- Created by: parker123
- Created on: 16-11-18 11:17
PRODUCT AND MARKET ORIENTATION
- PRODUCT ORIENTATION- buinesses focuses on production process & product itself, most efoort into developing & making product which believes consumers will buy.
- e.g. in past TV & radios and now the machine-tool industry (produces machines).
- due to competition firms being forced to take into account consumer needs.
- these businesses put emphasis on making a technically sound product, producing it & then selling it.
- MARKET ORIENTATION- businesses that continually identifies, reviews & analyses consumer needs, its led by market, they are more likely to be engaged in effective marketing.
- cinsumers are central to firms decision making. E.g ford Ts, iphone 6.
- a market orientated business has advantages over a product orientated buiness:
- can respond more quickly to changes in the market, beacuse use market information.
- strong position to challenge competitiors, more able to anticipate market changes.
- more confident in launching new product as will be success.
- affect of a market orientated business on the business itself:
- consult comsumer continuously ( market research), design product according to consumer, distribut product to buying habits & delivery requirments.
- set price where consumers are preparing to pay.
- the business must produce the right product at right price in right place, & let consumer know that its available - MARKETING MIX.
- whether business placees a grewater emphasis on the product or the market will depend on:
- The Nature of the Product-- where frim operates in industry at edge of new innovation.
- Policy decision- businesses have certain objectives, technical quality, safety, production.
- the views of those in control- managing director, place emphasis on cash flow & marketing director may be concerned with market research.
- nature and size of the market- if production costs very high, then market orientated.
- degree of competition- lack of, business puts more time into research, lots of then time into marketing.
- involves gathering, presenting, analysing info about marketing and cosumption of products.
- money spent on market research to reduce risk of failure.
- Identifiy & anticipate customer needs & wants-- e.g. colour, style, economy. data market researchers gather needs to be qualitative.
- quantify the likey demand for a product-- important to know how much of product a business might expect to sell, this will in quantitative. helps determine whether product in commerically viable. so a business will know how much to produce if any.
- provide an insight into consumer behaviour-- e.g. when booking holidays, no. holidays per year, methods used to book them. data is qualitive helps idientify opportunities.