Market Orientation in Professional Service Firms : A Framework for Market Oriented Practices

Abstract: This report combines theoretical and empirical findings to create a holistic framework for market oriented practices within professional service firms. Changes in the business environment of technology consultancy firms, has developed a need to adopt more structured procedures in assessing the market place and in responding, both through external activities as well as through internal optimization. An assumption was made that the market orientation concept was of relevance in addressing this need. A qualitative empirical investigation was conducted at a large professional service firm mainly operating within the construction consulting industry in Sweden. The result provides a conceptual framework for practising market orientation, based largely on empirical findings, which in the conclusion is summarized into a model to visualize the interconnection of the different parts of market orientation. The framework developed is ‘The Market Orientation Model’ which is made up four stages; (1) ‘Assess Current State’ in which the goal is to understand the current state of the firm; current market, current services and current competences. (2) ‘Collect Intelligence’ where the collection of market intelligence, using a set of different processes, about the needs and demands of current, new and internal customers should be gathered. (3) ‘Create Insight’ which is the process of identifying the Market Potential or the Market Demand through processes of organization wide dissemination and analysis of the gathered intelligence. (4a) ‘Create Response Initiative’ where the aim is to create new, or develop existing service offerings to meet the demand or need of the market. (4b) ‘Create Sales Initiative’ which is the initiation of a sales attempt of existing services to new or existing customers. The model creates a summarized picture of what constitutes market orientation and how it can be adapted to an organization. It can be used to create a standardized approach for an entire organization in building a market oriented firm. By continuously following this model in a market oriented firm, greater alignment with market should be achieved.