Marketing Management. Viettien which is a famous brand in Vietnamese textile industry was chosen for this. Specifically, the paper will analyze how Viettien has oriented its target market.

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TRUONG LUAN NGUYEN        MKT520        

        ASS1

CHARLES STURT UNIVERSITY

 

Market orientation for Viettien Company

MKT 501 : Assignment 1

Lecturer: A. Bull

Student Name:       TRUONG LUAN NGUYEN

Student ID:         11464575

May 1 2011


EXECUTIVE SUMMARY

There are several aims in this report. The paper will attempt to answer the question what is a market orientation? Base on a wide range of literature. In addition, it must also point out important level or market orientation. To have a specific description, analyzing market orientation of a company is inevitable. In so doing, Viettien which is a famous brand in Vietnamese textile industry was chosen for this. Specifically, the paper will analyze how Viettien has oriented its target market. In this report, only several main ideas have been mentioned which due to limited space. Providing recommendations which can help Viettien become more market oriented is also another aim of this report. In research for this report, some information about current strategic development of Viettien and survey has been used.

There are some findings of this report:

  • During the past decade, in marketing and management, one of the most attractive research topics has been market orientation. Market orientation is how to facilitate ability of company to capitalize, react to, and anticipate on changes of environment which is result in a superior performance.
  • Market orientation is very important for a company because it is very helpful in process of creating a sustainable competitive advantage through.
  • Viettien has built a good market orientation for its own which has been prove by success in business and a result with overall score fluctuate from 5.6 to 5.9.

Viettien absolutely get numerous benefits on its market orientation. However, some weak point is still containing inside which can be improve with recommendation that to increase customer satisfactory, Viettien should pay more attention and money to customer services is a effective solution to prevent the competition and ensure customer loyalty, further, it also increase company profit, decrease marketing cost and help to differentiate product (Bovée & Thill ,1992).


TABLE OF CONTENT        page

  1. Introduction        1
  1. Background of the report        1
  2. Aims        1
  1. Market orientation        1
  1. Market orientation theories        1
  2. Role of market orientation        2
  1. Viettien and market orientation        4
  1. Overview Viettien        4
  2. Market orientation        5
  1. Customer orientation        5
  2. Inter-functional coordination        6
  3. Competitor orientation        6
  1. Recommendations        7
  2. Conclusion        7

