2. Marketing Orientations

7/30/2019 2. Marketing Orientations

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Company Orientations

Production

Selling Marketing

Product


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Designing a Customer-Driven Marketing

Strategy

Production concept is the idea that consumers

will favor products that are available or highly

affordable

Marketing Management Orientations


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PRODUCTION CONCEPT

Inward looking orientation

Management becomes cost focused

Objective is cost reduction

Business mission is focused on current

production capabilities

Manufacture products and aggressively sell

them to customers


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Designing a Customer-Driven Marketing

Strategy

Product concept is the idea that consumers will

favor products that offer the most quality,

performance, and features. Organization

should therefore devote its energy to making

continuous product improvements.



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PRODUCT CONCEPT

Companies become centered on constantly

improving the product

Myopic focus on the product No attention on the other ways in which

customers can fulfill their needs

MARKETING MYOPIA

Customer does not buy a product, he buys

an offering that fulfills his needs


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Marketing Myopia

Marketing myopia occurs when a marketer is excessivelypreoccupied with product development, manufacturing or

selling and ignores customer needs, wants, and interests.

Theodore Levitt mentioned that industries fail not becausemarkets are saturated but because of the failure and short-sightedness of the management.

Ways to overcome marketing myopia

Be customer led, not product oriented

Managers need to be proactive and visionary

Market orientation should permeate throughout theorganization


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Designing a Customer-Driven MarketingStrategy

Selling concept is the idea that consumers

will not buy enough of the firms productsunless it undertakes a large scale selling

and promotion effort



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SELLING CONCEPT

Product or service is not designed andmade according to customers

requirements Customer has to be persuaded to believe

that the product or the service meets hisrequirements

Customer dissatisfied and bad-mouthscompany


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SELLING

CONCEPT

Aggressive

persuasion andheavy

promotional

expenditure

Sell what is

made


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Marketing concept is the idea that

achieving organizational goals depends on

knowing the needs and wants of the

target markets and delivering the desired

satisfactions better than competitors do


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MARKETING

CONCEPT

Communicate

customer needs

to otherdepartments

Customer

satisfaction

companys

ultimate goal

Customer

needs central

to company

Every employeeis a marketer

Marketing

should

championcause of

customer

Meet customer

needs better

thancompetition


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Marketing Concept Marketing concept aims at matching the companys offering with customer needs, to

achieve the desired level of customer satisfaction and generate profits for thecompany.

Features of marketing concept Customer orientation -

Continuous change or modification in existing products or develop newproducts to satisfy accordingly.

Long term Profitability -

Detailed analysis of market by using market research, product development, promotionand related areas. CLV

Functional Integration -Proper coordination between the marketing department and other departments.

Societal Marketing ConceptTry to maintain equilibrium among organizations profit making objectives, customersatisfaction, and societys interest.


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Societal marketing concept is the idea that a

company should make good marketing decisions

by considering consumers wants, the companysrequirements, consumers long-term interests, and

societys long-run interests


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Production Concept

Product Concept

Selling Concept

Marketing Concept

Consumers prefer products that arewidely available and inexpensive

Consumers favor products thatoffer the most quality, performance,

or innovative features

Consumers will buy products only if

the company aggressivelypromotes/sells these products

Focuses on needs/ wants of targetmarkets & delivering value

better than competitors

Company Orientations Towards the

Marketplace


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Holistic Marketing Dimensions


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The Four Ps


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The marketing mix is the set of tools (four Ps)

the firm uses to implement its marketing

strategy. It includes product, price, promotion,

and place.

Integrated marketing program is a

comprehensive plan that communicates and

delivers the intended value to chosencustomers.

Preparing an Integrated Marketing

Plan and Program


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Internal Marketing

Internal marketing is the task of hiring,

training, and motivating able employees

who want to serve customers well.


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Performance Marketing

FinancialAccountability

Social

ResponsibilityMarketing

Social Initiatives Corporate social marketing

Cause marketing

Corporate philanthropy

Corporate communityinvolvement

Socially responsible

business practices


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Marketing Management Tasks

Develop market strategies and plans

Capture marketing insights

Connect with customers

Build strong brands

Shape market offerings

Deliver value

Communicate value

Create long-term growth


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New Consumer Capabilities

A substantial increase in buying power

A greater variety of available goods and services

A great amount of information about practicallyanything

Greater ease in interacting and placing andreceiving orders

An ability to compare notes on products and

services An amplified voice to influence public opinion

Documents

2. Marketing Orientations