It is one of the "givens" of marketing theory that people respond to "image" and that they tend to buy from companies with which they feel comfortable. the people factor is becoming pivotal in how business is conducted. Often referred to as a genius in consumer marketing, Charles Revson was well aware that the typical consumer didn't care whether Revlon (his company) was the biggest manufacturer of cosmetics in the world.
He created a marketing orientation within his firm that talked about the benefits that could come from using his cosmetics could deliver. This simple act was a predictive movement that was the beginning of a shift in marketing theory from product orientation to a marketing or end benefit orientation.
Petrof (1997) postulated that this shift was an example of "relationship marketing." He defines that term as "being oriented toward a long time horizon in contrast to the short-term orientation that existed in marketing before 1983...[consisting of] attracting, developing, and retaining customers" (Petrof, 1997, 26).
But, continues Petrof, is this approach substantially different from what businesses were doing prior to the 1983 benchmark?
This paper will examine the relationship of a company's chosen market orientation to its profitability. In subsequent sections, the following questions will be discussed:
A. Why is a marketing orientation related to profitability?
B. What are the critical factors that can affect a company's decision to become more market-oriented?
C. What are the ways that an organization can become more market oriented?
A. Relation of a marketing orientation to profitability
Business literature constantly refers to classical businessmen who had a marketing orientation, ranging from King Gillette (razors) to Michael Dell (computers). If there is one common trait shared by these visionaries, it is the fact that each of them gave the customer what was wanted.
T...