Define the term 'customer (market) orientation'.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2022). The mark or mark type is shown in brackets.

1. [1-2] An outward looking approach.
2. [1-2] Led by the market.
3. [1-2] Basing product decisions on customer demand.
4. [1-2] Using the findings of market research.
5. [1-2] Producing what the customer / market wants.
6. [1-2] Putting the consumer first.
7. [1-3] Cost taken to research the needs of the different segments.
8. [1-3] Time taken to research the needs of the different segments.
9. [1-3] Cost of research and development to adapt the product to different market segments.
10. [1-3] Additional cost of changes to production to meet the needs of different segments.
11. [1-3] Focus on one or two limited market segments may result in problems if consumers in that segment change their buying habits.
12. [1-3] Promotion costs may be high as different types of promotions might be needed for different segments.
13. [1-3] Marketing economies of scale may not be possible.
14. [1-3] Production and inventory management costs may be higher than those for producing one type of product.