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What are the advantages and disadvantages of product orientation?

What are the advantages and disadvantages of product orientation?

PRODUCTION ORIENTATION

  • Advantages: Economies of scale, efficiency, low cost to customers.
  • Disadvantages: Disregards customer needs, set-up costs are usually high.
  • Advantages: Focus on quality, innovation, skills development/outsourcing.
  • Disadvantages: Potential missed market opportunities, obsolescence.

What are the possible disadvantages of a market orientated business?

Disadvantages of a Market-Oriented Strategy An excessive focus on addressing the needs and desires of consumers reduces the scope for innovation in an organization. Consumer desires are not fixed and can change very rapidly. A standalone market-oriented strategy cannot guarantee a huge market share.

Why was the product-oriented presentation ineffective?

The product-oriented presentation becomes ineffective in the case of a new or emerging product. In the case of steel chairs of company PHW, potential customers were unaware of the product, thus could not collect information related to it.

What is a product-oriented business?

Product orientation definition When a business takes a product orientation approach, it focuses on its product or service’s quality and performance. This sounds similar to the production approach, but the main difference lies in the customer’s involvement.

What are the disadvantages of product orientation?

Product Orientation Disadvantages

  • The customers may not be interested in what you’re selling.
  • If you don’t have an established reputation, customers may not trust you to deliver the goods.
  • Product-oriented companies stand and fall on the strength of the product.
  • The R&D costs for an ace product may be steep.

What are the disadvantages of orientation?

The disadvantage of orientation programs is that they limit the information presented to new employees, and neglect to keep employees informed of organizational changes that may have been discussed during the initial orientation sessions.

What does it mean to be product oriented?

a management philosophy, concept, focus or state of mind which emphasises the quality of the product rather than the needs and wants of the target market; the orientation assumes that consumers will favour products that offer the most quality, performance and features and that the organisation’s objectives will be most …

What is the major weakness in the selling orientation and why?

One significant weakness with sales orientation is that this philosophy risks customer confidence and loyalty because often the focus is on influencing or pressuring consumers into buying what they don’t want.

What are the disadvantages to not having orientation for new employees?

Poor Initial Performance. An employee can’t start their job effectively if they don’t have a good foundation of understanding about the company.

  • Lack of Employee Morale.
  • Broken Communication Channels.
  • Higher Turnover or Absenteeism.
  • Best Practice Employee Orientation Tips.
  • Can you think of any disadvantages of employee orientation programs?

    What are the disadvantages of product oriented business?

    Some of the drawbacks include: The customers may not be interested in what you’re selling. If you don’t have an established reputation, customers may not trust you to deliver the goods. Product-oriented companies stand and fall on the strength of the product. It has to be first-rate.

    How does product orientation affect a small business?

    Small businesses often rely on sales, coupons, discounts, contests and other promotions to boost revenues, which some experts say hurt a business in the long run. Taking a product-oriented approach may result in lower sales initially, but once you’re established, you have a more solid customer base.

    What do you mean by product oriented approach?

    When the shift to digital cam Kodak resisted this because of the impact on its “products photo processing”. What is a product oriented approach? Product oriented approach is a business strategy that focuses on its product and on the skills, knowledge and systems that support that product. How about Market Oriented approach in business?

    Which is the best orientation for a business?

    Businesses have many different orientations but the main ones are product and market. Some businesses favor an engineering or selling orientation. Product: You create a great product, confident customers will buy it. Market: You make products only when you know there’s a market for them.