production orientation definition: Product Orientation Meaning & Example

fast food

Regardless of the approach your organization takes, you can positively influence the effectiveness and efficiency of your teams through proper employee management and monitoring. A time tracking app like Traqq allows you to track the progress of each product or project, as well as monitor the activity levels of employees. It increases sales, which also leads to higher volume and market share of a business entity. Running a promotion campaign is costly, and it can lead to losses if consumers resist the product or service. We look at the impact of each concept on businesses, and their advantage and disadvantages.

product orientation approach

The kinematic calibration thus becomes a procedure of fine-tuning the locations and orientations of the local frames. There are, in fact, a few hints pointing at this diversity of intellectual orientations. The three basic component orientations are not considered as independent of one another and their mutual orthogonality is taken into account in the equations. Interactional sequences are therefore linked to participant orientations and goals. I have outlined three forms of relationships to represent the orientations of children’s improvisations and compositions.

Production Orientation – Meaning & Definition

The way you run your business depends on how your organisation operates, the products or services it offers, its challenges, and the philosophies that you adhere to. We can also consider the brand’s response to shifts in consumer health concerns and the development of sugar-free products like Coke Zero that catered to this market. Business orientation refers to how a company or organisation approaches its strategies for success. As a business, being successful means outlining a strategy and following it to achieve your goals.

That focus on quality often means that a company’s products undergo rigid testing before they are released to the public. It also means that the quality of the product made by a production-oriented company may be superior to that of a marketing-oriented company. Salespeople are an essential part of the product development process of a product-oriented organization. You don’t hire salespeople after you’ve decided to add a new product or change an existing one. You bring them in to find out what customers are saying, what objections lead to rejections, and other information about your and your competitors’ products. While product orientation focuses entirely on the product’s quality, market orientation concentrates on the wants and satisfaction of customers.

Product Orientation and Production Orientation Differences

This is an example of a company that truly had built a better mousetrap and could disregard their customers’ needs and follow a production orientation. The main disadvantage of a production-oriented strategy is that competitors may develop a higher quality, less expensive version of your product that may price you out of the business. Another disadvantage is that businesses that focus on production will not be able to adapt and shift their strategy when their buyers’ tastes change. One of the critical concerns is that companies with a strong product orientation risk losing customers and profits to competitors who offer more in-demand goods. They may waste their marketing dollars on products that do not meet the needs of their customers.

The way they choose to approach these decisions can profoundly impact strategic development, business outlook, and—ultimately—sales. Gillette Company focuses on producing the best possible disposable razors at an economic rate. Thereby, they distinguish their products with high quality razor blade, ease of use and right pricing strategy. Market orientation is a strategic focus on identifying consumer needs and desires in order to define new products to be developed. Product orientation is otherwise known as the “no fear strategy” because there is an implication that the business is bold, proactive, and comfortable with risk.

Notable examples include fast-food chains such as Burger King or McDonald’s, which focus on producing high quantities of fast food at the lowest price possible. When Henry Ford developed the assembly line method, he mass-produced relatively inexpensive cars while minimising production costs as much as possible. They didn’t have to worry about finding customers because their customers were willing to line up every day and buy all the food products that they could make.

  • A knowledge of these trends ideally can help product developers meet or even anticipate consumer needs.
  • We can also consider the brand’s response to shifts in consumer health concerns and the development of sugar-free products like Coke Zero that catered to this market.
  • The marketing orientation concept has evolved, and for decades, it has been the model of choice for businesses looking to establish brands that can compete for customer attention and loyalty.
  • Marketing orientation focuses on the customer, while production orientation focuses primarily on cost.

First, let us briefly consider the effects of symbolic orientations and demographic characteristics. The Act requires that people should be employed without regard to their political or sexual orientation. Anti-discrimination laws include race, sex, gender, orientation, disability, and military status as protected classes. Companies exploit economies of scale for maximum efficiency at the lowest cost. Companies utilize economies of scale to achieve optimum efficiency at the lowest possible cost.

