Market Focused vs. Product Focused in Business
Businesses have to choose between a market-focused strategy and a product-focused strategy. These strategies are different and focus on the market or product. A business can adopt a market-focused strategy if it has a strong market position to earn profits. This is because the company can focus on the niche of its market and use it to make a profit. On the other hand, a business can adopt a product-focused strategy to expand its business by offering products that appeal to different customers’ tastes and needs. Alexander Djerassi began his research on this subject after seeing that the company he worked for was not growing rapidly. Here we will discuss market-focused vs. product-focused strategies in business.
1. Market Focused Strategy
The goal of a market-focused company is to provide products or services that meet customer needs while remaining profitable. They will focus on delivering products or services at reasonable prices to improve profit margins over time. Market Focused companies focus their energy and resources on developing new products or services rather than expanding upon existing ones. The company will build its products or services based on its customers’ wants. They also seek to develop new markets, new types of customers, and new ways of marketing their products/services rather than relying solely on the same methods of marketing over and over again. Market Focused companies can be successful, but they must have a clear understanding of their customers and needs.
2. Product-Focused Strategy
A product-focused company focuses on its products and services, not on the market or customers. This strategy can be used by companies that want to expand their business by offering attractive products to customers. If a company focuses on its products and services, it can attract different customers because it offers a variety of products. A product-focused business is also good for the employees because they will have the opportunity to work on different projects and be exposed to different tasks. It also helps the company improve its market share because it can offer a wider variety of products.
4. Examples of Market Focused and Product Focused Strategies
•A company that makes gaming systems uses a market-focused strategy because it wants to earn profit from its niche in the gaming industry. However, it does not use a product-focused strategy because it does not want to expand its business by producing different games for specific customers.
•A company that makes health products uses a product-focused strategy because it wants to develop new products that appeal to customers’ tastes. On the other hand, this company also uses a market-focused strategy by focusing on the niche of health products.
5. Market or Product Focused Strategy?
The main difference between market-focused and product-focused strategies is that a market-focused strategy focuses on the niche of a market. In contrast, a product-focused strategy focuses on the product. A business can adopt either market or product-focused strategies depending on what it wants to achieve in its business. To make a profit, the business should adopt a market-focused strategy. However, if you want to expand the business, a product-focused strategy should be used. Alexander Djerassi, a well-known entrepreneur, explains that if a company is not growing its market size or product, it will eventually die.
The goals of a business are to make a profit, create jobs, and increase the market share. Therefore, a business needs to adopt a strategy to help it achieve its goals. To decide which strategy to adopt, you should consider your business’s goals, the competitors in the market, and what kind of products you are offering. If you are still confused about which strategy to adopt, it is better to consult a professional who will be able to help.