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Mrs.

Jayashree Vispute

A production orientation focusing on manufacturing a product. A sales orientation focusing on selling a product. A marketing orientation focusing on satisfying the customers needs.

The The The The The The

exchange concept production concept product concept sales concept marketing concept societal concept

Orientations/Concepts/Philosophies
Production concept Product concept Selling concept Marketing concept

Societal Marketing concept

The exchange of a product between the seller and the buyer is the ventral idea of marketing. Exchange forms a significant part of marketing. Exchange at best covers the distribution aspect of the price mechanism. Concern for the customer, generation of value satisfactions, creative selling are overshadowed in this concept.

Production dominates the thinking process Marketing can be done by managing production. Cost reduction is achieved through maximizing of output. Assume that lower cost will bring customers. Customers are often motivated by various factors, besides price.

Production concept is the idea that consumers will favor products that are available or highly affordable.

Mass production/distribution of products Low costs, efficient (fast)

Product excellence, improved products, new products, ideally designed and engineered product are the focus. Emphasis on quality assurance. Assume that customers will automatically vote for products with high quality. Lots of time and money on research Ignore the consumer for whom the product is actually meant.

Product concept is the idea that consumers will favor products that offer the most quality, performance.

Focus

is

on

design

and

improvements

(healthier food / cosmetics that make you look 20 years younger)

Maintains that the company has to aggressively promote and push its products. Tools used are heavy advertisements, personal selling, discounts and promotional activities. Companies assume that sales is synonymous with marketing!!!

Selling concept is the idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort.

Inside-out approach Company-centric

Business should start with determination of consumer wants and end with the satisfaction of those wants. Consumers is both at the beginning and the end of the business cycle. Business organized around the marketing function. Customer is at the centre. Main tasks should be anticipating, stimulating and meeting customers requirement. Serve the needs of the customer.

Converting Needs to Wants

The need for a vacation becomes a desire to take Caribbean Holiday The need for fitness becomes a desire for exercise classes

Marketing concept is a modern idea that achieving organizational goals depends on knowing the needs and wants of the target markets. Outside-in approach Satisfaction and relationships are customer-centric

The offerings of a company to its customers have a direct bearing on the society as a whole. Companies are aware of their CSR Corporate Social Responsibilities. Especially concerned about the environment from where they use resources.

PRODUCTION ORIENTATION
Some industries and organizations remain at the production-orientation stage.

PRODUCTION ORIENTATION

SALES ORIENTATION

Other industries and organizations have progressed only to the sales-orientation stage. PRODUCTION ORIENTATION SALES ORIENTATION MARKETING ORIENTATION

Many industries and organizations have progressed to the marketing-orientation stage.


Late 1800s
1-5

Early 1930s

Mid-1950s

1900s

Copyright 1997 by The McGraw-Hill Companies, Inc.

Relationship Marketing An attempt to build personal, long-term bonds with

Mass Customization An attempt to provide affordable products customized to

customers. Relationship marketing has expanded to include all groups an organization interact with: suppliers, employees, unions, government, and even competitors.

come as close as possible to meeting the needs of individual customers. This is made possible because of advances in information technology.

Production Era

Prior to 1920s Production orientation Business success often defined solely in terms of production victories

Sales Era

Prior to 1950s Customers resist nonessential goods and services Personal selling and advertisings task is to convince them to buy

Marketing Era
Since 1950s Marketing Concept Emerges Satisfying customer needs

Emergence of the Marketing Concept


Shift from sellers to buyers market Companywide consumer orientation Objective of achieving longrun success

Relationship Era
Began in 1990s Carried customer orientation even further Focuses on establishing and maintaining relationships with both customers and suppliers Involves longterm, valueadded relationships

Marketing Myopia is managements failure to


recognize the scope of its business.
To avoid marketing myopia, companies must broadly define organizational goals toward consumer needs Focus on benefits