MARKETING
Definition: Marketing is the management task that links the business to the
customer by identifying and meeting the needs of customers profitably (with a
profit).
How does Finance operate with MARKETING
A non-fungible token (NFT) is a financial security consisting of digital data
stored in a blockchain, a form of distributed ledger. The ownership of an NFT is
recorded in the blockchain, and can be transferred by the owner, allowing NFTs to
be sold and traded.
Services – something someone does for you. Having a haircut.
Market orientation - Market orientation is an approach to business that prioritizes
identifying the needs and desires of consumers and creating products and
services that satisfy them.
Product orientation - Product orientation is defined as the orientation of the
company's sole focus on products alone. Hence, a product oriented company put
in maximum effort on producing quality product and fixing them at the right price so
that consumer differentiates the company's products and purchase it.
Both are different ways of bringing product to customer.
Differences between product orientation and
market orientation
A product orientation is an inward-looking form, apart from production
orientation and sales orientation. “Supply creates its own demand,” as Say’s
law.
Companies focus on creating the best possible product under product
orientation, and the market will eventually demand it. Meanwhile, in production
orientation, companies assume consumers buy for reasons of availability and
lower prices.
Furthermore, under the sales orientation, the company aggressively reaches as
many consumers as possible and hopes that some will buy.
The three approaches contrast with a marketing orientation (also known as a
market-led orientation) and holistic marketing. In both approaches, the
company adapts the needs and wants of the customer to create a product.
Thus, the impetus for product creation and innovation comes from external
factors rather than internal factors.
Through market research, companies understand market needs and tastes.
They then develop the ideal marketing mix (product, price, promotion, and
location) for their target market.
Product orientation characteristics
First, innovation is the main focus of product development. Through intensive
research, companies create products with superior performance, quality, and
features (at least according to them). Such a product, in their opinion, will be
attractive to customers.
Second, innovation originates from internal companies. Companies rely heavily
on internal research and development to create products.
Gillette razors are a good example. The company focuses on creating the best
razors and selling them to the market. Its products teach consumers how to find
satisfaction using their products.
Third, this approach is suitable when market demand is higher than supply.
That way, there is a higher chance for the product to be accepted by some
consumers.
Fourth, consumers do not know how to satisfy their lives. In this case, the
company educates them about how they get satisfaction using the company’s
products.
Early computer development is a good example. Consumers may not be aware
of how it can benefit them. Manufacturers then teach them how to use the
computer to make their lives easier. Manufacturers also equip computers with
various software that make it easier for them to perform various jobs and tasks.
Fifth, continuous innovation. Product orientation aims to produce quality
products to generate sales and profits. Companies must continue to innovate to
improve quality.
Product orientation pros
Fewer resources. The company focuses its resources to focus more on
internal research and development.
Cheaper costs. Companies can save on some costs, such as market
research. They don’t spend a lot of time and resources, figuring out what
customers want.
Unique product. Product-oriented businesses continue to innovate to produce
the best products. Indeed, even if the product is unique, it may not generate a
unique selling proposition because competitors offer similar products.
Product orientation cons
Low adaptability. Companies face a low risk of acceptance because they do not
adapt to consumer tastes and preferences in creating products.
Another source of risk is the failure of companies to differentiate their offerings
from those of competitors. Even though the product is superior in terms of
quality, when it doesn’t do it better than competitors’ products, consumers will
not be interested in it. As a result, the company is likely to lose customers when
competitors offer better ones.
Limited innovation. Relying on internal research and development means
fewer ideas. Companies become highly dependent on the ability of their human
resources to produce innovation.
Waste of resources. The company may have tried to develop several
products, but the customer did not buy them. The reason may be that it doesn’t
suit their taste. Or, it’s because competitors are offering better ones. As a result,
resources are wasted because they do not generate sales.