Marketing theory has undergone several changes since the birth of capitalism. There are several marketing terms that describe the primary focus of a company's energy and theories behind a certain type of business model. Marketing orientation and production orientation are two of these terms.
Basic Focus
The basic focus of a company with a production orientation is toward maximizing production output. Under a production orientation, a company is succeeding when it is manufacturing as many products as possible at the cheapest possible price. In contrast, a company with a marketing orientation is squarely focused on the consumer. Market-oriented companies respond to marketing research and tailor their products in accordance with what they perceive to be the demands of the market.
Approach to Customers
A business with a marketing orientation is essentially led by the needs of its customers. Marketing research outcomes determine how much of a product is produced--old products may be discontinued and new products invented based on the needs or desires of consumers. In contrast, a production-oriented company does not pay close attention to the needs of its customers and is focused primarily on making the maximum number of products. If customers are dissatisfied with its product, a business with a production orientation is more likely to look for a new set of customers than to alter its product.
Approach to Advertising
A production-oriented company does not focus a great deal of energy on advertising. A business with a production orientation sees itself as fulfilling a need and assumes that as long as customers are aware of their product and can afford, they will buy it. In contrast, market-oriented companies spend a great deal of money on advertising. A market-oriented company carefully cultivates a brand in the minds of potential customers in an attempt to influence them to buy its products instead of a competitor's products.
Stages
Production orientation and marketing orientation describe different stages in the evolution of modern business marketing. Until the early 1900s, many products were scarce and companies could therefore sell as many as they could make. This made advertising and marketing research relatively unnecessary; the way to make money was to manufacture a lot of goods as inexpensively as possible. Most companies began to adopt a marketing orientation during the 1960s. Many companies were manufacturing the same types of product, and customers were able to choose between them; therefore, companies needed to distinguish themselves from their competitors by branding, advertising and introducing new and better products.
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