MARKET ORIENTATION OF PHARMACEUTICAL ...

INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY EDUCATIONAL RESEARCH ISSN : 2277-7881; IMPACT FACTOR – 5.818; IC VALUE:5.16; ISI VALUE:2.286 VOLUME 7, ISSUE 2(4), FEBRUARY 2018

MARKET ORIENTATION OF PHARMACEUTICAL EXECUTIVES TOWARDS MARKET PLACE Dr.Sandeep Narula Associate Professor The IIHMR University,Jaipur Abstract In the past lot of work has been cited and published in context to the market orientation of the business organizations and its impact on the business performance, but very few work has been published about the market orientation of the pharmaceutical companies.The present paper highlights the orientation of the pharmaceutical executives towards the market place. The online study was carried out and the scale developed with the help of previous literatures was served to 175 respondents and 112 respondents successfully submitted the filled questionnaire. Factor analysis was performed to extract the factors. Four factors were extracted and regression analysis was performed to determine the variables which influences significantly the construct Market orientation. The Regression model depicted that Market orientation is depend on the Independent variables - Operational efficiency, Innovation, Customer Orientation and Value Proposition. Of the four factors extracted, Operational efficiency has the highest standardize beta. Introduction It is a well established fact that in the pharmaceutical sales and marketing domain, needs and wants of the customers (i.e.Doctor’s) are of prime importance and all the sales and marketing functions and activities are focused around these customers and also Doctors too consider Pharmaceutical professionals as important source of information ( (Joel, 1989),(Pedroso, 2009, ) and based on this notion they in turn take care of the end usersi.e.patients(Azoulay, 2002). (Kotler, 2012) advocates following types of orientation towards market place: Production, Product, Selling, Marketing and Holistic Marketing. In Healthcare, be it Hospital or Medical Device, or Pharmaceuticals ,Marketing orientation has established its role ((Kumar Kamlesh, 2011) as this orientation is very closely association with growth and profitability((Raju, Lonial, & Gupta, 1995). Here, further it is

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important to establish that it is Market orientation that actually operationalizes the marketing concept (Narver, 1990). Since it is a proven fact that a business organization employs market orientation in order to achieve a sustainable competitive advantage ((Jaworski, 1993)(Greenley, 1995a) and in-variably a compay during SWOT analysis identifies multiple sustainable advantages and these SCAs leads to the long term growth and profitability. So, it further suggests that in order to have a long term growth and profitability a business organization should have sound strategic orientation philosophy too(Cool, 1987). Marketing orientation is a company philosophy and it is aimed to identify, discover and meeting the customer needs and desires by offering them their Product Mix((Lukas, 2000) Although lot of research has been done in the past to link market orientation and performance of the business organization (Diamantopoulos, 1993 ) but no research is available till date which has evaluated the orientation of Pharmaceutical executives which acts as a strong bridge between the organization and customers i.e Doctors,who are considered to be highly knowledge driven and patient centric.((Applbaum, 2010). A pharmaceutical company employs Medical representative ( or Field executives) to promote their products to Doctors who in turn prescribe the drugs to the patients and in this way the company sales take place and in turn the productivity and profitability.((Crowley James, 2015) Although very limited research is available which where selling orientation and market orientation are studied separately. In context to selling orientation, customer oriented selling (COS) is considered as the edifice for the implementation of marketing orientation and to measure selling orientation SOCO scale is used ((Saxe, 1982) Literature Review: Extant literature is widely available which is sufficient to suggest and highlight the use of market orientation not only in healthcare industry but in other related industries too.The following table, although not exhaustive but gives a comprehensive view and evidence that how market orientation leads the organization towards performance. www.ijmer.in

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INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY EDUCATIONAL RESEARCH ISSN : 2277-7881; IMPACT FACTOR – 5.818; IC VALUE:5.16; ISI VALUE:2.286 VOLUME 7, ISSUE 2(4), FEBRUARY 2018 Sr.No. 1.

2.

Article The effect of a market orientation on Business Profitability Market Orientation &Performance : Does Organizational Strategy Matter?

3.

Eaxmining the Market Orientation Performance Relationship : A context specific study

4.

Relating Strategic market orientation and market performance :role of customer value types Market Orientation: The construct, Research proposition and Managerial Implications Market Orientation and Learning organization Strategic Orientation of the firm and New Product Performance Pure Vs Hybrid :Performance Implications of Porter’s generic

5.

