ROM - The changing approach to marketing Flashcards
the changing approaches to marketing
marketing hasn’t always been conceptualised in this way. It has continued to evolve over time
Historically, marketing has moved through three distinct periods.
the three orientations
When looking at these approaches/orientations we want to focus on two things
- Describe the features and characteristics of the orientation (what is it)
- Explain how it was a product of its time period and unique historical circumstances (why is it)
what is the production orientation?
Production-orientated businesses focus on their own internal efficiency and the quality of their products. These companies look internally to decide how to conduct businesses
They do not take into consideration how their products suit customer need because it is built on the belief that a good product will sell itself.
where did product orientation come from?
Emerged from the industrial revolution where mass production was restricted to a few large businesses
As such it suited businesses when demand was greater than supply and competition was not high
Accordingly these businesses saw no significant role for what we would call ‘marketing’ other than taking orders or shipping goods
businesses that exemplify production orientation
1909, the funder of ford motor company, hennery ford declared that they would make one mode ( the Model T) and in one colour (black)
Many of his sales people disagreed with him but rather than appealing to the whim of 5 per cent of customers, ford believed that if he made a well-built and affortable car the customers would come
what is selling orientation?
refers to the use of sales representatives to highlight the positive attributes ad qualities of a product in order to convince the potential customer to buy
Increased importance is placed on advertising and persuading customers that they want/need to buy the businesses products. The businesses now needed to train sales staff and advertise
where did selling orientation come from?
Success of businesses led to others producing similar goods by the beginning of the 20th century. As a result, an exclusive focus on production was no longer a guarantee of success
With more competition, consumers were offered choice and so businesses needed to persuade them their products was better than others
They turned to the growing science of phycology for assistance
Power of persuasion
which businesses exemplify selling orientation
Following the great depression, the growing wave of consumerism in the US was led by home appliances businesses such as Westinghouse electric
Prominence of the salesmen include power of advertising (pamphlets, displays), promotions of free movie tickets
But it is not a relic of the post-WWII period
what is marketing orientation
A market(ing) approach focuses on understanding the needs of the consumers first and then developing and marketing products and services to meet these needs
It targets small segments of the total market and provides a specialised product to satisfy their particular needs
AND/OR
Develops a strong positive relationship with customers to encourage repeat sales and positive brand perceptions
where did marketing orientation come from?
Since the times of the production and selling approaches, even more choice has been created for consumers
As a result, businesses have further altered their approach and have been aided by the ability to collect data and market insights
The same product or service to can be presented to various small segments in different ways based on this data
coca-cola and marketing orientation
Coca-Cola uses TWO features of the marketing orientation.
a) It targets small segments of the market by providing specialised products. This is part of being customer oriented.
b) It develops a strong, positive relationship with its consumers to encourage repeat sales. This is called relationship marketing.
Coca-Cola has done this through their ‘Share a Coke with…’ campaign Offering personalised Labels on bottles.
