Today…  Product Orientation  Market Orientation  Market Share  Market Growth

Product Orientation Production Capabilities Manufacture Product Aggressive Sales Effort Customers Production Orientation is when a business focuses on the production process and seeks to make goods which are viewed as superior

British Motorcycle Industry  Britain ruled the world of bikes in 30s and 40s.  BSA, Norton & Triumph neglected consumer tastes as sleeker models arrived  Suzuki, Kawasaki and Honda catered for this. Look at what happened!

Market Orientation Customer Needs Potential Market Opportunities Marketing Products & Services Customers Market Orientation starts with the consumer and looks at consumer needs. It is customer orientated.

Sony Walkman  Designed due to people’s needs for a small tape recorder  Workers used headphones to listen to music and the Walkman was born

Henry Ford and Model T  The World’s First Assembly Line churned out the Model T Ford.  Henry Ford ‘boasted’ that “it was available in any colour… as long as it’s black!” Ford was customer orientated because the savings made by the assembly line were passed down to the customer by offering cheap automobiles

Advantages of Market Orientated approach  Respond quicker to changes in market due to market research  Stronger position to meet new competitors  Can anticipate market changes  More chance of new product success

Market Share Market Share is the percentage of customers who buy/use a company’s goods/services

Market Growth  Increasing market share means a business increases sales at the expense of competitors.  However, firms can also increase sales if the whole market grows.  Market growth occurs when the number of people buying/using the good/service increases