Final answer:
Sales orientation and market orientation differ in terms of their focus, approach, competition, information, and market dynamics.
Step-by-step explanation:
Sales orientation and market orientation are two different approaches used by companies in their business practices. Here are five key characteristics that differentiate these orientations:
Focus: Sales orientation focuses on selling products or services that the company produces, whereas market orientation focuses on identifying and meeting the needs and wants of customers in the market.
Approach: Sales orientation follows a sales-centric approach, where the goal is to persuade customers to buy the company's products or services. Market orientation, on the other hand, follows a customer-centric approach, where the focus is on understanding customer preferences and delivering value.
Competition: Sales orientation may lead to intense competition with other sellers offering similar products. In contrast, market orientation focuses on understanding market dynamics and finding unique ways to create customer value, which can reduce competition.
Information: In sales orientation, sellers may have more information about products compared to buyers. In market orientation, both buyers and sellers are well-informed about products, creating transparency and informed decision-making.
Market dynamics: Sales orientation may limit sellers' ability to enter or exit the market due to the focus on existing products. In market orientation, sellers have the flexibility to enter or exit the market freely, enabling adaptation to changing market dynamics.