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.
Other companies have a sales focus. These companies emphasize the sales process and try to make it as effective as possible. While companies in any industry can adopt the sales concept, multi-tier marketing companies like Herbalife and Amway usually fall into this category. Many business sales teams with special sales teams also fit this account. These organizations accept that a good salesperson can sell almost anything with the right tools and incentives. Sales and marketing techniques include aggressive sales methods, promotions, and other sales support activities. Often, this focus on the sales process can ignore the customer or view the customer as someone who needs to be manipulated. These companies sell what they do, which is not necessarily what the customer wants.
The manufacturing concept is followed by organizations that work for low production costs, highly efficient processes, and mass distribution (which allows them to send cheap goods at the best prices). This approach gained popularity during the industrial revolution of the late 19th century, when companies began to take advantage of opportunities related to automation and mass production. Oriented companies suggest that customers are most interested in products that are easily accessible at low prices and lack the specific characteristics of the product. Henry Ford’s success with the innovative Model T is a classic example of the concept of active production. This approach is still a huge success in developing countries looking for economic benefits in manufacturing.
Imaginative companies recognize the importance of product, production and sales properties, but also realize that marketing orientation will lead to the greatest success in today’s business environment if the company continues to gather information about customer needs and competitor skills. Exchange information between departments; and use that information to gain competitive advantage by increasing customer benefits