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Marketing and sales orientations
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A sales emphasis is very different from a marketing emphasis in the organization Four important areas where they differ separate the two approaches: organizational objectives, orientation, attitudes to segmentation and the perceived task facing marketing in the organization (Kotler 2002) A sales emphasis results in objectives which are aimed at increasing current sales to meet quotas and to derive commissions and bonuses Little discrimination is made between products or customers in terms of pro ts unless these differences are written into the incentives In contrast, objectives with a marketing emphasis take pro ts into account Marketing objectives include an explicit consideration of product mixes, customer groups and different communications and ways of reaching the market in attempting to achieve pro table sales and market shares at acceptable levels of risk The selling and marketing orientations produce very different emphases in the organization A selling orientation predominantly re ects a production approach whereby something is produced and the task is to sell it thereby
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[4] Strategic Marketing
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Market orientation Market research Product research and development Production Sales orientation Communications Sales
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Technology orientation
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Figure [12] Alternative business orientation of the rm
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increasing consumption (Figure 12) A focus on sales means a focus on individual customers rather than market segments or market classes Such organizations are very knowledgeable about individual accounts and the variables which in uence speci c sales transactions but they are less interested in developing an approach to an entire segment of similar needs and wants in the market A technology orientation is similar to a sales orientation except that the organization also engages in product research and development (Figure 12) A marketing approach attempts to determine ways of offering superior value to the more pro table segments without damaging individual customer relationships A marketing approach re ects an integrated approach based on research and feedback Customer needs are rst evaluated through market research, an integrated marketing effort is developed to satisfy customers so that the organization achieves its goals, especially those affecting shareholders This is a customer orientation and contrasts very bluntly with a narrow competitor orientation based on sales in which the organization by capitalizing on the weaknesses of vulnerable competitors or by removing its own competitive weaknesses attempts to obtain high sales and long-run pro ts (Figure 13) In many situations marketing evaluates itself and presents its case to senior managers of the organization based on sales, ef ciency or, worst of all, internal awards, not marketplace outcomes or nancial success Senior managers deal with issues that involve the allocation of resources and how such allocation affects the return on investment These hurdle rates are calculated differently from one organization to another but they need to be understood for a marketing programme to be effective and accepted In a business world dominated by nancial considerations the ability of the organization to produce award-winning marketing programmes or attractive but fuzzy images in TV commercials is not of much value Traditional marketing thinking assumes that the organization is in complete control of the marketplace, whereas interaction and market integration are required
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Scope of strategic marketing [5]
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Customer orientation
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Identify needs and wants of potential customers
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Provide and communicate values to match customer needs
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Satisfied customers
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Long-run profits
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Competitor orientation
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Capitalize on weaknesses of vulnerable competitors Remove own weaknesses
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Win market position from competitors
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Attract customers from competitors Minimize loss of customers to competitors
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High sales
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Defend market position
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Source : Adapted from Alfred, R Oxfenfeldt and William L Moore (1983): Customer or competitor: which guideline for marketing in Stewart Henderson Britt, Harper W Boyd, Robert T Davis and Jean Claude Larreche (eds), Marketing Management and Administrative Action, New York: McGraw-Hill
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Figure [13] Customer and competitor orientation in the organization
Strategic marketing concept
Marketing has been de ned as the management function responsible for identifying, anticipating and satisfying customer requirements pro tably Marketing is, therefore, both a philosophy and a set of techniques which address such matters as research, product design and development, pricing, packaging, sales and sales promotion, advertising, public relations, distribution and after-sales service These activities de ne the broad scope of marketing and their balanced integration within a marketing plan is known as the marketing mix A modi cation of a de nition of marketing by Doyle (2000) suggests that marketing is the management process that seeks to maximize returns to shareholders by creating a competitive advantage in providing, communicating and delivering value to customers thereby developing a long-term relationship with them This de nition clearly de nes the objectives of marketing and how its performance should be evaluated The speci c contribution of marketing in the organization lies in the formulation of strategies to choose the right customer, build relationships of trust with them and create a competitive advantage (Doyle 2000, p 235) A marketing strategy consists of an internally integrated but externally focused set of choices about how the organization addresses its customers in the context of a competitive environment A strategy has ve elements: it deals with where the organization plans to be active; how it will get there; how it will succeed in the marketplace; what the speed and sequence of moves will be; and how the organization will obtain pro ts (Hambrick and Fredrickson 2001, p 50) The organization must identify the problem that its customers use its products and services to solve It is also necessary to identify the bene ts customers seek from using a product or service available in the market A market consists