What is Market Orientation? How, Pros & Cons, Examples 

Businesses and companies employ various strategies and techniques to gain a competitive edge and stay ahead of competitors. Today, we’ll discuss what is market orientation; how it works, advantages, disadvantages, and examples.

What is Market Orientation? 

Market orientation is a strategy that companies employ to recognize the needs and wishes of customers; they develop products and services to meet their demands. The key element of research and development for companies that employ a market-oriented strategy is to pay heed to the needs, wishes, and feedback of target customers about the latest product.

For the success of the market-oriented approach, companies should have a deep comprehension of the needs and wishes of the target customer market. It means that the company should divide the target market, recognize the most profitable segment, and put all the focus and efforts on growing and profitable efforts. The company has to maintain its perception in the market that it offers them the best product that satisfies their needs.

How Market Orientation Works 

Market orientation is a customer-focused approach and it focuses on comprehending the needs and wishes of customers and offering them the most relevant product and service based on their needs. The marketing-oriented approach comprises of following steps;

Market Analysis

Market research comprises collecting information about your target customer market, and analyzing it for further processing. It is very useful information and you can use it in market segmentation, identifying the most lucrative segments, and creating the brand perception in the minds of target customers.

Segmenting Market

It comprises grouping and dividing the target customer market into smaller and more manageable segments. You can categorize those market groups in various ways based on behavioral, psychographic, geographic, demographic, and other traits.


After dividing the market, next the business should recognize the type of segments it should target. When it comes to targeting particular market segments, then it depends on various factors like the capability of the company to approach the segment, the profitability of the segment, and the size of the particular group.

Differentiated Offer

It is the process of developing a unique and different image of the company that would stay in the minds of customers. Usually, the image is based on the needs and wants of customers, and it should do exactly the same so that the company would meet their needs better than competitors.

Advantages of Market Orientation 

Some of the main advantages of market orientation are as follows;

Develop Unique Image

It allows businesses and companies to develop a unique brand image and recognition that would stay in the minds of target customers for quite some time. The image or perception should be relevant to the needs and wants of customers.

Most Relevant Product

Companies learn key insights about their customers and the type of product or service they want. This information helps them a lot in developing the product or service that would satisfy the wishes of customers

Focus On Marketing

When companies divide the market into various segments, it helps them to change their focus on other marketing efforts. The grouping of the market allows companies to focus their marketing efforts on the most approachable and profitable market segments.

Customer Satisfaction

When you develop a product or service that would meet the needs and wants of customers; it would satisfy their wants and increase their satisfaction level. Happy and satisfied customers play a significant role in the success of the company in the long term.

Disadvantages of Market Orientation 

Some of the main disadvantages of market orientation are as follows;

Customer Preferences

The thing about customer market trends is that they are always changing; keeping up with the pace of customer market trends is difficult and it requires a lot of investment. When you are always catching up with the trends, then you never know whether you’re marketing your offer to the right type of people or not.

Limited Innovation

The focus of marketing oriented approach is to focus on the needs and wants of customers, rather than developing an innovative and creative product. When companies overly focus on satisfying the needs and wishes of customers, they tend to have lower innovation and creativity levels in their product development.


When companies just develop a product that only satisfies the demands of customers, then your competitors could copy your idea and offer them the same service. It is because you have not made your product unique and differentiated along with satisfying customers.

Examples of Market Orientation 

Coca Cola

Coca-Cola is the world’s leading soft drink brand, and the company is following a marketing-oriented approach. The soft drink brand is always in search of new flavors to keep its customers intact and it has recognized lime and strawberry flavor. In fact, the company bought other brands for the same objective like Vitaminwater, Minute Maid, Simply Orange, Smart Water, Honest Tea, and Dasani.


Amazon is a leading e-commerce platform. The company always offers some type of offers to its customers to keep them attached. Its offers are free delivery, gifts, discounts, cashback, and other offers.

Conclusion: What is Market Orientation? How, Pros & Cons, Examples 

After an in-depth study of what is market orientation; how it works, and its advantages, disadvantages, and examples; we have realized that marketing oriented approach is significant for the growth of your business. If you’re developing your marketing-oriented strategy, then you should keep in mind the abovementioned guidelines.

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