Production, selling, and market approaches

Question 1

Production approach

Answer 1

Industrial revolution (1820s-1920s)

• Take orders
• Deliver goods/perform services
• focused businesses on the production of goods and services 

  -The Industrial Revolution created a tremendous burst of industrial output, which saw demand for goods exceed the 
production capabilities of many businesses. 

  -Therefore, marketing was ‘if we make it, they will buy it’

Question 2

Sales approach

Answer 2

1920s-1960s

• Advertise
• Train sales force
• take orders
• deliver goods/perform services
• increases in efficiency and productivity led to high quality, mass produce products. 

• competition between businesses increased marketing approach focused
  on sales- oriented. Sales representatives were at the core of this approach 

• businesses began to increase their spending on advertising- radio, film
  etc. 

• However, marketing still played a secondary role to other KBF. Instead of researching what customers wanted, businesses were still producing what the business could make and having reps create the demand.

Question 3

Marketing approach stage one

Answer 3

1960s-1980s

• Research customer needs and wants
• adopt the marketing concept
• advertise
• train sales force
• take orders
• deliver goods/perform services

Began with the economic boom after World War II when Australians had discretionary income for the first time. 


Business success changed from focusing on pushing goods and services on customers, to placing the customer at the centre of all marketing activities. 


The marketing approach focuses on finding out what customers want — through market research — and then satisfying that need. 


Developing a marketing concept (1. customer-oriented 2. supported by integrated marketing strategies 3. aimed at satisfying customers 4. integrated into the strategic business plan.

Question 4

Marketing approach stage two

Answer 4

1980s - present

• Corporate social responsibility
• relationship marketing
• customer orientation
• research customer needs and wants
• adopt the marketing concept
• advertise
• train sales force
• take orders
• deliver goods/ perform services
• CSR - external pressure from customers and political forces that change procedures to be conservative particularly environmentally sustainable


-Customer orientation - collecting information from customers and basing marketing decisions and practices on customer wants and interests. Customer relationship goes beyond the sale. -Relationship marketing - places high priority on customer retention and continual satisfaction. Loyalty is received through reward programs, pre-sale and after-sale excellance, may even recommend the service to a friend.

Question 5

Case study

Answer 5

Sales
In the introductory stages of the product life cycle for earlier Apple iPhone products, marketing strategies were focussed on educating customers on the features of the phone and were more informative than persuasive. The innovative nature of the smartphone design meant that the products had capacities that exceeded consumer expectations.

Marketing
As the market for smartphones became more established, the focus of marketing iPhones has become more persuasive than informative. Customers have more developed expectations of current and future designs. There is now more focus on market research to determine the wants and needs of existing customers e.g., surveys on various Apps and design features have led to changes in design such as larger screen size, a lighter and thinner phone, longer battery life and improved camera capabilities.