Market Orientation

A company philosophy focused on discovering and meeting the needs and desires of its customers through its product mix. Unlike past marketing strategies that concentrated on establishing selling points for existing products, market orientation works in reverse, attempting to tailor products to meet the demands of customers. In essence, market orientation can be thought of as a coordinated marketing campaign between a company and its customers.

Market Orientation

Marketing orientation is a business model that focuses on delivering products designed according to customer desires, needs, and requirements, in addition to product functionality and production efficiency (i.e., production orientation). As stated by Bernard J. Jaworski and Ajay K. Kohli in the "Journal of Marketing", marketing orientation is the, "The organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments and organization wide responsiveness to it. "

From the beginning of the Industrial Revolution until the 1950s, companies focused on maximizing economies of scale and minimizing production costs. Since high quality products were scarce during this period, brands could make products on a massive scale that were functional and durable, but ignore marketing elements such as add-on features and design. This was largely due to the growing numbers of affluent and middle class people that the rise of capitalism had created.

Following the second world war, it soon became obvious that products were not selling as easily as during the Industrial era due to a saturated market. Throughout the 1950s and 1960s, companies responded by adopting a sales orientation model that concentrated first on making products, then selling them to customers. Despite organizations' move from product-oriented to sales-oriented strategies, customers were still excluded from the product development process.

 

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