The Benefits of a Market Orientation is a Competitive Advantage

Why would a company want to pursue a market orientation? What benefit is it to them? 

Werll - being market oriented will lead to superior performance for the business.

Some would argue that having a focus on customers and aiming to satisfy their requirements is a costly exercise. However, the benefits of market orientation have been shown to include financial gains for the organisation, improved customer satisfaction, improved workplace conditions, and superior new product performance.

Competitive Advantage

A strong customer orientation forms the foundation of an organisation’s sustainable competitive advantage. Developing a thorough understanding of all customer groups allows an organisation to develop products and services that are tailored to customer needs and requirements. If an organisation can provide superior value to their customers, there is a greater likelihood of purchase, repeat purchase, and word-of-mouth recommendations. This will lead to a potential increase in sales, market share, and profitability.

For a competitive advantage to eventuate, an organisation must provide value to its customer that is superior to that of its competitors.

If an organisation is going to achieve optimal quality and value for the customers it is essential that every employee in the “chain of production” be committed to working toward this goal. A delay in delivery, a production flaw, a rude credit officer, or an unreturned phone enquiry can all contribute to the customer’s perception of your offering.

If every employee provides a product (goods and services) of optimal value to the next person in the chain of production, then the final product should be of optimal quality. However, the end consumer will notice weak links in this chain.

Check out the previous article as well - Let me know what you think?