COMPANY ORIENTATION TOWARDS MARKETING PLACE

Submitted by-Aditi Bakshi02-MBA-09

INTRODUCTION

The Production Concept

The Product Concept

The Selling Concept

The Marketing Concept

The Holistic Marketing Concept

THE PRODUCTION CONCEPT It holds that consumers will prefer

products that are widely available and inexpensive

Managers of this concept concentrate on achieving high production efficiency, low cost and mass distribution

Example: Most popular in developing countries

like China, where largest pc manufacturer like Lenovo takes advantage of country’s huge and inexpensive labor pool to dominate market

THE PRODUCT CONCEPT It proposes that consumers favor products that offer most

quality, performance or innovative feature Product-oriented companies often design their products with

little or no customer input, trusting that their engineers can design exceptional products.

Mangers commit “better mouse-trap” fallacy believing that a better mousetrap will lead people to beat a path to their door.

A new or improved product will not necessarily be successful unless it’s priced, distributed, advertised and sold properly

Example: General Motors executive used to say years

ago: “How can the public know what kind of car they want until they see what is available?”

GM today asks customers what they value in a car and includes marketing people in the very beginning stages of design.

THE SELLING CONCEPT

This concept holds, the consumers will not buy enough of the organizations products unless it undertakes a large selling and promotional effort.

Coca-cola’s former vice president said, “the purpose of marketing is to sell more stuff to more people more often for more money in order to make more profits.”

It is practiced most aggressively with unsought goods, that buyers normally do not think of buying such as:

Insurance Encyclopedia

Firms also practice this when they have over capacity

The firm’s aim is to sell what they make, rather than make what the market wants

It is a way of hard selling products

This concept carries high risk and assumes that:

Dissatisfied customers will not talk about their dissatisfaction with other customers.

They will soon forget their dissatisfaction

They will not complain about their dissatisfaction in consumer council.

THE MARKETING CONCEPT It emerged in mid 1950s

It is based on consumer centered – “sense and respond” philosophy

The job is to find right products for your consumer instead of right consumer for your product.

Example: Dell Computers

The key to achieving organizational goal is being more effective than competitors in creating, communicating and delivering superior customer value to your chosen target market.

Companies that embrace this concept give superior performance

DIFFERENCE BETWEEN SELLING AND MARKETING CONCEPT

SOCIETAL MARKETING

Marketing concept sidesteps the potential conflicts among consumer wants, consumer interests, and long-run societal welfare.

Societal Marketing concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-being

THE HOLISTIC MARKETING CONCEPT

This approach recognizes that “everything matters” in marketing

HolisticMarketing

Integrated Marketing

Performance Marketing

Internal Marketing

Relationship Marketing

RELATIONSHIP MARKETING

It aims to build deep ,enduring relationship with key constituents in order to earn and retain their business.

These key constituents include: Customers Employees Marketing partners (channels, suppliers,

distributors, dealers, agencies) Members of financial community (shareholders, investors, analysts)

It results in developing a marketing network.

It emphasizes on customer retention.

The ultimate goal is to skillfully conduct Customer Relationship Management and Partner Relationship Management.

INTEGRATED MARKETING All 4 Ps of marketing mix must create, communicate &

deliver the intended customer value

Each marketing tool must be designed to deliver customer value

Marketing Mix

Product Product VarietyQualityDesignFeaturesBrand NamePackagingSizesServicesWarranties return

PriceList PriceDiscountAllowancesPayment PeriodsCredit Terms

PromotionSales PromotionAdvertisingSales ForcePublic RelationsDirect Marketing

Place ChannelsCoverageAssortmentLocationsInventoryTransport

INTERNAL MARKETING

It is the task of hiring, training & motivating able employees who want to serve customers well.

Internal Marketing must take place at two levels: Various marketing functions (sales

force, advertising, customer service, product management, marketing research)-must work together.

Other departments must also embrace marketing and “Think Customer”.

It requires vertical alignment with senior management & horizontal alignment with other departments

PERFORMANCE MARKETING

It involves understanding the returns to business from marketing activities and programs

It also addresses the legal, ethical, social and environmental effects of the various marketing activities

The top management evaluates: market share, customer loss rate, customer satisfaction, product quality and other measures to examine market

scorecard.

PERFORMANCE MARKETING

Financial Accountability Justify investments in financial

and profitability terms as well in terms of building brand and growing customer base

Recognize firm’s market value, which comes from intangible assets (company’s brands, customer base, employees, distributors, suppliers)

PERFORMANCE MARKETING

Social Responsibility Marketing A lot of stress is given to public

interest. Marketer must consider their role in

terms of: Ethical Environmental Legal and Social context of their activities.

Example: HP introduced recyclable computers

to reduce greenhouse emissions.

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