Download Product Orientation - Cleveden Secondary School

Product Orientation
Unit 5 - SLIDE 4
1
Product orientation
A product orientated business will
concentrate on the production process
and the product rather than what the
consumer wants.
It may focus on trying to improve
efficiency of its production or to
produce technologically advanced
products.
Unit 5 - SLIDE 4
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Novelty Value
The basic idea or novelty of the product that
makes the good sell.
E.g. home computers when first introduced
were considered a technical wonder –
consumers did not request them.
Due to the idea of having a computer, plus
the lack of competition from competitors
(domestic and overseas) – the product sold
itself.
Unit 5 - SLIDE 4
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Why be product-orientated?
Firms operating at the cutting edge of
innovation (technological advancement) must
innovate to survive.
E.g. bio-technology, pharmaceuticals or
electronics.
Although the business may have a final
product in mind to try and anticipate demand,
the research is pure.
I.e. They research to find out what is possible
not what people want.
Unit 5 - SLIDE 4
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Example of a product-orientated
product.
Concorde is a product-orientated good.
Development carried out between the UK and
France to see if it was technically possible.
Although Concorde achieved supersonic
speed as a passenger plane it did not sell.
There was no real consumer want for it.
Therefore the costs of developing Concorde
have never been recovered..
Unit 5 - SLIDE 4
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Customer-orientated organisations/
market orientation
Continually identifies, reviews and
analyses consumers’ needs.
They will modify their products or
services to respond to any changes in
their needs
These organisations realise that their
profits and/or success depend on
meeting the needs of the customer.
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MARKETING ENSURES THAT THE NEEDS
OF THE CUSTOMER ARE CONSIDERED
BEFORE PRODUCTION TAKES PLACE
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The Marketing of Products &
Services
• Marketing applies to both products and
services.
• It applies to industrial goods and
services
• However the main principles apply in
ALL cases
• Look how it refers to Industrial Goods
and Services Unit 5 - SLIDE 4
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Industrial Goods
These are distinguished from consumer
goods according to the purpose of
which they are bought eg raw materials
and machinery
In some cases goods can be both
industrial and consumer eg cars
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Marketing of Industrial Goods
influences:
Product performance and quality eg the
technical specifications
Link between seller and the buyer is
closer (mass advertising not often used)
Personal selling more common
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Services
Are distinguished from goods in the
following ways:
• Intangible
• Sold and consumed at the same time
• Perishable
• Quality may vary
Unit 5 - SLIDE 4
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