References        9        


  1. Introduction
  1. Background of the report
    During the past decades, while business environment is increasing competition, the number of researches about market orientation are also rising. This due to the fact that the success of a business has a strong relation to how this company does market orientation. Market orientation aim to use abilities of company to anticipate on, capitalize, and react to changes of environment, thereby can create a superior performance. The market orientation does not only contribute to sustainable competitive advantage of company but it also creates a positive impact on increase esprit de corps of company. Viettien has been chosen to analyze how market oriented in an organization. With a number of big competitors are co-existing in the same market, Viettien need a good market orientation to gain market share and dominance. In this report, the market orientation of Viettien will be analyzed in next part.
  2. Aims
    This paper include several purposes which are:
    -  To draw a definition about market orientation wide range of literature.
    -  To prove the important role of market orientation
    -  To analyze the market orientation in Viettien company
    -  To provide some advice to help organization become more market oriented
  1. Market orientation
  1. Market orientation theories
    One of the first strategic frameworks that has existed for many years was the marketing concept that provided firms with a sustainable competitive advantage. In the 1990s, the marketing concept as “market orientation” was begun recognizing and operationalizing by academics. In the marketing literature, according to Kohli and Jaworski (1990), one of major concepts is market orientation which refers to the extent to how the marketing concepts are implemented by organizations. Kirca, Jayachandran,and Bearden (2005) stated that there are hundreds of articles which aim to market orientation’s effect on business performance have been published during the past 20 years. Market orientation facilitates a firms’ ability to capitalize, react to, and anticipate on changes of environment which is base to create superior performance. Moreover, market orientation constitutes a business culture that supports firms in creating superior customer value which is a part of sustainable competitive advantage (Narver and Slater, 1990). Nowadays, market orientation has been approached by two ways which have been commonly adopted. There are three components which are distinguished in the first approach: organization-wide generation of market information about current and future customer needs, dissemination of such information across departments and individuals within the market-oriented firm; and an organization-wide responsiveness to the disseminated information (Jaworski and Kohli, 1990; 1993). The second is different in conceptual market orientation but it also uses three components (Narver and Slater, 1990, 1995). Customer orientation is the first component of this approach, which reflects that activities for capturing and disseminating information about customer’s needs are extremely necessary. Competitor orientation is also a important component of this approach which focus on collect and disseminate information about competitors. Inter-functional coordination is the third component which involves “. . .the business’s coordinated efforts. . .to create superior value for them continuously” (Narver and Slater, 1995)
  2. Role of market orientation
    Market orientation has a strong link with the performance of organizations. In fact, a right strategy of market-orientation is not only able to retain existing customers by keeping them satisfied and loyal, but it also play a vital role in supporting organizations to reach to the desired level of growth and market share by attracting more potential customers (Homburg and Plesser, 2000). As mentioned above, according to Narver and Slater (1990, 1995), market orientation include three components such as inter-functional coordination, competitor orientation, and consumer orientation. A company can have a clear understanding about target buyer and continuously create superior value for them through customer orientation. When marker competition become fierce, understanding competitor play a crucial role in the success of company. This understanding can be achieved by competitor orientation which aims to realize current principal and potential competitors, their weaknesses, strengths, and capabilities. Superior value which will be created by the coordinated use of resources is result of inter-functional coordination. Market orientation is a capability and the principal cultural foundation of learning organizations (Deshpandé and Farley 1998; Slater and Narver 1995). Through constant acquisition of information relating to customers and competitors and the sharing of this information within an organization, market-oriented firms are well positioned to develop an organizational memory, a key ingredient for developing a learning organization. Furthermore, a focus on continuously improving the firm’s process and systems and a culture of experimentation are encouraged by market orientation. This implies that firm’s capabilities will become far more distinctive when firm’s market orientation is constantly developed and improved.
    Besides, market orientation also brings about some outcomes such as behavioural outcome, performance outcome. There is a positive influence of a company’s market orientation on esprit de corps of employees which was proved by previous researches (Shoham and Rose, 2001; Rose and Shoham, 2002; Jaworski and Kohli, 1993). In fact, feelings of contributing, direction, and a sense of belonging towards satisfying customer needs which will lead to greater esprit de corps, can be provided to employees by market orientation. Though market orientation, employees can receive social and psychological benefits and enhances esprit de corps and teamwork. Group cohesiveness is an outcome of esprit de corps. According to Greenberg and Baron (1997), cohesiveness is constituted several elements such as a sense of belonging to a group, an‘esprit de corps’, ‘we’ feeling. Accepting group goals more readily and less absent from work are benefits when employees feel themselves as members of cohesive groups (Cartwright, 1968; Dunham and Pierce, 1989), and organizations will have more loyal employees (George and Bettenhausen, 1990). Level of their contribution to groups’ performance will be increased when willingness of members of cohesive group to conform to group norms and work together will reach to higher level (Shaw, 1981). On performance outcome, there is a significant and positive link between organizational performance and the marketing concept which is stated by Lusch and Laczniak (1987). In the face of intensifying competition, market orientation is a thing which can provide a winning philosophy to organization. It will increase the probability of an organization’s survival.
    Furthermore, when innovation becomes a decisive element to the survival of company, market orientation also has a significant contribution to this fact. Reasons for this, the commercialization of new products can be increased by customer orientation; competitor orientation create a good strategy for companies when they want to launch new product lines or extensions to product; and inter-functional co-ordination increases the commercialization of extensions to product lines. According to recent study of Lado and Maydeu-Olivares (2001), market orientation has significant influence on innovation that has been proven that a greater innovative flair comes from companies with more market-oriented. Therefore, it is easy to understand that organizations with higher degrees of market orientation will significantly achieve higher level of innovation. The impacts of market orientation on the profit margins of new products have been deeply analyzed by Atuahene-Gima (1995). The development and profitability of new products can get some positive influences through enhancing market orientation. In a later study, Atuahene-Gima (1996) had indicated that a decisive impact on the profitability of service and product innovations have been significant impacted by market orientation.
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  1. Viettien and market orientation
  1. Overview Viettien
    World economic integration, Vietnam's economy will have many changes will create many opportunities and challenges for businesses in Vietnam. So only dynamic and flexible enterprises which are able to quickly access and development will stand firm, and vice versa would quickly go bankrupt. Viettien established in 1976, is a small factory with the old name is "Pacific Technology Company," old-fashioned device, at first just over 100 employees, mainly outsourcing for export. After 30 years of construction and development, under the continuous efforts of all staff, and right market orientation, so far ...

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