Explain and examples. 1 Basic Focus The
Explain the difference between a market orientation and a product orientation.
Illustrate with concepts and examples. 1 Basic Focus The basic focus of a company with a production orientation is toward maximizing production output. Under a production orientation, a company is succeeding when it is manufacturing as many products as possible at the cheapest possible price. In contrast, a company with a marketing orientation is squarely focused on the consumer.
Market-oriented companies respond to marketing research and tailor their products in accordance with what they perceive to be the demands of the market. Approach to Customers A business with a marketing orientation is essentially led by the needs of its customers. Marketing research outcomes determine how much of a product is produced–old products may be discontinued and new products invented based on the needs or desires of consumers. In contrast, a production-oriented company does not pay close attention to the needs of its customers and is focused primarily on making the maximum number of products. If customers are dissatisfied with its product, a business with a production orientation is more likely to look for a new set of customers than to alter its product. Approach to Advertising A production-oriented company does not focus a great deal of energy on advertising. A business with a production orientation sees itself as fulfilling a need and assumes that as long as customers are aware of their product and can afford, they will buy it.
In contrast, market-oriented companies spend a great deal of money on advertising. A market-oriented company carefully cultivates a brand in the minds of potential customers in an attempt to influence them to buy its products instead of a competitor’s products. Example: saltMarket orientation: cars – hybrid What is the difference between advertising and marketing? Why are the two so often confused? Illustrate with concepts and examples. Advertising: The paid, public, non-personal announcement of a persuasive message by an identified sponsor; the non-personal presentation or promotion by a firm of its products to its existing and potential customers.
Marketing: The systematic planning, implementation and control of a mix of business activities intended to bring together buyers and sellers for the mutually advantageous exchange or transfer of products.After reading both of the definitions it is easy to understand how the difference can be confusing to the point that people think of them as one-in-the same, so lets break it down a bit. Advertising is a single component of the marketing process.
It’s the part that involves getting the word out concerning your business, product, or the services you are offering. It involves the process of developing strategies such as ad placement, frequency, etc. Advertising includes the placement of an ad in such mediums as newspapers, direct mail, billboards, television, radio, and of course the Internet.Advertising is the largest expense of most marketing plans, with public relations following in a close second and market research not falling far behind. The best way to distinguish between advertising and marketing is to think of marketing as a pie, inside that pie you have slices of advertising, market research, media planning, public relations, product pricing, distribution, customer support, sales strategy, and community involvement. Advertising only equals one piece of the pie in the strategy. All of these elements must not only work independently but they also must work together towards the bigger goal.
Marketing is a process that takes time and can involve hours of research for a marketing plan to be effective. Think of marketing as everything that an organization does to facilitate an exchange between company and consumer. Application: advertising is the face of the product/the action. Marketing is the idea/concept behind (how you advertise, to whom? Marketing is adding value to the customer. It’s the whole spectrum, creating relationship between customer and sale.
Marketing also includes who you want to the send the info to and how.Discuss the factors that affect consumers’ motivation to purchase products and services. How do individual differences and contextual scenarios affect these choices? Provide examples for each.
Social influences Cultural and Sub-cultural Social Class Reference Groups and Families Marketing influences Product influences – brand, quality, newness, etc. Price influences – e. g. Walmart (positive or negative influences) Promotion influences Place influences Situational Influences or consumer decision making 1. physical features 2. social features 3.
time 4. task features 5. urrent conditions Psychological influences on consumer decision making Product knowledge Product involvement Consumer decision making Need recognition Alternative search Alternative evaluation Purchase decision Individual – emotions, etc. Contextual – if you want to be a part of a group – if Im rich, I need to have a luxury car.
Explain the differences between market share and share of customer. In what types of markets would it be more beneficial to strive for market share? In what types of markets would share of customer be a better goal? Provide examples of each.Market share – number of products you sell out of all of the colas that are sold Customer share – number of customers you have over total number of customers in that entire market Consumer durable – stuff that is going to last a long time and is purchased more often on the frequent side One mantra used by many marketing professors and texts is to strive for differentiation.
What are the advantages and limitations of the “differentiation” idea? If you were forced to suggest as a viable alternative to this construct, what would you advise the teachers and authors to use instead and why?Advantages Disadvantages – doesn’t match consumers preferences There are five primary positioning strategies that a firm might adopt. What are these strategies? Identify, within a single industry, firms that use each of these strategies and how they enact that positioning. 1. superiority to competitive products based on one or more attributes (Hyundai – less expensive) 2. by use or application (Campbells soup) 3.
particular types of product users (Johnson’s baby shampoo for adults too) 4. ositioned relative to a product class (Caress soap positioned as a bath oil rather than as a soap) 5. directly against particular competitors (Coke & Pepsi) What is a sustainable competitive advantage? How can marketing create such an advantage? Why are they rarely sustained? How can competitors’ marketing make a competitive advantage unsustainable? Illustrate with examples. What is the role of marketing research for a well-established brand? What are the differences between secondary and primary data? How would you decide which to use in a given situation?It aids decision making.
Primary – collected for the specific research problem under investigation Secondary – previously collected by other for purposes but can be used for the problem at hand. What is meant by market segmentation? By targeting? By product positioning? Use an example that shows how that company carried out its STP strategy. You create a marketing mix to position yourself in a more attractive manner to your segment. e. g. – Pepsi picking the younger people How does a positioning (perceptual) map show what your brand’s competitive advantage might be?What would you do if your brand has a competitive advantage on an attribute that is not salient? Provide examples to prove your point.
Competitive advantage can be shown by pointing out the difference that you have from your competitor and how it might be a competitive advantage if that is also something that the customer wants. What does it mean that a firm has “multiple constituencies”? How do you suggest a firm go about managing in a market where they have multiple constituencies? Provide a detailed example of a firm that has at least three constituencies with different needs and desires and how you suggest they manage this scenario.Provide at least four bases (not individual elements of one, i. e.
, demographics, not age, gender, etc. ) that can be used to segment a market. When would you suggest that segmentation should be based on each factor? Provide examples of each segmentation strategy based on a product or service market you are familiar with. You wouldn’t do geographic segmentation for stuff like toothpaste.
Will it have an effect on actually sell the product? If you’re selling oreos, Demographic (age, gender, etc. ), psychographic (lifestyle – more general), need-based (lava soap), geographic, behavioral (Harley)– (BBQ sauce)