. . . is production (product) oriented. It implies a good product will sell itself, or "we don't need a sales department because we can sell everything we can produce".
Sales philosophy . . . says, "our capacity exceeds our orders and we don't want to reduce production, so lets find some new customers".
Marketing department philosophy . . . says "let's find new customers for our products but not produce more than we can sell, and lets make adjustments to production, prices, and products to keep everything in balance".
Marketing concept philosophy . . . says, "let's identify and meet the buyers needs and wants, consistent with our company's long term mission, and our business objectives".
Societal marketing philosophy . . . says, "let's continue to meet the market needs, and our business objectives, but do so in a way that also enhances the well being of society".
Marketing philosophy comparison
- Marketing department vs. marketing concept
The marketing concept philosophy
- Defines the firm's mission in terms of benefits and satisfaction it offers, rather than in terms of products it makes and sells.
- Emphasizes two way communications to identify customer needs - then develops markets and products to satisfy their needs. Gone is the emphasis on one-way communications to persuade people to buy products already made.
- Requires both long and short range planning to achieve profit by meeting customer needs. Gone is the exclusive focus on short range planning to achieve volume sales, volume objectives.
- Emphasis is on total systems integration of all departments to achieve profit goals. Gone is the exclusive focus on the efforts of individual departments and sales forces
Sales executives think in these terms
1. Sales volume rather than profit
- Increase current sales
- Achieve commission and bonus
2. Short run rather than long run
- Think only about today's products, markets, customers and strategies
- Don't think about product/market expansion strategies over the next 5 years
3. Individual customers rather than market segments
- Knowledgeable about individual accounts
- Less interested in developing strategies for market segments
4. Field work rather than desk work
- Prefer to sell to customers instead of developing plans and strategies and plans of implementation
Marketing executives think in these terms
1. Profit planning
- Plan sales volume around profits.
- Plan product mix, customer mixes and marketing mixes to achieve profit
- Plan with acceptable risk
2. Long run trends, threats and opportunities
- How to translate these into new products and markets
- Use to develop strategies to assure long term growth
3. Customer types and segment differences
- Determine ways to offer superior value to the most profitable segments
4. Good system for market analysis, planning and control
- They are comfortable with numbers and working out financial implications of marketing plans
- "PROCESS OF PLANNING"
- "SATISFACTION OF PEOPLE NEEDS AND WANTS"
- "CREATE AND KEEP THE CUSTOMER"
- "PROCESS OF PREDETERMINING CONSUMER DEMAND"
- "CENTRAL ORGANIZATIONAL FUNCTION"
challenge to win