6.

7.

8

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Author John C Narver and Stanley F Slater

Variables Customer Orientation, Competitor Orientation, Interfunctional Coordination, Long term horizon, Profit emphasis

Kamlesh Kumar, Ram Subramania n, Karen Starndholm Kamlesh Kumar, Ram Subramania n, Charles Yauger

Customer Orientation, Competitor Orientation, Inter-functional Coordination, Long term focus, Survival/growth/profit, Market Orientation, Low Cost Strategy, Differentiation strategy

Gurjeet Kaur, Mahesh Gupta, Subhash Lonial

Customer Orientation, Competitor Orientation, Market Performance, Economic value, Relational value, Technical/functional value

Customer Orientation, Competitor Orientation, Inter-functional Coordination, Long term focus, Survival &growth emphasis,

C

A .K Kohli and B.J. Jaworski

Customer focus, Interdepartmental dynamics, Organizational systems,

John C Narver and Stanley F Slater H.Gatignon and J.M.Xuereb

Market orientation, organization culture, Organizational Learning, Customer Satisfaction, New Product Success, Sales growth, Profitability Strategic Orientation,Customer Orientation,Competitor Orientation,Interfunctional coordination,Innovation

Kamlesh Kumar, Ram Subramania

Organization Performance, Cost Reduction, Operational Efficiency, Differentiators,

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9.

10.

11.

12.

Strategies

n, Charles Yauger

Competitive Strategy for successful Hospital Management The Effects of Strategy type on the Market orientation Performance relationship Organizational Drivers of Salespeople’s Customer Orientation and Selling Orientation SOCO's impact on individual sales performance: The integration of selling skills as a missing link

W.O.Cleverl y and R.K.Harvey

Market Share, Diversification, Finance policy, Cost Leadership, Market Performance

Matsuno K and Mentzer J.T.

Market Orientation,Organization Performance, Competitive environment, Strategy type

Paolo Guenzi, Luigi Mario De Luca

Customer Oriented Culture,Sales Force, Strategic Orientation, Role clarity,Customer Orientation,

Trent Wachner , Christopher R. Plouffe ,, YanyGrégoir e

Sales Orientation,CustomerOrientation,Selling skills, Organization performance

Table 1: Literature review Lot of research is available on market orientation, but study of market orientation and selling orientation in isolation is not yet available. In pharmaceutical selling the role of field executives is to assist the Doctors in choosing a particular drug in the identified indication so that the patient is cured.This is a typical customer oriented selling which is expected from sales person to assist their customers in the assessment of their needs and offering them solutions to satisfy their needs (Saxe, 1982). The 24 item SOCO scale clearly distinguishes between the short term sales gain (i.e. “sales orientation” used by sales-man versus “customer oriented” approach based on the needs or wants.

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Unfortunately, the results available in the literature to establish performance and customer orientation are not conclusive in nature((Schwepker, 2003). The recent reports,articles, blogs, news reports are have highlighted in plenty the type of selling practices, attitudes and behavior adopted by the pharmaceutical executives to sell and promote their drugs at the market place leading to great amount of chaos and unethical selling practices and thus distorting the image of Brand “Pharmaceutical Industry”.(www.impgroup.org). Over a period of time the Pharmaceutical Industry due to heavy investment in R&D and shrinking life-cycles of the products have been forced to retort to short term gains in order to recoup the money invested and maximize the profits and stakeholders returns ((Oldani, 2002). Problem Statement : As the literature review suggests that there is a clear visible difference between the two orientations : Selling and Marketing , hence the same should be reflected in the empirical study. Keeping in view this approach, the study was undertaken to study and determine the difference in the orientation among the Pharmaceutical executives.Since, by default the pharmaceutical industry is knowledge driven industry ((Powell, 1998) and both the sales and marketing functions are based on the needs and wants of the customers, hence to a great extent it should be marketing oriented. Since over a period of time esp. after LPG of Indian economy, the competitive rivalry among the pharmaceutical companies has increased and there is more thrust to increase revenue ((Cool Karel, 2006),so there is a need to assess the orientation of the pharmaceutical executives. Hence, the problem statement of the study is to identify the orientation of the Pharmaceutical executives towards Market place i.e.whether it is Marketing orientation or Selling Orientation Objectives of the study: Based on the literature review and problem statement, the following objectives were identified: 1.To develop a measure of Market Orientation in context to Pharmaceutical Industry. www.ijmer.in

