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Literature Review on the Business Adoption of the Marketing Concept.

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Literature Review on the Business Adoption of the Marketing Concept Businesses started to adopt the marketing concept at the end of the 1960's however to achieve real success companies must go further than mere customer satisfaction they must do it better than the competition. The marketing concept has advanced since its early beginning and this review examines three papers which look at some of the effects of companies that have adopted the marketing concept The papers although not directly related to one another all look at different effects of business's adopting a marketing approach. These papers I have studied are Narver and Slater (1990) `The effect of a Market Orientation on Business Profitability`, Brodie (1997) `Towards a Paradigm Shift in Marketing `and finally Harris and Obdgona (2000) `the response of front line employees to market orientated culture change`. In 1990 Narver and Slater launched an exploratory study to investigate whether Market Orientation did actually have an effect on business profitability. Marketing practitioners and academics had always assumed there was a relationship to higher profits but no research had ever been done. The research involved a survey involving 140 Sustainable business units in a western forest corporation made up of 2 types of businesses Commodity businesses, non-commodity businesses. ...read more.


Brodie's study emphasises how important relationship marketing is becoming in a majority of firms but it doesn't say how this is the most important type of marketing or the only that firms can adopt. On the basis of this it is safe to say there has not been a paradigm shift in Marketing as transaction marketing is still vital with a majority of firms still using it. The study though should show managers just how important good relationship with customers are and firms should try and meet and understand the needs of customers to form a long term relationship. From my own personal work at USC a leading clothes retail store within Newcastle a huge emphasis is put on pleasing the customer and meeting their needs. The importance of a good relationship is essential as it is much cheaper for firms in terms of advertising and promotion to keep loyal repeat purchase customers, than to keep having to attract one -off purchase customers. Although companies do use more than one type of marketing practice Brodie recognises that certain types of marketing practices are more common in some sectors than others. For example companies who scored high on the interaction-marketing index seemed to be mainly industrial good companies with fairly low turnover. ...read more.


After looking at all the articles it is quite apparent that a market-orientated approach is at the forefront of most business's strategy. From examining all the articles Obdgona's was the most useful as well as the most interesting to read as it shows firms how employees tend to react in changing to a Market Orientation approach, this allows firms to reduce the problems of transition with increased levels of communication. Brodie's work was quite useful as it showed businesses how important relationships with customers are and also proved how firms can integrate various types of marketing. All of this was shown despite Brodie not proving there had been a paradigm shift within marketing from the transactional to the relationship approach. Narver and Slater's paper had little use as it did not show us anything new yet just confirmed how market orientation affects profitability, for me this is self explanatory as if Market orientation wasn't profitable why would so many firms use it. All the papers showed how important market orientation was to a business, however it must be remembered there are several other components of a firms strategy just as important such as its human resource management or its operation techniques and these cannot be ignored no matter how good the market orientation is within the company. ...read more.

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