Market Orientation

An approach to marketing that bases its decisions on customers needs. Carries out market research to create its product.

Market Orientation (Advantaged/Disadvantages)

Advantages: - business have an increased confidence that products will sell well - a business can respond a lot quicker to changes in the market - can challenge new competitors Disadvantages: - can be expensive to carry out market research - can be time consuming - changes in customers needs/wants frequently, hard to meet everyones needs

Product Orientation

An approach to marketing that focuses on what it can produce and hopes the customers will like it. Innovative products that can tempt consumers

Product Orientation (Advantaged/Disadvantages)

Advantaged: - High quality products - Succeed in markets where change is slow, and business has a good reputation - Has control over its activities Disadvantages: - Very risky because no market research is done - Can be costly if product fails - Only good in some industries

Market Share

This is the percentage of one firms share of the total sales in a market

Market Growth

The percentage change in the market size over a given period of time. Based on either market volume or value

Market Leadership

When a business has the largest market share in a given market

Market Leadership (Advantaged/Disadvantages)

Advantages: - Able to advertise that they have the most popular product in the market - Can negotiate and bargain with supplies and banks - Recruitment of high class employees Disadvantages: - Puts pressure on business to preform at the highest standard - The media often scrutinize the market leaders and seek out mistakes - Market share does not mean increases in profabiltiw or sales- expensive to maintain