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Friday, 2 November 2012

Market and product orientation.

 Mainly, there are 2 types of business orientations: Market Orientation and Product Orientation. Obviously, there are some peculiarities of each kind of orientation.
 A market orientated company:
  • is one that organises its activities, products and services around the wants and needs of its customers
  •  does intensive marker research and product ranges carefully designed to customer preferences.
  • tools: 1. market research, 2. market testing, 3. customer focus
  • examples: Zara,  H&M, Dior, Audi, ...
 A product orientated company:
  • focuses on its product and on the skills, knowledge and systems that support that product.
  • keeps an emphasis on quality, safety and investment in new technology.
  • tools: product research, product testing, product focus
  • examples: the Gillette Company (but it has good enough marketing), pharmaceutical companies (e.g. Glaxo), investigative centres,...
  Moreover, successful companies realise the importance of both approaches. The decision what to produce 'must be started with the needs and wants of customers, but delivery of a profitable product depends on the efficiency and quality of production.' (c) http://businesscasestudies.co.uk/business-theory/operations/market-and-product-orientation.html
So in reality, market and product orientation are closely intertwined and the good example is Apple Inc.




I think that it is easy to find a great amount of good illustrations of the market orientated companies in the fashion industry. Thuswise, I would like to corroborate above with the example of Zara.
Why do I think that Zara is a good example ?
Because this business is run according to customer needs, consequently, the company tries to please customers first of all in different ways and there are lots of evidences of it.
  • 'The customer is at the heart of our unique business model' (c)  is told on their official web site.
  • eco-friendly company (nowadays it is very attractive and important for many customers)
  • they use ecological fabrics ( e.g. good for allergics and children)
  • affordable prices 
  • latest trends (e.g. Zara's supply chain allows to design, produce and deliver clothes in 15 days and the collections are regularly renewed)
  • variety of convinently located stores (There are a total of 1,671 Zara stores)
  • high quality
  • advertisement (e.g. some famous people were faces of the company) 
 In conclusion, I found really interesting and cognitive video describing the unique business model of Zara (I am sure that it will be useful for you to watch it not only for the outlook development but also for the Supply Chain Management course)

1 comment:

  1. A good video, which every student should watch!
    If you aren't Zara you need to rely on " the pointless distraction"

    ReplyDelete