Product & Market Orientation
- A product orientation is an approach to marketing that focuses on the characteristics of the product rather than the needs of the consumer
- The emphasis will be on creating a product first and then finding a market
- The business has a belief that the product is superior i.e. it will sell itself
- One problem with being too product orientated is that over time your business may move further and further away from what the market is looking for, thus increasing the risk of business failure
- E.g. Gillette's razors can be classed as a product oriented business as the business focuses on the quality of its products and regular innovations aim to increase sales
A product orientation is an approach often used by inventors who research, test and produce a product well before market research has taken place
- Market orientation is an approach to marketing that focuses on the needs of consumers and uses this information to design products that meet customer needs
- Consumers are at the centre of marketing decisions
- Products will be developed which respond to consumer needs
- The result of market orientation is that the firm will benefit from increased demand, increased profits, and a valued brand image as its products become more desirable
- E.g. Universities often develop new courses based on the feedback they receive from students and employers
Market orientation aims to develop products to meet needs identified by consumers during the market research process