1 Organization’s focus. With a sales orientation, the firm’s focus is inward upon the firm’s own needs. With a market orientation, the focus is outward on the wants and preferences of customers. In particular, marketing-oriented firms create customer value, maintain customer satisfaction, and build long-term relationships.

Business. A firm with a sales orientation is in the business of selling goods and services. A firm with a market orientation is in the business of satisfying consumer wants and needs.

Customers. A sales orientation directs the firm’s output at everybody, while a market orientation directs goods toward specific groups of people.

Primary goal. The primary goal of a firm with a sales orientation is to make profit through maximizing sales volume. The primary goal of a firm with a market orientation is to seek profit through customer satisfaction.

Tools for goal achievement. A sales orientation seeks to achieve goals primarily through intensive promotion. A market orientation achieves goals through coordinated use of a set of marketing activities.

2 Student answers to this question will vary. Answers should include a cost competitive advantage, which can be achieved through no-frills goods and customer service, efficient labour, production innovations (such as new products not currently on the market), and the experience curve. A product differentiation competitive advantage might be achieved by the use of the value impression (this possibility is implied in the description of the containers). The company might also try selling an augmented product offering; perhaps a bread mix bundled with the spreads. The niche competitive advantage is probably not appropriate for this company. Some students may suggest targeting gourmets or some other single market.

3Physiological needs are the most basic level of human needs. These needs include