Four Marketing Management Philosophies

Professor Ed Dansereaued.dansereau.com

Four Marketing Management Philosophies

Production Orientation

Sometimes a product can be so revolutionary new or innovative that consumers do not know what they want. Think back in history. . . imagine being

Steve Jobs selling the first iPod or first iPhoneJake Burton selling the first snowboardCisco Systems with wireless routers

Production OrientationAdvantages

Innovators of dynamically (disruptive innovation) new products

Smaller industries with new breakthroughs in engineering or science

When consumers do not know what they want

Disadvantages

Customers do not know about company, their products, how to get them, or benefits

Good concept but design often does not meet the needs of the market place

Associated with “Field of Dreams” thinking - build it and he (they) will come

Examples of Production OrientationJake Buton with early snowboard

Notice the front cord.

Field of Dreams

Starring Kevin Costner

Yeah, He built a baseball diamond in a corn field

Sales OrientationSales orientation is associated with aggressive sales techniques.

Tactics include

Time Pressure

Persistence

The Takeaway

Sales OrientationAdvantageGood for one time salesExpensive items

Disadvantages

Customer perception of “Tricks”

Organizations failure to understand customer

Need to constantly discount which makes creating a brand more difficult (lack of trust and customers wait for annual sale)

Example of Sales OrientationJoe Isuzu - The 80s car salesman famous for say “Trust Me”

Market Orientation

Satisfaction of customer’s wants and needs

The perception of added value drives business

Trust helps to establish brand

Market OrientationAdvantages

Differentiate from competitors

Build Brand

Unique experience

Responsiveness

Long Term Success

Customer Loyalty

Lifetime Value of Customer

Disadvantages

Takes time to establish reputation and trust

May loose some “one-time” customers

Price shoppers

Examples of Market Oriented Organizations

Societal Orientation

Doing good for society is good for business.

Greater Good of Society

Market Orientation plus a cause

Societal OrientationAdvantages

Customers can feel good about purchase

Recycle

Reuse

Reduce water

Lower greenhouse gasses

Carbon footprint

Organic Food is good for you and environment

Employees believe in organization

Disadvantages

Cost

More expensive for consumer

May be more expensive to produce

Some small farmers are all natural but can not afford the “Organic” certificate

Societal OrientationToms Shoes - for every pair purchased a pair is given to a child in need