1.1.2 Product and market orientation

• What is a dynamic market?

  Markets that are constantly changing
• How do dynamic markets adapt to change?

  Through market research and adopting new technology
• What are the types of innovation in dynamic markets?

  Product, process, and customer-driven innovation
• Define the term ‘online retailing’.

  Selling products via the internet
• What is one disadvantage of online retailing?

  High costs for website development
• What is one advantage of online retailing?

  Access to more consumers internationally
• What are the key differences between product orientation and market orientation?

  • Product Orientation:
  • Focuses on producing and selling what the business does best
  • Increases economies of scale
  • May not respond to market changes

  
  

  • Market Orientation:
  • Focuses on understanding and meeting customer needs
  • Leads to greater customer satisfaction
  • Involves high costs for market research
• What is the lesson objective regarding product and market orientation?

  To define both product and market orientation
• What is the impact of market orientation on customer satisfaction?

  It leads to greater customer satisfaction
• What is a potential drawback of market orientation?

  High cost for market research
• What is the benefit of product orientation for a business?

  Focus on quality and production efficiency
• What is an example of a business that combines both orientations?

  Businesses called ASSET-LED
• How does product orientation affect market changes?

  It may not respond to changes in market structure
• What was Amancio Ortega's understanding about modern women?

  They want fashionable and good quality clothing
• Why is Zara more profitable than its rivals?

  Word of mouth and viral marketing
• What does market orientation involve for a business?

  Responding to customer needs and wants
• What is a potential risk for market-oriented businesses?

  New substitute products may decrease revenues
• What is the impact of Levi's market-oriented approach for Reggae Reggae Sauce?

  Higher sales due to meeting community needs
• What must Levi consider for long-term success with Reggae Reggae Sauce?

  Consistently carrying out market research
• What are the advantages and disadvantages of market orientation for Reggae Reggae Sauce?

  Advantages:

  • Higher sales from meeting customer needs
  • Increased word of mouth marketing

  
  

  Disadvantages:

  • Temporary demand for food products
  • Need for ongoing market research
• What is the difference between context and content in marketing?

  Context includes market situation and competitors
• How can Reggae Reggae Sauce differentiate itself from competitors?

  By offering unique products not available elsewhere
• What should Levi's marketing strategy include for Reggae Reggae Sauce?

  Identifying community-specific tastes and preferences