Product Approach
This article covers meaning & overview of Product Approach from marketing perspective.
What is Product Approach?
When a company focuses more on what it can produce well and better than others and produces that, it is called product approach towards business. On the other hand, when a company focuses on what its customer wants and values and produces that, it is called marketing oriented approach or customer oriented approach towards business. Both the approaches may result in company producing the same product but in case of a conflict between the two, the marketing oriented approach always proves to be better for any company.
Product approach was the more popular approach a few decades back. When companies focused on getting market share and competitive advantage through cost leadership only, product approach was the more popular approach. When the competition became fiercer and it became difficult to separate yourself just based on cost leadership because of technology growth, marketing oriented approach caught on. A few companies which have failed to switch from product oriented approach to marketing oriented approach have failed too. One such example is that of Kodak. Kodak was the market leader when it came to analog camera but it failed to capture the mood of audience and the technological swing when the advent of digital camera was about to happen. It focused on producing the best analog cameras possible but didn’t focus on developing digital cameras which were catching on to the consumer’s attention. From being an extremely successful company and a market leader, it failed within a time of 2 years because of its product oriented approach.
Hence, this concludes the definition of Product Approach along with its overview.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
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