Development of new products is a process normally based on marketing orientation or product orientation approach. Applying marketing orientation means that business strategists design and produce products based on the reactions of customers. Decision making process is highly dependent on existing knowledge of consumer trends in needs and wants. It is more of what customers want rather than what producers think it is best for consumers. A good number of successful businesses underscore the importance of employing this approach. Since customers of these days are more informed than earlier ones, almost all the markets are shifting to more of market orientation marketing. To remain relevant in business, organizations need to focus more on what customers really want and not what they think it is best for them. Businesses which have a dream of maintaining and growing its customer base strives to stay relevant in business through focusing on consumer needs.
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Although businesses desire to deliver what their customer just needs, they are constraint on some ways. This so because every organization has it own limitations. Indicators showing customer needs may not be fully reliable. At the same time pursuing what customers need is not always the best way of doing business. There are several moderators limiting applicability of marketing orientation approach. One notable moderator of market orientation is what is termed as market turbulence. It refers to extend to which composition of customers and their likes have changed in a given period of time. Existence of turbulent market calls for consistent modification of products and services to match changes in customer’s preferences. It is therefore implicit that companies operating in highly turbulent markets are finding it more necessary to be market oriented in their marketing strategy than those firms operating in stable markets.
Another outstanding moderator of market orientation is turbulence witnessed in technological dynamism. It is defined as the level of change in technology within a given industry. Business entities which are running operations based on rapidly changing technology are less reliant on market orientation approach. Competitive forces are other moderators slowing down effectiveness of market orientation (Pelham 50).
Due to enormous evidence available in documented materials, utilization of market orientation is directly related to company’s performance and resultant optimization of owners’ wealth. Market orientation is an approach cutting across all sectors of business whose interests is the development of market intelligence related to the customer needs at the moment and future. It also involves distribution of the gained information through out the firm and subsequent reactive efforts.
Results oriented individuals must pay key attention to interrelation between market orientation and business performance. Earlier research shows that there is a positive correlation between the two. Although some researchers have rejected this position, a higher number of writers are of believe that business performance is increased if firms intensify their market orientation approach. Those rejecting the proposition that improved performance is attributable to intense market orientation are basing their arguments on narrow exposure or specific industry sectors (Harris 22).
Case analysis: Samsung Electronics Canada
Samsung is a good living example of good market orientation application. At least every individual owns or has used Samsung products. The success story of Samsung has been witnessed across the world. It has been able to shake off other competitors in electronic appliances manufacture. One notable reason for this tremendous growth has always been the hard work by Samsung to build trust among consumers. It has cut itself a niche as a distributor of up to date technology. Position taken by Samsung is doubtless a crucial feature of future stability and progress. From this firm’s case it is implicit that brand repositioning will go a long way in improving firm’s market share. Entrance of Samsung in to Canadian market was welcomed with a series of success and consumer confidence.
Although these successes were received well by parent company in Seoul, there was a feeling of further improving marketing strategy. The strategy was intended to give Samsung products a new definition. This was important in erasing any residual thoughts about Samsung especially in the minds of those who thought Samsung products were just middle class products available in retail at affordable prices. This is a negative notion which senior executives sought to diffuse in bid to stabilize their market influence in Canada. “Establishing Samsung as a premier consumer brand” was the sole aim of brand repositioning.
Samsung’s marketing mix
The stability of Samsung in Canadian electronics market can be attributed to an articulate marketing mix. “4P’s”-“Product”, “Price”, “Promotion” and “Place” best explain this. Since 1987, Samsung Electronics Canada (SECA) has been operating independent of United States based Samsung company. Samsung products available for distribution in Canada are similar to those in the United States.
The first two P’s in SECA’S marketing mix describes how the company has been able to deliver the right products to the customers at affordable prices. The two broad categories describing SECA products are: electronics and appliances and software based products. CDMA cell phones are other products of Samsung available for distribution in Canada. Competitive prices charged on these products are as a result of an exclusive arrangement with Korean parent company (Ritchie, Ye, and Kim 5).
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Another important feature of marketing mix is distribution. SECA has been under obligation just like any other company to ensure that its products reach the consumer. To achieve this, the firm has been selling its products to end consumer through retailers. Therefore, company’s sales attention concentrated on retail trade. However, there has been notable rise in number of customers being served directly by the company.
Finally, SECA has also paid enough attention to promotion which is an important feature of marketing mix. The company’s advertising has been influenced greatly with its activities in the U.S. In addition SECA has its own way of promoting Samsung products within Canada. These include the famous sponsoring of television programming on the nation’s broadcast.
Branding
Branding is important to Samsung because it provides an opportunity of clearly distinguishing its products from others. It will be easier to convince a potential customer if its products are clearly distinct from others. Branding is an important activity offering a chance to be unique and interesting. As a way forward Samsung must continue to constantly review its production technologies through dedicated efforts like Research and Development (R&D).
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