An Overview Of Market Oriented Firms Education Essay

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This report will explain how companies that produce large earth-moving equipment can be a market oriented firms within a competitive industry. In addition, the considerable role of service quality and customer relationships management will be examined within overall marketing mix of such a firm.

A marketing oriented firm is one that allows the wants and needs of customers and potential customers to drive all the firm's strategic decisions. According to Dalgic (1998) market orientation express a marketing perception which put the customer's needs in the center of all firm's activities. According to Narver and Slater (1990) market orientation composed of two behavioral characteristics: Customer Orientation: understanding the potential customer needs in order to create an added value for him on a continuance basis. Competitor Orientation: knowing the strength and weaknesses as well as capabilities and strategies of key competitors. Michal porter's five forces model is a dominant model for analyzing the industry. This is very useful in every company, because it will help them to understand their situation among competitor's within an industry. Porter's five-forces model of competitive analysis is a widely used approach for developing strategies in many industries. According to porter, the nature of competitiveness can be viewed as a composite of five forces:


Rivalry among competitive firms

To be successful your company has to have competitive advantage over the strategies implemented by another company. It is important to understand the strength of competitors relatively to your firm because they might take actions to gain market share from your firm. Also, learning competitor's weaknesses is vital. Their weaknesses may represent opportunities that can be exploited. The product and services should be more attractive. Customer's satisfaction may indicate the power of the company. For example, JCB and Komatsu are manufacturers of construction equipment; they are competing by increasing their advertising and offering new machine in the market.


Potential entry of new competitors

Potential entry for new competitors intense the competition in the industry. A larger pool of new entrants results in more changes of intense competition.


Potential development of substitute products

Competition not only arises within the similar industry but also in different industry. Companies in other industry offer products with similar features and functionality or even better act as substitute for the products.


Bargaining power of suppliers

Supplier and producer relation always matters especially in manufacturing industries. Suppliers play an important role in the production of goods and services. Bargaining power of suppliers affect the intensity of competition especially if there are huge number of suppliers,


Bargaining power of consumers

Satisfied customers are the key to long-term success. Also, the consumers have over bargaining power because there are many suppliers in an industry and they are many choices that they can choose to consume. However, it can be affected if they are loyal to the company.

Earthmoving equipment can be defined as the equipment that is used in the construction or mining industry to shift large amounts of earth, dig foundations and landscape areas. A company like JCB ensures that it has a marketing orientation by starting first from their mission which is "Our mission is to grow our company by providing innovative, strong and high performance products and solutions to meet our global customers' needs.". JCB also stated it by selling their products in 150 countries through 1,500 dealer depot locations. Moreover, JCB meet all the need of construction, waste, demolition, house building, grounds care, agriculture, airports, plant hire, government defence, compaction, public authorities utilities, rail, quarrying, timber forestry, industrial and road. To be market oriented JCB produce hydraulic excavators, bulldozers, compressors and loaders. JCB provide second hand machines which are cheaper and in a good quality. By doing this, they focus on the need of the customer. Besides doing this, JCB have always invested heavily in research and development, keeping JCB at the cutting edge of innovation.

They offer a credit availability, delivery, installation, and warranty to be a market oriented.

When a firm market its products they need to create a successful mix of:

  • The right product
  • Sold at the right price
  • In the right place

Using the most suitable promotion

To create the right marketing mix, businesses have to meet the following conditions:

  • • The product has to have the right features - for example, it must look good and work well.
  • • The price must be right. Consumer will need to buy in large numbers to produce a healthy profit.
  • • The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation.
  • • The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.

Marketing mix is often referred to as 'the four Ps:

    Product

    A product can be a tangible object or an intangible service that is a mass produced or manufactured on a large scale with a specific volume of units. JCB offer complete range of branded items for JCB fans young and old. From clothes, toys, collectables and merchandise to products for use in the home and by trades. All JCB branded products carry the brand values of innovation, durability, safety and quality.

    Price

    The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. For example, JCB do a special offers and the service of installment.

    Place

    Place represents the location where a product can be purchased. In JCB, Wide ranges of quality tires are provided when and where needed them. They strategically located dealers and distribution centres for better service and faster delivery.

    Promotion

    Promotion is the business of communication with customer. It will provide information that will assist them in making a decision to purchase a product or service. For example, JCB has a global website which is easy to use and presents all the information about all the products. They also offer a second hand equipment for the customer.

Customer relationship management

The better a business can manage the relationships it has with its customers the more successful it will become. Customer relationship management is a strategy to learn more about customers' needs and behaviours in order to develop stronger relationships with them. As such it is more of a business philosophy than a technical solution to assist in dealing with customers effectively and efficiently. Customers are the key to all businesses, regardless of size or industry. Successful businesses build their reputation based on long term relationships with satisfied customers. For example, JCB keep their customers informed if there is any offer for any product by sending emails or letters. They also provide machine servicing or emergency breakdown solutions. They guaranty the highest possible service levels. In an emergency, it is all about speed of response.

Service Quality

In order to be able to develop service marketing models and service management models one has to have a clear picture of what customers in the marketplace really are looking for and what they are evaluating in the customer relation of service firms. Traditional marketing activities-advertising, field selling, pricing, etc.-can be used in order to give promises to target customers. Such promises influence the expectations of the customers, and have an impact on the expected service Heavy earth moving machines are essential in this industry, and everyone knows how expensive this valuable machinery is. It is imperative that they are always well maintained with the best quality earthmoving equipment spares. Komatsu applies a policy to the products and services they offer. The following six guidelines indicate the policy

Commitment to supply their customers with reliable earthmoving equipment spares for any heavy duty machinery carefully selected from the best suppliers in the industry.

Sign of their warranty that all products sold are free from defect in material and manufacture under normal use and service

Ability and experience to handle specific customer requirements

Commitment to honesty and integrity

Dedication to provide cost effective and competitive products

100% availability.


Conclusion

The main keys to the success of any marketing program is the ability to work effectively in shaping marketing mixes that meet the nature and needs of your specified target market. One big part of marketing is meeting customer need. This can be taking the product to them, instead of having them come to you. It can mean offering incentives with multiple purchases. It can mean giving the customer the right and enough information to find you and your business. To find out what your customer's needs are, ask them, and then put your marketing team's heads together to come up with a way to meet those needs through your marketing campaign. You will want to build strong products, and inform your customers through marketing of any improvements you make. You will also want to allow them to make suggestions for improvement, and thank them for any comments they do make. After all, your customers are who keep you in business, so make part of your marketing campaign be listening to their suggestions, and acting on valuable ones.


Referencing

    JCB (2009). Available at http://www.jcb.com

    Nowsell(2009) available at: http://www.nowsell.com/

    Designbuild2009 available at: Designbuild.-network.com

    Business knowledge source available at: Buisnessknowledgesource.com

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