SHOULD A BUSINESS BE MARKET OR PRODUCT ORIENTED? KAT HAZELL

SHOULD A BUSINESS BE MARKET OR PRODUCT-ORIENTED?

The question which any business should crucially ask themselves: should their products or services be market or product oriented. The simple answer is that it is highly dependent on the type of business and its specific goals.

When a business takes a product orientation approach, it focuses on its product or service’s quality and performance. In other words, this solely means that their goals are product innovation and improvements in order to focus on customer satisfaction and customer feedback. Generally, product-oriented companies tend to be technology focused and create new products which will generate a new market demand. For a business which is looking to delight customers with a new product which does not currently exist in the market, product orientation would be the most strategic approach.

However, when deciding to take this approach, market research must be carried out at a high level to ensure there is a clear gap in the market which is yet to be fulfilled and the product is unique enough to innovate.

A great example of a product-oriented business would be apple. Apple focuses on its quality and relies on innovation to enter new markets and create demand. This approach allows them to address the unarticulated customer wants and needs with attractive and innovative electronics that offer a competitive advantage over similar products from rivals.

On the other hand, market orientation prioritizes identifying consumers’ needs and delivering products and services to satisfy them. There is a clear focus on pleasing existing customers and promoting products to attract new customers. A dynamic business which is able to recognise that customer demands are constantly changing would be well suited for this approach as they are able to refine existing products in order to satisfy customers.

In this case, businesses which carry out secondary research would benefit from this approach as they are able to study market trends over the years and plan on how to adapt products or services to match the constant changes and demands in a market.

A good example of a company that uses this approach is Coca Cola. Coca Cola has produced numerous distinctive marketing campaigns that link the soft drink to experience. Customers no longer drink Coca Cola simply for the taste, but because of what it means to drink it. We can also consider the brand’s response to shifts in consumer health concerns and the development of sugar-free products like Coke Zero that catered to this market.

Overall, a business must take into account whether they are looking to release a new product or service into the market, or innovate and improve an existing product or service.