A Comparative Analysis of Marketing and Product Orientations

This essay delves into the fundamental concepts of marketing orientation and product orientation, crucial strategies for businesses operating internationally. It begins by defining and comparing these two orientations, highlighting the shift from product-focused strategies to customer-centric approaches. The paper explores the advantages and disadvantages of each orientation, emphasizing the importance of understanding customer needs and market dynamics. Furthermore, the essay examines the Ansoff matrix, a strategic tool used to identify product and market opportunities, discussing its components like market penetration, market development, product development, and diversification. The analysis includes real-world examples, such as Coca-Cola and Apple, to illustrate the application of marketing orientation in practice. The essay also acknowledges the challenges associated with marketing orientation, such as the risks of market misinterpretation and the need for continuous adaptation. Overall, the essay provides a comprehensive overview of marketing and product orientations, offering valuable insights for students studying business and marketing.

Running head: Fundamental of marketing
Fundamental of marketing
2018

Fundamental of marketing
Table of Contents
Introduction.................................................................................................................................................3
Marketing orientation versus product orientation........................................................................................3
The positive and negative aspects of marketing orientation........................................................................4
The positive and negative aspects of product orientation............................................................................6
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
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Introduction
The primary motive of this paper is to highlight and evaluate the role and significant of
marketing orientation and product orientation. The marketing orientation and product orientation
are important concepts that are being used by the companies while implementing the business
functions internationally. A comparison between product orientation and marketing orientation
has been discussed in this paper. Ansoff matrix is used by the organizations to identify best
product and market internationally.
Marketing orientation versus product orientation
The marketing orientation may be defined as a trade viewpoint where the focus is on determining
and analyzing needs, requirements and wants and meeting them. When an association follows
market orientation strategy, it focuses on selling and creating goods and services that fulfill the
needs, and demands of the customers in order to maximize profits and revenue (Hollensen,
2010). The successful and effective market oriented firm discovers and meets the requirements,
needs and desires of the key target audience through its marketing mix. It has been studied that
market orientation works in the averse direction to the past marketing approaches and product
orientation where the focus is on the establishing selling points for accessible goods. It is seen
that market orientation is more of a culture and value rather than an individual procedure. It is
the values, mindsets, rules, norms, actions and behavior of organizations, together with structure,
systems, process and control of the company. Marketing oriented companies explain their
activities and actions as service action that aim of satisfy the needs and requirements of the
customers (Slater, Mohr and Sengupta, 2010).
A firm that applies the market orientation strategy reacts to what customers want. The decisions
that taken by the companies are based on the data and facts related to consumer needs and
requirements. It has been investigated that majority of organization are market oriented. On the
other hand, product orientation may be explained as the orientation of the organization’s sole
focus on products alone. The product orientation firm put ample of efforts on manufacturing
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quality and effective products and setting them at the right and suitable price so that customer
differentiates the organization’s products and buy it. The basic methods of product orientation
include product development, product focus and product research (Mbaskool, 2018).
It has been found that product oriented firm focuses more on its products than the market, and a
marketing oriented approach focuses more on the market. In the business, the organization may
develop and improve new products and services based on either the marketing oriented or
product oriented approach. In product orientation, management focuses on building and
improving high quality products and services that could be sold at appropriate price. From the
starting of the industrial revolution until the 1950s, organizations are monitored on increasing
and enhancing economies of scale and reducing production costs. It is examined that marketing
oriented firm is one that formulates its actions, activities, services and products across the needs,
requirements and wants of its key target audience. By contrast, a product oriented company
focuses on its products, knowledge, systems and skills that support that product and service. It is
noted that marketing orientation focuses on the market testing, customer focus and market
research whereas product orientation approach focuses on the product testing, product focus and
product research. There is no separate and unique functional department in marketing oriented
approach. On the other hand, product oriented companies do not have a innovative marketing
manager (Morgan, Vorhies and Mason, 2009).
In marketing oriented approach, the firm is frequently listening and handling to the workplace to
see what consumers most effective and dynamic needs are and how these requirements and needs
are changing. In a product oriented approach, the firm focuses on making as various products as
possible at the suitable cost possible. The organizations that sell in high volume constantly
follow such type of approach because the demand or need is always high and intense. The main
goal of this approach is to keep pushing out quality products as appropriate price as possible and
to increase the profit margin. The companies that adopt this approach focus on making better
products and services to attract and retain the customers internationally (Spanjol, Mühlmeier and
Tomczak, 2012).
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The positive and negative aspects of marketing orientation
There are various positive and negative aspects of marketing orientation approach that have been
discussed below.
Positive aspects
 It is noted that marketing orientation render for customer service and support innovation
and improvements geared towards particular consumer desired and goals as well. This
helps in providing satisfaction to the customers across the globe. In marketing
orientation, the organizations focus on the needs, wants and requirements of the
customers instead of convincing customers they have a requirement for the goods and
services.
 The strategic mistakes and errors can be reduced with the help of marketing orientation
approach. A firm with innovative and true orientation knows and analyzes when the
market is not ready for a good and service innovation like new technology. In addition,
the firm does not waste marketing resources to launch a product that the market would
not adopt.
 All the organizations look to attain a high customer satisfaction because doing so
maximizes the chances the consumers would come back again and again. A marketing
orientation approach permits the firm to view its key target audience as individuals with
stable differences in what they want or need (Hill, 2018).
 By implementing the marketing oriented approach, the organizations have all actions and
operations aligned with the effective and tactical vision of meeting the wants and needs
