Lec-4 marketing orientations.pptx

marketing orientation

1. Evolution of Marketing Concept Production Concept Product Concept Selling Concept Marketing Concept I have produced something , Customers will accept it Let me add few new features to my product Push the products in the market by sales promotion methods Focus on what consumers need or want

2. Orientation Towards The Market Place

3. Production Concept Oldest Concept Believed That Consumers Prefer Available Goods Focus Is On Efficient Production And Mass Distribution This Orientation Makes Sense In Developing Countries Efforts On Reducing Costs To Provide Inexpensive Goods

4. Product Concept Focus Is On Making Superior Goods Believed That Consumers Prefer Goods With Best Quality & Innovative Features Importance Is Given To Improvising The Product Less Focus On Consumers Need Goods Sell Themselves

5. Selling Concept Aggressive Selling And Promotion Effort Sell More Stuff To More People And More Often Used With Goods Which Buyers Usually Don’t Think Of Buying (Unsought Goods) Such As Insurance Sell What Is Made Not What Market Wants Carries High Risk As Can Result Into Negative Word Of Mouth

6. Marketing Concept Emerged In Mid 1950s Find Right Product For The Customers Focus Is On Creating, Communicating And Delivering Superior Customer Value Build Profit Through Customer Satisfaction And Loyalty Begins With Well Defined Market And Ends With Long Term Relationship

7. CHP: 1&5 - 7 Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept Consumers favor products that are available and highly affordable. Improve production and distribution. Consumers favor products that offer the most quality, performance, and innovative features. Consumers will buy products only if the company promotes/ sells these products. Focuses on needs/ wants of target markets & delivering satisfaction better than competitors. Focuses on needs/ wants of target markets & delivering superior value. Review Marketing Management Philosophies

8. Review: Marketing Management Philosophies Production Sales Marketing Societal What can we make or do best? How can we sell more aggressively? What do customers want and need? What do customers want and need, and how can we benefit society? Orientation Focus

9. Review: Sales vs. Market Orientations Organization’s Focus Firm’s Business For Whom? Primary Profit Goal? Tools to Achieve Selling goods and services Everybody Maximum sales volume Primarily promotion Inward Sales Orientation Market Orientation Outward Coordinated use of all marketing activities Customer satisfaction Specific groups of people Satisfying wants and needs 3

10. Difference between Marketing and Selling MARKETING SALES Focuses n customer’s needs Focuses on Seller’s needs Customer Enjoys Supreme importance Product enjoys supreme importance Product Planning and development to match products with markets High pressure selling to sell gods already produced Converts customer’s needs into products Converts products into cash Profits through customer satisfaction Profits through sales volume Consumers determine the price; price determines costs Cost determines the price It assumes: “Let the seller beware” (Caveat Vendor) It assumes: “Let the buyer beware” (Caveat Emptor)

11. Selling is only the tip of the iceberg Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1- 11 “ There will always be a need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available.” Peter Drucker

12. Components Characterizing Holistic Marketing

13. 13 Relationship Marketing Era Began in 1990s Carried customer orientation even further Focuses on establishing and maintaining relationships with both customers and suppliers Involves long–term, value–added relationships

14. Relationship marketing This is where the firm manages its relationship with suppliers to customers in an effective manner while considering long term benefits rather than short term profits. Managing relationships have 03 aspects.

15. Customers- Customers include relationship with internal (inter departmental relationships) and external customers (customers at market place) of the product. Organization should attract customers who are profitable and build long tern relationship with them by identifying and satisfying their needs accordingly. Customer retention is given more priority as attracting new customers is expensive. Partners ( Channels, Suppliers, distributors, dealers & agencies) - This includes every organization who are involved to delivering goods to customers and it includes the suppliers as well. Organization should build good long term relationship with suppliers and dealers as they play a major role in making the goods available to customers. Failure in dealers or suppliers can result in loss of customers and reputation of the organization and firm should manage relationships effectively providing win-win situation. Members of Financial Community( shareholders, investors, analysts ) - This is where the firm has to manage its relationship effectively with people who provide finance for them. Basically it means managing relationship with its shareholders and other fund providers and marketing department should take necessary steps to achieve their objectives as well (that is achieving high profits)

