Product & Market orientation

• What is a product-oriented approach in marketing?

  Focus on what they're good at
• Product-oriented businesses focus on their products, processes, and production systems
• Product-oriented businesses prioritize design, performance, efficiency, and quality.
• What is the primary goal of product-oriented businesses in marketing?

  Create attractive products
• Product-oriented businesses hope their products will be acceptable and attractive to customers
• What is the focus of a market-oriented approach in marketing?

  Customer needs and wants
• Market-oriented businesses adapt their products to meet changing customer needs.
• Market-oriented businesses inform their marketing and production decisions based on customer feedback
• What are the advantages of a product-oriented approach?

  Efficiency and economies of scale
• Steps to achieve economies of scale in a product-oriented business

  1️⃣ Focus on efficiency

  2️⃣ Increase production scale

  3️⃣ Lower unit costs
• Lower unit costs in a product-oriented business can help with pricing and marketing decisions
• Investing in automation can improve production efficiency in product-oriented businesses.
• What is a competitive advantage for a product-oriented business?

  Reliability and quality
• A danger for product-oriented businesses is losing focus on changing customer needs
• Market orientation starts with identifying customer needs and wants.
• What is the primary goal of a market-oriented business?

  Meet customer needs
• Meeting customer needs in a market-oriented business leads to increased customer loyalty
• Differentiation is achieved in market orientation by focusing on customer needs.
• What type of innovation is common in market-oriented businesses?

  Meeting customer needs
• Market orientation aims to create a winning combination by focusing on customer needs and continuous innovation
• The distinction between product and market orientation is about which approach is inherently better.

  False
• What is the key difference between product and market orientation?

  Focus on production vs. customers
• Product orientation focuses on what businesses are good at, while market orientation focuses on customer needs
• Match the orientation with its primary focus:

  Product orientation ↔️ Production efficiency

  Market orientation ↔️ Customer needs

  Competitive advantage ↔️ Reliability and quality

  Customer loyalty ↔️ Meeting needs