of the consumers. This helps in explaining and analyzing the role of workers more clearly
and effectively. Marketers should perform meticulous research to uncover wants,
requirements, wants and convey messages that define or outline benefits (Kokemuller,
2018).
 Marketing orientation approach further helps in increasing and enhancing income and
sales of the firm. The marketing oriented concept increases moral, loyalty and satisfaction
of the customers.
 All major and dynamic decisions are based on extensive marketing research studies and
research in marketing oriented companies (Hill, 2018).
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Negative aspects
 There is a risk of understanding and evaluating the market. It is one of the biggest and
ongoing risks in marketing orientation approach. Due to lack of proper and adequate
resources, the companies are unable to fulfill the needs and wants of the customers.
 A global marketplace has maximized competitiveness around all consumer brands. The
risk of underestimating the consumer is leading and growing challenges in marketing
orientation approach (Joseph, 2018).
 Understanding and evaluating what the consumer needs and requirements is not sufficient
to assurance a market share in today’s globalization world.
 Marketing orientation generally needs businesses to rapidly change direction to keep up
with changing needs, wants and requirements of their customers. It is a biggest challenge
for marketing oriented companies in the market (Joseph, 2018).
 It is further stated that a marketing orientation approach typically requires a heavy and
high investment in marketing research just the people can evaluate and predict the
changing demands and needs of the customers (McQuerrey, 2018).
 A marketing orientation approach can make it more complex to plan for the future time
period. Potential and talented employees are another concern for marketing oriented
companies. Broader scope is undergone issue in marketing oriented approach that may
put direct impact on the goodwill and financial image of the companies (Joseph, 2018).
The positive and negative aspects of product orientation
The positive and negative aspects of product orientation approach include the following:
Positive aspects
 One of the significant benefits of a product orientation approach is that it permits the
companies to focus on product quality. By implementing the product orientation
approach, the small companies can focus all its efforts and money on the design of the
innovative products so it works to specifics.
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 Technological advancement and investment are other benefits of product oriented
approach. This device is created as a product or good to be sold and not even based on
what consumers want at suitable time.
 Economies of scale may develop more easily for the business approach. The company
can focus on the certain product with the help of product oriented approach. More
quantities could be made at a suitable price that would maximize the number produced.
 A final and effective benefit is that a product oriented approach is easier to accept for
outsourcing its products. This further helps in saving cost and time in the international
market (Bender, 2018).
Negative aspects
 Missed opportunity is one of ongoing disadvantages of product oriented approach.
 Obsolescence and narrow branding also may impact on the brand position and image
of the firm adversely (Edmunds, 2018).
It is stated that marketing oriented approach is much better than product oriented approach
because by implementing marketing oriented approach, the company can analyze and identify
the risks and challenges of the overall market. Along with this, it helps in identifying and
evaluating the policies, threats and condition of the market (Hakansson, 2015).
It has been found that marketing orientation and product orientation approach are used by
various companies. There are various examples such as Coca Cola, Facebook, Apple Inc, Pizza
Hut and Hershey’s chocolate company used marketing orientation approach while implementing
the business activities and operations internationally. These organizations understand and
evaluate the significance of marketing in generating a well known and dynamic brand in the
international market. They inquire and predict the needs, wants and requirements of the
customers. Various models like SWOT analysis, Ansoff matrix and STEEPLE analysis are used
by the organizations to adjust and identify its orientation. To portray and analyze the corporate
growth strategies, the company focuses on the current and potential products and markets. There
are four components of Ansoff matrix that have been discussed below.
Market development: It is one of the leading and effective strategies of Ansoff matrix that is
used by many companies while functioning at international level. By using this strategy, the
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organizations have been able to know and analyze the needs, demands and desires of the
customers internationally. The company focuses on the packaging, geographical areas and
distribution channels to increase and enhance the sale of the products and services. It is more
risky and dynamic strategy as compared to the market penetration strategy (QuickMba, 2018).
Market penetration: It is a strategy that helps in selling the existing products in the global
market. By initiating this strategy, the firm can increase and boost profitability and market share
in the competitive market. Along with this, it can secure dominance of growth markets. This
strategy further helps in providing various information and knowledge about the competitors in
the global market (Lindemann, Maurer and Braun, 2008).
Product development: The main motive of this strategy is to introduce or launch new products
into the existing markets internationally. This approach further may require the expansion and
development of new capabilities and needs the business to develop and improve products which
may appeal to existing markets. This strategy is needed where product differentiation is essential
in order to attain competitive benefits in the global market. A successful and effective product
development strategy focuses on the research, development and needs of the customers (Babin
and Zikmund, 2015).
Diversification: It is more risky strategy because the business is shifting into the new markets in
which it has a little or no experience. The diversification strategy helps the companies to
diversify the products in the international market (QuickMba, 2018).
(Source: http://www.quickmba.com/strategy/matrix/ansoff/)
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Along with benefits, Ansoff matrix creates various hurdles and obstacles in the organization.
This matrix only shows a theoretical model and it does not take into account the actions and
behaviors of external competitors. Predication is quite complex in the organization that may
hamper the brand image in the global market (Doole and Lowe, 2008).
Conclusion
It is concluded from the above discussed study that marketing orientation and product orientation
are biggest and dynamic concepts in the marketplace. In today’s modern world, the companies
cannot grow and explore the business functions globally without using marketing concepts such
as product orientation and marketing orientation. The marketing orientation approach is much
effective and unique as compared to product orientation approach. The above analysis highlights
that Ansoff matrix plays a significant and vital role in exercising product orientation and
marketing orientation approach.
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References
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Doole, I. and Lowe, R., 2008. International marketing strategy: analysis, development and
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Mbaskool.2018. Product orientation [Online]. Available from
https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/8381-product-
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