Module 1: Advantages of a firm being Market Oriented

Market Oriented Firms make customers’ needs or wants primary focus. By this we mean that the customers in those firms will experience higher pleasure for their products and services. On the other hand the company tries to be loyal to the customers by making adjustments and product improvements over time. When the Firms understand the needs they will effectively market to them. With market research marketers can understand the needs and how their product aligns with those needs.

The company can lead to long-term profitability if permanently understands what the marketplace wants. Building customer value allows the company to increase loyalty to the bran. Loyal customers will buy in larger purchase and they will repeat sales. These customers are very resistant from competitors.

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Effectively implementing the market orientation needs marketing research for determining the needs of customers in the marketplace. Depending on the depth on the research they can be expensive. Market oriented company spends large amount of costs on advertising. It cultivates very carefully its brand in the minds of potential customers with the aim of influencing  the customers to buy their product.

 

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One Response to Module 1: Advantages of a firm being Market Oriented

  1. bmemishi says:

    Undoubtedly, market oriented towards customers’ needs is a matter that requires commitment for long distance benefits. Nevertheless, there are cases when big companies have focused on a product design according to its vision, trying to drive the customer opinion. Apple is one of the company leaders in this direction. In its trajectory, the company has introduced products that were not required by the consumers. In certain scenarios, it has even gone against these wishes (negation of bigger screens for its smartphone line). Per curiosity, this has not introduced an ill-defined strategy, until now at least.

    According to your opinion, where does the company has to place this border according the management theory? In other words, up to which point the company has to make consumer satisfaction, and leave the other part for satisfying a presumable future wish?

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