Shelter in the storm: business turmoil and marketing strategy effectiveness

Numerous studies have shown a positive association between the marketing concept and performance, however, it is not clear to what degree this relationship is moderated by the business environment. It is also uncertain which dimensions of the Narver and Slater (1990) measure of market orientation explain the relationship. Research conducted in four countries (Australia, China, Singapore and the Netherlands) of 217 companies found a strong association between market orientated strategies and company performance. Further, results of the research suggest that a customer orientated strategy may be a more appropriate strategy for a company to pursue when operating in a disturbed reactive or a turbulent business environment. The societal marketing concept, was found to be positively associated with company performance, and used as a 'pre-emptive' strategy by firms operating in a placid clustered environment. It would thus seem that a customer orientated strategy is more important in very turbulent environments, such as those after September 11th, 2001, than first thought.