Question

How do Kohli and Jaworski (’90) define market orientation?  Why do they not use the term marketing orientation?  Name and discuss at least one environmental moderator of the market orientation – business performance linkage.

Answer 1

Acording to Kohli and Jaworski, market orientation is defined on the basis of three themes:

1) Generating market information on customer & external environmental factor needs

2) Dissemination of market information on customer & external environmental factor needs in organizational functions

3) Development & implementation of strategies that is responsive to such market information on customer & external environmental factor needs

Thus, accordingly, the market orientation is defined as generation & dissemination of market-intelligence related to current & future customer needs across organizational departments and development & implementation of strategies that is responsive to such market-intelligence.

Kohli and Jaworski has not used the term "marketing orientation" as they wanted to emphasize on ever evolving customer needs & expectations that directly influence innovativeness & performance and competitiveness of the firm. Responsiveness to evolving market needs require constant introduction of new products & services with innovative firm capacity.

Kohli and Jaworski considers business performance linkage as one possible environmental moderator that impact market orientation. There could be certain events that are not in control of the firm, that may have systemic impact such as weak economy, market turbulence (the rate at which the composition of customers and their preferences changes per unit time) and increased competitive intensity and technological turbulence. Under such negative events, business may not perform well and may not at times have an opportunity to work beyond the break-even. Firms that work with constantly changing technologies which which the firm can not keep pace with, may not be able to obtain a competitive advantage through technological innovation together with the market orientation.Thus, even with market orientation, the firm may not perform well, thereby indicating that business performance linkage acts as environmental moderator of the market orientation.