Marketing Oriented Approach Essay Example | Topics and Well Written Essays - 1000 words

Marketing Oriented Approach - Essay ExampleTo this end it is useful to compare and contrast between firms that lie at ii ends of the spectrum the marketing orientated firms versus the production oriented. A marketing oriented approach is a reactive approach in that companies produce new products/services found on customer needs and wants (Kotler, 2007). However, it goes further than that in that it aims to establish long term profit commensurate relationships with the customer (Jeff, 2009). The aim of such firms is not just delivering a product has profitable customer demand but also establishing long term association with them by exceptional customer service. Such service may be in the form of superior after sales service and/or consultation services provided by salespeople (Jeff, 2009). Kotler elaborates on the concept of marketing preference by claiming that holistic marketing orientation is essentially a process that enables companies to capture customer lifetime value. The concept of building long lasting relationships with customers enhances the alliances ability to understand the customer and retain him for a lifetime. Thus, the Pareto rule that 20% customers bring in 80% of the revenue is very well recognised by this approach which aims at capturing a customer and retaining him for life. Companies that therefore drifted away from the idea of stretch outing low prices towards offering a brand make love. Todays customer is no longer price conscious infact, contemporary trends have made the customer of today pressed for time with multiple claims on an one-on-ones scarce time. Hence, convenience and satisfaction is the need of the hour. Thus, rather than competing on cost, companies today are competing on attempts to provide a pleasurable brand experience to its customers. On the other hand, the production oriented approach is a proactive approach in that the company first produces the product/service that is most practicable for the company in te rms of its competitive priorities (cost, quality, delivery, flexibility) and then makes an effort to sell it to the customers. Thus, production oriented firms are inclined towards mass production of goods that they are able to produce at the lowest cost due of economies of scale (Jeff, 2009). Perhaps, an obvious difference then is that companies adopting marketing oriented approach are able to offer differentiated, innovative and unique products as opposed to production oriented firms that offer standardized, low cost items at several locations (Jeff, 2009). Hence, the fundamental difference between the dickens is that in the former the customer is the driving force behind a new product whereas in the latter, the company is the driving force. Furthermore, in production oriented companies the role of the sales force also changes from that of prior consultation to preserveing the product to the customer once its produced (Jeff, 2009). Hence, the marketing oriented companies adopt wh at is know as a pull strategy (that is having the customer buy the product he/she wants) as opposed to the push strategy of production oriented firms (that push the product it develops based on low costs to the customer) (Kotler, 2007). Although both have successfully co-existed since a long time, it has been realized that most successful