Study Guide for Intro to Marketing

Topics: Marketing, Strategic management, Marketing research Pages: 6 (1392 words) Published: November 1, 2011
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.

2 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.

3 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: salt

Market 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?...
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