Final answer:
Product-oriented marketing involves producing and marketing what a firm believes will sell, not necessarily based on customer needs. Market structure and product differentiation are crucial, with advertising bolstering the firm's perceived value and demand.
Step-by-step explanation:
Product-oriented marketing means producing and marketing products that a firm believes will sell, regardless of customer needs. This approach does not necessarily focus on customizing products to meet consumer demands but rather emphasizes optimal production and the firm's belief in the inherent value of its products. Market structure plays a significant role in determining how a firm operates, influencing decisions about product production, the production process, output levels, pricing, and labor. Product differentiation is a key strategy in this regard, helping create distinctiveness through physical attributes, location, intangible aspects, or perceptions of products. Moreover, advertising in markets characterized by monopolistic competition can either make the demand curve for a firm's product more inelastic or increase demand, resulting in higher prices, larger quantities sold, and greater profits.