What is Marketing & Orientations Flashcards
What is marketing? - CIM
Marketing is the management process responsible for indentifying, anticipating and satisfying the consumer requirements profitably.
Four Orientations
Production
Product
Selling
Marketing
Marketing Myopia
Suggests that businesses will perform better in the end if they concern rate on meeting customers needs rather than selling.
- Levitt
Economies of Scale
The cost advantage that a business can exploit by expanding their scale of production. The effect is to reduce the average cost per unit.
Production orientation
Manufacturing
Production aims/ objectives
To increase production
To control and reduce costs
To profit via sales volume
Production Introduction
USA - 1940’s
West Europe - 1950’s
East Europe - 1980’s
Production Philosophy
Consumers will favour products that are AVAILABLE and HIGHLY AFFORDABLE. Management should focus IMPROVING PRODUCTION and DISTRIBUTION EFFICIENCY.
- Kotler, Armstrong, Harris, Piercy
Production Disadvantages
Loose sight on production focus by concentrating on own operations.
Marketing Myopia
Production Main Concepts
Product
Economies of Scale
Processes
Profit
Product focus
Goods
Product Aims/ Objectives
Increased profitability comes through quality improvements.
Bettering performance and innovative features.
Product Introduction
USA - 1950’s
West Europe - 1970’s
East Europe - 2000’s
Product Philosophy
Consumer will favour products that offer the MOST QUALITY, PERFORMANCE, FEATURES - organisations should devote their energy to making continuous product improvements.
- Kotler, Armstrong, Harris, Piercy
Product Disadvantages
“Build a better mousetrap, and the world will beat a path to your door” - Emerson.
May not be the case, consumers are looking for a better solution to the trap, like chemical sprays.
Manufacturers designs, packages and prices it attractively, places it in a convenient distribution channel, bring attention to the buyers & convincing them it is a better product.