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2.To determine the factors affecting the Market Orientation of Pharmaceutical Industry. 3. To identify dependent and independent variables affecting the Market orientation in context to Pharmaceutical Industry. Conceptual Framework The conceptual framework used in the study was developed after extant literature review and premise that any business organization that increases its market orientation is bound to have a superior market performance ((Narver, 1990),and hence the variables of interest were chosen keeping in view the objectives of the study and past studies available. As per the study of (Narver, 1990), Market orientation comprises of three components i.e. Customer orientation, competitor orientation and interfunctional co-ordination with two important decision criteria i.e.long term focus and profitability. It is well known fact that at the market place a customer always seeks a superior customer value ((Alderson, 1957),(Chamberlin, 1993)) and to create superior customer value they must always create sustainable competitive advantage i.e.SCA(Aaker, 1988)(Porter, 1980). Since creation SCA is a continuous process and for this the organization needs to build a culture that induce the desired behavior.Hence, Market Orientation is the culture that induces the desired behavior among the professionals and very effectively and efficiently it creates the desired SCA ((Shapiro, 1988)(Webster, 1988). If Customer Orientation is the business philosophy of a particular organization, then that organization must have a sound understanding of the target market buyer needs and wants and they should their products/services consistently to them a sustainable and superior customer value on a continuous and on going basis ((Day, 1984) and (Wensley, 1988). In context to Competitor Orientation, since the pharmaceutical companies operate in a specific and targeted therapeutic segments, so it is believed that pharmaceutical professionals have sound and though understanding of buyers and the current and potential competitors. Among the competitors, it is also firmly believed that they all have good

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and sound understanding of the competitors strengths and weaknesses too((Aaker, 1988),(Porter, 1980),(Levitt, 1960)). The past and contemporary literature very succinctly emphasizes the need for the inter-functional co-ordination. If the organization wants to deliver superior customer value to the customer, then there has to be interdepartmental support among the entire value chain of the product/services. each very point at the value must be a source of value driver ((Porter, 1980). If the interdepartmental support or coordination is missing then it can be established by the effective leadership which can act as bridge between the functional areas.((Ruekert, 1987a). Academicians and literature , both have advocated that the market orientation always has long term focus and invariably it is equally associated with profitability too, provided if each of the three components are implemented effectively.(Houston, 1986). Also economic wealth or profitability concept is also advocated by the literature and is considered to the prime objective of the business and it has a responsibility towards the stake holders too.((Felto, 1959),(Mc Namara, 1972)) Hence based on the above framework following hypothesis are formulated. Hypothesis: H1: Market Orientation is positively dependent on the factors:  Customer orientation  Competitor Orientation  Inter-functional co-ordination H2: Market Orientation variables are positively correlated with each other. Research Methodology: Sample: The study was undertaken to assess the market orientation of the pharmaceutical field executives. Hence, the questionnaire designed on the basis of above literature review was served 175 pharmaceutical companies Senior Marketing executives. Since these marketing executives are primarily responsible for designing the marketing www.ijmer.in

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strategies of the pharmaceutical products which in turn are implemented by field professionals, hence the assessment of the orientation of these marketing professionals is extremely important. The sample data was obtained from the Pharmaceutical executives marketing directory and form that list 175 respondents were chosen randomly. Out of 175 questionnaires served online to the respondents, 112 respondents submitted the fully filled questionnaire. For gathering of data, purposive sampling was used. All the 175 respondents were initially contacted telephonically and the purpose of the study was briefed to them and then questionnaire was served with a request to submit back the same within 15 days. After submission of the questionnaire, nearly 3-4 reminders were served to obtain the fully filled questionnaire and the final response rate came out to be 64%. Development of Scale/Survey instrument: Scale developed by (Narver, 1990) was used customized and modified to be used in the current pharmaceutical business scenario. Similarly for the measurement of organizational performance, variables identified by ((Kumar, 1998) were taken into consideration which included not only performance criteria but also success in retaining customers and controlling the field operation expenses too. The variables of interest were chosen were measured on 7 point Likert scale. The usage of 7 point scale is advocated by (Gupta, 1984) and is found suitable in the performance measurement studies where 1= Not at all and 7= To an extreme extent. Table 2 given below summarizes the various variables which are used in this study: Sr.No. 1a. 1b. 2. 3. 4. 1

