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Wednesday 15 September 2021

Mid Module Assignment (MMA) On Fundamentals of Marketing

 Assignment Question

Marketing Orientation and Product Orientation are, arguably, two opposite ends of the customer orientation spectrum. Write a report that:

Identifies positive and negative aspects of each approach and draws conclusions as to which of the two approaches is the most appropriate for long term business success, explaining your rationale clearly

Suggest, using examples, what steps a business may take to adjust its orientation and what challenges this may create

You should choose one of the frameworks covered in this module to help you, for example, STEEPLE, SWOT, or the Ansoff Matrix.

Your response should be in the form of a written report between 1,500 and 2,000 words.

Solution: 

Executive Summary

This report focused on the discussion of marketing and product orientations which are debatably opposite ends of the organization or customers orientations spectrum.  The main objectives of the reportare to pinpoint the advantages and disadvantages of both approaches and summarize on the best approach that would help organizations to realize long term objectives.  The report used secondary sources of data such as the internet, e-library, e-journals, e-books and wider reading from previous authors and writers. SWOT framework was adopted for analysis.   The report concluded that customers are the focal point for every business and their needs must be met through adopting the best organization orientation.

1.0 Introduction 

Every business has its objectives which are the core motivation behind the activities of the business.  Market orientation concentrates on building strong relationship with customers and competitive advantage in order to gain more market share(Yang, 2013).  Marketing orientation hinges on knowing consumers’needs andways to meet these needs (Naidoo,2010).Conversely, Product orientation concentrates on products with best features, quality and functionalities(Crittenden, Ferrell &Pinney, 2010).   This work focuses on analyzing marketing and product orientation pointing out the benefits and disbenefits of both to arrive at a conclusion concerning the best which can assist organizations attain long term business success and performance. Furthermore, the report will explain how organizations can amend their orientation and assess their challenges in order to overcome these challenges.  Finally, this report adopts SWOT analysis as a framework and tool for analysis. 

2.0 The Conceptual analysis 

2.1 Marketing and Product Orientation

Customer is a king in the business world and the keen competition to get their loyalty has necessitated various organizations to concentrate on understanding consumers’  needs and ways to meet these needs(Wang, 2015). Therefore, there has been need to channel efforts on products development with features and quality to become a vital part of people’s lives which could results to customers loyalty. Hassanqulipour, Ansari,  &  Elahi (2012) maintain that there is an increasing clarion call on organizations to demonstrate sustainability, Corporate Social Responsibility and Corporate culture that enhances the values and create mutual beneficial relation between customers and the organization. 

Several companies have targeted to attain these objectives throughlooking back to the consumers and examining factors that have significant effect on consumers’ preferences and purchasing history in order to collate information which could be of immense importance to developing qualities and functionalities, thus bridging the gap in customers’ needs (Naidoo, 2010). 

Pertinently, there are companies who have adopted product focused approach concerning building their products, such as enhancing the functionality and features for uniqueness, hence allowing the product to sell itself.  Such organization are automobile manufacturers, mobile phones and computer manufacturers and so on (Kumar, et al., 2011). 

The concept of marketing orientation is aimed at attaining the customer’s value and to create a lasting relationship of trust with the products in the minds of customers to use and enjoy the entire experience (Geraghty,2015).  On the other hand, product orientation concept is concentrated on building quality products with little or no input from the potential customers with the four Ps in mind. Companies varies when it comes to products and services and also how the customers can be involved in the entire exchange process (Cook, 2012).

2.1.1 Marketing Orientation

Advantages:Marketing orientation leads to creating company’s cognitive components.  These components comprise of customers, shared beliefs, knowledge and skills, which are domicile in the collective knowledge system (Han,  Ha,  & Jang, 2018). Marketing oriented companies are flexible in nature given the dynamic busines environment that cause organizations to make changes. 

Other advantages of the marketing orientation according to Geraghty (2015)include;

i. It allows the organization to gain customers loyalty through satisfaction the derived from their products 

ii. Feedback gathered from customers would be used for long term improvement and development of strategy and products 

iii. It helps organization to be flexible in production based on the needs and tastes of customers  

Disadvantages:

Staff of marketing-oriented companies must carry out marketing activities which requires skills, qualities and in-depth knowledge of the company objectives.  Consequently, there would be pressure on the organization to recruit potential workers with such skills and train them in order to deliver customer centric services (Geraghty, 2015).   Other disadvantages as pointed out by Ahmadi (2012) include expensive cost  in market research, frequent internal adjustment which may be disruptive and future uncertainty in the external marketing environment.  Ahmadi stated further that  the dynamic nature of the external marketing environment poses a challenge on  what the next step to take owing to the dependence on customers and environment surrounding them.

Finally, lack of cooperation among various department in organization and focus on personal interest is a disadvantage that has significant effect on marketing-oriented companies (Wang, 2015).

2.1.2 Product-Orientation: 

Advantages: 

Organizations that are product oriented could produce  products that proffer solution to human’s health challenges and needs  (Lee, et al., 2016).  For instance, in this Covid19 Pandemic, various product oriented companies have invented automatic hand sanitizers and robotic that can identify if people are maintaining social distancing in places like Airport.  

“Confederated Facilitators Limited (CFL), a renowned  facilities management and marketing firm in partnership with its British counterpart launch a ‘fast result-oriented medical test kit’ into the Nigerian market for testing Covid19”(Iniobong, 2020, p.1). Other advantages of adopting  the product orientation methods comprises of eradication of costs that would have been used in determining customer preferences, allows an organization to put full concentration on a product hence providing nothing but quality, and the simplification of the production process simplified (Han,  Ha, &Jang, 2018). 

