Marketing Orientation Vs Product Orientation: Analysis Of Mango

Write a report that identifies positive and negative aspects of each approach and draws conclusions as to which of the two approaches is the most appropriate for long term business success, explaining your rationale clearly Suggest, using examples, what steps a business may take to adjust its orientation and what challenges this may create?

This particular study deals with the differentiation of the two concepts of Marketing Orientation and Product Orientation. To establish this distinction, a company has been selected, i.e., Mango that forms the basis of the study. This particular study analyzes the negative aspects and the positive facets of the respective approaches (Brown, Sichtmann and Musante, 2011). It also identifies the most appropriate orientation that is required to attain long-term business success. The paper also gives an insight into the steps that the company should go through in order accommodate and adjust its orientation. It also discusses the challenges faced in the process and what influence does both the concept have on consumer behavior.

Mango is a globally renowned apparel designing and manufacturing company. The company is a successful part of the retail industry around the globe. The company was established in the year 1995. There are around 68 stores of the company situated in UK (Brown et al., 2011).  The primary objective of the company is to design and manufacture clothes and accessories in line with the existing fashion trend for the youth of urban locale, especially women. The manufacturer is dependent on the daily and occasional requirements of the targeted consumers. Its head on competitors is Gucci, Giorgio Armani.  The mango concept is one of the main pillars of the company's international reputation and business success.

In the contemporary marketing scenario, Marketing Orientation is the most commonly used orientation. Keeping an update of the actions taken by the competitors and its impact on the preferences of the customer thus, influencing the purchase behavioral pattern of the consumers. The concept also deals with other exogenous factors and their analysis (Fleisher and Bensoussan, 2015). It is of great importance that all the resources of the company go in the direction of common goals when a company intends to go on a success trail following the marketing orientation. Customer, competition, and inter-functional orientation are the constituents of the marketing orientation. In this orientation, a customer is a main focus. Market orientation engages in the delivery of high quality value to customers by proving innovative, and custom-made products and services that are in direct correlation with the generation of revenues. Another important component of marketing orientation is competitive analysis via consumer surveys and market research to identify and monitor the strengths and weaknesses of the competitor (Hsu, 2011). Companies driven by market orientation involve into an inter-functional business process that include the development of market communication programs and brand planning.

Market Orientation

The approach being customer centric is an advantage. The company's basis is addressing the requirements of the target consumers by detailed research to understand the feasibility of the existing offers (Kumar and Shah, 2015). Primary focus on the needs and wants of the customers can turn out to be a huge plus point in the extensive competitive market. It helps to develop the products according to the customer's preference. Thus, this persuasive marketing led to the growth of a customer base and increased sales percentage.

An extreme concentration on consumers results in a lack of product differentiation. It is difficult to have product differentiation in marketing orientation since while the company gives its ultimate attention to needs of the customers the competitive organizations develops unique attributes to the products (McDonald and Meldrum, 2013). Another setback for this approach is the lack of predictability. The marketing-oriented companies make advanced product development planning without considering the changes in the desires of the consumers in future.

This concept originated due to the concept of capitalism that has led to the growing number of affluent as well as middle-class individuals. Product-oriented organizations are strictly product driven. The implementation of this approach meant that the focus of the company was exclusively and only on delivering the features and functionalities and utility of the product. The driving force of the strategic decisions of such companies is the profit margins of the industry. Product orientation is not an approach of the present age (Munksgaard and Freytag, 2011). In the 19th centuries, companies with product orientation survived due to simultaneous demand and scarcity of supreme quality goods and services for the masses. The focus of the industrial firms used to be on this approach so as to achieve maximum efficiency at a minimum cost.  Marketers focusing on this concept lay emphasis on the creation new, improved and superior products with time. However, companies often become engrossed in their product and resultantly neglect the market needs.

One of the major advantages of this approach is that the firm gives much attention to the internal qualities of the product. The sole determination is to develop a picture perfect product. Here to a wide range of products the application of technological investment occurs. The best example of this orientation is the creation of Walkman by Sony (Sales Baptista, 2014). It proved to be a huge success even if it is not required back then and it contributed to the development of other listening devices. The economies of scale can happen more easily due to this business model. The company can create the product with the highest level efficiency and in bulk since its focus is specifically directed. Production number would be more at a low price rate. Product-oriented business sees an easy outsourcing of products. Once the product design is finalized, it can be sent over to other factories for production. It is cost effective.

Product Orientation

The biggest disadvantage of this approach is that it fails to respond to the changing patterns of the market structure. It focuses only on developing a superior range of products, but customers do not always look for what the company has to offer (Sewell, 2014). Thus, this leads to missed opportunities for product-oriented companies. This orientation only emphasizes on the features. However, subjective selling also is an important factor. Narrow branding and obsolescence of technology are also some disadvantages.

Strength: Mango's major strength is its unique selling point. The products are endorsed by well known celebrities and some mini collections also have their designs. The company is extremely active in terms of developing and implementing online campaigns (Bertelsen, 2012). The assistance in every store of Mango is trained to be personal shoppers. Thus, it can be concluded that is 100% family owned (Zemlickiene and Maditinos, 2012). It has established its presence all over the world in almost every city.

Weakness:  Mango as a brand lacks competitive advantage as the organization neglects the practices and methods that are being used by its competitors. It has a weak brand image. Leaving online campaigns, the social media platforms are not put to full use that can bring advantages to the company.

Opportunity: Mango has India and Africa as the emerging retail markets since they have not reached the saturation point.  Growth, sustainability and stability of the brand can be ensured this way.  Mango can engage its customers in the process more with the help of social media platforms (Brown et al., 2011).  Further factors of the product can are covered without restricting the sales to just clothing. Pushing Mango as a lifestyle brand by developing new selling points like perfumes can work as an opportunity.

Threat:  the emergence of new fashion designer poses an imminent threat to the brand of Mango. Mango's image is that it is a constant shadow of its head on a competitor that is Zara. Lack of originality and innovation and subjective selling can be a threatening factor.

Both the business modules of product orientation as well as marketing orientation have been previously discussed. The advantages and the disadvantages of the respective approaches have also been spoken. A detailed analysis of the strength, weakness, opportunity and threat of the company has been done based on which it can conclude that the marketing orientation is the appropriate approach to be implemented for Mango (McDonald and Meldrum, 2013). The orientation of Mango can be adjusted to marketing orientation by producing products and services based on the existing needs and requirements of the market. The company also needs to be well aware of what methods and practices its competitors are putting into use. It would give a cutting edge to the company in the market and thus lead to competitive advantage. Another way to shift the approach to marketing oriented can be by greater use of social media platforms and engaging the targeted customers in the process through social networking sites.

The shift in the orientation of the company is of much importance. Mango is seen to be negligent towards its competitors and the practices and strategies that they put to use. It leads to be a weakness for the brand and percentage of sales because Mango as a company is not matching up with the market demands (Miller, 2014). It in turn leaves a bad impression on the consumers, and they chose to buy from the better alternatives. However, a shift in the viewpoint would attract more consumers when the company keeps the market needs in priority and thus, a loyal customer base is formed.

Conclusion

This particular paper explains the differences between the concepts of product and marketing orientation. It has been done by linking it to Mango which is apparel, manufacturer. It defines the pros and cons of both product and marketing orientation. Through a SWOT analysis, a conclusion has been drawn that the company needs to shift its business model into marketing orientation. It would lead to increased sales and popularity.

Reference List

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