The concept of market orientation is basic in the modern theory and marketing practice. The conventional theorists of market orientation are the American economists of J.Narver and S.Slater, and also E.Koli and B.Javorski which in the beginning of 90th 20 century have developed concepts of market orientation and the systems of measurement of market orientation of the organisations based on them: MKTOR  and MARKOR .
On the basis of studying of works of theorists of the concept of market orientation it is possible to formulate following definition of the rynochno-focused organisation: business is rynochno-focused if the organizational culture and a company climate regularly and are completely focused on creation of the highest value for the consumer. Particularly it is expressed in gathering, coordinated processing and use of the information on consumers, competitors and other factors, making considerable impact on the market.
Results of researches of J.Narver, S.Slatera, E.Koli and B.Javorski in which basis lies the analysis of correlation and regression dependence of efficiency of functioning of business from degree of market orientation of the company, show strong positive correlation between market orientation and such indicators, as quality of service of buyers, growth of sales, increase of efficiency of business and innovative activity of the company. Researches show that the companies with the developed system of market orientation have the big profitableness, than those companies which simply are guided by results of industrial activity as a result of economic activities.
Authors of concepts of market orientation give a great attention to systems of measurement of market orientation. They converge that all systems of measurement directed on identification of degree of market orientation of the organisation, have the huge practical importance for the administrative personnel.
Market orientation as shows the analysis, is especially significant in branches of high technologies. The particular interest represents research of market orientation of the Russian innovative firms, since. In the course of market reforming of economy it has been revealed that the scientific and technical sphere has appeared not ready to work in new conditions. Scientific and technical workings out no means always become the innovative product ready for manufacture and effective realisation, first of all, owing to low orientation of the Russian enterprises on the market.
Research of market orientation of the Russian innovative companies, spent with support of chair of the economic theory of the St.-Petersburg state university, is based on systems of measurement of the market orientation, the developed J.Narver, S.Slaterom and E.Koli, B.Javorski. Among the higher managers of some the innovative enterprises of electronic industry of Northwest region the questionnaires representing modified system of measurement of market orientation, consisting of 23 indicators have been extended. The questionnaire has been made on the basis of systems of measurement of market orientation MKTOR and MARKOR. The questionnaire can be divided into four subsystems which characterise (1) orientation to buyers, (2) orientation to competitors, (3) interfunctional coordination and (4) orientation to a social and economic environment.
All questions are constructed in the form of positive statements, for example: (1) “We immediately define changes in grocery preferences of consumers” (orientation to consumers); (2) “We know strong and weaknesses of our competitors, concerning their prices, production potentialities, quality etc.” (orientation to competitors); (3) “We regularly hold joint meetings of experts of various departments for discussion and the analysis of the market information” (interfunctional coordination); (4) “We have defined factors of an environment which can affect position of our company” (the social and economic environment). Each indicator is estimated on a 10-mark scale. These results represent value judgment of market orientation by employees of the companies.
During research of market orientation of the Russian innovative firms any of the companies has not typed a maximum quantity of points (230 points). Average value of market orientation of the investigated companies has made 107.2 points that testifies to low general market orientation of the Russian innovative companies. The analysis shows that weak in places of the Russian innovative companies are creation of new production and speed of reaction to change of requirements of buyers in the market. During research it was found out that the companies very poorly trace a social and economic environment. The increase in degree of uncertainty of an environment of firm causes requirement for constant process of tracing by the company of the environment. Nevertheless many respondents consider that supervision and the analysis of a social and economic environment are useless, since. A present situation so changeable that in general is difficult to predict something.
Research has revealed that in many companies there is very weak interfunctional coordination between various divisions, is not given attention to carrying out of joint meetings of employees of different departments for discussion of the market information. Besides, in many companies high degree of centralisation of process of acceptance of strategic decisions (an indicator 3 sections “ has been revealed interfunctional coordination”). It will be coordinated with results of research of M.Licha, A.Li and C.Bruksa in which course it has been revealed that in Russia the type of the centralised, bureaucratic organisations  dominates.
Research of the Russian innovative companies reveals low degree of their market orientation, inability to create the innovations focused on the market, mainly, because of bad coordination of activity of marketing service and research, industrial divisions.
Concepts of market orientation represent possibilities of perfection of management of the organisation. In the course of researches the factors favouring or interfering market orientation which are supervised from outside an administrative link of the company come to light and, hence, can be used for change of orientation of the concrete company on the market.
Let's consider examples on the basis of the western companies.
A.Hartung leads two illustrations to a subtitle “The standard axiom that the buyer is always right, more is not true”. One illustration doubtful: Henry Ford's statement “If I have addressed to the clients, they would advise to me to find horses more quickly” another – quite authentic – how the founder of the market of modern personal computers – company IBM has left from this market because its clients (operating data-processing centers) considered that the personal computer do not have future.
