Company Orientation Towards Marketing Place

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

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

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 Concept

The Marketing Concept

2.

It focuses on need of seller

2.

It focuses on needs of the buyer

4.

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

4.

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

Internal Marketing

Integrated Marketing Holistic Marketi ng

Performa nce Marketing

Relations hip 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 Marketing Mix Pr od uct Pdt. Variety Quality Design Features Brand Name Packaging Sizes Services Warranties return

Pr ice List Price Discount Allowances Payment Periods Credit Terms

Pr omot ion Sales Promotion Advertising Sales Force Public Relations Direct Marketing

Pl ace Channels Coverage Assortmen t Locations Inventory Transport

Each marketing tool must be designed to deliver customer value

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

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