Marketing concept and marketing orientation
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Marketing concept is a outside in approach that the firm goes out into market to learn about what a customer needs, wants then meets, satisfies their needs. It is theoretic or philosophy approach. Marketing orientation is an inside out approach or approach of implementation. When the firm collects what a customer needs, thinks, and then disseminate the information to all relevant departments to be on top of the latest trend. They provide products, services to meet a customer’s expectation. There are two views towards marketing orientation: behavioral and cultural views. The behavioral view has three elements. The first element is organization-wide generation of marketing intelligence. The organization goes out to collect information on customer’s need, economic situation, political situation, micro and macro situation. The second element is to disseminate this intelligence to all departments. The third is a responsiveness of the firm. what the firm has in the pipeline responses to the need of customers. The cultural view also has three elements. The first is to listen to customers, learn about what they want. The second is to know about the competitor, what they are doing, where their standing is. The third is inter-functional coordination between departments to deal with customer’s want, competitor’s competition
Different marketing orientations
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There are two types of the marketing orientations: responsive marketing orientation which corresponds to market-driven-market orientation and proactive marketing orientation which we call market-driving-market orientation. The responsive marketing orientation is the firm responses the needs a customer has, whereas the market-driving-market orientation implies the firm anticipates what a customer needs in future. A customer who is able to express what they want or need is named as expressed customer. Whereas, a customer cannot articulate the need they want to see in a product or a service because they have a hard time to articulate or to sense what they want, we call them as latent customer. An expressed customer give an influence upon a market or a market is led by a customer. It’s customer led. A firm has an impact on a latent customer’s need. It’s customer leading. We use two by two matrix that defines vertically market structure that includes distributions or channels and horizontally market behavior. What do we mean by shape and given? Shape is a firm alters, changes either channels, distributions or market behavior or both of them. Given is a firm that accept a customer’s need
Proactive marketing orientation versus responsive marketing orientation
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Would the proactive marketing orientation or responsive marketing orientation enable a firm to get bang for its bucks? We use a two by two matrix where we have market turbulence on a vertical axis and competition intensity on a horizontal axis. What do we mean by market turbulence and competition intensity? Market turbulence is customer’s preference that they frequently fluctuate. It is hard to identify what their needs in future. We categorize that as high turbulence while market turbulence is less that we classify as low degree. In same veil, completion intensity is considered as high level when there is a cutthroat competition within market and vice versus.
The matrix has 4 parts of combination: A, B, C and D. D is high as market turbulence and competition intensity are high. Thus, the proactive marketing orientation would be adopted in terms of market share, sales, and profitability. Cell A is low in both variables. Thus the responsive marketing orientation would be used.
Next what orientation would go with the success of a new product? Research has shown that proactive marketing orientation should be used in parallel with the success of a new product where there is high turbulence and high competition intensity.
The matrix has 4 parts of combination: A, B, C and D. D is high as market turbulence and competition intensity are high. Thus, the proactive marketing orientation would be adopted in terms of market share, sales, and profitability. Cell A is low in both variables. Thus the responsive marketing orientation would be used.
Next what orientation would go with the success of a new product? Research has shown that proactive marketing orientation should be used in parallel with the success of a new product where there is high turbulence and high competition intensity.