Summary
Marketing Concept - Summary notes
- Course
- Institution
Marketing Concept 1. Marketing concepts (philosophies) 2. Marketing and social responsibility 3. The importance of marketing 4. Relationship marketing
[Show more]
Seller
Follow
reigntutorstc90
Content preview
1. Marketing concepts (philosophies)Marketing philosophies guide the marketing efforts of organisation.
1.1 The marketing concept
The marketing concept holds that management achieves organisational
objectives by determining the needs of the target market and delivering
the desired product and satisfaction more effectively than competitors
do.
1.2 Company orientation: We distinguish four main orientations that
may guide the organisation in its marketing thought and efforts:
1.2.1 Production orientation: Believing that consumers favour products
that are available and affordable, management focuses on improving
production and distribution efficiency.
A production-orientated company concentrates on production of its
chosen products, and has a relatively small marketing and selling activity.
It usually depends on the excellence of its products, with a small amount
of advertising and public relations, to bring in the customers. Many small
businesses work in this way, and some individuals find it is possible to
earn a living by satisfying the needs of the local population. You might
think of the local shoe-mender, optician, lawyer or doctor as being in
such a category.
Rolls-Royce engine manufacturers were production-orientated until
their dramatic failure forced the British government to take steps to save
them from closure. The company had concentrated on designing and
making the best aero-engines in the world because they saw that
airliners were getting bigger and needed more power. To some extent
their marketing activity was successful, but they failed to look after the
profit part of the marketing definition, which is important. Even the best
, of designers are not so product-minded as to work for no pay and their
pay comes from profits, or at least from the surplus of income over costs.
1.2.2 Product orientation: Believing that consumers favour products
that offer the best quality, performance, and features, the organisation
focuses its efforts on improving products.
A product-orientated company believes that consumers will favour their
products that offer the highest quality, performance and features.
Therefore, the company devotes its energy to making continuous
product improvements. Some companies believe that they can build a
better car, but forget that unless they design the product to the
customers' needs, place it in convenient distribution channels, price it
effectively and tell the people who need it about the offering, the car will
probably not sell.
Believing that the market will favour the highest quality products can
also lead to marketing myopia, where we concentrate on the product
and not the need for the product. For example, in the past,
businesspeople thought travellers wanted trains (when in fact the need
was for transportation) and overlooked the growing need for airlines,
buses and trucks.
1.2.3 Selling orientation: Management believes that massive selling and
promotion efforts are required if consumers are to buy the product.
Selling-orientated companies are satisfied to make their profit by selling
what they or other people can make. To them, sales are the main
objective; they do not necessarily make any of the products that they
sell.
Mass production makes plenty of products available, so that there are
seldom any real shortages. However, the production lines can reduce the
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller reigntutorstc90. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.70. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
57413 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now