Product Orientation vs. Market Orientation: What’s the Difference?

Product orientation is a marketing approach whereby a company focuses on a product hence maximum effort is put on quality and optimum performance of a product. On the other hand, market orientation is a business culture that focuses on the satisfaction of the customer.

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Product & Market (Customer) Orientation

What is market orientation?

Businesses that prioritize the needs, wants, and behaviors of their customers are said to be “market-oriented.” Market-focused businesses constantly assess what their clients want and cultivate relationships with them. These companies frequently spend a lot of money on testing or market research.

What is product orientation?

A business strategy known as “product orientation” places a company’s focus on its products. Companies that take a product-oriented approach work to produce the best products or services possible. These businesses also place a strong emphasis on supporting other business initiatives and strategies that are concerned with product or service quality, such as choosing the best price points and carrying out product or service research.

Product orientation vs. market orientation

The following are the main parallels and contrasts between market orientation and product orientation:

Strategy vs. culture

Product orientation is primarily a business strategy used to enhance the quality of a company’s goods or services. Companies that employ a product-oriented strategy work to make their product or service highly effective as well as to highlight the caliber of their offerings to potential customers.

Market focus is typically ingrained in an organization’s corporate culture. Customers’ needs are at the forefront of all business operations and initiatives in a market-oriented company.


Different tools and resources are frequently used by businesses that prioritize product orientation compared to businesses that prioritize market orientation. A company with a focus on products will invest heavily in product research and testing, such as by putting new product materials to the test, holding focus groups, and examining customer reviews of particular goods or services. Market-oriented businesses typically invest more in market testing and research, both of which involve determining the needs of a target market before deciding which specific goods or services to offer.


Organizations may benefit financially and strategically from both market and product orientation. A business that prioritizes its products can cut costs associated with market research and streamline the production of its goods or services. Companies may be able to boost customer satisfaction with a market-focused strategy, which can result in other advantages like brand loyalty.

Potential drawbacks and solutions

A company that focuses on its products may find that its goods or services become dated. Additionally, it might overlook opportunities to market its goods to a specific niche market. Product-oriented companies may want to employ market orientation techniques to reduce these risks, such as scouting out competitors and soliciting more comprehensive customer feedback.

Market-oriented businesses may spend a lot of money on market research. These businesses may also lack continuity in their operations or product offerings as a result of their constant efforts to satisfy potentially volatile customer needs. Making a decision on a regular schedule for market research, such as only doing this research once a year rather than continuously, could be a potential solution.


Different operations or departments within an organization may be impacted by product orientation and market orientation. Teams in sales, marketing, and research and development departments are typically most affected by product-oriented strategies. Given that it relates to company culture, a market-oriented business may discover that this strategy has an impact on all aspects of their operations.

Tips for choosing product orientation vs. market orientation

The majority of businesses employ a mix of product- and market-oriented strategies. These methods can improve the quality of goods or services while meeting customer demands. To achieve your organization’s short- or long-term goals, you might occasionally want to give one of these business orientations priority over the other. When deciding whether to concentrate on strategies related to market or product orientation, take into account the following factors:

Evaluate your organizational goals

Consider your organization’s or department’s current objectives and how a product- or market-oriented strategy might support them. Utilizing product orientation techniques can help businesses that want to lower operating expenses or improve the performance of their goods or services. An organization that is primarily focused on increasing customer satisfaction may choose to invest more resources and time in market orientation.

Think about your strengths

Consider your organizational strength along with areas you might improve. Businesses can improve various facets of their operations with the assistance of product orientation and market orientation strategies. For instance, a company that wants to improve its R&D team might concentrate on product orientation, whereas a company that wants to improve its marketing initiatives might prefer a market orientation strategy.

Assess your resources

Consider your current resources as well as the expense and time involved in acquiring new resources. Before choosing which strategy to use, it’s crucial to accurately assess the resources you currently have or may need to acquire. Both product and market orientation use different resources. For instance, companies with better access to customer research may want to prioritize market orientation, whereas companies with more manufacturing resources may want to prioritize product orientation.

FAQs about product orientation vs. market orientation

Here are some frequently asked questions about product and market orientation and their responses:

What are the other types of business orientations?

Production orientation and sales orientation are the two other major categories of business orientations. Companies that are production-oriented work to cut manufacturing costs in order to sell their goods for the lowest possible price. A business strategy known as “sales orientation” focuses on moving goods and services as quickly as possible in order to generate cash flow.

What are examples of market orientation and product orientation?

Many luxury or high-end brands might focus on product orientation. These businesses place a strong emphasis on providing their clients with goods and services of the highest caliber. Businesses catering to specific markets, like those serving pet owners or farmers, may prefer market orientation. An organization that caters to a niche market aims to comprehend the particular needs of its customers and tailor its goods and services to meet those needs.

Whats the difference between product orientation and production orientation?

Product orientation and production orientation both place a strong emphasis on the creation of products or services. Making the best possible products or services is emphasized by product orientation. Focusing on cost reduction during the manufacturing process, production orientation enables businesses to offer products or services at lower price points.


What is the product oriented and market-oriented business?

Consumer desires come first in market-oriented development, which builds the product around their expressed needs and wants. In contrast to this, product orientation places a strong emphasis on getting customers to understand and appreciate the features and advantages of a specific product.

What is a product orientation?

a situation where a company creates products based on its strengths rather than what customers want

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