Posted in Marketing and Strategy Terms, Total Reads: 697
Definition: Market Orientation
A market orientation is the company’s approach towards identifying and meeting the customer’s needs and wants and then tailoring the product accordingly. In contrast to that, product orientation is making the product according to the business viability. Here the focus is what the business is good at making and not according to customer wants and needs. The companies today are moving towards a market orientated approach because of increasing competition, awareness among consumers and threat of being substituted because of a better product.
A market oriented approach may be shown compromising of the above parts: customer orientation, competitor orientation, inter-functional coordination and focus on the long term.
The above diagram shows the same. Customer orientation is to cater to the needs and wants of the customer and then making a product suiting it. In customer orientation, one needs to carry out market research, check the feasibility of making the product and then plunging resources to make the product. In competitor orientation, a company needs to continuously asses its approach, strengths and weakness with respect to its competitors to stay relevant and successful in the market.
There should be sufficient interfunctional coordination, because once the consumer needs and wants are assed, the same needs to be coordinated efficiently to the production and other departments to check the viability of making the product. While doing all this the company should focus on a long term perspective as there can be some losses in the short term. The long term viability of the project must be taken into consideration.