1.1.2 market/product orientation

Question 1

definition product oriented

Answer 1

when business only looks at the product or production process when deciding what to make next
business is inward looking

Question 2

when is product oriented appropriate

Answer 2

little competition in market –> business can make whatever suits its production capacity
limited customer knowledge e.g. braces
low disposable income of consumers

Question 3

product oriented examples

Answer 3

Apple –> create what they can, not what consumers want (consumer limited knowledge, wants impossible things)
Dyson
Tesly
Netflix

Question 4

definition market oriented

Answer 4

business philosophy where the focus is on identifying customerneeds/wants and meeting them (market research)
focuses on designing and selling products/services that satisfy customer need to be profitable

Question 5

example market orientation

Answer 5

audi cars –> focuses on wants of customers e.g. what colours they want
Coke
Zara
Starbucks
Mcdonalds

Question 6

pro/con market oriented

Answer 6

+ band loyalty, competitive advantage, low risk
- constant change, less innovative

Question 7

what is market research

Answer 7

any activity gives a business information about its products/services including its customers, competitors, market it operates in

Question 8

what defermines if market or product oriented

Answer 8

type of product: invention =product
size: larger = market
competition: lots = market
industry: science = product, arts = market