3. Now that we have discussed the concept of being customer oriented, let's discuss MARKETING ORIENTATION. Customer oriented practices are just one small piece of operating with a market orientation. Describe what market orientation means, and how you see that it differs from PRODUCTION ORIENTATION (build it and they will come...). Depict a company that you see who operates and provides product offerings through the practice of market orientation. You will see this in their design and implementation of their marketing mix designed for a particular target market.
KEEP IN MIND: marketing mix = 4 P's, yes? Target market is the segment of the market which has been selected by the company as their priority in serving. Also, in marketing, we use "product offering" when referring to the total of either a product OR a service that offered. We'll get into that more in Chapter 8, but for now, hold that thought.
Market orientation refers to a business approach where the company focuses on meeting the needs and wants of its target market. It involves conducting thorough market research to understand customer preferences, analyzing competitors, and aligning the company's strategies and resources accordingly. The primary goal of market orientation is to create customer value and gain a competitive advantage by delivering superior products and services that cater to the specific needs of the target market.
In contrast, production orientation, also known as the "build it and they will come" approach, centers around the company's internal capabilities and production capabilities. In this approach, the company focuses primarily on creating and producing goods or services efficiently, with the assumption that customers will purchase whatever is produced. There is limited consideration given to customer desires and market demand.
An example of a company that operates with a market orientation is Apple Inc. Apple has a deep understanding of its target market, which consists of tech-savvy individuals who value innovation and design. Apple conducts extensive market research to identify trends, preferences, and needs of its target market. Based on this information, the company designs and develops products like iPhones, MacBooks, and AirPods that meet consumers' expectations in terms of functionality, style, and user experience. Additionally, Apple designs its marketing mix, which includes the 4 P's (product, price, place, and promotion), keeping the target market in mind. For instance, the sleek and user-friendly design of their products, premium pricing strategy, exclusive retail stores, and creative advertising campaigns are all tailored to attract and serve their target market effectively.
In summary, a market-oriented company like Apple focuses on understanding and fulfilling the needs of its target market through comprehensive market research, strategic decision-making, and the development of a marketing mix that aligns with customer preferences. This approach results in a higher likelihood of success and competitive advantage in the marketplace.