Five Market Orientations

1. Production Concept 2. Product Concept 3. Selling Concept 4. Marketing Concept 5. Societal Marketing Concept

Production Concept
The idea that consumers will favor products that are available & highly affordable & that the organization should therefore focus on improving production & distribution efficiency. y Focuses on internal capabilities of firm. y Field of Dreams strategy


If we build it, they will come

y Best used when  competition is weak  demand exceeds supply  generic products competing solely on price y Problem is that they dont understand wants/needs of

marketplace.

Product Concept
y The idea that consumers will favor products that

offer the most quality, performance, & features thereby devoting a companys energy to making continuous product improvements.

y Make & sell concept y Focus on making superior products y No customer input y Less competitor product examination. y Marketing Myopia

Selling Concept
y The idea that consumers will not buy enough of the

firms products unless it undertakes a large scale selling & promotion effort. y Practiced most aggressively with unsought goods eg, insurance, encyclopedias. y Focuses on creating sales-transactions rather than long term profitable relationships. y Political Relationships

Selling Concept
y People will buy more goods/services if aggressive

sales techniques are used. y High sales will result in high profits. y Used with unsought products  life insurance  encyclopedias y Problem is that they dont understand wants/needs of marketplace

Marketing Concept
y The

marketing management philosophy that achieving organizational goals depends on knowing the needs & wants of target markets & delivering the desired satisfactions better than competitors. y Sense & respond philosophy. y Finding right products for customers y Customer-driving marketing understanding customer needs even better than the customers themselves

Marketing Concept
Marketing concept: The social and economic justification for an organizations existence is the satisfaction of customer wants and needs, while meeting organizational objectives y Focusing on customer wants so the organization can distinguish its products from competitors . y Integrating all the organizations activities, including promotion, to satisfy these wants. y Achieving long term goals for the organization by satisfying customer wants and needs legally and responsibly

Marketing Concept
Requires:  op management leadership  A customer focus  Competitor intelligence strengths weaknesses  Inter functional coordination to meet customer wants/needs and deliver superior values.

Contrast between Sales Concept & Marketing Concept

y y y y y

Sales Focus Organizations needs Selling goods/services Everybody Profit through max. sales volume Intensive promotion

y y y y y

Marketing Focus Customers needs Satisfying customer wants/needs Specific groups of people Profit through customer satisfaction Coordinated mktg. activities (4 ps)

Societal Marketing Concept

Holds that marketing strategy should deliver value to customers in a way that maintains or improves both consumers & the societies well-being.
Society (Human Welfare)

Societal Consumers (Want Satisfaction) marketing concept Company (Profits)

Societal Marketing Concept

y Organization exists not only to satisfy customer

wants/needs and to meet organizational objectives, but also to preserve and enhance individuals and societys long-term best interests. y Extends marketing concept to serve one more customer - society as a whole