MARKETING CONCEPTS

FOCUS Selling

MEANS

ENDS

Products Aggressive Selling Maximize and Sales profits Promotion with through sales emphasis on price volume variations to close the sale. “I must somehow hook the customer” Maximize profits encompassing product, through price, increased promotion and customer distribution, backed up by adequate satisfaction environmental scanning, and consumer research, and hence raise opportunity analysis with market share
emphasis on service. “What can we do that will make us, in the customer’s eyes, better than and superior to our

Marketing Customer Integrated Marketing Plan Needs

Marketing Management Philosophies

Societal Marketing Concept Societal Marketing Concept Marketing Concept Marketing Concept Selling Concept Selling Concept Product Concept Product Concept Production Concept Production Concept

1. Production Orientation
• Focuses on internal capabilities of firm(focus on those products that it could produce more efficiently-low cost). • “ Field of Dreams” strategy • Best used when
– “If we build it, they will come” – competition is weak – demand exceeds supply – generic products competing solely on price

• Problem is that they don’t understand wants/needs of marketplace.

2. Product orientation
• This is subtly different from a production orientation. Consider a business that is “obsessed” with its own products – perhaps even arrogant about how good they are. Their products may start out as fully up-todate and technical leaders. • However, by failing to consider changing technological developments or subtle changes in consumer tastes, a productorientated business may find that its products start to lose ground to competitors

3. Sales Orientation
• People will buy more goods/services if aggressive sales techniques are used. • High sales will result in high profits. • Used with unsought products
– life insurance – encyclopedias

• Problem is that they don’t understand wants/needs of marketplace.

4. Marketing Orientation
Marketing concept: The social and economic justification for an organization’s existence is the satisfaction of customer wants and needs, while meeting organizational objectives.

Marketing Orientation . . .
• Focusing on customer wants so the organization can distinguish its products from competitors’ . • Integrating all the organization’s activities, including promotion, to satisfy these wants. • Achieving long term goals for the organization by satisfying customer wants and needs legally and responsibly.

Marketing Orientation . . .
• Requires:
– Top management leadership – A customer focus – Competitor intelligence
• strengths • weaknesses

– Inter-functional coordination to meet customer wants/needs and deliver superior values.

Philip Knight, Chairman and CEO of Nike said:
“For years we thought of ourselves as a production-oriented company, meaning we put all our emphasis on designing and manufacturing the product. But now we understand that the most important thing we do is market the product.”

Societal Marketing Concept

This Is a Need
Needs - state of felt deprivation including physical, social, and individual needs.

This Is a Want
Wants - form that a human need takes, as shaped by culture and individual personality.

Need / Want Fulfillment

• Needs and Wants Fulfilled through a Marketing Offer :
– Some combination of products, services, information, or experiences offered to a market to satisfy a need or want.

What Satisfies Consumers’ Needs and Wants?
Products Products

nything that can be Offered to a Market to Satisfy a Need or Wan Anything that can be Offered to a Market to Satisfy a Need or Want

Persons Persons

Places Places

Organizations Organizations

Information Information

Ideas Ideas

Activity or Benefit Offered for Sale That is Essentially Activity or Benefit Offered for Sale That is Essentially Intangible and Does Not Result in the Ownership of Anything Intangible and Does Not Result in the Ownership of Anything

Services Services

Marketing Myopia
• Sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products. • They focus on the “wants” and lose sight of the “needs.”

This Is Demand
Wants Buying Power

“Demand”

Needs, Wants and Demands
Businesses therefore have not only to make products that consumers want, but they also have to make them affordable to a sufficient number to create profitable demand.

customers or consumers?

Customer care in 2020….

Operator : "Thank you for calling Pizza Hut . May I have your..." Customer: "Hello, can I order.." Operator : "Can I have your multi purpose card number first, Sir?" Customer: "It's eh..., hold..........on......889861356102049998-45-54610" Operator : "OK... you're... Mr Singh and you're calling from 17 Jalan Kayu. Your home number is 4094! 2366, your office 76452302 and your mobile is 0142662566. Which number are you calling from now Sir?" Customer: "Home! How did you get all my phone numbers? Operator : "We are connected to the system Sir"


 
 

Customer: "May I order your Seafood Pizza..." Operator : "That's not a good idea Sir" Customer: "How come?" Operator : "According to your medical records, you have high blood pressure and even higher cholesterol level Sir" Customer: "What?... What do you recommend then?" Operator : "Try our Low Fat Hokkien Mee Pizza. You'll like it" Customer: "How do you know for sure?" Operator : "You borrowed a book entitled "Popular Hokkien Dishes" from the National Library last week Sir" Customer: "OK I give up... Give me three family size ones then, how much will that cost?" Operator : "That should be enough for your family of 10, Sir. The total is $49.99"

Customer: "Can I pay by! credit card?" Operator : "I'm afraid you have to pay us cash, Sir. Your credit card is over the limit and you owe your bank $3,720.55 since October last year. That's not including the late payment charges on your housing loan, Sir." Customer: "I guess I have to run to the neighbourhood ATM and withdraw some cash before your guy arrives" Operator : "You can't Sir. Based on the records, you've reached your daily limit on machine withdrawal today" Customer: "Never mind just send the pizzas, I'll have the cash ready. How long is it gonna take anyway?" Operator : "About 45 minutes Sir, but if you can't wait you can always come and collect it on your motorcycle..." Customer: " What!" Operator : "According to the details in system ,you own a Scooter,...registration number 1123..." Customer: " ????"

Operator : "Is there anything else Sir?" Customer: "Nothing... by the way... aren't you giving me that 3 free bottles of cola as advertised?" Operator : "We normally would Sir, but based on your records you're also diabetic....... " Customer: #$$^%&$@$% ^ Operator : "Better watch your language Sir. Remember on 15th July 1987 you were convicted of using abusive language on a policeman...?" Customer: Faints

Task……

Describe how the operation of a product oriented shoe manufacturer might be different from the operation of a market-oriented shoe manufacturer.

MARKETING MIX

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