Table of Contents

• The definition of market orientation organization

This article is basic theory of market orientation culture, market-oriented organization. This is dedicated for college student who learn basic marketing. You can read another marketing theory in this blog.

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These are the theory which are closely related for complementing your marketing knowledge:

The concept of customer-oriented marketing:
http://marketingforbeginner.blogspot.com/2014/07/customer-oriented-marketing-concepts.html

Market-oriented Company:
http://marketingforbeginner.blogspot.com/2011/01/market-oriented-company.html

Market-oriented approach:
http://marketingforbeginner.blogspot.com/2011/01/market-oriented-approach.html

Customer oriented approach:
http://marketingforbeginner.blogspot.com/2011/01/customer-oriented-approach-one-of.html

Customer centric marketing:
http://marketingforbeginner.blogspot.com/2015/02/what-is-customer-centric-marketing.html

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People loves special treatment. This is a human nature. Therefore it is implemented in the marketing strategy and became a new direction for expanding marketing. Marketing activity means different treatment to different people. From this fact, an organization is developed based on market led or we can say market led organization.

The definition of market orientation organization

To organization with a market orientation, a focus on the customer is very important. It is paramount to customer-focused organizational culture.

Below are the market orientation definition from the experts:

Market oriented organization is an organization that producing and performing marketing activities with the ultimate goal for satisfying the customer wants. The organization must understand the customer, so the organization needs to identify what will create extra values for its customer.

Berkowitz (2000) said that market orientation is defined as a focus on collecting information about customers which are shared across departments in order to create a value for customer.

Kohli and Jaworski (1990) said that market orientation is the organization wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization wide responsiveness to it.

Naver and Slater (1990) said that market orientation approach can be displayed as a triangle with three behavioral components: customer orientation, competitor orientation and interfunctional coordination; in supposing that the company's goal is long term profit.

Beneficial things obtained from being a market oriented organization

1. Customer: customer get benefits from the product or service tailored to their need and want.
2. Company: company benefit from increasing the sales.

Source: Reflections on the Market-Oriented Theory in the Behavior of Real Organization http://digitalcommons.kennesaw.edu/amj/vol1/iss2/4

4 Phases to create a market orientation organization

There are four stages for developing market orientation/market-oriented culture in an organization, they are initiation, reconstitution, institutionalization, and maintenance.

Initiation phase
During initiation, company prepare to implement a market orientation by identifying the related things for the process transformation.

Reconstitution phase
This stage involves presenting the plan to the entire organization member. This stage is important, therefore if there is personnel who are unwilling to support the transformation are replaced by new personnel who are able to deliver a value to the organization and the customer.

Institutionalization phase
This stage occurs when market-oriented culture in the organization becomes formally incorporated.
Reward and punishment are aligned with the organization culture. Training is performed to reinforce cultural values.

Maintenance phase
In this stage, the organization protects the current culture from decadency. Organization ensure that all the personnel fit the organization culture.

Source: Walking the walk http://insight.kellogg.northwestern.edu/article/walking_the_walk