Strategically inept” is used for firms which fail to orient their strategic decision making to the market
environment.
Even if this matrix clarifies that market orientation has different degrees, it is limited because takes to
account only two element of market orientation – consumer and competitor orientation.
Conclusions:
Finally, we can figure that market orientation is a complex and interdisciplinary concept.
This concept has different approaches, thus:
1. as business philosophy,
2. as organizational culture,
3. as an organizational behaviour,
4. as a set of effective activities which implies – gathering market information, dissemination to this
information to all functional areas within the organization and developing actions using market
information;
5. as a practice which focuses activities within organization in three directions: consumers
orientation, competitors orientation and inter-departmental coordination,
6. as a business practice which generates long-term profitability and success on the market;
7. as a process of implementation of marketing concept within the organization.
The implementation of this concept within the organization is a long and complex process which refers to
all functional areas and all employees, and implies organizational culture change. Through this process the
organization is connected to markets in which it operates and become more flexible developing the
capacity of adaptation of the environmental changes.
Managers from market-orientated firms have long-term vision about business and are managing through
inter-departmental teems. They have to establish a hierarchy of values within the organization, and place
the consumer in the top of the hierarchy. They have to motivate the employees to determine them to put
consumer first and to organize activities within the organization whit the purpose to explain to employees
the importance of customer.
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The implementation of market orientation takes time because organizational culture change is a long-term
process and the implementation’s success depends on the support of entire organization (all departments
and all employees).
Market orientation is a concept which can be implemented by any type of firm – no matter the size or the
industry in which organization operates.
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