Company orientations towards the marketplace

By Jyoti Sikka, S.S.C.B.S.

Presentation Outline

Production concept Product concept Selling concept Marketing concept Holistic marketing concept

Relationship marketing Integrated marketing Internal marketing Socially responsible marketing

Production Concept

Consumers favor products that are available and highly affordable

Improve production and distribution Focus On Manufacturing (D>S) Goal: Produce All That Is Possible

Product Concept Assumption: Consumers favor products that

offer the most quality, performance, and innovative features

Focus on Manufacturing (D>S) Means: Make quality products “You can have any color you want as long as

it’s black.” “Make the best product you can and people

will buy it.” “Build a better mousetrap”

Selling Concept

Mid-1920s–early 1950s: weakened demand required that products would have to be “sold.” (personal selling, advertising, and distribution was the focus)

Focus on selling existing products (D=S) Means: Aggressive Sales & promotion Goal: Maximize Sales “Sell this inventory no matter what it takes.” “You don’t like black? I’ll throw a set of

glassware.”

Marketing Concept

Early 1950s–2000s: adopting a customer focus means a commitment to researching and responding to customer needs.

Long-Run View Consumer want focus Integrated planning and feedback Adapt to the environment

Selling versus Marketing

SellingSelling

FactoryFactory ProductProduct Selling &Selling & Profits throughProfits throughpromotingpromoting sales volumesales volume

FactoryFactory ProductProduct Selling &Selling & Profits throughProfits throughpromotingpromoting sales volumesales volume

Starting Starting pointpoint FocusFocus MeansMeans EndsEnds

MarketingMarketing

TargetTarget CustomerCustomer IntegratedIntegrated Profits throughProfits throughmarketmarket needsneeds marketingmarketing customer satisfactioncustomer satisfaction

TargetTarget CustomerCustomer IntegratedIntegrated Profits throughProfits throughmarketmarket needsneeds marketingmarketing customer satisfactioncustomer satisfaction

Marketing is not synonymous with “sales” or “advertising”.

Holistic Marketing Concept 1

Relationship Marketing Developing Marketing Networks Using CRM

is “the overall process of building & maintaining profitable customer relationships by delivering superior customer value and satisfaction.” (Kotler, 13ed 2006)

Using information to create marketing strategies that develop and sustain desirable customer relationships

Establishing long-term, mutually satisfying buyer-seller relationships allowing for mutual dependency

Holistic Marketing Concept 2

Integrated Marketing is a comprehensive plan that communicates and

delivers the intended value to chosen customers a set of coordinated cross functional activities (a

unity of purpose) traditional approach- McCarthy 4P’s Robert Lauterborn- 4C’s

Holistic Marketing Concept 3

Internal Marketing External Customers Internal Customers

Marketing ImplementationMarketing Implementation

Marketing StrategyMarketing Strategy

Internal MarketingInternal MarketingProgram Program

Marketing MixMarketing Mix

External MarketingExternal MarketingProgramProgram

Marketing MixMarketing Mix

Target Groups WithinTarget Groups Withinthe Organizationthe Organization

Customer Groups orCustomer Groups orTarget MarketsTarget Markets

Marketing ImplementationMarketing Implementation

Marketing StrategyMarketing Strategy

Internal MarketingInternal MarketingProgram Program

Marketing MixMarketing Mix

External MarketingExternal MarketingProgramProgram

Marketing MixMarketing Mix

Target Groups WithinTarget Groups Withinthe Organizationthe Organization

Target Groups WithinTarget Groups Withinthe Organizationthe Organization

Customer Groups orCustomer Groups orTarget MarketsTarget Markets

Customer Groups orCustomer Groups orTarget MarketsTarget Markets

Holistic Marketing Concept 4

Social responsibility Marketing Act socially responsibly; consider the ethical consequences of one’s actions; Focus on satisfying customer needs and

wants while enhancing individual and societal well-being

Consider the collective needs of society as well as customer desires and the organization’s profits. (Bell& Emory,1971 JM) Society..…… #1 (Human welfare) Consumers ..#2 (Want satisfaction) Company ….#3 (Profits)

QUESTIONS ??????