Marketing orientation (lecture 2) Flashcards
What are 2 types of market orientation (according to Kirca et al)?
- Behavourial = concentrates on activities related to the generation and dissemination of and responsiveness to market intelligence
- Cultural = focuses on organizational norms and values that encourage behaviors that are market orientation
What is an antecedent?
A variable that occurs before the independent and dependent variables under study and can help explain the relationship between the two
What are the antecedents of market orientation according to Kirca et al, 2005?
- Top management factors
- Shape the values and orientation of an organization - Interdepartmental factors
- include nterdepartemental connectedness & conflict - Organizational systems
- Two structural variables: Formailzation & Centralization
- Two employee rank systems: Market based reward system & Market oriented training
These antecedents influence market orientation
What are the consequences of market orientation according to Kirca et al, 2005?
Consequences are devided into 4 categories
1 Organizational performance
+ cost based performance measures
+ Revenue based performance measures
2 Customer consequence
+ Perceived quality of products/services that a firm produces
+ customer loyalty
+ Customer satisfaction within the organizatins products and services
3 Innovation consequence
+ Firms innovativeness and new product performance
4 Employee consequence
+ Organizational commitment
+Team spirit
+customer orientation
+ Role conflict
+ Job satisfcation
What is presented in the framework of Kirca et al 2005 (antecedents of marketing orientation and their impact on performance)?
The theoretical framework provides an overview of the relationships between the most frequent antecedents and consequences of market orientation. As well as the relationships involving the effects of measurement and sample characteristics and the substantive moderators on the market orientation-performance relationship
What are key insights from the Kirca et al (2005) article?
- Higher market orientation is related to higher performance through innovativeness, customer loyalty and quality
- Market orientation is affected by performance through innovation, customer loyalty and quality
- Top management and interdepartmental connectedness are important to effectively implement market orientation regardless of the centralization of the decision making structure
- Market orientation wmay be imperative to ensure survival in service firms and may provide a greater competitive advantage that leads to superior performance in manufactering firms
(helps to have a market oriented culture) - Firms with higher market orientation on average are more innovative and because they are more loyal customers and higher quality, so they have better performance
- A small direct effect of marketing orientation on organizational performance but very little compared with the other part of the model
- Very limited effects of environmental factors on the market orientation performance relationships.
(contradicted by kumar et al, they argues that marketing turbulence strengthens the relationship between marketing orientation and performance (through sales and profit))
What is stakeholder marketing as described by Hillebrand et al 2015)?
Stakeholder marketing is a revised perspective on marketing that views stakeholder networks as continuous instead of discrete multiplicities
What are the contributions of the article of Hillebrand et al (2015)?
- Provide perspectiveon marketing discipline that takes the interrelatedness of stakeholders into account (revised theoretical perspective)
- Proposed set of specific capabilities that firms require in order to meet new challenges arising from complex stakeholder networks (marketing capability gap)
These capabilities are -> Systems thinking, paradoxial and democratic thinking
What are the capabilities/transitions required for stakeholder marketing (Hillebrand et al, 2015 stakeholder marketing)?
- System thinking -> generate stronger stakeholder relationships because understanding the whole stakeholder value system lies at the root of bulding networs for shared value creation
- Paradoxial thinking -> increase perceived fairness of firms in eyes of stakeholders because it implies taking all stakeholder issues serisously, even when they conflict
- Democratic thinking -> likely to improve stakeholder relationships, firms that share control with multiple stakeholders are likely to be perceived as more fair by their stakeholders.
What is a stakeholder?
Any group/individual who can affect or is affected by the achievement of organizations objectives.
What is meant wit the hub and spoke perspective? (Hillebrand, 2015)
The firm (reprsented as the hub) has dyadic relationships with stakeholder groups (spokes) Stakeholders are interrelated in netwrok and in the hub and spoke perspective, it is not showed that these networks interrelate.
Differences betwee traditional marketing perspective and stakeholder marketing perspective
Traditional marketing perspective
- Discrete multiplicity
- Interests of stakeholders are independent
- Value perception of stakeholders are viewed as differing in importance with customers taking primacy
- Value os viewed as created by the firm
Stakeholder marketing perspective
- Continuous multipliity
- Interests of stakeholders are interrelated
- Acknowledging the value perception of multiple stakeholders is critical
- Value is viewed as c created with a multitude of stakeholders
Discrete multiplicity vs continuous multiplicity
discrete = multiplicity does not change in nature when devided, homogenous, countable, only change in degree no room parallel interpretation, focus on elements within multiplicities if they are independent
Continuous = Heterogenous, not countable, changes in nature when divided because elements influence each other, holistic view (see everything as a whole)
What are the transitions that make traditional perspective inappropiate?
- Type of value exchange required capability
Dyadic to complex change
Relational thinking to system thinking - Tension required capability
Implicit to explicit
Logical thinking to paradoxial thinking - Control required capability
Centralized control to dispersed control
Responsive thinking to democratic thinking
see table in summary
What are the implications for marketing theory provided by Hillebrand et al, 2015)?
- Stakeholder marketing goes beyond acknowledging that firms have more stakeholder groups than only customers viewing it as continuus multiplicities, shows that stakeholder marketing requires a fundamentally diffrent way of thinking;
- Hihglihgts the interdepencence between multiple relationships with a diverse set of stakeholders;
- Revitalizes insights form the systems perspective and further these insights by taking the complexities of networks seriously;
- Contribution to the debate on whether managing stakeholder relationships should be a part of marketing;
- Principle of customer primacy/customer centricity is challanged