Disadvantages:

Organizations that are product oriented  may have a tough challenge with  competitors that produce same product line which may result in fierce competition for market share and customers loyalty. In addition,  obsolescence of products through a change in technology and other market factors can lead to the downfall of an organization (Wang, 2015).  In addition, globalization which has integrated nation’s economies and business pose a threat to product oriented companies in form of substitute goods or products that consumers may prefer owing to price variation. 

Finally, external business factors have necessitated product oriented organizations to be 

supple and reactive to every changing market environment in order to thrive which has been major challenges to several organizations (Wang, 2015).

3.0 Comparing the suitable approach among the two orientations 

Depending on the marketing situation, both marketing and production orientation are suitable approaches.   However, there are various elements such as industry, size and market condition which determine the approach an organization has to adopt (Hassanqulipour, Ansari, &  Elahi, 2012).  Nevertheless, marketing orientation is broader as it takes into cognizance, consumers preferences, culture, values and so on that could essentially affect the company and customers mutual relationship.  Furthermore, it builds experiences about the market that allows an organization to forecast the increasing needs of consumers (Yang, 2013). 

According to Geraghty (2015), marketing orientation is better suited for organization as it present an organization with opportunity to understand the consumers better in order to satisfy their needs. Han, et al., (2018)maintain that  market orientation helps organizations to build loyal consumers that leads to increase in market share.  Therefore, it is most suitable approach for any organization that would want to compete effectively (Han, et al., 2018). Lee,  Yu,  Dong,  &Hwang,  (2016)  allude that marketing orientation places the consumers at the focal point of the business as a matter of necessity rather than a choice to ensure that the organization thrive in the ever changing business environment. 

Although  product oriented organizations  could produce  products that proffer solution to human’s health challenges and needs as early stated by  Lee, et al., (2016), a tough challenge with  competitors that produce same product line may result in fierce competition for market share and customers loyalty. In addition,  obsolescence of products through a change in technology and other market factors can lead to the downfall of an organization (Wang, 2015).  In addition, globalization which has integrated nation’s economies and business pose a threat to product oriented companies in form of substitute goods or products that consumers may prefer owing to price variation. 

In summary, marketing orientation approach is suitable for the following reasons;

i. The approach helps organizations understand consumers needs and satisfying the needs

ii. Putting the consumers at the focal point of the organization which results to building long term relationship and loyalty 

iii. Increasing market share as a result of consumers loyalty. 

4.0 SWOT analysis

This work adopted SWOT as a framework for further analysis.  The SWOT is an acronyms which stands for Strengths, Weaknesses, Opportunities and Threats. 

i. Strengths:  Resilience could be built through flexibilityby Marketing oriented organizations.  Organizations that are market oriented could further enhance their relationship with customers for long term and build partnership and communication between functions, essential information, health cultures, harmony among workers and react positively to changes in business environment. 

ii. Weaknesses: weaknesses could stem from poor policies, channelling resources to the wrong projects and lack of effective collaboration among departments.  However, marketing oriented organization could resolve this by acting proactively. 

iii. Opportunities: Tremendous opportunities abound for marketing oriented company as it could forecast the needs of customers in the future, thus proactively proffering solutions to these needs.  Consequently, competing effectively among competitors, attain higher market share and profitability for shareholders. 

iv. Threats: Changing business environment pose a threat to marketing oriented companies.  Furthermore, emerging technologies which have caused disruption has significant risk on marketing-oriented companies. 

5.0 Steps for a business to adjust its orientation 

In modern times, organizations are aware of consumers needs and how to satisfy them than ever. Several organizations are customer-centricity in order to foster a positive customers experience at all stages.   However, for an organization to adjust its orientation, it has to do the following as suggested byCook  (2012);

1. Forestall Customer Needs:  According to Cook  (2012), organization that wants to amend its orientation must forestall customer needs and meeting those needs in order to create mutual beneficial relationship between the customers. 

2. Collate Feedback from   Customers:  Gathering of information from the customers can go a long way for organization to adjust its orientation appropriately.  It is essential to know what the consumers want and what they are saying concerning the products.  This will assist in making the required adjustments (Cook, 2012).

3. Offering services and products to Customer Proactively 

To adjust organizations orientation, there is need to offer the customers what they need proactively.  Effective and efficient customer services is the key to resolving customers problems, gaining their trust and loyalty (Cook, 2012). Therefore, organizations need to be effective and as well efficient in service and product delivery to their customers. 

6.0 Challenges, companies might experience adjusting their orientation

There are several challenges that companies might experienced in an attempt to adjusting their orientation.  

These challenges may stem from within the company or outside the company. This section of this report discusses some of these challenges below;

i. Resistance from both Employees and Customers:Change or adjustment always come with resistance.  Therefore, in a bid for organization to adjust their orientation, they may encounter resistance from employees and customers who are used to the old methods (Han,Ha,  & Jang, 2018).  Although the change is for good, for a while, it may be resisted before the adoption by all stakeholders. 

ii. Change comes with a cost:  Every change both good or bad comes with a specific cost either monetary or non-monetary.  For an organization that wants to adjust its orientation, there would be some costs associated with this adjustment such as loosing some of the customers to competitors, investing hugely to meet the standardsof the new change financially such as research and development and recruiting new employees or training old ones to meet with the new orientation(Ahmadi, 2012).

7.0 Conclusion:

This report has discussed marketing and product orientation pointing out the benefits and disbenefits of both to arrive at a conclusion concerning the best which can assist organizations attain long term business success and performance. Furthermore, the report explained how organizations can amend their orientation and the challenges the face in doing so.  Finally, this report adopts SWOT analysis as a framework and tool for the analysis. 

In summary, every business has its objectives which are the core motivation behind the direction and activities of the business.   However, the customers are the focal point for every business and organizations must strive to satisfy customers’ needs through adopting the best organization orientation  in order to gain higher market share. 


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