Marketing Management Philosophies

A Approaches h to the h marketplace k l

A philosophy should guide the marketing strategy to any company. The philosophy could be one or more of the f ll i ; following;

1.Production; affordability and availability. 2.Product -- quality and innovation. 3 Selling -- promotion and hard selling. 3.Selling selling 4.Marketing -relationships. l i hi customer satisfaction and

5.Societal long-term value to both customer and society.

Th P The Production d Concept C

Holds that consumers will favor products that are available and affordable. Implies work towards mass production and low cost. Its effective strategy in two situations: When a demand for a product exceeds the supply. When the product cost is too high, and improve productivity d i i is i needed d d to reduce d the h cost, to gain i market share. Example; McDonalds. McDonalds

Th P The Product d Concept C

Assumes customers favor products that offer quality, y, performance, p , and features. the most q
Implies firm should strive to continually upgrade product and product features.

In this case the company should focus on the continuous improving. Examples; Nokia Mobile, Motorola, Sony..

Th S The Selling ll Concept C

Inside-out perspective: Assumes people need to be sold on whatever it is the firm has decided to offer. 1st: Decide what to produce; 2nd: Figure out how to get people to buy what you have.
Implies lots of selling/promotional activities are needed to move product Example; Life Life-Insurance Insurance

Th M The Marketing k Concept C

Holds that achieving organizational goals depends upon p knowing g the needs and wants of target g markets and delivering the desired satisfactions more effectively and efficiently than do competitors. i Production and product concepts, if appropriate, f ll this follow thi concept t The job is not to find the right customers for your product but the right products for your customers. product, customers

M k Marketing Concept C Components C

Means of achieving goals knowing g needs and wants
implies research and/or appropriate assumptions

Target markets
implies clear target groups: people whose needs/want you will try to fill

Satisfaction Competitors ackno acknowledged ledged

SOCIETAL MARKETING PHILOSOPHY;

Balances human welfare, company profits and consumer satisfaction Example; Johnson & Johnson Credo y, integrity, g y, and p people p before p profit. honesty,
Many calls from the Healthy Associations warn people form the consequences results f from F Fast Food F d chains. h i

Starting point

Focus

Means

Ends

Selling philosophy

Existing Selling Factory products Promoting

Profits Through g Sales volume

Marketing philosophy

Customer Integrated Market needs Marketing

Profits Through Customer Satisfaction

Marketing Concept Vs. Selling Concept

Marketing Concept:
Begin g with customer needs Develop 4 Ps in light of f customer t needs d Have what you can get rid of g

Selling Concept
Begin g with what firm wants to produce Given products, persuade d customers t to t buy Get rid of what y you have.

S i lM Social Marketing k ti philosophy hil h

Society (Human being g)

Consumers Want satisfaction

Company (profits)

Building Relationships R l i hi span from Relationships f the h basic b i to tight i h integrated i d relationships. Successful relationships are built on:
Financial benefits; like VIP, Airline frequent miles Social benefits; Soc be e s; like e member e be of o clubs, c ubs, magazines g es Structural ties; like tracking orders online. Every department in an organization contributes to customer satisfaction. Suppliers are carefully controlled through supply chain management. Strategic alliances create new opportunities to delight customers. customers

Partner Relationship Marketing

 Outcomes of creating customer value;

1 Customer loyalty and retention; delighted customers remain loyal and talk favorably to others about the company and d its it products, d t and d turn t t be to b life-time lif ti value. l 2 Share of market and share of customer; many companies are increasing their variety of products and profits form existing g customers. services to increase their p Amazon offer videos, toys, electronics, beside books. 3 Customer C t equity it ; is i the th total t t l combined bi d customer t lif ti life-time values of all the companys customers. They view customers as an assets need to be maximized

COMPANY ORIENTATIONS TOWARDS THE MARKETPLACE

Production Concept Product Concept p Selling Concept Marketing Concept
Consumers prefer products that are widely available and inexpensive

Consumers favor products that offer the most quality, performance, or innovative features Consumers will buy products only if the company aggressively promotes/sells these products Focuses on needs/ wants of target markets k t &d delivering li i value l better than competitors