1.10 Marketing Philosophies

Through the years, several different marketing philosophies, or orientations, have emerged. One type of orientation is not necessarily better than another. If we look around the world at the wide variety of product categories and industries, we see examples of each orientation being applied. They each can play a role in delivering a useful product at a price that customers can afford.

Production Orientation

Build it and they will come. Production orientation is based on the belief that supply generates its own demand. With this orientation, mass production, economies of scale, and uniform products and services are employed to lower costs and increase distribution. Henry Ford’s Model T automobile is a definitive example of production orientation. The car was quick to make, simple to drive, and inexpensive to repair. When introduced, the Model T cost $825. Within a decade its price dropped to $360. At the height of the Model T’s production, half of all automobiles in America were Model Ts. Additionally, all Model Ts built on an assembly line were black, because black paint dried faster than other colors. Hence, Henry Ford’s famous quip, “Any customer can have a car painted any colour that he wants so long as it is black.”1

Sales Orientation

Sell, sell, sell! Sales orientation is based on the belief that marketing’s only role is to sell products once they are made. With this orientation, marketers do not have input into what products are made, how they are made, or how they are priced. Instead, marketers must find people to buy existing products and then aggressively sell. Companies that do door-to-door sales for products like Kirby vacuum cleaners, Cutco knives, pest control, and home security systems are examples of companies that have a sales orientation. Business-to-business companies also often adopt a sales orientation. Any time we introduce and sell a product or service to customers who are either not aware of the product or not aware of their need for it, we are employing a sales orientation.

Market Orientation

The customer is king.  Market orientation is based on the belief that every product or service should focus on satisfying customer needs and wants at a profit. Under this philosophy, marketing plays a key role in determining target customers, product features, pricing, distribution, customer research, and company-to-customer relationships. Amazon, Google, Apple, Nordstrom, Southwest Airlines, L.L. Bean, Papa John’s Pizza, and Toyota all top the list for market orientation. Although they all go about it in different ways, each company adapts and evolves in order to provide exactly what its customers are looking for.

Societal Orientation

Do well by doing good. Societal orientation is based on the belief that every product or service should provide value to the customer as well as to society as a whole. This orientation encourages marketers to make a better world in conjunction with making a better product. Timberland, a company that specializes in shoes and outdoor wear, planted one million trees in inner Mongolia; Newman’s Own, a food and beverage company known for its spaghetti sauce, donates all profits to charity; Endangered Species Chocolate sponsors sustainability projects in Ecuador; and TOMS, a shoe company, gives a pair of shoes to a child in need for every pair purchased. All of these are examples of societal orientation.