dr.b.n.f. warnakulasooriya1 company orientations toward market places dr. b.n.f. warnakulasooriya...

Dr.B.N.F. Warnakulasooriya 1

Company orientations toward market Places

Dr. B.N.F. Warnakulasooriya

M.Sc. in Management ProgrammeUniversity of Sri Jayewardenepura


Company orientations toward market Places

Strategic orientation guides an organization’s alignment with its environment by shaping its strategic attributes and competencies.

An orgn can integrate or align itself to its environment in a variety of ways


• What orientation should guide the marketing effort? What weight should be given to the organization ,customer and society

Common alternative strategic marketing orientations are

The Production concept The product concept The selling concept

The marketing concept

Societal marketing Concept The Holistic Marketing concept

.


The Production ConceptConsumers will favour products that are widely available and highly affordable. Concentrate on improving production and distribution efficiency• When Demand exceeds the supply

• Product’s cost is too high and improved productivity is needed to bring it down

The Product Concept

Consumers favour products that offer the most quality, performance and features. Organizations should concentrate on making superior products and improving them over time. This concept leads to “marketing myopia”


The selling concept. Customer will not buy enough of the organization product unless it undertakes a large selling and promotion effort. The selling concept tries to sell what it makes rather than make what the market wants

The selling concept is practiced with : Unsought goodsNon profit areaOver capacity

The marketing concept

Determine the needs and wants of the target market and deliver the the desired satisfaction more effectively and efficiently than competitors.


The Marketing Concept rest on four main pillars: Market focus ( target market) Customer needs Coordinated marketing Profitability

Selling vs marketing conceptStarting point

factory

Target market

Focus

product

Customer needs

meansSelling and promoting

Coordinated marketing

ends

Profit through sales volume

Profit through customer satisfaction

Inside out perspective

Outside in perspective

SC

MC


• Marketing Concept Criticized due to the limitation of its

practical value and difficulty of operational definition

It was unclear to the practitioners seeking to implement the marketing concept as to what precisely the marketing concept is, what specific activities that translate the philosophy into practice and what actual effect the concept has on business performance


• Market Orientation “The organization-wide generation of market

intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it”

Market orientation consists of three behavioral components

• Customer orientation • Competitor orientation• Inter-functional coordination


• Reactive Market orientation- Understanding and meeting customers’ expressed needs.

• Proactive Market orientation- Understanding and meeting customers’ latent needs

• Total Market orientation - Reactive Market orientation + Proactive Market orientation


Competitor Emphasis

Custom

er Em

phasis

Minor

Major

Minor Major

Self -Centered

Competitor Centered

Customer Oriented

Market Driven


Holistic Marketing

• Holistic Marketing is an approach to marketing that attempts to recognize and reconcile the scope and complexities of marketing activities.

• It is based on the development, design, and implementation of marketing programmes, processes, and activities that recognizes their breadth and interdependencies.

• Holistic marketing recognizes that “Everything matters” with marketing- and that a broad, integrated perspective is often necessary.


SociallyResponsible

Marketing

InternalMarketing

RelationshipMarketing

Integrated Marketing

HolisticMarketing

Ethics

Environment

Legal

Community

Channel Communications

Products and Services

Customers

Channel

Partners

Other Department Senior

Management

Marketing Department


• Integrated Marketing – devise marketing activities and assemble fully integrated marketing programme to create, communicate and deliver value for consumers (fig).

• Must integrate orgn’s systems for demand management, resource management and network management.

p

pp

p


Internal Marketing

• Ensure that everyone in the orgn embraces market Orientation.

• Hire, train and motivate able employees who shares service ethic attitudes (WEA- holds that work is a satisfying end itself. By performing work they can find satisfying, even pleasurable ,results and self fulfillments, they want to serve the customer well)

• Marketing activities within the orgn are as important as, or even more than, external marketing.


• Social Responsibility Marketing - extension of the cause and effect of marketing beyond the company and the consumer to society as a whole. SR requires that marketers carefully considers the role that they are playing and could play in terms of social welfare. This enlarges the marketing concept to Societal Marketing Concept.


Societal Marketing concept

Societal Marketing concept

Society (Human welfare)

Company (profit)

Consumers (needs and wants satisfaction)

SMC calls upon marketers to build social and ethical considerations into their marketing practices.


Relationship Marketing

• Develop deep, enduring and mutually satisfying long term relationships with all people or organizations that could directly or indirectly affect the success of the firm’s marketing activities.

• The ultimate outcome of relationship marketing is the building of a unique company asset “Marketing Network” – company and its supporting stakeholders with whom it has built mutually profitable business relationship.

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