Skip to main content
SpringerLink
Log in

Exploring Market Driving: A Case Study of De Beers in China

  • Published:
Journal of Market-Focused Management

Abstract

Theorists have highlighted the issue of ‘market driving’ wherein, in contrast to focusing on being close and listening to the market/customer (market driven), the firm ‘leads the customer’ or reshapes the markets to their own requirements. This study aims to present an empirical study of market driving that generates insights into not only what factors lead a firm into a market driving approach but also how market driving occurs in practice. A review of existing literature reveals that while a range of contributions have considerably advanced our understanding of both market driven and more recently, of market driving organizations, few empirical studies have been presented. Consequently, this study presents an exploratory case study of De Beers in China as a potentially valuable source of insights, complemented by a propositional inventory. The case of De Beers proposes that two factors lead to the adoption of a market driving approach, namely; customer familiarity and preconceptions of product characteristics, and the extent of market control. This study also contributes insights into the nature and dynamics of market driving. In particular, four tenets of market driving are identified as; market sensing, changing customer preferences, channel control through relationship formation, and local sensitivity. The study culminates with series of conclusions and implications.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Advertising Age: Special Supplement, The Advertising Century, Chicago, Grain communications Inc., (1999).

  • Avlonitis, George J., and Gounaris, Spiros P. (1998), “Market Orientation and Company Performance: Industrial vs Consumer Goods Companies,” Industrial Marketing Management, vol. 26, pp. 385–402.

    Google Scholar 

  • Avlonitis, George J., and Gounaris, Spiros P. (1999), “Market Orientation and its Determinants: An Empirical Analysis,” European Journal of Marketing, vol. 33, 11/12, pp. 1003–1037.

    Google Scholar 

  • Bennett, Roger C., and Cooper, Robert G. (1979), “Beyond the Marketing Concept,” Business Horizons, vol. 22 June), pp. 76–83.

    Google Scholar 

  • Bergenstock, Donna J., and Maskulka, James M. (2001), “The De Beers Story: Are Diamonds Forever?”Business Horizons, vol. 44, no. 3, 5/6, pp. 37–44.

    Google Scholar 

  • Bhuian, Shahid N. (1998), “An Empirical Examination of Market Orientation in Saudi Arabian Manufacturing ompanies,” Journal of Business Research, vol. 43, no. 1, pp. 13–25.

    Google Scholar 

  • Carpenter, Gregory, S., and Nakamoto, Kent (1989), “Consumer Preference Formation and Pioneering Advantage,” Journal of Marketing Research, vol. XXVI, August, pp. 285–298.

  • Clark, Terry, Rajan Varadarajan, P., and Pride, William M. (1994), “Environmental Management: The Constructs and Research Propositions,” Journal of Business Research, vol. 29, pp. 23–38.

    Google Scholar 

  • Corbin, Juliet, and Strauss, Anselm. L. (1990), “Grounded Theory Research Procedures, Canons, and Evaluative Criteria,” Qualitative Sociology, vol. 13, pp. 3–19.

    Google Scholar 

  • Day, George S. (1994), “The Capabilities of Market-driven Organizations,” Journal of Marketing, vol. 58, October, pp. 37–52.

  • Day, George S. (1999), The Market Driven Organization: Understanding, Attracting and Keeping Valuable Customer, NY: The Three Press.

    Google Scholar 

  • De Beers Diamond News (1994), (Chinese version; published and circulated in China).

  • Deshpande, Rohit, and Farley, John U. (1998), “Measuring Market Orientation: Generalization and Synthesis,” Journal of Market Focused Management, vol. 2, pp. 213–232.

    Google Scholar 

  • Dickson, Peter R., and Ginter, James L. (1987), “Market Segmentation, Product Differentiation, and Marketing Strategy,” Journal of Marketing, vol. 51, April, pp. 1–10.

  • Dubois, Bernard, and Duquesne, Patrick (1993), “The Market for Luxury Goods: Income Versus Culture,” European Journal of Marketing, vol. 27, no. 1, pp. 35–44.

