1. To what extent is H&M marketing orientated? What evidence is there in the case to support your view? [40%]
As defined by (Narver.J.C. & Slater, 1990) market orientation is an organisational culture that most effective and efficient in creating necessary behaviours for superior value offering it has for buyers and, thus, resulting in continuous superior performance for business.
Market orientation is when a company organizes its activities, products and services around the wants and needs of its customers. From the case study, there are evidence that H&M follows marketing orientation strategies and embodies the market oriented characteristics of a company.
In the case of H&M it can be seen that the organization follows the market orientation philosophy as it focuses on the needs and wants of the customers before making its products. A market oriented company such as H&M prides itself with high fashion at cheaper prices.
This as seen in H&M to changing its strategies from being “all about price” in 1972 to “adding quality fashion to the equation…” Stefan Persson, Chairman of Hennes & Maurite (Jobber, 2010). To support this strategy, H&M has also channelled 4% of its revenues to marketing and branding to suit the changing tastes and maintain interest of its young consumers and maintain market share.
Recognising lowered levels of disposable income on its consumers in the backdrop of the economic slump leaving consumers look for cheaper alternatives that are affordable, H&M has hence billed itself to meet and exceed its consumers by offering high fashion at low prices. This is seen effective marketing strategy that has been successfully implemented by its competitors such as Zara “billed as Armani on a Budget” whose style focuses on elegant and modern sophisticated fashionable consumer at accessible prices.
In contrast,