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Production Orientation: Definition & Examples

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  • 0:00 What is a Production…
  • 0:35 Production Vs. Market…
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  • 1:25 Production-Oriented…
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Lesson Transcript
Instructor: John McLaughlin
In this lesson, we will learn how to recognize a production-oriented marketing strategy. We will learn how a production-oriented marketing strategy differs from a market-oriented marketing strategy and the conditions under which a production-oriented marketing strategy can be successful.

What Is a Production Orientation?

'Build a better mousetrap, and the world will beat a path to your door' is a saying from a simpler time when consumers did not have all the buying choices or communication channels that they have today. 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. This type of company believes that if they can make the best 'mousetrap,' their customers will come to them.

Production Orientation vs. Market Orientation

Companies that adhere to a market orientation operate very differently than companies with a production orientation. Companies with a market orientation focus primarily on meeting the wants and needs of their customer base. They constantly monitor their customer's desires and are quick to change the product or service they offer to whatever best suits their customers. Instead of a 'better mousetrap' philosophy, a market-oriented company's philosophy is 'the customer is always right.'

Assumptions of a Production-Oriented Company

Companies that follow a production orientation make the following assumptions:

  • We can focus all of our efforts on improving the quality of our products, and the products will sell themselves.
  • We can sell any product if the quality is good enough.
  • We can make a profit if we sell enough of our products.
  • Our customers will buy all that we can produce if our price is fair.

Example of a Production-Oriented Company

Surprising as it may sound, prior to its closing by the Russian government in 2014, the busiest McDonald's restaurant in the world was not in the United States but in Pushkin Square in Russia. While the average McDonald's serves 1,000 customers a day, the McDonald's in Pushkin Square served over 30,000 customers a day since it opened in 1990.

Before McDonald's opened in Pushkin Square, Russian diners were accustomed to expensive restaurants with bad service and inconsistent food quality. McDonald's introduced the Russian customer to an entirely new experience: consistently-produced food and fast service at an affordable price. McDonald's 'better mousetrap' was so wildly popular with the Russian diner, they would wait for many hours in the cold to buy a Big Mac.

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