the marketing management philosophies(2)

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The Marketing ManagementPhilosophies

BA 5 Principles of Marketing

Prof. Gwenetha Y.Pusta,PhD



Marketing Management

We describe marketing management ascarrying out tasks to achieve desired

exchanges with target markets. What philosophies should guide these

marketing efforts?

Five alternative concepts under whichorganizations conduct their marketingactivities.



The Production Concept

One of the oldest philosophies that guidesellers.

Firms choose to pursue a business philosophy

that focuses on making products that are widelyavailable, affordable and require little sellingeffort.

Based on the belief that products that are widely

available and affordable will sell. Therefore management should focus on

improving production and distribution efficiently.



Marketing as a Business

PhilosophyOuter

Directed

Inner

Directed

Product

Orientation

Sales

Orientation

Market

Orientation

Relationship

Marketing

Orientation



The Production Concept

Useful in two types of situations:

Occurs when the demand for a product

exceeds the supply. The second occurs when the product

cost is too high and improved

productivity is needed to bring it down.



If We Build It, They will Come

A secondary belief of the product orientationis that “good products will sell themselves”known as the product concept.

Also known as the “better mouse trap” fallacyand based on the idea that customers willalways prefer and therefore purchase thebest products in the market.

Customers look to purchase value – the bestproduct for the best price that best suits theirneeds and wants.



The Product Concept

The idea that consumers will favorproducts that offer the most qualityperformance, and features and that the

organization should therefore devote itsenergy to making continuous productimprovements.

Can lead to marketing “myopia”



Sales Orientation: Selling What

We Make Promotes the business philosophy of

“selling what we make”

Most firms practice the selling conceptwhen they have overcapacity.

Their aim is to sell what they make

rather than make what the marketwants.



The Market Orientation: Make

What We We Can Sell In contrast to product and sales

orientations, market-oriented firms

gather, share, and use informationabout “the market” (customer,

competitor, market trends) to make

decisions before engaging in the salesprocess.



Market Oriented Firms

Actively seek out customers’ needs and

wants and then develops and provides

products that satisfy previouslyidentified or anticipated shortages anddesires.

Can be described as those businessesthat practice the three pillars of themarketing concept.



The Three Pillars of the

Marketing Concept

L on g- t e r m

S u c c e s s

C o o r d i n a t e d

M a r k e t i n g

C u s t om e r F o c u s



Customer Focus

Pertains to obtaining information about thecustomer needs and wants and then providingproducts that fulfill these shortages anddesires.

Needs are unsatisfactory conditions thatprompt a customer to take action to make thecondition better.

Needs are basic and reflect shortages ofnecessities.

Wants are desires to obtain more satisfactionthan is absolutely necessary to improve the

unsatisfactory condition.



Coordinated Marketing Effort

It represents the business mindset thatadopting and implementing a market

orientation should not be the soleresponsibility of the marketingdepartment.

Is a group effort with a variety ofdepartments involved



Long-Term Success

Business achieve long-term success byconducting customer-oriented business

practices. Tends to focus on building and

maintaining customer relationships that

lasts a lifetime.



The Relationship Marketing

Concept Seeks to create and

sustain mutually satisfying

long-term relationship with

customers and key

players.

Referred to as the “350

degree view” of serving

customers.

Considers the impact of

operations and focuses

increasingly on sustaining

long-term relationship with

customers.



Three Considerations

Marketing Network

CRM Company

Relationship Marketing

Concept



A Marketing

Network

Includes the company and its stakeholders,who form mutually profitable businessrelationships.

Ex: HP network includes Intel, Nokia;Celestica and Agilent.

Marketing networks create environments thatfacilitate technological and marketingsynergies among companies and institutions.



Customer Relationship

Management CRM is the process of identifying, attracting,

differentiating and retaining customers.

Deals with business to business marketing,services marketing, personal selling andsales management.

The goal is to provide coordination amongcustomer functions by integrating people,process and technology to maximizerelationships with customers.



Summary

Learning objective of understandingconcepts and fundamental differences

of business philosophies or orientations. Product oriented firms are

manufacturing oriented, focusing largely

on product itself. Disadvantage: unsold inventories



Summary

Consequently, the business is facedwith becoming sales oriented and

communicating to the market why itsproduct would be of interest toconsumers.

In contrast market oriented firms gather,share and use information about the“market” to make a decision.



Summary

Hence, marketing as a business philosophy isbest described by those businesses that

practice the three pillars – customer focus,coordinated marketing and long-termsuccess.

Finally relationship marketing seeks to create

and sustain mutually satisfying long-termrelationships with customers and key players.

the marketing management philosophies(2)

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