The Different Types of Business Orientation and What They Mean for Your Company

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The Different Types of Business Orientation and What They Mean for Your Company

Different business owners adopt different philosophies when it comes to running their company, and these philosophies have a huge impact on the type of business they end up having. Knowing what each business orientation entails can help you determine which one will allow you to provide the best services or products while maximizing your financial gain.

Business orientation refers to the main goal of your business and the reason you started it in the first place. It can help you assess your company’s strengths and weaknesses, evaluate your goals and create strategic plans that fit with your vision of where you want to be. There are four primary types of business orientation: production, product, sales, and market. Each type has its own unique set of strengths and weaknesses; however, each can also be extremely successful if done correctly and strategically.

 

Production

A production orientation prioritizes manufacturing processes and productivity, often at a cost to quality. These are businesses that emphasize productivity over innovation. This type of company prioritizes efficiency, meaning it’s more concerned with getting things done than anything else. A business with a production orientation might streamline its processes by automating parts of its manufacturing process or hiring staff who’ve been trained to work according to stringent protocols.

Under a production-oriented model, all manufacturing processes should be as efficient as possible, while quality is an afterthought. Efficiency can help save costs on operating expenses such as overhead and labor; however, implementing heavy-handed standards in areas like design or materials can lower product appeal and increase customer resistance to new releases—which may lead to short-term gains in return on investment (ROI) but cause long-term damage to your brand equity.

A business-oriented in production will focus on building a product that is useful to their customers. To help these customers, they will research what they want, design a product that meets those needs, produce it to a high standard, then deliver it at an affordable price. The primary concern of such companies is how well they perform in all of these areas. Production orientation has been very successful in business for decades, but may be losing favor recently due to some drawbacks associated with production orientation.

 

Product

The product orientation comes with an emphasis on producing a consistent, high-quality product. And if you’re wondering where those famous brand names came from, now you know. Companies in North America are known to be much more focused on profit than their European counterparts, who are more focused on quality.

More product-oriented companies put most of their efforts into designing products that match customer expectations. These companies will tend to have very few departments: marketing is handled by sales while production focuses on building products that meet or exceed expectations. This is great news for consumers because it means that higher-end products will come at a lower price point than would otherwise be possible—thanks to mass production techniques such as automation and economies of scale.

A product orientation focuses on enhancing products to create better consumer experiences. These companies focus on using research to identify consumer needs and wants, then they build products that fulfill those needs. Sony, Apple, and Google are all examples of companies with a product orientation.

 

Sales

It is a kind of orientation in which companies do not focus on production, instead, they concentrate more on their customer’s needs by offering high-quality products or services. Sales-oriented organizations aim to persuade buyers to purchase their products by using marketing techniques such as sales promotion and advertising. The basic goal is that a company should sell more goods at higher prices than its competitors. A sales orientation is sometimes characterized as being driven by short-term profits rather than long-term gains. Businesses with a sales orientation often employ sales reps who make calls to try to convince potential clients of their value. In some cases, these reps are employees; in others, they are independent contractors hired through contract labor agencies.

In sales orientation, businesses focus on their customers’ satisfaction. Marketing strategies are centered around customer research, segmentation, and analysis of customer needs, customization of products or services to meet these needs, relationship building with customers, loyalty programs that reward customer purchases, maintaining a quality product or service and improving communication with customers. — Sales-Oriented Business Strategy, eHow Contributor. Companies in sales orientation put a lot of thought into what their customers want—and how to give it to them.

 

 

Marketing

Companies with a marketing orientation put a priority on satisfying customers by offering unique products, services, or experiences. Starbucks is an example of a company with a marketing orientation. It focuses on making sure its consumers have good experiences when they visit one of its coffee shops—to create marketing-oriented businesses, and identify what customers want and what motivates them to buy. Marketers believe that it’s important to focus on meeting customer needs because if you don’t, someone else will. In addition to being aware of your own strengths and weaknesses, understanding your company’s business orientation can help you plan for success in new markets. Some companies have been able to find new opportunities by identifying gaps in their existing business models—gaps that may be more appealing to potential customers than their core offerings.

The marketing orientation is all about promoting your product to consumers. Companies who use a marketing orientation make it easy for consumers to choose their products by making sure they’re readily available. Although some people prefer saving money over convenience, most of us want things that are easily accessible. As a result, market-oriented companies tend to stay on top of supply chains and follow trends closely in order to capitalize on changes as quickly as possible.

Cost

When a company has a cost orientation, its goal is to keep manufacturing costs low. Cost-oriented businesses focus on cutting unnecessary expenses without sacrificing quality or driving away customers. The most successful companies in any industry will often be cost-focused because they’re able to produce products more efficiently than their competitors—and that efficiency translates into increased profits. If you own a business with a strong cost orientation, it’s important to maintain an open line of communication with your employees about ways you can cut back. If your workers feel like you’re not taking steps to cut back when times are tough, they might start looking elsewhere for work; plus, if you have employees who aren’t as engaged as they could be with your business strategy, there might be room for them at other organizations where they can make an impact.

 

Employee

Employee orientation is a great way to teach new hires what it’s like to work at your company. The goal of any orientation is to foster loyalty in new employees by answering their questions, familiarizing them with policies, giving them an overview of their benefits package, and setting expectations. By taking time to do these things during orientation, you can set new hires up for success while they get acquainted with your company. business start-up: You’ve decided to launch a business! Great decision! But now what? If you’re just starting out, chances are that you don’t have much money or experience. However, that doesn’t mean that launching a business is impossible—in fact, today more than ever before, entrepreneurs are able to create successful businesses without large investments or loads of experience.

 

Society

While society orientation can benefit consumers, it doesn’t necessarily produce anything beneficial to them. Companies that care about societal marketing will often offer things like green products, recycling programs, or socially responsible ways to use their goods. This strategy may increase sales in a way—if consumers see your company as being socially responsible, they might be more likely to purchase from you—but it doesn’t necessarily benefit society at large.

The societal marketing approach isn’t all bad, though; companies using a society-oriented approach have been able to have a real social impact.

Companies that view their products as having value to society rather than simply being something they can sell, have a societal marketing orientation. These firms have values that focus on providing benefits to society as well as making a profit. An example of a business with a societal marketing orientation is Fair Trade USA, which promotes itself as social trade organization dedicated to promoting economic development among farmers and artisans in developing countries while providing consumers with ethical products.

 

Conclusion

Studies have shown that certain business orientations work better than others—for example, a societal marketing orientation tends to perform better in emerging markets. When you’re first starting out, it can be helpful to analyze your business orientation and adjust accordingly. For example, if you’re finding it hard to get off the ground, consider shifting towards a production orientation or sales orientation instead. There are many different types of business orientation, including Production orientation: If you’re oriented around production, then your focus is on getting as much product out into the world as possible. This doesn’t necessarily mean producing more; it means producing well and efficiently so that every unit counts. This is one way to think about startup companies whose main goal is growth at all costs.

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