Marketing as a Business Orientation - Assignment Example

Marketing Management Marketing as a Business Orientation: Marketing management orientations are the different concepts that are developed with the course of time. These orientations actually focus on different techniques, policies and strategies to create value for the customers. These marketing management orientations are very much famous among the companies and the marketing managers use them for making their marketing strategies. The famous five marketing orientations are marketing, production, selling, product and the societal marketing concept. All of these business orientations are developed one after the other and thus each one of them is very much important for the company from market perspective. One of the five above described marketing management orientations is the marketing concept. The marketing concept says that a company must deliver and promote its product in the market before the competitor do. There is force on the promotion of the product, which means that the customer should know each, and everything about the product. The value creation about the product in the minds of the customers is very important. In order to make a good perception in the minds of the customers, the marketing managers should study the market well. They can promote their product well if the market and the customers are relevant. In this way, the resources of the company will not be wasted. The marketing managers should focus on the customer’s requirements, needs and demands. In this way, it will be easy for the company to manufacture those products, which meet the demands of the target market. When the company fulfill the demands of the customers then they will be more satisfy form the company [products and thus they will be loyal to the company (Morgan 2009). Another one is the production concept in the list of marketing management orientations. It is the oldest concept of massive production without caring for the demands and requirements of the market. The main thinking beyond the production concept was that the consumers always prefer a low price and an easily accessible availability of the product. For this reason, the companies always focus on the massive and bulk production in order to save their productions costs. When they save their productions costs, then it means that they can sell their product on a cheaper rate as compare to the other competitor in the market. In order to implement this production concept there is s high requirement of the production facility and its maximum efficiency. This type of production concept is usually useful in the countries where the consumers are not concerned about the choices and preferences rather they just need a simple product, which can meet the basic needs. These kinds of customers are usually focusing on the availability of the product rather than the features of the product (Olivares 2003). After that there comes the turn of product concept. The product concept is very much famous among different organizations because the managers think that with this strategy they are actually giving value to the demands of the consumers. The main thinking behind the product concept is that the customers usually prefer a high quality and a high performing product, which can satisfy customer at once. In order to implement this product concept there is a need of innovation, creativity and uniqueness in the products so that the company can inspire the customer with their production. In order to make the products more creative and innovative, there is a need of a strong research and development department within the organization. This research and development department should work efficiently and effectively in order to trace the new market trends, consumer preferences and the competitors’ moves regarding their marketing strategies. The managers can also adopt the strategy of continuous improvements in their products this can also help them to create innovativeness in the products. There is another important marketing management orientation i.e. selling concept. A company may require aggressive selling in order to make a good and impressive image in the market. Therefore, the thinking behind the selling concept says that the company managers should spend a huge amount of their budget on the promotional efforts so that they can enjoy a return of aggressive selling. This can only be possible when the consumers are well aware about the product. This awareness can only be created when the managers focus on the promotion of the products. Another thinking is that in order to implement the selling concept, the managers should focus on the sale of whatever the company has manufactured now rather than to promote what the consumer demands from the company. A strong and comprehensive promotional or we can say advertising campaign can help the company managers to create awareness about their product in the market. Like some other marketing management orientations, the selling concept do not focus on the consumer choice and preferences rather they focus on the firms’ available resources. The last and the most recent marketing management orientation is that of societal marketing concept. These days everyone prefers those brands, which actually involve nature and the society in their promotional campaigns. The societal marketing concept also works on the same thinking pattern. According to this marketing approach, the marketing managers of any company should focus on the strategies and the policies that are beneficial for the entire society. According to the societal marketing concept the company should focus on the whole community or we can say society as their target customers and they should also keep in focus that how their decisions, policies, and the products will affect the whole society. In short words, we can say that a marketing oriented business actually focus on the market and the customers before their own preferences and choices. These kinds of businesses actually make all their decisions and policies after the careful analysis of the market demands and consumer choices. The marketing orientation may also involve a deep analysis of the competitors, and their effects on the consumer perceptions and choices. Here it is important issue that the company requires product functionality and efficiency for being a marketing orientation