Five Market Orientations

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

y ³ Field of Dreams´ strategy  ³If 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 don¶t understand wants/needs of marketplace.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 ³ Marketing Myopia . & features thereby devoting a company¶s energy to making continuous product improvements.Product Concept y The idea that consumers will favor products that offer the most quality. performance. y Make & sell concept y Focus on making superior products y No customer input y Less competitor product examination.

y Focuses on creating sales-transactions rather than long term profitable relationships. y Practiced most aggressively with unsought goods eg. insurance.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 ³Political Relationships´ . encyclopedias.

Selling Concept y People will buy more goods/services if aggressive sales techniques are used. y Used with unsought products  life insurance  encyclopedias y Problem is that they don¶t understand wants/needs of marketplace . y High sales will result in high profits.

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 .

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

Marketing Concept Requires:  op management leadership  A customer focus  Competitor intelligence Ùstrengths Ùweaknesses  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 Organization¶s needs Selling goods/services Everybody Profit through max. sales volume Intensive promotion y y y y y Marketing Focus Customer¶s needs Satisfying customer wants/needs Specific groups of people Profit through customer satisfaction Coordinated mktg. activities (4 p¶s) .

Society (Human Welfare) Societal Consumers (Want Satisfaction) marketing concept Company (Profits) .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 as a whole . but also to preserve and enhance individuals¶ and society¶s long-term best interests.Societal Marketing Concept y Organization exists not only to satisfy customer wants/needs and to meet organizational objectives. y Extends marketing concept to serve one more customer .

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