Marketing can be characterized as the organization fulfilling client and market needs by creating value through communicating and working with client. Different businesses have different types of marketing strategies. Business can develop new products considering either a market orientated or a product orientated approach as it attracts customers by satisfying their needs and demands rather than trying to push buyers with sales. In today’s competitive world it is vital for a business to carry out a thorough market research before implementing any strategy. This article will revolve around two strategies – market and product orientation along with its importance and leading factors that must be overlooked before making any decision.
A market orientated approach means that a business responds to what clients need. The choices are taken based around data about the clients’ needs and wants, instead of what the business believes is appropriate for the customer. An organization which follows a marketing orientation has a predominantly “sense and respond” philosophy, whereby the company looks to provide the products which the customers wants to purchase, rather than looking for customers to purchase the products they wish to sell. Their goal is to understand their customers better than their competitors. Market orientation has two main factors, which are to focus on their customers and competitors. Customer focusing business can gain huge profits by paying attention to consumer needs. Satisfying customer should be the primary task of any business. While a competitor focused firm can easily identify their strengths and weaknesses.
Successful businesses like Coke, McDonalds, Ritz Carlton are market orientated companies. They have achieved fame by constantly monitoring their markets and adjusting their marketing mix (Product, Price, Promotion and Place) per the market. Using all the factors to be the best combination and use to complete the business purpose and mission can be considered an important strategy. They understand to use both rational and emotional aspects to influence a purchase decision. A famous example is McDonalds, as their vision is to be the world’s best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that they make every customer in every restaurant smile. McDonalds provides additional services such as a play place for the children, birthday space for kids, relative affordability, convenience (drive-thru & home delivery), bathroom, etc. This results in customers being loyal to McDonalds.
Using the market orientated style might not always be successful. Coloroll was a business which was in home textiles and soft furnishings but its attempt to enter the DIY burglar alarm market was a failure. A company with high production costs are more likely to be market orientated as only then they can meet consumers needs and avoid losses.
A product orientated approach means that businesses creates items in view of what it is great at making or doing, as opposed to what a customer needs. The business will put more effort into developing and producing the products which they believe will sell well. The focus for the business is to reduce costs through mass production. A business orientated around production believes that the “economies of scale” generated by mass production will reduce costs and maximize profits. Previously, there used to be organizations producing stuff that would have been called generally product orientated like radios and TVs. There were a couple organizations that contended with each other and the product used to sell itself. A myriad amount of businesses these days are product orientated orientated however because of expanded competition, firms are being compelled to consider client’s needs.
A production orientation should lead to the highest possible product quality and benefits. By investing in product research, you can push the capabilities of technology and development in your industry. A product oriented business allows for a technology to be developed that can consider an innovative approach. An example of this was Sony’s production of the Walkman. This item was created as a product to be sold and not in view of what clients needed then. The gadget proved to be successful and that change was utilized by Sony to make more music listening devices. Economies of scale can develop more easily for this business technique. With product-oriented businesses, the emphasis is on a specific item. Since the focus is directed, this enables the company to create this product efficiently and in mass quantities. More quantities can be made at a lower price, which will expand the number created.
In a product orientated approach, we might be able develop a product with superior features, if the clients don’t want it, it is of little value. In innovative markets with thin life cycles, organization that cover themselves in product development may miss the window of chance to align with customer demand. A high-quality product with less relation to the customer needs will not be worth it.
Lastly, the final goals of both marketing methods are distinct. In a market orientation, the business will gain profit by satisfying the needs of the clients. They will make products that the customers really want to purchase. However, a product orientated company the business increases profits by selling products and reducing other costs. Both approaches have their boundaries and many business have failed trying to meet the needs of their customers, similarly market orientated business might fail to get the right product for their clients. Whether a business places a greater emphasis on the product or on the market will depend on several factors.