business. If we look at the history of this marketing management orientation concept, then we may come to know that the businesses were not paying attention to the market research in the earlier times. It was after 1970 that the company’s strategies and policies shift towards marketing orientation. After the era of 70’s, the marketing managers became aware of the fact that they are not actually valuing their customers rather they are just focusing on their own possible resources and the policies. This thinking gives rise to the concept of marketing management orientation in the businesses. After that awareness, there is continuous improvement in the marketing orientations. Importance of segmentation: A company needs a strong customer support if it needs being profitable for a long-term period. If the customers are loyal then it means that they are satisfied with the company and their products. Moreover, this strong and loyal customer base is only probable if the customer is satisfied and wants to remain attached to or we can say loyal to the same organization. To attain the customer satisfaction level mostly companies plan their market strategies as per the market requirements. The market researchers or we can say research and development departments at the companies divide the market and then select any one division to be served according to the availability of the resources. This activity is called as the segmenting process. After segmenting, there comes targeting and then positioning. All these steps are highly dependent on each other. Segmenting, targeting and positioning commonly called STP means establishing relationships with the right customers. Usually companies do this process of segmenting of the market and the customers in order to select the most suitable segment of the market in which they can perform their best while living within the available resources. Another author has described these STP activities as the means of communicating the tailored message to the relevant customers or the audience (Hanlon 2013). Segmenting means the course of dividing the entire potential and relevant market into certain divisions and segments based on their needs, nature, purchasing power and many other characteristics. At first, the market is divided and then every segment’s summary is made based on their characteristics. There are varieties of factors, which can be used as a segmentation base. These factors may include geographical base, demographics, psychographic and behavioral factors. Lifestyles, social classes and differences in personalities are certain other sub-factors, which are important for the market researchers. Due to advancement in marketing techniques the segmentation bases has also been modified now (McAllister 2013). The homogeneity of the market segments makes it easy for the companies to generalize their research for the whole population of the segment (Rudra 2014). According to another author the 5Ws model clarify the process of segmentation i.e. Who, What, When, Where and Why. These all queries regarding customer will differentiate market segments (Richard 2013). There can be different factors on which the companies usually divide the entire market into different segments. After segmenting, company may pick up any one or sometimes more than one segment to serve at their best using all the available resources. At first, there comes the geographical factor, based on their location and access to the product availability, the customers is divided into different segments like urban and rural divisions. This is classified as the geographical segmentation. After that, there comes the demographical differences of the people or the customers like their age, gender, income, and preferences level. All of these factors are very much important and thus can affect the purchasing decision. Therefore, companies may target different customers based on these demographical segments of the market. Lifestyles and the social class difference is also another most important factor to be considered while promoting the product in the market. This process of segmenting is very important for the company because it will save firm’s resources from wastage in the irrelevant market segments. The actual or we can say that the core purpose of these activities is get efficiency in the marketing strategy (Kokemuller 2013). If considering whole market as the target customer then it would give no benefit, rather resources will be utilized and there will be no results. If a company is launching a product that is old age specific and if they use young models or youth concepts then definitely, the old age people would never know about the importance or the unique features of the product. Similarly, if raincoats are advertised in the deserts and dry areas then the resources used on promotion will be of no use. In this regard, we can take the example of famous multinational companies. They have many brands of different features under same one product category. This is because they have targeted different market segments as their resources allow them. However, vast range of brands helps them to capture huge market share. Mostly people agree that it is the whole and sole responsibility of the marketers to create awareness about their precious product so that people would be attracted (Difference between Market STP 2013). For Companies B2B is Harder and Time Consuming as Compare to B2C: In this 21st century, the trend of e-commerce is increasing at a very vast pace among different companies. There can be a variety of advantages of using e-commerce to do a business. This can be cost effective and less time consuming. The accessibility can be easy for the business to target a large portion of the market because of the availability of almost every person on the internet. When we talk about the internet businesses then there can be tow best possible ways to conduct a business transaction on the internet one is between two businesses i.e. B2B and the other is between business and the consumer i.e. B2C (DiMarou 2008). A B2B business means the exchange of products between two businesses rather than between the business and the consumer. These businesses to business transactions can be describes as the transaction between the manufacturer and the whole seller or between whole seller and a retailer. A research study shows that overall volume of businesses