Market and product orientation | Business Studies Theory | Business & Marketing Resources

Business Studies for Students and Teachers.

The Times 100 offers a range of free information for students and teachers of business studies.

Theory Home | Business Theory | Download Theory | Relevant Content

  Market and product orientation

Market and product orientation


A market orientated company is one that organises its activities, products and services around the wants and needs of its customers. By contrast, a product-orientated firm has its primary focus on its product – and on the skills, knowledge and systems that support that product.
Until the late 20th century many firms were product-orientated and failed to understand the changing needs of their customers in an increasingly competitive marketplace. A major swing towards market-orientation has led to intensified marker research and product ranges carefully designed to fir customer preferences.
However, product orientation can still be important in keeping an emphasis on quality, safety  and investment in new technology.
Successful companies recognise the importance of both approaches. Products must start with the needs and wants of customers. But delivery of a profitable product depends on efficiency and quality in production.
In the real world, market and product orientation are closely intertwined so that companies like Gillette, Coca-Cola and Travis Perkins, will:
  • carry out market research into what consumers want
  • organise product research in line with the results of market research
  • constantly engage in qualitative market research to find out what focus groups of customers think of new ideas
  • test market new products in smaller market areas before launching them onto a wider market
  • evaluate ongoing customer perception of goods and services, in order to make improvements to technologies and product offerings.

Market orientation gets the right product: product orientation get the product right.
\"\"
 
Actions
Using the buttons below you can download this case study, print this page, download or play an audio transcription of this case study, tell a friend and more. Have any feedback? Tell us!

PDF Download PDF
Related Theory
Other revision theory of interst: