- The market-oriented approach focuses on understanding the needs and wants of customers and using that information to create products and services that meet those needs and wants.
- It involves a continuous process of gathering and analyzing customer information to make better marketing decisions.
- This approach emphasizes customer satisfaction, building customer relationships, and creating products that meet specific customer demands.
Features of Market-Oriented Approach:
- Customer Needs and Preferences are the Primary Focus: Companies focus on identifying and meeting the needs and wants of their target market by understanding their preferences, habits, and buying behavior.
- Emphasis on Market Research to Identify Customer Needs and Wants: Companies gather and analyze data about the target market through surveys, focus groups, and data analytics to identify their needs and preferences.
- Product Design and Development is Based on Customer Feedback: Companies use customer feedback to inform the design and development of products and services.
- Production Efficiency is Important, But Not at the Expense of Quality or Customer Satisfaction: Companies prioritize efficiency in production processes while maintaining quality and ensuring customer satisfaction.
- Heavy Investment in Marketing and Advertising to Create Brand Awareness and Promote Products: Companies invest heavily in marketing and advertising to create brand awareness and promote their products and services to their target audience.
- Pricing is Based on Market Research and Competitive Analysis, Not Just Cost of Production: Companies set prices based on market research and competitive analysis, taking into account customer willingness to pay and their perceived value of the product.
- Customization and Personalization of Products to Meet Individual Customer Needs: Companies offer customized and personalized products and services to meet individual customer needs and preferences.
- Constantly Adapting to Changing Customer Preferences and Market Trends: Companies adapt their products and marketing strategies to keep up with changing customer preferences and market trends.
- Collaboration with Customers to Create New Products and Services: Companies collaborate with customers to create new products and services based on their needs and preferences.
- Building Long-Term Relationships with Customers Through Exceptional Customer Service and Support: Companies focus on building strong, long-term relationships with their customers by providing exceptional customer service and support.
- Increased customer satisfaction and loyalty
- Better understanding of customer needs and preferences
- Greater potential for market growth and profitability
- More effective targeting of specific customer segments
- Competitive advantage through differentiation and unique value propositions
- Opportunity to create new products and services based on customer feedback
- Building strong brand awareness and reputation through effective marketing and advertising.
- Higher costs associated with market research and customer feedback
- May be slower to respond to market changes and trends
- Potential for increased competition in highly attractive markets
- Requires a high level of customer-focused culture and mindset across the organization
- Customization and personalization can result in higher costs and production complexity.