When companies develop marketing strategies, they make decisions about the direction the company will take and their marketing efforts. Companies can focus on customers, products, sales or production. As the business environment changes over time, the way companies focus their marketing efforts also changes.
An organization adopts the concept of marketing when taking steps to find out as much as possible for consumers, combined with decisions based on marketing, products, and even strategic decisions from that information. These organizations start with customer needs and work from there to create value instead of starting with other factors such as production capacity or innovative discoveries. They assume that success depends on understanding, creating, delivering, and communicating with their target customers better than competitors.
Historically, many companies today do not follow the marketing concept. Over the years, companies such as Texas Instruments and Otis Elevator have pursued product orientation with technology and innovation at the center of the organization. All parts of this organization invest in building and delivering impressive features and product enhancements. These companies prefer competition in these fields. This approach is also called a product concept. Instead of focusing on a deep understanding of customer needs, these companies accept that products that are technically better or cheaper are sold. Although this approach can be very profitable, there is a high risk of losing contact with what your customers really want. This makes product-oriented companies vulnerable to more customer-oriented competitors.