Question

Explain why market orientation can be more important than product orientation when entering a new foreign market. When would product orientation be equally important if not more than market orientation when entering a new foreign market?

Answer 1

Market Orientation is more important than Product orientation. Market orientation focus on Customers needs. What exactly customer want? In this orientation, Marketing team research in the market. They find out the requirements of the customers. They work on demand of the customers. They make product according to the customers demand and make profit. Whereas, Product Orientation focus on their products manufacturing. They do not bother about market demand. They have no connection with the customers. They make what they know. They make the profit by making more products in small time and low costing. We will understand both theory with examples as under:

Market Orientation: As we said before, in this orientation, Company focuses on customers demand. The Pizza Hut and McDonand is the best example of Market orientation. They make the food as per customers demand. They regularly research in market and change their menus frequently. They change dishes, food type and tastes according to the market demand. They do not depend on their products. They drive the business on customers demand. This is the reason they make more money and more profit. That is why they are the market leaders in their business

Product Orientation: Product orientation is not the best orientation. Sony music system is the best example of Product orientation. This company does not carry out any survey for customer demand. They make music systems because they know how to make it. They have all the sufficient equipment to make this product. They focus on product quality and cost of the product. They try to lower the cost of the product so that it can be sold out more. However, it is not based on market demand, hence it can be fail some times.

Product Orientation is equally important in a new foreign market, where customers more focus on the quality of the product. Also high quantity demand of the product makes product orientation equally important. In Product orientation, they more focus on the quality of the product, high numbers of production and lowering the cost of the finished product. Under the condition, Product Orientation is equally important than Market Orientation.