According to the societal marketing concept the pure

This preview shows page 17 - 19 out of 199 pages.

According to the societal marketing concept, the pure marketing concept overlooks possible conflicts between consumer short-run wants and consumer long-run welfare. The societal concept calls upon marketers to balance three considerations in setting their marketing policies. a) Company profits b) Customers wants c) Society’s interest It has become good business to consider and think of society’s interests when the organization makes marketing decisions. 12
1.4. Market versus Internally Driven Businesses A deeper understanding of the marketing concept can be gained by contrasting in detail a market driven business to one which is internally orientated. Table 1.1 summarizes the key differences. Market-driven companies display customer concern throughout the business . All departments recognize the importance of the customer to the success of the business. In internally focused businesses, convenience comes first. If what the customer wants is inconvenient to produce, excuses are made to avoid giving it. Market-driven businesses know how their products and services are being evaluated against competition. They understand the choice criteria that customers are using and ensure that the marketing mix matches those criteria better than the competition. Internally driven companies assume that certain criteria—perhaps price and performance if the company is supplying industrial goods—are uppermost in all customers’ minds. They fail to understand the real concerns of customers. Businesses that are driven by the market base their segmentation analyses on customer differences that have implications for marketing strategy. Businesses that are focused internally 13 Activity 5 Given changing realities of the business world, what philosophy should guide a company’s marketing efforts? Discuss the guiding principles in each of the company orientations? Activity 5 Given changing realities of the business world, what philosophy should guide a company’s marketing efforts? Discuss the guiding principles in each of the company orientations? Commentary The main philosophies that guide marketing related decisions of a company are the production concept, product concept, selling concept, marketing concept, and societal marketing concept. Production concept focuses on efficiency, low costs, and mass distribution; product concept focuses on product improvement and innovative features at the shop level or without considering customers’ requirements; selling concept focuses on promotion and large scale selling; marketing concept emphasizes that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors do; and finally the focus of societal marketing is delivering superior value to customers in a way that maintains or improves the consumer's and the society's well being. Commentary The main philosophies that guide marketing related decisions of a company are the

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture