1.what customers will we serve? (what’s our target market?)2.how can we serve these customers best (what’s our value proposition)?
Choosing a value proposition The company must decide how they will serve targeted customers – how it will differentiate and position itself in the marketplace. Value proposition – the set of benefits or values it promises to consumers to satisfy their needs. Marketing management orientations 5 alternative concepts: production, product, selling, marketing, and societal marketing The production concept The idea that consumers will favour products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency The production concept can leads to market myopia Disadvantage of this concept: major risk of focusing too narrowly on their own operations and losing sight of the real objective – satisfying customer needs and building customer relationships. The product concept The idea that consumers will favour products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements Can lead to marketing myopia The selling concept The idea that consumers will not buy enough of the firm’s products unless it undertakes a large-scale selling and promotion effort Carries high risk, it only focuses on sales transactions rather than on building long-term relationship The selling concept focuses on existing products and it ends in profits through sales volume It means on selling and promoting The marketing concept The marketing management philosophy that holds that achieving organization goals depends on knowing the needs and wants of target merkets and delivering the desired satisfactions better than competitors do The marketing concept takes an outside-in perspective Focus on customer needs and profits through customer satisfaction
You've reached the end of your free preview.
Want to read all 7 pages?
- Spring '11
- Marketing, Customer Relationships, marketing partner