What is product orientation?
A focus on product features, quality, performance, cost, and efficiency
It aims to fit the product with customer expectations, with contact occurring mainly at the final stage.
List the advantages of product orientation.
- Focus on quality and innovation
- Good for new or unique products
- Less need for market research
This approach can lead to strong, reliable products and save time and money.
List the disadvantages of product orientation.
- Ignores customer wants and needs
- High risk of product failure
- Less flexible to market changes
These can lead to wasted resources and missed sales opportunities.
What is market orientation?
A focus on consumer needs to develop fitting products
This approach aims to create products that match customer demands.
List the advantages of market orientation.
- Better understanding of customer needs
- Improves customer satisfaction and loyalty
- Reduces risk of product failure
- Helps the business stay competitive
This approach increases the chances of high sales.
List the disadvantages of market orientation.
- High cost of market research
- Time-consuming
- Customers don’t always know what they want
- Too much focus on current needs
These factors can limit innovation and slow down product development.
What factors determine whether a business emphasizes product or market orientation?
- The nature of the product
- Policy decisions
- The views of those in control
- The nature and size of the market
- The degree of competition
These factors influence the strategic focus of the business.
What is market positioning?
The consumer’s view of a product’s quality, value, and image relative to competitors
Firms plan marketing activities to shape these perceptions.
List some approaches a business might use to position its products.
- The benefits offered by the product
- The unique selling point
- The characteristics/qualities of the product
- The origin of the product
- The classification name of the product
These strategies help differentiate products in the market.
What is market mapping?
A process of plotting competitors and their products to understand behavior and spot market gaps
It uses a 2-dimensional diagram with two key variables.
List the advantages of market mapping.
- Simple, visual tool
- Helps spot gaps in the market
- Useful for analyzing competition
- Identifies market saturation
These advantages aid in strategic decision-making.
List the limitations of market mapping.
- Does not guarantee success
- Shows a snapshot in time
- Requires in-depth research for important decisions
These limitations highlight the need for comprehensive analysis.
What is market segmentation?
The process of dividing the market into sub-groups with similar characteristics
This allows for targeted marketing strategies.
List the methods of segmentation.
- Geographic and Demographic segmentation
- Psychographic segmentation
- Behavioral segmentation
Each method targets different consumer needs and preferences.
List the advantages of market segmentation.
- Better customer satisfaction
- More effective marketing
- Stronger customer loyalty
- Helps find new opportunities
These benefits enhance business performance.
List the limitations of market segmentation.
- More expensive
- Complicated to manage
- Risk of small markets
- Takes time to research
These factors can hinder effective segmentation.
What is competitive advantage?
Unique features perceived as superior by customers
It can be achieved through various means beyond just price.
List ways to gain competitive advantage.
- Product design
- Product quality
- Promotion
- Customer service
- Delivery times
- Economies of scale
- Flexibility
- Ethical stance
These strategies help differentiate a business in the market.
What does product differentiation mean?
Any aspect that distinguishes a product from its competitors
This helps in creating a unique market presence.
List the purposes of product differentiation.
- Flexible pricing
- Recognition
- Extend product change
- Brand development
- Overcome competition
These purposes enhance market appeal and competitiveness.
What is adding value?
The difference between the cost of goods and the selling price
It involves offering extra features to exceed customer expectations.
List ways to add value to products and services.
- Bundling
- Customer service
- Speed of response to customers
- Packaging
- Customisation
These methods enhance product desirability.
List the benefits of adding value.
- Charge a higher price
- Differentiate products
- Protect against competitors
- Focus on target market segment
These benefits contribute to business success.
