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Product Orientation, Market Orientation and Asset-Led Marketingwww.Ngfl-Cymru.Org.Uk/Product Led-2.Pdf

By | October 2012
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WJEC BUSINESS STUDIES A LEVEL RESOURCES. 2008 SPECIFICATION
Product orientation, market orientation and asset-led marketing. When a business bases it's marketing mix on what the business sees as it's internal strengths, the business's marketing is said to be 'product orientated'. When a business bases it's marketing mix on it's perception of what the market wants, the business's marketing is said to be 'market led', or 'market orientated'. Asset led marketing uses product strengths such as the name and brand image to market both new and exist- ing products. With asset led marketing, Marketing de- cisions are based on the needs of the consumer and the assets of the product As a starting point all businesses must base their products on their internal strengths but also they must relate the knowledge they have of the market to these strengths. This means adapting and using the business's assets such as labour skills, available capital, and reputation, to meet market demand. As the firm grows it might find that it wishes to go further than this and actually structure the future use of all factors so that the way the business operates and what it produces exactly meets changing market demand patterns. When this is done the business is truly market orientated. Product orientation.

When a business is product orientated, it will base its products or services on what it perceives as its internal orgainisational strengths. Firms with a product orien- tated approach to selling, try to sell whatever they can make, without trying to find out if it's what the cus- tomers want. Sony grew hugely successful using this policy, and became famous for this approach. The most clear example was the Walkman, launched in the late 70’s, marketing professionals said it would not sell because it had no recording facility—a generation of teenagers proved them wrong. A more up to date example is Apple, the iPhone being the latest in a long line of product led launches. Being product...
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