Production, selling and marketing approaches

• Production approach

  Emerged during the Industrial Revolution

  Focus: manufacturing enough goods and services to meet demand

  Most businesses considered marekting simply as a spin-off production

  This meant that marketing only involved taking orders and delivering the product

  Marketing was simply an extension to production

  Businesses aimed their efforts at producing products quickly and cheaply using mass production techniques
• Production Approach 2 Incl example

  Industrial revolution created a tremendous burts of industrial output and saw demand of goods exceed the production capabilities of many businesses

  Production design was based more on the demand of mass production techniques than on customer needs and wants

  Example: Henry Ford focused on ways to produce motor vehicles more quickly and cheaply, confident that the people would buy them. He ignored customer needs and instead manufactured innovation based solely on his vision for a better future
• Selling approach


  As production became more efficient, supply began to exceed demand creating a high level of competition

  Focus: businesses become sales oriented emphasising sales targets and high pressure tactics

  Marketing involved using televisions and radios to advertise and hiring convincing sales staff

  Customer needs and wants were still often neglected

  Instead of researching what the customer wanted, they were producing what the company could make and getting their sales representatives to create demand

  as much as possible to beat competitors 1920s to 1960s
• Marketing approach - 1960s to present

  Refer to the different ways that businesses have looked at marketing as a path to achieving their overall goals

  Focuses on finding out what customers want - through market research - and the satisfying that need

  Most Australian families has discretionary income, extra income to satisfy their needs and wants

  The marketing concept is centred around being customer-oriented, aimed at satisfying customers, integrated into the business plan so as to achieve the business’ goals and aimed to develop long-term relationships with customers
• Marketing approach 2


  There was a large economic boom after WW2

  A key principle is customer orientation where businesses constantly strive towards achieving and maintaining high levels of customer satisfaction

  Customers must be encouraged to stay loyal to the business by establishing positive relationship

  Relationship marketing → places a high priority on customer retention and continual satisfaction which holds at its core customer loyalty
• Societal marketing approach


  A more socially responsible, moral and ethical model of marketing, which is closely related to csr and sustainable development to improve their public image

  Emphasises social responsibilities and suggest that to sustain long-term success to maintain and improve the wellbeing of both customers and society

  Need to balance 3 things: consumer’s wants, business profits and society’s long-term interests