Explain the term ‘product orientation’.
CAMBRIDGE
A level and AS level
Year Examined
October/November 2017
Topic
Marketing
👑Complete Model Essay
Product Orientation: An Inward-Looking Approach to Marketing
Product orientation is a business philosophy that prioritizes the development and production of high-quality, innovative products, often with little regard for market demand or customer needs. It operates under the assumption that "a good product will sell itself." This essay will delve into the concept of product orientation, highlighting its characteristics, advantages, disadvantages, and relevance in today's market.
At its core, product orientation is an inward-looking approach. Businesses with this orientation focus heavily on internal capabilities and resources, often investing heavily in research and development to create technically superior products. The emphasis is on product features, functionality, and innovation, sometimes at the expense of understanding customer needs and market trends.
One of the key aspects of product orientation is the lack of market research. Instead of identifying existing customer needs or market gaps, companies assume that their product will be desirable simply because it is well-made or technologically advanced. This can lead to a disconnect between the product and the target market, resulting in products that fail to resonate with consumers.
The Ford Edsel is a classic example of product orientation gone wrong. Ford invested heavily in designing and engineering what it believed to be a revolutionary car. However, the company failed to adequately consider consumer preferences, leading to a vehicle with an unconventional design and features that ultimately alienated potential buyers. The Edsel became a commercial failure, demonstrating the risks of neglecting market research and customer needs.
Despite its potential drawbacks, product orientation can be successful in certain situations. For instance, companies operating in niche markets with specialized products or those at the forefront of technological innovation might find this approach beneficial. In such cases, the focus on product excellence and innovation can be a key differentiator.
However, in today's dynamic and customer-centric market, a purely product-oriented approach is often considered short-sighted. The rise of globalization, increased competition, and the empowered consumer necessitate a deeper understanding of market needs and wants. Businesses need to adopt a more outward-looking approach, focusing on customer relationship management, market research, and adapting products to meet evolving consumer demands.
While product orientation may have been a viable strategy in the past, its relevance in the modern business environment is debatable. The emphasis on internal capabilities and product features without adequate consideration of market demand can lead to missed opportunities and commercial failures. In today's competitive landscape, businesses must strive for a more balanced approach, combining product excellence with a deep understanding of customer needs and market trends to achieve sustainable success.
Sources
- Kotler, P., & Keller, K. L. (2016). Marketing Management. (15th ed.). Pearson Education.
- Palmer, A. (2012). Introduction to Marketing: Theory and Practice. Oxford University Press.
Explain the term ‘product orientation’.
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A-Level Business Studies Essay: Product Orientation
This guide will help you write a comprehensive essay on product orientation for your A-Level Business Studies course. You will learn about the definition, characteristics, advantages, disadvantages, and real-world examples of this marketing approach.
Defining Product Orientation
Product orientation is an inward-looking marketing approach where a business focuses primarily on developing and producing high-quality products, assuming that the quality itself will drive sales. This approach often involves:
- Minimal market research: Businesses may not conduct extensive market research to assess customer needs and wants.
- Emphasis on product features: Resources are heavily invested in research and development, focusing on improving product functionality and design.
- "Build it and they will come" mentality: Businesses assume that their excellent products will automatically attract customers, without a significant marketing effort.
Advantages of Product Orientation
While often criticized, product orientation can have some benefits:
- Superior product quality: Focusing on product development can lead to innovative and high-quality products, potentially gaining a competitive edge.
- Brand loyalty: When customers are satisfied with the product's quality, they may become loyal and repeat customers.
- Expertise development: Businesses gain deep knowledge and expertise in their specific product area.
Disadvantages of Product Orientation
However, product orientation has significant drawbacks that can hinder a business's success:
- Lack of customer focus: By neglecting market research, businesses may fail to meet actual customer needs and preferences.
- Missed market opportunities: Ignoring market trends and competitor activities can lead to lost opportunities for growth and innovation.
- High costs: Investing heavily in product development without considering market demand can lead to high production costs and potential financial losses.
- Increased risk of failure: Without understanding the market and customer needs, businesses face a higher risk of developing products that do not sell.
Real-World Examples of Product Orientation
Here are some examples of companies that have traditionally adopted a product orientation:
- Apple: In its early days, Apple focused on product innovation and design, believing that the quality of its products would drive sales. This strategy proved successful for a long time but ultimately had to be adapted as the market evolved.
- Rolls Royce: Known for its luxurious and high-performance cars, Rolls Royce has historically focused on engineering excellence and craftsmanship, prioritizing product quality over extensive marketing campaigns.
- IKEA: IKEA, while having a strong brand image, initially focused on creating functional and affordable furniture, believing that the product itself would attract customers. However, their current success involves a greater focus on customer understanding and marketing.
Writing Your Essay: Key Tips
To write a strong essay on product orientation, consider these tips:
- Structure your essay: Create a clear structure with an introduction, body paragraphs, and a conclusion.
- Define your terms: Explain the concept of product orientation clearly and use relevant terminology.
- Use examples: Provide examples of real-world companies that demonstrate the advantages and disadvantages of product orientation.
- Critical analysis: Analyze both the strengths and weaknesses of this approach, considering its practical implications in different contexts.
- Evaluate the impact: Discuss how product orientation might impact a business's success, profitability, and competitive advantage.
- Consider alternative approaches: Compare and contrast product orientation with other marketing approaches, such as market orientation, to provide a comprehensive understanding.
- Reference your sources: Ensure you cite all relevant information and sources accurately.
By following these guidelines, you will be able to write a well-structured and insightful essay on product orientation that meets the requirements of your A-Level Business Studies course.
Extracts from Mark Schemes
Product Orientation
Product orientation is said to be an inward-looking marketing approach (1) which has a focus on making products (1) and invests a high proportion of resources on product features rather than marketing (1). The product is made without carrying out market research (1) and then the business tries to find customers to buy it (1).