Today…

Product Orientation Market Orientation Market Share Market Growth

Product Orientation

Production

Capabilities

Manufacture

Product

Aggressive

Sales

Effort

Customers

Production Orientation is when a business focuses on the production process and seeks to make goods which are viewed as superior

British Motorcycle Industry

Britain ruled the world of bikes in 30s and 40s.

BSA, Norton & Triumph neglected consumer tastes as sleeker models arrived

Suzuki, Kawasaki and Honda catered for this. Look at what happened!

Market Orientation

Customer

Needs

Potential

Market

Opportunities

Marketing

Products

&

Services

Customers

Market Orientation starts with the consumer and looks at consumer needs. It is customer orientated.

Sony Walkman

Designed due to people’s needs for a small tape recorder

Workers used headphones to listen to music and the Walkman was born

Henry Ford and Model T

The World’s First Assembly Line churned out the Model T Ford.

Henry Ford ‘boasted’ that “it was available in any colour… as long as it’s black!”

Ford was customer orientated because the savings made by the assembly line were passed down to the customer by offering cheap automobiles

Advantages of Market Orientated approach

Respond quicker to changes in market due to market research

Stronger position to meet new competitors

Can anticipate market changes More chance of new product

success

Market ShareUS Fast Food Sales

36%

19%7%

7%

31%McDonald's

Burger King

Wendy's

KFC

Others

Market Share is the percentage of customers who buy/use a company’s goods/services

Market Growth

Increasing market share means a business increases sales at the expense of competitors.

However, firms can also increase sales if the whole market grows.

Market growth occurs when the number of people buying/using the good/service increases