MARKET ORIENTATION

Market Orientation

Market Orientation

Introduction

Marketing is a management function that is typically used to identify and understand the consumers' needs and wants. It then coordinates with the rest of the organization in order to deliver the superior value to at least match the needs and wants. Marketing academic advises that firms' activities should be drove by the philosophy of the marketing concept. Marketing academic also beliefs that firms' superior performance will be the inevitable result if they can adopt this philosophy and effectively convert is to actions. However, we cannot deny the predominant contribution of the philosophy of the production orientation in the last century (Kohil, 1993). There are many firms that had succeeded with focusing on technical or production capabilities, instead of applying the market orientation.

Nevertheless, the time has been changed. Along with the trends of globalization, deregulation, and more sophisticated customers, have all resulted in a more intense competitive environment. Thus, the philosophy of the marketing concept will become more and more vital factor for any sizes of businesses, which can decide the life of the business.

Market orientation has been identified as the most crucial success ingredient for both small and large companies. Unfortunately, many small businesses' failure results from the ignoring the factor of market orientation (Kohil, 1993). The lack of understanding about the target market can be ranked the top 10 reasons for small business failure. Due to the ponderance of this factor, it can quickly lead to many other problems, such as cash flow problem.

The meaning of entrepreneurship

"Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence". In South Africa, the small, micro and medium-sized (SMMEs) enterprises play a significant role in the country's economy to provide jobs, stimulate growth, and ensure equality. In terms of entrepreneurship, however, does not only focus on the SMMEs, but also deals with all sizes of companies, even in government organizations (Nwankwo et al., 2004).

Both entrepreneurship and small business management are important components to nation's economy. Due to their difference of pursuing and creating opportunities, fulfilling ambitions, and challenges to economic policy maker, it is therefore necessary to draw a distinction between them. The following three aspects can mainly distinguish the entrepreneurial venture and small business:

Innovation

An entrepreneurial venture is characterized by a prominently innovative nature. It based on creative ideas, mobilize all of the necessary resources to bring a feasible one to fruition, and finally distribute the fruition to the target market (Nwankwo et al., 2004). Comparing with the entrepreneurial venture, the small business is lack of a significant innovation. It normally involves in delivering an established product or service.

Potential for growth

Because of entrepreneurial ventures' prominently innovative nature, entrepreneurial ventures usually have much more potential for growth than do small businesses. The new innovation on a product or service may stimulate a huge demand that can sustain a large ...