Variables( 1=Not at all ; 7= To an extreme extent) Do you know about Market Orientation? (Yes/No) To what extent do you know about Market Orientation (Likert scale) Do you consider you company as Product Oriented or Market Oriented (PO=1 & MO=2) What is the company’s annual sales turnover ? Are the company’s product advertised in Medical journals? ( Yes/No) Customer Orientation Our business strategies are driven by our beliefs about how we can create greater value for customers.

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INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY EDUCATIONAL RESEARCH ISSN : 2277-7881; IMPACT FACTOR – 5.818; IC VALUE:5.16; ISI VALUE:2.286 VOLUME 7, ISSUE 2(4), FEBRUARY 2018 2 3 4 5 6 7 8 9 10 11 12

13 14 15

16 17 18 19 20

21 22 23 24 25

We constantly monitor our level of commitment and orientation to serving customer needs We measure customer satisfaction systematically and frequently. Our top managers from every function regularly visit our current and prospective customers We give close attention to after sales service. Our business objectives are driven primarily by customer satisfaction. Competitor Orientation Our Sales people regularly share information within our business concerning competitors strategies. We target customers where we have an opportunity for competitive advantage Top management regularly discusses competitors strengths and strategies We rapidly respond to competitive actions that threaten us Inter functional coordination We share resources with other business units. All our business functions (e.g.marketing/sales, manufacturing, R& D, finance/accounting, etc) are integrated in serving the needs of our target markets. We freely communicate information about our successful and unsuccessful customer experiences across all business functions Our strategy for competitive advantage is based on our understanding of customer’s needs. All of our managers understand how everyone in our business can contribute to creating customer value Long term focus My Company activities are designed and focused keeping in view the long term profits of the business. Our company takes and adopts all key functional areas and undertakes those activities to ensure long term survival and profitability of the business. The company aims and carries out all those activities that generate profits and margins in the long run. The company always strives to look out for discovering and implementing new value for patients. While carrying out services, the company tries to overcome any deficiency in services. Survival and Growth /Profit Emphasis The company analyses profits and margins for every product, product line and business units . The company has a well defined strategy with rapid payback method to recover money invested in new products /new projects The top managers always emphasize improved performance relative to competitors The company ensures that all business units are generating profits. The company ensures and emphasizes to generate and earn sufficient revenue to cover all operating expenses.

Table2: Variables used in survey instrument www.ijmer.in

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Results: The results were analyzed using SPSS and MS excel . The Statistical procedures used for data analysis were factor analysis, Correlation and Regression Analysis. Internal Consistency: To determine the coherence of the respondents, Cronbach Alpha was determined which tells the Internal consistency of the questionnaire. Case Processing Summary N

%

112

100.0

Excludeda

0

.0

Total

112

100.0

Cases Valid

a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Cronbach's Alpha Based on Alpha Standardized Items N of Items .944

.945

23 Table 3; reliability of the instrument

Cronbach alpha of the survey instrument came out as .94,which shows that all the variables are highly consistent and closely related to each other and hence the instrument is highly reliable too. Correlation Analysis: The variables taken into consideration were tested for the bivariate correlation before going for the factor analysis. The following table depicts the correlation analysis of the variables: We can observe that all the variables are positively correlated and have statistical significant relationship with each other and hence they are suitable for further statistical analysis. i.e.Factor analysis. www.ijmer.in

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Factor Analysis: Table 4: KMO and Bartlett's Test Kaiser-Meyer-Olkin Adequacy. Bartlett's Sphericity

Test

Measure

of

Sampling

of Approx. Chi-Square

.899 1199.904

df

253

Sig.

