Marketing oriented companies focus on customer needs and get close to their customers so that they understand their needs and problems.
In the past, the Traditional Marketing Concept was achieved their profit and other objectives by satisfying customers but it neglects the competition.
But now, the Modern Marketing Concept it achieve the corporate goals through meeting and exceeding customer needs and expectations better than the competition. And this is implemented by The Key Components of the Marketing Concept which are:
1. Customer Orientation- corporate activities are focused upon providing customer satisfaction.
2. Integrated Effort- All staffs accept the responsibility for creating customer satisfaction.
3. Goal Achievement – The belief that corporate goals can be achieved through customer satisfaction.
-Nestlé and Blend.
-German machine tool manufacturesmarket-oriented but UK machine tool manufacturesproduct-oriented.
Toyota story: Its success is depending on two fundamentally different philosophies.
In the beginning, it start by achievement of short-term sales targets and focused on selling low-cost Japanese-designed cars.
After that, it considered the strategy unsustainable as low-price competitors began to match its offer, resulting in lower profit margins.
Therefore, it moved from the aggressive selling of cars to understanding what the Toyota brand meant to customers and how the company could better meet their needs by changing its philosophy to market-oriented business:
1. Market research budget was increased by a factor four.
2. Ensure that the new models were aligned European-designed. Example- Yaris.
3. Expenditure was moved from tactical incentives to media advertising.
4. Improved the services provided for its customers.
5. Enhanced the customers' communication channels by a revamped website, customer magazine, customer experience surveys and