Marketing orientations

Marketing orientations

1. MARKETING ORIENTATIONS

2. Until the 1950s, a majority of companies relied on the production
orientation concept. This idea assumed that as long as they produced high-
quality products, businesses would remain profitable. However, in today’s
hypercompetitive global markets, where consumers have a proliferation of
choices, companies have to maintain a competitive edge to beat the
competition.
That’s where market orientation concepts come in.

3. Marketingorientationisthebusinessapproachthatdictatesallthe
processeswithinthatorganization.Itoutlineshowthecompany’s
coreofferingispresentedtoitsusersandhowthemarketingteams
areempowered.

4. MARKETING ORIENTATION CONCEPTS

5. PRODUCTION ORIENTATION
Aproductionorientatedorganisationcommonlyoperatesamass
productionmodelandstreamlinesthisproductionprocessforitsproduct
offering.Thisorientationapproachassumesthatitscustomersvalue
price,andtherefore,itfocusesonloweringproductioncoststomeetsuch
priceneedsofthiscustomerbase.
Thispriceisbelievedtoformthemainvaluepropositionofthe
productionorientationorganisation’skeyoffering,focusingitsresources
towardsoperationsandpositioningitskeymarketingcommunicationson
price-basedmessages.
Advantages:Economies of scale, efficiency, low cost to customers.
Disadvantages:Disregards customer needs, set-up costs are usually high.

6. PRODUCT ORIENTATION
Thisapproachtobusinessconcernsitsproductsandcontinually
improvingandrefiningthemsothattheproductcanalwaysbesuperior
tothatofitscompetitors.So,asthepreviousorientationwascentred
aroundprice,productorientationiscentredaroundquality,whichoften
increasestheprice.
Advantages: Focuson quality,innovation,skills
development/outsourcing.
Disadvantages:Potentialmissedmarketopportunities,obsolescence.

7. SALES ORIENTATION
Asalesorientatedorganisationfocusesthemajorityofitsresourcesonsellingits
productsandservicestoitstargetaudience.Inaway,itdoesprioritiseits
customersbutnotinasenseoflisteningtotheirneedsandwants–itsimply
wantstoselltothem.
Existingproductsareusuallygiventothesalesandmarketingteamsandthey
aretaskedtofindingbuyerstothoseproducts,whereverandwhoeverthey
maybe.Manyorganisationswillfeeltheyarenotsellingenoughoftheir
productsandwill,therefore,adoptsalesorientatedtechniquestofocusthe
organisationonsellingmoreandbuildingonitsprofitmargins.
Advantages:Immediate short-term sales are generated.
Disadvantages:Risks customer confidence, costs, not always sustainable.

8. SOCIETAL ORIENTATION
As people generally become more aware of their environments, the world
and the societies they live within, the societal orientation approach has
emerged, giving organisationsa new organisationalphilosophy.
The societal orientation organisation, considering its product, process and
its marketing, to an extent, focuses on the impact its organisationand
products has within the societies it operates within, as well as the wider
environment.
Advantages:Image is enhanced, appeals to upcoming markets, ethical.
Disadvantages:Marketing message is sometimes distorted, limited
budget.

9. MARKET ORIENTATION
Amarketorientatedorganisationlooksatthemarketanditstargetaudiencefirst,before
anyproductionorsalesactivitiestakesplace,tolearnwhatpotentialcustomerswantfrom
organisations.Theproductorserviceofferingisthereforecreatedwiththecustomerinmind,
resultinginatruecustomer-firstapproach.
Market-orientedbusinessesfocusonanalyzingthetargetaudiencetodeterminetheirneeds
anddesignaproducttofitthoseneeds.Thisbusinessmodelcenterseverythingaroundwhat
thecustomerwantsratherthanonpromotions.Marketorientationrevolvesaroundcustomer
satisfactionandreactingtothedemandsofthecustomer.
Advantages:Customer satisfaction, loyalty, continual investment in research.
Disadvantages:Reactive, not always innovative, market always changing.

10. Marketorientationismoreofanapproachtoproductdesignratherthan
promotion.Itmeansthatthepriorityistoanalyzethetargetaudienceand
determinetheirneedsinsteadofundertakinganypromotionalorsalesactivity.The
needsarekeptinmindwhiledevelopingandupgradingtheproductoffering.
Amarket-orientedorganizationusesacustomer-centeredapproach,whichmeans
thatthemostpressingconcerns,immediateneeds,andpersonalpreferencesofthe
consumerbasemustberesearched.
Thestrategymustbefocusedonvalues,culture,andotherbehavioraltraitsofthe
consumerbase.Thus,thedevelopmenteffortsoftheorganizationarefocusedon
characteristicsthataremostwidelydemanded.Thisenablescompaniestoadapt
todifferentmarketsandenhancecompetitiveness.

11. THANKS