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Marketing performance is an indicator to measure achievements that obtained from the process of organization’s overall marketing activities. In addition, marketing performance can also be seen as a concept used to measure the extent of which market performance that has been achieved by a product produced by the organization. Gatignon and Xuereb (1997) states that marketing performance is a factor that is often used to measure the impact of the strategy applied by the organization. The organization’s strategy has always aimed to develop good marketing performance (such as sales volume and sales growth rate) and good financial performance. Furthermore, Ferdinand also stated that a good marketing performance expressed in three main scale value which are the value of sales, sales growth and market share.
Baker and Sinkula (1999) explained that sales growth will depend on how many customers have been affiliated to the average consumption rate, that is fixed. The sales value shows how much money or how many units of the products successfully sold by organization to customers. The higher value of sales indicated that more products had been sold by the organization. While the market share shows how much contribution that the product can dominate the market if compared to its competitors’ product.
Results of research conducted by Li (2000) managed to find the positive influence of the competitive advantage performance is measured by sales volume, the rate of profit, market share and return of investment. Competitive advantage can be obtained from the organization’s ability to process and utilize its resources and capital.
Organization that are able to create competitive advantage will have the strength to compete with other organizations because the product will remain in customers’ demand. Thus, the competitive advantage need to have a positive influence in order to improve organization’s marketing performance.
Some other indicators that had been used in assessing the marketing performance are the volume of sales, customer growth and profitability. The sales volume is the volume of sales of the organization’s products. Subscriber growth tell the growth rate of the organization’s customers. Profitability indicate the amount of profit earned by the organization.
*Fingers crossed as I had done badly for my previous blog*
By: Aizat Sabtu (214360457)
Baker, W.E. & Sinkula, J.M. (1999), “Learning Orientation, Market Orientation and Innovation: Integrating and Extending Models of Organization Performance”, Journal of Marketing Focused Management, Vol. 4, pp. 295-308
Gatignon, H. & Xuereb, J. (1997), “Strategic Orientation of the Firm and New Product Performance”, Journal of Marketing Research, pp. 77-79
Li, L.X. (2000), “An Analysis of Sources of Competitiveness and Performance of Chinese Manufacturers”, International Journal of Operation and Production Management, Vol. 20, No. 3
Li, T. & Calantone, R.J. (1998), “The Impact of Market Knowledge Competence on New Product Advantage: Conceptualization and empirical Examination”, Journal of Marketing, pp. 13-29
Narver, J.C., & Slater, S.F. (1990), “The Effect of Market Orientation on Business Profitability”, Journal of Marketing, pp. 20-35