Discuss Sales and Market orientations
Principles of Marketing
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A little about me
• Syllabus • Start Chapter 1
Agenda for today
“the activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at
large” -AMA
What is marketing?
• A philosophy – a management approach that emphasizes customer satisfaction
• A function – the way in which the philosophy is implemented or executed
Two facets to marketing
• At least two parties must be involved • Something of value must be present • Parties are capable of communication and
delivery • Desire to deal with the other party exists • Each party is free to accept or reject the offer
Conditions for exchange
“people giving up something in order to receive something else they would rather
have”
What is an exchange?
Important to Society
Good Career Opportunities
Important to Business
Marketing affects you every day!
Why study marketing?
Marketing management philosophies
• Focuses on the internal capabilities of the firm
Production orientation
• Focuses on the internal capabilities of the firm
Production orientation
• Focuses on the internal capabilities of the firm
• These firms typically do best when: • Competition is weak • Demand exceeds supply
Production orientation
• Focuses on aggressive sales techniques and the belief that high sales = high profits
Sales orientation
• Based on the marketing concept • Focuses on customer wants and needs to gain
competitive advantage • Involves:
• Integration of all organization activities to satisfy customer’s wants
• Achieve long term goals by satisfying customer’s wants and needs (legally and responsibly)
• Firms that implement the marketing concept are market oriented
Market orientation
• Includes: • Obtaining information about customers,
competitors, and markets • Examining information from a total business
perspective • Determining how to provide superior customer
value • Implementing actions to provide value to
customers
Market orientation
• Can compare on 5 characteristics: • Organization’s focus • Firm’s business • Target market • Firm’s primary goal • Tools used to achieve goal
Sales vs Market orientations
• Organization’s focus
• Inward looking • Focuses on what the firm makes
Sales-oriented firm
• Outward looking • Focuses on what the market wants
Market-oriented firm
Sales vs Market orientations
“the relationship between benefits and the sacrifice necessary to obtain those benefits”
What is customer value?
• Offer products that perform • Earn trust • Avoid unrealistic pricing • Give the buyer facts • Offer organization-wide commitment in service
and after-sales support • Co-create with customers • Examples: Lego, Nike ID
Customer value requirements
“the customers’ evaluation of a good or service in terms of whether that good or
service has met their needs and expectations”
What is customer satisfaction?
• When you compare your expectations with the actual performance of the good/service
Evaluation
• A strategy that focuses on keeping and improving relationships with current customers
Relationship marketing
• A strategy that focuses on keeping and improving relationships with current customers
Relationship marketing
• Requires a long-term perspective • Customer-oriented personnel • Effective training programs • Empowering employees • Teamwork
Relationship marketing
• A sales oriented firm defines its business in terms of goods or services
• A market oriented firm defines its business in terms of benefits the customers seek
Know the firm’s business
Know the end consumer
• A strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on precise customer groups
• Organize and track customer segments • Allows for customization of offering and
interactions with customers over time • Getting better with on-demand marketing
Customer relationship management (CRM)
• Sales oriented goals: • Achieve profitability through sales volume • Making a sale is more important than relationship-
building • Tools: promotions, advertising, personal selling
• Market oriented goals: • Profit by creating customer value, satisfaction, and
building relationships • Takes a long-term focus • Tools: coordinates 4 Ps across organization
Primary goals and tools
• Focuses on meeting customers wants and needs but also preserving or enhancing individuals’ and society’s long-term best interests
• What we want may not always be what is best
Societal marketing orientation
Societal marketing orientation
• What are B-Corps? • Certified by B Lab as social enterprises • Based on how value is created for non-
shareholding stakeholders • Goal is to illustrate to consumers a
“fundamentally different governance philosophy” (HBR Article)
B Corps
ProductionProduction
SalesSales
MarketingMarketing
SocietalSocietal
What can we make or do best?
How can we sell more aggressively?
What do customers want and need?
What do customers want/need, and how can we benefit society?
Marketing philosophy