.000

The KMO test, which is a ratio, checks the ratio between the number of statement and the number of respondents. If the ratio is greater than 0.6, then is considered as good and also the test should be significant. Here, in this the ration is 0.899 and it is highly significant also, which show that there is sufficient correlation between the variables, although the same we have established earlier also through correlation analysis. Factor analysis was performed using Principal component analysis extraction method and Varimax rotation was used. Communalities: It indicates the amount of variance each statement accounts for explaining the variance and for this any statement which has communalities less than 0.5, is not considered for further analysis. The following table depicts the communalities of the variables under consideration:

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Table 5: Communalities( should be greater than 0.5) Extracti Initial on Our business strategies are driven by our beliefs about how we can create greater value for customers. We constantly monitor our level of commitment and orientation to serving customer needs We measure customer satisfaction systematically and frequently. Our top managers from every function regularly visit our current and prospective customers We give close attention to after sales service Our business objectives are driven primarily by customer satisfaction Our Sales people regularly share information within our business concerning competitors strategies. We target customers where we have an opportunity for competitive advantage Top management regularly discusses competitors strengths and strategies We share resources with other business units. All our business functions (e.g.marketing/sales, manufacturing, R& D, finance/accounting, etc) are integrated in serving the needs of our target markets We communicate information about our successful and unsuccessful customer experiences across all business functions All of our managers understand how everyone in our business can contribute to creating customer value Company activities are designed and focused keeping in view the long term profits of the business www.ijmer.in

1.000

.667

1.000

.723

1.000

.622

1.000

.616

1.000 1.000

.642 .653

1.000

.670

1.000 1.000 1.000

.554 .730 .615

1.000

.544

1.000

.592

1.000

.614

1.000

.742 185


Our company takes and adopts all key functional areas and undertakes those 1.000 activities to ensure long term survival and profitability of the business. The company aims and carries out all those activities that generate profits and 1.000 margins in long run The company always strives to look out for discovering and implementing new 1.000 value for patients. While carrying out services, the company tries to overcome any deficiency in 1.000 services The company analyses profits and margins for every product, product line and 1.000 business units . The company has a well defined strategy with rapid payback method to recover 1.000 money invested in new products /new projects The top managers always emphasize improved performance relative to 1.000 competitors The company ensures that all business units are generating profits 1.000 The company ensures and emphasizes to generate and earn sufficient revenue to 1.000 cover all operating expenses Extraction Method: Principal Component Analysis. Since all the communalities are greater than 0.5, hence we will keep all the items of the scale.

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.771 .713 .730 .733 .538 .636 .700 .731 .655

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Table 6: Total Variance Explained Extraction Sums of Squared Initial Eigenvalues Loadings % of Cum. % of Cum. Comp Total Var. % Total Variance % 1 10.578 45.989 45.989 10.578 45.989 45.989 2 2.337 10.163 56.152 2.337 10.163 56.152 3 1.272 5.529 61.681 1.272 5.529 61.681 4 1.004 4.364 66.045 1.004 4.364 66.045 5 .935 4.066 70.111 6 .850 3.695 73.806 7 .799 3.473 77.279 8 .707 3.074 80.354 9 .590 2.564 82.918 10 .535 2.325 85.243 11 .443 1.926 87.169 12 .437 1.901 89.070 13 .384 1.671 90.741 14 .356 1.547 92.287 15 .315 1.371 93.658 16 .289 1.258 94.917 17 .245 1.063 95.980 18 .225 .978 96.959 19 .186 .810 97.769 20 .181 .786 98.555 21 .139 .604 99.159 22 .098 .426 99.585 23 .095 .415 100.000 Extraction Method: Principal Component Analysis.

Rotation Sums of Loadings % of Total Variance 5.315 23.111 3.494 15.192 3.379 14.690 3.002 13.053

Squared Cumula tive % 23.111 38.303 52.992 66.045

From the above table of Total variance explained, we can observe that the first four components (as every individual statement is treated as component) explain the maximum variance of all the components i.e. cum 66% , which is considered as good variance. Also, simultaneously, the eigen values of these four components is greater than1, hence these components are taken into consideration,as they also suggest the possibility of four factors in the solution which is also reflected in the scree plot.

