Competing strategically through market orientation.

As organizations seek to better understand their customers, competitors, and environments, the marketing function effectively serves as the support mechanism for these activities in many industries. Accordingly, in many organizations the marketing concept has been elevated to the stature of a strategic weapon, manifested in the form of market orientation. Market-oriented firms emphasize the collection, organization, and dissemination of information regarding both customers and competitors. This strategy is especially well-suited for the health care industry where customer knowledge is of paramount importance, customer interaction is instantaneous, and customer satisfaction is essential. Results of a national study of general service hospitals suggest that firms which embrace a market orientation benefit through enhanced customer satisfaction and quality.