Download New Marketing Orientations – Prof B .N. F.

Company orientations toward
market Places
Dr. B.N.F. Warnakulasooriya
M.Sc. in Management Programme
University of Sri Jayewardenepura
Dr.B.N.F. Warnakulasooriya
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Company orientations toward market
Places
Strategic orientation guides an organization’s
alignment with its environment by shaping its
strategic attributes and competencies.
An orgn can integrate or align itself to its
environment in a variety of ways
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• What orientation should guide the marketing
effort? What weight should be given to the
organization ,customer and society
Common alternative strategic marketing
orientations are
 The Production concept
.
 The product concept
 The selling concept
 The marketing concept
 Societal marketing Concept
Dr.B.N.F. Warnakulasooriya
 The Holistic Marketing
concept
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The Production Concept
Consumers will favour products that are widely available and
highly affordable. Concentrate on improving production and
distribution efficiency
• When Demand exceeds the supply
• Product’s cost is too high and improved productivity is
needed to bring it down
The Product Concept
Consumers favour products that offer the most quality,
performance and features. Organizations should concentrate on
making superior products and improving them over time. This
concept leads to “marketing
myopia”
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The selling concept.
Customer will not buy enough of the organization product
unless it undertakes a large selling and promotion effort. The
selling concept tries to sell what it makes rather than make
what the market wants
The selling concept is practiced with :
Unsought goods
Non profit area
Over capacity
The marketing concept
Determine the needs and wants of the target market and
deliver the the desired satisfaction more effectively and
efficiently than competitors.
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The Marketing Concept rest on four main pillars:
 Market focus ( target market)
 Customer needs
 Coordinated marketing

Profitability
Selling vs marketing concept
Starting
point
SC
factory
Focus
product
means
Selling and
promoting
ends
Profit through
sales volume
Inside out perspective
MC
Target
market
Customer needs
Coordinated
marketing
Outside
in perspective
Dr.B.N.F. Warnakulasooriya
Profit through
customer
satisfaction
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• Marketing Concept
 Criticized due to the limitation of its
practical value and difficulty of operational
definition
 It was unclear to the practitioners seeking
to implement the marketing concept as to
what precisely the marketing concept is,
what specific activities that translate the
philosophy into practice and what actual
effect the concept has on business
performance
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• Market Orientation
“The organization-wide generation of market
intelligence pertaining to current and future
customer needs, dissemination of the
intelligence across departments, and
organization-wide responsiveness to it”
Market orientation consists of three behavioral
components
• Customer orientation
• Competitor orientation
• Inter-functional coordination
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• Reactive Market orientationUnderstanding and meeting customers’
expressed needs.
• Proactive Market orientationUnderstanding and meeting customers’
latent needs
• Total Market orientation - Reactive
Market orientation + Proactive Market
orientation
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Competitor Emphasis
Minor
Minor
Self Centered
Major
Customer
Oriented
Major
Competitor
Centered
Market
Driven
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Holistic Marketing
• Holistic Marketing is an approach to marketing
that attempts to recognize and reconcile the scope
and complexities of marketing activities.
• It is based on the development, design, and
implementation of marketing programmes,
processes, and activities that recognizes their
breadth and interdependencies.
• Holistic marketing recognizes that “Everything
matters” with marketing- and that a broad,
integrated perspective is often necessary.
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Products and Services
Channel
Communications
Integrated
Marketing
Ethics
Customers
Community
Environment
Socially
Responsible
Marketing
Holistic
Marketing
Relationship
Marketing
Channel
Partners
Legal
Internal
Marketing
Other
Marketing
Department
Department
Senior
Dr.B.N.F. Warnakulasooriya
Management
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• Integrated Marketing – devise marketing activities
and assemble fully integrated marketing programme
to create, communicate and deliver value for
consumers (fig).
• Must integrate orgn’s systems for demand
management, resource management and network
management.
p
p
p
p
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Internal Marketing
• Ensure that everyone in the orgn embraces market
Orientation.
• Hire, train and motivate able employees who
shares service ethic attitudes (WEA- holds
that work is a satisfying end itself. By
performing work they can find satisfying,
even pleasurable ,results and self fulfillments,
they want to serve the customer well)
• Marketing activities within the orgn are as
important as, or even more than, external
marketing.
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• Social Responsibility Marketing - extension
of the cause and effect of marketing beyond
the company and the consumer to society as
a whole. SR requires that marketers
carefully considers the role that they are
playing and could play in terms of social
welfare. This enlarges the marketing
concept to Societal Marketing Concept.
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Societal Marketing concept
SMC calls upon marketers to build social and
ethical considerations into their marketing practices.
Society (Human welfare)
Consumers
(needs and
wants
satisfaction)
Societal
Marketing
concept
Company
(profit)
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Relationship Marketing
• Develop deep, enduring and mutually satisfying long
term relationships with all people or organizations
that could directly or indirectly affect the success of
the firm’s marketing activities.
• The ultimate outcome of relationship marketing is
the building of a unique company asset “Marketing
Network” – company and its supporting
stakeholders with whom it has built mutually
profitable business relationship.
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