16. Less toxic products More durable products Products with reusable or recyclable materials Societal Marketing Orientation Marketing that preserves or enhances an individual’s and society’s long-term best interests 2

17. Socially responsible marketing This is where the firm carries out its marketing activities in a way that it fulfills its responsibilities towards the society. Making only profits will not let the company survive in long run and they should be a good corporate citizen and build good public image of the company which will ultimately motivate consumers to purchase goods.

18. Being ethical- The Company should do the right thing in a right manner in a way which results in less negative impacts to the society. Mainly company should refrain from manipulating product benefit and use ethical advertising to promote the product. Environment friendliness- The firm should not harm the environment in carrying out marketing activities and they should participate in environment protection. This is basically known as green marketing. Abide by law- Company should respect the law of the country and should not engage in law breaking activities in carrying out marketing activities. Community- The firm should respect the values and beliefs of society and should not carry out marketing activities which can cause unreasonable disturbance to the society. Failure to do so can result in protests and bans which will ultimately result in loss of reputation and closure of operations.

19. Internal Marketing where the company focuses on internal organization and carries out marketing activities internally. This include 3 elements.

20. Marketing department- Marketing department should consist of people who understand wide aspects of marketing and they should be able to carry out marketing function within the marketing department by understanding the need of department as whole and individual needs of the workers. Senior management- Senior management should be well aware of the marketing concept and they should support the concept by making decisions in favor of marketing for marketing to occur within the organizations. Many organizations fail in marketing due to lack of the commitment from the senior management in making marketing as a strategic function. Other departments- In making marketing as a strategic function other department should support the concept of marketing and they should work collaboratively with marketing department. As an example production department should understand the needs of customers and produce goods based on requirement which can be marketed by the marketing department .

21. Integrated marketing Product, place , price and promotion of the marketing plan are designed in an integrated manner to give a holistic view to marketing.  Product has to be designed based on customer needs and it should have the ability to satisfy customer needs. The product offering has to be communicated to the customer using appropriate promotional methods and product has to be made available to the customer making it convenience for purchase. (Focus is on creating, communicating and deliver values to the consumer)

22. Holistic Marketing - Benefits Helping achieve focus & direction Keeping customers happy & satisfied Attracting new business Professional company literature Professional image Differentiating from competitors Growing awareness of your business Creating the right environment for success Motivational support

23. Toyota Philosophy of Holistic Marketing “That every person can and should add value, that we always have room to do better and that when people believe in something they are capable of powerful things then you will find the "Secret to Your Success".

24. WHAT IS MARKETING MANAGEMENT ? Marketing Management is the analysis, planning, implementation and control of programs designed to create, build and maintain beneficial exchanges and relationships with target markets for the purpose of achieving Organisational objectives.

25. Marketing 1 Product Price Place Promotion Exchange A B Delivering value Communicating value Creating value Customer value and beneficial relationships

26. Marketing in Nut shell 1. How can we spot and choose the right market segment(s)? 2. How can we differentiate our offerings? 3. How should we respond to customers who buy on price? 4. How can we compete against lower-cost, lower-price competitors? 5. How far can we go in customizing our offering for each customer? 6. How can we grow our business? 7. How can we build stronger brands? 8. How can we reduce the cost of customer acquisition? 9. How can we keep our customers loyal longer? 10. How can we tell which customers are more important? 11. How can we measure the payback from different types of marketing communications? 12. How can we improve sales force productivity? 13. How can we establish multiple channels and yet manage channel conflict? 14. How can we get the other company departments to be more customer-oriented?

27. New Consumer Capabilities A substantial increase in buying power A greater variety of available goods and services A great amount of information about practically anything Greater ease in interacting and placing and receiving orders An ability to compare notes on products and services An amplified voice to influence public opinion Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 1- 32