Market Research

• Product orientation


  The business develops based on what it's good at
• Product orientation


  • Apple
• Advantages of product orientation

  • Increased economies of scale = lower unit costs
  • Can focus on what it does best
  • Incentive to invest in production = increased efficiency = increased quality = competitive advantage
• Market orientation


  The business develops things based on customer needs and wants
• Market orientation


  • Ferrari
• Advantages of market orientation

  • If needs and wants are met = success = increased customer satisfaction = achieve product differentiation
• Market research

  The action of gathering information about the needs and wants of consumers