Wednesday, October 16, 2013

Business Orientation to the Marketplace:

A-Product Base
1-Production concept:
 assumes consumers favor those products that are widely available and affordable. It is spiritual to use this method only when there is a strong demand for the product and there is a certainty that the product being launched will be bought by people.
Focus: increasing production, reducing cost, wide distribution; high volume
2-Product concept:
 assumes consumers will favor those products that offer the most quality, performance, and features. They realize that if the quality is good enough, consumers will definitely buy.
 Focus: product design and quality
3-Selling concept:
 assumes consumers will either not buy or not but enough of the organizations’ products unless the organization makes a substantial effort to stimulate the customer’s interest in the product.
(Focus: aggressive selling and promotion without thoughts on the application and customer requirements need of the seller)
B-Customer Base
4-Marketing concept:
holds that the key to achieving organizational goals depend on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors (Focus: different needs of the buyers and company profitability)
5-Societal marketing
concept: adds to the previous marketing concept; for the objective of preserving and enhancing the consumer’s and society’s well being.
(Focus: needs of buyers and society or satisfy customer need without harming the environment)
6-Information age:
(Focus: transparency, competition, globalization)
Comparing Selling and Marketing concept
Selling: Factory—Products--Selling& Promotion Profit through sales volume.
Philosophy: make sales
                 Right customer for your products
Marketing: Target marketConsumer needsintegrated marketingprofit through consumer satisfaction
Philosophy: Sense response
                  Right products for right customers