Business – 3.1 The nature of marketing – Markets | e-Consult
3.1 The nature of marketing – Markets (1 questions)
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Answer:
- Focus of the business: Product orientation concentrates on the product itself and its features, whereas customer orientation centres on identifying and satisfying customer needs and wants.
- Decision‑making basis: In a product‑oriented firm, decisions are driven by internal capabilities and technological innovation; in a market‑oriented firm, decisions are guided by market research and consumer feedback.
- Goal of the strategy: The aim of product orientation is to achieve technical excellence and cost efficiency; the aim of customer orientation is to create value for the customer, leading to loyalty and long‑term profitability.
- Risk profile: Product‑oriented firms risk producing goods that the market does not want; customer‑oriented firms risk over‑customising and diluting core competencies.