Societal Marketing

Development of the Marketing Concept
Product Orientation
Sales Orientation
Marketing Concept
Production Orientation
• From the 1850s to the late 1920s • Companies focus on production/manufacturing capabilities

• Consumer demand exceeded supply

• During the production orientation, companies wanted efficient production lines to mass produce products for the consumer. Because the demand was higher than the supply, consumers were content to get a product and were not focused on product variation.
• This was the time that the control was in the hands of the producers.

Sales Orientation
• From the 1930s to the mid 1950s
• Focus on selling (The orientation shifted from
producing to selling).

• Supply exceeded customer demand

There was overproduction during the production orientation, which led to excess product. Although the products were still similar and there was little variation, during the sales orientation period, the manufacturers focused on selling the product which they had overproduced.

Marketing Concept
• 1950s to current – Focus on the customer! • Determine the needs and wants of specific
target markets
• Deliver satisfaction better than competition
• Instead of trying to persuade customers to buy what the firm had already produced, marketing-oriented firms found that it was a lot easier to produce only products they had first confirmed, through research, that consumers wanted.
1. Can you think of companies that grasp and use the marketing concept well?
These companies are focused on the following:
They develop a wide variety of products to meet very different needs.
They realize the importance of communicating with their consumer and explaining their product benefits.
They practice corporate social responsibility through tie-ins with charities and fundraising.
Brand Centric Approach
Customers — I “Don’t” have matter the most

What’s “hot” in the market

Here’s something I “could” offer

The coolest/newest/cheapest

Sell, sell, sell, sell…and. “you’re welcome”

Customer Centric Approach
Customers — I “Do” have matter the most

What your data says you might want or need

Here’s something I “should” offer

What’s most effective to reach customers

Recommend, invite, help, sell and “Thank you”

Societal Marketing Concept
developed from the marketing concept. Marketers and consumers are increasingly taking stock of what is good for themselves, their family, their country, and the planet.

• Marketing looks for opportunities to provide products and services to help consumers reach their goals (meet their values) while also making profitable decisions for their companies

Considers consumers’ long-run best interest
• Promoting good corporate citizenship

4 drivers of successful customer relationships
Customer Value, Satisfaction, Trust, and Retention

Build and maintain successful relationships with their consumers.
– offering a product which has benefits that the consumer values
– benefits as exceeding the cost of the product
– a high level of customer satisfaction
– trust the marketer and continue to purchase the product – leads to loyalty
– a high level of customer retention — be more profitable due to these valuable loyal customers

Customer Value
Defined as the ratio between the customer’s perceived benefits and the resources used to obtain those benefits
Customer Satisfaction
The individual’s perception of the performance of the product or service in relation to his or her expectations.
CustomerTrust
Establishing and maintaining trust is essential.
• Trust is the foundation for maintaining a long- standing relationship with customers.
Customer Retention
• The objective of providing value is to retain highly satisfied customers.
• Loyal customers are key
– They buy more products
– They are less price sensitive
– Servicing them is cheaper
– They spread positive word of mouth
The formula for success
satisfaction = perception – expectation

expectation > perception = disappointed customer

expectation = perception = satisfied customer

expectation < perception = delighted customer

How do you delight customers?
Consistent level of service
Continuous improvement