Transcript The advantages of the marketing orientation

Marketing Orientation
• Orientation - the general direction of the
company
• Marketing Orientation = putting the
customer at the centre of the way the
business is run
Selling focuses on the needs of the seller, Marketing on the needs of the
buyer Levitt (1960) Marketing Myopia
• The rise of marketing
• Other orientations and their dangers
The rise of marketing
The key to success
• Craftsmanship, Product quality (> 1800)
• Production processes (1800-1920)
• Selling techniques (1920s-1950s)
• Consumer focus (1950 s >)
Post-modern marketing? (2000 >)
Product Orientation
Believes that
• what sells is the quality of the product
Concentrates on
• product design and technical improvements
Dangers
• falling in love with the product
• ignoring changing customer needs (myopia)
The product orientated approach
Ideas
R&D
Design
& planning
Production
or operations
‘Sales
and marketing’
Customer
The customer orientated approach
Customer
Market
research
Product
development
Production
or operations
Marketing
Communication
The whole business seen from the end-user customer’s viewpoint
Production or operations
orientation
Believes that
• there is a high level of demand
Concentrates on
• efficiency and cost effectiveness
Dangers
• neglects the quality of customer service
• inward-looking procedures
Sales orientation
Believes that
• customers need to be persuaded to buy
Concentrates on
• sales techniques and sales promotions
Dangers
• selling what we make, not making what will sell
• price wars, high pressure selling ->‘cheap and
nasty’ image
Non-commercial orientation
Believes in
• public service, political or artistic objectives
that are more important than pure profit
Dangers
• over-dependence on subsidies
• remoteness from public, elitist approach
• complacency and inefficiency
The traditional approach to public sector leisure
Social
& political
objectives
?
Customer
Needs
Provision of
leisure
facilities
Management
& operations
Sales and
Marketing
The post Thatcher approach to public sector leisure
Social
& political
objectives
Provision of
leisure
facilities
Specified
and put out
to tender
Management
& operations
?
Customer
Needs
‘Compulsory Competitive Tendering’
‘Best Value’
Sales and
Marketing
Advantages of marketing
orientation
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•
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Outward looking
Responsive to changes in the market
Creates loyal customers through good service
Adds value rather than cutting profit margins
Reduces costs through targeting
improves the image of the brand
How can you spot a
marketing orientated business?
• Customer orientation
• Competitor Awareness
• Interfuctional Coordination
Narver and Slater (1990)
Criticism of the marketing orientation 1
"We don't ask consumers what they want.
They don't know.
Instead we apply our brain power to what
they need,
and will want, and make sure we're there,
ready."
Akio Morita
Sony Corporation
Criticism of marketing 2
• Satisfying customers profitably is not the
company’s only responsibility:
– staff and suppliers
– society
– the environment
‘Corporate Social Responsibility’
– future generations
‘sustainability’