COMPANY ORIENTATION TOWARDS MARKETING PLACE

By Ms. Geetanjali Gulati

COMPANY ORIENTATION TOWARDS MARKETING

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

This concept is also used when the company wants to expand the market

Most popular in countries like China

THE PRODUCT CONCEPT

It proposes that consumers favor products that offer most quality, performance or innovative feature

These managers are sometimes caught up in love affair with their product

They might plague themselves with Marketing Myopia

THE SELLING CONCEPT

Organizations must take an aggressive selling & promotion 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.

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

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

The key to achieving organizational goal: create, communicate & deliver – superior customer value – to your chosen target market w.r.t. your competitor

Companies that embrace this concept give superior performance

Ex: Dell Computers

THE MARKETING CONCEPT

Reactive marketing orientation Understanding & meeting customers’

expressed needs Company’s develop very basic innovation

Proactive marketing orientation They focus on customer’s latent needs through

“probe and learn process” Involves high level innovation Ex: 3M, HP

DIFFERENCE BETWEEN SELLING & MARKETING CONCEPT

The Selling Concept1. It focuses on need of seller

2. It is preoccupied with seller’s need to convert product into cash

The Marketing Concept1. It focuses on needs of the

buyer

2. It is the idea of satisfying needs of customer by means of product and the whole cluster of things associated with creating, delivering and finally consuming it

THE HOLISTIC MARKETING CONCEPT

This approach recognizes that “everything matters” in marketing

Holistic

Marketing

Integrated

Marketing

Performance

Marketing

Internal Marketin

g

Relationship

Marketing

RELATIONSHIP MARKETING

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

These 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 CRM & PRM

INTEGRATED MARKETING

All 4 Ps of marketing must create, communicate & deliver the intended customer value

Each marketing tool must be designed to deliver customer value

Marketing Mix

Product Pdt. 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)

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 adressess 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

PERFORMANCE MARKETING

Financial Accountability Justify investments Calculate firm’s market value, which comes from

tangible assets (company’s brands, customer base, employees, distributors, suppliers)

Social Responsibility Marketing A lot of stress is given to public interest HP has introduced recyclable computers ITC

MARKETING MANAGEMENT TASKS

Developing marketing strategies and plans

Capturing marketing insights

Connecting with customers

Building strong brands

Shaping the market offering

Delivering value

Communicating value

Creating long term growth

ACTIVITY

Pick up any company and examine its holistic marketing approach