to business transactions is larger than the volume of business to consumer transactions. The very crystal clear behind this observation is the involvement of many continuous businesses in a supply chain in vertical order whereas there is only one customer at the end of every supply chain. For example if we look at the manufacturing of any home appliance then the assembler may purchase different parts from different companies and then sale the assembled product to one final consumer. In this way, the number of businesses to business transaction is more than the number of businesses to consumer transactions. Contrary to this, the other type of transaction involves businesses and the consumers. Whenever any business sells its products to the consumers then the transaction between them will be B2C transaction. This B2C transaction model is the most common and familiar model of selling. Though the research says that the larger volume is of businesses to business transaction but still the importance of business to consumer transaction is vital. A company is nothing if it does not enjoy a large number of B2C selling transactions. Both of these business transactions use different strategies, though the methods of promotions, advertisements and publicity are same but still there can be some difference in the policymaking. The advertising is necessary but the advertising medium would be different for both business transactions. The consumers need emotional satisfaction and the price sensitivity but these two factors are not considered in the businesses to business transactions. Another difference will be of purchase motivation for both kinds of transactions. Usually many of the marketing managers are of the opinion that the transaction between business and customer is easy as compare to the transaction between two businesses. The B2C transaction is product focused whereas B2B transaction is relationship focused. B2B transaction maximizes the value of the relationship between the two partners but on the other hand, B2C transaction enhances the value of the transaction. In this way, the B2C transaction is more profitable for the company. The target market for B2C transaction can be large and varied but in case of B2B transaction, the target market is very small and confined. It is already mentioned that B2B transaction is relationship focused therefore it will be of longer duration. Contrary to this B2C is transaction focus and thus it is of short duration. The B2C transaction can be of longer cycle if the customers are loyal to the company and thus they want to remains stick to the company. The B2C transactions need brand identity and thus there is a need of strong promotional campaigns from the company’s side for the market and the customers. The B2C transactions are always affected by the emotions and many other like factors i.e. status, gender, life styles and the position of the customers whereas the B2B transaction is rational based decision. There are many other factors, which actually makes a difference in the two types of business transactions. Based on these differences, many of the marketing managers are of the opinion that B2C transaction is easy to carry out as compare to B2B transaction. Now there comes the difference in the two buyers of both B2C and B2B transactions. The business buyers are more sophisticated, rational and concerned about the nature of the product as compare to the customer buyers. Customer buyers can be easily handled while the business buyers need more attention and infact technique to be served. The customer buyer is more concerned or we can say conscious about the prices and the competitors’ products in the market. The only similarity between both customers is that they are quality conscious and thus can even reject the product if the quality of the product is not up to the mark. However, the background reason can be different but both of the buyers are branding conscious. There are certain words or we can say special terms, which are used by the particular people of the same field or the area. These words or terms are understandable only for the concerned people and thus any nonprofessional cannot understand them. Same is the case with B2B transactions. In these transactions both parties can share same wordings and though patterns which is market specific but in case of B2C transaction the consumers are not at all familiar with the thought pattern of the company and thus the company may have to use a generalized or we can say standard thought patters for all the customers. This can be useful that a standardize policy can be understandable by a large number of people rather than a small number of related people only. There are many factors, which make a B2B transaction difficult, or we can say time consuming as compare to the B2C transaction. Like a B2B, transaction needs more detailed and lengthy introduction or the orientation of the product as compare to the B2C transaction. Usually companies need experts in order to handle the business buyers rather the consumer buyers can be handled with an emotional advertising campaign. Reference List: ‘Difference between Market Segmentation, Targeting and positioning’ 2013, Management Study Guide, viewed June 30, 2014 from http://managementstudyguide.com/marketing-segmentation-targeting-positioning.htm DiMarou, V 2008, ‘Social Networking for Business; How is it different?’ The Advisory Council, page 23-28 Hanlon, A 2013, ‘How to use segmentation, targeting and positioning to develop marketing strategies’, viewed Jun 30, 2014 from http://www.smartinsights.com/digital-marketing-strategy/customer-segmentation-targeting/segmentation-targeting-positioning-model/ Kokemuller, N 2013, ‘Analysis of Targeting, Segmentation and positioning’, viewed June 30, 2014 from http://smallbusiness.chron.com/analysis-targeting-segmentation-positioning-64494.html McAllister, C 2013, ‘Segmentation, Targeting and Positioning- need for a change.’ Viewed on June 30, 2014 from http://www.sevendots.com/segmentation-targeting-positioning-need-for-a-change/ Morgan, N, Vorhies, D 2009, ‘Market Orientation, Market Capabilities and Firm Performance’, Strategic Management Journal, No. 30, page 909-920 Olivares, A, Lado, N 2003, ‘Market Orientation and the Business Economic Performance’, International Journal of Service Industry Management, Volume 14, No. 3, page 284-309 Read More