Know the four marketing management philosophies and the characteristics of each (production,
sales, market, societal):
Production: “What can we do best?” “Where do our talents lie?” (service organizations). “What
can our engineers do best?” Ignores customer needs and focuses on efficiently building quality
products/services with their resources. Demand>Supply (Example: Ford Model T).
Sales: Spend money to attract customers, not to retain. “The products must go.” Targets
Market: “We are here for you.” Customers AND competition. Focuses on customer wants and
needs to distinguish products from competitors’ offerings. Achieving long term goals by
satisfying customer wants and needs legally and responsibly. (Obtain, examine, determine,
Societal: An organization exists not only to satisfy customer wants but also to preserve or
enhance individuals’ and society’s long-term best interests. Sustainability and retention.
What is Customer Relationship Management (CRM)? Links all processes of a company
together. Designed to optimize profitability, revenue, and customer satisfaction by focusing on
highly defined and precise customer groups. Customizes products and services for each
customer, involving continual dialogue.
Know the differences between Sales-orientation VS. Market-orientation. SALES: Inward
looking. What the firm makes. Goods and services. Often miss opportunities to serve whose
wants can be met through a wide range of product offerings. Making a sale. MARKET: Outward
looking. What the market wants. Benefits that customers seek. Must mediate customers wants
by sound professional judgement as to how to deliver the benefits they seek. Retaining a
What is relationship marketing? A strategy that focuses on keeping and improving relationships
with current customers.
What is strategic planning? The managerial process of creating and maintaining a fit between
the organization’s objectives and resources and the evolving market opportunities.
What should it be based on? What the organization’s main activity is at a particular time and
how the organization will reach it’s goals.
What are strategic business units (SBUs)? They have a distinct mission and specific target
market, control over its resources, its own competitors, is