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Business Orientations
Unit 1: Marketing Business Orientations 14/02/2020
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Recap – Week 1 Cola wars case study Orientation research
Free-writing exercise 14/02/2020 HNC/HND Business
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Marketing Orientation
“market led company should aspire to the model where marketing dominates/integrates but the customer controls, where the customer/organisation jointly form product/service specifications through constant dialogue with the organisation via the marketing department and its research thrust” (Kotler) 14/02/2020
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Main Elements Customer orientation
Co-ordination of market-led functional activities Profit orientation 14/02/2020
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Advantages/Disadvantages
Keep ahead of competition Meet customer needs Cost-effective communication and relationship building Produce what you sell, not sell what you produce Market research extensive and costly Average customer can be ‘fickle’ Market place can be dynamic and fast-moving Too narrow a focus 14/02/2020
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Production Orientation
Oldest concept – favoured until end of 18th century Make what you think the customer will buy if price is right! Mass goods produced for low costs can be beneficial, or can be a costly mistake! 14/02/2020
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Selling orientation Lies between market and production orientations
Produces goods which are then promoted through aggressive selling techniques and methods Door-to-door sales people for example 14/02/2020
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Advantages/Disadvantages
Minimum time and cost between production and market Quick to respond Minimises cash flow and suits smaller businesses No product innovation Can be expensive and time-consuming to promote Short–term profit gain only Limited customer loyalty 14/02/2020
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Exercise 1 In pairs, think of real examples (either from the Coca Cola Wars research and/or general knowledge) of organisations which you feel meet the different business orientations Try and find at least one example for each of the 3 orientations and be prepared to say why 14/02/2020
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Exercise 2 – further reading/research
To complete the work so far, you now need to research further on the following topics, using BPP textbook pgs 5-38 and/or other recommended textbooks/internet The three business orientations and the evolution of the marketing concept/orientation Societal and marketing issues and philosophies The development of the marketing function 14/02/2020
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