    Google Scholar 

  • Dyer, W. Gibb, and Wilkins, Alan L. (1991), “Better Stories, Not Better Constructs, to Generate Better Theory: A Rejoinder to Eisenhardt,” Academy of Management Review, vol. 16, no. 3, pp. 613–619.

    Google Scholar 

  • Frosch, Robert A. (1996), “The Customer for R&D Is Always Wrong,” Research Technology Management, vol. 39, November/December, pp. 22–27.

    Google Scholar 

  • Geertz, Clifford (1973), The Interpretation of Cultures, New York: Basic Books Inc.

    Google Scholar 

  • Glaser, Barney G., and Strauss, Anselm L. (1967), The Discovery of Grounded Theory: Strategies for Qualitative Research, Chicago: Aldine.

    Google Scholar 

  • Golden, Peggy, Doney, Patricia, Johnson, Denise, and Smith, Jerald (1995), “The Dynamics of a Market Orientation in Transition Economies: A Study of Russian Firms,” Journal of International Marketing, vol. 3, pp. 29–49.

    Google Scholar 

  • Gouldner, Alvin W. (1954), Patterns of Industrial Bureaucracy, Glencoe, IL: Free Press.

    Google Scholar 

  • Greenley, Gordon E. (1995), “Forms of Market Orientation in UK Companies,” Journal of Management Studies, vol. 32, no. 1, pp. 47–66.

  • Grewal, Rajdeep, and Tansuhaj, Patriya (2001), “Building Organizational Capabilities for Managing Economic Crisis: The Role of Market Orientation and Strategic Flexibility,” Journal of Marketing, vol. 65, no. 2, pp. 67–80.

    Google Scholar 

  • Gummesson, Evert (1991), “Market-orientation Revisited: The Crucial Role of the Part-Time Marketer,” European Journal of Marketing, vol. 25, no. 2, pp. 60–75.

    Google Scholar 

  • Harris, Lloyd C. (1998), “Cultural Domination: The Key to a Market Oriented Culture?” European Journal of Marketing, vol. 32, no. 3/4, pp. 354–373.

    Google Scholar 

  • Harris, Lloyd C., and Ogbonna, Emmanuel (1999), “Developing A Market Oriented Culture: A Critical Evaluation,” Journal of Management Studies, vol. 36, no. 2, pp. 177–196.

    Google Scholar 

  • Harris, Lloyd C., and Piercy, Nigel F. (1999), “A Contingency Approach to Market Orientation: Distinguishing Behaviors, Systems, Structures, Strategies and Performance Characteristics,” Journal of Marketing Management, vol. 15, no. 12, pp. 617–646.

    Google Scholar 

  • Hayes, Robert H., and Wheelwright, Steven C. (1984), Restoring Our Competitive Edge: Competing Through Manufacturing, New York: John Wiley & Sons.

    Google Scholar 

  • Hoch, Stephen J., and Deighton, John (1989), “Managing What Consumers Learn from Experience,” Journal of Marketing, vol. 53, April, pp. 1–20.

    Google Scholar 

  • Homburg, Christian, and Pflesser, Christian (2000), “A Multi-Layer Model of Market-Oriented Organizational Culture: Measurement Issues and Performance Outcomes,” Journal of Marketing Research, vol. XXXVII, November, pp. 449–462.

    Google Scholar 

  • Hooley, Graham, Cox, Tony, Fahy, John, Shipley, David, Beracs, Jozsef, Fonfara, Krzysztof, and Boris Snoj (2000), “Market Orientation in the Transition Economies of Central Europe: A Test of the Narver and Slater Market Orientation Scales,” Journal of Business Research, vol. 50, pp. 273–285.

    Google Scholar 

  • Jaworski, Bernard J., and Kohli, Ajay K. (1993), “Market Orientation: Antecedents and Consequences,” Journal of Marketing, vol. 57, July, pp. 53–70.

