Strategic Planning: Gaining a competitive edge

Marketing Marketing has two facets – A philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction – An organization function and a set of processes used to implement this philosophy

Marketing Philosophies Each group needs to be the expert for a philosophy You are going to read a specific section pertaining to a Marketing Orientation – Define it – 2 Advantages of it – 2 Disadvantages of it – Example of company that uses this approach

Marketing Management Philosophies Four Company Philosophies strongly influence an organizations marketing process 1.Production 2.Sales 3.Market 4.Societal Marketing

Marketing Management Philosophies Production Orientation – A philosophy that focuses on internal capabilities of the firm rather than on the desires and needs of the marketplace Field of Dreams Approach “If we build it; they will come” – Management asses its resources and asks What can we do best? What can our engineers design? What is easy to produce given our equipment? What services are most convenient for the firm to offer? – Sometimes fails because it does not consider whether the goods or services produced effectively meet the wants and needs of its customers

Marketing Management Philosophies Sales Orientation – Based on the ideas that people will buy more goods and services if aggressive sales techniques are used & that high sales result in high profits. – Marketing means selling things & collecting money – There is often a lack of understanding of customer wants & needs

Marketing Management Philosophies Market Orientation – Designed around the marketing concept Strive to meet customers wants and needs while meeting company objectives – What the company produces is not as important as what the customer assumes they are buying (value) – Focus on customer while maintaining a competitive advantage – Integrate all the organizations activities so that wants & needs are met – Achieve long-term goals for the organization by satisfying customer wants & needs responsibly

Marketing Management Philosophies Societal Marketing Orientation – An organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals & society's long term best interest. – Societal Companies Emphasize a green environment Create environmentally friendly products More durable products

Difference Between Sales & Market Orientations What is the organizations' focus? What business are you in? To whom is the product directed? What is your primary goal? How do you seek to achieve your goal? Sales Orientation Inwards, on organizations needs Selling goods & services EverybodyProfit through maximization Primarily through intensive promotion Market Orientation Outward, on the wants & preferences of customers Satisfying customer wants and needs and delivering superior value Specific groups of people Profit through customer satisfaction Through coordinated marketing and interfunctional activities

Quiz : Complete the chart based on the philosophy that best fits