Final answer:
Market orientation, which includes a fundamental concept of customer focus, is about aligning a company's operations and strategy with the needs and preferences of its customers. This philosophy promotes customer satisfaction as a route to competitive advantage. Additionally, it suggests that specializing in core competencies tends to yield better results than diversification into too many product areas.
Step-by-step explanation:
The notion of market orientation, one component of which is customer focus—placing the customer at the core of all aspects of the enterprise—takes the guiding business philosophy of the marketing concept and works to more usefully define just how to implement it within a firm. This approach emphasizes the importance of understanding the needs and wants of customers, thereby aligning the company's products and services to better satisfy customer demand. Market orientation encourages firms to prioritize customer satisfaction, which often leads to improved customer loyalty and competitive advantage.
In a market-oriented economy, businesses believe that they are better positioned than governments to determine the actions that will attract more customers or produce more efficiently. Furthermore, the idea of focusing on a company's core competency suggests that specializing in a limited range of products can lead to greater success compared to firms that dilute their efforts across too many diverse products.