2. Advantages of Market Orientation

How Does Market Orientation Work?
Market orientation is more of an approach to product design rather than promotion. It means that the priority is to analyze the target audience and determine their needs instead of undertaking any promotional or sales activity. The needs are kept in mind while developing and upgrading the product offering.
A market-oriented organization uses a customer-centered approach, which means that the most pressing concerns, immediate needs, and personal preferences of the consumer base must be researched.
The strategy must be focused on values, culture, and other behavioral traits of the consumer base. Thus, the development efforts of the organization are focused on characteristics that are most widely demanded. This enables companies to adapt to different markets and enhance competitiveness.
Advantages of a Market-Oriented Strategy

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  Most consumers are in touch with market trends, too, and clearly understand their needs and aspirations. Performing data analysis can reveal trends and desires that are not explicit. It can be instrumental in anticipating consumer needs and adapting the market-oriented organization as one that shapes consumer behavior rather than one that reacts to it.
  

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  Consumer demands can often seem impractical, but their knowledge can be vital in the long-range decision-making process. Ideas that are not cost-effective in the status quo can be employable amid changed market conditions in the future. They can be used for long-term development strategies.
  
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  Data collected for product development can also be used post-launch to improve customer service. Efficient product support that addresses concerns raised by consumers is essential in maintaining a high degree of consumer satisfaction. It enhances brand loyalty and word-of-mouth advertising by existing consumers.
  

Disadvantages of a Market-Oriented Strategy

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  An excessive focus on addressing the needs and desires of consumers reduces the scope for innovation in an organization. Thus, market orientation is based on reacting to market trends rather than creating them.
  
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  Consumer desires are not fixed and can change very rapidly. A standalone market-oriented strategy cannot guarantee a huge market share, given that rival companies serving the same consumer needs can quickly come up in the market.