Company orientations towards the marketplace By Jyoti Sikka, S.S.C.B.S.

Presentation Outline Production concept Product concept Selling concept Marketing concept Holistic marketing concept  Relationship marketing  Integrated marketing  Internal marketing  Socially responsible marketing

Production Concept Consumers favor products that are available and highly affordable Improve production and distribution Focus On Manufacturing (D>S) Goal: Produce All That Is Possible

Product Concept Assumption: Consumers favor products that offer the most quality, performance, and innovative features Focus on Manufacturing (D>S) Means: Make quality products “You can have any color you want as long as it’s black.” “Make the best product you can and people will buy it.” “Build a better mousetrap”

Selling Concept Mid-1920s–early 1950s: weakened demand required that products would have to be “sold.” (personal selling, advertising, and distribution was the focus) Focus on selling existing products (D=S) Means: Aggressive Sales & promotion Goal: Maximize Sales “Sell this inventory no matter what it takes.” “You don’t like black? I’ll throw a set of glassware.”

Marketing Concept Early 1950s–2000s: adopting a customer focus means a commitment to researching and responding to customer needs. Long-Run View Consumer want focus Integrated planning and feedback Adapt to the environment

Selling versus Marketing Selling FactoryProductSelling &Profits through promotingsales volume FactoryProductSelling &Profits through promotingsales volume Startingpoint FocusMeansEnds Marketing TargetCustomerIntegratedProfits through marketneedsmarketingcustomer satisfaction TargetCustomerIntegratedProfits through marketneedsmarketingcustomer satisfaction Marketing is not synonymous with “sales” or “advertising”.

Holistic Marketing Concept 1 Relationship Marketing  Developing Marketing Networks  Using CRM is “the overall process of building & maintaining profitable customer relationships by delivering superior customer value and satisfaction.” (Kotler, 13ed 2006) Using information to create marketing strategies that develop and sustain desirable customer relationships Establishing long-term, mutually satisfying buyer-seller relationships allowing for mutual dependency

Holistic Marketing Concept 2 Integrated Marketing  is a comprehensive plan that communicates and delivers the intended value to chosen customers  a set of coordinated cross functional activities (a unity of purpose) traditional approach- McCarthy 4P’s Robert Lauterborn- 4C’s

Holistic Marketing Concept 3 Internal Marketing  External Customers  Internal Customers

Holistic Marketing Concept 4 Social responsibility Marketing  Act socially responsibly; consider  the ethical consequences of one’s actions;  Focus on satisfying customer needs and wants while enhancing individual and societal well-being  Consider the collective needs of society as well as customer desires and the organization’s profits. (Bell& Emory,1971 JM) Society..…… #1 (Human welfare) Consumers..#2 (Want satisfaction) Company ….#3 (Profits)

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