Sales
orientation and product orientation are often
confused with each other. Sales orientation focuses on promoting
sales of a company's product or service through various methods, such as cold sales calling,
discount promotions and special marketing tactics designed to make quick sales. In contrast,
orientation focuses on producing a product that responds to shifts in
consumer demands, such as for grooming products without phthalates, or to improvements in the
product, such as improvements through technological advances as seen with Windows 10.
The greatest strength of a sales orientation
philosophy is the accumulation of immediate short-term sales and customers who
are presented the "best deal," as is familiar when buying an automobile. In contrast,
some strengths of the very different product orientation
philosophy are innovation and development of product
improvements.
Influence is important in
sales orientation. A company may promote a product in order to
create a demand for it. A convenient example is the auto industry where annual sales are regular
part of the sales orientation in that industry.
In contrast, innovation in
product orientation describes the introduction of a new product to
the marketplace, such as a holographic computer or new food product. Product orientation allows
creativity to flow from designers and inventors. Testing follows innovation in
product orientation and includes introducing an innovated product
to determine if the public will demand it.
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. An example of this is
readily seen in the stocks and bonds industry where potential investors receive high-pressure
calls from brokers.
Other weaknesses in
sales orientation are cost and "backlash" reaction. Sales
costs are high to produce different campaigns in different media. Backlash refers to loss of
repeat or new customers due to mistakes in promotion approaches or resistance to the
product.
Market orientation also contrasts with
sales orientation. Market orientation focuses on identifying and
meeting the wants and needs of consumers. These wants and needs may be "hidden" or
"stated" needs, so identifying them can be as important as meeting them.
orientation philosophy is the most common orientation philosophy in business. Market
orientation has strength because the manufacturer is focused on
knowing and meeting the expectations of the consumer.
The biggest
strength in market orientation is that the consumer is the
motivating focus of this philosophical business orientation. Another
strength is that, since branding (brand planning and marketing) is
a significant element in market orientation, the company develops customer recognition,
confidence, trust and loyalty.
The most significant
weakness of market orientation is that it requires extensive
researching, planning and implementation, thus, a large budget and a large force of qualified
employees. This makes the totality of the market orientation a bit more difficult for small
businesses to develop.
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