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.
Product Main features
Product features
Product quality
Product processes
Profit
Selling Focus
Needs
& BENEFITS
Selling Aims/ Objectives
To aggressively promote
To aggressively sell
To profit via quick turnover &a high volume
Selling Introduction
USA - 1950’s
West Europe - 1960’s
East Europe - 1990’s
Selling Philosophy
The idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotions effort.
- Kotler, Armstrong, Harris, Piercy
Selling Disadvantages
Carries high risks
Instead of focusing on building long term customer relationships, focusing of SALES TRANSACTIONS
Sell what the companies makes rather than what the MARKET NEEDS/ WANTS.
Selling Main Features
Product
Target market
Processes
Profit
Marketing Focus
Buyer needs
“The customer is king”
Marketing Aims/ Objectives
To integrate marketing to identify needs before products
To profit via customer satisfaction & loyalty
