Profit Impact

Businesses with a Strong Market Orientation are More Profitable

Chart

Knowledge is a source of competitive advantage in any field of endeavor.

Businesses with a strong Market Orientation (Marketing Practices) have been shown to be more profitable 1. These businesses track and manage Marketing Performance (Marketing Metrics such as customer satisfaction and customer value) which when successful has also shown improved business unit profitability2.

Underlying this set of relationships are the Marketing Competencies of a business, the Marketing Knowledge and Market Attitudes acquired through various forms of marketing education and experience3. To learn more about the impact of Marketing Knowledge, click on MES Findings.

References

  1. Narver and Slater, "The Effect of Market Orientation on Business Profitability," Journal of Marketing (Oct. 1990) and Narver and Slater, "Does Competitive Environment Moderate the Market Orientation-Performance Relationship," Journal of Marketing, (Jan. 1994).
  2. Reichheld, "Loyalty-Based Management," Harvard Business Review, (March-April, 1993).
  3. Best, Market-Based Management, 3rd ed. (Prentice-Hall, 2003), 21-24.