David Gotteland

Market orientation: synthesis and new theoretical directions

The research devoted to market orientation has multiplied since the seminal works of Kohli and Jaworski (1990) and of Narver and Slater (1990). These were primarily structured around the question of the relation between market orientation and organizational performance, which was largely resolved with the publication of three meta-analyses (Rodriguez Cano, Carrillat and Jaramillo, 2004; Kirca, Jayachandran and Bearden, 2005; Ellis, 2006). Two questions remain under-explored: that of the definition of the concept, and that of its implementation. In relation to the first topic, this article proposes integrating existing approaches to market orientation, currently few in number. As well as providing a more complete definition and a better structuring of the concept, this approach leads to a better understanding of its links with organizational performance. In terms of the second topic, the article offers an assessment of the existing methods, as a basis for future directions of research.

New Product Teams

The development of a new product is a complex task that requires the integration of many different fields of expertise: the product must be designed and manufactured to meet the expectations of potential customers and to do so while being profitable. This implies that many different aspects pertaining to, among others, technology, production, demand, and competition must be considered throughout the development process. Because of the complexity of current technologies and markets, it is highly unlikely that isolated individuals can effectively master all the ins and outs of the development of a new product. Consequently, firms are under pressure and must develop new products at a faster pace because of the increased turbulence of markets that are characterized by shorter product life cycles and increased global competition. This situation leads most firms to make extensive use of cross-functional teams to develop their new products. This way of organizing the new product development process has been frequently highlighted in the literature (Cooper and Kleinschmidt 1994, Griffin 1997b, McDonough 2000).

Stimuler la créativité du consommateur par la pensée analogique : comment adapter distance et contenu du transfert ?

Comment les consommateurs peuvent-ils émettre de meilleures idées de nouveaux produits ou services par la pensée analogique ? Cette méthode de créativité se décompose en deux phases : l’identification de domaines sources et le transfert d’informations de ces domaines vers le domaine cible. La littérature s’est focalisée sur l’influence de la distance du transfert entre domaines source et cible et aucune étude n’a examiné comment cette distance interagit avec le contenu du transfert. Dans deux expérimentations, nous montrons que l’attractivité des idées émises dépend, non seulement du niveau d’adéquation entre contenu et distance du transfert, mais également du niveau d’expertise des consommateurs dans le domaine cible.

Stimulating consumers’ creativity through analogical thinking: How can transfer distance and transfer content be matched?:

How can customers generate better ideas for new products or new services through analogical thinking? This creativity method comprises two steps: identifying source domains and transferring information from source domains to the target domain. The effect of transfer distance has been extensively studied, but the interaction between transfer distance and transfer content has not yet been considered. In two experiments, we show that the attractiveness of the ideas generated depends not only on the match (or mismatch) between transfer distance and transfer content but also on customers’ expertise in the target domain.

How does the sociodemographic profile of the CEO affect a company’s market orientation? The case of Senegalese SMEs:

Why do some CEOs more than others influence the degree of market orientation of their business? According to upper echelons theory, a company’s degree of market orientation is likely to depend on the sociodemographic profile of the CEO. This article addresses two issues: (1) What are the sociodemographic characteristics of CEOs that influence the degree of market orientation of a company and what are their respective weights? (2) How do these characteristics exert their effects? From a sample of 188 CEOs of Senegalese small and medium-sized enterprises (SMEs), we find that the CEO’s age and experience in the industry influences the degree of the company’s market orientation and that the effects of these characteristics are mediated by the cross-functional coordination level of the company.

Au-delà de ce qu’il fait, ce qu’il est : comment le profil sociodémographique du dirigeant affecte-t-il l’orientation marché d’une entreprise ? Le cas des PME sénégalaises

Pourquoi certains dirigeants vont-ils davantage que d’autres influencer le degré d’orientation marché de leur entreprise ? Conformément à la théorie des échelons supérieurs, le niveau d’orientation marché d’une entreprise devrait dépendre du profil sociodémographique du dirigeant. Cet article aborde deux questions : (1) quelles sont les caractéristiques sociodémographiques des dirigeants qui influencent le niveau d’orientation marché de leur entreprise et quel est leur poids respectif, et (2) comment ces caractéristiques exercent-elles leurs effets ? A partir d’un échantillon de 188 dirigeants de PME sénégalaises, nous établissons que l’âge et l’expérience du dirigeant dans l’activité influencent le degré d’orientation marché d’une entreprise, et que ces effets sont médiatisés par le niveau de coordination interfonctionnelle de cette entreprise.

Predicting New Product Acceptance

Understanding the adoption process leading to acceptance and use of a new product or service is fundamental to assessing its potential, not only as the brand gets introduced but also in the long term. The distinction between the short term and the long term is especially critical for radical innovations that create a completely new product category, as it takes time before these innovations get accepted by the majority of the market. It also has many implications for the dynamic marketing mix strategies, whether pricing or communication strategies. We consider the determinants of the acceptance of new products in this chapter and we discuss how this acceptance gets realized over time in the next chapter. Therefore, in this chapter, we discuss the methods for estimating the market potential. In the next chapter, we focus on the prediction of the speed and shape of diffusion.

When to Forge Alliances

The traditional approach to the development of new products and services is to perform research and development (R&D) internally to the firm (Doz and Hamel 1998, Chesbrough 2003). However, in the face of rapid evolution of consumers’ needs as well as the uncertainty of technological change, R&D activities are an area where alliances have been increasingly sought and have even played a dominant role (Shan 1990, Kogut 1991, Hagedoorn and Schakenraad 1994, Raassens, Wuyts and Geyskens 2012). According to Capron and Mitchell (2012), firms choose from among three alternatives, based on the firm’s existing capabilities and partnership characteristics: build, borrow, or buy.1 Indeed, firms do not always have or cannot necessarily acquire the competencies and know-how required for new product development (NPD) (see the discussion on innovation characteristics in Chapter 2). Such competencies may include (Capron and Mitchell 2012): 1. Skills 2. Know-how 3. Technologies 4. Methods 5. Broad competencies 6. Other assets

Fostering Creativity in the Organization

The first step in the new product and service development process is to generate ideas. It is unlikely that a single genial idea comes up by itself. Hundreds of ideas must be generated to allow the best ones to be selected. Methods for screening ideas constitute an important second step. We present these methods, including the recent improvements that have been proposed (e.g., Toubia and Flores 2007) in Chapter 10. In this chapter, we now focus on how to make the firm as a whole more creative for the purpose of developing new products or services in a sustainable fashion over time.

Branding New Products and Services

The choice of a brand name for a new product or service may at first appear more tactical than strategic. However, once the launch is made under a given name, it is difficult to change that name. Therefore, the choice of a brand name has long-term impact. Furthermore, a wise choice may bring opportunities for brand name extensions or alliances with other brands. These are important implications to take into consideration when launching new products and services with critical strategic dimensions.