Product Orientation Unit 5 - SLIDE 4

Product orientation A product orientated business will concentrate on the production process and the product rather than what the consumer wants. It may focus on trying to improve efficiency of its production or to produce technologically advanced products. Unit 5 - SLIDE 4

Novelty Value The basic idea or novelty of the product that makes the good sell. E.g. home computers when first introduced were considered a technical wonder – consumers did not request them. Due to the idea of having a computer, plus the lack of competition from competitors (domestic and overseas) – the product sold itself. Unit 5 - SLIDE 4

Why be product-orientated? Firms operating at the cutting edge of innovation (technological advancement) must innovate to survive. E.g. bio-technology, pharmaceuticals or electronics. Although the business may have a final product in mind to try and anticipate demand, the research is pure. I.e. They research to find out what is possible not what people want. Unit 5 - SLIDE 4

Example of a product-orientated product. Concorde is a product-orientated good. Development carried out between the UK and France to see if it was technically possible. Although Concorde achieved supersonic speed as a passenger plane it did not sell. There was no real consumer want for it. Therefore the costs of developing Concorde have never been recovered.. Unit 5 - SLIDE 4

Customer-orientated organisations/ market orientation Continually identifies, reviews and analyses consumers’ needs. They will modify their products or services to respond to any changes in their needs These organisations realise that their profits and/or success depend on meeting the needs of the customer. Unit 5 - SLIDE 4

MARKETING ENSURES THAT THE NEEDS OF THE CUSTOMER ARE CONSIDERED BEFORE PRODUCTION TAKES PLACE Unit 5 - SLIDE 4

The Marketing of Products & Services Marketing applies to both products and services. It applies to industrial goods and services However the main principles apply in ALL cases Look how it refers to Industrial Goods and Services Unit 5 - SLIDE 4

Industrial Goods These are distinguished from consumer goods according to the purpose of which they are bought eg raw materials and machinery In some cases goods can be both industrial and consumer eg cars Unit 5 - SLIDE 4

Marketing of Industrial Goods influences: Product performance and quality eg the technical specifications Link between seller and the buyer is closer (mass advertising not often used) Personal selling more common Unit 5 - SLIDE 4

Services Are distinguished from goods in the following ways: Intangible Sold and consumed at the same time Perishable Quality may vary Unit 5 - SLIDE 4