WEEK2
Evolution of marketing
Production Product Selling Market
Production orientation
• Companies adopted production concept due
to high industrialization
• Mass production to lower costs
• Consumers will favor products that are highly
available & affordable
• Focus on improving production
Production orientation
• This concept is one of the oldest philosophies
that guide the sellers . The production concept
is a useful philosophy in two types of
situations :
• - When the demand for a product exceeds the
supply , managers should look for ways to increase
production .
• - When the product’s cost is too high and an
improved productivity is needed to bring it down .
• Note ! It can lead to marketing myopia
Product orientation
• The product concept holds that consumers
will favor products that offer the best quality,
performance and innovative features . Under
this concept, marketing strategy focuses on
making continuous product improvements .
• This orientation leads to obsession with
technology because managers believe that
technical superiority is the key to business
success .
Sales orientation
• Strong demand for products subsided
• Businesses focus on aggressive selling to
increase profits
• Consumers will only buy enough if the
company does enough selling of the
products
• Aim is to sell what the company makes
Sales orientation
• Many organizations follow the selling concept,
which holds that consumers will not buy
enough of the organization’s products unless it
undertakes a large-scale selling and
promotion effort .
• This concept is typically practiced with
unsought goods such as insurance etc .
• A selling oriented organization focuses on
short term results, profits through sales now
Sales orientation
• Most firms practice the selling concept when
they face overcapacity . The aim is to sell what
they make rather than make what the market
wants .
• This strategy carries high risks .
Marketing orientation
• The marketing concept holds that
achieving organizational goals depends
on determining the needs and wants of
the target markets and delivering the
desired satisfactions more effectively
than the competitors do .
Marketing orientation
• Organizations should provide products
that satisfy customers needs through a
coordinated set of activities
• Basis – know what customers want &
develop products to satisfy those needs
• Often requires altering, adapting, &
developing offers to keep pace with
changing preferences
Marketing orientation
• Guides organizational activities
• Marketing begins and ends with
customers
Marketing orientation
Orientations
Concept Start point Focus Means Ends
Production Production Production Mass Profits high
capacity efficiency distribution demand
Selling Factory Existing Selling & Profits through
products promotion sales volume
Marketing Market – Customer Integrated Profits through
customer needs & mkt marketing customer
needs opportunities satisfaction
• Marketing myopia?
Societal Marketing orientation
• The societal marketing concept holds that
the organization should determine the
needs and wants and interests of target
markets .
• It should then deliver the desired
satisfaction more effectively and efficiently
than competitors in a way that maintains or
improves the consumer and the society’s
well-being .
Societal Marketing orientation
• The societal marketing concept questions
whether the pure marketing concept is
adequate in the age of environmental
problems ,resource shortage ,world-
wide economic problems and neglected
social services .
Societal Marketing orientation
Relationship Marketing orientation
• Discussion next class
Marketing management
• Definition – the art and science of choosing
target markets and building profitable
relationships with them
• the process of planning, organizing,
implementing and controlling marketing
activities to facilitate exchanges effectively &
efficiently
• Enables development of marketing strategies
Marketing management
• Aims to design strategies that will engage
target customers and build profitable
relationships
• Strategies are guided by which
orientation?
Marketing management
• There are five main alternative concepts
under which organizations conduct their
marketing activities :
– Production
– Product
– Sales
– Marketing
– Societal
Marketing management
Marketing management
• Effectiveness – the degree of meeting
objectives , doing the right thing, focus on
customers.
• Efficiency – using minimal resources to
produce the best results , focus on cost
• Companies aim for both efficiency &
effectiveness
Marketing management
Ineffective Effective
Inefficient ? ?
Efficient ? ?
Decisions have to be made on the markets
firms operate in.
What happens to companies that operate in
these frames? Give practical examples
Marketing management
Ineffective Effective
Inefficient DIES QUICKLY SURVIVES
Efficient SLOW DEATH THRIVES
