Bus 620 - Marketing Management - Wk 1, Disc 2 - Market Orientation

Market Orientation

Compare and contrast the advantages and drawbacks of having a marketing orientation in an organization. Make sure to include an example in your discussion.

The beer industry is a prime example of a market oriented industry. It is definitely a mature industry, and the only way a new provider in the industry can make it is by stealing market share from another brewer. This is in direct contrast to a product-driven industry, or an emerging new industry, in which competitors are few and far between.

Brewers are constantly trying new beers and ways of brewing beer to meet the customers changing tastes, and to stave off competitors from getting “a leg up” on them, by offering a different tasting beer which could draw away some of the existing market. A prime example of this would be Anheuser-Busch’s response to the popularity of the micro-breweries’ beers, by offering similar tasting beers under a different label. “They embrace the concept of market segmentation by adapting product offerings and marketing programs to the special needs of different target markets” (Mulllins & Walker, 2010, p. 36). Some examples of these are Bass Ale, Beck’s, Rolling Rock, Stone Mill Pale Ale, Wild Hop Lager, Bare Knuckle Stout, Landshark Lager and Amberbock (Thursday, 2008), just to name a few. All of these different beers, in addition to the Budweiser, Busch, & Michelob family of beers, is meant to satisfy different market segments of beer drinkers.

The drawbacks to the market orientation of the beer industry is that competition is fierce. Not only is every micro-brewery in competition with AB, but there is also Coors and Miller Brewing Companies vying for the same customers. The one’s that come up with the best marketing strategy of the time have the best opportunity to gain market share.

Mullins, J., & Walker, Jr., O. (2010). Marketing Management (7th ed.). New York, NY: McGraw-Hill.

Thursday, D. (2008). What are the...