Main business orientations
We discuss below the more precise definitions of the alternative approaches to doing business.
The below table simply describes the characteristic management thinking behind them.
Reference book: Essential of Marketing 3ed Edition, for Frances Brassington,Stephen Pettitt.
|
Orientation Name: |
Focus on: |
Characteristics and aims |
Problems |
|
|
Production (Market is driven by price) |
heavily on manufacturing by making products that are affordable and available
|
1. Increase production 2. Cost reduction and Control 3. customers are only interested in price as the differentiating factor between competing products and will buy the cheapest 4. Demand outstrips supply 5. Make profit through volume |
- Market is completely price sensitive - companies can put all their effort into improving production and increasing supply and worry about the niceties of marketing later. |
|
|
Product |
Goods Quality Organisation must work to increase and improve its quality levels |
1. Quality is all that matters 2. Consumers are primarily interested in the product itself,and buy on the basis of quality 3. Improve quality levels 4. Make profit through volume |
It assumes that consumers want this product. Consumers do not want products, they want solutions to problems, and if the organisation’s product does not solve a problem, they will not buy it, however high the quality |
|
|
Selling (organisation puts its effort into building strong sales departments) |
Selling what’s produced – seller’s needs |
1. Aggressive sales and promotion 2. Consumers are inherently reluctant to purchase, and need every encouragement to purchase sufficient quantities to satisfy the organisation’s needs. 3. Profit through quick turnover of high volume
|
- focus very much on the needs of the seller, rather than on those of the buyer. - sales person may focus on the one-off sale rather than the long-term relationship to achive thr target sale |
|
|
Marketing (The motivation is to ‘find wants and fill them’ rather than ‘create products and sell them’.) |
Organisations develop and perform its production and marketing activities with the needs of the buyer driving it all, and with the satisfaction of that buyer as the main aim)
Defining what customers want – buyer’s needs |
1. Integrated marketing 2. This focus not just about the core product itself, but also about pricing, access to information, availability and peripheral benefits and services that add value to the product 3. Organisation can produce a specifically targeted marketing package that best suits the needs of one group 4. Defining needs in advance of production 5. Profit through customer satisfaction and loyalty |
|
|
|
Ethical and sustainable marketing |
Serving the needs of the buyer with due respect for the welfare of society and the environment |
1. Integrated ethical marketing 2. Defining needs and designing and producing products to minimize harm/damage 3. Profit through customer satisfaction and loyalty, and through societal acceptance |
Let’s find out if they want it in black, and then produce it as “greenly” as possible and think about what to do when its useful life ends’ |
|
Comments
Post a Comment