Marketing Orientation You don’t like the style? Buy it & I will give you free service for a year. Product Concept Selling Concept Marketing Concept Production Concept Consumer prefer products that are widely available and expensive. Consumers favor products that offer the most quality, performance, or innovative features. Consumer will buy products only if the company aggressively promotes / sells these products. Focuses on needs / wants of target markets & delivering value better than competitors.

Marketing Vs. Selling Concept

Marketing Concept Marketing Concept Market Customer Needs Integrated Marketing Profitability

Customer Needs Secret Needs Delight Needs Unstated Needs Real Need Status Symbol Delight Needs Gift from Dealer Unstated Needs Good Service from Dealer Real Need Operating Cost low, Not Initial Price Stated Needs Want Inexpensive Car

Customer Needs & Marketing Responsive Marketing Anticipative Marketing Creative Marketing Creative Marketer discover and produces solutions customers did not ask for but to which they enthusiastically respond. Responsive Marketer finds a stated need and fills it. Anticipative marketer looks ahead into what needs customer may have in near future.

Integrated Marketing Internal External Marketing Marketing 1st Level Integration: All marketing functions must work together (sales force, advertising, customer service, product management, marketing research) Internal Marketing External Marketing 2nd Level Integration: Marketing must be embraced by the other departments, they must also “think customer”. Marketing directed at people outside the company Task of hiring, training & motivating able Employees who want to serve customers well

Profitability Factors Affecting Profitability Sales Decline Slow Growth Factors Affecting Profitability Changing buying pattern Increasing Marketing Expenditures Increasing Competition

Evolving Views of Marketing’s Role in the Company Production Finance Marketing Human Resource Customer Human Resource Contd….

Customer as the controlling function and Marketing as the Integrative Function

Traditional Organization Chart Customers Front Line People Middle Management Top Management

Modern Customer Oriented Organization Chart Customers Front Line People Middle Management Top Management

Societal Marketing

Example of Societal Marketing by United Colors of Benetton

Summary Marketing orientation has moved from mass production to customization (differentiation according to the individual customer). Marketing concept is focused on customer needs whereas Selling Concept is focused on Profit only. In today’s scenario organizations are focusing on profit maximization through customer satisfaction. Not only the marketing department but the Whole Organization now focus on ‘Customer’. This is Integrated Marketing. Some organizations have started thinking about social welfare along with their profit motive and customer satisfaction.

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