What is market orientation? Definition and stages

It is argued by Laukkanen et al., (2016), that product-oriented company makes a profit by targeting a particular segment of the market. On the other hand, the market-oriented company may target a large group of consumers and effectively enhance its sale by almost 20 % compared to the product-oriented company. It is stated by the Najafi-Tavani (2016), a product-oriented company may enhance its sale because the quality of the product is one of the prime factors on which the sale depends. Long-Term creation of shareholder value is the archetypical concept of making a strategy for long-term value creation for shareholders than giving priority to short term benefits. It warrants striving for long term market share than meeting short-run targets; and greater emphasis on marker performance than internal efficiencies (Hooley, Piercy and Nicoulaud, 2008).

Production-oriented companies focus on the production process and aim to manufacture goods as cheaply and quickly as possible. Business orientation refers to how a company or organisation approaches its strategies for success. As a business, being successful means outlining a strategy and following it to achieve your goals.

An examination of the role for Business Orientation in an uncertain business environment

This enables companies to adapt to different markets and enhance competitiveness. Marketing orientation is the business approach that dictates all the processes within that organization. It outlines how the company’s core offering is presented to its users and how the marketing teams are empowered. If they have a product that is targeted to teenagers, they need to market where teenagers will see their marketing efforts.

You can’t put customers’ concerns first until you know exactly what they are. Increasing customer retention rates by just 5% can boost your company’s profits by 25% to 95%. Since launching #OptOutside, REI has seen membership and revenue continue to steadily climb. Not a bad return on an idea that most businesses would consider crazy.

Examples of a Sales-Oriented Business

Add to that the emerging trends and the changing demands and behavior of consumers, all of which make it hard for a brand to stay afloat—more so with limited resources. Learn about brand orientation and how it can propel your business forward. Product-oriented businesses continue to innovate to produce the best products. Indeed, even if the product is unique, it may not generate a unique selling proposition because competitors offer similar products. Businesses tend to develop new products based on either a marketing orientated approach or a product orientated approach. Decide at a broad level what benefits your customer base expects from your business in return for their loyalty.

• While many people are under the incorrect assumption that to do well in support you just have to be kind, there are tons of essential skills to being an excellent support team member.
• Market orientation is an approach to business that prioritizes identifying the needs and desires of consumers and creating products and services that satisfy them.
• Typically, sales teams will use outbound sales tactics to promote products and drive revenue.
• Businesses tend to develop new products based on either a marketing orientated approach or a product orientated approach.

Most of the literature on business process orientation has been in the popular press and lacks a research or empirical focus. According to each model’s proponent, the “building” of this model requires a new approach and a new way of thinking about the organization which will result in dramatic business performance improvements. This “new way of thinking” or “viewing” your organization has been generally business orientation meaning described as business process orientation. When companies are marketing-oriented, they put the needs and wants of their customers first. Marketing-oriented companies commit to making customers happy – they exceed expectations, are creative, and focus on customer satisfaction. Once they understand what current and future customers want, marketing-oriented companies meet and exceed those desires.

Advantages of a Market-Oriented Strategy

However, other orientation can be of significant importance depending upon various factors such as industry, market and offerings. A crucial aspect of marketing orientation, customer orientation is defined as the quintessential approach through which the organisation is able to identify the needs of the customer and satiate them. It helps to ascertain than corporate objectives are directed towards achieving customer satisfaction. The regular assessment of customer satisfaction keeps the customers in focus and helps in strengthening the relationship with them. This way the organization understands the different customer groups and makes it easier to adapt its products accordingly (Hooley, Piercy and Nicoulaud, 2008). This results in retaining the customers as well as sustain their sales and profitability by continuously creating value for them.

Through their products, they seek to educate consumers on how to satisfy their needs rather than the other way around. Monika wrote content about discovering innovative solutions in business, digital marketing, and ecommerce. She used the insights in her writing to help small and medium brands take their businesses to new heights. You must be able to decide which outcome is the best course of action after considering all the options.

Examples of Market-Oriented Companies

Additionally, Dell is an active proponent of furthering the potential of its employees by funding STEM initiatives that they can join. This is where brand orientation comes in handy when tailoring your brand management efforts. It keeps you on track by ensuring that you stay true to who you are, maintain sincerity in every communication effort, and align every brand action with what your audience is seeking. Done right, it effectively creates positive associations with your business.

When every step of your business is centered on their needs, your customers will feel it. 70 percent of customers expect companies to collaborate on their behalf. Don’t make customers feel like a burden (and definitely don’t charge them a fee to interact with a real human).

The 4 stages to market orientation

Market orientation is a business approach wherein 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 want, which is completely different from the conventional marketing approach. Market orientation refers to the way in which a business goes about developing and promoting goods that meet the demands of its customers. A marketing-oriented company is one that is focused on actively discovering what its consumers want and then creating items suited to those needs.

Then break it down into deliverables at different levels of the organization. Next, come up with actionable ways to deliver what you promised to the consumer by asking yourself these essential questions. If you’re in a SaaS business, the sales team might push the support for upselling to clients who don’t need the solutions. But if all teams know where the company is heading and believe in its values, they align their goals around the company’s objective. Patagonia is an outdoor apparel company that takes environmental actions to lower its industry’s impact on nature. The commitment to green initiatives pulls in customers who care about sustainability issues and are willing to pay for more expensive, quality products that last a long time.

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