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    The Marketing Management Philosophies

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    Henry Villamiel
    The document discusses five marketing management philosophies: 1. The production concept focuses on efficient production and distribution to make products widely available at affordable prices. 2. The product concept believes good products will sell themselves if quality, performance and features are high. 3. The sales orientation promotes selling overcapacity goods. 4. The market orientation makes products based on customer needs and wants identified through market research. 5. Relationship marketing seeks to create long-term relationships with customers and stakeholders through mutual benefits.

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    The Marketing Management Philosophies

    Uploaded by

    Henry Villamiel
    517 views21 pages
    The document discusses five marketing management philosophies: 1. The production concept focuses on efficient production and distribution to make products widely available at affordable prices. 2. The product concept believes good products will sell themselves if quality, performance and features are high. 3. The sales orientation promotes selling overcapacity goods. 4. The market orientation makes products based on customer needs and wants identified through market research. 5. Relationship marketing seeks to create long-term relationships with customers and stakeholders through mutual benefits.

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    The Marketing Management Philosophies(2)

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    The document discusses five marketing management philosophies: 1. The production concept focuses on efficient production and distribution to make products widely available at affordable prices. 2. The product concept believes good products will sell themselves if quality, performance and features are high. 3. The sales orientation promotes selling overcapacity goods. 4. The market orientation makes products based on customer needs and wants identified through market research. 5. Relationship marketing seeks to create long-term relationships with customers and stakeholders through mutual benefits.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    517 views21 pages

    The Marketing Management Philosophies

    Uploaded by

    Henry Villamiel
    The document discusses five marketing management philosophies: 1. The production concept focuses on efficient production and distribution to make products widely available at affordable prices. 2. The product concept believes good products will sell themselves if quality, performance and features are high. 3. The sales orientation promotes selling overcapacity goods. 4. The market orientation makes products based on customer needs and wants identified through market research. 5. Relationship marketing seeks to create long-term relationships with customers and stakeholders through mutual benefits.

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    Download as PPT, PDF, TXT or read online from Scribd
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    of 21

    The Marketing Management Philosophies

    BA 5 Principles of Marketing Prof. Gwenetha Y. Pusta,PhD

    Marketing Management
    We describe marketing management as carrying out tasks to achieve desired exchanges with target markets. What philosophies should guide these marketing efforts? Five alternative concepts under which organizations conduct their marketing activities.

    The Production Concept

    One of the oldest philosophies that guide sellers. Firms choose to pursue a business philosophy that focuses on making products that are widely available, affordable and require little selling effort. Based on the belief that products that are widely available and affordable will sell. Therefore management should focus on improving production and distribution efficiently.

    Marketing as a Business Philosophy


    Inner Directed Outer Directed

    Product

    Sales

    Market

    Relationship Marketing Orientation

    Orientation

    Orientation

    Orientation

    The Production Concept


    Useful in two types of situations: Occurs when the demand for a product exceeds the supply. The second occurs when the product cost is too high and improved productivity is needed to bring it down.

    If We Build It, They will Come

    A secondary belief of the product orientation is that good products will sell themselves known as the product concept. Also known as the better mouse trap fallacy and based on the idea that customers will always prefer and therefore purchase the best products in the market. Customers look to purchase value the best product for the best price that best suits their needs and wants.

    The Product Concept


    The idea that consumers will favor products that offer the most quality performance, and features and that the organization should therefore devote its energy to making continuous product improvements. Can lead to marketing myopia

    Sales Orientation: Selling What We Make


    Promotes the business philosophy of selling what we make Most firms practice the selling concept when they have overcapacity. Their aim is to sell what they make rather than make what the market wants.

    The Market Orientation: Make What We We Can Sell

    In contrast to product and sales orientations, market-oriented firms gather, share, and use information about the market (customer, competitor, market trends) to make decisions before engaging in the sales process.

    Market Oriented Firms


    Actively seek out customers needs and wants and then develops and provides products that satisfy previously identified or anticipated shortages and desires. Can be described as those businesses that practice the three pillars of the marketing concept.

    The Three Pillars of the Marketing Concept

    Long-term Success

    Coordinated Marketing

    Customer Focus

    Customer Focus

    Pertains to obtaining information about the customer needs and wants and then providing products that fulfill these shortages and desires. Needs are unsatisfactory conditions that prompt a customer to take action to make the condition better. Needs are basic and reflect shortages of necessities. Wants are desires to obtain more satisfaction than is absolutely necessary to improve the unsatisfactory condition.

    Coordinated Marketing Effort


    It represents the business mindset that adopting and implementing a market orientation should not be the sole responsibility of the marketing department. Is a group effort with a variety of departments involved

    Long-Term Success
    Business achieve long-term success by conducting customer-oriented business practices. Tends to focus on building and maintaining customer relationships that lasts a lifetime.

    The Relationship Marketing Concept

    Seeks to create and sustain mutually satisfying long-term relationship with customers and key players. Referred to as the 350 degree view of serving customers. Considers the impact of operations and focuses increasingly on sustaining long-term relationship with customers.

    Three Considerations

    Marketing Network

    Relationship Marketing Concept

    CRM

    Company

    A Marketing Network

    Includes the company and its stakeholders, who form mutually profitable business relationships. Ex: HP network includes Intel, Nokia; Celestica and Agilent. Marketing networks create environments that facilitate technological and marketing synergies among companies and institutions.

    Customer Relationship Management

    CRM is the process of identifying, attracting, differentiating and retaining customers. Deals with business to business marketing, services marketing, personal selling and sales management. The goal is to provide coordination among customer functions by integrating people, process and technology to maximize relationships with customers.

    Summary
    Learning objective of understanding concepts and fundamental differences of business philosophies or orientations. Product oriented firms are manufacturing oriented, focusing largely on product itself. Disadvantage: unsold inventories

    Summary
    Consequently, the business is faced with becoming sales oriented and communicating to the market why its product would be of interest to consumers. In contrast market oriented firms gather, share and use information about the market to make a decision.

    Summary

    Hence, marketing as a business philosophy is best described by those businesses that practice the three pillars customer focus, coordinated marketing and long-term success. Finally relationship marketing seeks to create and sustain mutually satisfying long-term relationships with customers and key players.

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