When it comes to running a business, there are two main ways to orient your company: product orientation and market orientation. Each has its own advantages and disadvantages, and the best approach for your business will vary depending on your industry and what you’re trying to achieve.
What is Product Orientation?
Product orientation is a business philosophy that focuses on the needs and wants of the customer. The goal is to produce products that meet the specific needs of the customer, rather than trying to produce products that are broadly appealing. This philosophy is based on the idea that customers are more likely to be loyal to a company that produces products that they need or want, rather than products that are just generally appealing.
Companies that follow a product orientation philosophy typically put a great deal of emphasis on research and development, in order to ensure that their products meet the specific needs of their target market. Additionally, they often focus heavily on marketing, in order to ensure that potential customers are aware of the products that are available. While product orientation has its benefits, it can also be expensive and time consuming for companies to implement.
What is Market Orientation?
Market orientation is a business philosophy that focuses on the needs and wants of the customer. The basic tenets of market orientation include customer focus, customer satisfaction, and continual improvement. This philosophy differ from the traditional selling approach, which often takes a more product-centric view.
Instead, market orientation assesses customer needs and then designs products or services to meet those needs. In order to be successful, businesses must have a deep understanding of their target market and be able to anticipate future trends. Additionally, they must be willing to make ongoing changes to their offerings in order to stay ahead of the competition. By taking a customer centric approach, businesses can increase their chances of success in today’s ever changing marketplace.
Difference between Product Orientation and Market Orientation
There are two different approaches that companies can take when it comes to marketing their products: product orientation and market orientation. Product orientation is focused on the development and improvement of the product itself, without much consideration for the customer. In contrast, market orientation takes into account the needs and wants of the customer base when making decisions about product development and marketing strategy.
Market orientation is generally more successful in creating products that are popular with consumers. Additionally, market orientation helps to build relationships with customers, as companies are able to gather feedback and use it to improve their products and services. Ultimately, market orientation is a more customer-centric approach that is more likely to lead to success in the long run.
As you can see, there is a big difference between product orientation and market orientation. Which one do you think is more effective for your business? It’s important to remember that market orientation should be the goal of all businesses; it takes into account what the customer wants and how they behave. Product orientation may work in the short term, but it will eventually fail if you don’t change with the times.