PRODUCT vs MARKET ORIENTATION

Question 1

PRODUCT ORIENTATION

Answer 1

Where the business puts most of its management effort into developing and making a product which IT believes consumers want and will sell well.

Question 2

MARKET ORIENTATION

Answer 2

Where the products are developed in response to customer needs.
The business will try to find out what the market wants through MARKET RESEARCH
It will then design and sell products that reflect what it has found out about its customer needs

Question 3

ADVANTAGES OF MARKET ORIENTATED BUSINESSES

Answer 3

• It can respond more quickly to changes in the market because of more market information.
• It will be in stronger position to meet the challenge of new competition entering the market.
• It will be more able to anticipate market changes.
• It will be more confident that the launch of a new product will be a success

Question 4

EFFECTS ON BUSINESS OF USING A MARKET ORIENTATED APPROACH

Answer 4

It must consult the consumer continuously (marketing research)
It must design the product accordingly to the wishes of the consumer
It must produce the product in the quantities that consumers want to buy
It must distribute the product according to the buying habits and delivery requirements of the consumer
It must set the price of the product at a level that the consumer is prepared to pay