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Questions and Answers
What is a characteristic of product-oriented businesses?
What is a characteristic of product-oriented businesses?
- They adapt quickly to changing market demands.
- They prioritize consumer feedback over production capabilities.
- They rely heavily on market research to guide product development.
- They focus primarily on the product or production process. (correct)
In which scenario is product orientation considered suitable?
In which scenario is product orientation considered suitable?
- When disposable income levels are high among consumers.
- When there is intense competition in the market.
- When the market lacks consumer knowledge and competition. (correct)
- When consumer preferences are well-researched and understood.
Which of the following is NOT an example of product orientation?
Which of the following is NOT an example of product orientation?
- A business creating products based solely on production capacity.
- A company producing dental braces without customer input.
- A manufacturer focused on producing what's feasible without market demand.
- An electronics firm innovating based on customer suggestions. (correct)
What is a potential drawback of product orientation?
What is a potential drawback of product orientation?
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How does market orientation differ from product orientation?
How does market orientation differ from product orientation?
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Study Notes
Meeting Customer Needs: Market Positioning
- Market Segmentation: Divides a market into distinct groups of buyers based on needs, preferences, or characteristics to tailor marketing strategies effectively.
- Online Retailing: Selling goods or services via the internet, allowing businesses to reach a wider audience.
- Bias in Market Research: Systematic errors that can affect research outcomes, shaping results based on preconceived opinions or influences.
Product and Market Orientation
- Product Orientation: Focus on production capabilities and product features; suitable when there’s low competition and limited consumer knowledge (e.g., specialized products like dental braces).
- Market Orientation: Centers on identifying and fulfilling customer needs and wants to ensure profitability; requires active consumer engagement.
- Apple Example: Known for innovation, but product development may not directly align with current consumer desires since they often explore unknown technological possibilities.
- Gillette Example: Develops razors based on technological capabilities rather than specific consumer preferences.
Market Mapping
- Definition: A visual method of identifying brand positioning relative to market variables, helping to detect market gaps.
- Axes Variables: Market maps are categorized along axes like quality (high to low) and pricing (premium to budget), allowing visualization of brand distribution.
- Example Activity: Students can create a market map plotting clothing brands (e.g., Primark, Dior) based on quality and pricing, identifying potential market gaps.
Uses of Market Mapping
- Identifying Market Gaps: Helps businesses spot opportunities in a saturated market by locating areas with unmet consumer needs.
- Start-Up Strategy: Guides new businesses in choosing products and services aligned with market demand instead of solely relying on existing capabilities.
- Repositioning: Aids established brands in adjusting their market image to attract new demographics or redefine their marketplace presence (e.g., The North Face targeting a younger audience).
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