Orientation

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1. Review of the different types of orientation2
1.1 Sales Orientation2
1.2 Production Orientation2
1.3 Product Orientation2
1.4 Marketing Orientation3
1.5 Relationship Marketing3
2. Description of orientation at TMN Media4
2.1 Recap of TMN Media5
2.2 Evidence of the sales orientation at TMN Media5
2.3 Short-termism at MutualPoints5
2.4 Possible change on the horizon6
3. Developing a relationship orientation6
3.1 Establish sense of urgency7
3.2 Form a powerful coalition8
3.3 Create a vision for change8
3.4 Communicate the vision9
3.5 Remove obstacles9
3.6 Create short term wins9
3.7 Build on the change10
3.8 Anchor the change in company culture10
3.9 Summary11
References12
Appendix14
Company Overview14
Company Details14
Key Customer Groups14
Principal Competitors14

1. Review of the different types of orientation

1.1 Sales Orientation

“An approach to business that centres its activities on selling whatever it can produce, assuming that customers are inherently reluctant to purchase.” (Pearson 2008)

A sales orientation focuses heavily on selling the products that the company produces. As such it can often have a short-term outlook and focus overly on selling to a customer and not on building a long-term relationship with them. As such this approach is often popular in markets where the ticket item is of high value and with limited repeat purchase potential.

Whilst a sales orientation does bare some similarities to a marketing orientation in that both make use of pricing, promotion and distribution skills, the sales orientation differs in that little thought is given to what the customer actually wants.

As the sales orientation assumes that salesmanship is required to sell the product it can also be assumed that the products are typically not necessities. A popular example of a sales orientation is in life insurance where overt selling is a common tactic.

1.2 Production Orientation

“An approach to business that centres its activities on producing goods more efficiently and cost effectively, assuming that price is the only factor important to customers.” (Pearson 2008)

As mass production technologies and techniques became pervasive in the 20th century the lure of the production orientation proved too much for many businesses. The focus was on making items more and more efficiently in the belief that the cheapest producer would gain market share.

This approach makes a number of assumptions. Firstly that all markets operate on a lowest cost wins methodology, which considering the success of luxury products in many markets is clearly not the case. Secondly it assumes that all customers are the same and delivers the same product to each one with the aim of achieving economies of scale.

In many ways governments are a fine example of this orientation, with sectors such as health and education operating largely on a one size fits all methodology. Of course it is worth remembering that production efficiencies remain important, and methodologies such as Total Quality Management, Six Sigma and Lean Manufacturing have given companies the tools to enable highly efficient production of goods and services.

1.3 Product Orientation

“An approach to business that centres its activities on continually improving and refining its products, assuming that customers simply want the best possible quality for their money.” (Pearson 2008)

The product orientation was arguably the first orientation popular in business as it centred on what the company could produce. The obvious example is Henry Ford stating that customers could have any colour model T as long as it was black. The company ruled the roost and produced what it did and a lack of choice led customers to like it or lump it.

In the contemporary...
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