© 2012 Pearson Education, Inc. publishing Prentice Hall. Note 15 The Marketing Concept

© 2012 Pearson Education, Inc. publishing Prentice Hall. Introduction  Individual executives, management teams, and whole corporate cultures tend to have distinctive priorities and approaches to problem solving  Managerial orientations shape resulting strategies 2

© 2012 Pearson Education, Inc. publishing Prentice Hall. Introduction  Marketing concept - firms will be most successful at achieving goals when they orient around the consumers’ needs and align the entire organization around satisfying those needs  Market orientation - a firm wide customer and competitor focus and coordination of activities 3

© 2012 Pearson Education, Inc. publishing Prentice Hall. A Historic, Evolutionary Account  In the early twentieth century, demand for goods exceeded supply, and managers focused on efficient manufacturing and control - their emphasis was on production  This period has been called the production era 4

© 2012 Pearson Education, Inc. publishing Prentice Hall. A Historic, Evolutionary Account  In the mid-twentieth century, supply began to meet and exceed demand  Managers recognized that promotion and selling activities facilitated sales in competitive markets  Large dry-goods companies, innovated their advertising and promotion strategies during the sales era 5

© 2012 Pearson Education, Inc. publishing Prentice Hall. A Historic, Evolutionary Account  In the 1950s and 1960s, businesses and management experts recognized that:  The core organizational functions and strategic direction become more effective and efficient if:  They began with a deep understanding of and emphasis on customer needs and wants 6

© 2012 Pearson Education, Inc. publishing Prentice Hall. A Historic, Evolutionary Account  Things that a market orientation is not:  It is not an altruistic or feel good mantra  It doesn’t imply that the firm should or could serve a need without realizing a profit  It does not mean that the customer is always right  It does not cede control to the customer  It doesn’t require the firm to meet every customer whim  Does not require that customers can articulate their wants, or that they even know what they will want or what will satisfy their need 7

© 2012 Pearson Education, Inc. publishing Prentice Hall. Table Note Needs, Motives, Wants, and Demand 8

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