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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.

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Presentation on theme: "Business Performance, Market Orientation and the Firm’s Attitude Arie Maharshak, Ort Braude Engineering College, Israel David Pundak Ort Braude Engineering."— Presentation transcript:

1 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

2 Business Performance Profits Market share Growth rate Innovation leadership New Markets Solid Portfolio Business Co-operations

3 Market Orientation according to the scientific approach Market Segmentation Target Market Customers’ Needs Market Research Differentiation Positioning Firm’s Concept and Attitude

4 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

5 The Research Goal Developing a diagnostic tool for evaluating a firms’ attitude in terms of market orientation

6 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

7 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.

8 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

9 Identifying the firms’ decision-making group Interviewing: –directors –managers –workers –secretaries Identifying the 5-8 decision-makers of the firm.

10 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

11 Demonstrative Findings: individual level

12 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.

13 Future research - Prognosis Individual level Firm’s level


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