    Google Scholar 

  • Jaworski, Bernard, Kohli, Ajay K., and Sahay, Arvind (2000), “Market-driven Versus Driving Markets,” Journal of the Academy of Marketing Science, vol. 28, no. 1, pp. 45–54.

    Google Scholar 

  • John, George, Weiss, Allen M., and Dutta, Shantanu (1999), “Marketing in Technology-Intensive Markets: Toward a Conceptual Framework,” Journal of Marketing, vol. 63, Special Issue, pp. 78–91.

    Google Scholar 

  • Kanter, Rossabeth M. (1973), Men and Women of the Corporation, New York: Basic Books.

    Google Scholar 

  • Kohli, Ajay, and Jaworski, Bernard J. (1990), “Market Orientation: The Construct, Research Propositions and Managerial Implications,” Journal of Marketing, vol. 54, April, pp. 1–19.

    Google Scholar 

  • Kohli, Ajay, Jaworski, Bernard J., and Kumar, A. (1993), “MARKOR: A Measure of Market Orientation,” Journal of Marketing Research, vol. 30, November, pp. 467–477.

    Google Scholar 

  • Kruegar, Richard A. (1994), Focus Groups; A Practical Guide for Applied Research, Thousand Oaks, CA: Sage.

    Google Scholar 

  • Kumar, Nirmalya (1997), “The Revolution in Retailing: From Market Driven to Market Driving,” Long Range Planning, vol. 30, no. 6, pp. 830–835.

    Google Scholar 

  • Kumar, Nirmalya, and Scheer, Lisa (1998), Radical and Incremental Product Innovation Among Market Driven and Market Driving Firms. Paper presented at the Marketing Science Institute/Journal of Marketing Conference on Fundamental Issues and Directions for Marketing, June 5–6, Cambridge, MA.

  • Kumar, Nirmalya, Scheer, Lisa, and Kotler, Philip (2000), “From Market Driven to Market Driving,” European Management Journal, vol. 18, no. 2, pp. 129–142.

    Google Scholar 

  • Lincoln, Yvonne S., and Guba, Egon G. (1985), Naturalistic Inquiry, California: Sage.

    Google Scholar 

  • Macdonald, Stuart (1995), “Too Close for Comfort? The Strategic Implications of Getting Close to Customers,” California Management Review, vol. 37, no. 4, pp. 8–27.

    Google Scholar 

  • McKenna, Regis (1988), “Marketing in an Age of Diversity,” Harvard Business Review, vol. 66, pp. 88–95.

    Google Scholar 

  • Miles, Matthew B. (1979), “Qualitative Data as an Attractive Nuisance: The Problem of Analysis,” Administrative Science Quarterly, vol. 24, pp. 590–601.

    Google Scholar 

  • Narver, John C., and Slater, Stanley F. (1990), “The Effect of a Market Orientation on Business Profitability,” Journal of Marketing, vol. 54, October, pp. 20–35.

    Google Scholar 

  • Park, Seung. H., and Luo, Yadong. D. (2001), “Guanxi and Organizational Dynamics: Organizational Networking in Chinese Firms,” Strategic Management Journal, vol. 22, no. 5, pp. 455–477.

    Google Scholar 

  • Park, C. Whan, Sung Youl Jun, and Shocker, Allan D. (1996), “Composite Branding Alliances: An Investigation of Extension and Feedback Effects,” Journal of Marketing Research, vol. XXXIII, November, pp. 453–466.

    Google Scholar 

  • Pecotich, Tony, and Shultz, Clifford (1998), Marketing and Consumer Behaviour in Asia, London: McGraw-Hill.

    Google Scholar 

  • Peters, Thomas J., and Waterman, Robert H., Jr. (1982), In Search of Excellence, New Yong: Harper and Row.

    Google Scholar 

  • Ruekert, Robert W. (1992), “Developing a Market Orientation: An Organizational Strategy Perspective,” International Journal of Research in Marketing, vol. 9, pp. 225–245.

    Google Scholar 

  • Samiee, Saeed, and Roth, Kendall (1992), “The Influence of Global marketing Standardization on Performance,” Journal of Marketing, vol. 56, April, pp. 1–25.

