Market Orientation A complete overview

June 30, 2021

Market orientation refers to a business strategy that emphasizes the identification of consumer needs and desires and creates products and services that fulfill them. Market orientation is a way for companies to consider the needs and opinions of their target audience when developing new products.

While it might sound obvious, advocates of market orientation believe that the traditional approach for product innovation is not the best. Market orientation advocates that marketing strategies should be focused on creating key selling points for existing products and not designing products that consumers desire.

What does Market Orientation look like?

Market orientation refers to a more holistic approach to product design and less about promotion. This means that marketing and sales activities should be avoided in favor of analyzing the target audience. When creating and updating the product offerings, we keep these needs in mind.

Market-oriented companies adopt a customer-centered approach. This means that they must research the most pressing concerns, needs, and preferences of their consumer base.

The strategy should be based on values, culture, or other characteristics of the consumer base. Therefore, development efforts are focused on those characteristics that the organization most commonly demands. This allows companies to adapt to changing markets and increases their competitive advantage.


Advantages of a Market-Oriented Strategies

Consumers are often in tune with market trends and can identify their desires and needs. Data analysis can uncover trends and desires that may not be obvious. It can help you anticipate consumer needs and adapt your market-oriented company so that it shapes rather than reacts to them.
Although consumer demands may seem impossible to meet, their knowledge can help in long-term decision-making. Even if the status quo is not cost-effective, ideas can still help change market conditions. These marketing concept can be used to develop long-term strategies and competitive advantage.
Post-launch, data collected to develop products can be used to improve customer service. It is crucial to maintain high levels of customer satisfaction by providing efficient product support and addressing any concerns that consumers may have. It increases brand loyalty and word-of-mouth advertising by existing customers.

Market-Oriented Strategies: The disadvantages

Excessive focus on the needs and wants of consumers can reduce the potential for innovation within an organization. Market orientation is about reacting to market trends and not creating them.
Consumer desires are dynamic and change rapidly. Market-oriented strategies alone cannot guarantee large market shares, as rival companies can quickly enter the market to meet the same consumer demands.

Real-World Examples Of Market Orientation


Amazon consistently modifies the virtual marketplace, adding features to address consumer concerns. The rating and review system that an online retailer uses to increase its credibility is one example.

The company created Amazon Prime to reduce delivery fees. The company also launched Amazon Prime to address delivery charges.


Coca-cola has another company that is well-known for its market orientation. Research is done to identify new flavors that consumers like, such as wild strawberry or lime. Coca-Cola’s new flavors will not help it address consumers’ growing health consciousness. The company bought brands¬†such as Dasani, Honest Tea, and Smartwater.

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