Company orientations towards the marketplace

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

2. Presentation Outline • Production concept • Product concept • Selling concept • Marketing concept • Holistic marketing concept • Relationship marketing • Integrated marketing • Internal marketing • Socially responsible marketing

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

4. 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”

5. 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.”

6. 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

7. Selling versus Marketing Selling Starting point Focus Means Ends Factory Product Selling & Profits through promoting sales volume Marketing Target Customer Integrated Profits through market needs marketing customer satisfaction Marketing is not synonymous with “sales” or “advertising”.

8. 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

9. 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

10. Holistic Marketing Concept 3 • Internal Marketing • External Customers • Internal Customers

11. 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)

12. QUESTIONS ??????