- A product-oriented approach is an approach to marketing that focuses on product innovation and improvement rather than customer needs and wants.
- It is often used by companies that make highly technical products for which market research is simply not possible
- This might be because the product is too complicated and it is unlikely the customer knows they need it
- An example is how Apple introduced the iPhone with its touch screen and also the iPad
Features of product-oriented approach:
- Emphasis on product quality and features
- Belief that if the product is good, it will sell itself
- Limited focus on customer needs and preferences
- Heavy investment in research and development
- Production efficiency is a primary concern
- Product design and development is a core competency
- Little or no focus on marketing research
- Price is determined based on cost of production
- Often used for complex products or in highly technical industries
- Limited scope for customization or personalization
Advantages/benefits:
- Innovation and creativity are encouraged
- Products are often of high quality
- Cost-effective due to production efficiencies
- Potential for product differentiation and competitive advantage
- Often used in industries where technical expertise is required, such as electronics or pharmaceuticals
Disadvantages:
- Limited focus on customer needs and preferences
- Can result in products that do not meet market demand
- Lack of customer research can result in wasted resources
- May be less effective in highly competitive markets
- Limited scope for customization or personalization can limit customer satisfaction and loyalty.
