Unformatted text preview: s free to accept or reject the
Each party believes it is appropriate or
desirable to deal with the other party.
Exchange will not necessarily take place even if all these conditions exist. They are necessary for
exchange to be possible, but unless the buyer and seller reach an agreement, an exchange will not
KEY: CB&E Model Strategy OBJ: 01-1 TOP: AACSB MSC: BLOOMS Synthesis 4. Name and describe the four marketing management philosophies.
PRODUCTION ORIENTATION. This orientation focuses firms on their internal production
capabilities rather than the desires and needs of the marketplace. SALES ORIENTATION. This
orientation assumes that buyers will purchase more of any item if aggressive selling techniques
are used. Again, this orientation does not address the needs and wants of the marketplace.
MARKET ORIENTATION. This orientation recognizes that a sale is dependent on the customer’s
decision to purchase a product and provides increased responsiveness to customer needs and
wants. To market-oriented firms, marketing means building relationships with customers.
SOCIETAL MARKETING ORIENTATION. This orientation refines the marketing orientation by
stating that the social and economic justification for an organization’s existence is the satisfaction
of customer wants and needs while meeting the organization’s objectives and preserving or
enhancing both individuals’ and society’s long-term best interests.
KEY: CB&E Model Strategy OBJ: 01-2 TOP: AACSB MSC: BLOOMS Synthesis 5. If a firm has a production orientation, what types of questions does management ask after
assessing its resources?
With a production orientation, management focuses on the internal capabilities of the firm.
Management might ask: “What can we do best?” “What can engineering design?” and/or “What
is economical and easy to produce with our equipment?”
KEY: CB&E Model Strategy OBJ: 01-2 TOP: AACSB MSC: BLOOMS Synthesis 6. An entrepreneur has set up a company to manufacture and market GPS systems for hunters. He
has decided a sales orientation would best suit his new company. What are important
considerations for this firm when it adopts this orientation? What are potential pitfalls of this
orientation the owner needs to understand?
The most important component for a sales orientation is an aggressive sales force. The sales force
can push intermediaries to carry products or push consumers to purchase. For the entrepreneur in
question, this is important, as hunters rarely buy GPS equipment directly from the manufacturer.
Instead, GPS equipment is offered through specialty resellers. An aggressive sales force could
help the entrepreneur sell his product in more outlets. However, despite a high-quality sales force,
even aggressive salespeople cannot convince people to buy goods and services that are neither
wanted nor needed.
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This document was uploaded on 09/29/2013.
- Fall '13