Product Orientation: Definition, Benefits and Elements

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.

In the line of business, marketing focus decisions are inevitable. While a company can use a variety of marketing techniques, they should be in keeping with the objectives, organizational structure, and capabilities of the company. Businesspeople can select between market orientation, product orientation, production orientation, and sales orientation with the assistance of business strategists. Once you are aware of what each marketing strategy entails and how the market will react to it, you should proceed. Although the concepts are closely related, they have differences.

This is a company’s emphasis on a product that guarantees the best possible effort is made to ensure quality and optimal performance of a product. The business makes significant investments in product research and development to make sure the product sells itself. It also believes that as long as the product is high-quality, people will buy it. It, however, does not focus on what the customers need. To achieve this, fundamental tools used include:

Product & Market (Customer) Orientation

Benefits of adopting product orientation

A company may gain from adopting a product orientation in the following ways:

Workplace satisfaction

Working for a company that prioritizes its products may inspire its employees to pursue excellence in product design. When everyone in the organization is focused on the same objective, it can inspire workers to exceed expectations and develop new working techniques. An outdoor gear manufacturer with a focus on products, for instance, might place a premium on design and construction quality throughout every stage of production, from sourcing materials to packaging. Working together to produce a high-quality product may make product designers, assembly workers, and logistics specialists proud, especially if the product upholds the company’s reputation.

Customer loyalty

Companies that focus on their products may develop a core of devoted clients, which can help ensure repeat business. For instance, if a watchmaker adopts a product orientation, the management and designers of the business may concentrate on making artisan timepieces from distinctive materials, such as reclaimed driftwood or antique leather. Customers who value the watches’ superior engineering and design may buy more than one item, suggest them to others, or buy gifts for their friends and family. They might also spend more money on a watch from the business if they have faith in the quality of the goods.

Emphasis on innovation

When a company’s leadership chooses to pursue a product orientation, they typically devote a sizable sum of money and resources to R&D. While a product-oriented company’s research is focused on enhancing their chosen product, the emphasis on innovation can result in new opportunities and additional research discoveries. For instance, a company focused on producing electric cars might have a team of scientists working hard to increase the battery life of the company’s vehicles. They may discover new scientific developments during their research that will enable the business to diversify its renewable energy sources.

What is product orientation?

A business strategy known as “product orientation” concentrates on a company’s products to represent the brand. It’s a form of “market orientation,” in which businesses prioritize the needs of customers over other considerations. Business executives who focus on products frequently make significant investments in R&D for new products and product lines. To make their products better, they may also rely on customer feedback. These businesses view their products as potential customers’ representations of their brand values. Product-focused businesses operate in a variety of sectors, including technology, consumer goods, and personal care products.

Challenges of adopting product orientation

A company may face difficulties as a result of a product orientation in the following ways:


Adopting a product orientation can be particularly beneficial for businesses with distinctive products because it allows them to carve out a specific market niche through a focus on product quality. If other businesses produce comparable goods, that niche market might provide less revenue for the business. For instance, if a company that makes fashion jeans develops a reputation for high quality and style, their market share may decrease as a result of the expansion of another company that makes fashion jeans in a similar vein. Some business owners reduce this risk by stepping up their marketing initiatives to set their product apart from competitors’ offerings.

Slower market growth

Product-focused businesses put a lot of effort into making goods that appeal to and satisfy customers, so it might take some time before their brand develops the positive reputation that could result in higher profits. For instance, a company that makes coffee mugs might raise money to create a new type of thermos out of recycled materials. Their product may not become the coffee drinkers’ first choice for months or even years. These businesses may also invest time in limited product launches that enable them to gather feedback and enhance the product line as they frequently rely on consumer feedback to improve their products.


Product-oriented businesses in the technology and life sciences sectors may highlight the innovative features of their products, but this emphasis on innovation may necessitate the company’s regular release of new products. As technology advances, a business might face more rivals in its market niche. Using the sale of cutting-edge smartphones and tablets as an illustration, a technology company could establish its reputation as being technologically superior. The company’s engineers may frequently release updates and new versions of the devices in order to maintain the brand’s image, which could result in financial loss.

Elements of product orientation

Here are some key elements of a product-oriented approach:

Research and development

Companies with a product orientation frequently have strong research and development departments to guarantee that their product attracts and satisfies customers. The type of researchers these businesses use typically varies by industry A personal care product company might hire biochemists, medical researchers, and lab technicians, while product-oriented technology companies might have teams of software engineers, coders, and application developers. Some businesses involve their research and development teams in marketing campaigns for new goods and services, highlighting their teams’ in-depth industry knowledge.

Quality assurance

Product-oriented businesses frequently have sizable quality assurance departments to ensure that products meet high standards. Professionals in quality assurance evaluate the design and functionality of products. For instance, a quality assurance team for a manufacturer of fitness equipment might choose random products from each batch and test them to see if they accurately measure heart rate, count steps, and carry out other tasks. They might also affix a batch stamp to the product, guaranteeing its quality.

Brand recognition

Product-focused businesses can succeed even more when their brand is recognized as a mark of excellence in the marketplace. The development and marketing teams in these businesses may develop a style guide for products, packaging, and promotional materials in order to guarantee that customers can recognize their products quickly and easily. That way, the company presents a unified image to customers. For instance, a company that sells personal care products might use the same color and font on all of its products, logos, and website. As the business grows, users may come to associate the brand with quality.

Consumer feedback

Customer service representatives from businesses that focus on their products may solicit feedback from existing clients about the brand and product in order to help the company’s product developers improve the product. Companies may also ask consumers for feedback on brand-new goods or services. For instance, a manufacturer of premium hiking shoes might survey its current clientele to determine whether they would prefer hiking sandals or rain boots. These businesses rely on customer loyalty, so they may use these new products to entice existing customers to purchase more goods.

Long-term planning

Product-focused business leaders may establish long-term objectives that enable their products to gain popularity and draw customers. These businesses may take longer to achieve widespread success than those that prioritize sales or other metrics. As the company launches its first line of products, the leadership board of a new watch company, for instance, might set lower growth goals for the company’s initial years of operation. The company’s leaders may raise growth targets after developing a successful product line.


What is product orientation with example?

Example of Product Orientation The Gillette Company strives to make the best disposable razors at a competitive price. They differentiate their products as a result with high-quality razor blades, user-friendliness, and sensible pricing.

What is product orientation simple?

An approach to business that emphasizes the value of having a good product and production process is known as product orientation. In the post-industrial information age, companies’ priorities have changed from product orientation to knowledge orientation.

What is the purpose of product orientation?

Focusing on producing and providing high-quality goods and services is one benefit of a product-oriented approach. Innovative products that focus on providing the best user experience. Better market research leading to a reduced risk.

What are the 4 types of orientation?

There are four types of strategic planning and company orientation that aid in defining a business. The four are production, product, marketing and sales orientation.

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