Strategic Planning:
Gaining a competitive edge
Marketing
• Marketing has two facets
– A philosophy, an attitude, a perspective, or a
management orientation that stresses customer
satisfaction
– An organization function and a set of processes
used to implement this philosophy
Marketing Philosophies
• Each group needs to be the expert for a
philosophy
• You are going to read a specific section
pertaining to a Marketing Orientation
– Define it
– 2 Advantages of it
– 2 Disadvantages of it
– Example of company that uses this approach
Marketing Management Philosophies
• Four Company Philosophies strongly influence
an organizations marketing process
1.
2.
3.
4.
Production
Sales
Market
Societal Marketing
Marketing Management Philosophies
• Production Orientation
– A philosophy that focuses on internal capabilities of the firm rather
than on the desires and needs of the marketplace
• Field of Dreams Approach
“If we build it; they will come”
– Management asses its resources and asks
•
•
•
•
What can we do best?
What can our engineers design?
What is easy to produce given our equipment?
What services are most convenient for the firm to offer?
– Sometimes fails because it does not consider whether the goods or
services produced effectively meet the wants and needs of its
customers
Marketing Management Philosophies
• Sales Orientation
– Based on the ideas that people will buy more
goods and services if aggressive sales techniques
are used & that high sales result in high profits.
– Marketing means selling things & collecting
money
– There is often a lack of understanding of customer
wants & needs
Marketing Management Philosophies
• Market Orientation
– Designed around the marketing concept
• Strive to meet customers wants and needs while meeting
company objectives
– What the company produces is not as important as what
the customer assumes they are buying (value)
– Focus on customer while maintaining a competitive
advantage
– Integrate all the organizations activities so that wants &
needs are met
– Achieve long-term goals for the organization by satisfying
customer wants & needs responsibly
Marketing Management Philosophies
• Societal Marketing Orientation
– An organization exists not only to satisfy customer
wants and needs and to meet organizational
objectives but also to preserve or enhance
individuals & society's long term best interest.
– Societal Companies
• Emphasize a green environment
• Create environmentally friendly products
• More durable products
Difference Between
Sales & Market Orientations
What is the
organizations'
focus?
What
To whom is
business are the product
you in?
directed?
What is your How do you
primary
seek to
goal?
achieve your
goal?
Sales
Orientation
Inwards, on
organizations
needs
Selling goods
& services
Everybody
Profit
through
maximization
Primarily
through
intensive
promotion
Market
Orientation
Outward, on the
wants &
preferences of
customers
Satisfying
customer
wants and
needs and
delivering
superior value
Specific groups
of people
Profit through
customer
satisfaction
Through
coordinated
marketing and
interfunctional
activities
Quiz :
Complete the chart based on the philosophy that best fits