However, it should be noted that neither of these companies rely solely on either product or marketing orientations: for example, Innocent has received Design Council awards for their packaging, and they are able to tap into a preference for ethically-sourced products amongst their target demographic group. More quantities can be made at a lower price, which will increase the number produced. Market Orientation Companies that adhere to a market orientation operate very differently than companies with a production orientation. Companies with a market orientation focus primarily on meeting the wants and needs of their customer base. Stern School of Business Guo, L.
Second, they believe they can sell any of their products so long as quality is sufficiently high. Production Orientation - YouTube Product Orientation vs Marketing Orientation - YouTube Strategic Analysis Product Orientation - YouTube What Is A Product Orientation? Although it is uncommon for a company that ignores the wants of its customer base to succeed, the McDonald's in Pushkin Square serves as an example of a company that successfully followed a production orientation. With the product-oriented method, the small business is not worried about what the customer wants to buy or what the market says will sell in a certain economy. Brought to you by Product Orientation Disadvantages A great product doesn't automatically translate into profits. Your consumer base is likely made up of two groups of people, one that is persuaded by consumer-oriented messages and another that is moved by product-oriented messages. Marketing Concepts Marketing concepts are 4 in total. The difference between consumer-oriented and product-oriented marketing lies in the approach taken to communicate with customers.
The difference between product orientation and marketing orientation. Production Orientation Elements In contrast to the product-oriented definition, production orientation is an approach that focuses on the manufacturing and production process. There may be instances, however, where you can't use both kinds of messaging. The template is used to create two versions of each ad, one with consumer-oriented messaging and one with product-oriented messaging. Outsourcing A final advantage is that a product-oriented business is easier to adapt for outsourcing its product. This type of template can be used in future selection processes, so that the university is able to better identify those students who are most likely to drop out or attain poor grades. Economies of scale involve factors that can reduce the cost of producing an item as the number of items produced increases.
Product Orientation Elements The product-oriented definition is malleable, but in general, it means your business is more concerned with meeting the wants and needs of your customers than with making as many products as possible in an inexpensive and efficient way. The marketing message is more technical and detailed. Determined to do the job to one's satisfaction. Later, when competition moves into the marketplace, their production orientation can cause them to lose customers to competitors that are market and sales focused. The university is in an almost unique position to benefit from a marketing oriented position, as the ultimate product provided by the university is to training in the manipulation of knowledge in the form of research.
Product oriented businesses enable the mass production of the product with reduced rates. The product proved successful and the technology was then used by Sony to create additional music listening devices. Product orientation is usually the criteria preferred by a number of small businesses. Clubs and associations can provide an all-round positive experience, and this provision can also be used as a source of information. A product-oriented business focuses its efforts on products as its strength. Plus, if you have an established customer base that trusts your work, you may be able to sell the product with relatively little marketing, thus reducing marketing costs. A famous example of extreme production orientation is Henry Ford, who, at the time when Ford Motor Company produced only Model-T cars, famously declared that his customers could have any color Model-T they wanted as long as it was black.
Some businesses favor an engineering or selling orientation. Often companies which fall into this product concentrate on high quality or unique attributes, such as the type of raw materials used or the level of innovative research and development involved. Instead, the sole focus is on creating a perfect product. Innocent have created a niche market in the soft drinks industry by providing fruit drinks which contains high quality, ethically sourced fruit, and does not contain sugars or additives Moules, 2009; Innocent Website, 2012 The high quality of the product, along with the ethical supply chain mean that Innocent are able to charge a premium price for their product Becker-Olsen et al, 2006. Another example is of Hero Motocorp. These smaller businesses, regardless of the prospect and perspective of market, can invest wholly into the product quality. Product Orientation and Production Orientation Differences The major difference between these two concepts is that a product focus reaches outward to consumers to assess and meet their wants and needs, whereas a production focus is geared inward to manufacturing the best product at the cheapest price regardless of customer wants and needs.
She has written editorial content as well as marketing collateral for a number of corporations and small businesses like Comcast Cable and Come Recommended. So, Production Orientation is the general approach of any business that is primarily concerned with manufacturing and production processes. Sales calls and other marketing ploys are not deemed as important as the overall quality of the product. This approach is effective only where the potential of the product in the market is significant or business operates in very high growth markets or where the potential for economies of scale is significant. As production-oriented companies, both organizations focus on their own internal efficiency and the quality of their products. Apple reduces their target demographic by retaining a high price tag for their products.
In addition, Apple gained a reputation for excellent customer service in an industry where very few of its customers understood how the product worked, and Apple tapped into this lack of knowledge, providing an additional service which was highly valued by their customers Rust et al, 2000. The message that produces the best results is the test winner. We will learn how a production-oriented marketing strategy differs from a market-oriented marketing strategy and the conditions under which a production-oriented marketing strategy can be successful. Therefore, although these companies have different orientations, this does not mean that other aspects are ignored. It is also possible for the university to provide external benefits for students. Hence, newbie associations can coalesce with these merchant business tycoons if these merchant business tycoons produce such offers.
One-off products such as pieces of art or craft would fall into this orientation. A company that follows a production orientation chooses to ignore their customer's needs and focus only on efficiently building a quality product. Benefits to the organisation The primary benefit to the organisation is the information it provides on customers and their preferences which can be turned into profitable knowledge. Another production orientation example is the insurance business. There's no law that says you have to choose a product over the market or vice versa. This philosophy discounts the wants and needs of the customers.
The main advantage of a production-oriented approach is that you are constantly revising and improving your product to be the best it can be at the lowest price possible. A production-oriented business is mainly concerned and focused on making or producing as many units as possible. It has to be first-rate. Production-orientated companies include Ford Motor Company and McDonald's. If you're already experienced in the industry, for example, you may have an excellent idea of what products will sell. Two other types of strategies include market orientation and sales orientation.