Market Orientation - page 2
Keywords: Marketing product orientation Kohli and Jaworski Barriers to Market Orientation
By Rifa Motin on 22/11/2009
Level: Foundation Degree
Page Number: 2 of 4 pages: 1 2 3 4
to keep the customer satisfied by offering benefits, it should result in an increase in service quality and the overall customer service level will increase, thus giving the organisation a competitive advantage.
Inter-functional Co-ordination
When an organisation adopts the market orientation method, the responsibility or creating value for the customer is no longer just the responsibility of the Marketing department, but in fact the entire organisation. Every single employee of the organisation becomes responsible for creating value and provides benefits to the customers.
If Market Orientation is operated via inter-functional co-ordination, the positive effects will be visible such as its cost effectiveness. If all employees meet the needs of their customers there will be an increase in productivity and sales per employee.
Competitor Orientation
The organisation has an awareness of the strengths, weaknesses and capabilities of its competitors and possible competitors using this information to make strategic decisions which would result in having a competitive advantage over them.
Barriers to Market Orientation
“Gronroos (2000, p383) describes the following five barriers for successful implementation: organisational barriers, systems and regulations – related barriers, management-related barriers, strategy-related barriers, and decision-making barriers.”
Gronroos cited in Bruhn M (2002)
An organisation can only achieve these competitive advantages if they can overcome barriers which restrict market orientation. Such barriers exist within the Claims Department at NFU Mutual in York.
Structure:
The Claims Department consists of 25 administrators and 3 people as management yet the department lacks structure. The administrators deal with all Motor & Household Claims which results in all administrators dealing with all claims and no one to specialise in each type of claim. If small teams were created within the existing structure, the confusion and over load of work which prevents the administrators from providing the best customer service, could possibly be removed.
System Barriers:
System barriers include deficiencies within the I.T system. Such as the system is used on the internet and runs on one server Nationwide. The system also suffers from information overload, the combination of the two results in the system working very slowly and often requires restarting at Head Office. When the system is being restarting, the entire company cannot provide customer service, this results in very little or no customer service.
Motivational Barriers
The motivation to encourage a market orientated environment one of the reasons being that there are too many calls coming through to the department when ideally call centre staff should be taking these calls. However there
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