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Market vs. Product Orientation - Coggle Diagram
Market vs. Product Orientation
Product Orientation
A business that solely develops and focuses on products based on what it is good at making or doing, rather than what a customer wants.
Cons
You will miss opportunities to make products that would have a higher success rates and potentials in the market, compared to producing/introducing a new product.
People may easily copy your design/product if it is successful in the market.
It would be extremely hard to catch attention from the market, as the product you create would be very unfamiliar by the market, therefore it would be even harder to sell it.
Higher rates of failures of your product/business.
Hard to other businesses and companies to cooperate with your company since your company would be new. Therefore would be hard to advertise your product/brand
Pros
Being able to create a special product that will pull individuals, because you have the only thing that they need.
Being able to create a monopoly business.
Being able to focus on one product, and release it with great potential
Having the chance of leading the world's innovation to create and invent new product.
Having potential to be able to create a new market that would be successful.
Market Orientation
Customer-centered approach to product design and development. The process involves market research to find out what consumers wants, needs or preferences for specific product categories.
Cons
Requires extensive and careful market research (i.e. data mining, surveys) to understand exactly what consumers want.
Heavy investment in market researching.
Harder to focus on a specific target audience/market
Difficulty planning for the long-term/future - despite extensive/comprehensive market research, it cannot always predict what exactly consumers want in the future.
The business has to be very adaptable to change direction or keep up with the constantly changing market/demands.
Pros
By listening to consumer feedback, it allows you to make improvements to specific areas/fields of your business. This helps address problems and take action before consumers go to competitors.
Reduced risks of your entire business going bankrupt or losing money; as there is constant demand.
Focusing on the consumer wants can lead to product innovation because it allows the business to modify the product to the consumers' liking. Such innovation helps a business to remain competitive.
By listening and paying attention tor the consumers, it can increase loyalty towards your brand. Especially if your products are high in quality, consumers will likely buy it again in the future, thus making you profit.
By giving what consumers want, it increases the chances of your product and business being successful, and generating good amounts of revenue.