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MARKETING APPROACHES

PRODUCT ORIENTATION

It is sometimes assumed that a product orientation approach is similar to a production orientation approach. But it is exactly the opposite. This approach to business concerns its products and continually improving and refining them so that the product can always be superior to that of its competitors. So, as the previous orientation was centred around price, product orientation is centred around quality, which often increases the price.

Premium products fall into this category, but the approach does not always offer what its target audience actually wants or considers the factors that the audience uses to form its purchasing decision. See a previous post on how to launch a science product for more of product marketing.

Quality – and therefore a product orientated organisation – often does not consider external factors, and focuses on manufacturing a high-quality, premium product that is superior within the market it operates and competes within.

Advantages: Focus on quality, innovation, skills development/outsourcing.

Disadvantages: Potential missed market opportunities, obsolescence.

MARKET ORIENTATION

A market orientated organisation looks at the market and its target audience first, before any production or sales activities takes place, to learn what potential customers want from organisations. The product or service offering is therefore created with the customer in mind, resulting in a true customer-first approach.

Market orientation, in marketing strategy terms, commonly revolves around culture, values and other internal behaviours focused on satisfying customer needs that are usually well-researched prior.

Although this clearly has its benefits, it can also come at a cost to organisations as it usually puts organisations on the back foot, always reacting to customer demands rather than predicting or shaping them with innovative products and services. This said, most markets are moving more towards a market-orientated approach as customers have more and more access to information about what they are looking to buy.

Advantages: Customer satisfaction, loyalty, continual investment in research.

Disadvantages: Reactive, not always innovative, market always changing.

WHICH MARKETING ORIENTATION APPROACH BEST REPRESENTS YOUR ORGANISATION?


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