The air hung heavy in French Lick, Indiana. That morning, there was a tornado watch, and the sky was pitch-black. The Wolverine Controller Company’s top management gathered in a meeting space at one of the neighborhood resort hotels, where the ambiance was similar to the weather. The Indianapolis-based manufacturer of flow controllers for process industries like chemicals, paper, and food had recently experienced poor results. Sales were off, but earnings were off even more. Market share was down in all product lines.
The president had fire in his eyes as he opened the meeting. “The situation can’t get much more serious,” he proclaimed. “As you all know, things have been in a complete mess for the past couple of years,” he said. Due to fierce domestic and international competition, we are in serious trouble. We must adopt a customer- or market-driven mindset in order to escape this mess. Even though I have no idea what that means, we definitely want to go. I’m not even sure if there’s a difference between being customer driven and market driven, or market driven and customer driven, or whatever. We simply need to perform significantly better. ”.
The marketing vice president added, “I couldn’t agree with you more, Frank.” I’ve been arguing that we need to focus more on marketing. Because we speak for the customer and have a comprehensive understanding of the business, the marketing department needs to be more involved in everything that occurs. ”.
A lively, sometimes heated debate about what was wrong and what was required then ensued. Each vice president defended their position or group and provided solutions from that specific angle. Here are some brief summaries of their positions before I draw a curtain over their careless and vulgar argumentation:
“We don’t need our own sales forces nearly as much as we need our own engineering group so we can create designs tailored to our customers,” said her counterpart in the Pneumatic Controls Division. The divisions are unable to carry out their duties as long as a single R&D organization owns all of the engineers. ”.
The group broke up for lunch, and the president spoke one final time. You spend a lot of time talking over one another and defending your own territory. Some of that’s all right. You must speak for your own departments and promote your own viewpoints. You wouldn’t have stayed at Wolverine for very long and you wouldn’t have been able to make the contributions you have if you hadn’t worked hard for your own organizations.
However, you don’t just represent your own shops; enough is enough. You must adopt a more comprehensive, global perspective because you are Wolverine’s corporate executives. It is my responsibility to organize you all, but it is also your responsibility as individuals. Nothing can replace direct, lateral departmental communication, and I lack the expertise for it. After lunch, let’s figure out how to do that. ”.
Market Orientation and Sales Orientation
Characteristics of a sales-oriented approach
Businesses that focus on sales have a number of characteristics that differentiate them from companies that focus on the market. Here are some notable characteristics of a sales-oriented approach:
What is sales orientation vs. market orientation?
Businesses use both sales orientation and market orientation strategies to create and market their goods and services. Here is a basic overview of each concept:
Companies use sales orientation, an internally focused strategy, to market the goods and services they are most successful at producing. This approach places an emphasis on producing high-quality goods and services for the least amount of money. Businesses that prioritize sales employ aggressive sales strategies to make sure their goods and services are the best and most affordable choices for customers to buy. Instead of creating new or improved products and services for consumers, they determine what their key selling points are and use this information to promote already-existing goods and services.
Market orientation is a strategy used by businesses to develop goods and services that are in high demand on the market. This approach places a high priority on identifying the needs and preferences of a company’s intended market and creating plans to address them. Companies that adopt a market-oriented strategy carefully research consumer trends and modify their goods and services to better meet their needs. These businesses raise the level of customer value by doing this.
Elements of a market-oriented approach
Market-oriented businesses are distinguished from sales-oriented businesses by a number of factors that they have in common. Here are some important elements of a market-oriented approach:
Benefits of sales orientation
Being able to quickly produce new goods and services is one of the most notable advantages of a sales-oriented mindset. Other advantages of using a sales-oriented strategy include:
Benefits of market orientation
Having extensive consumer feedback and market data to support the choices you make about your goods and services is one of the most notable advantages of market orientation. This can assist you in creating strategies that are informed and support your main business goals. Some of the other benefits of using market orientation include:
Key differences between sales orientation vs. market orientation
While both sales orientation and market orientation place a strong emphasis on creating products and services that are competitive, there are some significant differences between the two approaches to the market and the tactics they use to succeed. The following are some of the most significant distinctions between market orientation and sales orientation:
Tips for choosing which method to use
Although both sales orientation and market orientation can help businesses achieve their goals, it’s important to be cautious about which strategy you choose to use. You can use the following advice to choose the approach that is best for you:
What is the difference between sales orientation and market orientation?
A sales-oriented business is very internally focused and seeks to market the goods it produces successfully. A business with a marketing focus is externally focused on the needs and wants of the customer. The relationship between benefits and the costs incurred to obtain those benefits is known as customer value.
What is sales and marketing orientation?
A business strategy known as “sales orientation” is centered on creating the best products and services without taking the needs or wants of the customer into account. This strategy typically employs aggressive, outbound sales techniques and marketing promotions to increase sales.
What is Marketplace orientation?
Market orientation is a method of conducting business that places emphasis on determining the needs and preferences of customers and developing goods and services to meet those needs.
What is the level of difference between the sales and market orientation quizlet?
First, sales-oriented businesses prioritize their own needs while market-oriented businesses prioritize the needs and preferences of their clients.