Market and product orientation

Product-Orientation Such businesses are described as being inward-looking, since they focus on selling their products, instead of making product to suit the needs and wants of their consumers. This often applies to innovative products, such as smartphone, television, automobile etc.. A good product can create its own market, since customers are enticed to buy creative and innovative products

Ember – Temperature control mug

The Tesla Model 3 is the first vehicle built on Tesla’s third-generation platform. It aims to reduce the entry price for electric vehicles while not making any compromise on range and performance. The Model 3 starts at $35,000.

What are the innovations of Tesla? Do you think Model 3 will be successful? (hit-and-miss) What do you think about the quality and the price of Tesla Model 3?

There are advantages and disadvantages to this approach Main advantages Better quality Higher price can be charged Disadvantage High failure rate ( hit-and-miss - producers are not really sure if the products will sell)

Market Orientation Market orientation is a marketing approach used by businesses that are outward looking.. Market orientation focuses on the customer in order to identify, design, develop and supply products that meet their needs and wants.

IKEA – Play area for children

IKEA Parents supervised play area for children

There are advantages and disadvantages to this approach Greater flexibility in response to market changes Less risk of a failing product.   Disadvantages: Market research can be quite expensive, and this approach does not always guarantee success.

the nature of the market, Whether a business adopts a product orientated or market orientated approach depends on several factors Their success will dependent upon the nature of the market, the culture of their organisation towards customers and barriers to entry in the market.

Case study – 4.1.1