Final answer:
A firm that believes in intensive promotion and sales efforts to drive consumer purchasing is sales oriented. This contrasts with a market-oriented approach, where the focus is on meeting consumer demands. The debate on the value of product variety and marketing in a market-oriented economy continues.
Step-by-step explanation:
A firm whose marketing orientation is based on the belief that consumers and businesses alike will not buy enough without prodding is sales oriented. This sales orientation is predicated on the idea that customers need to be convinced through different sales techniques and persuasions. The underlying assumption is that companies must actively engage in selling and promoting their products to drive sales because consumers will not purchase sufficiently on their own accord. This differs fundamentally from a market-oriented approach that relies on understanding and meeting the needs and wants of consumers.
In contrast, a market-oriented economy promotes the notion that firms are the best judges of how to attract more customers or produce more efficiently. Such economies often feature a wide variety of products and services due to firms striving to satisfy diverse consumer demands and seeking short-term profits through product differentiation. However, there is an ongoing debate on whether the high cost of product differentiation, and the marketing that accompanies it, is socially wasteful or beneficial to consumers.