Marketing Management

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“Part 1: Defining Marketing and the
Marketing Process”

Lecture - 2

Marketing Orientation

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Lecture Outline
1. Introduction to Marketing Orientations

2. Production Concept

3. Product Concept

4. Selling Concept

5. Marketing Concept

6. Societal Marketing Concept

7. Holistic Marketing Concept

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 “
Marketing Management
Orientations/philosophies/ Concepts

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 Marketing Management
Orientations/philosophies/ Concepts
Marketing management wants to design strategies that
will build profitable relationships with target
consumers.
What weight should be
What philosophy
given to the interests of
should guide these
customers, the
marketing strategies?
organization and society?
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Marketing Management Orientations

Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
Holistic Marketing Concept

Customer Driven 6
 The Production Concept

The production concept holds that consumers will

favour products that are available and highly
affordable. Therefore, management should focus on
improving production and distribution efficiency.

Ford Model-T Car

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The Production Concept

•High production efficiency

Management
•Low costs (inexpensive)
Focuses
•Mass distribution

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Major Risk of Production Concept

Focusing too narrowly on their own operations and

loosing sight of the real objective – “Satisfying
customer needs and building customer
relationships”.

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 The Product Concept
The product concept holds that consumers will
favour products that offer the most in quality,
performance and innovative features.

Making continuous
Management
product improvements
Focuses
to the product
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 The Product Concept (contd)
Focusing only on the company’s product, that can lead to Marketing
Myopia - “focus on the product rather than the consumer need”.

Marketing Myopia
The mistake of paying more attention
to the specific products a company
offers than to the benefits and
experiences produced by these
products.
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 The Selling Concept
The selling concept holds that consumers will not buy
enough of the firm’s products unless it undertakes a large-
scale selling and promotion effort. The aim often is to sell
what the company makes rather than making what the
customer wants.

Management Aggressive selling and

Focuses promotional efforts

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 The Marketing Concept

The marketing management philosophy holds that

achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the
desired satisfactions better than competitors do.

Management
Focuses on Being customer centered

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 The Marketing Concept (Contd)
The job is not to find the right customers for your product but to find the
right products for your customers.

Components of Marketing Concept

 Target markets
 Customer needs
 Coordinated marketing
 Profitability

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 The Marketing Concept (Contd)
Components of Marketing Concept

 Target markets :A marketer can rarely satisfy everyone in a

market. The target market is the part of the qualified available
market the company decides to pursue.

 Customer needs :The successful marketer will try to

understand the target market’s needs. Needs describe basic
human requirements such as food, air, water, clothing, and
shelter. People also have strong needs for recreation,
education, and entertainment.

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 The Marketing Concept (Contd)
Components of Marketing Concept

 Integrated marketing: When all of the company’s departments work

together to serve the customers’ interests, the result is integrated
marketing. Integrated marketing takes place on two levels. First, the
various marketing functions. Second, marketing must be embraced
by the other departments.

 Profitability : The ultimate purpose of the marketing concept is to

help organizations achieve their objectives. In the case of private
firms, the major objective is profit; in the case of non-profit and
public organizations, it is surviving and attracting enough funds to
perform useful work.

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Do you think marketing
concept
is the best orientation?
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▷ Still have a problem

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▷ Still have a problem
Does the marketing concept overlook possible conflicts
between consumer short-run wants and consumer
long-run welfare?

Is a firm that satisfies the immediate needs and wants

of target markets always doing what is best for
consumers in the long run?

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 The Societal Marketing Concept

The societal marketing concept holds that a company’s

marketing decisions should consider consumers’
wants, the company’s requirements, consumers’ long-
run interests and society’s long-run interests.

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 The Societal Marketing Concept (Contd)
Society (Human Welfare)
The societal marketing concept
calls upon marketers to build
social and ethical
considerations into their
marketing practices. They must
balance and juggle the often
Societal conflicting criteria of company
profits, consumer want
Marketing satisfaction, and public interest.
Concept

Consumers Company
(Want Satisfaction) (Profits) 21
 The Holistic Marketing Concept
The holistic marketing concept is based on the
development, design, implementation of marketing
programs, processes and activities that recognizes their
breadth & inter dependencies.
Holistic marketing recognizes that, “everything matters”
in marketing and that a broad, integrated perspective is
often necessary.

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 Relationship Marketing

Relationship Marketing aims to build mutually satisfying

long-term relationships with key constituents in order to
earn and retain their business.

Outcome – Strategic Marketing network

 Integrated Marketing

The marketer’s task is to devise marketing activities and

assemble fully integrated marketing programmes to create,
communicate and deliver value for consumers.

Internal Marketing

▷ The task of hiring, training, and motivating able

employees who want to serve customers well.
▷ Ensuring everyone in the organization embraces
appropriate marketing principles, especially senior
management.
 Performance Marketing

Holistic marketing incorporates performance marketing

and understanding the returns to the business from
marketing activities and programmes, as well as
addressing broader concerns and their legal, ethical, social
and environmental effects.

- Financial Accountability
- Social Responsibility Marketing
Thanks!
Any questions?

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