What are the Product Orientation and Consumer Orientation Concepts

Marketing is understood to mean the sale and purchase of goods and services but it is wrong to understand it so. The term marketing is very wide. It does not mean only the sale and purchase of goods and services.

what are the product orientation and customer orientation
what are the product orientation and customer orientation?

For convenience, the concepts of marketing may be divided into two parts: First, the old concept of marketing or product-orientation concept, and second, the new concept of marketing or consumer-orientation concept.

It means the entire process of satisfying the needs of consumers.

It starts with the discovery of the needs and wants of the consumers and it continues till these needs and wants are satisfied.

To understand the meaning of marketing clearly, it becomes necessary that different concepts of marketing must be understood.

The details of these two concepts are as follows:

What is the Product Orientation Concept of Marketing?

This is the classical concept of marketing. According to this concept, marketing is a part of the production process.

This concept is based on the assumption that the manufacturer must produce the goods and distribute them to the consumers.

He need not bother about the choice of the needs of the consumers.

This new or product orientation concept of marketing stresses upon Product only.

It does not consider the choice, needs, wants, or behavior of consumers.

According to this concept, marketing is only the physical distribution of goods and services from producer to consumer.

Therefore, this concept is known as the product-oriented concept of marketing.

This concept is not a practical concept nowadays because it does not include many important activities that are necessary for the success of marketing.

Characteristics of Product Orientation

Following are the features:

  1. It stresses upon production.
  2. It assumes that marketing is only the physical distribution of goods and services from producer to consumer.
  3. It assumes that marketing starts after the goods have been produced and it ends after the good has been sold.
  4. It does not provide for any allied activity of marketing such as transportation, and warehousing, insurance, financing, etc.
  5. According to this Product Orientation, the ultimate object of marketing is to maximize profits by maximizing sales.

Consumer Orientation Concept of Marketing

The new concept of marketing is a consumer orientation concept.

This concept is based on the assumption that a business and industrial enterprise can achieve its objective of maximizing the profits only when it considers the needs and wants of its consumers and it tries for the satisfaction of these needs and wants.

Therefore, according to this concept, marketing starts with the discovery of the needs and wants of consumers and ends with the satisfaction of these needs and wants.

This concept believes that marketing begins and ends with customers. It stresses that a business and industrial enterprise stands only for the customers.

The satisfaction of consumer needs is the only way of success.

What is customer satisfaction and why it is important?

This consumer orientation is based on earning the profit through the satisfaction of consumers.

Characteristics of Consumer Orientation Concept

  1. According to this concept, the consumer is the king of the market, and his needs and wants are the goals of the business activities.
  2. Marketing is the entire process of understanding and satisfying the needs and wants of consumers.
  3. Under this concept, first of all, the needs and wants of consumers are discovered, then these needs and wants are converted into goods and services: then demand is created for these goods and services; then these goods and services are physically distributed from producer to consumer and after-sales services provided so that the needs of Consumers may be satisfied in a most effective manner.
  4. This concept assumes that the object of earning the profit can be achieved only when the needs of society are satisfied.
  5. According to the consumer orientation concept, marketing is the creation and delivery of a standard of living to society.

Importance of Consumer Orientation Concept

The importance of the consumer orientation concept of marketing may be described as under:

1. Helpful in Product Development

The new concept of marketing is very helpful in the discovery and development of new products because this concept is based on intensive research regarding the needs, wants, and behavior of consumers.

Based on such research, the Businessman always tries for newly developed products so that he may produce and increase the demand for his product.

Thus, this concept results in the development of products.

2. More Social Satisfaction

The consumer orientation concept of marketing stresses the satisfaction of the needs and wants of consumers.

It starts with the discovery of consumer needs and every activity of a business and industrial enterprise clusters around these needs.

Under this concept, the concept of standard quality is provided to the consumers at reasonable prices, at that time and place most suitable to the consumers through channels of distribution most convenient to the consumers, and the best possible after-sales services are provided.

Thus, this concept provides for greater social satisfaction.

In fact, it creates and delivers the standard of living to society.

3. Important Towards National Economy

The new or consumer orientation concept of marketing is important not only from the consumers and producers point of view but also from the point of view of the country as a whole.

This concept provides more employment, Makes maximum exploitation of the resources of the country, restricts the wastage or to the minimum, and up gears the industrial production.

It provides more and new goods and services to society and increases the standard of living.

Thus, this concept of marketing is very helpful in the overall growth and development of the country.

On the basis of discussion, it can be concluded that the importance of the new concept of marketing is increasing day by day and it is meeting that object of social welfare and progress very effectively.

Difference between Product Orientation & Consumer Orientation

difference between product orientation and customer orientation
difference between product orientation and customer orientation

The difference between the old and new concept of marketing can be easily understood on the following basis:

1. Orientation

Product Orientation – This concept is product oriented.

Consumer Orientation – This concept is consumer-oriented.

2. Target

Product Orientation – The target of this concept is to earn maximum profits by maximizing sales.

Consumer Orientation – The object of this concept is to maximize the profits through the satisfaction of consumer needs.

3. Contribution in Standard of Living

Product Orientation – It is not related to the standard of living in society.

Consumer Orientation – Marketing is the creation and delivery of a standard of living to society.

4. Starting

Product Orientation- Marketing Starts only after the goods have been produced.

Consumer Orientation- Marketing starts with the discovery of consumer needs.

5. The Satisfaction of Consumer Needs and Wants

Product Orientation – Consider the needs and wants of consumers.

Consumer Orientation – Every business activity clusters around the needs and wants of consumers.

6. End

Product Orientation – Marketing ends with the physical distribution of goods and services.

Consumer Orientation – Marketing ends with the satisfaction of consumer needs.

7. Marketing Research

Product Orientation – It does not provide for marketing research.

Consumer Orientation – It stresses intensive marketing research.

8. Allied Activities of Marketing

Product Orientation – It does not consider any allied activity of marketing.

Consumer Orientation – It considers allied activities of marketing to be its important part.

What is product orientation concept of marketing?

This concept assumes that marketing begins only when the goods have been produced and it ends with the goods have been sold. The product orientation concept is an incomplete, inadequate, and impractical concept of marketing because it is not at all possible for a producer to sell his product without considering the needs and wants of consumers.

Recomended for You:

Leave a Reply

Your email address will not be published. Required fields are marked *