University:
High School
Course:
High School Business
Academic year:

2023
Views:

17

Pages:

2
Author:

anon

IB Business and Management: Market and Product Orientation Market and Product Orientation The Orientation of a Market ● In order to focus on getting customers to buy their products, businesses may become specifically orientated. ● For standard level, this is categorized in two ways: Product Orientation and Market Orientation Product Orientation ● If a company is product-oriented, all of its productions are designed to revolve around the product. Thus, all decisions will revolve around producing and designing the product. ● The company will operate in the belief that customers will buy the premium product and value it above fashion. ● It is therefore ideal that the business concentrates most of their efforts in efficiently producing a high quality product. Advantages Disadvantages Business can focus on the internal quality of the business (in terms of how efficient and how well the business departments and its empolyees are) Changes in market structure will not be responded to Updated technological equipment is Fashion, Taste and other customer needs are not likely to apply for most products accounted for Business is more likely to be able to benefit from economies of scale Technology applied can be left behind (when unit costs decrease as production increases) Quality of product is ensured Market Orientation ● When a business puts the customer at the centre of its operations; all decisions revolve around producing a product according to customer needs. ● Also known as consumer orientation ● The business focuses on making products that they can sell rather than producing products of extremely high quality. ● Much of the work is based around market research Advantages Disadvantages The business should be flexible to changes in demand patterns High cost of market research to understand the market The business, through market research, will have a strong understanding of the needs of the customer Constant internal change as needs of the market are met New products designed to meet customer needs should have a greater chance of success Unpredictability of future, especially from point of view of staff