In business it is fundamentally important to know the answers to these three factors:
- What you do and why.
- What your customer’s want or need.
- What your competitors are doing and why.
A business that only looks to one of these factors is doomed to fail in the medium to long term and the reasons are simple:
Failure to know what and why you do what you do lead to a lack of direction. This in turn leads to issues such as Borders faced, ie focusing too strongly on real estate investments when its core business was the provision of books. This lack of a focus on core competencies (what you do well) results in sub-standard goods/services being offered.
A failure to know your customer and that he/she needs or wants results in disconnection and a failure to be able to meet expectations. A consistant failing in this will ultimately lead to customers seeking alternatives to your business. The best businesses know there customers so well they can deliver what the customers will want in the not too distant future, an example being Apple.
Not knowing your competitors ultimately leads to your competition out maneuvering you strategically. If you are not able to predict there choices you will fail to meet and counter their offerings to the market, possibly leaving your business in a position of having to play catch up.
Market Orientation is the marketing strategy concept of incorporating these three elements into the very fibre of your business. It is not just a tool for planning but it must become an integral part of the way you do business if you are to grow and succeed.
A business consultant can assist you in formulating systems to assist you in keeping your attention on these three elements. The next time you have a coffee, take the opportunity to have a think about the three elements of market orientation.