Q. 1 Name the company you think might be successful following a production orientation, why might a firm in the industry be successful such an orientation?
To understand the asked question, first of all we need to understand what is production orientation? And how can a company be successful following the production orientation. Production orientation is a process by which company can be successful in the world. This is a process of capturing market and getting the concentration of the people in the market. This is a one way method to capture the market. There is no need and demand included in this method.
A company that adopts this ‘better mousetrap’ business philosophy is said to follow a production orientation. A company that follows a production orientation chooses to ignore their customer’s needs and focus only on efficiently building a quality product.
In simple meaning we can say that in production orientation method, the company just focuses on the product which it is producing for customers. The company does not focus what customers want and need is, and what customer wants. But they use to do the production without thinking that customer will like it or not. The company does not focus on the demands of the customer.
There are many companies like this who are only production oriented, means they just focus on, what they are producing. I want to quote an example of some companies which are production oriented.
1- Ford Motor Company (World Famous Vehicle Maker):
Ford is the most famous maker of vehicles in the world. It have captured a huge market in half of the world.
The Ford Motor Company was started in Detroit by Henry Ford, who was born in 1863 and began working on motors for inventor Thomas Edison in 1891. Ford created a “Quadricycle” in 1896, which was a four wheeled bicycle run by a motor. He launched his second car manufacturing operation, Ford Motor Company, in 1903.
2- McDonalds (World Famous Food Chain):
I am going to discuss McDonalds. Because it is a biggest company which is working on production orientation. They are just making products on their confidence. Company is not focusing the need and want of the customer. The company just produces the product and introduces it in the market.
This is the biggest example in the world of production orientation.
Why might a firm in the industry be successful such an orientation:
The part of the question is that Why might a firm in the industry be successful such an orientation. Company would be very successful in all over the world based on some important factors, those factors are as follow;
Looking on competitors products
Feedback of customers
These are the important factors by which the company is successful using the production orientation. They just believe on their production, that whatever they will make, the people own that product without any hesitation. Focusing on internal and controllable traits within the company, gives it advantages to be more innovative and successful.
SWOT stands for (Strength, Weaknesses, Opportunities, and Threats). Here is a SWOT analysis of the above discussed company as follows;
This is the strength that company believes in its products, which are being produced.
This is the weakness of the company that company is overconfidence about its product.
These are the opportunities available for the company, that customers trust on its products, whatever they produce.
There are many threats for the company. The biggest one is that whenever company introduces a new product. It can be rejected.
Q. 2 Can the marketing concept reach a point of diminishing returns? That is, is there a point at which marketers can offer too much choice to too many consumers (try to satisfy too many wants/needs), or is the proliferation of product choices indicative of successful implementation of the marketing concept?
The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Today most firms have adopted the marketing concept, but this has not always been the case.
The law of diminishing returns says that the more you engage in a benefit-producing activity, the less relative impact each successive benefit will have.
Example: As the farmer increases from one to two units of fertilizer, total output increases from 100 to 250 ears of corn. Therefore the marginal, or additional, ears of corn gained from one more unit of fertilizer is 150 (250 – 100). From two to three units of fertilizer, the total output increases from 250 to 425 ears of corn, a 175 marginal increase.
At what point does the law of diminishing returns set in? Look for the point at which the marginal increase is at the highest point and the next marginal increase is less. In this example, that occurs after the farmer adds the third unit of fertilizer. At three units, the marginal output in ears of corn is 175, but when the fourth unit is added, the marginal output drops to 125.
Units of Fertilizers Total Ears of Corn Marginal Ears of Corns
1 100 100
2 250 150
3 425 175
4 550 125
5 600 50
6 525 -75
Hence, there is a point where the marketing concept reaches a point of diminishing returns. Marketers try so hard to reach a broad range of people to satisfy their needs/wants but this only creates too many options for the consumers. If there were fewer options they could be of better quality and the consumer would be sure of their purchase, instead there are so many options and marketers are pushing to sell their products when it may not be what the consumer needs/wants.
Marketers focus so much on selling their products they may be able to talk their way into a sale because the consumer is unsure of what they need/want. Marketing focuses on distinguishing products from competitors and focuses on the customer so who ever creates this illusion best will earn the sale over their competitors.
The proliferation of product choices may seem indicative of successful implementation of the marketing concept to some, but I do not agree. Yes each marketer has their own set of organizational goals they need to achieve by satisfying the customer’s needs/wants but they can do so in a way so the customer can clearly chose between organizations depending on what they stand for and what they need/want.