Market orientation as the prerequisite for successful entrepreneurship

Essay by Liyifan520C, August 2007

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1.IntroductionMarketing is a management function that is typically used to identify and understand the consumers' needs and wants. It then coordinates with the rest of the organization in order to deliver the superior value to at least match the needs and wants (Kara, Spillan & Deshield, 2005: 106). Marketing academic advises that firms' activities should be drove by the philosophy of the marketing concept. Marketing academic also beliefs that firms' superior performance will be the inevitable result if they can adopt this philosophy and effectively convert is to actions. (Pelham, 2000: 48). However, we cannot deny the predominant contribution of the philosophy of the production orientation in the last century. There are many firms that had succeeded with focusing on technical or production capabilities, instead of applying the market orientation. Nevertheless, the time has been changed. Along with the trends of globalization, deregulation, and more sophisticated customers, have all resulted in a more intense competitive environment (Pelham, 2000: 48).

Thus, the philosophy of the marketing concept will become more and more vital factor for any sizes of businesses, which can decide the life of the business.

Market orientation has been identified as the most crucial success ingredient for both small and large companies (Verhees, 1999: Online). Unfortunately, many small businesses' failure results from the ignoring the factor of market orientation. The lack of understanding about the target market can be ranked the top 10 reasons for small business failure. Due to the ponderance of this factor, it can quickly lead to many other problems, such as cash flow problem.

2. The meaning of entrepreneurship"Entrepreneurship is the process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction and...