    Google Scholar 

  • Schaninger, Charles M. (1981), “Social Class Versus Income Revisited: An Empirical Investigation,” Journal of Marketing Research, May, pp. 192–208.

  • Schutte, Hellmut, and Ciarlante, Deanna (1999), Consumer Behavior in Asia, New York: Macmillian.

    Google Scholar 

  • Shapiro, Benson P. (1988), “What the Hell is ‘Market Orientation’?” Harvard Business Review, vol. 66, no. 6, pp. 119–125.

    Google Scholar 

  • Sheth, Jagdish N., and Sisodia, R. S. (1999), “Revising Marketing's Lawlike Generalization,” Journal of the Academy of Marketing Science, vol. 27, no. 1, pp. 71–87.

    Google Scholar 

  • Slater, Stanley F., and Narver, John C. (1998), “Customer-Led and Market Oriented: Let's Not Confuse the Two,” Strategic Management Journal, vol. 19, no. 10, pp. 1001–1006.

    Google Scholar 

  • Slater, Stanley F., and Narver, John C. (1999), “Market-Oriented Is More Than Being Customer-Led,” Strategic Management Journal, vol. 20, no. 12, pp. 1165–1168.

    Google Scholar 

  • Strauss, Anselm L., and Corbin, Juliet (1990), Basics of Qualitative Research: Grounded Theory Procedures and Techniques, Newbury Park, CA: Sage.

    Google Scholar 

  • Strauss, Anselm L., and Corbin, Juliet (1998), Basics of Qualitative Research: Grounded Theory Procedures and Techniques, Newbury Park: Sage.

    Google Scholar 

  • Strieter, Jeffery C., Celuch, Keven, and Chickery, Kasouf (1999), “Market-Oriented Behaviors within Organizations: An Individual-Level Perspective,” Journal of Marketing Theory and Practice, Spring, pp. 16–27.

  • Tjosvold, Dean, Hui, Chen., and Law, Kenneth S. (2001), “Constructive Conflict in China: Cooperative Conflict as a Bridge Between East and West,” Journal of World Business, vol. 36, no. 2, pp. 166–183.

    Google Scholar 

  • Turner, Barry A. (1981), “Some Practical Aspects of Qualitative Data Analysis: One Way of Organizing the Cognitive Processes Associated with the Generation of Grounded Theory,” Quality and Quantity, vol. 15, pp. 225–247.

    Google Scholar 

  • Whyte, William F. (1941), “Corner Boys: A Study of Clique Behavior,” American Journal of Sociology, vol. 46, pp. 647–664.

    Google Scholar 

  • Woodruff, Robert B., Locander, William B., and Barnaby, David J. (1991), “Marketing in a Value-oriented Organization.” In Michael J. Stahl and Gregory M. Bounds (eds.), Competing Globally Through Customer Value The Management of Strategic Suprasystems, USA: Quorum Books, pp. 566–585.

    Google Scholar 

  • Yin, Robert K. (1994), Case Study Research: Design and Methods, 2nd ed., Sage Publications.

  • Zeithaml, Carl, P., and Zeithaml, Valarie A. (1984), “Environmental Management: Revising the Marketing Perspective,” Journal of Marketing, vol. 48, Spring, pp. 46–53.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Cardiff Business School, Cardiff University, Colum Drive, Cardiff, CF10 3EU, United Kingdom

    Lloyd C. Harris (Professor of Strategic Management and Marketing)

  2. Cardiff Business School, Cardiff University, Colum Drive, Cardiff, CF10 3EU, United Kingdom

    Kai Yi Cai

Authors
  1. Lloyd C. Harris
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Kai Yi Cai
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Cite this article

Harris, L.C., Cai, K.Y. Exploring Market Driving: A Case Study of De Beers in China. Journal of Market-Focused Management 5, 171–196 (2002). https://doi.org/10.1023/A:1022938605867

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1022938605867

Search

Navigation