Market Orientation Flashcards
(3 cards)
1
Q
What is Market Orientation?
A
This is focusing on Wants and needs through market research to develop a product
2
Q
Benefit of Market Orientation? (7)
A
- Involves focusing on Wants and Needs
- Based of Consumer Trends and market research
- Can produce products with high sales volume
- Benefit from Marketing Economies of Scale
- Market Research can be spread over more units
- Lowering fixed cost per unit
- Increase Revenue and Profit to reinvest into further market research
3
Q
Drawback on Market Orientation? (9)
A
- High amounts of investment into market research
- Eg. Questionnaires etc from a large sample
- To find out Wants and Needs
- However is expensive and increases outflows
- Lower net cash flow
- Reduced cash reserves
- Poor Liquidity (acid test ratio)
- May be unable to pay day to day bills
- Forced to sell non current assets and unable to operate