Really, to listen to the today's clients especially risky if it is a question of an estimation of perspectivity of innovations and change of a direction of business. In particular, users CRM often especially attentively consider opinion of big clients, being based that on the average 20% of clients (large) provide 80% of the income. However there are no bases to consider what exactly these big clients are especially sensitive and susceptible to the new.
Actually, A.Hartung marks, clients at all do not search rather new, especially suspiciously concerning necessity to invest in new tools, systems and processes. They are anxious only by short-term prospects – tactics: the big discounts, conformity to the prices of competitors, service improvement, etc. – in exchange they are ready to place with you larger orders.
The majority of suppliers quite enough such relation of buyers as it allows to count on reliable and expanded business. However it does not allow to prepare for sharp change of a situation in the market (and, especially – to benefit by such change) which in a flash will destroy your income and profit, and also – will deprive of clients who immediately will leave you, condemning for improvidence. Recollect, how quickly IT-departments have thrown out thousand mainframes and minicomputers that has almost made bankrupt IBM, has destroyed such firms as Digital Equipment, etc., and here Dell, thanks to the same reorganisation of the market, from unknown firm has turned to the leader.
So, A.Hartung advises, thinking of strategy, not too listen to the clients – especially, large: give more attention to competitors, especially to those who is not too known.
The author gives an example the American media holding Tribune which in 2000 was one of the largest players of the market, being engaged in local TV-networks, being one of the first Internet leaders (investing in America Online, CareerBuilder.com, Cars.com, etc.). And the basic attention turning on newspapers. Already having at the order Chicago Tribune, the corporation has considered that newspapers always will be in focus of business and has spent the big money for purchase of some newspapers, including Los Angeles Times. In the beginning 2000 Tribune has concentrated on performance of wishes of the largest advertisers which were, basically, are interested in optimisation of placing of newspaper advertising. Little by little subscribers of newspapers began to scoop in a greater degree all the information from the Internet, however, in Tribune derided opinions that people will sometime replace newspapers with web sites, and instead of newspaper reporters will read bloggers. In holding considered that such portals as eBay or Google are not intended for “serious” people. However very soon advertisers have passed to on-line advertising, and Tribune has gone bankrupt.
Other Forbs resulted in article an effective example is connected with activity of the largest suppliers of IT-services PricewaterhouseCoopers (PwC), Computer Sciences Corporation (CSC) and Electronic Data Systems (EDS). These companies have been quite satisfied entirely by positive responses of the clients, without taking seriously the offshore competitors, considering that those never can understand really requirements of clients mentioned above leaders. However such companies as Tata Consulting Services and Infosys could realise global possibilities of remote service with use of well trained personnel for the tenth share of the price and as a result have almost completely superseded business of former leaders. Business has come to an end that PwC has been for nothing absorbed IBM, CSC has survived only at the expense of state contracts, and EDS by the time of when firm has absorbed Hewlett-Packard, it has appeared on the verge of accident.
For prosperity, it is necessary to watch closely competitors, especially – not behind those who traditionally is in the lead. That clients will not tell to you, by means of competitive activity will tell the market. How incomes have fallen, Tribune and other media companies could see signs of change of priorities of buyers. And forthcoming occurrence of the powerful offshore IT Centers was obvious to those who looked in a correct direction. However concentration on existing buyers – first of all, on large, blinded many companies...
Cisco is an example of the company which does not wait when its products will be recognised by the market by become outdated, she in due time ceases to let out them. The company carefully watches competitors to surpass them or to absorb. It is one of the reasons of that Cisco always keeps confidently while Sun Microsystems and Silicon Graphics have failed in 2009.
In summary A.Hartung writes: “The company is capable to pass from a survival to prosperity if it is afflicted with idea of a competition. Watch both growing competitors, and behind what do not develop, trying to understand, in what a difference between them. Observe of how clients behave, instead of that they speak, trying to catch, as they address with your competitors, especially, not with the most known competitors – with those who offers alternative decisions. Define, what incomes pass to recently appeared competitors, even if they are still very small on the parametres. If wish to remain viable, remember: the competition will bring to you of more advantage, than strategic councils of all clients in the world”.
Certainly, from the point of view of the system approach, it is necessary to consider a so-called portrait of the user. We will consider the basic changes in a portrait of the user after global crisis of 2009.
According to the data of the director for marketing “Autodesk” A.Morozova almost 30% of users are ready to invest in IT and use crisis to win in the market at the expense of efficiency increase. Participants to the exhibition which has taken place in the end of October of the CAD-EXPO have confirmed this tendency.
The overwhelming majority of potential and current clients as marked acting, IT-budgets have reduced, as has generated new tendencies.
