logo search
Кубр Милан Консалтинг

15.1 The marketing strategy level

Strategic decisions in marketing have far-reaching implications for the enterprise as a whole and for the management of particular functions, such as production, product development or financial control. It is no wonder, therefore, that even minor proposals may meet with strong objections from senior management of other departments. Major changes, such as dropping or adding product lines, committing substantial funds to advertising or product promotion, developing new products to satisfy new market demands or changing overall pricing policies, are clearly general management decisions to be taken at top levels.

A useful starting-point is to classify the client’s orientation towards the market. Three classifications are recognized: product-oriented, productionoriented, and market-oriented. In a product-oriented firm the emphasis is on the product itself while in the production-oriented firm the dominant considerations in product design or modification are those of ease, cost-efficiency or capacity of production. In both cases, market considerations are ignored or suppressed. In a market-oriented firm the decisions are based on analysis of market needs and demands. The object is to capitalize on the opportunities the market offers that fall within the production and R&D capabilities. This approach can produce all of the good effects of the other two orientations, and avoids their drawbacks. More importantly, it can identify new opportunities. Figuratively speaking, the management of the firm asks the following questions:

What are the problems of our customers that our products (or services) can solve more efficiently or better than products of other suppliers?