Dr.B.N.F. Warnakulasooriya1 Company orientations toward market Places Dr. B.N.F. Warnakulasooriya M.Sc. in Management Programme University of Sri Jayewardenepura

Dr.B.N.F. Warnakulasooriya2 Company orientations toward market Places Strategic orientation guides an organization’s alignment with its environment by shaping its strategic attributes and competencies. An orgn can integrate or align itself to its environment in a variety of ways

Dr.B.N.F. Warnakulasooriya3 What orientation should guide the marketing effort? What weight should be given to the organization,customer and society Common alternative strategic marketing orientations are  The Production concept  The product concept  The selling concept  The marketing concept  Societal marketing Concept  The Holistic Marketing concept.

Dr.B.N.F. Warnakulasooriya4 The Production Concept Consumers will favour products that are widely available and highly affordable. Concentrate on improving production and distribution efficiency When Demand exceeds the supply Product’s cost is too high and improved productivity is needed to bring it down The Product Concept Consumers favour products that offer the most quality, performance and features. Organizations should concentrate on making superior products and improving them over time. This concept leads to “marketing myopia”

Dr.B.N.F. Warnakulasooriya5 The selling concept. Customer will not buy enough of the organization product unless it undertakes a large selling and promotion effort. The selling concept tries to sell what it makes rather than make what the market wants The selling concept is practiced with : Unsought goods Non profit area Over capacity The marketing concept Determine the needs and wants of the target market and deliver the the desired satisfaction more effectively and efficiently than competitors.

Dr.B.N.F. Warnakulasooriya6 The Marketing Concept rest on four main pillars:  Market focus ( target market)  Customer needs  Coordinated marketing  Profitability Selling vs marketing concept Starting point factory Target market Focus product Customer needs means Selling and promoting Coordinated marketing ends Profit through sales volume Profit through customer satisfaction Inside out perspective Outside in perspective SC MC

Dr.B.N.F. Warnakulasooriya7 Marketing Concept  Criticized due to the limitation of its practical value and difficulty of operational definition  It was unclear to the practitioners seeking to implement the marketing concept as to what precisely the marketing concept is, what specific activities that translate the philosophy into practice and what actual effect the concept has on business performance

Dr.B.N.F. Warnakulasooriya8 Market Orientation “The organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it” Market orientation consists of three behavioral components Customer orientation Competitor orientation Inter-functional coordination

Dr.B.N.F. Warnakulasooriya9 Reactive Market orientation- Understanding and meeting customers’ expressed needs. Proactive Market orientation- Understanding and meeting customers’ latent needs Total Market orientation - Reactive Market orientation + Proactive Market orientation

Dr.B.N.F. Warnakulasooriya10 Competitor Emphasis Customer Emphasis Minor Major MinorMajor Self - Centered Competitor Centered Customer Oriented Market Driven

Dr.B.N.F. Warnakulasooriya11 Holistic Marketing Holistic Marketing is an approach to marketing that attempts to recognize and reconcile the scope and complexities of marketing activities. It is based on the development, design, and implementation of marketing programmes, processes, and activities that recognizes their breadth and interdependencies. Holistic marketing recognizes that “Everything matters” with marketing- and that a broad, integrated perspective is often necessary.

Dr.B.N.F. Warnakulasooriya12 Ethics Environment Legal Community Channel Communications Products and Services Customers Channel Partners Other Department Senior Management Marketing Department

Dr.B.N.F. Warnakulasooriya13 Integrated Marketing – devise marketing activities and assemble fully integrated marketing programme to create, communicate and deliver value for consumers (fig). Must integrate orgn’s systems for demand management, resource management and network management. p p p p

Dr.B.N.F. Warnakulasooriya14 Internal Marketing Ensure that everyone in the orgn embraces market Orientation. Hire, train and motivate able employees who shares service ethic attitudes (WEA- holds that work is a satisfying end itself. By performing work they can find satisfying, even pleasurable,results and self fulfillments, they want to serve the customer well) Marketing activities within the orgn are as important as, or even more than, external marketing.

Dr.B.N.F. Warnakulasooriya15 Social Responsibility Marketing - extension of the cause and effect of marketing beyond the company and the consumer to society as a whole. SR requires that marketers carefully considers the role that they are playing and could play in terms of social welfare. This enlarges the marketing concept to Societal Marketing Concept.ocietal Marketing Concept.

Dr.B.N.F. Warnakulasooriya16 Societal Marketing concept Society (Human welfare) Company (profit) Consumers (needs and wants satisfaction) SMC calls upon marketers to build social and ethical considerations into their marketing practices.

Dr.B.N.F. Warnakulasooriya17 Relationship Marketing Develop deep, enduring and mutually satisfying long term relationships with all people or organizations that could directly or indirectly affect the success of the firm’s marketing activities. The ultimate outcome of relationship marketing is the building of a unique company asset “Marketing Network” – company and its supporting stakeholders with whom it has built mutually profitable business relationship.