Price sensitivity of the client has become aggravated. As consequence, tells N.Shiryaev, there was an aspiration to receive a product if it is not free as it is possible more cheaply. Considering this situation, director APPIUS A.Timoshin, has noticed: “Clients try to introduce own forces, but consulting, the truth, for three copecks” already demand. The tendency of increase of sensitivity to a price level have caught and in company Autodesk and have quickly enough offered the market the mechanism of multistage investments, that is payments in some stages. “the market has reacted to it very well, and we have understood that have guessed” – A.Morozova.
The second tendency connected with reduction of IT-budgets – responsibility increase as client, and the supplier at a choice of methods of automation and platforms. “crisis has learnt all of us to be more cautious, more attentive at a choice of partners, projects in which we participate and in general in all that we do” – the assistant to general director AVEVA Е.Fedotov. Other experts has told in the beginning of a meeting have confirmed that the user became more cautiously and more circumspectly in a choice, now it box purchase, and reception of result for business interests not. Accordingly, there is an obvious shift of client preferences towards acquisition of services. The director of department of marketing “НЕОЛАНТ” E.Konvisar has formulated a tendency essence so: “Now those goods for which our user is ready to pay, the box, namely services, and first of all on introduction and integration”.
The responsible approach to an expenditure of IT-budgets has defined also considerable change of a role of IT Experts in the companies-users. The general director “Nanosoft” M.Egorov considers that “whatever good was the company if there is no in it a person who knows that he wishes to achieve in the field of automation, the result will not be. Proprietors of the companies have grown to understanding – such people should be at the enterprise, they need to be brought up and kept”. Its colleague the project head “NormaCS” A.Blagy holds similar opinion: “Good large experts who would be engaged in IT Technologies, now in very big price. They make the way in tops, and become influential people at acceptance of those or other decisions, on development of business with that number”. The assistant to executing director PTS V.Klishin has confirmed that “these people start to define a policy of the enterprise. If earlier they had not enough power now come nearer to a top”.
Being guided by competitors it is possible to note following tendencies:
1. Standardization, acceptance of standards of an exchange in designing branch.
2. Integration of platforms.
These a problem usually dare in three ways: forces of experts of the client (as a rule – large); purchase vendor the small companies with their specialised workings out and their inclusion in the general portfolio; or with company-integrator attraction. “the market waits for the companies which are ready to be engaged in integration of various platforms, it very much is necessary for it” – marks marketing department “НЕОЛАНТ” E.Konvisar. Today can advise to clients at a choice of a platform for the enterprise necessarily to pay attention to its openness as integration questions will rise sooner or later before any customer.
3. Transition of vendor from working out CAD and settlement systems to rendering of services in designing and carrying out of calculations. Really, who better the developer knows the product and simultaneously a subject domain. As marks the general director “АПМ” V.Shelofast, many companies are not ready to buy today a product, but ask to solve those or other settlement problems. And, for example, in the company “НЕОЛАНТ” already whole division specialising on designing is allocated. Thus, the IT-companies have one more direction of activity which starts to make interesting profit.
It is necessary to notice that methods of calculation of the prices with orientation to competitors  are known.
Thus, on the basis of the analysis of concepts of market orientation it is possible to allocate following administrative recommendations:
- To promote understanding employees of importance of market orientation and studying of the market information;
- To be ready to acceptance of risks in the course of creation of new products;
- To encourage interaction between departments through personal meetings of employees, joint meetings;
- To reduce level of conflicts in the organisation by means of joint training programs, alignments of functions of departments, focusing of their purposes in the market;
- To develop the market-focused systems of compensation and to reduce centralisation of process of acceptance of strategic decisions by delegation to managers of an average and lowest administrative link of the right to take part in working out of new production, in an establishment of contacts to new consumers etc.;
- To be guided by competitors, instead of buyers.
1. Narver J. C., Slater S. F. The Effect of a Market Orientation on Business Profitability//Journal of Marketing. – 1990. – Vol. 54. #4. P. 20-35.
2. Jaworski V.J., Kohli A.K. Market Orientation: Antecedents and Consequences//Journal of Marketing. – 1993. – Vol. 57. #3. P. 53-70.
3. Levin D. Listen to your competitors, instead of to buyers//isicad. – 2010 [http://isicad.ru/ru/articles.php?article_num=13539]
4. Krylov U.V. Research of market orientation of the Russian innovative firms//Corporate management. – 2003. – #11 [http://www.cfin.ru/press/practical/2003-11/06.shtml]
5. Morozova M. Market after the crisis. A portrait of the user//isicad. – 2009 [http://isicad.ru/uploads/Softool_03102009.pdf]
6. Classification of methods of definition of cost of performance of design works. – 2010 [ http://www.chepr.ru/index.php?rasd=info&id=70&lang=ru
The author: Челябэнергопроект
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