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Fig 1: Scree plot Hence, total FOUR factors are extracted from the solution, as shown in the following Rotated Component Matrix table. Table 7: Rotated Component Matrixa Component 1 2 3 Our company takes and adopts all key functional areas and undertakes those activities to ensure long term survival and profitability of the business. The company ensures that all business units are generating profits The company ensures and emphasizes to generate and earn sufficient revenue to cover all operating expenses The top managers always emphasize improved performance relative to competitors Company activities are designed and focused keeping in view the long term profits of the business The company has a well defined strategy with rapid payback method to recover money invested in new products /new projects The company analyses profits and margins for every product, product line and business units . Top management regularly discusses competitors strengths and strategies Our top managers from every function regularly visit our current and prospective customers We target customers where we have an opportunity for

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4

.814 .805 .765 .764 .749 .682 .643 .743 .667 .664

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INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY EDUCATIONAL RESEARCH ISSN : 2277-7881; IMPACT FACTOR – 5.818; IC VALUE:5.16; ISI VALUE:2.286 VOLUME 7, ISSUE 2(4), FEBRUARY 2018 competitive advantage The company always strives to look out for discovering and .598 implementing new value for patients. The company aims and carries out all those activities that .563 generate profits and margins in long run All our business functions (e.g.marketing/sales, manufacturing, R& D, finance/accounting, etc) are .518 integrated in serving the needs of our target markets We constantly monitor our level of commitment and orientation to serving customer needs While carrying out services, the company tries to overcome any deficiency in services Our business strategies are driven by our beliefs about how we can create greater value for customers. Our business objectives are driven primarily by customer satisfaction We measure customer satisfaction systematically and frequently. Our Sales people regularly share information within our business concerning competitors strategies. We share resources with other business units. We communicate information about our successful and unsuccessful customer experiences across all business functions We give close attention to after sales service All of our managers understand how everyone in our business can contribute to creating customer value Extraction Method: Principal Component Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 10 iterations.

.703 .689 .666 .629 .576 .514 .746 .697 .653 .514 Analysis.

We name these four factors as: i. ii. iii. iv.

Operational efficiency Innovation Customer Orientation Value Proposition

To identify whether these four factors are significantly different from each other, we take the four factors extracted scores and perform bivariate correlation analysis on them. Since I had used Orthogonal rotation, which itself uses 90 degree rotation, hence factors should be significantly different from each other.(Costello, July 2005)

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Table 8: Descriptive Statistics REGR 1 REGR 1 REGR 1 REGR 1

factor score 1 for analysis factor score 2 for analysis factor score 3 for analysis factor score 4 for analysis

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Mean

Std. Deviation

N

.0000000

1.00000000

112

.0000000

1.00000000

112

.0000000

1.00000000

112

.0000000

1.00000000

112

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Table 9: Correlations REGR factor score 1 for analysis 1 REGR factor score 1 for analysis 1 REGR factor score 2 for analysis 1 REGR factor score 3 for analysis 1 REGR factor score 4 for analysis 1

Pearson Correlation Sig. (2-tailed) N

1

REGR factor score 4 for analysis 1

.000

.000

.000

1.000

1.000

1.000

112

112

112

112

.000

1

.000

.000

1.000

1.000

Pearson Correlation Sig. (2-tailed)

1.000

N

112

112

112

112

.000

.000

1

.000

1.000

1.000

112

112

112

112

.000

.000

.000

1

1.000

1.000

1.000

112

112

Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N

112 The Hois : There is no relationship among the factors.

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REGR factor REGR factor score score 2 for analysis 1 3 for analysis 1

1.000

112

191


Since p-value is greater than 0.05, hence we cannot reject the Ho, and accept Ho i.e.there is no relationship among the factors, hence the factors extracted are not same and they are significantly different from each other.(factors extracted through Oblimin rotation are correlated with each other) Regression Analysis The factors extracted were used for further regression analysis. Item used in the construct“ we constantly monitor our level of commitment and orientation to serving customer needs” was used as dependent variables and the four factors identified were used as Independent variables. Table 10: Model Summarye

Model 1 2 3 4

Adjuste d R2

DurbinWatson

Change Statistics Std. Error of R Square F the Estimate Change Change

df1

df2

Sig. F Change

R

R2

.334a

.112 .104

1.30095

.112

13.820

1

110

.000

.474b

.225 .211

1.22079

.113

15.921

1

109

.000

.848c

.719 .711

.73849

.494

189.864

1

108

.000

.850d

.723 .713

.73624

.004

1.661

1

107

.200

1.687

a. Predictors: (Constant), REGR factor score 1 for analysis 1 b. Predictors: (Constant), REGR factor score 1 for analysis 1, REGR factor score 2 for analysis 1 c. Predictors: (Constant), REGR factor score 1 for analysis 1, REGR factor score 2 for analysis 1, REGR factor score 3 for analysis 1 d. Predictors: (Constant), REGR factor score 1 for analysis 1, REGR factor score 2 for analysis 1, REGR factor score 3 for analysis 1, REGR factor score 4 for analysis 1 e. Dependent Variable: We constantly monitor our level of commitment and orientation to serving customer needs Regression analysis was performed using Stepwise method.

