1.1.2 market/product orientation Flashcards
definition product oriented
when business only looks at the product or production process when deciding what to make next
business is inward looking
when is product oriented appropriate
little competition in market –> business can make whatever suits its production capacity
limited customer knowledge e.g. braces
low disposable income of consumers
product oriented examples
Apple –> create what they can, not what consumers want (consumer limited knowledge, wants impossible things)
Dyson
Tesly
Netflix
definition market oriented
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
example market orientation
audi cars –> focuses on wants of customers e.g. what colours they want
Coke
Zara
Starbucks
Mcdonalds
pro/con market oriented
✅ Pros:
Higher customer satisfaction → increased loyalty and sales
More adaptable to market changes
Reduces the risk of product failure
❌ Cons:
Higher costs for market research
Product innovation may be limited to existing customer expectations
Strong competition may force price reductions
what is market research
any activity gives a business information about its products/services including its customers, competitors, market it operates in
what defermines if market or product oriented
type of product: invention =product
size: larger = market
competition: lots = market
industry: science = product, arts = market
pro/con product oriented
✅ Pros:
Strong brand identity and expertise in the product
Focus on innovation → unique, high-quality products
Less reliance on market trends → long-term investment in R&D
❌ Cons:
Risk of low demand if customers do not need the product
Less flexibility to adapt to changing market preferences
Marketing efforts may need to work harder to generate demand
