Definition
Reorientation is the process of changing the market appeal of a property or business to attract a different target audience. This often involves significant changes in the way a business operates, presents its offerings, and positions itself in the marketplace. It may include activities such as rebranding, altering product lines, changing marketing strategies, and adapting to new customer preferences or market trends.
Examples
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Retail Store Rebranding: A high-end clothing store targeting affluent customers decides to reorient its market appeal to attract mid-range consumers. This might involve changing store decor, introducing more affordable product lines, and adopting new marketing strategies focusing on value for money.
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Hotel Target Market Adjustment: A luxury hotel facing reduced bookings decides to target business travelers and conference organizers instead of leisure travelers. The hotel might refurbish its facilities to include high-tech conference rooms, offer business suites, and create marketing campaigns that highlight amenities appealing to corporate clients.
Frequently Asked Questions
What triggers the need for reorientation in a business?
Businesses typically undergo reorientation due to changes in market conditions, declining sales, emerging trends, increased competition, or shifts in consumer preferences.
What are the key steps involved in reorienting a business?
The key steps usually include market research, revisiting the business model, rebranding efforts, modifying product or service offerings, and implementing new marketing and operational strategies.
How does reorientation differ from a simple market expansion?
Reorientation involves changing the core aspects of a business to appeal to a new market, while market expansion focuses on growing the business within the same market by reaching more customers or geographical areas.
Can small businesses benefit from reorientation?
Yes, small businesses can benefit significantly from reorientation by tapping into new markets, staying relevant, and gaining a competitive edge in ever-changing markets.
What are the risks associated with reorientation?
Risks include potential alienation of the existing customer base, financial costs of rebranding and other changes, and possible misalignment with the new market if the reorientation does not resonate with the target audience.
Related Terms
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Rebranding: The process of changing the corporate image of an organization, including its name, logo, or overall presentation, often to align with new market positioning.
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Market Penetration: A strategy focused on gaining a higher market share within the existing market through aggressive marketing and sales tactics.
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Market Segmentation: The practice of dividing a market into distinct subsets of consumers with common needs or characteristics and targeting them with specific marketing efforts.
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Product Differentiation: The creation of distinctive features or perceived differences between products to make them more attractive to a particular target market.
Online References
- Investopedia - Strategic Management
- Harvard Business Review - Rebranding
- Forbes - Market Penetration
Suggested Books for Further Studies
- “Blue Ocean Strategy” by W. Chan Kim and Renée Mauborgne – This book outlines how to create uncontested market space and make competition irrelevant.
- “Kotler on Marketing” by Philip Kotler – Insightful read on marketing strategies and practices, including market repositioning.
- “Building Strong Brands” by David A. Aaker – Offers detailed insights into the importance of brand management and strategies for rebranding.
Fundamentals of Reorientation: Strategic Management Basics Quiz
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