The document discusses four marketing management philosophies: production orientation, sales orientation, market orientation, and societal orientation. It then provides details on each philosophy, including their focus, risks, and when each is most applicable. The differences between sales and market orientations are also examined based on factors like organizational focus, primary goals, and tools used. Customer value and relationship marketing are introduced, emphasizing the importance of customer satisfaction and keeping/improving customer relationships through effective training and empowered employees.

1. HBNF02 - MARKETING

2. •INTRODUCTION
•MARKETING CONCEPTS OR PHILOSOPHIES
•THE NEED FOR MARKETING IN BUSINESS
•RELATIONSHIP BETWEEN MARKETING AND
BUSINESS
•CUSTOMER VALUE
•HOW TO BUILD RELATIONSHIP MARKETING

3. Marketing Management Philosophies
Describe four
marketing
management
philosophies

4. The Four Marketing Management
Philosophies
Production Orientation
Sales Orientation
Market Orientation
Societal Orientation

5. Production Orientation
• The production concept holds that customers will favor products
that are available and highly affordable and that management
should therefore focus on improving production and distribution
efficiency.
• The production concept is useful when:
• Demand for a product exceeds the supply.
• The product's cost is too high and improved productivity is needed to bring it down.
• The risk with this concept is in focusing too narrowly on company
operations. Do not ignore the desires of the market.

6. Production Orientation

7. Sales Orientation
Many organizations follow the selling concept.
The selling concept is the idea that consumers will not buy enough of the
organization's products unless the organization undertakes a large-scale selling and
promotion effort.
This concept is typically practiced with unsought goods (those that buyers do not
normally think of buying).
 To be successful with this concept, the organization must be good at tracking
down the interested buyer.
Industries that use this concept usually have overcapacity.
Their aim is to sell what they make rather than make what will sell in the market.
There are not only high risks with this approach but also low satisfaction by
customers.

8. Sales Orientation

9. Market Orientation
 The marketing concept puts customers twice in the entire
business cycle- at the beginning as well as at the end of the
business cycle.
 It assumes that the business should start with the determination
of consumer needs and wants and it should end with the
satisfaction of those needs and wants.
 According to the marketing concept, any business should be
organized around the marketing function, and it should strive to
anticipate, stimulate, and meet customers’ expectations.

10. Achieving a Marketing Orientation
 Obtain information about customers, competitors, and
markets
 Examine the information from a total business perspective
 Determine how to deliver superior customer value
 Implement actions to provide value to customers

11. Societal Marketing Orientation
An organization exists not only to satisfy customer wants but
also to preserve or enhance individuals’ and society’s long-term
best interests.
For example:
• Less toxic products
• More durable products
• Products with reusable or recyclable
materials

12. Societal Marketing Orientation

13. Questions That Help Determine
Marketing Philosophy
Production
Sales
Marketing
Societal
What can we make or do best?
How can we sell more
aggressively?
What do customers
want and need?
What do customers want/need,
and how can we benefit society?
Orientation Focus

14. Discuss the
differences
between sales
and market
orientations
Differences between Sales and
Market Orientations

15. Comparing the Sales and
Market Orientations
Compare through 5 characteristics:
• Organization’s focus
• Firm’s business
• Those to whom the product is directed
• Firm’s primary goal
• Tools the organization uses to achieve its goals

16. Sales vs. Market
Orientations
Sales
Orientation
Market
Orientation
Organization’s
Focus
Firm’s
Business
For
Whom?
Primary
Profit
Goal?
Tools to
Achieve
Selling
goods and
services
Everybody Maximum
sales
volume
Primarily
promotion
Inward
Outward Coordinated
use of all
marketing
activities
Customer
satisfaction
Specific
groups of
people
Satisfying
wants and
needs

17. Customer Value
The relationship between
benefits and the sacrifice
necessary to obtain those
benefits.

18. Customer Value
Requirements
 Offer products that perform
 Earn trust
 Avoid unrealistic pricing
 Give the buyer facts
 Offer organization-wide commitment in service and after-
sales support
 Co-creation with customers

19. Customer Satisfaction
Customer Satisfaction is…
the customers’ evaluation of a good or service
in terms of whether that good or service has met
their needs and expectations.

20. THE NEED FOR MARKETING IN
BUSINESS
• Marketing can help a business set its goals
• Boost sales
• Lead to the popularity of their brand
• Motivate the company to maintain its reputation
• Important for business to engage its customers
• Helps to build a relationship between a business and its customer
• Informs customers about the products or services business offering
them
• Helps to analyze appropriate target market/product/services
• Providing insights about the business-help to make informed

21. Building Relationships
Relationship Marketing is…
a strategy that focuses on keeping and
improving relationships with customers.
Successful strategies need:
• Customer-Oriented Personnel
• Effective Training Programs
• Empowered Employees
• Teamwork

22. Case: How Red Bull Became A Global Brand
Through Marketing
• Red Bull has become one of the world's most popular energy drinks through it's unqiue history and
approach to brand & marketing
• Red Bull has grown from a simple energy drink manufacturer to one of the most recognized brands
in the
world. It has become synonymous with sports, extreme performance, and victory
• Red Bull is the extreme athlete of marketing, literally and figuratively
• A few key facts about Red Bull:
o Globally, 5 billion Red Bull energy drinks were sold in 2019.
o The company is headquartered in Fuschl am See, Austria.
o As of 2020, the company had global revenues of 6.31 billion euros.
o Red Bull does not share its marketing budget, but it is rumored to be around 25% of the yearly
revenue.
o Red Bull sponsors athletes in 73 countries around the world.

23. •What are marketing objectives of Red
Bull?
•How does Red Bull build customer
loyalty?
•How do Red Bull strategies their

24. Further reading
• https://www.yourarticlelibrary.com/marketing/nee
d- and-importance-of-marketing-research/32281
• https://www.marketing-interactive.com/what-made-
the-swatch-x-omega-tie-up-blow-up-out-of-this-
world
• https://www.marketingweek.com/mark-ritson-
omega- swatch-moonswatch-co-branding/
• https://www.thenationalnews.com/business/2022/04
/0 4/how-omega-and-swatch-used-industry-
marketing- techniques-to-hype-the-moonswatch/
• https://krows-digital.com/guerilla-marketing-
marketing- case-study-3-red-bull/
• https://mktoolboxsuite.com/red-bull-marketing/