1.1.2 market/product orientation Flashcards

1
Q

definition product oriented

A

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

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2
Q

when is product oriented appropriate

A

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

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3
Q

product oriented examples

A

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

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4
Q

definition market oriented

A

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

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5
Q

example market orientation

A

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

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6
Q

pro/con market oriented

A

✅ 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

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7
Q

what is market research

A

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

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8
Q

what defermines if market or product oriented

A

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

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9
Q

pro/con product oriented

A

✅ 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

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