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The model turned out to be highly significant and all the four variables put together yielded 72.3% variation.( i.e.R2 change) Table 11: ANOVAa Sum of Mean Model Squares df Square F Sig. 1 Regressio 23.389 1 23.389 13.820 .000b n Residual 186.173 110 1.692 Total 209.563 111 2 Regressio 47.116 2 23.558 15.807 .000c n Residual 162.446 109 1.490 Total 209.563 111 3 Regressio 150.663 3 50.221 92.086 .000d n Residual 58.900 108 .545 Total 209.563 111 4 Regressio 151.563 4 37.891 69.902 .000e n Residual 58.000 107 .542 Total 209.563 111 a. Dependent Variable: We constantly monitor our level of commitment and orientation to serving customer needs b. Predictors: (Constant), REGR factor score 1 for analysis 1 c. Predictors: (Constant), REGR factor score 1 for analysis 1, REGR factor score 2 for analysis 1 d. Predictors: (Constant), REGR factor score 1 for analysis 1, REGR factor score 2 for analysis 1, REGR factor score 3 for analysis 1 e. Predictors: (Constant), REGR factor score 1 for analysis 1, REGR factor score 2 for analysis 1, REGR factor score 3 for analysis 1, REGR factor score 4 for analysis 1 The individual ANOVA model also turned out to be highly significant for all the four factors extracted. Hence the Regression equation can for the Market Orientation can be stated as : www.ijmer.in

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Market Orientation = Operational Efficiency +Innovation + Customer Orientation + Value Proposition MO=.643OE+.347Innovation+.058CO-.016VP

Fig 2: Histogram( ZPRED vs ZRESD) Discussions and Conclusions The scale developed by Narver and Slater was used to identify the market orientation of the Pharmaceutical executives. Market orientation itself is a challenging affair for a particular organization as the executives are always under constraints and they need to perform and excel at the market place within these limitations.(Hurley, July 1998) As it can be observed through above statistical analysis, Market orientation is significantly influenced by Operational efficiency, Innovation and Customer orientation, but less influenced by value proposition as in the pharmaceutical industry for a doctor drug, its source, efficacy and efficiency of the drug and availability of the drug is more important. Hence for the doctor patient is more important than www.ijmer.in

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any other aspect of the marketing ((Smith, 1996). It can also be further deuced that while carrying out the business operation of any pharmaceutical company , the operational efficiency and Innovation are the important factors(Tatikonda, Jan.2001) as we have seen also the pharmaceutical executives not only tries to make their products available in the remote villages, but also they keep on developing new techniques in order to make the drug convenience and compliance. Nano technology is the latest example in the innovation list. Managerial Implications: For any business organization, it is extremely important to understand the customer needs and perceptions and based on the customer needs they need to offer their products and services and for this it is very important to develop a sound mechanism which keeps on providing update of the market and societal trends and accordingly they can customize their offering at the market place. Market orientation is a culture, is a philosophy and it needs to revisited on a regular and periodical basis and the entire onus lies on the top management. The dependent variable used in the construct “ we constantly monitor our level of commitment and orientation to serving customer needs” highlights the same as this DV is not only significant with the four factors extracted -Operational efficiency, Innovation ,Customer Orientation and Value Proposition. The standardize beta has a high value for Operational efficiency, suggesting that the company after discovering the drug must focus on the business operations in order to make their drug available, accessible and affordable at the market place. Limitations: The research was carried out with very less number of respondents, as the pharmaceutical executives are very reluctant to share the information. Hence, to have views of more respondents is extremely important. Also, to further establish the concept, it is important that this view should be contrasted with the selling orientation, Hence ,once both the orientations feedback is available ,then it can be easily concluded that what behavior skills and mindset is required to carry the head office operations and field business operations respectively as bot the variables need a different orientation altogether at the market place. www.ijmer.in

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