- Market orientation is an approach to marketing that focuses on the needs of consumers and uses this information to design products that meet customer needs
- Consumers are at the centre of marketing decisions
- Products which respond to consumer needs are developed
- Market-orientated businesses are usually more adaptable to to changing customer needs
- For example, universities often develop new courses based on the feedback they receive from students and the changing requirements of employers
- Market orientation should lead to a business benefitting from increased demand, increased profits, and a valued brand image as its products are more desirable than those of rivals
Diagram to show the Tools of Market Orientation
Market orientation combines market research and market testing with a customer focus
- Market testing is the process of assessing customer reaction to a product or service before it is launched
- It determines whether there is a potential market for the product or service
- Features that are likely to be most appealing to consumers
- For example, a healthcare business may conduct a focus group for a new brand of toothpaste
- Customer focus means putting your customers' needs first
- Customer-focused businesses focus on enhancing customer satisfaction and building strong customer relationships