The Five Key Categories of Marketing Orientation Approaches

Customers’ demands and desires became the focal point of whatever a firm tried to achieve, resulting in high-quality, personalized products that set them apart from their competition. The company guarantees that its values, norms, conduct, and the established processes, structures, and control inside the organization are by the customers’ needs. This approach may not always be innovative since it’s more concerned about meeting the desires of consumers than creating new products. The consumer-centric approach helps an organization to know what the customers really want, hence avoiding wasting resources. Businesses that implement this idea incline towards the ethical approach in their wider marketing and research strategies. A good example is the pharmaceutical industry and life science sectors, which have come under scrutiny for their unethical marketing strategies.

Product orientation is a culture of product quality and rate setting, whereas market orientation is a business culture. Product research, product testing, and product focus are methods utilized in product orientation. Market research, market testing, and customer focus, on the other hand, are techniques used in market orientation. The widespread adoption of Internet technology has contributed to the shift toward marketing orientation. Customers have grown increasingly discerning, and social media has become one of the primary sources of customer outreach. As the world increases its focus on sustainable ways of living, consumers are more inclined to buy products, which is —of course— the company’s goal.

Customer service, businesses must adapt their strategies to remain competitive. In other words, their operations can be defined as service businesses, with customer service at the forefront. This approach prioritises identifying consumers’ needs and delivering products and services to satisfy them. Considerable research goes into identifying new flavors that consumers will actually like, such as wild strawberry and lime. But those new flavors won’t help Coca-Cola address the increasing health consciousness of consumers. That’s why the company acquired brands including Dasani, Honest Tea, Smartwater, Simply Orange, Minute Maid, and Vitaminwater. must learn to quickly change direction to keep up with the constantly changing demands of their customers. Hearst Newspapers participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. Such a product orientation is the norm in educational technology deliberations. The Management Dictionary covers over 2000 business concepts from 5 categories.

A major result was development of the concepts of employee orientation and product orientation. In the post-industrial information age, the focus of companies has shifted from product orientation to an orientation towards knowledge. The orientation that you choose for your company may depend on where your strengths lie and what you think will make your business most successful. Alternatively, you may be running your business with a particular orientation that you haven’t consciously articulated or identified.


Instead, more and more businesses adopt a holistic approach that focuses on incorporating various aspects of each orientation. Such a philosophy is often found in companies dominated by production and engineering managers and stresses the pursuit of technical excellence of products. Since such products have not been designed with the needs of consumers sufficiently in mind they risk being rejected by them. A business model is a company’s profit-making plan which defines the products or services it will sell, its target market, and any expected costs. The primary advantage of a marketing-oriented strategy is that it is responsive to the needs of its target audience, which can boost brand identification, loyalty and trust.

It enables a corporation to devote all its attention to a single product, ensuring that only the highest quality is delivered. Furthermore, organizations that consistently demonstrate their innovation ability tend to have a difficult-to-replicate brand following. By its very nature, continuous innovation allows a company to be the first to market in a new industry and, more crucially, to keep that edge. You can survey an audience you already have or survey a precise customer segment of your choosing via our audience panel. Production Orientation is an example of a term used in the field of economics (Economics – ). The Termbase team is compiling practical examples in using Production Orientation.

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The product is created such that it would sell itself and there is high focus on its research and development. Hence, it holds relevant only in a small market scenario and is often combined with market orientation to cater to wide segment. Product orientation is philosophy in business which was incorporated prior to 1920’s when there was no sophistication in product development and the sole focus was on developing high-quality product. Market orientation is an approach to business that prioritizes identifying the needs and desires of consumers and creating products and services that satisfy them. Companies that have a market orientation consider the opinions and needs of their target market as a critical component of their research and development (R&D) for new products. A product orientation is a business strategy that dates back to the 1920s, when product development was less sophisticated, and the only focus was on creating high-quality products.

Until the 1950s, a majority of production orientation definition relied on the production orientation concept. This idea assumed that as long as they produced high-quality products, businesses would remain profitable. However, in today’s hypercompetitive global markets, where consumers have a proliferation of choices, companies have to maintain a competitive edge to beat the competition. In contrast to the product-oriented definition, production orientation is an approach that focuses on the manufacturing and production process.