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Market Orientation: Types, Advantages & More

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Market Orientation

Market Orientation is a marketing concept wherein the organisation focuses on identifying the consumer's needs and preferences and, accordingly, designs and sells products and services based on those needs and preferences with the objective of earning profits.

Basically, this strategy suggests that firms shall observe the requirements and needs of the customer, and based on those demands, they shall design, market and sell their products and services.

What is Market Orientation?

Market orientation is a business where the processes of product development and creation are focused on satisfying the needs of consumers. It is a type of marketing orientation technique that designs products with qualities that consumers need, which is completely different from the conventional marketing approach.

Marketing orientation is the business approach that states all the processes within that business. It outlines how the company’s core offering is presented to its consumers and how the marketing teams are empowered.

Although the marketing department has a say in the marketing strategies adopted, the marketing orientation is determined by the priorities of upper-level management. 

The different types of marketing orientation are:

There are five important categories which are given below:-

  • Production Orientation

  • Product Orientation

  • Sales Orientation

  • Societal Orientation

  • Market Orientation

1) Production Orientation

This aspect of marketing measured the business environment in the 1900s, where organizations concentrated stiffly on the huge production of products. The main attention was on organizing the production process and concentrating on enhancing edge, with little focus on consumers or anything else.

The belief was that the client's focus is on the price. Due to this reason, this approach concentrated on boosting efficiency while reducing production costs to meet the client’s price requirements. This business strategy devoted its resources to its products, and its marketing point was the price.

2) Product Orientation

In the product orientation method, the main focus of an organization is the quality of the product. The business focuses its concentration on continuously enhancing and clarifying its products. Considering that as long as products are of high quality, consumers will buy and use them.

This aspect of marketing, which was renowned in earlier times, primarily concentrated on the product that a company planned to introduce in the request. In the associations which are oriented toward the quantity of the products, the price was the central point of focus. 

As all the measures were leading towards the quality of a product( hence the production of premium products), this aspect didn’t concentrate on the conditions of its targeted receptors.

3) Sales Orientation

A sales-oriented business sets its soul and efforts into selling a product which formerly exists in the market. In this way, this concept gives priority to the clients but not in a manner that puts pressure on their requirements and desires. Rather, the priority is on encouraging its products with the only purpose of increasing sales.

This concept can be effective for a company which is participating for clients in a logged market. It can be an important instrument for a company that carries invaluable stock and wants to raise them to the market. The extra effort the marketing group or team puts into exchanging a product can affect a client’s purchase decision.

Due to the increase in environmental awareness, a new conception of “ Societal Orientation ” has appeared. Organizations are creating marketing strategies and production processes that identify the impact on the environment, within and without.

Businesses which execute this concept, slope towards the social perspective in their vast marketing and research schemes. An example is the pharmaceutical industry and life-science fields, which have come under investigation for their immoral marketing schemes.

4) Societal Orientation

Due to the increase in environmental awareness, a new conception of “ Societal Orientation ” has appeared. Organizations are creating marketing strategies and production processes that identify the impact on the environment, within and without.

Businesses which execute this concept, slope towards the social perspective in their vast marketing and research schemes. An example is a pharmaceutical industry and life-science fields, which have come under investigation for their immoral marketing schemes.

5) Market Orientation

A market-oriented business focuses on anticipating the target audience for finding their needs and creating a product to match those requirements. This business aspect focuses on everything about the client and what the client wants rather than on marketing the product. request orientation rotates around client satisfaction and responds to the demands of the client.

Marketing-oriented organizations direct their operations from a consumer’s point of view and concentrate on the current and coming requirements of the customers. The whole firm appreciates the significance of the client and recognizes that the business would not exist without them.

How does Market Orientation Work?

Market orientation is more of an approach to product design rather than the promotion of it. This means that the priority is to analyze the target audience and their needs instead of undertaking any marketing activity. The needs are kept in mind while developing and upgrading the new product.

A market-oriented firm uses a customer-centred approach, which means that the most concerns, immediate requirements, and personal preferences of the consumer base must be researched. 

The strategy must be focused on the values, culture, and other behavioural traits of the consumer needs. Thus, the organisation's development efforts are focused on characteristics in demand.

Advantages of a Market-Oriented Strategy

  • Increase in the business revenue

  • Market share is increasing.

  • Customers remain associated with the firm.

  • It helps in product innovation, as updated products attract new customers.

  • It brings a good well for the company as the customer feels happy with its products and services.

Disadvantages of a Market-Oriented Strategy

  • As customer needs keep changing, the company rapidly changes its products and services.

  • The company needs a huge budget to be spent on research work.

  • In dynamic market conditions, it is difficult to predict what the future could be concerning customer preferences, and thus, it requires lots of planning.

Examples of Market-Oriented Companies

1) Amazon

Amazon consistently changes the virtual marketplace and adds features to address the concerns expressed by consumers. One of the features is the rating and review system introduced by the online retailer to the growth of credibility.

The company launched Amazon Prime to identify issues with delivery charges. In addition, it created the Amazon Locker, which is a self-pickup service for customers who may not be present at the shipping address indicated at the time of delivery.

2) Coca- Cola

Coca-Cola performs extensive research to come up with new flavours. For customers worried about sugar content, the company launched the zero-calorie Diet Coke and undertook several acquisitions of “healthy” brands.

Summary

Market-oriented companies strive the most to identify and satisfy the needs of their customers. Market-oriented companies prioritize the needs of their target market to inform their developments, decisions, and offerings.

Understanding what it means to be market oriented is essential for business those tactics to maximize a customer-centric approach to markets. In this article, you will get know what ismarket orientation, explain the types, advantages.

FAQ's:

What are the different stages of market orientation?

There are 4 main stages that make up the marketing orientation process which are Initiation, Reconstitution, Institutionalization and lastly Maintenance.

What is product orientation?

A product orientation is how a business organises its marketing efforts around its products. 

What are the 3 C's of market orientation?

There are 3 Cs: Company, Customers and Competitors in market orientation. 

November 17

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Govind Dadhich, Founder

This was a fun article to read, I hope you enjoyed it.

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