Author: Jim Riley Last updated: Sunday 23 September, 2012
Whilst marketing text books usually suggest that successful
business will be "marketing orientated", it is the case in the real
world not all businesses subscribe to the marketing concept.
The implications of believing in the marketing concept become
clearer when the alternatives are examined:
There are three main alternatives to adopting a marketing
orientation. These are:
(1) Sales orientation
(2) Production orientation, and
(3) Product orientation.
These are described briefly below.
Some businesses see their main problem as selling more of
the product or services which they already have available. They may therefore
be expected to make full use of selling, pricing, promotion and distribution
skills (just like a marketing-orientated business).
The difference is that a sale-orientated business pays little
attention to customer needs and wants, and does not try particularly hard
to create suitable products or services.
A production-orientated business is said to be mainly concerned
with making as many units as possible. By concentrating on producing maximum
volumes, such a business aims to maximise profitability by exploiting economies
In a production orientated business, the needs of customers
are secondary compared with the need to increase output. Such an approach
is probably most effective when a business operates in very high growth markets
or where the potential for economies of scale is significant.
This is subtly different from a production orientation.
Consider a business that is “obsessed” with its own products –
perhaps even arrogant about how good they are. Their products may start out
as fully up-to-date and technical leaders.
However, by failing to consider changing technological developments
or subtle changes in consumer tastes, a product-orientated business may find
that its products start to lose ground to competitors.