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Marketing Management
Philosophies
There are four
marketing
management
philosophies
LO2
•Production
•Sales
•Market
•Societal marketing
Production Orientation
• Field of Dreams orientation
– “If you build it, they will come.”
– Doesn’t consider if what is produced
meets market needs
– Can you think of a company today that
uses this form of marketing concept very
successfully?
LO2
• Apple-iPod
• 3M’s Post-it-Notes
Sales Orientation
• Marketing = Selling Things/Collecting
Money
– Disregards market needs and consumer
demand.
– Often find that, despite the quality of their
sales force, they cannot convince people to
buy goods or services that are neither
wanted nor needed.
LO2
• Toyota recalled millions of vehicles due to acceleration problems
and then the company to bring customers back used aggressive
sales incentives to lure people back, low Apr, lease amts
• Free Service packages
• Dot com business
Market Orientation
 Focusing
on customer wants and
needs to distinguish products from
competitors’ offerings
 Integrating all the organization’s
activities to satisfy these wants
 Achieving the organization’s long-term
goals by satisfying customer wants and
needs legally and responsibly
 Deliver superior customer value
LO2
HOW to Achieve a Marketing
Orientation

Obtain information about customers,
competitors, and markets

Examine the information from a total business
perspective

Determine how to deliver superior
customer value

Implement actions to provide value
to customers


LO2
Examples: LL Bean, Overstock.com, Zappos.com,
Amazon,com, QVC are the top5 US retailers for customers
service
Voted among the best in customer service Apple, Four
Season’s Hotel and Resorts
Societal Marketing
Orientation
An organization exists not only to satisfy
customer wants but also to preserve or enhance
individuals’ and society’s long-term best
interests.
For example:
• Less toxic products
• More durable products
• Products with reusable or recyclable
materials- Coca-cola, Microsoft
LO2
Questions That Help Determine
Marketing Philosophy
Orientation
LO2
Focus
Production
What can we make or do best?
Sales
How can we sell more
aggressively?
Marketing
What do customers
want and need?
Societal
What do customers want/need,
and how can we benefit society?
The Four Marketing
Management Philosophies
Orientation
Focus is on…
Production internal capabilities of the firm
Sales
LO2
Satisfy
customers-not
what management
thinks should be
produced or sold
aggressive sales techniques and belief
that high sales result in high profits
Market
satisfying customer needs and wants
while meeting objectives
Societal
satisfying customer needs and
wants while enhancing individual and
societal well-being
Differences between Sales and
Market Orientations
Market is
Focusing on customer wants
and needs
LO3
Sales
Discuss the
differences
between sales
and market
orientations
Disregards market
needs and consumer
demand.
Comparing the Sales and
Market Orientations
Compare through 5 characteristics:
• Organization’s focus
• Firm’s business
• Those to whom the product is directed
• Firm’s primary goal
• Tools the organization uses to achieve its
goals
LO3
The Organization’s Focus
Sales Orientation
Inward looking
What the firm makes
Market Orientation
Outward looking
What the market wants
LO3
Customer Value
The relationship between
benefits and the sacrifice
necessary to obtain those
benefits.
LO3
•California based mattress company ES Kluft
incorporates luxurious fibers such as cashmere and
silk into its mattresses to entice customers to buy it for
$33,000
•Barnes & Noble upscale bookstore adding more value
to its book offerings than its competitors
LO3
Sales vs. Market
Orientations
Organization’s
Focus
Firm’s
Business
that is
delivered
For
Whom?
Sales
Orientation
InwardCompany
Selling
goods and
services
Market
Orientation
Outwardcustomer
Customer Specific
Satisfaction groups of
people
Everybody
Primary
Profit
Goal?
Maximum
sales
volume
Tools to
Achieve
Primarily
promotion
Customer
Coordinated
satisfaction use of all
marketing
activities
Value-Driven Marketing
• Value? Formula
– a customer’s subjective (influenced by personal
feelings, tastes, or opinions) assessment of the
product benefits relative to costs in
determining the worth of a product.
Value
=
Customer
Benefits
–
Customer
Costs
Value
BENEFITS RECEIVED
VALUE 
COST
• Benefits—examples
– Convenience
• In delivery
• In usage
–
–
–
–
–
–
Reliability
Durability
Performance
Style/aesthetics
Prestige
Service component
• Costs—examples
– Money
– Time
– Risk
Customer Value
• Value is the ratio of the
benefits received (usually
goods or services) to what is
given up (usually money)
• For a transaction to take
place, the benefits received
must usually be greater than
the sacrifice
• Note that a high price product
may be a good value to the
customer even if a high price
is paid if the perceived
benefits received are higher
Value: Implications
• A low quality, low price
product represents poor
value for many customers
• A very high benefit
product at a high price
can represent value for
some segments
• Customer segments differ
in what they find valuable
Steps Toward Value
Orientation
• Information sharing within the firm
• Balance of cost and benefits (for the target
segment—different balances for different
types of customers)
• Relationships with customers (as opposed
to “one shot” transactions) which
marketing management philosophy is one
shot