how market orientation works
market orientation is a customer centered approach to product design it involves market research aimed at determining what consumers view as their immediate needs primary concerns or personal preferences within a particular product category researchers use activity interest and opinion aio surveys along with demographic to gain insight into the target customer desires companies may also employ additional data analysis to reveal trends and consumer desires that are not specifically expressed a knowledge of these trends ideally can help product developers meet or even anticipate consumer needs they may even inspire improvements that the consumer was not aware of as being an option this allows a company to focus its product development efforts on the characteristics that are most in demand with an increasingly global economy and the proliferation of choices for consumers companies that adapt to a market orientation may benefit from a competitive advantage over other companies advantages of market orientationmarket orientation often includes improvements in customer service and product support geared to solving concerns raised by consumers this helps ensure customer satisfaction remains high with the company as a whole and promotes brand loyalty and positive word of mouth advertising to be successful companies need to ensure that all departments adopt and promote the market orientation approach so that it becomes an integral part of the corporate culture when effective market orientation can help a company increase customer retention and propel growth in new demographics at times market orientation may reveal customer desires that are simply not cost effective or practical to implement the business then must determine how to meet customer expectations in the best way possible at the very least impractical ideas may inform long term development strategies options that are not cost effective today may become quite possible down the line due to changes in technology science regulation or other market conditions market orientation vs other strategiesdevelopment focused on market orientation puts consumers desires first creating the product around their expressed needs and wants this contrasts with product orientation a business philosophy that emphasizes getting the consumer to become aware of and like the features and benefits of a particular product product differentiation often goes hand in hand with a product orientation approach with this approach the company employs an advertising strategy that aims at clearly identifying the attributes that distinguish a brand from its competitors sales orientation focuses on persuading the consumer into immediate action through means such as online ads social media television commercials in store demonstrations or direct response marketing any or all of these approaches may be required for a successful marketing strategy but most businesses focus on one or a few as their primary focus real world examples of market orientationamazon is an example of a market oriented company as it has grown and developed it has consistently added processes and features that clearly address concerns and desires expressed by consumers for example many consumers especially city dwellers worry about getting packages delivered when they re not at home the company responded with amazon locker a network of self service pickup boxes delivery charges no matter how reasonable are a chief irritant to consumers and a reason to buy locally instead of ordering online amazon prime charges an annual fee for the free delivery of most of its products coca cola is another company that is famous for its market orientation considerable research goes into identifying new flavors that consumers will actually like such as wild strawberry and lime but those new flavors won t help coca cola address the increasing health consciousness of consumers that s why the company acquired brands including dasani honest tea smartwater simply orange minute maid and vitaminwater 