Are your customers supposed to come to you, or is it you who want to meet them? These two approaches crystallize the difference between sales orientation and product orientation. Once you get to know them, it will be easier for you to choose the perfect strategy.
Historically, the production orientation was the first. Before the marketing theories known to us appeared, it was enough to produce to finally find the right customer. I am talking about the nineteenth century, when private entrepreneurship and the first department stores appeared on a larger scale. If there was a product that was better, cheaper than others, or simply the only one in the area, then finally a buyer was found. Rather, it was the customers who sought to be able to buy one thing or another.
Sales orientation versus production orientation
Clarified in the 1930s sales orientation already takes into account new market challenges. In times of the Great Depression, people were not so eager to shop. You had to reach them through the right sales channels. Doorstep selling was popular, and more and more attention was paid to the service and display in shops. In short, it can be said that the sales orientation is focused on push, that is, reaching the customer. The production orientation is based on the strategy pull - the goods are to attract customers.
Differences between type orientation push and pull can also be applied to marketing. In this case strategy push this building brand awareness through more aggressive paid campaigns or promotions. In the marketing strategy pull it is the product or offer that is intended to attract customers. About the sales and product strategy (push and pull) one can also speak in the context of the distribution model. The product can be brought closer to the customer, making the purchasing process as easy as possible, or the customer must actively acquire it, "attracting" him to himself.
What is sales orientation?
In short, the sales orientation assumes that everyone is a potential customer. In order to reach it, you just need to find the right selling technique. The seller's arsenal in this model may include:
- sale,
- content marketing,
- packages,
- bonuses,
- consultations,
- tutorials,
- trial periods.
Is your company ready for market challenges?
We will match the best action strategy for you!
Techniques taken from sales orientation are used by internet marketers, door-to-door sellers, and B2B traders. Various marketing communication channels can be used for both the sales and product approach. For example, Instagram allows you to sell and reply to messages from directly interested customers, as well as actively acquire new ones through content marketing.
Sales orientation - examples
A great example of sales orientation is the operation of souvenir shops in tourist towns. Very often the offer is based on a loud and clearly visible advertisement. There are promotions, type 3 offers for the price of 2, and sellers often circulate among tourists, selling actively. This is a particularly good example of sales orientation, because this tactic works when price, not quality, is to be the key argument.
Another interesting example of sales orientation is on-line business. Many course authors offer free consultation. Active delivery of content to the client (push) makes it easier for him to make a purchase decision. In this case, it's skillful sales strategy decides that the client is ready to buy an expensive training or course. The opposite is a tactic where the customer has to join newsletter, enroll in the waiting list for the course, take part in webinars - gaining the right to buy a product, as it were.
A good example of sales orientation is too insurance industry. Even when the customer comes to the branch, it is up to the seller to choose the package. Such specialists very often have to actively acquire clients at networking meetings, through cold-e-mails and cold-calle, visiting companies and individuals, etc. Apart from compulsory insurance, e.g. a car, it is very rare for a client to spend time actively looking for insurance and comparing offers.
When does sales orientation work?
Product orientation has some disadvantages. It will go to customers who are looking for a given solution. Such communication strategy however, it does not allow the market to expand. This is where sales orientation is perfect. By means of guides, demonstrations or social-media channels, it allows you to reach people who would not be interested in the product. The power of advertising or practical arguments creates a need to buy something.
Sales orientation works well too in B2B marketing. This tactic is used by all sales representatives who travel from company to company to finally find an entrepreneur interested in a given solution. This approach is indispensable in a highly competitive situation. Then it is not the product itself, but the ease of purchase and additional bonuses or discounts that allow you to choose one of the offers.
Sales orientation It works in times of crisis and whenever customers cut expenses. Then they may not be actively looking for even the products they used before. Then it is worth meeting them and remembering the need they had in the past. In the market realities, many companies use a mix of these two methods: sales and product orientation. This allows them to reach different customer groups at the same time, reach them at different stages of the purchasing process and segment their activities. This approach allows you to reach both those who are already convinced and to become resistant to crises by constantly expanding your market position.
Disadvantages of sales orientation
The downside of sales orientation is focus on aggressive sales, promotion and manipulation techniques. This approach does not work, for example, in trading premium goods. It is worth considering this strategy carefully also in the case of recurring sales. An aggressive sales technique may mean that the customer will only be able to rationally evaluate the product over time. If it doesn't feel like it is worth the money, sales orientation may not work again. If you are planning to match the technique sales support to the situation in your company, we will be happy to help you.